Fe, NM 15 fv[ / (c; 7 - KOB.com ABQ Indian art...journals, dailyJreceipts, general reports,...

AO 106 (Rev. 04/10) Appli'ftion for a Search Warrant

FILED UNITED STATES DISTRICTII"ItfE~ATES DISTRICT COURT

. ALB0tt0ERQUE, NEW MEXICO for the

District ofNew Mexico

In the Ma er of the Search of )

or identifY the p rson by name and address) ) Case No.

218 ld Santa Fe Trail )

JAf. OCT 2 6 2015

MATTHEW J. DYKMAN CLERK (Briefly describef.he property to be searched )

Sai Fe, NM 87501 ~ 15 fv[ /" (c; 7 7 APPLICATION FOR A SEARCH WARRANT

I, a federal I enforcement officer or an attorney for the government, request a search warrant and state under penalty of perjury th~t I have reason to believe that on the following person or property (identifY the person or describe the property to be searched ar d give its location):

SEE ATTACHMEN A, ATTACHED HERETO AND lf':JCOPORATED BY REFERENCE

located in the District of New Mexico , there is now concealed (identifY the ----~--------- ------------------------

person or describe the pr perty to be seized):

SEE ATTACHMEN B, ATTACHED HERETO AND INCOPORATED BY REFERENCE

The basis for the search underFed. R. Crim. P. 4l(c) is (checkoneormore):

~ evid nee of a crime;

~ cont aband, fruits of crime, or other items illegally possessed;

~prop rty designed for use, intended for use, or used in committing a crime;

0 a pe+ on to be ~rrested or a person who is unlawfully restrained.

The search is: related to a violation of:

Code Secti n Offense Description

Sale of items falsely represented to be made by a Native American tribe or particular Native American artisan (Indian Arts and Craft Act)

The applicati n is based on these facts:

SEE ATTACHED AFFIDAVIT

Iff Continuer on the attached sheet.

0 Delayed otice of days (give exact ending date if more than 30 days: ---r------/----1

undec 18 U.S. C. § 3103a, the bas;s of whkh ;s set forth on ~ched • et requested

------~--~~--~------~~~~-------------

Special Agent Russell Stanford Printed name and title

Sworn to before me and signed in my presence.

Date:

City and state: Albu , uerque, NM Chief United States Magistrate Judge Karen B. Molzen Printed name and title

Case 1:15-mr-00677-KBM Document 1 Filed 10/26/15 of 7

Attachment A

Description of PREMISES to be Searched

nrr \nPrhr to be searched is the business of Ala Shawabkeh, located at 218 Old Santa

Fe, NM 87501. The property consists of one commercial property, as further

ttachment A (hereinafter, the "Subject Premises") .

.,_, ,., ....... '-'" is depicted below and is a one-story building, red in color with black

awnmgs. name of the business, "Gold House," is depicted signs and the awning attached to

the building. is one (1) exterior entrance to the business on the East side.

Subject Premises (Gold House)


I Gold House


Attachment B

I Description of Items to Be Seized

Items t~ be searched, located, and seized from 218 Old Santa Fe Trail, Santa Fe, NM 87501, and all locked and closed containers therein (the "premises") include the following:

1. Any F 4U and Imad's Jewelry manufactured items.

2. All rec rds or materials- in whatever form, including digital or electronic, showing

evidence, fruitL and instrumentalities of violations 18 U.S.C. § 542 (impmtation by false or

fraudulent pradtice ), 19 U.S.C. § 1304 (failure to mark goods with country of origin), 18 U.S.C.

§ 115 9 ( viola+ n of the Indian Arts and Crafts Act), and 18 U.S. C. § 3 71 (conspiracy), including

but not limited to:

a. records that relate to the acquisition, transfer, sale, purchase or shipment of the

above listed items, correspondence with buyers and sellers, purchase orders, invoices, financial

ledgers, logs, tr lephone records, travel documents, wire fund transfers, receipts, notebooks,

memoranda, s! readsheets, rolodex or address books, appointment calendars, business and

personal ledge s, internet transactions, such as eBay or Craigslist, Paypal transactions, cancelled

checks and ch ck registers, photographs, videos, DVDs, emails, shipping documents,

ce1tificates, an~ bank records;

b. !Financial documents, including mmtgage, loan and lease documents, payment

records for itis of value, bank and brokerage account statements, check registers, deposit slips,

records of tra fers, wire transfer instructions and records, safety deposit records, storage unit

records andre ' eipts, cashier's checks, personal checks, and other items demonstrating a business

purpose, acqui ition of property, or transfer of funds to, by, and between the subjects of this

investigation;

c. Corporation and personal income tax information, including both state and

federal, and working tax returns, personal (IRS Fonn 1 040) and corporate federal (IRS

Forms1065 ank 1120) returns, and state tax returns for tax years 2010 through 2015, including:

tax questionn4 res, income and expense logs and records, profit and loss statements, ledgers,

journals, dailyJreceipts, general reports, accounting reports, work papers, correspondence, notes,

financial schedules and reports, memorandums, loans contracts and agreements, accounting

records, finan ial statements, bookkeeper and accountant records, W-2s, W-4s, 1099s, 1098s,

and all documents and records used in the preparation of tax returns; and


d. l Employment Records, including records showing the income sources for the

subjects as w~l as employee records for Gold House, such as payroll records, time sheets,

~mployee app1ications, payroll service agreements, payroll tax records, and federal and state

mcome tax re ords such as W-2s and W-4s, 1099s, IRS Forms 940 and 941 , state EDD

(Employment Development Department) forms showing quarterly wages and withholding for

employees, a:r federal and state partnership/corporate income tax returns.

3. Comp I ters or storage media used as a means to commit the violations described above,

including senr ng electronic communications in furtherance of a scheme to violate the Indian

Arts and Craftis Act.

4. For anl computer or storage medium whose seizure is otherwise authorized by this

warrant, and ly computer or storage medium that contains or in which is stored records or

information tJ at is otherwise called for by this warrant (hereinafter, "COMPUTER"):

a. evldence of who used, owned, or controlled the COMPUTER at the time the things

de . cribed in this warrant were created, edited, or deleted, such as logs, registry

enJries, configuration files, saved usemames and passwords, documents, browsing

hi ory, user profiles, email, email contacts, "chat," instant messaging logs,

ph tographs, and correspondence; . b. evidence of software that would allow others to control the COMPUTER, such as

vi 1 ses, Trojan horses, and other forms of malicious software, as well as evidence of

th I presence or absence of security software designed to detect malicious software;

c. ev dence of the lack of such malicious software;

d. ev dence indicating how and when the computer was accessed or used to dete1mine

th chronological context of computer access, use, and events relating to crime under

estigation and to the computer user;


e. ence indicating the computer user's state of mind as it relates to the crime under

f. evT ence of the attachment to the COMPUTER of other storage devices or similar

col tainers for electronic evidence;

g. evi6ence of counter-forensic programs (and associated data) that are designed to

eli I inate data from the COMPUTER;

h. evi ence of the times the COMPUTER was used;

1. pa swords, encryption keys, and other access devices that may be necessary to access

J. do ,umentation and manuals that may be necessary to access the COMPUTER or to

co duct a forensic examination of the COMPUTER; ·

k.

l. rec rds of or infmmation about the COMPUTER's Internet activity, including

fir, walllogs, caches, browser history and cookies, "bookmarked" or "favorite" web

pa,. es, search terms that the user entered into any Internet search engine, and records

ofl!lser-typed web addresses;

m. co11textual information necessary to understand the evidence described in this

att chment.

5. Routers, modems, and network equipment used to connect computers to the

Internet.

6. As used above, the terms "records" and "information" includes all forms of

creation or sto age, including any form of computer or electronic storage (such as hard disks or

other media t t can store data); any handmade form (such as writing); any mechanical form


(such as printi g or typing); and any photographic form (such as microfilm, microfiche, prints,

slides, negati s, videotapes, motion pictures, or photocopies).

7. The term "computer" includes all types of electronic, magnetic, optical,

electrochemic 1, or other high speed data processing devices performing logical, arithmetic, or

storage functJ ns, including desktop computers, notebook computers, mobile phones, tablets,

server computL s, and network hardware.

The tel "storage medium" includes any physical object upon which computer data can

be recorded. l xamples include hard disks, RAM, floppy disks, flash memory, CD-ROMs, and

other magnetJ or optical media.


i

DISTRICT OF NEW MEXICO ALBUQUERQUE, NEW MEXICO

AFFIDAVIT IN SUPPORT OF SEARCH WARRANTS

I, RUSSELL STANF~RD, having been sworn, depose and state as follows:

I

I. AGENT'S B~CKGROUND

I am a Special Agent (SA) of the Department oflnterior, United States Fish and Wildlife Service, Office

of Law Enforcement (USFWS/OLE) and have been so employed since August 2008. Before becoming a

Special Agent, I serve six years as a Wildlife Inspector with the USFWS/OLE at the port of New York. I have

approximately thirtee years of law enforcement experience and am currently assigned to the Albuquerque,

New Mexico field of ce. I successfully completed the Criminal Investigator Training Program and the USFWS

Special Agent Basic ~chool at the Federal Law Enforcement Training Center (FLETC). I have also attended

many conferences, feminars, and in-service training courses sponsored by a variety of professional

organizations and lat enforcement agencies. Prior to my federal service, I earned a Bachelor's Degree in :

Wildlife Managemen1 at Frostburg State University in Frostburg, Maryland. .

As a federalla!w enforcement agent, I am authorized to investigate possible violations of federal law and

to execute search warrants issued under the authority of the United States. I have authored and/or assisted in I

numerous search w¥rant applications and have executed those warrants in the performance of my law

enforcement duties. I

I

II. PURPOS* OF THE SEARCH WARRANTS

I

Since 2012, t*e Department of the Interior, USFWS, and the Indian Arts and Crafts Board ("IACB") i

have been conducting a nationwide investigation of the sale of counterfeit Native American jewelry. I am the

lead investigator and I have been attached to the IACB since March of 2012. As such, I am responsible for I

investigating violatio1s of the Indian Arts and Crafts Act.

Based on this investigation, I know that Sterling Islands ("Sterling"), and other businesses associated

with Sterling ("the Sterling Coalition"), work in concert to design, import and fraudulently sell counterfeit I

Native Americanjew~lry in violation ofthe Indian Arts and Crafts Act, specifically 18 U.S.C. § 1159. I also

have discovered that !members of the Sterling Coalition, including, but not limited to, Jawad Tawfiq Khalaf,

Sheda Khalaf, Nader ~alaf, Nashat Khalaf, Zaher Mostafa, Arafat H. Nimer, Mohammad Manasra, Nael Ali, '

Christina Bowen, Mdhammad Sharifi, Soraya Sharifi, Yousef Nassar, Taha Shawar, Ismael Momeni, and Ala I

Shawabkeh have beep linked to the operation of approximately ten retail and wholesale businesses that sell

1

Case 1:15-mr-00677-KBM Document 1-1 Filed 10/26/15 Page 1 of 35

Sterling's counterfeit Native American-style jewelry in New Mexico. These businesses, primarily located in

areas of high tourist activity, are used by the Sterling Coalition to fraudulently sell Native American-style

jewelry, which was 1 nufactured in the Philippines, as genuine Native American-madejewelry. The following

diagram was produce~ to visually depict the relationships among the Sterling Coalition that my investigation

has uncovered:

AN Jewelry

Mohammad

~ana§!"!

M menrs Gallery Gold House Galleria Azul

Ala Shawabkm NaeiAh

WHOLESALERS

RETAIL

Gallery 8

2

AI Zuni

Nash KhaJi!f

Silver Coyote

Yousef !'j.illtl"

~!t~~ (GSNM)

~!Of!

BuDion Jewelers


This affidavit

ularly in Attac partie

descri ption of the fa<

believ e that the items

herein , will be locate<

ofvio lations of 18 U.

goods

§ 371

with country c

(conspiracy).

No. Busine 1 Sterlin~

2 AlZun

3 Gallery

4 Galleri

5 Moharr (Sole P

6 A.N.Je

7 Sundan

8 Silver (

9 Momer

10 GoldH

The facts cont

and ex perience of oth

office rs, and knowled

is submitted in support of applications to search the following premises, described more

tunent A, which is attached hereto and fully incorporated herein. A more co mplete

ts .establishing probable cause is set forth in Part V below. use to There is probable ca

to be seized as described in Attachment B, which is attached hereto and fully incorp orated

ali ties at the premises described in Attachment A, and are evidence, fruits, and instrument

S.C. § 542 (importation by false or fraudulent practice), 19 U.S.C. § 1304 (failure to mark

f origin), 18 U.S.C. § 1159 (violation of the Indian Arts and Crafts Act), and 18 U.S.C.

ss Name Search Location/ Property Role Islands 5815 Menaul Blvd. Albuquerque, NM Importer I

Wholesaler 1603 West Hwy 66, Gallup, NM Wholesaler

8 1919 Old Town Road NW #8, Retailer Albuquerque, NM

Azul 326A San Felipe St., Albuquerque, NM Retailer 87104

madManasra 2011 Chevrolet Express G 1500 Cargo Van Wholesaler/ oprietor) NM license plate number "NHR850" Retailer

VIN "1GCSGAFXOB1140402"

2005 Dodge Grand Caravan NM license plate number "MLA224" VIN "2D4GP44L55R166343"

2002 Mercedes-Benz 500ML NM license plate number "MWH283" VIN "4JGAB75E52A323268"

welry 2304 Cagua Dr. NE, Albuquerque, NM Wholesaler

cer Jewelry 202 San Felipe NE, Ste. A, Albuquerque, Retailer NM

:oyote 112 Old Santa Fe Trail, Santa Fe, NM Retailer

i's Gallery 222 Old Santa Fe Trail, Santa Fe, NM Retailer 87501

ouse LLC 218 Old Santa Fe Trail, Santa Fe, NM Retailer 87501

ained in this affidavit are based upon my training and experience as well as the traini ng

d er law enforcement agents and officers, information related to me by other agents an

ge acquired from other sources during the course of this investigation. The investiga tory

3


--------------,---------------------

techniques include, b tare not limited to, surveillance, undercover operations, forensic analysis, a review of

import documents an declarations, travel documents, bank records and other financial documents, other

interviews and record research, trash recovery operations, and interviews with Native American artists and

industry experts. Thi affidavit is intended to show that there is probable cause for issuance of the search

warrants and does no purport to set forth all ofthe evidence gathered to date during this three-year-long

investigation.

III. BACKG OUND OF THE INDIAN ARTS AND CRAFTS ACT

On August 27 1935, Congress created the Indian Arts and Crafts Board (IACB) to improve the

economic status ofN tive Americans through the development and promotion of authentic Native American

arts and crafts. 49 St t. 891; 25 U.S.C. §§ 1158-1159. The 1935 Act adopted criminal penalties for selling

items misrepresented s Native American made. This provision, which set fines not to exceed $500 or

imprisonment not to xceed six months, or both, proved to be ineffective at stemming the flood of counterfeit

Native American arts and crafts in the market.

In response to growing sales of counterfeit Native American arts and crafts negatively impacting the sale

of authentic Native A erican products, Congress passed the Indian Arts and Crafts Act (IACA) of 1990, P .L.

101-644 (Act). Toda , these counterfeits include a flood of overseas knock-offs, are tied to organized crime,

and severely undercu Native American economies, self-determination, cultural heritage, and the future of an

original American tre sure. This Act is designed as a truth-in-advertising law meant to prevent products falsely

marketed as "Indian ade" when the products are not, in fact, made by Indians as defined by the Act. The

relevant criminal port" on of the Act reads as follows:

(a) It is unlawful o offer or display for sale or sell any good, with or without a Government trademark, in manner that falsely suggests it is Indian produced, an Indian product, or the product of a p rticular Indian or Indian tribe or Indian arts and crafts organization, resident within the Un ted States.

(b) PENALTY. Any person that knowingly violates subsection (a) shall-(1) in e case of a first violation by that person-

( A) if the appl"cable goods are offered or displayed for sale at a total price of$1,000 or more, or if the applicable goods are sold for a total price of $1,000 or more-(i) in the case fan individual, be fined not more than $250,000, imprisoned for not more than 5 years, or both ....

18 U.S.C. § 1159. Atubsequent amendment, the Indian Arts and Crafts Amendments Act of2010, P.L. 111-

211, allowed the lAC to refer cases to any federal law enforcement officer for investigation. In 2012, in

response to the growi g problem of counterfeit Native American arts and craft products, the IACB entered into

a Memorandum of A~reement with the USFWS/OLE to develop an investigative unit to pursue violations of

4


IACA. I was the first special agent attached to that unit, and the requested search warrants supported by my

investigation are in ft therance of that unit's mission.

IV. THE FEI ERAL CHARGES RELATED TO THIS INVESTIGATION

As a result of his long-term investigation, on Tuesday, October 20, 2015, a federal grand jury sitting in

Albuquerque, in the I istrict of New Mexico, handed down a 4 count indictment (Criminal No. 14-CR-455

(JCH)), against 3 merpbers or associates of the Sterling Coalition, as follows:

Count 1

1. From< nor about November 26, 2012, and continuing to on or about June 5, 2014, in Bernalillo County in the District ofNew Mexico and elsewhere, the defendants, NAEL ALI, CHRISTINA BC WEN, and MOHAMMAD MANASRA, knowingly, unlawfully and willfully combined, conspi ed, confederated, agreed, and acted interdependently with one another and with others known and unknown to the Grand Jury to commit violations of the Indian Arts and Crafts Act, contrary to 18 U.S.C. § 11 9.

Manner and Means 2. It was part of the conspiracy that NAEL ALI would make regular payments to

MOHAMMED MANASRA to supply NAEL ALI's jewelry stores with Native American-style jewelry manufact rred in the Philippines.

3. It was .curther part ofthe conspiracy that at NAEL ALI's jewelry stores, NAEL ALI and his employees, including CHRISTINA BOWEN, would display, offer for sale and sell the Filipinomanufactured, Na ive American-style jewelry as genuine Native American-made jewelry.

Overt Acts 4. In furt1erance of the conspiracy, and to effect the objects thereof, the following overt acts,

among others, we e committed in the District ofNew Mexico, and elsewhere:

I

I

a. From< nor about November 26,2012, and continuing to on or about June 5, 2014, NAEL ALI, c wned and operated Gallery 8 and Galleria Azul, two distinct Native American-style arts an~ crafts retail stores in Old Town Albuquerque, New Mexico;

b. From< nor about November 26,2012, and continuing to on or about June 5, 2014, NAEL ALI, c wned and operated a separate Galleria Azul, a Native American-style arts and crafts retail E ore in Scottsdale, Arizona;

c. From< nor about November 26,2012, and continuing to on or about June 5, 2014, NAEL ALI, employed CHRISTINA BOWEN to work at his stores Gallery 8 and Galleria Azul;

d. On the following dates, NAEL ALI purchased from MOHAMMAD MANASRA Native Ameri~an-style jewelry manufactured in the Philippines in the following amounts:

Date I Check Signer I Memo I Amount 1 Payee 1211012012 I N ael Ali I Galleria I $75o I Mohammad Manasra

5

I I


Azul (NM) 1211812012 Nael Ali I Gallery 8 $750 Mohammad Manasra 111512013 N ael Ali I Gallery 8 $750 Mohammad Manasra 4/2012013 Nael Ali I Galleria $400 Mohammad Manasra

Azul (NM) 512512013 Nael Ali I Galleria $1000 Mohammad Manasra

Azul (NM) 6111/2013 Nael Ali I Galleria $500 Mohammad Manasra


Azul (NM) 612512013 Nael Ali I Galleria .$1000 Mohammad Manasra

I




Azul (NM) 10123/2013 N ael Ali I Galleria $500 Mohammad Manasra


Azul (AZ) 1211212013 Nael Ali I Galleria $1543 Mohammad Manasra




Azul (NM) 4/15/2014 N ael Ali I Galleria $1500 Mohammad Manasra

Azul (AZ) 411512014 N ael Ali I Galleria $750 Mohammad Manasra

Azul (NM) 514/2014 N ael Ali I Galleria $1500 Mohammad Manasra

Azul (AZ) 511612014 N ael Ali I Galleria $1500 Mohammad Manasra



Azul (NM) 101612014 N ael Ali I Gallery $500 Mohammad Manasra

Azul (NM) 3121/2013 N ael Ali I Gallery 8 $851 Mohammad Manasra 412812013 Nael Ali I Gallery 8 $500 Mohammad Manasra 5/28/2013 Nael Ali I Gallery 8 $1000 Mohammad Manasra 611112013 N ael Ali I Gallery 8 $500 Mohammad Manasra

6


e. From o or about November 26, 2012, and continuing to on or about June 5, 2014, MOH MMAD MANASRA supplied NAEL ALI with Native American-style jewelry manuf: tured in the Philippines;

I

f. From o or about November 26, 2012, and continuing to on or about June 5, 2014, NAEL ALI a d CHRISTINA BOWEN, and others known and unknown to the Grand Jury, display d and offered for sale within Gallery 8 and Galleria Azul, Native American-style jewelr manufactured in the Philippines in a manner that falsely suggested it was Indian produc d, an Indian product, and the product of a particular Indian and Indian tribe, and in excess f$1,000;

g. From o~ or about November 26, 2012, and continuing to on or about June 5, 2014, NAEL ALI pr vided CHRISTINA BOWEN with a list ofNative American artists' names to match the init als stamped on the Native American-style jewelry manufactured in the Philippines;

h. On or bout November 26, 2012, an employee of Gallery 8, known to the Grand Jury, sold for $6 9.08 two Native American-style rings stamped "CK," and a Native American-style pende t and earring set stamped "BB," all manufactured in the Philippines, to an undercover federal agent in a manner that falsely suggested they were Navajo produced, Navajo produc s, and the products of a particular Navajo artist and the Navajo tribe;

1. On or bout November 30, 2012, an employee working at Galleria Azul, known to the Grand Jury, s ld for $96.30 a Native American-style ring stamped "OY," manufactured in the Philip ines, to an undercover federal agent in a manner that falsely suggested it was Navajo produc d, a Navajo product, and the product of the Navajo tribe;

J. On or bout April23, 2013, NAEL ALI, sold jewelry, from his business Galleria Azul, to the On ida Indian Nation in the amount of $28,085 for the purpose of supplying jewelry to an On ida tribe gallery in upstate New York and the Oneida's participation in an intern tional festival;

k. On ortbout February 26, 2014, CHRISTINA BOWEN, while working at Gallery 8, told an under over federal agent that the rings the agent had purchased on November 26, 2012, were made y the Navajo artist "Calvin Kee";

1. On or ~bout February 26, 2014, CHRISTINA BOWEN called NAEL ALI from the Gallery 8 stor~ landline regarding an order of more Calvin Kee rings;

m. On ort. bout February 26,2014, CHRISTINA BOWEN, while working at Gallery 8, told an under over agent that she spoke with NAEL ALI and he told her he would speak with Calvi Kee to order more rings;

I

n. On or ~bout February 26, 2014, CHRISTINA BOWEN, while working at Gallery 8, told an underiover agent that Calvin Kee exclusively supplies Gallery 8 with his jewelry;

o. On or ~bout April2, 2014, CHRISTINA BOWEN, told an undercover federal agent from her G4llery 8 store landline that the Calvin Kee rings were still being produced and that she

I 7


did not ~ant to rush the artist and interfere with the production of his high quality product; I I

p. On or ~out May 29,2014, NAEL ALI, while working at Galleria Azul in Scottsdale, Arizon , sold for $120.00 a Native American-style ring stamped with a raincloud symbol, manuf: tured in the Philippines, to an undercover federal agent in a manner that falsely sugges d it was Navajo produced, a Navajo product, and the product of the Navajo tribe;

q. On or ~out May 29, 2014, NAEL ALI, made representations to an undercover federal agent that th~ rings the agent ordered at Gallery 8 on February 26, 2014, had been made by a Navajo! artist, "Calvin Kee," though no such artist exists;

r. On or jbout May 29, 2014, NAEL ALI, told an undercover federal agent that all the jewelry in his ~ores is made by Native Americans;

s. On or Jbout May 31, 2014, CHRISTINA BOWEN, while working at Gallery 8, told an underc~ver federal agent that NAEL ALI had spoken to the artist Calvin Kee about the agent' order and was informed by Calvin Kee that he could not make all the rings in brown as orde ed because he ran out of brown stones;

t. On or bout August 14, 2014, NAEL ALI, sold jewelry, from his business Galleria Azul, to the On ida Indian Nation for the amount of $9,850 for the purpose of supplying jewelry to an Oneid tribe gallery in upstate New York and the Oneida's participation in an international festiva;

I

In violation o~ 18 U.S.C. § 371.

I Count 2

On or about F bruary 26, 2014, in Bernalillo County, in the District ofNew Mexico, the defendant, CHRISTINA B WEN, did knowingly display and offer for sale, and did sell for $1,000 and more, a good, specifically jewelry, in a manner that suggested that the good was Indian produced, an Indian product, and the p oduct of a particular Indian and Indian tribe, resident within the United States, when in truth and in fac , as she there and then well knew and believed, the good was not Indian produced, an Indian product, a d the product of a particular Indian and Indian tribe.

In violation o 18 U.S.C. § 1159. Count 3

From on or a out February 26, 2014, and continuing to on or about June 5, 2014, in Bernalillo County, in the Di trict ofNew Mexico, the defendants, NAEL ALI and CHRISTINA BOWEN, did knowingly displa and offer for sale, and did sell for $1,000 and more, a good, specifically: jewelry, in a manner that sugg sted that the good was Indian produced, an Indian product, and the product of a particular Indian nd Indian tribe, resident within the United States, when in truth and in fact, as they there and then we 1 knew and believed, the good was not Indian produced, an Indian product, and the product of a parti ular Indian and Indian tribe.

I

In violation of 18 U.S.C. § 1159, 18 U.S.C. § 2.

8


Count4

On or about ctober 19, 2014, in Bernalillo County, in the District ofNew Mexico, the defendant, MOHAMMAD ANASRA, did knowingly display and offer for sale, and did sell for $1,000 and more, a good, spe ifically: jewelry, in a manner that suggested that the good was Indian produced, an Indian product, a d the product of a particular Indian and Indian tribe, resident within the United States, when in truth and in fact, as he there and then well knew and believed, the good was not Indian produced, an Indi n product, and the product of a particular Indian and Indian tribe.

In violation o 18 U.S.C. § 1159.

Federal arrestlwarrants have been issued resulting from the indic1ment, and are to be served

contemporaneously 11th the serv1ce and execut10n ofthe proposed search warrants.

9


V. FACTS S PPORTING PROBABLE CAUSE

1. Business Name:

Owner Names:

Search Location~ I

Sterling Islands, d.b.a., Rox Fine Silver and National Jewelry Buyers

Sheda Khalaf and J a wad T. Khalaf

5815 Menaul Blvd., Albuquerque, N.M. 87110

Organizational1ole: Importer/Wholesaler

Based on my ~nvestigation, I have reason to believe that Sterling, located at 5815 Menaul Blvd.,

Albuquerque, NM 87~ 10, d.b.a., Rox Fine Silver and National Jewelry Buyers, has been importing Native

American-style jewelty from the Filipino company, Fashion Accessories 4 U Corp. (F A4U), for over a decade.

Sheda Khalalnd Jawad Tawfiq Khalaf are listed as the President and Vice President of Sterling,

respectively. Furthe ore, research reveals that on November 12,2006, Jawad Khalaf and Nader Khalafwere

listed as Directors an Officers ofFA4U by the Philippines Securities and Exchange Commission. Consultation

with other agents, an1 general biographical data from law enforcement databases, supports that Jawad Tawfiq

Khalaf is the father o1Nader Jawad Khalaf and Sheda Khalaf.

Sterling is reqpired to declare their commercial importations of jewelry to the USFWS, as the shipments

contain wildlife prod1cts (i.e. shell products). From October 28, 2010, to October 16, 2015, Sterling has

declared to the USF~S, upon importation from FA4U, approximately 300 shipments of jewelry with a total

declared value of apprximately $5 million. This number, however, significantly underrepresents the true value

of the imports becaus of inconsistencies in the declaration method applied by Sterling. My own financial

investigation approxi ates a true declared value of$11.8 million in imported jewelry for the same time period.

All of these shipmen4listed FA4U as the foreign supplier and Sterling as the US importer, and all of the import

declar ations claim sin ilar products consistent with the importation ofNative American-style jewelry. In£ act

theU PS declarations specifically list "Fashion accessories jewelry" as the item of import.

An examinati< n of Sterling's financial records for a similar time period revealed $6,355,599.89 in

ents from Sterlit paym

intern

g to FA4U from June 18,2010 to July 17,2014. The payments were made by

ational wire trar sfer from a Sterling account with Bank of America (Acct.# 435017473826) to FA4

Philip pine-based ban1 account held with the Metropolitan Bank and Trust (Acct. #002236004389).

Date ~ ender Amount Payee 6/18/2010 ~ terling ( ... 3826) $55,812.27 F A4U (002236004389) 6/23/2010 ~ terling ( ... 3 826) $40,435.68 FA4U (002236004389) 7/03/2010 ~ terling ( ... 3 826) $61,696.90 FA4U (002236004389) 7/10/2010 ~ terling ( ... 3 826) $25,385.60 F A4U (002236004389)

10

U's


8/11/2010 Sterling ( ... 3 826) $24,123.44 F A4U (002236004389) 8113/2010 Sterling ( ... 3 826) $35,977.04 F A4U (002236004389) 8/18/2010 terling ( ... 3 826) $25,211.60 F A4U (002236004389) 9/01/2010 Sterling ( ... 3 826) $43,184.01 F A4U (002236004389) 9/03/2010 Sterling ( ... 3 826) $47,511.49 F A4U (002236004389) 9/16/2010 ~ terling ( ... 3 826) $12,614.95 F A4U (002236004389) 10117/2010 ~ terling ( ... 3 826) $25,186.62 F A4U (002236004389) 10/23/2010 ~ terling ( ... 3 826) $14,985.00 F A4U (002236004389) 10/26/2010 ~ terling ( ... 3 826) $33,375.81 FA4U (002236004389) 11/07/2010 ~ terling ( ... 3 826) $26,684.52 F A4U (002236004389) 11/16/2010 ~ terling ( ... 3 826) $45,093.92 FA4U (002236004389) 11/23/2010 terling ( ... 3 826) $26,568.98 F A4U (002236004389) 11129/2010 ~ terling ( ... 3 826) $66,233.00 F A4U (002236004389) 12/02/2010 ~ terling ( ... 3 826) $61,031.60 F A4U (002236004389) 12/06/2010 ~ terling ( ... 3 826) $20,404.20 F A4U (002236004389) 12/10/2010 ~ terling ( ... 3 826) $15,816.00 F A4U (002236004389) 1/09/2011 ~ terling ( ... 3 826) $51,061.89 F A4U (002236004389) 1/12/2011 ~ terling ( ... 3826) $45,155.49 F A4U (002236004389) 1/14/2011 ~ terling ( ... 3 826) $48,401.12 F A4U (002236004389) 1/24/2011 terling ( ... 3 826) $44,061.99 FA4U (002236004389) 1126/2011 Sterling ( ... 3 826) $42,723.03 F A4U (002236004389) 2/15/2011 pterling ( ... 3826) $33,593.05 FA4U (002236004389) 2/16/2011 Sterling ( ... 3 826) $48,445.39 F A4U (002236004389) 2/24/2011 )terling ( ... 3826) $38,728.75 F A4U (002236004389) 2/25/2011 ~terling ( ... 3 826) $30,672.64 F A4U (002236004389) 3/08/2011 )terling ( ... 3826) $29,358.16 F A4U (002236004389) 3/17/2011 ~terling ( ... 3 826) $58,899.20 F A4U (002236004389) 3/24/2011 ~terling ( ... 3826) $58,234.04 F A4U (002236004389) 3/29/2011 ~terling ( ... 3 826) $34,698.04 F A4U (002236004389) 4/07/2011 Sterling( ... 3826) $62,633.24 F A4U (002236004389) 5/06/2011 ~terling ( ... 3 826) $57,658.16 F A4U (002236004389) 5/14/2011 ~terling ( ... 3826) $67,228.28 F A4U (002236004389) 6/03/2011 ~terling ( ... 3 826) $58,911.72 FA4U (002236004389) 6/15/2011 Sterling ( ... 3826) $31,420.96 F A4U (002236004389) 6/18/2011 ~terling ( ... 3 826) $49,769.72 F A4U (002236004389) 6/25/2011 ~terling ( ... 3826) $34,610.68 F A4U (002236004389) 6/29/2011 Sterling ( ... 3 826) $25,580.56 FA4U (002236004389) 7/05/2011 Sterling( ... 3826) $24,828.28 FA4U (002236004389) 7/12/2011 Sterling ( ... 3826) $16,965.76 FA4U (002236004389) 7/17/2011 Sterling( ... 3826) $23,572.72 F A4U (002236004389) 7/23/2011 Sterling ( ... 3826) $51,662.14 F A4U (002236004389) 7/27/2011 ~terling ( ... 3826) $59,957.08 F A4U (002236004389) 8/13/2011 ~terling ( ... 3826) $49,365.92 F A4U (002236004389) 8/18/2011 Sterling ( ... 3826) $21,358.69 FA4U (002236004389) 8/23/2011 Sterling( ... 3826) $49,487.30 F A4U (002236004389) 8/26/2011 Sterling( ... 3826) $28,706.34 F A4U (002236004389) 9/16/2011 Sterling( ... 3826) $29,253.44 FA4U (002236004389) 9/17/2011 Sterling ( ... 3 826) $55,753.44 FA4U (002236004389)

11


9/21/2011 ~terling ( ... 3 826) $52,918.52 F A4U (002236004389) 10/04/2011 ~terling ( ... 3 826) $53,848.28 F A4U (002236004389) 10/08/2011 Sterling ( ... 3 826) $33,247.48 F A4U (002236004389) 10/09/2011 Sterling( ... 3826) $33,247.48 F A4U (002236004389) 10/14/2011 Sterling( ... 3826) $27,855.53 F A4U (002236004389) 10/22/2011 Sterling( ... 3826) $47,986.67 F A4U (002236004389) 11/09/2011 Sterling( ... 3826) $49,383.44 F A4U (002236004389) 12/04/2011 Sterling( ... 3826) $34,390.00 F A4U (002236004389) 12/07/2011 Sterling( ... 3826) $14,675.32 F A4U (002236004389) 1/13/2012 Sterling( ... 3826) $54,093.60 F A4U (0022360043 89) 1/25/2012 Sterling( ... 3826) $51,836.00 F A4U (0022360043 89) 2/15/2012 Sterling( ... 3826) $28,957.44 FA4U (002236004389) 2/17/2012 Sterling( ... 3826) $29,299.00 FA4U (002236004389) 2/26/2012 Sterling ( ... 3 826) $59,618.60 F A4U (002236004389) 3/15/2012 Sterling ( ... 3 826) $25,178.63 F A4U (002236004389) 3/17/2012 Sterling ( ... 3 826) $24,835.12 F A4U (002236004389) 3/23/2012 Sterling ( ... 3 826) $57,217.03 FA4U (002236004389) 4/01/2012 Sterling( ... 3826) $26,036.12 F A4U (002236004389) 4114/2012 Sterling( ... 3826) $56,380.66 F A4U (002236004389) 4/24/2012 Sterling ( ... 3 826) $70,589.52 F A4U (002236004389) 5/20/2012 Sterling ( ... 3 826) $39,112.49 F A4U (002236004389) 5/26/2012 Sterling( ... 3826) $59,075.59 F A4U (002236004389) 6/06/2012 Sterling( ... 3826) $53,944.16 F A4U (002236004389) 6/22/2012 Sterling (.: .3826) $38,987.48 F A4U (002236004389) 6/29/2012 Sterling( ... 3826) $51,227.12 F A4U (002236004389) 7/11/2012 Sterling ( ... 3826) $51,829.64 F A4U (002236004389) 7/28/2012 Sterling( ... 3826) $56,491.58 F A4U (002236004389) 8/10/2012 Sterling( ... 3826) $27,796.46 F A4U (002236004389) 8/12/2012 Sterling( ... 3826) $22,577.08 F A4U (002236004389) 8/15/2012 Sterling ( ... 3 826) $19,670.08 F A4U (002236004389) 9/07/2012 Sterling ( ... 3 826) $70,509.88 F A4U (002236004389) 9/08/2012 Sterling ( ... 3 826) $29,424.70 F A4U (002236004389) 9/13/2012 ~Herling ( ... 3 826) $69,065.50 F A4U (002236004389) 9/29/2012 ~terling ( ... 3 826) $38,104.66 F A4U (002236004389) 10/06/2012 Sterling ( ... 3 826) $19,982.20 F A4U (002236004389) 10/14/2012 Sterling( ... 3826) $52,781.66 F A4U (002236004389) 10/20/2012 ~terling ( ... 3826) $66,753.96 F A4U (002236004389) 10/27/2012 Sterling( ... 3826) $50,246.56 F A4U (002236004389) 11/07/2012 Sterling( ... 3826) $44,529.85 F A4U (002236004389) 11/14/2012 Sterling( ... 3826) $40,533.80 F A4U (002236004389) 11/28/2012 Sterling( ... 3826) $58,172.76 F A4U (002236004389) 12/10/2012 Sterling( ... 3826) $76,193.20 F A4U (002236004389) 1124/2013 Sterling ( ... 3826) $73,440.72 F A4U (002236004389) 1131/2013 Sterling ( ... 3826) $60,638.27 F A4U (002236004389) 2/13/2013 Sterling( ... 3826) $70,272.93 F A4U (002236004389) 3/6/2013 Sterling( ... 3826) $64,985.00 F A4U (002236004389) 3/17/2013 Sterling( ... 3826) $59,985.00 F A4U (002236004389) 3/23/2013 Sterling ( ... 3 826) $52,016.50 F A4U (002236004389)

12


4110/2013 ~ terling ( ... 3826) $74,257.88 F A4U (002236004389) 4/22/2013 ~ terling ( ... 3 826) $52,267.34 FA4U (002236004389) 5/7/2013 ~ terling ( ... 3 826) $70,107.00 F A4U (002236004389) 5/22/2013 ~ terling ( ... 3826) $60,353.35 F A4U (002236004389) 6/2/2013 ~ terling ( ... 3 826) $66,469.25 F A4U (002236004389)

i

6/12/2013 ~ terling ( ... 3 826) $66,781.45 F A4U (002236004389) 6/27/2013 ~ terling ( ... 3826) $73,579.15 F A4U (002236004389) 7110/2013 ~ terling ( ... 3 826) $60,888.00 F A4U (002236004389) 7/26/2013 ~ terling ( ... 3 826) $66,542.40 FA4U (002236004389) 8/10/2013 ~ terling ( ... 3826) $80,775.19 F A4U (002236004389) 9/3/2013 ~ terling ( ... 3826) $72,162.60 F A4U (002236004389) 9/18/2013 ~ terling ( ... 3 826) $72,367.80 F A4U (002236004389) 9/30/2013 ~ terling ( ... 3826) $59,132.20 F A4U (002236004389) 10/17/2013 ~ terling ( ... 3826) $69,703.00 F A4U (002236004389) 11/12/2013 ~terling ( ... 3826) $58,777.80 FA4U (002236004389) 12/02/2013 ~ terling ( ... 3 826) $37,468.40 F A4U (002236004389) 12/04/2013 ~terling ( ... 3826) $66,196.00 F A4U (002236004389) 12110/2013 ~ terling ( ... 3 826) $82,146.40 F A4U (002236004389) 1/24/2014 ~ terling ( ... 3 826) $40,883.60 F A4U (002236004389) 3/25/2014 ~ terling ( ... 3 826) $82,150.40 F A4U (002236004389) 3/26/2014 ~terling ( ... 3826) $71,160.40 F A4U (002236004389) 3/27/2014 ~ terling ( ... 3826) $77,127.60 F A4U (002236004389) 3/31/2014 ~ terling ( ... 3 826) $69,757.20 F A4U (002236004389) 4/1/2014 ~ terling ( ... 3 826) $70,249.20 F A4U (002236004389) 5/20/2014 ~terling ( ... 3826) $66,952.00 F A4U (002236004389) 5/22/2014 ~ terling ( ... 3826) $53,276.12 F A4U (002236004389) 6111/2014 ~ terling ( ... 3 826) $71,600.52 F A4U (002236004389) 6/17/2014 ~ terling ( ... 3 826) $80,380.32 F A4U (002236004389) 7/07/2014 ~terling ( ... 3826) $73,308.72 F A4U (002236004389) 7117/2014 ~ terling ( ... 3 826) $88,745.48 FA4U (002236004389)

$6,355,599.89

USFWS agent, and inspectors intercepted and covertly inspected five of Sterling's shipments from its

F A4U factory in the P h.ilippines. Upon inspection, these intercepted shipments were found to contain imitation

Native American-styh: jewelry consistent with what agents have observed for sale and purchased as purported

genuine Native Ameripanjewelry at retail stores across New Mexico. And although the invoices confirm that I

the imitation Native A~erican-style jewelry was manufactured in the Philippines, none of the jewelry was

indelibly marked with its country of origin as required by law. In fact, all of the imported jewelry inspected by

USFWS, which was ir delibly stamped with various initials and Native American symbols, was placed inside

plastic bags outfitted v ith "Handmade in Philippines" decals. The jewelry could be easily separated from the

plastic bags and it wm ld be impossible for an unsuspecting consumer to determine the jewelry's country of ..

ongm. I

I 13

I

!

I ~- --


I

For example, lVSFWS Wildlife Inspectors (WI) stationed at the port of Louisville, KY, inspected

Sterling shipments imtorted from FA4U on May 29,2012, and July 30,2012. During these inspections, the

Wis photographed ite s contained in the shipments for my review. In these cases, I noted that the jewelry

appeared to be Native American-style. The pieces of jewelry were engraved with symbols or initials and placed

in individual bags, an the bags that contained the individually-packaged jewelry were affixed with "Handmade

in Philippines" decals None of the items in the shipment was indelibly marked with country-of-origin I

information as requir9d by 19 U.S.C. § 1304. And the importer of record for the shipments was listed in import

declarations as Sterli I Sheda Khalaf and the exporter of record was listed as F A4U.

Destination for all F. 4U jewelry imported by Sterling

My review of he documentation for each of the approximately 300 shipments Sterling imported from

FA4U, reveals a singl destination location: Sterling's registered business location at 5815 Menaul Blvd.,

Albuquerque, NM 87 10. In many cases, the imports were signed as received upon delivery by Sheda Khalaf

herself. Trash recove y operations conducted outside Sterling recovered some ofthe FA4U shipping boxes, I

invoices and other shipping documentation, confirming that the F A4U imports were sent directly to Sterling.

Based on the five ins~ected shipments from F A4U to Sterling, I was able to note and match the distinct F A4U I

boxes, which are wratped entirely in duct tape, and the F A4U plastic packaging for its jewelry. The plastic

packing is distinctly crisp, clear and is affixed with "Handmade in Philippines" decals. Additionally, each piece

of jewelry is placed i side a smaller plastic bag, which is then aggregated in a larger plastic bag with other

individually bagged p"eces of jewelry.

Sterling's late t import from FA4U was declared on October 16,2015. The import was declared as

containing 3,055 piec s of jewelry at a declared value of$49,192. As of October 21,2015, Sterling continues

to operate its busines at 5815 Menaul Blvd., Albuquerque, NM 87110.

Distribution pointfo all FA4U jewelry imported by Sterling

As mentioned above, my investigation has revealed a coalition of businesses and individuals associated

with Sterling. Based on follow-up investigations of those businesses and individuals associated with Sterling, I

know that Sterling's tocation at 5815 Menaul Blvd., Albuquerque, NM 87110, serves as the United States hub

for the distribution ?f Sterling imported Native American-style jewelry to wholesalers and retailers alike. I

Electronic communifations between Sterling and other members of the Sterling Coalition, as well as

surveillance of Sterl~ng' s business location, demonstrates that retailers and wholesalers pick-up imported I

jewelry directly fromiSterling. For example, my examination ofemails revealed arrangements for Asad Shawar

(a travelling retailer and buyer for Bullion Jewelers in Breckenridge, CO), to pick-up an order of imported

jewelry directly fro Sterling. Similarly, surveillance has revealed several known Native American-style

jewelry wholesalers t Sterling's location with vans used to transport merchandise.

14


Examples of How Ste ling's Imported Jewelry is Sold in Violation of 18 U.S. C.§ 1159

My financial i vestigation established direct links between Sterling and over ten retail stores that sell

Sterling's Filipino-rna e jewelry as genuine Native American-made jewelry. For example, financial records

reveal significant and egular payments to Sterling from Bullion Jewelers, located in Breckenridge, Colorado. I

travelled to Buillon Je elers, at 121 South Main St. in Breckenridge, CO, and observed and covertly recorded

Taha Shawar (the ow er ofBullion Jeweler's) display for sale and sell Sterling-imported jewelry as Native

American-made. I

Email comm~ications and invoices confirm the relationship between Taha Shawar and Nader Khalaf of

Sterling. One such intoice dated May 31, 2010, from Sterling to Bullion, details one thousand two hundred and

fifty-four (1,254) piec s of jewelry for a total of$49,548.08. The invoice is titled, "Fashion Accessories 4 U,"

and contains the corre ponding Philippine address, telephone number and other business information.

Additionally, the invo ce contains a statement which reads, "The goods are wholly the manufacture of

Philippines and are di ferent articles of commerce that have been manufactured in Philippines." The email

exchanges between B llion and Sterling and then Sterling and F A4U illustrate how retailers request particular

items to be produced t Sterling's factory and even the specific initials to be stamped on those items. For

example, the email th ead below memorialized Shawar' s request that Sterling's F A4U factory stamp the

requested jewelry wit the initials, "E.Y."

I [FromiShawar To Sterling on July 23, 2013]

"Nade please make sure they stamp the item with letters E.Y.

Thank very much

Best R gards

Taha" I i

I

I [From Sterling To FA4U]

1 "Ok, please make but be sure to make initials E.Y. Not urgent, just send

with the next ~hipment. Thank You!"

I

[From F A4U to Sterling ]

"Noted sir, How many the qty & the colors?"

15


Sterling also sl nt images attached to emails to Taha Shawar from which he could select for replication at

F A4U. The images appear to be from Lazuli Designs, a Gallup-based manufacturer that employs several Native

American artists, including Edison Yazzie.

On August 5, l 014, I visited Bullion in a covert capacity and determined that Shawar was selling the

"E.Y."-stamped, Filiplino jewelry as genuine Native American jewelry, made by "Edison Yazzie." When an

assisting agent asked about a butterfly necklace with the I letters, "E.Y.," stamped on the back, Shawar responded that

they stand for, "Edisoj1 Yazzie." The butterfly necklace

matched one of the im.ages sent by Sterling for Shawar's

selection. Shawar also misrepresented numerous other pieces

of jewelry I knew to be consistent with Sterling's imports,

including representin~ Sterling's raincloud-stamped rings as

Zuni made.

Lastly, I obsered several pueblo scene bracelets which were consistent with Sterling imports, in that

their inlay, and stamp~ and initials on the inside, were in the exact same location and manner as the Sterling

items.

Shawar told me that the bracelets were Zuni made. I purchased the bracelet and later confirmed its origin as

Sterling-imported by f omparing it to photographs taken during inspections of intercepted Sterling shipments.

Additionally, the following sections of this affidavit, outline how each of the members of the Sterling Coalition

are financially linked to Sterling and the fraudulent sale of Sterling-imported jewelry as real Native American

made jewelry.

16


Most Recent Activity

Sterling has c ntinued to import shipments of jewelry from its FA4U factory in the Philippines on a

regular basis. The la t shipment declared was on October 16, 2015, destined for delivery at Sterling's business

location on Menaul st. in Albuquerque, N.M. Members of the Sterling Coalition have continued to use

Sterling's location as 1

1a distribution point. On September 12, 2015, Mohammad Manasra, whose activities are

detailed below as Tar~et 5, was observed backing-up one of the vans he uses to transport jewelry to the front

doors of Sterling in a Fanner consistent with loading merchandise. Afterwards, a trash recovery operation at

Sterling revealed pac*aging consistent with Sterling's imports. I

Based on the (acts related within this affidavit, my training and experience, and the training and i

experience of agents *nd investigators involved in this investigation, there is probable cause to believe that the

items to be seized as ~escribed in Attachment B, which is attached hereto and fully incorporated herein, will be I

located at the premis1s described in Attachment A, and are evidence, fruits, and instrumentalities of violations

of 18 U.S.C. § 542 (irpportation by false or fraudulent practice), 19 U.S.C. § 1304 (failure to mark goods with

country of origin), 18 U.S.C. § 1159 (violation of the Indian Arts and Crafts Act), and 18 U.S. C. § 371

(conspiracy).

17


2. Business Na e:

Owner Name

Search Locatron:

Organizationri Role:

Financial Link to St~rling

Al Zuni

N as hat Khalaf

1603 West Hwy 66, Gallup, NM 87301

Wholesaler/Retailer

An examinati< n of Sterling's financial records revealed $1,367,461 in payments from Al Zuni to

ng from July 16 Sterli

withB ank of Americ<

Date 7/16/2010 8116/2010 2111/2011 2/22/2011 3/18/2011 7/11/2011 8/5/2011 8/19/2011 9/20/2011 10/20/2011

1/6/2012 2/22/2012 3/19/2012 4/16/2012 5/25/2012 7/25/2012 8/10/2012 9/10/2012 10/10/2012 12/24/2012

1/22/2013 1/29/2013 2119/2013 2/19/2013 2/25/2013 4/8/2013 6/7/2013 8/2/2013

9/16/2013 6/16/2014

2010 to July 15, 2014. The payments were made from Al Zuni to the Sterling acco

(Acct.# 435017473826).

Sender I Memo Amount Payee Al Zuni I Jewelry $16,500.00 Sterling Islands Al Zuni Global I Jewelry $17,000.00 Sterling Islands Al Zuni Global $23,834.00 Sterling Islands Al Zuni Global I Credit Cards $48,500.00 Sterling Islands Al Zuni Global I Jewelry $46,124.00 Sterling Islands Al Zuni Global $3,860.00 Sterling Islands Al Zuni Global $1,500.00 Sterling Islands Al Zuni Global $63,622.00 Sterling Islands Al Zuni Global $63,622.00 Sterling Islands Al Zuni Global $63,622.00 Sterling Islands Al Zuni Global $52,000.00 Sterling Islands Al Zuni Global $96,177.00 Sterling Islands Al Zuni Global $96,177.00 Sterling Islands Al Zuni Global $18,000.00 Sterling Islands Al Zuni Global $44,333.00 Sterling Islands Al Zuni Global $44,333.00 Sterling Islands Al Zuni Global $81,547.00 Sterling Islands Al Zuni Global $81,547.00 Sterling Islands Al Zuni Global $81,547.00 Sterling Islands Al Zuni Global I Jewelry Chain

$2,765.00 Sterling Islands #1468 Al Zuni Global $32,332.00 Sterling Islands Al Zuni Global $4,530.00 Sterling Islands Al Zuni Global $32,332.00 Sterling Islands Al Zuni Global $47,500.00 Sterling Islands Al Zuni Global $47,500.00 Sterling Islands Al Zuni Global $5,330.00 Sterling Islands Al Zuni Global $3,736.00 Sterling Islands Al Zuni Global $30,685.00 Sterling Islands Al Zuni Global $23,692.00 Sterling Islands Al Zuni Global $96,607.00 Sterling Islands

18

unt


....------------....------------------ --- - -· ·--····----··-- - -

7115/2014 II Al Zuni Global $96,607.00 I Sterling Islands

On August 23 2015, I observed Nashat Khalaf at Sterling. I observed Khalaf exit the business through

the front door, enter + vehicle, a Mercedes SUV, and leave the location. A registration query of the vehicle

revealed that the Mer<eedes SUV is registered to Al Zuni Global Jewelry.

On Septembe1 22, 20 15, I again observed N ashat Khalaf, at Sterling. Specifically, I observed Khalaf

engaging in behavior consistent with loading the Mercedes cargo van that he was driving. I observed him close

the rear cargo doors (the vehicle was backed up to the front door of Sterling), get into the driver's seat of the

van, and depart the business. A registration query revealed that the Mercedes cargo van I saw Khalaf driving is

registered to the business AI Zuni Global Jewelry Inc.

Covert Purchases I

On November 13, 2014, I visited Al Zuni in a

covert manner. A male employee introduced himself to me

as "Zaher," and assist d me throughout the contact. I later

identified the subject as Zaher Mostafa, the manager of Al

Zuni. While in the sti re, I observed a collection of silver

and onyx rings which I recognized as being similar to rings

imported by Sterling 1 n July 30, 2012. I recalled that the

contents of that ship1J ent, and specifically the same style

ring, were photograp ed and documented during the

inspection. In the "mr•r-.r·t p ri shipment, eighty (80) ofthe same style rings were bagged together. One of these

19

rings was labeled, "AL-Zuni sample." The "AL

Zuni sample," ring was marked with a stamp on the

inside which differed from rest of the items. The

other rings were marked with, "OY," initials. The

bag appeared to contain one original sample and a

series of replicas made from that sample. I looked

at the rings in the store and observed that the

markings appeared to be the same as the, "AL-Zuni

sample," from the Sterling import. Mostafa told me

that the rings were made by the silversmith, Ray

Jack.


I then asked ostafa if they had any small silver canteens in the store. I referred to them as, "Navajo

canteens," as I knew is to be the industry term for them. I had seen these items in the Sterling shipment that I

inspected on September 10, 2012. During that inspection, I also noted that there appeared to be an original

"sample" canteen baglged with twenty exact replicas. Mostafa told me that

they did have some id the store and showed them to me. I observed that

the canteens were co+stent with those imported by Sterling.

On November 24, 2014, an assisting USFWS SA and I conducted a

covert contact and purchase of evidence at Al Zuni. Mostafa recognized

me from our previous interaction and assisted us throughout the contact.

Mostafa advised us r garding the system of buying at Al Zuni.

Specifically, Mostafa said, "I carry all kind of jewelry. Navajo, Zuni,

overseas ... " Mostafa aid that we could tell him what we were interested

in and he could point sin the right direction. I also observed that Nash

Khalaf was present at the store. New Mexico's Secretary of State records, as well as financial records, confirm

that Nash Khalaf is t~e owner of AI Zuni. Nash Khalaf spoke to the SAs about the jewelry in the store saying,

"all this jewelry done lby individual. .. just by eyes and by hand." I believe Nash Khalaf was referring to a

specific tray of jewelny in the store, not the entire store.

I selected fourl of the canteens that I had observed during the previous contact on November 13,2014. I

noted that there were ~everal more canteens in separate boxes available and offered for sale. I also selected

several other pieces of jewelry which I knew to be consistent with Sterling imported items.

Upon checking out, Mostafa went through the items that we selected for a possible purchase. I asked

about the canteens anh Mostafa explained that, "they're made here locally .. . Navajo, yes .. . That's a Navajo

canteen .. . " Mostafa ~hen informed us that the rest of the jewelry we selected for purchase, aside from some

"Effie Calavaza" stylLewelry, 1 was imported. Mostafa, once again, pointed out that the canteens were Navajo.

I remarked that the i ported jewelry was so nice that it could be sold as Zuni made. Mostafa simply replied,

"mm-hmm." But thef Mostafa clarified, " I have to tell you." Even so, Mostafa sold the "Navajo canteens," as

Navajo-made, alongside the other items, for $1077. The four canteens alone cost $340.

1 Effie Calavaza is a .2:uni artist who has been producing Native American jewelry for over 60 years. Her jewelry is distinct in rat it incorporates snakes into the design of every piece. Recently, however, a related investigation has revealed that many "Effie Calavaza" style jewelry pieces on the market in New Mexico are not actually made by Effie Calavaza though they are sold as genuine.

20


I

taken during the S

I four canteens to photographs

I 10,2012, Sterling inspection

Comparison

canteen designs aoc;um1en1:ea during the Sterling-import

communication

and contains an

'-' J'"-~'"'u canteens also correspond to

an order placed by Zaher

canteens (which match those in the inspected, September

10, 2012, shipment) and a plastic bag with the note,

"Nader Can uncle Joe make These in Silver I need 20

[each] Zaher." Furthermore, the canteens purchased at Al

Zuni during the covert contact match the design on the

canteens depicted in this email.

Recent Activity

On October 16, 2015, an assisting federal agent

visited AI Zuni in a covert manner. The agent observed

both Zaher Mostafa and Nash Khalaf working at the

business. Additionally, the agent observed items

displayed for sale which were consistent with Sterling

imports. Specifically, the agent observed a box of small

canteens offered for sale which were consistent with those

replicated and imported by Sterling.

Based on the fucts related within this affidavit, my training and experience, and the training and

experience of agents t d investigators involved in this investigation, there is probable cause to believe that the

items to be seized as described in Attachment B, which is attached hereto and fully incorporated herein, will be

located at the premisf described in Attachment A, and are evidence, fruits, and instrumentalities of violations

of 18 U.S.C. § 542 (importation by false or fraudulent practice), 19 U.S.C. § 1304 (failure to mark goods with

country of origin), 18 U.S.C. § 1159 (violation of the Indian Arts and Crafts Act), and 18 U.S.C. § 371

(conspiracy).

21


I !

• I

3. Business Nan1e: !

I

OwnerNamd !

Gallery 8

Nael Ali

Search Locatton: 1919 Old Town Rd. NW #8, Albuquerque, NM 87104

Organization I Role: Retailer

4. Business Nante: Galleria Azul i

Owner Name~ Nael Ali

Search Locatfon: 326A San Felipe St., Albuquerque, NM 87104 i

Organization~l Role: Retailer I

I

Gallery 8 and jaalleria Azul are both located in Old Town Albuquerque. According to the New Mexico !

Secretary of State da}abase, Nael Ali is listed as the President of both Gallery 8 Inc. and Galleria Azul Inc.

Additionally, he is th~ signatory on the business accounts related to Gallery 8 and Galleria Azul.

Financial Ties to Ste~ling An examinati~n of financial records revealed approximately $58,000 in payments to Sterling from Nael

Ali, d.b.a. Gallery 8 ~r Galleria Azul. The payments were made by checks signed by Nael Ali and drawn on I ,

Gallery 8 or Gallerif Azul accounts with Bank of Albuquerque (Acct. # 8092233979 and 8093377451,

respectively). As St,rling is in the business of importing and subsequently selling their Filipino made Native

American-style jewelty and Ali's stores sell Sterling imported jewelry, it can be presumed that these payments I

were made for jewelrr imported from F A4U.

I

Date cpheck Signer I Notes Amount Payee 3/18/2011 ~ael Ali ( ... 3979) $1,000 Sterling (435017473826) 4/7/2011 ~ael Ali( ... 3979) $2,000 Sterling (435017473826) 4/15/2011 ~ael Ali( ... 3979) $2,300 Sterling (435017473826) 4/29/2011 ~ael Ali( ... 3979) $1,000 Sterling (435017473826) 5/7/2011 ~ael Ali( ... 3979) $2,507 Sterling (435017473826) 5/15/2011 ~ael Ali( ... 3979) $2,300 Sterling (435017473826) 6115/2011 ~ael Ali( ... 3979) $1,825 Sterling (435017473826) 7/15/2011 ~ael Ali( ... 3979) $1,825 Sterling (435017473826) 811/2011 -.Jael Ali( ... 3979) $1,825 Sterling (435017473826) 11/18/2011 -.Jael Ali( ... 3979) $500 Sterling (435017473826) 11/18/2011 -.Jael Ali( ... 3979) $500 Sterling (435017473826) 11/25/2011 -.Jael Ali( ... 3979) $1,000 Sterling (435017473826) 12/2/2011 -.Jael Ali( ... 3979) $416 Sterling (435017473826) 12/2/2011 -.Jael Ali ( ... 3979) $1,000 Sterling (435017473826) 12/10/2011 -.Jael Ali( ... 3979) $1,000 Sterling (435017473826)

22


----

12/16/2011 \l"ael Ali ( ... 3979) $555 Sterling (435017473826) 1/8/2012 \l"ael Ali ( ... 3979) $1,000 Sterling (435017473826) 1/10/2012 \l"ael Ali ( ... 3979) $1,000 Sterling (435017473826) 2/8/2012 \l"ael Ali ( ... 3979) $1,000 Sterling (435017473826) 3/10/2012 \l"ael Ali( ... 3979) $1,000 Sterling (435017473826) 4/29/2012 \l"aelAli ( ... 3979) $500 Sterling (435017473826) 7/5/2012 \l"ael Ali ( ... 3979) $800 Sterling (435017473826) 7/18/2012 \l"ael Ali( ... 3979) $500 Sterling (435017473826) 7/29/2012 \l"ael Ali( ... 3979) $800 Sterling (435017473826) 8/08/2012 \l"ael Ali( ... 3979) $500 Sterling (435017473826) 8/18/2012 \l"ael Ali( ... 3979) $800 Sterling (435017473826) 8/28/2012 \l"ael Ali( ... 3979) $500 Sterling (435017473826) 11/3/2012 \l"ael Ali( ... 3979) $2,000 Sterling (435017473826) 11/4/2012 \l"ael Ali( ... 3979) $1,571 Sterling (435017473826) 12/5/2012 \l"ael Ali( ... 3979) $2,000 Sterling (435017473826) 12/5/2012 \l"ael Ali( ... 3979) $1,000 Sterling (435017473826) 7/25/2013 \l"ael Ali( ... 3979) $1,000 Sterling (435017473826) 7/28/2013 \l"ael Ali( ... 3979) $1,250 Sterling (435017473826) 8/16/2013 \l"ael Ali( ... 3979) $1,500 Sterling (435017473826) 8/20/2013 \l"ael Ali( ... 3979) $1,500 Sterling (435017473826) 9/18/2013 \l"ael Ali( ... 3979) $1,500 Sterling (435017473826) 9/20/2013 \l"ael Ali( ... 3979) $1,500 Sterling (435017473826) 10/15/2013 \l"ael Ali( ... 3979) $1,000 Sterling (435017473826) 10/18/2013 \l"ael Ali( ... 3979) $1,000 Sterling (435017473826) 11120/2013 \l"ael Ali( ... 3979) $1,500 Sterling (435017473826) 11115/2013 \l"ael Ali( ... 3979) $1,500 Sterling (435017473826) 11115/2013 \l"ael Ali ( ... 7451) $1,500 Sterling (435017473826) 11120/2013 \l"ael Ali( ... 3979) $1,500 Sterling (435017473826) 1120/2013 \l"ael Ali ( ... 7451) $1,500 Sterling (435017473826) 10/7/2014 \l"ael Ali ( ... 7451) $690 Sterling (435017473826) 10/8/2014 \l"ael Ali( ... 3979) $1,000 Sterling (435017473826) 10/18/2014 \l"ael Ali ( ... 7451) $1,000 Sterling (435017473826)

I $56,964 !

I

Covert Purchases !

i

During one of the previously mentioned covert inspections, which took place on September 10, 2012

(UPS air waybill H8~6-7699-001), I took note of a package of fifty-two (52) rings (Item# RNG-1325-MAN). I

All of the rings were ~imilar in design, but twenty (20) of the rings were the same in that they were made in the

"cornrow" style, use~ brown and black stones, and bore the initials, "CK," on the inside. I I

i

23

i


Ultraviolet ink

visible under

exposure to black

light

the ink was visible using an ultraviolet light source after applying the ink. Finally, I

sealed the boxes.

,....,u .•u'-'~1 12, 2012, I conducted a surveillance of Sterling at 5815 Menaul Blvd. in Albuquerque,

"KHALAF" signed for five UPS shipments including H896-7699-001.

26, 2012, I observed several pieces of Native American-style jewelry offered for sale in

the store, Gallery 8, located at 1919 Old Town Road, NW #8, Albuquerque, NM, which were consistent with

those that were imported by Sterling. None of the jewelry in the store, that was consistent with the Sterling

impmis, was marked to notify the customer that it was made in the Philippines. The store employee told me

that everything in the store was Indian (Native American) made except the amber jewelry. I observed two rings

24


which were identical to the rings I had covertly marked in the September 10, 2012, Sterling shipment (UPS

#H896-7699-001, invoice item number RING-1325). I asked to look at the rings and observed that they were

inscribed with the ini, als, "CK," just as the Sterling rings had been.

. I was told tha, the rings were Navajo made. The employee told me that the manager would call me with

the name of the "CKi' artist. I was then told that the owner of Gallery 8 also owns another gallery, Galleria

Azul, which was loc*ed just a few blocks away. I purchased the two rings and other jewelry consistent with

Sterling importations via credit card from Gallery 8 for a total of $689.08 . After purchasing the items, I

confirmed that the rings were, in fact, rings from the September 10,2012, Sterling shipment (UPS #H896-7699-

001) by exposing them to ultraviolet light and confirming the presence of ultraviolet visible ink.

On Novembe, 30, 2012, I again visited Gallery 8 in a covert manner. The manager was present at the

store. I told the maj ager, that I had purchased two rings a few days prior and wanted to know the artist's

identity. The manager told me that she had to get into the owner's (Nael Ali), computer to get the artist's name.

Independent research confirmed that Ali is the owner of Gallery 8 and Galleria Azul in both Albuquerque and

Scottsdale, AZ.

After leaving !Gallery ~ on November 30, 2012, I visited Galleria Azul in a covert manner. I observed

many of the same items that I had seen in Gallery 8, in Galleria Azul. I also saw another ring, identical to those

I had marked in the s ferling shipment, for sale. The store employee explained that Galleria Azul had mostly the

same items as were in Gallery 8. I asked about a turquoise ring which looked consistent to rings imported by

Sterling on July 30, 2b12.

Galleria Azul rings consistent with Sterling

Import

Galleria Azul ring- "OY" Initials same as

Sterling Import

25


Photograph taken during Sterling shipment

inspection in Louisville, KY

"OY" initials same a ~ Galleria Azul ring

Photograph taken during Sterling shipment

inspection in Louisville, KY

The employee told rme that the ring was made using "Cerillos" turquoise and that it was Navajo made. I

observed that the ring was inscribed with the initials "OY" just as the Sterling rings were. The employee told

me that the galleries (Gallery 8 and Galleria Azul) are owned by the same person and they interchange items

and stock. I purchaser the ring for a total of $96.30.

On February 26, 2014, I visited Gallery 8 and Galleria Azul in a covert manner. I spoke to the manager

while at Gallery 8. The manager remembered me and told me to pick out the items I was interested in and then

she would call Ali and, "take care of it." I referenced a ring I was wearing (one of the marked rings which I

purchased previously) and asked if they had any more in stock. The manager said that she only had a similar

type in stock, but not the same one. I asked if Gallery 8 could contact the artist to get more produced. The

manager said they coJ ld contact the artist, "Calvin Kee," and see if that would be possible. I was again told that

all of the jewelry in tf e store was Navajo-made with the exception of three pieces which were Zuni made. The

manager then said sHe would call Ali to determine final pricing on the jewelry. The manager also said she

would have Ali contact "Calvin Kee" to see about getting more jewelry. The manager said that "Calvin Kee"

exclusively supplies Gallery 8 with his jewelry. I then walked over to Galleria Azul. While in the store, I

observed jewelry, pottery, and paintings for sale. The jewelry was consistent with that which is imported by

Sterling. I was told that all of the jewelry was Navajo made. Another USFWS SA then asked for a list of artists

and the corresponding initials. The store employee told me that she had a list and could make a copy.

Additionally, ihe employee made the following statements regarding the jewelry and the artists ' names

and initials:

o "Sometimes I forget and make stuff up. I know that' s bad."

o "We make it up. I'm not gonna lie ... You guys are in the business, you have to

26


I

underjand." (Agent's Note: This statement was made in response to the SA's

questi n about what they do when artists have the same initials.)

o "It is a}l handmade ... I'm not lying about that ... "

o "It's al~ locally made."

I then returnelto Gallery 8 and the manager told me that they have a third shop, called Galleria Azul, in

Scottsdale, Arizona. he manager told me that she spoke to Ali and she would take a photograph of my "Calvin

Kee" ring and get mo e made. The manager called Ali using the wireless telephone in the store. After getting

off the telephone, the I manager told me that Ali said they would get in touch with the artist, "Calvin Kee." At

that time, the manage~ told me Calvin Kee was born in 1964. I asked for a key to the symbols on some of the

rings. The manager !explained that the feather symbol is for the Yazzie family, "AA" corresponds to Juan

Armas, the Yucca syfbol corresponds to Ardale, and "OY" corresponds to Olivia Yazzie. I recognized all of

these symbols and in*ials as consistent with symbols on jewelry imported by Sterling. The manager then took I

photographs of my ri1g, using her cell phone, to show to Ali.

I placed an otper for ten copies of the ring that the manager photographed and ten additional "Calvin

Kee" rings. I then p~rchased five rings with "CK" initials, one ring with a Yucca symbol, one ring with "NB"

initials, one ring with I "OY" initials, three rings with raincloud symbols, and one ring with a feather symbol for

$1116. The manager faid that it would take at least three weeks for the ordered rings to be produced.

On April 2, 2p 14, a USFWS SA contacted the manager at Gallery 8 via telephone. The SA inquired

about the status of th rings that were ordered on February 26, 2014. The manager told the SA that the rings

were still being prod ced. Additionally, the manager said that she did not want to rush the artist because the

SAs desire a high qua ity product.

Open source r search did not reveal any Navajo artists named Calvin Kee. I also requested the

Department oflnterior, Indian Arts and Crafts Board to confirm any known Native American artists with the I

name, Calvin Kee. T~eir research returned no results for that name. Finally, the Navajo Nation confirmed that

there were no Navajo !tribal members, named Calvin Kee and born in 1964, on their rolls.

On May 15, 2~14, Sterling imported a shipment of jewelry from FA4U. I reviewed the invoice for that

shipment and noted t~e first item number listed was RING-1325, which was consistent with the item number for

the Sterling-importedlrings that I had first inspected and marked on September 10,2012, as well as the rings I

had observed and ord red from Gallery 8 on February 26, 2014.

On May 29, 2 14, I visited Galleria Azul in Scottsdale, Arizona, in a covert manner. I entered the store

and observed Ali wor ing behind the counter in the store. I observed jewelry offered for sale in the store which

was consistent with t at imported by Sterling. I introduced myself and told Ali that I had placed an order for

"Calvin Kee" rings at the Albuquerque store. Ali immediately knew what I was referring to. Ali told me that

27


----------- ------

he had more "Calvin tee" rings if I wanted them. Ali told me that the order of rings had arrived a week ago I

and were currently at ~is Albuquerque store. Ali told me that all of the jewelry in the store is Native made. Ali

told me that people in! Albuquerque want all Native made items so that is what he carries in his Albuquerque

stores, as well. Finallf, I purchased a ring from Ali which was consistent with those imported by Sterling. Ali

told me that the ring ~as Navajo made and I purchased the item for a total of$120. I

On May 31, 2~ 14, I visited Gallery 8 in Albuquerque, New Mexico, in a covert manner. The manager

told me that Ali got i~ touch with the artist and that "Calvin Kee" did not have a lot of the stones available so he

couldn't make them afl in brown (the color of the original ring to be copied for the order). The manager told me

that "Calvin Kee" ma~e twenty rings in total. The manager told me that the rings retail for $270 but were sold

to me for $90 each. ~he manager told me that she would FedEx the items to New York for me and that this was '

a normal business pra~tice for the store. I paid a total of $1800 for the rings and $20 for the shipping by credit

card transaction. Thelitems were all sold to me in violation ofthe IACA (18 U.S.C. § 1159). I I

On June 5, 20~4, a USFWS SA stationed in Valley Stream, NY notified me that the Gallery 8 shipment

had been delivered, vfa FedEx. On June 11, 2014, I received a FedEx package from the USFWS SA stationed

in Valley Stream, NY~ The original FedEx package which was sent from Gallery 8 to New York was unopened.

Upon opening the pa~age, I found it to contain twenty rings with the initials "CK" stamped into them. I

Recent Activity

On October 1~, 2015, an assisting federal agent visited Gallery 8 in a covert manner. While in the I

business, the agent s~ke with Ali who said that the jewelry in his store is, "all Navajo ... everything you see in

my store is Navajo .. jeven the inlay is Navajo." The agent observed jewelry displayed and offered for sale

which was consistent! with Sterling imports. Specifically, the agent observed a ring with a raincloud symbol

stamped into it. Ali ~old the agent that he had a store in Scottsdale, AZ, until recently. When the agent asked

about the Scottsdale Jtore, Ali told the agent that he carried the same merchandise in that store. Ali went on to

say that it made thing~ very difficult in Scottsdale because the consumer "had the image that everything is fake,

everything is bad." )\.fter leaving Gallery 8, the agent visited Galleria Azul in a covert manner as well and, '

again, observed jewe~ry displayed and offered for sale which was consistent with Sterling imports. During my

review of the video t~ken during the covert contact, I observed several items offered for sale in Galleria Azul

consistent with both *erling and IJW2 imports.

Conclusion

Based on thel facts related within this affidavit, my training and expenence, and the training and

experience of agents rnd investigators involved in this investigation, there is probable cause to believe that the '

2 Based on my invest~gation, I know that I Jewelers Wholesale d.b.a. Golden Bear ("IJW"), is an importer and (L ~. retail supplier ofFilidino-made, Native American-style jewelry, located in Calistoga, CA. --TJV\.1 ,... '~~ \ ' Ur-..c:~'-'"'9 -2) 0~ ,yor v~(':) /rJ ~..-v"-"'":Y 1-V,,--~ r~E Co;)c.c,y~ c:::u= DA.!.t:;'"'·

28 ~


items to be seized as escribed in Attachment B, which is attached hereto and fully incorporated herein, will be

located at the premis s described in Attachment A, and are evidence, fruits, and instrumentalities of violations

of 18 U.S.C. § 542 (i portation by false or fraudulent practice), 19 U.S.C. § 1304 (failure to mark goods with

country of origin),

(conspiracy).

U.S.C. § 1159 (violation of the Indian Arts and Crafts Act), and 18 U.S.C. § 371

29


5. Business Na~e: A.N. Jewelry

Owner Name s): Arafat H. Nimer and Maria Nimer

Search Locat on: 2304 Cagua NE, Albuquerque, NM 87110 (Nimer)

6. Business Na e: Mohammad Manasra (Sole Proprietor)

OwnerNamel: Mohammad Manasra

Search Locat~on: 909 Tumulus Dr. NW in Albuquerque, NM 87120 (Manasra)

Search Prop~rty:

I

OwnerNamel:

Search Prop,rty:

2011 Chevrolet Express G 1500 Cargo Van NM license plate number "NHR850" VIN "1GCSGAFXOB1140402"

Abdel Manasra

2005 Dodge Grand Caravan NM license plate number "MLA224" VIN "2D4GP44L55R166343"

2002 Mercedes-Benz 500ML NM license plate number "MWH283" VIN "4JGAB75E52A323268"

Open source 4ueries of the A.N. Jewelry Company indicate that it is listed as operating in the

" ... jewelry, precious ~tones and precious metals" industry. Furthermore, the Cagua residence and the A.N.

Jewelry Company an: both listed as being owned by Arafat Nimer. A search of any public or retail outlet for

the sale of jewelry by A.N. Jewelry or Nimer returned negative results.

Financial/inks to St rling

An examinati m of financial records, revealed that Nimer d.b.a. A.N. Jewelry Company has purchased

over $15,000 injewe ry from Sterling.

Date Check Signer I Memo Amount Payee 6/712011 MariaNimer $1500 Sterling Islands

711112011 MariaNimer $1500 Sterling Islands

711512011 I

Maria Nimer $1000 Sterling Islands I

811512011 Maria Nimer I Jewelry $1000 Sterling Islands

813112011 MariaNimer $1500 Sterling Islands

i

912012011 I

MariaNimer $1000 Sterling Islands

30


10/2012011 MariaNimer $760 Sterling Islands

1112112011 MariaNimer

I

$1,100 Sterling Islands

1211412011 I

MariaNimer $2000 Sterling Islands

611812012 I

Maria Nimer I Jewelry $2000 Sterling Islands

71812012 I

Maria Nimer I Jewelry $1500 Sterling Islands I

712812012 I

Maria Nimer I Jewelry $1000 Sterling Islands !

I

Covert Purchases

On October 1~, 2014, I attended the Albuquerque Flea Market located at the intersection of Louisiana !

Blvd. and Central Av~. I previously obtained information from the observations of another USFWS OLE agent,

Resident Agent in Ch~rge Ariel Vazquez, that jewelry similar to the pieces Sterling had imported, was being

sold by an unidentifie~ vendor at the market.

While walkin4 through the market booths, SA Noel Wagner and I located a male subject, who identified I

himself as " ... Moharrfnad". This individual was later identified through associated Department of Motor

Vehicle (DMV) regis~ration records and photographs, as Mohammad Manasra. I observed Manasra selling

jewelry consistent wir the Sterling imported jewelry. Upon closer inspection, I recognized several of the

pieces by their overal\ design, markings, and stamped initials, as consistent with Sterling imported jewelry.

Manasra had ~everal cases, filled with Native American-style jewelry, displayed at his booth.

Additionally, a white pargo van bearing New Mexico license plate 688NPT was parked immediately behind the

area where the jewelrf was being displayed. This van, hereinafter referred to as "Original Market Van," was

subsequently identifi9d as belonging, and registered to Manasra. The registration information for the Original

Market Van revealed ~n associated address of: 2304 Cagua Drive Northeast, Albuquerque, New Mexico. This i

address is listed on laf enforcement databases as an older associated property ofManasra. Most importantly,

this address is the sar4e registered address as the official business address of the "A.N. Jewelry." I

I contacted Mfnasra in a covert manner and began to speak with him about his jewelry and the respective

prices. Manasra stater that he supplies jewelry in a " ... wholesale fashion", to locations outside ofNew Mexico.

Later review ~f financial records revealed that Manasra and the subject, Abdel A. Manassra (believed to be

Mohammad's brother~, have both sold jewelry to Gallery 8 (NM), Galleria Azul (NM) and Galleria Azul (AZ). (It

should be noted that 4allery 8 and Galleria Azul have purchased jewelry directly from S~erling and also from the

Mohammad Manasra land Abdel Manassra.) All of the checks listed below were written from one of the Gallery 8 or I

Galleria Azul accoun~s to Mohammad Manasra or Abdel Manasra.

31


Date Check Signer I Memo Amount Payee 11/11/2013 Nael Ali I Galleria Azul (AZ) $1500 Mohammad Manasra

1211212013 Nael Ali I Galleria Azul (AZ) $1543 Mohammad Manasra

I

31412014 i

Nael Ali I Galleria Azul (AZ) $1122 Mohammad Manasra

312212014 Nael Ali I Galleria Azul (AZ) $1500 Mohammad Manasra

411512014 Nael Ali I Galleria Azul (AZ) · $1500 Mohammad Manasra I

51412014 I Nael Ali I Galleria Azul (AZ) I

$1500 Mohammad Manasra

511612014 I

Nael Ali I Galleria Azul (AZ) $1500 Mohammad Manasra i

3/7/2011 I Nael Ali I Galleria Azul (NM) $2000 Mohammad Manasra !

711412011 I Nael Ali I Galleria Azul (NM) $564 Mohammad Manasra I


I

9/712011 I Nael Ali I Galleria Azul (NM) $100 Mohammad Manasra !

!


I I

101512011 I

Nael Ali I Galleria Azul (NM) $800 Mohammad Manasra I

11/5/2011 I

Nael Ali I Galleria Azul (NM) $1008 Mohammad Manasra

1112612011 I


1211012011 I


5130/2012 !


i

612612012 I

N ael Ali I Galleria Azul (NM) $420 Mohammad Manasra i

101312012 I

N ael Ali I Galleria Azul (NM) $800 Mohammad Manasra

I

1111312012 I

N ael Ali I Galleria Azul (NM) $461 Mohammad Manasra !

1211012012 N ael Ali I Galleria Azul (NM) $750 Mohammad Manasra

4120/2013

I


512512013 ! Nael Ali I Galleria Azul (NM) $1000 Mohammad Manasra !

I

32


611112013 ! N ael Ali I Galleria Azul (NM) $500 Mohammad Manasra !

I

612112013 I


!

612512013 Nael Ali I Galleria Azul (NM) $1000 Mohammad Manasra

8120/2013 N ael Ali I Galleria Azul (NM) $550 Mohammad Manasra I I

101812013 I


I 101912013

I


i

1012312013 I


3126/2014 N ael Ali I Galleria Azul (NM) $1500 Mohammad Manasra

411512014 N ael Ali I Galleria Azul (NM) $750 Mohammad Manasra I

812012014 I


I

911812014 I


101612014 Nael Ali I Gallery Azul (NM) $500 Mohammad Manasra

112112011 Nael Ali I Gallery 8 $1250 Mohammad Manasra I

211512011 Nael Ali I Gallery 8 $460 Mohammad Manasra




41412011 I

Nael Ali I Gallery 8 $780 Mohammad Manasra

411312011 I

N ael Ali I Gallery 8 $755 Mohammad Manasra I

512412011 ! N ael Ali I Gallery 8 $400 Mohammad Manasra I

I

912212011 I Nael Ali I Gallery 8 $500 Mohammad Manasra

I 1011012011

I

N ael Ali I Gallery 8 $755 Mohammad Manasra I

1011812011 N ael Ali I Gallery 8 $1000 Mohammad Manasra

1013012011 N ael Ali I Gallery 8 $1000 Mohammad Manasra I

33


511412012

I

N ael Ali I Gallery 8 $1000 Mohammad Manasra

513012012 I N ael Ali I Gallery 8 $1000 Mohammad Manasra

I 611312012

I Nael Ali I Gallery 8 $500 Mohammad Manasra

101312012 !


i

11113/2012 I Nael Ali I Gallery 8 $350 Mohammad Manasra i

I


i

1/1512013 N ael Ali I Gallery 8 $750 Mohammad Manasra


i


I

512812013 I I


i

6/11/2013 I


I


I 612812013

I N ael Ali I Gallery 8 $1250 Mohammad Manasra

I

i

812012013 ! Nael Ali I Gallery 8 $550 Mohammad Manasra '

I

101812013 I Nael Ali I Gallery 8 $1526 Mohammad Manasra I I

I

1012312013 i N ael Ali I Gallery 8 $500 Mohammad Manasra I

I


411512014 ! Nael Ali I Gallery 8 $750 Mohammad Manasra


i

812012014 ! Nael Ali I Gallery 8 $1000 Mohammad Manasra

I

911812014

I


101612014 I

N ael Ali I Gallery 8 $538 Mohammad Manasra

611312012 Nael Ali I Gallery 8 $150 Abdel A. Manassra

612612012 I Nael Ali I Gallery 8 $600 Abdel A. Manassra i

34


412812013 Nael Ali I Gallery 8 $1000 Abdel A. Manassra

I 411512014

I

N ael Ali I Gallery 8 $1000 Abdel A. Manassra

811912014 ! Nael Ali I Gallery 8 $1000 Abdel A. Manassra I

511212012 !

Nael Ali I Galleria Azul (NM) $800 Abdel A. Manassra I

!

3121/2013 !

N ael Ali I Galleria Azul (NM) $500 Abdel A. Manassra

I

312112013 I Nael Ali I Galleria Azul (NM) $500 Abdel A. Manassra I

I

411512014 I Nael Ali I Galleria Azul (NM) $1000 Abdel A. Manassra I

i

412512013 I Nael Ali I Galleria Azul (NM) $1000 Abdel A. Manassra !

512312014 ! N ael Ali I Galleria Azul (NM) $900 Abdel A. Manassra I

I

811812014 I

N ael Ali I Galleria Azul (NM) $1000 Abdel A. Manassra i

911612014 I Nael Ali I Galleria Azul (NM) $2220 Abdel A. Manassra i

111212014 I Nael Ali I Galleria Azul (AZ) $1500 Abdel A. Manassra I

i I

i

At the Albuq~erque Flea Market on October 19, 2014, I observed Manasra retrieve several plastic bags

containing jewelry fr~m the Original Market Van. While Manasra was retrieving the items, I observed that the van

contained a large inv~ntory of packaged jewelry, secured in a cardboard box. I also noted that the jewelry Manasra

retrieved from the vaJ was consistent with the Sterling imported pieces I had observed during the July 30, 2012,

Sterling importation i~spection. Specifically, I observed a ring which I knew to be consistent with a Sterling

imported ring. Upon,l handling the item, I observed the "cornrow" design and stamped leaf symbol on the inside of

the ring, which I had pbserved on several Sterling imports, during the July 30, 2012 inspection.

Manasra told ~e that he gets all his jewelry from Gallup, NM. And he also said that his brother buys the I

jewelry. When quest,oned about which tribes make the jewelry, Manasra motioned to jewelry in the cases and I

pointed out pieces th~t he claimed were made by the Navajo and Zuni. I then asked to see the "cornrow" ring for a

second time. Manasr~ described it as," ... com cut." I asked if the ring was a Zuni item, but Manasra corrected me I

and said, "No, that's tJavajo." I

I then asked see another ring displayed in one of the cases which I knew to be consistent with a Sterling

import. Specifically, recognized the overall design of the ring and the "OY," initials on the inside of the item.

35


Manasra confirmed t l t the ring was, "Navajo . . . yeah." Again, I, recognized this ring as being identical to one

documented during the July 30, 2012 inspection.

Manasra told me that he comes every weekend to the

flea market and has b~en selling at the flea market and in

Santa Fe for twenty-+ o (22) years. Manasra then picked out

a Kokopelli (Hopi Deity) design pendant and ealTing set and

gave them to me. I eJ amined the pendant and observed a

decal affixed to one s~de that read, "Made in Philippines."

Without confronting Manasra about the decal, I asked if the ~ , f I f

piece was also Zuni to which Manasra replied, "Yeah." I

also observed the sa1 e leaf symbol stamped on the inside of the pendant as those observed on the Sterling imports.

Manasra sold the itertis to me in violation of 18 U.S.C. § 1159. I observed several other items offered for sale by

Manasra that were co sistent with Sterling Imports before he left the booth.

Connection Between Manasra and A.N. Jewelry's Registered Business Address (the Nimer Property)

On July 2, 2015, RAC Ariel Vazquez conducted surveillance on the Cagua residence, in support of this

investigation. During this surveillance the agent observed a newer model, white cargo van, parked in the driveway oj

the residence, (hereinafter, "New Market Van"). The agent noted and recorded that this van bore New Mexico

license plate NHR85~. Subsequent registration queries revealed that the New Market Van is also registered to

Manasra.

On July 4, 2015, I observed Manasra and the New Market Van, parked at the Albuquerque Flea Market, in a

different booth location. SA Wagner and I both observed that Manasra had the same type of jewelry displayed for

sale in an identical mmmer as he did during the October 19, 2014 encounter. SA Wagner also noted large cardboard

boxes inside the van, L nsistent with those observed during the October 19, 2014 encounter.

On August 17 12015, SA Wagner observed Manasra and the New Market Van parked, again, at the

Albuquerque Flea M4 ket in the same location as observed on July 4, 2015 . Manasra was in the process of setting up

his booth in the same anner as previously observed. SA Wagner noted that the New Market Van now had a white,

"C-0-E-X-I-S-T" stic~er in the rear (passenger-side) window. SA Wagner also observed large cardboard boxes,

consistent with the o dtober 19, 2014 encounter, within the van.

On August 231

2015 , I conducted surveillance at the Nimer residence. At 7:44am, I observed Manasra

arrive at the location r a black Mercedes SUV which bore New Mexico license plate MWH283. Subsequent

registration queries revealed that this vehicle is registered to Abdel J. Manasra at 7401 Countrywood Ave. NW

in Albuquerque, NM. Based on statements made by Manasra during the October 19, 2014 encounter and

financial and property connections, Abdel Manasra is believed to be the brother of Mohammad Manasra. I

36


I

observed the male su~ect exit the Mercedes SUV and enter Nimer's property. The subject then backed the

New Market Van dow\n the driveway and subsequently retrieved a cardboard box from the Mercedes SUV. The i

male subject placed t~e box in the passenger seat of the New Market Van, entered the vehicle, and exited the

driveway. I observedlthe subject drive the New Market Van to the Albuquerque Flea Market located at Central

Ave. and Louisiana Blvd. Later that same day, at approximately 4:30pm, I observed the New Market Van

parked on the Nimer ~roperty. Specifically, the New Market Van was parked at the end of the driveway and

behind a chain link fe~ce which closes in the side yard of the property. I noted that the Mercedes SUV was no

longer at the Nimer p~operty.

Again, on Audust 29, 2015, at 7:20am, I observed the Mercedes SUV parked at an intersection close to

Nimer's residence. ~· ditionally, I observed that the New Market Van was absent from Nimer's property. At

3:00pm that same da , I observed the New Market Van parked behind the fence at Nimer's residence and that

the Mercedes SUV w s gone. '

And again, on August 30,2015, at 6:10am, I observed the New Market Van parked at the Nimer

property. At 8:14am, I observed one male subject fitting Manasra's description, arrive at Nimer's residence.

The subject was drivi*g a white Dodge Grand Caravan bearing NM license plate MLA224. Subsequent I •

registration queries re ealed that this vehicle is registered to Abdel J. Manasra at 7401 Countrywood Ave. NW

in Albuquerque, NM. I observed the subject retrieve a cardboard box from the Grand Caravan and place the

box in the passenger eat of the New Market Van. I then ob'served the subject leave the property driving the

New Market Van. At 1:OOpm, I observed Manasra and one additional male subject at Manasra's booth at the

Albuquerque Flea M rket. I observed the same Native American-style jewelry in glass cases, setup at

Manasra's booth. I o served the New Market Van parked behind Manasra's booth and a cardboard box, placed

in the passenger seat ffthe New Market Van. This box was consistent with the box I had seen placed in the

New Market Van at Nimer's residence, previously. At approximately 3:00pm, I observed Manasra outside his !

residence at 909 Tum~lus Dr. NW in Albuquerque, NM. I also observed the Grand Caravan parked in the street I

outside the residence. I I observed Manasra talking on a mobile phone as he appeared to be shuffling vehicles in

his driveway. j

I

On Septembd 6, 2015, I conducted surveillance at Nimer's residence. At 2:27pm, I observed one male I

subject, fitting Manasra's description, arrive at the residence driving the New Market Van. I observed the

subject retrieve a car1board box from the New Market Van and place the box in the back of the Grand Caravan.

I then observed the s~bject parking the New Market Van behind a fence of the residence.

On Septembe~ 12, 2015, at 11 :43am, I observed the Grand Caravan parked in the front parking lot of I

Sterling. I then obser~ed a male subject fitting Manasra's description drive the Grand Caravan from Sterling to

Nimer' s residence. While following the Grand Caravan, I lost visual contact for approximately two minutes. I i

: 37 I

!


regained visual contac of the van, but the driver had already parked in the driveway ofNimer's residence

directly behind the Ne Market Van and could no longer be seen outside the residence. The Grand Caravan

could not have been p rked there for more than 30 seconds before I took up surveillance ofNimer's residence.

I maintained the surv illance for approximately one hour but saw no further movement. Based on my I

investigation and exp1rience, there is probable cause to believe the driver of the Grand Caravan was inside the

Nimer residence or in lthe fenced area behind the Nimer residence. I

On September 13, 2015, at 6:43am, I observed the Grand Caravan parked back at Manasra's residence at

909 Tumulus Dr. NW in Albuquerque, NM. The Grand Caravan was backed into the driveway close to the

garage door. Then at fpproximately 7:30am, I conducted a trash cover at Sterling in an attempt to recover any

evidence of the Gran~ Caravan's visit the previous day. I recovered several large, clear plastic bags, each filled

with the empty jewelrr packaging, which was all consistent with that used in the shipments from FA4U.

On Saturday, ~ctober 24, 2015, SA Wagner conducted a surveillance ofManasra's residence at 909

Tumulus Dr. NW in 4lbuquerque, NM. Simultaneously, I conducted a surveillance of the Nimer residence at

2304 Cagua NE in Al~uquerque, NM. Both of us initiated our surveillances at approximately 6 am. SA

Wagner initially obsefved the Grand Caravan and a silver SUV parked side-by-side in the driveway of the I

residence. These twolvehicles blocked the garage from vehicle entry and exit. At approximately 7:20am, SA

Wagner left his positipn at the Manasra residence and returned at approximately 7:32am. Upon his return, SA

Wagner observed tha~ the Grand Caravan had been moved onto the street in front of the residence and the spot

that it had been parke~ in the driveway was vacant.

At approxim~tely 6am, I observed the New Market Van parked behind the fence on the Nimer

residence property. 1dditionally, I observed a white sedan parked in the driveway behind the New Market Van.

At approximately 7:3~am, I observed Manasra arrive at the Cagua residence driving the black Mercedes SUV.

I observed Manasra p~rk the vehicle across the street from the residence and enter the premises. I then observed

an unknown male su~ect move the white sedan from the Cagua residence driveway to clear the way for the

New Market Van. I t~en observed Manasra back the New Market Van down the driveway of the residence, I

walk across the street! and retrieve some items from the front passenger seat of the black Mercedes SUV. I then

observed Manasra opfn the rear lift gate of the black Mercedes SUV. Subsequently, I observed Manasra

walking away from t~e black Mercedes SUV with a white colored package and the items he retrieved from the

passenger seat. Mantsra then opened the passenger side door of the New Market Van and placed the items into

the van. This behavfor was consistent with previous surveillance operations in which Manasra was observed

retrieving items fromlthe rear cargo area of his vehicle and placing them into the New Market Van. Manasra

then entered the driv~r's side of the New Market Van, exited the driveway and drove in the direction of the I

Albuquerque Flea Mfket.

38


i

On Sunday, Oftober 25, 2015, SA Wagner conducted a surveillance ofManasra's residence at 909

Tumulus Dr. NW in 1-lbuquerque, NM. Simultaneously, I conducted a surveillance of the Nimer residence at

2304 Cagua NE in Al uquerque, NM. SA Wagner observed the Grand Caravan and a silver SUV parked side

by-side in the drivew y of the residence. These two vehicles blocked the garage from vehicle entry and exit.

At approximately 7:4 am, SA Wagner observed Manasra move the Grand Caravan from the driveway and onto

the street. SA Wagne then observed Manasra exit the garage of the residence driving the black Mercedes SUV

and leave the area.

At approximat ly 7:30am, I observed the new market van parked on the Nimer property and a white

sedan parked in the d ·veway directly behind the new market van. At approximately 7:55am, I observed

Manasra arrive at the imer residence in the black Mercedes SUV and park in front of the residence on the

street. I observed an nown male subject move the white sedan out of the driveway clearing the way for the

new market van. At :08am, I observed Manasra backing the new market van down the Nimer residence

driveway. I then obs rved Manasra exit the new market van and walk to the black Mercedes SUV where he

unlocked the rear lift ate. I then observed Manasra remove two cardboard boxes from the cargo area of the

black Mercedes SUV d place them on the front passenger seat of the new market van. The boxes were

consistent with those bserved on previous surveillances of Manasra at the Nimer residence and at the

Albuquerque flea mar et. Manasra retrieved an additional item from the front passenger area of the black

Mercedes SUV, place~ it in the new market van and drove away at 8:11 am.

At approximately 8:30am, I observed Manasra at the Albuquerque flea market setting up his

jewelry booth. I observed the new market van parked at the location and the two cardboard boxes in the front

passenger seat. I also observed Manasra organizing Native American-style jewelry on the tables set up in his

booth.

Conclusion

Based on the cts related within this affidavit, my training and experience, and the training and

experience of agents nd investigators involved in this investigation, there is probable cause to believe that the


located at the premise described in Attachment A, and are evidence, fruits, and instrumentalities of violations

of 18 U.S.C. § 542 (i portation by false or fraudulent practice), 19 U.S.C. § 1304 (failure to mark goods with !


(conspiracy).

39


7. Business Na,e:

OwnerNamer

Sundancer Jewelry, d.b.a., GS New Mexico

Mohammad Sharifi, Steve Sharifi, Soraya Sharifi

Search Locat,on: 202 San Felipe NW, Ste. A, Albuquerque, NM

Organization~l Role: Retailer

Sundancer Je'telry ("Sundancer") is a retail location located at 202 San Felipe NW, Ste. A, in the Old !

Town portion of Albufluerque, NM. Mohammad R. Sharifi is listed as the President, Zahir Sharifi is listed as

the Vice President an4 Secretary, and Steve Sharifi is listed as the Finance Administrator.

Financial Links to S~rling I

An examinatiqn of financial records revealed approximately $70,255 in payments from Abdul Sharifi !

and Soraya Sharifi, d.p.a., Sundancer I G S New Mexico Silver, to Sterling. The payments were made by

checks drawn on Sun~ancer and G S New Mexico Silver accounts with Bank of America (Acct.#

439004433752 and oq0119600617, respectively). The payments were made to Sterling's Bank of America !

account, numbered 4~5017473826.

Date c 101212012 Sc 101312012 Sc 111912013 A 511912013 A 911712013 A 312212014 A

i I

eck Signer I Notes raya Sharifi ( ... 3752) I Silver Jewelry raya Sharifi ( ... 3752) I Inv. #1447 dul Sharifi ( ... 3752) dul Sharifi ( ... 0617) I Silver Jewelry dul Sharifi ( ... 0617) I Silver Jewelry dul Sharifi ( ... 0617) I Silver Jewelry

Amount Payee $7,000 Sterling (435017473826) $5,048 Sterling (435017473826) $17,656 Sterling (435017473826) $4,506 Sterling (435017473826) $6,222 Sterling (435017473826) $10,737 Sterling (435017473826) $51,169

On January 28, 2014,lrecords were obtained which included a partial Sterling receipt titled, "Sold to: Sundancer

Jewelry (GSNM)." The tartial receipt detailed two hundred and thirteen (213) pieces of jewelry with a total

amount of $9264.

Covert Purchases I

On October 17, 2014,1 I visited Sundancer in a covert manner and observed various pieces of jewelry offered for

sale, which were consistert with jewelry imported by Sterling from the Philippines. None of these items were I

marked in any way to infprm the customer that they were manufactured in the Philippines. Soraya Sharifi was

working in the store at th~ time and helped me during the contact. I asked to look at some bracelets which I '

recognized as being cons~stent with Sterling imports.

40


Suhdancer Purchase Sterling Import

Specifically, I recognized the inlaid pueblo design, the unique symbols and the "CR" initials stamped on the on the inside of the bracelet.

I also recognized several rings to be consistent with those imported by Sterl ing. Specifically, I recognized the "cormow" inlaid desikn and the initials "CK" stamped on the inside ofthe rings .

Soraya told me that the rings were Zuni made. She went on to explain that, in general, the inlaid jewelry

was Zuni-made and t1e single stone jewelry was Navajo-made. I then asked to look at a necklace and earring

set which I recognizeR as being consistent with a Sterling import. Specifically, I recognized the pendant design

and "NT" initials on tl~e back of the item.

41


Soraya told me that the necklace and earrings were Navajo-made. I motioned to the necklace and I

confirmed that it was Navajo, to which she agreed. I then asked if both the bracelet and ring were Zuni-made

and Sharifi confirmei that they were. Soraya went on to say that she has had the store for three years but her

family has been in th~ jewelry business for twenty years. Soraya then explained that she has, "some Navajos in

the back that ... hand bake pieces." The items were sold to me for a total of$1001.52, all in violation of 18

I U.S.C. § 1159.

Recent Activity

On October 16,2015, an assisting federal agent visited Sundancer in a covert manner. The agent

observed jewelry dis~layed in the store and offered for sale which was consistent with Sterling imports. Steve

Sharifi, husband of S?raya, told the agent that some of the jewelry was Native American to include Navajo,

Zuni, and Hopi, some of the jewelry was made in-house, and some was traded with locals and those pieces

could be made elsewiere. I reviewed the covert video of the visit and observed several items offered for sale in

the store which were bonsistent with Sterling imp01is. Depicted below are two of the pieces I observed in the

video which are consistent with Sterling imports. Additionally, the necklace seen in Sundancer appears to be

consistent with the necklace I purchased on October 17, 2014. 42


-

_,

-

l i'JI'j'l J·'''l'''l''l'' I'•' . I/ 1\ Conclusion

Based on the 1acts related within this affidavit, my training and experience, and the training and

experience of agents and investigators involved in this investigation, there is probable cause to believe that the

items to be seized as l escribed in Attachment B, which is attached hereto and fully incorporated herein, will be

located at the premises described in Attachment A, and are evidence, fruits, and instrumentalities of violations

of 18 U.S.C. § 542 (i~1portation by false or fraudulent practice), 19 U.S.C. § 1304 (failure to mark goods with


(conspiracy).

43


8. Business Nante: I

OwnerNamef

Search Loca+n:

Organization~! Role:

Silver Coyote

YousefNassar

112 Old Santa Fe Trail, Santa Fe, NM 87501

Retail

YousefNassa1 is listed as the registered agent of Silver Coyote according to New Mexico Secretary of

State records. Tamarf Nassar, YousefNassar's wife, is listed as the registered agent of a sister store, Santa Fe

Native Designs. I

Financial Links to s+rling I

A review ofb~nk records revealed that a financial relationship exists between the Nassar's and Sterling.

Over $21,000 in chec~s (many referencing silver jewelry in the memo line) have been written by YousefNassar

and Tamara Nassar (fousefs wife) from the business accounts of Silver Coyote and Santa Fe Native Design to

Sterling. I

Covert Purchases I

!

I

On August 16j 2012, HSI SA Mark Phillips and I visited Silver Coyote, located at 112 Old Santa Fe

Trail in Santa Fe, N~ in a covert manner. Silver Coyote is a jewelry store which is located in the "plaza"

district of Santa Fe, NM. When I entered the store a salesman, Justin, told me that everything in the store was

60% off in preparatio for "Indian Market."

Justin told me that everything in the store was Native American made. While in the store, I overheard

another employee tell 'Tiger,' the owner of the store (who I later identified as YousefNassar), that a "928"

stamp on one of the j welry pieces in a case meant the piece was not made in the United States. The employee

said that three custo+rs had told him about the stamp. At that point Nassar got very angry and told the

employee to shut-up.INassar said he was the boss and if an employee wants to know something he should ask

him. Nassar said, "ift~ere is a snake in the store I'll cut his head off." Nassar went on to say that he had six !

kids and a wife to takf care of. All of this was said in front of SA Phillips and me, as we walked around the

store. After the exch,nge between Nassar and the employee, Nassar told me that some of the items in the store

were imported. N onel of the pieces appeared to be marked as imported or stamped with the country of origin. '

I observed se~eral pieces of jewelry in the store that were similar in appearance to pieces imported by

Sterling. Nassar gav, me one of his cards when I expressed interest in buying some jewelry?

3 On several occasio9s, I have observed YousefNassar at the Santa Fe Native Designs store. ! 44


I

On Septembe1 28, 2012, SA Phillips and I once Inspection Photograph

agai~ made a covert 9ontact with Nassar at Silver

Coyote in Santa Fe, , M. I questioned Nassar about

two bracelets which r ere consistent in appearance with

those that I had seen · by Sterling, on May 28,

distinct stamped or

apparent from the ·

bracelets that they

symbols as well as the

,"',r"'"·rc appear in both bracelets in

the same sequence.

the bracelets were

asked by whom and where

Nassar told the SAs that they

ue and Gallup at his factory

~u··~··~~. Nassar told me that the

were made in

and were Indian Purchased Item

items were made in on three separate occasions. I purchased the two bracelets from Nassar for a total

of $932.59. Upon u~ -., uu"u'·"'- the items, I compared them to the photographs of those imported by Sterling and

I 13, I entered Silver Coyote in a covert manner and observed various cases ofNative

and other Native American style crafts for sale in the store. The owner of the store

introduced himself to me as "Tiger," and recognized me from their previous encounters. Nassar's son was also

observed several pieces of jewelry which were consistent with that which had been

imported by Sterling from F A4U. I referenced a visit to the store

that I made approximately a week prior in which I had not seen

Nassar. Nassar told me that his cousin was working in the store at

the time.

I asked about a ring which I had been told was produced by

"GL Miller," by Nassar's cousin during the visit a week prior.

Nassar found the ring and showed it to me. I asked Nassar why

one of the rings appeared to have a hole in one of the inset pieces

of spiny oyster shell. (The hole appears to be drilled into the shell.

45


I speculated at the tim that another, filler stone, had fallen out

of the ring.) Nassar tdld me that the hole was supposed to be

there as that is how thr glue is injected under the shell pieces to

adhere them the ring bezel. Nassar's son told me that he would

receive a certificate o~ authenticity with the ring if I purchased it.

(After the son told mel about the certificate, Nassar said

something to his son in Arabic. Upon review, it was found that

Nassar's statement is unintelligible.) I recognized the spiny

oyster ring as being consistent with a Sterling imported item.

Specifically, I recogn~zed the design and raincloud symbol on

the inside of the ring. I had seen this type of ring and the

raincloud symbol in photographs taken during the inspection of a Sterling import on July 30, 2012. Nassar told

t~e that he would not ~barge me sales tax for the purchase. Nassar then told me that the ring was Hopi made,

but not made by GL Miller. I observed several rings offered for sale in the store which were of the same design

and appeared to be cohsistent with Sterling imported items.

Nassar told me that the Hopi artist that made the ring is 87 years old. Nassar also told me that only

Silver Coyote and anqther store in Taos carry the artist's work. I asked for the artist's name while referencing

the raincloud symbol on the inside of the ring. Nassar told me that the artist's name was "Koko Bilah," wrote

the name on his busi~bss card for me, "Koko Bilah," and gave the business card to me after the purchase was

complete. Nassar sold the "Koko Bilah" ring to me for $195, in violation of 18 U.S.C. § 1159.

Recent Activity

On October 14, 2015, an assisting federal agent entered the business in a covert manner. The agent

observed several piec~s of jewelry in the store which were consistent with Sterling imports.

Conclusion

Based on the ffacts related within this affidavit, my training and experience, and the training and

experience of agents and investigators involved in this investigation, there is probable cause to believe that the

items to be seized as described in Attachment B, which is attached hereto and fully incorporated herein, will be

located at the premises described in Attachment A, and are evidence, fruits, and instrumentalities of violations

of 18 U.S. C. § 542 (itpportation by false or fraudulent practice), 19 U.S.C. § 1304 (failure to mark goods with


(conspiracy).

46


9. Business Naoie: Kuchi Gallery, Inc., d.b.a., Momeni's Gallery I

Owner Name~ Ismail Momeni I

Search Locatton: 222 Old Santa Fe Trail, Santa Fe, NM 87501 I

Organization~l Role: Retail I

Kuchi Gallery~ Inc., d.b.a., Momeni's Gallery ("Momeni's") is a retail store located at 222 Old Santa Fe I

Trail in Santa Fe, N~. Ismail Momeni is listed as the President ofKuchi Gallery, Inc. according to the New

Mexico Secretary of ~tate database.

Financial Links to S~rling An examinatiJn of Sterling financial records revealed four payments made from Kuchi Gallery, Inc. to

I

Sterling Islands betw1en 5/23/2013 and 6/10/2014.

Date ! Payer I Memo Amount Payee 5/23/2013 I Kuchi Gallery $3,122 Sterling

I

6/24/2013 I Kuchi Gallery $7,500 Sterling i

7/24/2013 I Kuchi Gallery $7,500 Sterling I

6110/2014 I Kuchi Gallery $7,985 Sterling i

I

i

Recent Covert Purclt~se On October 2t, 2015, I visited Momeni's in a covert manner and observed jewelry, rugs, pottery and

other items for sale. The jewelry offered for sale was displayed in several cases in one section of the business.

I observed several ite~s for sale which were consistent with both Sterling imports and IJW imports. I

Specifically, I observ~d pendants, rings, and necklaces which appeared to be consistent with Sterling imports

and several rings, bea~ pendants, and bracelets which appeared to be consistent with IJW imports.

Two male sub~ects were present at the business while I was there. The older subject, who identified

himself as Noor LNU~ helped me throughout the contact. The other subject identified himself as Hamed LNU I

and assisted me at th~ end of the contact. I asked to look at several of the items which I knew to be consistent I

with the imported iterps. Among these items were:

• A bear pendant which was consistent with the IJW imports in its shape and design. The bear

penda~t was two-sided and the design stamped into the metal on the back side of the bear was

consi~tent with other IJW imports that I have seen from previously documented inspections of

IJW i~portedjewelry. The bear pendant did not have the "IJ" initials seen in the IJW imports, '

howeter. Noor LNU told me the bear pendant was Zuni-made and, "one, only," which I

unde4tood to mean one-of-a-kind. After covert contact, I compared the bear pendant with

!

47


I

anothlr bear pendant which I documented during the IJW inspection I conducted on February

20, 21105 . The two items appear to have an identical inlaid design.

48


•

•

•

h,t·t,r+ly necklace which I knew to be consistent with Sterling imported jewelry .

An in~aid silver cuff bracelet, marked for $1700, with "IJ'' initials stamped in it. The bracelet

· stent with those imported by IJW, previously.

An int id ring which I knew to be consistent with those imported by IJW. The ring was offered

for sa~e for $1300 and had "IJ" initials stamped in it. I asked Noor LNU if the items were also

Zuni, in reference to the bear pendant which Noor LNU told me was Zuni-made. Noor LNU

respol ded, "it's the same." I asked about the "IJ" initials and ifNoor LNU knew the artist.

Noor t NU told me that he did know him and that he ' s, "the guy in Albuquerque."

49


•

•

ble bracelet" which I knew to be consistent with IJW imports. I have seen items

with this bracelet in both the IJW inspection that I conducted on February 20, 2015,

and in photographs taken during the IJW inspection conducted in Louisville, KY by USFWS I

Wildlife Inspectors on February 10, :f015. The bracelet had the initials "IJ" stamped in it. I

remarked that it was probably made by the same guy, referencing the bracelet and ring, above.

Noor LNU agreed by saying, "yeah."

I wal~ed into another section of the store and asked, "is this Native American stuff too?" Noor

LNU replied, "oh yeah."

• A pendant which I knew to be consistent with those imported by Sterling. Specifically, the

pend+ t was consistent with items docwnented during prior Sterling import inspection.

Refen;ing to the pendant, I stated that I wanted to make sure I got something Native American I

and Nbor LNU replied, "That's what it is . . . "

Momeni's bailery

I repeatedly mentioned the jewelry and that I was surprised in the variation of the designs within the

same tribal affiliation. At no time did Noor LNU correct me and tell me the items were imported. In addition,

nothing in the store a~ vised a potential customer that the items were imported and not Native American-made

as claimed by Noor LNU. I asked Noor LNU how long he had been selling Indian jewelry and Noor LNU told

me that he had been selling for sixteen years.

50


I

I

The ring, brac9let and pendant were all sold to me for $1559.80, in violation of the 18 USC 1159. I

asked Noor LNU one ore time if he knew the identity of the artists who made the items. Noor LNU replied

that he did not. I told im it didn't matter as long as my father knew the item was Zuni-made. Noor LNU

replied, "Yeah, he wil know."

Conclusion

Based on the lets related within this affidavit, my training and experience, and the training and

experience of agents d investigators involved in this investigation, there is probable cause to believe that the

items to be seized as escribed in Attachment B, which is attached hereto and fully incorporated herein, will be I

located at the premise~ described in Attachment A, and are evidence, fruits, and instrumentalities of violations

of 18 U.S.C. § 542 (i~portation by false or fraudulent practice), 19 U.S.C. § 1304 (failure to mark goods with

country of origin), 18 p.S.C. § 1159 (violation ofthe Indian Arts and Crafts Act), and 18 U.S.C. § 371 '

(conspiracy).

51


10. Business Name: Gold House LLC.

Owner Name(s): Mark Shaw I Ala Shawabkeh

Target Location: 218 Old Santa Fe Trail, Santa Fe, NM 87501

Organizational Role: Retail

I Gold House is a retail jewelry store located at 218 Old Santa Fe Trail in Santa Fe, NM. Ala Shawabkeh

is listed as the officer for Gold House LLC., according to the New Mexico Secretary of State database.

However, Mark Shal is listed as the owner of Gold House according to their website,

www.santafegoldhouse.com, and a law enforcement database.

Recent Covert Purchase I

On October 20,2015, I visited Gold House in a covert manner and observed jewelry and other crafts for

sale. Specifically, I opserved several pendants, rings, and necklaces, offered for sale, which were consistent

with both Sterling im~orts and IJW imports. I observed two male subjects and one female subject workjng at

the store. During the 1

contact, the female subject who introduced herself as Christina LNU, and one of the male

employees, Simon LNU showed me the jewelry and sold me two items.

Throughout the contact, I asked to look at items which I knew to be consistent with both IJW imports

and Sterling imports. j_Specifically, I looked at or was shown:

• A "comro( ' silver ring with a feather symbol stamped

on the inside, marked with the price of $300. I

recognized the design and the symbol as being

consistent with Sterling imported jewelry documented

previously! in the investigation. When I asked

Christina LNU who made the ring, she referred the question to Simon LNU. Simon LNU explained

that the sillversmith, "signed with feather but I cmmot tell. Some ofthem they use initials . . . "

• A "spinner" necklace and earrings set which I recognized as consistent with items I had seen during

my inspection of an IJW importation of jewelry on February 20, 2015. I also noted that the earrings

appeared to be mounted on the smne kind of card, which reads, "Sterling Silver," as the IJW . . I 1mportatwr s.

52


•

Importation Photograph

, inlaid bear pendant, marked with a price of $1500, which I recognized as being

consistent with IJW imported jewelry. Specifically, I recognized the overall inlaid design on the

front of the pendant, the stamped design on the back of the pendant, and the "IJ" initials stamped

in the eg of the bear. Upon closer examination of the bear pendant subsequent to the purchase,

I found that the stamped metal design was identical to a pendant documented during my covert

nsr>ec<;tlcm of an IJW importation on February 20, 2015.

llold House Purchase

I agreed to pu~chase the ring and the bear pendant. Christina LNU, speaking about the good prices they

have in the store, said "we're able to give you really good prices because we work directly with the artists and

we buy a big an1ount <Dfwhatever they have." I

I then asked Simon LNU who the silversmith was that made the bear pendant as I referenced the "IJ' ' I

initials marked in it. $imon LNU told me that Ervin Tsosie made the item. (It should be noted that this name

was not written anywhere in the store. As such, the spelling may not be correct.) I asked if he was Navajo, to

which Simon LNU replied , "uh yeah." An open source search ofthe name, Ervin Tsosie, revealed that Ervin

Tsosie is a Navajo silversmith renowned for his extremely intricate inlay work. Some of this work includes

inlaid bear pendants.

53


Simon LNU d termined the final price of the items to be $1040 (before tax). After I purchased the items

I, once again, asked t e name of the artist who made the bear pendant so I could write it down. Christina LNU

asked Simon LNU w o said, "Ervin Tsosie." I asked how the name was spelled and Simon LNU said, "s-u-s

i." Simon LNU then ooked for and found another pendant which he said was made by Ervin Tsosie and

explained that it had t e intials, "ET," in the item. I asked Simon LNU about the "IJ'' initials found in the bear

pendant that I had pur hased. Simon LNU agreed that the "I" in "IJ" might stand for Irvin. Simon LNU then

showed me what appe red to be a genuine Ervin Tsosie pendant and said, "he did this one too." . ,J;i-1' \J.~. ~

I then asked S · mon LNU ;n: he knew who made the ring by referring to the feather symbol. Simon LNU

responded that he did ot know and did not have the book to determine the artist. Simon LNU went on to say

that at the end of the ~ook the symbols corresponding to the silversmiths are listed. In my experience I have

seen these books ofNttive American Artists referenced in other Native American jewelry stores. I said,

"Navajo is good enou h," to which Simon LNU replied, "yeah." Simon LNU sold me two items in violation of

18 USC 1159. Additifmally, within Gold House, there were many more items offered for sale and displayed in

violation of 18 u.s.c.l § 1159. !

Conclusion

Based on the cts related within this affidavit, my training and experience, and the training and

experience of agents nd investigators involved in this investigation, there is probable cause to believe that the


located at the premise described in Attachment A, and are evidence, fruits, and instrumentalities of violations

of 18 U.S.C. § 542 (i portation by false or fraudulent practice), 19 U.S.C. § 1304 (failure to mark goods with

country of origin), 18 .S.C.§ 1159 (violation of the Indian Arts and Crafts Act), and 18 U.S.C. § 371

(conspiracy). I

54


i

VI. ADDITIONA TRAINING AND EXPERIENCE

Based on my t aining and experience, involving the import and trafficking of counterfeit and contraband

goods, and related fin ncial crimes, including, my involvement in numerous investigations, searches and arrests

during my career as a law enforcement officer, as previously described in the background section of this

affidavit; my involve ent on a number of occasions in interviewing subject-matter experts, persons closely I

associated with the crunterfeit and contraband industry, wit.nesses, confidential informants, and cooperating

individuals in prior trffficking investigations, as well as what other agents and police officers have advised me

when relating the su~stance of their similar interviews and the results of their own trafficking investigations;

and other intelligence !information provided through law enforcement channels, I know the following:

a. Duringl the course of commercial, residential and vehicular searches, it is common to find items

b.

c.

d.

e.

I

of per onal property that tend to identify the person(s) in residence, occupancy, control, or

owners ip of the subject premises. Such identification evidence is typical of the articles people

comm nly maintain in their residences, such as canceled mail, deeds, leases, rental agreements,

photographs, personal telephone books, diaries, utility and telephone bills, statements,

identi~cation documents, and keys; I

It is gererally a common practice for traffickers of prohibited goods to store their inventory and

relatedimaterials (as described above) in their residences and businesses;

It is gfnerally a common practice for traffickers of prohibited goods to maintain m their

comm~rcial locations and residences records relating to their trafficking activities. Because

prohib*ed goods derive value from purported authenticity, in many instances traffickers will

maintatn records of authenticity. It is common practice for traffickers to keep transactional

record~ to show sale and transfer of goods. Additionally, traffickers must maintain telephone

and ad~ress listings of clients and suppliers and keep them immediately available in order to

efficieJtly conduct their business; I

It is a~so a generally common practice for traffickers to maintain records of wire transfers,

cashier!' s checks, and money orders related to the sale and transfer of prohibited goods. Evidence

of sue' financial transactions and records relating to income and expenditures of money and

wealth lin connection with trafficking of prohibited goods would also typically be maintained in

reside1ces and businesses; and

Eviden~e relevant to the trafficking and importation of counterfeit and contraband goods is

typically recovered from the main physical location of distribution and sale, and in addition, I

from v~hicles used to transport the prohibited goods, and from other structures on the property I

being ~earched, as for example, other storage lockers/areas, detached closets, containers, and

I 55


I

yard artas associated with the main residence and used in connection with or within the curtilage

of said esidence.

Based on the ~oregoing facts, my experience and training, and the experience and training of other

experienced agents w*h whom I have consulted, there is probable cause to believe that the following evidence,

as described in Attactent B, for the period 2010 to present will be found at the search locations, as described

in Attachment A.

A. RECO DSAND TANGIBLE ITEMS

1. The prohib"ted goods themselves;

2. goods rela ed to the packaging, processing, storage, shipping and transportation of those prohibited

goods;

3. books, rec~rds, receipts, note's, ledgers, correspondence and other records relating to the distribution I

of the pro1bited goods;

4. personal bpoks and records reflecting names, addresses, telephone numbers, and other contact or

identificati~n data relating to the distribution of the prohibited goods;

5. records rel~ting to income and expenditures of money related to the sale and transfer of prohibited

goods, for I example, money orders, wire transfers, cashier's checks and receipts, bank statements,

passbooks, checkbooks, and check registers; and

6. documents indicating travel in interstate and foreign commerce such as travel itineraries, motel and

hotel receitts, credit card receipts, and telephone bills.

I

B. COMPUTER ELECTRONIC STORAGE AND FORENSIC ANALYSIS

As described 1bove and in Attachment B, this application seeks permission to search for records that

might be found on th, premises, in whatever form they are found. One form in which the records might be

found is data stored o! a computer's hard drive or other storage media. Thus, the warrant applied for would

authorize the seizure f electronic storage media or, potentially, the copying of electronically stored I

information, all underl Rule 41 ( e )(2)(B).

Probable cause

I i

!

I

I submit that it a computer or storage medium is found on the premises, there is probable cause to

believe those records ~ill be stored on that computer or storage medium, for at least the following reasons:

!

56


a. Based jn my knowledge, training, and experience, I know that computer tiles or remnants of

such fts can be recovered months or even years after they have been downloaded onto a storage

mediut, deleted, or viewed via the Internet. Electronic files downloaded to a storage medium

can be ftored for years at little or no cost. Even when files have been deleted, they can be

recove+d months or years later using forensic tools. This is so because when a person "deletes"

a file o~ a computer, the data contained in the file does not actually disappear; rather, that data I

remaint on the storage medium until it is overwritten by new data.

b. Therel{re, deleted files, or remnants of deleted files, may reside in free space or slack space

that is, ~n space on the storage medium that is not currently being used by an active file-for

long p~riods of time before they are overwritten. In addition, a computer's operating system

may aljo keep a record of deleted data in a "swap" or "recovery" file.

I I ,

c. Wholli apart from user-generated files, computer storage media-in particular, computers'

internaf hard drives-contain electronic evidence of how a computer has been used, what it has

been u,ed for, and who has used it. To give a few examples, this forensic evidence can take the

form of operating system configurations, artifacts from operating system or application

operati~n, file system data structures, and virtual memory "swap" or paging files. Computer

users t~pically do not erase or delete this evidence, because special software is typically required

for thai task. However, it is technically possible to delete this information.

d. Simila ly, files that have been viewed via the Internet are sometimes automatically downloaded I

into a tmporary Internet directory or "cache."

e. Based ~n actual inspection of other evidence related to this investigation, spreadsheets, financial

record~, invoices, I am aware that computer equipment was used to generate, store, and print

docum~nts used in the scheme to violate the Indian Arts and Crafts Act. There is reason to

believe! that there is a computer system currently located on the premises.

I s7


Forensic evidence. I

As further desfribed in Attachment B, this application seeks permission to locate not only computer files

that might serve as d+ct evidence of the crimes described on the warrant, but also for forensic electronic

evidence that establis1es how computers were used, the purpose of their use, who used them, and when. There

is probable cause to b~lieve that this forensic electronic evidence will be on any storage medium in the premises

because: I

I

a. Data o~ the storage medium can provide evidence of a file that was once on the storage medium

!

but hasi since been deleted or edited, or of a deleted portion of a file (such as a paragraph that has

been dtleted from a word processing file). Virtual memory paging systems can leave traces of I

inform~tion on the storage medium that show what tasks and processes were recently active.

Web bjowsers, e-mail programs, and chat programs store configuration information on the I i

storag, medium that can reveal information such as online nicknames and passwords. Operating

systemf can record additional information, such as the attachment of peripherals, the attachment

of us4 flash storage devices or other external storage media, and the times the computer was in

use. C~mputer file systems can record information about the dates files were created and the

sequen~e in which they were created, although this information can later be falsified.

b. As exp ained herein, information stored within a computer and other electronic storage media

may pr vide crucial evidence of the "who, what, why, when, where, and how" of the criminal

condu1t under investigation, thus enabling the United States to establish and prove each element

or altetatively, to exclude the innocent from further suspicion. In my training and experience, i

inform~tion stored within a computer or storage media (e.g., registry information, i

comminications, images and movies, transactional information, records of session times and

duratiors, internet history, and anti-virus, spyware, and malware detection programs) can

indicatf who has used or controlled the computer or storage media. This "user attribution"

evidente is analogous to the search for "indicia of occupancy" while executing a search warrant 58

I I


at are idence. The existence or absence of anti-virus, spyware, and malware detection programs

may 1 icate whether the computer was remotely accessed, thus inculpating or exculpating the

comp er owner. Further, computer and storage media activity can indicate how and when the

comp~er or storage media was accessed or used. For example, as described herein, computers I

typical~y contain information that log: computer user account session times and durations, I

comp1er activity associated with user accounts, electronic storage media that connected with the

compfer, and the IP addresses through which the computer accessed networks and the internet.

Such i~formation allows investigators to understand the chronological context of computer or !

electroric storage media access, use, and events relating to the crime under investigation. i •

Additifnally, some information stored within a computer or electronic storage media may i

provid~ crucial evidence relating to the physical location of other evidence and the suspect. For I

examp~e, images stored on a computer may both show a particular location and have geolocation

infonftion incorporated into its file data. Such file data typically also contains information

indica,ng when the file or image was created. The existence of such image files, along with I

extem'l device connection logs, may also indicate the presence of additional electronic storage I

media ~e.g., a digital camera or cellular phone with an incorporated camera). The geographic

I

and ti1feline information described herein may either inculpate or exculpate the computer user. I

Last, ifformation stored within a computer may provide relevant insight into the computer user's

state otmind as it relates to the offense under investigation. For example, information within the !

comp1er may indicate the owner's motive and intent to commit a crime (e.g., internet searches

I

indica1ng criminal planning), or consciousness of guilt (e.g., running a "wiping" program to

destrot evidence on the computer or password protecting/encrypting such evidence in an effort

to con1eal it from law enforcement).

59


c. A pers n with appropriate familiarity with how a computer works can, after examining this

forensi evidence in its proper context, draw conclusions about how computers were used, the

purpos of their use, who used them, and when.

i

d. The prfcess of identifying the exact files, blocks, registry entries, logs, or other forms of forensic

eviden}e on a storage medium that are necessary to draw an accurate conclusion is a dynamic

proces~. While it is possible to specify in advance the records to be sought, computer evidence is I

not al ays data that can be merely reviewed by a review team and passed along to investigators.

Wheth r data stored on a computer is evidence may depend on other information stored on the

compu er and the application of knowledge about how a computer behaves. Therefore,

contexjual information necessary to understand other evidence also falls within the scope of the

warranf.

I

e. Furthet, in finding evidence ofhow a computer was used, the purpose of its use, who used it, and

when, ometimes it is necessary to establish that a particular thing is not present on a storage

medi . For example, the presence or absence of counter-forensic programs or anti-virus

s (and associated data) may be relevant to establishing the user's intent.

I

f. I knowl that when an individual uses a computer to transmit electronic messages to place orders

intendi~g to violate the Indian Arts and Crafts Act, the individual's computer will generally I

serve b th as an instrumentality for committing the crime, and also as a storage medium for

eviden e of the crime. The computer is an instrumentality of the crime because it is used as a

means f committing the criminal offense. The computer is also likely to be a storage medium

for evifence of crime. From my training and experience, I believe that a computer used to

commi~ a crime of this type may contain: data that is evidence of how the computer was used;

data thtt was sent or received; notes as to how the criminal conduct was achieved; records of

lntemi discussions about the crime; and other records that indicate the nature of the offense.

' 60


Necessity of seizing o copying entire computers or storage media.

In most cases, thorough search of a premises for information that might be stored on storage media

often requires the seiz re of the physical storage media and later off-site review consistent with the warrant. In I

lieu of removing storte media from the premises, it is sometimes possible to make an image copy of storage

media. Generally spetking, imaging is the taking of a complete electronic picture ofthe computer's data,

including all hidden stctors and deleted files. Either seizure or imaging is often necessary to ensure the I

accuracy and comple+ness of data recorded on the storage media, and to prevent the loss of the data either from

accidental or intentio1al destruction. This is true because of the following:

i

a. The ti+e required for an examination. As noted above, not all evidence takes the form of

docum~nts and files that can be easily viewed on site. Analyzing evidence of how a computer

I

has be1n used, what it has been used for, and who has used it requires considerable time, and I

taking that much time on premises could be unreasonable. As explained above, because the I

warranf calls for forensic electronic evidence, it is exceedingly likely that it wil~ be necessary to

thoroufhly examine storage media to obtain evidence. Storage media can store a large volume

of infotmation. Reviewing that information for things described in the warrant can take weeks or

month~, depending on the volume of data stored, and would be impractical and invasive to

attempj on-site.

I

b. Technipal requirements. Computers can be configured in several different ways, featuring a

I

variety~ of different operating systems, application software, and configurations. Therefore,

searchi g them sometimes requires tools or knowledge that might not be present on the search

e vast array of computer hardware and software available makes it difficult to know

before search what tools or knowledge ~ill be required to analyze the system and its data on

the Pre~ises. However, taking the storage media off-site and reviewing it in a controlled

I

envirorent will allow its examination with the proper tools and knowledge.

61


c. V arie1 of limns of electronic media. Records sought under this warrant could be stored ill a

variet~ of storage media formats that may require off-site reviewing with specialized forensic

i

tools. 1

I I I

I

Nature of examinatiof.

Based on the 1oregoing, and consistent with Rule 41(e)(2)(B), the warrant I am applying for would

permit seizing, imagi~g, or otherwise copying storage media that reasonably appear to contain some or all of the !

evidence described inl the warrant, and would authorize a later review of the media or information consistent

with the warrant. Th~ later review may require techniques, including but not limited to computer-assisted scans i

of the entire medium, I that might expose many parts of a hard drive to human inspection in order to determine

whether it is evidence! described by the warrant. . I

The seizure 01 a company's computers may limit the company's ability to conduct its legitimate

business. As with anyl search warrant, I expect that this warrant will be executed reasonably. Reasonable

execution will likely ifvolve conducting an investigation on the scene of what computers, or storage media,

must be seized or copfed, and what computers or storage media need not be seized or copied. Where I

appropriate, officers till copy data, rather than physically seize computers, to reduce the extent of disruption. I

If employees of the c~mpany so request, the agents will, to the extent practicable, attempt to provide the

I

employees with copier of data that may be necessary or important to the continuing function of the company's

legitimate business. 1~, after inspecting the computers, it is determined that some or all of this equipment is no

longer necessary to re~rieve and preserve the evidence, the government will return it.

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VI. CONCLUSiqN I

Based on the ffregoing facts, my training and experience, and consultation with other experienced

agents in investigatio9s involving the trafficking and importation of counterfeit and contraband goods, and

related financial crim,s, there is probable cause to believe that the items to be seized as described in Attachment

B, which is attached hpreto and fully incorporated herein, will be located at the premises described in

Attachment A, and arievidence, fruits, and instrumentalities of violations of 18 U.S.C. § 542 (importation by

false or fraudulent pra tice ), 19 U.S.C. § 1304 (failure to mark goods with country of origin), 18 U.S.C. § 1159

(violation ofthe India Arts and Crafts Act), and 18 U.S.C. § 371 (conspiracy).

It is respectful y requested that this Court issue an order sealing, until further order of the Court, all

papers submitted in s pport of this application, including the application and search warrant. I believe that

sealing this document is necessary because the items and information to be seized are relevant to an ongoing

investigation into the riminal organizations as not all of the targets of this investigation will be searched at this

time. Based upon my training and experience, I have learned that online criminals actively search for criminal

affidavits and search farrants via the Internet, and disseminate them to other online criminals as they deem

appropriate, i.e., post {hem publicly online through the carding forums. Premature disclosure of the contents of

this affidavit and relat~d documents may have a significant and negative impact on the continuing investigation

and may severely jeo~ardize its effectiveness.

I declare under penaltt of perjury that the above statements are true and accurate to the best of my knowledge

and belief.

Special Agent US Fish & Wildlife Service, Office of Law Enforcement

Subscribed and swol to before me on this 26th day of October 2015 at Albuquerque, NM. J" / .' 3( fl-'. I

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