Category: Legal Issues

Source: United States Attorneys General 12

SALT LAKE CITY- On July 31, 2022, after a four-day trial, a federal jury in the District of Utah found James D. Brunson, 25, of Orem, guilty of possession of firearms and ammunition as a convicted felon and possession of stolen firearms.

At trial, federal prosecutors presented evidence that Brunson stole a duffle bag containing nine firearms from a residence in Orem. The duffle bag contained two shotguns; three handguns; one revolver; two .22 caliber rifles; an AR-15 rifle; and three boxes containing ammunition for the weapons. After obtaining search warrants, law enforcement officers tracked Brunson to an apartment complex in West Jordan. Prior to his arrest, officers witnessed Brunson remove a stolen 9mm handgun from his waistband and discard it in a nearby grassy area. Officers then arrested Brunson and recovered the discarded stolen handgun and six of the other stolen firearms from a nearby vehicle. Two of the firearms stolen by Brunson have not been located, and officers established that Brunson attempted to sell the firearms for cash to others prior to his arrest.

Brunson was convicted of possessing the 9mm handgun located inside of his waistband and the remaining firearms recovered from the vehicle as a convicted felon. Because the firearms were stolen, Brunson was also convicted of possessing stolen firearms.

Assistant United States Attorneys Angie Clifford and Samuel Pead tried the case against the defendant. Special Agents from the FBI and the Utah County Major Crimes Task force, including law enforcement officers from Orem Police Department and the Utah County Sheriff’s Office, conducted the investigation.

Sentencing in this matter is currently set for January 31, 2023.

Source: United States Attorneys General 12

SALT LAKE CITY – Randy Lansing, 38, of Aneth, an enrolled member of the Navajo Nation Indian Tribe, was charged by a federal grand jury in the District of Utah with second degree murder within Indian Country for unlawfully killing a member of the Navajo Nation on April 23, 2022, while on Tribal lands.

Lansing has pleaded not guilty to the charges contained in the indictment and his trial is currently scheduled for September 6, 2022.

Assistant United States Attorneys from the United States Attorney’s Office are prosecuting the case. Special Agents from the FBI, along with Patrol Officers and Investigators from the Navajo Nation, are conducting the investigation.  

An indictment is a formal accusation of criminal conduct, not evidence. Defendants are presumed innocent unless and until proven guilty.

Source: United States Attorneys General 12

WASHINGTON – A Turkish businessman was extradited from Austria to face money laundering, wire fraud and obstruction charges.

Sezgin Baran Korkmaz arrived today in Utah in the custody of the U.S. Marshals Service. Korkmaz was indicted in Salt Lake City, Utah, with laundering more than $133 million in illegal proceeds through bank accounts he controlled in Turkey and Luxembourg. According to an April 2021 superseding indictment, the proceeds relate to a scheme orchestrated in Plymouth, Utah, by Jacob Kingston, Isaiah Kingston and Levon Termendzhyan to defraud the U.S. Treasury by filing false claims for more than $1 billion in tax credits allegedly for the production and sale of biodiesel by their company, Washakie Renewable Energy LLC.

Korkmaz and his co-conspirators allegedly used the biofuel fraud proceeds to acquire luxury homes and assets, as well as businesses such as Biofarma, the Turkish airline Borajet, a yacht named the Queen Anne, a hotel in Turkey and a villa and apartment on the Bosporus river in Istanbul. In coordination with authorities in Lebanon, the U.S. Marshals Service took the Queen Anne yacht into custody in July 2021 and sold it earlier this year for $10.11 million pursuant to an October 2021 order of U.S. District Judge Jill Parrish of the U.S. District Court for the District of Utah, who is presiding over the Korkmaz case. Other assets of Korkmaz-related companies in Turkey and Europe are the subject of forfeiture claims by the United States and Turkey.  

According to the superseding indictment, Korkmaz also devised a scheme to defraud Jacob Kingston and Isaiah Kingston in early 2018 by falsely representing he could provide them with protection, through unnamed government officials, from a federal grand jury investigation and civil lawsuits. In exchange, the Kingstons sent him $6 million over several months.

Additionally, Korkmaz allegedly made false statements to federal agents in an attempt to obstruct the pending criminal trial against Kingston and Termendzhyan. Among other misstatements, Korkmaz allegedly lied about $38 million in wire transfers sent to a bank account controlled by Termendzhyan.

“The successful apprehension and extradition of Baran Korkmaz demonstrates the department’s commitment to working with our international partners to pursue, capture and return those who seek to defraud the American people,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “Thanks to our law enforcement partners and their counterparts in Austria and Lebanon, we are now able to bring Korkmaz to trial on the pending charges, and have recovered significant forfeiture proceeds.”

“We commend our partners from the Tax Division and the Department of Justice for pursuing Sezgin Baran Korkmaz on behalf of the American taxpayers and ensuring his return to Utah to face justice in U.S. District Court,” said U.S. Attorney Trina A. Higgins for the District of Utah. “We are also thankful for the efforts of our foreign partners in Lebanon and Austria, and in particular, the Austrian Bundeskriminalamt Fugitive Active Search Team, for locating Korkmaz overseas.”

In July 2019 Jacob and Isaiah Kingston both pleaded guilty to federal charges, and in 2020 both men testified at the trial of Levon Termendzhyan in Utah. The federal jury convicted Termendzhyan of all charges. The Kingstons and Termendzhyan all await sentencing. 

If convicted, Korkmaz faces a maximum penalty of 20 years in prison for each count of money laundering conspiracy, wire fraud, and obstruction of an official proceeding. A district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

IRS-Criminal Investigation, the Environmental Protection Agency Criminal Investigation Division and the Department of Defense DCIS are investigating the case.

The Justice Department’s Office of International Affairs and FBI Legal Attaché in Vienna, Austria played key roles in securing the arrest and successful extradition of Korkmaz. Assistant U.S. Attorney Cy Castle for the District of Utah, Senior Policy Advisor Darrin L. McCullough of the Criminal Division’s Money Laundering and Asset Recovery Section, and the U.S. Marshals Service provided significant assistance in the seizure of the Queen Anne yacht and its subsequent sale.

Trial Attorney Richard Rolwing and Senior Litigation Counsel John Sullivan of the Tax Division are prosecuting the case.

An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Source: United States Attorneys General 12

SALT LAKE CITY – Dino A. Rende, 19, of Los Angeles, California, and Francis J. Rende II, 29, of La Mesa, California, were both sentenced to 36 months of probation and ordered to pay $500 dollars in restitution after pleading guilty to misdemeanor conspiracy to steal or convert government property charges stemming from the theft of Centers for Disease Control (CDC) COVID-19 Vaccination Record Cards.

In the plea agreement, both defendants admitted that between March 2021 and August 2021, they conspired to defraud the Centers for Disease Control by agreeing to sell stolen CDC COVID-19 Vaccination Record Cards to others for $50 each. Both defendants also admitted that defendant Francis Rende II stole at least 20 CDC Vaccination Record Cards in March of 2021, that he sent his brother, Defendant Dino Rende, some of the stolen vaccination record cards, and that they agreed to use them and sell them to others for $50. Both brothers admitted that they had agreed to sell the CDC Vaccination Record Cards to several buyers for $50 each.

Assistant United States Attorney Todd Bouton from the United States Attorney’s Office for the District of Utah prosecuted the case. Special Agents from the Utah Department of Public Safety State Bureau of Investigation and U.S. Health and Human Services Office of Inspector General conducted the investigation.

Source: United States Attorneys General 12

SALT LAKE CITY – Nan Ma, 39, of Washington, Utah, was sentenced by a U.S. District Court Judge in St. George, Utah, to serve 33 months in federal prison for failing to file financial reports with the United States Treasury after bringing currency in excess of $10,000 back into the United States from China. Ma was also ordered to pay $2,563,337 million dollars in restitution to Sound Vision Technology (“SVT”), which is a high-end audio business in Hurricane, Utah, and ordered to pay $777,879 dollars in restitution to the IRS for outstanding federal tax obligations.

Ma was accused by federal prosecutors of using his position and authority as the officer in charge of production at SVT to solicit and obtain kickbacks for his personal benefit from Chinese companies. In exchange for the kickbacks, Ma was alleged to have awarded lucrative contracts to these companies to manufacture and sell products to his employer. Over the course of his scheme, Ma caused SVT to overpay for its products by approximately $2,563,337.09.

Ma, who is a Chinese citizen with legal permanent resident status in the U.S., took this money for himself and purchased a series of larger and larger homes, expensive vehicles, and townhomes in the St. George area. He also had significant amounts of cash tucked away in various bank accounts. These assets have been forfeited and it is anticipated that the proceeds from the forfeiture will be applied to pay restitution to SVT. 

Ma concealed the source of the funds he was getting through the alleged kickbacks by making false representations to his employer about the origin of his new-found wealth.

In the plea agreement, Ma agreed to forfeit any ill-gotten gains, and admitted that in September of 2019, he travelled to China and obtained Chinese Yuen currency worth $47,934 in U.S. Dollars and that he brought this money from China into the United States without filing a report with the United States Treasury. In so doing, Ma violated a federal law requiring that anyone who brings more than $10,000 of foreign currency into the U.S. to file a report with the U.S. Treasury.

Assistant U.S. Attorney Tyler Murray from the U.S. Attorney’s Office for the District of Utah prosecuted the case. Special agents of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and IRS-Criminal Investigation investigated the case.

Source: United States Attorneys General 12

SAN ANTONIO – A San Antonio man was sentenced in a federal court in San Antonio Monday to 188 months in prison for wire fraud and tax fraud.

According to court documents, Keith Alan Seguin, 57, was a civilian government employee authorized by the Air Force to solicit and accept orders for flight simulator technology and support, and to promote and manage related contracts.  As part of a scheme that spanned more than 10 years, Seguin conspired with others who paid him more than $2.3 million in cash and bribes for $100 million in work on Air Force projects.

Senior United States District Judge David Ezra sentenced Seguin to 36 months confinement with one year of supervised release for the charge of making a false income tax return, and 188 months confinement followed by three years of supervised release for the charge of conspiracy to commit wire fraud.  Those sentences will run concurrently. The judge also ordered Seguin to pay $736,618 in restitution to the IRS and, $38,733,720.65 in restitution to the Air Force, Army and General Services Administration and to  forfeit $2,342,095 that he received in bribe money.

“Government employees who collude with dishonest contractors to defraud the integrity of a government contracting system for personal gain will not be tolerated,” said U.S. Attorney Jaime Esparza of the Western District of Texas.  “It removes legitimate businesses from competition and harms the American taxpayer. It harms our nation’s warfighters by inflating the cost to the Government, thereby reducing the materials and training available to our service members.  This office will continue to work with our law enforcement partners to bring those offenders to justice.”

“The GSA OIG is committed to holding accountable those who abuse their government positions of trust for personal gain,” said the Honorable Carol Fortine Ochoa, Inspector General for the U.S. General Services Administration. “The outcome in this complex procurement fraud case is due to the dedicated efforts of GSA OIG special agents and our law enforcement partners.”

“These results are a testament to the commitment of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), together with our investigative partners to protect the integrity of the DoD contracting process,” said The Honorable Robert P. Storch, Inspector General, Department of Defense Office of Inspector General.  “DCIS stands vigilant to combat corruption within the DoD and will tirelessly pursue those who seek to fraudulently enrich themselves at the American taxpayer’s expense.”

“Today’s sentencing should serve as a stark reminder that our agents, and those of our partner law enforcement agencies, are relentless in their pursuit of those who choose to defraud the government,” said Special Agent in Charge Larry S. Moreland, of the Department of the Army Criminal Investigation Division’s, Major Procurement Fraud Field Office.

“The sentences reflect the results of the skilled and hard work put forth by all agencies involved,” said Special Agent in Charge Blair Holmstrand, Air Force Office of Special Investigations, Procurement Fraud Detachment 3, San Antonio, Texas.

“Keith Seguin’s decade of millions of dollars of bribes and fraudulent contracts is insidious, infecting the trust placed in our government to serve the needs of its citizens. Now, he can dwell on his crimes while sitting in prison,” said Special Agent in Charge Ramsey E. Covington of IRS Criminal Investigation’s IRS-CI Houston Field Office. “IRS-CI and our law enforcement partners are here to help restore the trust that was lost and protect the interests of this nation and its people.”

The GSA OIG; DCIS; AFOSI; Army CID; and IRS-CI investigated the case.

Assistant U.S. Attorneys William Lewis, Kelly Stephenson and Special Assistant U.S. Attorney Jay Porier prosecuted the case.

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Source: United States Attorneys General 12

SAN ANTONIO – A California man pleaded guilty Thursday to conspiracy to commit wire fraud and conspiracy to defraud the United States.

According to court documents, Hector Barreto, 61, of San Juan Capistrano, was one of two conspirators who operated the Latino Coalition Foundation, an entity organized as a charitable and tax-exempt organization, and Hispanic Business Roundtable Institute, formed as a domestic nonprofit corporation from October 2012 to September 2021.  Barreto also controlled the two organizations’ bank accounts.

Barreto and co-conspirator Miguel Gutierrez solicited donations from at least two victims for the purpose of funding nonprofit programs.  While some of the funding was used for its intended purpose, Barreto and Gutierrez also diverted between $250,000 and $550,000 of the charitable funds toward personal use credit card expenses.  The payments to the co-conspirators were not reported and from 2017 to 2019, Barreto co-conspired to falsify the IRS Form 990s for the foundation.

Barreto’s plea came four days into a jury trial that was expected to last three weeks. He’s scheduled to be sentenced on Aug. 2 and faces a maximum penalty of 20 years in prison on the wire fraud charge and five years in prison on the charge of defrauding the U.S. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

U.S. Attorney Jaime Esparza of the Western District of Texas and Acting Special Agent in Charge Rodrick J. Benton of IRS Criminal Investigation’s Houston Field Office made the announcement.

IRS-CI and FBI are investigating the case.

Assistant U.S. Attorneys Joseph Blackwell and Bill Harris are prosecuting the case.

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Source: United States Attorneys General 12

CORPUS CHRISTI, Texas – A 40-year-old Falfurrias resident has been ordered to federal prison following his conviction for being a felon in possession of a firearm, announced U.S. Attorney Alamdar S. Hamdani.

Hector Hernandez pleaded guilty Sept. 21, 2022.

Today, U.S. District Judge Drew B. Tipton ordered him to serve 66 months in federal prison. At the hearing, the court heard additional information regarding Hernandez’s history of possessing firearms in vehicles as a convicted felon which includes two incidents in the year proceeding his arrest. The court also heard details of Hernandez’s flight from police and that the firearm he possessed was previously reported stolen.

On June 22, 2022, authorities attempted a traffic stop on a vehicle Hernandez was driving. He failed to stop and continued through several neighborhood streets at a high rate of speed. Even though two tires became disabled, he continued to drive on the rims. When the vehicle finally stopped, law enforcement discovered a firearm inside the waistband of Hernandez’s pants.

There were also two passengers in the car found to be illegally present in the United States.

Hernandez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

This case is being prosecuted as part of the joint federal, state and local Project Safe Neighborhoods (PSN) Program. In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old, evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.

Homeland Security Investigations; Bureau of Alcohol, Tobacco, Firearms and Explosives and Brooks County Sheriff’s Office conducted the investigation. Assistant U.S. Attorneys Liesel Roscher prosecuted the case.

Source: United States Attorneys General 12

HOUSTON – A federal jury in Houston has found a 33-year-old former state trooper guilty for assaulting two women while on duty, announced U.S. Attorney Alamdar S. Hamdani.

The jury deliberated for three hours before returning a guilty verdict against Lee Ray Boykin Jr. following a four-day trial.

“My office is firmly committed to ensuring the civil rights of every person in the Southern District of Texas,” said U.S. Attorney Hamdani. “We rely on our police officers and federal agents every day to serve and protect. This lone officer, however, used his authority to stalk and prey on his victims for his own sexual gratification. We are pleased the jury agreed that such conduct will not be tolerated in our community.”

The jury determined Boykin had deprived two separate victims of their right to bodily integrity while acting in his capacity as a state trooper with the Texas Department of Public Safety (DPS) in that he committed aggravated sexual abuse as to one victim and kidnapping as to the other victim. He was also found guilty of two counts of destruction, alteration or falsification of records in a federal investigation.

At trial, one of the victims explained how Boykin had taken her to a secluded parking lot after being ordered out of her friend’s car following a traffic stop. Once there, Boykin falsely accused her of being a prostitute, threatened to take her to jail and forced her to perform oral sex on him. Afterwards, he told her to run while placing his hand on his gun. 

The jury heard evidence that showed Boykin’s DNA on the parking lot. The victim’s DNA was also found on Boykin’s underwear.

The second victim testified that Boykin ordered her out of her friend’s car and placed her into Boykin’s vehicle. Boykin falsely told her she had outstanding traffic warrants. He then took this victim to the same secluded parking lot, where she performed oral sex on him. Three days later, Boykin attempted to get her into his trooper car again, but she was able to escape.

The jury heard about statements Boykin had made to authorities. Regarding the sexual assault of the first victim, he said he thought he “got away with it” and knew he should not have done it. He said he “just wanted to try.”

The jury did not believe defense claims and ultimately found him guilty.

U.S. District Judge George C. Hanks Jr. presided over trial and set sentencing for April 4. At that time, Boykin faces up to life in federal prison.

Boykin has been and will remain in custody pending sentencing.

The Houston Police Department and Texas Rangers conducted the investigation with the assistance of FBI and DPS. Assistant U.S. Attorneys Sebastian A. Edwards and Kate A. Suh are prosecuting the case.

Source: United States Attorneys General 12

HOUSTON – A 30-year-old Orlando, Florida, man has admitted to conspiracy to commit wire fraud in connection with a scheme to defraud the United States of COVID related disaster loan proceeds, announced U.S. Attorney Alamdar S. Hamdani.

Dylan Kinlock entered his plea of guilty today. Co-defendant Felicia Garza, 36, Houston, pleaded guilty to the same charge Jan. 9.

Kinlock and Garza admitted they devised a scheme to solicit others to fraudulently apply for Paycheck Protection Program (PPP) loans the Coronavirus Aid, Relief and Economic Security (CARES) Act provided. The two utilized victims’ personal information to create falsified documents and applied for a PPP loan on their behalf.

The fraud scheme resulted in at least 241 fraudulent PPP loans which led to the distribution of more than $1 million Kinlock received at least $709,665 in fee income from individuals he assisted in securing the fraudulent PPP Loans.

Numerous individuals residing in the Southern District of Texas applied for PPP loans through Kinlock. They all reported that Kinlock attached fraudulent documents to their application without their knowledge, and that the applications contained false statements about the number of employees their business had. 

The false documents included fictitious Schedule C tax forms reporting profit or loss from a business, 1099-MISC forms and invoices reporting incorrect income to qualify for the loans. Kinlock solicited each of his victims to execute a contract with him in which they agreed to share a portion of their PPP loans.

After Kinlock’s clients received their PPP loan funds, Kinlock directed the client to send him his fee through various means including direct deposit into his bank account or electronic payment methods Zelle, CashApp or Venmo. Kinlock’s fee ranged from $3000 to $4,000 per loan or 20% of the amount his client received.

He used the monies to pay off his home in Florida. As part of his plea, he has agreed to forfeit that residence.

The CARES Act is a federal law enacted March 27, 2020, to provide emergency financial assistance to the millions of Americans who suffered the economic effects caused by the COVID-19 pandemic.

Senior U.S. District Judge David Hittner accepted the pleas and set sentencing for April 11. At that time, each faces up to 20 years in prison and a possible $250,000.

Kinlock was permitted to remain on bond pending sentencing. Garza also remains on bond.  

IRS – Criminal Investigation conducted the investigation. Assistant U.S. Attorney Jay Hileman is prosecuting the case.