LAS VEGAS
- - Daniel G. Bogden, United States Attorney for the District of
Nevada; Ellen B. Knowlton, Special Agent-in-Charge of the Federal
Bureau of Investigation (FBI) for Nevada; Wade Walters, Resident
Agent-in-Charge of the United States Social Security Administration,
Office of the Inspector General (SSA-OIG); Byram Tichenor, Special
Agent-in-Charge of IRS Criminal Investigation for Nevada and Utah;
Phil Brown, Acting Chief for the State of Nevada Department of Public
Safety Division of Investigation (NDPS); Ginny Lewis, Director of
the State of Nevada Department of Motor Vehicles (Nevada DMV); and
Clark County Sheriff Bill Young, announce that additional felony
charges have been brought against former Nevada DMV employee, DALVA
FLAGG, age 48, of Las Vegas, Nevada.
In December 2002, FLAGG was arrested and charged in U.S. District
Court in Las Vegas with Conspiracy, Bribery, Interference With Commerce
by Extortion, and Unlawful Use of Social Security Numbers. In addition
to those counts, FLAGG was charged today in a Superseding Criminal
Indictment with Structuring Currency Transactions to Avoid IRS Reporting
Requirements; Conspiracy to Commit Money Laundering; Money Laundering;
Engaging in Monetary Transactions in Property Derived From Specified
Unlawful Activity; Fraud and Related Activity in Connection With
Identification Documents; Wire Fraud; Making and Subscribing False
Tax Returns; and Forfeiture. A co-defendant, RUY A. SILVA, age 41,
of Las Vegas, has also been charged with Structuring Currency Transactions
to Avoid IRS Reporting Requirements and Money Laundering. Both FLAGG
and SILVA are in custody.
The charges resulted from a year-long joint investigation by the
above agencies into allegations of corruption within the Nevada
Department of Motor Vehicles. Investigators received information
that employees were involved in the fraudulent sale of Nevada driver's
licenses, instructional permits, identification cards, and vehicle
registrations. The documents were sold primarily to undocumented
aliens who were not authorized to receive such documents.
The court records allege that from approximately February 2000 through
May 31, 2002, a bribery scheme occurred in which undocumented aliens
paid co-conspirators $1,100 to $1,200 for Nevada drivers licenses,
identification cards, and vehicle registrations. The co-conspirators
met FLAGG at pre-arranged locations, including in and around the
Carey Road DMV office where FLAGG worked, and FLAGG provided them
with identification documents in exchange for $1,000. The co-conspirators
typically kept $100 to $200 of the payments for themselves.
The court records further allege that in January and February 2002,
numerous currency deposits were made into various branches of Wells
Fargo Bank accounts in Las Vegas in the names of RUY A. SILVA and
DALVA A. FLAGG; that on August 9, 2001, FLAGG paid $14,500 in cash
to a Las Vegas automobile dealership for the purchase of a vehicle;
that on February 11, 2002, FLAGG purchased a cashier's check in
the amount of $33,727.17, and used it to purchase a residence at
4285 Segovia Terrace, in Las Vegas; that FLAGG falsely reported
her income on loan applications, pay stubs, and W-2 forms, and submitted
a false gift letter when purchasing the home; and that FLAGG understated
her true income on her individual federal income tax returns for
the years 2000 and 2001.
If convicted, the defendants are facing up to five years imprisonment
on the Conspiracy, Unlawful Use of Social Security Number, Structuring
Transactions, and Wire Fraud counts; up to 10 years imprisonment
on the Bribery and Monetary Transactions counts; up to 15 years
on the Identification Fraud count; and up to 20 years imprisonment
on the Conspiracy to Interfere with Commerce and Money Laundering
counts. The defendants may also be ordered to pay up to $250,000
in fines for each count. The actual sentence, however, will be dictated
by the United States Sentencing Guidelines, which take into account
a number of factors, and will be imposed at the discretion of the
Court.
The case was investigated by the above-referenced agencies and is
being prosecuted by Assistant United States Attorney Howard Zlotnick.
The public is reminded that an indictment contains only charges
and is not evidence of guilt. The defendants are presumed innocent
and is entitled to a fair trial at which the government has the
burden of proving guilt beyond a reasonable doubt.
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