fraud

Many of the suspects arrested in the food stamp fraud bust known as Operation Gold Card appeared in court Tuesday afternoon. Future dates were set, but the cases did not advance much behind scheduling the next steps in the sprawling legal proceeding.

As of Tuesday, 49 suspects had been arrested for allegedly trading their state benefits for cash. Sixty-five suspects were identified in the investigation, which means 16 people are still being sought by the authorities.

Operation Gold Card was launched last spring in the wake of the multi-agency drug bust known as Operation Trojan Horse.

A source pointed local and federal law enforcement officers to a meat market and taco stand in Klamath Falls where the owners were allegedly ringing up customers with phony purchases in order to trade them cash for the electronic benefits contained on their Oregon Trail Cards, at the rate of 50 cents on the dollar.

Arrests began early in the morning of May 10 at several locations. The three alleged ringleaders in the operation — Jose Moreno-Hernandez, Rafael Ortega-Vargas and Severo Toro-Castellon — were arrested in the first day.

Detective Eric Shepherd, Klamath County Sheriff’s Office, said all the identified suspects are Klamath County residents. The 16 who are unaccounted for are still thought to be in the area as well.

“They’re all locals. These guys are not going to flee … I don’t think they have the means to relocate,” Shepherd said. “They may not even know that they’re wanted.”

Some of the wanted suspects are transients, making them hard to locate, or frequent guests of the county jail, meaning law enforcement officers will probably run into them eventually.

The food stamp fraud operation is thought to have made $12,000 to $20,000 a month. It may have been running for the past five years.

“It’s an easy system to defraud; it’s temptation. People are out of work, out of money, they’re looking for a way to get an extra dollar,” Shepherd said of the lure of the fraud operation. “You can’t buy certain things on a Oregon Trail Card you can buy with cash.”

Court hearings

Judge Marci Adkisson’s courtroom was packed Tuesday afternoon with Gold Card suspects and other, unrelated defendants. It was standing room only as people stood in the aisle and spilled out into the hallway.

Moreno-Hernandez and Ortega-Vargas were both present in restraints, as neither has posted their bail amounts.

Currently held in lieu of a $1 million bail bond, Moreno-Hernandez had previously pleaded not guilty to 10 charges. His trial date was set for July 2 at 9 a.m.

A settlement offer in the case should be prepared by the end of the week. District Attorney Rob Patridge said in court the state is waiting for additional information from the KCSO.

“It will take a while,” Patridge noted. “We believe there are funds stashed elsewhere as well.”

Ortega-Vargas, held in lieu of $750,000, had his trial also set for July 2. Patridge noted there might be pending immigration issues with both suspects.

According to Patridge and his deputy DAs, offers and discovery information should be completed for the rest of the Gold Card suspects by the end of this week.

Other cases

Detective Shepherd said several other food stamp fraud cases have sprung up around Oregon. Last week in Beaverton, a man accused of running a scheme similar to the alleged dealings in Klamath Falls was sentenced to 16 years in prison.

According to the Oregonian, 42-year-old Mahmoud Tajgerdu was trading cash for benefits out of his meat market and gas station. He may have been able to steal more than $1 million from the welfare system.

Several of Tajgerdu’s employees were charged in the case as well, according to the Oregonian. Read more about Food stamp fraud defendants flood the court

According to the Oregon Department of Corrections (DOC) Inmate Population Profile dated May 1, 2014 DOC indicated there were 14,657 prisoners incarcerated in DOC’s 14 prisons (See attachment).

Not included in DOC’s May 1st Inmate Population Profile was DOC data indicating there were 1,133 foreign nationals (criminal aliens) incarcerated in its prison system (See attachment).

All 1,133 criminal aliens incarcerated on May 1st by DOC had United States (U.S.) Department of Homeland Security (DHS), Immigration and Customs Enforcement (ICE), detainers. The U.S. DHS–ICE is responsible for indentifying whether a DOC inmate is a criminal alien or a domestic inmate. If an inmate is identified as being a criminal alien, at U.S. DHS–ICE’s request, the DOC places an “ICE detainer” on the inmate that directs DOC officials to transfer custody to ICE following completion of the inmate’s state sanction.

Criminal aliens made up approximately 7.73% of the DOC May 1st prison population (See table).

  Read more about Six year report: Criminal aliens incarcerated in the Oregon Dept. of Corrections

"The push for it is nationally coordinated," Krikorian said. "There is a broader push by national groups to have more say in the issue. They see it in two ways. First, as a practical matter, it helps to imbed the illegal immigrants in the U.S., making it less likely they will leave. Also, it will be presented as evidence of nationwide momentum for immigration 'reform.'"
  Read more about States Buck Public Opinion, Offer Driver's Licenses to Illegals

Two men face charges after allegedly using counterfeit credit cards to go on shopping sprees at retailers in Portland, Tigard and Salem.

Yu Zou, 28, of San Gabriel, Calif., and Shenghua Zhao, 33, of Olympia, Wash., were arrested in Portland Wednesday, Dec. 4 after Tigard police officers followed the duo as they racked up charges at Nordstrom, Macy's and Apple stores in Portland and Tigard....

Zou was arrested near Southwest 10th Avenue and Taylor Street in downtown Portland after being stopped by a Tigard police sergeant, while Zhao ran from the scene....

Zou and Zhao were both booked into the Washington County Jail on identity theft and theft charges.

ICE HOLDS - Yu Zou and Shenghua Zhao

Read more about identity theft and a shopping spree.
  Read more about Portland-area shopping spree with fake credit cards land duo in jail, court documents say

November 7, 2013, Wilsonville, Ore. -- The Oregon Association of Nurseries will recognize six Oregon elected officials as "Friends of Nurseries" at its 2013 Convention, to be held Friday at The Oregon Garden resort in Silverton, Ore.

The six include three Republicans and three Democrats. They are Gov. John Kitzhaber (D), U.S. Rep Kurt Schrader (D-Oregon Fifth District), Oregon House Speaker Tina Kotek (D-Portland), State Sen. Bill Hansell (R-Pendleton), State Sen. Chuck Thomsen (R-Hood River), and State Rep. Cliff Bentz (R-Ontario).

"The Oregon nursery industry is the largest single segment in Oregon agriculture, with $745 million in sales in the most recent year that was tracked," OAN Executive Director Jeff Stone said. "Our association is more than 800 businesses strong, and all of them make a positive difference in Oregon's economy. That's why we wanted to give these public officials some much-deserved recognition. All of them have shown positive leadership, ensuring that Oregon remains a great place for nurseries to do business."

Gov. Kitzhaber was recognized for taking the lead on creating a new water supply fund for irrigation, natural resource protection and other uses. He was also recognized for putting together a task force that led to creation and passage of a four-year driver's card bill. Finally, Kitzhaber has maintained critical natural resource and extension funding at the state level, which the industry relies on for sharing knowledge and managing pest and disease threats.

Rep. Schrader has been consistent ally on the Farm Bill and comprehensive immigration reform. He has secured funding for research and pest and disease issues, and successfully pushed the USDA to rescind a discriminatory order that denied Oregon growers equal marketplace access. Schrader is currently serving on a House-Senate conference committee regarding the federal Farm Bill.

Speaker Kotek provided critical support so that the water supply bill and driver's card bill could move forward.

Sen. Hansell was a key figure in the passage of the water supply bill and also sponsored the driver's card bill.

Sen. Thomsen also sponsored the driver's card bill and provided critical support to help get it passed.

Rep. Bentz helped put together a compromise that moved the water supply bill forward when few thought it could pass. It ended up passing with just one dissenting vote between the two legislative chambers.

The awards will be announced at Friday's convention. At that convention, outgoing OAN President Carson Lord of Tree Frog Nursery (Silverton, Ore.) will pass the gavel to President-Elect Matt Gold, who will assume office. Gold and a 23-member board will guide the association's direction and priorities for 2014.

The Oregon Association of Nurseries, based in Wilsonville, represents more than 800 wholesale growers, retailers, landscapers and suppliers. Nursery products are the biggest sector in Oregon agriculture, with annual sales of $745 million in 2012. Oregon's nursery industry is a traded sector; nearly 75 percent of Oregon-grown nursery plants are shipped out of state. To learn more, visit www.oan.org or call 503-682-5089.

  Read more about OAN recognizes six public officials as 'Friends of Nurseries'

Jose Calderon lined up the customers, charging them a few thousand bucks for the promise of authentic state IDs despite their illegal residency in the United States. Maria Cavallaro gave them what they sought, using her position at the Virginia Department of Motor Vehicles to procure driver’s licenses, learner’s permits and identification cards for those she knew were not eligible for them.

Together, court filings show, the pair helped obtain documents for as many as 300 people — most of them illegal immigrants — and netted tens of thousands of dollars for themselves. On Wednesday, Cavallaro, 45, of Springfield, pleaded guilty to accepting bribes and Calderon, 42, of Sterling, pleaded guilty to a bribery conspiracy charge. Cavallaro’s attorney said afterward that his client felt sympathy for people unable to renew their driver’s licenses because of a law change in the wake of the Sept. 11, 2001, terrorist attacks.

“She felt sorry for people,” said Neal Olesker, her attorney.

The pleas in a near-empty federal district courtroom in Alexandria mark the first time someone has accepted responsibility in the far-reaching conspiracy, which ran from 2007 into 2011. But it does not mark the end of the case. Calderon’s wife, Noemi Barboza, is scheduled to appear at a plea hearing Thursday, and court documents list an unnamed person who seems to have participated in the scheme but has not yet been charged.

The issue of whether to give driver’s licenses to illegal immigrants is increasingly being debated in state legislatures.

This year, Maryland passed a measure to create a sort of second-class driver’s license, which applicants could obtain without proof of lawful status, and the D.C. Council passed similar legislation Tuesday. Virginia, though, requires that one prove legal presence in the United States.

Calderon told a federal judge Wednesday that the scheme was “my idea,” but that it ran through Cavallaro, a former customer service representative and senior generalist at DMV customer service centers in Chantilly, Alexandria and Fairfax’s Fair Oaks Mall. According to court filings, Cavallaro would process and approve applications of those wanting driver’s licenses, learner’s permits or identification cards even though she knew the applicants could not prove legal presence in the United States.

Calderon, according to the filings, found the applicants and sometimes filled out the applications for them. Charging $2,000, $2,500 or $3,000 per person, he and Cavallaro netted at least $120,000 to split between them, court filings show. Calderon admitted that he brokered transactions for about 100 ineligible applicants, and Cavallaro admitted that another person sent her more than 200 ineligible applicants for illegal processing, court filings show.

A DMV spokeswoman said Cavallaro worked for the agency from 2005 to 2011 and referred other questions to the FBI. According to court records, Cavallaro was fired from the DMV in May 2011.

The DMV has had intermittent problems with employees selling driver’s licenses to illegal immigrants throughout the years.

The manager at a DMV office at Springfield Mall pleaded guilty in one such case in 2005.

Cavallaro faces a maximum of 10 years in prison, and Calderon faces a maximum of five. Both are scheduled to be sentenced Jan. 31.

  Read more about A scheme to get driver’s licenses and IDs for illegal immigrants, hatched in the Va. DMV

SALEM -- Every month for the past four years, David Cross has been sending emails to Oregon sheriffs, lawmakers and the media.

In his spare time, Cross collects information documenting the financial impact of foreign nationals in Oregon prisons and jails. He says all his data comes from reputable sources.

Cross says the latest figures show 8% of the state's prison population is made up of people who are in the country illegally and have committed crimes here.

He says the federal government does not fully reimburse the state for all costs. Cross says his research shows the annual cost to Oregon taxpayers is $36,000,000.

Not all the people who receive emails from Cross take time to read them. Still, he feels that even just one voice can make a difference.

NOTE:  Read David's jail reports and much more.

Read more about Salem Man Says Illegal Alien Prison Data is Worth a Look

(CNSNews.com) - The Internal Revenue Service sent 23,994 tax refunds worth a combined $46,378,040 to “unauthorized” alien workers who all used the same address in Atlanta, Ga., in 2011, according to the Treasury Inspector General for Tax Administration (TIGTA).

That was not the only Atlanta address theoretically occupied by thousands of “unauthorized” alien workers receiving millions in federal tax refunds in 2011. In fact, according to a TIGTA audit report published last year, four of the top ten addresses to which the IRS sent thousands of tax refunds to “unauthorized” aliens were in Atlanta.

The IRS sent 11,284 refunds worth a combined $2,164,976 to unauthorized alien workers at a second Atlanta address; 3,608 worth $2,691,448 to a third; and 2,386 worth $1,232,943 to a fourth.

Other locations on the IG’s Top Ten list for singular addresses that were theoretically used simultaneously by thousands of unauthorized alien workers, included an address in Oxnard, Calif, where the IRS sent 2,507 refunds worth $10,395,874; an address in Raleigh, North Carolina, where the IRS sent 2,408 refunds worth $7,284,212; an address in Phoenix, Ariz., where the IRS sent 2,047 refunds worth $5,558,608; an address in Palm Beach Gardens, Fla., where the IRS sent 1,972 refunds worth $2,256,302; an address in San Jose, Calif., where the IRS sent 1,942 refunds worth $5,091,027; and an address in Arvin, Calif., where the IRS sent 1,846 refunds worth $3,298,877.

Since 1996, the IRS has issued what it calls Individual Taxpayer Identification Numbers (ITINs) to two classes of persons: 1) non-resident aliens who have a tax liability in the United States, and 2) aliens living in the United States who are “not authorized to work in the United States.”

The IRS has long known it was giving these numbers to illegal aliens, and thus facilitating their ability to work illegally in the United States. For example, the Treasury Inspector General’s Semiannual Report to Congress published on Oct. 29, 1999—nearly fourteen years ago—specifically drew attention to this problem.

“The IRS issues Individual Taxpayer Identification Numbers (ITINs) to undocumented aliens to improve nonresident alien compliance with tax laws. This IRS practice seems counter-productive to the Immigration and Naturalization Service’s (INS) mission to identify undocumented aliens and prevent unlawful alien entry,” TIGTA warned in that long-ago report.

The inspector general’s 2012 audit report on the IRS’s handling of ITINs was spurred by two IRS employees who went to member of Congress "alleging that IRS management was requiring employees to assign Individual Taxpayer Identification Numbers (ITIN) even when the applications were fraudulent.”

In an August 2012 press release accompanying the audit report, TIGTA said the report “validated” the complaints of the IRS employees.

“TIGTA’s audit found that IRS management has not established adequate internal controls to detect and prevent the assignment of an ITIN to individuals submitting questionable applications,” said Treasury Inspector General for Tax Administration J. Russell George. “Even more troubling, TIGTA found an environment which discourages employees from detecting fraudulent applications.”

In addition to the 23,994 tax refunds worth a combined $46,378,040 that the IRS sent to a single address in Atlanta, the IG also discovered that the IRS had assigned 15,796 ITINs to unauthorized aliens who presumably resided at a single Atlanta address.

The IRS, according to TIGTA, also assigned ITINs to 15,028 unauthorized aliens presumably living at a single address in Dallas, Texas, and 10,356 to unauthorized aliens presumably living at a single address in Atlantic City, N.J.

Perhaps the most remarkable act of the IRS was this: It assigned 6,411 ITINs to unauthorized aliens presumably using a single address in Morganton, North Carolina. According to the 2010 Census, there were only 16,681 people in Morganton. So, for the IRS to have been correct in issuing 6,411 ITINS to unauthorized aliens at a single address Morganton it would have meant that 38 percent of the town’s total population were unauthorized alien workers using a single address.

TIGTA said there were 154 addresses around the country that appeared on 1,000 or more ITIN applications made to the IRS. Read more about IRS Sent 46,378,040 in Refunds to 23,994 ‘Unauthorized’ Aliens at 1 Address