Groton Resident Pleads Guilty to Particpating in Mortgage Fraud Conspiracy

David B. Fein, United States Attorney for the District of Connecticut, announced that KENNETH PERKINS, 28, of Groton, pled guilty today before Chief United States District Judge Alvin W. Thompson in Hartford to one count of conspiracy to commit wire fraud stemming from his participation in a mortgage fraud scheme.

According to court documents and statements made in court, PERKINS was a participant in a conspiracy to obtain residential real estate loans, including loans insured by the Federal Housing Administration, through the use of sham sales contracts, false loan applications and fraudulent property appraisals. As part of the scheme, individuals are alleged to have entered into sales contracts with straw purchasers to sell homes for a price higher than the actual price that the sellers would receive. Participants in the conspiracy submitted false documentation in connection with loan applications that were submitted, including fraudulent appraisals of the properties being purchased in order to justify the inflated sales price and the loan amount being sought to fund each purchase.

In pleading guilty, PERKINS admitted that he agreed to serve as a buyer in approximately eight residential property sales that closed between about March 2007 and September 2007. PERKINS admitted that the sales prices on the sales contracts and closing documents were fraudulently inflated, and that they were typically supported by a fraudulent appraisal, in order to secure a loan at an amount higher than the price actually agreed to by the seller. All but one of these properties are in Connecticut.

PERKINS also admitted that false information was provided on his loan applications to the lenders in order to secure the loans needed to fund the property purchases. The false information included information about his income, his assets and liabilities, his intention to occupy the home as his primary residence, and his ownership interest in property in the prior three years. PERKINS received as much as $20,000 each time he agreed to act as a buyer.

PERKINS also assisted the conspiracy by helping to obtain residential real estate loans in the names of other straw buyers. This assistance included creating false documentation in support of loan applications, including false employment records, false wage records and false bank records. It also included utilizing a bank account into which some of the fraudulent proceeds were funneled, and working with an appraiser to generate fraudulent appraisals that would be sent to lenders in support of loan applications.

In total, PERKINS’ fraudulent conduct caused a loss of approximately $1.5 million to lending institutions.

Judge Thompson has scheduled sentencing for December 20, 2011, at which time PERKINS faces a maximum term of imprisonment of five years and a fine of up to $250,000.

U.S. Attorney Fein stated that the investigation is ongoing.

This case is being investigated by the Federal Bureau of Investigation and the U.S. Department of Housing and Urban Development – Office of Inspector General, and is being prosecuted by Assistant United States Attorneys Eric J. Glover and Susan Wines.

In July 2009, the U.S. Attorney’s Office and the Federal Bureau of Investigation announced the formation of the Connecticut Mortgage Fraud Task Force to investigate and prosecute mortgage fraud cases and related financial crimes occurring in Connecticut. In addition to investigating past mortgage fraud schemes, the Task Force will focus on emerging crime trends that are associated with the growing tide of foreclosures, including foreclosure rescue schemes, and short sale schemes. Citizens are encouraged to report any suspected mortgage fraud activity by calling 203-333-3512 and requesting the Connecticut Mortgage Fraud Task Force, or by sending an email to ctmortgagefraud@ic.fbi.gov.

The Connecticut Mortgage Fraud Task Force includes representatives from the U.S. Attorney’s Office; Federal Bureau of Investigation; Internal Revenue Service – Criminal Investigation; U.S. Postal Inspection Service; U.S. Department of Housing and Urban Development, Office of Inspector General; Federal Deposit Insurance Corporation, Office of Inspector General, and State of Connecticut Department of Banking.

To report financial fraud crimes, and to learn more about the President’s Financial Fraud Enforcement Task Force, please visit www.stopfraud.gov.

Attorney General Holder Speaks at the Visa, Mastercard, American Express Press Conference

Washington, D.C. ~ Monday, October 4, 2010

Good afternoon, and thank you all for being here.

Today, the Department of Justice, along with seven state attorneys general, filed a civil antitrust lawsuit in the Eastern District of New York challenging rules that Visa, MasterCard and American Express have put in place that prevent merchants from providing discounts to consumers.

These three companies run the largest three credit card networks in the United States.   Every time a consumer uses one of their credit cards to buy something from a merchant, that merchant pays a fee – a fee that is passed on to consumers through higher prices.   In 2009 alone, the three credit card companies and their affiliate banks collected more than $35 billion in these fees.

Visa, MasterCard and American Express don’t just impose fees, however – they also prevent merchants from offering consumers any cost saving options such as discounts or rewards for using less expensive forms of payment.   The companies put merchants and consumers in a no-win situation:   accept our card, pay our fees, and don’t even think about trying to get a discount.

These restrictive rules prevent price competition among credit card networks, which means merchants face increased business costs and consumers pay higher prices.   With today’s lawsuit we are sending a clear message:   we will not tolerate anticompetitive practices.   We want to put more money in consumers’ pockets, and by eliminating credit card companies’ anticompetitive rules, we will accomplish that.

Now, even as we file today’s lawsuit, I’m pleased to announce that we have reached a proposed settlement with Visa and MasterCard that resolves our antitrust concerns with their use of these rules.

If the settlement with Visa and MasterCard is approved, companies and retailers will be able to provide their customers with more options and cost saving incentives.   And more consumers will be able to receive discounts and, ultimately, enjoy the benefits of lower prices. For example: if you use a preferred, lower-cost credit card, an airline could offer you more miles or a merchant could provide you with a rebate.   Merchants will also be able to inform consumers which cards will lower business costs the most, allowing these savings to be passed on to consumers.

Today’s settlement will enable some Visa and MasterCard customers to receive the benefits of competition right away.   But while it is an important step forward, as long as one credit card company continues to impose anticompetitive rules, there is more work to do.

We need to ensure that every consumer has access to more choices and lower prices.   And that simply will not happen unless, and until, American Express’s restrictive rules are changed.

Because of American Express’s current rules, some consumers will continue to pay higher prices.   That is unacceptable, so we will continue to pursue litigation against American Express until we ensure a fair market for every consumer.

American Express maintains the industry’s most restrictive merchant rules.   American Express also has the highest fees of any credit card company.   They refuse to give merchants the ability to offer rewards to consumers who use a less expensive card, or even to provide information to consumers about the costs of using American Express’s cards.  

Most importantly, American Express’s rules prohibit any of the millions of merchants that accept American Express from taking advantage of the discounts and rebates Visa and MasterCard now can allow as a result of our settlement.   Because American Express has refused to change its rules, consumers are being held hostage from receiving the expanded choices and lower prices they deserve under our settlement Visa and MasterCard.

We cannot allow this to stand, and we will not.   Through our settlement with Visa and MasterCard, our ongoing case against American Express, and our other enforcement efforts, the Department will continue working to ensure increased competition, greater savings for merchants, and lower prices for consumers.

I am proud of the outstanding work that Christine and the Antitrust Division staff have done to address our antitrust concerns, as well as for the cooperation of state attorneys general.   I also want to thank the many Department prosecutors and economists who have worked countless hours to get us to where we are today.   As this process continues, you all have, and deserve, my full and ongoing support.

Thank you all.   And, now, I’d like to turn things over to Assistant Attorney General, Christine Varney.

New Orleans Doctor and Owner of Medical Equipment Company Each Plead Guilty for Their Roles in Baton Rouge-area Health Care Fraud Scheme

WASHINGTON – A New Orleans-area medical doctor and the owner and operator of a medical equipment company each pleaded guilty today for their roles in a Baton Rouge-area durable medical equipment (DME) health care fraud scheme, the Departments of Justice and Health and Human Services (HHS) announced . 

Medical doctor Dahlia V. Kirkpatrick and Emmanuel M. Komandu each pleaded guilty before U.S. District Judge Brian A. Jackson in the Middle District of Louisiana to one count of conspiracy to commit health care fraud.  At sentencing, scheduled for Jan. 6, 2011, Kirkpatrick and Emmanuel each face a maximum penalty of 10 years in prison and a fine equal to the greater of $250,000, or twice the pecuniary loss to the United States resulting from the offense.

According to plea documents, Kirkpatrick began working with Komandu in or around January 2005.   Komandu was the owner and operator of Alpha Medical Solutions Inc., a purported DME supplier based in Baker, La.   Alpha purportedly specialized in the provision of power wheelchairs, wheelchair accessories and feeding nutrients to Medicare-eligible beneficiaries.

According to court documents, from approximately January 2005 through February 2010, Komandu and Kirkpatrick submitted and caused the submission, on behalf of Alpha, of approximately $775,019 in fraudulent claims to the Medicare program. The majority of Alpha' s fraudulent claims were based on prescriptions for medically unnecessary DME that were written and provided by Kirkpatrick.   Kirkpatrick wrote prescriptions for medically unnecessary DME, such as power wheelchairs, wheelchair accessories and feeding nutrients.   Medicare paid $302,811 to Alpha based on these fraudulent claims.

This case was prosecuted by Trial Attorneys O. Benton Curtis III and Sarah M. Hall of the Criminal Division' s Fraud Section.  The case was investigated by the FBI, HHS-OIG and the Louisiana Attorney General' s Office.  The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division' s Fraud Section and the U.S. Attorney' s Office for the Middle District of Louisiana.

Since their inception in March 2007, Strike Force operations in seven districts have obtained indictments of more than 810 individuals who collectively have falsely billed the Medicare program for more than $1.85 billion. In addition, HHS' s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to:www.stopmedicarefraud.gov.

PANASONIC CORP. AND WHIRLPOOL CORP. SUBSIDIARY AGREE TO PLEAD GUILTY FOR ROLE IN PRICE-FIXING CONSPIRACY INVOLVING REFRIGERANT COMPRESSORS

Companies Agree to Pay a Total of $140.9 Million in Criminal Fines

WASHINGTON — Panasonic Corporation and a Whirlpool Corporation subsidiary, Embraco North America Inc., have agreed to plead guilty and to pay a total of $140.9 million in criminal fines for their role in an international conspiracy to fix the prices of refrigerant compressors, which are used in refrigerators and freezers in homes and businesses, the Department of Justice announced today.

According to separate one-count felony charges filed today in U.S. District Court in Detroit, Panasonic, a Japanese corporation, and Embraco, a Delaware-based refrigerant compressor producer and seller, participated in a conspiracy to fix the prices of refrigerant compressors sold in the United States and elsewhere. The department said the conspiracy took place from at least as early as Oct. 14, 2004, until on or about Dec. 31, 2007. According to the plea agreements, which are subject to court approval, both companies have agreed to cooperate with the department's ongoing refrigerant compressor investigation. Embraco has agreed to pay a $91.8 million criminal fine and Panasonic has agreed to pay a $49.1 million criminal fine.

Refrigerant compressors are placed into devices such as refrigerators and freezers and take in low-pressure refrigerant, compress it and then pump out a high-pressure vapor which condenses and subsequently cools the devices.

"These are the first charges as a result of the Antitrust Division's ongoing investigation into the worldwide refrigerant compressors market," said Christine Varney, Assistant Attorney General in charge of the Department of Justice's Antitrust Division. "We are committed to investigating and bringing to justice those who engage in this kind of international price fixing."

According to the charges, Panasonic, Embraco and co-conspirators carried out the conspiracy by agreeing during meetings and conversations to coordinate prices of refrigerant compressors. Panasonic, Embraco and co-conspirators coordinated prices on household compressors. Embraco and co-conspirators also coordinated prices on light commercial compressors. As part of the conspiracy, Panasonic, Embraco and co-conspirators exchanged information for the purpose of monitoring and enforcing adherence to the agreed-upon prices.

Both Panasonic and Embraco are charged with price fixing in violation of the Sherman Act, which carries a maximum fine of $100 million for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.

The department's ongoing investigation into the worldwide refrigerant compressors market is being conducted by the Antitrust Division's Cleveland Field Office and the FBI's Detroit Field Office, Ann Arbor, Resident Agency.

Anyone with information concerning price fixing in the refrigerant compressor industry should call the Antitrust Division's Cleveland Field Office at 216-687-8400 or visit www.justice.gov/atr/contact/newcase.htm.

SIX INTERNATIONAL FREIGHT FORWARDING COMPANIES AGREE TO PLEAD GUILTY TO CRIMINAL PRICE-FIXING CHARGES

Companies Agree to Pay a Total of $50.27 Million in Criminal Fines

WASHINGTON — Six international freight forwarders have agreed to plead guilty and to pay criminal fines totaling $50.27 million for their roles in several conspiracies to fix a variety of fees and charges in connection with the provision of freight forwarding services for international air cargo shipments, the Department of Justice announced today. These are the first charges filed as a result of the department's antitrust investigation of the freight forwarding industry.

According to charges filed separately today in U.S. District Court for the District of Columbia, six companies-EGL Inc., a Houston-based company; Kühne + Nagel International AG, based in Schindellegi, Switzerland (K+N); Geologistics International Management (Bermuda) Limited, based in Hamilton, Bermuda; Panalpina World Transport (Holding) Ltd., based in Basel, Switzerland; Schenker AG, based in Essen, Germany; and BAX Global Inc., a Toledo, Ohio-based company-engaged in one or more separate conspiracies to impose certain charges or fees on customers purchasing international freight forwarding services for cargo freight destined for air shipment to the United States during various periods between 2002 and 2007.

Under the plea agreements, which are subject to court approval, the six companies have agreed to pay the following criminal fines: EGL, $4,486,120; K+N, $9,865,044; Geologistics, $687,960; Panalpina, $11,947,845; Schenker, $3,535,514; and BAX Global, $19,745,927. Each company has also agreed to cooperate with the department's ongoing antitrust investigation.

Freight forwarders manage the domestic and international delivery of cargo for customers by receiving, packaging, preparing and warehousing cargo freight, arranging for cargo shipment through transportation providers such as air carriers and steamship lines, preparing shipment documentation, and providing related ancillary services.

"The department's investigation uncovered six different conspiracies harming businesses and consumers in the United States and across the globe," said Christine Varney, Assistant Attorney General in charge of the Department of Justice's Antitrust Division. "Our investigation continues in this important industry."

According to the charges, the companies carried out the various conspiracies by, among other things, agreeing during meetings and discussions to coordinate various charges and fees on customers purchasing international freight forwarding services for cargo freight destined for air shipment to the United States. The six alleged conspiracies being charged today are:

A global conspiracy that took place from March 2003 to October 2007, to impose an Air Automated Manifest System (AAMS) fee on international air shipments of cargo to the United States, in which EGL, Geologistics and Panalpina and others participated;

A conspiracy that took place from July 2004 to October 2007, to impose an AAMS fee on shipments from Germany to the United States, in which K+N, Schenker and others participated;

A conspiracy that took place from March 2004 to October 2007, to impose an AAMS fee on shipments from Switzerland to the United States, in which K+N and others participated;

A conspiracy that took place from October 2002 to October 2007, to impose a New Export System (NES) fee on international air shipments from the United Kingdom to the United States, in which EGL, K+N, BAX and others participated;

A conspiracy that took place from July 2005 to June 2006, to impose a Currency Adjustment Factor (CAF) on international air shipments from China to the United States, in which K+N, Panalpina, Schenker, BAX and others participated; and

A conspiracy that took place from August 2005 to December 2007, to impose a Peak Season Surcharge (PSS) on shipments from Hong Kong to the United States, in which K+N, Panalpina, Schenker, BAX and others participated.

Each company is charged with price fixing in violation of the Sherman Act, which carries a maximum fine of $100 million per offense for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.

Today's charges are the result of a joint investigation into the freight forwarding industry being conducted by the Antitrust Division's National Criminal Enforcement Section, the FBI's Washington Field Office and the Department of Commerce's Office of Inspector General. Anyone with information concerning price fixing or other anticompetitive conduct in the freight forwarding industry is urged to call the Antitrust Division's National Criminal Enforcement Section at 202-307-6694 or visit www.justice.gov/atr/contact/newcase.htm or call the FBI's Washington Field Office, at 202-278-2000.

Honolulu Man Sentenced to 25 Years in Prison on Sex Trafficking Charges

WASHINGTON—Rodney D. King, 44, was sentenced today by U.S. District Court Judge David Alan Ezra to 300 months in prison followed by a life term of supervised release in federal court, the Justice Department announced. King pleaded guilty on May 25, 2010, to sex trafficking involving two adult women and two minor females, and attempted sex trafficking involving an adult woman. On Aug. 27, 2010, Judge Ezra sentenced King’s co-defendant, Sharon Mae Nishimura, 31, to 100 months in prison followed by five years of supervised release. Nishimura pleaded guilty on Aug. 29, 2009, to attempted sex trafficking involving an adult woman, and sex trafficking involving a minor female.

According to court documents, from April 2006 through June 2007, King used force, fraud and coercion to engage two adult females in commercial sex. Further, in October 2007, King attempted to engage a third adult woman in commercial sex by using force, fraud and coercion, with Nishimura aiding him in that attempt. According to other information before the court, King engaged one of the minor females in commercial sex acts from September 2007 through December 2007, and another minor female in December 2007, knowing both were minors.

“The defendant in this case preyed upon vulnerable women and girls for his own financial gain, robbing them of their freedom and their dignity,” said Assistant Attorney General for the Civil Rights Division Thomas E. Perez. “The Justice Department will aggressively prosecute individuals who engage in human trafficking.”

“This sentence sends a strong message that this type of predatory crime that targets young and vulnerable victims is unacceptable, and we will continue to vigorously prosecute sex trafficking cases,” said Florence T. Nakakuni, U.S. Attorney for the District of Hawaii.

The case culminated investigations by the FBI with the assistance of the Honolulu Police Department and the Sheriff’s Division of the State of Hawaii Department of Public Safety. Assistant U.S. Attorney Darren W.K. Ching and Civil Rights Division trial attorneys Edward Casper and Kayla Bakshi prosecuted this case.

Maryland Contractors and Their President to Pay Settlement for Falsely Obtaining Hubzone Contracts

WASHINGTON – CSI Engineering and CSI Design Build, located in Beltsville, Md., and their president, Debdas Ghosal, have agreed to pay the United States $200,000 to settle claims that they used false statements to obtain contracts from several government agencies, the Justice Department announced today. The contracts had been set aside for companies that qualified for the Small Business Administration’s Historically Underutilized Business Zone (HUBZone) program.

Under the HUBZone program, companies that maintain their principal office in a designated area and employ 35 percent of their workforce from that area, among other requirements, can apply to the Small Business Administration (SBA) for certification as a HUBZone small business company. HUBZone companies can then use this certification when bidding on government contracts. In certain cases, government agencies will restrict competition for a contract to HUBZone-certified companies.

The United States alleged that CSI Design Build falsely represented to the SBA and other government agencies that it maintained its principal office in a designated HUBZone location in Maryland. According to the government, CSI Design Build actually operated as part of CSI Engineering, which was not located in a HUBZone. Both companies are owned by Debdas Ghosal. Despite not qualifying for the HUBZone program, CSI Design Build was awarded contracts that had been set aside for qualified HUBZone companies based upon the false statements it made to the SBA and the contracting agencies. The company obtained HUBZone contracts from the Army, the Department of Labor, the Department of Homeland Security and the Smithsonian Institution.

" When there is fraud in government contracting programs, American taxpayers everywhere are the victims," said Tony West, Assistant Attorney General for the Civil Division of the Department of Justice. "We will take action against any contractor who seeks to gain anunfair advantage over qualified HUBZone small businesses." 

"This case is one of a series that the government has pursued for false claims made to obtain HUBZone set-aside contracts. The SBA Office of Inspector General will continue to aggressively pursue and seek criminal or civil fraud prosecution of false statements made to obtain preferential contracting and other government benefits," said SBA Inspector General Peggy E. Gustafson.

"This case represents the cooperative effort of SBA’s Offices of the General Counsel and the Inspector General and the Department of Justice to uncover and remedy fraud in our procurement programs," said SBA General Counsel Sara Lipscomb.

Assistant Attorney General West thanked the Justice Department’s Civil Division, the SBA Office of General Counsel, and the SBA Office of Inspector General for the collaboration that resulted in the settlement announced today.

6 members of a South Texas marijuana smuggling group sentenced to prison

McALLEN, Texas - Six Starr County area residents in South Texas, who had been convicted of conspiring to possess with intent to distribute more than 1,000 kilograms (2.2 tons) of marijuana, were sentenced Wednesday to lengthy prison terms. U.S. Attorney for the Southern District of Texas José Angel Moreno announced the sentences. U.S. Immigration and Customs Enforcement's (ICE) Office of Homeland Security Investigation (HSI) in Falcon Dam, Texas, investigated the case with the assistance of U.S. Customs and Border Protection's Border Patrol, and the Roma, Texas, Police Department.

Idalia Ramirez, 44, of Salineno, Texas, and a manager of a Starr County marijuana distribution group, was sentenced to 14 years in federal prison without parole by U.S. District Judge Randy Crane. Co-defendants Juan Gabriel Cisneros, 25, Daniella Renee Castaneda, 20, Danny Ruben Castaneda, 47, Roel Mungia, 59, all from Salineno, Texas, and Billy Joe Marroquin, 31, of Falcon Heights, Texas, were also sentenced for their respective roles in the conspiracy to sentences ranging from 18 to 60 months.

Ramirez pleaded guilty in June 2010 to conspiring to possess with intent to distribute more than 2000 pounds of marijuana between May 21, 2009 and March 6, 2010. Ramirez admitted to coordinating smuggling marijuana from Mexico into Starr County, Texas, and hiring co-defendants to store marijuana at their residences pending further distribution up north. Overall, ICE HSI seized more than 2,000 kilograms (4,400 pounds) of marijuana connected to Ramirez's activities. On Sept. 29, Judge Crane held her responsible for not only the marijuana seized, but an estimated 6,000 additional kilograms of marijuana distributed as part of the conspiracy but not seized. Ramirez coordinated the crossing of at least one load estimated to contain at least 225 kilograms (495 pounds) of marijuana per week over a nine-month period.

Additionally, the sentence handed down by the court takes into consideration Ramirez's role in hiring others to store the marijuana in Salineno, a small community in Starr County, Texas, and near Roma and the Rio Grande River. Ramirez has also been ordered to serve a five-year-term of supervised release after she completes her prison term. Ramirez was indicted on April 20, 2010 and was arrested by ICE HSI agents the following day. She has been in federal custody held without bond since her arrest, and will remain in custody to serve her sentence. After she completes her sentence, Ramirez, a Mexican national, is subject to deportation.

Cisneros, along with Daniella and Danny Castaneda, who had stored 442 kilograms of marijuana for Ramirez at Danny Castaneda's residence in Salineno on Feb. 21, were arrested after law enforcement seized the marijuana. Indicted along with Ramirez in April 2010, Daniella Castaneda pleaded guilty to possession with intent to distribute marijuana on June 11; Cisneros and Danny Castaneda pleaded guilty to the same charge on July 2. After considering their respective roles in the conspiracy and their respective criminal history, Judge Crane sentenced Cisneros, Daniella Castaneda's common-law husband, to 33 months in prison to be followed by a three-year-term of supervised release.

Daniella Castaneda was sentenced to 18 months imprisonment to be followed by a three-year-term of supervised release. Danny Castaneda, Daniella Castaneda's father, was sentenced to a 60-month prison sentence and a four-year-term of supervised release. Cisneros and Danny Castaneda have been in custody since their February 2010 arrest; they will remain in custody to serve their sentences. Daniella Castaneda was released on bond March 1, and has been permitted to remain on bond until Oct. 18 when she has been ordered to surrender to the U.S. Marshals Service to begin serving her sentence.

Mungia pleaded guilty in July to storing 81 kilograms of marijuana for Ramirez and was sentenced to 30 months imprisonment for his role in the conspiracy. The 81 kilograms of marijuana was seized on March 26 by ICE HSI agents. In custody since May 19 when his bond was revoked for using illegal substances, Mungia will remain in custody to serve his sentence.

Marroquin, who was indicted with his uncle, Joel Luera, 48, of Falcon Heights, Texas, along with Ramirez, was also sentenced Wednesday. On June 4, Luera pleaded guilty to possession with intent to distribute the 364.2 kilograms of marijuana he stored at his residence in Salineno for Ramirez. Marroquin pleaded guilty to the same charge on July 2. Marroquin admitted to loading the marijuana at his uncle's residence into a vehicle in exchange for financial compensation. Today, Judge Crane sentenced Marroquin to 60 months in prison to be followed by a four-year-term of supervised release. Additionally, Judge Crane revoked Marroquin's prior federal term of supervised release imposed following a prior conviction for possession with intent to distribute less than 50 kilograms of marijuana out of Laredo, Texas. Already in custody, Marroquin will serve both sentences concurrently.

Luera was sentenced on Aug. 24 by Judge Crane to 60 months in prison and a four-year-term of supervised release. He has been in federal custody since his April 2010 arrest and will remain in custody.

For the most up-to-date ICE information, sign up for ICE e-mail alerts. You may also visit us on Twitter and YouTube.

-- ICE --

Idahoan sentenced for role in Nigerian financial scheme

BOISE, Idaho - A Magic Valley woman who mailed dozens of counterfeit money orders and cashier's checks worth nearly a million dollars was sentenced today to 29 months in federal prison and three years of supervised release for her role in a scheme uncovered by U.S. Immigration and Customs Enforcement's (ICE) Office of Homeland Security Investigations (HSI). 

Joyce Marie Rucks, 57, of Twin Falls, Idaho, pleaded guilty in July to one count of mail fraud.  She was also ordered to pay $26,625 in restitution to some of the victims she defrauded.

The investigation into Rucks began in late March when officers with U.S. Customs and Border Protection (CBP) in Memphis, Tenn., intercepted a Federal Express package from Nigeria that was addressed to Rucks.  The package contained 288 counterfeit money orders and 80 phony cashier's checks with a total value of more than $550,000.

HSI agents with assistance from the U.S. Postal Inspection Service and the Twin Falls Police Department tracked the package to Rucks.  Authorities served a federal search warrant at her residence in early April.

Rucks admitted she used express mail envelopes from the post office and other carriers to send out counterfeit money orders and cashier's checks to hundreds of people across the United States.  She received the names and pre-made address labels from Nigeria.

Others involved in the scheme enticed unsuspecting victims by telephone or e-mail to cash the checks or money orders they received from Rucks.  They were directed to wire or mail the proceeds to an overseas account.

The victims were also offered seemingly legitimate business opportunities such as becoming secret shoppers or participating in "earn while you learn" activities.  It was only when the victims were held liable for the counterfeit transactions that they learned of the scheme.

Although Rucks did not receive proceeds from her illegal actions, she admitted that the items she mailed were counterfeit.  Ultimately, federal agents seized $980,000 in phony checks and money orders in her possession and she admitted to previously mailing an additional $240,000 in fake financial documents.

"Let this case serve as a reminder that there are consequences for taking advantage of an unsuspecting public and exploiting our nation's financial system," said Leigh Winchell, special agent in charge of ICE HSI in Idaho.  "We will continue to use our unique investigate authorities to uncover illegal financial transactions and hold offenders accountable for their crimes."

The U.S. Attorney's Office advises the public to exercise caution in any situation that enlists them to cash checks or money orders and then forward the proceeds to a third party. This is especially true where directions are given to wire funds to foreign countries.

For the most up-to-date ICE information, sign up for ICE e-mail alerts. You may also visit us on Twitter and YouTube.

-- ICE --

Guilty pleas entered in multi-state prostitution and money laundering scheme

SEATTLE - The owners and operators of several massage parlors in two states pleaded guilty over the past two weeks to federal felony charges in the Western District of Washington, stemming from an investigation into prostitution and money laundering by U.S. Immigration and Customs Enforcement's (ICE) Office of Homeland Security Investigations (HSI).

Tham Nguyen, 49, of Lodi, Calif., pleaded guilty Thursday to one count of conspiracy to engage in money laundering.  Carl Hencmann, 66, also of Lodi, pleaded guilty September 22 to one count of conspiracy to transport individuals in furtherance of prostitution.  Suong Tran, 51, of Burien, Wash., pleaded guilty Sept. 16 to one count of misprision of a felony.

According to the plea agreement, Nguyen and Hencmann admitted that beginning in 2007 and continuing until April 21, 2010, they operated three brothels in King County, Wash., under the guise of providing sauna and massage services.  Each of the businesses employed Asian females who traveled from out of state to work at the brothels and provide sex services to customers for a fee, generating substantial profits for the owners.

In his plea agreement, Tran admitted that he was employed by these businesses and assisted in the day-to-day operations.  Despite the fact that he knew women were traveling from out of state to provide sex for a fee, he failed to report this crime to law enforcement.

In addition, Hencmann admits that on Aug. 23, 2008, a female who was licensed to work legally as a prostitute at a legal brothel he owned in Nevada traveled from Las Vegas to Seattle for the purpose of working as a prostitute at one of his businesses here.  Her plane ticket was purchased using a credit/debit card that belonged to an unnamed co-conspirator in the case.

"This case illustrates HSI's commitment to investigating those individuals who seek to profit from violating the law and dignity of another human being," said Leigh Winchell, special agent in charge of ICE HSI in Seattle.  "ICE will continue to combat this form of modern day slavery."

On April 22, HSI agents and other law enforcement authorities executed federal search warrants at the following businesses, which were owned or operated by the defendants:

Bamboo Sauna - 14021 Ambaum Blvd. S.W., Burien

Fantasy Health Spa - 11516 124th Avenue N.E., Kirkland, Wash.

Sauna Relax Station - 1537B Auburn Way North, Auburn, Wash.

AAH Spa - 20 North Cherokee Lane, Lodi

Valley Spa - 321 North California Street, Lodi

Healthy Living Nails and Spa - 3715 47th Avenue, Sacramento, Calif.

#1 Geisha - 357 Douglas Street in Elko, Nev.

Nguyen and Tran were taken into custody the day the warrants were served. Hencmann turned himself into authorities in Sacramento the following day.

Conspiracy to engage in money laundering carries a maximum penalty of five years in prison and/or fines of up to $250,000 or twice the laundered funds. Conspiracy to transport individuals in furtherance of prostitution carries a maximum penalty of five years in prison and/or fines of up to $250,000. Misprision of a felony carries a maximum penalty of three years in prison and/or fines of up to $250,000.

Tran is scheduled to be sentenced on December 10; Hencmann is scheduled to be sentenced December 17; and Nguyen is scheduled to be sentenced Jan. 7, 2011. HSI was joined in this investigation by sheriff's departments in King County, Wash., and Sacramento County, Calif.; as well as U.S. Customs and Border Protection and the police departments in Seattle, Auburn, Burien, Kirkland, Lodi, and Elko.

For the most up-to-date ICE information, sign up for ICE e-mail alerts. You may also visit us on Twitter and YouTube.

-- ICE --

Seattle woman sentenced for selling counterfeit exercise equipment

SEATTLE - A Washington state woman who sold counterfeit exercise equipment on the Internet was sentenced to 30 days in federal prison Friday, following an investigation by U.S. Immigration and Customs Enforcement's (ICE) Office of Homeland Security Investigations (HSI).

Genevieve Rullan, 34, of Seattle, was also sentenced to 120 days of home confinement, 150 hours of community service, three years of supervised release and ordered to pay $64,500. She pleaded guilty in June to a single count of trafficking in counterfeit goods.

According to the plea agreement, a shipment addressed to Rullan cleared customs at the Port of Seattle in August 2009. Rullan informed her customs broker that the shipment was "exercise equipment that is not branded."

HSI's investigation showed that the container held about 320 counterfeit Ab Circle Pros. After Rullan received the equipment, she advertised, promoted and ultimately sold the exercisers on eBay and other websites, misleading the buyers as to the authenticity of the product.

In November 2009, another shipment addressed to Rullan arrived at the Port of Seattle. This time she told her customs broker that the shipment contained generic and unbranded items. This shipment also contained about 320 counterfeit Ab Circle Pros, which she sold on the Internet.

During the investigation into Rullan's illegal activities, an HSI agent communicated with her over the Internet and questioned the authenticity of the equipment she was selling on eBay. Rullan responded that the items were not fake, explaining they were being sold at a discounted rate because "that is the going rate on eBay."

In December 2009, HSI agents executed federal criminal search warrants at Rullan's home and seized 210 counterfeit Ab Circle Pros. Agents also seized evidence of a double invoicing scheme, other types of counterfeit exercise equipment and information that she had sold more than 1,000 counterfeit items on eBay.

The investigation showed that some customers questioned the authenticity of the items Rullan was selling. She responded to the inquiries by insisting the products were genuine, even providing a letter to eBay falsely claiming that she was an authorized distributor of the exerciser units on behalf of the legitimate manufacturer Fitness Brands, Inc. This bogus claim ultimately damaged the reputation of the manufacturer.

"This case serves as a reminder that the sale and purchase of counterfeit goods is not a victimless crime," said Leigh Winchell, special agent in charge of ICE HSI in Seattle.

"This type of illegal behavior robs legitimate businesses of millions of dollars in lost revenue and provides an unwitting public with sub-par merchandise. HSI will continue to investigate these crimes in an effort to deter this activity in the United States and around the world."

"When a counterfeiter like Ms. Rullan sells an illegitimate product, trademark holders suffer direct and immediate financial harm, in the form of lost purchases of their legitimate product," Assistant U.S. Attorney Matthew Diggs wrote in the sentencing memo. "Trademark holders also suffer more indirect harm, such as the damage to their reputation when the counterfeit products turn out to be low quality and faulty, as were the products sold by Ms. Rullan."

At the sentencing hearing, U.S. District Judge Ricardo S. Martinez noted that "there were many, many false statements to customs and to customers . . . there were many overt acts to keep this scheme going."

In fiscal year 2009, HSI's investigations into the sale of counterfeit goods resulted in the seizure of more than $62 million in pirated and counterfeit goods. The vast majority of the counterfeit goods seized come from China.

HSI manages the National Intellectual Property Rights Coordination Center (IPR Center), which plays a pivotal role in the U.S. government's domestic and international law enforcement attack on IPR violations. HSI agents and U.S. Customs and Border Protection (CBP) personnel throughout the country rely upon the IPR Center for guidance in their investigations and inspections.

The IPR Center is one of the U.S. government's key weapons in the fight against counterfeiting. The IPR Center offers one-stop shopping for both law enforcement and the private sector to address the growing transnational threat of counterfeit merchandise.

The IPR Center coordinates outreach to U.S. rights holders and conducts domestic and international law enforcement training to stem the growing counterfeiting threat and also directs anti-counterfeiting investigations.

To learn more about the IPR Center visit www.ice.gov. Report information on counterfeiting and trademark violations at (866) IPR-2060.

HSI was joined in this investigation by the Port of Seattle with assistance from CBP.

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Miami jeweler pleads guilty to $40 million Ponzi scheme and $12 million bank fraud scheme

MIAMI - Luis Felipe Perez, 38, of Fort Lauderdale, Fla., pleaded guilty on Sept. 23 to securities fraud in connection with a $40 million Ponzi scheme following an investigation led by U.S. Immigration and Customs Enforcement's (ICE) Office of Homeland Security Investigations (HSI).  In a separate but related case, Perez also pleaded guilty to conspiracy to commit bank fraud in connection with a $12 million scheme.

In court, Perez admitted that from approximately 2006 through mid-2009, he solicited funds from approximately 35 individuals in exchange for promissory notes or oral loan agreements.  He falsely informed investors that they would be investing in his jewelry businesses or in pawn shops located in New York City.  In fact, however, only a small portion of investor money was used for Perez's jewelry businesses and none of the money was ever invested with any pawn shops.

According to the charges and documents filed in court, Perez also promised investors high returns from these investments of between 2 percent to 10 percent monthly, which would result in 24 percent to 120 percent paid annually.  Perez created an unsustainable Ponzi scheme in which he used the monies collected from new investors to pay the returns promised to the earlier investors.

When prospective investors told Perez that they did not have money available to invest with him, he referred them to a certified public accountant named Berta Sanders, who is charged with conspiracy to commit bank fraud with Perez.

Sanders then prepared fraudulent loan applications on behalf of these investors, which were submitted to Wachovia Bank.  These false loan applications contained false information about the borrower's business income, assets, and accounts receivable.

Sanders also prepared false tax returns, bank statements, and personal financial statements in connection with the line of credit applications.  Once the borrowers received the proceeds from the fraudulent loan applications, they invested most of the funds in Perez's Ponzi-scheme.  When Perez's Ponzi scheme ultimately collapsed in May 2009, most of the fraudulent loans obtained from Wachovia subsequently defaulted.

Most of Perez's investors never recovered their investments, while Perez made millions of dollars and lived an extravagant lifestyle that included a multi-million dollar home, expensive cars, and international travel.  The loss created by Perez's participation in these fraudulent activities is approximately $37 million.

Sentencing has been scheduled for Dec. 2 before U.S. District Judge Paul C. Huck.

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Desoto County to benefit from ICE strategy to enhance the identification, removal of criminal aliens

Uses biometrics to prioritize immigration enforcement actions against convicted criminal aliens

DESOTO, Miss. - On Tuesday, U.S. Immigration and Customs Enforcement (ICE) began using a new biometric information sharing capability in Desoto County that helps federal immigration officials identify aliens, both lawfully and unlawfully present in the United States, who are booked into local law enforcement's custody for a crime. This capability is part of Secure Communities-ICE's comprehensive strategy to improve and modernize the identification and removal of criminal aliens from the United States.

Previously, fingerprint-based biometric records were taken of individuals charged with a crime and booked into custody and checked for criminal history information against the Department of Justice's (DOJ) Integrated Automated Fingerprint Identification System (IAFIS). Now, through enhanced information sharing between DOJ and the Department of Homeland Security (DHS), fingerprint information submitted through the state to the FBI will be automatically checked against both the FBI criminal history records in IAFIS and the biometrics-based immigration records in DHS's Automated Biometric Identification System (IDENT).

If fingerprints match those of someone in DHS's biometric system, the new automated process notifies ICE. ICE evaluates each case to determine the individual's immigration status and takes appropriate enforcement action. This includes aliens who are in lawful status and those who are present without lawful authority. Once identified through fingerprint matching, ICE will respond with a priority placed on aliens convicted of the most serious offenses first-such as those with convictions for major drug offenses, murder, rape and kidnapping. 

"The Secure Communities strategy provides ICE with an effective tool to identify criminal aliens in local custody," said Secure Communities Executive Director David Venturella. "Enhancing public safety is at the core of ICE's mission. Our goal is to use biometric information sharing to remove criminal aliens, preventing them from being released back into the community, with little or no additional burden on our law enforcement partners."

With the expansion of the biometric information sharing capability to Desoto County, ICE is using this capability in five Mississippi jurisdictions, including Harrison, Lowndes, Rankin and Warren counties.

Across the country, ICE is using this capability in 658 jurisdictions in 32 states. By 2013, ICE plans to be able to respond to all fingerprint matches generated nationwide through IDENT/IAFIS interoperability.

"We applaud the efforts of U.S. Immigration and Customs Enforcement (ICE) in working with us to remove dangerous criminals from within Desoto County," said Sheriff Bill Rasco. "This is yet another example of local and federal agencies working together effectively to keep our communities safe."

Since ICE began using this enhanced information sharing capability in October 2008, immigration officers have removed from the United States more than 12,200 criminal aliens convicted of Level 1 crimes, such as murder, rape and kidnapping. Additionally, ICE has removed more than 29,500 criminal aliens convicted of Level 2 and 3 crimes, including burglary and serious property crimes, which account for the majority of crimes committed by aliens. ICE does not regard aliens charged with, but not yet convicted of crimes, as "criminal aliens." Instead, a "criminal alien" is an alien convicted of a crime. In accordance with the Immigration and Nationality Act, ICE continues to take action on aliens subject to removal as resources permit.

The IDENT system is maintained by DHS's US-VISIT program and IAFIS is maintained by the FBI's Criminal Justice Information Services (CJIS).

"US VISIT is proud to support ICE, helping provide decision makers with comprehensive, reliable information when and where they need it," said US-VISIT Director Robert Mocny. "By enhancing the interoperability of DHS's and the FBI's biometric systems, we are able to give federal, state and local decision makers information that helps them better protect our communities and our nation."

"Under this plan, ICE will be utilizing FBI system enhancements that allow improved information sharing at the state and local law enforcement level based on positive identification of incarcerated criminal aliens," said Daniel D. Roberts, assistant director of the FBI's CJIS Division. "Additionally, ICE and the FBI are working together to take advantage of the strong relationships already forged between the FBI and state and local law enforcement necessary to assist ICE in achieving its goals."

For more information, visit www.ice.gov/secure_communities.

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ON THE SOUTHWEST BORDER: The Importance of Intelligence

It’s just before 9:30 a.m., and people are gathering in a large operations room at the El Paso Intelligence Center (EPIC) for the daily morning briefing. Soon, eyes are drawn to the maps and monitors around the room as representatives from a variety of federal and state agencies provide their most current information on crime and law enforcement activities along the Southwest border.

EPIC provides 24/7 tactical intelligence to law enforcement around the world through watch operations, analytical support, and access to a variety of state and federal databases. Led by the Drug Enforcement Administration, it is also the nerve center for intelligence efforts on the Southwest border—and home base for the FBI’s Southwest Intelligence Group (SWIG).

“EPIC is a valuable asset in the fight against the cartels,” said Kevin Perkins, assistant director of our Criminal Investigative Division. That’s because the timely collection and sharing of intelligence is critical to stemming the flow of illegal drugs across the border into the United States. EPIC’s multi-agency approach ensures that federal, state, and local law enforcement have access to real-time intelligence.

About 300 agents, analysts, computer experts, translators, administrators, and support staff from 15 federal agencies work around the clock at EPIC to piece together raw intelligence from a variety of law enforcement databases into actionable intelligence that could lead to arrests, seizures, and the disruption of drug trafficking.

The Bureau maintains a staff of about a dozen agents and analysts at EPIC who contribute investigative and analytic resources. They also manage the SWIG, which provides additional intelligence to our key Southwest offices.

“The SWIG was created in 2009 in response to Southwest border office requests to better coordinate the intelligence that was out there,” said Keith Slotter, special agent in charge of our San Diego Field Office. “One of the issues we had in those offices was a lack of knowledge and sharing of information. It wasn't intentional—we just didn't have a good mechanism to do it.”

While Slotter was familiar with the issues his office was facing in San Diego, he often had less of an understanding of the issues faced in El Paso or Phoenix, for example. The SWIG was established to remedy this intelligence gap and to provide a big-picture look at the Southwest border.

“Now we get daily reports of raw intelligence coming from a variety of different sources,” Slotter said. “Every day I and many other people in San Diego and other divisions—several hundred people—get a two- or three-page summary of the day's events and what's going on. So I know what happened in Juarez today,” he added, “and what happened in Nogales and in other areas of interest so that we can draw some connectivity to what goes on here.”

EPIC and the SWIG provide the Bureau with a continually updated intelligence snapshot along the entire Southwest border. This is crucial because the border is the principal arrival zone for most of the illicit drugs smuggled into the country, as well as the main staging area for the subsequent distribution of drugs throughout the U.S.

 “If we are going to be able to disrupt and dismantle the drug trafficking organizations,” Perkins said, “we need excellent intelligence gathering and sharing operations. EPIC and the SWIG give us these key capabilities.”

Florence Man Indicted on Child Pornography Charges

COLUMBIA, SC—United States Attorney Bill Nettles stated today that Gary Cook Dixon, age 46, of Florence, South Carolina, was charged in a two-count indictment with knowingly transporting and shipping child pornography in interstate commerce, a violation of Title 18, United States Code, Section 2252A(a)(1). 

Bill Nettles stated the maximum penalty Gary Cook Dixon could receive is a fine of $250,000.00 and/or imprisonment of 20 years. Mr. Nettles stated that the case was investigated by agents of the Federal Bureau of Investigation and that he has assigned the case to Assistant United States Attorney William E. Day, II of the Florence office for prosecution. The United States Attorney stated that all charges in this indictment are merely accusations and that all defendants are presumed innocent until and unless proven guilty.

Six International Freight Forwarding Companies Agree to Plead Guilty to Criminal Price-fixing Charges

Companies Agree to Pay a Total of $50.27 Million in Criminal Fines

WASHINGTON — Six international freight forwarders have agreed to plead guilty and to pay criminal fines totaling $50.27 million for their roles in several conspiracies to fix a variety of fees and charges in connection with the provision of freight forwarding services for international air cargo shipments, the Department of Justice announced today.   These are the first charges filed as a result of the department’s antitrust investigation of the freight forwarding industry.

According to charges filed separately today in U.S. District Court for the District of Columbia, six companies–EGL Inc., a Houston-based company; Kühne + Nagel International AG, based in Schindellegi, Switzerland (K+N); Geologistics International Management (Bermuda) Limited, based in Hamilton, Bermuda; Panalpina World Transport (Holding) Ltd., based in Basel, Switzerland; Schenker AG, based in Essen, Germany; and BAX Global Inc., a Toledo, Ohio-based company–engaged in one or more separate conspiracies to impose certain charges or fees on customers purchasing international freight forwarding services for cargo freight destined for air shipment to the United States during various periods between 2002 and 2007.  

Under the plea agreements, which are subject to court approval, the six companies have agreed to pay the following criminal fines: EGL, $4,486,120; K+N, $9,865,044; Geologistics, $687,960; Panalpina, $11,947,845; Schenker, $3,535,514; and BAX Global, $19,745,927.   Each company has also agreed to cooperate with the department’s ongoing antitrust investigation.

Freight forwarders manage the domestic and international delivery of cargo for customers by receiving, packaging, preparing and warehousing cargo freight, arranging for cargo shipment through transportation providers such as air carriers and steamship lines, preparing shipment documentation, and providing related ancillary services.

“The department’s investigation uncovered six different conspiracies harming businesses and consumers in the United States and across the globe,” said Christine Varney, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division.   “Our investigation continues in this important industry.”

According to the charges, the companies carried out the various conspiracies by, among other things, agreeing during meetings and discussions to coordinate various charges and fees on customers purchasing international freight forwarding services for cargo freight destined for air shipment to the United States.   The six alleged conspiracies being charged today are:

A global conspiracy that took place from March 2003 to October 2007, to impose an Air Automated Manifest System (AAMS) fee on international air shipments of cargo to the United States, in which EGL, Geologistics and Panalpina and others participated;

A conspiracy that took place from July 2004 to October 2007, to impose an AAMS fee on shipments from Germany to the United States, in which K+N, Schenker and others participated;

A conspiracy that took place from March 2004 to October 2007, to impose an AAMS fee on shipments from Switzerland to the United States, in which K+N and others participated;

A conspiracy that took place from October 2002 to October 2007, to impose a New Export System (NES) fee on international air shipments from the United Kingdom to the United States, in which EGL, K+N, BAX and others participated;

A conspiracy that took place from July 2005 to June 2006, to impose a Currency Adjustment Factor (CAF) on international air shipments from China to the United States, in which K+N, Panalpina, Schenker, BAX and others participated; and

A conspiracy that took place from August 2005 to December 2007, to impose a Peak Season Surcharge (PSS) on shipments from Hong Kong to the United States, in which K+N, Panalpina, Schenker, BAX and others participated.

Each company is charged with price fixing in violation of the Sherman Act, which carries a maximum fine of $100 million per offense for corporations.   The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.

Today’s charges are the result of a joint investigation into the freight forwarding industry being conducted by the Antitrust Division’s National Criminal Enforcement Section, the FBI’s Washington Field Office and the Department of Commerce’s Office of Inspector General.   Anyone with information concerning price fixing or other anticompetitive conduct in the freight forwarding industry is urged to call the Antitrust Division’s National Criminal Enforcement Section at 202-307-6694 or visitwww.justice.gov/atr/contact/newcase.htm  or call the FBI’s Washington Field Office, at 202-278-2000.

Honolulu Man Sentenced to 25 Years in Prison on Sex Trafficking Charges

WASHINGTON – Rodney D. King, 44, was sentenced today by U.S. District Court Judge David Alan Ezra to 300 months in prison followed by a life term of supervised release in federal court, the Justice Department announced. King pleaded guilty on May 25, 2010, to sex trafficking involving two adult women and two minor females, and attempted sex trafficking involving an adult woman. On Aug. 27, 2010, Judge Ezra sentenced King’s co-defendant, Sharon Mae Nishimura, 31, to 100 months in prison followed by five years of supervised release. Nishimura pleaded guilty on Aug. 29, 2009, to attempted sex trafficking involving an adult woman, and sex trafficking involving a minor female.

According to court documents, from April 2006 through June 2007, King used force, fraud and coercion to engage two adult females in commercial sex. Further, in October 2007, King attempted to engage a third adult woman in commercial sex by using force, fraud and coercion, with Nishimura aiding him in that attempt. According to other information before the court, King engaged one of the minor females in commercial sex acts from September 2007 through December 2007, and another minor female in December 2007, knowing both were minors.

"The defendant in this case preyed upon vulnerable women and girls for his own financial gain, robbing them of their freedom and their dignity," said Assistant Attorney General for the Civil Rights Division Thomas E. Perez. "The Justice Department will aggressively prosecute individuals who engage in human trafficking."

"This sentence sends a strong message that this type of predatory crime that targets young and vulnerable victims is unacceptable, and we will continue to vigorously prosecute sex trafficking cases," said Florence T. Nakakuni, U.S. Attorney for the District of Hawaii.

The case culminated investigations by the FBI with the assistance of the Honolulu Police Department and the Sheriff’s Division of the State of Hawaii Department of Public Safety. Assistant U.S. Attorney Darren W.K. Ching and Civil Rights Division trial attorneys Edward Casper and Kayla Bakshi prosecuted this case.

Indiana man sentenced to 20 years for receiving child pornography

INDIANAPOLIS - A local man who viewed child pornography at a public library was sentenced Wednesday to 20 years in federal prison after pleading guilty to receiving child pornography. The sentence resulted from an investigation conducted by U.S. Immigration and Customs Enforcement's (ICE) Office of Homeland Security Investigations (HSI); the Kokomo, Ind., Police Department and the Peru, Ind., Police Department.

William P. Smith, 27, of Kokomo was sentenced to 240 months in prison Sept. 29 in the Southern District of Indiana following his guilty plea to receiving child pornography.

On Jan.12, the Kokomo Police Department responded to the temporary facility of the Howard County Public Library after receiving a report that someone was viewing child pornography on the computer. Library officials indicated that a person in the library was using one of the computers to transfer files from the computer to a piece of loose digital storage media, such as a thumb drive.

Library staff directed police to Smith, who was using a computer in the library's computer lab. When the officers asked him what he had been doing in the computer lab, Smith stated that he was taking images out of his email and placing them onto his digital camera. The officers escorted Smith from the library and kept Smith's personal effects to prevent the possible destruction of potential evidence. The items included a digital camera containing a two gigabyte media card and eight CDs.

The following day, Smith granted permission for officers to search the items confiscated from him at the library. The items were found to contain images of child pornography. When confronted with this information, Smith confessed that he was aware of the child pornography images in his email, and he admitted that he regularly collected child pornography from the Internet.

U.S. District Judge Sarah Evans Barker also imposed a lifetime of supervised release following Smith's release from prison. During the period of supervised release, Smith must register as a sex offender, engage in sex offender counseling, and is prohibited from having unsupervised contact with children, among other restrictions and requirements.

This investigation was part of Operation Predator, a nationwide ICE initiative to protect children from sexual predators, including those who travel overseas for sex with minors, Internet child pornographers, criminal alien sex offenders, and child sex traffickers. Since Operation Predator was launched in July 2003, ICE agents have arrested more than 12,800 individuals.

ICE encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-DHS-2ICE. This hotline is staffed around the clock by investigators.

Suspected child sexual exploitation or missing children may be reported to the National Center for Missing and Exploited Children, an Operation Predator partner, at 1-800-843-5678 or http://www.cybertipline.com.

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ICE announces results of repatriation program

TUCSON, Ariz. - U.S. Immigration and Customs Enforcement (ICE) announced Thursday that 23,384 Mexican citizens agreed to voluntarily return to their hometowns in the interior of Mexico by participating in the Mexican Interior Repatriation Program (MIRP).

MIRP is a bilaterally beneficial voluntary program that ensures the safe and swift return of Mexican nationals found unlawfully in the Sonora Arizona desert region of the United States to their places of origin in the Mexican interior. The program is run by ICE, the Mexican Ministry of Foreign Affairs and the Mexican Ministry of the Interior.

The last flight for 2010, carrying 130 people, departed Tucson Tuesday for Mexico City.

"MIRP reflects our mutual commitment to strong and effective enforcement of both nations' immigration laws, and this program is proof that we can do so in a humanitarian way," said Katrina S. Kane, field office director for ICE's Office of Enforcement and Removal Operations (ERO) in Arizona. "This program prioritizes the humane treatment of detainees throughout the removal process."

MIRP was designed in 2004 as a bilateral effort between the United States and Mexico to reduce the loss of human life and combat organized crime linked to the smuggling, trafficking and exploitation of persons.

Under MIRP, Mexican nationals apprehended in U.S. Border Patrol's Yuma and Tucson Sectors are taken to DHS facilities in Nogales and Yuma, Ariz., where candidates are medically screened, meet with officials from Mexican Consulate and are offered the opportunity to voluntarily participate in the program.

This year's first repatriation flight departed Tucson International Airport on June 1. Of the 23,384 people returned this year 85 percent were men and 15 percent were women. A total of 963 juveniles accompanied by their parents participated in MIRP as well.

More than 116,000 Mexican nationals have been safely returned under MIRP over the program's seven summers of operation.

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