Operation Bitter Pill Shuts Down 686 Counterfeit Pharmaceutical Websites

In the largest operation of its kind, 100 countries took part in an international week of action targeting the online sale of counterfeit and illegal medicines. U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), in coordination with the Department of Justice, seized 686 websites the week ending in October 5, 2012, that were illegally selling counterfeit pharmaceuticals.

The seizures were part of Project Bitter Pill, the current effort under of Operation In Our Sites (IOS). Bitter Pill was part of the INTERPOL-led Operation Pangea V.

A global enforcement effort, Pangea is an annual operation aimed at disrupting the organized crime networks behind the illicit online sale of fake drugs. Worldwide, preliminary results show Pangea has accounted for 79 arrests and the seizure of 3.7 million doses of potentially life-threatening counterfeit medicines worth an estimated value of $10.5 million.

Additionally, approximately 18,000 websites engaged in illegal sale of counterfeit drugs were taken down.

During Pangea V, which ran from Sept. 25 to Oct. 2, operations were conducted in Europe and throughout the United States at websites linked to the illegal Internet supply of medicines. U.S. Customs and Border Protection (CBP) intercepted packages that were believed to contain fake or illicit drugs. Various payment processing companies supported the operation by identifying and blocking payments connected to illicit online pharmacies, identifying individuals responsible for sending spam emails and identifying abuse of electronic payment systems.

"These international partnerships are essential in the global fight against the trafficking of counterfeit drugs," said ICE Director John Morton. "Instead of taking potentially life-saving medicines, customers are duped into purchasing drugs that are fake or untested and could ultimately do them more harm than good."

Pangea is coordinated by INTERPOL, the World Customs Organization, the Permanent Forum of International Pharmaceutical Crime, the Heads of Medicines Agencies Working Group of Enforcement Officers, Pharmaceutical Security Institute, and Europol. For the first time, Pangea was also supported by the Center for Safe Internet Pharmacies which brings together 12 of the world's leading Internet and e-commerce companies.

"When someone is sick, can't afford to purchase expensive medicine or is just trying to save money, they are more likely to take a chance and buy medicines online, making themselves vulnerable to purchasing fake, illicit or spurious medical products and thus harming themselves," said INTERPOL Secretary General Ronald K. Noble. "Organized, sophisticated criminals and rogue pharmacies are unfortunately using the Internet to defraud innocent consumers, to place them in harm's way, to steal their identities and to engage in credit card fraud."

The goals of this operation were to disrupt the illegal distribution of medicines and to raise public awareness about the significant health risks associated with buying medicines online and the increased risk of becoming a victim of identity and credit card fraud.

Bitter Pill, the U.S. operation, was managed by the National Intellectual Property Rights Coordination Center (IPR Center), including HSI Baltimore, CBP, the U.S. Attorney for the District of Maryland, and the Computer Crime Intellectual Property Section of the Department of Justice Criminal Division. The Food and Drug Administration, Office of Criminal Investigations and the Federal Bureau of Investigation also participated in Pangea and supported Bitter Pill.

"Interdiction of illegal pharmaceuticals is one of CBP's top priorities," said CBP Deputy Commissioner David V. Aguilar. "The rise of Internet pharmaceutical sale sites has resulted in increases of imported packages containing illegal medications, which is a risk to U.S. consumers. CBP is proud to be a part of this effort."

IOS is a sustained law enforcement initiative that began two years ago to protect consumers by targeting the sale of counterfeit merchandise on the Internet. Those websites are now shut down and their domain names are in the custody of the federal government. Visitors to the websites will find a seizure banner that notifies them that the domain name has been seized by federal authorities and educates them about the federal crime of trafficking in counterfeit goods.

The 686 domain names seized during Bitter Pill bring the total number of IOS domain names seized in the last two years to 1,525. The domain names are subject to forfeiture under federal laws that afford individuals who have an interest in the seized domain names a period of time after the "Notice of Seizure" to file a petition with a federal court and additional time after the "Notice of Forfeiture" to contest the forfeiture. If no petitions or claims are filed, the domain names become property of the U.S. government.

During this project, HSI special agents made undercover purchases of counterfeit drugs from multiple websites. The counterfeit drugs seized during Bitter Pill included anti-cancer medication, antibiotics and erectile dysfunction pills as well as weight loss and food supplements. Investigations are ongoing as special agents continue to connect shipments and websites with organized criminal networks.

The IPR Center is one of the U.S. government's key weapons in the fight against criminal counterfeiting, piracy and commercial fraud. 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 and commercial fraud. Through this strategic interagency partnership, the IPR Center protects the public's health and safety, the U.S. economy and our war fighters.

Peruvian Man Sentenced for Smuggling Two Kilograms of Cocaine

A Peruvian man was sentenced Monday, October 1, 2012, in U.S. District Court to 30 months in prison for smuggling more than two kilograms of cocaine, with a street value of over $250,000 into the United States from Lima, Peru. The case was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) with the assistance of U.S. Customs and Border Protection (CBP).

Heber Razuri-Leon, 47, was sentenced Monday, October 1, 2012, by U.S. District Judge Esther Salas to 30 months in federal prison to be followed by deportation to Peru. In addition Razuri-Leon was ordered to forfeit more than $12,000 to the United States.

According to court records, on December 22, 2011, Razuri-Leon arrived at Newark Liberty International Airport en route to Japan, on a Continental Airlines flight from Lima. Razuri-Leon was selected for a routine secondary examination by CBP officers, who discovered a pair of flip-flop sandals that felt heavy. They probed the sandals and found a white powdery substance, which field tested positive for cocaine.

CBP officers then discovered several deflated soccer balls, which also felt heavy. They probed the soccer balls and found a white powdery substance inside the balls, which also field tested positive for cocaine. In total, the cocaine found inside of Razuri-Leon's suitcase weighed approximately 2.24 kilograms.

Razuri-Leon pleaded guilty July 2, 2012, to the charge of conspiring and agreeing with others to import 500 grams or more of a mixture or substance containing cocaine.

Assistant U.S. Attorney Rahul Agarwal, District of New Jersey, prosecuted the case.

HSI and CBP Agents Featured on New TV Series "To Catch a Smuggler"

It's the stuff television shows are made of – special agents and officers apprehending and interrogating smugglers who try to sneak drugs and other contraband into the United States.

In a new National Geographic television series, viewers go behind the scenes with U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) special agents and U.S. Customs and Border Protection (CBP) officers at the John F. Kennedy (JFK) International Airport as they uncover this criminal activity.

In this new television series, "To Catch a Smuggler," which premieres Monday, Oct. 8 at 9 p.m. EST/PT on the National Geographic Channel, cameras stay rolling throughout the entire investigative process. Viewers go into the interview room with HSI's JFK Narcotics Smuggling Unit as they identify, search and question smugglers.

Ranked as one of the busiest hubs for international travel, JFK International Airport is a hot spot for criminal activity.

"Each year, HSI special agents and CBP officers seize kilos of cocaine, crystal meth, heroin and other illicit drugs, worth millions of dollars, that criminals try to smuggle through JFK," said Brian Hale, director of ICE's Office of Public Affairs.

While watching the show, viewers will see how criminals, intent on smuggling different types of contraband into the United States, use varying tactics in an effort to trip up the special agents and officers.

"'To Catch a Smuggler' highlights our agency's important mission to protect the American public and the dedicated work of our employees" Hale said.

HSI is the largest investigative body in the U.S. Department of Homeland Security and has a vast mission. Its special agents investigate the smuggling of narcotics, humans, weapons and other types of illicit contraband, as well as immigration crime, human rights violations, financial crimes, cybercrime and export enforcement issues.

"We are very excited to be a part of this new series," Hale said. "It truly shows federal law enforcement partnerships in action."

New Jersey Defense Contractor Convicted for Sharing U.S. Military Technology with China

On Thursday, September 20, 2012, a federal jury convicted a former employee of a New Jersey-based defense contractor of exporting sensitive U.S. military technology to China, stealing trade secrets and lying to federal agents. The joint case was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the FBI and U.S. Customs and Border Protection (CBP).

Sixing Liu, aka "Steve Liu," 49, a Chinese national, who had recently lived in Flanders, N.J., and Deerfield, Ill., was taken into custody following the verdict, based on risk of flight considerations. He is scheduled to be sentenced Jan. 7, 2013 before U.S. District Judge Stanley R. Chesler.

"Exporting military weapons and technical data, and the theft of sensitive technology in violation of the Arms Export Control Act, are serious crimes with global consequences," Andrew McLees, special agent in charge of HSI Newark, said. "Illegal foreign procurement networks continue to threaten our safety and this conviction reinforces that HSI has no tolerance for those who try to undermine our nation's safety and security."

"The jury found that in order to promote himself, Liu took highly sensitive defense information and trade secrets to China, violating the rules of his company and the laws of this country, and then lied about it upon his return to the United States," District of New Jersey U.S. Attorney Paul J. Fishman said. "We will not tolerate the exploitation of this country's opportunities through the theft of our secrets."

"This specific investigation is troubling on many levels," FBI Special Agent in Charge Michael B. Ward said. "Mr. Liu helped develop technology critical to our military, then took a computer with that information on an unauthorized trip to China to present at a conference sponsored by the Chinese government. The United States spends billions of dollars each year on research and development, and this ‘intellectual capital' is very attractive to others. If they are able to acquire this research, they can save billions and quickly develop their own products to compete against the United States, be it in the world economic market or on the battlefield."

Robert E. Perez, director of field operations for CBP New York, said, "This arrest demonstrates the determination of Customs and Border Protection's frontline officers, who work closely with our law enforcement partners to safeguard the American public from potential threats."

The jury convicted Liu of nine of the 11 counts in the second superseding indictment with which he was charged, including six counts of violating the Arms Export Control Act and the International Traffic in Arms Regulations, one count of possessing stolen trade secrets in violation of the Economic Espionage Act of 1996, one count of transporting stolen property in interstate commerce and one count of lying to federal agents. The jury acquitted Liu on two counts of lying to federal agents.

According to court documents, in 2010, Liu stole thousands of electronic files from his employer, L-3 Communications, Space and Navigation Division, located in Budd Lake, N.J. The stolen files detailed the performance and design of guidance systems for missiles, rockets, target locators and unmanned aerial vehicles. Liu stole the files to position and prepare himself for future employment in China. As part of that plan, Liu delivered presentations about the technology at several Chinese universities, the Chinese Academy of Sciences and conferences organized by Chinese government entities. However, Liu was not charged with any crimes related to those presentations.

On Nov. 12, 2010, Liu boarded a flight from Newark Liberty International Airport to China. Upon his return to the United States Nov. 29, 2010, agents found Liu in possession of a non-work-issued computer found to contain the stolen material. The following day, Liu lied to agents of the Department of Homeland Security about the extent of his work on U.S. defense technology, which the jury found to be a criminal false statement.

The U.S. Department of State's Directorate of Defense Trade Controls later verified that several of the stolen files on Liu's computer contained export-controlled technical data that relates to defense items listed on the United States Munitions List (USML). Under federal regulations, items and data covered by the USML may not be exported without a license, which Liu did not obtain. The regulations also provide that it is the policy of the United States to deny licenses to export items and data covered by the USML to countries with which the United States maintains an arms embargo, including China.

The jury heard testimony that Liu's company trained him about the United States' export control laws and told him that most of the company's products were covered by those laws.
After the verdict, Judge Chesler ordered Liu taken into custody, citing the penalties Liu faces, his ties to China and the lack of an extradition treaty with China, among other reasons.

Liu faces the following maximum penalties, per count:

·                             Export violations – 20 years in prison; $1 million fine,

·                             Stolen trade secrets violation – 10 years in prison; $250,000 fine,

·                             Interstate transportation of stolen property – 10 years in prison; $250,000 fine, and

·                             False statement – five years in prison; $250,000 fine.

On Duty Government Officer Arrested with 9.7 lbs of Marijuana

A state government employee is in federal custody after his arrest Wednesday, September 26, 2012, on a drug charge. U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) special agents are investigating the case.

Saul Velasco, 37, of Alamogordo, N.M., is charged with possession with intent to distribute marijuana. He was arrested Sept. 26 at the U.S. Customs and Border Protection (CBP) Border Patrol checkpoint on U.S. Highway 70 west of Alamogordo.

According to court documents, Border Patrol agents found 9.7 pounds of marijuana in the state government vehicle Velasco was driving. As New Mexico juvenile probation officer, Velasco was on official duty when he was arrested.

There were 10 bundles of marijuana in a gym bag inside Velasco's vehicle, according to court documents. He allegedly paid $2,500 for the nearly 10 pounds of marijuana from a man whom he met near a restaurant on U.S. Highway 54, north of El Paso, Texas.

Velasco had his initial appearance in federal court Thursday, September 27, 2012, in Las Cruces; he was scheduled for a preliminary and detention hearing Friday, September 28, 2012. HSI special agents assigned to the Border Enforcement Security Task Force (BEST) in Las Cruces continue to investigate the case.

BEST is a U.S. Department of Homeland Security (DHS), ICE-led initiative that operates along the U.S.-Mexico border. BEST in Las Cruces was formed in June 2009, and is one of 32 BEST teams with locations around the U.S. and Mexico. HSI is charged with enforcing a wide array of immigration and customs laws, including those related to securing the border and combating criminal smuggling.

Las Cruces BEST members include the following law enforcement agencies: HSI, ICE's Enforcement and Removal Operations (ERO), CBP's Border Patrol and Office of Field Operations, the Drug Enforcement Administration, and the Doña Ana Sheriff's Office.

BEST members are co-located so that they can effectively share information among their partner agencies. Close coordination among federal, state and local law enforcement agencies helps to identify and eliminate cross-border criminal organizations and the infrastructures that sustain them.

ICE Trip Provides Insight into U.S. Detention and Deportation Practices

U.S. Immigration and Customs Enforcement (ICE) recently hosted a familiarization trip for Honduran and Guatemalan immigration officials to learn more about the United States' detention and removal process and policies, and to strengthen ties between the United States and both countries.

During a three-day trip, the officials, along with foreign service nationals and representatives from foreign nongovernmental organizations, traveled to south Texas to gain personal insight into the lifecycle of the detention and removal process.

"From the safe and humane treatment of detainees in detention facilities to the detailed planning that goes into each repatriation flight, they [the officials] now have a greater understanding of the processes," said Marlen Pineiro, ICE assistant attaché in Guatemala. "The tour also gave them an opportunity to address any questions and concerns about treatment, the facilities and property issues."

Marta Munoz, Guatemalan director of consular affairs, found the tour to be educational. She said she is now able to better, "explain [to] the population in general the conditions that people who will be deported are living in and able to clarify the wrong concepts [some people] have regarding the treatment [of] Guatemalans [who] are deported."

After arriving in San Antonio, the contingent visited two ICE adult detention centers – the South Texas Detention Center and the Karnes County Civil Detention Center, ICE's newest detention facility in Pearsall, Texas. This visit gave participants the chance to see firsthand where detainees are housed, the wide-range of services offered and the many protocols that are followed.

The group also toured the Baptist Child and Family Services Juvenile Shelter, which is overseen by the U.S. Department of Health and Human Services' Office of Refugee Resettlement. It houses juveniles during the tenure of their immigration court proceedings. Throughout the facility tours, ICE's Enforcement and Removal Operations (ERO) officers were on hand to answer questions about facility operations.

Additionally, the delegates also observed an immigration court proceeding at the South Texas Detention Center, a program that is managed by the Department of Justice's Executive Office for Immigration Review.

For the final leg of the trip, the delegates flew on a scheduled ICE ERO repatriation flight to their respective countries. Staffed by government contractors and ICE Air Operations ERO officers, these flights enable the agency to repatriate large groups of deportees, who have final orders of removal from an immigration judge, in an efficient, expeditious and humane manner.

On an average weekly basis, ICE Air Operations charters approximately eight flights to both Guatemala and Honduras. Each of these flights holds approximately 135 deportees.

Considering the high volume of removals both governments process every day, a familiarization trip like this one goes a long way toward improving coordination and process efficiency and communication channels.

"Any time we can help the host governments better understand what and why we do certain processes, it truly helps to continue to improve our relationships with them," said Pinero. "And, in turn, it helps us understand their needs as they receive their nationals."

Jose Zaldano, a Honduran immigration official on the trip, said he found learning about the administrative and operational procedures in the detention centers for adults and the shelters for minors, as well as the reception protocols of those who are repatriated to the Honduran Republic most beneficial.

"Overall, the trip provided a better understanding of the removal program, fostered communication and stimulated new ideas to improve the repatriation program with the governments," added Everett Chase, ICE assistant attaché in Honduras.

Business Owner Sentenced for Illegal Alien Employment Ring

An Arkansas business owner was sentenced to 30 months in federal prison Monday, September 24, 2012, for providing counterfeit immigration documents and Social Security cards to illegal aliens and then employing them at various locations across three states. The sentence follows an investigation led by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).

Valentin Gutierrez, 53, owner of Action Staffing and Action Labor Contractors in Arkansas, Mississippi and Alabama, was sentenced as a result of his May 10 guilty plea to one count of harboring and shielding illegal aliens for financial gain. In addition to the sentence Gutierrez was ordered to pay $10,000 in fines and to serve two years supervised release upon his release from prison.

HSI special agents received information in November 2008 that Gutierrez was employing illegal aliens and providing them with counterfeit work authorization documents. HSI subsequently arrested 13 foreign nationals associated with the scheme. Investigators also determined from financial records that Gutierrez made at least $6.4 million from May to December 2008 as a result of selling illegal alien labor to various companies. HSI seized Gutierrez's bank accounts and recovered approximately $117,000 in forfeited funds traced to harboring and shielding illegal aliens.

The FBI along with task force officers from the Rogers Police Department, the Washington County Sheriff's Office and the Springdale Police Department assisted with the case.

Scott Crawford, resident agent in charge of the HSI Fayetteville field office said this successful prosecution resulted from a coordinated effort of federal, state and local law enforcement agencies and this case illustrates the serious consequences of harboring and shielding illegal aliens.

"This case shows that individuals who violate immigration laws face significant penalties along with the forfeiture of proceeds gained as a result of their criminal activity," said Crawford. "This sentence serves as a stark reminder that employing illegal aliens or assisting others in doing so is a serious crime that carries serious penalties. Federal, state and local law enforcement partners work vigilantly each day and will continue to identify these criminals and ensure they face justice."