Alabama Legislators, Staff Member, Lobbyists and Businessmen Charged in 39-Count Indictment for Roles in Wide-Ranging Conspiracy to Influence and Corrupt Votes Related to Electronic Bingo Legislation

Former Lobbyist Pleads Guilty for Her Role in Scheme

WASHINGTON—Eleven individuals, including four current Alabama state legislators, three lobbyists, two business owners and one of their employees, and an employee of the Alabama legislature have been charged for their roles in a conspiracy to offer to and to bribe legislators for their votes and influence on proposed legislation, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and Assistant Director Kevin Perkins of the FBI’s Criminal Investigative Division.

The defendants are charged in an indictment returned by a grand jury on Oct. 1, 2010, in Montgomery, Alabama, which was unsealed today. Various defendants are charged with a variety of criminal offenses, including conspiracy, federal program bribery, extortion, money laundering, honest services mail and wire fraud, obstruction of justice and making a false statement. They will make initial appearances today in U.S. District Court for the Middle District of Alabama before U.S. Magistrate Judge Terry F. Moorer.

“Today, charges were unsealed against 11 legislators, businessmen, lobbyists and associates who, together, are alleged to have formed a corrupt network whose aim was to buy and sell votes in the Alabama legislature in order to directly benefit the business interests of two defendants, Milton McGregor and Ronald Gilley,” said Assistant Attorney General Lanny A. Breuer of the Criminal Division. “The people of Alabama, like all our citizens, deserve to have representatives who act in the public’s interest, not for their own personal financial gain. Vote-buying, like the kind alleged in this indictment, corrodes the public’s faith in our democratic institutions and cannot go unpunished.”

“The allegations in today’s indictment underscore the commitment of the FBI, the Department of Justice, and the Alabama Bureau of Investigation to continue to pursue those in public office who undermine the public’s trust and engage in unethical and corrupt practices,” said Assistant Director Kevin Perkins of the FBI’s Criminal Investigative Division.

According to the indictment, Milton E. McGregor owned a controlling interest in Macon County Greyhound Park Inc., also known as Victoryland, in Macon County, Alabama, and Jefferson Country Racing Association in Jefferson County, Alabama, as well as ownership interest in other entertainment and gambling facilities in Alabama that offered or sought to offer electronic bingo gambling machines to the public. Ronald E. Gilley owned a controlling interest in the Country Crossing real estate, entertainment and gambling development in Houston County, Alabama, which also sought to offer electronic bingo gambling machines to the public.

During the 2009 and 2010 Alabama state legislative sessions, McGregor and Gilley, along with others, allegedly promoted the passage of pro-gambling legislation that would have been favorable to the business interest of individuals operating electronic bingo facilities, including themselves. From February 2009 through August 2010, McGregor, Gilley and their co-defendants allegedly conspired to commit federal program bribery by corruptly giving, offering and agreeing to give money and other things of value to Alabama state legislators and staff with the intent to influence and reward them in connection with pro-gambling legislation. The indictment alleges that Alabama state legislators, including co-defendants State Senator Larry P. Means, State Senator James E. Preuitt, State Senator Quinton T. Ross Jr., and Senator Harri Anne H. Smith corruptly solicited, demanded, accepted and agreed to accept money and things of value from their co-conspirators and others, intending to be influenced and rewarded in connection with pro-gambling legislation.

Specifically, the indictment alleges that Gilley, his primary lobbyist, Jarrod D. Massey, and State Senator Smith, sought to bribe a member of the Alabama House of Representatives during the 2009 legislative session, promising hundreds of thousands of dollars in campaign support in exchange for the legislator’s favorable vote on pro-gambling legislation. Similarly, in 2010, McGregor, Gilley and Massey allegedly sought to bribe a member of the Alabama Senate, offering the legislator $1 million, to use at the legislator’s discretion, funneled through a public relations job. According to the indictment, McGregor, along with lobbyist Robert B. Geddie Jr., also provided a $5,000 campaign contribution to a member of the Alabama House of Representatives in exchange for his vote on pro-gambling legislation during the 2010 legislative session.

The indictment also alleges that State Senator Means, who had abstained from an earlier vote on the pro-gambling legislation in 2010, solicited bribes from McGregor, Gilley, Massey and others, and, in one specific instance, sought $100,000 in return for voting in favor of the legislation. According to the indictment, McGregor, his lobbyist Thomas E. Coker, Gilley, Massey, Gilley’s employee Jarrell W. Walker Jr., and others allegedly bribed State Senator Preuitt, who had voted no in the earlier vote on the legislation, promising $2 million in campaign contributions and the use of country music stars in Preuitt’s reelection campaign, among other things of value in exchange for his vote in favor of the pro-gambling legislation. Gilley, Massey, Walker and others also allegedly discussed purchasing a large number of vehicles from Preuitt’s auto dealership in exchange for Preuitt’s vote.

State Senator Ross also is alleged to have solicited significant campaign contributions from McGregor, Gilley, Massey and others. According to the indictment, Ross allegedly pressured McGregor for campaign contributions the day before and the day of the vote on the pro-gambling legislation. In addition, State Senator Smith, who previously introduced an anti-gambling bill during the 2008 legislative session, voted in favor of the pro-gambling legislation in 2010 and allegedly lobbied other legislators to support the legislation in exchange for promises and payments of hundreds of thousands of dollars from Gilley and others. The indictment also alleges that Joseph R. Crosby, an employee of the Alabama Legislative Reference Service who received $3,000 per month from McGregor, took official action on behalf of McGregor, including making changes to the pro-gambling legislation that would benefit McGregor.

In a related case, Jennifer D. Pouncy, 34, of Montgomery, Alabama, pleaded guilty on Sept. 28, 2010, before U.S. Magistrate Judge Charles S. Coody to one count of conspiracy for her role in the scheme. According to information stated during her plea hearing, Pouncy admitted that she offered State Senator Preuitt $2 million for his vote on the pro-gambling legislation, based on orders from Massey. Pouncy also admitted that Massey and Gilley authorized her to offer $100,000 to State Senator Means in return for his support for the pro-gambling legislation. Pouncy’s guilty plea was unsealed this morning, and a sentencing date has not been set.

The defendants named in the indictment unsealed today were charged with the following crimes:

Milton E. McGregor, 71, of Montgomery, Alabama, was charged with one count of conspiracy, six counts of federal program bribery, and 11 counts of honest services mail and wire fraud;

Ronald E. Gilley, 45, of Enterprise, Alabama, was charged with one count of conspiracy, six counts of federal program bribery, 11 counts of honest services mail and wire fraud, and four counts of money laundering;

Jarrod D. Massey, 39, of Montgomery, Alabama, was charged with one count of conspiracy, five counts of federal program bribery, and 11 counts of honest services mail and wire fraud;

Thomas E. Coker, 70, of Lowndesboro, Alabama, was charged with one count of conspiracy, two counts of federal program bribery, and 11 counts of honest services mail and wire fraud;

Robert B. Geddie Jr., 60, of Montgomery, Alabama, was charged with one count of conspiracy, one count of federal program bribery, 11 counts of honest services mail and wire fraud, and one count of obstruction of justice;

Jarrell W. Walker Jr., 36, of Lanett, Alabama, was charged with one count of conspiracy, one count of federal program bribery, and 11 counts of honest services mail and wire fraud;

Harri Anne H. Smith, 48, of Slocomb, Alabama, was charged with one count of conspiracy, two counts of federal program bribery, one count of extortion, 11 counts of honest services mail and wire fraud, and four counts of money laundering;

Larry P. Means, 63, of Attalla, Alabama, was charged with one count of conspiracy, two counts of federal program bribery, two counts of attempted extortion, and 11 counts of honest services mail and wire fraud;

James E. Preuitt, 75, of Talladega, Alabama, was charged with one count of conspiracy, one count of federal program bribery, one count of attempted extortion, 11 counts of honest services mail and wire fraud, and one count of making a false statement;

Quinton T. Ross Jr., 41, of Montgomery, Alabama, was charged with one count of conspiracy, two counts of federal program bribery, two counts of attempted extortion, and 11 counts of honest services mail and wire fraud; and

Joseph R. Crosby, 61, of Montgomery, Alabama, was charged with one count of conspiracy, one count of federal program bribery, and 11 counts of honest services mail and wire fraud.

The conspiracy charge carries a maximum penalty of five years in prison and a $250,000 fine. The federal program bribery charges carry a maximum penalty of 10 years in prison and a $250,000 fine. Each count of extortion, honest services mail and wire fraud, money laundering and obstruction of justice carries a maximum penalty of 20 years in prison and a $250,000 fine. The false statement charge carries a maximum penalty of five years in prison and a $250,000 fine. The indictment also contains a notice of forfeiture as to defendants Smith and Gilley.

An indictment is merely an allegation and defendants are presumed innocent unless and until proven guilty in a court of law.

The case is being prosecuted by Senior Deputy Chief Peter J. Ainsworth and Trial Attorneys Eric G. Olshan, Barak Cohen and E. Rae Woods of the Criminal Division’s Public Integrity Section; Senior Litigation Counsel Brenda K. Morris of the Criminal Division; and Assistant U.S. Attorneys Louis V. Franklin and Steve P. Feaga of the Middle District of Alabama. The case is being supervised by the Criminal Division’s Public Integrity Section, and is being investigated by the FBI’s Mobile, Alabama, Field Office.

Former notary public sentenced to prison for bribing county clerks

MEMPHIS, Tenn. - Amanda Cruz, 35, a former notary public, was sentenced Tuesday for her role in bribing two county clerks to obtain license tags and registrations for illegal aliens, following an investigation led by U.S. Immigration and Customs Enforcement's (ICE) Office of Homeland Security Investigations (HSI).

U.S. District Judge Jon Phipps McCalla sentenced Cruz to 30 months incarceration and two years of supervised release. The court also ordered Cruz to formally resign as a notary public and turn her stamps and seals over to the U.S. District Court Clerk's Office within seven days.

On July 21, 2009 Cruz pleaded guilty to conspiracy to commit mail fraud and conspiracy to harbor illegal aliens. Cruz admitted she operated a business that prepared false and fraudulent documents to help illegal aliens obtain license tags for motor vehicles. This allowed the aliens to avoid being stopped for traffic violations or arrested and having their status in the United States questioned. Cruz also admitted that to further the scheme she regularly paid bribes to two different employees of the Shelby County Clerk's Office to ignore the obvious defects in the documents and to ignore the clerk's office rules and regulations in the issuance of the license tags.

"The transportation and harboring of illegal aliens are serious crimes that we will not tolerate," said Raymond R. Parmer, Jr., special agent in charge of ICE HSI in New Orleans. "ICE HSI devotes significant resources to identify and bring to justice the criminals involved in transporting and harboring illegal aliens and we are committed to shutting down all vulnerabilities in our immigration system."

"The successful outcome of this investigation is another example of local and federal law enforcement working together," said Amy S. Hess, special agent in charge of the Memphis Division of the FBI. "Those who abuse legitimate government services for personal gain will be held accountable for their crimes."

Edward L. Stanton, III, U.S. Attorney for the Western District of Tennessee stated, "The conspiracy to bribe public officials to obtain false documents is a serious matter that has a corrosive effect on the operation of government and the public's trust in their government. Because of this the U.S. Attorney's Office will prosecute these crimes to the fullest extent of the law."

"Public corruption drains our resources and destroys the confidence of our citizens. The Memphis Police Department will continue to share information with all agencies - local, state and federal - in order to root out every source of public corruption. This individual not only preyed on vulnerable human beings seeking refuge in our community. She bribed government employees in order to entice them into supporting her scheme. Those who attempt to entice and bribe public servants should be held to the same level of accountability as those employees who make the decision to betray the public trust," said Larry A. Godwin, director of the Memphis Police Department.

U.S. Attorney Stanton commended ICE Special Agent Scott Partin and FBI Special Agent Robert Reich for the excellent and dedicated work on a complicated and sensitive investigation.

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FBI Announces Arrest in Fatal Armored Vehicle Robbery and Increase in Reward

John V. Gillies, the Special Agent in Charge (SAC) of the FBI Miami Division has announced an arrest in the fatal armored vehicle robbery on October 1, 2010.

Before announcing the name of the suspect, SAC Gillies said, "We want to express our sympathies to the victim’s family, friends and co-workers. I want them to know and I want the public to know we are taking this crime very seriously. Law enforcement has been working around the clock to bring the criminals to justice."

A task force of more than two dozen agents, officers and analysts are investigating this matter, to include, the FBI, Miami-Dade Police, Broward Sheriff’s Office, Miami Police, Miami Beach Police, Doral Police, Hialeah Police, Miramar Police and Miami Gardens Police.

The FBI believes at least four people were involved in the armored car robbery on Friday, October 1, 2010, in front of the Bank of America at

7950 Miramar Parkway, Miramar, Florida

. During the hold-up, the robbers shot and killed one of the guards.

Because the Miramar Police responded so quickly, they apprehended 31-year-old Nathaniel Moss from Miami Gardens, Florida. Moss was apprehended near the scene. The FBI has filed a criminal complaint with a Federal Magistrate charging Moss with conspiracy, robbery, use of a firearm during a crime of violence and possession of a firearm in furtherance of a crime that resulted in the death of a person.

The FBI needs the public's help in locating two persons of interest who may know information that could help solve this crime. Investigators would like to speak with 37-year-old Terrance LaCliffe Brown from Miami Gardens, Florida. He was last seen driving a beige Infinity FX 35.

The second person of interest has not been identified but is described as a black male, approximately 5’10”, thin build, and was last seen wearing a green University of Miami hoodie and shorts.

Every dollar that was stolen has been fully recovered. The amount of money will not be disclosed.

A reward has been increased to $100,000. On Friday, the armored vehicle company offered a reward of up to $75,000 for information leading to arrests within 10 days of the crime. Today, the FBI has authorized another reward of up to $25,000 for information leading to arrests. There is no time limit for the FBI reward.

If you have information about the armored vehicle robbery, the suspect or the persons of interest, please call the FBI at 305-944-9101.

SAC Gillies reminds the public that “the remaining suspects should be considered armed and very, very dangerous."

All suspects are considered innocent.

Red Lake Man Pleads Guilty to Sexually Abusing a Boy

A 22-year-old Red Lake man pleaded guilty earlier today in federal court in Minneapolis to sexually abusing a boy on the Red Lake Indian Reservation last year. Appearing before United States District Court Chief Judge Michael J. Davis, Eagle Wind Lajeunesse pleaded guilty to one count of abusive sexual contact. He was indicted on November 4, 2009.

In his plea agreement, Lajeunesse admitted that between September 1, 2008, and March 16, 2009, he knowingly engaged in sexual contact with a male who had not attained the age of 12. According to a law enforcement affidavit filed in the case, Red Lake Family and Children Services contacted the Federal Bureau of Investigation on August 30, 2009, to report that the boy was being sexually abused.

For his crime, Lajeunesse faces a potential maximum penalty of life in federal prison. Judge Davis will determine his sentence at a future hearing, yet to be scheduled. It is being prosecuted by Assistant U.S. Attorney Clifford B. Wardlaw.

Because the Red Lake Indian Reservation is a federal-jurisdiction reservation, some of the crimes that occur there are investigated by the FBI in conjunction with the Red Lake Tribal Police Department. Those cases are prosecuted by the United States Attorney’s Office.

Owner of Sherman Oaks Investment Company Indicted on Federal Fraud Charges in $228 Million Ponzi Scheme

LOS ANGELES—The owner of a Sherman Oaks company that promised investors healthy returns with claims of a successful business based on the rehabilitation of “scratch and dent” real estate was indicted today on federal fraud charges that allege he operated a Ponzi scheme that took in nearly a quarter billion dollars.

Bruce Fred Friedman, 60, the operator of Diversified Lending Group, Inc. (DLG), was named in an indictment returned today by a federal grand jury. The indictment charges Friedman with 15 counts of mail fraud, one count of wire fraud and seven counts of money laundering in the scheme that collected approximately $228 million.

The indictment and a related criminal complaint filed earlier this month allege that Friedman obtained funds from investors who were falsely told that DLG had a healthy stream of income from thousands of rental properties across the United States that DLG had purchased, rehabilitated and rented out. Through personal solicitations and outside marketers, Friedman offered “secured investment notes” that promised annual returns of either 9 percent or 12 percent compounded monthly.

The indictment alleges, however, that the claims made by Friedman were fictitious. Friedman allegedly spent a substantial amount of investors funds on other business ventures, investments, and other purposes, such as a charitable foundation and companies affiliated with his family members and friends.

In an affidavit in support of a criminal complaint filed in this case on September 3, a special agent with the FBI estimated that Friedman’s victims have suffered losses of approximately $191 million.

Friedman was arrested on September 13 outside a hotel where he was staying in Cannes, France. Friedman is in custody in France pending extradition proceedings.

An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty.

If he is convicted of the 23 charges contained in the indictment, Friedman would face a statutory maximum sentence of 390 years in federal prison.

This case was investigated by the Federal Bureau of Investigation and IRS - Criminal Investigation. The FBI’s legal attaché in Paris and the French Police Judiciare have assisted in this matter.

Valley Businessmen Sentenced for Role in Ponzi Scheme

Man Ordered to Pay $2,889,492 in Restitution for Multi-Million-Dollar Scheme

PHOENIX—Lawrence William Dunning, 78, of Highland Beach, Florida, was sentenced Wednesday to 24 months in federal prison and ordered to pay restitution of $2,889,492 followed by three years of supervised release for mail fraud. Additionally, three individuals have been sentenced for their roles in the multi-million-dollar Ponzi scheme or other related offenses, and two more individuals await sentencing. Each of the individuals had previously pleaded to varying charges including mail fraud, false certification of checks, and misprision of a felony.

Phillip Eugene Vigarino, 34, of Anthem, Arizona was sentenced to 60 days in federal prison, to be followed by three years of supervised release for misprision of a felony.

James Marshall Boyce, 62 of Scottsdale, Arizona was sentenced to three years' probation for false certification of checks.

Robert Kenneth Rehm, 63, of Scottsdale, Arizona was sentenced to three years' probation for misprision of a felony.

Co-defendants Eric Jon Strasser and Paul Jeffrey Meka are scheduled to be sentenced in the near future.

“Dunning and his co-defendants are paying a price for enriching themselves at the expense of their investors who fully entrusted them with their money,” said Dennis Burke, U.S. Attorney for the District of Arizona. “Our continued collaboration with the Postal Service, the IRS, and the FBI is proving that together we are committed and succeeding in holding people accountable for such schemes.”

The Arizona Corporation Commission had previously obtained civil judgments against Dunning and Vigarino for American National Mortgage Partners' ("ANMP") failure, including a $22,000,000 judgment against Dunning. Boyce and Rehm also had previously settled civil claims against them.

The scheme was implemented in the following manner: Dunning established Creative Financial Funding ("CFF") to solicit investors to fund "hard money lending." Dunning indicated he hired Phillip Vigarino and Paul Meka as loan officers for CFF. He later assisted Frank Caspare in forming ANMP, but when Frank Caspare's health made him unable to control the daily business of ANMP, Dunning continued to assist with daily operations. The nature of CFF's, and later ANMP's business was making and negotiating loans secured by Arizona real property.

These businesses would identify individuals who sought a loan but were unable to obtain a conventional loan due to credit problems. These borrowers were willing to pay an interest rate as high as 36 percent and ANMP would locate investors to fund the loans. The investors' funds would be pooled into one specific loan package and then member-managed limited liability companies ("LLCs") would be formed and investors would be members of the LLC. The investors' funds would be secured by liens on the borrowers' Arizona real property through an "Illinois Land Trust." ANMP would then create an "Illinois Land Trust," whereby the borrower transferred his personal interest in the property to a trust. ANMP would become the trustee of the trust and investors became the beneficiaries of the trust.

If the borrower made scheduled payments on the loan funded by the investor, ANMP would make monthly payments to the investor. If the borrower defaulted on the loan funded by the investor, ANMP would foreclose on the borrower's real estate, sell the real estate, and refund the investor's funds. During the course of ANMP's operations, when borrowers defaulted on their loans, ANMP was unable to repay its investors. As a consequence, ANMP paid new investors with old investors' funds to create the illusion of performing loans. Additionally, in an attempt to salvage ANMP's operations, ANMP paid its overhead expenses with new ANMP investors' funds. The Arizona Corporation Commission issued a Temporary Cease and Desist Order to CFF and ANMP.

The investigation was conducted by special agents of the Internal Revenue Service's Criminal Investigation Division, U.S. Postal Inspection Service, and the Federal Bureau of Investigation. The prosecution is being handled by Assistant U.S. Attorney John R. Lopez IV, District of Arizona, Phoenix.

CASE NUMBER: CR-07-01390-PHX-MHM

RELEASE NUMBER: 2010-216(Dunning et al.)

Presidential Proclamation Regarding Fire Prevention Week

THE WHITE HOUSE

Office of the Press Secretary

FIRE PREVENTION WEEK, 2010

BY THE PRESIDENT OF THE UNITED STATES OF AMERICA

A PROCLAMATION

During Fire Prevention Week, we reaffirm the importance of fire safety and awareness, and we pay tribute to our firefighters, volunteers, and first responders who put themselves in harm's way to protect our lives, homes, and communities every day.

Each of us can take precautions in our homes to safeguard our loved ones from the hazards of fire. Smoke alarms are vital detection devices, and properly installing and maintaining them in the home can help keep our families safe. Residential sprinkler systems can give individuals extra time to evacuate a home safely in case of an emergency as well. This year's theme, "Smoke Alarms: A sound you can live with," encourages all Americans to test alarms at least once a month, and to check their batteries and locations.

Parents and caregivers should also take the time to discuss and practice emergency plans with children in the event of a fire. Additionally, around the home, it is important to ensure electronic appliances, machines, and heating units are plugged in and operated properly. With responsible use of fire indoors and outdoors -- from safely disposing of matches and cigarettes to increased attention when cooking on grills or building a campfire -- we can avoid untold numbers of emergencies, injuries, and lives lost to fire and its consequences.

Fire Prevention Week also calls our attention to the lifesaving work our firefighters perform in communities across America. These courageous professionals are the first ones on the scene during an emergency, fearlessly charging up smoke-filled staircases as people rush down them. Some have paid the ultimate sacrifice in the line of duty. Our Nation is profoundly grateful for the dedication and tireless efforts of our firefighters and first responders in their selfless service to our communities.

I encourage all Americans to take preventative measures during Fire Prevention Week to protect themselves, their families, and their communities from the hazards of fire and to express gratitude to our firefighters and first responders.  Together, we can ensure the resilience and safety of our neighborhoods, and aid the brave men and women who risk their lives every day to protect us.

NOW, THEREFORE, I, BARACK OBAMA, President of the United States of America, by virtue of the authority vested in me by the Constitution and the laws of the United States, do hereby proclaim October 3 through October 9, 2010, as Fire Prevention Week. On Sunday, October 3, 2010, in accordance with Public Law 107-51, the flag of the United States will be flown at half-staff on all Federal office buildings in honor of the National Fallen Firefighters Memorial Service. I call on all Americans to participate in this observance with appropriate programs and activities and by renewing their efforts to prevent fires and their tragic consequences.

IN WITNESS WHEREOF, I have hereunto set my hand this first day of October, in the year of our Lord two thousand ten, and of the Independence of the United States of America the two hundred and thirty-fifth.

BARACK OBAMA

12 more indicted in large-scale Cambodian marriage fraud

35 indictments to date in scheme involving U.S. citizens who married Cambodians for cash

LOUISVILLE, Ky. - Twelve additional defendants, who allegedly arranged or participated in phony marriages to Cambodian nationals to evade immigration laws, were charged in a second superseding indictment that was unsealed Wednesday in federal court. The charges resulted from an investigation by U.S. Immigration and Customs Enforcement's (ICE) Office of Homeland Security Investigations (HSI).

A federal grand jury in Louisville returned a second superseding indictment on Sept. 29, adding 12 new defendants who allegedly engaged in a conspiracy that recruited U.S. citizens to marry Cambodian nationals in exchange for cash, free vacations to Cambodia, and sex.

The following 12 new defendants were named in the second superseding indictment:

Kong Cheng Ty, 43, of Danville, Ky.;

Larry Thomas Hibbard, 33, of Louisville, Ky.;

Laney Jo Marie Mudd, 33, of Louisville, Ky.;

Phechhou Eng, 30, address unknown;

Pou Sreng, aka Sandy Sreng, 32, of Jeffersonville, Ind.;

Ryan Keith Ward, 29, of Shepherdsville, Ky.;

Sreymom Chuon, 29, address unknown;

Michael Joseph Marino, 47, of Bardstown, Ky.;

John Leo Singhiser, 48, of Louisville, Ky.;

Sokbay Lim, 45, of Dover, Ky.;

Chhenghy Heng, 26, of New Albany, Ind.; and

Chandamaly Koy Chea, aka Molly, 38, of Louisville, Ky.

They join the following 13 defendants previously indicted in a superseding indictment in April:

Michael Chanthou Chin, 39, of New Albany, Ind.;

Patrick Theng Chea, 45, of Louisville, Ky.;

Steve Sovan Uy, aka Sovan Oum, 43, of Nashville, Tenn.;

Phearoun Peter Em, aka Sophea Lim, 22, of Sellersburg, Ind.;

Monirath Em, aka Angel, 32, or New Albany, Ind.;

Asaad Abdulrazak Alkinani, 39, of Louisville, Ky.;

Borin Chum, 29, or New Albany, Ind.;

Sangha Srey, 49, of New Albany, Ind.;

Huong Sreng, 35, location unknown;

Yota Em, 24, of New Albany, Ind.;

Sona Ngov, 29, of Corydon, Ind.;

Nary Bun, 28, of Louisville, Ky.; and

Sokunthy So, 25, of Winchester, Ky.

Each defendant was charged with conspiracy to commit marriage fraud. Many defendants were also charged with additional counts of marriage and visa fraud. Seven individuals are alleged to be organizers of the conspiracy.

The following 11 defendants who were previously indicted in the April superseding indictment have pleaded guilty:

Monirath Vuthea Niev, aka T, 57, of Prospect, Ky.;

Sharon Lee Spalding, 44, of Lexington, Ky.;

Jeremy Dickson Carmickle, 38, of Louisville, Ky.;

Christopher William McAlister, 52, of Louisville, Ky.;

Christopher William McAlister, 25, of Georgetown, Ky.;

Donald McKinley Martin, 27, of Georgetown, Ky.;

Stephanie Jean Murphy, 31, of Louisville, Ky.;

Chok Chan, 49, of Mr. Sterling, Ky.; and

Sina Ros, 38, of Houston, Texas.

The second superseding indictment alleges that between Jan.1, 1999 and April 7, 2010, the defendants engaged in a conspiracy to obtain lawful permanent residence in the United States for Cambodian nationals by way of fraudulent marriages and engagements.

Participating U.S. citizens were offered all-expense paid "vacations" to Cambodia that included airfare, lodging, meals, drinks, entertainment, and sexual acts from Cambodian prostitutes. Participating U.S. citizens were also paid thousands of dollars in exchange for participating in the scheme and assisting Cambodian nationals with obtaining lawful permanent residence in the United States. Once in Cambodia, the U.S. citizens participated in fraudulent engagement and marriage ceremonies, and took staged photographs to provide documentary support to U.S. Citizenship and Immigration Services (USCIS). The conspiracy included more than 15 marriages and attempted marriages.

Foreign nationals who marry U.S. citizens can become U.S. permanent residents - and ultimately obtain U.S. citizenship - but not if the marriage is identified as a sham to evade immigration laws.

"These indictments serve as a reminder that America's legal immigration system is not for sale," said Gary Hartwig, special agent in charge of ICE HSI in Chicago. "HSI will not tolerate the exploitation of our country's immigration system. We will work aggressively to investigate and bring to justice those who seek to compromise the integrity of that system for personal profit or to evade immigration laws."

In the event of a conviction for all counts, the maximum potential penalties are 75 years' imprisonment, a $2,750,000 fine, and supervised release for a period of 33 years. Assistant U.S. Attorney Ann Claire Phillips, Western District of Kentucky, is prosecuting the case.

The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

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3 Colombian nationals plead guilty to alien smuggling and visa fraud charges

WASHINGTON - Three Colombian nationals pleaded guilty today to conspiracy to smuggle aliens for profit and conspiracy to commit visa fraud in connection with their roles in an extensive and sophisticated visa fraud scheme through which they fraudulently procured visas from the U.S. Embassy in Bogotá, Colombia. This plea follows an investigation by U.S. Immigration and Customs Enforcement (ICE) along with Diplomatic Security Service and the U.S. State Department.

Heliber Toro Mejia, 52; Humberto Toro Mejia, 60; and Luz Elena Acuna Rios, 53; all of Bogotá, pleaded guilty in Washington, D.C., before U.S. District Judge Ellen S. Huvelle. At sentencing, scheduled for Dec. 6, 2010, each defendant faces a maximum sentence of 10 years in prison for conspiracy to commit alien smuggling for profit and five years in prison for conspiracy to commit visa fraud. Each defendant is also subject to a maximum fine of $250,000 for each charge.

The defendants were charged in a three-count indictment returned by a federal grand jury in the District of Columbia on Feb. 4, 2009. The defendants were arrested on June 2, 2009, by Colombian authorities in Bogotá on provisional arrest warrants in response to a U.S. government request for their arrest and were subsequently extradited to the United States for prosecution.

Heliber Toro Mejia, Humberto Toro Mejia and Rios admitted that they operated an extensive and sophisticated visa fraud ring that profited by assisting otherwise inadmissible Colombian nationals in fraudulently procuring visas from the U.S. Embassy in Bogotá. According to plea documents, to support the visa applications of alien applicants, the defendants and other conspirators created fictitious backgrounds for the aliens and fraudulent supporting documentation, including paperwork that appeared to be official Colombian government-issued documents such as tax filings and birth and marriage certificates.

According to plea documents, the conspirators coached the aliens on how to pass the visa interview at the U.S. Embassy in Bogotá by answering questions untruthfully as well as how to lie to U.S. immigration authorities about their backgrounds when entering the United States. The defendants admitted to assisting more than 100 aliens in fraudulently obtaining or attempting to fraudulently obtain a U.S. visa during the course of the conspiracy. According to plea documents, many of those aliens who did obtain a fraudulently-procured visa used that visa to enter the United States.

As part of the plea agreements, the defendants also agreed to forfeit assets related to the alien smuggling and visa fraud scheme, including an office in Bogotá and $234,533 in proceeds. The defendants agreed to fully assist the governments of the United States and the Republic of Colombia in the identification and location of all directly forfeitable property and substitute assets and to pass clear title to directly forfeitable property and substitute assets to the United States. If requested by the U.S. government, the defendants also agreed to voluntarily forfeit to the government of Colombia any and all assets which are subject to forfeiture as the result of their criminal activities.

The guilty pleas are the result of "Operation Coffee Country," a coordinated international investigation by the ICE Homeland Security Investigations (HSI) Attaché's Office in Bogotá and the Diplomatic Security Service - Regional Security Office in Bogotá. The ICE HSI special agent in charge in Washington, D.C., and the Diplomatic Security Service - Criminal Investigations Division provided substantial assistance.

The government of Colombia, including the Colombian Department of Administrative Security and Colombian prosecutors, provided significant assistance and support during the investigation, arrest and extradition of the defendants. The U.S. Department of Justice's Office of International Affairs and the U.S. Embassy in Bogotá worked with their counterparts in Colombia to effect the extradition.

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Non-profit's founder convicted in Philadelphia in sex tourism case

PHILADEPLHIA - Kenneth Schneider, 45, was convicted by a jury on Oct. 1 of traveling for the purpose of engaging in sex with a minor, and transporting a person for criminal sexual conduct. Schneider, founder and president of the Apogee Foundation, was arrested March 27, 2010 in Larnaca, Cyprus after special agents from U.S. Immigration and Customs Enforcement's (ICE) Office of Homeland Security Investigations (HSI) located him there.

In the summer of 1998, Schneider traveled to Moscow where he told two ballet instructors at the Moscow State Academy of Choreography that he was willing to provide "assistance" to students attending the academy. The instructors identified a 12-year-old student whose family could no longer afford to pay his board. Schneider convinced the boy's parents to allow him to live with Schneider in an apartment a few blocks from the school. From the fall of 1998 until 2004, Schneider engaged in a sexual relationship with the victim, bringing him to Philadelphia for a summer program in 2001, and then returning to Moscow with the victim in August 2001 to continue the sexual relationship.

Sentencing is scheduled for Jan. 12, 2011. The defendant faces a maximum possible sentence of 15 years for count one and 10 years for count two.

The case was investigated by ICE HSI and the FBI, with assistance from the Investigative Committee of the General Procuracy of the Russian Federation, the ICE's attaché in Moscow and Interpol. It is being prosecuted by Assistant U.S. Attorneys Michelle Morgan-Kelly and Vineet Gauri.

The investigation that led to this case was part of Operation Predator, a nationwide ICE initiative to identify, investigate and arrest those who prey on children, including human traffickers, international sex tourists, Internet pornographers, and foreign-national predators whose crimes make them deportable.

Launched in July 2003, ICE agents have arrested more than 12,800 individuals through Operation Predator. ICE encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-347-2423. 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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3 Colombian nationals plead guilty to alien smuggling and visa fraud charges

WASHINGTON - Three Colombian nationals pleaded guilty today to conspiracy to smuggle aliens for profit and conspiracy to commit visa fraud in connection with their roles in an extensive and sophisticated visa fraud scheme through which they fraudulently procured visas from the U.S. Embassy in Bogotá, Colombia. This plea follows an investigation by U.S. Immigration and Customs Enforcement (ICE) along with Diplomatic Security Service and the U.S. State Department.

Heliber Toro Mejia, 52; Humberto Toro Mejia, 60; and Luz Elena Acuna Rios, 53; all of Bogotá, pleaded guilty in Washington, D.C., before U.S. District Judge Ellen S. Huvelle. At sentencing, scheduled for Dec. 6, 2010, each defendant faces a maximum sentence of 10 years in prison for conspiracy to commit alien smuggling for profit and five years in prison for conspiracy to commit visa fraud. Each defendant is also subject to a maximum fine of $250,000 for each charge.

The defendants were charged in a three-count indictment returned by a federal grand jury in the District of Columbia on Feb. 4, 2009. The defendants were arrested on June 2, 2009, by Colombian authorities in Bogotá on provisional arrest warrants in response to a U.S. government request for their arrest and were subsequently extradited to the United States for prosecution.

Heliber Toro Mejia, Humberto Toro Mejia and Rios admitted that they operated an extensive and sophisticated visa fraud ring that profited by assisting otherwise inadmissible Colombian nationals in fraudulently procuring visas from the U.S. Embassy in Bogotá. According to plea documents, to support the visa applications of alien applicants, the defendants and other conspirators created fictitious backgrounds for the aliens and fraudulent supporting documentation, including paperwork that appeared to be official Colombian government-issued documents such as tax filings and birth and marriage certificates.

According to plea documents, the conspirators coached the aliens on how to pass the visa interview at the U.S. Embassy in Bogotá by answering questions untruthfully as well as how to lie to U.S. immigration authorities about their backgrounds when entering the United States. The defendants admitted to assisting more than 100 aliens in fraudulently obtaining or attempting to fraudulently obtain a U.S. visa during the course of the conspiracy. According to plea documents, many of those aliens who did obtain a fraudulently-procured visa used that visa to enter the United States.

As part of the plea agreements, the defendants also agreed to forfeit assets related to the alien smuggling and visa fraud scheme, including an office in Bogotá and $234,533 in proceeds. The defendants agreed to fully assist the governments of the United States and the Republic of Colombia in the identification and location of all directly forfeitable property and substitute assets and to pass clear title to directly forfeitable property and substitute assets to the United States. If requested by the U.S. government, the defendants also agreed to voluntarily forfeit to the government of Colombia any and all assets which are subject to forfeiture as the result of their criminal activities.

The guilty pleas are the result of "Operation Coffee Country," a coordinated international investigation by the ICE Homeland Security Investigations (HSI) Attaché's Office in Bogotá and the Diplomatic Security Service - Regional Security Office in Bogotá. The ICE HSI special agent in charge in Washington, D.C., and the Diplomatic Security Service - Criminal Investigations Division provided substantial assistance.

The government of Colombia, including the Colombian Department of Administrative Security and Colombian prosecutors, provided significant assistance and support during the investigation, arrest and extradition of the defendants. The U.S. Department of Justice's Office of International Affairs and the U.S. Embassy in Bogotá worked with their counterparts in Colombia to effect the extradition.

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Illegal alien sentenced 57 months for repeated illegal reentries and crimes of violence

ALEXANDRIA, Va. - Miguel Angel Monjaras-Castro, 37, a native of El Salvador, was sentenced today to 57 months in prison for illegal reentry after deportation for commission of an aggravated felony following an investigation by U.S. Immigration and Customs Enforcement (ICE).

U.S. Attorney for the Eastern District of Virginia Neil H. MacBride and Field Office Director for ICE's Office of Enforcement and Removal Operations (ERO) in Washington, D.C., Henry M. Lucero made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Monjaras-Castro pled guilty on July 15, 2010.

On April 24, 2009, Monjaras-Castro was located by ICE ERO officers at the Loudoun County Adult Detention Center, as part of ERO's Criminal Alien Program. According to court documents, Monjaras-Castro claimed to be a lawful permanent resident who arrived in the United States on a valid visa. However, Monjaras-Castro had been removed on Dec. 8, 1997 and again on April 18, 2008.

Monjaras-Castro's second removal was subsequent to two felony convictions for crimes of violence. On Jan. 16, 1997, Monjaras-Castro was convicted in Dallas County, Texas, of raping his estranged wife at knifepoint. He was sentenced to 10 years in prison, with all 10 years probated. On Feb. 10, 1997, Monjaras-Castro was convicted of in Kaufman County, Texas, for twice striking a victim on the neck with the barrel of a loaded handgun and firing shots near the victim's vehicle. He was sentenced to three years' probation.

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Bishopville Man Pleads Guilty in Drug Conspiracy

COLUMBIA, SC—United States Attorney William N. Nettles stated that Anthony Christopher Peeples (39), from Bishopville, pled guilty in federal court today in Columbia, South Carolina.

Anthony Christopher Peeples pled guilty to conspiracy to possess with intent to distribute 500 grams or more of powder cocaine and five grams or more of crack cocaine, a violation of Title 21, United States Code, Section 846. As a result of his plea on this charge and his one prior felony drug conviction, Peeples is facing a mandatory minimum term of 10 years to a maximum term of life imprisonment, no probation, no parole, a fine of $4,000,000, a term of supervised release of at least eight years, plus a special assessment of $100.

United States District Judge Cameron Currie of Columbia accepted the plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office. Evidence presented at the change of plea hearing established that Peeples was a member of a conspiracy to distribute cocaine and crack cocaine that began at least in 2004 and continued up through May of 2010 when federal agents arrested several codefendants on criminal complaints.

The case was investigated by agents of the Federal Bureau of Investigation (FBI) and the State Law Enforcement Division (SLED). Assistant United States Attorneys J.D. Rowell, Mark Moore, and Debbie Barbier of the U.S. Attorneys Office are handling the prosecution of this case.

FBI New York Metro Chapter InfraGard Meeting and Health Care Symposium

Today, the FBI New York’s InfraGard Metro Chapter kicked off a full day Health Care Information Technology and Security Symposium at Lenox Hill Hospital. The conference was designed to help physicians, health care administrators, and information technology leaders understand emerging issues and threats. Some of the issues covered were health care fraud, health care information integration and security, and social media and health care.

Assistant Director in Charge (ADIC) Janice K. Fedarcyk of the FBI’s New York Field Office served as the keynote speaker and opened the conference this morning. “Our partnerships with you have allowed the InfraGard coordinators to refer multiple tips received from InfraGard members to many divisions within the FBI. All health care programs are subject to fraud, however, Medicare and Medicaid programs are the most visible. Estimates of fraudulent billings to health care programs, both public and private, are estimated between 3 and 10 percent of total health care expenditures. These types of illegal behavior are challenging to investigate and we need your help and assistance,” she told attendees.

From left to right: Joseph Concannon, President and CEO of the New York Metro InfraGard Member Alliance; Janice K. Fedarcyk, Assistant Director in Charge of the FBI's New York Field Office; John J. Tierney, Vice President of the New York Metro InfraGard Member Alliance; Supervisory Special Agent Michael Rosanova, Health Care Fraud; and Phil Froehlich, Secretary of the New York Metro InfraGard Member Alliance.

Joseph Concannon, president of the New York Metro InfraGard Alliance said, “This was a great opportunity to interact with leaders in the health care information technology field and helped to establish new relationships that will continue to improve our InfraGard chapter and keep New Yorkers safe.”

InfraGard is an association of businesses, academic institutions, state and local law enforcement agencies, the FBI, and other participants dedicated to sharing information and intelligence to prevent hostile acts against the United States. It is a government and private sector alliance with the goal of protecting the nation’s critical infrastructure. InfraGard and the FBI have developed a relationship of trust and credibility in the exchange of information concerning various terrorism, intelligence, criminal, and security matters. InfraGard began in the Cleveland Field Office in 1996.

If you are interested in joining InfraGard, you can visit their website at www.nym-infragard.us.

United States Sues Marine Engine Manufacturer and Shipbuilder Under Clean Air Act

WASHINGTON – The United States filed a civil complaint today against Coltec Industries Inc., a subsidiary of EnPro Industries Inc., and the National Steel and Shipbuilding Company (NASSCO), a subsidiary of General Dynamics Corp. The complaint was filed Thursday in the U.S. District Court for the District of Columbia under the Clean Air Act and the marine diesel engine rules issued by the Environmental Protection Agency (EPA), the Justice Department and EPA announced.

The complaint, the first federal court action brought by the United States under the marine diesel engine rules, alleges that Coltec’s Fairbanks Morse Engine Division (FME) violated the Act by manufacturing and selling 32 marine engines that were not covered by an EPA-issued certificate of conformity and that NASSCO violated the Act by installing those engines in ships it built and sold in the United States. The complaint further alleges that the 32 uncertified FME engines, plus eight more FME sold to NASSCO, had missing or defective emissions-compliance labels required by EPA’s rules.

The complaint further alleges that NASSCO also violated the Act by manufacturing and selling ships containing several additional engines lacking EPA-issued certificates of conformity, including four propulsion engines manufactured by MAN B&W Diesel A.G., a German company, and installed in an oil tanker, the BP Alaskan Adventurer, and two emergency generator engines installed in other ships that NASSCO sold in the United States.

The Clean Air Act prohibits marine diesel engines (also called compression-ignition engines) from being manufactured or sold in the U.S. unless covered by a "certificate of conformity" indicating that the engine meets applicable emission standards.

The lawsuit is part of an ongoing effort to ensure that marine compression-ignition engines comply with the Clean Air Act’s emissions standards and certification requirements.

The complaint, filed by the Department of Justice on behalf of EPA, seeks civil penalties, as well as actions by the companies to remedy the violations and to mitigate any excess pollutant emissions caused by the violations.

Non-road engines, including marine compression-ignition engines, emit carbon monoxide, as well as volatile organic compounds and nitrogen oxides, which contribute to the formation of ground-level ozone, or smog. Exposure to even low levels of ozone can cause respiratory problems, and repeated exposure can aggravate pre-existing respiratory diseases.

Missouri man pleads guilty to trafficking counterfeit goods

ST. LOUIS - A local man pleaded guilty Wednesday to trafficking in counterfeit luxury brand trademark items, including Nike, Chanel and Coach. The guilty plea resulted from an investigation conducted by the St. Louis Metropolitan Police Department and U.S. Immigration and Customs Enforcement's (ICE) Office of Homeland Security Investigations (HSI).

Dirk Lee Robinson, 55, of St. Louis, pleaded guilty Sept. 29 in the Eastern District of Missouri to one felony count of trafficking in counterfeit goods.

Robinson admitted to selling a large variety of counterfeit goods, including numerous trademark clothing and shoe companies such as Nike, Chanel, Coach, Ed Hardy, LaCoste, Polo Ralph Lauren, Timberland and True Religion. Robinson sold the goods and merchandise though a retail sales business he owned and operated at his residence called "Jeans and Things."

Additionally, as part of his plea Robinson has agreed to forfeit the property used to facilitate the illegal activity or the property derived from the illegal activity. Subject to forfeiture is about $28,476 in cash, personal property consisting of counterfeit and stolen goods, and computer and electronic equipment. Sentencing has been set for Jan. 6, 2011.

Trafficking counterfeit goods carries a maximum penalty of 10 years in prison and/or up to a $2 million fine.

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Danish man indicted for extortion and producing child pornography

KANSAS CITY, Mo. - A Danish man was indicted by a federal grand jury Wednesday for extortion and producing child pornography. The charges resulted from an investigation conducted by the Western Missouri Cyber Crimes Task Force, U.S. Immigration and Customs Enforcement's (ICE) Office of Homeland Security Investigations (HSI), the Buchanan County, Mo., Sheriff's Department and the Department of Justice Child Exploitation and Obscenity Section.

Kai Lundstroem Pedersen, 60, of Randers, Denmark, was charged in an eight-count indictment returned by a federal grand jury Sept. 29 in Kansas City. This indictment replaces a criminal complaint that was filed against Pedersen on Sept. 3, and adds an additional victim and additional charges. Pedersen remains in federal custody following his arrest in New York on Sept. 3, awaiting transfer to Kansas City.

Pedersen is charged with one count of producing and one count of attempting to produce child pornography, four counts of transporting child pornography over the Internet and two counts of extortion. Pedersen allegedly used a minor, identified as "Jane Doe #1," to produce child pornography between July 1 and July 13. Pedersen allegedly attempted to use another minor, identified as "Jane Doe #2," to produce child pornography between Aug. 12 and Aug. 13. Pedersen is also charged with extortion for allegedly threatening both victims.

According to the affidavit filed in support of the original criminal complaint, Pedersen initially contacted an 11-year-old Missouri girl in an online chat in July. During that chat, Pedersen, using an online alias, allegedly told her to activate her webcam and take off her clothes, which she did. She deactivated her webcam and ended the conversation, the affidavit says, when Pedersen activated his own webcam.

In the following days, the affidavit says, she received multiple emails from Pedersen asking her to get on webcam again. When she refused, Pedersen allegedly told her that he had recorded the webcam session and was going to upload it onto the Internet where other people could see it. He sent her a video clip and photos taken from the webcam session.

Pedersen sent messages to the victim's Facebook account, the affidavit alleges, describing how many times the photos and video had already been downloaded by others, taunting her about how she may be recognized by others who had viewed the images, and threatening to continue to disseminate the images. Pedersen allegedly created several Facebook profiles and sent messages to the victim using those profiles, purportedly from individuals claiming to have seen portions of the webcam video on the Internet. Some of those messages asked to have sexual activity with the victim, or threatened the victim with forcible sexual activity or other violence, the affidavit says.

The victim's mother contacted law enforcement authorities on Aug. 13. The mother told an officer that she learned of the contact with Pedersen after receiving Facebook messages that contained nude images of her daughter.

According to the affidavit, the officer, posing as the minor victim, communicated online with Pedersen and learned that he was leaving on vacation Aug. 20. When Pedersen logged into his Facebook account on Aug. 25, the affidavit says, investigators were able to trace his IP address to a residence in Stonybrook, N.Y. Department of Homeland Security (DHS) records indicate that Pedersen entered the United States on a Danish passport on Aug. 23.

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.

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

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14 people charged with conspiracy to smuggle $3.1 million in cash into Mexico

McALLEN, Texas - Fourteen passengers aboard a tour bus bound for Mexico have been arrested and charged for knowingly conspiring to evade currency transaction reporting requirements by concealing in luggage $3.1 million in U.S. currency. U.S. Attorney for the Southern District of Texas José Angel Moreno announced the arrest and charges Wednesday along with U.S. Immigration and Customs Enforcement (ICE) Director John Morton and U.S. Customs and Border Protection (CBP) Commissioner Alan Bersin.

"This seizure puts smugglers on notice," said Morton. "ICE and CBP are working shoulder to shoulder to deny criminal organizations money they use to further their illicit activities and threaten public safety."

Fourteen passengers aboard a tour bus - seven U.S. citizens and seven Mexican nationals - were arrested on Sunday by CBP officers at the Hidalgo, Texas, port of entry after an intensive inspection of the tour bus resulted in discovery 17 pieces of luggage, each containing hundreds of thousands of dollars in U.S. currency.  The cash was discovered wrapped in deflated air mattresses in all the luggage pieces. After further investigation by ICE Homeland Security Investigation (HSI) agents, a criminal complaint was filed Sept. 29 in McAllen charging all 14 with conspiracy to knowingly conceal more than $10,000 in currency in an attempt to transport the currency to Mexico while evading currency-reporting requirements or bulk cash smuggling. The currency totaling $3.1 million in cash was seized by CBP officers.

"This seizure of $3.1 million in undeclared currency and 14 arrests, the largest currency seizure by CBP in Fiscal Year 2010, is a magnificent achievement and serves as a validation of our enhanced outbound enforcement effort, which includes not only CBP officers and agents, but also ICE Homeland Security Investigations special agents," said Bersin.

The following fourteen passengers were arrested Monday: seven U.S. citizens: Bianca Tapia-Pineda, 20; Jobanni Hernandez, 19; Gabriella Hernandez, 18; Alejandro Camacho, 22; Elizabeth Cornejo, 21; Leticia Urieta-Aguirre, 20 and Jonathan Nathan Gaona, 20.  The remaining seven passengers were identified as Mexican nationals: Rene Fernando Espinoza-Borjas, 46; Maria Urieta, 48; Marcial Santana-Aleman, 47; Pedro Sanchez Aviles, 44; Jacinto Magadan Cuevas, 40; Margarita Patricia Jones, 50 and Irma Echeverria-Vega, 51.

All fourteen individuals made their initial appearance before U.S. Magistrate Judge Peter E. Ormsby in McAllen Tuesday and have been ordered temporarily detained pending detention hearings scheduled for Oct. 1.

A charge of conspiracy to smuggle bulk currency out of the United States carries a maximum penalty of five years in prison, a fine up to $250,000 and a term of supervised release.

It is not a crime to carry more than $10,000; but it is a federal offense not to declare currency or monetary instruments totaling more than $10,000 or more to a CBP officer upon entry into or exit from the United States.  It is also a crime to conceal money with the intent to evade reporting requirements. Failure to declare the currency may result in seizure of the currency and/or arrest. An individual may petition for the return of the currency seized by CBP officers, but the petitioner must prove that the source and intended use of the currency was legitimate.

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Alleged South Carolina Child Rapist "Bus"-ted by U.S. Marshals in Texas

Charleston, SC - Santurnino Mendez, 30, was apprehended without incident last night, at approximately 9:00 p.m., by U.S. Marshals at a Greyhound Bus Station in Austin, Texas. Mendez, who is also known as Santurnino Trinidad, is charged by the North Charleston Police Department with sexually assaulting two minor children, approximately aged 4 and 5.

The Operation Intercept Fugitive Task Force, headed by the U.S. Marshals in South Carolina, working alongside North Charleston Police Department investigators, were able to ascertain that Mendez had fled the Charleston area to Texas. Investigators alerted their counterparts in Austin, the U.S. Marshal led Lone Star Fugitive Task Force, who initiated surveillance early Wednesday morning, to look for a late model red Ford work truck that frequently traveled the area near East Koenig Lane. Ultimately, their patience paid off when officers observed the truck in the evening hours, verified the identity of Mendez, and placed him into custody. Mendez will be awaiting extradition back to Charleston.

“Mr. Mendez thought that by leaving South Carolina he could escape the U.S. Marshals and elude the charges he will now return to face. The U.S. Marshal led Operation Intercept Fugitive Task Force here in South Carolina, working with their partnered agencies, work continually until they bring a fugitive to justice. My pledge has always been to apprehend those who prey on our community and I will continue to do so.” stated Kelvin Washington, United States Marshal for the District of South Carolina.

Established in 1789, the United States Marshals Service is the nation’s oldest federal law enforcement agency. In fiscal 2009, the Marshals arrested more than 36,400 federal fugitives, clearing 39,400 felony warrants.  Marshal’s Service-led task forces like South Carolina’s Operation Intercept arrested 90,800 state and local fugitives, clearing 117,000 felony warrants. Locally, Operation Intercept arrested over 2,500 South Carolina fugitives during that same period. More information about the Marshals and other South Carolina fugitives can be found on the web at http://www.usmarshals.gov/.