Woman Indicted for Visa Fraud, Tax Fraud, and Identity Theft

A federal grand jury indicted Karen Kimble, aka Karen Kimble-Mamah and Karen Mamah, 38, of Owings Mills, Md., on charges of wire fraud, subscribing to a false tax return, aiding in the filing of a false tax return, aggravated identity theft and visa fraud.

The indictment was returned Jan. 24 and Kimble had her initial appearance Jan. 28 in U.S. District Court in Baltimore before U.S. Magistrate Judge Susan K. Gauvey.

The 21-count indictment alleges that from February 2008 through at least April 2012, Kimble, who falsely held herself out to others as a "certified tax preparer," conducted a tax fraud scheme by submitting fraudulent tax returns for clients. Specifically, the indictment alleges that Kimble falsely inflated credits and deductions and clients' tax returns, as well as on her own tax returns, in order to fraudulently increase the tax refund. Kimble provided her clients with a tax return that did not reflect the false deductions and credits, nor did she inform them of the fraudulent deductions and credits. Kimble filed the fraudulent returns without her clients' knowledge or permission, using their personal identifiable information.

Kimble directed that the tax refunds be mailed or directly deposited with all of the refund sent to Kimble, or with some of the refund sent to the taxpayer and some to Kimble. The indictment alleges that Kimble received a total of more than $221,000 in fraudulent federal tax refunds, none of which she reported as income on her own tax returns. The indictment seeks forfeiture in the amount of $221,698, alleged to be the proceeds of the scheme.

The indictment also alleges that on Feb. 14, 2008, Kimble married a Ghanian citizen, knowing that the marriage was not valid because the Ghanian was not legally divorced from his first wife.

Kimball faces a maximum sentence of 30 years in prison for each of six counts of wire fraud, three years in prison for each of five counts of subscribing to a false tax return and for each of five counts of aiding in the filing of a false tax return, a mandatory two years in prison consecutive to any other sentence for each of four counts of aggravated identity theft and 10 years in prison for visa fraud.

An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.

The investigation was conducted by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) Baltimore; The Internal Revenue Service, Criminal Investigation, Washington, D.C. Field Office and U.S. Citizenship and Immigration Services Baltimore District Office.

The case is being prosecuted by Assistant U.S. Attorney Peter M. Nothstein.

ICE's Operation Dark Night Busts Sex Trafficking Ring, Rescues 11 Victims

On Thursday, January 17, 2013, U.S. Immigration and Customs Enforcement (ICE) announced the results of a lengthy investigation, called Operation Dark Night, into a sex trafficking ring operating in Florida, Georgia and the Carolinas. The investigation, which was led by ICE's Homeland Security Investigations (HSI), led to a takedown Wednesday, January 16, 2013, in which authorities made 13 criminal arrests and 44 administrative arrests tied to the investigation, as well as the rescue of as many as 11 victims.

"ICE investigates a wide array of crimes, but the trafficking of women and girls for prostitution is among the most sinister," said ICE Director John Morton. "Few crimes so damage their victims and undermine basic human decency. Our fight against this evil must be relentless, both here and abroad."

U.S. Attorney for the Southern District of Georgia Edward Tarver said, "In what essentially amounts to slavery in the year 2013, the conduct described in the indictment against these defendants is reprehensible. This case is a prime example of the United States Attorney's Office and HSI recognizing that human trafficking is a cancer facing our society and taking a stand to stop the victimization of women involved in sex trafficking."

According to the indictment, Joaquin Mendez-Hernandez, aka El Flaco, conspired with each of the other defendants to transport people across interstate boundaries to engage in prostitution. In addition, Mendez-Hernandez allegedly conspired with at least three others to entice women from Mexico, Nicaragua and elsewhere to travel to the United States with false promises of the American dream. Once inside the United States, these women were allegedly threatened and forced to commit acts of prostitution at numerous locations in Savannah and throughout the Southeast. In one such instance identified in the indictment, Mendez-Hernandez is alleged to have told a Mexican woman that she would be sent back to her home country unless she serviced 25 clients a day.

HSI provides relief to victims of human trafficking by allowing for their continued presence in the United States during criminal proceedings. Victims may also qualify for a T visa, which is issued to victims of human trafficking who have complied with reasonable requests for assistance in investigations and prosecutions. Anyone who suspects instances of human trafficking is encouraged to call the HSI tip line at 1-866-DHS-2-ICE (866-347-2423) or the Human Trafficking Hotline at 1-888-373-7888. Anonymous calls are welcome.

Operation Dark Night was led by HSI, with assistance from the FBI; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; U.S. Customs and Border Protection (CBP); CBP Air and Marine Operations; the Internal Revenue Service's Criminal Investigations; the Savannah-Chatham Metropolitan Police Department; the Chatham County Sheriff's Office; the Garden City Police Department; and, the Chatham-Savannah Counter Narcotics Team. Assistant U.S. Attorney Tania D. Groover and E. Greg Gilluly Jr. are prosecuting the case on behalf of the United States.

54 Month Sentence for Mexican National Who Trafficked Stolen Identities of Puerto Rican U.S. Citizens

A Mexican national was sentenced Monday, November 26, 2012, to 54 months in prison for trafficking the identities of Puerto Rican U.S. citizens and corresponding identity documents, announced Assistant Attorney General Lanny A. Breuer of the Justice Department's Criminal Division; U.S. Attorney Rosa E. Rodríguez-Vélez for the District of Puerto Rico; Director John Morton of U.S. Immigration and Customs Enforcement (ICE), which oversees Homeland Security Investigations (HSI); Chief Postal Inspector Guy J. Cottrell of the U.S. Postal Inspection Service (USPIS); Director Scott P. Bultrowicz of the U.S. State Department's Diplomatic Security Service (DSS); and Internal Revenue Service-Criminal Investigation (IRS-CI) Chief Richard Weber.

Jose Sergio Garcia-Ramirez, 37, formerly of Rockford, Ill., was sentenced Nov. 26 by U.S. District Judge Gustavo A. Gelpí, in the District of Puerto Rico. Judge Gelpí also ordered Garcia-Ramirez to forfeit $35,900 in proceeds and ordered the removal of Garcia-Ramirez from the United States after the completion of his sentence.

On July 17, Garcia-Ramirez pleaded guilty to one count of conspiring to commit identification fraud and one count of aggravated identity theft before U.S. Magistrate Judge Bruce J. McGiverin in the District of Puerto Rico.

Garcia-Ramirez was charged in a superseding indictment returned March 22 by a federal grand jury in Puerto Rico. To date, 53 individuals have been charged for their roles in the identity trafficking scheme; 18 defendants have pleaded guilty.

Court documents allege that individuals located in the Savarona area of Caguas, Puerto Rico (Savarona suppliers), obtained Puerto Rican identities and corresponding identity documents. Other conspirators located in various cities throughout the United States (identity brokers) allegedly solicited customers and sold Social Security cards and corresponding Puerto Rico birth certificates for prices ranging from $700 to $2,500 per set.

The superseding indictment alleges that identity brokers ordered the identity documents from Savarona suppliers, on behalf of the customers, by making coded telephone calls. The conspirators are charged with using text messages, money transfer services and express, priority or regular U.S. mail to complete their illicit transactions.

Court documents allege that some identity brokers assumed a Puerto Rican identity themselves and used that identity in connection with the trafficking operation. Their customers allegedly generally obtained the identity documents to assume the identity of Puerto Rican U.S. citizens and to obtain additional identification documents, such as legitimate state driver's licenses. Some customers allegedly obtained the documents to commit financial fraud and attempted to obtain a U.S. passport.

According to court documents, various identity brokers were operating in the following locations: Rockford, Ill.; DeKalb, Ill.; Aurora, Ill.; Seymour, Ind.; Columbus, Ind.; Indianapolis; Hartford, Conn.; Clewiston, Fla.; Lilburn, Ga.; Norcross, Ga.; Salisbury, Md.; Columbus, Ohio; Fairfield, Ohio; Dorchester, Mass.; Lawrence, Mass.; Salem, Mass.; Worcester, Mass.; Grand Rapids, Mich.; Nebraska City, Neb.; Elizabeth, N.J.; Burlington, N.C.; Hickory, N.C.; Hazelton, Pa.; Philadelphia; Houston; Abingdon, Va.; Albertville, Ala.; and Providence, R.I.

Garcia-Ramirez admitted that he was an identity broker in the conspiracy, operating in Illinois. Garcia-Ramirez is the fourth defendant to be sentenced in this case.

The charges are the result of Operation Island Express, an ongoing, nationally-coordinated investigation led by HSI Chicago and USPIS, DSS and IRS-CI offices in Chicago, in coordination with HSI San Juan. The following agencies provided substantial assistance: Illinois Secretary of State Police; Elgin (Ill.) Police Department; Seymour (Ind.) Police Department; and Indiana State Police. The HSI Santo Domingo in the Dominican Republic and the International Organized Crime Intelligence and Operations Center, as well as various ICE, USPIS, DSS and IRS-CI offices around the country, also provided invaluable assistance.

The case is being prosecuted by Trial Attorneys James S. Yoon, Hope S. Olds, Courtney B. Schaefer and Christina Giffin of the Justice Department Criminal Division's Human Rights and Special Prosecutions Section, with the assistance of Acting Deputy Chief Jeannette Gunderson of the Criminal Division's Asset Forfeiture and Money Laundering Section, and the support of the U.S. Attorney's Office for the District of Puerto Rico. The U.S. Attorney's Offices in the Northern District of Illinois, Southern District of Indiana, District of Connecticut, District of Massachusetts, District of Nebraska, Middle District of North Carolina, Southern District of Ohio and Western District of Virginia provided substantial assistance.

Texas Attorney Arrested for Drug Trafficking Conspiracy and Money Laundering

A local attorney remains in federal custody following his arrest Friday, November 2, 2012, by special agents with U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) regarding allegations of money laundering for a Mexican drug cartel.

Marco Antonio Delgado, 46, was arrested Nov. 2 at an El Paso restaurant. He is charged with conspiracy to commit money laundering.

An El Paso-area attorney, Delgado is named in a federal indictment charging that between July 2007 through December 2008, in the Western District of Texas, he conspired with other individuals to launder money believed to be drug trafficking proceeds.

According to the investigation, Delgado is linked to a drug cartel based in Guadalajara, Mexico, and accused of conspiring to launder more than $600 million.

Dennis A. Ulrich, special agent in charge of HSI El Paso, said: "Drug cartels operate solely on the basis of greed. However, when they can also corrupt trusted authorities, the integrity and stability of both countries' financial infrastructure may be at risk."

Delgado had his initial appearance in federal court Nov. 5. His preliminary and detention hearing was set for Nov. 8. If convicted, Delgado faces a maximum sentence of 20 years in prison.

This HSI investigation was coordinated by HSI El Paso's financial group and the HSI-led Southwest Border Financial Operations and Currency United Strike Force (FOCUS).

FOCUS was created to detect and target a wide variety of financial crimes in west Texas and the state of New Mexico. This multi-agency financial strike force includes the following agencies: HSI, Internal Revenue Service, Drug Enforcement Administration, and the Texas Alcohol and Beverage Commission. FOCUS works closely with the U.S. attorney's office, ICE's Office of the Principal Legal Advisor, and the U.S. Secret Service.

Each participating agency uses its unique law enforcement authorities to enhance the capabilities of the strike force. FOCUS investigates the following financial crimes: money laundering, mortgage and bank fraud, structuring, unlicensed money transmitting businesses/couriers, and bulk cash smuggling.

Restaurant Owners Sentenced for Immigration, Tax, and Employment Fraud

The husband and wife owners of a Bay Area Mexican restaurant chain were sentenced Tuesday, April 24, on various immigration, Social Security and tax violations uncovered during a probe involving U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and several other federal agencies.

Marino Sandoval, 59, and Nicole Sandoval, 51, owners of El Balazo Restaurant, appeared in federal court Tuesday, April 24. Marino Sandoval was sentenced to 41 months in prison. Nicole Sandoval was sentenced to five years' probation and 12 months of community confinement. In addition, the two were ordered to pay $2.2 million in restitution to the Internal Revenue Service (IRS).

The Pleasanton couple pleaded guilty Sept. 7, 2011. In pleading guilty, they admitted owning and operating El Balazo, along with Marino Sandoval's brother, Francisco Sandoval, who pleaded guilty to tax charges in 2010. Marino and Nicole Sandoval acknowledged they were responsible for withholding federal taxes, including employment and unemployment taxes, from their employees' pay. Nicole Sandoval admitted she underreported employees' wages to the payroll company that prepared the restaurants' tax returns. Marino and Nicole Sandoval admitted that, because of their actions, the amount of employment taxes paid to the IRS was understated.

At the hearing, Marino Sandoval also admitted hiring employees who were not authorized to work in the United States. According to his plea agreement, between August 2007 and August 2008, he employed more than 100 illegal aliens. In May 2008, HSI special agents conducted searches at several El Balazo locations and encountered approximately 63 illegal alien workers. After being informed by HSI in writing of the identities of the unauthorized employees, Marino Sandoval rehired more than 10 of them.

Aside from the tax charges, Nicole Sandoval also pleaded guilty to misusing El Balazo employees' Social Security numbers that were provided to the Social Security Administration and the IRS. Between 2002 and 2007, Nicole Sandoval submitted, on behalf of El Balazo, the employer's quarterly contribution and wage reports to the Social Security Administration. The reports included the names of undocumented alien employees receiving wages from their employment. In court, Nicole Sandoval admitted she was aware the Social Security numbers submitted were not the numbers assigned to the employees.

The couple was charged by criminal information in November 2010 with harboring and employing illegal aliens; misusing employees' Social Security numbers; and engaging in tax fraud.

In addition to HSI, IRS Criminal Investigation and the Social Security Administration Office of the Inspector General also participated in the probe. The case is being prosecuted by Assistant U.S. Attorneys Stephen Corrigan and Thomas Newman with further support provided by Kathleen Turner.