Binance Holdings Limited (Binance), the entity that operates the world’s largest cryptocurrency exchange, Binance.com, pleaded guilty today and has agreed to pay over $4 billion to resolve the Justice Department’s investigation into violations related to the Bank Secrecy Act (BSA), failure to register as a money transmitting business, and the International Emergency Economic Powers Act (IEEPA).
Binance’s founder and chief executive officer (CEO), Changpeng Zhao, a Canadian national, also pleaded guilty to failing to maintain an effective anti-money laundering (AML) program, in violation of the BSA and has resigned as CEO of Binance.
Binance’s guilty plea is part of coordinated resolutions with the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) and Office of Foreign Assets Control (OFAC) and the U.S. Commodity Futures Trading Commission (CFTC).
“Binance became the world’s largest cryptocurrency exchange in part because of the crimes it committed – now it is paying one of the largest corporate penalties in U.S. history,” said Attorney General Merrick B. Garland. “In just the past month, the Justice Department has successfully prosecuted the CEOs of two of the world’s largest cryptocurrency exchanges in two separate criminal cases. The message here should be clear: using new technology to break the law does not make you a disruptor, it makes you a criminal.”
“Binance turned a blind eye to its legal obligations in the pursuit of profit. Its willful failures allowed money to flow to terrorists, cybercriminals, and child abusers through its platform,” said Secretary of the Treasury Janet L. Yellen. “Today’s historic penalties and monitorship to ensure compliance with U.S. law and regulations mark a milestone for the virtual currency industry. Any institution, wherever located, that wants to reap the benefits of the U.S. financial system must also play by the rules that keep us all safe from terrorists, foreign adversaries, and crime or face the consequences.”
“A corporate strategy that puts profits over compliance isn’t a path to riches; it’s a path to federal prosecution,” said Deputy Attorney General Lisa O. Monaco. “Today’s charges and guilty pleas – combined with a more than $4 billion financial penalty – sends an unmistakable message to crypto and defi companies: if you serve U.S. customers, you must obey U.S. law.”
“Changpeng Zhao made Binance, the company he founded and ran as CEO, into the largest cryptocurrency exchange in the world by targeting U.S. customers, but refused to comply with U.S. law,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “Binance’s and Zhao’s willful violations of anti-money laundering and sanctions laws threatened the U.S. financial system and our national security, and each of them has now pleaded guilty. Make no mistake: when you place profits over compliance with the law, you will answer for your crimes in the United States.”
“Binance’s crimes gave sanctioned customers unfettered access to American capital and financial services,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division (NSD). “This prosecution is a warning that companies that do not build sanctions compliance into their services face serious criminal penalties, as do the executives who lead them.”
“From the beginning of its existence, Binance and founder Changpeng Zhao chose growth and personal wealth over following financial regulations aimed at stopping the laundering of criminal cash,” said Acting U.S. Attorney Tessa M. Gorman for the Western District of Washington. “Because Changpeng Zhao knowingly operated a financial platform without basic anti-money laundering safeguards, the company caused illegal transactions between U.S. users and users in sanctioned jurisdictions such as Iran, Cuba, Syria, and Russian-occupied regions of Ukraine – transactions for which Binance profited with significant fees.”
“Binance’s activities undermined the foundation of safe and sound financial markets by intentionally avoiding basic, fundamental obligations that apply to exchanges, all the while collecting approximately $1.35 billion in trading fees from U.S. customers,” said Chairman Rostin Behnam of the Commodity Futures Trading Commission (CFTC). “American investors, small and large, have demonstrated eagerness to incorporate digital asset products into their portfolios. It is our duty to ensure that when they do so, the full protections afforded by our regulatory oversight are in place, and that illegal and illicit conduct is swiftly addressed. When, as here, an entity goes even further, deliberately avoiding to employ meaningful access controls, intentionally avoiding knowing customers’ identities, and actively concealing the presence of U.S. customers on its platforms, there is no question that the CFTC will strike hard and aggressively.”
“When you put growth above compliance, you end up in hot water,” said Chief Jim Lee of the IRS Criminal Investigation (IRS-CI). “Our team of investigators uncovered that Binance disregarded anti-money laundering Know Your Customer laws, failed to register as a money transmitter, and willfully violated U.S. sanctions tied to the International Emergency Economic Powers Act. When you do so, your business becomes a playground for bad actors. Hundreds of millions of dollars in illicit proceeds from ransomware variants, darknet transactions, and various internet-related scams moved through Binance in an attempt to evade detection by law enforcement.”
According to court documents, Binance admitted to prioritizing growth and profits over compliance with U.S. law. Binance launched in 2017 and focused on attracting high-volume customers, including U.S.-based customers. Binance quickly became the largest cryptocurrency exchange in the world, with the greatest share of its customers coming from the United States. As a result of serving U.S. customers, Binance was required to register with FinCEN as a money services business and to implement an effective AML program that was reasonably designed to prevent Binance from being used to facilitate money laundering. Binance chose not to comply with U.S. law and failed to implement controls and procedures to prevent money laundering. Binance also did not implement controls that would have prevented U.S. customers from conducting transactions with customers in sanctioned jurisdictions, despite knowing that the system it used to match customers for transactions would necessarily cause transactions in violation of IEEPA.
Instead of complying with U.S. law, in 2019, Binance announced that it would block U.S. customers and launched a separate U.S. exchange, Binance.US. Despite this announcement, Binance took steps to maintain a substantial number of U.S. customers. In particular, Binance focused on retaining valuable “VIP” customers, which were responsible for a large portion of Binance’s trading volume and revenue. These VIP customers were critical to Binance’s business because they helped provide the necessary liquidity to facilitate trades of digital assets. For example, Binance executives, including Zhao, made a plan to contact VIP customers and help the VIP register a new account for an offshore entity and transfer holdings to that account. Binance employees also called U.S. VIPs to encourage them to provide information that suggested the customer was not located in the United States.
Binance also did not implement the core components of an effective AML program: Binance did not implement comprehensive know-your-customer (KYC) protocols or systematically monitor transactions, and Binance never filed a suspicious activity report (SAR) with FinCEN. For years, Binance allowed users to open accounts and trade without submitting any identifying information beyond an email address. Binance began requiring all users to provide KYC information in August 2021 but allowed users who had not provided KYC to continue trading on the exchange until May 2022. Between August 2017 and October 2022, U.S. users, including VIPs, conducted trillions of dollars in transactions on the platform, generating over $1.6 billion in profit for Binance.
As Binance’s internal communications showed, Binance’s compliance employees recognized that Binance did not have protocols to flag or report transactions for money laundering risks, which employees recognized would attract criminals to the exchange. As one compliance employee wrote, “we need a banner ‘is washing drug money too hard these days - come to binance we got cake for you.’” Due in part to Binance’s failure to implement an effective AML program, illicit actors used Binance’s exchange in various ways, including conducting transactions for mixing services that obfuscated the source and ownership of cryptocurrency; transferring illicit proceeds from ransomware variants; and moving proceeds of darknet market transactions, exchange hacks, and various internet-related scams.
Binance also knew that U.S. sanctions laws prohibited U.S. persons – including its U.S. customers – from trading with its customers subject to U.S. sanctions, including customers in comprehensively sanctioned jurisdictions, such as Iran. Binance knew that it had a significant number of users from comprehensively sanctioned jurisdictions and a substantial number of U.S. users and that its matching engine would necessarily cause U.S. users to transact with users in sanctioned jurisdictions in violation of U.S. law. Nonetheless, Binance did not implement controls that would prevent U.S. users from trading with users in Iran; and, because of this intentional failure, between January 2018 and May 2022, Binance willfully caused over $898 million in trades between U.S. users and users ordinarily resident in Iran.
As part of the plea agreement, Binance has agreed to forfeit $2,510,650,588 and to pay a criminal fine of $1,805,475,575 for a total financial penalty of $4,316,126,163. Binance has also agreed to retain an independent compliance monitor for three years and remediate and enhance their anti-money laundering and sanctions compliance programs. Binance separately has also reached agreements with the CFTC, FinCEN, and OFAC, and the Department will credit approximately $1.8 billion toward those resolutions.
The Department reached its resolution with Binance based on a number of factors, including the nature, seriousness, and pervasiveness of the offense, as a result of which Binance processed billions of dollars of cryptocurrency transactions for U.S. persons and caused U.S. customers to engage in transactions in violation of U.S. sanctions. Binance did not make a timely and voluntary disclosure of wrongdoing, but it received partial credit for its cooperation with the Department’s investigation, and it has taken steps to remediate its compliance program. Binance did not receive full credit for its cooperation because it delayed producing relevant evidence, including recorded meetings in which Binance executives discussed U.S. legal requirements. Accordingly, the total criminal penalty reflects a 20% reduction off the bottom of the applicable U.S. sentencing guidelines fine range.
In addition, according to court documents, Zhao, Binance’s founder, owner, and CEO, admitted that he understood that Binance served U.S. users and was thus required to register with FinCEN and implement an effective AML program. Zhao knew that U.S. users were essential to Binance’s growth and were a significant source of revenue and knew that an effective AML program would include KYC protocols that would mean that some customers would choose not to use Binance. Zhao told employees it was “better to ask for forgiveness than permission,” and prioritized Binance’s growth over compliance with U.S. law. Without an effective AML program, Binance caused transactions between U.S. users and users in jurisdictions subject to U.S. sanctions. These illegal transactions were a clear and foreseeable result of Zhao’s decision to prioritize Binance’s profit and growth over compliance with the BSA.
IRS-CI is investigating the case. The case is being prosecuted by Bank Integrity Unit Deputy Chief and National Cryptocurrency Enforcement Team Deputy Director Kevin Mosley and Trial Attorney Elizabeth Carr of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), Trial Attorneys Beau Barnes and Alex Wharton of NSD’s Counterintelligence and Export Control Section (CES), and Assistant U.S. Attorney (AUSA) Mike Dion for the Western District of Washington. Trial Attorney Julia Jarrett, formerly of MLARS and currently an AUSA for the District of Oregon, and Trial Attorney Matthew Anzaldi, formerly of CES and currently with NSD’s National Security Cyber Section, made substantial contributions to this investigation and prosecution.
MLARS’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system. The Criminal Division has surged resources to the Bank Integrity Unit, which has imposed over $12 billion in penalties on financial institutions for sanctions violations over the last decade. NSD’s Counterintelligence and Export Control Section investigates and prosecutes individuals and corporations for violations of export control and sanctions laws, in addition to other national security crimes. NSD continues to expand its corporate enforcement efforts – including growing the ranks of prosecutors dedicated to this work and establishing a Chief Counsel and Deputy Chief Counsel for Corporate Enforcement.
LAS VEGAS, Nev. — William Etheridge, 56, pleaded guilty today to 11 counts of bank robbery, carjacking, and escape, U.S. Attorney Nicholas A. Trutanich announced.
According to court documents, on May 18, 2017, Etheridge escaped from the Northwest Regional Reentry Center, a contracted correctional facility of the Federal Bureau of Prisons in Oregon, where he was in custody for a federal bank robbery conviction. Shortly after his escape, between June 2, 2017 and July 19, 2017, Etheridge robbed nine banks in Oregon and Washington, and attempted to rob another bank in Oregon.
On July 25, 2017, Etheridge, armed with a black pellet gun, stole $18,120 from a WestStar Credit Union in Las Vegas. He then demanded a ride in one of the victim tellers’ cars. When none of the tellers volunteered to provide him with a ride, he told one of the tellers to leave the bank with him. Upon leaving the bank, Etheridge used force and violence to carjack a vehicle with two victims inside. At Etheridge’s request, the victims dropped him off at a motorcycle dealership in Las Vegas to purchase a motorcycle for use as a getaway vehicle. Shortly thereafter, law enforcement arrested Etheridge at the dealership.
This case was the product of an investigation by the FBI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Nicholas Dickinson is prosecuting the case.
Etheridge was investigated in three federal jurisdictions for his crimes, including the District of Nevada, the Western District of Washington, and the District of Oregon.
Etheridge is scheduled to be sentenced by U.S. District Judge Jennifer A. Dorsey on January 27, 2020. Etheridge faces a maximum statutory penalty of 20 years in prison and a $250 fine for the bank robbery charge; 15 years in prison and a $250,000 fine for the carjacking charge; and five years in prison and a $250,000 fine for the escape charge. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
LAS VEGAS, Nev. – U.S. Attorney Nicholas A. Trutanich for the District of Nevada today announced that more than $65 million in Department of Justice grants is available to help communities combat human trafficking and serve victims of trafficking operations.
“Our nation is facing difficult challenges, none more pressing than the scourge of human trafficking. Human traffickers pose a dire threat to public safety and countering this threat remains one of the Administration’s top domestic priorities,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “The Department of Justice is front and center in the fight against this insidious crime. OJP is making historic amounts of grant funding available to ensure that our communities have access to innovative and diverse solutions.”
“On behalf of the District of Nevada, we are grateful for the Department of Justice’s support in bringing human traffickers to justice and helping victims in our communities,” said U.S. Attorney Trutanich. “Together with our law enforcement partners, the U.S. Attorney’s Office looks forward to effectively and creatively deploying the resources possible through this new grant funding.”
The funding is available through OJP, the federal government’s leading source of public safety funding and crime victim assistance in state, local and tribal jurisdictions. OJP’s programs support a wide array of activities and services, including programs that support human trafficking task forces and services for human trafficking survivors.
A number of funding opportunities are currently open, with several more opportunities opening this week.
Missing and Exploited Children Training and Technical Assistance Program
LAS VEGAS, Nev. – U.S. Attorney Nicholas A. Trutanich for the District of Nevada joined Attorney General William P. Barr, FBI Director Christopher A. Wray, and Chief Postal Inspector Gary R. Barksdale today in announcing the largest coordinated sweep of elder fraud cases in history. Over the past year, prosecutors charged more than 400 defendants, far surpassing the 260 defendants charged in cases as part of last year’s sweep. In each case, offenders allegedly engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused alleged losses of over a billion dollars.
Among the individuals prosecuted in the District of Nevada over the past year:
U.S. v. Castro et al: Mario Castro, Jose Salud Castro, Salvador Castro, Miguel Castro, Jose Luis Mendez, and Andrea Burrow were charged with running a fraudulent mass-mailing scheme that defrauded hundreds of thousands of consumers into paying more than $10 million in fees for falsely promised cash prizes.
U.S. v. Day et al: Rosanne Day, Robert Paul Davis, Genevieve Renee Frappier, and Miles Kelly, all of whom were executives at PacNet Services Ltd, a payment processing company based in Vancouver, Canada, were charged with engaging in a massive fraud scheme in which PacNet processed payments for companies that mailed fraudulent notifications to consumers in the United States and worldwide.
U.S. v. Marcks et al: Gina Marcks, Ladda Boonlert, Charles Hill, Wendi A. Maryniak, and Roger Bond, all of Las Vegas, 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.
“Americans are fed up with the constant barrage of scams that maliciously target the elderly and other vulnerable citizens,” said Attorney General William P. Barr. “This year, the Department of Justice prosecuted more than 400 defendants, whose schemes totaled more than a billion dollars. I want to thank the men and women of the department’s Consumer Protection Branch, which coordinated this effort, and all those in the U.S. Attorneys’ Offices and Criminal Division who worked tirelessly to bring these cases. The department is committed to stopping the full range of criminal activities that exploit America’s seniors.”
U.S. Attorney Trutanich stated: “The District of Nevada appreciates the opportunity to contribute to the Department’s Elder Justice Initiative, which has been producing significant results. Going forward, our office will continue aggressively prosecuting criminals who target seniors, as well as conducting outreach sessions to raise awareness and providing guidance to help recognize financial fraud schemes.
This interactive map provides state by state information on the elder fraud cases and education and prevention community outreach efforts highlighted by today’s sweep announcement.
Elder Fraud Hotline
Attorney General Barr also announced the launch of a National Elder Fraud Hotline, which will provide services to seniors who may be victims of financial fraud. The Hotline will be staffed by experienced case managers who can provide personalized support to callers. Case managers will assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed. When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller. The Hotline’s toll free number is 833-FRAUD-11 (833-372-8311).
For the second year, the Department of Justice and its law enforcement partners also took comprehensive action against the money mule network that facilitates foreign-based elder fraud. Generally, perpetrators use a “money mule” to transfer fraud proceeds from a victim to ringleaders of fraud schemes who often reside in other countries. Some of these money mules act unwittingly, and intervention can effectively end their involvement in the fraud. The FBI and the Postal Inspection Service took action against over 600 alleged money mules nationwide by conducting interviews, issuing warning letters, and bringing civil and criminal cases. Agents and prosecutors in more than 85 federal district participated in this effort to halt the money flow from victim to fraudster. These actions against money mules were in addition to the criminal and civil cases announced as part of this year’s elder fraud sweep.
These outreach efforts have helped to prevent seniors from falling prey to scams and have frustrated offenders’ efforts to obtain even more money from vulnerable elders.
The charges announced today are allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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LAS VEGAS, Nev. – Six Las Vegas, Nevada area residents were charged with running a fraudulent mass-mailing scheme that tricked hundreds of thousands of consumers into paying more than $10 million in fees for falsely promised cash prizes, the Department of Justice has announced.
The unsealed indictment charges Mario Castro, 51, Jose Salud Castro, 70, Salvador Castro, 53, Miguel Castro, 55, Jose Luis Mendez, 45, and Andrea Burrow, 49, with mail fraud and conspiracy to commit mail fraud. The indictment, secured by the Department’s Consumer Protection Branch and the U.S. Attorney’s Office for the District of Nevada, also charges Salvador Castro with making a false statement to investigators. U.S. Postal Inspectors arrested five of the defendants last night. The sixth, Jose Salud Castro, turned himself into authorities this morning.
According to the indictment, the defendants’ prize-notification scheme led victims, many of whom were elderly and vulnerable, to believe that they could pay a small $20 or $30 fee to claim a large cash prize. The indictment alleged that none of the victims who submitted fees ever received a large cash prize.
“The Department will pursue and prosecute those who defraud elderly or vulnerable consumers,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We have alleged that these defendants perpetrated a cruel hoax on their victims and relentlessly targeted many with repeated fraudulent mailings.”
The indictment asserts that the defendants operated the scheme from 2010 to February 2018, when postal inspectors executed multiple search warrants and the Department of Justice obtained a court order shutting down the fraudulent mail operation. Mario Castro, Jose Salud Castro, Salvador Castro, Miguel Castro, and Jose Luis Mendez allegedly worked at the printing and mailing businesses that sent the fraudulent mail and shared the profits from the fraudulent prize notices. The remaining defendant, Andrea Burrow, opened victim return mail, sorted cash and other payments, and entered data from the victims’ responses into a database that the scheme used to target past victims with more fraudulent mail, according to the indictment.
The defendants are alleged to have ignored multiple cease and desist orders from the United States Postal Service that prohibited their mailing companies from sending fraudulent mail. The defendants responded by changing the names of their companies and using straw owners to hide their continuing fraud.
Three of the defendants’ co-conspirators – Patti Kern, Edgar Del Rio, and Sean O’Connor – pleaded guilty to conspiracy to commit mail fraud earlier this year.
“It will be a priority of this office to dismantle organizations like this one that prey on the elderly and vulnerable,” said U.S. Attorney Nicholas Trutanich for the District of Nevada. “We will continue to investigate and prosecute these large-scale frauds that operate in Nevada and across the country.”
“Many people who received these solicitations in the mail thought they were winners, but they were not. In fact, they were victims of scams exploiting the vulnerable. For many years, the U.S. Postal Inspection Service has been at the forefront of protecting consumers from fraud. The consequences of this type of financial fraud scheme are far reaching and damaging. Anyone who engages in such conduct should know they will not go undetected and will be held accountable,” said Inspector in Charge Delany De Leon-Colon of U.S. Postal Inspection Service’s Criminal Investigations Group at National Headquarters.
The mail fraud and conspiracy charges each carry a statutory maximum sentence of 20 years in prison. The false statement charge carries a statutory maximum sentence of five years in prison. Each charge also carries a statutory maximum fine of $250,000 or twice the gross gain or gross loss from the offense.
An indictment is an accusation by a federal grand jury and is not evidence of guilt. The defendants should be presumed innocent unless and until proven guilty.
The U.S. Postal Inspection Service investigated the case. The case is being prosecuted by Trial Attorneys Timothy Finley and Daniel Zytnick of the Department of Justice’s Consumer Protection Branch and Assistant U.S. Attorney Nicholas Dickinson of the District of Nevada.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past March the Department announced the largest elder fraud enforcement action in American history, charging more than 260 defendants in a nationwide elder fraud sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act. Additional information on the Department of Justice’s efforts to combat elder fraud is at: https://www.justice.gov/civil/consumer-protection-branch/elder-fraud.
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LAS VEGAS, Nev. – A federal court in Las Vegas, Nevada, permanently enjoined six individuals and 14 corporate entities from activities related to an alleged mail fraud scheme, the Department of Justice announced today.
In a complaint filed in February 2018, the United States alleged that the defendants mailed thousands of fraudulent solicitations each week. The solicitations purported to inform recipients that they had won large cash or prize packages, but needed to pay a fee to claim the winnings. The solicitations were styled as individual notices and stressed to recipients that they must return the requested fee quickly. According to the complaint, some of the solicitations contained what appeared to be handwritten notes congratulating the recipients on their good fortune, while others reassured recipients that the letters were not a scam. Individuals who sent the requested fees did not receive the expected prizes. The complaint alleged that the Las Vegas-based scheme defrauded consumers out of more than $10 million.
“Consumers should be able to open their mail without encountering false promises of wealth,” said Assistant Attorney General Joseph H. Hunt for the Department of Justice’s Civil Division. “The Department has and will continue to relentlessly pursue schemes like this one.”
“Some of these defendants constantly changed their schemes in attempts to stay one step ahead of the law,” said Delany DeLeon-Colon, Inspector in Charge for the U.S. Postal Inspection Service. “These results make clear that we will peel back the layers, find the individuals behind these schemes, and hold them to account.”
The complaint alleged that defendant Patti Kern orchestrated the activities of the other individual defendants, all of whom live in the Las Vegas area. The complaint alleged that defendants Edgar Del Rio, Sean O’Connor, and Epifanio Castro printed the solicitations; defendant Andrea Burrow opened and processed victim responses; and defendant Stephen Fennell managed the scheme’s lists of recipients. The solicitations were mailed under a plethora of company names, including 11 of the entities named as corporate defendants in the complaint.
The district court entered a default judgment against 11 defendants today and previously entered consent decrees against the nine other defendants named in the complaint. Those orders prohibit the defendants from mailing solicitations like those identified in the complaint, as well as from engaging in activities related to such mailings, including receiving, handling, or opening any victim mail responding to solicitations and using or benefiting from lists of victims who previously responded to solicitations. Additionally, the orders authorize the U.S. Postal Inspection Service to open mail that was detained by law enforcement and return payments to the scheme’s victims.
The matter was handled by Trial Attorney Jacqueline Blaesi-Freed of the Civil Division’s Consumer Protection Branch, in coordination with the United States Attorney’s Office for the District of Nevada and the United States Postal Inspection Service. Additional information on the original enforcement actions and Department of Justice’s efforts to combat elder fraud is at: https://www.justice.gov/opa/pr/justice-department-coordinates-nationwide-elder-fraud-sweep-more-250-defendants.
Description: The fiscal year of the data file obtained from the AOUSC
Format: YYYY
Description: The code of the federal judicial circuit where the case was located
Format: A2
Description: The code of the federal judicial district where the case was located
Format: A2
Description: The code of the district office where the case was located
Format: A2
Description: Docket number assigned by the district to the case
Format: A7
Description: A unique number assigned to each defendant in a case which cannot be modified by the court
Format: A3
Description: A unique number assigned to each defendant in a case which can be modified by the court
Format: A3
Description: A sequential number indicating whether a case is an original proceeding or a reopen
Format: N5
Description: Case type associated with the current defendant record
Format: A2
Description: A concatenation of district, office, docket number, case type, defendant number, and reopen sequence number
Format: A18
Description: A concatenation of district, office, docket number, case type, and reopen sequence number
Format: A15
Description: The status of the defendant as assigned by the AOUSC
Format: A2
Description: A code indicating the fugitive status of a defendant
Format: A1
Description: The date upon which a defendant became a fugitive
Format: YYYYMMDD
Description: The date upon which a fugitive defendant was taken into custody
Format: YYYYMMDD
Description: The date when a case was first docketed in the district court
Format: YYYYMMDD
Description: The date upon which proceedings in a case commenced on charges pending in the district court where the defendant appeared, or the date of the defendant’s felony-waiver of indictment
Format: YYYYMMDD
Description: A code used to identify the nature of the proceeding
Format: N2
Description: The date when a defendant first appeared before a judicial officer in the district court where a charge was pending
Format: YYYYMMDD
Description: A code indicating the event by which a defendant appeared before a judicial officer in the district court where a charge was pending
Format: A2
Description: A code indicating the type of legal counsel assigned to a defendant
Format: N2
Description: The title and section of the U.S. Code applicable to the offense committed which carried the highest severity
Format: A20
Description: A code indicating the level of offense associated with FTITLE1
Format: N2
Description: The four digit AO offense code associated with FTITLE1
Format: A4
Description: The four digit D2 offense code associated with FTITLE1
Format: A4
Description: A code indicating the severity associated with FTITLE1
Format: A3
Description: The title and section of the U.S. Code applicable to the offense committed which carried the second highest severity
Format: A20
Description: A code indicating the level of offense associated with FTITLE2
Format: N2
Description: The four digit AO offense code associated with FTITLE2
Format: A4
Description: The four digit D2 offense code associated with FTITLE2
Format: A4
Description: A code indicating the severity associated with FTITLE2
Format: A3
Description: The FIPS code used to indicate the county or parish where an offense was committed
Format: A5
Description: The date of the last action taken on the record
Format: YYYYMMDD
Description: The date upon which judicial proceedings before the court concluded
Format: YYYYMMDD
Description: The date upon which the final sentence is recorded on the docket
Format: YYYYMMDD
Description: The date upon which the case was closed
Format: YYYYMMDD
Description: The total fine imposed at sentencing for all offenses of which the defendant was convicted and a fine was imposed
Format: N8
Description: A count of defendants filed including inter-district transfers
Format: N1
Description: A count of defendants filed excluding inter-district transfers
Format: N1
Description: A count of original proceedings commenced
Format: N1
Description: A count of defendants filed whose proceedings commenced by reopen, remand, appeal, or retrial
Format: N1
Description: A count of defendants terminated including interdistrict transfers
Format: N1
Description: A count of defendants terminated excluding interdistrict transfers
Format: N1
Description: A count of original proceedings terminated
Format: N1
Description: A count of defendants terminated whose proceedings commenced by reopen, remand, appeal, or retrial
Format: N1
Description: A count of defendants pending as of the last day of the period including long term fugitives
Format: N1
Description: A count of defendants pending as of the last day of the period excluding long term fugitives
Format: N1
Description: The source from which the data were loaded into the AOUSC’s NewSTATS database
Format: A10
Description: A sequential number indicating the iteration of the defendant record
Format: N2
Description: The date the record was loaded into the AOUSC’s NewSTATS database
Format: YYYYMMDD
Description: Statistical year ID label on data file obtained from the AOUSC which represents termination year
LAS VEGAS, Nev. – An Arizona man has been sentenced today to 30 months in federal prison for possessing multiple unemployment benefits debit cards — all in different names — and intending to fraudulently obtain nearly $239,000 in benefits, announced Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent-in-Charge Quentin Heiden of the U.S. Department of Labor Office of Inspector General (DOL-OIG), Los Angeles Region.
Delashaun Dean, 32, of Tolleson, Arizona, pleaded guilty in February 2021 to one count of possession of counterfeit and unauthorized access devices. In addition to the term of imprisonment, U.S. District Judge Andrew Gordon sentenced Dean to three years of supervised release.
According to court documents, between October 3 and October 5, 2020, the Las Vegas Metropolitan Police Department found 15 unemployment insurance benefits debit cards issued by the California Employment Development Department (EDD) in Dean’s hotel room and on his person. The debit cards were all in different names; none were in Dean’s name. In addition, law enforcement found a fake driver’s license and a notebook containing personal identifying information of multiple individuals, which was used to apply for unemployment insurance benefits. At least $238,914 in unemployment benefits were approved for claims associated with the recovered EDD debit cards.
This case was investigated by DOL-OIG. Assistant U.S. Attorney Jim Fang prosecuted the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
To learn more about the Justice Department’s COVID response, visit: https://www.justice.gov/coronavirus.
LAS VEGAS, Nev. – U.S. Attorney Nicholas A. Trutanich of the District of Nevada announced today that the state of Nevada received a total of $998,714 from the Department of Justice’s Office of Justice Programs and its component, the Office for Victims of Crime, to provide safe, stable housing and appropriate services to victims of human trafficking.
“Human trafficking is a barbaric criminal enterprise that subjects its victims to unspeakable cruelty and deprives them of the most basic of human needs, none more essential than a safe place to live,” said Attorney General William P. Barr. “Throughout this Administration, the Department of Justice has fought aggressively to bring human traffickers to justice and to deliver critical aid to trafficking survivors. These new resources, announced today, expand on our efforts to offer those who have suffered the shelter and support they need to begin a new and better life.”
“The District of Nevada greatly appreciates the support from the Department of Justice’s Office of Justice Programs to help survivors in Nevada,” said U.S. Attorney Trutanich. “These grant awards will assist trafficking victims in our communities with, among other things, finding housing and employment.”
The grants, awarded to the Rite of Passage Adolescent Treatment Centers and Schools, Inc. and Hookers for Jesus, Inc., will provide six to 24 months of transitional or short-term housing assistance for trafficking victims, including rental, utilities or related expenses, such as security deposits and relocation costs. The grants will also provide funding for support needed to help victims locate permanent housing, secure employment, as well as occupational training and counseling. These recipients are among 73 organizations receiving more than $35 million in OVC grants to support housing services for human trafficking survivors.
“Human traffickers dangle the threat of homelessness over those they have entrapped, playing a ruthless game of psychological manipulation that victims are never in a position to win,” said OJP Principal Deputy Assistant Attorney General Kathrine T. Sullivan. “These grants will empower survivors on their path to independence and a life of self-sufficiency and hope.”
Human trafficking offenses are among the most difficult crimes to identify, and the scope of human trafficking victimization may be much greater than the limited data reflect. A new report issued by the National Institute of Justice, another component of the Office of Justice Programs, found that the number of human trafficking cases captured in police reports may represent only a fraction of all such cases. Expanding housing and other services to trafficking victims remains a top Justice Department priority.
The Office for Victims of Crime, for example, hosted listening sessions and roundtable discussions with stakeholders in the field in 2018 and launched the Human Trafficking Capacity Building Center. From July 2018 through June 2019, 118 OVC human trafficking grantees reported serving 8,375 total clients including confirmed trafficking victims and individuals showing strong indicators of trafficking victimization.
For a complete list of individual award amounts and jurisdictions that will receive funding, visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/htvictimsfactheet.pdf
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The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
LAS VEGAS, Nev. – Four individuals were charged with engaging in a massive fraud scheme in which their company processed payments from victims of numerous international mass-mail fraud campaigns, the Department of Justice announced.
Rosanne Day, 51; Robert Paul Davis, 63; Genevieve Renee Frappier, 49; and Miles Kelly, 55; each were charged in the District of Nevada with one count of conspiracy to commit mail and wire fraud, one count of conspiracy to commit money laundering, and multiple counts of mail fraud and wire fraud. Day and Davis were part-owners and the top managers of PacNet Services Ltd. (PacNet), a payment processing company based in Vancouver, British Columbia, Canada. Frappier was in charge of PacNet’s Marketing and Client Services departments, and Kelly oversaw PacNet’s Compliance Department.
The indictment alleges that PacNet, under the defendants’ direction, was the payment processor of choice for companies that mailed large volumes of fraudulent notifications designed to mislead victims into falsely believing they would receive a large amount of money, a valuable prize, or specialized psychic services upon payment of a fee. Many alleged victims were elderly or otherwise vulnerable. PacNet served as the middleman between banks and the fraudulent mailers – aggregating the checks, cash, and credit card payments collected by its clients, depositing the payments into PacNet-controlled bank accounts, and then distributing the funds as directed by the clients, according to the indictment.
“The defendants are charged with enriching themselves by helping fraudsters who took money from elderly and otherwise vulnerable victims,” said Assistant Attorney General Jody Hunt for the Department of Justice's Civil Division. “The United States Department of Justice will seek to hold accountable those who knowingly advance elder fraud schemes – including individuals outside our borders who enable fraudsters to move their ill-gotten gains into the banking system and benefit from their crimes.”
“As alleged in the indictment, numerous victims in Nevada were defrauded of money in connection with the defendants’ scheme, and at least one of PacNet’s fraudulent mass mail clients was located in Nevada,” said U.S. Attorney Nicholas A. Trutanich for the District of Nevada. “Working with our Postal Inspectors and other law enforcement partners, we will identify, investigate, and prosecute criminals – both foreign and domestic – who prey on our seniors and other vulnerable Nevada residents. These fraud schemes can happen to anyone. If you’re a victim, I urge you to immediately file a complaint with the FTC at 877-FTC-HELP.”
“The U.S. Postal Inspection Service has been at the forefront of protecting consumers from fraud schemes for many years,” said Inspector in Charge Delany DeLeon-Colon of the U.S. Postal Inspection Service’s Criminal Investigations Group. “We do this through traditional investigative methods to identify and stop the scammers, and consumer education, which is the best defense against criminals looking for easy money. Investigations like this one let the American public – especially our vulnerable population – know that Postal Inspectors are working hard to protect them and ensure their confidence in the U.S. Mail.”
From 1994 until Sept. 22, 2016, PacNet processed payments for a variety of clients, including mass-mail clients who sent fraudulent notifications to consumers in the United States and around the world, according to the indictment. Several individuals involved in operating mass-mail companies that processed payments through PacNet have been convicted of federal fraud charges during the last two years.
The indictment alleges that the defendants knew that multiple PacNet mass-mail clients obtained payments from victims through fraudulent notifications and nonetheless approved depositing those payments into U.S. bank accounts, allowing the clients to benefit from the fraud. Day, who was in charge of PacNet’s Vancouver headquarters, and Davis, who oversaw PacNet’s office in Shannon, Ireland, each earned approximately $15 million in Canadian dollars from 2013 through 2015, the last three full years that PacNet was in operation, according to the indictment.
PacNet’s policies required mass-mail clients to submit sample notifications to PacNet for review. The indictment alleges that the defendants approved processing for fraudulent notifications that had been submitted, in some situations approved processing for fraudulent notifications that had not been submitted, and at other times condoned the continued processing for mass-mail clients who were sending different, even more fraudulent notifications than what PacNet had approved.
Davis, who identified himself as PacNet’s general counsel, opened post office boxes in the United Kingdom to which certain PacNet mass-mail clients directed victim payments be sent, according to the indictment. The indictment alleges that Davis, who was a pilot, at times flew to the United Kingdom to pick up the mail and transport it to Ireland, where the mail was opened and the checks, cash, and other payments were processed. The indictment further alleges that on several occasions Davis flew to the Netherlands to pick up cash from facilities that were receiving mail for certain PacNet mass-mail clients. Davis then flew the cash to Ireland, according to the indictment.
Each charge carries a maximum penalty of 20 years in prison. The indictment contains only accusations against the defendants and is not evidence of guilt. The defendants should be presumed innocent unless and until proven guilty.
The criminal charges are the result of an investigation conducted by the United States Postal Inspection Service, which through official requests received assistance from the Vancouver Police Department, Canada’s Competition Bureau, Ireland’s Criminal Assets Bureau, the United Kingdom’s National Crime Agency, and the Netherlands’ Fiscal Information and Investigation Service.
Senior Litigation Counsel Patrick Jasperse of the Department’s Consumer Protection Branch is prosecuting the case with assistance from Assistant United States Attorney Nicholas Dickinson of the U.S. Attorney’s Office for the District of Nevada. The Criminal Division’s Office of International Affairs has provided critical support.
Description: The fiscal year of the data file obtained from the AOUSC
Format: YYYY
Description: The code of the federal judicial circuit where the case was located
Format: A2
Description: The code of the federal judicial district where the case was located
Format: A2
Description: The code of the district office where the case was located
Format: A2
Description: Docket number assigned by the district to the case
Format: A7
Description: A unique number assigned to each defendant in a case which cannot be modified by the court
Format: A3
Description: A unique number assigned to each defendant in a case which can be modified by the court
Format: A3
Description: A sequential number indicating whether a case is an original proceeding or a reopen
Format: N5
Description: Case type associated with the current defendant record
Format: A2
Description: A concatenation of district, office, docket number, case type, defendant number, and reopen sequence number
Format: A18
Description: A concatenation of district, office, docket number, case type, and reopen sequence number
Format: A15
Description: The status of the defendant as assigned by the AOUSC
Format: A2
Description: A code indicating the fugitive status of a defendant
Format: A1
Description: The date upon which a defendant became a fugitive
Format: YYYYMMDD
Description: The date upon which a fugitive defendant was taken into custody
Format: YYYYMMDD
Description: The date when a case was first docketed in the district court
Format: YYYYMMDD
Description: The date upon which proceedings in a case commenced on charges pending in the district court where the defendant appeared, or the date of the defendant’s felony-waiver of indictment
Format: YYYYMMDD
Description: A code used to identify the nature of the proceeding
Format: N2
Description: The date when a defendant first appeared before a judicial officer in the district court where a charge was pending
Format: YYYYMMDD
Description: A code indicating the type of legal counsel assigned to a defendant
Format: N2
Description: The title and section of the U.S. Code applicable to the offense committed which carried the highest severity
Format: A20
Description: A code indicating the level of offense associated with FTITLE1
Format: N2
Description: The four digit AO offense code associated with FTITLE1
Format: A4
Description: The four digit D2 offense code associated with FTITLE1
Format: A4
Description: A code indicating the severity associated with FTITLE1
Format: A3
Description: The title and section of the U.S. Code applicable to the offense committed which carried the second highest severity
Format: A20
Description: A code indicating the level of offense associated with FTITLE2
Format: N2
Description: The four digit AO offense code associated with FTITLE2
Format: A4
Description: The four digit D2 offense code associated with FTITLE2
Format: A4
Description: A code indicating the severity associated with FTITLE2
Format: A3
Description: The title and section of the U.S. Code applicable to the offense committed which carried the third highest severity
Format: A20
Description: A code indicating the level of offense associated with FTITLE3
Format: N2
Description: The four digit AO offense code associated with FTITLE3
Format: A4
Description: The four digit D2 offense code associated with FTITLE3
Format: A4
Description: A code indicating the severity associated with FTITLE3
Format: A3
Description: The title and section of the U.S. Code applicable to the offense committed which carried the fourth highest severity
Format: A20
Description: A code indicating the level of offense associated with FTITLE4
Format: N2
Description: The four digit AO offense code associated with FTITLE4
Format: A4
Description: The four digit D2 offense code associated with FTITLE4
Format: A4
Description: A code indicating the severity associated with FTITLE4
Format: A3
Description: The FIPS code used to indicate the county or parish where an offense was committed
Format: A5
Description: The date of the last action taken on the record
Format: YYYYMMDD
Description: The date upon which judicial proceedings before the court concluded
Format: YYYYMMDD
Description: The date upon which the final sentence is recorded on the docket
Format: YYYYMMDD
Description: The date upon which the case was closed
Format: YYYYMMDD
Description: The total fine imposed at sentencing for all offenses of which the defendant was convicted and a fine was imposed
Format: N8
Description: A count of defendants filed including inter-district transfers
Format: N1
Description: A count of defendants filed excluding inter-district transfers
Format: N1
Description: A count of original proceedings commenced
Format: N1
Description: A count of defendants filed whose proceedings commenced by reopen, remand, appeal, or retrial
Format: N1
Description: A count of defendants terminated including interdistrict transfers
Format: N1
Description: A count of defendants terminated excluding interdistrict transfers
Format: N1
Description: A count of original proceedings terminated
Format: N1
Description: A count of defendants terminated whose proceedings commenced by reopen, remand, appeal, or retrial
Format: N1
Description: A count of defendants pending as of the last day of the period including long term fugitives
Format: N1
Description: A count of defendants pending as of the last day of the period excluding long term fugitives
Format: N1
Description: The source from which the data were loaded into the AOUSC’s NewSTATS database
Format: A10
Description: A sequential number indicating the iteration of the defendant record
Format: N2
Description: The date the record was loaded into the AOUSC’s NewSTATS database
Format: YYYYMMDD
Description: Statistical year ID label on data file obtained from the AOUSC which represents termination year
LAS VEGAS, Nev. – A Las Vegas man pleaded guilty today to defrauding $1,855,475 from victims of a business fraud scheme, announced U.S. Attorney Dayle Elieson for the District of Nevada.
Jihad Anthony Zogheib, 52, pleaded guilty without the benefit of a plea agreement to eight counts of wire fraud in connection to a fraud scheme. United States District Judge Andrew P. Gordon accepted the guilty pleas and scheduled a sentencing hearing on January 15, 2019, before U.S. District Judge Larry R. Hicks.
Zogheib admitted that, from about 2010, to about 2013, he devised a scheme to fraudulently obtain money from people by making false representations to them that he would use their money for business purposes. As part of the scheme, he influenced victims’ decisions by using forged business documents and fictitious emails from banks.
Specifically, in February 2011, he made false representations to a victim about forming a mobile crane company and a mobile crane leasing company. He claimed he had millions of dollars in an overseas account, but it was placed on a hold. He provided the victim with a fictitious bank record showing millions of dollars on deposit. Zogheib caused the victim to give him $548,000 to fund the companies. From November 2010 to about August 2013, Zogheib defrauded two victims by falsely claiming he was in the business of flipping real estate. He made false representations to the victims in order to receive hundreds of thousands of dollars for the nonexistent real estate investments. These two victims sent Zogheib a combined total $1,307,475. Zogheib immediately used the victims’ investment monies to fund his gambling habit and high-end lifestyle.
At the time of sentencing, the maximum penalty is 20 years in prison and a $250,000 fine. In addition, Zogheib faces a criminal forfeiture money judgment of $815,475.
The case was investigated by the FBI. Assistant U.S. Attorneys Patrick Burns and Steven Myhre are prosecuting the case.
LAS VEGAS, Nev. – Today, the Office for Victims of Crime (OVC), a component of the Department’s Office of Justice Programs (OJP), released awards totaling more than $2.3 billion to state victim assistance and compensation programs, funding thousands of local victim assistance programs across the country, and providing millions in compensation to victims of crime. Ten awardees in Nevada will receive more than $43.7 million of these grant awards.
“Building on the historic amount of victim assistance and victim compensation funding awarded last year, these new awards have the potential to alter the landscape of the victims’ field, putting services and support within reach of every crime victim in America,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General of the Office of Justice Programs. “Backed by Attorney General William Barr, whose commitment to crime victims is second to none, we are proud to make these resources available to help meet the emotional, psychological and financial needs that victims face in the aftermath of crime.”
“This funding will help Nevada service providers and law enforcement provide the necessary assistance and compensation to survivors in need of critical service assistance during their road to recovery,” said U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
OVC’s flagship formula grant program is supported by the Crime Victims Fund (the Fund), which was established under the Victims of Crime Act (VOCA). The Fund supports a broad array of programs and services that help victims in the immediate aftermath of crime and continue to support them as they rebuild their lives. In FY18 alone, VOCA grants served over 6.3 million victims (a 24 percent increase over FY17) and paid more than $400 million in compensation claims. The Fund is financed by fines and penalties paid by convicted federal offenders and does not include tax dollars.
The vast majority of the over $2.3 billion in victim assistance funding goes to approximately 6,000 local direct service programs. These include children’s advocacy centers, domestic violence shelters, rape crisis centers, human trafficking and elder abuse programs, civil legal services, crime victims’ rights enforcement, as well as victim assistance positions in prosecutors’ offices and law enforcement departments.
State victim compensation programs will receive over $136 million to supplement the state funds that offset victims’ financial burdens resulting from crime. This compensation is vital to victims who face enormous financial setbacks stemming from medical fees, lost income, dependent care, funeral expenses, and other costs.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal justice and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov. For a full database of OVC awardees, visit: https://www.ovc.gov/grants/grant_award_search.html.
# # #
Award Title
Awardee
Amount
Solicitation Title
Reno Police Department FY 2019 Law Enforcement-Based Victim Specialist Program
Reno Police Department
$280,777
OVC FY 2019 Law Enforcement-Based Victim Specialist Program
Shoshone-Paiute Tribes Tribal Victim Services Program
Shoshone-Paiute Tribes of the Duck Valley Indian Reservation
$604,741
OVC FY 2019 Tribal Victim Services Set-Aside Program: OVC FY 2019 Tribal Victim Services Set-Aside Program: Purpose Area 1: Establishment of a New Victim Service Program
OVC FY 19 VOCA Assistance Formula
Nevada Department of Health and Human Services
$20,918,536
OVC FY 2019 VOCA Victim Assistance
Antiterrorism and Emergency Assistance Program for Crime Victim Compensation and/or Assistance
Nevada Department of Health and Human Services
$16,735,720
OVC FY 2019 Antiterrorism and Emergency Assistance Program (AEAP) for Crime Victim Compensation and Assistance
OVC FY 19 VOCA Compensation Formula
Nevada Dept of Administration
$2,252,000
OVC FY 2019 VOCA Victim Compensation
Reno-Sparks Indian Colony Victims Services Program
Reno Sparks Indian Colony
$459,786
OVC FY 2019 Tribal Victim Services Set-Aside Program: OVC FY 2019 Tribal Victim Services Set-Aside Program: Purpose Area 2: Coordination and Expansion of Existing Victim Service Program
Resources and Integration for Survivor Empowerment (R.I.S.E.)
The Rape Crisis Center DBA Community Action Against Rape
$889,015
OVC FY 2019 Direct Services to Support Victims of Human Trafficking: OVC FY 2019 Direct Services to Support Victims of Human Trafficking: PA1 Comprehensive Services for Victims of Human Trafficking
Southern Nevada Human Trafficking Services Project
Hookers For Jesus, Inc.
$530,190
OVC FY 2019 Direct Services to Support Victims of Human Trafficking: OVC FY 2019 Direct Services to Support Victims of Human Trafficking: PA1 Comprehensive Services for Victims of Human Trafficking
OVC FY 2019 Direct Services to Support Victims of Human Trafficking: OVC FY 2019 Direct Services to Support Victims of Human Trafficking: PA2 Specialized Services for Victims of Human Trafficking
Victim Assistance Academy of Nevada Enhancement and Expansion
State of Nevada Division of Child and Family Services
$394,920
OVC FY 2019 Discretionary Training and Technical Assistance Program for VOCA Victim Assistance Grantees
LAS VEGAS, Nev. – A Las Vegas man who admitted to defrauding more than $1.8 million from victims of a business fraud scheme was sentenced today to eight years in federal prison and ordered to pay $1,715,475 in restitution, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
Jihad Anthony Zogheib, 53, pleaded guilty without a plea agreement in October 2018, to eight counts of wire fraud in connection to a fraud scheme. Zogheib was sentenced by U.S. District Judge Larry R. Hicks.
Zogheib admitted in court that, from about 2010 to about 2013, he devised a scheme to fraudulently obtain money from people falsely representing that he would use their money for business purposes. As part of the scheme, he influenced victims’ decisions by using forged business documents and fictitious emails from banks. Specifically, in February 2011, Zogheib falsely told one of his victims about forming a mobile crane company and a mobile crane leasing company. He claimed he had millions of dollars in an overseas account, but it was placed on a hold. After showing the victim a fictitious bank record showing millions of dollars on deposit, Zogheib’s dupe caused the victim into giving him $548,000 to fund the sham companies. From November 2010 to about August 2013, Zogheib defrauded two other victims by falsely claiming he was in the business of flipping real estate. He made false representations to the victims in order to receive hundreds of thousands of dollars for the nonexistent real estate investments. These two victims sent Zogheib a total of $1,307,475. Zogheib immediately used the ill-gotten proceeds to fund his gambling habit and high-end lifestyle.
The case was investigated by the FBI. Assistant U.S. Attorneys Patrick Burns and Steven Myhre prosecuted the case.
LAS VEGAS – A California resident pleaded guilty today to using multiple California Employment Development Department (EDD) unemployment insurance benefits debit cards in other peoples’ names without their authorization.
Breon Dante Mims (32), of Stockton, Calif., pleaded guilty to illegal transaction with access devices. A sentencing hearing is scheduled for July 25, 2023, before United States District Judge Gloria M. Navarro. Mims faces a statutory maximum penalty of 15 years in prison.
According to court documents and admissions made in court by Mims, on September 20, 2020, Las Vegas Metropolitan Police Department officers stopped Mims walking along Las Vegas Boulevard after he was observed smoking a marijuana blunt in public. During the stop, officers obtained Mims’ consent to search his backpack, and they found $10,080 in cash and 10 EDD debit cards none of which were in Mims’ name. He admitted that he possessed and used these EDD debit cards without authorization; and that he submitted the unemployment claims associated with the EDD debit cards without authorization. At least $261,600 in benefits were approved for the unemployment claims associated with the cards, and Mims withdrew at least $77,000 from various ATMs in Nevada and California using these fraudulently obtained EDD debit cards.
United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Quentin Heiden of the U.S. Department of Labor Office of Inspector General (DOL-OIG), Western Region made the announcement.
The DOL-OIG investigated the case. Assistant United States Attorney Jim Fang is prosecuting the case.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF web complaint form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
LAS VEGAS, Nev. – A federal grand jury sitting in Las Vegas indicted Arizona resident Douglas Haig today with one count of engaging in the business of manufacturing ammunition without a license, announced United States Attorney Dayle Elieson for the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Division.
The investigation of Haig, 55, of Mesa, Arizona, arose out of the investigation of the October 1, 2017 mass shooting at the Route 91 Harvest music festival in Las Vegas. Haig is scheduled for an initial court appearance on the Indictment before U.S. Magistrate Judge George Foley Jr. on September 5, 2018, in Las Vegas, Nevada. He was previously charged in a criminal complaint.
According to allegations in the indictment, from July 2016 to October 19, 2017, Haig, who did not have a federal firearms license to manufacture ammunition, was illegally conducting business as a manufacturer of various ammunition types. Haig previously operated “Specialized Military Ammunition,” an Internet business selling high explosive armor piercing incendiary ammunition, armor piercing incendiary ammunition, and armor piercing ammunition. Business records reveal that Haig sold armor piercing ammunition throughout the United States, including Nevada, Texas, Virginia, Wyoming, and South Carolina.
During an interview with investigators, Haig told investigators that he reloads ammunition, but does not offer reloaded cartridges for sale to his customers and none of the ammunition recovered in Las Vegas crime scenes would have tool marks on them consistent with his reloading equipment. Reloaded ammunition refers to ammunition that is manufactured from component parts, including previously fired cartridge cases. Based on a forensic examination of rounds recovered inside the suspect’s rooms at the Mandalay Bay Resort and Casino following the mass shooting, Haig’s fingerprints were found on reloaded, unfired .308 caliber cartridges. Forensic examination also revealed that armor piercing ammunition recovered inside of the shooter’s rooms had tool marks consistent with Haig’s reloading equipment.
The public is reminded that an indictment contains only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving the defendant’s guilt beyond a reasonable doubt.
The investigation is being conducted by the FBI with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Las Vegas Metropolitan Police Department. The case is being prosecuted by Assistant U.S. Attorneys Patrick Burns, Nicholas D. Dickinson, and Cristina D. Silva.
Description: The fiscal year of the data file obtained from the AOUSC
Format: YYYY
Description: The code of the federal judicial circuit where the case was located
Format: A2
Description: The code of the federal judicial district where the case was located
Format: A2
Description: The code of the district office where the case was located
Format: A2
Description: Docket number assigned by the district to the case
Format: A7
Description: A unique number assigned to each defendant in a case which cannot be modified by the court
Format: A3
Description: A unique number assigned to each defendant in a case which can be modified by the court
Format: A3
Description: A sequential number indicating whether a case is an original proceeding or a reopen
Format: N5
Description: Case type associated with the current defendant record
Format: A2
Description: Case type associated with a magistrate case if the current case was merged from a magistrate case
Format: A2
Description: A concatenation of district, office, docket number, case type, defendant number, and reopen sequence number
Format: A18
Description: A concatenation of district, office, docket number, case type, and reopen sequence number
Format: A15
Description: The docket number originally given to a case assigned to a magistrate judge and subsequently merged into a criminal case
Format: A7
Description: A unique number assigned to each defendant in a magistrate case
Format: A3
Description: The status of the defendant as assigned by the AOUSC
Format: A2
Description: A code indicating the fugitive status of a defendant
Format: A1
Description: The date upon which a defendant became a fugitive
Format: YYYYMMDD
Description: The date upon which a fugitive defendant was taken into custody
Format: YYYYMMDD
Description: The date when a case was first docketed in the district court
Format: YYYYMMDD
Description: The date upon which proceedings in a case commenced on charges pending in the district court where the defendant appeared, or the date of the defendant’s felony-waiver of indictment
Format: YYYYMMDD
Description: A code used to identify the nature of the proceeding
Format: N2
Description: The date when a defendant first appeared before a judicial officer in the district court where a charge was pending
Format: YYYYMMDD
Description: A code indicating the event by which a defendant appeared before a judicial officer in the district court where a charge was pending
Format: A2
Description: A code indicating the type of legal counsel assigned to a defendant
Format: N2
Description: The title and section of the U.S. Code applicable to the offense committed which carried the highest severity
Format: A20
Description: A code indicating the level of offense associated with FTITLE1
Format: N2
Description: The four digit AO offense code associated with FTITLE1
Format: A4
Description: The four digit D2 offense code associated with FTITLE1
Format: A4
Description: A code indicating the severity associated with FTITLE1
Format: A3
Description: The FIPS code used to indicate the county or parish where an offense was committed
Format: A5
Description: The date of the last action taken on the record
Format: YYYYMMDD
Description: The date upon which judicial proceedings before the court concluded
Format: YYYYMMDD
Description: The date upon which the final sentence is recorded on the docket
Format: YYYYMMDD
Description: The date upon which the case was closed
Format: YYYYMMDD
Description: The total fine imposed at sentencing for all offenses of which the defendant was convicted and a fine was imposed
Format: N8
Description: A count of defendants filed including inter-district transfers
Format: N1
Description: A count of defendants filed excluding inter-district transfers
Format: N1
Description: A count of original proceedings commenced
Format: N1
Description: A count of defendants filed whose proceedings commenced by reopen, remand, appeal, or retrial
Format: N1
Description: A count of defendants terminated including interdistrict transfers
Format: N1
Description: A count of defendants terminated excluding interdistrict transfers
Format: N1
Description: A count of original proceedings terminated
Format: N1
Description: A count of defendants terminated whose proceedings commenced by reopen, remand, appeal, or retrial
Format: N1
Description: A count of defendants pending as of the last day of the period including long term fugitives
Format: N1
Description: A count of defendants pending as of the last day of the period excluding long term fugitives
Format: N1
Description: The source from which the data were loaded into the AOUSC’s NewSTATS database
Format: A10
Description: A sequential number indicating the iteration of the defendant record
Format: N2
Description: The date the record was loaded into the AOUSC’s NewSTATS database
Format: YYYYMMDD
Description: Statistical year ID label on data file obtained from the AOUSC which represents termination year
LAS VEGAS, Nev. – An Arizona man was charged in U.S. District Court in Phoenix today for the manufacture and sale of armor piercing ammunition without a license. He allegedly sold ammunition to Stephen Paddock, who was later identified as the perpetrator of the October 1, 2017 mass shooting in Las Vegas, announced United States Attorney Dayle Elieson of the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Division.
Douglas Haig, 55, of Mesa, Ariz., is charged in a criminal complaint with one-count of conspiracy to manufacture and sell armor piercing ammunition. He appeared this afternoon before U.S. District Court Magistrate Judge Michelle H. Burns and was released on a bond with conditions pending a status conference regarding scheduling of a preliminary hearing on Feb. 15 in Phoenix. If convicted, he faces the statutory maximum penalty of five years in prison, a $250,000 fine, or both.
According to the criminal complaint, Haig met with Paddock on more than one occasion. Paddock met Haig at his home in September of 2017 to purchase ammunition. Haig previously operated “Specialized Military Ammunition,” an Internet business selling high explosive armor piercing incendiary ammunition, armor piercing incendiary ammunition, and armor piercing ammunition. Business records reveal that Haig sold armor piercing ammunition throughout the U.S., including Nevada, Texas, Virginia, Wyoming, and South Carolina. Haig did not have a license to manufacture armor piercing ammunition.
During an interview, Haig told investigators that he reloads ammunition, but does not offer reloaded cartridges for sale to his customers and none of the ammunition recovered in Las Vegas crime scenes would have tool marks on them consistent with his reloading equipment. Reloaded ammunition refers to ammunition that is manufactured from component parts, including previously fired cartridge cases. Based on a forensic examination of rounds recovered in the shooter’s hotel rooms, Haig’s fingerprints were found on reloaded, unfired .308 caliber cartridges. Forensic examination also revealed that armor piercing ammunition recovered inside of the shooter’s rooms had tool marks consistent with Haig’s reloading equipment.
The public is reminded that a criminal complaint contains only a charge and is not evidence of guilt. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The investigation is being conducted by the FBI’s Las Vegas Division with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Las Vegas Metropolitan Police Department. The case is being prosecuted by Assistant U.S. Attorneys Cristina D. Silva, Patrick Burns, and Nicholas D. Dickinson.
Description: The fiscal year of the data file obtained from the AOUSC
Format: YYYY
Description: The code of the federal judicial circuit where the case was located
Format: A2
Description: The code of the federal judicial district where the case was located
Format: A2
Description: The code of the district office where the case was located
Format: A2
Description: Docket number assigned by the district to the case
Format: A7
Description: A unique number assigned to each defendant in a case which cannot be modified by the court
Format: A3
Description: A unique number assigned to each defendant in a case which can be modified by the court
Format: A3
Description: A sequential number indicating whether a case is an original proceeding or a reopen
Format: N5
Description: Case type associated with the current defendant record
Format: A2
Description: Case type associated with a magistrate case if the current case was merged from a magistrate case
Format: A2
Description: A concatenation of district, office, docket number, case type, defendant number, and reopen sequence number
Format: A18
Description: A concatenation of district, office, docket number, case type, and reopen sequence number
Format: A15
Description: The docket number originally given to a case assigned to a magistrate judge and subsequently merged into a criminal case
Format: A7
Description: A unique number assigned to each defendant in a magistrate case
Format: A3
Description: The status of the defendant as assigned by the AOUSC
Format: A2
Description: A code indicating the fugitive status of a defendant
Format: A1
Description: The date upon which a defendant became a fugitive
Format: YYYYMMDD
Description: The date upon which a fugitive defendant was taken into custody
Format: YYYYMMDD
Description: The date when a case was first docketed in the district court
Format: YYYYMMDD
Description: The date upon which proceedings in a case commenced on charges pending in the district court where the defendant appeared, or the date of the defendant’s felony-waiver of indictment
Format: YYYYMMDD
Description: A code used to identify the nature of the proceeding
Format: N2
Description: The date when a defendant first appeared before a judicial officer in the district court where a charge was pending
Format: YYYYMMDD
Description: A code indicating the event by which a defendant appeared before a judicial officer in the district court where a charge was pending
Format: A2
Description: A code indicating the type of legal counsel assigned to a defendant
Format: N2
Description: The title and section of the U.S. Code applicable to the offense committed which carried the highest severity
Format: A20
Description: A code indicating the level of offense associated with FTITLE1
Format: N2
Description: The four digit AO offense code associated with FTITLE1
Format: A4
Description: The four digit D2 offense code associated with FTITLE1
Format: A4
Description: A code indicating the severity associated with FTITLE1
Format: A3
Description: The FIPS code used to indicate the county or parish where an offense was committed
Format: A5
Description: The date of the last action taken on the record
Format: YYYYMMDD
Description: The date upon which judicial proceedings before the court concluded
Format: YYYYMMDD
Description: The date upon which the final sentence is recorded on the docket
Format: YYYYMMDD
Description: The date upon which the case was closed
Format: YYYYMMDD
Description: The total fine imposed at sentencing for all offenses of which the defendant was convicted and a fine was imposed
Format: N8
Description: A count of defendants filed including inter-district transfers
Format: N1
Description: A count of defendants filed excluding inter-district transfers
Format: N1
Description: A count of original proceedings commenced
Format: N1
Description: A count of defendants filed whose proceedings commenced by reopen, remand, appeal, or retrial
Format: N1
Description: A count of defendants terminated including interdistrict transfers
Format: N1
Description: A count of defendants terminated excluding interdistrict transfers
Format: N1
Description: A count of original proceedings terminated
Format: N1
Description: A count of defendants terminated whose proceedings commenced by reopen, remand, appeal, or retrial
Format: N1
Description: A count of defendants pending as of the last day of the period including long term fugitives
Format: N1
Description: A count of defendants pending as of the last day of the period excluding long term fugitives
Format: N1
Description: The source from which the data were loaded into the AOUSC’s NewSTATS database
Format: A10
Description: A sequential number indicating the iteration of the defendant record
Format: N2
Description: The date the record was loaded into the AOUSC’s NewSTATS database
Format: YYYYMMDD
Description: Statistical year ID label on data file obtained from the AOUSC which represents termination year
LAS VEGAS, Nev. – A man who allegedly stole approximately $18,120 from a credit union, then took three people hostage during a carjacking made his initial appearance in federal court today, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
William C. Etheridge, 54, was indicted on Aug. 9, 2017, with one count of bank robbery and one count of carjacking.
According to allegations in the criminal complaint and indictment, on July 25, 2017, Etheridge entered a WestStar Credit Union, located at 110 East Harmon Avenue, in Las Vegas, brandished a semi-automatic pistol, and demanded money from four bank tellers. He then demanded a ride in one of the victim tellers’ personal vehicles to avoid law enforcement apprehension. When none of the tellers volunteered to provide him with a ride, he instructed one of the bank tellers to leave the bank with him. Etheridge stole approximately $18,120. Upon exiting the bank, Etheridge used force and violence to carjack a vehicle with two victims inside. At Etheridge’s request, the victims dropped him off at a Harley Davidson dealership to purchase a getaway vehicle with the stolen money so he could leave the area. Law enforcement arrested Etheridge at the dealership.
If convicted, Etheridge faces the mandatory minimum penalty of 10 years in prison and a $250,000 fine for the bank robbery charge and 15 years in prison and a $250,000 fine for the carjacking charge.
The case is being investigated by the FBI and the Las Vegas Metropolitan Police Department. The case is being prosecuted by Assistant U.S. Attorneys Kilby Macfadden and Nicholas Dickinson.
An indictment is merely an allegation and a defendant is presumed innocent unless and until proven guilty in a court of law.
LAS VEGAS, Nev. – In a criminal complaint unsealed Thursday, a Stockton, California, man has been charged for allegedly using multiple California Employment Development Department (EDD) unemployment insurance benefits debit cards in other peoples’ names without their authorization.
According to allegations in court documents, on September 20, 2020, Breon Dante Mims, 30, was stopped by Las Vegas Metropolitan Police Department officers after he was observed smoking a marijuana blunt in public. During the stop, officers obtained Mims’ consent to search his backpack, which revealed: (a) ten EDD debit cards, none of which were in Mims’ name; (b) $10,080 in cash; and (c) narcotics, including marijuana, ecstasy, and hydrocodone pills. Between August 19, 2020, and September 19, 2020, Mims allegedly withdrew at least $77,000 from various ATMs in Nevada and California using these fraudulently obtained EDD debit cards. At least $261,600 in benefits were approved for the unemployment claims associated with the cards.
Mims is charged with one count of illegal transaction with access devices issued to other persons and one count of aggravated identity theft. He made his initial court appearance yesterday before U.S. Magistrate Judge Elayna J. Youchah. If convicted, Mims faces a statutory maximum penalty of 17 years in prison.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Quentin Heiden of the U.S. Department of Labor Office of Inspector General (DOL-OIG), Los Angeles Region made the announcement.
This case was investigated by DOL-OIG. Assistant U.S. Attorney Jim Fang is prosecuting the case.
In May, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF web complaint form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
A criminal complaint is merely an allegation. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
