Central District of California
Press releases recorded for this federal judicial district.
Woodland Hills Brothers Found Guilty of Fraudulently Obtaining Federal Tax Refunds and Laundering Proceeds Through U.K. BanksRead the Press Release
LOS ANGELES – Two San Fernando Valley brothers have been found guilty by a jury of nearly a dozen felonies for fraudulently obtaining hundreds of thousands of dollars in federal income tax refunds, some of which they then laundered through bank accounts held in the United Kingdom, the Justice Department announced today.
Victor A. Ohiri, 55, and Stephen O. Danielson-Ohiri, 54, both of Woodland Hills, were found guilty late Wednesday of one count of conspiracy and 10 counts of theft of government property.
According to evidence presented at their two-day trial, from March 2014 to March 2015, Victor and Stephen Ohiri, together with others in the United Kingdom, conspired to use the Ohiris’ U.S.-based bank accounts to fraudulently obtain hundreds of thousands of dollars of federal income tax refunds.
The co-conspirators filed nearly 20 fraudulent federal income tax returns with the IRS in the names of victim-taxpayers whose identities they had stolen. The co-conspirators used fake documents, such as bogus Forms W-2, to file the fraudulent returns, which requested large tax refunds, often between $8,000 and $10,000.
Based on the fraudulent returns, the IRS issued tax refunds, which were electronically transmitted not to the victim-taxpayers whose identities had been stolen, but instead to bank accounts controlled by Victor and Stephen Ohiri. The Ohiris then wired the majority of those refund proceeds to co-conspirators in the United Kingdom, and they withdrew the rest in cash for themselves.
During the conspiracy, approximately $340,000 in federal income tax refunds was deposited into accounts controlled by the Ohiris.
During the investigation, IRS investigators seized approximately $181,000 from two of Stephen Ohiri’s bank accounts – money that came from just one of the fraudulently obtained tax refunds.
United States District Judge Stephen V. Wilson has scheduled an October 2 sentencing hearing, at which time Victor Ohiri and Stephen Ohiri will face statutory maximum sentences, respectively, of 115 years and 60 years in federal prison.
IRS Criminal Investigation and Homeland Security Investigations investigated this matter.
Assistant United States Attorney Morgan J. Cohen of the Major Frauds Section is prosecuting this case.
Federal Lawsuit Against Los Angeles County Alleges ADA Violations and Discrimination Against Voters with DisabilitiesRead the Press Release
LOS ANGELES – Following a lengthy investigation that determined the County of Los Angeles discriminated against persons with disabilities at vote centers during recent elections, the United States Attorney’s Office today filed a lawsuit alleging the county has failed to comply with the Americans with Disabilities Act of 1990 (ADA).
The investigation into the county’s voting program found that the county, acting through its registrar-recorder, excluded qualified individuals with mobility disabilities and those with vision disabilities from participating in the county’s voting programs. The complaint filed in United States District Court seeks a court order directing the county to comply with the ADA, promptly develop a plan to completely remedy the alleged violations, and not further discriminate against individuals with disabilities.
“Voting is a fundamental right, and we will do everything we can to ensure that it is not limited or denied to anyone in our community,” said United States Attorney Martin Estrada. “Through this lawsuit, we demand that Los Angeles County afford individuals with disabilities an opportunity to participate in the county’s voting program that is equal to that provided to nondisabled individuals.”
“Voting is the bedrock of our democracy, and all voters, including those with disabilities, should have an equal opportunity to participate in the voting process. This lawsuit should send a strong message to officials across the country regarding the Justice Department’s firm commitment to ensuring polling place accessibility,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division.
The lawsuit was brought under Title II of the ADA, which prohibits public entities from discriminating against qualified individuals with disabilities. The federal investigation has focused on physical accessibility for persons with mobility disabilities and persons with vision disabilities at county vote centers during the 2020 primary election, the 2020 general election and the 2022 general election. The United States Attorney’s Office also reviewed other aspects of the county’s voting programs, including curbside voting and ballot drop boxes.
On May 16, the United States issued a Letter of Findings that advised the county of its findings about inaccessible vote centers during the March 2020, November 2020, and November 2022 elections; inaccessible ballot drop boxes from the November 2020 and 2022 elections; and the inaccessible curbside voting system. The United States advised the county that its use of physically inaccessible vote centers and its curbside voting system violated Title II of the ADA.
The lawsuit filed today in Los Angeles alleges that the county is responsible for selecting and providing accessible facilities to be used as polling places or vote centers for federal, state and local elections.
During elections in June 2016, March 2020 and November 2020, the United States Attorney’s Office surveyed well over 250 polling places and vote centers, finding that only a small percentage of them complied with the ADA, according to the complaint.
During the November 2022 general election, the United States surveyed 52 Los Angeles County vote centers to determine if they were compliant with the ADA and applicable standards for accessibility. “Each of the surveyed vote centers had non-compliant elements or features, including, for example, a lack of van accessible parking; wide gaps, abrupt level changes, and excessive cross slopes on designated accessible routes; ramps with steep running slopes and without the required handrails; entrances and/or exits that were obstructed or too narrow, lacked level landings, or had high thresholds; interior routes that had protruding objects; and voting areas with narrow routes,” the complaint alleges.
The lawsuit identifies specific vote centers in Pasadena, North Hollywood, Downey and Watts that are still in use, even though the federal government first alerted the county about accessibility deficiencies at the first three facilities in September 2016 and the Watts location in July 2020.
Other accessibility problems were identified with ballot drop boxes used during the November 2020 and November 2022 general elections.
The lawsuit discusses difficulties experienced during the August 2019 special election by a voter who uses a wheelchair. This voter “reported feeling dismayed and frustrated by her treatment at the polling place and that she felt as if she had lost her freedom to vote privately and independently like everyone else,” the lawsuit states.
The lawsuit is part of the Justice Department’s ADA Voting Initiative, which seeks to increase accessibility for voters with disabilities across the country. A hallmark of the ADA Voting Initiative is its collaboration with jurisdictions to increase accessibility at vote centers or polling places. Through this initiative, the Department of Justice’s Civil Rights Division and U.S. Attorney’s Offices across the country have surveyed more than 2,700 polling places and increased polling place accessibility in more than 50 jurisdictions, including Kenton County, Kentucky; Travis County, Texas; and Lycoming County, Pennsylvania.
Assistant United States Attorney Katherine M. Hikida of the Civil Division’s Civil Rights Section is 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].
Central Coast County Organized Health System, Three Health Care Providers Agree to Pay $68M for Alleged False Claims to Medi-CalRead the Press Release
LOS ANGELES – A county organized health system (COHS) that arranges services for Medi-Cal enrollees in Santa Barbara and San Luis Obispo counties and three Central Coast health care providers have agreed to pay a total of $68 million to resolve allegations that they violated the False Claims Act and the California False Claims Act by submitting or causing the submission of false claims to Medi-Cal related to Medicaid Adult Expansion under the Patient Protection and Affordable Care Act (ACA).
The four entities that entered into settlement agreements with the United States and the State of California are the Santa Barbara San Luis Obispo Regional Health Authority, doing business as CenCal Health, a COHS that contracts to arrange for the provision of health care services under Medi-Cal, which is California’s Medicaid program; Cottage Health System, a not-for-profit hospital network operating in Santa Barbara County; Sansum Clinic, a non-profit outpatient clinic operating in Santa Barbara County; and Community Health Centers of the Central Coast (CHC), a non-profit community health center operating in Santa Barbara and San Luis Obispo counties.
The settlement agreements were executed earlier this month, and late Wednesday a federal judge unsealed the “whistleblower” case naming the entities.
Pursuant to the ACA, beginning in January 2014, Medi-Cal was expanded to cover the previously uninsured “Adult Expansion” population – adults between the ages of 19 and 64 without dependent children with annual incomes up to 133% of the federal poverty level. The federal government fully funded the expansion coverage for the first three years of the program. Under contracts with California’s Department of Health Care Services (DHCS), if CenCal did not spend at least 85% of the funds it received for the Adult Expansion population on “allowed medical expenses,” CenCal was required to pay back to the state the difference between 85% and what it actually spent. California, in turn, was required to return that amount to the federal government.
The four settlements resolve allegations that CenCal, Cottage, Sansum, and CHC knowingly submitted or caused the submission of false claims to Medi-Cal for “Enhanced Services” that were purportedly provided to Adult Expansion Medi-Cal members: by Cottage between January 1, 2014 and June 30, 2016; by Sansum and CHC between January 1, 2015 and June 30, 2016; and by certain other healthcare providers between January 1, 2014 and June 30, 2016.
The United States and California alleged that the payments were not “allowed medical expenses” permissible under the contract between DHCS and CenCal; were pre-determined amounts that did not reflect the fair market value of any Enhanced Services provided; and/or the Enhanced Services were duplicative of services already required to be rendered. The United States and California further alleged that the payments were unlawful gifts of public funds in violation of the California Constitution.
As a result of the settlements, CenCal will pay $49.5 million, Cottage will pay $9 million, Sansum will pay $4.5 million, and CHC will pay $3.15 million to the United States. In addition, California will receive payments totaling $1.85 million.
“These historic settlements demonstrate our steadfast efforts to eradicate fraud involving Medicaid Adult Expansion,” said United States Attorney Martin Estrada. “Health care systems and providers are on notice that the False Claims Act provides us with a powerful tool to ensure that taxpayer-funded health care programs are used for patient care, and not for furtive financial gain.”
“Medicaid expansion funds must be used for their intended purpose of providing health care services to low-income individuals,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “When health care systems and providers knowingly misuse Medicaid funds, they will be held accountable.”
“Federal health care programs are an important resource for millions of Americans to receive medical care,” said Timothy B. DeFrancesca, Special Agent in Charge at the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG will continue to ensure that federal health care funds are used as intended and protected from fraud, waste, and abuse.”
“Medi-Cal is a lifeline that provides access to free or affordable healthcare services for millions of Californians and their families,” said California Attorney General Rob Bonta. “When any healthcare provider or agency defrauds the program, they break the public’s trust and put their own bottom line before the patients who count on them for honest, quality care and services. I am grateful to the Justice Department for its extensive efforts throughout the course of this investigation. The California Department of Justice and our law enforcement partners will continue to hold accountable those who defraud the Medi-Cal program, and protect those it serves.”
The civil settlements include the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Julio Bordas, CenCal’s former medical director. Under the act, a private party can file an action on behalf of the United States and receive a portion of any recovery. Dr. Bordas will receive approximately $12.56 million as his share of the federal recovery.
The United States previously settled similar allegations against Dignity Health (which operates Arroyo Grande Community Hospital, French Hospital Medical Center in San Luis Obispo, and Marian Regional Medical Center in Santa Maria) and Twin Cities Community Hospital and Sierra Vista Regional Medical Center, two subsidiaries of Tenet Healthcare Corporation, relating to payments they received from CenCal under the Adult Expansion program.
The partial resolution obtained in this matter was the result of a coordinated effort between the United States Attorney’s Office; the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; and the California Department of Justice, with assistance from HHS-OIG and DHCS. This case is being handled by Assistant United States Attorney Jack D. Ross of the Civil Fraud Section, and Trial Attorneys Mary Beth Hickox-Howard and Tiffany L. Ho of the Commercial Litigation Branch.
The investigation of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The claims resolved by the settlements are allegations only and there has been no determination of liability.
Redondo Beach Woman Found Guilty of Leading $24 Million Scam that Billed Medicare for Unnecessary Medical Equipment and RepairsRead the Press Release
LOS ANGELES – A South Bay woman was found guilty today of nearly two dozen felonies for billing Medicare more than $24 million by submitting fraudulent claims for medically unnecessary durable medical equipment – mostly power wheelchairs (PWC) – and PWC repairs, many of which were never performed.
Tamara Yvonne Motley, 54, a.k.a. “Tamara Ogembe,” of Redondo Beach, was found guilty by a federal jury of 20 counts of health care fraud, two counts of aggravated identity theft, and one count of conspiracy to commit money laundering.
Following the reading of the guilty verdicts, United States District Judge Stanley Blumenfeld Jr. remanded Motley into custody.
According to evidence presented at her five-day trial, from July 2006 to August 2014, Motley was the de facto owner of the Hawthorne-based Action Medical Equipment and Supplies. From January 2013 to November 2016, Motley was the de facto owner of the Ventura-based Kaja Medical Equipment & Supply. Both companies were enrolled with Medicare in the names of Motley’s out-of-state relatives.
Motley orchestrated a scheme in which she paid marketers for patient referrals and then directed them to take patients to corrupt physicians, who prescribed medically unnecessary durable medical equipment, such as PWCs, that Motley’s companies used to submit fraudulent bills to Medicare.
In January 2011, when Medicare changed the reimbursement rules for PWCs to make the upfront payments less lucrative to suppliers, Action switched to billing Medicare for PWC repairs, and continued that scheme at Kaja once Action was shut down. These repairs were not medically necessary because the patients did not need the PWCs to begin with, were not needed to make the PWCs serviceable in any event, and often simply were not performed. These repairs were expensive – often billed for $3000-$4000 – and accounted for nearly half of Action’s billings and almost all of Kaja’s.
Over an eight-year period, Action billed Medicare more than $18.2 million for DME – most for PWCs, but also for PWC accessories, knee braces and back braces – and the repair or replacement of PWCs. Medicare paid Action nearly $10.3 million.
Between July 2013 and November 2016, Kaja billed Medicare $6.3 million, primarily for PWC repairs. Medicare paid Kaja approximately $2.8 million for those claims.
Judge Blumenfeld scheduled an October 3 sentencing hearing, at which time Motley will face up to 10 years in federal prison for each health care fraud count, up to 20 years in federal prison for the money laundering conspiracy count, and a mandatory sentence of two years in federal prison consecutive to the other sentences for the aggravated identity theft counts.
Two other defendants have been convicted in this case:
- Cynthia Karina Marquez, 47, of Paramount, who worked as an office manager at both Action and Kaja, pleaded guilty in December 2019 to two counts of making false statements affecting a health care program. She received a time-served sentence, was placed on supervised release for three years, and was ordered to pay $9,886,646 in restitution.
- Juan Roberto Murillo, 46, of Montebello, who worked at both medical supply companies as a repair technician, pleaded guilty in November 2019 to one count of conspiracy to commit money laundering. He was sentenced to three years’ probation and was ordered to pay $2,504,119 in restitution.
The United States Department of Health and Human Services, Office of Inspector General; the FBI; and the California Department of Justice investigated this matter.
Assistant United States Attorneys Kristen A. Williams and David H. Chao of the Major Frauds Section are prosecuting this case.
Gardena Woman Sentenced to 2 Years in Federal Prison for Throwing Molotov Cocktail Inside Torrance Bank BranchRead the Press Release
LOS ANGELES – A South Bay woman was sentenced today to 24 months in federal prison for throwing a Molotov cocktail inside a bank in Torrance after having a dispute with the branch manager.
Teranee Millet, 35, of Gardena, was sentenced by United States District Judge Stanley Blumenfeld Jr.
Millet pleaded guilty on March 21 to unlawful possession of a firearm and destructive device.
On September 20, 2021, Millet entered a Bank of America branch in Torrance. She spoke to the bank manager and demanded to be helped by another teller because she believed she had been waiting in line for too long.
When the bank manager informed her that no other tellers were available and she would have to continue waiting, Millet used profane language and then yelled, “I’m going to blow this bitch up!” In response, the bank manager called 911 and informed law enforcement of Millet’s comments.
A few minutes later, Millet returned to the bank branch and threw a Molotov cocktail into the bank, causing a fire in the middle of the bank. A bank customer successfully extinguished the fire. On her way out of the bank’s parking lot and before law enforcement arrived, she threatened another customer and threw a glass bottle at the customer’s truck, causing minor damage to the vehicle. Police responded within a few minutes, secured the scene and recovered the item that Millet threw on the floor.
Law enforcement used bank surveillance photos to help identify Millet.
Millet was arrested in Georgia in December 2021, after she led law enforcement on a chase in a stolen U-Haul van that ended with the van crashing, according to court documents. Inside the van, law enforcement recovered a gym bag containing four packs of glass bottles with tissue paper inserted inside the bottles, a can of lighter fluid and a five-gallon can of gasoline, according to court documents. Millet sustained injuries in the crash and later received medical treatment. She has been in custody since that time.
The FBI, the Torrance Police Department, and the Torrance Fire Department investigated this matter.
Assistant United States Attorney Kellye Ng of the Violent and Organized Crime Section prosecuted this case.
Victorville Woman Sentenced to 2½ Years in Federal Prison for Using Inmates’ Info to Illegally Obtain over $500,000 in COVID Jobless AidRead the Press Release
LOS ANGELES – A San Bernardino County woman was sentenced today to 30 months in federal prison for fraudulently obtaining more than $500,000 in pandemic-related unemployment insurance (UI) benefits by using the names of inmates locked up the California state prison system.
Cynthia Ann Hernandez, 33, a.k.a. “Cynthia Roberts,” of Victorville, was sentenced by United States District Judge Mark C. Scarsi, who also ordered her to pay $515,138 in restitution.
Hernandez pleaded guilty on January 23 to one count of mail fraud and one count of access device fraud.
During the summer of 2020, Hernandez filed with the California Employment Development Department (EDD) fraudulent applications for UI benefits in the names of persons incarcerated in the California state prison system and who were ineligible to receive jobless benefits. EDD manages California’s unemployment insurance benefit program.
Hernandez falsely stated on the UI benefits applications that the named claimants were individuals whose employment had been negatively affected by the COVID-19 pandemic and were eligible for pandemic unemployment assistance under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Congress passed the CARES Act in March 2020, in part, to help individuals whose employment and finances were adversely affected by the pandemic.
The applications also falsely stated that the named claimants were eligible for the UI benefits and that they resided and worked in Los Angeles and Orange counties. EDD then authorized Bank of America to issue debit cards in the claimants’ names that were mailed to Hernandez’s mailing address.
In total, Hernandez caused at least 29 fraudulent applications to be filed with EDD.
“[Hernandez] orchestrated a sophisticated scheme that deprived the state of over [$500,000] meant to provide relief for vulnerable taxpayers who were unable to work due to the COVID-19 pandemic,” prosecutors wrote in a sentencing memorandum. “She did so by applying for UI benefits for people who were plainly ineligible and did so for her own financial gain.”
This matter was investigated by the United States Department of Labor, Office of Inspector General; the California Employment Development Department, Investigation Division; Homeland Security Investigations; the California Department of Corrections and Rehabilitation; the United States Department of Homeland Security, Office of Inspector General; the United States Postal Inspection Service; and United States Customs and Border Protection’s Special Response Team.
Assistant United States Attorney Haoxiaohan Cai of the General Crimes Section prosecuted 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 Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Riverside County Tax Preparer Sentenced to 6 Years in Prison for Preparing False Returns that Caused over $3 Million in Losses to IRSRead the Press Release
LOS ANGELES – An Inland Empire tax preparer was sentenced today to 72 months in federal prison for knowingly filing thousands of tax returns that falsely claimed deductions, such as fake medical expenses and bogus mortgage interest, and which caused more than $3 million in losses to the IRS.
Andrew Zepeda Hansack, 40, of Riverside, was sentenced by United States District Judge Stephen V. Wilson, who said Hansack’s crimes were “one of the most serious offenses I’ve encountered while on the bench.”
In addition to the six-year prison term, Judge Wilson ordered Hansack to pay a $50,000 fine and $3,369,886 in restitution.
Hansack pleaded guilty on February 27 to two counts of aiding and assisting in the preparation of a false tax return. Judge Wilson imposed the statutory maximum sentence for each of the two counts.
Starting in January 2015, Hansack prepared personal income tax returns at AJ Loyal Income Tax Service, a Riverside-based company. Hansack filed tax returns for some of his clients that included false itemized deductions. Specifically, Hansack filed tax returns for these clients that indicated they had paid mortgage interest for their homes, when in truth, as Hansack knew, his clients did not own a home. Hansack also claimed false medical expenses, sales tax, and gifts by cash or check on some tax returns he prepared that he knew to be false.
For the tax years 2015 through 2019, Hansack filed approximately 2,533 tax returns with false deductions on behalf of his clients, according to court documents. Because of Hansack’s criminal activity, the IRS was prevented from assessing and collecting the correct amount of taxes owed by the clients. Judge Wilson found that the IRS suffered losses of approximately $3.37 million.
For example, in February 2020, Hansack aided and assisted the preparation of a federal income tax return for a South Gate resident. This tax return falsely claimed $30,488 in itemized deductions, including deductions for mortgage interest. The false and fraudulent deductions caused the South Gate taxpayer to claim a refund from the IRS in the amount of $7,318 to which the taxpayer was not entitled.
IRS Criminal Investigation investigated this matter.
Assistant United States Attorney Jeff Mitchell of the Major Frauds Section prosecuted this case.
Inland Empire Skilled Nursing Facility and Management Company Agree to Pay $3.8M to Settle Allegations of Kickbacks to DoctorsRead the Press Release
LOS ANGELES – A skilled nursing facility in Riverside and its management company have agreed to pay the United States and California a total of $3.825 million to resolve allegations related to kickbacks allegedly given to physicians to induce patient referrals, United States Attorney Martin Estrada announced today.
Alta Vista Healthcare & Wellness Centre, LLC and its management company, Rockport Healthcare Services, settled a “whistleblower” case that alleged they submitted and caused the submission of false claims to Medicare and Medicaid by paying kickbacks to physicians. The $3.85 million settlement amount was negotiated based on Alta Vista’s and Rockport’s lack of ability to pay.
The lawsuit in this matter was unsealed on June 16.
The Anti‑Kickback Statute prohibits offering or paying remuneration to induce the referral of items or services covered by Medicare, Medicaid and other federally funded programs. It is intended to ensure that medical decision-making is not compromised by improper financial incentives and is instead based on the best interests of the patient.
From 2009 through 2019, Alta Vista, under the direction and control of Rockport, gave certain physicians extravagant gifts, including expensive dinners for the physicians and their spouses, golf trips, limousine rides, massages, e-reader tablets and gift cards worth up to $1,000. Separately, Alta Vista paid these physicians monthly stipends of $2,500 to $4,000, purportedly for their services as medical directors. At least one purpose of these gifts and payments was to induce these physicians to refer patients to Alta Vista.
“The administrators and beneficiaries of the Medicare and Medicaid programs expect that providers will make decisions based on sound medical judgment, not their personal self-interest,” said United States Attorney Martin Estrada. “As this case demonstrates, our office will take decisive action to address allegations that medical providers are paying or receiving improper financial benefits that could impact care provided to patients.”
“Kickbacks can impair the independence of physician decision-making and waste taxpayer dollars,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to preventing illegal financial relationships that undermine the integrity of our public healthcare programs.”
“Decisions that affect patient health should be made solely on the basis of a patient’s best interest,” said California Attorney General Rob Bonta. “When a healthcare company cheats and offers kickbacks to gain an unfair advantage, it jeopardizes the health and wellbeing of those who rely on its services. These illegal schemes also make public services and programs costlier, and ultimately waste valuable taxpayer dollars. Today, I thank the U.S. Department of Justice for teaming up with the California Department of Justice on this case. This settlement demonstrates our commitment to protecting the integrity of Medi-Cal, and the taxpayer dollars that support the program."
“Kickbacks impose hidden costs on the health care system, compromise medical decision making, and taint the doctor-patient relationship,” said Special Agent in Charge Timothy B. DeFrancesca of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG). “Working tirelessly with our law enforcement partners, HHS-OIG will continue to prevent the waste of valuable taxpayer dollars and protect the integrity of federal health care programs.”
The defendants’ conduct allegedly resulted in false claims to Medicare and California’s Medicaid programs, the latter of which is jointly funded by the federal government and California. Under the settlement, they will pay $3,228,300 to the United States and $596,700 to California.
The settlement announced today stems from a whistleblower complaint filed in 2015 by former Alta Vista accounting employee Neyirys Orozco pursuant to the qui tam provisions of the False Claims Act, which permit private persons to bring a lawsuit on behalf of the government and to share in the proceeds of the suit. Orozco will receive $581,094 as her share of the federal government’s recovery in this case.
In addition to resolving their False Claims Act liability, Alta Vista and Rockport have entered into a five-year Corporate Integrity Agreement with HHS-OIG which requires, among other compliance obligations, an Independent Review Organization’s review of Alta Vista’s and Rockport’s physician relationships.
The United States’ settlement in this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to HHS-OIG, at 800‑HHS‑TIPS (800-447-8477).
This matter was handled by Assistant United States Attorney Ross Cuff of the Civil Fraud Section; the Commercial Litigation Branch, Fraud Section, of the Justice Department’s Civil Division; and the California Department of Justice. HHS-OIG provided investigative support.
The case is captioned United States of America ex rel. Neyiris Orozco v. Shlomo Rechnitz, et al., CV15-6177.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
Former U.S. Serviceman Sentenced to 27 Months in Prison for Illegally Exporting Night Vision Goggles, Other Military Items to RussiaRead the Press Release
LOS ANGELES – A former member of the United States military was sentenced today to 27 months in federal prison for conspiring to unlawfully export to Russia defense articles – including thermal imaging riflescopes and night vision goggles – without a license in violation of the Arms Export Control Act.
Igor Panchernikov, 41, a former Corona resident who once served in the United States Air Force Reserves, was sentenced by United States District Judge André Birotte Jr.
Panchernikov pleaded guilty on March 24 to one count of conspiracy to violate the Arms Export Control Act. He has been in federal custody since July 2022 after Israel extradited him to the United States.
From December 2016 to May 2018, Panchernikov conspired with other individuals to knowingly export from the United States to Russia defense articles without obtaining from the State Department a valid license or other approval for such exports.
Panchernikov’s accomplices purchased defense articles – including thermal riflescopes, weapons sights, monoculars and night vision googles – from various online sellers located in the United States and directed the sellers to mail those items to Panchernikov’s residence in Corona.
At his Corona residence, Panchernikov received at least 19 defense articles that his co-conspirators purchased from online sellers. After receiving these items, Panchernikov inspected the items to ensure that they were undamaged and operational. Pursuant to his co-conspirators’ instructions, Panchernikov then mailed two of the items to accomplices in Russia and mailed 17 defense articles to Elena Shifrin, 61, of Mundelein, Illinois, who then mailed these items to Russia.
To conceal his unlawful activities, when Panchernikov exported the two defense articles to Russia, he listed fictitious sender names on the packages containing the items. He also falsely identified the items in the packages as non-export-controlled items, such as clothing. Finally, he concealed the defense articles in other items, including a drill press.
Shifrin pleaded guilty in February 2022 to one count of conspiracy to violate the Arms Export Control Act. Her sentencing hearing is expected in the coming months.
Vladimir Pridacha, 58, of Volo, Illinois, has pleaded not guilty to criminal charges in this case and has an August 29 trial date scheduled.
Two other defendants charged in this case – Boris Polosin, of Russia, and Vladimir Gohman, of Israel – are fugitives.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The FBI’s Los Angeles and Chicago field offices investigated this matter, with substantial assistance from the United States Postal Inspection Service and Homeland Security Investigations.
Assistant United States Attorneys David T. Ryan, Chief of the Terrorism and Export Crimes Section, and Wilson Park of the General Crimes Section are prosecuting this case.
Palmdale Man Found Guilty of Illegally Importing an Ancient Roman Mosaic from Syria Depicting HerculesRead the Press Release
LOS ANGELES – An Antelope Valley man was found guilty by a jury today of illegally importing an ancient floor mosaic depicting the Roman demigod Hercules that is believed to have been made nearly two millennia ago.
Mohamad Yassin Alcharihi, 56, of Palmdale, was found guilty of one count of entry of falsely classified goods.
According to evidence presented at a 4½-day trial, Alcharihi in August 2015 illegally imported the mosaic – which dates from the era of the Roman Empire – by means of a false classification as to its value and quality. The mosaic arrived at Alcharihi’s direction at the Port of Long Beach as part of a shipment from Turkey.
The mosaic depicts a story from ancient Greek and Roman mythology depicting Hercules rescuing Prometheus, who had been chained to a rock by his fellow gods for stealing fire for humanity.
Alcharihi purchased the mosaic in 2015. Instead of disclosing to United States customs officials that he was importing a Syrian antiquity for which he had paid approximately $12,000 and that he knew was worth much more, Alcharihi lied to his customs broker and caused it to falsely declare that he was importing ceramic tiles from Turkey valued at less than $600. Alcharihi paid $40,000 to restore the mosaic and the government’s appraisal expert valued the mosaic at $450,000.
The false classifications occurred months after the United Nations Security Council adopted a resolution condemning the destruction of cultural heritage in Syria, particularly by the terrorist organizations Islamic State in Iraq and the Levant (ISIL) and Al-Nusrah Front.
The mosaic was placed inside a large metal shipping container holding many vases and two other mosaics. An x-ray image of the container taken by CBP showed that the mosaic was hidden in the front of the container – away from the rear access doors – behind a pile of vases. After passing through customs, the mosaic was shipped via truck to Alcharihi’s home.
The mosaic is 15 feet long, 8 feet tall, and weighs approximately 2,000 pounds. It has been stored at a secure facility in Los Angeles since federal agents seized it from Alcharihi’s garage in March 2016.
United States District Judge George H. Wu scheduled an August 31 sentencing hearing, at which time Alcharihi will face a statutory maximum sentence of two years in federal prison.
The FBI’s Art Crime Team and Homeland Security Investigations – Los Angeles, Ventura Division investigated this matter.
Assistant United States Attorney Mark A. Williams, Chief of the Environmental Crimes and Consumer Protection Section; Assistant United States Attorney Matthew W. O’Brien, also of the Environmental Crimes and Consumer Protection Section; Assistant United States Attorney Maxwell Coll of the Asset Forfeiture and Recovery Section; and Justice Department Trial Attorney Christian A. Levesque of the Human Rights and Special Prosecutions Section are prosecuting this case.
Man Convicted for Illegally Importing Ancient MosaicRead the Press Release
A federal jury in Los Angeles convicted a California man today for illegally importing from Syria an ancient mosaic depicting the Roman demigod Hercules that is believed to be 2,000 years old.
According to court documents and evidence presented at trial, in August 2015, Mohammed Yassin Alcharihi, 56, of Palmdale, illegally imported the mosaic – which dates from the era of the Roman Empire and is of Syrian origin – by claiming that he was importing various items worth $2,199. However, the mosaic was worth hundreds of thousands of dollars.
The false classifications occurred months after the United Nations Security Council adopted a resolution condemning the destruction of cultural heritage in Syria, particularly by the terrorist organizations Islamic State in Iraq and the Levant (ISIL) and Al-Nusrah Front.
Alcharihi was convicted of one count of entry of falsely classified goods. He is scheduled to be sentenced on Aug. 31 and faces a maximum penalty of two years in prison. The government is also seeking forfeiture of the mosaic. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney E. Martin Estrada for the Central District of California, Special Agent in Charge Eddy Wang of Homeland Security Investigations (HSI) Los Angeles, and Special Agent in Charge Don Alway of the FBI Los Angeles Field Office’s Criminal Division made the announcement.
The FBI’s Art Crime Team and HSI Los Angeles’ Ventura Division investigated the case.
Trial Attorney Christian A. Levesque of the Justice Department’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorneys Mark A. Williams, Matthew W. O’Brien, and Maxwell Coll for the Central District of California are prosecuting the case.
California Skilled Nursing Facility and Management Company Agree to Pay $3.825 Million to Settle Allegations of Kickbacks to Referring PhysiciansRead the Press Release
Alta Vista Healthcare & Wellness Centre, LLC (Alta Vista), a skilled nursing facility in Riverside, California, and its management company, Rockport Healthcare Services (Rockport), have agreed to pay the United States and California a total of $3.825 million to resolve allegations that they submitted and caused the submission of false claims to Medicare and Medicaid by paying kickbacks to physicians to induce patient referrals. The settlement amount was negotiated based on Alta Vista’s and Rockport’s lack of ability to pay.
The Anti‑Kickback Statute prohibits offering or paying remuneration to induce the referral of items or services covered by Medicare, Medicaid, and other federally funded programs. It is intended to ensure that medical decision-making is not compromised by improper financial incentives and is instead based on the best interests of the patient.
From 2009 through 2019, Alta Vista, under the direction and control of Rockport, gave certain physicians extravagant gifts, including expensive dinners for the physicians and their spouses, golf trips, limousine rides, massages, e-reader tablets, and gift cards worth up to $1,000. Separately, Alta Vista paid these physicians monthly stipends of $2,500 to $4,000, purportedly for their services as medical directors. At least one purpose of these gifts and payments was to induce these physicians to refer patients to Alta Vista.
“Kickbacks can impair the independence of physician decision-making and waste taxpayer dollars,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to preventing illegal financial relationships that undermine the integrity of our public healthcare programs.”
“Decisions that affect patient health should be made solely on the basis of a patient’s best interest,” said California Attorney General Rob Bonta. “When a healthcare company cheats and offers kickbacks to gain an unfair advantage, it jeopardizes the health and wellbeing of those who rely on its services. These illegal schemes also make public services and programs costlier, and ultimately waste valuable taxpayer dollars. Today, I thank the U.S. Department of Justice for teaming up with the California Department of Justice on this case. This settlement demonstrates our commitment to protecting the integrity of Medi-Cal, and the taxpayer dollars that support the program."
“The administrators and beneficiaries of the Medicare and Medicaid programs expect that providers will make decisions based on sound medical judgment, not their personal self-interest,” said U.S. Attorney Martin Estrada for the Central District of California. “As this case demonstrates, our office will take decisive action to address allegations that medical providers are paying or receiving improper financial benefits that could impact care provided to patients.”
“Kickbacks impose hidden costs on the health care system, compromise medical decision making, and taint the doctor-patient relationship,” said Special Agent in Charge Timothy B. DeFrancesca of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG). “Working tirelessly with our law enforcement partners, HHS-OIG will continue to prevent the waste of valuable taxpayer dollars and protect the integrity of federal health care programs.”
The defendants’ conduct allegedly resulted in false claims to Medicare and California’s Medicaid programs, the latter of which is jointly funded by the federal government and California. Under the settlement, they will pay $3,228,300 to the United States and $596,700 to California.
The settlement announced today stems from a whistleblower complaint filed in 2015 by a former Alta Vista accounting employee, Neyirys Orozco, pursuant to the qui tam provisions of the False Claims Act, which permit private persons to bring a lawsuit on behalf of the government and to share in the proceeds of the suit. Orozco will receive $581,094 as her share of the federal government’s recovery in this case.
In addition to resolving their False Claims Act liability, Alta Vista and Rockport have entered into a five-year Corporate Integrity Agreement with the HHS-OIG which requires, among other compliance obligations, an Independent Review Organization’s review of Alta Vista’s and Rockport’s physician relationships.
The United States’ settlement in this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the HHS-OIG, at 800‑HHS‑TIPS (800-447-8477).
This matter was handled by the Civil Division's Commercial Litigation Branch, Fraud Section, the U.S. Attorney’s Office for the Central District of California, and the California Department of Justice, with investigative support from the HHS-OIG.
The case is captioned United States of America ex rel. Neyiris Orozco v. Shlomo Rechnitz et al., No. 15-cv-6177 (C.D. Cal.).
The claims resolved by this settlement are allegations only and there has been no determination of liability.
Fresno Man Arrested in Fullerton After Alleged Carjacking and High-Speed Police Pursuit Charged in Federal Criminal ComplaintRead the Press Release
SANTA ANA, California – A Fresno man has been arrested on a federal criminal complaint alleging he carjacked a motorist in Fullerton and threw her out of the car before leading law enforcement on a high-speed pursuit in which he hit a police car, then fled on foot before officers apprehended him, the Justice Department announced today.
Deshawn Ricks, 33, was arrested Wednesday afternoon and is charged in a federal criminal complaint with carjacking.
Ricks is scheduled to make his initial appearance this afternoon at United States District Court in Santa Ana.
According to an affidavit filed with the complaint, on the afternoon of June 14, Fullerton Police officers were dispatched to the scene of a carjacking that occurred in a parking structure in downtown Fullerton. The victim told officers she was sitting in her parked 2022 Mazda CX-5 SUV with the vehicle turned off when Ricks approached her, opened her car’s door and ordered her out of the SUV.
When the victim refused, Ricks allegedly placed one of his hands on her lower back and brandished a metal object – which the victim described as a “shank” – in his other hand. Ricks allegedly threatened to stab the victim, then pulled her out of the vehicle by her hair and body.
Ricks then got into the vehicle and while he attempted to get it to start – the SUV had a “push to start” feature – the victim reached into the vehicle, grabbed her purse and then walked away to get help, the affidavit alleges. Ricks allegedly then drove the car within five feet of the victim and left the area.
Approximately 10 minutes after being notified of the carjacking, Fullerton Police officers located Ricks driving the victim’s stolen SUV, according to the affidavit. Despite officers’ attempt to make a traffic stop, Ricks allegedly led police on a high-speed pursuit in Fullerton in which he ran red lights, drove into oncoming traffic, and hit a marked police vehicle. Later during the chase, when Ricks lost control of the speeding Mazda that then was struck by a police vehicle, he exited the SUV and fled on foot before officers apprehended him, the affidavit states.
After law enforcement stopped the vehicle, officers allegedly found a pointed, serrated metal stake type object – approximately 12 inches long – near the front driver’s seat.
A criminal complaint contains allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted, Ricks would face a statutory maximum sentence of 15 years in federal prison.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Orange County Violent Crimes Task Force (OCVCTF), which is comprised of federal and local law enforcement agencies, including, but not limited to, the ATF, the Santa Ana Police Department, the Brea Police Department, and the Fullerton Police Department.
Assistant United States Attorneys Chelsea Norell, Kevin Butler, and Jena MacCabe of the Violent and Organized Crime Section are prosecuting this case.
U.S. Marine, 2nd Man Arrested on Federal Charges Stemming from Firebombing of Planned Parenthood Clinic in Orange CountyRead the Press Release
SANTA ANA, California – Special agents with the FBI and the Naval Criminal Investigative Service this morning arrested two Orange County men on federal charges alleging they used a Molotov cocktail to firebomb a Costa Mesa clinic operated by Planned Parenthood Federation of America.
Tibet Ergul, 21, of Irvine, and Chance Brannon, 23, of San Juan Capistrano, an active duty Marine stationed at Camp Pendleton, were arrested this morning without incident.
Ergul and Brannon are named in a criminal complaint that charges each with using an explosive or fire to damage real property affecting interstate commerce. Both defendants are expected to make their initial appearances this afternoon in United States District Court in Santa Ana.
“My office takes very seriously this brazen attack that targeted a facility that provides critical health care services to thousands of people in Orange County,” said United States Attorney Martin Estrada. “While it is fortunate that no one was physically harmed and responders were able to prevent the clinic from being destroyed, the defendants’ violent actions are entirely unacceptable.”
“The depraved act of launching an improvised explosive device into a public facility put lives at risk and will not be tolerated," said Donald Alway, the Assistant Director in Charge of the FBI's Los Angeles Field Office. “The joint investigation among local and federal law enforcement led to today's arrests and we will continue to work collaboratively with our partners to hold accountable those who deliberately endanger the community.”
The complaint alleges that Ergul and Brannon attacked the clinic during the early morning hours of March 13, 2022, by igniting and a throwing a Molotov cocktail at the clinic entrance. As a result of the fire, the Planned Parenthood Costa Mesa healthcare clinic was forced to close the following morning and cancel approximately 30 appointments.
Security videos described in the affidavit show that two men wearing hooded sweatshirts and face masks approached the Planned Parenthood facility at approximately 1 a.m. the day of the attack, ignited a device, and threw the flaming device at the front door of the building. “The device landed against a southern wall next to the glass door and erupted into a fire, which spread up the wall and across the ceiling above the glass door,” according to the complaint.
The Costa Mesa Police Department and Fire Department responded to the scene and extinguished the fire. An analysis of evidence collected at the scene showed that the glass container and other materials contained gasoline.
A criminal complaint contains allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The charge of using an explosive or fire to damage real property affecting interstate commerce carries a statutory maximum penalty of 20 years in federal prison.
The FBI and the Naval Criminal Investigative Service are conducting the ongoing investigation in this matter. The Costa Mesa Police Department provided substantial assistance.
Assistant United States Attorney Kathrynne Seiden of the Terrorism and Export Crimes Section is prosecuting this case.
Former Long Beach First Responder Sentenced to More Than 29 Years in Prison for Drug and Gun Crimes, Including Selling Fentanyl that Resulted in Coworker’s Fatal OverdoseRead the Press Release
LOS ANGELES – A former first responder who worked at a Long Beach hospital was sentenced today to 352 months in federal prison for selling fentanyl to two of his co-workers who thought they were buying cocaine, one of whom later died of an overdose after ingesting the powerful opioid.
Cruz Noel Quintero, 43, of Long Beach, was sentenced by United States District Judge Christina A. Snyder, who scheduled a September 6 restitution hearing in this case.
At the conclusion of a six-day trial in September 2022, a jury found Quintero guilty of one count of distributing fentanyl resulting in death, one count of possessing machine guns, two counts of possessing unregistered firearms, one count of maintaining a drug-involved premises, and one count of possessing firearms in furtherance of a drug-trafficking crime.
According to evidence presented at trial, beginning no later than February 2018, Quintero – who was employed as an emergency medical technician at a Long Beach hospital – shipped cocaine, methamphetamine, and other drugs across the country, and he distributed them locally out of a Long Beach residence.
In May 2019, in the parking lot outside the hospital’s emergency room, Quintero sold a white powder he claimed was cocaine for $100 to a hospital coworker who was planning to go on a weekend trip to Las Vegas with her partner, a former nurse at the Long Beach hospital and volunteer firefighter. The following morning, the couple sampled the white powder – not knowing that it in fact was fentanyl – and both of them passed out. One of the victims – identified in court documents as “S.F.” – later was pronounced dead.
Two toxicologists testified that the only drug they found in S.F.’s blood was fentanyl, and two doctors – a medical examiner and a medical toxicologist – testified that the victim died because of fentanyl toxicity.
After learning that Quintero sold the fatal dose, law enforcement searched two residences in Long Beach and discovered Quintero’s illicit drug-trafficking operation. Across both residences, they found 13 firearms that included two machine guns, two short-barreled assault rifles, and nine other guns, some of which were loaded. One of the residences, which Quintero used as his base of operations, was littered with drug-trafficking paraphernalia, including over ten pounds of cutting agents used to dilute the quality of the drugs he sold and a hydraulic press used to manufacture kilogram bricks of cocaine.
According to trial testimony, Quintero also shipped kilogram-quantities of cocaine and pound-quantities of methamphetamine to drug traffickers in Minnesota, which prompted frequent complaints about the poor quality of his product.
Quintero has been in custody since his arrest shortly after the fatal overdose in May 2019.
“Quintero operated a reckless and callous drug trafficking business that repeatedly endangered people’s lives and ultimately killed [the victim],” prosecutors argued in a sentencing memorandum. “For at least a year, [Quintero] shipped kilos of cocaine and pounds of methamphetamine out of state, and sold poor-quality, adulterated drugs to unsuspecting buyers, all while guarding his drug-distribution outpost in Long Beach with machine guns and short-barreled rifles.”
Judge Snyder sentenced Quintero to 292 months in prison for the fentanyl death count, 120 months in prison for the firearms counts, 240 months in federal prison for the maintaining a drug premises count – all of which are to run concurrent to each other. Finally, she sentenced Quintero to 60 months in prison for possessing firearms in furtherance of a drug-trafficking crime, a term which will run consecutive to the other counts.
Homeland Security Investigations; the Drug Enforcement Administration in Los Angeles and Minneapolis; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Long Beach Police Department investigated this matter.
Assistant United States Attorneys Suria M. Bahadue of the Criminal Appeals Section and David C. Lachman of the Terrorism and Export Crimes Section prosecuted this case.
Orange County Lawyer Agrees to Plead Guilty to Multimillion-Dollar Fraud of Victims Who Believed They Were Funding Loan ProgramRead the Press Release
SANTA ANA, California – A Newport Beach lawyer who claimed she was providing loans to the rich and famous has agreed to plead guilty to federal felony charges for using her investors’ money to fund her lavish lifestyle, causing them to lose more than $8 million, the Justice Department announced today.
Sara Jacqueline King, 39, is charged in a two-count information with wire fraud and money laundering. Both the information and a related plea agreement were filed late Monday in United States District Court in Santa Ana.
King is expected to make her initial court appearance on June 20.
According to her plea agreement, King operated King Family Lending LLC, a Newport Beach-based company that purportedly gave short-term, high-interest loans to professional athletes, celebrities and other high-net-worth individuals. The loans supposedly were secured by the borrowers’ own assets, including designer handbags, watches, luxury automobiles, yachts and earnings from guaranteed sports contracts.
From January 2022 until January 2023, King – through her company – recruited investors to purportedly fund her business’s loans. She admitted to telling investors that their investments were secured by the same collateral as the loans themselves. King promised she would retain possession of the collateral and that, in the event a borrower defaulted, she would sell the collateral to pay the investor in full.
King said she would keep a percentage of the interest earned from the loans and that she would pass along a percentage of the interest to victim-investors, along with their initial investment.
In reality, during this time period, King never initiated or funded any loan. Instead, she used victims’ funds to gamble at Las Vegas casinos and support her lavish lifestyle.
King admitted to causing five investors to lose more than $8 million. She has agreed that the applicable restitution amount in this case is at least $8,785,045.
She further admitted to withdrawing approximately $132,156 of investor money from King Family Lending’s bank account to purchase a Porsche Taycan electric sports car.
The FBI and the IRS Criminal Investigation are investigating this matter.
Assistant United States Attorney Jennifer L. Waier of the Santa Ana Branch Office is prosecuting this case.
New York City Man Found Guilty of Charges for Abducting Elderly Woman with Dementia and Attempting to Obstruct InvestigationRead the Press Release
LOS ANGELES – A New York man was found guilty by a judge today of federal criminal charges stemming from his abduction of a 68-year-old woman with dementia at the West Los Angeles Veterans Affairs Medical Center in July 2021.
Johnny Ray Gasca, 53, of Bronx, New York, was found guilty of one count of kidnapping, two counts of attempted obstruction of justice, and one count of attempted witness tampering.
United States District Judge André Birotte Jr. entered the verdict today at the conclusion of a six-day bench trial.
According to evidence presented at trial, Gasca kidnapped the victim at approximately 8:30 a.m. on July 19, 2021, after attempting to obtain a medical appointment at the VA facility.
The victim was accompanied by a long-time friend, and as the two of them “approached their car, Gasca appeared unexpectedly,” according to court documents. “Gasca put his arms around [the victim] and pushed her toward a gold-colored pickup truck that was parked nearby. Gasca then picked [the victim] up and threw her into the rear portion of the truck’s passenger compartment.”
After the Department of Veteran Affairs Police Department contacted the FBI later in the morning, the victim’s friend told agents she recognized Gasca, believed he previously was in some kind of relationship with the victim, and suspected Gasca may have taken some of [the victim’s] money from her bank and retirement accounts.
The witness also reported that the victim previously noted she was missing some of her credit cards, and when the two went to the victim’s bank to review her accounts, bank records showed a $35,000 withdrawal from the victim’s retirement account, followed by several Venmo, MoneyGram and PayPal transactions that the friend believed the victim did not have “the knowledge or wherewithal” to conduct, court documents state.
Within hours of beginning its investigation, the FBI located the victim’s phone at The Dixie Hollywood Hotel on Hollywood Boulevard, where agents converged. Soon after, Gasca and the victim exited the hotel, leading to Gasca’s arrest.
During an interview recounted in court documents, Gasca described the victim as his girlfriend and told agents that, after leaving the VA facility, they stopped at a bank where the victim made a $15,000 withdrawal.
After his arrest and while in pre-trial custody, Gasca made several jail calls to a friend in New York asking him to destroy evidence of his wrongdoing with the victim, according to evidence presented at the trial. Gasca urged the friend to erase all his messages on the Facebook Messenger app, including messages describing the victim as a “Golden goose.”
In August 2021, Gasca made another jailhouse phone call to his friend and told him to collect his hard drives from his apartment before the FBI could seize them and learn of his financial exploitation of the victim.
Judge Birotte found Gasca not guilty of one count of interference with commerce by extortion.
Judge Birotte scheduled a September 29 sentencing hearing, at which time Gasca will face a statutory maximum sentence of life in federal prison.
The FBI investigated this matter and received substantial assistance from the VA Police Department.
Assistant United States Attorneys Kevin B. Reidy of the Major Frauds Section and Kathy Yu of the Violent and Organized Crime Section are prosecuting this case.
Marina del Rey Man Arrested for Allegedly Fraudulently Obtaining More Than $3 Million in COVID Business Loans for Shell CompaniesRead the Press Release
LOS ANGELES – A Westside man has been arrested on a federal grand jury indictment alleging he fraudulently obtained nearly $3.2 million in COVID-19 loans for his businesses that, in fact, were shell companies, the Justice Department announced today.
Mark Farag Shehata, 70, a.k.a. “Samy Farag,” “Mark Farag,” and “Mark Fshehata,” of Marina del Rey, was arrested Monday morning by federal agents and was arraigned late Monday in United States District Court in downtown Los Angeles.
Shehata pleaded not guilty to seven counts of wire fraud. A July 24 trial date was scheduled, and a $500,000 bond was set in this case.
According to a federal grand jury indictment returned on June 8 and unsealed Monday, Shehata organized and registered four limited liability companies that purportedly operated in Marina del Rey: Shirmak Group LLC; Cynergy Group Internatioal (sic) LLC; Global Network Investments LLC; and Alpha and Omega Group LLC.
From May 2020 to May 2021, Shehata allegedly submitted at least seven false and fraudulent loan applications under the Paycheck Protection Program (PPP), a financial aid plan Congress enacted to support businesses harmed by the COVID-19 pandemic’s economic impact. The PPP loans were to be used by recipients to pay only certain authorized business expenses, such as payroll, mortgage interest, lease, and utilities.
Shehata’s four businesses were nothing more than shell companies, the indictment alleges. None of the PPP loan proceeds Shehata allegedly fraudulently obtained were used to make payments to employees for payroll or any business expenses.
In furtherance of the scheme, Shehata submitted to the Small Business Administration and several lenders false applications requesting a total of $5,423,989 in PPP loans, and fraudulently obtained approximately $3,154,265 in PPP proceeds, the indictment alleges.
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, Shehata would face a statutory maximum sentence of 20 years in federal prison for each count.
The United States Department of Justice Office of Inspector General investigated this matter.
This case was investigated by the Pandemic Response Accountability Committee (PRAC) Fraud Task Force. The PRAC was established to serve the American public by promoting transparency and facilitating coordinated oversight of the federal government’s COVID-19 pandemic response. The PRAC’s 21 member Inspectors General identify major risks that cross program and agency boundaries to detect fraud, waste, abuse, and mismanagement in the more than $5 trillion in COVID-19 spending. The PRAC Fraud Task Force brings together agents from 15 Inspectors General to investigate fraud involving a variety of programs, including the Paycheck Protection Program. Task force agents who are detailed to the PRAC receive expanded authority to investigate pandemic fraud as well as tools and training to support their investigations.
Assistant United States Attorney Valerie L. Makarewicz of the Major Frauds Section is prosecuting this case.
Anyone with general information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Ventura County Man Pleads Guilty to Making Death Threats and Bomb Threats to a Nonprofit and Reproductive Health CentersRead the Press Release
LOS ANGELES – A Ventura County man pleaded guilty today to federal criminal charges making threatening telephone calls last year, including to a Planned Parenthood office on the day the United States Supreme Court overturned its Roe v. Wade decision.
Nishith Tharaka Vandebona, 34, of Oxnard, but who lived in Camarillo during the offenses, pleaded guilty to one misdemeanor count of threatened forcible intimidation regarding the obtaining and provision of reproductive health services under the federal Freedom of Access to Clinic Entrances (FACE) Act. He also pleaded guilty to one felony count of transmitting threatening communications in interstate commerce.
At today’s hearing, United States District Judge R. Gary Klausner ordered Vandebona remanded into federal custody.
According to his plea agreement, in February and June of 2022, Vandebona used an internet application to create anonymous telephone numbers to make the threatening calls.
During the spring of 2022, there was news coverage that the Supreme Court was considering overturning Roe, its 1973 decision that recognized a constitutional right to abortion, after an initial draft of the new opinion was leaked.
On June 24, 2022, the Supreme Court published a decision in Dobbs v. Jackson Women’s Health Organization, which overturned Roe and ruled that the Constitution does not confer a right to abortion.
Vandebona admitted in his plea agreement that on the same day, using an anonymous number, he left a voicemail message containing death threats with Planned Parenthood California Central Coast, a Santa Barbara-based reproductive health services organization.
On June 25, 2022, Vandebona called Planned Parenthood Los Angeles and spoke with a call center specialist. Vandebona said, “I’m calling to let you know that I’m going to come in there and kill all of you, including your staff and your security. You got it? You’re overdue for an attack.”
Within an hour, Vandebona telephoned Planned Parenthood Los Angeles again and made several death threats, including “I’m gonna come in there and murder your staff.”
Prior to the threats to the Planned Parenthood facilities, Vandebona called in a bomb threat in February 2022 to the office of Californians for Population Stabilization (CAPS), a Ventura-based non-profit organization that advocates for “zero population growth,” primarily through immigration restrictions.
Vandebona admitted to using anonymous numbers he obtained from the internet to make threatening phone calls to CAPS. In one of the calls, he said, “I’m gonna come in there and kill all of you, dude. Be careful.”
In another call to CAPS in February 2022, Vandebona said, “I’m gonna come in there, plant a bomb, and kill as many white Americans as possible. You understand that? Servicemen, families, everybody.”
Judge Klausner scheduled an October 2 sentencing hearing, at which time Vandebona will face a statutory maximum sentence of one year in federal prison for the FACE Act count and up to five years in federal prison for the transmitting threatening communications in interstate commerce count.
The FBI investigated this matter. The Santa Barbara Police Department, the Santa Monica Police Department, and the Ventura County Sheriff’s Office have assisted in this investigation.
Assistant United States Attorneys Frances S. Lewis and Julius J. Nam of the Public Corruption and Civil Rights Section are prosecuting this case.
Anyone who has information about incidents of violence, threats, and obstruction that target a patient or provider of reproductive health services or damage and destruction of reproductive health care facilities, should report that information to the FBI at https://tips.fbi.gov.
For more information about clinic violence, and the Department of Justice’s efforts to enforce FACE Act violations, please visit www.justice.gov/crt/national-task-force-violence-against-reproductive-health-care-providers.
Orange County Doctor Sentenced to More Than 12½ Years in Prison for Prescribing Opioids to ‘Patients’ Whom He Knew Were AddictsRead the Press Release
LOS ANGELES – An Orange County physician was sentenced today to 151 months in federal prison for illegally distributing opioids and other powerful narcotics by writing prescriptions for “patients” without a legitimate medical purpose.
Dr. Dzung Ahn Pham, 61, of Tustin, was sentenced by United States District Judge Josephine L. Staton, who also fined him $35,000, and ordered him immediately remanded into federal custody.
Pham pleaded guilty in October 2022 to one count of conspiracy to distribute controlled substances.
Pham owned Irvine Village Urgent Care and conspired with licensed pharmacist Jennifer Thaoyen Nguyen, 52, of Irvine, who operated the Irvine-based Bristol Pharmacy, to illegally distribute narcotics, including opioids. Pham knowingly prescribed oxycodone, hydrocodone, amphetamine salts, and other controlled substances to people while acting outside the usual course of professional practice and without a legitimate medical purpose, including to people he knew were drug addicts.
Because Pham knew that many pharmacies would not fill his prescriptions, he would direct his “patients” to Nguyen, who would fill them. Pham and Nguyen also took steps to attempt to conceal their criminal conspiracy by agreeing to have Pham write prescriptions for non-controlled substances to avoid red flags to the DEA and Nguyen’s wholesaler based on the amount of controlled substances Pham was prescribing and Nguyen was dispensing.
In November 2017, Pham wrote prescriptions to a patient, identified in court documents as “S.C.” and whom Pham knew was a drug addict, for more than 700 pills of 30mg oxycodone. To provide more narcotics to S.C., in August 2018, Pham wrote prescriptions for 75 pills of 30mg oxycodone in the name of a person labeled in court documents as “R.C.,” who was S.C.’s wife and who had never seen Pham for any medical appointment. R.C. was unaware that Pham issued the prescription in her name for S.C.
As part of the conspiracy, Pham admitted from January 2013 to December 2018, he wrote prescriptions to 18 different “patients” for a total of approximately 53,693 pills of oxycodone, approximately 68,795 pills of hydrocodone, and approximately 29,286 pills of amphetamine salts.
According to court documents, Pham abused his trust and authority as a physician to fuel the addiction of drug users in exchange for financial gain. Pham generated large amounts of cash from the operation of Irvine Village Urgent Care by charging between $100 and $150 per office visit, including many times collecting office visit fees in which Pham wrote prescriptions for the “patients” even though they did not even have an office visit.
“[Pham], a licensed physician trusted by society and the patients that went to him, stopped treating patients and, plain and simple, became a drug dealer,” prosecutors argued in a sentencing memorandum “He turned ‘patients’ into addicts and/or fueled the addictions of drug abusers.”
Nguyen pleaded guilty in October 2022 to one count of conspiracy to distribute controlled substances. On March 17, Judge Staton sentenced Nguyen to 33 months in federal prison and fined her $10,000.
The Drug Enforcement Administration, the California Department of Health Care Services, IRS Criminal Investigation, and the Irvine Police Department investigated this matter.
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.
Assistant United States Attorneys Brett A. Sagel and Gregory W. Staples of the Santa Ana Branch Office prosecuted this case.
Crescenta Valley Man Sentenced to More Than 5 Years in Prison for Fraudulently Obtaining Nearly $3 Million in COVID Relief FundsRead the Press Release
LOS ANGELES – A Sunland man who fraudulently obtained almost $3 million in COVID-19 business loans and jobless benefits has been sentenced to 63 months in federal prison, the Justice Department announced today.
Arman Grigoryan, 42, was sentenced late Tuesday afternoon by United States District Judge Dolly M. Gee, who also ordered him to pay $2,880,259 in restitution.
Grigoryan pleaded guilty in October 2021 to one count of conspiracy to commit bank fraud. He has been in federal custody since July 2022 after a court determined he had violated the terms of his pretrial release.
During 2020 and continuing through late September of that year, Grigoryan and used other people’s identities to apply for unemployment insurance (UI) benefits through California’s Employment Development Department (EDD). Once EDD approved the false and fraudulent UI applications, a bank issued to Grigoryan and his accomplices debit cards containing the funds intended for the false identities. Grigoryan and others then used the fraudulently obtained debit cards to withdraw cash.
Grigoryan and others also used other people’s identities and shell companies to apply for loans intended to help businesses weather the economic fallout from the COVID-19 pandemic. They did so by submitted falsified payroll information and attaching forged tax forms as support.
Once the banks approved the business loans, Grigoryan and his accomplices then rapidly withdrew the COVID business relief funds by writing checks to co-conspirators and shell companies, and by withdrawing the funds in cash.
In total, Grigoryan caused at least $2,880,259 in actual losses through this conspiracy.
“When confronted with the COVID pandemic that has claimed the lives of almost 7 million persons worldwide to date, [Grigoryan] instead saw an opportunity to bilk taxpayers out of the emergency funds their government generously made available to ameliorate job losses,” prosecutors wrote in a sentencing memorandum. “Such criminal opportunism during a global health and economic emergency is egregious.”
Homeland Security Investigations, the Small Business Administration Office of Inspector General, and the California Employment Development Department investigated this matter as part of the El Camino Real Financial Crimes Task Force.
Assistant United States Attorney Andrew Brown of the Major Frauds Section prosecuted this case.
Anyone with general information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
U.S. Attorney Martin Estrada Expands Office Mission of Prosecuting Crimes Involving Consumer Protection IssuesRead the Press Release
LOS ANGELES – United States Attorney Martin Estrada, the United States Attorney for the Central District of California, today announced the establishment of the Environmental Crimes and Consumer Protection Section, a newly fortified unit that will focus on protecting the health, safety, economic security and dignity of individuals across the Central District of California.
This Office aims to further its goal of bringing impactful consumer protection cases by vigorously prosecuting cases that involve fraudulent and deceptive marketing practices; consumer product safety; food, drug, and dietary supplement safety; and other conduct that may cause or threaten to cause serious harm to the people in this district and throughout the United States.
“Safeguarding the health, safety and economic security of our district’s residents – especially the elderly, children and other vulnerable people – is one of my Office’s paramount goals,” said United States Attorney Martin Estrada. “Under this revamped section, we will continue to pursue all appropriate measures to bring to justice any culpable entity – particularly corporations acting illegally – that endangers the welfare of the population we serve.”
“Protecting consumers from harm is a priority for the Department of Justice” stated Amanda Liskamm, Director of the Department of Justice’s Consumer Protection Branch. “The Consumer Protection Branch has a strong partnership with the U.S. Attorney’s Office for the Central District and we look forward to working with the revamped Environmental Crimes and Consumer Protection Section on significant consumer protection investigations and prosecutions. Our joint efforts will protect the safety of our communities and ensure that those that put consumers at risk will be held accountable.”
The Office’s recent commitment to consumer protection includes a $91 million resolution with Gree USA Inc., a City of Industry-based subsidiary of a Chinese appliance company that was ordered in April 2023 to pay a $500,000 criminal fine after pleading guilty to failing to notify the U.S. Consumer Product Safety Commission (CPSC) that millions of dehumidifiers it sold to domestic consumers were defective and could catch fire.
The Central District of California – the nation’s most populous federal district – is a seven-county area encompassing approximately 20 million residents in Los Angeles, Orange, Riverside, San Bernardino, Ventura, Santa Barbara and San Luis Obispo counties.
Assistant United States Attorney Mark A. Williams will lead the Environmental Crimes and Consumer Protection Section as section chief. The section also includes Assistant United States Attorneys Amanda M. Bettinelli – who in October 2022 was appointed the Office’s Environmental Justice Coordinator – Laura A. Alexander, Dan Boyle, Dominique Caamano, Joseph O. Johns, Dennis Mitchell, Matthew W. O’Brien, Juan M. Rodriguez, and Erik M. Silber.
Food Wholesaler Pleads Guilty to Smuggling Tainted Chinese EelRead the Press Release
LOS ANGELES – A Pomona man and his food wholesale company have pleaded guilty in federal court to attempting to smuggle Chinese frozen roasted eel for human consumption which had been previously refused entry into the United States, federal authorities announced today.
Kevin Sheng Hsiang Fang, 41, and Fang’s City of Industry-based food wholesale business, Yong Chang Trading Co., Ltd. (dba Heng Xing Foods, Inc.), each pleaded guilty May 31 to one count of smuggling and one count of introducing adulterated food into interstate commerce.
Fang was a high-volume importer of Chinese frozen roasted eel, commonly known as unagi. The criminal case stems from a shipment of Fang’s imported Chinese frozen roasted eel that was sample tested by the Food and Drug Administration (FDA) and found to be unsafe for human consumption, which prompted the FDA to refuse its entry into the United States. Fang admitted that he knowingly re-imported the previously refused Chinese frozen roasted eel, using new entry information and comingled with other eel to evade detection.
When he pleaded guilty, Fang admitted that the Chinese frozen roasted eel which he tried to import and distribute was adulterated with Gentian Violet, Leucogentian Violet and Malachite Green, unsafe new animal drugs. The use of these antibiotics or chemicals during various stages of aqua-cultured food can result in the presence of residues of the parent compound or its metabolites in the edible portion of the aqua-cultured seafood. The presence of antibiotic residues may contribute to an increase of antimicrobial resistance in human pathogens, according to an FDA alert. Moreover, prolonged exposure to Malachite Green and Gentian Violet has been shown to have a carcinogenic effect.
The FDA, in partnership with U.S. Customs and Border Protection (CBP), serves as the first line of defense for America’s imported seafood supply chain and utilizes import alerts for aqua-cultured seafood from countries around the world. Seafood and fish products are temporarily detained with FDA detention holds to prevent the introduction of contaminated food product into commerce. The FDA contacts importers to advise of the hold with a detention hold notification and waits for the sample testing results to establish that a seafood or fish product is non-violative. The regulatory framework prevents the entry and distribution of potentially violative or unsafe seafood to customers in the United States, and it serves to protect the integrity and safety of the imported fish and seafood supply chain for human consumption.
“Federal laws that prohibits the smuggling of certain food products are intended to protect consumers from hazards to their health,” said United States Attorney Martin Estrada. “We are committed to working with our law enforcement partners to protect the American people from such public health dangers and to ensure the safety of our food supply.”
“Today’s announcement serves as a reminder that food importers have a critical responsibility to sell food that is safe for American consumers to eat,” said Special Agent in Charge Robert M. Iwanicki of the FDA’s Office of Criminal Investigations, Los Angeles Field Office. “We will continue to pursue and bring to justice those who put the public health at risk by distributing adulterated foods in the U.S. marketplace.”
“This individual showed complete disregard for the health and safety of the U.S. consumer by knowingly bringing tainted products into the market,” said Eddy Wang, Homeland Security Investigations (HSI) Los Angeles Acting Special Agent in Charge. “Thanks to the professionalism and dedication of multiple partner agencies, this criminal activity has been disrupted.”
“The result of this investigation to detect and prevent the illegal trade of wildlife species was made possible through the diligent work, dedication, and collaboration among all law enforcement agencies involved,” said Special Agent in Charge Manisa Kung of the U.S. Fish and Wildlife Service’s Office of Law Enforcement, Pacific Southwest Region.
Fang is scheduled to be sentenced on August 14 by United States District Judge Percy Anderson. As a result of his guilty pleas, Fang will face a statutory maximum sentence of 21 years in federal prison.
This case was investigated by the FDA, Office of Criminal Investigations; Homeland Security Investigations; and the U.S. Fish and Wildlife Service.
Assistant United States Attorney Amanda M. Bettinelli of the Environmental Crimes and Consumer Protection Section is prosecuting the case.
O.C. Man Charged in Alleged $1.8M Investment Fraud SchemeRead the Press Release
SANTA ANA, California – An Orange County-based businessman who portrayed himself as a wealthy and successful entrepreneur – sometimes bragging that he was one of the richest men in Africa – was arrested this morning on federal charges alleging he solicited investments under false pretenses and used the investors’ money to support his own high-end lifestyle.
Amadou Kane Diallo, 44, a Senegalese national living in Laguna Niguel, was arrested at his residence this morning by FBI special agents. Diallo is expected to be arraigned on a 21-count indictment this afternoon in United States District Court in Santa Ana.
The federal grand jury indictment unsealed today alleges that Diallo fraudulently obtained more than $1.8 million from at least 11 victims who thought their investments would allow them to reap the benefits of Diallo’s supposed business successes while facing little to no risk.
Diallo was the CEO of two Newport Beach-based companies – Virtual Advisors LLC and Liquide, Inc. – which he allegedly used to solicit investments in purported business opportunities related to various sectors and topics, including technology, healthcare, real estate, home ownership and service to the African diaspora. Diallo made various representations to victims, including falsely telling some potential investors that he had previously raised hundreds of millions of dollars for another investment firm and its real estate investment fund – a claim that simply was not true, according to the indictment.
Contrary to his representations to victims, Diallo allegedly used most of the investment funds for his own extravagant lifestyle, which included making rent payments on his residence, purchasing or making payments on luxury vehicles, buying clothes and fancy dinners, and hosting lavish events for foreign government officials.
In conjunction with Diallo’s arrest, authorities seized a number of items related to allegedly fraudulent conduct, including three late model luxury vehicles – a Ferrari SF90 Stradale, a Rolls-Royce Phantom and a Range Rover – a Harry Winston ring worth approximately $12,500, and a brokerage account containing about $500,000 worth of stocks.
The indictment charges Diallo with 19 counts of wire fraud and two counts of money laundering. If convicted, he faces a maximum penalty of 20 years in federal prison on each of the wire fraud counts and a maximum penalty of 10 years in prison on each of the money laundering counts.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI is conducting the ongoing investigation in this matter.
Special Assistant United States Attorney Ryan G. Adams of the Santa Ana Branch Office and Justice Department Trial Attorney William E. Schurmann of the Criminal Division’s Fraud Section are prosecuting this case. Assistant United States Attorney Tara Vavere of the Asset Forfeiture and Recovery Section is handling today’s seizures.
If you believe you are a victim in this case or other conduct by Mr. Diallo, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at [email protected].
Foreign National Charged for $1.8M Wire Fraud and Money Laundering SchemeRead the Press Release
An indictment was unsealed today in the Central District of California charging a California businessman for allegedly soliciting investments under false pretenses and using investors’ funds to support his own lavish lifestyle.
According to court documents, Amadou Kane Diallo, 44, a Senegalese national and resident of Laguna Niguel, was the CEO of two California-based companies: Virtual Advisors LLC and Liquide Inc. Diallo allegedly solicited investments in his companies from at least 11 individuals for purported business opportunities in technology, health care, real estate, home ownership, and service to the African diaspora. Diallo allegedly made various false representations, including that investor funds would be spent to further investors’ interests, or not be spent at all, and instead used as “skin in the game” to attract institutional investors. Diallo is also alleged to have lied to potential investors, claiming that he had raised hundreds of millions of dollars for another investment firm and its real estate investment fund when, in fact, he had never raised any such funds.
Diallo allegedly caused at least 11 victim-investors to pay him, Virtual Advisors, and Liquide, more than $1.8 million. Contrary to his representations to investors, Diallo allegedly used their money to fund his own extravagant lifestyle, including making rent payments on his home; paying for luxury vehicles; buying clothes and fancy dinners; joining fitness clubs and spas; and hosting lavish events for foreign government officials.
Diallo is charged with 19 counts of wire fraud and two counts of money laundering. If convicted, he faces a maximum penalty of 20 years in prison on each of the wire fraud counts and a maximum penalty of 10 years in prison on each of the money laundering counts.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Martin Estrada for the Central District of California, Assistant Director Luis M. Quesada of the FBI’s Criminal Investigative Division, and Assistant Director in Charge Donald Alway of the FBI Los Angeles Field Office made the announcement.
The FBI is investigating the case.
Trial Attorney William E. Schurmann of the Criminal Division’s Fraud Section and Special Assistant U.S. Attorney Ryan G. Adams for the Central District of California are prosecuting the case.
If you believe you are a victim of Mr. Diallo’s conduct, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at [email protected].
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Hollywood Man Arrested on Indictment Alleging He Fraudulently Sought over $65 Million in COVID-19 Employment Tax CreditsRead the Press Release
LOS ANGELES – A Hollywood man has been arrested and is scheduled to be arraigned this afternoon on federal charges alleging he sought more than $65 million from the IRS by falsely claiming on tax returns that his nonexistent farming business was entitled to COVID-19-related tax credits.
Kevin J. Gregory, 55, who is charged in a federal grand jury indictment with 17 counts of making false claims to the IRS, was arrested Thursday morning by special agents with IRS Criminal Investigation.
In response to the COVID-19 pandemic and its economic impact, Congress authorized an employee retention tax credit that a small business could use to reduce the employment tax it owed to the IRS, also known as the “employee retention credit.”
To qualify, the business had to have been in operation in 2020 and to have experienced at least a partial suspension of its operations because of a government order related to COVID-19 (for example, an order limiting commerce, group meetings or travel) or a significant decline in profits. The credit was an amount equal to a set percentage of the wages that the business paid to its employees during the relevant time period, subject to a maximum amount.
Congress also authorized the IRS to give a credit against employment taxes to reimburse businesses for the wages paid to employees who were on sick or family leave and could not work because of COVID-19. This “paid sick and family leave credit” was equal to the wages the business paid the employees during the sick or family leave, also subject to a maximum amount.
According to the indictment that was returned on May 11 and unsealed today, from November 2020 to April 2022, Gregory made false claims to the IRS for the payment of nearly $65.4 million in tax refunds for a purported Beverly Hills-based farming-and-transportation company named Elijah USA Farm Holdings.
The IRS issued a portion of the refunds Gregory claimed, and Gregory allegedly used that portion – more than $2.7 million – for personal expenses.
An indictment contains allegations that a defendant committed a crime. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted, Gregory would face a statutory maximum sentence of five years in federal prison for each false claims charge.
IRS Criminal Investigation is investigating this matter.
Assistant United States Attorneys Valerie L. Makarewicz and Gregory D. Bernstein of the Major Frauds Section 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 Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
SoCal Man Allegedly Impersonated Federal Agent and Used that Persona to Bilk Latino Immigrants Seeking Status to Remain in U.S.Read the Press Release
SANTA ANA, California – A federal grand jury has indicted a San Diego man for allegedly impersonating a federal agent and using that fake position to defraud more than 25 Orange County victims who sought immigration assistance, including “green cards” and United States citizenship, the Justice Department announced today.
Davyd George Brand Jimenez, 52, of San Ysidro, was named in a 25-count indictment returned by a federal grand jury Wednesday afternoon. Brand Jimenez is currently being sought by federal authorities.
The indictment charges Brand Jimenez with 10 counts of false impersonation of a federal officer or employee, three counts of mail fraud, two counts of wire fraud, seven counts of fraudulent possession and use of U.S. government seals, three counts of aggravated identity theft, and one count of misusing a United States passport.
According to the indictment, Brand Jimenez pretended to be a special agent with U.S. Immigration and Customs Enforcement (ICE) and used that false title to scam victims. Brand Jimenez has never been employed by ICE.
Brand Jimenez primarily targeted undocumented members of the Latino community, telling victims he could help them obtain work permits, legal United States residency, and U.S. citizenship, according to the indictment. Brand Jimenez falsely claimed to be an ICE agent, including by showing a fake ICE badge. Under that assumed persona, he promised that he could help his victims – most of whom were illegally present in the United States – to obtain legal residency (also known as a “green card”), work permits, or U.S. citizenship.
According to the indictment, from April 2019 to November 2020, Brand Jimenez charged each victim between $10,000 and $20,000. In addition to falsely claiming to be an ICE federal agent or a federal “Homeland Security” official, Brand Jimenez allegedly sometimes told victims that he was a “G-18” federal official, which is a non-existent position.
Brand Jimenez failed to file immigration paperwork for his victims, and he never obtained any immigration benefits for them, according to the indictment. Because he was not providing any immigration benefits for his victims, Brand Jimenez allegedly fabricated immigration documents with the victims’ names that fraudulently displaying the emblem of the United States Department of Homeland Security. Brand Jimenez also allegedly fabricated a stay of deportation order and provided it to one of his victims as alleged proof that the victim would not be deported, which was not true.
In another instance, Brand Jimenez allegedly provided a victim with a valid Social Security card, a U.S. passport card, and a California Identification Card, and he directed that victim to use those documents under the name of a different person as proof of authorization to reside and work in the United States.
Brand Jimenez is considered to be a fugitive after failing to appear for a sentencing hearing after pleading guilty in an unrelated narcotics case in San Diego federal court.
An indictment is merely an accusation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted of all charges, Brand Jimenez would face a statutory maximum penalty of 20 years in prison for each mail fraud and wire fraud count, 10 years in federal prison for each count of misusing of a passport, five years in federal prison for each count of wrongful use of a government seal, three years in federal prison for each count of impersonating a federal officer, and a mandatory two-year prison sentence for each aggravated identity theft count.
The FBI Orange County Resident Office investigated the case and received assistance from the Santa Ana Police Department. Anyone with information regarding Jimenez’s current whereabouts should take no action themselves but should immediately call the FBI’s toll-free tipline at 1-800-CALL-FBI (1-800-225-5324) or https://tips.fbi.gov/ or contact the U.S. Marshals Service at 1-877-WANTED-2.
Assistant United States Attorney Charles E. Pell of the Santa Ana Branch Office is prosecuting this case.
Orange County Man Pleads Guilty to $1.2 Million Check Fraud Scheme He Promoted on Social MediaRead the Press Release
SANTA ANA, California – A convicted felon from Orange County who used social media to instruct his Instagram followers on how to defraud banks pleaded guilty today to conspiring with a bank employee and others to commit a check fraud scheme in which they sought $1.2 million.
Meshach Samuels, 26, of Placentia, pleaded guilty to one count of conspiracy to commit bank fraud and two counts of being a felon in possession of firearms and ammunition.
According to his plea agreement, from May 2021 to March 2022, Samuels urged his Instagram followers to join his Telegram chat groups, where – for a fee of up to thousands of dollars – he would provide instructions on how to recruit accomplices and commit check fraud to steal money from banks.
Samuels and his accomplices would create fraudulent checks drawn on victim accounts, frequently using stolen information obtained from a bank teller and other sources. Samuels’ co-conspirators, aided and abetted by Samuels, would deposit the fraudulent checks into third-party accounts.
Once the check amounts were credited to the third-party accounts, Samuels’ co-conspirators, aided and abetted by Samuels, fraudulently withdrew money in amounts below $10,000 to avoid triggering bank scrutiny. The corrupt bank teller was paid a portion of the cash the conspirators obtained from negotiating fraudulent checks.
This check fraud scheme attempted to obtain at least approximately $1.2 million and caused actual losses of at least $400,000.
Samuels also admitted in his plea agreement that he participated in a scheme to defraud the California Employment Development Department (EDD) through the submission of fraudulent applications for pandemic-related unemployment insurance that contained stolen identity information. Those fraudulent applications included information from individuals who resided outside California, were deceased, or who otherwise were not eligible for unemployment insurance. Members of the scheme provided EDD with a set of common mailing addresses they controlled for multiple applications.
After EDD approved the fraudulent applications and disbursed the pandemic benefits to EDD debit accounts, Samuels and his co-schemers used the debit cards to withdraw cash at ATMs.
In total, Samuels caused at least $14,250 in actual losses to EDD.
In addition, Samuels, whose criminal history includes felony convictions in Florida for aggravated battery on a law enforcement official with an enhancement for attempted murder, admitted to unlawfully possessing firearms and ammunition. Specifically, during an August 2021 traffic stop in Costa Mesa, police officers found a firearm and ammunition concealed on his person. In March 2022, federal agents searched Samuels’ residence and seized five firearms and ammunition.
United States District Judge Cormac J. Carney scheduled an October 23, sentencing hearing, at which time Samuels will face a statutory maximum sentence of 30 years in federal prison for the bank fraud conspiracy count and up to 10 years’ imprisonment for each count of illegally possessing firearms and ammunition.
In a related case, Sasha Lizette Jimenez, 26, Samuels’ former girlfriend, pleaded guilty on May 22 to one count of conspiracy to commit bank fraud for running the EDD fraud scheme in which Samuels participated. Jimenez, who was the bookkeeper for the conspiracy, caused the issuance of at least $2.8 million in fraudulent UI benefit debit cards – and at least $2.3 million was withdrawn from those debit cards. Judge Carney has scheduled an October 30 sentencing hearing for Jimenez.
The investigation into this scheme was conducted by the Los Angeles El Camino Real Financial Crimes Task Force, a multi-agency task force led by Homeland Security Investigations that includes federal and state investigators who are focused on financial crimes in Southern California. The Treasury Inspector General for Tax Administration also participated in this investigation. The Costa Mesa Police Department, the Inglewood Police Department, the Placentia Police Department, the New York City Police Department, and the Miami Beach Police Department provided assistance.
Assistant United States Attorneys Rachel N. Agress of the International Narcotics, Money Laundering, and Racketeering Section, and David Y. Pi of the Major Frauds Section are prosecuting Samuels. AUSA Agress is prosecuting Jimenez.
Chinese National Arrested in Federal Case Alleging Massive Scheme that Shipped Millions of Packages with Counterfeit PostageRead the Press Release
LOS ANGELES – An Inland Empire resident is expected to be arraigned this afternoon on federal charges alleging the use of counterfeit postage to ship millions of parcels as part of a fraudulent scheme that caused the United States Postal Service (USPS) to suffer losses over the past six months estimated to be more than $60 million.
Lijuan “Angela” Chen, 50, of Walnut, was taken into custody Tuesday afternoon by inspectors with the United States Postal Inspection Service (USPIS) and IRS Criminal Investigation.
The criminal complaint filed May 22 charges Chen with two counts: conspiracy to defraud the United States, and possession and use of counterfeit postage.
“The evidence obtained in the investigation shows that Chen is operating a business which provides shipping and postage services to businesses, including e-commerce vendors operating out of China, that seek discounted USPS rates for mailing their products within the United States,” according to the affidavit in support of the complaint. “Multiple examinations conducted by USPS and USPIS staff have revealed that the vast majority of the postage used by Chen and her business to ship goods within the United States is counterfeit.”
Chen’s business, which is based in City of Industry, received parcels from the vendors and others, applied shipping labels showing postage purportedly paid, and then arranged for the parcels to be transferred to USPS facilities to be shipped across the nation. The investigation in this case has revealed that the shipping labels were fraudulent and that they included, among other red flags, “intelligent barcode data” from previously mailed items. Investigators also determined that the meter numbers on many of the shipping labels, all of which indicated that they had been purchased and printed in 2023, related to postage meters known to have been discontinued in 2020, according to the complaint. On yet other postage labels used by Chen’s business, information contained in the tracking barcode was inconsistent with other items of information on the label.
A USPS analyst estimates that between November 1, 2022, and April 30, 2023, Chen and her employees shipped over 9 million mail parcels containing counterfeit postage, resulting in estimated revenue losses to the USPS of over $60 million, the complaint states.
Chen’s shipping business was previously operated by her husband, who left for China two days after being interviewed by Postal inspectors in November 2019, according to the complaint.
A complaint contains allegations that a defendant committed a crime. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The two charges in the complaint each carry a statutory maximum sentence of five years in federal prison.
The United States Postal Inspection Service and IRS Criminal Investigation are conducting the investigation in this matter.
Assistant United States Attorney James C. Hughes of the Major Frauds Section is prosecuting this case.
San Pedro Woman Sentenced to Prison for Orchestrating Scheme that Defrauded Union’s Health Plan by Providing Sexual ServicesRead the Press Release
LOS ANGELES – A San Pedro woman was sentenced today to more than two years in prison for her role in a $2.1 health care fraud scheme that submitted bills to a labor union’s health insurance plan for physical therapy, when in fact the patients received sexual services that she arranged.
Sara Victoria, 46, was sentenced by United States District Judge Stanley Blumenfeld Jr. to 27 months in federal prison and ordered to pay $551,810 in restitution.
At the sentencing hearing, Judge Blumenfeld described Victoria as the “mastermind” of a “sophisticated” and “unique” fraudulent scheme.
Victoria pleaded guilty in December to federal charges of conspiracy and aggravated identity theft. According to her plea agreement, from January 2017 to April 2021, Victoria owned and operated businesses in San Pedro and Wilmington that offered patients chiropractic services and acupuncture treatments, in addition to sexual services.
Victoria knew that dock workers and others involved in the shipping industry in Long Beach had health insurance under the International Longshore and Warehouse Union – Pacific Maritime Association (ILWU-PMA) benefit plan. This plan generally covered all chiropractic services with no deductible and without requiring plan members to contribute any copay amount or out-of-pocket services.
Victoria hired women to provide sexual services to dock workers at her companies and recruited them through referrals and from strip clubs in the Long Beach area. In exchange for obtaining sexual services for themselves and their friends, ILWU-PMA plan members authorized Victoria to submit false claims for reimbursement for services such as chiropractic treatments and physical therapy – services not actually rendered – using their names or the names of their family members. Victoria also agreed to pay ILWU-PMA plan members cash kickbacks in exchange for authorization to submit false claims for reimbursement for services not actually rendered.
Victoria also admitted to using someone else’s identity without the person’s consent during the commission of the health care fraud scheme.
In total, Victoria submitted approximately $2,110,920 in claims to the ILWU-PMA plan, and the plan paid approximately $551,810.
The FBI and the United States Department of Labor – Employee Benefits Security Administration investigated this matter.
Assistant United States Attorney Jason C. Pang of the Major Frauds Section prosecuted this case.
Beverly Hills Man Finishing Federal Sentence in Fraud Case Indicted in New Alleged $9 Million Scam for Investments in Fake Hemp FarmRead the Press Release
LOS ANGELES – A federal grand jury this afternoon returned a five-count indictment that accuses a Beverly Hills man – who was completing a sentence in a prior federal fraud case – of soliciting more than $9 million from investors with false claims they were investing in a hemp farm that did not exist.
Mark Roy Anderson, 68, who was living in Beverly Hills while on supervised release after serving a 135-month prison sentence, faces five counts of wire fraud in a case that alleges he tricked investors into providing funding for his company, called Harvest Farm Group, to harvest and process hemp, grown on his farm, into medical grade CBD isolate to be sold for a substantial profit.
Special agents with the FBI arrested Anderson in this case on May 9 after prosecutors filed a criminal complaint outlining a series of actions and false statements that allegedly induced victims to send money to Anderson during the scheme that ran from at least June 2020 to April 2021.
“To induce the victim-investors to invest in Harvest Farm Group, defendant Anderson falsely represented that, through Harvest Farm Group: (i) he owned and operated a hemp farm in Kern County, California; (ii) he had already completed successful and profitable harvests of hemp from the farm; and (iii) he was using his own machinery and equipment to convert the hemp into CBD isolate and/or Delta 8, a psychoactive substance that, like CBD isolate, could be used in consumer products ranging from olive oil to body cream,” according to the indictment, which goes on to allege that none of those claims was true.
Anderson allegedly attempted to maintain a veneer of trustworthiness by taking steps to assure investors Harvest Farms Group was legitimate and he “was not the ‘Mark Roy Anderson’ with multiple prior fraud convictions.” The indictment alleges Anderson “concealed that he had been convicted of multiple federal and state felony crimes, including mail fraud, wire fraud, grand theft, forgery, preparing false evidence, and money laundering, and concealed that he was still serving a criminal sentence and still on supervised release at the time he was soliciting investments.”
Anderson allegedly used investor money for personal expenses, including more than $650,000 worth of luxury and vintage vehicles, over $400,000 in cash withdrawals, more than $142,000 in retail purchases, and other personal expenses, including more than $1.3 million spent to purchase a residence and surrounding citrus groves in Ojai.
An indictment contains allegations that a defendant committed a crime. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Anderson, who has been ordered held without bond in this case, is scheduled to be arraigned on the indictment in United States District Court on May 30.
Each count of wire fraud alleged in the indictment carries a statutory maximum sentence of 20 years in federal prison.
The FBI is investigating this case.
Assistant United States Attorney Kerry L. Quinn of the Major Frauds Section is prosecuting the case.
South Bay Man Found Guilty of Selling Fentanyl-Laced Pills That Caused Fatal Poisoning of 15-Year-Old Rolling Hills Estates BoyRead the Press Release
LOS ANGELES – A South Bay man has been found guilty by a jury of distributing pills laced with the powerful opioid fentanyl to a 15-year-old boy who ingested them and died in May 2020, the Justice Department announced today.
Alexander Declan Bell Wilson, 22, of Rolling Hills, was found guilty late Friday of one count of distribution of fentanyl resulting in death, an offense that carries a mandatory minimum sentence of 20 years in federal prison.
According to evidence presented at a five-day trial, on the evening on May 14, 2020, Wilson agreed to distribute five “percs” –slang for pills typically laced with fentanyl – to the victim, Nathan Young-Nichols, 15, of Rolling Hills Estates. Evidence seized from Young-Nichols’ cellular phone shows he believed the pills were authentic pharmaceutical pills that contained the opioid oxycodone.
At around 11:30 p.m. that night, the victim’s 13-year-old brother met Wilson outside the family’s house to pick up the five pills. Wilson then handed a plastic bag containing the pills to the victim’s brother through the window of Wilson’s vehicle. The victim’s brother took the bag from Wilson, went back inside the house, and gave the pills to the victim. Shortly afterward, Young-Nichols posted a photograph of the pills on his Snapchat social media account and then ingested the pills.
From approximately 1:50 a.m. to 5:30 a.m. on May 15, 2020, Wilson and the victim argued on Snapchat about the proper way to consume the pills Wilson had sold to the victim. During those chats, Wilson chastised Young-Nichols for chewing the pills, and then shared screenshots of their conversation with his Snapchat followers.
On the morning of May 15, 2020, the victim’s grandmother found him dead in his bedroom. Expert testimony at trial confirmed the victim’s death was caused solely due to fentanyl poisoning.
United States District Judge Fernando L. Aenlle-Rocha scheduled an October 20 sentencing hearing, at which time Wilson will face a mandatory sentence of 20 years and a potential sentence of life imprisonment. Wilson has been in federal custody since May 2021.
The Drug Enforcement Administration’s Overdose Justice Task Force and the Los Angeles County Sheriff’s Department investigated this matter.
The Overdose Justice Task Force is a project designed to investigate fatal fentanyl poisonings and identify the individuals who provided the fentanyl that directly caused the deaths. Under the Overdose Justice program for the DEA’s Los Angeles Field Division, DEA agents have established collaborative relationships with local law enforcement agencies across the seven counties that make up the Central District of California. Local authorities are almost always the first to respond to an overdose death, and DEA agents have provided training to dozens of local agencies to help them analyze evidence to determine if there are circumstances that might lead to a federal criminal prosecution.
Assistant United States Attorneys Ian V. Yanniello and Daniel H. Weiner of the General Crimes Section are prosecuting this case.
Santa Clarita Man Found Guilty of Producing Child PornographyRead the Press Release
LOS ANGELES – A federal jury has convicted a Canyon Country man and former Navy SEAL of producing child sexual abuse material (CSAM) for surreptitiously filming nude minor victims with hidden cameras in a residential setting.
Robert Quido Stella, 50, was found guilty Friday afternoon of three counts of producing child pornography, each of which carries a mandatory minimum sentence of 15 years and a maximum of 30 years in federal prison.
According to court documents, Homeland Security Investigations (HSI) received a tip two years ago that Stella had accessed a dark web child pornography website.
On July 15, 2021, agents found collections of CSAM on Stella’s computer and two external hard drives. Stella concealed some of the collections in digital folders structures bearing misleading titles such as “federal contracts” and “tax returns.” During the course of their investigation, HSI agents also found hidden cameras that Stella placed, including one disguised as a USB charging block. According to evidence presented at trial, Stella used that hidden camera to film his minor victims as they undressed to shower and used the bathroom.
HSI later located approximately 17 videos and over 100 screenshots from those videos of minor victims naked and partially undressed. Stella hid these images under multi-level digital folder structures on a hard drive bearing misleading titles such as “course work.”
A federal grand jury returned an indictment on July 27, 2021, that charged Stella with the three counts of production of child pornography, one count of access with intent to view child pornography for logging on to the child pornography dark web site, and two counts of possession of child pornography. Stella pleaded guilty to access with intent to view child pornography and two counts possession of child pornography, each of which carries a mandatory minimum sentence of five years in federal prison and a statutory maximum sentence of 20 years.
The federal jury convicted Stella of the three counts of production of child pornography on Friday after a four-day trial.
United States District Judge George H. Wu has scheduled an August 24 sentencing hearing on all six counts.
Stella has been in custody since his arrest.
This investigation in this case was conducted by HSI.
Assistant United States Attorneys Catharine A. Richmond and Lyndsi C. Allsop of the Violent and Organized Crime Section are prosecuting this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Justice Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Orange County Man Sentenced to 7 Years in Prison for Using Stolen Identities to Apply for over $1 Million in COVID Jobless BenefitsRead the Press Release
SANTA ANA, California – An Orange County man was sentenced today to 84 months in federal prison for fraudulently applying for more than $1.2 million in COVID-19 pandemic unemployment insurance (UI) benefits – and receiving more than $400,000 of the same – by using the stolen identities of two dozen victims.
Nhan Hoang Pham, 37, of Santa Ana, was sentenced by United States District Judge James V. Selna, who also ordered him to pay $408,496 in restitution.
Pham pleaded guilty on January 23 to one count of wire fraud in relation to benefits connected to a presidentially declared emergency.
From July 2020 to April 2021, Pham acquired without authorization or permission the personal identifying information (PII) – including names, dates of birth and Social Security numbers – of people living in California, Texas and Michigan, people he had never met.
Pham then created and submitted fraudulent online applications to the California Employment Development Department (EDD), which administers the state’s unemployment insurance program. Pham’s fraudulent applications sought federally funded pandemic benefits intended for the jobless and represented that the victims whose PII was unlawfully used received mail at Anaheim addresses that, in fact, Pham controlled.
Upon receipt of the applications, EDD transmitted the claimant information to Bank of America, which caused the issuance and mailing of debit cards to Anaheim addresses that Pham controlled.
Pham then took the fraudulently obtained debit cards and used them to withdraw money at ATMs throughout Orange County.
While Pham tried to obtain approximately $1,255,350 through fraudulent applications containing the PII of 24 identity theft victims, he received approximately $408,496.
The United States Secret Service; the United States Department of Labor’s Office of Inspector General; the California Employment Development Department Investigation Division; the Orange County District Attorney’s Office Bureau of Investigation; and the Santa Ana Police Department investigated this matter.
Assistant United States Attorney Lawrence E. Kole of the Santa Ana Branch Office prosecuted 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 Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
One-Time ‘Shot-Caller’ of MS-13 in Los Angeles, Second Senior Member of Gang Found Guilty of Federal RICO and Drug OffensesRead the Press Release
LOS ANGELES – Two senior members of Mara Salvatrucha, a transnational criminal street gang commonly called MS-13, including the one-time shot-caller of all MS-13 in Los Angeles, have been found guilty of federal racketeering and drug trafficking charges, the Justice Department announced today.
José Balmore Romero, 49, a.k.a. “Porky,” the case’s lead defendant, and Erwin Alexander Melgar, 45, a.k.a. “Snoopy,” each were found guilty late Friday of one count of conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act and one count of conspiracy to distribute controlled substances. Melgar also was found guilty of two counts of distribution of methamphetamine.
According to evidence presented at a four-day trial, Balmore was the overall shot-caller for MS-13 in Los Angeles in 2013 and 2014. As the leader of the gang, Balmore oversaw MS-13’s activities in Los Angeles, serving as the leader for the more than 20 cliques of MS-13 in Los Angeles. In this role, Balmore oversaw MS-13’s drug trafficking activities and the collection of extortionate “taxes” and “rent,” some of which was then distributed to Mexican Mafia members.
Balmore also conducted gang leadership meetings, where he brought together leaders from the various Los Angeles-based MS-13 cliques to discuss coordinated efforts in strengthening and organizing the gang in Los Angeles. He also disseminated gang orders, including authorizing the initiation of new members and the assault of members who were in bad standing.
As for Melgar, evidence at trial showed he was the shot-caller of the Normandie clique of MS-13 in Los Angeles, a clique based in the Koreatown area of Los Angeles. In this role, Melgar controlled and gave orders to the clique members, including to engage in acts of violence. Melgar also directed the clique’s extortion and drug sales.
In addition to narcotics trafficking and violent crimes, members of MS-13 also engaged in a wide range of criminal conduct that includes the extortion of street-level drug dealers and innocent business owners who were threatened with death if they did not make payments to the gang. Under Melgar, the gang also operated illegal after-hours clubs, commonly known as “casitas,” where it generated profits from illegal narcotics and alcohol sales.
United States District Judge Otis D. Wright II scheduled an October 16 sentencing hearing, at which time Balmore and Melgar will face statutory maximum sentence of life in federal prison and a mandatory minimum of 10 years in prison.
Federal prosecutors have secured 28 convictions so far in this case, which targeted the leadership of MS-13 in Los Angeles.
The investigation into MS-13 was conducted by the Los Angeles Metropolitan Task Force on Violent Gangs and was led by the FBI and the Los Angeles Police Department.
The LAMTFVG includes personnel from the Drug Enforcement Administration’s Southern California Drug Task Force pursuant to the High Intensity Drug Trafficking Area (HIDTA) program; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Los Angeles County Sheriff’s Department; U.S. Customs and Border Protection; and the California Department of Corrections and Rehabilitation. U.S. Immigration and Customs Enforcement and the United States Bureau of Prisons participated in the investigation.
Other agencies provided substantial assistance during the investigation, including the Los Angeles Regional Criminal Information Clearinghouse (LA CLEAR), the Los Angeles City Attorney's Office, the Los Angeles County Probation Department, and the Los Angeles County Department of Children and Family Services.
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.
Assistant United States Attorney Jeffrey M. Chemerinsky, Chief of the Violent and Organized Crime Section, and Assistant United States Attorneys Shawn T. Andrews and Amy E. Pomerantz, also of the Violent and Organized Crime Section, are prosecuting this case.
Federal Indictment Charges 7 with Gun and Narcotics TraffickingRead the Press Release
LOS ANGELES – Federal and local authorities this morning arrested six defendants, the majority of whom are members of the El Sereno Rifa street gang, on federal weapons and narcotics charges stemming from a nearly yearlong undercover operation in which authorities purchased approximately 11 pounds of methamphetamine and 47 firearms, including ghost guns and so-called “cop killer” handguns.
A federal grand jury on May 12 returned a 28-count indictment that charges seven defendants with various offenses, including methamphetamine trafficking, conspiring to illegally deal in firearms, and firearms trafficking. The indictment was unsealed this morning after the arrests by special agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and officers with the Los Angeles Police Department.
In conjunction with this morning’s arrests, investigators conducted a series of searches that resulted in the seizure of another eight firearms.
“Drug trafficking and the illegal distribution of high-powered weapons brings an unacceptable level of danger to our communities,” said United States Attorney Martin Estrada. “The action today is our office’s second significant sweep related to gang activity this week, and it signals that we are taking concrete steps to deal with violent crime across the region. We will continue to work with our federal and local partners to address violent crime and allow our community to take back their neighborhoods from violent gangs.”
“ATF reduces violent crime by partnering with local law enforcement to identify, investigate, and arrest those who illegally supply firearms to prohibited individuals, and by targeting previously convicted felons who possess firearms,” said ATF Los Angeles Field Division Acting Special Agent in Charge Michael Hoffman. “ATF works tirelessly to rid our communities of this violent criminal activity by gang members. ATF is committed to its partnership with LAPD and will continue to eradicate these career criminals from our communities, so we can all feel safer.”
The lead defendant in the case – Ernesto Echeverria, aka “Bad Boy” and “Gordo,” 40, of East Los Angeles – was involved in all of the transactions outlined in the indictment, typically by personally participating in the drug and gun deals, but sometimes by linking up buyers with suppliers.
Between June 22, 2022, and May 2, 2023, Echeverria and his associates, in nearly two dozen transactions, sold or brokered 47 firearms, according to the indictment. Those weapons included short-barreled rifles, ghost guns with no serial numbers and an array of handguns, including three FN Five-sevens – nicknamed “cop killer” guns because the rounds fired from these firearms are capable of penetrating most types of body armor that police officers wear.
Echeverria also participated in 10 methamphetamine transactions involving up to 1.3 kilograms of the drug in each transaction.
In a narcotics sales involving 1.2 kilograms of methamphetamine and in eight of the gun transactions outlined in the indictment, Echeverria allegedly was assisted by Oscar Barrientos, aka “Chato,” 40, of East Los Angeles.
The indictment also charges that Echeverria, Barrientos and three other defendants illegally possessed firearms after being convicted of felony offenses.
In addition to Echeverria and Barrientos, the indictment charges:
- Fernando M. Martinez III, aka “Lil Sharky” and “Sharky,” 19, of East Los Angeles;
- Michael A. Murillo, 29, of Montebello;
- Adam W. Garcia, aka “Oso,” 43, of East Los Angeles;
- Arnold R. Salas, aka “Guerro,” 50, of West Covina; and
- Daniel Carrillo, 30, of Long Beach, who is currently being sought by authorities.
The defendants arrested this morning are expected to be arraigned on this indictment this afternoon in United States District Court in downtown Los Angeles.
An indictment contains allegations that a defendant committed a crime. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The indictment alleges 11 counts of distribution of methamphetamine, most of which carry a mandatory minimum sentence of 10 years in federal prison and a maximum sentence of life.
The charges of conspiracy and engaging in the business of dealing in firearms without a license have a maximum penalty of five years. The offenses of trafficking in firearms and being a felon in possession of firearms and ammunition each carry a statutory maximum penalty of 15 years.
The ATF; the Los Angeles Police Department, Central Bureau, Hollenbeck Division; and the Los Angeles County Sheriff’s Department, Major Crimes Bureau are conducting the investigation in this matter.
Assistant United States Attorney Nisha Chandran of the Cyber and Intellectual Property Crimes Section is prosecuting this case.
Federal Grand Jury Indicts San Fernando Valley Duo Who Allegedly Used Darknet Marketplaces to Sell Fentanyl and CocaineRead the Press Release
LOS ANGELES – A San Fernando Valley man and woman who allegedly used darknet marketplaces to sell hundreds of thousands of dollars’ worth of fentanyl-laced pills and cocaine to buyers nationwide have been indicted by a federal grand jury, the Justice Department announced today.
Brian McDonald, 22, of Van Nuys, whose aliases include “Malachai Johnson,” “SouthSideOxy,” and “JefeDeMichoacan,” and Ciara Clutario, 22, of Burbank, were charged in an eight-count indictment returned Wednesday.
Both defendants are charged with one count of conspiracy to distribute fentanyl and cocaine, five counts of distribution of fentanyl, and one count of distribution of cocaine. McDonald also is charged with one count of possession of firearms in furtherance of a drug trafficking crime.
McDonald has been in federal custody since his arrest in this case on May 4, and his arraignment is scheduled for May 25 in United States District Court in downtown Los Angeles. Clutario is expected to make her initial appearance in the coming weeks.
According to the indictment, from at least April 2021 until May 2023, McDonald, Clutario 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, the indictment alleges.
McDonald and Clutario allegedly 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 allegedly recruited and hired accomplices – including Clutario – to help with packaging and shipping the narcotics that they sold on the darknet. McDonald directed Clutario and other co-conspirators on how to package and ship the narcotics, and he assisted them in the packaging and shipping, the indictment alleges.
The indictment alleges that in May 2021 – one week after McDonald created a darknet vendor profile for the purpose of selling illegal drugs – he texted Clutario to tell her that their darknet drug sales were “flourish[ing].” Later that month, McDonald allegedly texted a co-conspirator that he had just sold 20,000 pills to customers.
In June 2021, McDonald allegedly texted an accomplice that he had 34 drug orders he had to fill. The following month, in text messages to Clutario about the conspiracy’s goals, McDonald stated, “i’m really tryna make like 5 mil,” according to the indictment.
The proceeds from the drug sales – after being converted from cryptocurrency into cash – allegedly were stored by McDonald and Clutario at their respective residences. They shipped fentanyl and cocaine that were sold for hundreds of thousands of dollars, according to the indictment.
McDonald also allegedly 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.
An indictment contains allegations that a defendant committed a crime. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
In convicted of all charges, McDonald and Clutario would face mandatory minimum sentences of 15 years and 10 years, respectively, in federal prison. Each defendant also would face a statutory maximum sentence of life in federal prison.
The FBI and the Drug Enforcement Administration are investigating 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 Attorneys Declan T. Conroy and Ian V. Yanniello of the General Crimes Section are prosecuting this case.
Los Angeles Harbor Area Gang Members and Associates Targeted in Federal Complaints Alleging Fentanyl and ‘Ghost Gun’ SalesRead the Press Release
LOS ANGELES – Law enforcement this morning arrested seven members and associates of Los Angeles Harbor area street gangs – including from the two largest gangs, Westside Wilmas and Eastside Wilmas – on federal charges alleging the trafficking of firearms and pound quantities of narcotics such as fentanyl.
Those arrested today are among 10 members and associates of street gangs who are named across three criminal complaints filed in federal court. One defendant is in state custody, and law enforcement continues to search for two defendants. Authorities arrested an additional four defendants on state charges.
In relation to the charges unsealed today, law enforcement seized approximately 23 firearms, 26.2 kilograms of methamphetamine, approximately 23,000 fentanyl pills, 2.4 kilograms of powdered fentanyl, and one kilogram of cocaine.
This morning’s arrests are the latest development in a violence reduction initiative started in late 2020 by a joint FBI and Los Angeles Police Department task force that targeted gang activity in the Harbor area. Prior to today’s arrests, 11 Harbor area gang members and associates were charged with federal drug, firearms and Hobbs Act robbery crimes. Three of those defendants already have been convicted and sentenced, receiving prison sentences of between 10 and 20 years.
The seven federal defendants arrested today are charged in complaints filed May 10 with various federal crimes, including distribution of controlled substances, possession with intent to distribute controlled substances, and being a felon in possession of a firearm.
According to an affidavit filed with one of the complaints, the task force has investigated influential members and associates of the Eastside Wilmas, Westside Wilmas and other Harbor area gangs who were suspected of being involved in a host of illegal activities. Both Eastside and Westside Wilmas are based in Wilmington, a Los Angeles neighborhood located near the twin ports of Los Angeles and Long Beach.
Harbor area gangs, including the Wilmas, commit their crimes under the direction and authority of the Mexican Mafia, a California prison gang that controls many of the Latino street gangs in Southern California. Mexican Mafia leaders and associates direct the activities of the Wilmas gangs from within the California state prison system. Leaders have access to illicit cellular telephones and other digital devices that they use to communicate with gang members in the community.
Law enforcement believes the Wilmas gangs are controlled by separate Mexican Mafia members who are each serving a life sentence in a California state prison after being convicted of murder. One Mexican Mafia associate directs firearm and drug sales from prison despite being sentenced to death for murder.
The complaint affidavit alleges from October 2022 to February 2023, reputed Wilmas and Mexican Mafia associate Patricia Amelia Limon, 53, of Lomita, fulfilled seven drug and firearm deals under the direction of the Mexican Mafia associate on death row. Limon personally, and at least once through an intermediary, supplied methamphetamine, fentanyl, firearms and ammunition to a buyer and collected money on behalf of the Mexican Mafia member.
In one deal on November 2, 2022, Limon allegedly supplied 5,000 rainbow-colored fentanyl pills to a buyer for $5,300. Fifteen days later, Limon allegedly supplied 1.71 kilograms (3.8 pounds) of methamphetamine and 2,000 fentanyl pills to a buyer for $5,000. The affidavit further alleges Limon engaged in other illicit sales of fentanyl and firearms.
The affidavit further alleges that Jesus Chuy Delgado, 46, of San Pedro, who reputedly is a high-ranking Westside Wilmas member, engaged in a series of methamphetamine and firearms sales, including several in January and February 2023 that allegedly occurred across the street from a high school and a middle school in San Pedro. Delgado allegedly sold firearms – including semi-automatic weapons lacking a serial number, commonly known as “ghost guns” – and 883.9 grams (1.95 pounds) of methamphetamine while on parole.
A criminal complaint is merely an accusation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted, Limon and Delgado – who are charged with distribution of controlled substances – would face a statutory maximum sentence of life in federal prison.
The FBI and the LAPD are investigating this matter.
Assistant United States Attorneys Kevin B. Reidy of Major Frauds Section and Suria M. Bahadue of the Criminal Appeals Section are prosecuting this case.
Inland Empire Man Arrested for Allegedly Stealing Sensitive Software from His U.S. Employers to Build a Competing Business in ChinaRead the Press Release
LOS ANGELES – An Inland Empire man has been arrested on a criminal complaint alleging he stole sensitive technologies from his Southern California-based employers and used them to market his own competing company to businesses in the People’s Republic of China (PRC).
Liming Li, 64, of Rancho Cucamonga, is charged with theft of trade secrets. Li was arrested at Ontario International Airport on May 6 after arriving on a flight from Taiwan. Since his arrest, Li has been in federal custody, and he has a detention hearing scheduled for May 22.
“Li stole thousands of files of sensitive technology that did not belong to him and used it to help foreign companies build competing technology – technology that could be used in the manufacture of nuclear submarines and military aircraft,” said United States Attorney Martin Estrada. “Protecting our nation’s national security is paramount, and my office will aggressively investigate and prosecute those who misappropriate sensitive intellectual property to the benefit of foreign actors.”
“The FBI Los Angeles Field Office takes the protection of our national security and critical technology extremely seriously,” said FBI Assistant Director in Charge Donald Alway. “Foreign adversaries, including the Chinese government, actively seek to erode American competitiveness in the global economy, diminish trust in fair market competition, and use stolen knowledge to increase their military modernization capabilities. Stealing proprietary information not only affects U.S. businesses, but, over time destabilizes American economic security. The FBI is dedicated to countering efforts of those seeking to illegally acquire sensitive information.”
The case against Li was brought under the auspices of the Disruptive Technology Strike Force, which is co-led by the Departments of Justice and Commerce. The Strike Force seeks to counter efforts by hostile nation-states to illicitly acquire sensitive U.S. technology to advance their authoritarian regimes and facilitate human rights abuses. The case against Li is one of five announced this morning at a news conference at the Department of Justice where officials detailed cases against defendants accused of crimes that include export violations, smuggling and theft of trade secrets.
According to an affidavit filed with the complaint filed in Los Angeles, from 1996 to November 2019, Li worked in various engineering, management and software development roles for two companies in Southern California. The companies are identified in court documents as “Company #1” and “Company #2.”
These software programs are related to high precision measurement studies interpretation and point cloud technology, which often are used in making 3D models. They can be used in various sensitive manufacturing contexts, including manufacturing parts for nuclear submarines and military aircraft, and are subject to United States export controls for national security, nuclear nonproliferation and anti-terrorism reasons. As a result of its military application, federal law mandates that this software cannot be exported to the PRC without a license from the Department of Commerce.
Li worked for Company #1 from 1996 to 2018 and then worked at Company #2 from 2018 until November 2019. Shortly before beginning his employment with the Company #2, Li and his wife established their own business, JSL Innovations, which was based out of their Rancho Cucamonga home.
After Company #2 terminated Li, company security discovered that Li was using his company-issued laptop to attempt to download files from Company #2’s root directory onto his personal external hard drive, according to the complaint affidavit. Company security searched Li’s company-issued laptop and found a folder labeled “ChinaGovernment.” That folder allegedly contained numerous documents showing Li’s efforts to participate in the PRC’s Thousand Talents Program and to use JSL Innovations to provide services and technology to PRC business and government entities related to the export-controlled and trade secret technology that Li took from his former employers in Southern California.
In March 2020, Li entered into an agreement with a PRC-based manufacturing company to serve as its chief technology officer. Li’s agreement with this employer required him to spend at least six months per year in the PRC.
Six months later, FBI agents executed a search warrant at LI’s home and found numerous digital devices containing millions of files belonging to Company #1 and Company #2 and containing the source code for those companies’ proprietary software, the complaint alleges. Although the source code files had been developed by and belonged to these companies, some of the files had been moved into folders labeled “JSL” or “JSL Projects.”
Both Company #1 and Company #2 derive significant value from the secrecy of their proprietary software source code and take extensive steps to protect the source code from discovery by competitors.
A criminal complaint is merely an accusation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted, Li would face a statutory maximum sentence of 10 years in federal prison.
The FBI is investigating this matter with substantial assistance from the Department of Commerce, Office of Export Enforcement, Bureau of Industry and Security.
Assistant United States Attorneys Solomon Kim of the Terrorism and Export Crimes Section; David Ryan, Chief of the Terrorism and Export Crimes Section; Aaron Frumkin of the Cyber and Intellectual Property Crime Section; and Trial Attorney Stephen Marzen of the Justice Department’s National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
The Disruptive Technology Strike Force is an interagency law enforcement strike force co-led by the Departments of Justice and Commerce. It is designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation-states. Under the leadership of the Assistant Attorney General for National Security and the Assistant Secretary of Commerce for Export Enforcement, the Strike Force leverages tools and authorities across the U.S. Government to enhance the criminal and administrative enforcement of export control laws.
Phoenix Man Pleads Guilty to Armed Robbery Spree that Ended in High-Speed Chase in Which He Opened Fire on Law EnforcementRead the Press Release
RIVERSIDE, California – An Arizona man pleaded guilty today to federal criminal charges for committing armed robberies of nine stores in Southern California and Arizona during a crime spree last summer that ended in a high-speed chase in which he fired upon federal agents and, after police rammed his car, he accidentally shot himself under his chin.
Samuel Sven Smith, 27, of Phoenix, pleaded guilty to two counts of interference with commerce by robbery (Hobbs Act) and two counts of brandishing and discharging a firearm during a crime of violence.
According to his plea agreement, from July 31, 2022, until his arrest on August 20, 2022, Smith went on an armed robbery spree in Los Angeles, Orange, and San Bernardino counties as well as in Arizona. Specifically, Smith admitted to targeting and robbing a Big Lots store in Riverside and PetSmart stores in Signal Hill, Orange, San Bernardino, Fontana, Pico Rivera, Redlands, Phoenix, and Rancho Cucamonga.
In each of these robberies, Smith brandished a firearm to control the stores’ employees.
After Smith robbed the Rancho Cucamonga PetSmart store, stealing $400 from a store employee, he exited the store and law enforcement, which included federal officers, confronted him. Smith then opened fire at the officers.
Smith then entered his vehicle and sped off, leading law enforcement on a high-speed chase, during which he fired his gun numerous times at pursuing officers. The chase ended when law enforcement rammed into Smith’s vehicle.
According to court documents, when law enforcement approached Smith’s car, they determined he had suffered a gunshot wound underneath his chin. Smith told officers who were performing life saving measures, that when they rammed into his vehicle, he accidentally shot himself, according to an affidavit filed with a criminal complaint in this case.
United States District Judge Jesus G. Bernal scheduled a January 22, 2024 sentencing hearing, at which time Smith will face a mandatory minimum sentence of 17 years in federal prison and a statutory maximum sentence of life imprisonment.
The ATF Orange County Violent Crime Task Force investigated this matter. The task force, which is responsible for investigating serial robberies around Southern California, is comprised of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); the Brea Police Department; the Fullerton Police Department; the Santa Ana Police Department; and the Orange County District Attorney’s Office. The San Bernardino County Sheriff’s Department provided assistance.
Assistant United States Attorney Jeffrey M. Chemerinsky, Chief of the Violent and Organized Crime Section and Assistant United States Attorney Kevin J. Butler, also of the Violent and Organized Crime Section, are prosecuting this case.
Inland Empire Man Sentenced to 2½ Years in Federal Prison for BB Gun Attacks on Planned Parenthood Clinic and Firearm OffenseRead the Press Release
LOS ANGELES – A San Bernardino County man was sentenced today to 30 months in federal prison for firing BB guns at a Planned Parenthood facility in Pasadena nearly a dozen times and for illegally possessing a firearm and ammunition.
Richard Royden Chamberlin, 53, who currently resides in Ontario, but previously maintained a residence in Altadena, was sentenced by United States District Judge Michael W. Fitzgerald, who also ordered him to pay $42,663 in restitution.
At today’s sentencing hearing, Judge Fitzgerald described Chamberlin’s year-long string of BB gun attacks as a “reign of terror” and that Chamberlin had acted “in a calculated and cruel way” against Planned Parenthood, its staff, and patients.
Chamberlin pleaded guilty in December 2022 to one count of violating the federal Freedom of Access to Clinic Entrances (FACE) Act and one count of being a felon in possession of a firearm and ammunition.
Chamberlin admitted in his plea agreement to driving past the Planned Parenthood facility in Pasadena and firing his BB gun at the clinic on at least 11 occasions between June 2020 and May 2021. Chamberlin admitted that he intentionally conducted the attacks to intimidate and interfere with the clinic, its doctors, staff, and patients specifically because the clinic was providing reproductive health services, including services related to the termination of pregnancies.
Beginning on June 27, 2020, Chamberlin’s attacks involved him firing BB pellets through the window of his car. The attacks caused physical damage to the clinic, including shattered windows, and served to intimidate the staff of the clinic.
On March 29, 2021, an employee of the clinic heard an object hit her office window, which caused her to fear for her physical safety and interfered with the performance of her job duties. The next day, at 8:30 a.m. while the clinic was open and receiving patients, Chamberlin again drove by and fired his BB gun at the front entrance. During this attack, a patient’s support companion was seated on the front porch and was nearly hit when the BB gun pellets peppered the banners directly in front of where she was seated. No one was injured in any of the shootings.
On May 7, 2021, the Pasadena Police Department stopped Chamberlin while he was driving away from the clinic following yet another BB gun attack. At this time, Chamberlin possessed eight BB guns, including BB guns designed to look like assault rifles. On the front passenger seat of his vehicle, police found a backpack containing a .22-caliber pistol, which was loaded with 10 rounds of ammunition. In his plea agreement, Chamberlin admitted that he possessed this firearm and ammunition after being previously convicted in Arizona in 2012 of a felony offense of attempted transportation of a narcotic drug for sale.
Following his May 7, 2021, arrest, Chamberlin attempted to dispose of his remaining firearms by selling four firearms to a local consignment store and transferring ownership of eight additional firearms to a neighbor. During a subsequent search of his home, authorities recovered thousands of rounds of ammunition, gun powder, a dozen additional BB guns, a black cylinder resembling a suppressor, a Polymer 80 gun-making kit, various gun parts and multiple documents identifying and referring to Planned Parenthood.
“These victims have all been deeply impacted by [Chamberlin’s] conduct,” prosecutors argued in a sentencing memorandum. “The clinic’s employees still experience daily anxiety and fear, and they have an overwhelming sense of being unsafe in their work environment.”
The FBI and the Pasadena Police Department conducted the investigation in this matter.
Assistant United States Attorney Frances S. Lewis of the Public Corruption and Civil Rights Section prosecuted this case.
Former Orange County Elementary School Teacher Pleads Guilty to Possessing Child Sexual Abuse MaterialRead the Press Release
SANTA ANA, California – A former Orange County elementary school teacher and high school wrestling coach pleaded guilty today to possessing child sexual abuse material (CSAM), including at least one video portraying masochistic sexual conduct involving a child.
Richard O’Connor, 45, of Anaheim, pleaded guilty to one count of possession of child pornography.
O’Connor formerly was employed as a fourth-grade teacher at Crescent Elementary School in Anaheim and volunteered as a boys’ wrestling coach at Canyon High School, also located in Anaheim. He is not accused of victimizing students.
According to his plea agreement, in October 2022, law enforcement served a federal search warrant on Apple Inc. for the contents of O’Connor’s Apple iCloud account.
A forensic review of O’Connor’s iCloud account identified at least 81 videos and 158 images of CSAM. O’Connor admitted in his plea agreement that several of the videos and images of CSAM in his iCloud account depicted infants or toddlers as well as violent, sadistic, or masochistic conduct.
O’Connor further admitted in his plea agreement that he knew that at least three of the videos that he possessed depicted minors engaged in sexual conduct. He also admitted to possessing at least one video that portrayed a child engaged in sadistic or masochistic conduct, particularly bondage.
United States District Judge David O. Carter scheduled a December 18 sentencing hearing, at which time O’Connor will face a statutory maximum sentence of 20 years in federal prison and will be required to register as a sex offender.
Federal prosecutors have agreed to recommend to the court that O’Connor be sentenced to a term of imprisonment no higher than five years.
Homeland Security Investigations investigated this case.
Assistant United States Attorney Melissa S. Rabbani of the Santa Ana Branch Office is prosecuting this case.
Justice Department Files Sexual Harassment Lawsuit Against Property Manager and Owner of California Rental PropertyRead the Press Release
LOS ANGELES – The Justice Department filed a lawsuit today against the property manager of an apartment building in Koreatown and the owner of the rental property alleging the sexual harassment of female residents in violation of the Fair Housing Act.
Abraham Kesary, who resides at the apartment building on South Western Avenue, sexually harassed female residents at the rental property from at least 2012 until at least 2020, according to the lawsuit filed today in federal court. According to the complaint, Kesary offered housing-related benefits in exchange for sexual acts, made unwelcome sexual comments and advances to female tenants, entered the homes of female tenants without their permission, and subjected female tenants to unwelcome sexual acts.
Kesary managed the apartment building on behalf of M&F Development, LLC, the property’s owner, who is also named as a defendant in the suit.
“Mr. Kesary allegedly abused his power as a property manager to sexually harass and victimize vulnerable tenants for years,” said United States Attorney Martin Estrada. “Sexual harassment is a violation of the Fair Housing Act, and the Justice Department will do everything in its power to seek justice for victims of discrimination and harassment.”
“No one should be subjected to demands for sex, sexual comments or propositions in exchange for safe and affordable housing,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “A home is a place of refuge; not a place to be subjected to degrading and unlawful harassment. The Justice Department is committed to vigorously enforcing the Fair Housing Act and holding landlords and housing providers accountable when they sexually harass their tenants.”
The lawsuit seeks monetary damages to compensate persons harmed by the alleged harassment, a civil penalty to vindicate the public interest, and a court order barring future discrimination.
Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination at rental dwellings owned or managed by Abraham Kesary or M&F Development, or who have other information that may be relevant to this case, may contact the Housing Discrimination Tip Line at 1-833-591-0291. Individuals may also email the Department at [email protected] or submit a report online. Reports also may be made by contacting the U.S. Department of Housing and Urban Development at 1-800-669-9777 or by filing a complaint online.
Assistant United States Attorney Margaret Chen of the Civil Division’s Civil Rights Section and attorneys from the Housing and Civil Enforcement Section of the Justice Department’s Civil Rights Division are handling this matter.
Justice Department Files Sexual Harassment Lawsuit Against California Rental Property Manager and OwnersRead the Press Release
The Justice Department announced today that it has filed a lawsuit against the manager and the owner of a rental property in Los Angeles for engaging in sexual harassment in violation of the Fair Housing Act.
The lawsuit, filed in the U.S. District Court for the Central District of California, alleges that Abraham Kesary sexually harassed female tenants at 445 S. Western Avenue in Los Angeles since at least 2012. According to the complaint, Kesary offered housing-related benefits in exchange for sexual acts, made unwelcome sexual comments and advances to female tenants, entered the homes of female tenants without their permission, and subjected female tenants to unwelcome sexual acts. The lawsuit also names M&F Development LLC, the owner of the property, as a defendant.
“No one should be subjected to demands for sex, sexual comments or propositions in exchange for safe and affordable housing,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “A home is a place of refuge; not a place to be subjected to degrading and unlawful harassment. The Justice Department is committed to vigorously enforcing the Fair Housing Act and holding landlords and housing providers accountable when they sexually harass their tenants.”
“Mr. Kesary allegedly abused his power as a property manager to sexually harass and victimize vulnerable tenants for years,” said U.S Attorney Martin Estrada for the Central District of California. “Sexual harassment is a violation of the Fair Housing Act, and the Justice Department will do everything in its power to seek justice for victims of discrimination and harassment.”
The lawsuit seeks monetary damages to compensate persons harmed by the alleged harassment, a civil penalty to vindicate the public interest and a court order barring future discrimination.
The Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination at rental dwellings owned or managed by Abraham Kesary or M&F Development LLC, or who have other information that may be relevant to this case, may contact the Housing Discrimination Tip Line at 1-833-591-0291, select option 1 for English or option 2 for Spanish, select option 2 for sexual harassment, then select option 5 for English or option 4 for Spanish to leave a message. Individuals may also email the department at [email protected] or submit a report online. Reports also may be made by contacting the U.S. Department of Housing and Urban Development at 1-800-669-9777 or by filing a complaint online.
The Justice Department launched its Sexual Harassment in Housing Initiative in October 2017. The department’s initiative is led by the Civil Rights Division, in coordination with U.S. Attorneys’ Offices across the country. The initiative seeks to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers, and other people who have control over housing. Since launching the initiative, the department has filed 31 lawsuits alleging sexual harassment in housing and recovered over $10.7 million for victims of such harassment.
Chinese Real Estate Developer’s L.A. Company Fined $4 Million for Providing over $1 Million in Benefits to Corrupt City CouncilmanRead the Press Release
LOS ANGELES – A downtown Los Angeles-based company was sentenced today to five years of probation and was fined $4 million – the maximum penalty under the law – for the actions of its billionaire Chinese real estate developer owner and others who provided more than $1 million in benefits – including luxury trips and a sham loan – to bribe then-Los Angeles City Councilman José Huizar to obtain city approval to build a 77-story skyscraper.
Shen Zhen New World I LLC was sentenced by United States District Judge John F. Walter, who noted that this criminal case exposed the “crushing costs of public corruption.”
At the conclusion of an 11-day trial that ended in November 2022, a jury found Shen Zhen guilty of three counts of honest service wire fraud, four counts of interstate and foreign travel in aid of bribery, and one count of bribery.
Shen Zhen’s owner – Wei Huang, 57, a resident of Shenzhen, China, who also maintains a residence in San Marino – is also charged in this case, but he has yet to make a court appearance in this matter. He is a fugitive believed to be in China.
In 2010, Shen Zhen – on Huang’s behalf – purchased the L.A. Grand Hotel in downtown Los Angeles. The property was located in the 14th City Council District, whose representative at that time was Huizar.
As part of his roles on the Los Angeles City Council, Huizar, 55, of Boyle Heights, was the chairman of the Planning and Land Use Management Committee, commonly referred to as the PLUM Committee, which oversaw major commercial and residential development projects in the city.
In June 2018, Shen Zhen filed an application with the Los Angeles City Planning Department to redevelop the L.A. Grand Hotel into a skyscraper featuring a mix of residential and commercial uses.
From February 2013 to November 2018, Shen Zhen, acting through Huang, provided Huizar with cash, casino gambling chips, flights on private jets and commercial airlines, stays at luxury Las Vegas hotels and casinos, expensive meals, spa services, prostitution services, political contributions, and a $600,000 collateral for Huizar to confidentially settle a pending sexual harassment lawsuit against Huizar by a former staffer that threatened his career.
At the time Shen Zhen provided these items, it did so intending to influence Huizar to take official acts to benefit the L.A. Grand Hotel redevelopment project, a project that would have transformed Shen Zhen’s hotel into a 77-floor mixed use skyscraper that would have been the tallest such structure west of the Mississippi River.
Specifically, Shen Zhen intended that Huizar benefit the project by presenting motions and resolutions in various city committees; voting on the project in the PLUM Committee and City Council; acting in the PLUM Committee to expedite the approval process of the project; exerting pressure on other city officials to influence the approval process of the project; and introducing and voting on city resolutions to enhance the professional reputation and marketability of Wei Huang.
Other defendants charged in this indictment are:
- Huizar, who pleaded guilty on January 20 to one count of racketeering conspiracy and one count of tax evasion. His sentencing hearing is scheduled for September 25. As part of his plea agreement, Huizar has agreed to seek a sentence of no less than nine years in prison.
- Dae Yong Lee, a.k.a. “David Lee,” 57, of Bel Air, a real estate developer who along with one of his companies, 940 Hill LLC, was found guilty in June 2022 of providing $500,000 in cash to Huizar in exchange for his help in resolving a labor organization’s appeal of their downtown Los Angeles development project. Both defendants are scheduled for sentencing on July 21.
- Raymond She Wah Chan, 67, of Monterey Park, a former Los Angeles deputy mayor, has pleaded not guilty to charges of RICO conspiracy, bribery, honest services fraud and lying to federal agents. His retrial is expected in March 2024.
Other defendants in related cases stemming from the Huizar corruption matter are:
- George Chiang, 44, of Granada Hills, a real estate development consultant who pleaded guilty in June 2020 to one count of racketeering conspiracy and is scheduled for sentencing on October 20.
- Justin Jangwoo Kim, 56, of Mar Vista, a political fundraiser who pleaded guilty in June 2020 to one count of bribery and is scheduled for sentencing on October 23.
- George Esparza, 36, José Huizar’s former special assistant, who is scheduled for sentencing on October 27. Esparza pleaded guilty in July 2020 to one count of racketeering conspiracy.
- Morris Roland Goldman, 60, of Porter Ranch, a lobbyist who pleaded guilty in September 2020 to one count of conspiracy to commit bribery and honest services fraud and is scheduled for sentencing on November 3.
- Salvador Huizar, 56, of Boyle Heights, José Huizar’s brother, who testified as a witness for the prosecution in the Shen Zhen trial, pleaded guilty in October 2022 to a felony charge of making false statements to federal investigators. His sentencing hearing is scheduled for November 3.
The FBI investigated this matter.
Assistant United States Attorney Mack E. Jenkins, Chief of the Criminal Division, Assistant United States Attorneys Susan S. Har and J. Jamari Buxton, of the Public Corruption and Civil Rights Section, and Assistant United States Attorney Patrick Castañeda of the International Narcotics, Money Laundering, and Racketeering Section, prosecuted this defendant.
Santa Barbara County Man Who Deliberately Crashed Airplane for YouTube Video Admits to Obstructing Federal InvestigationRead the Press Release
LOS ANGELES – A YouTuber pilot has agreed to plead guilty to a felony charge for obstructing a federal investigation by deliberately destroying the wreckage of an airplane that he intentionally crashed in Santa Barbara County to gain online views, the Justice Department announced today.
Trevor Daniel Jacob, 29, of Lompoc, agreed to plead guilty to one count of destruction and concealment with the intent to obstruct a federal investigation, a crime that carries a statutory maximum sentence of 20 years in federal prison.
A plea agreement and a one-count information charging Jacob were filed Wednesday in United States District Court in Los Angeles. He is expected to make his initial court appearance in the coming weeks.
According to his plea agreement, Jacob is an experienced pilot and skydiver who had secured a sponsorship from a company that sold various products, including a wallet. Pursuant to the sponsorship deal, Jacob agreed to promote the company’s wallet in a YouTube video that he would post.
On November 24, 2021, Jacob took off in his airplane from Lompoc City Airport on a solo flight purportedly destined for Mammoth Lakes. Jacob did not intend to reach his destination, but instead planned to eject from his aircraft during the flight and video himself parachuting to the ground and his airplane as it descended and crashed, he admitted in the plea agreement
Prior to taking off, Jacob mounted several video cameras on different parts of the airplane and equipped himself with a parachute, video camera and selfie stick. Approximately 35 minutes after taking off, while flying above the Los Padres National Forest near Santa Maria, Jacob ejected from the airplane and videoed himself parachuting to the ground.
Using the video camera mounted on the selfie stick and the video cameras he mounted on the airplane, Jacob was able to record the airplane as it descended and crashed into a dry brush area in Los Padres National Forest. After parachuting to the ground, Jacob hiked to the location of the wreck and recovered the data containing the video recording of his flight and the crash of the airplane, the plea agreement states.
On November 26, 2021, Jacob informed the National Transportation Safety Board (NTSB) about the plane crash. The NTSB, which launched an investigation into the crash on or about that same day, told Jacob that he was responsible for preserving the wreckage so the agency could examine it. Jacob agreed to determine the crash location and provide both the coordinates of the downed plane and videos of the crash to NTSB investigators. Three days later, the Federal Aviation Administration (FAA) launched its own investigation into the plane crash.
In the weeks following the plane crash, Jacob lied to investigators that he did not know the wreckage’s location, according to the plea agreement. In fact, on December 10, 2021, Jacob and a friend flew by helicopter to the wreckage site. There, Jacob used straps to secure the wreckage, which the helicopter lifted and carried to Rancho Sisquoc in Santa Barbara County, where it was loaded onto a trailer attached to Jacob’s pickup truck.
Jacob drove the wreckage to Lompoc City Airport and unloaded it in a hangar. He then cut up and destroyed the airplane wreckage and, over the course of a few days, deposited the detached parts of the wrecked airplane into trash bins at the airport and elsewhere, which he admitted in his plea agreement was done with the intent to obstruct federal authorities from investigating the November 24 plane crash.
On December 23, 2021, Jacob uploaded a YouTube video titled, “I Crashed My Airplane,” that contained a promotion of the wallet and depicting him parachuting from the plane and the aircraft’s subsequent crash. Jacob admitted in his plea agreement that he intended to make money through the video.
Jacob further admitted he lied to federal investigators when he submitted an aircraft accident incident report that falsely indicated that the aircraft experienced a full loss of power approximately 35 minutes after takeoff. Jacob also lied to an FAA aviation safety inspector when he said the airplane’s engine had quit and, because he could not identify any safe landing options, he had parachuted out of the plane.
The FAA revoked Jacob’s pilot license in April 2022.
The United States Department of Transportation – Office of Inspector General investigated this matter. The NTSB and FAA provided substantial assistance.
Assistant United States Attorney Mark A. Williams, Chief of the Environmental and Community Safety Crimes Section, and Assistant United States Attorneys Dennis Mitchell and Dominique Caamano, also of the Environmental and Community Safety Crimes Section, are prosecuting this case.
Nevada Man Charged with Federal Hate Crimes for Irvine Taiwanese Presbyterian Church ShootingRead the Press Release
A Nevada man has been charged with 98 counts of federal hate crimes and weapons and explosives offenses, including the murder of one person and attempted murder of 44 others, for his actions during the shooting and attempted bombing at the Irvine Taiwanese Presbyterian Church on May 15, 2022.
David Chou, 69, of Las Vegas, killed one person and attempted to kill 44 others using firearms and explosive devices that he carried inside the Irvine Taiwanese Presbyterian Church in Southern California, according to the indictment returned Wednesday by a federal grand jury in Santa Ana, California. In addition to the victim who Chou fatally shot, five others were injured by gunfire. Chou allegedly acted because of the victims’ national origin and religion, and he intentionally obstructed the victims’ religious exercise.
Specifically, the indictment charges Chou with 98 violations of federal law:
- 45 counts of obstructing free exercise of religious beliefs by force, which resulted in the death of one person, included attempts to kill 44 others, and involved the use of a firearm and attempted use of explosives and fire;
- 45 counts of violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act by attacking the church congregants because of their actual or perceived Taiwanese national origin and Presbyterian faith;
- One count of attempting to damage or destroy a building used in interstate commerce by means of fire and explosives;
- One count of carrying explosives during the commission of a federal felony offense; and
- Six counts of using a firearm during the commission of a crime of violence.
If convicted, Chou faces a maximum penalty of death or life in prison without parole. He is currently in state custody pending state criminal charges.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Martin Estrada for the Central District of California and Los Angeles FBI Assistant Director in Charge Donald Alway made the announcement. The FBI would like to acknowledge the considerable assistance of the Orange County Sheriff's Department.
The FBI Los Angeles Field Office, the Orange County Sheriff’s Department and the ATF investigated the case.
Assistant U.S. Attorneys Greg Scally and Susan Har for the Central District of California and Special Litigation Counsel Michael J. Songer of the Civil Rights Division’s Criminal Section are prosecuting the case.
An indictment is merely an accusation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Las Vegas Man Charged with Federal Hate Crimes in Connection with Taiwanese Presbyterian Church Shooting in Orange CountyRead the Press Release
SANTA ANA, California – A Nevada man has been charged with 98 counts of federal hate crimes and weapons and explosives offenses, including the murder of one person and attempted murder of 44 others, for his actions during the shooting and attempted bombing at the Irvine Taiwanese Presbyterian Church on May 15, 2022, the Justice Department announced today.
David Chou, 69, of Las Vegas, killed one person and attempted to kill 44 others using firearms and explosive devices that he carried inside the Irvine Taiwanese Presbyterian Church in Southern California, according to the indictment returned Wednesday by a federal grand jury in Santa Ana. In addition to the victim who Chou fatally shot, five others were injured by gunfire. Chou allegedly acted because of the victims’ national origin and religion, and he intentionally obstructed the victims’ religious exercise.
Specifically, the indictment charges Chou with 98 violations of federal law:
- 45 counts of obstructing free exercise of religious beliefs by force, which resulted in the death of one person, included attempts to kill 44 others, and involved the use of a firearm and attempted use of explosives and fire;
- 45 counts of violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act by attacking the church congregants because of their actual or perceived Taiwanese national origin and Presbyterian faith;
- One count of attempting to damage or destroy a building used in interstate commerce by means of fire and explosives;
- One count of carrying explosives during the commission of a federal felony offense; and
- Six counts of using a firearm during the commission of a crime of violence.
An indictment is merely an accusation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted, Chou faces a maximum penalty of death or life in prison without parole. He is currently in state custody pending state criminal charges.
The FBI Los Angeles Field Office, the Orange County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
Assistant United States Attorneys Greg Scally of the Santa Ana Branch Office and Susan Har of the Public Corruption and Civil Rights Section and Special Litigation Counsel Michael J. Songer of the Justice Department’s Civil Rights Division’s Criminal Section are prosecuting the case.
Justice Department Files Statement of Interest in Religious Land Use Case Involving Faith-Based Group that Feeds Homeless in Orange CountyRead the Press Release
SANTA ANA, California – The Justice Department has filed a statement of interest in a federal lawsuit explaining that the act of distributing food and drinks to people who are homeless by Micah’s Way, a faith-based organization in Santa Ana that helps people in need, could be religious exercise under the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA).
The statement of interest was filed Tuesday afternoon in Micah’s Way v. the City of Santa Ana, a lawsuit alleging that the City of Santa Ana imposed a substantial burden on Micah’s Way’s religious exercise. At issue is the city’s denial of an occupancy certificate to Micah’s Way on the grounds that it was providing food and drinks to people who are homeless in violation of the city’s zoning ordinance.
According to its complaint, Micah’s Way has a religious duty to help people in need, including by providing food and drink to someone who is hungry. After denying the occupancy certificate, the city informed Micah’s Way that it could not feed people who are homeless at its resource center under any circumstances and that if it continued to do so, Micah’s Way would be subject to fines and potential criminal prosecution.
The city filed a motion to dismiss the complaint, arguing, in part, that providing food and drinks to people who are homeless is not religious exercise and that its denial of an occupancy certificate did not substantially burden Micah’s Way’s religious exercise. The Justice Department’s statement of interest argues that feeding people who are homeless may be religious exercise protected by RLUIPA, and that the city’s denial of an occupancy certificate and complete prohibition on feeding people who are homeless may have imposed a substantial burden on Micah’s Way’s religious exercise, in violation of RLUIPA.
“The free exercise of religion is a bedrock principle of our nation,” said United States Attorney Martin Estrada. “Religious groups should be entitled to exercise their religion by providing charitable services based in their religious beliefs. Our office firmly opposes actions that block religious groups from carrying out their spiritual mission to help others in need.”
“Discriminatory barriers and land use restrictions against faith-based organizations is unlawful,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Many faith-based organizations across the country are on the front lines serving the needs of people experiencing homelessness. The Justice Department is committed to enforcing federal civil rights laws to ensure that all religious groups can freely exercise their religious beliefs.”
Assistant United States Attorney Matthew E. Nickell of the Civil Division’s Civil Rights Section and attorneys from Housing and Civil Enforcement Section of the Justice Department’s Civil Rights Division worked on the statement of interest.
RLUIPA is a federal law that protects religious institutions from unduly burdensome or discriminatory land use regulations. In June 2018, the Justice Department announced its Place to Worship Initiative, which focuses on RLUIPA’s provisions that protect the rights of houses of worship and other religious institutions to worship on their land. More information is available at www.justice.gov/crt/placetoworship.
Individuals in the seven counties of the Central District of California may file a complaint asserting civil rights violations with the Civil Rights Section, Civil Division of the U.S. Attorney’s Office by completing and submitting this form (English) (Spanish) by email to [email protected].
Pomona Man Found Guilty of Abusive Sexual Contact on FlightRead the Press Release
LOS ANGELES – A federal jury today found a Pomona man guilty of a felony offense for intentionally touching the inner thigh of a sleeping woman seated next to him on a flight from Cleveland to Los Angeles in February 2020.
Mohammad Jawad Ansari, 49, was found guilty of one count of abusive sexual contact.
According to evidence presented at a four-day trial, on February 17, 2020, Ansari boarded a flight from Cleveland Hopkins International Airport to Los Angeles International Airport. Ansari occupied a 10th-row window seat while the victim occupied the middle seat next to him. The victim, who was wearing a dress, fell asleep shortly after takeoff and the armrest separating Ansari from the victim was down.
At some point during the flight to Los Angeles, Ansari placed his left hand on the victim’s right knee and knowingly, intentionally, and without the victim’s consent, moved his hand to her inner thigh. The person sitting in the 10th-row aisle seat next to the victim witnessed Ansari’s hand touching the victim’s inner thigh.
The victim woke up, pushed Ansari’s hand away, left her seat, and informed a flight attendant about what had happened. The flight’s attendants observed Ansari during the remainder of the flight and believed he was pretending to sleep.
United States District Judge Fernando L. Aenlle-Rocha scheduled a September 29 sentencing hearing, at which time Ansari will face a statutory maximum sentence of two years in federal prison.
The FBI and the Los Angeles Airport Police investigated this matter.
Assistant United States Attorneys Samuel J. Diaz and James A. Santiago of the International Narcotics, Money Laundering, and Racketeering Section are prosecuting this case.To mark Sexual Assault Prevention Month, the FBI’s Los Angeles Field Office on April 28 issued a public service announcement to bring awareness to the problem of sexual assault on airplanes. Victims of in-flight sexual misconduct – either verbal or physical – or their loved ones are encouraged to report the incident to a flight attendant and to your nearest FBI field office or to submit a tip online to the FBI at https://tips.fbi.gov/.