FOUR DEFENDANTS INDICTED IN MULTIMILLION DOLLAR MORTGAGE FRAUD CONSPIRACY

TUCSON, Ariz. – A federal grand jury returned an indictment charging four defendants in a mortgage fraud conspiracy. The indictment charged 20-counts including conspiracy to commit bank fraud, false statement to influence a financial institution, and conspiracy to commit transactional money laundering. 

The defendants charged in various counts of the indictment are: Real Estate Developers, William Michael Naponelli and Walter Scott Fruit; escrow officer, Sandra Jackson; and real estate agent, Brian Atwood.  The defendants will be required to appear in federal court for their arraignment. 

“The indictment alleges that the defendants fraudulently obtained loans for nineteen properties that eventually ended in foreclosure,” said Acting U.S. Attorney Ann Birmingham Scheel.  “As mortgage fraud continues to impact our communities we also continue working closely with the IRS and FBI to hold those responsible for this fraud accountable.”

The indictment alleges that the defendants conspired to commit mortgage fraud to obtain nineteen loans totaling approximately $5.85 million between the years 2006 through 2007.

According to the indictment, Naponelli and Fruit purchased properties using various business entities with which they were associated.  Thereafter, Naponelli and Fruit sold these properties to straw buyers for a profit. 

The indictment further alleges that the defendants submitted to lenders loan applications and other documents that contained material false representations relating to the purchase of the nineteen properties.  After the fraudulently obtained loan proceeds were received portions of the loan proceeds were diverted into bank accounts under the control of some of the co-conspirators. 

As a result of the mortgage fraud scheme, each of the properties referenced in the indictment went into foreclosure.  

A conviction for conspiracy to commit bank fraud and false statement to influence a financial institution carries a maximum penalty of thirty years in prison, a $1,000,000 fine, or both.  A conviction for Conspiracy to Commit Transactional Money Laundering carries a maximum penalty of 10 years in prison and a $250,000 fine.

An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that established guilt beyond a reasonable doubt.

The investigation preceding the indictment was conducted by the Internal Revenue Service – Criminal Investigations and the Federal Bureau of Investigation. The prosecution is being handled by Jonathan B. Granoff, Assistant U.S. Attorney, District of Arizona, Tucson.

CASE NUMBER:      CR11-3046-CKJ(JJM)

And…

Obama wants major federal role in home mortgages…just when you thought it was safe to come out of your storm shelter

TWO CHARGED IN ARIZONA WALLOW FIRE

PHOENIX – Two cousins have been charged for causing a fire that burned more than 538,000 acres in Arizona and part of Western New Mexico before it was contained. Caleb Joshua Malboeuf, 26, of Benson, Ariz.; and David Wayne Malboeuf, 24, of Tucson, Ariz., were charged in connection with the Wallow Fire, which started on May 29, 2011, in the Apache Sitgreaves National Forest. They are scheduled to make an initial appearance in federal court in Flagstaff, Ariz. on September 19, 2011.

The fire, fueled by dry and windy conditions, destroyed 32 residential structures, four commercial structures and 36 outbuildings and cost over $79,000,000 to fight. Both defendants were charged with five counts: Causing Timber to Burn, Leaving a Fire Unattended and Unextinguished, Leaving a Fire Without Completely Extinguishing It, Causing and Failing to Maintain Control of a Fire and Building a Campfire Without Removing All Flammable Material From Around the Campfire Adequate to Prevent its Escape.

“Our national forests are among our most precious resources and we all have a responsibility to care for them when we visit,” stated U.S. Attorney Dennis K. Burke of the District of Arizona.”This devastating fire destroyed pristine national forest, scenic wilderness, and numerous nearby homes and cabins. Its cost for future generations goes well beyond the resources used to fight it.”

Investigation into the source and origin of the Wallow Fire indicated that the fire started when an unattended and unextinguished campfire in the Bear Wallow area spread out of its fire ring and quickly spread in high winds after Caleb and David Malboeuf had gone on a hike. Upon noticing smoke from the direction of their campsite, the cousins attempted to get back to their campsite where they had left their gear. As they got closer, the smoke and flames became too intense, and they were forced to retreat.

The U.S. Attorney’s Office and U.S. Forest Service are in the process of contacting victims of the fire. Victims may also call 1-800-800-2570 or email usaaz.victimassist@usdoj.gov for further information.

A conviction for each of the offenses charged in the complaint carries a maximum penalty of six months in prison, a $5,000 fine or both. A criminal complaint is simply the method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.

The investigation in this case was conducted by the U.S. Forest Service, with assistance from the Apache County Sheriff’s Office and the Arizona Department of Public Safety. The prosecution is being handled by Assistant U.S. Attorney Patrick Schneider, District of Arizona, Flagstaff.

CASE NUMBER:      11-04234-M

Hostage Taker Sentenced to over 15 Years in federal prison

TUCSON, Ariz. – Yuris Bonilla-Guizar, of Mexico, was sentenced today to 15 years and eight months in federal prison by U.S. District Judge Frank R. Zapata. Bonilla-Guizar and his co-defendant were found guilty by a federal jury in Tucson in October 2010 of Conspiracy to Commit Hostage Taking and Harboring Illegal Aliens. The pair detained a 32-year-old male victim in a room in a trailer for four days demanding money from his family for his release.

The evidence at trial showed that on September 22, 2009, the victim and four other illegal aliens were dropped off at the defendants’ trailer by an unknown co-conspirator.

The men had been guided through the mountains in Nogales, Mexico over the U.S./Mexico border to a car that drove them to the trailer.

The defendants forced the male victim to call his family every few hours and request $2,300 for his release.

The defendants put a gun fitted with a laser sight to the victim and threatened to kill him.

After two days in the trailer, the defendants took the victim’s clothes and shoes to further prohibit him from escaping from the trailer. 

The victim was rescued after a family member called Homeland Security Investigations (HSI) and provided HSI with the phone number from which she received the ransom call.

Federal agents then used the number to track the victim to the trailer house and rescue him.

By the time the victim was rescued, he was the only remaining hostage; the other men had been released and their whereabouts are unknown.

The co-defendant, Carlos Calixtro-Bustamante, is set for sentencing at 9:00 a.m. on September 7, 2011, before Judge Zapata.

The investigation leading to the guilty verdict was conducted by agents of U.S. Immigration and Customs Enforcement, Homeland Security Investigations. The prosecution was handled by Kristen Brook, Assistant U.S. Attorney, and John Evans, Assistant U.S. Attorney, District of Arizona, Tucson.

CASE NUMBER:        CR-09-02343-TUC-FRZ

COMMENT: This is a very revealing story about what goes on with illegal entry…the illegal entrants are held hostage and ransom paid for their release.

FUGITIVE WANTED FOR MURDER EXTRADITED TO MEXICO

PHOENIX – Carlos Arguelles Valencia, 48, of Navojoa, Sonora, Mexico was ordered extradited to Mexico by U.S. Magistrate Judge Edward C. Voss on August 10, 2011, to face charges of intentional homicide and felony assault. He was held in federal custody without bond following his arrest by Deputy U.S. Marshals in Coolidge, Ariz., on June 9, 2011, prior to his extradition to Mexico.

“This successful extradition is another example of the collaborative efforts between Mexico and the United States to ensure that a violent criminal is brought to justice,” stated U.S. Attorney Dennis K. Burke. “The District of Arizona will not be a safe haven for fugitives who think they can hide to avoid prosecution.”

Based on official extradition documents provided to the United States government by Mexico through diplomatic channels, the extradition request noted that on July 1, 2006, in the town of Bacame Nuevo, Sonora, Mexico, Arguelles used a gun to shoot two brothers following a fight between the brothers and members of Arguelles’ family. One victim survived his gunshot wounds. The second victim died as a result of multiple gunshot wounds. Eyewitnesses described seeing Arguelles shoot both victims from his truck following a graduation dance held in the town of Bacame Nuevo. Arguelles fled the scene, and lived in Coolidge, Ariz., until his arrest by the U.S. Marshals Service.

The extradition was handled by Assistant U.S. Attorney Jonell L. Lucca, District of Arizona, Phoenix, on behalf of the Mexican government, with the assistance of the U.S. Marshals Service, the Department of Justice’s Office of International Affairs and the U.S. Department of State. The Coolidge Police Department provided assistance to the U.S Marshals Service in Arizona.

CASE NUMBER:            CR-11-07315M-ECV    

COMMMENT: This is one of those stories where there is probably a lot more to it…but the public will never know the whole story.

First, Mexico refuses to extradite people from their country to the US when the criminal being sought may face the death penalty here.

Mexico doesn’t like the death penalty which is maybe why they have such a high murder rate in Juarez.

Anyway, it is a good deal for a Mexican who kills someone in the US to flee to Mexico…and if he is caught in Mexico…he can only be extradited if the US agrees to waive the death penalty.

From my personal experience on the border, an extradition like this is not a unilateral event. Very likely a deal got cut whereby Mexico agreed to toss a criminal the US wanted back our way in exchange for Mr. Arguelles Valencia.

For a long time Mexico frustrated US law enforcement refusing to extradite anyone sought for a crime in the US that had fled to Mexico.

Things have obviously improved whereby Mexico is booting out criminals we want….but they escape the death penalty as a result of being sent back here to face as much justice as Mexico will allow us to have.

The missing bandits who murdered Border Patrol agent Brian Terry apparently fled to Mexico through some of that unsecured border where protecting lzards is more important that publkic safety.

The US probably knows who Terry’s murderers are.

One of these days maybe the Mexican authorities will catch them and offer them back to the US…minus the death penalty risk.

8 INDIVIDUALS ARRESTED IN CONNECTION WITH DRUG TRAFFICKING AND MONEY LAUNDERING INVESTIGATION

TUCSON, Ariz. – Eight people were arrested on August 9, 2011, in Tucson, based on an 8-count Indictment charging them with a criminal enterprise, four conspiracies, and other charges alleging possession of marijuana with intent to distribute, money laundering, and Arizona Motor Vehicle Division fraud in connection with drug trafficking.  The case was unsealed in federal court on Friday, August 12, 2011.

The investigation into a Tucson-based interstate drug smuggling organization-entitled Operation Blood Fellows-began nearly two years ago after FBI agents learned that the leader of the Nebraska chapter of the notorious “Bloods” street gang was obtaining marijuana from a source in Tucson. Marcos Cruz, as lead defendant, was charged in seven of the counts, including the continuing criminal enterprise charge. Also arrested with Cruz were Sandra Yvette Mendivil Redondo, Manuel Gortari Redondo, Julio Cesar Chiquete, Angel Alberto Rodriguez, Martin Servando Cruz, Aaron Vidrio Martinez, and Elsa Rodriguez, all of whom are related or closely associated to Marcos Cruz. An additional defendant, Sandra Cruz Noreiga, was already in custody on unrelated charges. Three other defendants remain at large.

“We are working to shut a revolving door for drugs at the U.S. – Mexico border,” said U.S. Attorney Dennis K. Burke. “Taking down and dismantling large-scale trafficking operations like this demonstrates the unyielding commitment from our office and our partners at FBI, HSI, and other federal and local law enforcement to stop drug traffickers and secure the border.”

“These arrests stem from the collaborative efforts of the FBI, Immigration and Customs Enforcement, Customs and Border Protection, Counter Narcotics Alliance, and the Pima County Sheriff’s Office,” stated FBI Special Agent in Charge James L. Turgal Jr., Phoenix Division. “When a group of individuals allegedly conspire to distribute illegal drugs, commit motor vehicle fraud, and engage in money laundering, it affects our neighborhoods and undermines the rule of law. The FBI will continue to work with our law enforcement partners and target those who engage in criminal enterprise activity.”

Each defendant, with the exception of Elsa Rodriguez, is charged with at least one count that carries a minimum term of 10 years imprisonment. Marcos Cruz, who is charged with the criminal enterprise charge, faces a term of 20 years to life imprisonment on that charge. Elsa Rodriguez is charged only with the money laundering conspiracy charge, which carries a maximum of 20 years in federal prison. Each of the counts of the indictment also bears the possibility of a fine in addition to the terms of imprisonment.

An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that established guilt beyond a reasonable doubt.

The investigation was conducted the FBI, with assistance from ICE Homeland Security Investigations, U.S. Customs and Border Protection, the Tucson Counter-Narcotics Alliance, the Pima County Sheriff’s Office, and the Arizona Motor Vehicle Division Investigations Section.  The prosecution is being handled by David P. Flannigan and Robert A. Fellrath, Assistant U.S. Attorneys, District of Arizona, Tucson.

CASE NUMBER:       CR 11-2729-TUC-DCB (JM)

MAN INDICTED FOR EXTORTING OWNER OF GUERO CANELO RESTAURANTS

TUCSON, Ariz. – Eduardo A. Sabori, 35, of Tucson, Ariz., was indicted on Wednesday for six counts of Interfering with Commerce by Threats or Violence, a federal offense, in violation of 18 U.S.C. § 1951(a).

Sabori first delivered a threatening ransom letter to the owner of the three Guero Canelo restaurants on July 9, 2011. In the letter he demanded $600,000 by midnight, Wednesday, July 13, 2011. Over the next few days, Sabori delivered several more letters with specific instructions and threats of disruption of the restaurants, physical harm to the owner, his family, and employees of his restaurants. Sabori was arrested on July 13, 2011 and remains in custody. A trial date is set for October 4, 2011.

A conviction for Interfering with Commerce by Threats or Violence carries a maximum penalty of up to 20 years in prison, a $250,000 fine, or both. In determining an actual sentence, the assigned District Court Judge will consult the U.S. Sentencing Guidelines, which provide appropriate sentencing ranges. The judge, however, is not bound by those guidelines in determining a sentence.

An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that established guilt beyond a reasonable doubt.

The investigation in this case was conducted by members of the Tucson FBI office. The prosecution is being handled by Micah Schmit, Assistant U.S. Attorney, District of Arizona, Tucson.

CASE NUMBER: CR-11-2285-JCG-GEE
RELEASE NUMBER: 2011-173 (Sabori Indictment)

# # #

strong>TWO FEDERAL PAROLEES RECEIVE OVER 7 YEARS IN PRISON FOR ILLEGAL REENTRY
TUCSON, Ariz. – Oscar Jimenez-Lopez, 37, of Zacapa, Zacapa, Guatemala, and Jose Chavez-Torres, 33, of Santiago, Durango, Mexico, were each sentenced in Tucson last week to over seven years in federal prison for illegal reentry after deportation and violating their supervised release in the U.S. District Court in Laredo, Texas. Jimenez-Lopez was sentenced to 95 months in prison by U.S. District Judge J Frederick Motz on August 1, 2011, and Chavez-Torres was sentenced to 88 months in prison by U.S. District Court Judge Ivan Lemelle on August 3, 2011. 

Jimenez-Lopez was arrested on April 21, 2009, by the U.S. Border Patrol agents in South Tucson, Arizona. He pleaded guilty on February 18, 2011, to illegal reentry after deportation, and also admitted that this arrest violated his supervised release for a prior illegal reentry case in the U.S. District Court for the Southern District of Texas (Laredo). Jimenez-Lopez was previously convicted of burglary, theft and assault in the state of Texas dating back to 1991, and illegal entry, followed by illegal reentry in U.S. District Court in Laredo, Texas, for which he had just completed a 72 month sentence four months before being arrested in South Tucson. Judge Motz sentenced Jimenez-Lopez to 77 months in prison for the new illegal reentry conviction, and imposed an additional 18 months consecutive imprisonment for the supervised release violation.

Chavez-Torres was arrested on December 7, 2010, by Customs and Border Protection Officers at the DeConcini Port of Entry in Nogales, Arizona, while trying to the enter the United States using a false document. He pleaded guilty on January 5, 2011, to attempted illegal reentry after deportation, and also admitted that this arrest violated his supervised release for a prior illegal reentry case in the U.S. District Court for the Southern District of Texas (Laredo). Chavez-Torres was previously convicted of attempted robbery, second degree in the state of California, reentry after deportation in U.S. District Court in Los Angeles, California, and reentry after deportation in U.S. District Court in Laredo, Texas where he had most recently been sentenced to 46 months imprisonment. Judge Lemelle sentenced Chavez-Torres to 80 months in prison for the new illegal reentry conviction, and imposed an additional 8 months consecutive imprisonment for the supervised release violation.

The investigations in these cases were conducted by the U.S. Border Patrol and U.S. Customs and Border Protection. The prosecutions were handled by Liza M. Granoff, Melanie McGhee, Ryan DeJoe and Brandon M. Bolling, Assistant U.S. Attorneys, District of Arizona, Tucson.

CASE NUMBER:     CR-09-0865-TUC-CKJ (Jimenez-Lopez)

COMMENTARY: Reading this story it is obvious the two guys had been caught multiple times illegally re-entering the US.

First time illegal re-rentry is a misdeamnor…but second time is a felony.

In way too many cases the second and third time offenders are plea bargained down to misdemeanor and “removed” … meaning deported.

It appears a lot of the serious criminal aliens are also multiple re-entry offenders.

Too bad we don’t have the prison space so the second time they are caught they get serious jail time instead of being recycled in and out of the system.

Juvenile Smugglers at Arizona’s Ports

CBP combating rise in adolescent narcotics smuggling 

TUCSON, Ariz. — Juveniles will face tougher criminal prosecution as U.S. Customs and Border Protection’s (CBP) Office of Field Operations works to address a rising trend of juveniles involved in narcotics smuggling. CBP efforts to disrupt smuggling organizations will hold juveniles who engage in illegal transnational activities accountable while educating young people of the dangers of engaging in smuggling activities.

The number of juveniles smuggling narcotics and contraband continues to increase,” said Director of Field Operations David Higgerson. “We are committed to ensuring that these individuals are held accountable while increasing deterrence by educating juveniles on the dangers of getting involved with criminal organizations. They are putting their futures, their lives, and their families at risk.”

In the first nine months of this fiscal year, CBP has apprehended 135 juveniles (93 U.S. citizens and 42 Mexican nationals) for attempting to smuggle narcotics through Arizona’s ports. By comparison, in fiscal year 2010, 83 juveniles were apprehended. 

Mexican national teens apprehended for smuggling can be prosecuted in the United States on a combination of immigration and narcotics smuggling charges and can be banned from the United States for life.  Juveniles who are U.S. citizens and prosecuted for narcotics smuggling will have a permanent record for a federal law violation. 

Juveniles who engage in narcotics smuggling are also in danger of retaliation from drug trafficking organizations.

CBP is working to reach out to young people in communities along our Arizona border and to educate young people on the dangers of smuggling. CBP K-9 enforcement teams visit local schools to give presentations to students and host a Citizens Academy. A Citizens Academy provides an opportunity for community members to experience the CBP inspection process.  The program consists of classroom activities and hands-on scenarios. In addition, the Tucson Field Office participates frequently in the U.S. Border Patrol’s Operation Detour outreach program.   Operation Detour is an outreach program designed to educate youth about the dangers of smuggling narcotics or other contraband across the border.

Photo 1 – Juvenile Body Carrier

Photo 2 – 16 year old Body Carrier

Photo 3 – Teen Body Carrier
 
–CBP– 

U.S. Customs and Border Protection is the unified border agency within the Department of Homeland Security charged with the management, control and protection of our nation’s borders at and between the official ports of entry.  CBP is charged with keeping terrorists and terriost weapons out of the country while enforcing hundreds of U.S. laws.

BORDER PATROL AGENTS INDICTED FOR CIVIL RIGHTS VIOLATIONS

TUCSON, Ariz. – A federal grand jury in Tucson returned a 5-count indictment today against Dario Castillo, 23, and Ramon Zuniga, 29, both of Maricopa, Ariz., for Conspiracy to Deprive Persons of Civil Rights and Civil Rights Deprivation under Color of Law. Castillo was also charged with Tampering with a Witness. The defendants will be summoned to appear for arraignment in federal court.

The indictment alleges that on November 12, 2008, Castillo and Zuniga were employed as Border Patrol Agents with the U.S. Department of Homeland Security, Customs and Border Protection, Office of Border Patrol. While on duty, the defendants allegedly forced four Mexican nationals who were illegally present in the U.S. and smuggling marijuana, to eat marijuana and to remove their shoes, socks and all outerwear, instead of arresting them. After setting fire to their personal belongings, the defendants allegedly instructed the four people to flee into the desert with no readily available shelter and resources within miles on an evening when the temperature was approximately 40 degrees Fahrenheit. The defendants’ actions are alleged to have deprived the four people of their right to be free from unreasonable search and seizure.

A conviction for Conspiracy to Deprive Persons of Civil Rights and Civil Rights Deprivation under Color of Law each carries a maximum penalty of 10 years in federal prison, a $250,000 fine or both. A conviction for Tampering with a Witness carries a maximum penalty of 20 years in federal prison, a $250,000 fine or both. In determining an actual sentence, Judge Bury will consult the U.S. Sentencing Guidelines, which provide appropriate sentencing ranges. The judge, however, is not bound by those guidelines in determining a sentence.

An indictment is simply the method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.

The investigation preceding the indictment was conducted by Department of Homeland Security, Office of the Inspector General, Tucson. The prosecution is being handled by Karen Rolley, Assistant U.S. Attorney, District of Arizona, Tucson; and Cindy Chung, Attorney, Department of Justice Civil Rights Division, Washington, D.C.
CASE NUMBER:    CR-11-02727(DCB)

TUCSON FIREARMS DEALER INDICTED AND ARRESTED ON MULTIPLE FEDERAL FIREARMS CHARGES

TUCSON, Ariz. – A federal grand jury in Tucson returned a 9-count indictment on Wednesday against Michael James Gesty, 46, of Tucson, for violations of making machineguns, making false statements on an application for a federal firearms license, making false statements during purchase of firearms, failure to keep records of firearm sales, and possession of firearms and ammunition by a drug user. Gesty was arrested by the Bureau of Alcohol, Tobacco, Firearms, and Explosives today on a warrant issued as a result of the indictment, and is currently detained pending an initial appearance scheduled tomorrow.

The indictment alleges that Gesty, a federally licensed firearms dealer, doing business as Spartan Armory and Black Wolf Weapons, instructed and assisted others in making several fully automatic machinegun rifles. The indictment also alleges that Gesty, a habitual user of marijuana, made a false statement when applying for his federal firearms license by stating that he was not a user of marijuana or any controlled substance, and unlawfully possessed several firearms and ammunition both at his residence and business while being a user of marijuana. The indictment further alleges that Gesty failed to keep required records of several firearms sales he made through his business, and that he also instructed and encouraged others to make false statements in Gesty’s business records.

A conviction for making machineguns and possession of firearms and ammunition by a drug user carries a maximum penalty of 10 years, a $250,000 fine or both. A conviction for making false statements on an application for a federal firearms license, making false statements during purchase of firearms, and failure to keep records of firearm sales carries a maximum penalty of five years, a $250,000 fine or both.  In determining an actual sentence, U.S. District Judge Collins will consult the U.S. Sentencing Guidelines, which provide appropriate sentencing ranges. The judge, however, is not bound by those guidelines in determining a sentence.

An indictment is simply the method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.

The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives.  The prosecution is being handled by Angela W. Woolridge, Assistant U.S. Attorney, District of Arizona, Tucson.

CASE NUMBER:       CR-11-2650-TUC