Immigration and Customs Enforcement is the principal investigative arm of the U.S. Department of Homeland Security (DHS) and the second largest investigative agency in the federal government. Created in 2003 through a merger of the investigative and interior enforcement elements of the U.S. Customs Service and the Immigration and Naturalization Service, ICE now has more than 20,000 employees in more than 400 offices in the United States and 46 foreign countries.
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3 conspirators plead guilty to smuggling counterfeit goods through the Port of Baltimore
BALTIMORE - Three individuals plead guilty in federal court to conspiring to smuggle into the United States counterfeit shoes, handbags and wrist watches manufactured in Malaysia and China and trafficking in counterfeit goods. The guilty pleas resulted from an investigation conducted by the U.S. Immigration and Customs Enforcement (ICE) Office of Homeland Security Investigations (HSI).
Kim Yip Ng, aka "James Lee," 43, of Whitestone, N.Y.; Lidan Zhang, aka "Mrs. Li," 39, of the People's Republic of China; and Josephine O. Zhou, 32, of Brooklyn, N.Y., pleaded guilty in separate hearings.
Ng pleaded guilty on Dec. 2, Zhou pleaded guilty on Dec. 1 and Zhang pleaded guilty on Nov. 30.
According to their guilty pleas, from 2008 to 2010 the defendants conspired to smuggle counterfeit Coach handbags manufactured in China and elsewhere into the United States for sale. Part of the sales proceeds were returned to manufacturers and middlemen in China to pay for additional counterfeit goods.
The defendants and their co-conspirators paid thousands of dollars in smuggling fees to an undercover business located in Maryland to clear counterfeit clothing and accessories through U.S. Customs and Border Protection (CBP) at the Port of Baltimore and deliver the goods to customers in the United States. On Oct. 15, 2009, Zhou received a container loaded with approximately 25,000 counterfeit Coach handbags through the undercover business. On Dec. 10, 2009, Ng and Zhang received a container loaded with approximately 25,000 counterfeit Coach handbags through the undercover business. The defendants admit that the counterfeit handbags were sold to other vendors and to the general public.
The defendants admit that the loss attributable to the counterfeited merchandise was between $400,000 and $1 million. As part of their plea agreements, Zhang agrees to forfeit $49,000 seized at the time of her arrest in March 2010 and a BMW sedan; and NG agrees to forfeit a mini-van.
The defendants face a maximum sentence of five years in prison for the conspiracy and a maximum of 10 years in prison for trafficking in counterfeit goods.
Assistant U.S. Attorney James G. Warwick is prosecuting the case.
Anyone with information related to counterfeit merchandise is encouraged to contact law enforcement. The public may call ICE's 24-hour toll-free hotline at: 1 (866) DHS-2ICE.
Border Enforcement Security Task Force cracks down on crime at Miami Seaport
MIAMI - U.S. Immigration and Customs Enforcement (ICE) Director John Morton hosted a press conference in Miami Wednesday to announce enforcement efforts by the Miami Border Enforcement Security Task Force (BEST) in protecting U.S. maritime borders, including the latest indictments and arrests related to a narcotics trafficking conspiracy through the Port of Miami.
BEST was established in Miami in November 2008 and at other major seaports because U.S. ports and maritime borders are subject to significant threats to national security. The local Miami BEST has three teams covering the Miami Seaport, Miami River, Port Everglades Seaport and all maritime smuggling activities in Miami-Dade and Broward counties.
The mission of the BEST program is to identify, disrupt, and dismantle organizations that seek to exploit vulnerabilities in the U.S. border through increased information sharing and collaboration among partner agencies. The 21 BESTs around the country incorporate personnel from ICE Homeland Security Investigations (HSI); the U.S. Customs and Border Protection (CBP) Office of Field Operations and Office of Border Patrol; the Drug Enforcement Administration (DEA); the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); the Federal Bureau of Investigation (FBI); the U.S. Coast Guard; the U.S. Attorney's Office; and other key federal, state, local and foreign law enforcement agencies. Together, BEST is focused on the identification, prioritization, and investigation of emerging threats.
ICE Director John Morton said, "HSI Border Enforcement Security Task Forces have continuously proven themselves to be a model law enforcement partnership in our efforts to confront national security threats to our ports of entry across the country. By leveraging the combined investigative expertise of our domestic and international partners on the BEST, we are able to fully and effectively address criminal activity that could undermine and threaten the Port of Miami. Most recently, ICE HSI special agents and task force officers assigned to the Miami Seaport Border Security Task Force uncovered, infiltrated and dismantled a conspiracy circumventing the security and Customs protocols established at the Port of Miami."
U.S. Attorney Wifredo Ferrer stated, "Since September 11, the number one priority of the Department of Justice and this U.S. Attorney's Office has been to protect our national and domestic security. This includes helping our law enforcement partners keep our borders, including our seaports and airports, safe."
On Tuesday, ICE HSI special agents, assisted by DEA special agents, arrested six individuals, who were charged with conspiracy to import cocaine, heroin, and marijuana and conspiracy to possess with intent to distribute cocaine, heroin, and marijuana. Arrested were longshoremen Albert W. Hines, 30, of Pembroke Pines, Fla.; Michael Canada, 30, of Miramar, Fla.; Alexander Terrell Pratt, 33, of Miami; Santonio Riou, 33, of Miami; Jessie Lamons, 58, of Miami; and Morris Henderson, 32, of Miami, who is currently in federal custody on ecstasy trafficking and weapons charges.
Francisco Gonzalez, 52, of Coral Springs, Fla. Devin Jackson, 42, residing in Costa Rica; Climaco Asprilla, 37, residing in Panama; and Mickey Honeyghan, 39, of Jamaica are also charged in the 20-count indictment. Longshoreman Vondre Asbury, 24, of Miami, was also previously arrested in February 2009, and is currently in federal prison on cocaine trafficking and importation charges.
The investigation, dubbed "Operation Gangplank," began in July 2007 after ICE HSI agents and task force officers from the Miami-Dade Police Department, DEA agents, and CBP officers at the Miami Seaport uncovered that longshoremen were actively involved in an international conspiracy that involved the importation of multiple kilograms and millions of dollars worth of cocaine, heroin, and marijuana through the Port of Miami and Port Everglades.
The investigation revealed that certain members of the International Longshoremen's Association (ILA) were smuggling narcotics through these ports for suppliers located in Jamaica, Costa Rica, and Panama. The narcotics were often secreted in the chassis that the cargo containers were loaded on and other hiding places throughout the ships.
The conspiracy alleged in the indictment began in 2007 and ended in January 2010, during which time the Miami Seaport BEST seized narcotics with a street value of more than $6 million, including approximately 72 kilograms of cocaine, 2.5 kilograms of heroin, and 1,648 kilograms or 3,625 pounds of marijuana.
This case is being prosecuted by Assistant U.S. Attorney Brian Dobbins.
In addition to the "Operation Gangplank" arrests and seizures, the Miami Seaport BEST has led or taken part in investigations resulting in over 140 other arrests and the seizure of more than 11,000 pounds of cocaine, more than 8,000 pounds of marijuana, more than 3,000 ecstasy pills, more than $175,000 in cash, 19 vehicles, 16 weapons, and more than 1,400 rounds of ammunition.
Seaport security is a top priority for ICE and its DHS partners, and the officers and agents assigned to BESTs have the technical expertise, resources and technology to detect illegal merchandise and contraband passing through seaports and across land borders.
Director Morton added, "Those who seek to exploit our seaports, airports or border crossings should be on notice. We're watching, and we'll catch you. And when we do, be prepared to spend a long time behind bars."
If convicted on all charges, they each face up to life in prison.
Third conspirator sentenced in 55 million dollar visa fraud scheme
ORLANDO, Fla. - Eduardo Dozzi Barbugli, 31, was sentenced to 20 months in federal prison Wednesday for his involvement in a $55 million visa fraud conspiracy, following an investigation led by the U.S. Immigration and Customs Enforcement (ICE) Office of Homeland Security Investigations (HSI).
Barbugli was convicted of conspiracy, visa fraud, and alien smuggling in relation to an elaborate scheme which allowed illegal aliens to work at jobs that normally would have been filled by U.S. citizens. As part of his sentence, the court also imposed a money judgment in the amount of $55 million, which represents the illegal proceeds generated during the course of the conspiracy.
He pled guilty on Sept. 9.
Barbugli is a citizen of Brazil who has been living and working in the United States illegally. He will be removed from the United States after he serves his sentence.
His parents, Valeria and Wilson Barbugli, were sentenced on Oct.14 for their participation in the conspiracy.
According to court documents, the Barbuglis used a temporary labor staffing conglomerate that supplied workers to more than 160 hotels. Through their complex visa fraud and alien smuggling activities, the defendants allowed more than 1,000 illegal aliens to enter and remain in the United States using fraudulently obtained H-2B employment-based visas.
An H-2B visa is granted to certain qualified foreign workers seeking temporary employment in the United States. As part of the conspiracy, the Barbuglis submitted false documentation to the government and manipulated the H-2B visa process.
The Barbuglis submitted altered hotel contract agreements to conceal their activities and falsely reported that U.S. workers had been hired when they had not. The Barbuglis also falsely claimed that no payments were being collected from the alien workers, when in fact the workers had actually paid between $350 to $750 each to be placed on the fraudulent H-2B visa petitions.
The Barbuglis used shell companies in successive petitions to create the illusion that new bona fide companies had temporary labor needs. This was done to deceive authorities and hide the fact that all of the workers were employed by the same corporation, namely VR Services, without interruption.
This elaborate deceit enabled VR Services to establish a permanent foreign labor pool, which employed illegal alien workers across the United States.
This case was jointly investigated by the Document and Benefit Fraud Task Force, a multi-agency task force that coordinates investigations into fraudulent immigration documents. The task force is led by ICE HSI and also includes the U.S. Department of Labor, U.S. Department of State and U.S. Citizenship and Immigration Services.
It was prosecuted by Special Assistant U.S. Attorney Stephanie E. Gorman.
Former owner, employees at San Diego bakery plead guilty to charges stemming from ICE worksite investigation
SAN DIEGO - The former owner of a San Diego wholesale bakery and four other bakery employees pleaded guilty in U.S. District Court Tuesday to knowingly hiring illegal aliens, the result of an investigation led by the U.S. Immigration and Customs Enforcement (ICE) Office of Homeland Security Investigations (HSI) and with assistance from the Social Security Administration, Office of the Inspector General.
Jesse William Fadick, 64, the former owner of S&S Bakery, Inc., pleaded guilty to knowingly hiring 10 or more illegal aliens within a 12-month period. Fadick agreed to forfeit $800,000 in proceeds as a result of the offense and paid the forfeiture in full.
The company's general manager, Jean-Pierre Martinez, 54, pleaded guilty to making a false attestation on an I-9 employment eligibility verification form. Two bakery supervisors, Rigoberto Sarmiento-Machuca, 35, and Rogelio Machuca-Sarmiento, 46, and an employee, Abel Baizabal, 38, pleaded guilty to misuse of entry documents.
A sentencing hearing for all of the defendants is scheduled for December 6 before the U.S. District Judge Michael M. Anello. According to the plea agreements, Fadick and Martinez are expected to receive five years probation and prosecutors are recommending sentences at the low-end of the applicable sentencing guidelines for the other defendants.
In a separate but related case, Norma Angelica Flores, 42, who was arrested by ICE HSI special agents during the execution of a search warrant in October and charged with illegal re-entry after deportation, was sentenced November 18 to six months in custody.
In addition to the five defendants, this case also involved 19 illegal aliens who were initially detained as material witnesses and later released on bond. Following the entry of the guilty pleas, the material witnesses were ordered by the judge to surrender to ICE. A status hearing was set for January 25, 2011, to confirm that the material witnesses have self-surrendered.
ICE seizes 82 website domains involved in selling counterfeit goods as part of Cyber Monday crackdown
WASHINGTON - Seizure orders have been executed against 82 domain names of commercial websites engaged in the illegal sale and distribution of counterfeit goods and copyrighted works as part of Operation In Our Sites v. 2.0, as part of an ongoing investigation by U.S. Immigration and Customs Enforcement (ICE).
"The sale of counterfeit U.S. brands on the Internet steals the creative work of others, costs our economy jobs and revenue and can threaten the health and safety of American consumers," said ICE Director John Morton. "The protection of intellectual property is a top priority for Homeland Security Investigations and the National Intellectual Property Rights Coordination Center. We are dedicated to protecting the jobs, the income and the tax revenue that disappear when counterfeit goods are trafficked."
The coordinated federal law enforcement operation targeted online retailers of a diverse array of counterfeit goods, including sports equipment, shoes, handbags, athletic apparel and sunglasses as well as illegal copies of copyrighted DVD boxed sets, music and software.
During the course of the operation, federal law enforcement agents made undercover purchases from online retailers suspected of selling counterfeit goods. In many instances, the goods were shipped directly into the United States from suppliers in other countries using international express mail. If the goods were confirmed as counterfeit or otherwise illegal, seizure orders for the domain names of the websites that sold the goods were obtained from U.S. magistrate judges. Individuals attempting to access the websites will now find a banner notifying them that the domain name of that website has been seized by federal authorities.
"By seizing these domain names, we have disrupted the sale of thousands of counterfeit items, while also cutting off funds to those willing to exploit the ingenuity of others for their own personal gain," said Attorney General Eric Holder. "Intellectual property crimes are not victimless. The theft of ideas and the sale of counterfeit goods threaten economic opportunities and financial stability, suppress innovation and destroy jobs. The Justice Department, with the help of our law enforcement partners, is changing the perception that these crimes are risk-free with enforcement actions like the one announced today."
The operation builds upon Operation in Our Sites I, which was announced in June 2010.
In that first action of this broader law enforcement initiative, authorities executed seizure warrants against nine domain names of websites offering pirated copies of first-run movies.
The nationwide operation was spearheaded by the National Intellectual Property Rights Coordination Center (IPR Center) led by ICE's Office of Homeland Security Investigations (HSI), in coordination with the Criminal Division's Computer Crime and Intellectual Property Section and nine U.S. Attorneys' Offices including the Southern District of New York; District of Columbia; Middle District of Florida; District of Colorado; Southern District of Texas; Central District of California; Northern District of Ohio; District of New Jersey; and the Western District of Washington. The Criminal Division's Asset Forfeiture and Money Laundering Section also provided significant assistance.
The IPR Center is one of the U.S. government's key weapons in the fight against criminal counterfeiting and piracy. The IPR Center is led by ICE HSI and includes partners from U.S. Customs and Border Protection; the FBI; the Department of Commerce; the Food and Drug Administration; the Postal Inspection Service; the General Services Administration, Office of the Inspector General; the Naval Criminal Investigative Service; the Defense Criminal Investigative Service; the Army Criminal Investigative Division's Major Procurement Fraud Unit; the Consumer Product Safety Commission, INTERPOL; and the Government of Mexico Tax Administrative Service.
The IPR Center allows law enforcement and the private sector jointly to address the growing transnational problem of counterfeit products. The IPR Center coordinates outreach to U.S. rights holders and conducts domestic and international law enforcement as well as coordinates and directs anti-counterfeiting investigations.
To learn more about the IPR Center, visit www.ice.gov. View a list of seized domains. View photos from Operation In Our Sites v. 2.0.
