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.

RICO Indictment Charges Drug Traffickers for Racketeering, Drug Trafficking, and Murder

A Racketeering Influenced Corrupt Organizations (RICO) indictment was unsealed Tuesday, August 21, 2012, charging individuals with participating in a massive racketeering organization.

These charges stem from an investigation led by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), with the assistance of the New York City Police Department (NYPD).

The 40-count RICO indictment charges nine individuals with participating in the "Rodriguez Enterprise," a massive racketeering organization whose members allegedly sold large quantities of marijuana; engaged in murders and other violent acts; transported and laundered millions of dollars; obstructed justice and committed perjury; and engaged in firearms offenses. The RICO indictment was filed in connection with "Operation Green Venom," a coordinated multi-agency investigation that was led by HSI and first announced in October 2010.

"This organization allegedly placed their goal of profiting from the mass distribution of narcotics throughout New York City above all else, most importantly the regard for human life," said James T. Hayes Jr., special agent in charge of HSI New York. "Today's announcement should serve as a reminder that law enforcement collaboration to combat narcotics trafficking and distribution is greater than ever."

"This indictment illustrates the grim nexus between illegal drug sales, money laundering and deadly violence," said Raymond W. Kelly, commissioner of the NYPD. "We remain committed to working with our federal law enforcement partners to continue our efforts to rid the city of these violent criminals."

"As alleged, these nine defendants were part of a sweeping enterprise that has the blood of six people on its hands and that trafficked in tons of marijuana, laundered millions of dollars and obstructed justice," said U.S. Attorney Preet Bharara, Southern District of New York. "Thanks to the continued dedication and commitment of our law enforcement partners, we are now able to bring them to justice."

The following allegations are based on the RICO indictment unsealed Tuesday, August 21, 2012, in Manhattan federal court:

Manuel Geovanny Rodriguez-Perez (Manuel Rodriguez) is the leader of the Rodriguez Enterprise. He is charged with five murders and five attempted murders, including the murders of the following victims:

·                             Oct. 26, 1997: Francisco Perez, aka Francie;

·                             Dec. 13, 1998: Antonio Kasse, aka Toasty;

·                             2000: first and last name unknown, aka Carlos Valentin, aka Campi;

·                             May 3, 2004: Wilfredo Molina, aka Willie; and

·                             Jan. 16, 2006: Richard Cabrera, aka Bori.

Other charges against Manuel Rodriguez include: trafficking in marijuana from 1992 through 2010; laundering money in New York, Florida and the Dominican Republic; perjury; obstruction of justice; and firearms charges. Manuel Rodriguez has been in federal custody since Oct. 15, 2010.

Orlando Rodriguez – Manuel Rodriguez's younger brother – is also charged with the murder of Carlos Valentin; an attempted murder in 1996; as well as racketeering, marijuana trafficking and money laundering. Orlando Rodriguez was arrested in the Dominican Republic Aug. 16, 2012, and is detained pending his extradition.

Felipe Cantres-Sanjurjo (Felipe Cantres) is charged with the murders of Wilfredo Molina and Richard Cabrera, as well as racketeering, marijuana trafficking and two attempted murders. Felipe Cantres was transferred from local to federal custody in Puerto Rico Aug. 22, 2012.

Miguel Cantres-Sanjurjo (Miguel Cantres), Felipe Cantres' cousin, is charged with the murder of Jose Caba July 14, 2003, and the murder of Wilfredo Molina, as well as racketeering conspiracy, marijuana trafficking and an attempted murder. Miguel Cantres is currently in federal custody in connection with a robbery conviction.

Jose Manuel Espinal is charged in the indictment with racketeering, money laundering conspiracy and two instances of obstruction of justice. Espinal was previously arrested in connection with money laundering charges in December 2011.

Jesus Sanchez is charged with racketeering, marijuana trafficking, money laundering conspiracy and firearms offenses. Sanchez has been in federal custody since Oct. 15, 2010.

Jose A. Rodriguez, the older brother of Manuel Rodriguez and Orlando Rodriguez, is charged with racketeering, marijuana trafficking, money laundering conspiracy and firearms offenses. Jose A. Rodriguez has been in federal custody since Oct. 15, 2010.

Oscar Rodriguez, a cousin of the Rodriguez brothers, is charged with racketeering conspiracy and marijuana trafficking offenses. Oscar Rodriguez was previously arrested in connection with marijuana trafficking charges Oct. 14, 2010.

Theodore Jones is charged with racketeering conspiracy and marijuana trafficking. Jones is currently serving a sentence for an unrelated narcotics conviction.

Defendants Manuel Rodriguez, Jose A. Rodriguez, Oscar Rodriguez and Jesus Sanchez were arrested during an October 2010 takedown of more than 50 members of a massive marijuana trafficking ring that transported ton-quantities of marijuana from Florida and California for distribution in the greater New York area from the early 1990s to 2010. In addition to the defendants charged in the racketeering indictment, the defendants arrested during that takedown included Roc-A-Fella Records founder Kareem Burke, who was sentenced to five years in prison June 4, 2012.

The racketeering indictment seeks the forfeiture of $25 million, which is the approximate amount of gross proceeds received by the defendants in connection with their activities; at least nine separate properties in New York and in Florida; and over $500,000 in cash and nearly 40 pieces of jewelry that were previously seized from the defendants.

All nine defendants are currently in custody or are out on bail in connection with a previous arrest.
HSI encourages the public to report any information regarding these crimes. Any information may be provided anonymously to HSI by calling 1-866-DHS-22ICE or by completing its online tip form. Both are staffed around the clock by investigators.

U.S. Attorney Bharara praised the outstanding investigative work of HSI and the NYPD. He also thanked the U.S. Drug Enforcement Administration; U.S. Marshals Service; Bergen County (N.J.) Prosecutor's Office; Englewood (N.J.) Police Department; U.S. Department of Housing and Urban Development; and the City of New York Department of Investigation for their assistance.

ICE Graduation Honors Mexican Border Guards of MEXCIT Program

A group of 23 Mexican customs officers completed a rigorous 10-week training program modeled on the U.S. Immigration and Customs Enforcement (ICE) Special Agent Training Program to prepare them to more effectively fight crime along the southern border and within Mexico.

Students of the ICE-sponsored Mexican Customs Investigator Training (MEXCIT), their instructors, and Mexican and U.S. dignitaries attended a graduation ceremony at the Federal Law Enforcement Training Center in Charleston Aug. 23, 2012.

 The event underlined ICE's continuing commitment to partner with Mexico in confronting drug cartels and other criminal organizations whose actions undermine public safety, erode the rule of law and threaten the national security of the United States, Mexico and the world at large.

ICE Director John Morton commended the students for completing the challenging and physically demanding course work that included getting a dousing of pepper spray. Morton said MEXCIT is the first of its kind and "stands as a shining example of the strength of the U.S. and Mexico's commitment to bilateral cooperation."

"In the last several years, we have seen a greater level of security cooperation between our two countries than at any point in our histories," said Morton. "Fighting the criminal organizations that threaten our safety and security demands a response that is transnational and that is coordinated."

Also addressing the crowd was Director Alfredo Gutierrez from the Mexican Tax Administration Service, who said, "We all know that our actions transcend borders. The governments of Mexico and the United States are committed to using our resources to significantly improve the security and the environment in which our commercial activities take place."

James S. Thomas, unit chief of international training at the ICE Academy said, "A large block of curriculum was dedicated to officer safety, internal controls and anti-corruption. It energized the instructors teaching the classes because the students were so enthusiastic and raised so many questions."

A total of 47 Mexican customs officers have now completed this training program.

ICE Holds Symposium to Combat American Brand Theft and Merchandise Counterfeit

Brand holders and intellectual property rights experts with U.S. Immigration and Customs Enforcement (ICE) led an all-day symposium Thursday, August 23, 2012, aimed at combating brand theft and merchandise counterfeiting.

The one-day event hosted by ICE's National Intellectual Property Rights Coordination Center (IPR Center) was held at the Ohio Bureau of Criminal Investigation's police academy in Richfield.

"Events like these are a key element in the overall strategy to protect American brands and jobs," said Brian M. Moskowitz, special agent in charge of ICE's Homeland Security Investigations (HSI) Michigan and Ohio. "Educating the public and industry is an important force multiplier in the effort to fight intellectual property rights theft."

The event included presentations from Amber Lilly, Deere and Company, maker of John Deere-branded products; Underwriter Laboratories; and other brand holders.

The symposium centered on actions taken by both the U.S. government and those in the IP industry to combat counterfeit merchandise and intellectual property rights violations. Break-out sessions discussed current trends in counterfeiting, emerging threats, as well as detection methods and best practices in enforcement.

HSI special agents also cited case examples that linked IP theft with other criminal activity. Brand protection officers from several corporations provided information on threat detection and other investigative techniques.

A key message stressed at the event was that counterfeiting and brand theft can result in significant criminal and civil penalties.

Conspiracy to traffic counterfeit goods carries a maximum penalty of five years in prison and a $250,000 fine, or twice the gain or loss resulting from the conspiracy. The maximum penalty for each count of trafficking in counterfeit goods is punishable by up to 10 years in prison and a $2 million fine. Counterfeit goods are also subject to seizure and destruction and proceeds derived from such criminal activity are subject to forfeiture.

The IPR Center is a major player in the fight against criminal counterfeiting (piracy). In May, the center rolled out a new anti-piracy warning that will be featured in forthcoming DVDs and Blue Ray releases, replacing the former warning.

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 American warfighters.

ICE is the federal government's lead agency investigating intellectual property theft. The International Anti-Counterfeiting Coalition estimates that counterfeiting costs U.S. businesses between $200 and $500 billion each year and more than 750,000 American jobs.

Massachusetts Town Partners with ICE IMAGE Program

The Town of Milford has set the gold standard in its hiring practices by becoming the first municipality in New England to partner with U.S. Immigration and Customs Enforcement's (ICE) employment compliance program, IMAGE, or "ICE Mutual Agreement between Government and Employers."

The Town of Milford, with more than 1,500 employees, has partnered with ICE to protect the integrity of their workforce, becoming the first municipality in New England with this distinction. This partnership was marked Monday evening during the Milford Board of Selectmen meeting.

"It is my pleasure to welcome Milford to our IMAGE family," said Bruce M. Foucart, special agent in charge of ICE's Homeland Security Investigations (HSI) Boston. "The newly formed partnership with ICE and the Town of Milford underscores this town's commitment to protecting the integrity of their workforce and to foster best hiring practices. ICE actively pursues partnership with those employers that want to comply with the employment eligibility verification requirements, including local governments throughout New England. By partnering with ICE, employers receive invaluable training and the tools necessary to ensure a lawful workforce. I am hopeful that other municipalities and companies will follow the actions that Milford has taken. Milford has truly won the gold medal in this endeavor."

The Town of Milford is a thriving Massachusetts community of over 27,000 residents. Milford offers many advantages to residents and visitors alike – an education system with modern facilities and excellent curriculum offerings; newly constructed and upgraded municipal buildings; playing fields and parks for active and passive recreation; a multi-use trail (Milford Upper Charles Trail); major shopping plazas; a revitalized downtown; an active cultural center; a first class regional hospital; and a wide variety of restaurants and hotels.

"Milford is certainly pleased to be a leader in the commonwealth by partnering with ICE through the IMAGE program," said Brian W. Murray, chairman of the Milford Board of Selectman. "We are optimistic that other communities as well as private businesses will follow."

IMAGE program

Undocumented workers create vulnerabilities in today's marketplace by presenting false documents to gain employment, completing applications for fraudulent benefits, and stealing identities of legal United States workers. To combat this, ICE initiated the IMAGE program in 2006. As part of the IMAGE program, ICE provides employers with education and training on proper hiring procedures, including use of employment screening tools such as E-Verify. IMAGE certified employers also undergo an audit of their I-9 forms to ensure current employees are eligible to work in the United States.

Employers that are certified with ICE through the IMAGE program pledge to maintain a secure and stable workforce and curtail the employment of unauthorized workers through outreach and education. ICE recently revamped IMAGE, simplifying program requirements.

E-Verify

All IMAGE members must participate in the U.S. 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.

HSI worksite investigations

Effective worksite enforcement plays an important role in the fight against illegal immigration. HSI has developed a comprehensive worksite enforcement strategy that promotes national security, protects critical infrastructure and targets employers who violate employment laws or engage in abuse or exploitation of workers.

An effective worksite enforcement strategy must address both employers who knowingly hire illegal workers, as well as the workers themselves. In worksite cases, HSI investigators adhere to high investigative standards, including the following:

• HSI will look for evidence of the mistreatment of workers, along with evidence of trafficking, smuggling, harboring, visa fraud, identification document fraud, money laundering and other such criminal conduct; and

• HSI will obtain indictments, criminal arrests or search warrants, or a commitment from a U.S. attorney's office to prosecute the targeted employer before arresting employees for civil immigration violations at a worksite.

HSI also works with the private sector to educate employers about their responsibilities to hire only authorized workers and how to accurately verify employment eligibility, through such tools as the IMAGE program.

I-9 audits

Employers are required to complete and retain a Form I-9 for each individual they hire for employment in the United States. This form requires employers to review and record the individual's identity and employment eligibility document(s) and determine whether the document(s) reasonably appear to be genuine and related to the individual. Additionally, an employer must ensure that the employee provides certain information regarding his or her eligibility to work, on the Form I-9.

"HSI will continue to hold employers accountable for hiring and maintaining a legal workforce," added Foucart. "We encourage employers to take the employment verification process seriously, as we expand the number of audits we are conducting throughout New England each year. HSI will continue to focus its attention on employers that are knowingly employing illegal workers."

Employers – both companies and municipalities – in the New England area that are interested in the IMAGE program can call HSI Boston at 617-565-6286, or visit www.ICE.gov/IMAGE.

California Man Pleads Guilty to Forging Driver's Licenses

A Fresno man pleaded guilty Monday, August 20, 2012, in federal court to conspiring to unlawfully produce California driver's licenses, following a probe by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the California Department of Motor Vehicles (DMV) Investigations Division, Office of Internal Affairs.

According to court documents, Yadwinder Singh, 50, recruited recipients in a scheme to sell fraudulently obtained commercial driver's licenses. Singh would pass on information he obtained from potential recipients to former DMV technician Alfonso Casarez, who then proceeded to alter the electronic DMV records to make it appear as though the recipients had passed the required written and behind-the-wheel tests, causing the DMV to automatically issue a genuine license.

Singh found his clients by waiting outside the Fresno DMV offices and approaching DMV visitors with an offer to assist them in obtaining commercial licenses without the need to pass the required tests. Another of his recruiting methods involved having clients complete a DMV application and receiving rudimentary instruction from Singh in operating a commercial truck. Upon giving Singh a substantial "tuition" payment, participants would be informed they had passed. A portion of that payment would go to Casarez, who would facilitate the unlawful issuance of the license.

Singh is schedule to be sentenced by U.S. District Judge Lawrence J. O'Neill Oct. 29. He faces a maximum statutory penalty of five years in prison. The case is being prosecuted by Assistant U.S. Attorneys Henry Z. Carbajal, III and Grant B. Rabenn.

Mexican National Wanted for Murder Deported

A Mexican national, murder suspect captured in northern California July 2012 was turned over to Mexican law enforcement personnel Friday, August 17, 2012, at the San Ysidro border crossing by officers from U.S. Immigration and Customs Enforcement's (ICE) Enforcement and Removal Operations.

Alvaro Hernandez-Fuentes, 38, was transferred to the custody of representatives from the Mexican Attorney General's Office. Hernandez-Fuentes is wanted in his native country for fatally shooting an acquaintance in the Mexican state of Colima Dec. 1, 1993.

According to the Mexican arrest warrant issued in January 1994, Hernandez-Fuentes' girlfriend lured the victim, Alejandro Gomez Garcia, to a location with the promise that marijuana would soon be available. When Gomez Garcia arrived, Hernandez-Fuentes was waiting, and proceeded to fire three shots with a .380 caliber pistol.

When Hernandez-Fuentes realized the victim was still alive, he fired three additional shots. Hernandez-Fuentes's girlfriend eventually surrendered to police, telling them that Hernandez-Fuentes was attempting to force her to burglarize a store to fund his escape to the United States.

Hernandez-Fuentes' repatriation to Mexico follows his arrest July 12, at a residence in Watsonville, Calif., by the U.S. Marshals Service (USMS), ICE Homeland Security Investigations (HSI) and the Santa Cruz Anti-Crime Team (SCCACT). The multi-agency law enforcement team was able to locate Hernandez-Fuentes after receiving a lead from the Mexican Attorney General's Office that the fugitive might be living in the Watsonville area.

On August 9, 2012, an immigration judge cleared the way for the fugitive's repatriation to Mexico after Hernandez-Fuentes admitted he was, in fact, the same person wanted for the homicide in Colima.

"Criminals who seek to escape responsibility for their actions by fleeing to the United States will find no sanctuary in our communities" said Joseph Vincent, assistant special agent in charge for HSI San Jose. "As this case makes clear, U.S. law enforcement agencies are working closely together to promote public safety and hold criminals accountable – no matter where they commit their crimes."

Since Oct. 1, 2009, ERO has removed more than 450 foreign fugitives from the United States who were being sought in their native countries for serious crimes, including kidnapping, rape and murder. ERO works with ICE's Office of International Affairs, foreign consular offices in the United States, and Interpol to identify foreign fugitives illegally present in the country.