Michigan Exotic Animal Dealer Surrenders Animals After Alleged ESA and AWA Violations

In a recent development, Zachery Keeler, operating as Even Keel Exotics LLC, has entered a consent decree with the Justice Department to address allegations of violating the Endangered Species Act (ESA) and the Animal Welfare Act (AWA). The agreement stipulates that Keeler will surrender nearly 150 animals, including ring-tailed lemurs, kinkajous, wallabies, porcupines, foxes, prairie dogs, and ground squirrels. Furthermore, he has committed to refraining from any commerce related to AWA-regulated animals and from seeking AWA licensing or registration.

The complaint against Keeler asserts that he violated the ESA by prematurely separating a baby ring-tailed lemur, an endangered species, from its mother to facilitate public interaction. Subsequently, he attempted to sell the baby lemur for $3500. The allegations extend to AWA violations, encompassing the failure to provide necessary potable water, safe conditions, and proper facilities for his animals. Additionally, Keeler allegedly denied access to U.S. Department of Agriculture (USDA) Animal and Plant Health Inspection Service (APHIS) inspectors, impeding their ability to ensure the animals' well-being.

Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division emphasized the significance of the Animal Welfare Act and the Endangered Species Act in safeguarding vulnerable species. He condemned Even Keel Exotics' actions, citing its disregard for the minimum care standards required for the animals it housed and its harm to a protected endangered species—a baby lemur.

Dr. Roxanne Mullaney, Deputy Administrator of APHIS’ Animal Care Program, reaffirmed APHIS' commitment to enforcing the Animal Welfare Act rigorously. This includes taking aggressive actions against repeat offenders and collaborating closely with partners to ensure compliance.

The investigation, inspection, and removal of animals from Even Keel Exotics' facility were undertaken by USDA-APHIS. The complaint and consent decree were filed by the Environment and Natural Resources Division’s Wildlife & Marine Resources Section in the U.S. District Court for the Eastern District of Michigan, with the case identified as United States v. Keeler, no. 2:23-cv-11748. This development underscores the crucial role of legal frameworks in upholding the welfare of endangered species and animals in captivity.

Members of Smuggling Ring Plead Guilty in Los Angeles to Crimes Relating to Illegal Trafficking of Endangered Rhinoceros Horn

WASHINGTON – Three defendants pleaded guilty today to charges of conspiracy, smuggling, Lacey Act violations, money laundering and tax fraud for their roles in the international illegal trafficking of rhinoceros horn.  All of the defendants were charged in February 2012 as part of “Operation Crash,” a nationwide U.S. Fish and Wildlife Service crackdown on those involved in the black market trade of endangered rhinoceros horn.

 

The guilty pleas were announced by Ignacia S. Moreno, Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice; André Birotte Jr., U.S. Attorney for the Central District of California; and Dan Ashe, Director of the Department of the Interior’s U.S. Fish and Wildlife Service (FWS).

Vinh Chung “Jimmy” Kha, 49, and Felix Kha, 26, both of Garden Grove, Calif., each pleaded guilty to five felony counts related to their roles in the smuggling conspiracy.  Win Lee Corp., owned by Jimmy Kha, pleaded guilty to two felony counts charging smuggling and Lacey Act trafficking. 

Two other defendants linked to the Khas – J in Zhao Feng, 45, of China and Jarrod Wade Steffen, 32, of Hico, Texas – previously pleaded guilty to federal charges in Los Angeles related to rhino horn trafficking.

 

In their plea agreements, Jimmy and Felix Kha each admitted purchasing White and Black rhinoceros horn in interstate and intrastate commerce, knowing that animals were protected by federal law as endangered and threatened species.  Both defendants stated that they purchased the horns in order to export them overseas to be sold and made into libation cups or traditional medicine.  Both acknowledged making payments to Vietnamese customs officials to ensure clearance of horn shipments sent to that country.  In addition, Jimmy and Felix Kha each admitted to failing to pay income tax owed in 2009 and 2010. 

In an earlier plea agreement, which was filed with the court on Aug. 15, 2012, Feng admitted to fraudulently and knowingly attempting to smuggle a black rhinoceros horn, an endangered species, from the United States to China.  Steffen, who used money provided by the Khas to buy horns for them, pleaded guilty on June 14, 2012, to charges of conspiracy, smuggling, Lacey Act violations and money laundering.

            

“The Khas conspired to violate numerous federal laws, including those enacted by Congress to protect endangered species like the rhinoceros, a species that faces extinction in our time,” said Assistant Attorney General Ignacia S. Moreno.  “This prosecution and continuing investigation should send a clear message that we will vigorously investigate and prosecute those who are involved in this egregious and illegal trade.”

 

“It is unconscionable that a species as ancient and majestic as the African Black Rhino has been hunted to the brink of extinction by unscrupulous profiteers,” said U.S. Attorney André Birotte Jr.  “The rhino horn smuggling ring dismantled by Operation Crash contributed to the soaring increase in the trade of rhino horns both domestically and internationally and this illegal trade leads directly to increased poaching of the species in the wild.  Operation Crash represents a giant step forward in the global fight to save a beautiful species like the Black Rhino from extinction.”

 

“These individuals were interested in one thing and one thing only – making money,” said FWS Director Dan Ashe.  “They didn’t care about the law or about driving a species to the brink of extinction. We will continue to aggressively investigate and pursue traffickers who threaten the future of rhinos and other imperiled species.”

 

Rhinoceros are an herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth.   They have no known predators other than humans.  All species of rhinoceros are protected under United States and international law, and all black rhinoceros species are endangered.

 

Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by over 170 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets.  Nevertheless, the demand for rhinoceros horn and black market prices have skyrocketed in recent years due to the value that some cultures have placed on ornamental carvings, good luck charms or alleged medicinal purposes, leading to a decimation of the global rhinoceros population.  As a result, rhino populations have declined by more than 90 percent since 1970.  South Africa, for example, has witnessed a rapid escalation in poaching of live animals, rising from 13 in 2007 to a record 448 rhinos in 2011.  As of Aug. 27, the total for 2012 stood at 339 rhinos, with a predicted loss of 515 by year end if current poaching rates continue.

 

Operation Crash (named for the term used to describe a herd of rhinoceros) is an ongoing effort to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns.  The investigation is being led by the Special Investigations Unit of the FWS Office of Law Enforcement and involves a nationwide task force of FWS special agents focused on rhino trafficking.

 

The first superseding information, plea agreements and statements made during court proceedings document the following facts:

 During the conspiracy, beginning in January 2010 and continuing to February 2012, Felix Kha would contact Steffen and others regarding individuals located throughout the United States who were willing to sell white or black rhinoceros horn.  On various dates, Jimmy Kha met with others who traveled to Long Beach, Calif., from various locations to provide compensation for previous rhinoceros horn purchases and shipments and to provide money to fund future purchases and shipments of rhinoceros horn.  Jimmy and Felix Kha received, bought, sold and facilitated the transportation of black rhinoceros horn, prior to exportation, knowing that such rhinoceros horn was intended for exportation and that it was illegal under U.S. law to do so.  Jimmy Kha paid, on average, between $5,000 to $7,000 per pound of rhinoceros horn.  The black and white rhinoceros horn acquired by the defendants   has a fair market value between, at a minimum, $1 million to $2.5 million.

 Feng attempted to export a black rhinoceros horn, which he had obtained from the Khas,  from the U.S. to China, by concealing the horn at the bottom of a package. The package, which was deposited with the U.S. Postal Service, contained a single black rhinoceros horn concealed under a layer of chocolates, cigarettes, biscuits, candy, sponges and packing materials.  F eng falsely declared on a U.S. Postal Service Customs Declaration that the package contained “handcraft decorations” with a value of $25, “chocolate” with a value of $46, and “candy” with a value of $15.

 As a supplier for the Khas, Steffen bought and mailed dozens of rhino horns to the pair and made at least 10 trips to California to pick up payment and collect money for additional purchases.  On the last of these trips, Transportation and Security Administration officers, acting at the FWS’s request, stopped Steffan and two travel companions at the airport in Long Beach before they boarded their homebound flight and retrieved $337,000 from their luggage.

 

In February 2012 at the time of the arrest of Jimmy and Felix Kha, FWS agents seized, among other items, rhinoceros mounts, rhinoceros horns, an additional $1 million in cash, approximately $1 million in gold ingots, jewelry, watches, precious stones, a 2009 BMW 759 Li Sedan and a 2008 Toyota Forerunner.

 

Jimmy and Felix Kha each pleaded guilty to one count of conspiracy (maximum penalty of five years in prison), one count of smuggling goods from the United States (maximum penalty of ten years in prison), one count of Lacey Act trafficking (maximum penalty of five years in prison), one count of money laundering (maximum penalty of twenty years in prison), and one count of tax evasion (maximum penalty of five years in prison).  Win Lee Corp. faces additional penalties, including fines totaling up to $1 million. Under the terms of their plea agreements, all of the items recovered from their residence, person, and Jimmy Kha’s business will be forfeited.  In addition, Felix Kha will pay a tax fraud penalty and assessment of approximately $109,000, and Jimmy Kha will pay a tax fraud penalty and assessment of $76,000.

 

Jimmy and Felix are scheduled to be sentenced by U.S. District Judge Christina A. Snyder on Dec. 10, 2012 at 2:30 p.m.  Feng will be sentenced on Oct. 10, 2012, and Steffen will be sentenced on Oct. 15, 2012.

 

U.S. Attorney Birotte Jr. and Assistant Attorney General Moreno commended FWS and its partners for their outstanding work on this investigation.  Assisting agencies included the U.S. Postal Inspection Service, the Internal Revenue Service Criminal Investigations, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.

 

The case is being handled by the U.S. Attorney’s Office for the Central District of California and the Environmental Crimes Section of the U.S. Department of Justice’s Environment and Natural Resources Division.  Assistant U.S. Attorneys Joseph O. Johns and Dennis Mitchell and Shennie Patel, a Trial Attorney with the Environmental Crimes Section, are in charge of the prosecution.

CBP Officers at LAX Seize Exotic Endangered Animal Products Found in Passenger’s Luggage

Los Angeles—U.S. Customs and Border Protection officers at Los Angeles International Airport, recently seized seven ivory tusks, one hippopotamus tusk and seven purses made of ostrich, stingray, crocodile and elephant skins inside several suitcases belonging to a U.S. citizen arriving from Europe.

On June 27, CBP officers referred a passenger for a baggage examination. The passenger, a 63-year-old woman, who traveled from Greece via Germany, provided a negative declaration to CBP officers about the items she was bringing into the country. An x-ray examination of the passenger's three suitcases and a large rectangular metal box revealed a tusk-like object in the box that the passenger said was an “elephant tooth” from her deceased uncle’s estate.

CBP officers consulted with U.S. Fish and Wildlife Service agents which confirmed that all 15 items were prohibited from importation under the Endangered Species Act.

CBP officers seized seven ivory tusks, several of which were carved into statues, one hippopotamus tusk, two ostrich-skin purses, one stingray leather purse, a purse made of elephant hide, and three crocodile purses.

“Enforcing laws that protect endangered animal life by aggressively preventing the illegal introduction of these products into the U.S. is one of the many aspects of the CBP border security mission,” said Todd C. Owen, CBP Director of Field Operations in Los Angeles. “CBP enforces hundreds of U.S. regulations for other agencies in addition to immigration and trade laws.”

The CBP primary mission is anti-terrorism. CBP officers screen all people, vehicles, and goods entering the United States, while facilitating the flow of legitimate trade and travel into and out of the United States.

U.S. Customs and Border Protection is the unified border agency within the Department of Homeland Security charged with the management, control and protection of our nation's borders at and between official ports of entry. CBP is charged with keeping terrorists and terrorist weapons out of the country while enforcing hundreds of U.S. laws.

Louisiana Hunting Outfitter Sentenced to Prison for First Felony Conviction for Illegally Hunting Protected Alligators

WASHINGTON – Gregory K. Dupont, 38, of Plaquemine, La., was sentenced in U.S. District Court in Baton Rouge, La., to serve six months in prison, to be followed by four months in a half-way house and two years of supervised release.  Dupont was also ordered to pay a $3,000 fine.  Dupont’s sentencing, handed down by U.S. District Judge Brian Jackson late Thursday, was the first ever felony conviction and prison sentence resulting from the illegal hunting of American alligators (Alligator mississippiensis), in violation of the Lacey Act, the Endangered Species Act, and Louisiana law.

Dupont has owned and operated Louisiana Hunters Inc., a hunting outfitting company, since 2001.  His clients hired him to take them on alligator hunts in Louisiana, and they included out-of-state residents who were required to hunt with a licensed resident alligator hunter.  Dupont took some of the out-of-state clients to hunt alligators on property where he was not authorized to hunt.  On Feb.10, 2012, Dupont pleaded guilty to selling American alligators by providing outfitting and guiding services, knowing the alligators to have been taken illegally, on a hunt in September 2006. 

In 1967, American alligators were listed as an endangered species because the total population size in the United States reached drastically low numbers due to severe poaching and overharvesting.  The conservation effect of this protected status and of the Lacey Act, the Endangered Species Act, and regulations promulgated by the U.S. Fish and Wildlife Service and the state of Louisiana led to the recovery of the size of the American alligator population in the United States, and American alligators were down-listed to threatened status in 1987.  The success of the American alligator conservation program is second only to that of the Bald Eagle.

Because American alligators remain federally protected, alligator hunting is regulated by federal and state rules and regulations, which require, among other things, the tagging of all harvested alligators.  The integrity of the tagging system is crucial to Louisiana’s alligator management program because it enables the Louisiana Department of Wildlife and Fisheries to monitor harvest areas, alligator size and the number of alligators taken.  This system depends in significant part upon the honesty and self-regulation of Louisiana’s licensed hunters for its continued success.

In Louisiana, an allotted number of alligator hide tags are issued to licensed hunters.  Each tag may be used for one alligator only, and Louisiana law requires alligator hunters to hunt only on property for which hide tags are issued.  The areas where alligator hunting is permitted are determined on a yearly basis by wildlife biologists, whose decisions are based on the need to maintain a healthy alligator population.  If hunters poach alligators from areas for which they do not have tags, then the integrity of the entire alligator management system is undermined, thereby threatening Louisiana’s alligator population and alligator industry, which is a significant component of Louisiana’s economy.

According to court documents, Dupont, in violation of law, guided his clients to places in Louisiana, regardless of whether he had tags for the areas, where he hoped his clients would kill trophy-sized alligators so that they would pay him a trophy fee in addition to the guiding fees. 

The case was prosecuted by Shennie Patel and Susan L. Park of the Environmental Crimes Section of the Environment and Natural Resources Division of the Department of Justice, with assistance from the U.S. Attorney’s Office for the Middle District of Louisiana.  The case was investigated by the Louisiana Department of Wildlife and Fisheries Law Enforcement Division and by the U. S. Fish and Wildlife Service Office of Law Enforcement.

Federal Officials Announce Nationwide Crackdown on Black Market Rhino Trade

WASHINGTON – Seven people have been arrested on charges of trafficking in endangered black rhinoceros horn over the past week in Los Angeles, Newark, N.J., and New York, the Department of Justice and Department of the Interior today announced.  Special agents of the U.S. Fish and Wildlife Service (FWS) and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) made the arrests and have executed search warrants in five different states as part of “Operation Crash,” a multi-agency effort to investigate and prosecute those involved in the black market trade of endangered rhinoceros horn.

In Los Angeles, Jin Zhao Feng, a Chinese national who allegedly oversaw the shipment of at least dozens of rhino horns from the United States to China, was arrested last night.   Last weekend, members of an alleged U.S.-based trafficking ring that supplied rhino horns to Feng were arrested after being charged with conspiracy and violations of the Lacey Act and the Endangered Species Act for purchasing rhino horns from various suppliers in the U.S.  Charges were filed against Jimmy Kha, the owner of Win Lee Corporation; his son Felix Kha; and Mai Nguyen, the owner of a nail salon where packages containing rhinoceros horns were being mailed.  One of the alleged suppliers, Wade Steffen, was arrested in Hico, Texas, and charged in Los Angeles.  According to a criminal complaint filed in U.S. District Court in Los Angeles, the Khas began receiving packages from Steffen and another supplier in 2010.  Seventeen packages were opened under federal search warrants and 37 rhinoceros horns were found.

A search of Steffen’s luggage at the Long Beach Airport in California on Feb. 9, 2012, turned up $337,000 in cash. In additional searches conducted by FWS and ICE, agents found rhinoceros horns, cash, bars of gold, diamonds and Rolex watches.   Approximately $1 million in cash was seized and another $1 million seized in gold ingots.

“The rhino is an animal of prehistoric origin that is facing possible extinction because of an illegal trade for its horns on the black market that is driven by greed,” said Ignacia S. Moreno, Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice.  “The rhino is protected under both U.S. and international law, and we are taking aggressive action to protect the rhino by investigating and vigorously prosecuting those who are engaged in this brutal trade.”    

In New Jersey, Amir Even-Ezra was arrested Saturday, Feb. 18, 2012, on a felony trafficking charge in violation of the Lacey Act after purchasing rhino horns from an individual from New York at a service station off of the New Jersey Turnpike.   Even-Ezra allegedly brought a scale for weighing the horns and envelopes of cash to the meeting, which was brokered by an individual outside of the United States.

In U.S. District Court in Manhattan, antiques expert David Hausman was also charged with illegally trafficking rhinoceros horns and with creating false documents to conceal the illegal nature of the transaction, both in violation of the Lacey Act.  Hausman allegedly purchased a black rhinoceros mount (a taxidermied head of a rhinoceros) from an undercover officer in Illinois and was later observed sawing off the horns in a motel parking lot.  Rhino horns were found in a search conducted on Saturday, Feb. 18, 2012, following his arrest.

“Rhino horn traffickers continue to fuel the illegal demand for horn, demand that has led to hundreds of rhino deaths and put the white and black rhino in danger of extinction in the wild,” said U.S. Fish and Wildlife Service Director Dan Ashe.  “These arrests have dealt a serious blow to rhino horn smuggling, but represent only the beginning of a significant crackdown on this illegal trade.”

“The illegal trade in endangered wildlife robs the world of these magnificent creatures in their natural habitat,” said ICE Director John Morton.  “This case is a reflection of our commitment to ensuring that our children and grandchildren are not deprived by criminals whose only goal is to make a quick buck at the expense of these innocent creatures.”

Rhinoceros are an herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth.   All species of rhinoceros are protected under U.S. and international law.   All black rhinoceros species are endangered.   Rhino horns are composed of keratin, the same type of protein that makes up hair and fingernails.   Rhinoceros horn is a highly valued and sought-after commodity despite the fact that international trade has been largely banned since 1976.   The demand for rhinoceros horn, which is used by some cultures for ornamental carvings, good luck charms or alleged medicinal purposes, has resulted in a thriving black market – a market that has escalated in recent years in both volume and per-unit profit.

  If convicted, maximum penalties under these charges are up to five years in prison and a $250,000 fine for conspiracy; five years in prison and a $250,000 fine for Lacey Act violations; and up to one year in prison and a $100,000 fine for violations of the Endangered Species Act.

Operation Crash (a “crash” is the term for a herd of rhinoceros) is a continuing investigation by the Department of Justice and the Department of the Interior FWS, with assistance from other federal and local law enforcement agencies including ICE and the Internal Revenue Service.   The investigation is being led by the Special Investigations Unit of the FWS Office of Law Enforcement and involves a task force of agents focused on rhino trafficking.

A criminal complaint is a charge based on probable cause allegations. A defendant is presumed innocent unless and until convicted.

The criminal prosecution is being handled by the U.S. Attorney’s Office for the Central District of California, the U.S. Attorney’s Office for the District of New Jersey, the U.S. Attorney’s Office for the Southern District of New York and the Environmental Crimes Section of the U.S. Department of Justice’s Environment and Natural Resources Division, with assistance from the U.S. Attorney’s Office for the Western District of Missouri.

Kentuckians Convicted of Lacey Act Crimes for Illegally Harvesting and Making False Records for Ohio River Paddlefish

WASHINGTON – Two Kentuckians and their caviar companies pleaded guilty today in the U.S. District Court for the Southern District of Ohio to trafficking in and falsely labeling illegally harvested paddlefish (Polydon spathula). Steve Kinder, along with his wife, Cornelia Joyce Kinder, both of Owenton, Ky., owned and operated Kinder Caviar Inc. and Black Star Caviar Company. Those companies were in the business of exporting paddlefish eggs as caviar to customers in foreign countries.

 Paddlefish, whose eggs are marketed as caviar, are protected by both federal and Ohio law. Ohio law prohibits commercial fishing for paddlefish. Ohio law also prohibits the possession or use of gill nets. The Convention on International Trade in Endangered Species of Wild Flora and Fauna (CITES), which is codified in United States law through the Endangered Species Act, regulates international trade in certain species listed on one of three Appendices. Paddlefish are listed on Appendix II of CITES. Appendix II species, or their parts, which were harvested in the United States, may be exported only if they are accompanied by a valid export permit issued by the U.S. Fish & Wildlife Service (USFWS).

 Among other things, the Lacey Act makes it a crime to transport or sell fish, or their parts, knowing that the fish were harvested in violation of any state’s law. Among other things, the Lacey Act also makes it a crime to make or submit a false record, account or label for, or false identification of, fish or fish parts which were, or were intended to be, exported, transported or sold.

 According to the  plea agreement filed in U.S. District Court in Cincinnati, Cornelia Joyce Kinder admitted to making false statements on behalf of Kinder Caviar in a CITES Export Registration Form for paddlefish eggs on or about March 15, 2007. Specifically, Cornelia Joyce Kinder misrepresented the amount of legally-harvested paddlefish eggs that she could provide documentation for, as well as misidentified the fishermen who harvested the paddlefish and the location of harvest.

 As part of a plea agreement, Cornelia Joyce Kinder also admitted to making false statements on behalf of Black Star Caviar Company in a CITES Export Registration Form for paddlefish eggs on or about Dec. 18, 2010. Specifically, Cornelia Joyce Kinder completed the form using the name of a subordinate employee and forged that employee’s signature on the form in order to give the impression that she was not the applicant.

 According to the plea agreement, both Steve Kinder and Cornelia Joyce Kinder admitted to aiding and abetting one another in harvesting paddlefish in Ohio waters, using gill nets attached to the Ohio shoreline, on or about May 5, 2007, and transporting the paddlefish to Kentucky with the intent to sell them when, in the exercise of due care, they should have known that the fish were harvested in violation of Ohio law.

 As part of a plea agreement, both Kinder Caviar and Black Star Caviar Company have each agreed to pay a $5,000 fine and serve a three-year term of probation, during which time those companies will be prohibited from applying for or receiving a CITES Export Permit. In addition, both Steve Kinder and Cornelia Joyce Kinder have agreed to serve a three-year term of probation, during which time they will each perform 100 hours of community service, be prohibited from fishing anywhere in the Ohio River where that river forms the border between Ohio and Kentucky, and be prohibited from applying for or receiving a CITES Export Permit, either on behalf of themselves or anyone else. In accordance with Kentucky law, both Steve Kinder and Cornelia Joyce Kinder face possible suspension of their Kentucky commercial fishing licenses.

 Also as part of the plea agreement, the boat and truck that were used in furtherance of the Lacey Act crimes have been forfeited.

 The case was investigated by the USFWS Office of Law Enforcement; the Ohio Department of Natural Resources, Division of Wildlife; and the Kentucky Department of Fish& Wildlife Resources. The case was prosecuted by Trial Attorney James B. Nelson of the Department of Justice’s Environmental Crimes Section of the Environment and Natural Resources Division, and Assistant U.S. Attorney Laura I. Clemmens of the Southern District of Ohio.