Stolen Italian Cultural Property to be Returned to Italy

A rare Etruscan black-figure kalpis, which has been traced back to 510 B.C., will be returned to the Italian government following a transfer ceremony Tuesday, January 8, 2013, at the Toledo Museum of Art.

A June 2012 agreement between the United States and the Toledo Museum of Art followed by the transfer ceremony of Tuesday, January 8, 2013, is the culmination of an extensive investigation by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) to restore the true provenance of the kalpis.

The kalpis, a ceramic vessel used in ancient times for holding water, depicts a mythological scene of pirates being transformed into dolphins by Dionysos. It was smuggled out of Italy after an illegal excavation prior to 1981. It was then sold in 1982 to the Toledo Museum of Art by art dealers Gianfranco and Ursula Becchina, who had earlier purchased it from convicted art smuggler Giacomo Medici. The Becchinas misrepresented the true provenance of the vase to the museum by providing falsified documentation.

Following a January 2010 lead from HSI Rome, Cleveland-based HSI special agents launched an investigation into the true provenance of the artifact. Working closely with law enforcement officials in Italy, HSI special agents were able to definitively establish that the documentation provided to the Toledo Museum of Art was falsified and part of a larger scheme by the Becchinas to sell illegitimately obtained cultural property. Gianfranco Becchina was convicted in February 2011 of illicitly dealing in antiquities by a court in Rome. That conviction was appealed by Becchina and remains in the Italian court system.

According to court documents, the kalpis has been valued at more than $665,000.
"Art and antiquities are given a monetary value in the marketplaces in which they are traded," said William Hayes, acting special agent in charge of HSI Detroit. "But the cultural and symbolic worth of these objects far surpasses any dollar value to the people and nations of the origin of these works. We are pleased today that this ancient vessel will be returned to the people of Italy. And other governments around the world can be assured that HSI remains a committed partner in the effort to return stolen and looted priceless cultural objects to their rightful owners."

Ambassador of Italy to the United States Claudio Bisogniero said, "Collaboration with U.S. authorities in this sector is one of our top priorities, not only because of the intrinsic value of the properties as in the case of the Etruscan black-figure kalpis, but also because these returns are a tangible way to restrain international trafficking in works of art. We are very pleased by this result, especially since it coincides with the start of our celebrations for 2013-Year of Italian culture in the United States."

"It has been said that, 'Principles only matter if you stick to them even when it is inconvenient,'" said U.S. Attorney for the Northern District of Ohio Steven M. Dettelbach. "And so, I want every museum, every business and every school child here in Toledo to see and understand that today is about living up to a very basic principle. When you find out that something is not rightfully yours – no matter how special, no matter how beautiful or no matter how costly that thing might be – you give it back."

"Today we transfer to law enforcement authorities a celebrated Etruscan kalpis because we have uncovered evidence that it has inadequate provenance," said Toledo Museum of Art Director Brian Kennedy. "This is the first step toward this object being repatriated to Italy, where we understand it will be placed on public view in Rome."

HSI plays a leading role in criminal investigations that involve the illegal importation and distribution of cultural property, including the illicit trafficking of cultural property, especially objects that have been reported lost or stolen. The HSI Office of International Affairs, through its 73 offices in 47 countries, works closely with foreign governments to conduct joint investigations, when possible.

HSI's specially trained investigators, assigned to both domestic and international offices, partner with governments, agencies and experts to protect cultural antiquities. They also provide cultural property investigative training to law enforcement partners for crimes involving stolen property and art, and how to best enforce the law to recover these items when they emerge in the marketplace.

Since 2007, more than 6,600 artifacts have been returned to 24 countries, including paintings from France, Germany, Poland and Austria, 15th to 18th century manuscripts from Italy and Peru, as well as cultural artifacts from China, Cambodia and Iraq.

Internet Piracy Group Leader Sentenced for Criminal Copyright Conspiracy

The leader of the Internet piracy group "IMAGiNE" was sentenced Thursday, January 3, 2013, to 60 months in prison following an investigation by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) in Washington, D.C.

Jeramiah B. Perkins, 40, of Portsmouth, Va., was sentenced by U.S. District Judge Arenda L. Wright Allen in the Eastern District of Virginia. In addition to his prison term, Perkins was sentenced to serve three years of supervised release and ordered to pay $15,000 in restitution. On Aug. 29, 2012, Perkins pleaded guilty to one count of conspiracy to commit criminal copyright infringement.

Perkins was indicted along with three other defendants April 18, 2012, for their roles in the IMAGiNE Group, an organized online piracy ring that sought to become the premier group to first release Internet copies of movies only showing in theaters.

According to court documents, Perkins directed and participated in using receivers and recording devices in movie theaters to secretly capture the audio sound tracks of copyrighted movies and then synchronized the audio files with illegally recorded video files to create completed movie files suitable for sharing over the Internet among members of the IMAGiNE Group and others.

Perkins admitted he took the lead in renting computer servers in France and elsewhere for use by the IMAGiNE Group. He also admitted he registered domain names for use by the IMAGiNE Group, and opened e-mail and PayPal accounts to receive donations and payments from persons downloading or buying IMAGiNE Group releases of pirated copies of motion pictures and other copyrighted works.

According to testimony by a representative of the Motion Picture Association of America, the IMAGiNE Group constituted the most prolific motion picture piracy release group operating on the Internet from September 2009 through September 2011.

Co-defendants Sean M. Lovelady, Willie O. Lambert and Gregory A. Cherwonik each pleaded guilty to one count of conspiracy to commit criminal copyright infringement May 9, June 22 and July 11, 2012 respectively. Lambert and Lovelady were sentenced Nov. 2, 2012, to 30 months and 23 months in prison respectively. Cherwonik was sentenced Nov. 29, 2012, to 40 months in prison. A fifth co-defendant, Javier E. Ferrer, was charged in an information Sept. 13, 2012, for his role in the IMAGiNE Group and he pleaded guilty to one count of conspiracy to commit criminal copyright infringement Nov. 29, 2012. Ferrer is scheduled to be sentenced March 14.

Assistant U.S. Attorney Robert J. Krask of the Eastern District of Virginia and Senior Counsel John H. Zacharia of the Criminal Division's Computer Crime and Intellectual Property Section (CCIPS) are prosecuting the case. Significant assistance was provided by the CCIPS Cyber Crime Lab and the Department of Justice (DOJ) Criminal Division's Office of International Affairs.

This investigation was supported by the HSI-led National Intellectual Property Rights Coordination Center (IPR Center) in Washington. The IPR Center is one of the U.S. government's key weapons in the fight against counterfeiting and piracy. Working in close coordination with the DOJ Task Force on Intellectual Property (IP 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 intellectual property theft.

Through this strategic interagency partnership, the IPR Center protects the public's health and safety, the U.S. economy and the war fighters.

This case is part of efforts being undertaken by the IP Task Force to stop the theft of intellectual property. 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. 

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.

Guilty Plea from Florida Man Who Smuggled Dinosaur Fossils

A Florida man pleaded guilty Dec. 27 to engaging in a scheme to illegally import into the United States numerous dinosaur fossils that had been smuggled out of their native country. This guilty plea resulted from an investigation by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).

As part of his plea agreement, Eric Prokopi, 38, agreed to the forfeiture of a nearly complete Tyrannosaurus bataar skeleton (the First bataar), which was looted from Mongolia and sold at auction in Manhattan for over $1 million. The First bataar was the subject of a separate pending civil forfeiture action. Prokopi also agreed to forfeit a second nearly complete Tyrannosaurus bataar skeleton, a Saurolophus skeleton, and an Oviraptor skeleton, all of which he possessed and were recently recovered by the government. In addition, Prokopi will forfeit his interest in a third Tyrannosaurus bataar skeleton believed to be located in Great Britain. All of the fossils originated in Mongolia. The skeleton of a Chinese flying dinosaur that Prokopi illegally imported has already been administratively forfeited.

According to court documents, and statements made in Manhattan federal court, Prokopi owned and ran a business out of his Florida home and is a self-described commercial paleontologist. He bought and sold whole and partial fossilized dinosaur skeletons. Between 2010 and 2012, he acquired dinosaur fossils from foreign countries and unlawfully transported them to the United States, misrepresenting the contents of shipments on customs forms. Many of the fossils were unlawfully taken from Mongolia in violation of Mongolian laws declaring dinosaur fossils to be the property of the Government of Mongolia, and criminalizing their export from the country.

Aware that the dinosaur fossils had been removed from Mongolia illegally, Prokopi worked with others to bring these dinosaur fossils into the United States, using false or misleading statements on customs forms concerning their identity, origin and value. He then sold or attempted to sell these fossils.

Among the fossils unlawfully procured, transported or sold in this fashion were the first bataar and an additional nearly complete Tyrannosaurus bataar skeleton (the second bataar), two Saurolophus skeletons, one of which was sold to the I.M. Chait Gallery in California for $75,000, and two Oviraptor skeletons. The Saurolophus skeleton sold to the auction house was seized in September 2012. The remaining Saurolophus skeleton and the Oviraptor skeletons were recovered from Prokopi during the investigation.

Tyrannosaurus bataar was a carnivorous dinosaur that lived during the late Cretaceous period, about 70 million years ago. The Saurolophus, which also lived during the late Cretaceous period, was a duckbilled, plant-eating dinosaur. The Oviraptor, of the same time period, featured a parrot-like skull.

Earlier, in 2010, Prokopi illegally imported into the United States the fossilized remains of a small, flying dinosaur from China, by directing another individual to make false claims on importation paperwork.

Prokopi pleaded guilty to one count of conspiracy with respect to the Chinese flying dinosaur, one count of entry of goods by means of false statements with respect to the Mongolian dinosaurs, and one count of interstate and foreign transportation of goods converted and taken by fraud. He faces a maximum sentence of five years in prison on the conspiracy count, a maximum of two years on the entry of goods by means of false statements count, and a maximum of 10 years on the interstate transportation of goods converted and taken by fraud.

In addition, Prokopi has agreed to forfeit the proceeds of his offense, including but not limited to, the first bataar, the second bataar, any and all interest in the Tyrannosaurus skeleton believed to be in Great Britain, the Saurolophus and Oviraptor skeletons that had been in Prokopi's custody, and any and all other fossil parts of Mongolian origin that Prokopi brought into the country between 2010 and 2012. For each of the three counts in the information, Prokopi faces a maximum fine of $250,000 or twice the gross gain or loss from the offense. Prokopi is scheduled to be sentenced by U.S. District Judge Alvin K. Hellerstein April 25, 2013.

HSI plays a leading role in criminal investigations that involve the illegal importation and distribution of cultural property, including the illicit trafficking of cultural property, especially objects that have been reported lost or stolen. The HSI Office of International Affairs, through its 73 attaché offices in 47 countries, works closely with foreign governments to conduct joint investigations, when possible.

HSI's specially trained investigators, assigned to both domestic and international offices, partner with governments, agencies and experts to protect cultural antiquities. They also provide cultural property investigative training to law enforcement partners for crimes involving stolen property and art, and how to best enforce the law to recover these items when they emerge in the marketplace.

Since 2007, more than 6,600 artifacts have been returned to 24 countries, including paintings from France, Germany, Poland and Austria, 15th to 18th century manuscript from Italy and Peru, as well as cultural artifacts from China, Cambodia and Iraq. 

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. 

Guatemalan ICE Detainee Passes Away in Phoenix

A Guatemalan man in the custody of U.S. Immigration and Customs Enforcement (ICE) passed away early Sunday, December 23, 2012, at St. Joseph's Hospital, where he had been undergoing treatment for diabetes complications.

Manuel Cota-Domingo, 34, a detainee at the Eloy Detention Center, was rushed to Florence Anthem Hospital in Florence Thursday, December 20, 2012, after complaining of chest pains and labored breathing. Physicians at the hospital determined Cota-Domingo was suffering from diabetic ketoacidosis, an emergency condition caused by untreated hyperglycemia. 

On Saturday, December 22, 2012, Cota-Domingo was transferred by air ambulance to St. Joseph's Hospital in Phoenix, where he was placed in the intensive care unit. Hospital staff notified ICE officials that Cota-Domingo passed away Sunday, December 23, 2012, just before 1 a.m.

Cota-Domingo, who had recently crossed the border unlawfully, originally came into ICE custody after he was encountered Dec. 8 by U.S. Border Patrol near Sasabe. He had been detained at the Eloy Detention Center since Dec. 12, pending his removal to Guatemala, which was scheduled for Dec. 26. While at Eloy, Cota-Domingo received two routine medical screenings, but he did not disclose his health condition to medical staff until he became ill.

ICE advised the Guatemalan consulate that Cota-Domingo had been admitted to the hospital and provided consular officials with regular updates regarding his condition. Consular officials notified Cota-Domingo's next of kin in Guatemala of his death.

Cota-Domingo is the first detainee to pass away in ICE custody in fiscal year 2013.

Happy New Year from M.C. Law Group!