Central District of California
Press releases recorded for this federal judicial district.
South L.A. Man Sentenced to More Than 9 Years in Federal Prison for Robbery Spree that Ended in High-Speed Crash and Freeway Foot PursuitRead the Press Release
LOS ANGELES – A South Los Angeles man was sentenced today to 110 months in federal prison for committing a string of robberies of businesses throughout Los Angeles County – a series of crimes that ended with a high-speed chase that resulted in him and other defendant crashing their getaway car before running across a freeway last year.
Anthony Flores, 28, a.k.a. “BabyGfar,” was sentenced by United States District Judge Hernán D. Vera, who also ordered him to pay $10,439 in restitution. Flores has been in federal custody since September 2023.
At the conclusion of a three-day trial, a jury on July 18 found Flores guilty of one count of conspiracy to interfere with commerce by robbery (Hobbs Act) and two counts of Hobbs Act robbery.
“This defendant’s careless disregard for the law put lives at risk,” said United States Attorney Martin Estrada. “Today’s sentence highlights that my office – through the Operation Safe Cities initiative – will make sure that violent criminals face real consequences. The public deserves no less.”
From May 27, 2023, to May 31, 2023, Flores and other co-conspirators robbed BevMo! liquor stores in Long Beach and Lakewood and conspired to rob other stores in West Covina and Pasadena, and on June 5, 2023, attempted to rob a BevMo! store in Canyon Country. During the robberies, Flores and others stole high-end liquor stored behind security glass and, in some instances, threatened employees with violence.
In total, Flores and his co-conspirators stole approximately $14,143 in merchandise during this spree.
On June 5, 2023, Flores and co-defendant Ivin Kitu Sanford, 32, formerly of South Los Angeles but now a resident of Las Vegas, attempted to rob the Canyon Country BevMo! store. Flores and a co-conspirator subdued a store employee and attempted to steal high-end bottles of liquor. They fled in a stolen gray Dodge Charger with a stolen license plate and attempted to evade officers during a traffic stop. Flores and Sanford led law enforcement on a chase before crashing into a tree. After the crash, they ran on foot across the 14 Freeway during rush hour traffic. Flores and Sanford were later found in bushes in a desolate area and arrested.
At the same July trial, Sanford was found guilty of one count of Hobbs Act robbery conspiracy. His sentencing hearing is scheduled for January 30, 2025, at which time he will face a statutory maximum sentence of 20 years 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, the Los Angeles County Sheriff’s Department, the West Covina Police Department, and the Long Beach Police Department investigated this matter.
Assistant United States Attorneys Kevin J. Butler and Jena A. MacCabe prosecuted this case.
China-Based Chemical Company, Its Director and Senior Employees Indicted for Alleged Fentanyl Manufacturing and DistributionRead the Press Release
LOS ANGELES – A chemical company, its director and three senior employees have been charged in a 13-count federal grand jury indictment alleging they sold deadly fentanyl precursor chemicals and xylazine – known as “tranq” – globally, fueling the fentanyl crisis in the United States, the Justice Department announced today.
Hubei Aoks Bio-Tech Co. Ltd., a chemical company based in Wuhan, China, is charged with one count of conspiracy to manufacture and distribute fentanyl and to distribute listed chemicals for the manufacture of fentanyl, one count of conspiracy to distribute listed chemicals for importation to the United States, two counts of distribution of listed chemicals for importation, two counts of distribution of listed chemicals for manufacture into controlled substances, and seven counts of introduction of misbranded drugs into interstate commerce.
Also charged in the indictment returned on May 10 and announced today are:
- Xuening Gao, 38, Hubei Aoks’ sole director, who is charged with two conspiracy counts;
- Guangzhao Gao, 36, the operator of Hubei Aoks’ cryptocurrency wallets used for fentanyl precursor sales and who is charged with a total of six felonies, including four distribution-related counts;
- Yajing Li, 30, a Hubei Aoks sales manager who also is charged with six felonies, including conspiracy and distribution of a listed chemical; and
- A fifth defendant who uses the alias “Jessie Lee,” a Hubei Aoks sales manager charged with two conspiracy counts.
The People’s Republic of China’s Ministry of Public Security recently informed the Justice Department that it took law enforcement action against the defendants in its own parallel investigation by dissolving the indicted Chinese company and arresting the four indicted Chinese national subjects. The Justice Department thanks the Ministry of Public Security for its assistance and coordinated efforts.
The Justice Department also recognizes the work done by the Ministry of Public Security in taking action to schedule two of the several chemicals that the indictment charges the defendants with distributing: the adulterant xylazine and the precursor 3,4-MDP-2-P Ethyl Glycidate. These two chemicals were not scheduled in the People’s Republic of China at the time of this investigation, but have now been scheduled.
“This indictment alleges a corporation, its director and sales manager reaped financial benefits by knowingly exporting materials that helped fuel the fentanyl crisis in our nation,” said United States Attorney Martin Estrada. “Synthetic drugs such as fentanyl have wreaked devastation in our country, and it is therefore critical that we hold accountable those behind this crisis. Rest assured, we will have no patience for those who profit off this poison and treat our youth as collateral damage.”
“This company, its owner and criminal operatives have knowingly been involved in a deadly game, manufacturing parts that led to a destructive whole,” said Matthew Allen, Special Agent in Charge of the Drug Enforcement Administration's (DEA) Los Angeles Field Division. “DEA will continue to focus on identifying the most prolific manufacturers and distributor organizations of the fentanyl precursor chemicals and these indictments are proof of our unwavering determination to bring these criminals to justice. Our investigators and all our partners’ capabilities and skillful collaboration have made a difference. I couldn’t be prouder.”
“Today’s announcement demonstrates the government’s continued scrutiny of companies and individuals that subvert federal law by importing and distributing drugs and drug ingredients for illicit purposes,” said Special Agent in Charge Robert Iwanicki, Food and Drug Administration Office of Criminal Investigations Los Angeles Office. “FDA remains committed to pursuing and bringing to justice those who jeopardize the public health and profit off the sale of unlawful and potentially dangerous products.”
“Companies such as Hubei Aoks disguise their illicit activities as legitimate business operations yet continue to knowingly contribute to the fentanyl crisis in the United States,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “This indictment highlights our commitment to partnering with other law enforcement agencies to combat this epidemic. IRS Criminal Investigation is the best in the world at following the money, whether it be within traditional banking systems or via cryptocurrency platforms, and we will tirelessly pursue the necessary evidence to bring suspects to justice.”
According to the indictment, for more than a decade, Xuening Gao and Guangzhou Gao have sold controlled substances and precursor chemicals, including fentanyl precursors, to customers throughout the United States. Both men are linked to chemical companies operating in China, including one that sold fentanyl and acetyl-fentanyl that was imported into the United States as far back as 2015.
Hubei Aoks exported chemicals to at least 100 countries, including the United States, and advertised online and through various social media platforms. Hubei Aoks sales representatives tailored their precursor recommendations depending on the customer’s geographical market and would suggest alternative chemicals if one was not available. Hubei Aoks claimed that fentanyl precursors were most popular in Mexico and sold them in 25-kilogram fiber drums, each of which can produce 10 million fentanyl pills. Representatives claimed that their profit on precursors sales to Mexico was worth the risk.
From at least November 2016 to November 2023, Hubei Aoks sold and imported to the United States 11 kilograms of fentanyl precursors, capable of producing millions of fentanyl pills, along with two kilograms of xylazine, a tranquilizer, used by veterinarians to sedate cattle, horses, and other large animals. The chemicals were falsely imported into the United States as furniture parts, vases, makeup, and other items, and were delivered to a person the conspirators believed was a fentanyl trafficking customer, but who actually was an undercover agent.
Sometimes, Hubei Aoks sales representatives attempted to entice the undercover agent by offering additional chemicals that they claimed would sell well, offering gifts, and guaranteeing that their chemicals would be successfully imported into the United States.
“HSI is dedicated to disrupting the flow of fentanyl, and the precursor chemicals necessary to produce this poison, entering our communities," said Homeland Security Investigations Los Angeles Special Agent in Charge Eddy Wang. “Today’s announcement of charges is a warning to those who seek to profit from the sales of these precursor chemicals used to manufacture fentanyl and other manufactured narcotics.”
“This enforcement action reflects U.S. Customs and Border Protection’s (CBP) whole-of-government effort to anticipate, identify, mitigate, and disrupt illicit synthetic drug producers, suppliers, and traffickers," said Cheryl M. Davies, CBP Director of Field Operations in Los Angeles. “This comprehensive approach brings the unique, formidable, and wide-ranging capabilities and authorities of CBP to bear on the illicit synthetic drug trade and build capacity and collaboration with our partners – domestic and international – to ensure the safety of the American public.”
“The shipment of dangerous substances like fentanyl precursor chemicals through the U.S. Mail helps to fuel a pandemic that affects many Americans today”, said Inspector in Charge of the United States Postal Inspection Service in Los Angeles, Matt Shields. “Precursor chemicals are extremely dangerous substances and pose a serious threat to the health and well-being of our society. The U.S. Postal Inspection Service stands proudly with our federal law enforcement partners as we continue to fight to protect the U.S. Postal Service and Americans from illegal and dangerous substances.”
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 of all charges, each defendant would face a mandatory minimum of 10 years in prison and a maximum penalty of life in prison.
The Drug Enforcement Administration; the Food and Drug Administration Office of Criminal Investigations; IRS Criminal Investigation; Homeland Security Investigations, United States Customs and Border Protection; and the United States Postal Inspection Service are investigating this matter, with assistance from the California Department of Justice. This investigation was led by the Southern California Drug Task Force (SCDTF), a DEA-led multi-agency task force within the Los Angeles High Intensity Drug Trafficking Area (HIDTA) Program.
Assistant United States Attorneys Brittney M. Harris of the International Narcotics, Money Laundering, and Racketeering Section and Jenna G. Williams of the Corporate and Securities Fraud Strike Force are prosecuting this case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Santa Ana Man Charged with Possession of Machine Guns and Hundreds of Images and Videos of Child Sexual Abuse MaterialRead the Press Release
SANTA ANA, California – An Orange County man was indicted today for allegedly possessing four machine guns and hundreds of images and videos of child sexual abuse material (CSAM) that law enforcement recovered at his home and from a storage unit he rented.
Arthit Tanjapatkul, 43, of Santa Ana, is charged with one count of possession of machineguns and three counts of possession of child pornography.
Tanjapatkul, who was arrested on October 9 in this case and is free on $250,000 bond, is scheduled for arraignment in this case on November 18 in United States District Court in Santa Ana.
According to an affidavit filed on October 8 with the complaint, the investigation into Tanjapatkul began with him selling a regulated military-grade laser to a buyer in March 2023. Law enforcement later learned that the laser had been initially stolen by a military officer who was charged and convicted for his crimes in federal court in North Carolina.
In October 2023, law enforcement searched Tanjapatkul’s home and seized dozens of firearms, including four machine guns. During the same search, agents recovered a cellphone that contained text messages where Tanjapatkul discussed automatic weapons. Law enforcement also recovered a hard drive that contained CSAM.
In July 2024, law enforcement searched a storage unit that Tanjapatkul rented in Santa Ana. In the storage unit, agents found a hard drive containing evidence of knowing possession of a machinegun and child pornography. Law enforcement also found 10 disks containing child pornography. The disks alone contained approximately 79 videos and approximately 831 images containing child sexual abuse material.
The drives and disks contained, among other things, videos and images involving minors under 12 years of age. In the home and storage unit, agents also found dozens of firearms and hundreds of items of military equipment that were initially stolen by the same military officer, according to court documents.
A complaint and an indictment 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, Tanjapatkul would face a statutory maximum sentence of 70 years in federal prison.
The FBI is investigating this matter.
Assistant United States Attorney Kedar S. Bhatia of the General Crimes Section is prosecuting this case.
Santa Fe Springs Man Sentenced to Prison for Submitting Fake Online Tips Claiming Others Planned Attacks on Military FacilitiesRead the Press Release
LOS ANGELES – A Santa Fe Springs man has been sentenced to 12 months and one day in federal prison for reporting eight online tips to the United States Department of Defense (DOD) falsely claiming that certain women were about to perpetrate mass-casualty attacks at U.S. military facilities in Los Angeles and Orange counties, the Justice Department announced today.
Daniel Sandoval, 29, was sentenced Monday by United States District Judge Stephen V. Wilson.
Sandoval pleaded guilty on February 12 to one count of false information and hoaxes.
According to his plea agreement, on March 21, 2021, Sandoval knowingly provided an online tip to the DOD reporting system that falsely stated that a woman – identified in court documents as “S.C.” – was planning to detonate bombs in a “mass attack” at a U.S. Navy weapons facility located in Seal Beach. According to Sandoval’s tip, the attack would involve “blowing up military vehicles stationed there and civilian personnel vehicles.”
During the following two days, Sandoval made seven more online tips to the DOD, falsely identifying additional women who purportedly posed threats. For example, on March 22, 2021, Sandoval provided an online tip to the DOD that falsely stated a woman – identified in court documents as “S.H.” – and others planned to detonate bombs at a U.S. military hospital located in Bell Gardens.
On March 23, 2021, Sandoval provided a false online tip to the Defense Department that falsely stated a woman – identified in court documents as “L.E.” – and others were planning to bomb and conduct a mass shooting at a U.S. Army Reserve Center in South El Monte.
Sandoval admitted in his plea agreement that his conduct substantially disrupted public and government functions and services, including the evacuation of personnel from a Navy building due to the false tip.
“[Sandoval’s] unlawful conduct harmed not only the military bases he targeted and the personnel living or working on those bases, but also harmed the innocent women who he claimed were perpetrating these dangerous threats,” prosecutors argued in a sentencing memorandum.
The FBI’s Los Angeles Joint Terrorism Task Force conducted the investigation in this matter.
Assistant United States Attorneys Alexander H. Tran of the General Crimes Section and James A. Santiago of the International Narcotics, Money Laundering, and Racketeering Section, prosecuted this case.
San Bernardino County Woman and Man Arrested on Indictment Alleging $2.1 Million Scheme to Illegally Get COVID Jobless BenefitsRead the Press Release
RIVERSIDE, California – Two San Bernardino County residents were arrested today on a nine-count federal grand jury indictment alleging they fraudulently obtained more than $2.1 million in COVID-19 pandemic relief funds by submitting more than 120 fraudulent applications for unemployment insurance (UI) benefits using stolen identities, including those of California state prisoners.
Lisa Puente, 43, of Rialto, and Arthur Marquez, 53, of San Bernardino, were arraigned this afternoon in United States District Court in Riverside.
Both defendants are charged with six counts of mail fraud and one count of use of unauthorized access devices. Puente and Marquez also each are charged with one count of aggravated identity theft.
Puente and Marquez pleaded not guilty to the charges against them, and a December 30 trial date was scheduled. A federal magistrate judge ordered Puente released on $20,000 bond and ordered Marquez released on $10,000 bond.
According to the indictment returned on October 9 and unsealed today, from February 2020 to August 2023, Puente and Marquez filed with the California Employment Development Department (EDD) fraudulent applications for UI benefits in the names of other people. EDD administers California’s unemployment benefits program. The other people included individuals who did not qualify for UI because they were incarcerated in California state prisons and people whose personal identifying information (PII) was used without their permission.
The fraudulent applications falsely stated that they were individuals whose employment had been negatively affected by the COVID-19 pandemic, which triggered eligibility for UI benefits under federal law. The applications also falsely stated that the named claimants resided and had worked in California. In fact, most identity theft victims in this scheme did not live in California. The applications also used false mailing addresses, bogus prior annual income information, and that the named claimants were unemployed self-employed individuals whose employment was adversely impacted by COVID-19.
As a result of the bogus UI applications that Puente and Marquez filed, EDD authorized Bank of America to issue debit cards in the names of dozens of victims and straw claimants. Once in possession of the debit cards, the defendants withdrew the UI benefits loaded onto the debit cards by making cash withdrawals at ATMs and bank branches and by using the debit cards to buy items sold at businesses.
In total, Puente and Marquez causing at least 124 fraudulent applications for UI benefits to be filed, causing losses to EDD and the United States Treasury of approximately $2,136,768.
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, the defendants would face a statutory maximum sentence of 20 years in federal prison for each mail fraud count, up to 10 years in federal prison for the unauthorized access device count, and a mandatory two-year consecutive prison sentence for the aggravated identity theft count.
The United States Department of Labor Office of Inspector General; the California Employment Development Department Investigation Division; Homeland Security Investigations; the U.S. Department of Homeland Security Office of Inspector General; the California Department of Corrections and Rehabilitation Special Service Unit; the United States Secret Service; the U.S. Social Security Administration Office of Inspector General; and the United States Postal Inspection Service are investigating this matter.
Assistant United States Attorney Mitchell M. Suliman of the Riverside Branch Office 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. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
On September 15, 2022, the Attorney General selected the U.S. Attorney’s Offices for the Central and Eastern Districts of California to jointly head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. The Strike Force combines law enforcement and prosecutorial resources and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors, as well as those who committed multiple instances of pandemic relief fraud. The Strike Force uses prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds. Additional information regarding the Strike Force may be found at https://www.justice.gov/opa/pr/justice-department-announces-covid-19-fraud-strike-force-teams.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Former Mexico City Resident Who Oversaw International Drug Money Laundering Conspiracy Sentenced to More Than 7 Years in PrisonRead the Press Release
LOS ANGELES – The lead defendant in a criminal case who oversaw a money laundering conspiracy that moved millions of dollars in narcotics-related funds from the United States to international drug trafficking organizations was sentenced today to 87 months in federal prison.
Daniel Shaun Zilke, 49, a.k.a. “The Englishman,” most recently a resident of Mexico City, was sentenced by United States District Judge R. Gary Klausner, who also ordered him to pay $150,000 in restitution to the Drug Enforcement Administration (DEA) and fined him $50,000.
Zilke pleaded guilty in December 2023 to conspiracy to aid and abet drug distribution, conspiracy to launder money, and obstruction of an official government proceeding for stealing and attempting to cover up the theft of $150,000 in DEA undercover funds. Zilke has been in federal custody since May 2023.
Federal prosecutors have secured two other convictions in this case. Gustavo Adolfo Aldana-Martinez, 58, of Pico Rivera, is serving a four-year prison sentence and was fined $25,000 after a jury in December 2023 found him guilty of money laundering conspiracy to conceal drug proceeds. Jeffrey Mark Thompson, 63, of Dallas, Texas, pleaded guilty in November 2023 to conspiracy to aid and abet drug distribution, money laundering conspiracy, and concealment money laundering of drug trafficking proceeds and is awaiting sentencing when he will face up to life imprisonment.
Beginning in 2015 and continuing until approximately February 2020, Zilke laundered money on behalf of drug trafficking organizations. According to court documents, the investigation into Zilke’s operation started in late 2015 when an undercover DEA agent posing as a money launderer contacted Zilke. When he pleaded guilty, Zilke admitted telling the undercover “he had a client in Europe who needed hundreds of millions of dollars moved to Mexico, and that he could use the bank account of a charity in Dallas, Texas to assist in laundering the money.”
The undercover agent agreed to assist Zilke by allowing him to use bank accounts associated with cash-intensive businesses. Subsequently, Zilke and his associates arranged numerous pickups of large sums of cash from drug traffickers in cities all over the country, funds that were deposited at Zilke’s direction into various bank accounts, including one controlled by Aldana-Martinez and another in the name of a purported charity, Peace Through Water Foundation.
Zilke and other co-conspirators each earned a commission that was a percentage of the amount laundered through their respective accounts, according to court documents.
During the investigation, Zilke approached the DEA in 2019 and offered his cooperation to expose the money laundering organization. After being made a cooperator and agreeing to always be truthful, Zilke received $200,000 in official government funds to be delivered to defendant Thompson. The intent was for Thompson to launder the money through his bank accounts and return the money to DEA undercover accounts. However, approximately two weeks after the cash delivery, Zilke returned to Thompson’s residence and took back $150,000 without telling the DEA agents. After this theft of government funds, he repeatedly lied to the agents about the money and made excuses for why it was taking so long to receive the wire transfers for the full $200,000.
DEA Seattle and DEA San Ysidro investigated this matter.
Assistant United States Attorney Julie J. Shemitz of the International Narcotics, Money Laundering, and Racketeering Section is prosecuting this case.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Two Riverside County Brothers Sentenced to Prison for $2.1 Million Mail Insurance Scam that Defrauded United States Postal ServiceRead the Press Release
LOS ANGELES – Two Temecula brothers were sentenced today to federal prison for defrauding the United States Postal Service (USPS) out of more than $2.1 million by filing thousands of fraudulent Priority Mail insurance claims.
Anwer Fareed Alam, 36, and Yousofzay Fahim Alam, 34, each were sentenced to 27 months in prison by United States District Judge Wesley L. Hsu, who also ordered them to jointly pay $2,135,739 in restitution.
Both Alam brothers pleaded guilty on February 16 to one count of mail fraud.
From October 2016 to May 2019, the Alam brothers purchased from the USPS Priority Mail packages and postages that included $100 in insurance for lost or damaged parcel contents. Anwer Alam wrapped empty packages or packages containing little or no value and then sent them via Priority Mail to fake recipients at fictitious addresses.
Yousofzay Alam then submitted to USPS fraudulent insurance claims via the Postal Service’s website and falsely certified that the packages contained items of higher value than they did and lied that the packages were lost or had been damaged in transit. Yousofzay Alam also included false invoices as well as photographs of goods that were not actually inside the parcels. The Alam brothers used aliases and fake business names to hide the number of false insurance claims they submitted.
Relying on the false information in the fraudulent insurance claim forms, USPS issued checks to the Alam brothers to cover their purported losses up to $100 in value plus the cost of shipping. USPS sent the insurance claim checks by mail to the Alam brothers to various addresses in Temecula, which included their home addresses, their business addresses, and approximately 15 different post office boxes at two different post offices. The brothers then deposited the fraudulently obtained funds into their bank accounts.
For example, in November 2018, the Alam brothers fraudulently caused to be sent in the mail via USPS a $106.59 Priority Mail claim check, which was mailed to a business address in Temecula.
The total loss caused to USPS through this scheme was approximately $2,135,739.
The United States Postal Service Office of Inspector General investigated this matter.
Assistant United States Attorney Courtney N. Williams of the Riverside Branch Office prosecuted this case.
L.A. Fashion District Wholesaler and Two of Its Executives Found Guilty of Money Laundering and Avoiding Tariffs and TaxesRead the Press Release
LOS ANGELES – A wholesale clothing importer located in the Fashion District of downtown Los Angeles and two of its executives have been found guilty by a jury of avoiding the payment of more than $8 million in customs duties on imported clothing, and of running a scheme in which the company laundered money and failed to report on tax returns more than $17 million derived from cash transactions, the Justice Department announced today.
At the conclusion of a six-week trial, a federal jury on late Tuesday found the following defendants guilty of dozens of felonies:
- C’est Toi Jeans, Inc. (CTJ), which imported apparel from China and other nations and exported clothing to customers in Mexico, Central America, and South America;
- Si Oh Rhew, 70, of La Cañada Flintridge, CTJ’s president and a 75% owner of the company; and
- Lance Rhew, 37, of downtown Los Angeles, Si Oh Rhew’s son, a CTJ corporate officer, and the owner of another Los Angeles-based company called GLLR Inc. that did business as CTJ.
The jury found CTJ and Si Oh Rhew guilty of two conspiracies and multiple counts of failure to file report of currency transaction over $10,000 in a trade or business. The jury also found all three defendants guilty of three counts of entry of falsely classified goods, three counts of entry of goods by means of false statements, three counts of passing false and fraudulent papers through a customhouse, and two counts of international promotional money laundering.
CTJ was found guilty of an additional two concealment money laundering counts involving drug proceeds. Si Oh Rhew was found guilty of an additional two counts of aiding, assisting, and procuring the filing of a false tax return. Lance Rhew was found guilty of one additional count of aiding, assisting, and procuring the filing of a false tax return. Lance Rhew was also found guilty of one conspiracy count.
“Money laundering is the lifeblood of large-scale drug trafficking, and it is therefore essential that we go after businesses and individuals that feed criminal organizations the money they crave,” said United States Attorney Martin Estrada. “A jury found this corporation facilitated the laundering of drug proceeds and now they will appropriately be held accountable. Together with our law enforcement partners, my office will continue to bring to justice businesses that facilitate criminal activity.”
“This verdict once again demonstrates that working with drug trafficking organizations is a bad business model,” said Homeland Security Investigations Los Angeles Special Agent in Charge Eddy Wang. “This verdict should send a strong message to those who utilize their businesses to aid the cartels, that the HSI Los Angeles-led El Camino Real Financial Crimes Task Force and partners at U.S. Customs and Border Protection, and the IRS Criminal Investigation, will work tirelessly to hold you accountable.”
According to evidence presented at trial, CTJ was a business owned by Si Oh Rhew and his wife that the Rhews operated. CTJ received U.S. currency in bulk cash that was derived from drug trafficking as payment for customer invoices. Those funds were delivered to CTJ by money couriers unrelated to and unknown to CTJ or to the customers whose invoices were being paid.
CTJ and Si Oh Rhew failed to file currency transaction reports, which are required for any transaction involving more than $10,000 in cash, and the defendants concealed the cash receipts from an accountant who prepared their taxes, which led to the fraudulent omission of more than $17 million in gross sales from tax returns filed with the IRS.
The defendants also avoided customs duties and tariffs by purchasing garments from overseas manufacturers, including from China, but then submitting false information to United States Customs and Border Protection (CBP) that understated the true value of the items being imported into the United States.
As a result, the import duties owed on the shipments were lowered. The indictment alleges that the defendants sent 515 individual wire transfers totaling $137,156,726 to pay overseas suppliers for undervalued garments. Overall, CTJ imported goods that were undervalued by more than $51 million, causing approximately $8.4 million in unpaid tariffs and duties that should have been paid to CBP.
The jury found the defendants not guilty of several additional criminal counts, including – for CTJ – two counts of concealment money laundering and – for Lance Rhew – several counts of failure to file a report of a currency transaction in a nonfinancial trade or business.
United States District Judge Mark C. Scarsi scheduled a sentencing hearing for January 21, 2025, at which time the Rhews will each face a sentence of decades in federal prison and CTJ will face fines of as much as $100 million.
This case was investigated by Homeland Security Investigations and IRS-Criminal Investigation. They were aided by U.S. Customs and Border Protection, the Monterey Park Police Department, the El Segundo Police Department, the Long Beach Police Department, the Los Angeles Police Department, the Gardena Police Department, and the West Covina Police Department.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation known as Operation Fashion Police. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
The investigation was conducted by the HSI-led El Camino Real Financial Crimes Task Force, a multi-agency task force that includes federal and state investigators who are focused on financial crimes in Southern California.
Assistant United States Attorneys MiRi Song, Julie J. Shemitz, and Skyler F. Cho of the International Narcotics, Money Laundering, and Racketeering Section are prosecuting this case.
3 SoCal Men Arrested for Allegedly Purchasing via False Statements More Than 120 Firearms in Utah and Illegally Reselling Them in CaliforniaRead the Press Release
LOS ANGELES – Three Southern California men were arrested today on a federal criminal complaint alleging they frequently made short trips to Utah to purchase more than 120 firearms there then illegally sold them in California without a firearms-dealing license and repeatedly lied on federal firearms sales forms while doing so.
Manuel Ivan Sanchez, 37, of Helendale, Ricardo Amezcua, 45, of South Gate, and Fernando Nava, 35, of Hemet, are charged with conspiracy.
The defendants are expected to make their initial appearance this afternoon in United States District Court in downtown Los Angeles.
“Illegally sold guns often end up being used in violent crime and other serious offenses,” said United States Attorney Martin Estrada. “It is imperative to protecting our community that we aggressively prosecute those who put all of us at risk by illegally trafficking in firearms.”
According to an affidavit filed on October 23 with the complaint, from November 2022 to July 2024, the defendants frequently made short trips to Utah to purchase firearms – including various pistols and semiautomatic rifles – from licensed firearms dealers. When the defendants bought these firearms in Utah, they lied to the dealers by falsely listing on federal forms that they were Utah residents when, in fact, they resided in California.
Listing a Utah residence was important because Utah-based licensed firearms dealers generally cannot sell firearms to California residents. To buy the guns anyway, each defendants obtained either a Utah driver’s license or ID card listing a Utah address. They then used these fraudulently obtained cards to buy guns from Utah-based licensed firearms dealers.
In addition, from January 2023 to August 2023, Sanchez purchased approximately 81 firearms through an informal Utah-based online gun exchange. In these transactions, Sanchez found individuals listing firearms for sale, messaged them to negotiate a price, and then met in person with the individuals at various locations throughout Utah. In at least one of the transactions, Sanchez coordinated the purchase of the firearm via text message, and Amezcua met with the seller to buy the firearm.
Sanchez then advertised the firearms that he bought for sale to other people at marked-up prices. In some cases, Sanchez advertised the guns to a middleman who was dealing guns to yet other people. At no time during the investigation has Sanchez, Amezcua or Nava possessed a license to deal firearms.
The defendants purchased approximately 123 firearms during the conspiracy – 42 from Utah-based licensed firearms dealers and 81 from the online gun exchange.
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 defendants would face a statutory maximum sentence of five years in federal prison.
The Bureau of Alcohol, Tobacco, Firearms and Explosive is investigating this matter.
Assistant United States Attorney Kedar S. Bhatia of the General Crimes Section is prosecuting this case.
Los Angeles Attorney Pleads Guilty to Federal Charge for Willfully Evading Payment of More Than $4 Million in Income Tax over Two DecadesRead the Press Release
LOS ANGELES – Milton C. Grimes, a long-time Los Angeles lawyer, pleaded guilty today to evading the payment of more than $4 million in federal taxes over a 21-year period.
Grimes pleaded guilty to one count of tax evasion relating to his 2014 taxes, admitting that he failed to pay $1,690,922 to the IRS.
According to his plea agreement, Grimes did not pay federal income taxes due for 23 years, 2002 through 2005, 2007, 2009 through 2011, and 2014 through 2023 – a total of $4,071,215 owed to the IRS. Grimes also admitted he did not file a 2013 tax return with the IRS.
From at least September 2011, the IRS attempted to collect Grimes’ taxes by issuing more than 30 levies on his personal bank accounts. However, from at least May 2014 to April 2020, Grimes willfully evaded the payment of the outstanding income tax owed to the IRS by not depositing income he earned from his clients into his personal bank accounts that were subject to levy.
Instead, Grimes purchased approximately 238 cashier’s checks totaling $16 million to keep the money out of the reach of the IRS. Grimes would routinely purchase cashier’s checks and withdraw cash from his client trust account, his Interest on Lawyers’ Trust Accounts (IOLTA), and his law firm’s bank account, rather than pay the IRS.
For example, on December 5, 2018, Grimes purchased nine cashier’s checks worth approximately $1,001,961, following the deposit of the same amount and on the same date into his IOLTA bank account.
United States District Judge Stanley Blumenfeld Jr. scheduled a February 11, 2025, sentencing hearing, at which time Grimes will face a statutory maximum sentence of five years in federal prison. Prosecutors have agreed to seek a prison sentence of no more than 22 months for Grimes.
IRS Criminal Investigation investigated this matter.
Assistant United States Attorneys Valerie L. Makarewicz and Sarah S. Lee of the Major Frauds Section and Trial Attorney Sara E. Henderson of the Justice Department’s Tax Division are prosecuting the case.
L.A.-Based Federal Prosecutors to Monitor Seven California Counties During November 5 General Election PeriodRead the Press Release
LOS ANGELES – United States Attorney Martin Estrada announced today that Assistant United States Attorneys Thomas F. Rybarczyk and Anna P. Boylan will lead the efforts of his office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 5 general election.
Rybarczyk has been appointed to serve as the District Election Officer (DEO) for the Central District of California, which is comprised of the counties of Los Angeles, Orange, Riverside, San Bernardino, Ventura, Santa Barbara, and San Luis Obispo. In that capacity, he is responsible for overseeing the district’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington, D.C.
“The right to vote is fundamental to our democracy,” said United States Attorney Martin Estrada. “My office will be vigilant in upholding the ability of each citizen to vote freely and fairly – without interference or discrimination. Likewise, election officials and staff must be able to work in safety. We will continue our tireless efforts to safeguard our nation’s elections.”
The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. In the months leading up to the election, the United States Attorney’s Office has been leading a working group that includes county voting officials and law enforcement leaders to coordinate our protective efforts and ensure a swift and effective response to any election-related security issues and threats. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.
Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).
To respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, DEO Rybarczyk and AUSA Boylan will be on duty in this district while the polls are open.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (310) 477-6565.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, D.C. by complaint form at https://civilrights.justice.gov or by phone at (800) 253-3931.
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
Romanian Man Pleads Guilty for Role in Scheme to Steal Identities of Victims on Public Assistance to Fraudulently Obtain EBT FundsRead the Press Release
LOS ANGELES – A Romanian man pleaded guilty today to his role in a scheme that involved using illegal skimmers on ATMs to harvest data, creating counterfeit debit cards using the stolen account holders’ information, and then using the cards to make cash withdrawals from numerous victims’ accounts.
Sorin-Miguel Ghiorghe, 46, of the Fairfax district of Los Angeles, pleaded guilty to one count of conspiracy to commit bank fraud, three counts of bank fraud, one count of aggravated identity theft, one count of possession of 15 or more unauthorized access devices, and one count of possession of device-making equipment.
Ghiorghe – whom prosecutors believe illegally entered the United States – admitted that he and his accomplices used counterfeit cards to fraudulently make withdrawals from the accounts of numerous victims, and that he specifically used the counterfeit cards to withdraw thousands of dollars from victims’ accounts.
According to the indictment, the skimming ring focused on illegally accessing funds administered by the California Department of Social Services to low-income California residents through Electronic Benefit Transfer (EBT) accounts, including CalFresh and CalWorks benefits. When law enforcement searched the apartment Ghiorghe was living in, they located ATM-skimming equipment and EBT account numbers in other peoples’ names.
United States District Judge John F. Walter scheduled a January 6, 2025, sentencing hearing, at which time Ghiorghe will face a statutory maximum sentence of 30 years in federal prison for each bank fraud count, up to 10 years in federal prison for the unauthorized access devices and device-making equipment counts, and a mandatory two-year prison sentence consecutive to his underlying sentence for the aggravated identity theft count.
The United States Secret Service investigated this case and received significant assistance from the Los Angeles Police Department.
Assistant United States Attorney Max A. Shapiro of the General Crimes Section is prosecuting this case.
Mexican Nationals – Brother and Sister – Found Guilty of Kidnapping Victim in Mexico Then Traveling to U.S. to Collect Ransom PaymentRead the Press Release
LOS ANGELES – A brother and sister from Rosarito, Mexico, were found guilty by a jury today for their roles in a kidnapping and ransom scheme in which the brother pretended to act as an intermediary between the victim’s family and the kidnappers while his son and sister crossed the border into the United States to collect the ransom money.
Mario Alex Medina, 54, a.k.a. “Shyboy,” and María Alejandra Medina, 51, were found guilty of one count of conspiracy to commit hostage taking and one count of conspiracy to demand a ransom payment. Mario Medina also was found guilty of one count of making a foreign communication with intent to extort.
“These defendants subjected their victim and his family to a terrifying ordeal in order to illegally profit,” said United States Attorney Martin Estrada. “Such callous disregard for others and cavalier use of violence cannot and will not be tolerated. These defendants will now appropriately face justice for their crimes.”
José Salud Medina, 31, a.k.a. “Gordo,” who is Mario Medina’s son and María Medina’s nephew, is in Mexican custody on unrelated charges. He is expected to be tried separately in this case, in which he is charged with one count of conspiracy to commit hostage taking, one count of conspiracy to demand a ransom payment, and one count of making a foreign communication with intent to extort.
According to evidence presented at a four-day trial, on November 5, 2022, Mario Medina directed and helped accomplices break into the house of a neighbor, identified in court documents as “R.V.,” kidnapping the victim at gunpoint, pistol whipping him and firing a gun near his head. The next day, one of the co-conspirators placed a ransom call to the victim’s family in Los Angeles County and demanded $70,000 for his release. The kidnappers, through WhatsApp, also sent a video of the victim being beaten.
On November 10, 2022, an accomplice called R.V.’s family and threatened to kill R.V. if his family did not pay $30,000. Later that day, Mario Medina – pretending to be an intermediary between R.V.’s family and the hostage takers – told the victim’s family to meet at a McDonald’s restaurant in San Ysidro, located north of the U.S.-Mexico border, to make the ransom payment.
José and María Medina met the victim’s family the next day at the McDonald’s restaurant, collected the $30,000 ransom payment from the victim’s family, and took the money back to Mexico.
The hostage takers on November 11, 2022, then left R.V. tied up and alone in a small, subterranean trench, where Mexican law enforcement rescued him later that day.
United States District Judge Stephen V. Wilson scheduled a February 3, 2025, sentencing hearing, at which point Mario and María Medina 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 investigated this matter.
Assistant United States Attorneys Jena A. MacCabe and Derek R. Flores of the Violent and Organized Crime Section, and Michael J. Morse of the Public Corruption and Civil Rights Section are prosecuting this case.
Chicago Rapper Lil Durk Arrested on Complaint Alleging He Ordered Murder Attempt that Resulted in Fatal Shooting Near Beverly CenterRead the Press Release
LOS ANGELES – A Grammy Award-winning Chicago rapper has been arrested on a federal criminal complaint alleging he conspired with others to murder a rival rapper, resulting in a shooting and murder that took place at a gas station near the Beverly Center shopping mall in Los Angeles in August 2022 – an attack that resulted in a family member of the rival being shot and killed, the Justice Department announced today.
Durk Banks, 32, a.k.a. “Lil Durk,” was arrested near Miami International Airport late Thursday on a complaint charging him with conspiracy to use interstate facilities to commit murder-for-hire resulting in death.
He made his initial appearance this afternoon in United States District Court for the Southern District of Florida and remains in federal custody. His arraignment is expected to occur in Los Angeles federal court in the coming weeks.
“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.”
According to the complaint filed Thursday night, Banks is the leader of the Chicago-based rap collective known as “Only the Family” or “OTF.” Law enforcement believes OTF also acts as a group of individuals who engage 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 mall. The co-conspirators 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.
On Thursday morning, federal and local law enforcement in the Chicago area arrested Grant and four other defendants charged in a four-count federal grand jury indictment alleging their roles in the murder-for-hire plot. After law enforcement made the arrests and executed search warrants in Chicago, the FBI learned that Banks had been booked on three international flights scheduled to leave the United States on Thursday. When banks arrived near one of the departing airports – in Miami, specifically – law enforcement personnel arrested him.
In additional to Grant, the defendants charged in the separate indictment, which a grand jury returned on October 17, are:
- 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.
These four defendants along with Grant are 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.
These defendants made their initial appearances on Thursday in the Northern District of Illinois and are expected to be arraigned in United States District Court in downtown Los Angeles in the coming weeks.
A complaint and indictment 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, Banks and the five defendants charged in the separate indictment each 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 General Crimes Section and Daniel H. Weiner of the International Narcotics, Money Laundering, and Racketeering Section are prosecuting this case.
Whittier Man Pleads Guilty to Operating Illegal Firearms Business and Arranging the Armed Robbery of Confidential InformantRead the Press Release
LOS ANGELES – A Whittier man pleaded guilty today to arranging the armed robbery of a confidential federal informant and running an unlicensed firearm dealing business that, in part, sold so-called “ghost guns,” or guns lacking serial numbers.
Salvador Lopez, 24, a.k.a. “Chava,” pleaded guilty to one count of armed robbery of money of the United States using a dangerous weapon and one count of engaging in the business of dealing firearms without a license.
“This defendant not only sold guns illegally, putting firearms on the streets where they could be used to hurt others, but he also directed a minor to engage in violent crime,” said United States Attorney Martin Estrada. “Now, this defendant will be held accountable. Those who would engage in violent gun crime should be aware that my office is laser focused on protecting our community by bringing violent criminals to justice.”
According to his plea agreement, Lopez conspired with his codefendants to conduct firearms transactions. Lopez both sold firearms himself, sent pictures of firearms for sale to others who sold the firearms, and directed associates to sell firearms for him. In total, Lopez sold or helped to sell a total of 15 firearms to law enforcement agents and those working for them. Neither defendant Lopez nor his co-defendants are federal firearms licensees.
Later, Lopez agreed to sell firearms to a confidential informant working for federal law enforcement. Instead of following through with the transaction, Lopez messaged a minor with instructions to rob the informant at gun point. The minor and his coconspirators not only robbed the informant of $5,000, but they also robbed the informant’s personal cellphone and vehicle. Lopez then received a share of the robbery proceeds.
As part of the plea agreement, Lopez admitted that he instructed minor to threaten the informant with a firearm during the robbery.
United States District Judge Percy Anderson scheduled a January 6, 2025, sentencing hearing, at which time Lopez will face a statutory maximum sentence of 30 years imprisonment.
Ivan Quintos, 27, of Azusa, another defendant charged in this case, also pleaded guilty today to one count of firearms trafficking. He will face up to 15 years in federal prison at his February 3, 2025, sentencing hearing.
The two remaining defendants charged in this case – Mark Perez, 22, of Henderson, Nevada; and Zachary Dry, 23, also of Henderson, Nevada – are scheduled to plead guilty to criminal charges in this case on October 25 and October 30, respectively.
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; the Baldwin Park Police Department; and the Los Angeles Police Department investigated this matter.
Assistant United States Attorney William M. Larsen of the General Crimes Section is prosecuting this case.
Two Inland Empire Women Arrested on Indictment Alleging $3.5 Million Scheme to Defraud COVID-19 Business Loan ProgramRead the Press Release
RIVERSIDE, California – Two Riverside County women were arrested today on a 23-count federal grand jury indictment alleging they and two men schemed to defraud a COVID-19 pandemic-relief program out of more than $3 million by helping others fraudulently obtain COVID business loans in exchange for a cut of the illicit proceeds.
Vanessa M. Williams, 35, of Corona,and Denise Mata, 34, of Moreno Valley, were arrested this morning and are scheduled to be arraigned this afternoon in United States District Court in Riverside.
Williams and Mata are charged with nine and 10 counts of wire fraud, respectively. Mata is charged with an additional count of aggravated identity theft. Also charged in the indictment are Daryl D. Knighten Jr., 32, and Mikhail G. Hoalim, 33, who face seven and nine counts of wire fraud, respectively. Law enforcement continue to search for both men.
According to the indictment that a grand jury returned on August 14, from March 2021 to August 2021, the defendants submitted and caused to be submitted fraudulent Paycheck Protection Program (PPP) loans for themselves, family members, close associates, and individuals they recruited. Congress created the program in 2020 to assist businesses dealing with COVID-19’s severe economic impact.
The defendants made false statements to the U.S. Small Business Administration (SBA) and banks in connection with the fraudulent PPP loan applications. Each application falsely stated that the PPP loan applicant was self-employed and falsely certified that each loan would be used for permissible business purposes. Each loan application also contained fraudulent tax forms to deceive the SBA and PPP participating lenders into disbursing loan funds.
Lenders approved PPP loans for the defendants and more than 100 co-schemers. The lenders then disbursed the PPP loan funds into bank accounts belonging to the defendants and their co-schemers. Co-schemers paid kickbacks to the defendants within days of receiving the fraudulently obtained PPP loan funds.
The defendants and their co-schemers used the illicitly obtained money for their own personal benefit and not for expenses allowable under the PPP. The defendants also submitted fraudulent documents to the SBA and lenders to obtain loan forgiveness for the illegally obtained PPP loans.
In March 2021, Mata allegedly used the Social Security numbers belonging to another person – without that person’s permission – in connection with the scheme to defraud the PPP.
Law enforcement believes the losses caused by this scheme are approximately $3.5 million.
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, each defendant would face a statutory maximum sentence of 20 years in federal prison for each wire fraud count. Mata would face an additional mandatory two-year prison sentence consecutive to any other prison term if convicted of aggravated identity theft.
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. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
On September 15, 2022, the Attorney General selected the U.S. Attorney’s Offices for the Central and Eastern Districts of California to jointly head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. The Strike Force combines law enforcement and prosecutorial resources and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors, as well as those who committed multiple instances of pandemic relief fraud. The Strike Force uses prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds. Additional information regarding the Strike Force may be found at https://www.justice.gov/opa/pr/justice-department-announces-covid-19-fraud-strike-force-teams.
As part of the Pandemic Response Accountability Committee (PRAC) Task Force, this investigation was conducted by Amtrak Office of Inspector General with support from Homeland Security Investigations. The PRAC was established to promote transparency and facilitate coordinated oversight of the federal government’s COVID-19 pandemic response. This case was also supported by the PRAC’s Pandemic Analytics Center of Excellence, which applies the latest advances in analytic and forensic technologies to help OIGs and law enforcement pursue data-driven pandemic relief fraud investigations.
Assistant United States Attorney Max A. Shapiro of the General Crimes Section, along with Senior Litigation Counsel Gary Bell and Trial Attorney Ambris Saravanan from the Department of Justice’s Antitrust Division are prosecuting this case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
17 People Indicted for Conspiring to Steal More Than $2.4 Million in SNAP BenefitsRead the Press Release
PORTLAND, Ore.—17 people are facing federal charges for conspiring to defraud the United States of more than $2.4 million in fraudulent Supplemental Nutrition Assistance Program (SNAP) purchases, announced the U.S. Attorney’s Office for the District of Oregon.
A coordinated, multi-agency law enforcement operation was conducted Tuesday to dismantle the interstate fraud organization that used skimming devices and stolen Electric Benefits Transfer (EBT) accounts to purchase SNAP-eligible products for resale on the black market.
“This group targeted a program that ensures access to healthy and affordable groceries for low-income and food insecure individuals and families,” said Natalie Wight, U.S. Attorney for the District of Oregon. “We thank all our partners for their commitment to protecting the integrity of vital public programs like SNAP.”
“The USDA OIG is working relentlessly with our law enforcement partners to dismantle organized skimming operations targeted at stealing EBT card information from victims relying on such benefits to feed their families. These conspirators used skimmed accounts to fraudulently purchase retail goods such as infant formula and energy drinks, and later resold the stolen goods for illicit gain. We thank the U.S. Attorney’s Office for the District of Oregon, Homeland Security Investigations, Portland Police Bureau, Oregon Department of Justice, and Orange County District Attorney’s Office for our joint effort in pursuing and holding these conspirators accountable for defrauding American families and the Federal Government,” said Special Agent-in-Charge Shawn Dionida, U.S. Department of Agriculture Office of Inspector General (USDA OIG).
“This kind of fraud cheats a system that is designed to help families and children who need assistance the most,” said Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations (HSI) operations in the Pacific Northwest. “Every dollar stolen is a dollar that could have fed a child in need. I’m appreciative of our partnerships with federal and local law enforcement, as it is through investigations like this that we will be able to protect resources for those that rely on them, while making sure those who commit these abuses are held accountable.”
“Our role in this case started with the initiative and extensive follow-up by one of our detectives,” said Portland Police Bureau Chief Bob Day. “He then reached out to our federal partners, and as the investigation grew, more resources were brought in to assist. It soon became very apparent how many people were criminally involved and the wide scope of this investigation. This indictment ultimately was the result of an exhaustive amount of investigative work by our detective and federal authorities and I commend everyone involved for their dedication to this important case.”
The following individuals have been arrested and charged with conspiring to defraud the United States, for their roles in the fraud organization:
Ramirez Dumitru, 25; Giovanni Spirea, 28; Santa-Madalina Costache, 25; Florin Mareata, 25; Anita Vaduva, 36; Ion Paul Miclescu, 19; Nicolas Barbosu, 25; Alberto Tomescu, 27; Oana Aura Cristina Caldararu, 23; Roberta Elena Sardaru, 27; Salvis Foro Dunca, 26; Ana Patricia Escalante, 57; Jessica Gonzalez, 27; Edwin Lionel Santizo-Ralon, 54; Cristina Yesenia Escalante, 33; Edgar Basilio Hernandez, 33; and Marta Hernandez de Estrada, 53.
According to court documents, from August 2023 to October 2024, Ramirez Dumitru and his co-conspirators are alleged to have possessed skimming devices and stolen EBT accounts to illegally purchase items with stolen SNAP benefits. Dumitru shared information with other members of the organization who, along with him, used the stolen EBT accounts to purchase large quantities of infant formula, energy drinks, and other SNAP-eligible nonperishable food items from grocery stores in Oregon, Washington, and California, and through websites associated with grocery stores offering curb-side pickup.
Over the course of the conspiracy, the group purchased more than 120,000 pounds of goods and stored them at residential properties and storage units in Oregon and Washington until they were packaged and transported to California in private vehicles or via commercial carriers. The fraudulent goods, obtained with more than $2.4 million in stolen SNAP benefits, were then sold on the black market.
All seventeen members of the organization were arrested on Tuesday without incident and made their initial appearances in federal court this week before U.S. Magistrate Judges in Oregon, Washington and California. All have been arraigned and are pending a trial in the District of Oregon.
The case was investigated by USDA OIG, HSI, U.S. Marshals Service, Portland Police Bureau, Oregon Department of Justice, Orange County District Attorney’s Office, Vancouver Police Department, San Bernardino Sheriff’s Office, Washington County Sheriff’s Office, Gresham Police Department, and the Redmond, Washington Police Department Financial Fraud and Identification Theft Task Force. It is being prosecuted by Geoffrey A. Barrow and Nicholas D. Meyers, Assistant U.S. Attorneys for the District of Oregon, with assistance from the U.S. Attorney’s Offices for the Western District of Washington and Central District of California.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Santa Maria Man Charged with Weapon of Mass Destruction Offense in Connection with Bomb Attack in Lobby of County CourthouseRead the Press Release
LOS ANGELES – A three-count federal grand jury indictment returned today charges a Santa Barbara County man with committing a bomb attack at a courthouse in Santa Maria in which several people were injured.
Nathaniel James McGuire, 20, of Santa Maria, was charged with one count of using a weapon of mass destruction, one count of maliciously damaging a building by means of explosive, and one count of possessing unregistered destructive devices. McGuire has been in custody since his arrest in September, shortly after the attack.
McGuire’s arraignment is scheduled for October 25 in United States District Court in downtown Los Angeles.
“The facts alleged in the indictment are disturbing,” said United States Attorney Martin Estrada. “The new charge of using a weapon of mass destruction underscores how seriously we are treating this misconduct and my office’s determination to hold accountable those who seek to bring violence upon our courts, law enforcement personnel, and the public.”
“Any time an individual commits such an act of terror, victims are traumatized and there is a potential for tragic consequences” said Akil Davis, Assistant Director in Charge of the FBI Los Angeles Field Office. “If convicted, Mr. McGuire faces significant prison time thanks to the combined efforts of our local and federal law enforcement partners.”
“We are grateful that the FBI and the U.S. Attorney's Office have taken this serious case to the grand jury, and that they have returned an indictment,” said Santa Barbara County Sheriff Bill Brown. “This crime shocked our entire community and we are pleased to see that the suspect in this case is being held accountable.”
According to the indictment and criminal complaint, on September 25, McGuire entered a courthouse of Santa Barbara County Superior Court and threw a bag into the lobby. The bag exploded and McGuire left the courthouse on foot. The explosion injured at least five people who were near the bomb when it exploded.
Shortly thereafter, McGuire was apprehended and detained by law enforcement officials as he was trying to access a red Ford Mustang car parked outside the building. McGuire allegedly yelled that the government had taken his guns and that everyone needed to fight, rise up, and rebel.
Inside the car, a deputy saw ammunition, a flare gun, and a box of fireworks. A search of the car revealed a shotgun, a rifle, more ammunition, a suspected bomb, and 10 Molotov cocktails. Law enforcement later rendered the bomb safe. McGuire told law enforcement he intended to re-enter the courthouse with the firearms in order to kill a judge.
A search of McGuire’s residence revealed an empty can with nails glued to the outside, a duffel bag containing matches, black powder, used and unused fireworks, and papers that appeared to be recipes for explosive material.
An indictment is merely an allegation 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, McGuire would face a mandatory minimum sentence of seven years in federal prison and a statutory maximum sentence of life in federal prison.
The FBI’s Joint Terrorism Task Force, the Santa Barbara County Sheriff’s Office, and Santa Maria Police Department are investigating this matter.
Assistant United States Attorneys Mark Takla and Kathrynne N. Seiden of the Terrorism and Export Crimes Section are prosecuting this case with substantial assistance from Trial Attorney Patrick Cashman of the Counterterrorism Section in the Department of Justice’s National Security Division.
Former School Counselor in Riverside Pleads Guilty to Child Sexual Exploitation Crimes, Including Hiding Cameras Inside BathroomsRead the Press Release
LOS ANGELES – A former counselor at a private school in Riverside County pleaded guilty today to possessing child sexual abuse material (CSAM) and placing a hidden camera inside bathrooms to film boys using the toilet and showers.
Matthew Daniel Johnson, 34, of Bryan, Texas, pleaded guilty to one count of production of child pornography and one count of possession of child pornography. He was remanded into federal custody after he pleaded guilty.
According to his plea agreement, law enforcement searched Johnson’s home in March 2020 and seized several videos featuring minor boys engaged in sexual activity. The videos depicted victims under the age of 12 and some as young as 3 to 5 years old.
During the search of his residence, Johnson admitted to law enforcement that he had hidden a pen-shaped recording device in a toilet paper holder inside of a school bathroom, across the hall from his office as a school counselor at La Sierra Academy in Riverside.
Inside Johnson’s office, law enforcement found an external hard drive which contained more than 100 video files depicting approximately 62 minors, which were created by Johnson by hiding a recording device inside a bathroom. The recording device was hidden inside a toilet paper roll to capture the genitals of minor boys using the toilet.
Another video file depicted Johnson adjusting a recording device inside a different bathroom at a Junior High School Bible Camp where he was working as a chaperone of children attending the camp. The video file subsequently captured minor boys using the toilet and the shower.
Johnson further admitted to using and employing a minor victim in January 2020 for the purpose of creating a visual depiction of the victim engaging in sexual conduct.
United States District Judge Sherilyn Peace Garnett scheduled a February 5, 2025, sentencing hearing, at which time Johnson will face a mandatory minimum sentence of 15 years in federal prison and up to 50 years in federal prison.
The Fontana Internet Crimes Against Children Task Force, Riverside Police Department, and the FBI investigated this matter.
Assistant United States Attorney Sonah Lee of the Riverside Branch Office is prosecuting this case.
California Man Charged with Weapon of Mass Destruction Offense in Connection with Bomb Attack in Lobby of County CourthouseRead the Press Release
A three-count federal grand jury indictment was returned today charging Nathaniel James McGuire, 20, of Santa Maria, California, with committing a bomb attack at a courthouse in Santa Maria in which several people were injured. McGuire’s arraignment is scheduled for Oct. 25 in the Central District of California.
According to the indictment and criminal complaint, on Sept. 25, McGuire entered a courthouse of Santa Barbara County Superior Court and threw a bag into the lobby. The bag exploded and McGuire left the courthouse on foot. The explosion injured at least five people who were near the bomb when it exploded.
Shortly thereafter, McGuire was apprehended and detained by law enforcement officials as he was trying to access a red Ford Mustang car parked outside the building. McGuire allegedly yelled that the government had taken his guns and that everyone needed to fight, rise up, and rebel.
Inside the car, a deputy saw ammunition, a flare gun, and a box of fireworks. A search of the car revealed a shotgun, a rifle, more ammunition, a suspected bomb, and 10 Molotov cocktails. Law enforcement later rendered the bomb safe. McGuire told law enforcement he intended to re-enter the courthouse with the firearms in order to kill a judge.
A search of McGuire’s residence revealed an empty can with nails glued to the outside, a duffel bag containing matches, black powder, used and unused fireworks, and papers that appeared to be recipes for explosive material.
McGuire was charged with one count of using a weapon of mass destruction, one count of maliciously damaging a building by means of explosive, and one count of possessing unregistered destructive devices. McGuire has been in custody since his arrest in September, shortly after the attack.
If convicted of all charges, McGuire faces a mandatory minimum penalty of seven years in prison and a statutory maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Martin Estrada for the Central District of California, and Executive Assistant Director Robert Wells of the FBI’s National Security Branch announced the case.
The FBI is investigating the case.
Assistant U.S. Attorneys Mark Takla and Kathrynne N. Seiden for the Central District of California are prosecuting this case with substantial assistance from Trial Attorney Patrick Cashman of the National Security Division's Counterterrorism Section.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Orange County Supervisor Agrees to Plead Guilty to Bribery Conspiracy Involving $10 Million in COVID Relief FundsRead the Press Release
SANTA ANA, California – The District One Supervisor on the Orange County Board of Supervisors has agreed to plead guilty to a felony federal charge for accepting more than $550,000 in bribes for directing and voting in favor of more than $10 million in COVID funds to a charity affiliated with one of his daughters, Rhiannon Do, the Justice Department announced today.
Andrew Hoang Do, 62, agreed to plead guilty to one count of conspiracy to commit bribery concerning programs receiving federal funds. His plea agreement and information were filed today. He is expected to make his initial appearance in United States District Court in Santa Ana later this month.
Do is one of five supervisors on the Orange County Board of Supervisors, which is responsible for the county’s $9 billion annual budget. As a county supervisor, Do represents the cities of Cypress, Fountain Valley, Garden Grove, Huntington Beach, La Palma, Los Alamitos, Midway City, Rossmoor, Seal Beach, and Westminster. He has served as a county supervisor since February 2015.
As part of his plea agreement, Do admitted that in exchange for more than $550,000 in bribes, beginning in 2020, he voted in favor of and directed millions of dollars in COVID-related funds to Viet America Society (VAS), a charity affiliated with his daughter. Do directed and worked together with other county employees to approve contracts with – and payments to – VAS. Do further admitted he acted corruptly and abused his position of trust as a county supervisor.
“By putting his own interests over those of his constituents, the defendant sold his high office and betrayed the public’s trust,” said United States Attorney Martin Estrada. “Even worse, the money he misappropriated and accepted as bribe payments was taken from those most in need – older adults and disabled residents. Our community deserved much better. Corruption has no place in our politics and my office will continue to hold accountable officials who cheat the public.”
“While millions of Americans were dying from COVID-19, Orange County Supervisor Andrew Do was the fox in the hen house personified, raiding millions in federal pandemic relief funds and orchestrating the money intended to feed elderly and ailing residents to instead fill the pockets of insiders, himself and his loved ones all while portraying a public persona of a hometown hero guiding his constituents through the uncertainty and fear of a global pandemic,” said Orange County District Attorney Todd Spitzer. “No one is above the law in Orange County and these charges should serve as a powerful warning to elected officials everywhere that actions have consequences and justice will be swift and it will be decisive.”
“Elected officials have a responsibility to implement programs and policy that will benefit all the people they serve. Their role is not to squander money, solicit bribes, or to steer funds to organizations or persons, wherein a coordinated effort allows those funds to make their way to family members or friends,” said Akil Davis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Today's plea is another exclamation point to the FBI's commitment to ensuring that all local, state, or federal elected and appointed public officials perform their duties with honesty, integrity, and commitment to all the constituents they serve.”
Shortly after receiving the COVID-related public funds from the county government – funds that were intended to provide meals to the elderly – VAS from April 2021 to February 2024 paid a business identified in court documents as “Company #1” $100,000 or more per month, which totaled approximately $3,804,000. In September 2021, VAS increased its payments to Company #1 from $100,000 to $108,000 per month. Company #1 then began paying Rhiannon Do – Do’s daughter – $8,000 per month, totaling by February 2024 approximately $224,000.
In his plea agreement, Do admitted that in addition to the $8,000 monthly payments that Company #1 had made to Do’s daughter, in July 2023, Company #1 also transferred a total of $381,500 from the funds it had received from VAS to an escrow company. In July 2023, Do’s daughter used the escrow account funds to purchase a home, in her name, in Tustin for $1,035,000. As part of that transaction, a mortgage for more than $600,000 was obtained by a loan application that contained false information and with fabricated documents. In her related diversion agreement attached as an exhibit to Do’s plea agreement, Do’s daughter admitted her conduct was criminal and violated federal and state law.
Do also admitted that the $381,500 from Company #1 that his daughter had used to purchase the Tustin house in 2023 was a disguised bribe to him. He also admitted that an additional $100,000 in payments sent to his other daughter, including three $25,000 checks from Company #2 – an air conditioning company that had been paid by VAS – also were bribes to him.
Some of the bribe funds that had been funneled to his daughters were spent for his direct benefit. For example, during 2022, a total of $14,849 of funds that had been funneled to Do’s daughters was used to make property tax payments for properties in Orange County owned by Do and his wife. Approximately $15,000 was used to pay for one of Do’s credit card bills.
Do knew that VAS was not providing all the meals for which the county had paid VAS. Instead, much of the funds were used for the benefit of insiders, including to buy real estate in the name of both Do’s daughter and Company #1, bribe payments to both of Do’s daughters, payments to other conspirators, payments to other companies affiliated with VAS’s listed officers, and through hundreds of thousands of dollars in cash withdrawals.
“Mr. Do had a duty to act in the best interest of the citizens of Orange County. He neglected that duty and misused the financial system to enrich himself,” said Special Agent in Charge Ryan Korner with the Federal Deposit Insurance Corp. Office of Inspector General. “Public corruption degrades the public’s confidence in our political system, and FDIC OIG is proud to work alongside our law enforcement partners to identify and hold accountable individuals who abuse public service for private gain.”
“Andrew Do was entrusted to ensure taxpayer dollars were used responsibly and for the purposes intended,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “Instead, when his constituents depended on COVID relief programs, Mr. Do exploited his position on the Orange County Board of Supervisors not only to influence channeling of funds to the Viet America Society, but also to accept bribes that were used to purchase a home, pay property taxes, and even to pay fictitious incomes to family members. Combating public corruption is one of the most important roles federal law enforcement agencies play in our local communities, and we are proud to be a partner during this investigation.”
“Today’s actions shows that this elected official used his position of trust for personal gain. He didn’t think he would get caught. He was wrong,” said Adam Shanedling, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Western Regional Office. “The OIG is proud to have been a part of the task force that investigated this matter and we’ll continue to work with our law enforcement partners to help safeguard the integrity of federal funds.”
The plea agreement requires Do to forfeit any assets connected to the bribery scheme, including the Tustin property his daughter purchased in 2023. As part of his daughter’s related diversion agreement, she also agreed to forfeit the Tustin property. The plea agreement requires Do to pay full restitution by paying back the bribe money he and his daughters received, which he has agreed to pay in full before he is sentenced. In August 2024, the government seized more than $2.4 million from VAS’s and Company #1’s bank accounts.
In a related agreement with the Orange County District Attorney’s Office (OCDA), attached as an exhibit to Do’s plea agreement, Do has agreed to immediately resign from the Orange County Board of Supervisors and to forfeit any pension credit for the time where he participated in the bribery conspiracy.
Once Do enters his guilty plea, he will face a statutory maximum sentence of five years in federal prison.
The FBI; the Orange County District Attorney’s Office Bureau of Investigation; the Federal Deposit Insurance Corp. Office of the Inspector General; IRS Criminal Investigation; and the United States Department of Education Office of the Inspector General investigated this matter.
This matter is being jointly prosecuted by the United States Attorney’s Office and OCDA. The prosecution is being led by Assistant United States Attorneys Charles E. Pell, Bradley E. Marrett, and Tara Vavere of the United States Attorney’s Office and Senior Deputy District Attorney Avery T. Harrison and Deputy District Attorneys Anthony J. Schlehner and L.J. Berger of the OCDA.
Any member of the public who has information related to this or any other public corruption matter in Orange County is encouraged to send information to the FBI’s email tip line at https://tips.fbi.gov and/or to contact the FBI’s Los Angeles Field Office at (310) 477-6565.
Giám Sát Viên Quận Cam đồng ý Nhận Tội âm Mưu Hối Lộ Liên Quan đến 10 Triệu đô La Trong Quỹ Cứu Trợ COVIDRead the Press Release
SANTA ANA, California – Giám Sát Viên Quận Một trong Hội Đồng Giám Sát Quận Cam đã đồng ý nhận tội với một cáo buộc liên bang trọng tội vì đã nhận hối lộ hơn $550,000 để chỉ đạo và bỏ phiếu ủng hộ hơn $10 triệu trong quỹ COVID cho một tổ chức từ thiện liên kết với một trong những cô con gái của ông, Rhiannon Đỗ, Bộ Tư pháp thông báo hôm nay.
Andrew Hoàng Đỗ , 62 tuổi, đã đồng ý nhận tội với một tội danh âm mưu hối lộ liên quan đến các chương trình nhận tài trợ liên bang. Thỏa thuận nhận tội và thông tin của ông ta đã được đệ trình ngày hôm nay. Ông dự kiến sẽ xuất hiện lần đầu tiên tại Tòa án Quận Hoa Kỳ ở Santa Ana vào cuối tháng này.
Đỗ là một trong năm giám sát viên trong Hội đồng Giám sát Quận Cam, chịu trách nhiệm về ngân sách hàng năm 9 tỷ USD của quận. Là giám sát viên quận, Đỗ đại diện cho các thành phố Cypress, Fountain Valley, Garden Grove, Huntington Beach, La Palma, Los Alamitos, Midway City, Rossmoor, Seal Beach và Westminster. Ông đã từng là giám sát viên của quận kể từ tháng 2 năm 2015.
Là một phần của thỏa thuận nhận tội của mình, ông Đỗ thừa nhận rằng để đổi lấy hơn 550.000 USD tiền hối lộ, bắt đầu từ năm 2020, ông đã bỏ phiếu ủng hộ và chuyển hàng triệu đô la trong các quỹ liên quan đến COVID cho Hiệp hội Việt Mỹ (VAS), một tổ chức từ thiện liên kết với con gái ông. Đỗ đã chỉ đạo và làm việc cùng với các nhân viên khác của quận để phê duyệt hợp đồng với - và thanh toán cho - VAS. Đỗ tiếp tục thừa nhận ông ta đã hành động tham nhũng và lạm dụng vị trí tín nhiệm của mình với tư cách là giám sát viên quận.
"Bằng cách đặt lợi ích của mình lên trên lợi ích của các cử tri, bị cáo đã bán chức vụ cao của mình và phản bội lòng tin của công chúng", Bộ Công Tố Hoa Kỳ luật sư Martin Estrada nói. "Tệ hơn nữa, số tiền mà ông ta chiếm đoạt và nhận hối lộ đã bị lấy từ những người cần nhất - người già và người khuyết tật. Cộng đồng của chúng ta xứng đáng được tốt hơn nhiều. Tham nhũng không có chỗ đứng trong nền chính trị của chúng ta và văn phòng của tôi sẽ tiếp tục buộc các quan chức phải chịu trách nhiệm, những người lừa dối công chúng."
"Trong khi hàng triệu người Mỹ đang chết vì COVID-19, Giám sát viên Quận Cam Andrew Đỗ là con cáo trong chuồng gà mái được nhân cách hóa, đột kích hàng triệu đô la trong quỹ cứu trợ đại dịch liên bang và dàn xếp số tiền nhằm nuôi sống những người già và người dân ốm yếu để thay vào đó lấp đầy túi của những người trong cuộc, bản thân và những người thân yêu của ông ta trong khi miêu tả một nhân vật công khai của một anh hùng quê hương hướng dẫn các cử tri của mình vượt qua sự không chắc chắn và sợ hãi của một đại dịch toàn cầu, " Chánh Biện Lý Quận Cam Todd Spitzer nói. " . "Không ai đứng trên luật pháp ở Quận Cam và những cáo buộc này sẽ đóng vai trò như một lời cảnh báo mạnh mẽ cho các quan chức dân cử ở khắp mọi nơi rằng các hành động mang lại hậu quả và công lý sẽ nhanh chóng và nó sẽ mang tính quyết định."
"Các quan chức được bầu có trách nhiệm thực hiện các chương trình và chính sách sẽ mang lại lợi ích cho tất cả những người mà họ phục vụ. Vai trò của họ không phải là phung phí tiền bạc, nhận hối lộ hoặc chuyển tiền cho các tổ chức hoặc cá nhân, trong đó một nỗ lực phối hợp cho phép các quỹ đó đến tay các thành viên gia đình hoặc bạn bè," Akil Davis, Trợ lý Giám đốc phụ trách Văn phòng Los Angeles của FBI cho biết. "Lời kêu gọi hôm nay là một dấu chấm than khác cho cam kết của FBI trong việc đảm bảo rằng tất cả các quan chức địa phương, tiểu bang hoặc liên bang được bầu và bổ nhiệm thực hiện nhiệm vụ của họ với sự trung thực, liêm chính và cam kết với tất cả các cử tri mà họ phục vụ."
Ngay sau khi nhận được các quỹ công liên quan đến COVID từ chính quyền quận - quỹ nhằm cung cấp bữa ăn cho người cao tuổi - VAS từ tháng 4/2021 đến tháng 2/2024 đã trả cho một doanh nghiệp được xác định trong các tài liệu của tòa án là "Công ty # 1" $ 100,000 trở lên mỗi tháng, tổng cộng khoảng $ 3,804,000 USD. Vào tháng 9/2021, VAS đã tăng các khoản thanh toán cho Công ty #1 từ 100.000 USD lên 108.000 USD mỗi tháng. Công ty #1 sau đó bắt đầu trả cho Rhiannon Đỗ - con gái của Đỗ - 8.000 USD mỗi tháng, tổng cộng đến tháng 2/2024 là khoảng 224.000 USD.
Trong thỏa thuận nhận tội của mình, Đỗ thừa nhận rằng ngoài khoản thanh toán hàng tháng 8.000 đô la mà Công ty #1 đã thực hiện cho con gái của Đỗ, vào tháng 7 năm 2023, Công ty #1 cũng đã chuyển tổng cộng 381.500 USD từ số tiền mà họ đã nhận được từ VAS cho một công ty ký quỹ. Vào tháng 7/2023, con gái của ông Đỗ đã sử dụng tiền tài khoản ký quỹ để mua một ngôi nhà đứng tên cô ở Tustin với giá 1.035.000 USD. Trong một phần của giao dịch đó, một khoản thế chấp trị giá hơn 600.000 USD đã được thu thập bởi một ứng dụng cho vay có chứa thông tin sai lệch và với các tài liệu bịa đặt. Trong thỏa thuận chuyển hướng liên quan của mình kèm theo như một vật chứng cho thỏa thuận nhận tội của Đỗ, con gái của Đỗ thừa nhận hành vi của mình là phạm tội và vi phạm luật liên bang và tiểu bang
Ông Đỗ cũng thừa nhận rằng 381.500 USD từ Công ty #1 mà con gái ông đã sử dụng để mua ngôi nhà Tustin vào năm 2023 là một khoản hối lộ trá hình đối với ông. Ông cũng thừa nhận rằng thêm 100.000 USD tiền thanh toán được gửi cho con gái khác của ông, bao gồm ba tấm séc trị giá 25.000 USD từ Công ty # 2 - một công ty điều hòa không khí đã được VAS trả - cũng là hối lộ cho ông.
Một số tiền hối lộ đã được chuyển cho các con gái của ông đã được chi tiêu cho lợi ích trực tiếp của ông. Ví dụ, trong năm 2022, tổng cộng 14.849 USD tiền đã được chuyển cho các con gái của ông Đỗ đã được sử dụng để thanh toán thuế bất động sản cho các tài sản ở Quận Cam thuộc sở hữu của ông Đỗ và vợ. Khoảng 15.000 USD đã được sử dụng để thanh toán cho một trong những hóa đơn thẻ tín dụng của ông Đỗ.
Đỗ biết rằng VAS không cung cấp tất cả các bữa ăn mà quận đã trả cho VAS. Thay vào đó, phần lớn số tiền được sử dụng vì lợi ích của những người trong cuộc, bao gồm mua bất động sản dưới tên của cả con gái Đỗ và Công ty #1, thanh toán hối lộ cho cả hai con gái của Đỗ , thanh toán cho những kẻ âm mưu khác, thanh toán cho các công ty khác liên kết với các cán bộ niêm yết của VAS và qua hàng trăm ngàn đô la bằng cách rút tiền mặt.
"Ông Đỗ có nhiệm vụ hành động vì lợi ích tốt nhất của công dân Quận Cam. Ông ấy đã bỏ bê nhiệm vụ đó và lạm dụng hệ thống tài chính để làm giàu cho bản thân", Đặc vụ phụ trách Ryan Korner thuộc Văn phòng Tổng thanh tra Tập đoàn Bảo hiểm Tiền gửi Liên bang cho biết. "Tham nhũng công cộng làm suy giảm niềm tin của công chúng vào hệ thống chính trị của chúng ta và FDIC OIG tự hào làm việc cùng với các đối tác thực thi pháp luật của chúng tôi để xác định và buộc các cá nhân phải chịu trách nhiệm lạm dụng dịch vụ công vì lợi ích cá nhân."
"Andrew Đỗ được giao nhiệm vụ đảm bảo tiền thuế của người dân được sử dụng một cách có trách nhiệm và đúng mục đích đã định," Đặc vụ phụ trách Tyler Hatcher, Điều tra Hình sự IRS, Văn phòng Los Angeles cho biết. "Thay vào đó, khi các cử tri của ông phụ thuộc vào các chương trình cứu trợ COVID, ông Đỗ đã lợi dụng vị trí của mình trong Hội đồng Giám sát Quận Cam không chỉ để gây ảnh hưởng đến việc chuyển tiền cho Hội Việt Mỹ, mà còn nhận hối lộ được sử dụng để mua nhà, nộp thuế tài sản và thậm chí trả thu nhập hư cấu cho các thành viên gia đình. Chống tham nhũng công cộng là một trong những vai trò quan trọng nhất của các cơ quan thực thi pháp luật liên bang trong cộng đồng địa phương của chúng tôi và chúng tôi tự hào là đối tác trong cuộc điều tra này.
"Hành động hôm nay cho thấy quan chức dân cử này đã sử dụng vị trí tín nhiệm của mình cho lợi ích cá nhân. Ông ta không nghĩ rằng mình sẽ bị bắt. Ông ấy đã sai", Adam Shanedling, Đặc vụ phụ trách Văn phòng khu vực phía Tây của Bộ Giáo dục Mỹ cho biết. OIG tự hào là một phần của lực lượng đặc nhiệm điều tra vấn đề này và chúng tôi sẽ tiếp tục làm việc với các đối tác thực thi pháp luật của mình để giúp bảo vệ tính toàn vẹn của các quỹ liên bang.
Theo sự thỏa thuận nhận tội ông Đỗ sẽ bị tịch thu bất kỳ tài sản nào liên quan đến kế hoạch hối lộ, bao gồm cả tài sản ở Tustin mà con gái ông đã mua vào năm 2023. Là một phần của thỏa thuận chuyển hướng liên quan đến con gái ông, bà cũng đồng ý sự việc tịch thu tài sản ở Tustin. Thỏa thuận nhận tội yêu cầu ông Đỗ phải trả toàn bộ tiền bồi thường bằng cách trả lại số tiền hối lộ mà ông và các con gái đã nhận, và ông đã đồng ý trả đầy đủ trước khi bị kết án. Vào tháng 8/2022, chính phủ đã tịch thu hơn 2.4 triệu USD từ VAS và Công ty #1.
Trong một thỏa thuận liên quan với Văn phòng Biện lý Quận Cam (OCDA), đính kèm như một vật trưng bày cho thỏa thuận nhận tội của Đỗ, Đỗ đã đồng ý từ chức ngay lập tức khỏi Hội đồng Giám sát Quận Cam và tịch thu bất kỳ khoản tín dụng hưu trí nào trong thời gian ông tham gia vào âm mưu hối lộ.
Một khi Đỗ nhận tội, ông ta sẽ phải đối mặt với bản án tối đa theo luật định là năm năm trong nhà tù liên bang.
The FBI; Cục Điều Tra của Văn Phòng Biện Lý Quận Cam; Văn phòng Tổng Thanh tra Tập đoàn Bảo hiểm Tiền gửi Liên bang; Điều tra Hình sự IRS; và Văn phòng Tổng Thanh tra Bộ Giáo dục Hoa Kỳ đã điều tra vấn đề này.
Vấn đề này đang được Bộ Công Tố Hoa Kỳ và Văn phòng Biện Lý Quận Cam cùng truy tố. Việc truy tố đang được dẫn dắt bởi Trợ lý Công Tố Hoa Kỳ Charles E. Pell, Bradley E. Marrett và Tara Vavere của Văn phòng Bộ Công Tố Hoa Kỳ và Phó Biện lý Quận Avery T. Harrison và Phó Biện lý Quận Anthony J. Schlehner và LJ Berger của Văn phòng Biện Lý Quận Cam.
Bất kỳ thành viên nào của công chúng có thông tin liên quan đến vấn đề này hoặc bất kỳ vấn đề tham nhũng công cộng nào khác trong Quận Cam được khuyến khích gửi thông tin đến đường dây email của FBI tại https://tips.fbi.gov và / hoặc liên hệ với Văn phòng Los Angeles của FBI theo số (310) 477-6565.
Van Nuys Man Sentenced to More Than 20 Years in Prison for Trafficking Fentanyl and Cocaine via Darknet Marketplaces and Possessing GunsRead the Press Release
LOS ANGELES – A San Fernando Valley man who admitted in court documents to causing one fatal fentanyl overdose was sentenced today to 248 months in federal prison for using darknet marketplaces to sell hundreds of thousands of dollars’ worth of fentanyl-laced pills and cocaine to buyers nationwide.
Brian McDonald, 23, of Van Nuys, whose aliases include “Malachai Johnson,” “SouthSideOxy,” and “JefeDeMichoacan,” was sentenced by United States District Judge Michael W. Fitzgerald.
McDonald pleaded guilty on July 17 to one count of conspiracy to distribute fentanyl and cocaine, and one count of possession of firearms in furtherance of a drug trafficking crime. He has been in federal custody since May 2023.
“This defendant led a drug-trafficking operation that used the dark corners of the internet to ship large quantities of fentanyl-laced pills – with deadly consequences,” said United States Attorney Martin Estrada. “My office will continue using every tool under federal law to prosecute and imprison criminals who prioritize greed over human life.”
From at least April 2021 until May 2023, McDonald and others conspired to sell fentanyl and cocaine via darknet marketplaces such as “White House Market,” “ToRReZ” and “AlphaBay.” McDonald, using aliases, created vendor profiles on these marketplaces to sell illegal drugs in exchange for cryptocurrency.
McDonald created, monitored, and maintained the darknet vendor profiles, including by updating drug listings and shipment options, tracking drug orders received online, and offloading Monero cryptocurrency received as drug deal payments into cryptocurrency wallets that McDonald controlled.
McDonald recruited and hired accomplices to help with packaging and shipping the narcotics that they sold on the darknet. McDonald directed other co-conspirators on how to package and ship the narcotics, and he assisted them in the packaging and shipping. Specifically, McDonald purchased bulk quantities of fentanyl and cocaine, and then directed the activities of other co-conspirators to help sell these drugs on the dark web.
Among other activities, McDonald directed co-conspirators in receiving and tracking orders placed for fentanyl and cocaine on his dark web vendor profiles, packaging drug orders, and shipping drug orders to customers though the United States Postal Service. Over the course of the conspiracy, McDonald knowingly oversaw and carried out hundreds of drug sales involving the distribution of large quantities of both fentanyl and cocaine, including hundreds of thousands of fentanyl-laced pills that collectively contained more than 12 kilograms of fentanyl.
As part of the conspiracy, McDonald distributed fentanyl-laced pills to victim Z.S., who ingested a fentanyl-laced pill sold to Z.S. by McDonald, which in turn resulted in Z.S.’s death.
McDonald also possessed firearms, specifically two gold-plated handguns – one without a serial number – to protect his drug trafficking business and the proceeds of drug sales made on darknet marketplaces.
Ciara Clutario, 23, of Burbank, has pleaded guilty to a federal criminal charge in this case and is scheduled to be sentenced on January 13, 2025.
The FBI and the Drug Enforcement Administration investigated this matter as part of JCODE. The Justice Department established the FBI-led JCODE team to lead and coordinate government efforts to detect, disrupt, and dismantle major criminal enterprises reliant on the darknet for trafficking opioids and other illicit narcotics, along with identifying and dismantling their supply chains.
Assistant United States Attorney Declan T. Conroy of the International Narcotics, Money Laundering, and Racketeering Section prosecuted this case.
Bell Man Sentenced to More Than 15 Years in Prison for Distributing Illegal Drugs, Including More Than 19,000 Fentanyl-Laced PillsRead the Press Release
LOS ANGELES – A Bell man was sentenced today to 188 months in federal prison for distributing narcotics, including more than 19,000 counterfeit oxycodone pills laced with fentanyl.
Juan Luis Martinez, 48, was sentenced by United States District Judge Mark C. Scarsi.
At the conclusion of a two-day trial, a jury on July 24 found Martinez guilty of one count of conspiracy to distribute fentanyl, one count of distribution of fentanyl, and one count of distribution of methamphetamine.
Martinez in October 2021 met with two women in a parking lot and gave them a plastic bag containing more than 19,000 fentanyl-laced pills, stuffed into a woman’s bra. Law enforcement officers followed the two women as they delivered the bag to three men. Officers then pulled over the car driven by the three men and seized the pills.
In addition, in December 2021, Martinez knowingly sold more than 300 grams of methamphetamine to a buyer.
Martinez has been in federal custody since January 2023.
The Drug Enforcement Administration investigated this matter, with assistance from the Los Angeles County Sheriff’s Department, the Hawthorne Police Department, the Orange Police Department, and the Placentia Police Department.
Assistant United States Attorney Caitlin J. Campbell and Melissa S. Rabbani of the Santa Ana Branch Office prosecuted this case.
16 Defendants Charged in Superseding Indictment Alleging Bulk Shipments of Cocaine to Canada, Four MurdersRead the Press Release
LOS ANGELES – A Canadian former Olympic snowboarder and 15 other defendants have been charged in a 16-count superseding indictment for allegedly running and participating in a transnational drug trafficking operation that routinely shipped hundreds of kilograms of cocaine, from Colombia, through Mexico and Southern California, to Canada and other locations in the United States, and whose leaders orchestrated multiple murders in furtherance of these drug crimes.
Ryan James Wedding, 43, a Canadian citizen residing in Mexico, and Andrew Clark, 34, a Canadian citizen also residing in Mexico, were previously charged in the original indictment with running a continuing criminal enterprise, murder, and conspiring to possess, distribute, and export cocaine. Clark was arrested October 8 by Mexican law enforcement and is detained. Wedding is a fugitive.
The first superseding indictment, unsealed on October 16, names 14 additional co-defendants. The superseding indictment alleges that Wedding, Clark, and others conspired to ship bulk quantities of cocaine – weighing hundreds of kilograms – from Southern California to Canada through a Canada-based drug transportation network run by Hardeep Ratte, 45, of Ontario, Canada, and Gurpreet Singh, 30, of Ontario, Canada, from approximately January 2024 to August 2024. The cocaine shipments were transported from Mexico to the Los Angeles area, where the cocaine trafficking organization’s operatives would store the cocaine in stash houses, before delivering it to the transportation network couriers for transportation to Canada using long-haul semi-trucks.
As alleged in the superseding indictment, the organization resorted to violence – including multiple murders – to achieve its aims. Wedding and Clark allegedly directed the November 20, 2023, murders of two members of a family in Ontario, Canada, in retaliation for a stolen drug shipment that passed through Southern California. Another member of that family survived the shooting but was left with serious physical injuries. Wedding and Clark allegedly also ordered the murder of another victim on May 18, 2024, over a drug debt. Clark and Malik Damion Cunningham, 23, a resident of Canada, are charged with the April 1, 2024, murder of another victim in Ontario, Canada.
Wedding, whose aliases include “El Jefe,” “Giant,” and “Public Enemy,” and who competed for Canada in the 2002 Winter Olympics in Salt Lake City, is the superseding indictment’s lead defendant. Wedding is charged with eight felonies: two counts of conspiracy to distribute controlled substances, one count of conspiracy to export cocaine, one count of leading a continuing criminal enterprise, three counts of murder in connection with a continuing criminal enterprise and drug crime, and one count of attempt to commit murder in connection with a continuing criminal enterprise and drug crime. Clark, whose aliases include “The Dictator,” is charged with the same eight felonies, plus an additional count of murder in connection with a continuing criminal enterprise and drug crime.
“As alleged in the indictment, an Olympic athlete-turned-drug lord is now charged with leading a transnational organized crime group that engaged in cocaine trafficking and murder, including of innocent civilians,” said United States Attorney Martin Estrada. “My office’s mandate is to protect the public and stopping sophisticated and violent organized crime groups goes to the heart of that mission. We will continue to collaborate with our federal, local, and international law enforcement partners to bring these groups to justice.”
“The FBI remains steadfast in its mission to identify, target, and dismantle violent transnational organized crime syndicates in our communities. Today, in collaboration with several local, federal, and international partners, we reaffirm our commitment to the American people by dismantling a violent organized crime network trafficking large quantities of drugs into the United States and orchestrating multiple homicides to eliminate the competition,” said Akil Davis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The organization, led by former Olympian Ryan Wedding, cultivated a violent transnational drug trafficking empire that extended from Canada to the United States, Mexico, and Colombia. While key members of Wedding’s criminal enterprise were successfully apprehended this week, he remains at large. The FBI is offering a reward of up to $50,000 for any information leading to his arrest.”
“Organized Crime groups create immense harm in all our communities, not just with the poisons they ship, but through the tragic violence that inevitably comes with it,” said Liam Price, Royal Canadian Mounted Police’s Director General of International Special Services. “This network presented a threat to communities in Canada, the United States and overseas. That is why we, as Canada’s national police force, worked closely with the FBI and others to disrupt it. This operation demonstrates the value and the impact of close collaboration with amongst international partners to combat transnational organized crime, helping keep our communities safe. We will always look beyond our borders to where these threats originate and try to stop them at source.”
“The Wedding Drug Trafficking Organization and its unremitting, callous and greed-driven crimes has been operating for far too long, spanning several countries, from Colombia through Mexico, the U.S. and to Canada,” said Matthew Allen, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Los Angeles Field Division. “They have triggered an avalanche of violent crimes, including brutal murders. Wedding, the Olympian snowboarder, went from navigating slopes to contouring a life of incessant crimes. DEA and our partners stand firmly in our resolve to dismantle his operation. I want to thank our DEA investigators and all our partners, including the FBI, LAPD, the U.S. Attorney’s Office and the Royal Canadian Mounted Police International for their collaboration, experience and tremendous value that help embolden our mission.”
"This complex investigation spans multiple jurisdictions and agencies, with an alleged retaliation over stolen drugs tragically impacting an innocent family in Ontario, Canada," said Marty Kearns, the Deputy Commissioner of the Ontario Provincial Police. "Today's announcement reflects the tireless months of work undertaken by agencies in both Canada and the United States, as well as support from law enforcement in Mexico and Colombia. This is a testament to how collaboration and investigative diligence cross borders to identify perpetrators and bring crucial answers to victims and their families."
"Today's investigative outcomes stand as a powerful testament to the tireless dedication and collaboration of law enforcement agencies across Canada, the U.S., Mexico, and Colombia,” said Peel Regional Police Chief Nishan Duraiappah. “These investigative outcomes are important for the families who have endured tragic loss, casualties of criminal greed and a drug trafficking war. Peel Regional Police remains unwavering in its commitment to working alongside our global partners to bring those responsible for violent acts and homicides – both within Peel and beyond – to justice."
During the investigation, law enforcement has seized more than one ton of cocaine, three firearms, dozens of rounds of ammunition, $255,400 in United States currency, and more than $3.2 million in cryptocurrency. According to the superseding indictment, in March 2024, the organization delivered a total of approximately 293 kilograms (646 pounds) of cocaine to representatives of Ratte and Singh for eventual shipment to and distribution in Canada. The following month, the organization attempted to deliver approximately 375.1 kilograms (827 pounds) of cocaine to representatives of Ratte and Singh for eventual transportation to Canada, but investigators interrupted the delivery and seized the cocaine. In total, several defendants possessed a total of approximately 1,800 kilograms (1.8 metric tons) of cocaine, according to the superseding indictment. One-thousand eight hundred kilograms of cocaine carries a street value between $23.4 and $25.2 million dollars in Los Angeles.
Several of the defendants arrested are expected to make their court appearances within the coming week in Los Angeles, Michigan, and Miami.
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, Wedding, Clark, and Ratte would face a mandatory minimum penalty of life in federal prison on the continuing criminal enterprise charge. The murder and attempted murder charges carry an additional 20-year mandatory minimum penalty. The drug trafficking charges also carry mandatory minimum penalties between 10 and 15 years in prison.
The FBI investigated this matter with the Los Angeles Police Department, the DEA Los Angeles, and the Royal Canadian Mounted Police – Federal Policing. In addition, significant assistance was provided by U.S. law enforcement partners, including Homeland Security Investigations – Detroit and United States Customs and Border Protection – Buffalo; Canadian law enforcement partners, including Niagara Regional Police Service, Ontario Provincial Police, Toronto Police Service, and Peel Regional Police; Mexican law enforcement partners, including the Attorney General’s Office (Fiscalía General de la República) and the Criminal Investigation Agency (Agencia de Investigación Criminal); and Colombian law enforcement partners, including Colombian National Police – Directorate of Criminal Investigation and Interpol, Special Interagency Investigation Group (Policía Nacional de Colombia – Dirección de Investigación Criminal e Interpol, Grupo Especial de Investigación Interagenciales). This investigation was conducted with the support of the Organized Crime Drug Enforcement Task Force (OCDETF).
Assistant United States Attorneys Lyndsi Allsop and Maria Jhai of the Violent and Organized Crime Section and Ryan Waters of the Asset Forfeiture and Recovery Section are prosecuting this case. The Justice Department’s Office of International Affairs provided substantial assistance.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Two Sudanese Nationals Indicted for Alleged Role in Anonymous Sudan Cyberattacks on Hospitals, Government Facilities, and Other Critical Infrastructure in Los Angeles and Around the WorldRead the Press Release
LOS ANGELES – A federal grand jury indictment unsealed today charges two Sudanese nationals with operating and controlling Anonymous Sudan, an online cybercriminal group responsible for tens of thousands of Distributed Denial of Service (DDoS) attacks against critical infrastructure, corporate networks, and government agencies in the United States and around the world.
In March 2024, pursuant to court-authorized seizure warrants, the U.S. Attorney’s Office and FBI seized and disabled Anonymous Sudan’s powerful DDoS tool, which the group allegedly used to perform DDoS attacks, and sold as a service to other criminal actors.
Ahmed Salah Yousif Omer, 22, and Alaa Salah Yusuuf Omer, 27, were both charged with one count of conspiracy to damage protected computers. Ahmed Salah was also charged with three counts of damaging protected computers.
“Anonymous Sudan sought to maximize havoc and destruction against governments and businesses around the world by perpetrating tens of thousands of cyberattacks,” said United States Attorney Martin Estrada. “This group’s attacks were callous and brazen—the defendants went so far as to attack hospitals providing emergency and urgent care to patients. My office is committed to safeguarding our nation’s infrastructure and the people who use it, and we will hold cyber criminals accountable for the grave harm they cause.”
“The FBI’s seizure of this powerful DDoS tool successfully disabled the attack platform that caused widespread damage and disruptions to critical infrastructure and networks around the world,” said Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office. “With the FBI’s mix of unique authorities, capabilities, and partnerships, there is no limit to our reach when it comes to combating all forms of cybercrime and defending global cybersecurity.”
“These charges and the results of this investigation, made possible through law enforcement and private sector partnerships, have an immeasurable impact on the security of networks in the U.S. and of its allies, and demonstrates the resolve of the Defense Criminal Investigative Service (DCIS) to safeguard the Department of Defense from evolving cyber threats,” said Kenneth A. DeChellis, DCIS Cyber Field Office, Special Agent in Charge. “Cybercriminals need to understand that if they target America’s warfighters, they will face consequences.”
According to the indictment and a criminal complaint also unsealed today, since early 2023, the Anonymous Sudan actors and their customers have used the group’s Distributed Cloud Attack Tool (DCAT) to conduct destructive DDoS attacks and publicly claim credit for them. In approximately one year of operation, Anonymous Sudan’s DDoS tool was used to launch over 35,000 DDoS attacks, including at least 70 targeting computers in the greater Los Angeles area.
Victims of the attacks include sensitive government and critical infrastructure targets within the United States and around the world, including the Department of Justice, the Department of Defense, the FBI, the State Department, Cedars-Sinai Medical Center in Los Angeles, and government websites for the state of Alabama. Victims also included major U.S. technology platforms, including Microsoft Corp. and Riot Games Inc., and network service providers. The attacks resulted in reported network outages affecting thousands of customers.
Anonymous Sudan’s DDoS attacks, which at times lasted several days, caused damage to the victims’ websites and networks, often rendering them inaccessible or inoperable, resulting in significant damages. For example, Anonymous Sudan’s DDoS attacks shuttered the emergency department at Cedars-Sinai Medical Center, causing incoming patients to be redirected to other medical facilities for approximately eight hours. Anonymous Sudan’s attacks have caused more than $10 million in damages to U.S. victims.
The March 2024 disruption of Anonymous Sudan’s DCAT tool, called variously “Godzilla,” “Skynet,” and “InfraShutdown,” was accomplished through the court-authorized seizure of its key components. Specifically, the warrants authorized the seizures of computer servers that launched and controlled the DDoS attacks, computer servers that relayed attack commands to a broader network of attack computers, and accounts containing the source code for the DDoS tools used by Anonymous Sudan.
An indictment is merely an allegation, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
If convicted of all charges, Ahmed Salah would face a statutory maximum sentence of life in federal prison, and Alaa Salah would face a statutory maximum sentence of five years in federal prison.
The investigation of Anonymous Sudan was conducted by the FBI’s Anchorage Field Office, the Defense Criminal Investigative Service, and the State Department’s Diplomatic Security Service Computer Investigations and Forensics Division.
Assistant United States Attorneys Cameron L. Schroeder and Aaron Frumkin of the Cyber and Intellectual Property Crimes Section are prosecuting this case, with substantial assistance from Trial Attorney Greg Nicosia of the National Security Division’s National Security Cyber Section. Assistant United States Attorneys Schroeder and Frumkin, along with Assistant United States Attorney James Dochterman of the Asset Forfeiture Section, also obtained the seizure warrants for computer servers constituting Anonymous Sudan’s DCAT tool.
The DOJ Criminal Division’s Office of International Affairs, the FBI’s International Operations Division and Behavioral Analysis Unit, and the U.S. Attorney’s Office for the District of Alaska aided in this investigation.
These law enforcement actions were taken as part of Operation PowerOFF, an ongoing, coordinated effort among international law enforcement agencies aimed at dismantling criminal DDoS-for-hire infrastructure worldwide, and holding accountable the administrators and users of these illegal services. Akamai SIRT, Amazon Web Services, Cloudflare, Crowdstrike, DigitalOcean, Flashpoint, Google, Microsoft, PayPal, SpyCloud and other private sector entities provided assistance in this matter.
redacted_ahmed_complaint_v.2.pdf indictment_embargo.pdfLancaster Man Arrested on Charges that He Used Drone to Fly Fentanyl, Including to Customer Who Later Died from OverdoseRead the Press Release
LOS ANGELES – An Antelope Valley man was arrested today on a nine-count federal grand jury indictment charging him with using a drone to drop off fentanyl and other narcotics to buyers, one of whom died of a fatal overdose of the powerful synthetic opioid last year.
Christopher Patrick Laney, 34, a.k.a. “Crany,” of Lancaster, is charged with one count of distribution of fentanyl resulting in death, four counts of knowingly and willfully operating an unregistered aircraft in furtherance of a felony narcotics crime, one count of possession with intent to distribute methamphetamine, two counts of possession with intent to distribute fentanyl, and one count of possession of firearms in furtherance of a drug trafficking crime.
Laney is expected to be arraigned this afternoon in United States District Court in downtown Los Angeles.
According to the indictment that a grand jury returned on September 17 and was unsealed today, Laney on January 17, 2023, used an unmanned aircraft system, commonly referred to as a “drone” – which had not been registered with the Federal Aviation Administration – to transport fentanyl from his house to a nearby church parking lot. Laney distributed the fentanyl to a third party that provided it to the victim, identified in the indictment as “J.K.”, who was found dead the next day after she suffered a fatal drug overdose.
As captured on video footage taken by the drone, Laney used the same unregistered drone to transport and distribute narcotics on at least three other occasions in December 2022 and January 2023. In February 2023, Laney also possessed methamphetamine and fentanyl at his residence, and knowingly possessed multiple firearms – including an AR-15-style rifle lacking a serial number, commonly referred to as a “ghost gun,” and two 9mm semiautomatic ghost-gun pistols, inside of his room.
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, Laney would face a mandatory minimum sentence of 25 years in federal prison and a statutory maximum sentence of life imprisonment.
The Drug Enforcement Administration, the Los Angeles County Sheriff’s Department, the Federal Aviation Administration, and the United States Customs and Border Protection’s Center for Air and Marine Drone Exploitation are investigating this matter.
Assistant United States Attorney Kyle W. Kahan of the International Narcotics, Money Laundering, and Racketeering Section is prosecuting this case.
Armed Robbery Crew Charged After Attempting to Rob Temecula Pharmacy and Following a Six-Week Armed Robbery SpreeRead the Press Release
RIVERSIDE, California – Four individuals were charged in a criminal complaint today alleging their involvement in a six-week armed robbery spree across Southern California.
The following defendants are charged with attempted interference with commerce by robbery (Hobbs Act):
- Aaron Carter, 39, of Fontana;
- Diamond Lucious, 25, of Victorville;
- Isaac Penaldoza, 35, of San Bernardino; and
- Kamaria Kendrick, 25, of Menifee
According to the complaint affidavit, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Orange County Violent Crime Task Force (OCVCTF) has been investigating a series of armed robberies of pharmacies across Southern California – in Woodland Hills, Temecula, Newport Beach, and Fullerton. During each of the robberies, three male suspects would enter the pharmacies wearing hooded sweatshirts and face masks. Two of the suspects would be armed with guns, force employees to the ground, steal cash from the registers, and violently drag employees around the store. The third suspect would grab a trash can from inside the pharmacies and put stolen medications in the trash can.
The complaint affidavit alleges that on October 14, 2024, Kendrick scouted the Apollo Pharmacy in Temecula, California, by walking around the pharmacy building while on her phone and then driving around the building several times. Carter, Lucious, and Penaldoza then entered the pharmacy wearing hooded clothing, gloves, and masks while Kendrick waited in the car. Surveillance video at the Apollo Pharmacy shows that Carter, Lucious, and Penaldoza allegedly jumped over the counter and Lucious and Penaldoza brandished guns at employees, yelled at the employees, and then grabbed the employees and forced them to lie on the ground. Carter went directly to the safe in the back of the store and Penaldoza allegedly forced an employee at gunpoint to walk towards the safe. After an employee said that there was nothing in the safe, Carter, Lucious, and Penaldoza allegedly fled to the getaway car driven by Kendrick.
OCVCTF agents attempted to arrest the suspects when Kendrick allegedly tried to evade them and struck one of the unmarked law enforcement vehicles. While law enforcement immobilized the getaway car, a 9mm pistol fell out of the car. All four were arrested at the scene without further incident.
Carter, Lucious, and Penaldoza, are not legally permitted to possess firearms because they have all been previously convicted of multiple felonies and were on post-release community supervision or parole at the time of their arrest.
A complaint affidavit contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
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 ATF OCVCTF is investigating this matter. The OCVCTF was formed to investigate violent crime, with a focus on serial robberies throughout Southern California. The ATF-led task force is comprised of personnel from the Brea Police Department, the Fullerton Police Department, the Santa Ana Police Department and the Orange County District Attorney’s Office.
Assistant United States Attorneys Kevin J. Butler and Jena A. MacCabe of the Violent and Organized Crime Section are prosecuting this case.
San Bernardino County-Based Home Health Agency and Owner Settle False Claims Act Allegations Related to Improper COVID-Relief LoanRead the Press Release
SETTLEMENT AGREEMENT
LOS ANGELES – Allstar Health Providers Inc., a Rancho Cucamonga-based home health agency, and its owner, Maria Chua, have agreed to pay $399,990 to the United States to resolve allegations that they violated the False Claims Act when they knowingly received and retained more than one Paycheck Protection Program (PPP) loan prior to Dec. 31, 2020, in violation of PPP rules, the Justice Department announced today.
The PPP, an emergency loan program established by Congress in March 2020 under the Coronavirus Aid, Relief and Economic Security (CARES) Act and administered by the Small Business Administration (SBA), was intended to support small businesses struggling to pay employees and other business expenses during the COVID-19 pandemic. A borrower applying for a PPP loan was required to make multiple certifications relating to its eligibility and compliance with program rules. Among other things, PPP loan applicants in 2020 were required to certify that they would not receive more than one PPP loan prior to Dec. 31, 2020.
The United States alleged that Chua submitted two PPP loan applications on behalf of Allstar Health Providers in May 2020, and in both applications, she certified that the company would not receive more than one loan prior to Dec. 31, 2020. Despite these certifications, the United States alleged that Allstar Health Providers received two PPP loans in 2020, and thereafter knowingly and improperly retained the second, duplicate loan. According to the United States, Allstar Health Providers failed to repay the duplicate loan, which resulted in a loss to the SBA when it purchased the loan guaranty on the duplicate loan.
“When an individual violates the False Claims Act by fraudulently receiving and retaining PPP loans, taxpayers lose,” said U.S. Attorney Martin Estrada for the Central District of California. “Those who violate the law by fraudulently receiving and retaining PPP loans will be held accountable.”
“PPP loans were intended to provide critical relief to small businesses,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to pursuing those who knowingly violated the requirements of the PPP or other COVID-19 assistance programs and obtained relief funds to which they were not entitled.”
“This is another excellent example of the success of the combined investigative efforts of the Small Business Administration and the Department of Justice in aggressively pursuing instances of misconduct and recovering funds from those who choose to commit fraudulent acts against SBA’s COVID-relief programs,” said General Counsel Therese Meers of SBA.
The settlement resolves claims brought under the qui tam or whistleblower provisions of the False Claims Act by J. Bryan Quesenberry. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned U.S. ex rel. Quesenberry v. 2 Evil Geniuses et al., No. 20-cv-8495 (C.D. Cal.). Mr. Quesenberry will receive a total of approximately $60,000 in connection with this settlement.
Assistant United States Attorney Frank D. Kortum of the Civil Division’s Civil Fraud Section and Justice Department Trial Attorney Jared S. Wiesner of the Civil Division handled the matter.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department 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 actors committing civil and criminal fraud 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. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.
Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at NCDF Disaster Complaint Form.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
Former Owner of ‘The Timepiece Gentleman’ Luxury Watch Consignment Store in Beverly Hills Pleads Guilty to Fraud ChargesRead the Press Release
LOS ANGELES – A Los Angeles man who ran a Beverly Hills luxury watch consignment business and was known as “The Timepiece Gentleman” pleaded guilty today to swindling dozens of his customers of out a total of at least $5.6 million.
Anthony Farrer, 36, formerly of downtown Los Angeles, pleaded guilty to one count of wire fraud and one count of mail fraud. He has been in federal custody since November 2023.
According to his plea agreement, from November 2022 to November 2023, Farrer used his business – also called “The Timepiece Gentlemen” – to connect purchasers and sellers of high-end watches. In a typical consignment sale, a client would ship a watch to The Timepiece Gentleman and Farrer would take possession of the watch, agreeing to display it at his Beverly Hills store and through online and social media marketing. The items involved in this case included luxury watches by Rolex, Richard Mille, and Patek Phillipe, among others.
Once the watch was sold, Farrer was supposed to remit the sales proceeds back to the client, minus a consignment fee, which typically was approximately 5% of the sales price. If the watch did not sell within a specific time or for a specified price, Farrer was to return the watch to the client.
However, instead of remitting watch sales proceeds – or the unsold watches themselves – back to the clients, Farrer sold the client watches and kept the proceeds for himself. He also used client watches – without the client’s knowledge or permission – as collateral for loans that he took out from lenders.
When a client asked about the status of a watch on consignment sale, Farrer lied and said that the watch had not yet been sold. In fact, Farrer already had sold the watch or otherwise disposed of it, keeping the funds for his own personal benefit.
In addition to his consignment sale business, Farrer also purported to purchase watches on behalf of his clients. Typically, a client sent funds to Farrer, often by wire transfers to his bank accounts or through payment processors such as Zelle, for the purpose of Farrer locating and buying a specified watch on the client’s behalf.
But in fact, Farrer took the clients’ money and used it for other purposes, including to fund his lavish lifestyle such as buying or leasing luxury automobiles, apartments, and other luxury goods.
When a client who had sent him money asked Farrer about the status of a watch purchase, Farrer often sent another watch to the client to tide the client over or lull them into a false sense of security regarding the status of the purchase. Similar to a Ponzi scheme, the other watch Farrer sent to the client often belonged to other clients who had themselves sent him that watch for a consignment sale. These clients were unaware Farrer was using their watches for that purpose, rather than attempting to sell the watches on behalf of the clients.
In total, Farrer fraudulently obtained money and property belonging to more than 40 victims and caused total losses of at least $5,691,005.
United States District Judge Josephine L. Staton scheduled a January 31, 2025, sentencing hearing, at which time Farrer will face a statutory maximum sentence of 20 years in federal prison for each count.
The FBI, IRS Criminal Investigation, and the Beverly Hills Police Department investigated this matter.
Assistant United States Attorney Joshua O. Mausner of the Violent and Organized Crime Section is prosecuting this case.
Former Accounting Chief at Now-Shuttered Girardi Keese Law Firm Pleads Guilty to Embezzling Money from Clients and the Firm ItselfRead the Press Release
LOS ANGELES – The former longtime head of the accounting department at the now-shuttered Los Angeles plaintiffs’ personal injury law firm Girardi Keese pleaded guilty today to enabling the embezzlement of tens millions of dollars from the firm’s injured clients and to embezzling money from Girardi Keese itself.
Christopher Kazuo Kamon, 51, formerly of Encino and Palos Verdes and who was residing in The Bahamas at the time of his November 2022 arrest, pleaded guilty to two counts of wire fraud.
According to his plea agreement, from 2004 until December 2020, Kamon was the head of the accounting department at Girardi Keese, a plaintiffs’ personal injury law firm based in downtown Los Angeles. In this position, Kamon worked closely with Thomas Vincent Girardi, 85, formerly a resident of Pasadena but who now resides in Seal Beach, as well as other senior lawyers at the law firm.
In December 2020, Girardi Keese’s creditors forced the once-prominent law firm into bankruptcy proceedings. The law firm dissolved in January 2021 and the State Bar of California disbarred Girardi in July 2022. On August 27, a federal jury in Los Angeles found Girardi guilty of four counts of wire fraud. Girardi’s sentencing hearing is scheduled for December 6.
In addition to supervising the law firm’s accounting department, Kamon oversaw facilitating payment of the law firm’s expenses. Kamon had a duty to keep accurate books and records of Girardi Keese, including accounting of money held in its attorney-client trust accounts. Typically, Girardi determined and directed which clients would be paid, how much they would be paid, when they would be paid, and signed all outgoing checks to clients. Kamon had signatory authority on additional Girardi Keese bank accounts.
From at least 2010 until December 2020, Girardi and Kamon schemed to defraud Girardi Keese clients out of their settlement money, using the misappropriated funds to pay the law firm’s payroll, the law firm’s credit card bills, and to pay Girardi and Kamon’s personal expenses.
Specifically, one victim – a Girardi Keese client who suffered severe burns all over his body when a natural gas pipeline exploded in San Bruno, California, in September 2010 – had a $53 million settlement negotiated. This deal was negotiated and agreed to without the client’s prior approval. Per the terms of the settlement, $25 million was invested into an annuity. The remaining $28 million was wired into a Girardi Keese client trust account in January 2013. Girardi, assisted by Kamon, misappropriated, and embezzled that client’s settlement money and used the funds to pay other Girardi Keese expenses and liabilities unrelated to this client, including payments to other law firm clients whose own settlement funds previously had been misappropriated by Girardi and others.
To prevent the victim from discovering Girardi’s embezzlement, Girardi lied to the client by saying the funds had been transferred into a separate interest-bearing account. In fact, no such transfers had been made and no such interest-bearing account containing these funds existed.
Girardi and Kamon sent lulling payments to the victim as purported “interest payments” deriving from the purported interest-bearing account. In July 2019, they sent the victim a $2.5 million check, purportedly as disbursement of the victim’s settlement funds. In fact, Girardi and Kamon knew these settlement proceeds belonged to other Girardi Keese clients. Girardi already had spent the victim’s settlement funds through disbursements unrelated to the victim’s case.
In a separate criminal case, Kamon admitted to running a years-long scheme in which he embezzled Girardi Keese funds for his personal enrichment. From at least 2013 to December 2020, Kamon utilized co-schemers to pose as “vendors” who were providing goods and services to the law firm. Kamon caused the supposed vendors to issue fraudulent invoices to Girardi Keese for goods and services that they purportedly provided to the law firm.
Kamon caused Girardi Keese to pay the amounts due on the fraudulent invoices. In fact, the law firm was paying the “vendors” for Kamon’s personal benefit, including for construction projects at his homes in Palos Verdes and Encino.
According to evidence presented at the recent trial of Tom Girardi, part of Kamon’s scheme involved payments to a female companion amounting to hundreds of thousands of dollars, including a monthly stipend of $20,000, out of the Girardi Keese operating accounts despite the woman having no employment relationship with Girardi Keese.
United States District Judge Josephine L. Staton scheduled a January 31, 2025, sentencing hearing, at which time Kamon will face a statutory maximum sentence of 20 years in federal prison on each count. Kamon has been in federal custody since December 2022.
Kamon – along with Girardi and David R. Lira, Girardi’s son-in-law, and a former Girardi Keese lawyer – also faces federal fraud charges in Chicago. Trial in that case is scheduled for March 3, 2025.
IRS Criminal Investigation and the FBI investigated this matter.
Assistant United States Attorneys Ali Moghaddas of the Corporate and Securities Fraud Strike Force and Scott Paetty of the Major Frauds Section are prosecuting this case.
Two Los Angeles-Area Residents Arrested on Indictment Alleging Scheme to Fraudulently Obtain and Launder Medicare ProceedsRead the Press Release
LOS ANGELES – A Los Angeles woman and a San Fernando Valley man were arrested today on a 24-count federal grand jury indictment alleging a scheme to defraud Medicare out of more than $54 million via hospice and diagnostic testing services that were never provided and then laundered their illicit proceeds, including by buying millions of dollars’ worth of gold bars and coins.
Sophia Shaklian, 36, of the Larchmont area of Los Angeles, and Alex Alexsanian, 47, of Burbank, were arrested early this morning. They are scheduled to be arraigned this afternoon in United States District Court in downtown Los Angeles.
Shaklian is charged with 16 counts of health care fraud and four counts of transactional money laundering. Alexsanian is charged with one count of conspiracy to launder monetary instruments and three counts of concealment money laundering.
According to the indictment that a federal grand jury returned on October 2, Shaklian, often using aliases, managed and submitted claims for seven health care providers enrolled with Medicare and located in Los Angeles County. These businesses included a hospice company she owned – the Pasadena-based Chateau d’Lumina Hospice and Palliative Care – and several diagnostic testing companies: Saint Gorge Radiology in Sylmar; Hope Diagnostics in North Hollywood; Direct Imaging & Diagnostics and Lab One – both located in Hollywood; and Labtech and Lifescan Diagnostics in Claremont.
From March 2019 to August 2024, these companies allegedly submitted more than $54 million in fraudulent claims to Medicare for services that were never provided and not needed. In total, they received more than $23 million for those claims. Shaklian allegedly laundered Medicare funds paid to Chateau by transferring them to accounts in the name of “Varsenic Babaian,” a synthetic or fake identity.
Alexsanian allegedly directed a foreign national to open Saint Gorge Radiology, and to acquire Medicare provider Console Hospice in Van Nuys, and then provide control of those companies and their bank accounts and the foreign national’s personal bank accounts to Alexsanian.
Alexsanian conspired with the foreign national (who soon left the country) and others to have Saint Gorge Radiology and Console Hospice submit fraudulent claims to Medicare for services not provided and then laundered the Medicare reimbursements they received, as well as funds deposited into their accounts through the “Babaian” identity, and used them to, among other things, buy more than $6 million in gold bars and coins.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proved guilty beyond a reasonable doubt.
If convicted of all charges, Shaklian would face a statutory maximum sentence of 10 years in federal prison for each health care fraud count and up to 20 years in federal prison for each money laundering count. Alexsanian would face up to 20 years in federal prison for each count.
The United States Department of Health and Human Services Office of the Inspector General and the FBI are investigating this matter.
Assistant United States Attorney Kristen A. Williams of the Major Frauds Section is prosecuting this case.
Justice Department Sues LA Fitness for Disability Discrimination at Its Gym and Fitness ClubsRead the Press Release
The Justice Department today sued Fitness International LLC, also called LA Fitness, for discriminating against people with disabilities at its gym and fitness clubs. LA Fitness is the largest chain of owner-operated gym and fitness clubs in the United States, with nearly 700 locations across the country.
The lawsuit, filed in the U.S. District Court for the Central District of California, alleges LA Fitness violated the Americans with Disabilities Act (ADA), which prohibits public accommodations, including gym and fitness clubs, from discriminating against people with disabilities. The ADA requires LA Fitness to give people with disabilities equal access to LA Fitness’ services and facilities, remove architectural barriers to make its facilities accessible to people with disabilities and maintain accessible features. The ADA also prohibits LA Fitness from charging extra fees to people with disabilities.
Yet, as the department’s lawsuit alleges, LA Fitness gym and fitness clubs have many barriers that prevent LA Fitness members with disabilities from accessing the clubs or using the clubs’ pools and fitness equipment. Common barriers include broken pool lifts and broken elevators. Sometimes, these issues left people with mobility disabilities unable to get into clubs or pools at all. Other times, people with disabilities have gotten stuck dangling over the water on broken pool lifts, have had to call LA Fitness staff to help them get in and out of pools or have had to crawl out of pools. Even after members with disabilities complained about these issues, LA Fitness did not fix them for long periods of time.
“Access to physical fitness activity is crucial for promoting the health and well-being of all Americans, including those with disabilities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “For over 30 years, the ADA has prohibited gyms and fitness clubs like LA Fitness from denying patrons with disabilities the opportunity to use and enjoy facilities enjoyed by patrons without disabilities. Through this lawsuit, the Justice Department seeks to eliminate LA Fitness’s discriminatory barriers and ensure that people with disabilities have equal access to fully participate at their local LA Fitness gym and fitness clubs.”
“Ensuring accessibility is key to safeguarding civil rights for all Americans,” said U.S. Attorney Martin Estrada for the Central District of California. “Our office is committed to ensuring that people with disabilities have access to public accommodations by enforcing the protections afforded by the Americans with Disabilities Act. When we support those with disabilities, our entire community benefits.”
Through the lawsuit, the department asks the court to stop LA Fitness from discriminating against people with disabilities, including by requiring LA Fitness to make its facilities and equipment accessible. The department also seeks monetary damages for people harmed by LA Fitness’ discrimination. This includes people who were directly harmed by LA Fitness’ barriers to access and broken equipment, as well people who need help to use LA Fitness’ clubs and were charged extra fees to have a friend, nurse or personal assistant help them use LA Fitness facilities.
If you or someone you know had trouble accessing an LA Fitness gym or fitness club because of a disability, including due to a broken pool lift or elevator, or if you were charged an extra fee to have someone help you access LA Fitness’ equipment, please call 1-888-392-5417 (toll-free), or email [email protected]. For more information on the ADA, please call the department’s toll-free ADA Information Line at 1-800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. For more information on the Civil Rights Division, please visit www.justice.gov/crt.
Justice Department Sues LA Fitness for Alleged Disability Discrimination at Its Gym and Fitness ClubsRead the Press Release
LOS ANGELES – The Justice Department today sued Irvine-based Fitness International LLC, which does business as LA Fitness, for discriminating against people with disabilities at its gym and fitness clubs. LA Fitness is the largest chain of owner-operated gym and fitness clubs in the United States, with nearly 700 locations across the country.
The lawsuit alleges LA Fitness violated the Americans with Disabilities Act (ADA), which prohibits public accommodations, including gym and fitness clubs, from discriminating against people with disabilities. The ADA requires LA Fitness to give people with disabilities equal access to LA Fitness’s services and facilities, remove architectural barriers to make its facilities accessible to people with disabilities and maintain accessible features. The ADA also prohibits LA Fitness from charging extra fees to people with disabilities.
“Ensuring accessibility is key to safeguarding civil rights for all Americans,” said United States Attorney Martin Estrada. “Our office is committed to ensuring that people with disabilities have access to public accommodations by enforcing the protections afforded by the Americans with Disabilities Act. When we support those with disabilities, our entire community benefits.”
“Access to physical fitness activity is crucial for promoting the health and well-being of all individuals, including those with disabilities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “For over 30 years, the ADA has prohibited gyms and fitness clubs like LA Fitness from denying patrons with disabilities the opportunity to use and enjoy facilities enjoyed by patrons without disabilities. Through this lawsuit, the department seeks to remedy LA Fitness’s discriminatory actions and ensure that patrons with disabilities have equal access to fully participate at their local LA Fitness gym and fitness clubs.”
Through the lawsuit, the United States asks the court to stop LA Fitness from discriminating against people with disabilities, including by requiring LA Fitness to make its facilities and equipment accessible. The lawsuit also seeks money damages for people harmed by LA Fitness’s discrimination. This includes people who were directly harmed by LA Fitness’s barriers to access and broken equipment, as well people who need help to use LA Fitness’s clubs and were charged extra fees to have a friend, nurse or personal assistant help them use LA fitness facilities.
If you or someone you know had trouble accessing an LA Fitness gym or fitness club because of a disability, including due to a broken pool lift or elevator, or if you were charged an extra fee to have someone help you access LA Fitness’s equipment, please call 1-888-392-5417 (toll-free), or email [email protected]. For more information on the ADA, please call the Justice Department’s toll-free ADA Information Line at 1-800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.
Assistant United States Attorneys Matthew Barragan and Margaret Chen of the Civil Division’s Civil Rights Section and attorneys from the Disability Rights Section of the Justice Department’s Civil Rights Division are handling this case.
Information about the Civil Rights Section in the Civil Division of the United States Attorney’s Office is available on our website. Members of the public may report possible civil rights violations to our office via email to [email protected].
Dual U.S. and Iranian Citizen Arrested for Unlawful Scheme to Violate and Evade U.S. Sanctions Against IranRead the Press Release
Kambiz Eghbali, also known as Cameron Eghbali, 50, of Los Angeles, was arrested yesterday pursuant to a now-unsealed indictment charging him, along with Hamid Hajipour and Babak Bahizad, both Iranian nationals, with violations of the International Emergency Economic Powers Act, conspiracy to commit bank fraud, and conspiracy to commit money laundering. Bahizad and Hajipour remain at large.
According to the indictment, from March 2014 through September 2019, Eghbali and others conspired to unlawfully send digital and physical gift cards loaded with U.S. dollars to Iran. Eghbali would list his company, a U.S.-based purported videogame wholesaler and distributor located in the Central District of California, as the seller of the gift cards, and would provide cards to Bahizad for the benefit of his Iran-based gaming company, and to Hajipour for the benefit of his mobile software application service company. Bahizad and Hajipour would then pay Eghbali for the cards by transferring money from Iran to Eghabli’s U.S.-based bank accounts using third parties in other countries to conceal the transfer from U.S. regulators.
The International Emergency Economic Powers Act (IEEPA) and the Iranian Transactions and Sanctions Regulations (ITSR) impose controls and restrictions on transactions involving Iran based on the threats posed by Iran to the national security of the United States including, among others, its pursuit of nuclear weapons and sponsorship of terrorism. The IEEPA and ITSR, among other things, prohibit the export, reexport, sale, or supply, directly or indirectly, from the United States or by a United States person, wherever located, of any goods, technology, or services, including financial services, to Iran or the Government of Iran without first obtaining authorization from the U.S. Treasury Department’s Office of Foreign Assets Control.
If convicted, the defendants face the following maximum penalties: 20 years in prison for violations of IEEPA, 30 years in prison for bank fraud violations, and 20 years in prison for money laundering violations. The indictment also notifies defendants that the United States intends to forfeit all property alleged to be traceable to proceeds of the offense. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Martin E. Estrada for the Central District of California, and Executive Assistant Director Robert Wells of the FBI’s National Security Branch made the announcement.
The FBI is investigating the case, with support from Homeland Security Investigations.
Assistant U.S. Attorneys Anna Boylan and Mark Takla for the Central District of California and Trial Attorneys David J. Ryan and Leslie Esbrook of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Departamento de Justicia demanda a LA Fitness por la Discriminación por Discapacidad en sus Gimnasios y Clubes de Aptitud FísicaRead the Press Release
El Departamento de Justicia hoy entabló un pleito contra Fitness International LLC, también conocido como LA Fitness, por discriminación contra las personas con discapacidades en sus gimnasios y clubes de aptitud física. LA Fitness es la cadena más grande de gimnasios y clubes de aptitud física de propiedad única en los Estado Unidos, con más de 700 ubicaciones por todo el país.
La demanda, que se entabló hoy en el Tribunal de Distrito de los Estados Unidos para el Distrito Central de California, alega que LA Fitness violó la Ley para Estadounidenses con Discapacidades (ADA, por sus siglas en inglés), que prohíbe que los alojamientos públicos, incluyendo los gimnasios y los clubes de aptitud física, discriminen contra las personas con discapacidades. La ADA requiere que LA Fitness provee a personas con discapacidades acceso igualitario a sus servicios y facilidades, remueve barreras arquitecturales para hacer que sus facilidades son accesibles para las personas con discapacidades y mantiene características accesibles. La ADA también prohíbe que LA Fitness cobre a las personas con discapacidades honorarios adicionales.
Sin embargo, como alega la demanda del departamento, los gimnasios y clubes de aptitud física tienen muchas barreras que previenen que los miembros de LA Fitness con discapacidades accedan a los clubes o que usan las piscinas o equipamiento de aptitud física de los clubes. Las barreras comunes incluyen los elevadores para piscinas rotos y ascensores rotos. A veces, estos problemas han dejado a las personas con discapacidades incapaz de entrar en los clubes o las piscinas en absoluto. Otras veces, las personas con discapacidades se han quedado atascadas y colgantes sobre el agua en elevadores para piscina rotos. Estas personas han sido obligadas de pedir asistencia de los empleados de LA Fitness para entrar o salir de las piscinas o de salir de la piscina arrastrándose. Aún después de que los miembros con discapacidades quejaron sobre estos problemas, LA Fitness no los arregló por largas duraciones.
“El acceso a actividad de aptitud física es esencial para promover la salud y el bienestar de todos Estadounidenses, incluyendo aquellos con discapacidades,” comentó la Fiscal General Auxiliar Kristen Clarke de la División de Derechos Civiles del Departamento de Justicia. “Por más de 30 años, la ADA ha prohibido que los gimnasios y clubes de aptitud física como LA Fitness nieguen a los clientes con discapacidades la oportunidad de usar y disfrutar de facilidades disfrutadas por los clientes sin discapacidades. A través de esta demanda, el Departamento de Justicia busca eliminar las barreras discriminatorias de LA Fitness y asegurar que las personas con discapacidades tienen acceso igualitario para participar enteramente en sus gimnasios y clubes de aptitud física locales de LA Fitness.”
“Asegurar la accesibilidad es clave para salvaguardar los derechos civiles para todos Estadounidenses,” comentó el Fiscal de Los Estados Unidos Martin Estrada para el Distrito Central de California. “Nuestra oficina se dedica a asegurar que las personas con discapacidades tengan acceso a los alojamientos públicos a través de enforzar las protecciones ofrecidas por la Ley para los Estadounidenses con Discapacidades. Cuando apoyamos a las personas con discapacidades, nuestra comunidad entera se beneficia.”
A través de la demanda, el departamento pide al corte detener que LA Fitness discrimine contra las personas con discapacidades, incluyendo a través de requerir que LA Fitness hagan sus facilidades y equipamiento accesibles. El departamento también busca daños monetarios para las personas con discapacidades que resultaron heridas por la discriminación de LA Fitness. Esto incluye las personas que resultaron heridas directamente por las barreras de acceso y equipamiento roto de LA Fitness, además para las personas que necesitan ayuda para usar los clubes de LA Fitness y que han sido cobrados por honorarios adicionales para tener un amigo, enfermero o asistente personal ayudarlos usar las facilidades de LA Fitness.
Si usted o alguien que conoce experimentó problemas por acceder a un gimnasio o club de aptitud física de LA Fitness por razón de discapacidad, incluyendo debido a un elevador de piscina o ascensor roto, o si se le cobró un honorario adicional para tener a alguien ayudarle con acceder al equipamiento de LA Fitness, por favor llame a la línea gratuita 1-888-392-5417 o mande un correo electrónico a [email protected]. Para conocer más sobre la ADA, por favor llame a La Línea de Información de la ADA gratuita a 1-800-514-0301 (TDD 800-514-0383) o visite www.ada.gov. Para conocer más sobre la División de Derechos Civiles, por favor visite www.justice.gov/crt.
Corona Man Sentenced to 6 Years in Prison for Filing False Tax Returns for Clients and Causing at Least $28 Million Loss to IRSRead the Press Release
RIVERSIDE, California – A Riverside County man has been sentenced to 72 months in federal prison for preparing and filing false tax returns for his clients, a decade-long scheme that caused a tax loss to the IRS of at least $28 million, the Justice Department announced today.
Salvador Gonzalez, of Corona, was sentenced on Monday by United States District Judge Jesus G. Bernal, who also ordered him to pay $403,908 in restitution.
Gonzalez pleaded guilty on June 17 to three counts of aiding and assisting in the preparation of false tax returns.
Starting in 2013, Gonzalez operated Grace’s Lighthouse Resource Center, Inc., a Corona-based tax return-preparation business. During that time, on thousands of returns he prepared for clients, Gonzalez consistently directed his clients to create a phony corporation and to title their homes, cars, and other assets in the name of that corporation. Gonzalez then referred those clients to an associate to prepare these sham corporation’s tax returns. The associate would provide the clients with a blank spreadsheet and request that they input their business expenses into that spreadsheet.
At Gonzalez’s direction, the clients would include personal expenses such as their mortgage payments, car payments, and utility bills, and then provide the spreadsheet to the associate. The associate would, in turn, use the spreadsheet to prepare the business tax returns, which inevitably would show a loss. These fabricated losses flowed through to the clients’ individual income tax returns, and fraudulently reduced the amount of individual income taxes they paid.
Gonzalez then prepared the clients’ individual income tax returns, which incorporated the fraudulent business losses and offset their income. To further reduce the clients’ taxes owed to the IRS, Gonzalez also fabricated deductions on the personal returns such as unreimbursed employee expenses, cash contributions to charity, and medical and dental expenses. As a result of Gonzalez’s fraudulent return-preparation practices, his clients paid less taxes than they owed.
Gonzalez profited from his return-preparation business. Before 2019, he typically charged clients a flat fee of $500 per tax return. In 2019, he started charging clients 1% of their gross income as a fee for his services.
In total, Gonzalez caused a tax loss to the IRS of at least $28 million, according to court documents.
Consistent with the plea agreement, the U.S. Attorney’s Office – Tax Section, filed a civil complaint in U.S. District Court for the Central District of California, against Gonzalez. The complaint seeks to permanently enjoin Gonzalez from preparing, assisting in, directing, or supervising the preparation or filing of federal tax returns, amended tax returns, or other related documents or forms for others. The civil complaint alleges that over a period of years, Gonzalez has prepared tax returns that understate the federal income-tax liability of his customers using a scheme which has harmed the United States, the IRS, his customers, and the public.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers tips to recognize tax scams and fraud.
In the past decade, the Justice Department has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the U.S. Attorney’s Office’s website and the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page.
IRS Criminal Investigation investigated this matter.
Assistant United States Attorney Eli A. Alcaraz of the Public Corruption and Civil Rights Section and Trial Attorney Lauren K. Pope of the Justice Department’s Tax Division prosecuted this case.
Bel Air Man Arrested on Indictment Alleging Scheme to Violate United States Sanctions Against IranRead the Press Release
LOS ANGELES – A Bel Air man was arrested today on a federal grand jury indictment charging him and two Iranian nationals with violating United States sanctions against Iran by illegally sending to that nation digital and physical gift cards loaded with approximately $2.4 million.
Kambiz Eghbali, 50, a.k.a. “Cameron Eghbali,” a dual citizen of the United States and Iran, is charged with violations of the International Emergency Economic Powers Act (IEEPA), conspiracy to commit bank fraud, and conspiracy to commit money laundering. His arraignment is scheduled for this afternoon in United States District Court in downtown Los Angeles.
Hamid Hajipour and Babak Bahizad, both Iranian nationals charged in the indictment, remain at large.
“Restrictions on exports and transactions with countries that are hostile to the United States, such as Iran, are critical to protecting our nation,” said United States Attorney Martin Estrada. “Nothing is more important than protecting our country from foreign threats and my office will continue to aggressively prosecute those who undermine our national security.”
According to the indictment unsealed today, from March 2014 through September 2019, Eghbali and others conspired to unlawfully send digital and physical gift cards loaded with U.S. dollars to Iran. Eghbali would list his company, a North Hills-based purported videogame wholesaler and distributor, as the seller of the gift cards, and would provide cards to Bahizad for the benefit of his Iran-based gaming company, and to Hajipour for the benefit of his mobile software application service company.
Bahizad and Hajipour would then pay Eghbali for the cards by transferring money from Iran to Eghabli’s U.S.-based bank accounts using third parties in other countries to conceal the transfer from U.S. regulators.
The IEEPA and the Iranian Transactions and Sanctions Regulations (ITSR) impose controls and restrictions on transactions involving Iran based on the threats posed by Iran to the national security of the United States including, among others, its pursuit of nuclear weapons and sponsorship of terrorism.
The IEEPA and ITSR, among other things, prohibit the export, reexport, sale, or supply, directly or indirectly, from the United States or by a United States person, wherever located, of any goods, technology, or services, including financial services, to Iran or the Government of Iran without first obtaining authorization from the United States Treasury Department’s Office of Foreign Assets Control.
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, the defendants face the following maximum penalties: 20 years in prison for violations of the International Emergency Economic Powers Act, 30 years in prison for bank fraud violations, and 20 years in prison for money laundering violations. The indictment also notifies defendants that the United States intends to forfeit all property alleged to be traceable to proceeds of the offense.
The FBI is investigating this matter with support from Homeland Security Investigations.
Assistant United States Attorneys Anna Boylan and Mark Takla of the Terrorism and Export Crimes Section are prosecuting this case with Trial Attorneys David J. Ryan and Leslie Esbrook from the National Security Division’s Counterintelligence and Export Control Section.
Long Beach Man Pleads Guilty to Traveling with 14-Year-Old Girl Across State Lines While Intending to Engage in Sexual ActivityRead the Press Release
LOS ANGELES – A Long Beach man pleaded guilty today to federal criminal charges for traveling with a 14-year-old runaway from Arizona – whom he met in a Reddit internet forum – across state lines to his apartment, where he engaged in criminal sexual activity with her.
Trevon Nathaniel Langstaff, 33, pleaded guilty to one count of traveling with intent to engage in illicit sexual conduct.
“Every day, sexual predators use the internet’s relative anonymity to prey on vulnerable youth,” said United States Attorney Martin Estrada. “Would-be predators should be aware that my office will use all of its tools to bring them to justice, and, as today’s sentence shows, the consequences will be severe.”
According to his plea agreement, in late March 2024, Langstaff drove from his Long Beach home to Peoria, Arizona, to pick up the victim, a 14-year-old girl. Langstaff knew the victim was 14 and instructed her to pretend to be 18 years old.
Intending to have sexual intercourse with the victim, Langstaff transported her from Arizona to his home in Long Beach, where he engaged in sexual intercourse with her.
On Langstaff’s cellphone, which was seized on March 26, law enforcement found an image that appeared to portray two children engaged in sexually explicit activity.
United States District Judge Fernando L. Aenlle-Rocha scheduled a March 7, 2025, sentencing hearing, at which time Langstaff will face a statutory maximum sentence of 30 years in federal prison. Langstaff has been in federal custody since March 27.
The FBI and the Long Beach Police Department investigated this matter.
Assistant United States Attorney Kathrynne N. Seiden of the Terrorism and Export Crimes Section is prosecuting this case.
Former Los Angeles Deputy Mayor Sentenced to 12 Years in Prison for Racketeering Conspiracy that Corrupted City Real Estate ProjectsRead the Press Release
LOS ANGELES – A former deputy mayor and long-time Los Angeles city official was sentenced today to 144 months in federal prison for soliciting and accepting more than $750,000 in bribe money for himself and facilitating over $1 million in bribes from property developers to then-Los Angeles City Councilmember José Huizar as part of a long-running pay-to-play racketeering conspiracy at the highest levels of government in Los Angeles.
Raymond She Wah Chan, 68, of Monterey Park, was sentenced by United States District Judge John F. Walter, who also ordered him to pay $752,457 in restitution to the City of Los Angeles.
At the conclusion of a 12-day trial, a jury on March 27 found Chan guilty of all 12 felony counts for which he was charged: one count of conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act, seven counts of honest services wire fraud, three counts of federal program bribery, and one count of making false statements to a federal government agency.
“Chan abused his public office and sought to deepen the corruption of city politics for the benefit of his own business interests,” said United States Attorney Martin Estrada. “Today’s sentence sends a message to the public and City Hall alike that our government should not be for sale and those that undermine our democracy through pay-to-play schemes will be prosecuted to the fullest extent of the law.”
“Today’s sentence serves as a reminder that there are consequences for robbing communities of the honest government services they deserve” said Akil Davis, Assistant Director in Charge of the FBI Los Angeles Field Office. “The harm of public corruption manifests itself not only in financial loss, but also the loss of faith in government and public officials. The FBI will remain laser focused on those who seek to use their personal wealth and influence to facilitate relationships between those willing to pay or accept bribes.”
Chan served for years as the General Manager of the Los Angeles Department of Building and Safety (LADBS) and, later, as the Deputy Mayor of Economic Development from 2016 to 2017. Chan abused both of these high offices and the influence they carried to enrich himself, Huizar, and other public officials within the city.
Huizar, 56, of Boyle Heights, represented Council District 14 (CD-14) on the Los Angeles City Council from 2005 until his resignation in October 2020. CD-14 encompassed downtown Los Angeles and some of its surrounding areas. When downtown Los Angeles was experiencing a huge real estate development boom, Huizar chaired the Planning and Land Use Management (PLUM) Committee, which oversaw all major commercial and residential development projects in the city.
Along with Huizar, Chan helped conceive, lead, and operate the “CD-14 Enterprise,” a criminal racketeering enterprise that exploited the city approval process for large real estate development projects to exact bribes from developers. Chan played a critical role in guiding and ensuring the CD-14 Enterprise’s success, managing the conspiracy through both the powerful public offices he occupied and the private relationships he held with wealthy foreign developers seeking to build in the city. Capitalizing on this unique position, Chan steered nearly $2 million in financial benefits to himself, Huizar, and other public officials as part of the pay-to-play bribery scheme.
In furtherance of the conspiracy, while he was General Manager of LADBS and then Deputy Mayor, Chan established and directed a secret business partnership with real estate development consultant George Chiang, securing a lucrative real estate consulting agreement with Chinese real estate developer Shenzhen Hazens. As part of that agreement, Chan solicited and accepted hundreds of thousands of dollars in bribes to advise and pressure other city officials, including Huizar, in favor of Hazens’ Luxe Hotel redevelopment project in downtown Los Angeles. When he left city employment, Chan used the consulting business that he had secretly built to direct bribes to other public officials for the benefit of his private consulting clients.
To help prolong the pay-to-play bribery scheme, Chan also facilitated a $100,000 campaign contribution commitment from Hazens for Huizar’s wife’s candidacy to succeed Huizar as CD-14 Councilmember in exchange for Huizar’s votes to approve the Luxe Hotel project. Chan also helped facilitate numerous other bribes from Hazens to Huizar, including tens of thousands of dollars in sham real estate consulting fees, concert tickets, China travel expenses, and contributions to Huizar’s 2015 campaign debt and alma mater high school.
Chan also facilitated payment of nearly $1 million in bribes to Huizar from billionaire developer Wei Huang, 58, of Shenzhen, China, including $600,000 to settle a sexual harassment lawsuit, nearly $200,000 in casino chips, and luxury-laden gambling trips to Las Vegas. Chan similarly facilitated bribes from Huang to George Esparza, Huizar’s special assistant and key associate in the pay-to-play bribery scheme, through casino chips and lavish Las Vegas trips. When Huang provided these bribes, his company, Shen Zhen New World I LLC, was planning to redevelop the downtown L.A. Grand Hotel into the tallest tower west of the Mississippi, which would require city approvals and Huizar’s official assistance.
Chan played a crucial role in facilitating Huang’s payment of $600,000 for Huizar to settle a sexual harassment lawsuit filed by a former CD-14 staffer, which threatened Huizar’s 2015 re-election campaign and the continued operation of the CD-14 Enterprise. Chan conceived of and helped carry out an elaborate plan involving a foreign shell company, intermediaries, and fraudulent corporate documents to arrange a sham private loan that shielded the fact of Huang’s involvement in the payment. Chan later lied to FBI agents that he was not involved in the settlement, that Huang had no projects in Huizar’s district needing Huizar’s support, and that Huang had never asked Huizar for help with anything – all of which Chan knew to be false.
Huizar was sentenced on January 26 to 13 years in federal prison and also was ordered to pay $443,905 in restitution to the City of Los Angeles and $38,792 in restitution to the IRS. He pleaded guilty in January 2023 to one count of racketeering conspiracy and one count of tax evasion. Huizar has been ordered to begin serving his prison sentence no later than October 7.
Hazens’ U.S. subsidiary, Jia Yuan USA Co. Inc., which was seeking to redevelop the Luxe Hotel, has paid $1.05 million to resolve the government’s investigation into its conduct related to this case, which included bribery and illegal campaign contributions.
Huang, who is charged with several felonies for his bribes to Huizar with Chan’s assistance, fled the United States shortly after the execution of numerous federal search warrants in this case and is considered a fugitive from justice. Huang’s downtown Los Angeles-based company Shen Zhen New World I LLC was convicted in 2022 of eight felonies for – through Huang’s actions as its owner – paying more than $1 million in bribes to Huizar for his critical support for the L.A. Grand Hotel redevelopment project. The company was sentenced to five years of probation, fined $4 million, and ordered to pay the costs of prosecution.
Relatedly, real estate developer Dae Yong Lee, a.k.a. “David Lee,” 60, of Bel Air, and one of his companies, 940 Hill LLC, were convicted in 2022 of providing $500,000 in cash to Huizar and Esparza in exchange for their help in resolving a labor organization’s appeal of a downtown Los Angeles development project. Lee is serving a six-year federal prison sentence and was fined $750,000. 940 Hill LLC was sentenced to five years’ probation, fined over $1 million, and ordered to pay the costs of prosecution.
Prosecutors also have secured guilty pleas from Chiang; Esparza; lobbyist Morrie Goldman; and political fundraiser Justin Jangwoo Kim. Each of these defendants cooperated with the government and testified during at least one trial in this case and will be sentenced at upcoming hearings in November.
The FBI and IRS Criminal Investigation investigated this matter.
Assistant United States Attorney Mack E. Jenkins, Chief of the Criminal Division, and Assistant United States Attorneys Cassie D. Palmer, Susan S. Har, and Brian R. Faerstein of the Public Corruption and Civil Rights Section prosecuted this case.
Any member of the public who has information related to this or any other public corruption matter in the City of Los Angeles is encouraged to send information to the FBI’s email tip line at https://tips.fbi.gov or to contact the FBI’s Los Angeles Field Office at (310) 477-6565.
Sixty-Eight Defendants Charged in Indictment of Dozens of Members and Associates of California White Supremacist GangRead the Press Release
Federal and local law enforcement today arrested 42 members and associates of the SFV Peckerwoods, a San Fernando Valley, California-based white supremacist street gang, on a 76-count federal grand jury indictment alleging they engaged in a years-long pattern of racketeering activity that included trafficking of drugs — including fentanyl — illegal firearms possession, and COVID-19 benefits and loan fraud.
“The Justice Department has dealt a decisive blow to the San Fernando Valley (SFV) Peckerwoods, a violent white supremacist gang that we charge is responsible for trafficking deadly fentanyl and other drugs, committing robberies, and perpetrating financial fraud to fund both their criminal enterprise and that of the Aryan Brotherhood,” said Attorney General Merrick B. Garland. “With today’s charges and arrests, the Justice Department, together with our state, local, and federal partners has targeted the heart of this gang’s operations, and we will continue to zero in on the criminal enterprises that endanger our communities.”
The indictment unsealed today charges a total of 68 defendants with a score of federal crimes: conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act, conspiracy to distribute controlled substances, distribution of controlled substances, bank fraud, conspiracy to commit bank fraud, aggravated identity theft, possession of a firearm in furtherance of a drug trafficking crime, unlawful possession of a firearm and ammunition by a felon, and possession of 15 or more unauthorized access devices.
The defendants arrested today are expected to be arraigned this afternoon in U.S. District Court in downtown Los Angeles.
During the investigation, law enforcement seized large quantities of illegal firearms, and dozens of pounds of fentanyl, methamphetamine, and heroin, according to the indictment.
“The Peckerwoods’ violent white-supremacist ideology and wide-ranging criminal activity pose a grave menace to our community,” said U.S. Attorney Martin Estrada for the Central District of California. “By allegedly engaging in everything from drug-trafficking to firearms offenses to identity theft to COVID fraud, and through their alliance with a neo-Nazi prison gang, the Peckerwoods are a destructive force. In prosecuting the members of the Peckerwoods criminal organization, our office is carrying out its mission to protect the public from the most dangerous threats.”
“This operation, led by our Joint Terrorism Task Force, disrupted a racially motivated violent extremist group who engaged in a wide range of criminal activity,” said Assistant Director in Charge Akil Davis of the FBI Los Angeles Field Office. “This case strikes at the heart of our collective mission to rid our communities of the corrosive elements that fuel violence and extremism that greatly impact our way of life. The FBI, along with our federal, state, and local partners, remains strongly committed to working every day to make sure the people of the Southland remain safe.”
“The San Fernando Valley Peckerwoods, the Aryan Brotherhood, and their associates are fused by one thing: hatred,” said Special Agent in Charge Matthew Allen of the Drug Enforcement Administration (DEA) Los Angeles Field Division. “It appears, however, that the business of hate was not enough for them. Driven by greed, they engaged in other crimes, including drug distribution, pushing out deadly fentanyl onto our streets. Operating from corners of the San Fernando Valley, they conducted their crimes within and beyond the 8-1-8 community. Today’s large-scale indictments and arrests reflect our relentless commitment to dismantling criminal organizations that continue to harm our communities.”
According to the indictment that a grand jury returned on Sept. 26, the Peckerwoods is a street gang based in communities in the San Fernando Valley whose members engage in a wide variety of criminal activity, including drug trafficking, violent crime, and fraud. As a white supremacist gang, the Peckerwoods at times takes orders from the Aryan Brotherhood, California’s dominant prison-based white supremacist gang, and maintains an alliance with the Mexican Mafia prison gang, which controls most Latino street gangs in California. The Peckerwoods use Nazi tattoos, graffiti, and iconography to indicate their violent white supremacy extremist ideology. These tattoos and iconography include swastikas, the symbol “88”, used by violent white supremacy extremists as code for “Heil Hitler”, and images of Nazi aircraft.
Members and associates of the gang used social media to share information with each other about their criminal activities and gang rules, to identify gang members in good standing, and to target people who broke the gang’s rules. The social media use included a members-only Facebook group and private, direct messages between the gang’s members and associates.
From at least December 2016 to September, Peckerwoods members conducted and participated in the affairs of their criminal enterprise by engaging in violence and threats of violence to preserve and expand the gang’s criminal operations, which promoted a climate of fear. Members and associates of the gang illegally maintained firearms and ammunition in furtherance of these aims.
To generate revenue for the gang, its members trafficked narcotics, including fentanyl, heroin, and methamphetamine. Specifically, lead defendant Claire Patricia Haviland, 62, of Chatsworth, California, and co-defendants Brian Glenn Ekelund, 53, of Chatsworth, and Brianne Brewer, 38, of North Hollywood, California, maintained and oversaw drug stash houses where large quantities of fentanyl, heroin, methamphetamine, and other drugs were stored prior to distribution. Haviland and Ekelund allegedly mailed illegal drugs to customers and used applications such as Zelle and CashApp to receive money from drug buyers and send money to their drug sources.
They also generated revenue via robberies and financial fraud and participated in identity theft schemes. For example, from at least March 2021 to July 2023, defendants Sean Craig Gluckman, 35, of Encino, California; Maria Anna James, 30, of Canyon Country, California; and others submitted false and fraudulent applications for the Paycheck Protection Program (PPP), which was designed to aid businesses harmed by the economic fallout from the COVID-19 pandemic. The defendants – posing as sole proprietors – signed fraudulent PPP loan applications on behalf of individuals incarcerated in California state prisons and collected a portion of the fraudulently obtained proceeds from co-conspirators as payment for their assistance.
In April 2021, Gluckman submitted an application that falsely stated he was a self-employed “artist/writer” with a gross income of nearly $250,000. Later that month, he obtained a PPP loan in the amount of $20,833. In a separate scheme, Gluckman submitted fraudulent unemployment insurance (UI) applications in the names of other people to the California Employment Development Department (EDD) to fraudulently obtain jobless benefits.
“The proliferation of gang related organized crime deteriorates the core of our society,” said Chief Dominic Choi of the Los Angeles Police Department. “Taking guns out of the hands of gang members and drugs from our streets is just one more step towards reducing this deterioration. Today is yet another example of how local, regional, and federal law enforcement, with a matched dedication, are working together to investigate, apprehend and prosecute criminals.”
“When criminal organizations cross jurisdictional lines, it makes conducting investigations and subsequent prosecutions much more difficult,” said Sheriff Jim Fryhoff of the Ventura County, California, Sheriff’s Office. “Having our federal law enforcement partners involvement in such cases greatly enhances our ability to protect not only the citizens of our county, but also those of our region of the state.”
If convicted, the defendants face a maximum penalty of life in prison.
The FBI, DEA, Los Angeles Police Department, and Ventura County Sheriff’s Office are investigating the case. The Simi Valley Police Department; California Highway Patrol; Glendale Police Department; Burbank Police Department; Redondo Beach Police Department; Beverly Hills Police Department; Los Angeles County Sheriff’s Department; U.S. Marshals Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; Department of Veterans Affairs Police; Department of Labor; Federal Bureau of Prisons; Los Angeles County Probation Department; Los Angeles County Department of Children and Family Services; Pasadena Fire Department; U.S. Customs and Border Protection; and IRS Criminal Investigation provided assistance in the investigation.
Assistant U.S. Attorneys Reema M. El-Amamy, Jeremiah M. Levine, and Alexander Su for the Central District of California are prosecuting this case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department 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. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.
On Sept. 15, 2022, the Attorney General selected the U.S. Attorneys’ Offices for the Central and Eastern Districts of California to jointly head one of three national COVID-19 Fraud Strike Force Teams. The Justice Department established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. The Strike Force combines law enforcement and prosecutorial resources and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors, as well as those who committed multiple instances of pandemic relief fraud. The Strike Force uses prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds. Additional information regarding the Strike Force may be found at www.justice.gov/opa/pr/justice-department-announces-covid-19-fraud-strike-force-teams.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
68 Defendants Charged in Indictment of Dozens of Members and Associates of San Fernando Valley White Supremacist GangRead the Press Release
LOS ANGELES – Federal and local law enforcement have arrested 42 members and associates of the SFV Peckerwoods, a San Fernando Valley-based white supremacist street gang, on a 76-count federal grand jury indictment alleging they engaged in a years-long pattern of racketeering activity that included trafficking of drugs – including fentanyl – illegal firearms possession, and COVID-19 benefits and loan fraud, the Justice Department announced today.
The indictment unsealed today charges a total of 68 defendants with a score of federal crimes: conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act, conspiracy to distribute controlled substances, distribution of controlled substances, bank fraud, conspiracy to commit bank fraud, aggravated identity theft, possession of a firearm in furtherance of a drug trafficking crime, unlawful possession of a firearm and ammunition by a felon, and possession of 15 or more unauthorized access devices.
The 29 defendants arrested today are expected to be arraigned this afternoon in United States District Court in downtown Los Angeles. Prior to today’s takedown, 13 defendants were already in custody.
During the investigation, law enforcement seized large quantities of illegal firearms, and dozens of pounds of fentanyl, methamphetamine, and heroin, according to the indictment.
“The Peckerwoods’ violent white-supremacist ideology and wide-ranging criminal activity pose a grave menace to our community,” said United States Attorney Martin Estrada. “By allegedly engaging in everything from drug-trafficking to firearms offenses to identity theft to COVID fraud, and through their alliance with a neo-Nazi prison gang, the Peckerwoods are a destructive force. In prosecuting the members of the Peckerwoods criminal organization, our office is carrying out its mission to protect the public from the most dangerous threats.”
“The Justice Department has dealt a decisive blow to the San Fernando Valley (SFV) Peckerwoods, a violent white supremacist gang that we charge is responsible for trafficking deadly fentanyl and other drugs, committing robberies, and perpetrating financial fraud to fund both their criminal enterprise and that of the Aryan Brotherhood,” said Attorney General Merrick B. Garland. “With today’s charges and arrests, the Justice Department, together with our state, local, and federal partners has targeted the heart of this gang’s operations, and we will continue to zero in on the criminal enterprises that endanger our communities.”
“This operation, led by our Joint Terrorism Task Force, disrupted a racially motivated violent extremist group who engaged in a wide range of criminal activity,” said Akil Davis, Assistant Director in Charge of the FBI Los Angeles Field Office. “This case strikes at the heart of our collective mission to rid our communities of the corrosive elements that fuel violence and extremism that greatly impact our way of life. The FBI, along with our federal, state, and local partners, remains strongly committed to working every day to make sure the people of the Southland remain safe.”
“The San Fernando Valley Peckerwoods, the Aryan Brotherhood and their associates are fused by one thing: hatred,” Matthew Allen, Special Agent in Charge, DEA Los Angeles Field Division. “It appears, however, that the business of hate was not enough for them. Driven by greed, they engaged in other crimes, including drug distribution, pushing out deadly fentanyl onto our streets. Operating from corners of the San Fernando Valley, they conducted their crimes within and beyond the 8-1-8 community. Today’s large-scale indictments and arrests reflect our relentless commitment to dismantling criminal organizations that continue to harm our communities.”
According to the indictment that a grand jury returned on September 26, the Peckerwoods is a street gang based in communities in the San Fernando Valley whose members engage in a wide variety of criminal activity, including drug trafficking, violent crime, and fraud. As a white supremacist gang, the Peckerwoods at times takes orders from the Aryan Brotherhood, California’s dominant prison-based white supremacist gang, and maintains an alliance with the Mexican Mafia prison gang, which controls most Latino street gangs in California. The Peckerwoods use Nazi tattoos, graffiti, and iconography to indicate their violent white supremacy extremist ideology. These tattoos and iconography include swastikas, the symbol “88”, used by violent white supremacy extremists as code for “Heil Hitler,” and images of Nazi aircraft.
Members and associates of the gang used social media to share information with each other about their criminal activities and gang rules, to identify gang members in good standing, and to target people who broke the gang’s rules. The social media use included a members-only Facebook group and private, direct messages between the gang’s members and associates.
From at least December 2016 to September 2024, Peckerwoods members conducted and participated in the affairs of their criminal enterprise by engaging in violence and threats of violence to preserve and expand the gang’s criminal operations, which promoted a climate of fear. Members and associates of the gang illegally maintained firearms and ammunition in furtherance of these aims.
To generate revenue for the gang, its members trafficked narcotics, including fentanyl, heroin, and methamphetamine. Specifically, lead defendant Claire Patricia Haviland, 62, of Chatsworth, and co-defendants Brian Glenn Ekelund, 53, of Chatsworth, and Brianne Brewer, 38, of North Hollywood, maintained and oversaw drug stash houses where large quantities of fentanyl, heroin, methamphetamine, and other drugs were stored prior to distribution. Haviland and Ekelund allegedly mailed illegal drugs to customers and used applications such as Zelle and CashApp to receive money from drug buyers and send money to their drug sources.
They also generated revenue via robberies and financial fraud and participated in identity theft schemes. For example, from at least March 2021 to July 2023, defendants Sean Craig Gluckman, 35, of Encino, Maria Anna James, 30, of Canyon Country, and others submitted false and fraudulent applications for the Paycheck Protection Program (PPP), which was designed to aid businesses harmed by the economic fallout from the COVID-19 pandemic. The defendants – posing as sole proprietors – signed fraudulent PPP loan applications on behalf of individuals incarcerated in California state prisons and collected a portion of the fraudulently obtained proceeds from co-conspirators as payment for their assistance.
Gluckman in April 2021 submitted an application that falsely stated he was a self-employed “artist/writer” with a gross income of nearly $250,000. Later that month, he obtained a PPP loan in the amount of $20,833. In a separate scheme, Gluckman submitted fraudulent unemployment insurance (UI) applications in the names of other people to the California Employment Development Department (EDD) to fraudulently obtain jobless benefits.
“The proliferation of gang related organized crime deteriorates the core of our society,” said Los Angeles Police Chief Dominic Choi. “Taking guns out of the hands of gang members and drugs from our streets is just one more step towards reducing this deterioration. Today is yet another example of how local, regional, and federal law enforcement, with a matched dedication, are working together to investigate, apprehend and prosecute criminals.”
“When criminal organizations cross jurisdictional lines, it makes conducting investigations and subsequent prosecutions much more difficult,” said Ventura County Sheriff Jim Fryhoff. “Having our federal law enforcement partners involvement in such cases greatly enhances our ability to protect not only the citizens of our county, but also those of our region of the state.”
“The DOL-OIG will continue to allocate investigative resources to support our local, state, and federal law enforcement partners in the fight against organized crime, particularly when it involves matters within our jurisdiction,” said Quentin Heiden, Special Agent in Charge of the United States Department of Labor Office of Inspector General’s Western Region. “This investigation reinforces our commitment to protecting the integrity of the nation's unemployment system.”
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, the defendants would face a statutory maximum sentence of life in federal prison.
The FBI, the Drug Enforcement Administration, the Los Angeles Police Department, and the Ventura County Sheriff’s Office are investigating this matter. Other law enforcement agencies that assisted in today’s takedown are the Simi Valley Police Department; California Highway Patrol; the Glendale Police Department; the Burbank Police Department; the Redondo Beach Police Department; the Beverly Hills Police Department; the Los Angeles County Sheriff’s Department; the United States Marshals Service; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the United States Department of Veterans Affairs Police; the United States Department of Labor; the Federal Bureau of Prisons; the Los Angeles County Probation Department; the Los Angeles County Department of Children and Family Services; the Pasadena Fire Department; United States Customs and Border Protection; and IRS Criminal Investigation.
Assistant United States Attorneys Reema M. El-Amamy of the Terrorism and Export Crimes Section, Jeremiah M. Levine of the Violent and Organized Crime Section, and Alexander Su of the Asset Forfeiture and Recovery Section are prosecuting this case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
On September 15, 2022, the Attorney General selected the U.S. Attorney’s Offices for the Central and Eastern Districts of California to jointly head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. The Strike Force combines law enforcement and prosecutorial resources and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors, as well as those who committed multiple instances of pandemic relief fraud. The Strike Force uses prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds. Additional information regarding the Strike Force may be found at https://www.justice.gov/opa/pr/justice-department-announces-covid-19-fraud-strike-force-teams.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Ohio Man Agrees to Plead Guilty to Interstate Transportation of Stolen Andy Warhol Art PrintRead the Press Release
LOS ANGELES – An Ohio man has agreed to plead guilty to a federal criminal charge for trafficking a stolen Andy Warhol print worth at least $175,000.
Image Source: Federal Plea AgreementBrian Alec Light, 58, of Hudson, Ohio (formerly a resident of downtown Los Angeles), is expected to plead guilty in the coming weeks to one count of interstate transportation of stolen goods. His initial appearance in federal court is scheduled for October 28.
According to his plea agreement, a thief stole the Warhol print – a trial proof depicting former Soviet Union leader Vladimir Lenin and was print number 44 of 46 total Warhol made – from the victim’s home in Los Angeles County in early 2021. The victim informed law enforcement of its theft soon after, as well as the original gallery in West Hollywood that sold him the artwork. Days after the theft, the thief brought the artwork to a pawnshop, which purchased it. The pawnshop’s owner contacted Light for help selling the artwork, which Light knew was stolen. Light contacted an auction house to sell the print within weeks of its theft. Light told the pawnshop owner to drop off the Warhol at the auction house in Beverly Hills so that it could be transported to Dallas for inspection and sale, which the pawnshop owner did.
The auction house shipped the Warhol artwork to Dallas where it was to be inspected and included in an upcoming auction in the spring of 2021. An employee of the auction house in Dallas reached out to the gallery in West Hollywood for its opinion of the piece. The gallery immediately recognized the piece as the stolen piece of art. As a result, the gallery notified the auction house of its stolen nature and notified the FBI. When the FBI questioned Light about it, he lied and created a fake receipt purporting to show that he bought the print before it was stolen.
Upon pleading guilty, Light will face a statutory maximum sentence of 10 years in federal prison.
As part of his plea agreement, Light will forfeit the stolen artwork retrieved by law enforcement.
The FBI’s Art Crime Team is investigating this matter.
Assistant United States Attorney Erik Silber, Senior Counsel in the Criminal Division and Assistant United States Attorneys Dominique Caamano and Matthew O’Brien, of the Environmental Crimes and Consumer Protection Section, are prosecuting this case.
Man Sentenced to 35 Years in Prison for Attempting to Murder Two Jewish Men Leaving L.A. Synagogues Last YearRead the Press Release
LOS ANGELES – A man who last year shot and wounded two Jewish men as they left religious services in the Pico-Robertson area of Los Angeles was sentenced today to 420 months in federal prison.
Jaime Tran, 30, formerly of Riverside, was sentenced by United States District Judge George H. Wu, who set a restitution hearing for December 2, 2024.
Tran pleaded guilty on June 3 to two counts of hate crimes with intent to kill and two counts of using, carrying, and discharging a firearm during and in relation to a crime of violence.
“Targeting people for death based solely on their religious and ethnic background brings back memories of the darkest chapters in human history,” said United States Attorney Martin Estrada. “Such hate-fueled violence has no place in America. We hope the sentence imposed today sends a strong message to all in our community that we will not tolerate antisemitism and hate of any sort. For those who engage in hate crimes, the punishment will be severe.”
“After years of spewing antisemitic vitriol, the defendant planned and carried out a two-day attack attempting to murder Jews leaving synagogue in Los Angeles,” said Attorney General Merrick B. Garland. “Vile acts of antisemitic hatred endanger the safety of individuals and entire communities, and allowing such crimes to go unchecked endangers the foundation of our democracy itself. As millions of Jewish Americans prepare to observe the High Holidays of Rosh Hashanah and Yom Kippur, the Justice Department reaffirms its commitment to aggressively confronting, disrupting, and prosecuting criminal acts motivated by antisemitism, or by hatred of any kind. No Jewish person in America should have to fear that any sign of their identity will make them the victim of a hate crime.”
“This country was founded by many who fought for religious freedom, and practicing our religion continues to be a sacred and fundamental right,” said Akil Davis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The FBI will always defend that constitutional right. Those who violate the First Amendment by violent acts, those who would target the innocent based on hatred, will be held accountable.”
“While this sentencing cannot fully restore the sense of safety stolen from the two victims and the Jewish community, it is a decisive step towards justice and a clear message that such acts of hate and violence will not be tolerated,” said Los Angeles Police Chief Dominic Choi.
According to the government’s sentencing position, Tran obsessed over his antisemitic hatred for years leading up to the attack. In 2018, Tran left graduate school after making antisemitic comments about other students. From August 2022 to December 2022, Tran’s antisemitic statements escalated and included increasingly violent language, including messages to former classmates such as “I want you dead, Jew,” and “Someone is going to kill you, Jew.” Tran described himself as a “ticking time bomb” and maintained social media accounts with the handle “k1llalljews.”
In November 2022, Tran emailed two dozen former classmates a flyer containing antisemitic propaganda, including the statement, “EVERY SINGLE ASPECT OF THE COVID AGENDA IS JEWISH.” The following month, Tran emailed his former classmates excerpts from an anti-Semitic website further denigrating Jewish persons.
As a result of previous mental health holds, as of 2023, Tran was prohibited from purchasing firearms. In January 2023 in Phoenix, Tran asked a third party to buy two firearms for him. Tran selected the firearms he wanted and paid approximately $1,500 in cash to the third party, who then purchased them. Law enforcement identified the third party, who has now pleaded guilty in Arizona to illegally selling Tran the firearm used in the shootings. Messages later retrieved from his phone reflected that Tran had asked multiple people to purchase firearms for him and had offered to pay more if no background check was performed.
In early February 2023, Tran sent an online message stating: “it’s time to kill all Jews.” On the morning of February 15, 2023, Tran used the internet to research locations with a “kosher market,” planning to shoot someone near a kosher market because he believed there would be Jewish people in the area. Tran drove to Pico-Robertson and shot a Jewish victim wearing a yarmulke as he was leaving religious services at a synagogue. Tran, believing the victim was Jewish, shot him at close range centimeters from his spine, intending to kill him. Tran then fled the scene in his car.
The next morning, February 16, 2023, Tran returned to the Pico-Robertson area, intending to shoot another Jewish person. Tran shot a second Jewish victim, also wearing a yarmulke and leaving a synagogue after attending religious services. Tran shot the victim at close range, intending to kill him, as the victim crossed the street. Tran again fled the scene.
Both victims survived the attacks. Law enforcement arrested Tran on February 17, 2023, after a witness reported seeing someone shooting a firearm behind a motel. When he was arrested, Tran told law enforcement that he was “practicing” with his assault weapon. In its sentencing position, the government argued that “[h]ad [Tran] not been caught the night of his second shooting, his campaign of terror would likely have continued.”
The FBI and the Los Angeles Police Department investigated this matter. The Riverside County Sheriff’s Department, the Cathedral City Police Department, the Fountain Valley Police Department, the Beverly Hills Police Department, and the UCLA Police Department provided substantial assistance.
Assistant United States Attorneys Kathrynne N. Seiden of the Terrorism and Export Crimes Section and Frances S. Lewis of the Public Corruption and Civil Rights Section prosecuted this case.
Long Beach Man Pleads Guilty to Participating in Smash-and-Grab Robbery at Beverly Hills Jeweler that Caused $2.6 Million in LossesRead the Press Release
LOS ANGELES – A Long Beach man pleaded guilty today to a federal criminal charge for participating in the daylight smash-and-grab robbery of a Beverly Hills jewelry store in 2022 in which more than $2.6 million in merchandise was stolen – and which he later displayed on Instagram.
Ladell Tharpe, 39, pleaded guilty to one count of interference with commerce by robbery (Hobbs Act).
According to his plea agreement, on March 23, 2022, Tharpe, Deshon Bell, 22, of Long Beach, and Jimmy Lee Vernon III, 33, also of Long Beach, and other co-conspirators robbed a luxury jewelry store in Beverly Hills. Before, during, and after the robbery, Tharpe led the cars used to transport the robbers and the getaway vehicle to the location. Bell was one of the getaway drivers. Tharpe conducted surveillance and acted as the lookout for the co-conspirators.
Once they had arrived outside the jewelry store, some of the robbers – including Vernon – got out of one of the cars, entered the store and used heavy tools to smash the store’s display cases while employees and customers were present.
The thieves removed from the store’s display cases at least 19 bracelets, seven pairs of earrings, four necklaces, a pair of obelisks, eight rings, and 20 watches, all of which was valued at approximately $2,674,600. The robbers then returned to the car in which Bell was waiting and then fled the scene.
Tharpe posted images of large amounts of cash on Instagram after the robbery with the text “Robbery Gang.”
United States District Judge George H. Wu scheduled a January 6, 2025, sentencing hearing for Tharpe, who will face a statutory maximum sentence of 20 years in federal prison. Tharpe has been in federal custody since March 2023.
Bell and Vernon each have pleaded guilty to one count of Hobbs Act robbery. Judge Wu on February 26 sentenced Bell to one year and one day in federal prison and ordered him to pay $2,674,600 in restitution. The sentencing hearing for Vernon, who has been in federal custody since September 2022, is scheduled for December 5.
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 are prosecuting this case.
Former Executive at Irvine-Based Company That Marketed Faulty Stem Cell Products Sentenced to 3 Years in Federal PrisonRead the Press Release
LOS ANGELES – The imprisoned founder and CEO of an Orange County-based company that marketed stem cell-based products linked to multiple hospitalizations was sentenced today to 36 months in federal prison – consecutive to his current prison sentence.
John Warrington Kosolcharoen, 53, most recently of Rancho Santa Margarita, was sentenced by United States District Judge Otis D. Wright II, who also scheduled a December 3 restitution hearing in this case.
Kosolcharoen pleaded guilty on August 26 to one count of introducing an unapproved new drug into interstate commerce with the intent to defraud and mislead. Kosolcharoen is currently in custody serving a sentence for a separate, unconnected conviction.
“Exploiting the hopes of patients suffering from serious illnesses is not merely greedy, it’s cruel,” said United States Attorney Martin Estrada. “My office will continue to aggressively prosecute those who take advantage of victims’ fears and anxieties to line their pockets.”
“Misleading the public about the safety and effectiveness of purported cures and treatments is illegal,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will work with its law enforcement partners to prosecute individuals who market potentially dangerous products for personal gain.”
Beginning in 2016, Kosolcharoen created two companies, the Irvine-based Liveyon LLC and the San Diego-based Genetech Inc., to manufacture and distribute injectable stem cell products made from human umbilical cord blood. Liveyon marketed the products under different brand names, including “ReGen.”
Kosolcharoen and others misrepresented ReGen as suitable for the treatment of a variety of conditions, such as lung and heart diseases, autoimmune disorders, Alzheimer’s disease, Parkinson’s disease, and others. Liveyon marketed the products throughout the United States until about April 2019 using advertising materials that contained multiple false and misleading statements about their purported safety and effectiveness.
In recent years, the U.S. Food and Drug Administration (FDA) has warned consumers that patients seeking cures and remedies for serious diseases and conditions may be misled about unapproved stem cell products that are illegally marketed, have not been shown to be safe or effective, and, in some cases, may have significant safety issues that put patients at risk. Stem cell products are regulated by FDA, and generally they must have FDA approval before being introduced into interstate commerce.
Kosolcharoen misled the FDA about Liveyon’s activities by directing Liveyon’s purchase orders to falsely state that the stem cell products were being sold “for research purposes only.” In 2018, FDA and the Centers for Disease Control and Prevention (CDC) received reports of patients in multiple states requiring hospitalization for bacterial infections after receiving Liveyon products. Kosolcharoen admitted that he and others fraudulently induced customers into purchasing stem cell-derived Liveyon products by, among other things, misleading the public about the cause and severity of adverse events suffered by Liveyon patients, and falsely reporting and concealing material facts regarding the outcome of an FDA inspection of Genetech. According to FDA records, that inspection documented evidence of significant deviations from good manufacturing and tissue practices.
FDA’s Office of Criminal Investigations; the FBI; Amtrak Office of Inspector General; Defense Criminal Investigative Service; the U.S. Department of Health and Human Services Office of Inspector General; the U.S. Department of Labor Employment Benefits Security Administration; and the California Department of Health Care Services investigated this matter.
Assistant United States Attorneys Mark Aveis of the Major Frauds Section and David H. Chao of the General Crimes Section, Assistant Director Ross S. Goldstein and Trial Attorneys Meredith B. Healy, Kathryn A. Schmidt and Peter J. Leininger of the Justice Department’s Consumer Protection Branch prosecuted this case.
Former California Man Sentenced to 35 Years in Prison for Attempting to Murder Two Jewish Men Leaving Los Angeles Synagogues Last YearRead the Press Release
A former California man who shot and wounded two Jewish men last year as they left religious services in the Pico-Robertson area of Los Angeles was sentenced today to 35 years in prison.
Jaime Tran, 30, formerly of Riverside, pleaded guilty on June 3 to two counts of hate crimes with intent to kill and two counts of using, carrying, and discharging a firearm during and in relation to a crime of violence.
“After years of spewing antisemitic vitriol, the defendant planned and carried out a two-day attack attempting to murder Jews leaving synagogue in Los Angeles,” said Attorney General Merrick B. Garland. “Vile acts of antisemitic hatred endanger the safety of individuals and entire communities, and allowing such crimes to go unchecked endangers the foundation of our democracy itself. As millions of Jewish Americans prepare to observe the High Holidays of Rosh Hashanah and Yom Kippur, the Justice Department reaffirms its commitment to aggressively confronting, disrupting, and prosecuting criminal acts motivated by antisemitism, or by hatred of any kind. No Jewish person in America should have to fear that any sign of their identity will make them the victim of a hate crime.”
“Targeting people for death based solely on their religious and ethnic background brings back memories of the darkest chapters in human history,” said U.S. Attorney Martin Estrada for the Central District of California. “Such hate-fueled violence has no place in America. We hope the sentence imposed today sends a strong message to all in our community that we will not tolerate antisemitism and hate of any sort. For those who engage in hate crimes, the punishment will be severe.”
“This country was founded by many who fought for religious freedom, and practicing our religion continues to be a sacred and fundamental right,” said Assistant Director in Charge Akil Davis of the FBI Los Angeles Field Office. “The FBI will always defend that constitutional right. Those who violate the First Amendment by violent acts, those who would target the innocent based on hatred, will be held accountable.”
“While this sentencing cannot fully restore the sense of safety stolen from the two victims and the Jewish community, it is a decisive step towards justice and a clear message that such acts of hate and violence will not be tolerated,” said Los Angeles Police Chief Dominic Choi.
According to the government’s sentencing submission, Tran obsessed over his antisemitic hatred for years leading up to the attack. In 2018, Tran left graduate school after making antisemitic comments about other students. From August 2022 to December 2022, Tran’s antisemitic statements escalated and included increasingly violent language, including messages to former classmates such as “I want you dead, Jew,” and “Someone is going to kill you, Jew.” Tran described himself as a “ticking time bomb” and maintained social media accounts with the handle “k1llalljews.”
In November 2022, Tran emailed two dozen former classmates a flyer containing antisemitic propaganda, including the statement, “EVERY SINGLE ASPECT OF THE COVID AGENDA IS JEWISH.” The following month, Tran emailed his former classmates excerpts from an antisemitic website further denigrating Jewish persons.
As a result of previous mental health holds, as of 2023, Tran was prohibited from purchasing firearms. In January 2023, in Phoenix, Tran asked a third party to buy two firearms for him. Tran selected the firearms he wanted and paid approximately $1,500 in cash to the third party, who then purchased them. Law enforcement identified the third party, who has now pleaded guilty in Arizona to illegally selling Tran the firearm used in the shootings. Messages later retrieved from his phone reflected that defendant had asked multiple people to purchase firearms for him and had offered to pay more if no background check was performed.
In early February 2023, Tran sent an online message stating: “it’s time to kill all Jews.” On the morning of Feb. 15, 2023, Tran used the internet to research locations with a “kosher market,” planning to shoot someone near a kosher market because he believed there would be Jewish people in the area. Tran drove to Pico-Robertson and shot a Jewish victim wearing a yarmulke as he was leaving religious services at a synagogue. Tran, believing the victim was Jewish, shot him at close range centimeters from his spine, intending to kill him. Tran then fled the scene in his car.
The next morning, Feb. 16, 2023, Tran returned to the Pico-Robertson area, intending to shoot another Jewish person. Tran shot a second Jewish victim, also wearing a yarmulke and leaving a synagogue after attending religious services. Tran shot the victim at close range, intending to kill him, as the victim crossed the street. Tran again fled the scene.
Both victims survived the attacks. Law enforcement arrested Tran on Feb. 17, 2023, after a witness reported seeing someone shooting a firearm behind a motel. When he was arrested, Tran told law enforcement that he was “practicing” with his assault weapon. In its sentencing position, the government argued that “[h]ad defendant not been caught the night of his second shooting, his campaign of terror would likely have continued.”
The FBI and Los Angeles Police Department investigated the case. The Riverside County Sheriff’s Department, Cathedral City Police Department, Fountain Valley Police Department, Beverly Hills Police Department, and UCLA Police Department, all in California, provided substantial assistance.
Assistant U.S. Attorneys Kathrynne N. Seiden and Frances S. Lewis for the Central District of California prosecuted the case.
Santa Maria Man Charged in Federal Complaint Alleging He Injured Five People in Bomb Attack in Lobby of County CourthouseRead the Press Release
LOS ANGELES – A Santa Barbara County man was charged today in a federal criminal complaint alleging he committed a bomb attack at a courthouse in Santa Maria on Wednesday, in which at least five people were injured.
Nathaniel James McGuire, 20, of Santa Maria, is charged with maliciously damaging a building by means of explosive.
McGuire, who was arrested Wednesday shortly after the attack, is expected to make his initial appearance Friday afternoon in United States District Court in downtown Los Angeles.
According to an affidavit filed with the complaint, on September 25, McGuire entered a courthouse of Santa Barbara County Superior Court and threw a bag into the lobby. The bag exploded and McGuire left the courthouse on foot. The explosion injured at least five people who were present at the courthouse at that time.
Shortly thereafter, McGuire was apprehended and detained by Santa Barbara County sheriff’s deputies as he was trying to access a red Ford Mustang car parked outside the building. McGuire allegedly yelled that the government had taken his guns and that everyone needed to fight, rise up, and rebel.
Inside the car, a deputy saw ammunition, a flare gun, and a box of fireworks. A search of the car revealed a shotgun, a rifle, more ammunition, a suspected bomb, and 10 Molotov cocktails. Law enforcement later rendered the bomb safe.
A search of McGuire’s residence revealed an empty can with nails glued to the outside, a duffel bag containing matches, black powder, used and unused fireworks, and papers that appeared to be recipes for explosive material.
“This defendant’s alleged misconduct was chilling,” said United States Attorney Martin Estrada. “Not only did he injure five people and traumatize many more, but he possessed a cache of weapons that would have allowed him to wreak even greater destruction had he not been stopped. Attacks on our courts, law enforcement officers, and other public servants are unacceptable, and it is critical that those who carry out such assaults be prosecuted to the fullest extent.”
“The idea of intentionally setting off an explosive device to do harm and avoid justice in the process shocks the conscience,” said Akil Davis, Assistant Director in Charge of the FBI Los Angeles Field Office. “Make no mistake, we are committed to holding Mr. McGuire accountable for this blatant act of violence. As always, we encourage the public to remain vigilant and to promptly report suspicious activities which could represent a threat to public safety.”
“This was a shocking and unprecedented crime in our county, but, in spite of its audacity, the security of the Santa Maria courthouse was maintained,” said Santa Barbara County Sheriff Bill Brown. “The suspect was swiftly apprehended by a court security officer, a sheriff’s deputy, two California Highway Patrol officers, and a district attorney’s investigator; we are proud of their resolute actions that almost certainly prevented further violence. We are also grateful for the substantial investigative assistance that has been provided by our colleagues with the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and from U.S. Attorney Martin Estrada and his office.”
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, McGuire would face a mandatory minimum sentence of seven years in federal prison and a statutory maximum sentence of 40 years in federal prison.
The FBI and the Santa Barbara County Sheriff’s Office are investigating this matter.
Assistant United States Attorneys Mark Takla and Kathrynne N. Seiden of the Terrorism and Export Crimes Section are prosecuting this case with substantial assistance from Trial Attorney Patrick Cashman of the Counterterrorism Section in the Department of Justice’s National Security Division.
Convicted Corporate Raider, His Longtime Accountant, and Vaping Company Charged in Indictment Alleging Conspiracy and FraudRead the Press Release
LOS ANGELES – A corporate takeover specialist and convicted felon has been indicted on federal charges for his alleged years-long avoidance of a judgment – now exceeding $180 million – to the U.S. Securities and Exchange Commission (SEC) while running a cannabis and lifestyle brand company purportedly helmed by his social media influencer son – a company whose investors he allegedly cheated, the Justice Department announced today.
The nine-count indictment returned on Thursday charges the following defendants with one count of conspiracy to defraud the United States, one count of conspiracy to commit wire fraud and securities fraud, and four counts of wire fraud:
- Paul A. Bilzerian, 74, a resident of St. Kitts and Nevis and a former U.S. citizen who was convicted in 1989 in the Southern District of New York of securities fraud and was sentenced to four years in federal prison for that crime; and
- Ignite International Brands Ltd., a formerly publicly traded, Canada-based cannabis company that previously operated out of Los Angeles and whose CEO was Bilzerian’s son, a social media influencer identified in the indictment as “D.B.”
A third defendant charged – and arrested today – is:
- Scott Rohleder, 61, of Morrisville, North Carolina, Bilzerian’s long-time accountant who held various roles at Ignite, including chief financial officer, is charged with one count of conspiracy to defraud the United States, one count of conspiracy to commit wire fraud and securities fraud, three counts of wire fraud, and three counts of assisting with the preparation of false tax returns.
“This indictment alleges a long-running pattern of criminal behavior to avoid a regulator’s judgment, mislead investors, and cheat the IRS,” said United States Attorney Martin Estrada. “My office will continue to use all tools available to protect investors and ensure the security of our nation’s economy.”
According to the indictment, the SEC in 1989 brought a civil action against Bilzerian based on the same securities violations that led to his criminal conviction in the Southern District of New York, for which defendant was sentenced to four years in prison. In 1993, the SEC obtained civil judgments totaling approximately $62,337,600 against Bilzerian. Since then, Bilzerian has evaded enforcement of the judgments. In 2000, a federal court found Bilzerian in contempt of the SEC judgments and appointed a receiver to collect his assets to satisfy them. The SEC has only recovered approximately $547,000 toward satisfaction of the judgments, which now – with interest – exceed $180 million.
From December 2018 to September 2024, Bilzerian, Rohleder, and Ignite allegedly conspired to impede the SEC from collecting on the judgments. To do so, Bilzerian operated numerous shell companies, including International Investments Ltd., in the United States while concealing his interest in and control over those companies by using various nominee owners. To continue to deploy his wealth in the United States while evading the SEC judgments, Bilzerian – with Rohleder’s help – funneled millions of dollars of his assets through his shell companies to fund Ignite while concealing his role in the company’s ownership and management. Meanwhile, to avoid paying the SEC judgments, Bilzerian falsely represented that he was indigent, including by providing false financial disclosures that omitted his considerable assets.
On paper, Ignite’s CEO was Bilzerian’s son D.B. – a professional poker player who gained notoriety on social media for his glamorous and ostentatious lifestyle. In fact, Bilzerian exercised de facto control of the company. Together with Rohleder, Bilzerian oversaw Ignite’s operations, strategy, marketing, and fundraising, to the point of holding daily management meetings. Bilzerian also exerted significant influence in decisions to hire and fire Ignite’s executives and members of its board of directors.
Despite Bilzerian’s prominent leadership role at Ignite, the defendants concealed his involvement, including by omitting his name in publicly filed disclosures. After learning that federal law enforcement had become aware of Bilzerian’s involvement in Ignite, the company also issued a press release that misleadingly characterized Bilzerian and Rohleder as “unpaid consultants” for Ignite.
The defendants also allegedly misled Ignite’s investors by making materially false statements about the company’s revenues for the fourth quarter of 2020, inflating sales figures by including unsold inventory stored by a different business. In January 2021, after Ignite issued a false and misleading press release about its sales, its share price increased from 42 cents to $1.20 per share, representing a gain of approximately $84 million in market capitalization.
Months later, when Ignite’s auditor could not verify the sale of the unsold inventory, Bilzerian caused Ignite to “sell” approximately $4.63 million in vape products to a shell company he controlled. Bilzerian and Rohleder backdated the sale to make it falsely appear that it occurred in 2020. In later reporting the “sale” to Ignite’s investors, the defendants concealed Bilzerian’s ownership of the shell company and the fact that the shell company was not a vape product distributor, meaning it could only sell the inventory by competing with Ignite.
Finally, Rohleder allegedly assisted in the preparation of D.B.’s tax returns, which included false and fraudulent representations that caused a tax loss of approximately $1,536,949 to the IRS for the tax years 2018 to 2020. Rohleder did so by falsely characterizing D.B.’s Las Vegas mansion, which he purchased in 2018 for $8.5 million, as a rental property. When listing D.B.’s personal address on the tax returns, Rohleder used an address corresponding to a hangar at Harry Reid International Airport. Rohleder also lied to D.B.’s tax preparer by stating that D.B.’s November 2018 sale of Ignite stock was a “long-term” capital gain (to be taxed at a lower rate) instead of being a “short-term” capital gain, which would have resulted in a higher tax bill.
“This indictment sends a strong message that no matter how criminals try to hide, the FBI will aggressively investigate those who commit such financial fraud and shirk their obligation to make American taxpayers whole” said Akil Davis, Assistant Director in Charge of the FBI Los Angeles Field Office. “These individuals will now face justice for fraudulently profiting from this elaborate scheme and hopefully the public’s trust in a fair market will be restored.”
“The allegations against Mr. Bilzerian and his co-defendants paint a picture of a long-running, complex scheme to avoid their financial obligations,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “Playing a shell game with money may work in the short term, but IRS Criminal Investigation is the best in the business at finding and following the trail that money always leaves and, especially when our skillsets are paired with those of our fellow law enforcement agencies, there is little chance of evading indictments such as this one.”
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, Bilzerian and Rohleder would face a statutory maximum sentence of five years in federal prison for each conspiracy count and up to 20 years in federal prison for each wire fraud count. Rohleder would face up to three years in federal prison for each tax fraud count.
The SEC today filed civil charges against Bilzerian, Rohleder, and Ignite in connection with the facts alleged in this criminal case.
The FBI and IRS Criminal Investigation are investigating this matter.
Assistant United States Attorneys Alexander B. Schwab of the Corporate and Securities Fraud Strike Force and David H. Chao of the General Crimes Section are prosecuting this case.
California Man Charged in Complaint Alleging He Injured Five People in Bomb Attack in Lobby of County CourthouseRead the Press Release
A California man was charged today in a federal criminal complaint alleging he committed a bomb attack at a courthouse in Santa Maria, California, on Wednesday, in which at least five people were injured.
Nathaniel James McGuire, 20, of Santa Maria, is charged with maliciously damaging a building by means of explosive.
McGuire, who was arrested Wednesday shortly after the attack, is expected to make his initial appearance today in U.S. District Court in downtown Los Angeles.
“This defendant will now face justice in federal court for his alleged attack that injured at least five people and struck fear across a county courthouse and an entire community,” said Attorney General Merrick B. Garland. “Attacks on our public institutions and on public servants threaten the safety of our communities and the rule of law itself. Such attacks will not be tolerated by the Justice Department.”
According to an affidavit filed with the complaint, on Sept. 25, McGuire entered a courthouse of Santa Barbara County Superior Court and threw a bag into the lobby. The bag exploded and McGuire left the courthouse on foot. The explosion injured at least five people who were present at the courthouse at that time.
Shortly thereafter, McGuire was apprehended and detained by law enforcement officials as he was trying to access a red Ford Mustang car parked outside the building. McGuire allegedly yelled that the government had taken his guns and that everyone needed to fight, rise up, and rebel.
Inside the car, a deputy saw ammunition, a flare gun, and a box of fireworks. A search of the car revealed a shotgun, a rifle, more ammunition, a suspected bomb, and 10 Molotov cocktails. Law enforcement later rendered the bomb safe.
A search of McGuire’s residence revealed an empty can with nails glued to the outside, a duffel bag containing matches, black powder, used and unused fireworks, and papers that appeared to be recipes for explosive material.
“This defendant’s alleged misconduct was chilling,” said U.S. Attorney Martin Estrada for Central District of California. “Not only did he injure five people and traumatize many more, but he possessed a cache of weapons that would have allowed him to wreak even greater destruction had he not been stopped. Attacks on our courts, law enforcement officers, and other public servants are unacceptable, and it is critical that those who carry out such assaults be prosecuted to the fullest extent.”
“The idea of intentionally setting off an explosive device to do harm and avoid justice in the process shocks the conscience,” said Assistant Director in Charge Akil Davis of the FBI Los Angeles Field Office. “Make no mistake, we are committed to holding McGuire accountable for this blatant act of violence. As always, we encourage the public to remain vigilant and to promptly report suspicious activities which could represent a threat to public safety.”
“This was a shocking and unprecedented crime in our county, but, in spite of its audacity, the security of the Santa Maria courthouse was maintained,” said Sheriff Bill Brown of Santa Barbara County. “The suspect was swiftly apprehended by a court security officer, a sheriff’s deputy, two California Highway Patrol officers, and a district attorney’s investigator; we are proud of their resolute actions that almost certainly prevented further violence. We are also grateful for the substantial investigative assistance that has been provided by our colleagues with the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and from U.S. Attorney Martin Estrada and his office.”
If convicted, McGuire faces a mandatory minimum penalty of seven years in prison and a maximum penalty of 40 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI and Santa Barbara County Sheriff’s Office are investigating the case.
Assistant U.S. Attorneys Mark Takla and Kathrynne N. Seiden for the Central District of California are prosecuting this case with substantial assistance from Trial Attorney Patrick Cashman of the Justice Department’s National Security Division.
A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.