Central District of California
Press releases recorded for this federal judicial district.
Southern California Political Operative Arrested on Federal Complaint Alleging He Acted as Illegal Agent of People’s Republic of ChinaRead the Press Release
LOS ANGELES – FBI agents this morning arrested a Chino Hills man on federal charges that allege he acted as an illegal agent of the People’s Republic of China (PRC), including while serving as the campaign manager for a political candidate who was elected in 2022 to the city council of a Southern California city.
Yaoning “Mike” Sun, 64, was arrested without incident and is expected to make his initial appearance this afternoon in United States District Court in downtown Los Angeles.
A criminal complaint filed Tuesday and unsealed this morning charges Sun with acting as an illegal agent of a foreign power. Sun is also charged with conspiring with another man, Chen Jun, who was sentenced to federal prison last month for acting as an illegal agent of the PRC government and plotting to target U.S.-based practitioners of Falun Gong, a spiritual practice banned in China.
According to the complaint, Sun served as the campaign manager and close personal confidante for a Southern California politician (described in the affidavit as “Individual 1”) who was running for local elected office in 2022. During the campaign, Sun allegedly communicated with Chen regarding his efforts to get Individual 1 elected. Chen discussed with Chinese government officials how the PRC could “influence” local politicians in the United States, particularly on the issue of Taiwan, according to the complaint. In November 2022, shortly after Individual 1 was elected to office, Chen instructed Sun to prepare a report on the election that was sent to Chinese government officials, who responded positively and expressed thanks, according to the complaint affidavit. Chen also sent a message to Individual 1 stating that Individual 1 was “doing a good job, I hope you can continue the good work, make Chinese people proud,” the affidavit states.
“The conduct alleged in this complaint is deeply concerning – the defendant is charged with acting on behalf of the People’s Republic of China to influence our political system,” said United States Attorney Martin Estrada. “We cannot permit hostile foreign powers to meddle in the governance of our country. My office and our law enforcement partners will continue to prioritize the security of our nation and the preservation of the liberties that make this country the envy of the world.”
“This case highlights the breadth of the PRC’s relentless intelligence and malign influence activities targeting the United States,” said Akil Davis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The FBI will continue to use all the tools at its disposal to identify PRC intelligence operations, disrupt PRC information laundering networks, and bring to justice those who seek to engage in criminal conspiracies to undermine the integrity of our elected officials.”
About a month after Individual 1’s election, Chen arranged a lunch at a Rowland Heights restaurant with Sun and others, a gathering that Chen described to a PRC official as a “core member lunch,” the affidavit alleges. Chen subsequently described the lunch as “successful” as participants agreed to establish a “US-China Friendship Promotional Association.” While Individual 1 did not attend the meeting, Chen described Individual 1 as being part of the association and Sun serving as vice president. “This is the basic team dedicated for us,” Chen wrote to the Chinese government official.
Chen instructed Sun in early 2023 to write up another report for Chinese officials describing “you and me cultivating and assisting [Individual 1’s] success,” according to the affidavit. In a February 2023 draft of Sun’s report, Sun described his personal background, his history of working against “Chinese secessionist forces,” and boasted that, “most proudly of all, during the 2022 U.S. midterm elections, I orchestrated and organized my team to win the election for city council member candidate [Individual 1].” In subsequent communications outlined in the affidavit, Chen instructed Sun to include a section on Individual 1, who was to be described as a “New Political Star” with connections to other prominent politicians. The affidavit also states that Chen and Sun discussed their “past struggle fighting Taiwanese independence forces . . . over the years and fighting ‘FLG’ [Falun Gong] influences” in a California city.
In February 2023, Sun and Chen drafted a second report to PRC officials that requested an $80,000 budget to fund additional pro-PRC activities and to combat “anti-China forces” in the United States.
After Chen and Sun discussed a planned trip to the PRC to meet with “leadership,” and after Chen directed Sun to schedule a meeting with the Chinese consul general in Los Angeles, Sun and Individual 1 traveled to China in late August 2023.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The charge of acting as an illegal agent of a foreign government carries a statutory maximum sentence of 10 years in federal prison. The charge of conspiracy to commit an offense against the United States carries a maximum statutory sentence of five years.
This FBI is conducting the ongoing investigation in this matter.
Assistant United States Attorney David Ryan, Chief of the National Security Division, and Assistant United States Attorney Amanda Elbogen of the Terrorism and Export Crimes Section are prosecuting this case, with assistance from Trial Attorney Garrett Coyle of the Counterintelligence and Export Control Section in the Department of Justice’s National Security Division.
Postal Service Supervisor Arrested on Complaint Alleging Theft of $281,000 in Checks from Mail then Deposited into Her Bank AccountsRead the Press Release
SANTA ANA, California – A United States Postal Service supervisor was arrested this morning on a federal criminal complaint alleging she stole more than 20 checks from the U.S. mail and deposited them into her accounts at multiple different banks.
Joivian Tjuana Hayes, 36, of Compton, who is a supervisor at the Costa Mesa Post Office, is expected to make her initial court appearance this afternoon in United States District Court in Santa Ana. A criminal complaint filed Wednesday charges Hayes with one count of bank fraud.
According to the affidavit in support of the criminal complaint, since July 2024, Hayes deposited more than 20 checks that had been stolen from the mail at the Costa Mesa Post Office into her bank accounts at various banks. Hayes allegedly deposited those checks, which had forged signatures of the payees, including one check for more than $114,000. ATM surveillance video shows Hayes making deposits of multiple stolen checks with forged signatures at ATMs in Fountain Valley, Costa Mesa, and Compton.
Hayes’s scheme allegedly involved more than $281,000 in stolen checks that she deposited into her bank accounts. According to the affidavit, Hayes is also suspected of stealing tens of thousands of dollars in currency and gold coins from mail that had been processed through the Costa Mesa Post Office.
Federal agents executed search warrants this morning at Hayes’s residence in Compton and of her 2023 BMW vehicle.
A criminal complaint contains allegations that a defendant has committed a crime. A defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of the bank fraud offense alleged in the complaint, Hayes would face a statutory maximum sentence of 30 years in federal prison.
The United States Postal Service Office of Inspector General investigated this matter.
Assistant United States Attorney Charles E. Pell of the Orange County Office is prosecuting the case.
California Political Operative Arrested on Complaint Alleging He Acted as Illegal Agent of People’s Republic of ChinaRead the Press Release
Note: View the criminal complaint here.
A criminal complaint filed Dec. 17 and unsealed this morning charges Yaoning “Mike” Sun, 64, for allegedly acting as an illegal agent of the People’s Republic of China (PRC) while serving as the campaign manager for a political candidate who was elected in 2022 to the city council of a California city. Sun was arrested today is expected to make his initial appearance this afternoon in the Central District of California.
Sun is also charged with conspiring with another man, Chen Jun, who was sentenced to prison last month for bribery and acting as an illegal agent of the PRC government.
According to the complaint, Sun served as the campaign manager and close personal confidante for a Southern California politician (referred to in the complaint as Individual 1) who ran for local elected office in 2022. During the campaign, Sun communicated with Chen regarding his efforts to get Individual 1 elected. Chen allegedly discussed with Chinese government officials how the PRC could “influence” local politicians in the United States, particularly on the issue of Taiwan. In November 2022, shortly after Individual 1 was elected to office, Chen instructed Sun to prepare a report on the election that was sent to Chinese government officials, who responded positively and expressed thanks, according to the complaint.
About a month after Individual 1’s election, Chen arranged a lunch at a Rowland Heights restaurant with Sun and others, a gathering that Chen described to a PRC official as a “core member lunch,” the complaint alleges. Chen subsequently described the lunch as “successful” as participants agreed to establish a “US-China Friendship Promotional Association.” While Individual 1 did not attend the meeting, Chen identified Individual 1 as being part of “the basic team dedicated for us,” in a communication to a Chinese government official.
In early 2023, Chen instructed Sun to write another report for Chinese officials describing “[Sun] and [Chen] cultivating and assisting [Individual 1’s] success,” according to the complaint.
In February 2023, as the second report to PRC officials was being finalized, Sun forwarded to Chen a proposal to combat “anti-China forces” by participating in a U.S. Independence Day parade in Washington, D.C, according to the complaint. Sun proposed that the PRC government provide an $80,000 budget to support his and Chen’s efforts in the United States.
After Chen and Sun discussed a planned trip to China to meet with “leadership,” and after Chen directed Sun to schedule a meeting with the Chinese consul general in Los Angeles, Sun and Individual 1 traveled to China in August 2023.
If convicted, Sun faces a statutory maximum penalty of 10 years in prison for acting as an illegal agent of a foreign government. Sun also faces a statutory maximum penalty of five years in prison for conspiracy to commit an offense against the United States. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI is investigating the case.
Assistant U.S. Attorneys David Ryan and Amanda Elbogen for the Central District of California and Trial Attorney Garrett Coyle of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Antelope Valley Man Faces New Charge Alleging He Knowingly Sold Fentanyl to Second Victim Who DiedRead the Press Release
LOS ANGELES – A Palmdale man already facing one charge of distribution of fentanyl resulting in death has been charged by federal grand jury indictment with an additional count of distribution of fentanyl resulting in death related to the death of a Palmdale man in August, the Justice Department announced today.
Christopher Morales, 22, was named in a superseding indictment returned Wednesday by a federal grand jury that adds the new narcotics distribution count. Morales was initially charged in October in relation to the first death of a victim in Palmdale. Morales is expected to be arraigned on the superseding indictment in the coming weeks.
Morales previously was charged with one count of distribution of fentanyl resulting in a death and two counts of possession with intent to distribute fentanyl. The superseding indictment charges him with an additional count of distribution of fentanyl resulting in death.
“The defendant allegedly chose financial gain over the life of another when he decided to traffic fentanyl,” said United States Attorney Martin Estrada. “We cannot tolerate those who treat unnecessary and preventable losses of life as just the cost of doing business. Our office and our law enforcement partners will continue our steadfast campaign to help fight this fentanyl crisis and bring lawbreakers to justice.”
“Within a five-month period, two victims died of fentanyl poisoning, allegedly after receiving fentanyl from the defendant,” said Anthony Chrysanthis, Deputy Special Agent in Charge for the DEA Los Angeles Field Division. “His actions serve as a reminder that drug traffickers are not going to stop distributing their poison just because someone dies. But traffickers should take notice – law enforcement is not stopping either.”
According to the indictment, the second victim died of fentanyl poisoning in August 2024 at his family’s home shortly after purchasing the drug from Morales.
Morales was arrested in the first case on September 9 on charges related to a victim who died in March 2024 in Palmdale.
During the investigation of the first incident, the Los Angeles County Sheriff’s Department conducted a search of Morales’s residence in April 2024, which led to the discovery of 4.3 grams of fentanyl and text messages between Morales and the first victim indicating the purchase of fentanyl. More pills recovered and tested after the September 9 arrest were determined to be about an ounce of fentanyl pills.
According to the superseding indictment, the second victim died of fentanyl poisoning in August 2024 at his family’s home shortly after purchasing the drug from Morales.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Morales has been in federal custody since his arrest on September 9.
If convicted, Morales faces a mandatory 20-year prison sentence for each of the two counts of distribution of fentanyl resulting in death. Those two counts carry a statutory maximum sentence of life imprisonment.
The Drug Enforcement Administration and the Los Angeles County Sheriff’s Department are investigating this matter.
Assistant United States Attorney Kelsey A. Stimson of the Violent and Organized Crimes Section is prosecuting this case.
Santa Paula Doctor Sentenced to 2 Years in Federal Prison for Role in Hospice Fraud that Bilked Medicare Out of $3.2 MillionRead the Press Release
LOS ANGELES – A Ventura County physician who worked for two Pasadena hospices was sentenced today to 24 months in federal prison for defrauding Medicare out of more than $3 million through claims for medically unnecessary hospice services.
Dr. Victor Contreras, 69, of Santa Paula, was sentenced today by United States District Judge André Birotte Jr., who also ordered him to pay $3,289,889 in restitution.
Contreras pleaded guilty on July 24 to one count of health care fraud.
From July 2016 to February 2019, Contreras and co-defendant Juanita Antenor, 62, formerly of Pasadena, schemed to defraud Medicare by submitting nearly $4 million in false and fraudulent claims for hospice services submitted by two hospice companies: Arcadia Hospice Provider Inc., and Saint Mariam Hospice Inc. Antenor controlled both companies.
Medicare only covers hospice services for patients who are terminally ill, meaning that they have a life expectancy of six months or less if their illness ran its normal course.
Contreras falsely stated on claims forms that patients had terminal illnesses to make them eligible for hospice services covered by Medicare, typically adopting diagnoses provided to him by hospice employees whether or not they were true. Contreras did so even though he was not the patients’ primary care physician and had not spoken to those primary care physicians about the patients’ conditions. Medicare paid on the claims supported by Contreras’ false evaluations and certifications and recertifications of patients.
In total, approximately $3,917,946 in fraudulently claims were submitted to Medicare, of which a total of approximately $3,289,889 was paid.
According to Medical Board of California records, Contreras is a licensed physician in California, but has been on probation with the Board since 2015 and is subject to limitations on his practice.
Antenor remains at large. Co-defendant Callie Black, 66, of Lancaster, who allegedly recruited patients for the hospice companies in exchange for illegal kickbacks, has pleaded not guilty and is scheduled to go to trial on March 4, 2025.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The United States Department of Health and Human Services Office of Inspector General, the FBI, and the California Department of Justice investigated this matter.
Assistant United States Attorneys Kristen A. Williams of the Major Frauds Section and Aylin Kuzucan of the General Crimes Section are prosecuting this case.
Rancho Cucamonga Man Sentenced to More Than 3 Years in Prison for Operating ‘Birth Tourism’ Scheme for Affluent Chinese ClientsRead the Press Release
LOS ANGELES – A San Bernardino County man was sentenced today to 41 months in federal prison for operating a “birth tourism” scheme that charged Chinese clients tens of thousands of dollars to help them give birth in the United States to obtain birthright U.S. citizenship for their children.
Michael Wei Yueh Liu (刘维岳), 59, of Rancho Cucamonga, was sentenced by United States District Judge R. Gary Klausner.
At the conclusion of a four-day trial, a jury on September 13 found Liu and Jing Dong, (董晶), 47, of Rancho Cucamonga, guilty of one count of conspiracy and 10 counts of international money laundering. Dong is expected to be sentenced in the coming weeks.
From at least January 2012 to March 2015, Liu and Dong ran a maternity house in Rancho Cucamonga. Liu and Dong rented apartments in Southern California to provide short-term housing and provided other services to pregnant women from China who traveled to the United States to give birth so their children would acquire U.S. citizenship. Typically, within one or two months after giving birth, the women returned to China.
Among the services Liu and Dong provided were assistance on how to obtain visas to enter the United States, customs entry guidance, housing, and transportation in the United States, as well as assistance applying for U.S. legal documents for the children of their customers.
Liu and Dong advised their customers on how to hide their pregnancies from the immigration authorities. Liu and Dong also knew – or deliberately avoided learning – that their customers lied on their visa applications submitted to immigration authorities to enter the U.S.
Generally, their customers’ visa applications falsely stated that the purpose of the trip to the United States was for tourism, when it was to give birth, and the length of the stay was days or weeks, when it was in fact months. The visas also misstated the location where the customers intended to stay, which was defendants’ maternity hotel.
Liu and Dong or their agents also advised their customers to fly to ports of entry with perceived less customs scrutiny, such as Hawaii, before flying to Los Angeles, to wear loose fitting clothing, to favor certain lines at customs that they perceived to be less strict, and on how to answer the customs officials’ questions.
Liu and Dong received money from overseas and used that money to promote their scheme.
Homeland Security Investigations, IRS Criminal Investigation, and the FBI investigated this matter. The Irvine Police Department and the San Bernardino County Sheriff’s Department provided substantial assistance.
Assistant United States Attorneys Gregory W. Staples and Kevin Y. Fu of the Orange County Office prosecuted this case.
Pasadena Doctor Agrees to Plead Guilty to Conspiring with Attorney to Bilk More Than $3 Million from California’s Workers’ Compensation FundRead the Press Release
SANTA ANA, California – A physician who worked for an Inland Empire medical company has agreed to plead guilty to conspiring to defraud California’s workers’ compensation fund of millions of dollars by continuing to work on workers’ compensation matters after being suspended due to a prior health care fraud conviction, the Justice Department announced today.
Dr. Kevin Tien Do, 59, of Pasadena, agreed to plead guilty to one count of conspiracy to commit mail fraud and one count of subscribing to a false tax return. He is expected to make his initial appearance this afternoon in United States District Court in Santa Ana.
In his plea agreement, Do admitted that, from October 2018 to February 2023, he conspired to defraud the state of California of millions of dollars of health care funds by defrauding California’s Subsequent Injuries Benefits Trust Fund (SIBTF). The California SIBTF is a special fund administered by California’s workers’ compensation program to provide additional compensation to injured workers who already had a disability or impairment at the time of a subsequent injury.
Beginning in 2016, Do began to work for Liberty Medical Group Inc., a Rancho Cucamonga-based medical company, for which he would draft SIBTF-related medical reports that Liberty would then bill to the California SIBTF program. In October 2018, California suspended Do from participating in California’s workers’ compensation program, which included the SIBTF, because he had previously been convicted of federal health care fraud in 2003. Despite his suspension, Do continued to work for Liberty on SIBTF-related workers’ compensation matters.
Do continued to perform similar actions for Liberty that he had been doing before his October 2018 suspension, including compiling and editing reports related to the SIBTF program. To conceal that Do was unlawfully continuing to participate in the workers’ compensation SIBTF program after his suspension, Liberty’s owner came up with a plan. That plan was that Do would continue to author the SIBTF-related reports, which Liberty would then continue to mail to the California SIBTF for payment. Rather than listing Do’s name on the billing forms and the attached medical reports mailed to the California SIBTF, like they had had done before Do’s suspension, Liberty instead fraudulently listed other doctors’ names on the billing forms and attached medical reports, even though Do had drafted and compiled the reports. Do admitted that Liberty was paid more than $3 million by California SIBTF for such reports that Liberty mailed to the California SIBTF for payment after Do’s October 2018 suspension.
Do’s plea agreement also details that Liberty’s owner edited Do’s medical reports, even though that co-conspirator was not a doctor or other licensed medical professional.
Under California law, shareholders/owners of a medical corporation must be licensed in the practice of medicine or other related medical fields, such as a psychologist, registered nurse, or licensed physician assistant.
In his plea agreement, Do admitted that real owner of Liberty and Do’s co-conspirator was another person who was not a doctor or other medical professional, but rather, was a California attorney then employed as a prosecutor for the Orange County District Attorney’s Office, and who later became an Orange County Superior Court judge during the conspiracy. That true owner who was Do’s co-conspirator not only was a signatory on Liberty’s bank account, but also issued and signed Liberty’s checks to Do and others. The plea agreement specifies that much of the more than $3 million that the SIBTF paid Liberty during the years following Do’s suspension then flowed to another company controlled by Liberty’s owner and his wife, which totaled to more than $1.5 million.
Do also admitted that he failed to accurately report to the IRS all the money he had been paid by Liberty. Do admitted that on his 2021 tax return, he failed to report approximately $66,227 of the income that Liberty paid him.
Once Do enters his guilty plea, he will face a statutory maximum sentence of 20 years in federal prison for the mail fraud count and up to three years in federal prison for the tax fraud count.
The FBI, IRS Criminal Investigation, and the California Department of Insurance are investigating this matter.
Assistant United States Attorneys Charles E. Pell of the Orange County Office and Ryan J. Waters of the Asset Forfeiture and Recovery Section are prosecuting the case.
Convicted Felon Found Guilty of Armed Robbery of Armored Vehicle Courier at Gunpoint While on Supervised Release for Bank RobberyRead the Press Release
LOS ANGELES – An Inglewood man, who in 2022 was granted compassionate release after serving 26 years in federal prison for armed robberies of armed couriers, has been found guilty by a jury of robbing a Brinks courier at gunpoint in a bank parking lot near LAX in August 2023, the Justice Department announced today.
Markham David Bond, 61, was found guilty late Thursday of one count of interference with commerce by robbery (Hobbs Act), one count of using a firearm during a crime of violence, and one count of being a felon in possession of a firearm and ammunition.
Bond has been in federal custody since November 2023.
“After being given a second chance in life, this defendant sadly chose a path of violent crime,” said United States Attorney Martin Estrada. “Through our strong partnerships with federal and local law enforcement, we will continue to use our resources to protect our community by holding accountable violent offenders who use guns.”
According to evidence presented at a five-day trial, on the morning of August 18, 2023, Bond stole approximately $145,000 in cash from a Brinks armored carrier outside a Chase bank near LAX. The armored vehicle was parked in the bank parking lot as one of its employees got out of the vehicle with a blue duffle bag on a rolling cart and which contained the cash. Bond approached the driver, pointed a handgun at him, and demanded the money.
Fearing for his life, the Brinks employee dropped the duffle bag. Bond then ordered the victim to get down on the ground. After the victim complied with this order, Bond grabbed the blue Brinks duffle bag then fled the area.
Bond was arrested on November 22, 2023, and police seized at his residence a .40-caliber pistol containing 10 rounds of ammunition, the shirt he used during the robbery, and cash hidden inside of a mini-refrigerator. Police also found the robbery getaway car parked around the block from Bond’s residence. Inside the car, police found the empty Brinks bag and the hat Bond used during the robbery, among other evidence linking Bond to the robbery.
Bond has multiple felony convictions dating from the 1980s and 1990s, including for Hobbs Act robbery, armed bank robbery, use of a firearm in furtherance of a crime of violence, and conspiracy to possess with intent to distribute heroin. As a convicted felon, Bond is not permitted to possess firearms or ammunition.
In January 1995, Bond was sentenced to 562 months (46 years and 10 months) in prison after being convicted of bank robbery and firearms offenses by a federal jury in Los Angeles. But in January 2022, Bond was granted compassionate release and was released early from prison. He was on supervised release when he robbed the Brinks employee at gunpoint on August 18, 2023.
United States District Judge Wesley L. Hsu scheduled a July 11, 2025, sentencing hearing, at which point Bond will face a statutory maximum sentence of life in federal prison.
Operation Safe Cities establishes strategic enforcement priorities with an emphasis on prosecuting the most significant drivers of violent crime. Across this region, the most damaging and horrific crimes are committed by a relatively small number of particularly violent individuals. This strategic enforcement approach is expected to increase the number of arrests, prosecutions and convictions of recidivists engaged in the most dangerous conduct. It is designed to improve public safety across the region by targeting crimes involving illicit guns, prohibited persons possessing firearms, or robbery crews that cause havoc and extensive losses to retail establishments.
The FBI and the Los Angeles Police Department’s Robbery Homicide Division investigated this case.
Assistant United States Attorneys Haoxiaohan H. Cai of the Corporate and Securities Fraud Strike Force and Daniel H. Weiner of the International Narcotics, Money Laundering, and Racketeering Section are prosecuting this case.
Gardena Street Gang Member Sentenced to Life in Federal Prison for Murdering Victim in Front of the Victim’s HomeRead the Press Release
LOS ANGELES – A member of the Gardena 13 street gang was sentenced today to life in federal prison for murdering a 29-year-old man in furtherance of the Gardena 13 gang in front of the victim’s family home in November 2020.
Justin Arteaga, 24, a.k.a. “Hitta,” of Gardena, was sentenced by United States District Judge André Birotte Jr., who also ordered Arteaga to pay $37,554 in restitution.
At the conclusion of a five-day trial, a jury on July 1 found Arteaga guilty of one count of violent crime in aid of racketeering (VICAR) murder. He has been in federal custody since December 2020.
“This defendant senselessly took a promising young life and will now spend the rest of his days in federal prison,” said United States Attorney Martin Estrada. “Gang violence brings devastation on our most vulnerable communities and immeasurable pain on hard-working families. My heart goes out to the victim’s family, and I applaud them for their courage in supporting justice and accountability.”
“This sentencing ensures that the defendant will no longer pose a threat to the community,” said Homeland Security Investigations (HSI) Los Angeles Special Agent in Charge Eddy Wang. “I hope that today will bring some peace and comfort to a family that has lost so much. HSI Los Angeles and law enforcement partners remain unwavering in our dedication to fighting violent crime and ensuring that justice is served.”
On November 13, 2020, the victim and his brother were seated in a parked car in front of their home when they were confronted by three men on foot – Arteaga, Antonio Yanez, 26, a.k.a. “Tank,” and George Hernandez, a.k.a. “Lil Vampy” – who were all armed with handguns. Yanez and George Hernandez were members of the Gardena 13 street gang, and Arteaga was an associate of the gang.
Following the victim’s perceived disrespect of Gardena 13 and the three assailants, all three assailants pulled out guns and began shooting the victim. After the victim had been shot, the victim’s father stepped out to help his son at which point a shootout between the victim’s father and the assailants, including Gardena 13 gang member Jesus Hernandez, 31, a.k.a. “Rowdy,” occurred.
Police and paramedics responded and treated the victim who died at the scene from gunshot wounds. George Hernandez, who was found lying on the street with gunshot wounds to his head and chest, was brought to a hospital, where he later died.
Arteaga was arrested four days later at Los Angeles International Airport as he was preparing to board a one-way flight to Mexico.
Jesus Hernandez, who participated in the shootout, pleaded guilty in May 2022 to one count of being a felon in possession of a firearm and ammunition and is serving a 110-month prison sentence. Yanez pleaded guilty in February 2022 to one count of VICAR, one count of using a firearm in furtherance of a crime of violence resulting in death, and one count of being a felon in possession of a firearm and ammunition. He is scheduled for sentencing on January 31, 2025.
“These trigger pullers in the gangs who use intimidation in the form of murder will always be sought out and prosecuted,” said Christopher Bombardiere, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives of the Los Angeles Field Division. “The senseless gun violence and lack of regard for life is inexcusable. My condolences goes out to the family who has suffered an unimageable loss.”
“Today’s sentencing underscores the unwavering commitment of law enforcement and prosecutors to deliver justice for victims and their families,” said Gardena Police Chief Michael Saffell. “We sincerely appreciate the collaboration and hard work of the United States Attorney's Office and Homeland Security Investigations in pursuing this case. Their dedication ensured that those responsible for this senseless act of violence were held accountable, sending a clear message that such heinous crimes will not be tolerated in our community.”
Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the Gardena Police Department investigated this matter.
Assistant United States Attorneys, including Kevin J. Butler of the Violent and Organized Crime Section and Varun Behl of the International Narcotics, Money Laundering, and Racketeering Section are prosecuting this case.
Fresno Man Pleads Guilty to Carjacking Motorist in FullertonRead the Press Release
LOS ANGELES – A Fresno man has pleaded guilty to a federal criminal charge for carjacking a motorist last year in Fullerton and throwing her out of the car before leading law enforcement on a high-speed pursuit in which he hit a police car, then fled on foot before officers apprehended him, the Justice Department announced today.
Deshawn Ricks, 35, pleaded guilty on Thursday to one count of carjacking.
According to court documents, on the afternoon of June 14, 2023, Fullerton Police officers were dispatched to the scene of a carjacking that occurred in a parking structure in downtown Fullerton. The victim told officers she was sitting in her parked 2022 Mazda CX-5 SUV with the vehicle turned off when Ricks approached her, opened her car’s door, and ordered her out of the SUV.
When the victim refused, Ricks placed one of his hands on her lower back and brandished a metal object – which the victim described as a “shank” – in his other hand. Ricks threatened to stab the victim, then pulled her out of the vehicle by her hair and body.
Ricks then got into the vehicle and while he attempted to get it to start – the SUV had a “push to start” feature – the victim reached into the vehicle, grabbed her purse, and then walked away to get help. Ricks then drove the car within five feet of the victim and left the area.
Approximately 10 minutes after being notified of the carjacking, Fullerton Police officers located Ricks driving the victim’s stolen SUV. Despite officers’ attempt to make a traffic stop, Ricks led police on a high-speed pursuit in Fullerton in which he ran red lights, drove into oncoming traffic, and hit a marked police vehicle. Later during the chase, when Ricks lost control of the speeding Mazda that then was struck by a police vehicle, he exited the SUV and fled on foot before officers apprehended him.
After law enforcement stopped the vehicle, officers found a pointed, serrated metal stake type object – approximately 12 inches long – near the front driver’s seat.
United States District Judge Maame Ewusi-Mensah Frimpong scheduled an April 11, 2025, sentencing hearing, at which time Ricks will face a statutory maximum sentence of 15 years in federal prison.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Orange County Violent Crimes Task Force (OCVCTF), which is comprised of federal and local law enforcement agencies, including, but not limited to, the ATF, the Santa Ana Police Department, the Brea Police Department, the Fullerton Police Department, the Placentia Police Department, and the Orange County District Attorney’s Office.
Assistant United States Attorneys Jena A. MacCabe and Chelsea Norell of the Violent and Organized Crime Section are prosecuting this case.
Former Orange County Resident Linked to White Supremacy Group Sentenced to 2 Years in Prison for Rioting at Political RalliesRead the Press Release
LOS ANGELES – A former resident of Huntington Beach who has been linked to a white supremacy extremist group was sentenced today to 24 months in federal prison for planning and engaging in riots at political rallies across California.
Robert Paul Rundo, 34, was sentenced by United States District Judge Josephine L. Staton.
Rundo pleaded guilty on September 13 to one count of conspiracy to violate the federal Anti-Riot Act.
“This defendant sought to further his white-supremacist ideology by plotting riots and engaging in violence at political rallies,” said United States Attorney Martin Estrada. “Hate and violence are antithetical to American values and tear at our community. It is therefore critical that we protect the civil and constitutional rights of our community against those who promote divisiveness.”
“After a lengthy investigation, during which the defendant became an international fugitive, Mr. Rundo has now been held accountable for his criminal activity which was motivated by his extremist dogma,” said Akil Davis, the Assistant Director in Charge of the FBI's Los Angeles Field Office. “Mr. Rundo's movement did not ‘rise above’ whatever differences Americans may have, but was divisive, harmful to others and ultimately led him to prison. The FBI will continue to pursue those whose ideology leads to violence and lawlessness.”
From March 2017 to May 2018, Rundo and others participated in an organization that ultimately was rebranded as the “Rise Above Movement” (RAM). RAM representing itself as a fighting group of a new nationalist and white supremacy identity movement. As part of their membership in RAM, Rundo and others attended rallies with the intent to provoke and engage in violence.
To prepare for violent physical conflicts, Rundo and others held hand-to-hand and other fighting training sessions, which they organized through telephone calls, social media, and text messages. Rundo organized and attended several such training sessions in 2017. On various social media platforms, Rundo and others posted messages and photographs of themselves preparing for or engaging in violence, accompanied by statements such as “#rightwingdeathsquad.”
In March 2017, Rundo and other RAM members held a training in San Clemente to prepare to engage in violence at political events, including a rally on March 25, 2017, in Huntington Beach. At the Huntington Beach rally, Rundo and other RAM members pursued and assaulted other persons, including one protestor whom Rundo tackled and punched multiple times. Following the event, Rundo and his co-conspirators posted online photographs and videos celebrating the assaults they had committed.
Rundo also helped organize training for RAM members in anticipation of a rally scheduled to occur on April 15, 2017, in Berkeley. At the Berkeley rally, there were several violent clashes throughout the day. In one such instance, Rundo and several of his co-conspirators crossed a police barrier erected to separate opposing groups. They then punched and kicked several people. Following the event, Rundo and his co-conspirators again posted online photographs and videos celebrating the assaults they had committed.
On June 10, 2017, Rundo and others attended a rally in San Bernardino, at which they confronted and pursued protesters.
In the months following these events, Rundo and his co-conspirators continued to publicly celebrate their assaults, including through online posts with photos and videos of RAM members assaulting people.
Two other defendants have been charged in this case:
- Robert Boman, 31, of Torrance, who has pleaded not guilty to one count of conspiracy to violate the Anti-Riot Act and one count of rioting, and has a trial date of February 18, 2025, scheduled; and
- Tyler Laube, 28, of Redondo Beach, who pleaded guilty in October 2023 to one count of interfering with a federally protected right and later was fined $2,000 and sentenced to time already served in custody.
The FBI’s Joint Terrorism Task Force investigated this case.
Assistant United States Attorneys Kathrynne N. Seiden and Anna P. Boylan of the Terrorism and Export Crimes Section are prosecuting this case.
President of North Carolina-Based Entertainment Company Agrees to Plead Guilty to Additional Federal Fraud ChargesRead the Press Release
LOS ANGELES – The president of an entertainment production company, who pleaded guilty earlier this year to embezzling more than $200,000 from a television production, has agreed to plead guilty to new criminal conduct – this time, misappropriating more than $182,000 from investors in various television productions, the Justice Department announced today.
David Ozer, 59, of Roslyn Heights, New York, has agreed to plead guilty to one count of wire fraud, which carries a statutory maximum penalty of 20 years in federal prison. Ozer previously entered a guilty plea to a separate wire fraud charge on October 22.
Ozer is expected to make his initial appearance in United States District Court in downtown Los Angeles on January 24, 2025.
As he previously admitted as part of his guilty plea, Ozer is a producer and the president of Strong Studios Inc., a production company based in Charlotte, North Carolina. According to his plea agreement, Ozer swindled Ravenwood-Productions LLC, the principal financial backer of “Safehaven,” a supernatural thriller television series, by misappropriating approximately $214,486 in production funds from bank accounts for the production. Ozer also created fraudulent accounting records, including falsified invoices, and forged a letter purportedly from his accountant.
After news of Ozer’s first plea agreement was announced, additional victims came forward. As Ozer has admitted in his new plea agreement filed today, he enticed two victims to loan him money in connection with a television series titled “Endangered.” In return, Ozer’s victims were promised executive producer credits. He also solicited funds from another victim in connection with drafting a script. Despite Ozer’s claims that the script development was in progress, the victim learned from the screenwriter that the script neither had been written nor was the screenwriter paid by Ozer. Instead, Ozer misappropriated the three victims’ funds, which totaled approximately $182,500.
To create the false appearance that the misappropriated funds had been used for their intended purpose, Ozer created fraudulent documents, including falsified bank records, as well as forged correspondence from another producer.
Ozer is scheduled to be sentenced by United States District Judge Stanley Blumenfeld Jr. in his first fraud case on January 28, 2025.
The FBI is investigating this matter.
Assistant United States Attorneys Alexander B. Schwab of the Corporate and Securities Fraud Strike Force and Matt Coe-Odess of the General Crimes Section are prosecuting this case.
Long Beach Man Sentenced to More Than 6 Years in Prison for Daylight Smash-and-Grab Robbery of Beverly Hills Jewelry StoreRead the Press Release
LOS ANGELES – A Long Beach man was sentenced today to 80 months in federal prison for participating in the March 2022 daylight smash-and-grab robbery of a Beverly Hills jewelry store in which nearly $2.7 million worth of merchandise was stolen.
Jimmy Lee Vernon III, 33, was sentenced by United States District Judge George H. Wu, who also ordered Vernon to pay $2,674,600 in restitution.
Vernon pleaded guilty on August 1 to one count of interference with commerce by robbery (Hobbs Act). He has been in federal custody since September 2022.
“This defendant took part in a blatant assault on a store operating in daylight hours, believing he could rob and intimidate others with impunity,” said United States Attorney Martin Estrada. “Now, he will serve a lengthy sentence in federal prison. Our office and our law enforcement partners will not tolerate these sorts of brazen attacks on our community.”
On March 22, 2022, Vernon committed a robbery of the Luxury Jewels of Beverly Hills store. Vernon used heavy tools to smash the store’s display case while employees were present, causing fear of injury to people inside the store.
Vernon then removed jewelry and other items from the store display cases valued at approximately $2,674,600. The merchandise consisted of approximately 19 bracelets, seven pairs of earrings, four necklaces, a pair of obelisks, eight rings, and 20 watches.
After the robbery, Vernon and his accomplices ran out of the store, leaving behind their Kia vehicle – which had been reported stolen out of Long Beach four days before the robbery. During the robbery, Vernon’s cellphone fell out of his sweatpants pocket while he smashed the jewelry store’s window, was left behind and later recovered by law enforcement, according to an affidavit previously filed in this case.
Two days after the robbery, one of Vernon’s accomplices posted on his Instagram account numerous photographs that included large stacks of money and a message praising his “robbery gang,” according to court documents.
As for Vernon’s co-defendants, Deshon Bell, 22, of Long Beach, pleaded guilty in December 2023 to one count of Hobbs Act robbery and is serving a federal prison sentence of one year and one day. Ladell Tharpe, 39, of Long Beach, pleaded guilty on September 30 to one count of Hobbs Act robbery and awaits a January 6, 2025, sentencing hearing.
The FBI and the Beverly Hills Police Department investigated this matter.
Assistant United States Attorneys Kevin J. Butler of the Violent and Organized Crime Section and Kevin B. Reidy of the Major Frauds Section prosecuted this case.
Glendale Woman and Lakewood Man Found Guilty of $3.2 Million Hospice Fraud Scheme Involving Kickbacks for Patient ReferralsRead the Press Release
LOS ANGELES – A Glendale woman and a Lakewood man have been found guilty by a jury of paying and receiving hundreds of thousands of dollars in illegal kickbacks for patient referrals that resulted in the submission of approximately $3.2 million in fraudulent claims to Medicare for purported hospice care, the Justice Department announced today.
Nita Palma, 75, of Glendale, was found guilty late Wednesday of 12 counts of health care fraud and 16 counts of paying illegal kickbacks for health care referrals. Percy Abrams, 74, of Lakewood, also was found guilty late Wednesday of six counts of receiving illegal kickbacks for health care referrals.
According to evidence presented at a six-day trial, Palma was excluded from Medicare, a federal health insurance program for people aged 65 and older, because of prior federal convictions for receiving illegal kickbacks. While she was excluded from Medicare, Palma purchased Magnolia Gardens Hospice through her daughter in 2015 and concealed her ownership interest in Magnolia Gardens Hospice from Medicare.
Palma then paid “marketers”, including Abrams, hundreds of thousands of dollars in illegal kickbacks for patient referrals that Palma could bill to Medicare for purported hospice care.
Hospice is only for those who are terminally ill and have a life expectancy of six months or less. Hospice provides comfort care to a patient instead of trying to cure the patient’s illness, and a patient forfeits certain benefits under Medicare when electing hospice.
Consistent with instructions provided by Palma, Abrams falsely represented to prospective patients that they did not need to be dying to be on hospice. After collecting personal identifying information from prospective patients that were not dying, Abrams sent the information to Nita Palma so she could bill Medicare for purported hospice care.
Through Magnolia Gardens Hospice, Palma caused the submission of approximately $3.2 million in fraudulent claims to Medicare in 2015 and 2016 for purported hospice care for patients that were not dying. Palma received approximately $6,000 each month a patient was billed to Medicare for hospice. In turn, Palma paid Abrams and other marketers up to $1,000 per month in illegal kickbacks for each patient referred to her that was billed to Medicare for hospice. Many of the patients that were billed to Medicare through Magnolia Gardens Hospice did not know they were signed up for hospice, and some patients only found out after they were denied medical coverage for services they needed.
During the health care fraud scheme, Medicare requested additional documentation from Magnolia Gardens Hospice to support the purported hospice claims. In response, Palma and her husband directed employees to create fake patient charts and had those fake patient charts submitted to Medicare. Court documents allege that while awaiting trial in this matter, Palma took control of three other hospices and caused the submission of approximately $4.8 million in claims for purported hospice care.
United States District Judge Dolly M. Gee scheduled a sentencing hearing for April 23, 2025, at which time Palma and Abrams will each face a sentence of up to decades in federal prison.
The United States Department of Health and Human Services Office of Inspector General and the FBI investigated this matter.
Assistant United States Attorney Roger A. Hsieh of the Major Frauds Section and Matt Coe-Odess of the General Crimes Section are prosecuting this case.
Former Syrian Prison Official Charged with TortureRead the Press Release
LOS ANGELES – A federal grand jury returned a superseding indictment today charging a former Syrian government official with torture.
The superseding indictment adds three counts of torture and one count of conspiracy to commit torture to the visa fraud and attempted naturalization fraud charges that were the subject of the initial indictment against Alsheikh in August.
According to court documents, Samir Ousman Alsheikh, 72, of Lexington, South Carolina, was the head of Damascus Central Prison, colloquially known as Adra Prison, from approximately 2005 through 2008. In that role, Alsheikh allegedly ordered subordinates to inflict and was sometimes personally involved in inflicting severe physical and mental pain and suffering on political and other prisoners.
In particular, Alsheikh allegedly ordered some prisoners to Adra Prison’s “Punishment Wing,” where prisoners were beaten while suspended from the ceiling with their arms extended and were subjected to a device known as the “Flying Carpet,” which folded their bodies in half at the waist, causing excruciating pain and sometimes resulting in fractured spines.
“The allegations in this superseding indictment of grave human rights abuses are chilling,” said United States Attorney Martin Estrada. “Our country will not be a safe harbor for those accused of committing atrocities abroad.”
“Samir Alsheikh is charged with torturing political dissidents and other prisoners to deter opposition to the regime of then-Syrian President Bashar al-Assad,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Alsheikh later allegedly lied about his crimes to obtain a U.S. green card. The victims of such violent treatment continue to suffer long after the physical acts of torture have ceased. The Justice Department is committed to prosecuting perpetrators of such crimes and will not allow them, through lies and concealment, to hide in the United States.”
Alsheikh allegedly held a variety of positions in the Syrian police and the Syrian state security apparatus, was associated with the Syrian Ba’ath Party that ruled Syria, and was appointed governor of the province of Deir Ez-Zour by then-Syrian President Bashar al-Assad in 2011. The superseding indictment alleges that Alsheikh immigrated to the United States in 2020 and applied for U.S. citizenship in 2023.
“When it comes to pursuing our criminal investigations, Homeland Security Investigations (HSI) has a long reach and an even longer memory,” said Special Agent in Charge Eddy Wang of the HSI Los Angeles Field office. “Almost 20 years ago, the defendant was accused of torturing prisoners in Syria and, today, we are one step closer to holding him accountable for those heinous crimes. The United States will never be a safe haven for those who commit human rights abuses abroad.”
“The allegations in this superseding indictment reveal unconscionable crimes and a clear violation of human rights,” said Assistant Director Chad Yarbrough of the FBI Criminal Investigative Division. “The FBI is committed to working with our partners across the globe to uncover the truth and ensure those who engage in unlawful and inhumane criminal activity face the full consequences of their actions.”
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted, Alsheikh faces a maximum penalty of 20 years in prison for the conspiracy to commit torture charge, a maximum penalty of 20 years in prison for each of the three torture charges, and a maximum penalty of 10 years in prison for each of the two immigration fraud charges.
HSI and the FBI are investigating the case, with support from the HSI-led Human Rights Violators and War Criminals Center and the Justice Department’s Office of International Affairs. The Justice Department thanks the Swedish Police Authority; Royal Canadian Mounted Police – Federal Policing, Pacific Region; and authorities in Belgium for their invaluable assistance.
Assistant United States Attorney Joshua O. Mausner of the Violent and Organized Crime Section and Justice Department Trial Attorneys Patrick Jasperse and Alexandra Skinnion of the Criminal Division’s Human Rights and Special Prosecutions Section are prosecuting the case. HRSP historian Phil Hoffman provided substantial assistance in the investigation and prosecution.
Members of the public who have information about human rights violators in the United States are urged to contact U.S. law enforcement through the FBI tip line at 1-800-CALL-FBI or the HSI tip line at 1-866-DHS-2-ICE, or complete the FBI online tip form or the ICE online tip form.
Former Syrian Prison Official Charged with TortureRead the Press Release
Note: View a copy of the superseding indictment here.
A federal grand jury in Los Angeles returned a superseding indictment today charging a former Syrian government official with torture.
According to court documents, Samir Ousman Alsheikh, 72, of Lexington, South Carolina, was the head of Damascus Central Prison, colloquially known as Adra Prison, from approximately 2005 through 2008. In that role, Alsheikh allegedly ordered subordinates to inflict and was sometimes personally involved in inflicting severe physical and mental pain and suffering on political and other prisoners. In particular, Alsheikh allegedly ordered some prisoners to Adra Prison’s “Punishment Wing,” where prisoners were beaten while suspended from the ceiling with their arms extended and were subjected to a device known as the “Flying Carpet,” which folded their bodies in half at the waist, causing excruciating pain and sometimes resulting in fractured spines.
“Samir Alsheikh is charged with torturing political dissidents and other prisoners to deter opposition to the regime of then-Syrian President Bashar al-Assad,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Alsheikh later allegedly lied about his crimes to obtain a U.S. green card. The victims of such violent treatment continue to suffer long after the physical acts of torture have ceased. The Justice Department is committed to prosecuting perpetrators of such crimes and will not allow them, through lies and concealment, to hide in the United States.”
“The allegations in this superseding indictment of grave human rights abuses are chilling,” said U.S. Attorney Martin Estrada for the Central District of California. “Our country will not be a safe harbor for those accused of committing atrocities abroad.”
Alsheikh allegedly held a variety of positions in the Syrian police and the Syrian state security apparatus, was associated with the Syrian Ba’ath Party that ruled Syria, and was appointed governor of the province of Deir Ez-Zour by then-Syrian President Bashar al-Assad in 2011. The superseding indictment alleges that Alsheikh immigrated to the United States in 2020 and applied for U.S. citizenship in 2023.
“When it comes to pursuing our criminal investigations, Homeland Security Investigations (HSI) has a long reach and an even longer memory,” said Special Agent in Charge Eddy Wang of the HSI Los Angeles Field office. “The defendant is accused of torturing prisoners in Syria almost 20 years ago, and today, we are one step closer to holding him accountable for those heinous crimes. The United States will never be a safe haven for those who commit human rights abuses abroad.”
“The allegations in this superseding indictment reveal unconscionable crimes and a clear violation of human rights,” said Assistant Director Chad Yarbrough of the FBI Criminal Investigative Division. “The FBI is committed to working with our partners across the globe to uncover the truth and ensure those who engage in unlawful and inhumane criminal activity face the full consequences of their actions.”
The superseding indictment adds three counts of torture and one count of conspiracy to commit torture to the visa fraud and attempted naturalization fraud charges that were the subject of the initial indictment against Alsheikh in August. If convicted, Alsheikh faces a maximum penalty of 20 years in prison for the conspiracy to commit torture charge, a maximum penalty of 20 years in prison for each of the three torture charges, and a maximum penalty of 10 years in prison for each of the two immigration fraud charges. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
HSI and the FBI are investigating the case, with support from the HSI-led Human Rights Violators and War Crimes Center and the Justice Department’s Office of International Affairs. The Justice Department thanks the Swedish Police Authority; Royal Canadian Mounted Police – Federal Policing, Pacific Region; and authorities in Belgium for their invaluable assistance.
Trial Attorneys Patrick Jasperse and Alexandra Skinnion of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) and Assistant U.S. Attorney Joshua O. Mausner for the Central District of California are prosecuting the case. HRSP historian Phil Hoffman provided substantial assistance in the investigation and prosecution.
Members of the public who have information about human rights violators in the United States are urged to contact U.S. law enforcement through the FBI tip line at 1-800-CALL-FBI or the HSI tip line at 1-866-DHS-2-ICE, or complete the FBI online tip form or the ICE online tip form.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
SoCal Man Pleads Guilty to Hate Crime for Attack on Asian American Woman While Shouting Racial SlursRead the Press Release
LOS ANGELES – A Southern California man pleaded guilty to a federal hate crime for punching an Asian American woman in the head in Culver City while shouting racial slurs at her.
Jesse Lindsey, 38, a transient man whose last known address was in Fontana, pleaded guilty to one hate crime count. He has been in federal custody since July 18 and was in state prison on an unrelated conviction prior to then.
“Hate-fueled acts of violence have no place in our society,” said United States Attorney Martin Estrada. “Enforcing civil rights goes to the core of my office’s mission and we will continue to prosecute hate crimes, especially those committed by individuals whose bigotry results in physical harm to victims.”
“The facts of this case shock the conscience,” Akil Davis, Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Mr. Lindsey’s actions were heinous, despicable, and inhumane. Violating the civil rights of others by engaging in racial violence is antithetical to our values as Americans. The FBI is committed to investigating federal hate crimes and protecting civil rights. Members of the public are urged to report a potential hate crime to the FBI at 1-800-CALL-FBI or online at tips.fbi.gov.”
According to his plea agreement, at approximately 1 a.m. on June 14, 2021, the victim was walking to work in Culver City when Lindsey, a white man, approached her and yelled at the victim, whom he perceived to be Asian, “You can’t say hi to a [expletive] white boy?” Lindsey then punched the victim in the head, causing her to fall into the street and hit her head. While the victim lay face down in the street, Lindsey shouted, “You hear what I said, [N-word]? I said good morning, bitch!”
Emergency personnel later transported the victim to a hospital to treat injuries to her head and ear. The victim received approximately 11 stitches.
During an interview about the attack, Lindsey made multiple derogatory and profane remarks about people of Asian descent. The plea agreement states that, among other things, Lindsey said the victim might “whoop” him because “those little dudes,” a reference to Asian men, are “[expletive] crazy” and “have fight in them.”
Referencing the Asian actor known for practicing martial arts, Lindsey said that he thought the victim might pull “some Jet Li [expletive],” according to the plea agreement.
“Our community’s rich cultural diversity is our strength, and we are dedicated to ensuring it remains a safe and welcoming environment for all,” said Culver City Police Chief Jason Sims. “I am proud of the work done by the Culver City Police Department in collaboration with the FBI and United States Attorney’s Office to seek justice for the victim in this case. We are resolute in working to hold the suspect in this case accountable for this egregious crime. Such acts of violence will not be tolerated in our neighborhoods.”
United States District Judge Michael W. Fitzgerald scheduled a March 3, 2025 sentencing hearing, at which time Lindsey will face a statutory maximum sentence of 10 years in federal prison.
The FBI is investigating this case and received substantial assistance from the Culver City Police Department.
Assistant United States Attorney Lindsey Greer Dotson is prosecuting this case.
Northern California Man Arrested for Allegedly Flying Drone over and Photographing Vandenberg Space Force BaseRead the Press Release
LOS ANGELES – A Northern California man has been arrested on a federal criminal complaint for allegedly flying a drone over and taking photographs of Vandenberg Space Force Base, the Justice Department announced today.
Yinpiao Zhou, 39, of Brentwood, is charged with failure to register an aircraft not providing transportation and violation of national defense airspace.
Zhou was arrested Monday at San Francisco International Airport prior to boarding a China-bound flight and made his initial appearance Tuesday in United States District Court in San Francisco.
Zhou remains in federal custody pending prosecutors’ appeal of a federal magistrate judge’s decision to release him. No plea was taken and his arraignment is expected to be scheduled in U.S. District Court in Los Angeles in the coming weeks.
“This defendant allegedly flew a drone over a military base and took photos of the base's layout, which is against the law,” said United States Attorney Martin Estrada. “The security of our nation is of paramount importance and my office will continue to promote the safety of our nation’s military personnel and facilities.”
According to an affidavit filed on December 8 with the complaint, on November 30, 2024, drone detection systems at Vandenberg Space Force Base in Santa Barbara County detected a drone flying over the base. The drone systems detected that the drone flew for nearly one hour, traveled to an altitude of almost one mile above ground level, and originated from Ocean Park, a public area next to the base. Base security personnel went to the park, spoke to Zhou and another person accompanying him, and learned that Zhou had a drone concealed in his jacket – the same one that flew over the base.
Agents later searched Zhou’s drone pursuant to a federal search warrant and saw several photographs of Vandenberg Space Force Base taken from an aerial viewpoint. A search of Zhou’s cellphone showed Zhou conducted a Google search approximately one month earlier for the phrase “Vandenberg Space Force Base Drone Rules” and messaged with another person about hacking his drone to allow it to fly higher than it could otherwise.
Zhou is a Chinese citizen and lawful permanent resident of the United States, most recently returning to the United States from China in February 2024. The person accompanying Zhou at Ocean Park most recently entered the United States from China on November 26.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
If convicted, the defendant would face a statutory maximum sentence of four years in federal prison.
The FBI is investigating this matter.
Assistant United States Attorney Kedar S. Bhatia of the Terrorism and Export Crimes Section and Trial Attorney Benjamin Koenigsfeld of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
Justice Department Agrees to $215 Million Settlement Agreement Related to Assets of Internet Prostitution Ad Service Backpage.comRead the Press Release
LOS ANGELES – The Justice Department today filed a settlement agreement reached between the parties in the civil forfeiture case involving Backpage.com, a now-shuttered internet forum for prostitution ads that included ads depicting sex work of children, in which $215 million in assets traceable to Backpage’s profits, and previously seized by the government from Backpage and its agents, will be forfeited to the United States.
The forfeited assets – comprised of cash, cryptocurrency, and one parcel of real estate in San Francisco – will be available for a remission process to compensate victims of the crime. Details about the remission process will be announced at a later date. The forfeiture represents more than 80% of the value of the property seized or restrained in the case.
“This settlement agreement marks a significant milestone in a criminal case involving the sexual exploitation and trafficking of countless women and children,” said United States Attorney Martin Estrada. “The nine-figure dollar amount forfeited in this case will allow for victims to recover and show that individuals who profit from such exploitation and trafficking risk both prison time and financial ruin.”
For most of its 14-year existence, Backpage dominated the online market for illegal sex work advertising in the United States. While Backpage offered many categories of advertisements, in most years, more than 90% of Backpage’s revenue and activity occurred in the adult-related ad sections. Backpage monetized these advertisements by allowing a variety of pay-for options such as posting ads across multiple geographic areas and increased ad promotion. The company’s CEO eventually admitted that most of the website’s adult ads were for prostitution.
In April 2018, several Backpage-related corporate entities, including Backpage LLC, pleaded guilty in Arizona federal court to conspiracy to engage in money laundering. Several Backpage owners and executives also have been convicted in this matter, including Michael Lacey, 76, of Paradise Valley, Arizona, was sentenced to five years in prison; Scott Spear, 74, of Phoenix, was sentenced to 10 years in prison; and John “Jed” Brunst, 72, of Phoenix, was sentenced to 10 years in prison. Lacey is free on bail pending appeal.
According to court documents and evidence presented at trial, from September 2010 until its seizure by the United States in April 2018, Backpage was the internet’s leading forum for prostitution ads. The conspirators knowingly promoted prostitution via various marketing strategies. For example, they engaged in a reciprocal link program with an independent web forum that permitted “johns” to post reviews of prostitution acts with specific women. Additionally, the conspirators used an automated filter and human moderators to remove terms known to indicate sex-for-money, while still allowing the ads to be posted. Through this attempt to sanitize the ads, the conspirators sought “plausible deniability” for what the conspirators knew to be ads promoting prostitution. Over the life of the conspiracy, the conspirators earned more than $500 million. To preserve the money earned, Lacey, Spear, and Brunst laundered the money through numerous shell companies they created in multiple foreign countries.
The United States Postal Inspection Service, the FBI, and IRS Criminal Investigation investigated this matter. The United States Attorney’s Office for the District of Arizona, which prosecuted the underlying criminal cases, provided substantial assistance.
Assistant United States Attorney Jonathan S. Galatzan of the Asset Forfeiture and Recovery Section is prosecuting this case.
The case name and number in this matter are United States of America v. $1,546,076.35 In Bank Funds Seized from Republic Bank of Arizona Account 1889, et al., CV 18-08420 (C.D. Calif.).
2 Defendants Charged in U.S. Courts as Part of Global Crackdown on ‘Booter’ Services Offering Distributed Denial-of-Service AttacksRead the Press Release
LOS ANGELES – The Justice Department today announced the court-authorized seizure of 27 internet domains associated with some of the world’s leading DDoS-for-hire services, as well as criminal charges against two defendants who allegedly oversaw computer attack platforms commonly called “booter” services.
Federal law enforcement is now seizing the websites that allowed paying users to launch powerful distributed denial-of-service (DDoS) attacks that flood targeted computers with information and prevent them from being able to access the internet.
Booter services such as those named in this action allegedly attacked a wide array of victims in the United States and abroad, including educational institutions, government agencies, gaming platforms and millions of people. In addition to affecting targeted victims, these attacks can significantly degrade internet services and can completely disrupt internet connections.
The websites targeted in this operation were used to launch millions of actual or attempted DDoS attacks targeting victims worldwide. While some of these services claimed to offer “stresser” services that could purportedly be used for network testing, the FBI and DCIS determined these claims to be a pretense, and “thousands of communications between booter site administrators and their customers…make clear that both parties are aware that the customer is not attempting to attack their own computers,” according to an affidavit filed in support of court-authorized warrants to seize the booter sites.
“Booter services facilitate cyberattacks that harm victims and compromise everyone’s ability to access the internet,” said United States Attorney Martin Estrada for the Central District of California. “This week’s sweeping law enforcement activity is a major step in our ongoing efforts to eradicate criminal conduct that threatens the internet’s infrastructure and our ability to function in a digital world.”
“Cybercrime service providers, such as those criminals operating DDoS for hire booter websites, affect victims in Alaska and across the world,” said United States Attorney S. Lane Tucker for the District of Alaska. “Because of the scope of the threat, we have partnered with law enforcement in the United States and abroad to achieve meaningful disruptions of these services in order to protect critical internet infrastructure and services.”
“Whether you launch a DDoS attack or hire a DDoS service to do it for you, the FBI considers it a crime. Cybercriminals are increasingly targeting essential services and our critical infrastructure with DDoS attacks that can cost victims valuable time, money and reputational harm,” said Akil Davis, Assistant Director in Charge of the FBI Los Angeles Field Office. “With the FBI’s mix of unique authorities, capabilities, and partnerships, potential users and administrators should think twice before buying or selling these illegal services. Victims of cybercrime are urged to contact their local FBI field office or file a complaint with the FBI’s Internet Crime Complaint Center at ic3.gov.”
“DDoS attacks are a potent cyber weapon with the proven potential to disrupt critical information systems and infrastructure,” said Special Agent in Charge Kenneth DeChellis of the Defense Criminal Investigative Services (DCIS), Cyber Field Office. “Today’s action against DDoS-for-hire services demonstrates the resolve of the DCIS and global law enforcement partners to disrupt the use of these services by hacktivist groups and cybercriminals.”
“In this coordinated law enforcement effort, the FBI seized and disabled powerful computer attack platforms that offered DDoS-for-hire services,” said Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office. “This action demonstrates our shared commitment with domestic and international law enforcement partners in combatting cybercrime and defending our digital infrastructure.”
Law enforcement has conducted interviews with U.S. customers of these services, with future interviews expected, and authorities are continuing to investigate both administrators and customers of booter services around the world.
This coordinated law enforcement action comes shortly before the Christmas holiday period, which typically brings a significant increase in DDoS attacks across the internet.
Relatedly, one defendant has been charged federally in Los Angeles and one defendant has been charged federally in Anchorage, Alaska, in connection with DDoS-for-hire services.
Central District of California
Prosecutors in Los Angeles this week unsealed one indictment charging one defendant with running booter services.
Ricardo Cesar Colli, a.k.a. “TotemanGames,” 22, of Brazil, is charged with conspiracy to violate and violating the Computer Fraud and Abuse Act related to the alleged operation of a booter service named Securityhide.net (formerly known as Securityhide.com).
Assistant United States Attorney Aaron Frumkin of the Cyber and Intellectual Property Crimes Section is prosecuting the case. Assistant United States Attorney James E. Dochterman of the Asset Forfeiture and Recovery Section is handling the seizure of the domains.
District of Alaska
Prosecutors in Alaska have indicted one defendant with being the administrator of significant booter services. That indictment remains under seal, as the United States continues to work with international partners to pursue an arrest and extradition.
Assistant United States Attorneys Adam Alexander, Ainsley McNerney, and Seth Brickey are prosecuting the case.
In conjunction with the website seizures, Homeland Security Investigations, the United Kingdom’s National Crime Agency, and the Netherlands Police have launched an advertising campaign using targeted placement ads in search engines, which are triggered by keywords associated with DDoS activities. The purpose of the ads is to deter potential cyber criminals searching for DDoS services in the United States and around the globe, as well as to educate the public on the illegality of DDoS activities.
In recent years, booter services have continued to proliferate as they offer a low barrier to entry for users looking to engage in cybercriminal activity. These types of DDoS attacks are so named because they result in the “booting” or dropping of the targeted computer from the internet. For additional information on booter and stresser services and the harm that they cause, please visit: https://www.fbi.gov/contact-us/field-offices/anchorage/fbi-intensify-efforts-to-combat-illegal-ddos-attacks.
The cases announced today are being investigated by the FBI’s Anchorage and Los Angeles field offices, Defense Criminal Investigative Service’s Cyber East and Cyber West field offices, and HSI’s Columbus field office.
Invaluable assistance was provided by Germany’s Bundeskriminalamt (BKA); the United Kingdom’s National Crime Agency; the Netherlands Police; Polish Central Cybercrime Bureau; Brazilian Federal Police, High Tech Crimes Coordination; EUROPOL; and the Brandon Police Service in Manitoba, Canada. Akamai, Cloudflare, Digital Ocean, Entertainment Software Association, Flashpoint, Google, Oracle, PayPal, Unit 221B, Amazon Web Services, the University of Cambridge, and other valued private sector partners provided additional assistance.
These law enforcement actions were taken in conjunction with Operation PowerOFF, an ongoing, coordinated effort among international law enforcement agencies aimed at dismantling criminal DDoS-for-hire infrastructures worldwide, and holding accountable the administrators and users of these illegal services.
In previous law enforcement actions involving prosecutors and investigators in Los Angeles and Anchorage over the last four years, the Justice Department charged nine defendants who facilitated DDoS-for hire services and seized more than 75 internet domains associated with DDoS-for-hire services. The multi-prong investigation announced today builds on the success of the prior cases by targeting all known booter sites, shutting down as many as possible, and undertaking a public education campaign.
Orange County Man Sentenced to over 15 Years in Prison for House Flipping Investment Scam that Raised More Than $17 MillionRead the Press Release
LOS ANGELES – A Costa Mesa man was sentenced today to 181 months in federal prison for running fraudulent investment schemes that raised more than $17 million by promising investors – several of them elderly – returns of up to 10% that would be generated through real estate deals that turned out to be bogus, and for disobeying a court order to surrender to federal authorities for violating the terms of his pretrial release.
Brett Barber, 45, a former co-owner of the Newport Beach-based BNZ Capital One LLC and National American Capital, was sentenced by United States District Judge Otis D. Wright II, who scheduled a January 9, 2025, restitution hearing in this case.
At today’s hearing, Judge Wright said, “There may not have been bloodshed, but this was real violence. [The defendant] knew these people were in their golden years, and he just took it all.”
Barber pleaded guilty in October 2023 to two counts of wire fraud and one count of criminal contempt.
“This defendant enriched himself through a fraudulent investment scheme that solicited millions of dollars from retirement funds belonging to his victims, including older adults,” said United States Attorney Martin Estrada. “My office is committed to protecting vulnerable communities from fraud and other harms. Today’s sentence sends a message to victims that we are here to fight for them and hold con artists and other fraudsters accountable for their actions.”
From May 2019 to October 2021, Barber participated in two schemes to defraud victim investors out of their money and property.
In the first scheme, BNZ Capital, its principals, and several marketers raised money by falsely representing that the firm bought and sold real estate projects and “flipped” real estate. Barber, co-conspirator Louis Zimmerle, 65, of Sacramento, and the marketers falsely promised investors a “guaranteed” return of between 8% and 10%, as well as potential bonuses based on successful deals. According to court documents, Barber told investors that their funds were “safe” and “FDIC insured.”
In fact, while BNZ Capital did purchase some real estate, it did not take any substantial steps to develop parcels, nor did BNZ flip real estate for a profit. Rather, BNZ primarily used investor funds to pay Barber, Zimmerle, and others associated with the scheme, including purchasing residences where Barber and Zimmerle lived. Some of the investors’ money was used to repay earlier investors.
During this scheme, Barber, Zimmerle, and the marketers solicited or caused to be transferred to BNZ Capital approximately $13.8 million from victim investors. Investigators estimate that actual losses resulting from this scheme are at least $7 million.
Barber received and kept approximately $2,933,970 of investor money for his personal gain. At least five BNZ Capital investors were elderly, vulnerable victims who suffered substantial hardship because of the fraud committed against them.
After Barber learned that federal officials were investigating BNZ Capital, he began a second fraudulent scheme, this time involving a company he formed in January 2021 called National American Capital (NAC). The NAC scheme operated, in substance, the same way as the BNZ Capital fraud. That is, Barber and marketers working at his direction lied to investors by saying their money would be used to fund real estate development projects. In fact, there were no such projects, and the only way NAC could repay earlier investors was by soliciting money from new investors.
Specifically, in October 2021, Barber met with a person he believed was a prospective investor, but who in fact was an undercover law enforcement official. During this meeting, Barber told several lies: that NAC had been in business for 20 years, that it owned 10 parcels of land in Laguna Beach, and that it had purchased property in Newport Beach and turned it into a four-plex. None of these statements was true.
This scheme caused a loss of at least $3.5 million. Barber received and kept at least $388,669 of investor money for his personal gain.
During the BNZ Capital and NAC schemes, Barber failed to disclose to investors that he previously was barred from acting as or associating with a broker-dealer by the Financial Industry Regulatory Authority (FINRA).
Finally, after a federal grand jury indicted Barber in October 2021, he was released on bond. In January 2023, a court found that Barber violated the terms of his pretrial release and ordered him to surrender to the United States Marshals Service by January 13. Barber willfully disobeyed the court’s order and failed to surrender. In March 2023, Barber was arrested in Santa Cruz County, California. He eventually was transferred to federal custody in Los Angeles, where he remains.
Zimmerle pleaded guilty in January 2022 to one count of wire fraud for participating in the scheme. Judge Wright on June 3 sentenced Zimmerle to five years’ probation, fined him $10,000, and ordered him to pay $684,500 in restitution.
In October 2021, the United States Securities and Exchange Commission (SEC) filed civil charges against Barber, Zimmerle, and BNZ Capital for fraudulently raising more than $13 million from over 100 retail investors. That litigation remains pending.
The FBI investigated this matter. The SEC provided substantial assistance.
Assistant United States Attorneys Maxwell K. Coll of the Cyber and Intellectual Property Crimes Section and Anne C. Gannon of the Orange County Office prosecuted this case.
Carson Woman and South L.A. Man Found Guilty of Participating in Armed Robberies of Local Businesses Last YearRead the Press Release
LOS ANGELES – A Harbor-area woman and a South Los Angeles man were found guilty by a jury today of participating in armed robberies of businesses in which local businesses in Los Angeles County were targeted in August and September of last year.
Diavion Deshawna Mouton, 23, of Carson, and Rodney Darrin Maxwell Evans, 23, of the Vermont Square neighborhood of Los Angeles, were each found guilty of one count of conspiracy to interfere with commerce by robbery (Hobbs Act), two counts of Hobbs Act robbery, and two counts of brandishing a firearm in furtherance of a crime of violence.
“Violent gun crime leaves emotional scars that last for years,” said United States Attorney Martin Estrada. “Through the Operation Safe Cities initiative, my office is partnering with local law enforcement to prosecute more and more cases that hold accountable those who choose to harm our communities.”
According to evidence presented at a four-day trial, Evans participated in two armed robberies that occurred on August 14, 2023, respectively, at Rite Aid stores in Bellflower and in the Vermont Square neighborhood of South Los Angeles. During the robberies, multiple firearms were brandished, and store employees were forced to open the store safe. In total, Evans and his co-conspirators – ringleaders Makai Yusef Sanders, 23, and Kenyatta Kamar Jones, 23, both of Hawthorne – stole a total of $12,410 from the robberies.
Mouton participated in two armed robberies on September 19, 2023, at a Walgreens store in Glendale and a Wingstop restaurant in Lynwood. She was the getaway driver for both robberies, in which Sanders and Jones brandished firearms and stole a total of $1,776 from the businesses.
During the Walgreens robbery, Sanders and Jones robbed a customer who was at a register attempting to purchase some items, held the victim at gunpoint, and stole the victim’s iPhone. A store employee, a handgun pointed at her back, was ordered to the store’s safe with the barrel of the gun used to push her to get her to move faster. In fear for her life, the employee began walking to the back of the store where the safe was located. Once at the back of the store, the employee noticed the robber was distracted talking to the other robber. The employee then locked herself inside the store’s staffing office and called 911.
In addition to the cash, Sanders and Jones stole four iPhones belonging to victims at the Walgreens store. The suspects then exited the store and drove away in a white Honda Civic, which law enforcement later discovered had been booked via a peer-to-peer carsharing company and was driven by Mouton.
Using phone records and GPS data, law enforcement tracked the defendants down and arrested Sanders, Jones, and Mouton on September 26, 2023. At the time of their arrests, Jones and Sanders possessed handguns consistent with the firearms used in the Walgreens robbery. Law enforcement also found clothing – including the black mask with a red logo – consistent with what one of the suspects wore during that robbery.
United States District Judge R. Gary Klausner scheduled a March 31, 2025, sentencing hearing, at which time Evans and Mouton will face a mandatory minimum sentence of fourteen years in federal prison and a statutory maximum sentence of life imprisonment.
Sanders and Jones pleaded guilty on November 26 to one count of conspiracy to commit Hobbs Act robbery, one count of Hobbs Act robbery, and one count of brandishing a firearm in furtherance of a crime of violence. In their plea agreements, Sanders and Jones admitted to committing 12 armed robberies of local businesses – mostly chain-store pharmacies – in August and September of 2023. Both defendants face a mandatory minimum sentence of seven years in federal prison and a statutory maximum sentence of life imprisonment at their sentencing hearings, which are scheduled for March 17, 2025.
Sanders and Jones have agreed to be sentenced to 25 years in federal prison.
Co-defendant Adrian Timothy Bedran, 24, of Rosemead, pleaded guilty on September 9 to one count of Hobbs Act robbery. He is free on $50,000 bond and awaits sentencing on January 13, 2025.
Co-defendants DeAngel Daryl Alvarez, 24, a.k.a. “Macc,” of the Athens area of South Los Angeles, is believed to be a fugitive, and Kevin Antwon Gadley, 20, a.k.a. “One Shot,” of San Fernando, is in state custody on unrelated charges.
Operation Safe Cities establishes strategic enforcement priorities with an emphasis on prosecuting the most significant drivers of violent crime. Across this region, the most damaging and horrific crimes are committed by a relatively small number of particularly violent individuals. This strategic enforcement approach is expected to increase the number of arrests, prosecutions and convictions of recidivists engaged in the most dangerous conduct. It is designed to improve public safety across the region by targeting crimes involving illicit guns, prohibited persons possessing firearms, or robbery crews that cause havoc and extensive losses to retail establishments.
The FBI; the Glendale Police Department; the Los Angeles Police Department; the Los Angeles County Sheriff’s Department; the Inglewood Police Department; the Long Beach Police Department; the Pasadena Police Department; the Monterey Park Police Department; the Whittier Police Department; and the Burbank Police Department investigated this matter.
Assistant United States Attorneys Kevin J. Butler and Jena A. MacCabe of the Violent and Organized Crime Section and Juan M. Rodriguez of the Public Corruption and Civil Rights Section are prosecuting this case.
U.S. Attorney Martin Estrada Announces Expansion of CASA Program for Federal Defendants Eligible for RehabilitationRead the Press Release
LOS ANGELES – United States Attorney Martin Estrada announced today the expansion of the Conviction and Sentence Alternatives (CASA) program, which is being made available to a wider group of defendants by an expansion of admission criteria to include defendants facing federal charges who have demonstrated an ability and willingness to make significant and meaningful changes to their lives.
Successful participants in the CASA program have their charges dismissed or receive a recommendation of a non-custodial sentence.
The CASA partners – which are comprised of the United States District Court, the U.S. Attorney’s Office, the Federal Public Defender, and U.S. Probation and Pretrial Services – are expanding the program to admit applicants who can benefit from a rigorous, structured program regardless of whether they can demonstrate a substance use or mental health issue that contributed to the underlying federal offense. The expanded CASA admission criteria are posted to the United States Attorney’s Office public website, and prospective applicants are encouraged to refer to them.
“The CASA program enhances public safety by guiding low-level offenders through a rigorous rehabilitation program that will reduce recidivism,” said United States Attorney Martin Estrada. “This program has been a major success and a model for the nation, and I am grateful for the hard work of our CASA partners and participants who have brought positive change in their communities.”
“I am proud of CASA’s 12-year track record of success in assisting defendants to effectuate a positive trajectory in their lives without incarceration and applaud the U.S. Attorneys’ Office formal embrace of expanded admission criteria that accurately reflect CASA’s mission and objectives,” said Chief United States District Judge Dolly M. Gee of the U.S. District Court for the Central District of California.
“The Federal Public Defender’s Office looks forward to the expansion of CASA,” said Federal Public Defender Cuauhtemoc Ortega. “We will continue to advocate for applicants that are deserving and in need of the resources CASA can provide. Our office remains committed to work together with all the CASA partners to shepherd participants toward graduation and a successful future. CASA is living proof that alternatives to incarceration programs work and have an important role on our criminal justice system.”
The CASA program began in 2012 and there are now nearly 400 successful graduates. It is a collaborative, interagency program that enjoys support from the United States District Court, the United States Probation and Pretrial Services Office, the Federal Public Defender, and the United States Attorney’s Office. Each agency provides considerable resources to the program throughout the Central District of California – a seven-county area comprised of the counties of Los Angeles, Orange, Riverside, San Bernardino, Ventura, Santa Barbara, and San Luis Obispo.
CASA uses its resources and evidence-based practices to support participants in addressing substance use disorders, mental health challenges, negative peer associations, and other issues which may have contributed to the commitment of the charged federal crime. For suitable applicants, CASA provides an alternative to incarceration aimed at successfully re-integrating federal defendants into families, communities, employment, and a crime-free, drug-free lifestyle.
The CASA program includes bi-weekly court sessions, structured straining to help in planning and developing improved decision making, job and work application skills, and, when needed and directed, substance abuse treatment and mental health therapy.
The CASA program was initially modeled on state drug-court programs and the Central District of California’s successful Substance Abuse Treatment and Re-Entry (STAR) program. Over time, it was recognized that the CASA program could have utility beyond addressing substance use and mental health issues.
South L.A. Man Arrested on Complaint Alleging Armed Robbery Spree, Including One Incident in Which He Twice Shot VictimRead the Press Release
SANTA ANA, California – A South Los Angeles man has been arrested on a federal criminal complaint alleging he committed a series of armed robberies in parking lots in Los Angeles and Orange counties, including one incident in which he shot a victim twice outside the South Coast Plaza shopping mall in Costa Mesa, the Justice Department announced today.
Oshae Pollard, 21, of the Manchester Square neighborhood of Los Angeles, is charged with interference with commerce by robbery (Hobbs Act) and use of a firearm in furtherance of a crime of violence. He was arrested Wednesday.
Pollard is scheduled to make his initial appearance this afternoon in United States District Court in Santa Ana.
“The violence alleged in this complaint shocks the conscience,” said United States Attorney Martin Estrada. “It is essential that we hold perpetrators of violence accountable for victimizing our community. My office – through the Operation Safe Cities initiative – is collaborating with local law enforcement and using powerful federal tools to target the worst offenders of violent gun crime.”
According to an affidavit filed with the complaint, from August 25 to September 22, Pollard targeted victims in parking lots in Southern California in a series of crimes – at least three armed robberies and one attempted armed robbery.
The first robbery occurred late at night on August 25, 2024, at the Hustler Casino parking lot in Gardena, where Pollard ran toward the victim and pushed her to the ground. The victim held onto her purse and yelled for help. Pollard began pulling on the victim’s purse and pulled out a black semi-automatic pistol, placed it into the victim’s mouth – breaking her teeth in the process – and said, “If you yell again, I’ll kill you.” A witness began yelling and Pollard grabbed the victim’s purse – stealing between $1,000 and $2,000 – retreated to a car and drove away.
During the early morning of August 26, Pollard and an accomplice robbed a taxi driver sitting inside his cab in the parking lot of a Winchell’s Donut House in Carson, struck the victim in the face, entered his car, and held the victim at gunpoint until he handed them his wallet and Samsung cellphone.
Late night on the same day, Pollard and an accomplice approached two victims standing near their Rolls-Royce and Ferrari vehicles in the parking lot of the Fashion Island shopping center in Newport Beach. Pollard pointed a semi-automatic pistol at the victim standing near the Rolls-Royce and demanded all the victim’s cash. The victim handed over a luxury watch, a wallet, and the keys to the Rolls-Royce. When the other victim started the Ferrari and attempted to drive away, Pollard ran to the driver’s door of the Ferrari and fired one round from his pistol into the car, barely missing the victim. The victim drove to a nearby gas station and asked the gas station clerk to call police, who later recovered one 9mm shell casing from the scene. The total value of the items stolen was approximately $44,000.
On September 22, Pollard approached a victim who was entering his car parked in the parking lot of the South Coast Plaza shopping mall in Costa Mesa, and demanded, “Give me the watch. Give me the ring. Give me the car,” and later threatened to shoot the victim, according to the affidavit. When the victim didn’t comply, Pollard shot the victim in the left hand, then pointed his pistol at the victim’s chest and said, “You’re a dead man.”
Pollard then shot the victim in the left thigh as the victim began to remove his watch. The victim then kicked Pollard, who fell to the ground. The victim then kicked Pollard several times, fought with him for up to 15 seconds, then got back into his car and drove away. Pollard ran to a Kia Forte and fled the scene. The victim survived the gunshot wounds.
“Reducing violent crime in our community and throughout our country is a priority of the ATF,” said ATF Los Angeles Field Division Special Agent in Charge Christopher Bombardiere. “I could not be more pleased with the outcome of this investigation by the ATF Orange County Violent Crime Task Force. Cases like this highlight the importance of authentic relationships between law enforcement agencies to keep our communities safe. This arrest illustrates the task force’s unrelenting resolve to hold accountable anyone who engages in violent criminal activity.”
“These are crimes of violence that not only terrorize the intended targets, but our community as a whole, making shoppers think twice about whether a trip to the mall will erupt in gunfire,” said Kimberly Edds, Director of Public Affairs for the Orange County District Attorney’s Office. “As a result of the unrelenting pursuit of justice by the U.S. Attorney’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Orange County District Attorney’s Office, this arrest continues to send a strong message that crime doesn’t pay in Orange County.”
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
If convicted of all charges, Pollard would face a statutory maximum sentence of life in federal prison.
Operation Safe Cities establishes strategic enforcement priorities with an emphasis on prosecuting the most significant drivers of violent crime. Across this region, the most damaging and horrific crimes are committed by a relatively small number of particularly violent individuals. This strategic enforcement approach is expected to increase the number of arrests, prosecutions and convictions of recidivists engaged in the most dangerous conduct. It is designed to improve public safety across the region by targeting crimes involving illicit guns, prohibited persons possessing firearms, or robbery crews that cause havoc and extensive losses to retail establishments.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Orange County Violent Crime Task Force is investigating this case. This task force is comprised of federal and local law enforcement agencies, which include ATF, the Brea Police Department, the Placentia Police Department, the Fullerton Police Department, the Santa Ana Police Department, and the Orange County District Attorney’s Office with the assistance of the Newport Beach Police Department and the Costa Mesa Police Department.
Assistant United States Attorneys Jena A. MacCabe and Kevin J. Butler of the Violent and Organized Crime Section are prosecuting this case.
Former Commerce City Manager and Former Baldwin Park City Attorney Bribery Guilty Pleas and Plea Agreements UnsealedRead the Press Release
LOS ANGELES – Two former top city officials in Commerce and Baldwin Park have pleaded guilty to participating in a scheme involving bribes in exchange for a corrupt Baldwin Park politician’s votes and influence over his city’s cannabis permitting process, the Justice Department announced today.
Edgar Pascual Cisneros, 42, of Montebello, who served as Commerce’s city manager from November 2017 to December 2023, pleaded guilty on November 6, 2023, to federal bribery. Robert Manuel Nacionales Tafoya, 62, of Redondo Beach, who served as Baldwin Park’s city attorney from December 2013 to October 2022, pleaded guilty on December 5, 2023, to federal bribery and tax evasion charges.
Federal prosecutors today unsealed the criminal charges and plea agreements, in which both Cisneros and Tafoya agreed to cooperate in ongoing public corruption investigations.
According to the plea agreements, shortly after Baldwin Park began issuing marijuana permits in June 2017, then-Baldwin Park City Councilmember Ricardo Pacheco solicited bribes from companies seeking those permits. Cisneros helped a company obtain a marijuana permit and related approvals through approximately $45,000 in bribes and that the company promised to pay Cisneros at least $235,000 to help secure the permit. Tafoya facilitated a bribery scheme involving former Compton City Councilmember Isaac Galvan, in which Galvan sought to obtain a marijuana permit for his consulting client also through bribes to Pacheco. Tafoya further admitted to evading payment of approximately $650,000 in federal tax liability.
Pacheco pleaded guilty in June 2020 to a federal bribery charge unrelated to the marijuana-permit scheme. Pacheco further admitted to orchestrating bribery schemes involving Tafoya and Gabriel Chavez, a former San Bernardino County planning commissioner who pleaded guilty to a federal bribery charge in November 2022. Pacheco’s sentencing hearing is scheduled for February 2025. Chavez’s sentencing hearing is scheduled for April 2025.
In September 2023, Galvan and his consulting client, Yichang Bai, were arrested on a federal grand jury indictment alleging they paid $70,000 in bribes to Pacheco in exchange for his vote and support for marijuana permits for Bai’s company, W&F International Corp. Both men have pleaded not guilty. Their trial is scheduled for June 10, 2025.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The FBI and IRS Criminal Investigation are investigating these matters.
Assistant United States Attorneys Thomas F. Rybarczyk, Michael J. Morse, and Lindsey Greer Dotson of the Public Corruption and Civil Rights Section are prosecuting these cases.
Any member of the public who has information related to this or any other public corruption matter is encouraged to send information to the FBI’s tip line at tips.fbi.gov or to contact the FBI’s Los Angeles Field Office at (310) 477-6565.
San Fernando Valley Man Agrees to Plead Guilty to Engineering $5.9 Million Ponzi Scheme Targeting Elderly Church ParishionersRead the Press Release
LOS ANGELES – A San Fernando Valley man has agreed to plead guilty to a federal felony charge for swindling clients – many of them elderly church parishioners – in a long-running Ponzi scheme that took in more than $5.9 million in victim investor money, the Justice Department announced today.
Sylvein William Maximilian D’Habsburg XVII, 48, a.k.a. “Sylvein Scalleone,” of West Hills, has agreed to plead guilty to one count of wire fraud.
D’Habsburg is expected to enter his guilty plea in the coming weeks in United States District Court in downtown Los Angeles.
According to his plea agreement filed today, from at least January 2018 to June 2023, D’Habsburg hired recruiters to identify potential investors for his two companies, Wild Rabbit Technologies LLC and BAI Intelligence LLC, targeting the local Filipino community, including elderly church parishioners.
At investment presentations, D’Habsburg claimed that he had an artificial intelligence (AI) technology that could predict the future and detect a COVID-19 infection based solely on a video recording, among other things. D’Habsburg also falsely claimed to investors that he had received approximately $500 million in investments for his companies from retired pro athletes and other noteworthy people, such as Kobe Bryant, Michael Jordan, and Steve Wozniak, and that he would use the investment funds to hire personnel and obtain patents.
But D’Habsburg did not use the victims’ money to hire personnel or obtain patents. Instead, he used his victim investors’ money to purchase luxury cars, such as a 1933 Rolls Royce Phantom II Continental Sedanca de Ville by Barker, and rare antiques, such as a pair of Italian carved Giltwood Thrones from the 1800s.
As a result of his fraudulent scheme, D’Habsburg caused his victim investors a total of approximately $5.9 million in losses.
Once D’Habsburg enters his guilty plea, he will face a statutory maximum sentence of 20 years in federal prison.
The FBI is investigating this matter.
Assistant United States Attorneys Jason C. Pang of the General Crimes Section and Alexander Su of the Asset Forfeiture and Recovery Section are prosecuting this case.
Ontario Man Arrested on Complaint Alleging He Exported Shipments of Firearms, Ammunition and Other Military Items to North KoreaRead the Press Release
LOS ANGELES – A San Bernardino County man was arrested today on a federal criminal complaint alleging that he exported to North Korea shipments of firearms, ammunition and other military items that were concealed inside shipping containers bound from Long Beach.
Shenghua Wen, 41, of Ontario, is charged with conspiracy to violate the International Emergency Economic Powers Act, a felony that carries a statutory maximum sentence of 20 years in federal prison.
Wen – a Chinese national illegally residing in the United States – was arrested this morning and is expected to make his initial appearance this afternoon in United States District Court in downtown Los Angeles. His arraignment is expected to occur in the coming weeks.
“It is essential that we protect our country from hostile foreign states that have adverse interests to our nation,” said United States Attorney Martin Estrada. “We have arrested a defendant who allegedly acted at the direction of the North Korean government by conspiring to illegally ship firearms, ammunition, and other military equipment to North Korea. I am grateful to our law enforcement partners for stopping this threat and their tireless commitment to the security of our nation.”
“The significance of this arrest and discovery of this scheme cannot be overstated,” said FBI Los Angeles Assistant Director in Charge Akil Davis. “Not only did the investigative team prevent additional restricted items going to the North Korean regime, but they gathered valuable intelligence for the United States and our allies. I’m proud of the hard work that went into building the case against Wen by dedicated agents and our partners who specialize in cases that involve illegal exports to foreign adversaries who evade sanctions and utilize weapons and technology for nefarious purposes.”
According to an affidavit filed on November 26 with the complaint, Wen obtained firearms, ammunition, and export-controlled technology with the intention of shipping them to North Korea – a violation of federal law and United States sanctions against that nation. Wen and his co-conspirators allegedly exported shipments of firearms and ammunition to North Korea by concealing the items inside shipping containers that were shipped from Long Beach through Hong Kong to North Korea.
On August 14, law enforcement seized at Wen’s home two devices that he intended to send to North Korea for military use: a chemical threat identification device and a hand-held broadband receiver that detects eavesdropping devices. On September 6, law enforcement seized approximately 50,000 rounds of 9mm ammunition that Wen allegedly obtained to send to North Korea.
A review of Wen’s iPhone revealed to law enforcement that in December 2023, Wen smuggled items from Long Beach to Hong Kong with their destination being North Korea. Messages retrieved from Wen’s cellphones revealed discussions he had earlier this year with co-conspirators about shipping military-grade equipment to North Korea. Some of these messages include photographs that Wen sent of items controlled for export under the International Traffic in Arms Regulations. From January 2024 to April 2024, Wen sent emails and text messages to a U.S.-based broker about obtaining a civilian plane engine. There also were several text messages on Wen’s iPhone concerning price negotiation for the plane and its engine.
Wen is a Chinese national who is illegally in the United States after overstaying his student visa and is therefore prohibited from possessing any firearms or ammunition. Wen lacks the required licenses from the U.S. government to export ammunition, firearms, and the other devices that law enforcement seized at his home to North Korea.
“The results of today’s arrest and search warrants are a testament to HSI and our partner agencies commitment to national security and protecting our sensitive technology” said Homeland Security Investigations (HSI) San Diego Special Agent in Charge Shawn Gibson. “It is a federal crime to illegally obtain and export certain US technologies by foreign countries and those who seek to circumvent the law will be thoroughly investigated.”
“Mr. Wen’s arrest is a significant advancement in our collective efforts towards protecting our national security, safeguarding sensitive U.S. technologies and other export-controlled items, and ensuring accountability for the alleged bad actions,” said Bryan D. Denny, Special Agent in Charge for the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Western Field Office.
“The defendant’s alleged attempts to illicitly export firearms and military technology from the United States at the behest of the Democratic People’s Republic of Korea constitute an alarming violation of sanctions and export control laws,” said Special Agent in Charge Gregory Dunlap of the Office of Export Enforcement, Los Angeles Field Office. “OEE is committed to working with our federal partners to identify and disrupt illegal export schemes that undermine regional stability and our national security interests at home and abroad.”
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The FBI; Homeland Security Investigations; DCIS; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Department of Commerce Bureau of Industry and Security are investigating this matter.
Assistant United States Attorney Sarah E. Gerdes of the Terrorism and Export Crimes Section and Trial Attorney Ahmed Almudallal of the U.S. Department of Justice National Security Division's Counterintelligence and Export Control Section are prosecuting this case.
California Man Arrested for Allegedly Exporting Shipments of Firearms, Ammunition and Other Military Items to North KoreaRead the Press Release
Shenghua Wen, 41, of Ontario, California, was arrested today on a criminal complaint alleging that he exported shipments of firearms, ammunition and other military items to North Korea that were concealed inside shipping containers bound from Long Beach.
Wen, a Chinese national illegally residing in the United States, was arrested this morning and is expected to make his initial appearance this afternoon in the Central District of California.
According to an affidavit filed on Nov. 26 with the complaint, Wen obtained firearms, ammunition, and export-controlled technology with the intention of shipping them to North Korea — a violation of federal law and United States sanctions against that nation. Wen and his co-conspirators allegedly exported shipments of firearms and ammunition to North Korea by concealing the items inside shipping containers that were shipped from Long Beach through Hong Kong to North Korea.
On Aug. 14, law enforcement seized at Wen’s home two devices that he intended to send to North Korea for military use: a chemical threat identification device and a hand-held broadband receiver that detects eavesdropping devices. On Sept. 6, law enforcement seized approximately 50,000 rounds of 9mm ammunition that Wen allegedly obtained to send to North Korea.
A review of Wen’s iPhone revealed to law enforcement that in December 2023, Wen smuggled items from Long Beach to Hong Kong with their destination being North Korea. Messages retrieved from Wen’s cellphones revealed discussions he had earlier this year with co-conspirators about shipping military-grade equipment to North Korea. Some of these messages include photographs that Wen sent of items controlled for export under the International Traffic in Arms Regulations. From January to April, Wen sent emails and text messages to a U.S.-based broker about obtaining a civilian plane engine. There also were several text messages on Wen’s iPhone concerning price negotiation for the plane and its engine.
Wen is a Chinese national who is illegally in the United States after overstaying his student visa and is therefore prohibited from possessing any firearms or ammunition. Wen lacks the required licenses from the U.S. government to export ammunition, firearms, and the other devices that law enforcement seized at his home to North Korea.
Wen is charged with conspiracy to violate the International Emergency Economic Powers Act, which carries a statutory maximum penalty of 20 years in federal prison.
The FBI, Homeland Security Investigations, Defense Criminal Investigative Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; and Department of Commerce Bureau of Industry and Security are investigating the case.
Assistant U.S. Attorney Sarah E. Gerdes for the Central District of California and Trial Attorney Ahmed Almudallal of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Hawaiian Gardens Man Who Sold Fentanyl that Caused 18-Year-Old Victim’s Overdose Death Sentenced to 25 Years in Federal PrisonRead the Press Release
LOS ANGELES – A Hawaiian Gardens man was sentenced today to 300 months in federal prison for selling purported black tar heroin that, in fact, was fentanyl to an 18-year-old victim who later ingested it and suffered a fatal overdose from the powerful synthetic opioid.
Gregory Hevener, 47, was sentenced by United States District Judge Mark C. Scarsi, who also ordered him to pay $45,100 in restitution. Hevener has been in federal custody since February 2022.
At the conclusion of a seven-day trial, a jury on June 24 found Hevener guilty of one count of distribution of fentanyl resulting in death and one count of possession with intent to distribute heroin.
“While no amount of prison time will restore what was lost to the victim’s family, we hope today’s sentence will bring some closure to the victim’s loved ones and protect our community from further harm,” said United States Attorney Martin Estrada. “Vindicating victims is core to my office’s work. We will continue to lead the nation in holding accountable those who traffic in powerful synthetic drugs, especially when they cause death or bodily harm.”
In November 2020, the victim responded to an ad placed by Hevener on the website OfferUp, an online marketplace. The listing advertised the sale of “BLACK TAR ROOFING MATERIALS!!” – coded language for black tar heroin – in Long Beach. OfferUp records revealed Hevener operated or had access to several accounts on the platform, in which he advertised and distributed drugs, including heroin and fentanyl.
Hevener and the victim met in Hawaiian Gardens and the victim purchased what he believed to be heroin from Hevener. Instead, Hevener sold what was a black, tar-like substance containing fentanyl and tramadol, a pain-relief medication. The victim then drove home and took the drugs, suffering a fatal overdose.
In July and October 2021, law enforcement searched trash cans outside of Hevener’s residence in Hawaiian Gardens and seized discarded plastic bags and burnt pieces of tin foil containing fentanyl and tramadol residue.
Another search in December 2021 resulted in the seizure of a plastic bag containing approximately 245 grams of black tar heroin, a digital scale, burnt tin foil, and a plastic bag containing approximately 1.2 grams of fentanyl.
The Drug Enforcement Administration and the El Monte Police Department investigated this case.
Assistant United States Attorneys Kellye Ng and Maria Jhai of the Violent and Organized Crime Section and Kyle W. Kahan of the International Narcotics, Money Laundering, and Racketeering Section prosecuted this case.
Northridge Man Indicted for Allegedly Checking Suitcases at LAX Containing Meth-Caked Clothes, Including a Cow Pajama OnesieRead the Press Release
LOS ANGELES – A San Fernando Valley man was indicted today for allegedly possessing two suitcases containing more than a dozen clothing items – including a cow pajama onesie – caked in methamphetamine while preparing to board a flight from Los Angeles International Airport (LAX) to Australia.
Raj Matharu, 31, of Northridge, is charged with one count of possession with intent to distribute methamphetamine.
Matharu is scheduled to be arraigned on December 2 in United States District Court in downtown Los Angeles. He is free on $10,000 bond.
“Drug dealers are continually inventing creative ways of smuggling dangerous narcotics in pursuit of illicit profit – as alleged in the facts of this case,” said United States Attorney Martin Estrada. “In the process, they are poisoning communities throughout the world. Law enforcement is committed to fighting drug trafficking, knowing that every seizure saves lives.”
According to court documents, on November 6, Matharu attempted to travel from Los Angeles to Sydney. At the ticket counter, Matharu checked two luggage items, one pink suitcase and one gray suitcase.
After Matharu checked the suitcases, screening officers X-rayed them. The X-ray revealed irregularities and officers pulled the suitcases for a secondary inspection. Upon opening the suitcases, law enforcement found the suitcases contained more than a dozen white or light-colored clothing items that were dried stiff and covered in a white residue.
Law enforcement field-tested a sample of the residue, which yielded positive results for methamphetamine. The total weight of the clothing items with the methamphetamine caked into them was approximately 32.4 kilograms (71.5 pounds). Law enforcement later extracted more than one kilogram of methamphetamine residue from the clothing in Matharu’s suitcases.
Officers intercepted Matharu on the jet bridge to his flight to Australia, and he was later arrested.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
If convicted, Matharu would face a mandatory minimum sentence of 10 years in federal prison and a statutory maximum sentence of life imprisonment.
Homeland Security Investigations is investigating this matter. United States Customs and Border Protection provided assistance.
Assistant United States Attorney Diane Roldán of the General Crimes Section is prosecuting this case.
CEO of Non-Profit that Provided Mentoring Services to Public School Students Pleads Guilty to Fraudulently Obtaining COVID BenefitsRead the Press Release
LOS ANGELES – A South Bay man who provided lifestyle and personal development coaching to students in public schools through a non-profit he founded pleaded guilty today to fraudulently applying for millions of dollars in COVID-19 jobless benefits, including by using stolen identities.
Reginald Foster Jr., 38, of the Westchester neighborhood of Los Angeles, pleaded guilty to one count of conspiracy to commit mail fraud and bank fraud, and one count of use of unauthorized access devices.
Foster admitted in court today that, from June 2020 to October 2020, he conspired with others to fraudulently obtain unemployment insurance benefits under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), a law Congress passed in March 2020 to help individuals and businesses deal with the economic impact of the COVID-19 pandemic.
Foster exploited the Pandemic Unemployment Assistance (PUA) provision of the CARES Act, which is designed to expand access to unemployment benefits to self-employed workers, independent contractors, and others who would not otherwise have been eligible because of the pandemic. The California Employment Development Department (EDD) administers the state’s unemployment insurance program, which included the PUA provision.
Foster admitted that he and his co-conspirators filed fraudulent applications for benefits in the names of people who had not authorized him to do so, using the identity-theft victims’ personal identifying information without their permission. Foster included false information on the applications to ensure that EDD would approve the applications and send the debit cards through which the benefits were dispersed to a mailing address he used. In total, Foster and his co-conspirators submitted 118 fraudulent applications as part of the scheme.
Foster used the debit cards to make transfers to his non-profit, Champs Up! LLC, which Foster has said provides guidance programs to middle school students in Los Angeles and Long Beach. Foster also used the cards to make multiple $1,000 withdrawals at ATMs. He then transferred the cards to co-conspirators, who used them to make further ATM withdrawals. Foster and his co-conspirators were able to withdraw almost $1.5 million of the benefits. EDD and Bank of America froze the remaining benefits as soon as the scheme was uncovered, preventing further losses of more than $4 million.
United States District Judge Mark C. Scarsi scheduled a March 24, 2025, sentencing hearing, at which time Foster will face a statutory maximum sentence of 30 years in federal prison for the conspiracy count and up to 10 years in federal prison for the unauthorized access devices count.
Foster remains free on $50,000 bond.
Co-defendants Shelece Counts, 31, of the Westlake neighborhood of Los Angeles; and Isaiah Herbert Lawrence, 31, of Houston, Texas, have pleaded not guilty to criminal charges in this case and are scheduled to go to trial on January 21, 2025.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The United States Department of Labor Office of Inspector General, the California Employment Development Department, and Homeland Security Investigations investigated this matter. Substantial assistance was provided by the Department of Homeland Security Office of Inspector General; the United States Secret Service; the FBI; U.S. Customs and Border Protection Special Response Team; and the Los Angeles Unified School District Office of Inspector General.
Assistant United States Attorney Ranee A. Katzenstein of the Criminal Appeals Section is prosecuting this case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. More information on the Justice Department’s response to the pandemic may be found here.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it to the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at (866) 720-5721 or via the NCDF online complaint form.
San Fernando Valley Man Sentenced to More Than 1 Year in Prison for Sending Emails in Which He Threatened to Bomb FBI’s L.A. OfficeRead the Press Release
LOS ANGELES – A San Fernando Valley man was sentenced today to 15 months in federal prison for sending threatening emails to the FBI, including ones in which he threatened to bomb the FBI’s Los Angeles Field Office and referenced the notorious “Unabomber.”
Mark William Anten, 53, of Sun Valley, was sentenced by United States District Judge Wesley L. Hsu.
At the conclusion of a three-day trial, a jury on June 5 found Anten guilty of two counts of threats by interstate communication.
“Federal agents deserve our appreciation for risking their lives to enforce the law and protect our community,” said United States Attorney Martin Estrada. “Threats against law enforcement are unacceptable and we will continue to stand with the FBI and the rest of our law enforcement partners against those who threaten them.”
“Mr. Anten double-downed on his intimidation and credible death threats to FBI employees at their place of employment,” said Akil Davis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “There are civil, productive ways to disagree with the government if so inclined, but threats of violence is not one of them and – as evidenced by today's sentencing – will only lead to prison.”
From July 2023 to December 2023, Anten sent a series of increasingly threatening communications to the FBI, culminating in two threats to bomb the FBI field office in Westwood.
The emails included repeated references to Theodore John Kaczynski, a.k.a. “The Unabomber,” whose 20-year bombing campaign killed three people and injured nearly two dozen more. Kaczynski was convicted of federal crimes, spent the bulk of his prison sentence in the Supermax federal prison in Colorado and died in a different federal prison last year.
On November 20, 2023, two FBI task force officers interviewed Anten in front of his residence. During the interview, Anten admitted to sending the previous communications and the officers admonished him to stop contacting agents. Despite the admonition, Anten’s conduct escalated.
On December 5, 2023, Anten sent to FBI agents an email in which he wrote, “I AM THE UNABOMBER” and “I WILL UNABOMB THE LOS ANGELES FBI HQ.”
The next day, Anten wrote to FBI agents, “I can go on a mass murder spree. In fact it would be very explainable by your actions.” He concluded the email with, “[y]ou ain’t getting away with this one,” and signed the email, “SuperMax or Death.”
Anten also sent FBI agents an email, which attached a photograph depicting the results of an internet search for “how to make a dirty bomb.”
Later that day, Anten visited the FBI’s Los Angeles Field Office and later emailed agents that he visited their building and would continue to do so. Surveillance footage confirmed Anten’s presence there.
The FBI investigated this matter.
Assistant United States Attorneys Clifford D. Mpare of the General Crimes Section and Kedar S. Bhatia of the Terrorism and Export Crimes Section prosecuted this case.
Federal and Local Government Officials Announce Memorandum of Understanding to Teach LAUSD Students about Cyber SafetyRead the Press Release
LOS ANGELES – The United States Attorney’s Office is announcing today that it has joined a Memorandum of Understanding (MOU) with the Los Angeles Unified School District (LAUSD) and Homeland Security Investigations (HSI) to provide cyber security training to LAUSD students, staff, and parents.
LAUSD is the second-largest school district in the nation, serving more than 600,000 students across more than 1,000 schools, and is the largest public school system in California. To combat child sexual exploitation, HSI and the USAO are joining forces to offer trainings to the LAUSD community about how to stay safe online. The program will focus on preteens and teenagers avoiding sexual dangers online, but can be tailored to younger children, staff, or parents. Dr. Alfonzo Webb, senior director at LAUSD, is the school district’s representative for the MOU.
“Nothing is more important than protecting and uplifting our children,” said United States Attorney Martin Estrada. “Our office often works with school and youth groups to discuss our work, introduce students to the justice system, and inspire kids to achieve success. We are proud to team up with LAUSD and HSI to expand on that work so that we can educate more young people about the dangers posed by the internet and social media and encourage students to pursue higher education – after all, knowledge is power.”
“HSI has been at the forefront of investigating online crimes against children,” said HSI Los Angeles Special Agent in Charge Eddy Wang. “This partnership with LAUSD and DOJ is taking a proactive approach to educating students and trusted adults about the dangers our children face online.”
“This strategic partnership with the U.S. Attorney’s Office and Homeland Security Investigations developed out of the need to ensure that our students, staff, and parents are educated on the latest and most effective online safety practices,” said LAUSD Senior Director of Climate Culture Alfonzo Webb. “By working together, we will provide age-appropriate presentations, resources, and guidance to help foster safer online environments for students.”
"Our students need to be aware of online dangers in order to be protected and empowered to make informed decisions and maintain their safety while navigating the digital world," said LAUSD Superintendent Alberto M. Carvalho. "This partnership will enhance our Every School Safe Module on Cyber Safety to promote a secure learning environment."
HSI rolled out its revamped Project iGuardian earlier this year. Project iGuardian is the official, in person educational program of Know2Protect, a national public awareness campaign sponsored by the U.S. Department of Homeland Security to raise awareness about the rapidly escalating threat of online child sexual exploitation and abuse.
Know2Protect, which launched in April 2024, leverages the investigative experience of HSI agents to “share information about the dangers of online environments, how to stay safe online, and how to report abuse and suspicious activity.” Project iGuardian agents and staff “help kids stay safe online by providing safety tips, a number to call, and a website with links to more information and resources,” according to the Know2Protect website.
HSI Los Angeles special agents, primarily from the Child Exploitation Investigations Group led by Supervisory Special Agent Jaclyn Jacobson, will offer the iGuardian trainings. HSI Los Angeles Assistant Special Agent in Charge Eugene Villanueva worked at HSI headquarters to revamp Project iGuardian and now shepherds the project in Los Angeles.
The USAO in Los Angeles is an active and avid participant in the Department of Justice’s Project Safe Childhood (PSC), which combats child sexual exploitation through high impact prosecutions. Passionate about community outreach, former PSC Coordinators Catharine A. Richmond and Kellye M. Ng, both of the Violent and Organized Crime Section, spearheaded the MOU and will be the USAO’s primary facilitators.
This initiative was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Justice Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Texas-Based Oil-and-Gas Company Phillips 66 Indicted for Alleged Violations of Clean Water Act Stemming from Wastewater DischargeRead the Press Release
LOS ANGELES – A federal grand jury has returned a six-count indictment charging the Houston-based energy business Phillips 66 Company with violating the Clean Water Act by illegally discharging hundreds of thousands of gallons of industrial wastewater from its Carson oil refinery into the Los Angeles County sewer system then failing to report the violations to authorities, the Justice Department announced today.
Phillips is charged with two counts of negligently violating the Clean Water Act and four counts of knowingly violating the Clean Water Act.
The company is expected to be arraigned in the coming weeks in United States District Court in downtown Los Angeles.
“Protecting our environment is key to protecting our community,” said United States Attorney Martin Estrada. “Just like the rest of us, corporations have a duty to follow the law, so when companies contaminate, they must be held accountable. My office will continue to be vigilant in safeguarding our natural resources for all to enjoy.”
“Illegally discharging pollutants into the sewer system violates the Clean Water Act,” said Special Agent in Charge Kim Bahney of the U.S. Environmental Protection Agency’s Criminal Investigation Division. “The charges today illustrate EPA’s commitment to protecting the environment and ensuring accountability for those that neglect or fail to abide by our nation’s environmental laws.”
According to the indictment that a federal grand jury returned on Wednesday, for approximately two-and-a-half hours on the early morning of November 24, 2020, Phillips’ Carson refinery discharged to the Los Angeles County Sanitation Districts (LACSD) – which manages the county’s sewer system – industrial wastewater containing a concentration of oil and grease more than 300 times the concentration allowed in its permit. The company’s Carson facility failed to inform LACSD of its non-compliant industrial wastewater discharge.
During this approximately two-and-a-half-hour period, LACSD roughly estimated that the Phillips 66 facility in Carson discharged approximately 310,000 gallons of non-compliant industrial wastewater, which contained approximately 64,000 lbs. of oil and grease, to LACSD’s sewer system. The energy company’s industrial wastewater pretreatment system process controls and practices were inadequate to prevent or quickly address the non-compliant discharge.
In December 2020, LACSD issued Phillips multiple notice of violations for discharging the industrial wastewater containing an excessive concentration of oil and grease, and failing to notify LACSD about the discharge, which adversely affected an LACSD facility. The following month, a Phillips manager wrote to LACSD, acknowledged its non-compliant industrial wastewater discharge, and noted that the company would “retrain operations personnel” on such situations and the procedure to notify LACSD when it happens.
During the evening hours of February 8, 2021, Phillips’ Carson refinery – for approximately five-and-a-half hours – discharged approximately 480,000 gallons of non-compliant industrial wastewater, which contained at least 33,700 pounds of oil and grease, to LACSD’s sewer system.
In March 2021, LACSD – the month following the incident – issued notices of violations to Phillips for discharging industrial wastewater which adversely affected an LACSD facility and for its failure to notify the LACSD about said wastewater discharge. Again, a Phillips manager at its Carson facility wrote to LACSD and acknowledged the non-compliant industrial wastewater discharge and the company’s failure to notify authorities of the discharge.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
If convicted of all charges, Phillips 66 would face a statutory maximum sentence of five years’ probation on each count and up to $2.4 million in fines.
The United States Environmental Protection Agency is investigating this matter.
Assistant United States Attorneys Juan M. Rodriguez of the Public Corruption and Civil Rights Section and Dennis Mitchell of the Environmental Crimes and Consumer Protection Section are prosecuting this case.
Santa Clarita Man Who Led Organization that Trafficked Drugs to Darknet Customers Nationwide Sentenced to 8 Years in PrisonRead the Press Release
LOS ANGELES – A Santa Clarita man who led the Los Angeles-based “Drugpharmacist” drug trafficking organization that distributed heroin, methamphetamine, and cocaine via darknet marketplaces was sentenced today to 96 months in federal prison.
Jerrell Eugene Anderson, 34, was sentenced by United States District Judge George H. Wu.
Anderson pleaded guilty on June 10 to one count of conspiracy to distribute methamphetamine, one count of possession with intent to distribute heroin, and one count of possession of a firearm in furtherance of a drug trafficking crime.
From at least July 2018 to March 2019, Anderson conspired with others to distribute methamphetamine, heroin, and cocaine that they sold on darknet marketplaces. Specifically, Anderson advertised and sold drugs to customers on the darknet marketplaces Dream and Wall Street Market, using monikers such as “Drugpharmacist” and “rickandmortyshop.”
Anderson and his accomplices packaged drugs in stuffed animals for shipment to their darknet customers. Anderson and his co-conspirators then delivered from San Fernando Valley stash houses packages containing drugs to post offices throughout the Los Angeles area for shipment to their customers nationwide. For example, in August 2018, Anderson and a co-conspirator knowingly distributed heroin to a victim in Knoxville, Tennessee whose death resulted from using the heroin.
Also, in March 2019, in a Glendale apartment, Anderson and other co-conspirators possessed methamphetamine, heroin, and cocaine for distribution to darknet customers. At that time, Anderson knowingly possessed a semiautomatic pistol in furtherance of the drug trafficking conspiracy.
The other defendants in this case – Christopher Canion Von Holton, 37, of Woodland Hills; Kenneth Lashawn Hadley, 37, of Las Vegas; Adan Sepulveda, 31, of Palmdale; and Jackie Walter Burns, 26, of Lancaster, each pleaded guilty to one count of conspiracy to distribute controlled substances and have been sentenced.
The United States Postal Inspection Service, the FBI, the Los Angeles Police Department, the Fairfax County (Virginia) Police Department, the Knoxville (Tennessee) Police Department, and the Cleburne County (Arkansas) Sheriff’s Office investigated this matter.
Assistant United States Attorneys Khaldoun Shobaki and Lauren Restrepo of the Cyber and Intellectual Property Crimes Section prosecuted this case.
Santa Clarita Man Charged with Distributing Opioid More Powerful than Fentanyl and Causing Victim’s Overdose DeathRead the Press Release
LOS ANGELES – A Santa Clarita man has been arraigned on an indictment alleging he distributed protonitazene – a novel synthetic opioid that is up to three times more powerful than fentanyl – which resulted in a victim’s fatal overdose this spring, the Justice Department announced today.
Benjamin Anthony Collins, 21, is charged with one count of distribution of protonitazene resulting in death.
This is believed to be the nation’s first death-resulting criminal case involving this narcotic.
Collins was arrested on November 18, and pleaded not guilty to the charge at his arraignment on Wednesday. A trial date of January 14, 2025, was scheduled. A federal magistrate judge ordered Collins jailed without bond.
According to the indictment, during the early morning hours of April 19, 2024, Collins knowingly and intentionally distributed protonitazene, which resulted in the death of the victim. In recent years, protonitazene has been sold over the internet and is believed to be several times more powerful than fentanyl, which itself is 50 times stronger than heroin.
Collins allegedly sold the 22-year-old victim pills containing protonitazene and arranged to sell the victim a bulk supply of these pills in the future. The victim, a resident of Stevenson Ranch, consumed the pills soon afterward in the front seat of his car and quickly died. His mother later found him dead in the front seat parked outside her home and called 911.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
If convicted, Collins would face a mandatory minimum sentence of 20 years in federal prison and a statutory maximum sentence of life imprisonment.
The Drug Enforcement Administration and Los Angeles County Sheriff’s Department are investigating this matter.
Assistant United States Attorney Lisa J. Lindhorst of the General Crimes Section is prosecuting this case.
Líder de alto rango de un cártel mexicano arrestado por cargos de tráfico internacional de drogas y lavado de dinero, después de fingir su propia muerte para vivir en California bajo una identidad falsaRead the Press Release
Un tribunal federal del Distrito Central de California hizo pública ayer una denuncia penal imputándole delitos de tráfico internacional de drogas y lavado de dinero a Cristian Fernando Gutiérrez Ochoa, miembro de alto rango del Cártel Jalisco Nueva Generación (CJNG) y yerno del líder del CJNG, Nemesio Oseguera Cervantes, también conocido como El Mencho. Gutiérrez Ochoa fue arrestado en Riverside, California, el 19 de noviembre.
“El Cártel Jalisco, una de las organizaciones de narcotráfico más violentas y prolíficas del mundo, es más débil hoy en día debido a los tenaces esfuerzos de las fuerzas del orden por rastrear y detener a un líder del cártel que supuestamente fingió su propia muerte y asumió una identidad falsa para eludir la justicia y vivir una vida de lujo en California,” dijo la vicefiscal general Lisa Monaco. “Como alegan estos cargos, Gutiérrez Ochoa dirigió el tráfico de narcóticos letales, causando una destrucción incalculable en nuestras comunidades. Para aquellos que buscan dañar a los estadounidenses y sacar provecho de su dolor, que sirva este arresto de recordatorio: los encontraremos y los llevaremos ante la justicia.”
“Durante la última década, Cristian Gutiérrez Ochoa, un estrecho colaborador del máximo líder del CJNG, presuntamente dirigió la importación de toneladas de metanfetamina y cocaína a los Estados Unidos y participó en actos violentos para apoyar las actividades delictivas del cártel,” dijo la principal vicefiscal general adjunta Nicole M. Argentieri, jefa de la División Penal del Departamento de Justicia. “La División Penal está comprometida a desmantelar las organizaciones mexicanas de narcotráfico. El arresto del martes envía un mensaje poderoso a los líderes del cártel: trabajaremos incansablemente con nuestros socios, autoridades de aplicación de la ley nacionales e internacionales, para hacerlos rendir cuentas.”
“Derrotar a los dos cárteles responsables de la mortal crisis de drogas en los Estados Unidos es la principal prioridad operativa de la Administración para el Control de Drogas (DEA) y, con el arresto de Cristian Fernando Gutiérrez Ochoa, estamos mucho más cerca,” dijo la administradora de la DEA Anne Milgram. “Alegamos que Gutiérrez Ochoa, un miembro de alto rango del CJNG y yerno de El Mencho, conspiró para importar miles de kilogramos de cocaína y metanfetamina a los Estados Unidos en nombre del Cártel Jalisco. El CJNG es responsable de una violencia sin precedentes en México y contribuye a alimentar la mortal crisis de drogas en los Estados Unidos. La DEA está implacablemente comprometida a derrotar al Cártel Jalisco, y agotaremos todas las herramientas del sistema de justicia para contraatacar, salvar vidas estadounidenses y llevar a este cártel ante la justicia.”
Según documentos del tribunal, se alega que Gutiérrez Ochoa, de 37 años, comenzó a trabajar para el CJNG, uno de los cárteles de drogas más violentos de México, alrededor de 2014, y coordinó personalmente el transporte y la distribución de aproximadamente 40.000 kilogramos de metanfetamina y aproximadamente 2000 kilogramos de cocaína en México, todos destinados a los Estados Unidos.
Gutiérrez Ochoa presuntamente promovió las actividades de narcotráfico y lavado de dinero del CJNG mediante la violencia. Alrededor de noviembre de 2021, se alega que Gutiérrez Ochoa secuestró a dos miembros de la Marina de México en un intento por lograr la liberación de la esposa de El Mencho, que había sido arrestada por las autoridades mexicanas. Después de ser buscado por las autoridades mexicanas, Gutiérrez-Ochoa supuestamente huyó a los Estados Unidos, asumió una identidad ficticia y vivió en una residencia de lujo en Riverside, California, comprada por los operadores de lavado de dinero del CJNG con ganancias del narcotráfico.
Según documentos del tribunal, El Mencho puede haber ayudado a Gutiérrez Ochoa en su plan para fingir su propia muerte, diciéndoles a sus asociados que asesinó a Gutiérrez Ochoa por mentir. Esto ayudó a Gutiérrez Ochoa a colarse en los Estados Unidos para estar con la hija de El Mencho. El Departamento de Justicia presentó una formulación complementaria de cargos contra El Mencho en abril de 2022, acusándolo de liderar una empresa criminal para fabricar y distribuir fentanilo para su importación a los Estados Unidos. El Departamento de Estado de los EE. UU. ofrece una recompensa de hasta $10 millones de dólares por información que conduzca a su arresto y / o condena. El Mencho sigue prófugo.
Gutiérrez Ochoa está acusado de asociación delictuosa para distribuir cinco kilogramos o más de cocaína y 500 gramos o más de metanfetamina, teniendo conocimiento, intención y motivos razonables para creer que esas sustancias controladas serían importadas ilegalmente a los Estados Unidos. Gutiérrez Ochoa también está acusado de asociación delictuosa para blanquear las ganancias del narcotráfico del CJNG. Si es declarado culpable, enfrentaría una pena mínima obligatoria de 10 años de prisión y una pena máxima de cadena perpetua por el cargo de asociación delictuosa para distribuir drogas, y una pena máxima de 20 años de prisión por el cargo de asociación delictuosa para lavar dinero. Un tribunal de distrito federal determinará cualquier sentencia después de considerar las Pautas de Sentencia de los EE. UU. y otros factores legales.
La División de Los Ángeles de la DEA está investigando el caso.
Los fiscales litigantes Lernik Begian y Doug Meisel de la Sección de Narcóticos y Drogas Peligrosas de la División Penal están a cargo del caso. La Fiscalía de los Estados Unidos para el Distrito Central de California brindó valiosa asistencia.
Este caso es parte de una operación del Programa de las Fuerzas de Tarea Antidrogas contra el Crimen Organizado (OCDETF, por sus siglas en inglés). La OCDETF identifica, desbarata y desmantela las organizaciones de narcotráfico de más alto nivel y otras redes criminales que amenazan a los Estados Unidos utilizando un enfoque multiinstitucional liderado por fiscales e informado por datos de inteligencia y que aprovecha las fortalezas de las agencias de aplicación de la ley federales, estatales y locales. Puede encontrar información adicional sobre el Programa OCDETF en www.justice.gov/OCDETF.
Una denuncia es simplemente una acusación. Todos los acusados son considerados inocentes hasta que se demuestre su culpabilidad más allá de toda duda razonable en un tribunal de justicia.
High-Ranking Mexican Cartel Leader Arrested on Charges of International Drug Trafficking and Money Laundering After Faking Own Death to Live in California Under Assumed IdentityRead the Press Release
A federal court in the Central District of California unsealed a criminal complaint yesterday charging Cristian Fernando Gutierrez-Ochoa — a high-ranking member of the Cártel de Jalisco Nueva Generación (CJNG) and the son-in-law of the CJNG’s leader, Nemesio Oseguera Cervantes, also known as El Mencho — with international drug trafficking and money laundering offenses. Gutierrez-Ochoa was arrested in Riverside, California, on Nov. 19.
“The Jalisco Cartel — one of the world’s most violent and prolific drug trafficking organizations — is weaker today because of the tenacious efforts of law enforcement to track down and arrest a cartel leader who allegedly faked his own death and assumed a false identity to evade justice and live a life of luxury in California,” said Deputy Attorney General Lisa Monaco. “As these charges allege, Gutierrez-Ochoa directed the trafficking of lethal narcotics, causing untold destruction in our communities. To those seeking to harm Americans and to profit from their pain, this arrest should serve as a reminder — we will find you and bring you to justice.”
“Over the last decade, Cristian Gutierrez-Ochoa, a close associate of CJNG’s top leader, allegedly directed the importation of tons of methamphetamine and cocaine into the United States and engaged in violence to aid the cartel’s criminal activities,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “The Criminal Division is committed to disrupting and dismantling Mexican drug trafficking organizations. Tuesday's arrest sends a powerful message to cartel leadership: we will work tirelessly with our domestic and international law enforcement partners to hold them accountable.”
“Defeating the two cartels responsible for the deadly drug crisis in the United States is the Drug Enforcement Administration (DEA)’s top operational priority, and with the arrest of Cristian Fernando Gutierrez-Ochoa, we are much closer,” said DEA Administrator Anne Milgram. “We allege that Gutierrez-Ochoa, a high-ranking member of the CJNG and the son-in-law of El Mencho, conspired to import thousands of kilograms of cocaine and methamphetamine into the United States on behalf of the Jalisco Cartel. The Jalisco Cartel is responsible for unprecedented violence in Mexico and helping to fuel the deadly drug crisis in the United States. The DEA is relentlessly committed to defeating the Jalisco Cartel, and we will exhaust every tool in the justice system to fight back, to save American lives, and to bring this cartel to justice.”
According to court documents, Gutierrez-Ochoa, 37, is alleged to have started working for the CJNG, one of the most violent drug cartels in Mexico, in around 2014, and to have personally coordinated the transportation and distribution of approximately 40,000 kilograms of methamphetamine and approximately 2,000 kilograms of cocaine in Mexico, all destined for the United States.
Gutierrez-Ochoa allegedly furthered CJNG’s drug trafficking and money laundering activities through violence. In around November 2021, Gutierrez-Ochoa allegedly kidnapped two members of the Mexican Navy in an attempt to secure the release of El Mencho’s wife, who had been arrested by Mexican authorities. After being sought by Mexican authorities, Gutierrez-Ochoa allegedly fled into the United States, assumed a fictitious identity, and resided in a luxury residence in Riverside, California, purchased by CJNG’s money laundering operatives with drug trafficking proceeds.
According to court documents, El Mencho may have assisted Gutierrez-Ochoa in his scheme to fake his own death by telling associates that El Mencho murdered Gutierrez-Ochoa for lying. This helped Gutierrez-Ochoa sneak into the United States to be with El Mencho’s daughter. The Justice Department returned a superseding indictment against El Mencho in April 2022, charging him with leading a continuing criminal enterprise to manufacture and distribute fentanyl for importation into the United States. The U.S. Department of State is offering a reward of up to $10 million for information leading to his arrest and/or conviction. El Mencho remains a fugitive.
Gutierrez-Ochoa is charged with conspiracy to distribute five kilograms or more of cocaine and 500 grams or more of methamphetamine, knowing, intending, and having reasonable cause to believe that those controlled substances would be unlawfully imported into the United States. Gutierrez-Ochoa is also charged with conspiracy to launder CJNG’s drug trafficking proceeds. If convicted, he faces a mandatory minimum penalty of ten years in prison and a maximum penalty of life in prison on the drug distribution conspiracy charge, and a maximum penalty of 20 years in prison on the money laundering conspiracy charge. A federal district court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The DEA Los Angeles Field Division is investigating the case.
Trial Attorneys Lernik Begian and Doug Meisel of the Criminal Division’s Narcotic and Dangerous Drug Section are prosecuting the case. The U.S. Attorney’s Office for the Central District of California provided valuable assistance.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level drug trafficking organizations and other criminal networks that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local enforcement agencies. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Santa Maria Gang Member and Convicted Felon Sentenced to 15 Years in Prison for Narcotics Crimes and Illegally Possessing AmmoRead the Press Release
LOS ANGELES – A Santa Barbara County gang member and convicted violent felon was sentenced today to 180 months in federal prison for possessing methamphetamine and illegally possessing dozens of rounds of ammunition, including some found inside a “ghost gun.”
Rodolfo Uriarte, 41, of Santa Maria, was sentenced by United States District Judge Sherilyn Peace Garnett.
Uriarte pleaded guilty on February 28 to all five felony charges he faced: two counts of distribution of methamphetamine, one count of possession with intent to distribute methamphetamine, and two counts of being a felon and prohibited person in possession of ammunition. Uriarte has been in federal custody since November 2023.
“Thanks to the diligent efforts of our prosecutors and law enforcement partners, a violent felon was apprehended and has now received a lengthy prison term,” said United States Attorney Martin Estrada. “Working together, we can make our streets safer by removing repeated offenders from our communities.”
According to court documents, in October 2023, as part of an investigation into Uriarte’s drug and firearms trafficking activities, law enforcement conducted a controlled purchase of approximately 110 grams of methamphetamine from Uriarte, who is a member of the Santa Maria Northwest street gang. On November 6, 2023, law enforcement conducted a second controlled purchase of 105 grams of methamphetamine from Uriarte, as well as a “ghost gun” – a firearm lacking a serial number – loaded with 10 rounds of nine-millimeter ammunition.
Separately, in October 2023, Santa Maria Police arrested Uriarte after they made a traffic stop, a stop that revealed the gray Lexus sedan Uriarte was driving had been reported stolen. A search of the vehicle resulted in the seizure of a rifle case, three AR-15 magazines – two of which were loaded with .223-caliber ammunition containing approximately 53 rounds of ammunition in total. Law enforcement also seized 38 rounds of 9mm ammunition in a backpack in the back seat of the vehicle, four plastic baggies containing methamphetamine, and a knotted glove that contained methamphetamine. In total, Uriarte possessed approximately 86.3 grams of methamphetamine.
Uriarte is not legally allowed to possess ammunition because of his criminal history, which includes felony convictions in Santa Barbara County Superior Court for second-degree robbery in 2005, assault with a deadly weapon in 2010, and a domestic violence conviction in 2014. Uriarte also possessed the ammunition knowing that he was subject to a June 2022 restraining order out of Santa Barbara County Superior Court.
The FBI, the Santa Maria Police Department, and the San Luis Obispo County Sheriff’s Office investigated this matter.
Assistant United States Attorneys Thomas J. Magaña of the General Crimes Section and Stephanie L. Orrick of the Orange County Office prosecuted this case.
Orange County Sheriff’s Department Employee Pleads Guilty to Fraudulently Using Her Grandmother’s Bank Accounts and Credit CardsRead the Press Release
SANTA ANA, California – An employee of the Orange County Sheriff’s Department pleaded guilty today to two felony charges for forging checks and fraudulently using credit cards in her grandmother’s name.
Roxana C. Laub, 33, of Santa Ana, pleaded guilty to one count of bank fraud and one count of identity theft.
In her plea agreement, Laub – whose employment has included work as a uniformed correctional officer at the Orange County jail – admitted that from December 2015 to January 2017, she forged her 75-year-old grandmother’s signature on more than 20 checks from her grandmother’s bank account – making them payable to herself – without her grandmother’s knowledge or permission. Laub then deposited these forged checks totaling approximately $45,000 into her own bank account.
Laub also posed as her grandmother when calling her grandmother’s bank to request information related to her grandmother’s account. After later admitting she was the caller – instead of her grandmother, Laub put her grandmother on the phone, who informed the bank personnel that she was unaware of the checks payable to Laub. After Laub took the phone back and tried to change the subject, the bank personnel asked to speak to Laub’s grandmother again, but Laub then claimed that her grandmother was feeling ill and not available.
From March 2020 to September 2022, Laub also fraudulently used her grandmother’s credit card to charge thousands of dollars for personal expenditures, including meals at restaurants in Santa Ana and West Hollywood, bars in West Hollywood, and a night club in Las Vegas.
Laub then used another one of her grandmother’s bank accounts to make more than $14,000 in payments for bills Laub had run up on those cards, again without her grandmother’s knowledge or permission.
Agents uncovered text messages wherein Laub had admitted to a family member that “I know what I did is unforgiveable,” according to the plea agreement.
Laub, who is on administrative leave from the Orange County Sheriff’s Department, has agreed to pay back all the money she unlawfully took from her grandmother.
United States District Judge David O. Carter scheduled an April 9, 2025, sentencing hearing, at which time, Laub will face a statutory maximum sentence of 30 years in federal prison for the bank fraud count and up to 15 years in federal prison for the identity theft count.
The FBI and the Federal Deposit Insurance Corporation Office of the Inspector General investigated this matter. The Long Beach Police Department provided substantial assistance in the investigation.
Assistant United States Attorney Charles E. Pell of the Orange County Office is prosecuting the case.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available via the National Elder Fraud Hotline: 1-833 FRAUD-11 (1-833-372-8311). This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professional who provide personalized support to callers by assessing the needs of the victim and identifying next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting or connect them with agencies, and provide resources and referrals on a case-by-case basis. The hotline is staffed seven days a week from 3 a.m. to 8 p.m. Pacific Time. English, Spanish and other languages are available. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, www.elderjustice.gov.
5 Defendants Charged Federally with Running Scheme that Targeted Victim Companies via Phishing Text MessagesRead the Press Release
INDICTMENT
COMPLAINT
LOS ANGELES – Law enforcement today unsealed criminal charges against five defendants who allegedly targeted employees of companies nationwide with phishing text messages and then used the harvested employee credentials to log in and steal non-public company data and information and to hack into virtual currency accounts to steal millions of dollars in cryptocurrency.
The following defendants are charged by a federal grand jury indictment with one count of conspiracy to commit wire fraud, one count of conspiracy, and one count of aggravated identity theft:
- Ahmed Hossam Eldin Elbadawy, 23, a.k.a. “AD,” of College Station, Texas;
- Noah Michael Urban, 20, a.k.a. “Sosa” and “Elijah,” of Palm Coast, Florida;
- Evans Onyeaka Osiebo, 20, of Dallas, Texas; and
- Joel Martin Evans, 25, a.k.a. “joeleoli,” of Jacksonville, North Carolina.
Evans was arrested Tuesday by the FBI in North Carolina and is expected to make his initial court appearance today. Urban also faces and has pleaded not guilty to several fraud charges in a separate criminal case in federal court in Jacksonville, Florida.
Also unsealed today was a criminal complaint charging Tyler Robert Buchanan, 22, of the United Kingdom, with conspiracy to commit wire fraud, conspiracy, wire fraud, and aggravated identity theft.
“We allege that this group of cybercriminals perpetrated a sophisticated scheme to steal intellectual property and proprietary information worth tens of millions of dollars and steal personal information belonging to hundreds of thousands of individuals,” said United States Attorney Martin Estrada. “As this case shows, phishing and hacking has become increasingly sophisticated and can result in enormous losses. If something about the text or email you received or website you’re viewing seems off, it probably is.”
“The defendants allegedly preyed on unsuspecting victims in this phishing scheme and used their personal information as a gateway to steal millions in their cryptocurrency accounts,” said Akil Davis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “These types of fraudulent solicitations are ubiquitous and rob American victims of their hard-earned money with the click of a mouse. I’m proud of our stellar cyber agents whose work led to the identification of the alleged schemers who are facing significant prison time if convicted.”
According to court documents, from at least September 2021 to April 2023, the defendants conducted phishing attacks by sending mass short message service (SMS) text messages to mobile phones of numerous victim companies’ employees – messages that purported to be from the victim company or a contracted information technology or business services supplier of the victim company.
The phishing text messages often stated that the employees’ accounts were about to be deactivated and provided links to phishing websites which were designed to look like legitimate websites of the victim companies or their contracted suppliers and lure the recipient into providing confidential information, including account login credentials. Some employees went to the phishing websites, entered their credentials, and sometimes authenticated their identities using a two-factor authentication request sent to their mobile phones.
The defendants then used the stolen credentials to gain unauthorized access the accounts of victim companies’ employees and the companies’ computer systems to steal confidential information, including confidential work product, intellectual property, and personal identifying information, such as account access credentials, names, email addresses, and telephone numbers.
The group also used stolen information obtained from victim company intrusions, leaked data sets, and other sources, to gain unauthorized access to numerous individuals’ cryptocurrency accounts and wallets and steal millions of dollars’ worth of virtual currency.
An indictment and a complaint contain allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
If convicted, each defendant would face a statutory maximum sentence of 20 years in federal prison for conspiracy to commit wire fraud, up to five years in federal prison for the conspiracy count, and a mandatory two-year consecutive prison sentence for aggravated identity theft. Buchanan would face up to 20 years in prison for the wire fraud count as well.
The FBI is investigating these matters. The United States Attorney’s Office for the Eastern District of North Carolina, Police Scotland and the FBI field offices in Charlotte, Denver, Houston and Portland provided assistance during this investigation.
Assistant United States Attorneys Lauren Restrepo of the Cyber and Intellectual Property Crimes Section and Sue J. Bai of the Terrorism and Export Crimes Section are prosecuting these cases.
South L.A. Man Found Guilty of Valentine’s Day Armed Robbery of Armored Truck in Hawthorne in Which Firearm Was DischargedRead the Press Release
LOS ANGELES – A South Los Angeles man was found guilty by a jury today of the armed robbery of an armored truck in Hawthorne on St. Valentine’s Day in 2022, a heist in which more than $166,000 in cash and customer checks were stolen and a firearm was discharged after the truck’s driver was held on the ground at gunpoint.
Deneyvous Hobson, 38, of the West Adams neighborhood of Los Angeles, was found guilty of one count of conspiracy to interfere with commerce by robbery (Hobbs Act), one count of Hobbs Act robbery, one count of using a firearm in furtherance of a crime of violence, and one count of being a felon in possession of a firearm and ammunition.
“Our community will not accept violent gun crime and armed and violent felons will be held accountable,” said United States Attorney Martin Estrada. “I commend our prosecutors and our federal and local law enforcement partners for bringing this defendant to justice. With Operation Safe Cities, we will remain vigilant in protecting the public from gun violence.”
According to evidence presented at a six-day trial, Hobson and co-defendant James Russell Davis, 36, also of the West Adams neighborhood of South Los Angeles, on February 14, 2022, robbed a Sectran Security Services armored truck by ambushing the truck’s driver after the driver had finished servicing an ATM.
Three weeks prior to the robbery, Hobson and Davis cased the Wescom Credit Union in Hawthorne and observed a Sectran driver serving an ATM. During and before the robbery, Davis acted as a lookout and performed countersurveillance nearby.
On February 14, 2022, at approximately the same time in the morning as their casing three weeks earlier, Hobson, traveling in a separate car from Davis, arrived at the credit union while the victim – identified in court documents as “J.G.” – was servicing the credit union’s ATMs.
Hobson and two other co-conspirators got out of their white Honda Accord, approached the victim, ordered him to the ground at gunpoint, and took J.G.’s service weapon, a .40-caliber handgun. Hobson and two co-conspirators stole approximately $166,640 in cash and checks from the Wescom Credit Union’s ATM. As Hobson and two accomplices returned to their car, one of the co-conspirators fired the 9mm semi-automatic handgun he was carrying. They then fled the scene.
The next day, Hobson attempted to sell for $800 via text the 9mm semi-automatic handgun he carried at the robbery, stating that the weapon was “not all the way bad it was just shot doing a get down,” according to court documents.
In October 2022, Hobson illegally possessed a 9mm pistol and 12 rounds of 9mm ammunition. Hobson was not permitted to possess the firearm or ammunition because his criminal history includes felony convictions in 2003 in Los Angeles Superior Court for robbery and assault with a deadly weapon.
United States District Judge Fernando L. Aenlle-Rocha scheduled an April 18, 2025, sentencing hearing, at which time Hobson will face a statutory maximum sentence of life in federal prison. Hobson has been in federal custody since February 2023.
Davis pleaded guilty on February 16 to one count of Hobbs Act robbery and one count of discharging a firearm in furtherance of a crime of violence. On June 10, Judge Aenlle-Rocha sentenced Davis to 166 months in federal prison and ordered him to pay $166,640 in restitution to Sectran Security Services. Davis has been in federal custody since March 2023.
Operation Safe Cities establishes strategic enforcement priorities with an emphasis on prosecuting the most significant drivers of violent crime. Across this region, the most damaging and horrific crimes are committed by a relatively small number of particularly violent individuals. This strategic enforcement approach is expected to increase the number of arrests, prosecutions and convictions of recidivists engaged in the most dangerous conduct. It is designed to improve public safety across the region by targeting crimes involving illicit guns, prohibited persons possessing firearms, or robbery crews that cause havoc and extensive losses to retail establishments.
The FBI, the Los Angeles Police Department, the Los Angeles County Sheriff’s Department, the Inglewood Police Department, and the Hawthorne Police Department investigated this matter.
Assistant United States Attorneys Kevin J. Butler and Jena A. MacCabe of the Violent and Organized Crime Section and Jason C. Pang of the General Crimes Section are prosecuting this case.
Riverside Man Sentenced to 15 Years in Federal Prison for Trafficking Pounds of Methamphetamine from Mexico into Inland EmpireRead the Press Release
RIVERSIDE, California – A Riverside County man who helped lead an organization that trafficked pound quantities of methamphetamine from Mexico into the Inland Empire has been sentenced to 180 months in federal prison, the Justice Department announced today.
Javier Rodriguez, 57, of Riverside, was sentenced late Monday by United States District Judge Jesus G. Bernal.
Rodriguez, a member of the Riverside-based Casa Blanca Rifa street gang, pleaded guilty on March 18 to eight felonies: one count of conspiracy to distribute and possess with intent to distribute methamphetamine; one count of conspiracy to import methamphetamine; three counts of possessing methamphetamine for distribution; one count of being a felon in possession of ammunition; and two counts of attempted international promotional money laundering. Rodriguez has been in federal custody since pleading guilty.
The investigation leading to these federal charges focused on the criminal activities of the Casa Blanca Rifa gang to combat drug trafficking and associated violence in Riverside and the surrounding community.
From at least April 2020 until August 2020, Rodriguez and others purchased pound quantities of methamphetamine from their suppliers in Mexico as well as in Los Angeles and Riverside counties. Other members of the conspiracy further distributed methamphetamine in the Inland Empire. Prosecutors argued that Rodriguez also trafficked drugs from his mother’s home,
In total, law enforcement seized more than 150 pounds (68 kilograms) of methamphetamine and $31,035 in cash during this investigation.
In May 2020, Rodriguez possessed 150 rounds of ammunition. He is not legally permitted to possess ammunition because his criminal history includes six felony convictions in state court in Riverside and Los Angeles counties for crimes ranging from drug dealing to burglary.
Rodriguez is the 16th and final defendant sentenced in this criminal case. Lead defendant Timoteo Gomez, 51, of Riverside, was sentenced on May 6 to 21 years in federal prison after pleading guilty to his role in the methamphetamine trafficking conspiracy. Other defendants in this case received prison sentences ranging from two to 12 years.
The FBI’s Inland Empire Safe Streets Task Force investigated this matter. The Task Force is a joint federal and state gang task force that includes the FBI; the Drug Enforcement Administration; IRS Criminal Investigation; the Riverside County Sheriff’s Department; and the Riverside Police Department. The FBI’s Safe Streets Task Force received assistance during the investigation from the San Bernardino County Sheriff’s Department; U.S. Customs and Border Protection; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the United States Marshals Service.
Assistant United States Attorney Eli A. Alcaraz of the Public Corruption and Civil Rights Section prosecuted this case.
Former Veterans Affairs Police Officer Sentenced to 1 Year in Federal Prison for Beating Victim Approximately 45 Times with BatonRead the Press Release
LOS ANGELES – A former police officer with the Veterans Affairs Police Department (VAPD) was sentenced today to 12 months in federal prison for violating a victim’s civil rights by using a department-issued baton to illegally strike a man approximately 45 times in 41 seconds at the West Los Angeles VA Medical Center.
Juan Anthony Carrillo, 46, of Alhambra, was sentenced by United States District Judge Wesley L. Hsu.
At today’s hearing, Judge Hsu said, “Officers owe a special duty and have a special obligation to keep the trust of the citizens they police.”
Carrillo pleaded guilty on July 26 to one misdemeanor count of deprivation of rights under color of law and specifically, for using excessive force as a law enforcement officer. The 12-month prison sentence is the statutorily maximum available sentence for this offense.
At around 4 a.m. on January 16, 2022, the 34-year-old victim – identified in court documents as “R.V.” – was detained by another VAPD officer on the grounds of the Medical Center. Carrillo arrived to assist the other officer and proceeded to beat R.V. with a VAPD-issued baton up to 45 times in approximately 41 seconds while R.V. screamed in pain. Most, if not all, of the baton strikes were delivered while the other officer was on top of the victim, who was unarmed.
Carrillo was approximately 60 pounds heavier than R.V. and the second officer was approximately 8 inches taller and approximately 85 pounds heavier than the victim.
As a result of the beating, the victim sustained injuries that included cuts on both legs and a broken bone on his right foot.
The FBI, the VA’s Office of Inspector General, and the VA’s Office of Security and Law Enforcement are conducting the investigation in this matter.
Assistant United States Attorneys Susan S. Har and Michael J. Morse of the Public Corruption and Civil Rights Section prosecuted this case.
Former Federal Employee Sentenced to 40 Years in Prison for Kidnapping His Wife, Who Was Murdered After Her AbductionRead the Press Release
LOS ANGELES – A former federal law enforcement agency employee was sentenced today to 480 months in federal prison for plotting to abduct and kill his estranged wife, who was strangled to death in 2016.
Eddy Reyes, 38, of Covina, was sentenced by United States District Judge Josephine L. Staton, who at today’s hearing called the crime “heinous” and “a product of pure evil.”
Reyes pleaded guilty on April 19 to one count of kidnapping resulting in death.
Reyes was a civilian employee of U.S. Customs and Border Protection (CBP) at the time of his wife’s death and when he was arrested in this case in April 2021. He has been in federal custody since his arrest.
“This defendant carried out a despicable, cold-blooded murder of his own wife and now appropriately faces the consequences,” said United States Attorney Martin Estrada. “Our deepest condolences to the victim’s family and our appreciation to the investigators and prosecutors who ensured that justice was done in this case.”
“Mr. Reyes abandoned his commitment to law enforcement and tried to get away with a calculated brutal murder,” said Akil Davis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Today’s sentence exemplifies a true commitment to law enforcement and finding justice. May it bring solace to Claudia's family in El Salvador.”
Reyes met the victim, Claudia Sanchez Reyes, in El Salvador in 2014. Reyes eventually married the victim and brought her and their son to the United States. Court documents previously filed in this case allege a history of domestic abuse by Reyes against his wife, who obtained temporary restraining orders against him in 2014 and 2016.
By 2016, Reyes suspected his wife was having an affair and he decided to kill her. Reyes then contacted his estranged half-brother – a one-time gang member and gravedigger in El Salvador identified in court documents as “P.O.,” who is now deceased – about killing Claudia Reyes.
On May 6, 2016, Reyes telephoned his wife at her job and told her that he wanted to take her to dinner that night and told her not to take an Uber home, which was her usual practice. At approximately 8 p.m. that night, Reyes drove a rented Hyundai Santa Fe and picked her up from work, after previously lying to her that the vehicle was a gift.
Instead of taking his wife out to dinner, Reyes drove to his mother’s house in Orange, pulled into the garage and closed the door. Once the door was closed, P.O. jumped from the SUV’s cargo area into the back seat and grabbed the victim, who was in the front passenger seat. P.O. punched Claudia Reyes in the face, cutting her lip, then took a seat belt and strangled her. She was 21 years old. Reyes helped P.O. push the victim’s dead body from the front passenger seat into the SUV’s cargo area.
The following day, Reyes drove to the Santa Ana apartment he shared with his wife, turned on her telephone he had turned off the night before, and, posing as his wife, used her phone to send a text message to one of her co-workers saying she would not be in to work that day. P.O., also using the victim’s phone, texted a paralegal working for the victim’s divorce lawyer that stated she no longer needed the lawyer’s services.
P.O. also used Claudia Reyes’ phone to text her mother and, pretending to be the victim, he wrote that she had met another man, was leaving Reyes and their son, that she was about to disconnect the phone, and wishing her a happy Mother’s Day.
On May 19, 2016, Reyes drove to a parking lot at Los Angeles International Airport and threw in the trash a backpack containing a blanket and rags that P.O. used to wipe down the seatbelt and interior of the SUV where Claudia Reyes was killed.
Reyes filed a missing person report four days later, but, according to the criminal complaint, when contacted by the police, Reyes refused to answer questions, despite having filed the report, until several days later at his lawyer’s office. The police conducted an investigation that revealed co-workers heard Claudia Reyes fighting with her husband on May 6 soon before he picked her up in the rented SUV, according to the affidavit in support of a criminal complaint, which notes detectives later found a drop of Claudia Reyes’ blood in that vehicle and a cadaver dog indicated that a dead body had been in the SUV.
“U.S. Customs and Border Protection does not tolerate misconduct, on or off duty,” said Todd Siegel, CBP Office of Professional Responsibility (OPR), Special Agent in Charge, Los Angeles. “CBP OPR Los Angeles Field Office’s efforts in this case is a testament to CBP’s commitment to preserving the honor of its overwhelmingly professional workforce, and its core values of vigilance, integrity, and service to our country.”
The FBI, the Santa Ana Police Department, and the Orange County Violent Gang Task Force, which is comprised of several federal, state, and local agencies, investigated this matter. Assistance was provided by Customs and Border Protection’s Office of Professional Responsibility, the Irvine Police Department, and the Transnational Anti-Gang Unit of El Salvador.
Assistant United States Attorney Gregory W. Staples of the Orange County Office prosecuted this case.
Real Estate Development Executive Sentenced to 5 Years in Prison for Bribery Scheme with Corrupt San Luis Obispo County SupervisorRead the Press Release
LOS ANGELES – An executive at a San Luis Obispo-based real estate development company was sentenced today to 60 months in federal prison for paying a local politician nearly $95,000 in bribes and gifts in exchange for official acts benefiting the company’s development projects.
Ryan Wright, 38, of Grover Beach, was sentenced by United States District Judge Percy Anderson. Judge Anderson also scheduled a restitution hearing for January 27, 2025.
Wright, who has been in federal custody since October 2023, pleaded guilty on September 13 to one count of conspiracy to commit honest services wire fraud.
Wright was a managing member of PB Companies, LLC, a San Luis Obispo-based real estate development business, and had previously served as the company’s CEO until December 2015. In 2014, PB Companies had multiple projects in the works, including in the city and county of San Luis Obispo.
From at least June 2014 to March 2017, Wright illegally conspired to bribe Adam Hill, an elected member of the San Luis Obispo County Board of Supervisors. Hill represented the Third District, which included a majority of the city of San Luis Obispo. Hill voted on matters appearing before the Board of Supervisors, including budget bills that affected the city, and by virtue of his elected position, had influence over matters occurring within the city and in the city’s departments and commissions.
Specifically, Wright bribed Hill with money and other financial benefits. In exchange, the supervisor used his official position to help Wright secure approvals necessary for PB Companies’ real estate development projects, including by voting on two projects. Hill further used his official position to advise and influence other public officials deciding the fate of PB Companies’ projects, including city officials and individuals appointed to city commissions.
In total, as part of this conspiracy, Wright arranged for Hill or his shell company to receive nearly $95,000 in payments, including a $10,000 wire in November 2016 just over a month after Hill voted on one of PB Companies’ projects. Wright also paid for Hill’s flight, hotel, and front-row ticket to a Major League playoff game in San Francisco in October 2014.
Hill died in August 2020.
The FBI and IRS Criminal Investigation investigated this matter.
Assistant United States Attorneys Thomas F. Rybarczyk, Billy Joe McLain, and Daniel J. O’Brien of the Public Corruption and Civil Rights Section prosecuted this case.
Foreign National Pleads Guilty to Laundering Millions of Dollars in Illicit Proceeds from Cryptocurrency Investment ScamsRead the Press Release
LOS ANGELES – A foreign national pleaded guilty today to a federal criminal charge for his role in a scheme to launder proceeds from cryptocurrency investment scams.
Daren Li, 41, a dual citizen of China and St. Kitts and Nevis, and a resident of China, Cambodia, and the United Arab Emirates, pleaded guilty to one count of conspiracy to commit money laundering.
“Financial criminals and the money launderers who enable them wreak untold harm, ruining lives in the process,” said United States Attorney Martin Estrada. “Investors should be diligent and on guard against anyone offering quick riches via new, exotic investments. A healthy dose of skepticism could prevent financial ruin down the road.”
According to court documents, Li admitted that he conspired with others to launder funds obtained from victims through cryptocurrency scams and related fraud. In furtherance of the conspiracy, he communicated with his co-conspirators through encrypted messaging services.
To conceal or disguise the nature, location, source, ownership, and control of the fraudulently obtained victim funds, Li would instruct co-conspirators to open U.S. bank accounts established on behalf of shell companies and would monitor the receipt and execution of interstate and international wire transfers of victim funds. Li and other co-conspirators received victim funds in financial accounts they controlled, and then monitor the conversion of victim funds to virtual currency, specifically Tether (USDT), and the subsequent distribution of that virtual currency to cryptocurrency wallets controlled by Li and his co-conspirators.
Li admitted that at least $73.6 million in victim funds were directly deposited into bank accounts associated with him and his co-conspirators, including at least $59.8 million deposited from U.S. shell companies that laundered victim proceeds.
“Daren Li and his co-conspirators laundered over $73 million from the victims of cryptocurrency investment scams, using a web of shell companies and international bank accounts,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Although Li committed this offense from outside the United States, he was not beyond the reach of the Justice Department. Today’s plea reflects our ongoing commitment to working with our domestic and international partners to hold accountable anyone responsible for cryptocurrency investment fraud against U.S. victims — wherever the perpetrators are located.”
“This investigation demonstrates how domestic and international partnerships are vital to successfully combatting transnational crime,” said Acting Assistant Director of Investigations Michael Ball of the U.S. Secret Service (USSS).
Li was arrested on April 12 at Hartsfield-Jackson Atlanta International Airport and subsequently transported to Los Angeles.
United States District Judge R. Gary Klausner scheduled a March 3, 2025, sentencing hearing, at which time Li will face a statutory maximum sentence of 20 years in federal prison.
USSS’s Global Investigative Operations Center is investigating the case. Homeland Security Investigations’ El Camino Real Financial Crimes Task Force, Customs and Border Protection’s National Targeting Center, the Dominican Republic National Drug Directorate Sensitive Investigative Unit and Fugitive Task Force, U.S. Marshals Service, Drug Enforcement Administration, and the Justice Department’s Office of International Affairs provided assistance.
Assistant United States Attorneys Maxwell Coll of the Cyber and Intellectual Property Crime Section and Nisha Chandran of the Corporate and Securities Fraud Strike Force along with Justice Department Trial Attorney Stefanie Schwartz of the Criminal Division’s Computer Crime and Intellectual Property Section’s National Cryptocurrency Enforcement Team are prosecuting this case.
If you or someone you know is a victim of cryptocurrency investment scams, report it to IC3.gov.
Foreign National Pleads Guilty to Laundering Millions in Proceeds from Cryptocurrency Investment ScamsRead the Press Release
Daren Li, 41, a dual citizen of China and St. Kitts and Nevis, and a resident of China, Cambodia, and the United Arab Emirates, pleaded guilty today to one count of conspiracy to commit money laundering for his role in a scheme to launder millions of dollars in proceeds of cryptocurrency investment scams.
“Daren Li and his co-conspirators laundered over $73 million from the victims of cryptocurrency investment scams, using a web of shell companies and international bank accounts,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Although Li committed this offense from outside the United States, he was not beyond the reach of the Justice Department. Today’s plea reflects our ongoing commitment to working with our domestic and international partners to hold accountable anyone responsible for cryptocurrency investment fraud against U.S. victims — wherever the perpetrators are located.”
Li was arrested on April 12 at Hartsfield-Jackson Atlanta International Airport and subsequently transported to the Central District of California.
According to court documents, Li admitted that he conspired with others to launder funds obtained from victims through cryptocurrency scams and related fraud. In furtherance of the conspiracy, he communicated with his co-conspirators through encrypted messaging services. In order to conceal or disguise the nature, location, source, ownership, and control of the fraudulently obtained victim funds, Li would instruct co-conspirators to open U.S. bank accounts established on behalf of shell companies and would monitor the receipt and execution of interstate and international wire transfers of victim funds. Li and other co-conspirators would receive victim funds in financial accounts they controlled, and then monitor the conversion of victim funds to virtual currency, specifically Tether (USDT), and the subsequent distribution of that virtual currency to cryptocurrency wallets controlled by Li and his co-conspirators.
Li admitted that at least $73.6 million in victim funds were directly deposited into bank accounts associated with him and his co-conspirators, including at least $59.8 million deposited from U.S. shell companies that laundered victim proceeds.
“Financial criminals and the money launderers who enable them wreak untold harm, ruining lives in the process,” said United States Attorney Martin Estrada for the Central District of California. “Investors should be diligent and on guard against anyone offering quick riches via new, exotic investments. A healthy dose of skepticism could prevent financial ruin down the road.”
“This investigation demonstrates how domestic and international partnerships are vital to successfully combatting transnational crime,” said Acting Assistant Director of Investigations Michael Ball of the U.S. Secret Service (USSS).
Li is scheduled to be sentenced on March 3, 2025. Li faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
USSS’s Global Investigative Operations Center is investigating the case. Homeland Security Investigations’ El Camino Real Financial Crimes Task Force, Customs and Border Protection’s National Targeting Center, the Dominican Republic National Drug Directorate Sensitive Investigative Unit and Fugitive Task Force, U.S. Marshals Service, Drug Enforcement Administration, and Justice Department’s Office of International Affairs provided assistance.
Trial Attorney Stefanie Schwartz of the Criminal Division’s Computer Crime and Intellectual Property Section’s National Cryptocurrency Enforcement Team and Assistant U.S. Attorneys Maxwell Coll and Nisha Chandran for the Central District of California are prosecuting the case.
If you or someone you know is a victim of cryptocurrency investment scams, report it to IC3.gov.
DOJ Files Statement of Interest Regarding Unnecessary Segregation of Youth with Mental Health Disabilities in L.A. County and California Foster Care SystemRead the Press Release
LOS ANGELES – The Justice Department today filed a statement of interest in a federal lawsuit alleging the foster care system operated by Los Angeles County and the State of California fails to provide youth with mental health disabilities with sufficient access to housing, behavioral health, and other services and, instead, places them in institutions for care.
In Ocean S., et al., v. Los Angeles County, et al., (C.D. Calif., 23cv06921) the plaintiffs, who are transition-age foster youth, contend that the defendants’ administration of the foster care system unnecessarily segregates youth with mental health disabilities in violation of federal law.
The Americans with Disabilities Act (ADA), the Rehabilitation Act, and the Supreme Court’s decision in Olmstead v. L.C., 527 U.S. 581 (1999) require state and local governments to eliminate unnecessary segregation of persons with disabilities and to administer services to people with disabilities in the most integrated setting appropriate to their needs.
The Department of Justice files statements of interest in ongoing court cases to inform the court and the public of its views on certain matters of law.
“Youth with disabilities who do not receive the critical services that they need to thrive in the community often end up in a vicious cycle of institutionalization,” said United States Attorney Martin Estrada. “Under the law, people with disabilities deserve to live and receive services in the most integrated setting appropriate to their needs, such as in their homes and communities. My office is committed to upholding civil rights for all, including people with disabilities.”
In the Ocean S. lawsuit, the Justice Department’s statement of interest pertains to the “integration mandate” and explains that the ADA bars public entities from placing an individual with a disability at serious risk of needless institutionalization. The statement of interest also clarifies that the plaintiffs can state a serious risk claim without alleging that they seek specific community-based services that exist in an institution. It also states that the plaintiffs do not need to include an appropriateness determination from a treatment professional in their complaint, and that a public entity’s oversight and administration of its service system may be sufficient to allege causation.
Assistant United States Attorney Amy Xu of the Civil Division’s Civil Rights Section and attorneys from the Special Litigation Section of the Justice Department’s Civil Rights Division worked on the statement of interest.
Individuals in the seven counties of the Central District of California may file a complaint asserting civil rights violations with the Civil Rights Section, Civil Division of the U.S. Attorney’s Office by completing and submitting this form (English) (Spanish) by email to [email protected].
Chicago Rapper Lil Durk Charged in Superseding Indictment Alleging Murder-for-Hire Plot to Kill Rival Near Beverly Center Mall in 2022Read the Press Release
LOS ANGELES – A Grammy Award-winning Chicago rapper has been charged in a superseding federal grand jury indictment alleging he conspired with others to murder a rival rapper, resulting in the shooting death of the rival’s relative that occurred at a gas station near the Beverly Center shopping mall in Los Angeles in August 2022, the Justice Department announced today.
Durk Banks, 32, a.k.a. “Lil Durk,” “Blood,” and “Mustafa Abdul Malak,” of Chicago, is charged with one count of conspiracy, one count of use of interstate facilities to commit murder-for-hire resulting in death, and one count of using, carrying, and discharging firearms and a machine gun and possession of such firearms in furtherance of a crime of violence resulting in death.
The indictment adds two felony charges against Banks, who previously was charged via criminal complaint in this case.
The four-count superseding indictment, returned late Thursday, adds Banks as the lead defendant to a previous indictment returned October 17 and charging the following defendants in connection with the August 2022 murder:
- Kavon London Grant, 28, a.k.a. “Cuz” and “Vonnie,” of Atlanta;
- Deandre Dontrell Wilson, 33, a.k.a. “DeDe,” of Chicago;
- Keith Jones, 33, a.k.a. “Flacka,” of Gary, Indiana;
- David Brian Lindsey, 33, a.k.a. “Browneyez,” of Addison, Illinois; and
- Asa Houston, 36, a.k.a. “Boogie,” of Chicago.
Banks was arrested on October 17 near Miami International Airport after law enforcement learned that Banks had been booked on multiple international flights. A federal magistrate judge in Miami has ordered him jailed without bond until he is transferred to Los Angeles for arraignment.
All six defendants – none of whom has yet entered a plea to the charges – are expected to be arraigned in United States District Court in downtown Los Angeles in the coming weeks.
According to the superseding indictment, in 2010, Banks formed an organization called Only the Family (OTF), which, among other things, produced and sold hip hop music from artists primarily from the Chicago area. OTF also acted as an association-in-fact of individuals who engaged in violence, including murder and assault, at Banks’ direction and to maintain their status in OTF.
Banks feuded with a victim, identified in court documents as “T.B.” The feud stemmed from a November 6, 2020, murder in which an associate of T.B. shot and killed an OTF rapper named Dayvon Bennett, a.k.a. “King Von.” Bennett and Banks were close friends.
In response to Bennett’s murder, Banks allegedly put a bounty on T.B.’s life.
On August 19, 2022, several OTF members and associates used two vehicles and worked in tandem to track, stalk, and attempt to murder T.B. for hours, culminating in a shooting at a gasoline station located near the Beverly Center shopping mall. The co-conspirators used multiple guns, including a machine gun, and fired at least 18 rounds at T.B.’s vehicle, striking and killing a victim identified in court documents as “S.R.,” who was T.B.’s family member who had been traveling with T.B.
Banks allegedly ordered T.B.’s murder and the hitmen used money from Banks and OTF-related finances to carry out the hit. Bank and flight records show that an OTF member and close associate of Banks coordinated and paid for five co-conspirators to travel from Chicago to California on the day before the murder. Around the time the one-way flights were purchased, Banks told the OTF associate booking the flights, “Don’t book no flights under no names involved wit [sic] me.”
The same day the hitmen traveled from Chicago to California, Banks also traveled to California in a private jet with another conspirator, Kavon London Grant, 28, a.k.a. “Cuz” and “Vonnie.” Later that day, Grant allegedly purchased ski masks for the shooters to use to commit the murder and paid – using a credit card in Banks’ name – for the other co-conspirators’ hotel room.
“Mr. Banks is charged with orchestrating a cold-blooded murder that resulted in the death of a rival’s family member,” said United States Attorney Martin Estrada. “Not only that, the shooting occurred in the open, at a gas station at a busy intersection, endangering many others in the area. Violent gun crime of this sort is devastating to our community and we will have zero-tolerance for those who perpetrate such callous acts of violence.”
“The apprehension of Mr. Banks as he attempted to leave the United States is once again proof that the FBI and our extraordinary partners at the Los Angeles Police Department have a long reach,” said Akil Davis, Assistant Director in Charge of the FBI Los Angeles Field Office. “No excuse can justify this violent act and let me be clear: While you’re going about your life, thinking you ‘got away with it,’ the FBI is piecing together the facts that will serve as your undoing.”
“Cases like these that span multiple states and jurisdictions are complicated and can oftentimes only be resolved through the collaboration of multiple departments,” said Los Angeles Police Chief Dominic Choi. “This arrest is the culmination of the combined efforts of our partners in the U.S. Attorney’s Office, the FBI, and LAPD’s Operation West Bureau Homicide detectives who discovered that Durk D a.k.a. Lil Durk was involved in this heinous murder. The hundreds of hours spent on the investigation included surveillance, authoring numerous search warrants, using forensic technology, and tireless investigative travel and collaboration alongside our federal partners led to this arrest. I am appreciative of the dedication of those involved.”
The other five defendants are in federal custody in Illinois after their initial court appearances in Chicago. They remain charged with one count of conspiracy, one count of use of interstate facilities to commit murder-for-hire resulting in death, and one count of using, carrying and discharging firearms and a machine gun and possession of such firearms in furtherance of a crime of violence resulting in death. Jones faces an additional count of possession of a machine gun.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
If convicted, all the defendants would face a statutory maximum sentence of life in federal prison.
The FBI and the Los Angeles Police Department are investigating this matter.
Assistant United States Attorneys Ian V. Yanniello of the Terrorism and Export Crimes Section, Daniel H. Weiner of the International Narcotics, Money Laundering, and Racketeering Section, and Gregory W. Staples of the Orange County Office are prosecuting this case.