Federal officials announced the final record-breaking results of Operation Team Player, the nationwide law enforcement effort aimed at combatting counterfeit sports merchandise.
Special agents from U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) teamed with officers from U.S. Customs and Border Protection (CBP) to target, seize and investigate criminal businesses smuggling international shipments of counterfeit merchandise as it entered the United States. Agents also targeted warehouses, stores, flea markets, online stores and street vendors. The operation, which began in June, netted 397,140 items including fake jerseys, ball caps, T-shirts, jackets and other souvenirs. The items had a manufacturer's suggested retail price (MSRP) of more than $37.8 million – more than the previous six Super Bowl enforcement efforts combined.
HSI and CBP also teamed with the U.S. Postal Inspection Service (USPIS), and state and local police departments around the country – all in partnership with the NFL and other major sports leagues. The operation was coordinated by the National Intellectual Property Rights Coordination Center (IPR Center) in Washington, D.C.
"The incredible results this year are a tribute to the teamwork displayed between our agencies working together at the IPR Center," said HSI Executive Associate Director James Dinkins. "But it is also an eye-opening reminder of the breadth of this significant problem that we face. Counterfeiters are crippling the U.S. economy, robbing small businesses of much-needed income during tough economic times."
Following the Super Bowl, in addition to the items seized, law enforcement officers made 76 arrests in relation to Operation Team Player: three at the federal level and 73 at the state and local level. Additionally, 163 counterfeit tickets with an estimated value of $169,200 were also seized. During a one-week blitz at various shipping facilities, CBP officers were able to seize more than 73,000 items with an MSRP of more than $7 million. HSI special agents also conducted enforcement operations at the victory parade in Seattle seizing an additional 1,300 items.
"The continued coordination of the federal partners is integral to the success of Intellectual Property Rights enforcement," said CBP Assistant Commissioner Susan T. Mitchell. "Together with partners like ICE HSI, USPIS, and the IPR Center we are able to protect American businesses from criminal activities that affect their bottom line."
For the first time, Mexico's Servicio de Administracion Tributaria (SAT) also conducted operations related to sports merchandise seizures during Super Bowl week. Working with the IPR Center, SAT conducted "Operation Fumble" in some of the largest cities of Mexico, seizing more than 3,000 items worth more than 1.5 million pesos.
Wednesday, February 19, 2014
As result of #OperationTresCiudades, Eddi Ramirez Convicted of Running Large-Scale Cocaine Trafficking Network in Central Illinois
A jury has found a Paxton, Illinois man, Eddi Ramirez, 32, guilty of running a cocaine trafficking network that regularly distributed large quantities of cocaine throughout central Illinois including Decatur, Springfield, and Champaign. The jury deliberated approximately one and one-half hours before finding Ramirez, aka “Migo,” guilty of conspiring with others to distribute cocaine and distribution of cocaine.
During the seven days of trial, the evidence the government presented included that obtained from a court-authorized wiretap of seven of Ramirez’s telephones, the seizure of approximately $855,716 in cash; nearly nine kilograms (nearly 20 pounds) of cocaine seized in Springfield and Elgin and Houston, Texas; and approximately three kilograms (six pounds) of heroin. That evidence established that Ramirez led a drug organization from 2011 to September 2012 that was responsible for the importation of more than 200 pounds of cocaine from Mexico.
Evidence further established that Ramirez used multiple sources in Texas, Arizona, and Chicago, various couriers to transport the cocaine to central Illinois and then provided the cocaine, valued at more than $3 million, to dealers in central Illinois. Government evidence also established that Ramirez used a house at 76 E. Court Drive, in Decatur, Illionis, as a “stash” house to store and package cocaine and to move drug money.
Sentencing for Ramirez is scheduled for May 21, 2014. Ramirez faces a statutory mandatory minimum penalty of 20 years to life in prison because the government has filed notice that Ramirez has a prior felony drug conviction. Ramirez has remained in law enforcement custody since his arrest in September 2012.
In total, 19 defendants have been charged for their ties to Rameriz and his operation. All the defendants, except three who remain fugitives, have previously entered pleas of guilty for their respective roles in the trafficking network or their relation to it.
Known as Operation Tres Ciudades (Three Cities) the Organized Crime Drug Enforcement Task Force (OCDETF) was led by the Drug Enforcement Administration, Springfield Resident Office. Law enforcement agencies participating in this investigation include the FBI, Springfield Division; Decatur Police Department; Springfield Police Department; the Illinois State Police, the Central Illinois Enforcement Group; the Illinois Attorney General’s Office; and the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives. The U.S. Immigration and Customs Enforcement Homeland Security Investigations also provided assistance in the investigation. Assistant U.S. Attorney Timothy A. Bass is prosecuting the cases in the Central District of Illinois, Springfield and Urbana Divisions.
“Law enforcement, especially DEA, FBI, the Illinois Attorney General’s Office, and the Decatur Police Department, devoted significant resources and tireless work toward this successful prosecution,” said Jim Lewis, U.S. Attorney for the Central District of Illinois. “Their hard work and teamwork over the past few years has shut down a major pipeline that pumped volumes of illegal drugs into our community. They truly served the community.”
Special Agent in Charge Jack Riley, DEA, Chicago Division, praised the hard work and dedication of all the law enforcement officers and prosecutors who worked tirelessly to bring this case to a successful conclusion. “The conviction of Eddi Ramirez sends a clear message that the law enforcement community will use every legal means available to bring those who traffic narcotics to justice. Our top priority is dismantling these drug trafficking organizations who peddle their poison in our communities. Our joint efforts in this investigation have made a real impact on the supply of drugs in Central Illinois,” he added.
Decatur Police Chief Todd Walker said, “The conviction of Eddi Ramirez demonstrates yet again the importance and value of local and federal law enforcement authorities working together. I appreciate the work of the investigators and the prosecutor who worked diligently to expose and shut down a major narcotics trafficking organization. This was a complex investigation that transcended state lines into Decatur and Central Illinois. As a result of these efforts, the local drug trade in our region was disrupted and the quality of life improved for those jurisdictions impacted by this substantial drug organization.”
David A. Ford, Special Agent in Charge, FBI Springfield, stated, “The Organized Crime Drug Enforcement Task Force (OCDETF) program was established to mount a comprehensive attack against organized drug trafficking. The guilty verdict in this international drug trafficking case demonstrates the strong working partnership between federal and local law enforcement agencies and shows the effectiveness of working together on the same team. We are committed to pursuing violent drug traffickers in order to keep our neighborhoods safe for our citizens.”
“This successful prosecution has significantly slowed the flow of these illegal drugs into Illinois,” said Illinois Attorney General Lisa Madigan. “My office’s investigators will continue to work closely with our federal law enforcement partners to crack down on the drug trade in our communities.”
In addition to Ramirez, defendants charged as a result of, or related to Operation Tres Ciudades (Three Cities), include the following:
In addition to the defendants charged with Ramirez, another seven defendants charged had ties to Ramirez:
At sentencing, the offense of conspiracy to distribute five or more kilograms of cocaine carries a statutory mandatory minimum penalty of 10 years to life in prison. If a defendant has one or more prior felony drug convictions, the mandatory minimum penalty is 20 years to life in prison. With two or more prior felony drug convictions, the statutory penalty is life in prison.
During the seven days of trial, the evidence the government presented included that obtained from a court-authorized wiretap of seven of Ramirez’s telephones, the seizure of approximately $855,716 in cash; nearly nine kilograms (nearly 20 pounds) of cocaine seized in Springfield and Elgin and Houston, Texas; and approximately three kilograms (six pounds) of heroin. That evidence established that Ramirez led a drug organization from 2011 to September 2012 that was responsible for the importation of more than 200 pounds of cocaine from Mexico.
Evidence further established that Ramirez used multiple sources in Texas, Arizona, and Chicago, various couriers to transport the cocaine to central Illinois and then provided the cocaine, valued at more than $3 million, to dealers in central Illinois. Government evidence also established that Ramirez used a house at 76 E. Court Drive, in Decatur, Illionis, as a “stash” house to store and package cocaine and to move drug money.
Sentencing for Ramirez is scheduled for May 21, 2014. Ramirez faces a statutory mandatory minimum penalty of 20 years to life in prison because the government has filed notice that Ramirez has a prior felony drug conviction. Ramirez has remained in law enforcement custody since his arrest in September 2012.
In total, 19 defendants have been charged for their ties to Rameriz and his operation. All the defendants, except three who remain fugitives, have previously entered pleas of guilty for their respective roles in the trafficking network or their relation to it.
Known as Operation Tres Ciudades (Three Cities) the Organized Crime Drug Enforcement Task Force (OCDETF) was led by the Drug Enforcement Administration, Springfield Resident Office. Law enforcement agencies participating in this investigation include the FBI, Springfield Division; Decatur Police Department; Springfield Police Department; the Illinois State Police, the Central Illinois Enforcement Group; the Illinois Attorney General’s Office; and the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives. The U.S. Immigration and Customs Enforcement Homeland Security Investigations also provided assistance in the investigation. Assistant U.S. Attorney Timothy A. Bass is prosecuting the cases in the Central District of Illinois, Springfield and Urbana Divisions.
“Law enforcement, especially DEA, FBI, the Illinois Attorney General’s Office, and the Decatur Police Department, devoted significant resources and tireless work toward this successful prosecution,” said Jim Lewis, U.S. Attorney for the Central District of Illinois. “Their hard work and teamwork over the past few years has shut down a major pipeline that pumped volumes of illegal drugs into our community. They truly served the community.”
Special Agent in Charge Jack Riley, DEA, Chicago Division, praised the hard work and dedication of all the law enforcement officers and prosecutors who worked tirelessly to bring this case to a successful conclusion. “The conviction of Eddi Ramirez sends a clear message that the law enforcement community will use every legal means available to bring those who traffic narcotics to justice. Our top priority is dismantling these drug trafficking organizations who peddle their poison in our communities. Our joint efforts in this investigation have made a real impact on the supply of drugs in Central Illinois,” he added.
Decatur Police Chief Todd Walker said, “The conviction of Eddi Ramirez demonstrates yet again the importance and value of local and federal law enforcement authorities working together. I appreciate the work of the investigators and the prosecutor who worked diligently to expose and shut down a major narcotics trafficking organization. This was a complex investigation that transcended state lines into Decatur and Central Illinois. As a result of these efforts, the local drug trade in our region was disrupted and the quality of life improved for those jurisdictions impacted by this substantial drug organization.”
David A. Ford, Special Agent in Charge, FBI Springfield, stated, “The Organized Crime Drug Enforcement Task Force (OCDETF) program was established to mount a comprehensive attack against organized drug trafficking. The guilty verdict in this international drug trafficking case demonstrates the strong working partnership between federal and local law enforcement agencies and shows the effectiveness of working together on the same team. We are committed to pursuing violent drug traffickers in order to keep our neighborhoods safe for our citizens.”
“This successful prosecution has significantly slowed the flow of these illegal drugs into Illinois,” said Illinois Attorney General Lisa Madigan. “My office’s investigators will continue to work closely with our federal law enforcement partners to crack down on the drug trade in our communities.”
In addition to Ramirez, defendants charged as a result of, or related to Operation Tres Ciudades (Three Cities), include the following:
- Felipe Quionones, Jr., 33, of Houston, Texas, pled guilty November 15, 2013, to conspiracy to possess with intent to distribute cocaine; sentencing scheduled April 3.
- Juan H. Vorrath, 56, of Houston, Texas, pled guilty June 27, 2013, to conspiracy to possess with intent to distribute cocaine; sentencing scheduled March 5, 2014.
- Gabriel Lopez Saucedo, aka “Cuz,” 28, of Elgin, Illinois, pled guilty July 10, 2013, to conspiracy to possess with intent to distribute cocaine; sentencing scheduled April 4, 2014.
- Leonardo Aldape Hernandez, 24, of Calumet City, Illinois, pled guilty July 10, 2013, to conspiracy to possess with intent to distribute cocaine; was sentenced on January 24, 2014, to 10 years in federal prison.
- Erica Kulak, 25, of Elgin, Illinois, pled guilty February 7, 2013, to conspiracy to possess with intent to distribute cocaine, and two counts distribution of cocaine; sentencing April 4, 2014.
- Teravena Kapraun, aka “Tera,” “Jen,” 23, of Decatur, Illinois, pled guilty on May 14, 2013, to conspiracy to possess with intent to distribute cocaine; sentencing scheduled April 4, 2014.
- Jourdan Hullinger, 22, of Springfield, Illinois, pled guilty on December 11, 2013, to conspiracy to possess with intent to distribute cocaine; sentencing scheduled April 30, 2014.
- Doris Morel Del-Rosario, 37, of Houston, Texas, pled guilty May 31, 2013, to conspiracy to possess with intent to distribute cocaine, sentencing scheduled April 4, 2014.
- Jose Aguilar Mendez, 22, last known address Decatur, Illinois, is a fugitive.
- Juan Alvarado, 32, last known address Decatur, Illinois, was charged with conspiracy to possess with intent to distribute cocaine, a fugitive.
- Geraro Gamboa, 22, last known address Rantoul, Illinois, was charged with conspiracy to possess with intent to distribute cocaine, a fugitive.
In addition to the defendants charged with Ramirez, another seven defendants charged had ties to Ramirez:
- James Lampley, 56, of Decatur, pled guilty March 13, 2013, to one count each of conspiracy to distribute cocaine, and possession of cocaine and heroin with intent to distribute; sentencing scheduled March 4, 2014;
- Guadalupe Onate Herrera, 29, of Calumet City, Illinois, charged with re-entry of a deported alien, pled guilty April 4, 2013; sentenced April 25, 2013, to time served;
- Alex Gardner, 30, of Springfield, Illinois, pled guilty March 13, 2013, to possession with intent to distribute cocaine; sentencing scheduled March 10, 2014;
- Anthony Cunningham, aka “Tone,” 27, of Springfield, Illinois, pled guilty February 28, 2013, to distribution of 28 grams or more of crack cocaine; sentenced September 9, 2013, to 150 months (12 ½ years) in prison;
- Orlandon L. Roberson, 38, of Springfield, Illinois, pled guilty February 28, 2013 to possession with intent to distribute 28 grams or more of crack cocaine; sentenced August 5, 2013, to 130 months (10 years, 10 months) in federal prison;
- Bernardo Shanklin, 32, of Springfield, pled guilty May 30, 2012, to two counts of distribution of cocaine; one count of possession with intent to distribute cocaine; sentenced March 8, 2013, to 108 months (nine years) in federal prison;
- Michael A. Gant, 34, of Springfield; pled guilty May 31, 2012, to possession with intent to distribute cocaine and possession of a firearm in furtherance of a drug trafficking crime; sentenced October 5, 2012, to 66 months (five-and-a-half years) in federal prison.
At sentencing, the offense of conspiracy to distribute five or more kilograms of cocaine carries a statutory mandatory minimum penalty of 10 years to life in prison. If a defendant has one or more prior felony drug convictions, the mandatory minimum penalty is 20 years to life in prison. With two or more prior felony drug convictions, the statutory penalty is life in prison.
Navy Seal Imposter Arrested
The U.S. Marshals Service, Bureau of Alcohol, Tobacco and Firearms and the Benton County Sheriff’s Office arrested Arthur James (AJ) Dicken of Garfield, Arkansas on charges stemming from firearm violations. Dicken was wanted by the Carson City, Nevada Sheriff's Office for Possession of a Firearm by a Person Convicted of a Felony.
Dicken is alleged to have passed himself off as a highly decorated Navy SEAL, who had served in dozens of covert combat missions from the jungles of Vietnam to the caves of Afghanistan. Dicken, as it was later confirmed, had never served in the military. Dicken often wore the Navy SEAL trident insignia and loved to show off his numerous awards to include two Congressional Medal of Honor awards.
The charges stemmed from when Dicken operated a military style self-defense school in Carson City, Nevada. The training he provided included firearms and self-defense tactics. Dicken was exposed after he was profiled on both 20/20 and Inside Edition as the result of alleged criminal acts. Additional allegations include embezzlement and fraud where Dicken bilked investors out of more than $850,000 for a proposed new international security firm.
U.S. Marshals in Reno, Nevada, working closely with the Carson City, Nevada Sheriff’s Office, adopted the case and determined Dicken was likely in the Northwest Arkansas area. Deputy U.S. Marshals in Western Arkansas began working the case and determined Dicken was residing on Slate Gap Road in Garfield, Arkansas. After careful coordination with the Benton County Sheriff’s Office, Dicken was arrested without incident in the early morning hours of February 14, 2014, where he was found residing in small recreational vehicle. Dicken was transported to the Benton County Sheriff’s Office, where he awaits extradition to Nevada to face his pending charges.
Dicken is alleged to have passed himself off as a highly decorated Navy SEAL, who had served in dozens of covert combat missions from the jungles of Vietnam to the caves of Afghanistan. Dicken, as it was later confirmed, had never served in the military. Dicken often wore the Navy SEAL trident insignia and loved to show off his numerous awards to include two Congressional Medal of Honor awards.
The charges stemmed from when Dicken operated a military style self-defense school in Carson City, Nevada. The training he provided included firearms and self-defense tactics. Dicken was exposed after he was profiled on both 20/20 and Inside Edition as the result of alleged criminal acts. Additional allegations include embezzlement and fraud where Dicken bilked investors out of more than $850,000 for a proposed new international security firm.
U.S. Marshals in Reno, Nevada, working closely with the Carson City, Nevada Sheriff’s Office, adopted the case and determined Dicken was likely in the Northwest Arkansas area. Deputy U.S. Marshals in Western Arkansas began working the case and determined Dicken was residing on Slate Gap Road in Garfield, Arkansas. After careful coordination with the Benton County Sheriff’s Office, Dicken was arrested without incident in the early morning hours of February 14, 2014, where he was found residing in small recreational vehicle. Dicken was transported to the Benton County Sheriff’s Office, where he awaits extradition to Nevada to face his pending charges.
Getaway Driver Sentenced to 40 Years in Prison in Murder of Gas Station Manager
Jose A. Santiago, 36, of Springfield, Massachusetts, was sentenced in Providence, Rhode Island, to serve 40 years in prison for his role in the September 2010 armed robbery and murder of Woonsocket, Rhode Island gas station manager David D. Main.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, United States Attorney Peter F. Neronha of the District of Rhode Island, Special Agent in Charge Vincent B. Lisi of the FBI’s Boston Field Office, Colonel Steven G. O’Donnell of the Rhode Island State Police and Chief Thomas S. Carey of the Woonsocket Police Department made the announcement.
According to court documents, Main, 49, was chased, shot to death at close range, and robbed by Jason Wayne Pleau, 36, of Providence, as he approached the doorstep of a Woonsocket bank where he was preparing to deposit thousands of dollars in cash belonging to the gas station. Santiago was the getaway driver of a box truck parked a block away from the bank in which Pleau fled moments after he robbed and fatally shot Main.
Pleau, who pleaded guilty on July 31, 2013, to conspiracy to commit Hobbs Act robbery; Hobbs Act robbery; and carrying, using, and discharging a firearm during and in relation to a federal crime of violence resulting in death, was sentenced in October 2013 to serve life in prison.
Santiago pleaded guilty on September 5, 2013, to conspiracy to commit Hobbs Act robbery; Hobbs Act robbery; and carrying, using, and discharging a firearm during and in relation to a federal crime of violence resulting in death. No plea agreement was filed in this matter. At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Santiago to serve five years of supervised release upon completion of his prison term.
Co-defendant Kelly Marie Lajoie, 36, of Springfield, pleaded guilty on December 9, 2011, to Hobbs Act conspiracy, aiding and abetting a Hobbs Act robbery, and use of a firearm during a federal crime of violence. Lajoie is scheduled to be sentenced on February 19, 2014.
The matter was investigated by the Woonsocket Police Department, Rhode Island State Police, and the FBI, with the assistance of the U.S. Marshals Service and the Rhode Island National Guard.
The case was prosecuted by Assistant U.S. Attorneys Adi Goldstein and William J. Ferland of the District of Rhode Island and Trial Attorney Jacabed Rodriguez-Coss of the Criminal Division’s Capital Case Section.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, United States Attorney Peter F. Neronha of the District of Rhode Island, Special Agent in Charge Vincent B. Lisi of the FBI’s Boston Field Office, Colonel Steven G. O’Donnell of the Rhode Island State Police and Chief Thomas S. Carey of the Woonsocket Police Department made the announcement.
According to court documents, Main, 49, was chased, shot to death at close range, and robbed by Jason Wayne Pleau, 36, of Providence, as he approached the doorstep of a Woonsocket bank where he was preparing to deposit thousands of dollars in cash belonging to the gas station. Santiago was the getaway driver of a box truck parked a block away from the bank in which Pleau fled moments after he robbed and fatally shot Main.
Pleau, who pleaded guilty on July 31, 2013, to conspiracy to commit Hobbs Act robbery; Hobbs Act robbery; and carrying, using, and discharging a firearm during and in relation to a federal crime of violence resulting in death, was sentenced in October 2013 to serve life in prison.
Santiago pleaded guilty on September 5, 2013, to conspiracy to commit Hobbs Act robbery; Hobbs Act robbery; and carrying, using, and discharging a firearm during and in relation to a federal crime of violence resulting in death. No plea agreement was filed in this matter. At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Santiago to serve five years of supervised release upon completion of his prison term.
Co-defendant Kelly Marie Lajoie, 36, of Springfield, pleaded guilty on December 9, 2011, to Hobbs Act conspiracy, aiding and abetting a Hobbs Act robbery, and use of a firearm during a federal crime of violence. Lajoie is scheduled to be sentenced on February 19, 2014.
The matter was investigated by the Woonsocket Police Department, Rhode Island State Police, and the FBI, with the assistance of the U.S. Marshals Service and the Rhode Island National Guard.
The case was prosecuted by Assistant U.S. Attorneys Adi Goldstein and William J. Ferland of the District of Rhode Island and Trial Attorney Jacabed Rodriguez-Coss of the Criminal Division’s Capital Case Section.
Guilty Plea in Golf Course Scheme that Swindled Millions from Investors
A man who fraudulently convinced 11 persons to loan him a total of $3.6 million for the purchase of a golf course near Gardnerville, Nevada, pleaded guilty to 24 federal felony charges, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Scott H. Summerhays, 55, formerly of the South Lake Tahoe area, but currently in custody in Reno, pleaded guilty during the first day of trial to 14 counts of wire fraud, seven counts of money laundering, two counts of identity theft, and one count of aggravated identity theft.
Summerhays, who was indicted in February 2012, faces over 30 years in prison and fines of up to $5.7 million and is scheduled to be sentenced on May 29, 2014, at 10:00 a.m. by U.S. District Judge Larry R. Hicks.
“This is the second person to be convicted or sentenced of federal investment fraud charges in the northern Nevada area this week,” said U.S. Attorney Bogden. “In both cases, the defendants led their victims to believe that they were legitimate businessmen and used fraudulent documents to support their scheme. If you are considering a financial arrangement with someone, be sure to check the veracity of any documents they provide you, as fraudulent documents are common and easy to create.”
According to the court records, during 2008 to 2010, Summerhays represented to potential investors that he was purchasing the Genoa Lakes Golf Club located west of Gardnerville, Nevada, for $17 million and needed a short-term loan to complete the deal because his own money was tied up in a trust. Summerhays also represented to the potential investors that he solicited funds for oil and gas investments in Texas and owned more than $30 million in Berkshire, Las Vegas Sands, and MGM stocks. Summerhays showed some of the investors a fraudulent investment account statement. Summerhays also claimed that he was in partnership with Las Vegas Sands owner Sheldon Aldelson and showed potential investors a partnership agreement containing the forged signature of Adelson. In reality, Summerhays had no investment portfolio, and Adelson never heard of Summerhays or had any partnerships with him. Using this scheme, Summerhays was able to convince 11 persons to loan him money for the golf course, totaling approximately $3.6 million. None of the investors were repaid, and they lost all of the money they loaned Summerhays.
The case was investigated by the FBI and IRS-Criminal Investigation and prosecuted by Assistant U.S. Attorneys Ronald C. Rachow and Megan Rachow.
Scott H. Summerhays, 55, formerly of the South Lake Tahoe area, but currently in custody in Reno, pleaded guilty during the first day of trial to 14 counts of wire fraud, seven counts of money laundering, two counts of identity theft, and one count of aggravated identity theft.
Summerhays, who was indicted in February 2012, faces over 30 years in prison and fines of up to $5.7 million and is scheduled to be sentenced on May 29, 2014, at 10:00 a.m. by U.S. District Judge Larry R. Hicks.“This is the second person to be convicted or sentenced of federal investment fraud charges in the northern Nevada area this week,” said U.S. Attorney Bogden. “In both cases, the defendants led their victims to believe that they were legitimate businessmen and used fraudulent documents to support their scheme. If you are considering a financial arrangement with someone, be sure to check the veracity of any documents they provide you, as fraudulent documents are common and easy to create.”
According to the court records, during 2008 to 2010, Summerhays represented to potential investors that he was purchasing the Genoa Lakes Golf Club located west of Gardnerville, Nevada, for $17 million and needed a short-term loan to complete the deal because his own money was tied up in a trust. Summerhays also represented to the potential investors that he solicited funds for oil and gas investments in Texas and owned more than $30 million in Berkshire, Las Vegas Sands, and MGM stocks. Summerhays showed some of the investors a fraudulent investment account statement. Summerhays also claimed that he was in partnership with Las Vegas Sands owner Sheldon Aldelson and showed potential investors a partnership agreement containing the forged signature of Adelson. In reality, Summerhays had no investment portfolio, and Adelson never heard of Summerhays or had any partnerships with him. Using this scheme, Summerhays was able to convince 11 persons to loan him money for the golf course, totaling approximately $3.6 million. None of the investors were repaid, and they lost all of the money they loaned Summerhays.
The case was investigated by the FBI and IRS-Criminal Investigation and prosecuted by Assistant U.S. Attorneys Ronald C. Rachow and Megan Rachow.
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