Leader of Interstate Sex Trafficking Ring Pleads Guilty

Michelle Matney, 38, of Greensboro, N.C., pleaded guilty Friday, February 8, 2013, for her role as the leader of an interstate prostitution organization and to conspiracy to persuade others to travel to engage in prostitution. This case was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and Henrico County Police Division.

John P. Torres, special agent in charge for HSI Washington, D.C.; U.S. Attorney Neil H. MacBride, Eastern District of Virginia; and Chief of Police Douglas A. Middleton, Henrico County Police Division, made the announcement after the plea was accepted by U.S. District Judge Henry E. Hudson. Matney faces a maximum penalty of five years of incarceration when she is sentenced on May 10, 2013.

In a statement of facts filed with her plea agreement, Matney admitted to recruiting and supervising numerous prostitutes from 2010 through 2012. She acknowledged that she would recruit prostitutes to work for her, encourage them to travel to various states other than North Carolina, where she was based, to work as prostitutes, post prostitution advertisements online for them and set up prostitution appointments with clients.

In exchange, Matney received a portion of the earnings that the women made from prostitution. Matney came to the attention of law enforcement after the Henrico County Police Department arrested several women for prostitution who stated that they were working for Matney.

Assistant U.S. Attorneys Jamie L. Mickelson and Roderick C. Young are prosecuting the case on behalf of the United States.

Brazilian Couple Plead Guilty to Human Trafficking

Two Brazilian nationals pleaded guilty Wednesday, January 16, 2013, to smuggling illegal aliens into the United States for profit. The guilty plea follows an investigation by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).

Juliana Rose Tome-Froes, 36, and her husband, Fabio Rodrigues Froes, 49, pleaded guilty to six counts of bringing and attempting to bring aliens to the United States for commercial advantage and two counts of bringing and attempting to bring aliens to the United States for private financial gain.

According to plea documents, from at least October 2008 until approximately September 2010, the defendants organized, operated and managed a human smuggling network that operated in Brazil, France, England, the Bahamas and the United States. The defendants met with illegal aliens and negotiated forms of payment to be smuggled into the United States. 

Before the illegal aliens departed Brazil, the defendants instructed them to act like tourists and explained that the itinerary through Europe would support a tourist cover story. In exchange for approximately $16,000, Tome-Froes, with assistance from Froes, arranged air transportation from Brazil to Paris, then London and Nassau, Bahamas. Tome-Froes arranged the illegal aliens' lodging in Paris and Nassau, and then instructed them to fly to Freeport, Bahamas, where they waited for a boat to transport them to the United States. For the final leg into the United States, Tome-Froes coordinated with various individuals in South Florida to pilot a small boat to Freeport, which picked up the illegal aliens and transported them to the United States.

At sentencing, scheduled for March 21, Tome-Froes faces a maximum penalty of 15 years in prison and a $250,000 fine, and Froes faces a maximum penalty of 10 years in prison and a $250,000 fine.

Woman Pleads Guilty to Conspiracy to Hire Illegal Aliens and Mail Fraud

Following an investigation by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), a Pennsylvania woman pleaded guilty Thursday December 6, 2012, to conspiracy to commit mail fraud.

Eleni Nguyen, 29, of Phoenixville, Pa., pleaded guilty in federal court to the charge in connection with filing false documents with the Pennsylvania Unemployment Compensation program. Nguyen is the third person charged in a scheme involving a temporary employment agency hiring illegal alien employees. Nguyen is the owner of the employment agency.

Andri Gunawan, a representative for the company, previously entered guilty pleas to various crimes, including conspiracy to transport illegal aliens, harboring illegal aliens and mail fraud.

Both Gunawan and Nguyen are awaiting sentencing.

As part of the scheme, members of the employment agency contracted with various third party businesses to provide temporary employees. The conspirators would fulfill these contracts by hiring illegal aliens and paying them in cash "under the table," failing to pay various federal, state and local taxes, fees or compensation insurance. Using this scheme, the temporary employment agency was able to maximize its profits.

At sentencing, Nguyen faces a maximum of five years in prison and a fine of $250,000.
The U.S. Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigations, the Pennsylvania State Police and U.S. Department of Health and Human Services assisted in the investigation.

Corporation Pleads Guilty to Knowingly Hiring Illegal Alien for McDonald's Manager

A Kansas corporation agreed to plead guilty Wednesday, October 31, 2012, to an immigration charge after a federal investigation showed that the manager of one of its McDonald's restaurants in Wichita was an illegal alien. This announcement was made by U.S. Attorney Barry Grissom, District of Kansas.

This guilty plea agreement resulted from an investigation by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), with the assistance of the Social Security Administration's Office of Inspector General.

McCalla Corporation, a McDonald's restaurant franchisee with offices in Wichita, was charged Oct. 31 with one felony count of knowingly accepting a fraudulent identification document offered as proof that an employee was eligible to work. As part of the plea agreement, the corporation agreed to pay a $300,000 fine, and an additional $100,000 forfeiture judgment.

The case is the second time in two months that a Kansas company has been charged with knowingly employing illegal workers. In the other case, the owners of two hotels in Overland Park, Kan., and Kansas City, Mo., were charged with knowingly hiring illegal workers for housekeeping jobs.

"ICE is committed to holding businesses accountable when they knowingly hire or retain illegal workers," said Gary Hartwig, special agent in charge of HSI Chicago. "Employers who willfully violate our nation's hiring laws gain an unfair economic advantage over their law-abiding competitors. Our goal is to protect job opportunities for the nation's legal workers and level the playing field for those businesses that play by the rules."

"Businesses that knowingly hire undocumented workers are putting us all at risk," said U.S. Attorney Barry Grissom. "They are creating a marketplace for unauthorized workers who may resort to presenting false documents to gain employment, completing applications for fraudulent benefits and even stealing the identities of legal U.S. workers. Employment is the primary driving force behind illegal immigration. I'm calling on all Kansas employers to strengthen their hiring practices and to help us safeguard this nation by hiring and maintaining a lawful workforce."

According to an affidavit, the investigation began in February 2011 when HSI received information that McCalla Corporation employed illegal workers. McCalla Corporation owns McDonald's restaurants at the following six Wichita locations:

·                             1630 S. Hillside

·                             11989 E. Kellogg

·                             501 E. Pawnee

·                             1219 S. Rock Road

·                             2418 S. Seneca

·                             1645 S. Webb Road

In the plea agreement, McCalla Corporation admitted that in March 2011 the company's director of operations became aware that one of its store managers was using a false Social Security number. The director told the McDonald's store manager she needed to provide him new documents to confirm her eligibility to work.

Two days later, the store manager presented a resident alien identification card. The director knew the new card was not genuine. He knew that it takes weeks, not just two days, for a foreign national to obtain a resident alien card. Nevertheless, he updated her paperwork and McCalla Corporation took no further action concerning her employment. She worked as a store manager for this corporation from May 2009 to September 2012.

Grissom said he expects McCalla Corporation to enter the guilty plea within the next three weeks, as the court's schedule permits.

Former ICE Director Sentenced to 20 Months for Fraud

The former acting director of U.S. Immigration and Customs Enforcement's (ICE) Office of Intelligence was sentenced July 13, 2012, to 20 months in prison for defrauding the U.S. government.

James M. Woosley, 48, defrauded the government of more than $180,000 in a scheme involving fraudulent travel vouchers, and time and attendance claims.

The sentence was announced by U.S. Attorney Ronald C. Machen Jr., District of Columbia; Charles K. Edwards, acting inspector general of the U.S. Department of Homeland Security (DHS); James W. McJunkin, assistant director in charge of the FBI's Washington Field Office, and Timothy Moynihan, director of ICE's Office of Professional Responsibility.

Woosley, formerly of Tucson, Ariz., pleaded guilty in May 2012 in the U.S. District Court for the District of Columbia to a charge of conversion of government money. He was sentenced by the Honorable Amy Berman Jackson. Upon completion of his prison term, Woosley will be placed on three years of supervised release. In addition, as part of his plea agreement, he agreed to forfeiture and restitution of the money that he wrongfully obtained.

Four others have pled guilty in the case. Ahmed Adil Abdallat, 64, a former ICE supervisory intelligence research specialist, pleaded guilty in October 2011; William J. Korn, 53, a former ICE intelligence research specialist, pleaded guilty in December 2011; Stephen E.
Henderson, 62, a former contractor who did work for ICE, pleaded guilty in January 2012, and Lateisha M. Rollerson, 38, a former assistant to Woosley, pleaded guilty in March 2012.
Abdallat pleaded guilty in the Western District of Texas, and the others pleaded guilty in the District of Columbia.

Abdallat was sentenced to a year and a day in prison and ordered to pay $116,392 in restitution. Henderson has been sentenced to three months in prison and must forfeit $54,387, representing his share of the proceeds of the crime. Rollerson was sentenced to 10 months in prison and ordered to pay $295,866 in restitution. Korn is awaiting sentencing.

All told, the actions of the various defendants cost ICE more than $500,000.

"Today's sentence reflects the outstanding law enforcement cooperation in a case that unmasked the illicit acts of a senior ICE official," said Director Moynihan on July 13, 2012. "Bottom line: James Woosley violated the public trust in pursuit of his own greed. While his actions are atypical of the dedication and integrity demonstrated by the vast majority of ICE employees, this sentence should serve as a stark reminder about the serious consequences facing those who would exploit their positions for personal financial gain. The ICE Office of Professional Responsibility will continue to investigate those individuals aggressively and seek their prosecution to the fullest extent of the law."

"James Woosley took advantage of the trust he was given by the United States government to carry out a scheme that cost American taxpayers more than a half-million dollars," said U.S. Attorney Machen. "He personally obtained more than $188,000 while also bringing others into the fraud. Now he and four others have been convicted of their crimes, and he will be spending time in prison for this betrayal of his office."

"For years, Mr. Woosley participated in a scheme to defraud the government for his own personal gain," said Assistant Director in Charge McJunkin. "Today, he is being held accountable for his actions. This sentencing demonstrates that those who engage in government corruption, as well as those who allow it to happen, will be brought to justice."

According to the government's evidence, with which Woosley agreed, from in or about May 2008 until in or about January 2011, Woosley participated in the fraudulent activity involving travel vouchers, and time and attendance claims. In addition, from June 2008 until in or about February 2011, Woosley was aware of or willfully overlooked fraudulent activity of ICE or contract employees under his supervision.

The other employees included Rollerson, who he met in or about 2007, while he was deputy director of ICE's Office of Intelligence. Woosley and Rollerson developed a close, personal relationship. In or about May 2008, Rollerson was hired as an intelligence reports writer for a company that did contract work for ICE. Later that year, she was hired by ICE as an intelligence research specialist. This placed her first in the chain of command under Woosley, and she later became Woosley's personal assistant. Rollerson's official duty station was in Washington, and she lived in Virginia, often with Woosley. Rollerson helped Woosley and the other participants with the paperwork to support the fraudulent payments they later received. Woosley admitted obtaining money in various ways:

·                             Between in or about May 2008 and January 2011, Woosley submitted or caused to be submitted approximately 13 fraudulent travel vouchers to ICE, at a cost of $50,637. As Woosley's assistant, Rollerson created all but one of the travel vouchers, as well as fraudulent documents to support the claimed expenses. She often accompanied him on the trips.

·                             Between in or about November 2009 and January 2011, Woosley submitted or caused to be submitted time and attendance claims for his pay for work he was supposed to be doing while he was on travel. Because he was not actually on travel, or working, he was not entitled to the payments of approximately $27,230.

·                             Starting in 2008, Woosley took a share of the fraudulent proceeds obtained by others in a scheme involving travel vouchers. For example, Henderson, an ICE contractor who was detailed on temporary duty to Washington, kicked back $5,000 to Woosley that was used to purchase a boat. Henderson also lived with Woosley and used some fraudulent proceeds to pay rent. Abdallat wrote checks to Rollerson and others, for the benefit of Woosley and Rollerson, totaling about $58,550. Korn kicked back about $30,648 to the benefit of Woosley and Rollerson. Finally, an unnamed contract employee gave $15,940 in fraudulent travel voucher funds to Woosley, which Woosley used for a real estate investment.

This case was investigated by ICE's OPR, DHS' Office of Inspector General and FBI's Washington Field Office.

In announcing today's sentence, U.S. Attorney Machen, Acting Inspector General Edwards, Assistant Director McJunkin, and Assistant Director Moynihan praised the investigative agents from the respective agencies for their hard work in this matter. They also acknowledged the efforts of Assistant U.S. Attorneys Daniel Butler and Allison Barlotta, who handled this prosecution, and Assistant U.S. Attorney Emily Scruggs, who handled the asset forfeiture.

Former Department of Defense Employees Plead Guilty to Citizenship Fraud

Two former Department of Defense employees pleaded guilty in federal court Monday, July 2, 2012, to attempting to illegally obtain and illegally obtaining U.S. citizenship following a probe by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Department of State.

Adeba Sultana, 47, admitted giving false information when she applied for U.S. citizenship in 2008. Sultana acknowledged she used a false name and provided erroneous biographical information on that application, claiming her husband had been killed and falsely describing her method of entry into the United States in various immigration benefits applications. In her application for naturalization, which was approved by U.S. Citizenship and Immigration Services, Sultana lied about her citizenship status and claimed she had not previously provided false information to U.S. immigration officials to obtain an immigration benefit.

Similarly, Sultana's husband, Mohammad Ali Rabbani, 58, admitted giving a false name, false citizenship information, and lying about his method of entry into the United States on his application for asylum and other immigration applications. In his application for naturalization, Rabbani gave false information regarding his citizenship status and falsely claimed he had not previously lied to U.S. immigration officials to obtain an immigration benefit.

The San Diego couple were previously employed as language instructors at the Defense Language Institute in Monterey, Calif.

Rabbani and Sultana were indicted by a federal grand jury in October 2011. Rabbani was charged with one count of attempted false procurement of naturalization. Sultana was charged with one count of false procurement of naturalization.

Rabbani and Sultana are scheduled to be sentenced Oct. 15 before U.S. District Court Judge Edward J. Davila. The maximum statutory penalty for each count of unlawful procurement or attempted procurement of citizenship is 10 years and a fine of $250,000. Sultana also faces mandatory revocation of her citizenship status.

Special Assistant U.S. Attorney Ann Marie Ursini and Assistant U.S. Attorney Susan Knight are prosecuting the case.

Members of Illegal Maryland Document Mill Plead Guilty

All members of a Maryland document mill, including eight Mexican nationals and a Honduran national, pleaded guilty to manufacturing and selling thousands of fake government identification documents, following an investigation led by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).

"Document fraud poses a severe threat to national security and puts the security of our communities at risk because it creates a vulnerability that may enable terrorists, criminals and illegal aliens to gain entry to and remain in the United States," said HSI Baltimore Special Agent in Charge William Winter. "This investigation resulted in the dismantlement of a document fraud criminal organization based out of Maryland and the arrest of its leaders. Homeland Security Investigations will move aggressively to investigate and bring to justice those who potentially compromise the integrity of America's legal immigration system."

Between May 14 and May 24, five defendants, all of whom lived in Baltimore, pleaded guilty. They include Cristian Fuentes-Valle, aka "Honduras," 34; Ivan Altamirano-Perez, aka "Elmer," 32; Miguel Reyes-Ontiveros, 41; Daniel Cruz-Martinez, aka "Danny," 23; and Roberto Moralez-Perez, aka "Piza," 26.

According to the plea agreements and other court documents, the responsibility for manufacturing the identity documents – including permanent resident cards and social security cards – rotated among various individuals. From June 2008 through May 2010, Ivan Altamirano-Perez and his brother, Roberto Morales-Perez, shared the territory and took turns receiving the income from manufacturing the identity documents. Beginning in May 2010 and continuing until their arrests, Altamirano-Perez and Morales-Perez shared the territory and manufacturing rights and profits with Miguel Reyes-Ontiveros. Collectively, they were known as the "Broadway Mill Operators." The location of the manufacturing operation, aka the "mill," was changed frequently to avoid detection.

When the Broadway Mill Operators were not engaged in manufacturing the documents, they sold documents themselves or assisted by collecting orders from salesmen and delivering documents back to the salesmen once they had been manufactured. The Broadway Mill Operators used a group of at least 10 individuals, who sold and distributed the identity documents manufactured by the Broadway Mill Operators.

The salesmen included: Adrian Badillo-Carrasco, aka "Rana," 36; Alejandrino Candia-Galindo, aka "Paisa and Omar," 27; Saul Sanchez Galvin, aka "Chino, Morro and Doblon," 27; Juan Merlin-Gonzalez, 35; Cristian Fuentes-Valle, aka "Honduras," 34; and Daniel Cruz-Martinez, aka "Danny," 23.

According to their plea agreements, the salesmen solicited individuals in the 200 block of South Broadway in Baltimore, which is known as the "Broadway Territory," to purchase fake identification documents, either in person or by distributing business cards. When a person seeking to purchase counterfeit identity documents was identified, the salesman would negotiate a price, obtain a picture and the necessary information to create the identification card. The salesman would then call whichever of the Broadway Mill Operators was working that week to pick up the order. Later, the completed identity document would be dropped off for the salesman, who would contact the customer and give him/her the identity documents in exchange for money, which usually cost between $130 and $160.

According to the plea agreements and other court documents, the defendants manufactured and transferred thousands of fraudulent identification documents for which they are alleged to have received approximately $1.68 million.

On Feb. 15, a defendant in a related case, Victor Lopez Escamilla, was convicted by a jury of manufacturing and trafficking in counterfeit identity documents, social security number cards and immigration identity documents. He was sentenced to 97 months in prison.

Each defendant faces a maximum sentence of 15 years in prison for conspiracy to commit fraud in connection with identification documents and a maximum of 10 years in prison for fraud and misuse of immigration documents. In addition, Altamirano-Perez, Morales-Perez and Reyes-Ontiveros each face a maximum of five years in prison for social security fraud and Altamirano-Perez faces a maximum of 15 years in prison for identification document fraud. The defendants, all of whom are in the U.S. illegally, face removal or removal proceedings upon the completion of their sentences.

U.S. District Judge William D. Quarles Jr., has scheduled sentencing for Reyes-Ontiveros July 19; for Roberto Morales-Perez Aug. 23 and for Altamirano-Perez Aug. 21. Sentencing for Badillo-Carrasco is scheduled July 17; for Candia-Galindo July 26; for Merlin-Gonzalez Aug. 14; for Cruz-Martinez Aug. 22; for Sanchez-Galvin Aug. 28 and for Fuentes-Valle Sept. 5.

The investigation was conducted by HSI Baltimore and the Social Security Administration, Office of Inspector General, with assistance from the State Department Diplomatic Security Service, Washington Field Office; the Maryland Motor Vehicle Administration, Investigation and Security Services Division; and the Baltimore County Police Department.

The case was prosecuted by Assistant U.S. Attorneys Tamera L. Fine and Judson T. Mihok.

Missouri Woman Pleads Guilty in $5 Million Illegal Document Conspiracy

A Missouri woman pleaded guilty in federal court Monday, May 7, to her role in a more than $5 million conspiracy that utilized the Missouri Department of Revenue license office in St. Joseph to provide more than 3,500 fraudulent identity documents to illegal aliens across the United States.

The guilty plea resulted from an investigation conducted by the following agencies: U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations; the Buchanan County (Mo.) Sheriff's Department; the St. Joseph (Mo.) Police Department; the Platte County (Mo.) Sheriff's Department; the Missouri State Highway Patrol; the Missouri Department of Revenue Investigation Bureau; the Social Security Administration Office of Inspector General; the U.S. Postal Inspection Service; and the U.S. Department of State Bureau of Diplomatic Security.

Christina Michelle Gonzalez, 23, of St. Joseph, Mo., pleaded guilty May 7 before U.S. District Judge Gary A. Fenner to the charges contained in a Jan. 10 federal indictment.

By pleading guilty, Gonzalez admitted to participating in a conspiracy from November 2009 to January 2012 to transport illegal aliens, unlawfully produce identification documents, unlawfully transfer another person's identification, and commit Social Security fraud.

During the conspiracy, thousands of illegal aliens traveled from across the United States to obtain either a Missouri driver's or non-driver's license at the St. Joseph license office by using unlawfully obtained birth certificates and Social Security cards. It is estimated that more than 3,500 licenses were issued to illegal aliens by the Department of Revenue license office in St. Joseph. The state licenses could then be used by the illegal aliens to remain unlawfully in the United States, to unlawfully obtain employment and for other unlawful purposes.

Gonzalez admitted that she accompanied illegal aliens to the St. Joseph license office, under the guise of being a translator, in order to assist them with obtaining a Missouri driver's or non-driver's license. Those licenses used the names of persons who were listed on unlawfully obtained birth certificates and Social Security cards.

Gonzalez instructed and assisted the illegal aliens to practice memorizing the information on the birth certificates and Social Security cards and to practice signing the name on those documents so that the signatures would be similar. She also assisted the illegal aliens to prepare for potential questions from the license office employees.

Gonzalez assisted the illegal aliens who did not live in Missouri by providing them with a Missouri residential address to use in order to obtain the Missouri driver's or non-driver's license.

The illegal aliens were usually charged between $1,500 and $1,600 for the document sets and the Missouri driver's and non-driver's licenses. Gonzalez collected money from the illegal aliens, which she paid to her co-conspirators. It is estimated that more than $5,250,000 in gross proceeds was paid by illegal aliens to members of this conspiracy.

Under federal statutes, Gonzalez is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a pre-sentence investigation by the United States Probation Office.

Assistant U.S. Attorney Jess E. Michaelsen, Western District of Missouri, is prosecuting the case.