Co-defendant in Sex Trafficking Case Pleads Guilty

Authorities have announced that Pablo Bonifacio pleaded guilty in federal court in Los Angeles, to conspiracy to commit sex trafficking and transporting illegal aliens in the pending case of United States v. Vasquez-Valenzuela. Another eight defendants are scheduled for trial on Sept. 2, 2008, in Los Angeles.^[1]

Pursuant to the terms of the plea agreement, Bonifacio faces a statutory maximum sentence of 15 years in prison and a $500,000 fine. Bonifacio’s sentencing is scheduled to be in Los Angeles on July 28, 2008.^[2]

Bonifacio has admitted to conspiring with multiple co-defendants and others in a scheme to transport young Guatemalan women and girls into the United States illegally and to hold and harbor them in the Los Angeles area for the purpose of having them participate in prostitution.^[3] According to his admissions at the plea hearing, Bonifacio was paid for his role in taking young females to different locations within the Los Angeles area to engage in prostitution.^[4] Furthermore, the defendant stated that co-defendants arranged for young females to be recruited from Guatemala–often by promising them jobs–and were thereafter brought into the United States illegally for prostitution.^[5] In order to repay the fees for being brought into the United States the young women and girls were forced to engage in prostitution.^[6]

According to Acting Assistant Attorney General Grace Chung Becker, “The defendant was a willing participant in a conspiracy to engage in sex trafficking of female victims from Central America.” Becker went on to state, “The Department of Justice will continue to find and prosecute anyone who works to aid human trafficking schemes.”^[7]

U.S. Attorney Thomas O’Brien added, “Mr. Bonifacio has admitted his role in a scheme that lured young girls into the United States with promises of a better life, but the American dream turned into a nightmare when those children were forced to work as prostitutes.”^[8]

Human smuggling is prosecuted under 8 U.S.C. § 1324, the potential punishment can be up to 15 years in prison if the crime was committed for the purpose of commercial or private financial gain.^[9] The pertinent subsection to the case here is § 1324(2)(b)(ii) which states that, “Any person who, knowing or in reckless disregard of the fact that an alien has not received prior official authorization to come to, enter, or reside in the United States, brings to or attempts to bring to the United States in any manner whatsoever, such alien, regardless of any official action which may later be taken with respect to such alien shall in the case of an offense done for the purpose of commercial advantage or private financial gain, be fined under title 18 and shall be imprisoned not less than 3 nor more than 10 years, and for any other violation, not less than 5 nor more than 15 years.”^[10]

Federal criminal defense attorney, Douglas McNabb, has written extensively on human trafficking. Some of his work in the area can be seen here.

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[1] Press Release, United States Department of Justice, Man Pleads Guilty to Conspiracy to Engage in Sex Trafficking and Transporting Illegal Aliens in Los Angeles, May 8, 2008 (available at http://www.usdoj.gov/opa/pr/2008/May/08_crt_396.html).
[2] Id.
[3] Id.
[4] Id.
[5] Id.
[6] Id.
[7] Id.
[8] Id.
[9] 18 U.S.C. § 1324.
[10] 18 U.S.C. § 1324(2)(b)(ii).

Lopez, Mondragon Sentenced in Houston Human Smuggling Case

Acting Assistant Attorney General for the Civil Rights Division Grace C. Becker and U.S. Attorney for the Southern District of Texas Don DeGabrielle have announced that Victor Omar Lopez and Oscar Mondragon, two brothers, have been sentenced for their participation in a scheme to smuggle Central American women and girls into the United States and force them to work in bars and cantinas in the Houston area.^[1] In addition to being sentenced to 109 months in prison followed by three years of probation, Lopez was also ordered to, jointly with his co-defendants, pay $1.7 million in restitution to the victims.^[2] Mondragon was sentenced to 180 months of imprisonment and was ordered to pay, jointly and severally with his co-defendants, over $1.1 million of the total of over $1.7 million in restitution awarded in the case.^[3]

In total, eight defendants have been convicted in connection with this scheme. According to authorities, defendants used threats to harm the victims and their families if they attempted to leave prior to paying off their smuggling debts.^[4]

Lopez and Mondragon have both previously pleaded guilty to conspiring to hold persons in a condition of peonage; to illegally recruiting, harboring and transporting persons for labor and services; and to conspiring to bring, harbor, and transport known illegal aliens for commercial advantage and private financial gain. Peonage refers to a condition of involuntary servitude imposed upon an individual to extract repayment of a debt.^[5]

Authorities have stated that Lopez and Mondragon attracted Central American women to the United States with promises of employment.^[6] However, once the young women arrived, they were forced to work in the bars and cantinas of the defendants selling alcohol to male customers. The women were repeatedly subjected to threats of harm to themselves and family members in order to compel their servitude.^[7]

“Defendants Victor Omar Lopez and Oscar Mondragon were members of an international conspiracy that lured young women from Central America to Texas on false promises of a better life and then betrayed that promise by holding these women in a condition of forced servitude in restaurants and bars in Houston,” said Acting Assistant Attorney General Grace Chung Becker. “This is a despicable crime that harms all of society, and the Department of Justice will continue to aggressively work to prosecute human traffickers.”^[8]

According to U.S. Attorney DeGabrielle, “The excellent investigative efforts from our combined Human Trafficking Rescue Alliance were more than a match for the depraved indifference of these organized criminals.”^[9]

Thus far, co-defendants Maximino Mondragon and Walter Corea have pled guilty and are awaiting sentencing.^[10] Olga Mondragon, another co-defendant, who was convicted of charges stemming from her involvement in these schemes was sentenced to 84 months in prison. Co-defendant Maria Fuentes was found guilty of harboring the young women for financial gain and sentenced to 30 months in prison. Co-defendant Lorenza Reyes-Nunez was convicted of obstruction of justice and sentenced to 19 months imprisonment.^[11] Co-defendant Kerin Silva was convicted of Conspiracy to Smuggle Aliens and sentenced to 12 months home detention followed by three years of probation.^[12]

Human smuggling is prosecuted under 8 U.S.C. § 1324, the potential punishment can be up to 10 years in prison if the crime was committed for the purpose of commercial or private financial gain.^[13] In particular the U.S. has aggressively fought sex trafficking. In 2000, the U.S. Congress passed legislation to fight trafficking for purposes of engaging in sexual activity.^[14] That legislation makes it a crime for a person to recruit, entice, harbor, transport, or obtain by any means a person, knowing that force, fraud, or coercion will be used to cause that person to engage in a commercial sex act. A commercial sex act means “any sex act, on account of which anything of value is given to or received by any person.^[15] The punishment for an offense involving fraud, force, or coercion is a fine, imprisonment for any term of years or for life, or both.^[16]

Federal criminal defense attorney, Douglas McNabb, has written extensively on human trafficking. Some of his work in the area can be seen here.

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[1] Press Release, United States Department of Justice, Two Men Sentenced for Human Trafficking and Alien Smuggling Charges, April, 28, 2008 (available at http://www.usdoj.gov/opa/pr/2008/April/08_crt_350.html).
[2] Id.
[3] Id.
[4] Id.
[5] Id.
[6] Id.
[7] Id.
[8] Id.
[9] Id.
[10] Id.
[11] Id.
[12] Id.
[13] 18 U.S.C. § 1324.
[14] 18 U.S.C. § 1591.
[15] 18 U.S.C. §1591(c)(1).
[16] 18 U.S.C. §1591(b)(1).

Alleged Ex-Mob Boss Pleads Guilty to False Statements, Obstruction of Justice

An alleged ex-member of the New England mob has recently pleaded guilty to federal charges in a plea deal that could allow for his release from federal prison after nine months.^[1]

Francis Salemme, also known as Cadillac Frank, is thought to be the man who led the New England mob during the early 1990s.^[2] Salemme has admitted to lying to authorities during the negotiation of a 1999 plea deal. This occurred during an investigation of the FBI's corrupt relationship with gangsters James "Whitey" Bulger and Stephen "The Rifleman" Flemmi, both of whom were FBI informants.^[3]

Salemme stated that he misled investigators during those negotiations when asked about the 1993 killing of Boston nightclub owner Steven DiSarro.^[4] Salemme had told investigators that he believed Nicholas Bianco, another former Mafia leader, may have been involved in the murder.^[5]

Salemme has pleaded guilty to charges of obstruction of justice and making false statements, admitting that he lied about Bianco's involvement, but denying that he played any part in DiSarro's death.^[6]

In a 2004 indictment, Salemme was accused of watching his son, Francis Salemme Jr., strangle DiSarro. He was also alleged to have aided in the disposal of DiSarro’s body. The body of DiSarro remains missing and no one has been charged with his death.^[7]

Salemme remained in prison for over three years awaiting trial. Under the plea deal, it has been agreed that he should serve five years. Given credit for the time he's already served and earned good time, Salemme is expected to be released in January.^[8]

As a result of the 1999 negotiations, Salemme pleaded guilty to reduced charges in exchange for his testimony. A judge then reduced his racketeering sentence from 11 years to eight years.^[9]

Salemme's testimony led to the conviction of former FBI agent John J. Connolly Jr. on racketeering charges in 2002. Salemme testified that Connolly had tipped off him, Bulger and Flemmi prior to their indictement on racketeering charges in 1995.^[10]

False statements are covered by 18 U.S.C. § 1001(a), which makes it a crime for a person to “knowingly and willfully”:

• falsify, conceal, or cover up by any trick, scheme, or device a material fact;
• make any materially false, fictitious, or fraudulent statement or representation; or
• make or use any false writing or document knowing the same to contain any materially false, fictitious, or fraudulent statement or entry

”in any matter within the jurisdiction of the executive, legislative, or judicial branch of the Government of the United States.”^[11] The punishment for violating section 1001 is a fine, imprisonment for up to 5 years, or both.^[12]

Obstruction of justice is crime under 18 U.S.C. § 1503(a). That statute makes it is a crime for a person to corruptly influence, obstruct, or impede the due administration of justice.^[13] The punishment for a violation of section 1503(a) is a fine, imprisonment for up to 10 years, or both.^[14]

Federal criminal defense attorney, Douglas McNabb has written extensively on the federal crimes of false statements and obstruction of justice. Some of his work in these areas can be read in his blog here.

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[1] Denise Lavoie, Ex-Mob Boss Pleads Guilty in New Deal, The Associated Press, April 14, 2008 (available at www.ap.org).
[2] Id.
[3] Id.
[4] Id.
[5] Id.
[6] Id.
[7] Id.
[8] Id.
[9] Id.
[10] Id.
[11] 18 U.S.C. § 1001.
[12] Id.
[13] 18 U.S.C. § 1503(a).
[14] Id.

French Corporation Pleads Guilty to Conspiracy to Illegally Export Goods

According to authorities, Cryostar SAS, a French corporation, headquartered in Hesingue, France, has pleaded guilty to charges of conspiracy, illegal export, and attempted illegal export of cryogenic submersible pumps to Iran.^[1]

CRYOSTAR pled guilty before the U.S. District Court for the District of Columbia to one count of Conspiracy, one count of Export without an Export License, and one count of Attempted Export without an Export License. Under the written plea agreement, CRYOSTAR is to be fined $500,000 and be subject to corporate probation for two years once the company is sentenced in July 2008.^[2]

The evidence in this case stated that CRYOSTAR, a corporation conducting business all worldwide, specializes in the design and manufacture of cryogenic equipment, such as pumps, turbines, compressors and automatic filling stations that are used to transport and process natural gases at extremely cold temperatures.^[3]

Ebara International Corp., Inc. (“Ebara”) was a Delaware corporation with its principal place of business in Nevada.^[4] Ebara engaged in the business of designing and manufacturing cryogenic pumps for various uses, including for pumping fluid hydrocarbons that have been cooled to cryogenic temperatures. “TN” was a French company with a U.S. subsidiary.^[5]

In 2001, TN arranged to purchase cryogenic submersible pumps from Ebara for delivery to an Iranian company for installation at the Olefin Petrochemical Complexes in Iran.^[6] CRYOSTAR served as the middleman for TN and Ebara by purchasing the pumps from Ebara, then reselling them. In addition, CRYOSTAR would also falsely indicate that the final purchaser was a French company that would install the pumps in France, when all parties to the transaction knew that the ultimate and intended destination of the pumps was Iran.^[7]

The parties set forth their plan on a “matrix,” which they used as a roadmap. The “matrix” included various procedures to be followed by each company to protect their conduct from detection by United States law enforcement.^[8]

Following the procedures set forth in the “matrix,” the conspirators manufactured four pumps, and shipped them, in January 2003, for installation at the 9th Olefin Petrochemical Complex in Iran, (“First CRYOSTAR Order”). The total value of the First CRYOSTAR Order was approximately $746,756.^[9]

The conspirators prepared additional pumps for shipment to Iran in the fall of 2003. The total value of this second order was approximately $1,125,055, however this second shipment was halted once the investigation began.^[10]

According to investigators, the corporations attempted to cover up their illegal conduct by creating false correspondence confirming that none of the pumps were sent, or were intended to be sent, to Iran. None of the parties sought and obtained export licenses for either order.^[11]

18 U.S.C. § 371 covers conspiracy and that law states that if two or more persons conspire either to commit any offense against the United States, or to defraud the United States, or any agency thereof in any manner or for any purpose, and one or more of such persons do any act to effect the object of the conspiracy, each shall be fined under this title or imprisoned not more than five years, or both.^[12] If, however, the offense, the commission of which is the object of the conspiracy, is a misdemeanor only, the punishment for such conspiracy shall not exceed the maximum punishment provided for such misdemeanor.^[13]

Illegal exportation of goods or technology is penalized under the Export Administration Act of 1979.^[14] The statutes under this act make it unlawful for a defendant to export goods or technology from the United States when that exportation is in contravention to applicable law.^[15] Punishment under this act can include a fine of whichever is greater between up to five times the value of the exports involved or $50,000, or up to five year imprisonment or both.^[16]
Federal criminal defense attorney Douglas McNabb has previously written about the crime of conspiracy here.

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[1] Press Release, United States Department of Justice, French Corporation Pleads Guilty to Conspiracy, Illegal Export, and Attempted Illegal Export of Cryogenic Submersible Pumps to Iran (April 10, 2008) (available at http://www.bis.doc.gov/news/2008/doj04_10_08.html).
[2] Id.
[3] Id.
[4] Id.
[5] Id.
[6] Id.
[7] Id.
[8] Id.
[9] Id.
[10] Id.
[11] Id.
[12] 18 U.S.C. § 371.
[13] Id.
[14] 50 U.S.C. §§ 2401-2410.
[15] Id.
[16] 50 U.S.C. § 2410.

Governor of Puerto Rico Accused of Public Corruption

The Governor of Puerto Rico, Anibal Acevedo Vila, and a number of associates in the Puerto Rico, Washington D.C., and Philadelphia areas have been charged in an indictment that was recently unsealed in San Juan, Puerto Rico.^[1]

The charges upon which the indictment was issued include conspiracy, false statements, wire fraud, and federal program fraud and tax crimes related to campaign financing for the governor’s 1999-2000 and 2001-2002 campaign for Resident Commissioner of the Commonwealth of Puerto Rico and subsequent 2004 gubernatorial campaign.^[2]

The indictment accuses the defendants of conspiring to defraud the United States and violate various Federal Election Campaign Act provisions by having Puerto Rico businessmen make illegal contributions to pay off debts stemming from Acevedo Vilá’s 1999-2000 and 2001-2002 campaigns for Resident Commissioner of the Commonwealth of Puerto Rico.^[3]

According to the indictment, the conspiracy was carried out by Acevedo Vilá and his legal advisor, defendant Inclán Bird, soliciting, accepting, and then reimbursing illegal conduit contributions from Acevedo Vilá’s family members and staff.^[4] Conduit contributions are illegal campaign contributions made by one person in the name of another person.^[5] In addition, a group of Philadelphia-area businessmen solicited, accepted, and then reimbursed illegal conduit contributions from their own Philadelphia-area family members and staff for defendant Acevedo Vilá.^[6] Acevedo Vilá, acting in his official capacity, then aided the businessmen in attempting to obtain contracts from Puerto Rico government agencies.^[7]

In addition, the indictment also alleges that the defendants schemed to defraud the Puerto Rico Treasury Department of $7 million by fraudulently pledging to abide by a voluntary public funding law in defendant Acevedo Vilá’s campaign for governor of Puerto Rico in 2004.^[8]

According to the indictment, Acevedo Vilá and his associates carried out unreported fund-raising and made unrecorded vendor payments in an effort to raise and spend far more than the limited amount which was agreed upon.^[9] The indictment states that one significant aspect of this fraud was to pay for large and unreported debts to the campaign’s public relations and media company by having businessmen use large amounts of money from personal or corporate funds.^[10]

The indictment further alleges that the defendants accepted numerous forms of personal income from funds related to Acevedo Vilá’s campaigns or official position and failed to report those funds on income tax returns.^[11]

Conspiracy is covered under 18 U.S.C. § 371 which states that if two or more persons conspire either to commit any offense against the United States, or to defraud the United States, or any agency thereof in any manner or for any purpose, and one or more of such persons do any act to effect the object of the conspiracy, each shall be fined under this title or imprisoned not more than five years, or both.^[12] If, however, the offense, the commission of which is the object of the conspiracy, is a misdemeanor only, the punishment for such conspiracy shall not exceed the maximum punishment provided for such misdemeanor.^[13]

Defendants were also charged under 18 U.S.C. 1001(a)(2) for making false statements. This statute makes it a crime for a person to make any materially false, fictitious, or fraudulent statement or representation in any matter within the jurisdiction of the Executive branch. The punishment for such a violation is likewise, a fine, imprisonment for up to five years, or both.^[14]

Wire fraud, another crime which the defendants are accused of committing, is covered under 18 U.S.C. §1343 whereunder it states that whoever, having devised or intending to devise any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises, transmits or causes to be transmitted by means of wire, radio, or television communication in interstate or foreign commerce, any writings, signs, signals, pictures, or sounds for the purpose of executing such scheme or artifice, shall be fined under this title or imprisoned not more than 20 years, or both. If the violation affects a financial institution, such person shall be fined not more than $1,000,000 or imprisoned not more than 30 years, or both.^[15]

Finally, Acevedo Vilá is accused of violating 26 U.S.C. § 7206 which makes it unlawful for any person who willfully makes and subscribes any tax return, statement, or other document, which contains or is verified by a written declaration that it is made under the penalties of perjury, and which he does not believe to be true and correct as to every material matter.^[16]

Federal criminal defense attorney Douglas McNabb has previously written about the crimes of conspiracy, false statements, and wire fraud in his Federal Crimes blog which can be found here.

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[1] Press Release, United States Department of Justice, Governor of Puerto Rico and Twelve Others Indicted for Election Related Crimes (March 27, 2008) (available at http://www.usdoj.gov/opa/pr/2008/March/08_crm_243.html).
[2] Id.
[3] Id.
[4] Id.
[5] Id.
[6] Id.
[7] Id.
[8] Id.
[9] Id.
[10] Id.
[11] Id.
[12] 18 U.S.C. § 371.
[13] Id.
[14] 18 U.S.C. § 1001.
[15] 18 U.S.C. § 1343.
[16] 26 U.S.C. § 7206(1).