LAS VEGAS, Nev. — A Las Vegas resident pleaded guilty in federal court yesterday to fraudulently obtaining nearly $1.2 million in Social Security Administration (SSA) and Department of Veterans Affairs (VA) benefits, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.

Javier Montano, 57, of Las Vegas, pleaded guilty to one count of theft of government funds. He is scheduled to be sentenced by U.S. District Judge Jennifer Dorsey on December 14, 2020.

According to court documents, Montano — who was the branch manager of a bank in Las Vegas — received information about two accounts with large balances and no activity:

The first account (Account A) was held by a Las Vegas resident who was receiving SSA retirement benefits. The individual passed away in February 1997. The SSA was not notified about the individual’s death, and benefits continued to be paid into the account.

 

The second account (Account B) was held by a Las Vegas resident who was receiving both SSA retirement benefits and VA benefits. The individual passed away in June 2011. Neither the SSA nor the VA was notified about the individual’s death, and benefits continued to accumulate in the account.

 

Through a bank computer, Montano ordered debit cards for both accounts, using them to withdraw cash — which he either spent or deposited into his personal bank account — and to make purchases for his personal use and benefit. In addition, Montano ordered and wrote checks (for his personal use) for Account B. Montano also used his authority as a branch manager to authorize a $35,000 cashier’s check from Account B. He then used the funds to buy a luxury car, which he has agreed to forfeit to the United States.

 

In total, between August 2015 and June 2020, Montano fraudulently obtained: (a) approximately $436,686.80 in SSA benefits to which he was not entitled; and (b) approximately $757,985.88 in VA benefits to which he was not entitled.

 

The statutory maximum penalty faced by Montano is 10 years in prison and a $250,000 fine. The sentencing of a defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

 

This case was the product of an investigation by the Social Security Administration, Office of Inspector General, and Department of Veterans Affairs, Office of Inspector General. Assistant U.S. Attorney Jamie Mickelson is prosecuting the case.

 

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LAS VEGAS, Nev. – Today, U.S. Attorney Nicholas A. Trutanich for the District of Nevada joins Attorney General William P. Barr and the Department of Justice in observing the 15th Annual World Elder Abuse Awareness Day. The U.S. Attorney’s Office for the District of Nevada echoes voices around the world condemning elder abuse, neglect, and exploitation.

“Elder Abuse Awareness Day reinforces the importance of not only prosecuting criminals who target seniors, but also conducting outreach to raise awareness and providing guidance to help recognize fraud schemes,” said U.S. Attorney Trutanich. “Our office looks forward to continue working with our law enforcement partners to bring to justice those who prey on the elderly.”

The COVID-19 pandemic has created unprecedented challenges for our country and the world, but our senior citizens are among those most severely affected by the threat of the novel virus. During this time, when seniors are most vulnerable and isolated from their families and loved ones by social distancing and quarantine restrictions, bad actors have exploited this international tragedy to prey on the elderly through a host of scam and fraud schemes. As the world takes this day to remember the elderly, the Department of Justice remains committed to preventing and prosecuting fraud on America’s seniors, including through its Elder Justice Initiative.

The Department of Justice will aggressively prosecute fraudsters exploiting the COVID-19 pandemic and targeting seniors by, among other things, offering fake testing kits and fake help to obtain stimulus and Paycheck Protection Program Funds. On this day dedicated to recognizing our seniors, the Department sends the message that it will continue the fight to keep seniors safe.

Earlier this year, Attorney General Barr declared “Prevention and Disruption of Transnational Elder Fraud” to be an Agency Priority Goal, making it one of the Department’s four top priorities. Major strides have already been made to that end:

National Elder Fraud Hotline (833-FRAUD-11): Earlier this year Attorney General Barr launched a National Elder Fraud Hotline. Staffed by experienced case managers who provide personalized support to callers, the hotline serves to assist elders and caretakers who believe they have been a victim of fraud by reporting and providing appropriate services.

 

Transnational Elder Fraud Strike Force: Established in June 2019 to combat foreign elder fraud schemes, the Strike Force is composed of the Department’s Consumer Protection Branch and six U.S. Attorneys’ Offices along with FBI special agents, Postal Inspectors, and numerous other law enforcement personnel.  Since its inception, prosecutors in Strike Force districts brought cases against more than 140 sweep defendants.

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Annual Elder Justice Sweep: In March of this year, the Attorney General announced the largest coordinated sweep of elder fraud cases in department history. The Department, together with every U.S. Attorney’s office, charged more than 400 defendants, causing over $1 billion in loss through fraud schemes that largely affected seniors, including the following cases in the District of Nevada.



U.S. v. Castro, et al.: Six Las Vegas-area residents with running a fraudulent mass-mailing scheme that defrauded hundreds of thousands of consumers — many of whom were elderly — into paying more than $10 million in fees for falsely promised cash prizes.

U.S. v. Marcks, et al.: Five Las Vegas-area residents were charged in a 22-count indictment relating to an India-based telemarketing and email marketing conspiracy that targeted seniors. The defendants allegedly obtained over $2.4 million from victims residing throughout the United States.



 

Money Mule Initiative: Since October 2018, the Department and its law enforcement partners began a concentrated effort across the country and around the world to disrupt, investigate, and prosecute money mule activity used to facilitate fraud schemes, especially those victimizing senior citizens. In 2019, the Money Mule Initiative halted the conduct of more than 600 domestic money mules, exceeding a similar effort against approximately 400 mules in the previous year.

 

Holding foreign-based perpetrators and those that flee the United States accountable: Transnational criminal organizations are targeting our elder population in schemes including mass mailing fraud, grandparent scams, romance scams, lottery and sweepstakes scams, IRS and Social Security Administration imposter scams, and technical-support scams. For example, in 2019, the U.S. Attorney’s Office for the District of Nevada charged four executives at PacNet Services Ltd, a payment processing company based in Vancouver, Canada, with engaging in a massive fraud scheme in which PacNet processed payments for companies that mailed fraudulent notifications to consumers (including many who were elderly or vulnerable) in the United States.

 

For more information on enforcement actions, training and resources, research, and victim services, please visit www.justice.gov/elderjustice.  

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LAS VEGAS, Nev. – A Las Vegas tax return preparer who falsified his own tax returns as well as those of his clients was sentenced today to 15 months in federal prison, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Acting IRS Special Agent in Charge (Criminal Investigation) Ismael J. Nevarez Jr.

According to documents and information provided to the court, for tax years 2013 through 2016, Rosalio Amezcua Alcantar, 67, willfully underreported his taxable income while operating his tax return preparation business, Direct Services Group, in Las Vegas, Nevada. By falsely reporting less revenue than he earned and by claiming business expenses that were either fictitious or impermissible, Alcantar underreported his taxable income by more than $140,000 over the course of four years.

As part of the plea agreement, Alcantar also admitted that, in his capacity as a tax preparer, he purposely and fraudulently claimed charitable contribution and business expense deductions to which his clients were not entitled. As a result of false returns he filed on behalf of his clients, Alcantar caused more than $200,000 in tax loss. Alcantar further admitted that he also misrepresented his income to the Social Security Administration to fraudulently obtain Social Security benefits for himself and his daughter.

At the time Alcantar committed these acts, he was serving a three-year term of supervised release imposed after his federal conviction for Conspiracy to Commit Mail and Wire Fraud.

In addition to the term of imprisonment, U.S. District Court Judge James C. Mahan ordered Alcantar to serve one year of supervised release and to pay restitution of $62,597.40 to the Internal Revenue Service and Social Security Administration.

The case was investigated by Internal Revenue Service–Criminal Investigation and the Treasury Inspector General for Tax Administration. Assistant U.S. Attorney Tony Lopez prosecuted the case.