Central District of California
Press releases recorded for this federal judicial district.
Riverside Man Ordered to Spend 46 Months in Federal Prison in His Second Federal Case Stemming from Sale of Bogus Aircraft PartsRead the Press Release
LOS ANGELES – A Riverside man who previously served a lengthy prison sentence in two aircraft-related cases was sentenced today to nearly four years in federal prison for selling bogus aircraft parts and for falsifying related documents.
Aman Khan, who is also known as Amanullah Khan, 73, of Riverside, was ordered to serve 46 months in prison by United States District Judge R. Gary Klausner. In addition to the prison term, Judge Klausner ordered Khan to pay $1,538,054 in restitution and further ordered the forfeiture of all aircraft components seized from Khan’s former business.
Khan pleaded guilty on June 6 to two counts of fraud involving aircraft parts in interstate and foreign commerce, admitting that he sold fraudulent, counterfeit and unapproved aircraft parts from his Riverside-based company, California Aircraft and Avionics Corporation.
Court documents outline how Khan manufactured various parts – including wheel assemblies and aircraft turbine gas nozzles that had been ordered for NATO jets – and submitted documents that falsely certified the provenance of the equipment and conformity to approved design data.
“By selling fraudulent and unapproved parts to companies in the aircraft industry, [Khan] caused the risk that his parts would be installed on commercial and military aircraft instead of genuine aircraft parts,” Khan admitted in his plea agreement. “In so doing, [Khan] consciously and recklessly caused a risk of death or serious bodily injury to aircraft passengers and to the general public.”
Khan previously was convicted in this district of aircraft parts fraud and export violations. In 2005, Khan was sentenced to 188 months in federal prison for both falsely certifying flight-critical aircraft parts sold by his company and, in a separate case brought in the District of Columbia, for selling parts for military jet fighters to China.
The United States Department of Transportation, Office of Inspector General; the United States Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement; the Defense Criminal Investigative Service; the FBI, and NASA’s Office of Inspector General conducted the investigation that resulted in today’s sentencing.
Assistant United States Attorney Benjamin D. Lichtman of the Santa Ana Branch Office prosecuted this case.
Irvine Man Sentenced to 4 Years in Federal Prison for Obtaining More Than $5 Million in COVID-Relief Loans for Sham BusinessesRead the Press Release
LOS ANGELES – An Orange County man was sentenced today to 48 months in federal prison for fraudulently obtaining more than $5 million in COVID-relief loans for three shell companies.
Raghavender Reddy Budamala, 36, of Irvine, was sentenced by United States District Judge Otis D. Wright II, who also ordered Budamala to pay $5,151,497 in restitution.
Budamala pleaded guilty on June 21 to one count of bank fraud and one count of money laundering. As part of his plea agreement, Budamala agreed to forfeit real estate in Orange County, Malibu and Los Angeles, as well as approximately $4,119,662 in funds from bank and investment accounts and cryptocurrency.
From January 2019 to August 2019, Budamala formed or acquired three shell companies with no operations – Hayventure LLC, Pioneer LLC, and XC International LLC. Following the outbreak of the COVID-19 pandemic and the enactment of federal programs designed to address the resulting economic fallout, Budamala submitted to the Small Business Administration seven applications for pandemic-relief loans under the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program.
As part of the applications filed from April 2020 through March 2021, Budamala falsely represented to the banks administering the COVID-relief business loan programs that his companies employed dozens of individuals and earned millions of dollars in revenue, and that he needed the money for payroll and business expenses.
The addresses listed for the companies were bogus, nonexistent or residential. The states where Budamala’s companies purportedly operated have no records of those companies paying wages to any employees, and bank records for the companies reflect no significant business income or operating expenses.
The SBA and the banks funded six of the loans and disbursed a total of $5,151,497. Budamala applied to have several of the loans forgiven and falsely represented that he had used the SBA money entirely for payroll.
Once the loans were funded, Budamala used the money to pay for personal expenses, including the purchase of a $1.2 million investment property in Eagle Rock, the purchase of a $597,585 property in Malibu, the purchase of a personal residence in Irvine, a $970,000 investment in an EB-5 Immigrant Investor Visa Program and a nearly $3 million deposit into Budamala’s personal TD Ameritrade account.
Budamala has been in federal custody since his arrest on February 23, when he attempted to abscond from the United States to Mexico via the San Ysidro border crossing. A criminal complaint was filed against him on February 24.
IRS Criminal Investigation, the FBI, and the Small Business Administration’s Office of Inspector General investigated this matter.
Assistant United States Attorney Gregory D. Bernstein of the Major Frauds Section and Assistant United States Attorney Maxwell K. Coll of the Asset Forfeiture and Recovery Section prosecuted this case.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Construction Firm Owner Admits Failing to Report $4.8 Million to IRSRead the Press Release
LOS ANGELES – The owner of an Inland Empire business pleaded guilty today to filing false tax returns that failed to report more than $4.8 million over a five-year period, resulting in his failure to pay $1.6 million in taxes due to the IRS.
Liang “Paul” Chen, 63, the owner of the Chino-based construction company Mass Development Inc. (MDI), who is identified in court documents as a resident of Los Angeles County, admitted in court today that he filed false corporate tax returns for the years 2013 through 2016.
Chen pleaded guilty to one count of aiding and assisting in the preparation of a false income tax return. In a plea agreement filed in federal court, Chen agreed to pay the IRS restitution of $1,642,935.
According to his plea agreement, from January 2013 through October 2017, Chen was in charge of MDI’s daily business activities and was listed as the owner of MDI on its financial documents. To conceal income, Chen deposited only a portion of the checks made payable to MDI into the company’s bank account and then cashed nearly $5 million of additional checks made payable to MDI at a bank and a local liquor store that offered check-cashing services.
In relation to MDI’s federal tax returns, Chen provided the tax return preparer with statements from MDI’s business bank account as and falsely advised the tax return preparer that all of MDI’s income had been deposited into the business bank account.
By failing to tell MDI’s return preparer that he had cashed a substantial portion of business checks made payable to MDI, Chen caused MDI to falsely report its gross receipts to the IRS. This underreporting resulted in an underpayment of federal taxes totaling $1,642,935.
Chen is scheduled to be sentenced by United States District Judge Mark C. Scarsi on December 12, at which time Chen will face a statutory maximum sentence of three years in federal prison.
IRS Criminal Investigation investigated this matter.
Assistant United States Attorney Steven M. Arkow of the Major Frauds Section is prosecuting this case.
Orange County Man Charged with Interfering with Flight Crew After Assault on Flight Attendant Was Captured on VideoRead the Press Release
LOS ANGELES – An Orange County man was charged today in a federal criminal complaint that alleges he punched a flight attendant in the back of the head during a flight from Mexico to Los Angeles – an assault that a fellow passenger recorded on video.
Alexander Tung Cuu Le, 33, of Westminster, is charged with one count of interference with flight crew members and attendants, a crime that carries a statutory maximum sentence of 20 years in federal prison.
Le is expected to make his initial appearance this afternoon in United States District Court in downtown Los Angeles.
According to an affidavit filed with the complaint, on September 21, Le flew on American Airlines flight 377 from San José del Cabo, Mexico to Los Angeles International Airport. Approximately 20 minutes after takeoff, Le exited his seat while flight attendants were conducting food and beverage service. Le grabbed one flight attendant’s left shoulder from behind and asked for coffee. Moments later, Le grabbed both of the flight attendant’s shoulders from behind. After the flight attendant stepped back and put up a defensive posture, Le walked to the front of the airplane.
Le then allegedly loitered near the first-class cabin and then sat in an unoccupied aisle near the wall dividing the first-class cabin and the main cabin of the aircraft. A different flight attendant approached Le and requested that Le return to his assigned seat. Le did not comply and allegedly stood up and assumed a fighting stance towards the flight attendant by making closed fists with both of his hands, which the flight attendant interpreted as a threat.
Around this time, Le allegedly swung his arm at the flight attendant and missed. The flight attendant decided to report Le’s behavior to the pilot, turned away from Le and walked towards the front of the airplane. At this time, Le rushed toward the flight attendant and punched him in the back of the head, which was witnessed by several passengers, including one who filmed the attack, according to the affidavit.
After assaulting the flight attendant, Le fled toward the back of the airplane. Several passengers apprehended Le near an exit row. Out of safety concerns, Le was moved to a different row, and his hands and legs were cuffed. Le continuously unbuckled his seatbelt, causing flight attendants to restrain him to the seat with seatbelt extenders.
A complaint 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 is investigating this matter.
Assistant United States Attorney Kellye Ng-McCullough of the General Crimes Section is prosecuting this case.
Beverly Hills Man Pleads Guilty to Charge for Using Fake Companies in Scheme to Steal Millions of Dollars in COVID Small Business LoansRead the Press Release
LOS ANGELES – A Beverly Hills man – whose sons pleaded guilty earlier this month to felonies for defrauding COVID-relief programs – pleaded guilty today to a federal criminal charge for fraudulently seeking more than $6.7 million in COVID-related small business loans for more than half a dozen fake companies.
Ramiro Da Rosa Mendes, 61, pleaded guilty to one count of wire fraud.
According to his plea agreement, from April 2020 to August 2020, Mendes schemed to fraudulently obtain federal disaster relief funds distributed through the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) programs that were intended to help small businesses through the economic shock of the COVID-19 pandemic.
Mendes claimed to own numerous fake businesses purportedly based in Beverly Hills, including One Wilshire Enterprises, Professional Music Services, and MB Property Management Group LLC. These companies were fake businesses that did not exist prior to the COVID-19 pandemic and did not have any operations or employees.
Mendes also claimed to be the owner of fake real estate services companies, including Ramiro Mendes Real Estate Services, Real Estate Services, and Real Estate Invesst-ments, also located in Beverly Hills and Massachusetts, as well as other businesses registered in Wyoming.
In his plea agreement, Mendes admitted to submitting 19 applications for PPP and EIDL loans that contained false and fraudulent information, including the purported existence of payroll expenses, phony tax forms, and the operational status of the businesses.
For example, on June 24, 2020, Mendes submitted a fraudulent PPP loan application to a Florida-based bank, seeking a loan of $975,100. The loan application falsely stated that One Wilshire Enterprises employed 18 people, had an average monthly payroll of $390,040, and, according to a false tax form, earned $4,810,149 in revenue in 2019. Based on this false information, the bank approved and funded a PPP loan in the amount of $793,300. The loan amount was wired into a bank account Mendes controlled.
Mendes admitted in his plea agreement to stealing the COVID-relief loans and misusing the proceeds for his own personal benefit, including the purchase of cryptocurrency. He further admitted that the intended loss in this case was approximately $6,708,963 and the actual loss was at least approximately $2,228,302.
United States District Judge Percy Anderson scheduled a December 12 sentencing hearing, at which time Mendes will face a statutory maximum sentence of 20 years in federal prison.
In separate cases, Mendes’ sons – Ammon Jose de Pina Mendes, 26, of Beverly Hills, and Mateus Pina Mendes, 33, of Los Angeles – each pleaded guilty on September 1 to one count of wire fraud. Using the names of fake businesses, Ammon and Mateus Mendes fraudulently obtained approximately $222,225 and $143,283, respectively, in PPP and EIDL loans. Their sentencing hearings are scheduled for November 29, at which time each defendant will face up to 20 years in federal prison.
This matter was investigated by the FBI; the Federal Housing Finance Agency – Office of the Inspector General; the United States Postal Inspection Service; the Federal Deposit Insurance Corporation – Office of the Inspector General; the Treasury Inspector General for Tax Administration – Office of the Inspector General; IRS Criminal Investigation; and the Small Business Administration – Office of the Inspector General.
Assistant United States Attorney Scott Paetty of the Major Frauds Section and Trial Attorney Jennifer Bilinkas of the Justice Department’s Fraud 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.
Echo Park Man Agrees to Plead Guilty to Charges for Attempting to Sexually Traffic Two Children and Distributing Child PornographyRead the Press Release
LOS ANGELES – An Echo Park man has agreed to plead guilty to federal criminal charges for using an online messenger app to attempt to sexually traffic two children – ages 7 and 9 – and for distributing sexually explicit images of children, the Justice Department announced today.
Francisco Anthony Dorame, 41, a.k.a. “dadboss99,” a.k.a. “SEXYCONN,” is charged in an information with one count of attempted sex trafficking of a child under 14 years old and one count of distribution of child pornography. He has agreed to plead guilty to the charges.
Dorame is expected to appear Thursday for his arraignment in United States District Court in downtown Los Angeles. He has been in federal custody since his arrest on a federal criminal complaint in this matter on August 23.
According to his plea agreement filed Tuesday, in May 2022, Dorame used Kik Messenger, a social media messaging platform, to knowingly attempt to traffic two minor children – ages 7 years old and 9 years old. During a Kik conversation, Dorame made two payments, totaling $100, to a person who had access to the victims. Among other things, Dorame requested photographs of the victims, expressed his desire to “play with them right away” upon meeting up, and set a specific date, time, and location for the meeting.
Dorame further admitted in his plea agreement that in April 2022 he used Kik to distribute sexually explicit images of children between the ages of 4 years old and 6 years old.
Once Dorame enters a guilty plea to the criminal charges, he will face a statutory maximum sentence of life imprisonment and a mandatory minimum sentence of 15 years in federal prison.
The FBI is investigating this matter.
Assistant United States Attorneys Kathy Yu and Scott M. Lara of the Violent and Organized Crime Section are prosecuting this case.
Any member of the public who has information related to this matter is encouraged to contact the FBI’s Los Angeles Field Office at 1-800-CALL-FBI (1-800-225-5324).
Arcadia Man Charged with Securities Fraud for Stealing Client Funds and Concealing His Investment Firm’s Massive Financial LossesRead the Press Release
LOS ANGELES – A former San Gabriel Valley resident who ran Los Angeles County-based investment companies and was a frequent guest on financial television news programs was charged today in a federal criminal complaint alleging he lied to investors.
James Arthur McDonald Jr., 50, formerly of Arcadia and who is believed to be in hiding, is charged with one count of securities fraud, a crime punishable by up to 20 years in federal prison.
According to an affidavit filed with the complaint, McDonald frequently appeared as an analyst on the CNBC financial TV news network and was the CEO and chief investment officer of two companies: Hercules Investments LLC, based in downtown Los Angeles, and Index Strategy Advisors Inc. (ISA), based in Redondo Beach.
In late 2020, McDonald lost tens of millions of dollars of Hercules client money after adopting a risky short position that effectively bet against the health of the United States economy in the aftermath of the U.S. presidential election. McDonald projected that the COVID-19 pandemic and the election would result in major selloffs that would cause the stock market to drop. When the market decline didn’t occur, Hercules clients lost between $30 million and $40 million, according to the affidavit. By December 2020, Hercules clients were complaining to company employees about the losses in their accounts.
Since McDonald’s compensation for his investment advisory services primarily was based on a percentage of assets under his management – typically 2% of a client’s total assets held by Hercules – the massive losses to Hercules clients significantly decreased the fees McDonald was entitled to collect.
In early 2021, McDonald solicited millions of dollars' worth of funds from investors in the form of a purported capital raise for Hercules but misrepresented how the funds would be used and failed to disclose the massive losses Hercules previously sustained. McDonald – an avid football enthusiast – stated that he planned to launch a publicly traded mutual fund under the ticker symbol “NFLHX.” The losses to Hercules clients and the potential for litigation related to those losses jeopardized the success of that fund because any litigation would have had to be publicly disclosed.
As part of the capital raise, McDonald obtained $675,000 in investment funds from one victim group on March 9, 2021. He then misappropriated those funds in various ways, including spending roughly $174,610 of them at a Porsche dealership. Approximately $109,512 was transferred to the landlord of a home McDonald was renting in Arcadia; and approximately $6,800 was spent on a website that sells designer menswear.
McDonald allegedly also falsely represented to clients that ISA, his other firm, was a registered investment adviser, even though he had withdrawn ISA as a state-registered investment adviser firm in May 2019. He also allegedly sent ISA clients false account statements, including for one client who invested approximately $351,000, later needed the money to make a down payment on a home, was informed by McDonald that much of the money had been lost, and never got his full investment back.
The United States Securities and Exchange Commission subpoenaed McDonald to testify before it in November 2021, but – without advance notice – he failed to appear as required. According to the complaint, McDonald also appears to have terminated his previous phone and email accounts and told one person that he planned to “vanish.”
Anyone with information about McDonald’s whereabouts is encouraged to call the FBI’s Los Angeles Field Office at (310) 477-6565.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The FBI and IRS Criminal Investigation investigated this matter. The SEC filed a civil complaint today charging McDonald and Hercules with violations of federal securities law.
Assistant United States Attorneys Carolyn S. Small and Alexander B. Schwab of the Major Frauds Section are prosecuting this case.
Clothing Wholesaler Agrees to Plead Guilty to Violating U.S. Drug Trafficking Sanctions and Committing $6.4 Million Customs FraudRead the Press Release
LOS ANGELES – A Paramount-based clothing wholesale company has agreed to plead guilty to federal criminal charges for undervaluing imported garments in a scheme to avoid paying almost $6.4 million in customs duties and for doing business with a woman in Mexico who has ties to the Sinaloa drug cartel, the Justice Department announced today.
Ghacham Inc., which does business under the “Platini” brand name, is charged in a two-count information with conspiracy to pass false and fraudulent papers through a customhouse and conspiracy to engage in any transaction or dealing in properties of a specially designated narcotics trafficker under a statute known as the Foreign Narcotics Kingpin Designation Act.
Also charged today is Mohamed Daoud Ghacham, 38, of Bell, a Ghacham Inc. executive who is charged with one count of conspiracy to pass false and fraudulent papers through a customhouse. Both defendants also signed plea agreements filed today in United States District Court and are expected to make their initial court appearances on November 18.
According to court documents, Ghacham Inc. imported clothing from China and submitted fraudulent invoices to United States Customs and Border Protection (CBP) that undervalued the shipments, allowing it to avoid paying the full amount of tariffs owed on the imports.
At Mohamed Ghacham’s direction, the Chinese suppliers prepared two invoices for the clothing ordered by Ghacham Inc. – a true invoice, which reflected the actual price paid for the goods, and a fraudulent “customs invoice,” which reflected an understated price. Ghacham Inc. submitted the customs invoices to CBP and customs brokers to fraudulently reduce the tariffs owed on the imports, while it maintained the true invoices in its accounting records.
Ghacham Inc. and Mohamed Ghacham admitted that, between July 2011 and February 2021, they undervalued imported garments by more than $32 million and failed to pay customs duties approximately $6,390,792.
Ghacham Inc. also illegally conducted business with Maria Tiburcia Cazarez Perez in violation of the Kingpin Act, which prohibits people and businesses in the United States from doing business with her. Cazarez Perez was previously designated a “Specially Designated Narcotics Traffickers” under the Kingpin Act for her participation in the financial network of Ismael “El Mayo” Zambada Garcia and Victor Emilio Cazares Salazar, two leaders of the Mexico-based Sinaloa Cartel. Cazares Salazar was sentenced to 15 years in federal prison for drug trafficking activities in federal cases out of San Diego and New York City.
Upon entering guilty pleas, Ghacham Inc. will face a statutory maximum penalty of a $10.5 million fine and five years’ probation – during which time it will be required to implement an effective anti-money laundering compliance and ethics program with an outside compliance monitor, and Mohamed Ghacham will face up to five years in federal prison.
Homeland Security Investigations and CBP investigated this matter. The U.S. Department of Commerce Office of Export Enforcement, Treasury Department’s Office of Foreign Assets Control, and IRS Criminal Investigation provided significant assistance.
Assistant United States Attorneys Alexander B. Schwab of the Major Frauds Section and Diana L. Pauli of the International Narcotics, Money Laundering, and Racketeering Section are prosecuting the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Willowbrook Man Pleads Guilty to Bank Robbery Spree He Committed While on Supervised Release for Prior Bank Robbery ConvictionRead the Press Release
LOS ANGELES – A Willowbrook man pleaded guilty today to federal criminal charges for robbing three banks during a six-day crime spree while he was on supervised release for bank robbery convictions over a decade ago.
Rickey Lewis, 53, pleaded guilty to three counts of bank robbery and one count of attempted bank robbery.
According to his plea agreement, from January 22 to January 28, 2019, Lewis stole a total of $4,035 in cash by robbing two JPMorgan Chase bank branches in Gardena and an International City Bank branch in Long Beach. Lewis also attempted to rob a Bank of America branch in Downey.
During the robberies, Lewis threatened to shoot bank tellers – though it was not apparent that he was carrying a firearm – and he had clear tape on his fingers. In fear for their lives, the bank tellers handed over the cash.
According to an affidavit filed with a criminal complaint in this case, law enforcement recovered a partial palm print recovered from the Long Beach bank robbery that matched Lewis’ palm print.
While he committed the January 2019 bank robbery spree, Lewis was on supervised release for bank robbery convictions he sustained after he pleaded guilty in February 2006 to a month-long spree in which he robbed six banks in South Los Angeles and Inglewood.
United States District Judge Christina A. Snyder scheduled a January 23, 2023 sentencing hearing, at which time he will face a statutory maximum sentence of 20 years in federal prison for each count.
The FBI investigated this matter with the assistance of the Long Beach Police Department, the Downey Police Department, the Gardena Police Department, and the Los Angeles County Sheriff’s Department.
Assistant United States Attorneys Patrick Castañeda of the International Narcotics, Money Laundering, and Racketeering Section and Kevin J. Butler of the Violent and Organized Crime Section are prosecuting this case.
Martin Estrada Sworn in as United States Attorney, Becoming Chief Federal Law Enforcement Officer in Nation’s Most Populous DistrictRead the Press Release
LOS ANGELES – Martin Estrada was sworn in today as the United States Attorney for the Central District of California.
Estrada, 45, was sworn in by Chief United States District Judge Philip S. Gutierrez in a private ceremony this morning.
Estrada now oversees the largest United States Attorney’s Office outside of Washington, D.C. The office, which currently employs approximately 270 attorneys, serves approximately 20 million residents in the counties of Los Angeles, Orange, Riverside, San Bernardino, Ventura, Santa Barbara and San Luis Obispo.
After being confirmed by the United States Senate on September 13, Estrada was given a four-year appointment by President Joe Biden.
“I am deeply honored to return to the United States Attorney’s Office and have the opportunity to serve the people of this district,” Estrada said. “As the leader of this office, I will be focused on protecting our community, safeguarding the rights of every individual in this district and upholding the rule of law. I will also work to further develop the office’s relationships with federal, state and local law enforcement and with our community partners. Working together, we will always put the people of this district first.”
Prior to becoming the United States Attorney, Estrada was a partner at the law firm of Munger, Tolles & Olson where he focused on trials, complex litigation and investigations. There, in addition to representing corporate clients, Estrada handled high-impact pro bono matters in the areas of education, immigration and equal justice.
Estrada is a fellow of the American College of Trial Lawyers. He also was an Adjunct Professor for Loyola Law School’s Ninth Circuit Appellate Clinic, part of the Alarcón Advocacy Project, where his teams achieved success for indigent clients.
From 2007 to 2014, Estrada was an Assistant United States Attorney in the Central District of California. As a federal prosecutor, Estrada served as Deputy Chief of the Violent and Organized Crime Section and as the International Organized Crime Coordinator. He prosecuted a broad array of criminal violations, including the nation’s largest racketeering prosecution targeting members and associates of Eurasian organized crime; one of the country’s largest bank fraud and identity theft prosecutions, in which more than $8 million was stolen from elderly victims; and a major public corruption matter involving the illegal leaking of sensitive, under-seal information by a federal court clerk who tipped off organized crime figures before law enforcement could arrest them.
For his work as a prosecutor, Estrada received the U.S. Department of Justice’s prestigious Director’s Award for Superior Performance as well as other recognitions.
Estrada graduated with distinction from Stanford Law School and earned his undergraduate degree in history from the University of California, Irvine, where he graduated magna cum laude. Estrada served as a law clerk for U.S. District Judge Robert J. Timlin of the Central District of California and Judge Arthur L. Alarcón of the U.S. Court of Appeals for the Ninth Circuit.
Former Marine Sentenced to 5 Years in Prison for Cyberstalking Young Women in ‘Sextortion’ Campaign While on Active DutyRead the Press Release
LOS ANGELES – A South Bay man has been sentenced to 60 months in prison for cyberstalking multiple young women in a “sextortion” campaign he waged while he was an active-duty member of the United States Marine Corps, the Justice Department announced today.
Johao Miguel Chavarri, 26, a.k.a. “Michael Frito,” of Torrance, was sentenced late Thursday afternoon by United States District Judge Maame Ewusi-Mensah Frimpong, who also ordered him to pay a $15,000 fine.
Chavarri pleaded guilty on May 27 to three counts of cyberstalking.
From May 2019 to February 2021, Chavarri stalked and sent anonymous threatening communications to numerous victims, including the three victims discussed in court documents.
Chavarri, often using the name “Frito,” contacted victims on social media platforms, including Instagram, Snapchat, and Twitter, complimented their appearance and/or their publicly posted photos, and suggested a relationship in which he would pay the victim to send him photos or videos. Some of the victims initially agreed to Chavarri’s requests and sent him nude, sexually explicit, or compromising photos. When victims either refused Chavarri’s initial request for photos, refused to send him additional photos or videos, or otherwise refused to continue to communicate with him online, Chavarri began to harass, threaten, and extort the victims using numerous online accounts.
In most cases, he threatened to publish sexual photos and videos of the victims online or on well-known pornography websites and to distribute the sexual photos or videos to the victims’ boyfriends, friends, families, or employers — people he often specifically identified by name. Chavarri threatened his victims and their friends and family that he would ruin their lives. He knew many of his victims personally.
“Perhaps most troubling is the emotional distress that [Chavarri] intentionally inflicted on his victims,” prosecutors argued in a sentencing memorandum. “He terrified and terrorized them. The young women feared not only for their privacy and their relationships with their friends, family, employers, and community, but also for their physical safety. They suffered, and continue to suffer, significant emotional harm.”
The FBI investigated with this case with assistance from the Naval Criminal Investigative Service.
Assistant United States Attorney Lauren Restrepo of the Cyber and Intellectual Property Crimes Section and Senior Trial Attorney Mona Sedky of the Justice Department’s Computer Crime and Intellectual Property Section prosecuted the case.
Former Marine Sentenced for Cyberstalking Young Women in Sextortion CampaignRead the Press Release
A California man was sentenced yesterday to five years in prison for cyberstalking multiple young women in California in a “sextortion” campaign he waged while he was an active-duty member of the U.S. Marine Corps.
According to court documents, from May 2019 to February 2021, Johao Miguel Chavarri, aka Michael Frito, 26, of Torrance, stalked and sent anonymous threatening communications to numerous victims.
Chavarri, often using the name “Frito,” contacted victims on social media platforms, including Instagram, Snapchat, and Twitter, complimented their appearance and/or their publicly posted photos, and suggested a relationship in which he would pay the victim to send him photos or videos. Some of the victims initially agreed to Chavarri’s requests and sent him nude, sexually explicit, or compromising photos. When victims refused Chavarri’s initial request for photos, refused to send him additional photos or videos, or otherwise refused to continue to communicate with him online, Chavarri began to harass, threaten, and extort the victims using numerous online accounts. In most cases, he threatened to publish sexual photos and videos of the victims online or on well-known pornography websites and/or to distribute the sexual photos or videos to the victims’ boyfriends, friends, families, or employers, who he would often specifically identify by name.
Chavarri was ordered to pay a $15,000 fine and serve three years of supervised release.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Stephanie S. Christensen for the Central District of California; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; and Supervisory Special Agent Adam Smith of the FBI Los Angeles Field Office made the announcement.
The FBI Los Angeles Field Office, Long Beach Resident Agency, investigated the case, with assistance from the Naval Criminal Investigative Service.
Assistant U.S. Attorney Lauren Restrepo for the Central District of California and Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section prosecuted the case.
Los Angeles Man Sentenced to More Than 24 Years in Federal Prison for Producing Sexually Explicit Images of a Teenage Girl He KidnappedRead the Press Release
LOS ANGELES – A man from the Westlake neighborhood of Los Angeles was sentenced today to 292 months in federal prison for producing child pornography of him raping a then 15-year-old girl he had kidnapped from her home in Oregon.
Travis Smith, 28, was sentenced by United States District Judge John A. Kronstadt, who said at today’s hearing that Smith’s “inexcusable” conduct was “beyond comprehension” that it had a “profound effect” on the victim. Smith pleaded guilty on January 20 to one count of production of child pornography.
In early 2020, Smith – then a 26-year-old married father of two living with his estranged wife – impersonated a 16-year-old boy to chat online with the victim about a popular online game. Their messages soon turned sexual and abusive, however, with Smith demanding the victim perform painful sex acts on herself as punishment for behavior such as speaking with boys or not answering him quickly enough.
The victim tried to end her communication with Smith, but he threatened to release to her family and friends the sexually explicit images he had enticed her to produce. In July 2020, several months after he initially contacted the victim, Smith drove from California to Oregon to the victim’s home.
Under threat of shooting the victim and her family, Smith kidnapped the victim. He attempted to hide the victim’s whereabouts by having her destroy her cellphone. On the drive and thereafter, Smith repeatedly raped the victim. Once in Los Angeles, he hid the victim in his Westlake apartment for several days. While there, he filmed himself raping her. After days of captivity, the FBI located and rescued the victim.
The FBI investigated this matter.
Assistant United States Attorney Catharine A. Richmond of the Violent and Organized Crime Section prosecuted this case.
Former Dean of USC’s Social Work School Agrees to Plead Guilty to Bribery for Funneling $100,000 Payment to Secure County ContractRead the Press Release
PLEA AGREEMENTLOS ANGELES – The former dean of the University of Southern California’s school of social work has agreed to plead guilty to a federal charge that she bribed longtime politician Mark Ridley-Thomas by funneling $100,000 he provided from his campaign account through USC to a nonprofit operated by his son to obtain a lucrative county contract, the Justice Department announced today.
Marilyn Louise Flynn, 83, of Los Feliz, agreed to plead guilty to one count of bribery and pay a fine of no less than $100,000. She is expected to plead guilty to the charge in the coming weeks.
Ridley-Thomas, currently a Los Angeles city councilmember who was suspended from office pending his federal criminal trial, has pleaded not guilty to one count of conspiracy, one count of bribery, two counts of honest services mail fraud and 15 counts of honest services wire fraud in connection with a federal indictment stemming from his time as a Los Angeles County supervisor. His trial is scheduled for November 15.
According to her plea agreement, from 1997 to 2018, Flynn was a tenured faculty member at USC and the dean of its social work school. In 2018, Flynn was seeking an amendment to an existing contract between USC’s social work school and the Los Angeles County Department of Mental Health (DMH) related to services provided by USC Telehealth. Telehealth was a clinic in which social work school students provided online mental health and counseling services to patients referred by the county. USC and the social work school received compensation in return for services rendered. According to the indictment, at the time Flynn sought the lucrative county contract amendment, the social work school was facing a multimillion-dollar budget deficit.
In April 2018, Ridley-Thomas, then serving as an elected official on the Los Angeles County Board of Supervisors, understood Flynn wanted to secure an amended Telehealth contract with DMH and the county, the plea agreement states. He also understood that she very much wanted a meeting with a particular high-level county official to move the amended Telehealth contract forward in the county approval process.
At Ridley-Thomas’s request, Flynn agreed to have USC serve as a conduit for a $100,000 payment from his campaign account to the social work school. Per their agreement, Flynn then arranged for a nearly simultaneous $100,000 payment from USC to the United Ways of California for the benefit of the Policy, Research & Practice Initiative (PRPI), a new nonprofit initiative led by Ridley-Thomas’s son, who had recently and abruptly resigned from his elected position in the California State Assembly. According to the indictment, Ridley-Thomas’s son resigned while the subject of an internal sexual harassment investigation and needed funds to support PRPI, which Ridley-Thomas hoped to supply but without any public connection to himself or his campaign account.
To facilitate their scheme, Flynn and Ridley-Thomas concealed from USC that Ridley-Thomas had directed a $100,000 payment to USC with the intent that the funds be used to support USC’s nearly simultaneous $100,000 payment to United Ways and PRPI, the plea agreement states. Had it known this fact, USC would not have approved the $100,000 payment.
To expedite the payment and meet a deadline set by Ridley-Thomas, Flynn also violated USC policy by improperly using a vendor account at USC to process the $100,000 payment. According to the plea agreement, Flynn’s use of this vendor account violated USC policy because, as she knew, United Ways and PRPI were not vendors providing services to USC. But for Flynn’s violation of USC policy, USC would have declined to make the $100,000 payment.
Immediately after Flynn informed Ridley-Thomas that the USC payment to United Ways and PRPI had been “cleared,” the plea agreement states that Ridley-Thomas facilitated a May 10, 2018 meeting between Flynn and the high-level county official to move forward expeditiously on the county’s approval of the amended Telehealth contract.
On May 11, 2018, the day United Ways and PRPI received the $100,000 check from USC, Ridley-Thomas emailed Flynn to discuss county business – in his words, to talk about “master contract stuff” and “somehow use yesterday’s ‘discussion’ to advance it [winking face emoji].”
Ridley-Thomas later voted in favor of Flynn’s desired amendment to the Telehealth contract with DMH, according to the indictment.
Upon pleading guilty, Flynn will face a statutory maximum sentence of 10 years in federal prison. Prosecutors have agreed to recommend she satisfy her custodial term by way of home confinement and also have agreed to seek a fine of no more than $150,000 against Flynn.
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 is investigating this matter.
Assistant United States Attorneys Lindsey Greer Dotson, Ruth C. Pinkel, and Thomas F. Rybarczyk of the Public Corruption and Civil Rights Section are prosecuting this case.
Victorville Woman Arrested on Indictment Alleging She Used Prison Inmates’ Names to Fraudulently Obtain over $500,000 in COVID ReliefRead the Press Release
RIVERSIDE, California – A San Bernardino County woman was arrested today on a seven-count federal grand jury indictment alleging she fraudulently obtained 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, 32, a.k.a. “Cynthia Roberts,” of Victorville, was taken into custody and is expected to appear for her arraignment tomorrow in United States District Court in Riverside.
Hernandez is charged with four counts of mail fraud, one count of access device fraud in excess of $1,000, and two counts of aggravated identity theft.
According to the indictment returned on September 9, from June 2020 to August 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. EDD manages California’s unemployment insurance benefit program.
Hernandez allegedly 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 and were mailed to Hernandez’s mailing address, according to the indictment. Once Hernandez allegedly received the debit cards, she used them to withdraw cash at ATMs and banking centers.
In total, Hernandez allegedly caused at least 29 fraudulent applications to be filed with EDD, resulting in losses to EDD and the United States Treasury of approximately $515,138.
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.
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 – Special Response Team.
Assistant United States Attorney Solomon Kim of the Terrorism and Export Crimes Section is 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.
Long Beach Dockworkers Charged in Conspiracy to Fraudulently Bill Union's Health Plan for Sexual ServicesRead the Press Release
LOS ANGELES – Federal prosecutors today filed criminal charges against nine defendants – seven of them dockworkers at the Port of Long Beach – who allowed more than $2.1 million in fraudulent claims to be submitted to their labor union’s health insurance plan for sexual services or for physical therapy that never was provided.
The conspiracy’s ringleader, Sara Victoria, 46, of San Pedro, is charged in an information filed today with one count of conspiracy to commit health care fraud and one count of aggravated identity theft.
The plea agreements for Victoria and the other eight defendants were filed today in United States District Court, and they are expected to make their initial court appearances in the coming weeks.
According to her plea agreement, from January 2017 to August 2021, Victoria owned and operated three business: Back to Life Wellness Center LLC and The Chiroman Wellness Center – both based in San Pedro – and the Wilmington-based Waterfront Wellness Center Inc. These companies offered patients chiropractic services, acupuncture treatments, and also 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 not actually rendered, including chiropractic and physical therapy, using their names or the names of their family members, such as their spouses and children. 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 conspiracy.
In total, Victoria submitted approximately $2,110,920 in claims to the ILWU-PMA plan, for which the plan paid approximately $551,810.
After Victoria enters a plea of guilty, she will face a statutory maximum sentence of 12 years in federal prison.
Also charged this week was Cameron Rahm, 39, of Pico Rivera, a Long Beach longshoreman and ILWU member whom a federal grand jury charged in an indictment with one count of conspiracy to commit health care fraud, two counts of health care fraud, and one count of making false statements to federal investigators.
Rahm allegedly was one of the customers of Victoria’s businesses and agreed to have her submit to the ILWU-PMA plan fraudulent claims for services not rendered or for sexual services. He also allegedly lied to FBI agents investigating this case when he denied allowing anyone to bill his health insurer for sexual services. He is expected to appear for this arraignment this afternoon in United States District Court in Los Angeles.
If convicted of all charges, Rahm would face a statutory maximum sentence of 10 years in federal prison for the conspiracy and health care fraud counts, and five years in federal prison for the false statements count.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The FBI and the United States Department of Labor – Employee Benefits Security Administration investigated this matter.
Assistant United States Attorney Jason C. Pang of the International Narcotics, Money Laundering, and Racketeering Section is prosecuting this case.
Justice Department Announces COVID-19 Fraud Strike Force TeamsRead the Press Release
Today the Justice Department announced the establishment of three Strike Force teams created to enhance the Department’s existing efforts to combat and prevent COVID-19 related fraud.
“These Strike Force teams will build on the Department’s historic enforcement efforts to deter, detect, and disrupt pandemic fraud wherever it occurs,” said Attorney General Merrick B. Garland. “Since the start of this pandemic, the Justice Department has seized over $1.2 billion in relief funds that criminals were attempting to steal, and charged over 1,500 defendants with crimes in federal districts across the country, but our work is far from over. The Department will continue to work relentlessly to combat pandemic fraud and hold accountable those who perpetrate it.”
The Strike Force teams will operate out of U.S. Attorney’s Offices in the Southern District of Florida, the District of Maryland, and a joint effort between the Central and Eastern Districts of California.
“The Strike Force teams are the latest example of the Justice Department’s commitment to fight pandemic fraud,” said Associate Deputy Attorney General Kevin Chambers, who serves as the Department’s Director for COVID-19 Fraud Enforcement. “The work being done by our prosecutors, trial attorneys, agents and partners on our COVID-19 Fraud Enforcement Task Force has been extraordinary. We’re going a step further today with the announcement of Strike Force teams to support, enhance, and continue the great work being done across the Department.”
As Director for COVID-19 Fraud Enforcement, Chambers leads the Department’s criminal and civil enforcement efforts to combat COVID-19 related fraud. To date, those efforts have resulted in criminal charges against over 1,500 defendants with alleged losses exceeding $1.1 billion; the seizure of over $1.2 billion in relief funds; and civil investigations into more than 1,800 individuals and entities for alleged misconduct in connection with pandemic relief loans totaling more than $6 billion.
“I am excited to work alongside these dynamic interagency teams,” said Assistant U.S. Attorney Michael C. Galdo, the Justice Department’s Deputy Director for COVID-19 Fraud Enforcement, who will lead the Strike Force teams. “Assembling the fraud, cybercrime, and money laundering expertise of all our agency partners in these prosecutor-driven Strike Force teams is the best way to bring these fraudsters to justice.”
The Strike Force teams are comprised of dedicated prosecutors and agents from the Department of Labor Office of Inspector General, the Small Business Administration Office of Inspector General, the Department of Homeland Security Office of Inspector General, the FBI, the U.S. Secret Service, Homeland Security Investigations, Internal Revenue Service Criminal Investigations, and the U.S. Postal Inspection Service, with assistance from the Pandemic Response Accountability Committee and the Special Inspector General for Pandemic Recovery.
“Criminals took advantage of the worst pandemic in a century to line their pockets with public money intended for struggling businesses and workers forced to sit idle,” said Acting U.S. Attorney Stephanie S. Christensen of the Central District of California. “Our office’s participation in the COVID-19 Strike Force reflects our determination to maximize our resources to root out and punish wrongdoers who used a national emergency to steal from American taxpayers.”
“Cheaters have been living large on funds intended to keep families and local business afloat during a national crisis,” said U.S. Attorney Erek L. Barron of the District of Maryland. “Our office is proud to participate in the COVID-19 Strike Force. We’ll continue prosecuting large-scale COVID-19 fraud while also integrating this priority into our violent crime strategy.”
“The U.S. Attorney’s Office for the Eastern District of California is proud to be included as a part of the COVID-19 Fraud Enforcement Strike Force,” said U.S. Attorney Phillip A. Talbert. “We have had early successes pursuing COVID-19 fraud both civilly and criminally. For example, our district obtained the first civil settlement in the nation for fraud related to the CARES Act’s Paycheck Protection Program, and we have brought a number of criminal prosecutions against defendants who obtained through fraud relief monies intended to help those in need. We remain committed to leading investigations and vigorously prosecuting those who commit COVID-19 fraud.”
“Over the years, the South Florida U.S. Attorney’s Office and its law enforcement partners have developed robust domestic and international fraud and money laundering practices,” said Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida. “Our experience with these data-driven financial prosecutions allowed us to launch an early and aggressive attack on COVID-19 relief fraud in our district, holding accountable those who tried to capitalize on an unprecedented crisis. We are proud to have been selected to lead one of three COVID-19 Fraud Strike Force teams and look forward to continuing to advance this important Department of Justice effort.”
Since the establishment of the COVID-19 Fraud Task Force by the Attorney General in May 2021, the Department has worked closely with our law enforcement partners to analyze the extraordinary amount of data from our state workforce agency partners and the Small Business Administration. That data is the key to identifying and prosecuting the organized criminal groups and networks of overseas fraudsters who stole pandemic relief funds. The Strike Force teams are designed to accelerate the process of turning data analytics into criminal investigations, which will enhance our prosecutions. This prosecutor-led approach has proven successful in other organized crime arenas; it will be key to dismantling the networks that stole pandemic relief funds.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts.
The Justice Department’s efforts to combat COVID-19 related fraud schemes have proceeded on numerous fronts, including cases and investigations involving the Paycheck Protection Program (PPP), Economic Injury Disaster Loan (EIDL) program, Unemployment Insurance (UI) programs, and COVID-19 health care fraud enforcement.
For further information on the Criminal Division’s enforcement efforts on PPP fraud, including court documents from significant cases, visit the following website: https://www.justice.gov/criminal-fraud/ppp-fraud. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. For further information on the Civil Division’s enforcement efforts, visit the following website: https://www.justice.gov/civil.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Santa Ana Man Sentenced to 5 Years in Prison for Deliberately Aiming Laser Pointer Beam at In-Flight O.C. Sheriff’s Department HelicopterRead the Press Release
LOS ANGELES – An Orange County man was sentenced today to 60 months in federal prison for intentionally aiming a laser pointer’s beam at an in-flight Orange County Sheriff’s Department helicopter, an act that blinded the crew for several seconds.
Eric Jayson Suarez, 48, of Santa Ana, was sentenced by United States District Judge Stephen V. Wilson. Suarez pleaded guilty in November 2021 to one count of aiming a laser pointer at an aircraft.
On the evening of April 13, 2020, an Orange County Sheriff’s Department helicopter was flying above the intersection of Bristol and First streets in Santa Ana. Suarez, sitting alone in his car that was parked approximately 20 blocks away, saw the helicopter in flight, intentionally pointed a high-intensity green laser beam at the aircraft and struck the cockpit at least four times with his laser pointer’s beam.
Suarez’s laser beam blinded the helicopter’s pilot and tactical flight officer for several seconds, impacting their ability to see the ground and to detect hazards and jeopardizing the safety of the flight crew, the helicopter, other nearby aircraft, and people on the ground.
Law enforcement determined Suarez’s location and followed him to a retail shopping center in Santa Ana. Shortly before officers stopped Suarez’s car in a parking lot, Suarez threw his laser pointer out the car’s window. Law enforcement later recovered the laser pointer, approximately 50 feet from where they stopped Suarez’s car.
In February 2015, Suarez was convicted in Orange County Superior Court of unlawful discharge of a laser at an occupied aircraft. In March 2020, law enforcement officers responded to a report of a green laser beam that shone from Suarez’s backyard and struck a helicopter approximately eight times. That night, an officer warned Suarez that it would be “disastrous” because it could blind the pilot and cause the aircraft to crash, according to court documents.
The FBI, the Orange County Sheriff’s Department, and the Santa Ana Police Department investigated this matter.
Assistant United States Attorney Varun Behl of the International Narcotics, Money Laundering, and Racketeering Section prosecuted this case.
Beverly Hills Man Sentenced to 5 Years in Federal Prison for Attempting to Hire Hitman to Kill Woman He Briefly DatedRead the Press Release
LOS ANGELES – A Beverly Hills man was sentenced today to 60 months in federal prison for attempting to hire a hitman to kill a woman he briefly dated and who repeatedly tried to break off their relationship.
Scott Quinn Berkett, 25, was sentenced by United States District Judge Mark C. Scarsi. Berkett pleaded guilty on June 13 to one count of use of interstate facilities to commit murder-for-hire. He has been in federal custody since his arrest in this case in May 2021.
According to the affidavit in support of a criminal complaint in this case, Berkett met the victim online in 2020, and the woman flew to Los Angeles to meet Berkett in late October 2020. The victim, who described Berkett’s behavior as “sexually aggressive,” tried on several occasions to break off the relationship following the October trip, the affidavit states.
In April 2021, a family member, who had learned that Berkett continued to contact the victim, called and sent text messages to Berkett’s father’s phone, and, on April 20, Berkett appeared to have responded saying, “Consider this matter closed.”
Soon afterward in April 2021, he solicited and paid for murder-for-hire services via a website on the darknet for a group that purportedly offered such services. Berkett provided the darknet group with specific directions and details about his victim. As payment for the victim’s murder, Berkett sent the darknet group bitcoin payments totaling approximately $13,000.
In May 2021, an undercover law enforcement officer, posing as a hitman from the darknet group, contacted Berkett. The undercover officer sent Berkett pictures of the victim. Berkett confirmed that the pictures showed his intended victim and that he had made bitcoin payments to obtain her murder. Berkett further requested proof of her murder and made an additional $1,000 payment to the undercover officer.
“[Berkett’s] crime was not a momentary lapse in judgment, but a premeditated plot to kill the victim because she rejected his advances,” prosecutors argued in a sentencing memorandum. “While attempting to take a life is atrocious enough, [Berkett’s] chosen method of carrying out the crime – using the Dark Web to hire a hitman and cryptocurrency – speak to his sophistication, meticulous planning, and attempts to anonymize his illegal conduct in the commission of this offense, and are aggravating in nature.”
The FBI investigated this matter.
Assistant United States Attorney Kathy Yu of the Violent and Organized Crime Section prosecuted this case.
Ohio Man Sentenced to over 3 Years in Federal Prison for Long-Running Harassment Campaign Against TV Actress and Her DaughterRead the Press Release
LOS ANGELES – An Ohio man was sentenced today to 40 months in federal prison for his 12-year campaign of harassment – via letters and phone calls – against a television actress and her daughter in which he threatened to torture, rape and kill them.
James David Rogers, 58, of Heath, Ohio, was sentenced by United States District Judge John A. Kronstadt.
Rogers pleaded guilty on April 28 to two counts of mailing threatening communications, one count of threats by interstate communications, and two counts of stalking.
According to court documents, from March 2007 until his arrest in November 2019, Rogers stalked, threatened, and harassed Eva LaRue, an actress whose credits include “CSI: Miami” and “All My Children,” and her daughter – who was 5 years old when the threats against her began. For example, in February 2008, he sent LaRue a letter in which he vowed, “I am going to…stalk you until the day you die.” In other letters, Rogers repeatedly threatened to rape LaRue and her daughter.
From March 2007 to June 2015, Rogers mailed approximately 37 handwritten and typed letters in which he threatened to rape, kill, and otherwise injure LaRue and her daughter. In June 2015, Rogers sent a letter to LaRue’s daughter which stated, in part, “I am the man who has been stalking for the last 7 years. Now I have my eye on you too.”
Rogers signed each letter using the name “Freddie Krueger,” the fictional serial killer from the horror film series “A Nightmare on Elm Street.”
In October and November 2019, Rogers called the school where LaRue’s daughter attended, spoke with a school employee, claimed to be her father, and asked if she was present. In November 2019, he again called the girl’s school and left a voicemail in which he identified himself as “Freddie Krueger” and threatened to “rape her, molest her, and kill her.”
“[Rogers’] threats impacted the daily lives of his victims,” prosecutors wrote in a sentencing memorandum. “[LaRue and her daughter] moved numerous times in hopes that [Rogers] would not find them again. They drove circuitous routes home, slept with weapons nearby and had discussions about how to seek help quickly if [Rogers] found them and tried to harm them. They tried to anonymize their addresses as much as possible by avoiding receiving mail and packages at their actual address. To no avail. Each time they moved, [Rogers’] letters – and the victims’ terror – would always follow. And [Rogers] knew it.”
The FBI investigated this matter.
Assistant United States Attorneys Sara Vargas and Amy Pomerantz of the Violent and Organized Crime Section prosecuted this case.
Former Stockbroker Sentenced to 6½ Years in Prison for $3.2 Million Investment Fraud, Cheating on Taxes and Grandparent ScamRead the Press Release
SANTA ANA, California – A former licensed stockbroker was sentenced today to 78 months in federal prison for committing several felonies, including running a securities fraud scheme in which he targeted low-income Hispanic victims to obtain more than $3.2 million via false promises of high returns from construction loans.
Robert Louis Cirillo, 61, of Chino Hills, was sentenced by United States District Judge David O. Carter, who also ordered him to pay $3,948,835 in restitution.
Cirillo pleaded guilty on June 28 to one count of securities fraud, one count of filing a false tax return, and one count of conspiracy to commit wire fraud.
From 2014 to 2021, Cirillo deceived more than 100 victims by lying to them that he would be investing their funds in short-term construction loans that would pay large return rates that ranged from 15% to 30% for a period of up to 90 days. As part of the scheme, Cirillo showed actual and prospective victim-investors fabricated bank statements that purported to show the investments’ growth.
In fact, Cirillo never invested the victims’ money and instead used it for his own personal expenses, including credit card payments, a trip to Las Vegas, and two automobiles – a Jeep and an Alfa Romeo.
Cirillo targeted members of the Hispanic community, many of whom were of limited means, for his fraudulent scheme. One victim invested her life savings of $20,000 in Cirillo’s scheme.
Cirillo admitted in his plea agreement to threatening his victims once they began to realize that he had defrauded them. For example, in July 2019, Cirillo said that if one of the victims tried to sue him, that victim could go “for the [expletive] hole in the [expletive] desert. Tell him to test me,” according to court documents.
In a separate scheme that occurred in the spring of 2021, Cirillo participated in a “grandparent scam” in which a senior citizen was tricked into believing that his grandson had been arrested for possession of illegal narcotics, which was false. Cirillo’s co-conspirators convinced the 82-year-old victim to send $400,000 for his grandson’s “bail” to a bank account that Cirillo had opened and controlled. Cirillo used some of that victim’s money for his own personal benefit.
Cirillo also filed false income tax returns for the years 2015, 2016 and 2017 by failing to report a total of more than $3 million in income. For example, on his 2017 federal income tax return, Cirillo reported a total income of $30,985, which failed to include more than $1.9 million in income he received from his investment fraud scheme.
Cirillo’s investment fraud resulted in a total loss of $3,237,262; his conspiracy to defraud the senior citizen resulted a total loss of $400,000; and the total tax loss incurred was $675,898.
In a sentencing memorandum, prosecutors argued, “[Cirillo’s] behavior was despicable, particularly because he was engaging in an affinity crime by exploiting members of the Hispanic community, most of whom were of modest means, and some of whom lost their life savings to [him].”
The FBI and IRS Criminal Investigation investigated this matter.
Assistant United States Attorney Charles E. Pell of the Santa Ana Branch Office prosecuted this case.
Canadian Man Charged in Drug Trafficking Scheme that Allegedly Shipped Millions of Dollars of Meth and Cocaine in Big RigsRead the Press Release
LOS ANGELES – An investigation into an international drug trafficking organization has resulted in the arrest of a Canadian man who allegedly orchestrated the shipment of narcotics from the Los Angeles area to Canada and who is directly linked in court papers to the seizure of more than 1,000 pounds of methamphetamine and 333 kilograms of cocaine, the Justice Department announced today.
Sam Nang Bou, 40, of Edmonton, Canada, was arrested Thursday night by the FBI. Bou made his initial court appearance Friday afternoon and was ordered held without bond.
A criminal complaint filed Friday in federal court alleges that, over the past year, Bou travelled to Southern California to personally handle the delivery of large shipments of drugs to long-haul semi-truck drivers.
The criminal complaint specifically charges Bou with the distribution of cocaine in relation to a shipment of 105 kilograms of cocaine that was delivered to a semi-truck in Hesperia on June 28 and later seized by law enforcement in Arizona. That cocaine trafficking offense carries a mandatory minimum sentence of 10 years and a maximum sentence of life in federal prison.
The affidavit in support of the complaint outlines a series of deliveries and subsequent seizures, most of which begin with Bou leaving one of two “stash houses” in Alhambra. Bou drove to various locations in Southern California, where he delivered boxes and duffel bags filled with narcotics that were loaded into the passenger compartments of semi-trucks, according to the affidavit.
The complaint alleges that Bou made a total of eight deliveries of narcotics to semi-truck drivers, including a shipment of 500 pounds of methamphetamine that was seized on August 23. Additionally, in conjunction with Bou’s arrest, law enforcement conducted several searches and recovered 48 kilograms of suspected cocaine inside two sophisticated hidden compartments in a minivan that Bou had recently locked up in a storage facility in Pasadena.
As a result of the seizures over the past year – a total of 1,008 pounds of methamphetamine and 333 kilograms of cocaine – the affidavit estimates that “Bou has distributed drugs with a value of at least $9.8 million in Los Angeles, and likely several times that amount if exported and resold in Canada.”
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Bou is scheduled to be arraigned on September 22.
The FBI and the Los Angeles HIDTA Task Force are conducting the investigation into Bou and his alleged associates. The Royal Canadian Mounted Police, the Los Angeles Violent Transnational Organized Crime Task Force, the Las Vegas Metropolitan Police Department, the California Highway Patrol, the Barstow Police Department, the Mohave Area General Narcotics Enforcement Team, and the Kern County Sheriff's Office have provided substantial assistance in this matter.
The case against Bou is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks
Assistant United States Attorney Brittney M. Harris of the International Narcotics, Money Laundering, and Racketeering Section is prosecuting this case.
Surgeon Pleads Guilty to Federal Charge for Accepting $3.3 Million in Illicit Payments to Perform Spinal Surgeries at Corrupt HospitalRead the Press Release
LOS ANGELES – A neurosurgeon pleaded guilty today to a federal criminal charge for accepting approximately $3.3 million in bribes for performing spinal surgeries at a now-defunct Long Beach hospital whose owner later was imprisoned for committing a massive workers’ compensation system scam.
Lokesh Tantuwaya, 55, of San Diego, pleaded guilty to one count of conspiracy to commit honest services fraud and to violate the federal Anti-Kickback statute. He has been in federal custody since May 2021 after he was found to have violated the terms of his pretrial release.
According to his plea agreement and statements at today’s change-of-plea hearing, from 2010 to 2013, Tantuwaya accepted money from Michael Drobot, who owned Pacific Hospital in Long Beach, in exchange for Tantuwaya performing spinal surgeries at that hospital. The bribe amount varied depending on the type of spinal surgery.
Pacific Hospital specialized in surgeries, especially spinal and orthopedic procedures. Drobot conspired with doctors, chiropractors and marketers to pay kickbacks and bribes in return for the referral of thousands of patients to Pacific Hospital for spinal surgeries and other medical services paid for primarily through the California workers’ compensation system. During its final five years, the scheme resulted in the submission of more than $500 million in medical bills for spine surgeries involving kickbacks.
Tantuwaya entered into contracts with Drobot and Drobot-owned companies. Tantuwaya admitted in his plea agreement that he knew or deliberately was ignorant that the payments were being given to him in exchange for bringing his patient surgeries to Pacific Hospital.
In furtherance of the scheme, Tantuwaya met with Drobot and Drobot’s employees. Tantuwaya further admitted to depositing bribe checks into his bank accounts.
Tantuwaya admitted that he knew the receipt of money in exchange for the referral of medical service was illegal and that he owed a fiduciary duty to his patients to not accept money in exchange for taking their surgeries to Pacific Hospital.
In total, Tantuwaya received approximately $3.3 million in illegal payments.
In April 2013, law enforcement searched Pacific Hospital, which was sold later that year, bringing the kickback scheme to an end.
To date, 23 defendants have been convicted for participating in the kickback scheme.
United States District Judge Josephine L. Staton scheduled a December 9 sentencing hearing, at which time Tantuwaya will face a statutory maximum sentence of five years in federal prison.
The FBI, IRS Criminal Investigation, United States Postal Service Office of Inspector General, and the California Department of Insurance investigated this matter.
Assistant United States Attorneys Joseph T. McNally and Billy Joe McLain of the Violent and Organized Crime Section are prosecuting this case.
South L.A. Man Arrested on Indictment Alleging He Recruited Teenage Girl for Commercial Sex Work Advertised on InternetRead the Press Release
LOS ANGELES – A South Los Angeles man was arrested today on a five-count federal indictment alleging he recruited a 15-year-old girl for whom he acted as a “pimp” and advertised on the internet for commercial sex work.
Donavin Dwayne Bradford, 31, was arraigned this afternoon in United States District Court in downtown Los Angeles. He is charged with one count of conspiracy to commit sex trafficking of a minor, one count of sex trafficking of a minor, two counts of sexual exploitation of a child for the purpose of producing a sexually explicit visual depiction, and one count of possession of child pornography.
Bradford pleaded not guilty, was ordered jailed without bond, and an October 25 trial date was scheduled.
According to the indictment that a grand jury returned on August 11, from the summer of 2021 to February 2022, Bradford conspired with Layla Kalani Valdivia, 23, of Ventura, to cause the minor victim to be used for commercial sex acts. Bradford allegedly recruited the victim to work for him as a commercial sex worker. As the victim’s “pimp,” Bradford expected the girl to earn him $1,000 per night and, in exchange, he provided her with clothes and a place to stay, the indictment alleges.
Bradford and Valdivia allegedly advertised the girl for commercial sex work on various websites, and customers who responded to the ads were directed to various hotels and motels where they engaged in commercial sex acts with the victim. Sometimes the minor victim would be required to perform sex acts with Valdivia and a sex client together. Customers allegedly paid Bradford for dates with the victim or she would be required to give Bradford or Valdivia some of her earnings.
The indictment alleges that Bradford assaulted the victim when she tried to stop working for him on two separate occasions. Bradford allegedly also filmed himself engaging in sex acts with the victim.
Valdivia, who also is in federal custody, pleaded not guilty on August 22 to one count of conspiracy and one count of sex trafficking of a minor. An October 18 trial date has been scheduled for her.
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.
If convicted of all charges, Bradford would face a mandatory minimum sentence of 15 years in federal prison, Valdivia would face a mandatory minimum sentence of 10 years in federal prison, and both defendants would face statutory maximum sentences of life imprisonment.
“Operation Cross Country”, an FBI-led nationwide effort which ran from August 4 to August 14, focused on identifying and locating victims of sex trafficking and investigating and arresting individuals and criminal enterprises involved in both child sex trafficking and human trafficking. With the support of local partners, FBI Los Angeles identified and located nine potential human trafficking victims, including five adolescents.
The FBI Los Angeles Field Office and the FBI Los Angeles Child Exploitation and Human Trafficking Task Force coordinated with multiple law enforcement partners and thanks them for their participation and assistance, including: the Los Angeles Police Department; the Inglewood Police Department; the Pomona Police Department; the Los Angeles County Sheriff’s Department; the Ventura County Sheriff’s Office; the Santa Maria Police Department; and the Los Angeles County Department of Children and Family Services.
Assistant United States Attorney Chelsea Norell of the Violent and Organized Crime Section is prosecuting this case.
Learn more about Operation Cross Country XII here.
Chatsworth Man Pleads Guilty to Stalking Charges for Sending Two Sisters Death Threats and Harassment Campaign Against TeenagerRead the Press Release
LOS ANGELES – A San Fernando Valley man pleaded guilty today to federal criminal charges, including for cyberstalking two sisters by sending them text messages that threatened them with rape and murder.
Alex Scott Roberts, 27, of Chatsworth, pleaded guilty to one count of stalking and, in a separate case brought by the U.S. Attorney’s Office in Macon, Georgia, but transferred to Los Angeles, he also pleaded guilty to one count of cyberstalking.
According to his plea agreement, in July and August of 2020, Roberts used text messages and internet communications to place the two victims “in reasonable fear of death and serious bodily injury,” and that he intended to cause “substantial emotional distress.”
After being told by Victim 1 and her family that the woman did not want to communicate with Roberts, he created a listing on Craigslist that offered a room for rent at Victim 1’s home and invited prospective renters to “Stop by anytime.”
Roberts later sent anonymous text messages to a friend of Victim 1 that demanded Victim 1’s phone number, threatened to publish nude photographs of Victim 1, and threatened to send someone to rape Victim 1.
On August 12, 2020, Roberts sent a threatening message to Victim 1’s sister, which read, in part, “think I’m joking watch u will see. but then again u won’t be alive to see. I have a sniper at the window shall I shoot…respond or I shoot.”
In a separate criminal case first brought in the Middle District of Georgia, Roberts admitted in his plea agreement that in June 2020 he sent a series of threatening and harassing messages to a 15-year-old girl, Minor 1.
In the messages, Roberts claimed to possess nude images of Minor 1 and threatened to send the images to her parents as “payback” if she did not send him additional nude images. In response to Roberts’ threats sent via text message and Instagram, Minor 1 sent Roberts “selfie” photographs of herself.
Roberts responded by continuing to send Minor 1 harassing messages, including several messages containing edited versions of the “selfie” photographs Minor 1 had sent to him in response to his threats.
United States District Judge André Birotte Jr. scheduled a December 16 sentencing hearing, at which time Roberts will face a statutory maximum sentence of five years in federal prison for each count.
The FBI and the Georgia Bureau of Investigation investigated these matters.
Assistant United States Attorney Lauren Restrepo of the Cyber and Intellectual Property Crimes Section is prosecuting these cases in the Central District of California. Assistant United States Attorney C. Shanelle Booker originally prosecuted the criminal case first brought in the Middle District of Georgia and continues to provide substantial assistance.
San Bernardino County Man Sentenced to 14 Years in Federal Prison for Multimillion-Dollar Investment Fraud and Cheating on His TaxesRead the Press Release
LOS ANGELES – A Highland man who used his work history as a San Bernardino County sheriff’s deputy to gain investors’ trust and later invest millions of dollars with him, only to use their money to fund his extravagant lifestyle, was sentenced today to 168 months in federal prison.
Christopher Lloyd Burnell, 51, was sentenced by United States District Judge Michael W. Fitzgerald, who also ordered him to pay $7,592,491 in restitution. At today’s hearing, Judge Fitzgerald described Burnell as “one of the most evil people that I have ever dealt with in the law” and ordered him immediately remanded into custody.
Burnell pleaded guilty on May 10 to 11 counts of wire fraud and two counts of filing a false tax return.
Burnell falsely claimed to have accumulated tens of millions of dollars from lawsuits he purportedly won against the San Bernardino County Sheriff’s Department and Kaiser Permanente; from selling a patent for an air-cooled, bullet-resistant vest to Oakley Inc.; and through investments in small businesses and money-lending opportunities. Burnell left the San Bernardino County Sheriff’s Department in May 2008. The scheme began no later than November 2010 and continued until September 2017.
After deceiving victims into believing he was a wealthy businessman, Burnell then induced victims to invest up to hundreds of thousands of dollars at a time with him by offering exclusive investment opportunities that promised rates of returns as high as 100% to be repaid in a few weeks. In some instances, Burnell asked the victim for an initial trial investment with him, during which he would fulfill his promised returns – and gain the victim’s trust – only to ask for a larger amount from them.
“But these investment opportunities did not actually exist,” prosecutors argued in a sentencing memorandum. “Rather, [Burnell] would spend the money on maintaining a life of luxury for himself and his Hooters calendar model girlfriends, gambling, and private jets.”
Burnell spent victims’ money on gambling and luxury items, including losing more than $2 million in gambling at the San Manuel Casino in Highland, $500,000 in private jet trips, $70,000 on Louis Vuitton merchandise, and $175,000 on luxury cars and an apartment lease for his then-girlfriends. Burnell continued this investment fraud scheme for years until he could not identify new victims to defraud and the money from his victims ran out.
As victims began to raise concerns to him about a lack of repayment and defaults, Burnell claimed that his money had been tied up in a trust fund and his remaining assets had been seized by federal authorities. He then cheated some of the victims out of additional funds by falsely claiming he needed loans to pay for his then-wife’s cancer treatment, a child custody dispute with his father-in-law, and other personal expenses.
To alleviate victims’ concerns, Burnell showed many victims a fabricated Wells Fargo bank statement that said he had more than $150 million in his account that he would use to pay back victims once his funds were no longer tied up. In truth, Burnell had less than $6,500 in that account.
Burnell’s victims lost a total of $7,592,491, which included their retirement and other savings and investment funds. According to court documents, some victims became depressed and suicidal, others lost their businesses, some were forced to sell their family homes and move into smaller residences, some had to tell their children they could no longer pay for their college education, and some suffered marital problems and got divorced. Some victims had their retirement plans shattered.
“Simply put, no words can explain the level of emotional and physical havoc [Burnell] wreaked on [his] victims’ lives,” prosecutors wrote in a sentencing memorandum.
Burnell did not report any of the money he received from victims in 2011 or 2012 on his personal income tax returns that he filed jointly with his then-wife. Instead, Burnell only reported income from gambling winnings in 2011 and 2012 – estimated to be more than $1 million – all of which was purportedly offset by gambling losses.
IRS Criminal Investigation and the United States Secret Service investigated this matter.
Assistant United States Attorney Robert S. Trisotto of the Riverside Branch Office prosecuted this case.
Sherman Oaks Man Sentenced to 20 Years in Federal Prison for Distributing Fentanyl that Resulted in the Deaths of Two PeopleRead the Press Release
LOS ANGELES – A San Fernando Valley man was sentenced today to 240 months in federal prison for distributing the powerful synthetic opioid fentanyl that resulted in the overdose deaths of two people in July 2018.
Trent Michael Tomasovich, 31, of Sherman Oaks, was sentenced by United States District Judge John F. Walter.
Tomasovich pleaded guilty in September 2019 to one count of distribution of fentanyl resulting in death.
According to court documents, on July 13, 2018, Tomasovich sold fentanyl to a 24-year-old woman who took the drug at a Woodland Hills apartment and died during the early morning hours the following day. The victim was visiting a friend, who found the woman unresponsive and then summoned paramedics.
Several hours later, the boyfriend of the woman who lived in the Woodland Hills apartment found the narcotics that the deceased woman had purchased. Ignoring his girlfriend’s request to dispose of the drugs, the 38-year-old man consumed the fentanyl and suffered a fatal overdose.
In his plea agreement, Tomasovich admitted that but for the use of the fentanyl that he distributed, the two victims would have lived.
“In this case, [Tomasovich’s] conduct led to two peoples’ deaths and caused permanent, irreparable damage to the loved ones they left behind,” prosecutors argued in a sentencing memorandum.
The investigation into Tomasovich was conducted by the HIDTA Fusion Task Force, which is part of the High Intensity Drug Trafficking Area (HIDTA) task force and operates under the direction of the Drug Enforcement Administration. The Los Angeles Police Department (Van Nuys Homicide), the Glendale Police Department and the Ventura County Sheriff’s Office provided substantial assistance in this matter.
Assistant United States Attorneys A. Carley Palmer of the General Crimes Section and Elia Herrera of the International Narcotics, Money Laundering, and Racketeering Section prosecuted this case.
New Jersey Man Sentenced to 3 Years in Prison for Fraudulently Obtaining and Selling Three Tom Brady Super Bowl RingsRead the Press Release
SANTA ANA, California – A New Jersey man was sentenced today to 36 months in federal prison for posing as a former player for the New England Patriots, which allowed him to purchase family versions of the team’s 2016 Super Bowl championship ring – supposedly as gifts to relatives of quarterback Tom Brady – one of which was sold at auction for more than $337,000.
Scott V. Spina Jr., 25, of Roseland, New Jersey, was sentenced by United States District Judge David O. Carter, who also ordered Spina to pay $63,000 in restitution to the former Patriots player who sold him his Super Bowl ring and other memorabilia.
On February 1, Spina pleaded guilty to one count of mail fraud, three counts of wire fraud and one count of aggravated identity theft.
The scheme began in 2017, when Spina purchased a Super Bowl LI ring awarded to a Patriots player who subsequently left the team. Spina, who bilked the former player by paying for the ring with at least one bad check, sold the ring soon after for $63,000 to a well-known broker of championship rings.
When Spina obtained the player ring, he also received the information that allowed the former player to purchase Super Bowl rings for family and friends that are slightly smaller than the player rings.
“Spina then called the Ring Company, fraudulently identified himself as [the former player], and started ordering three family and friend Super Bowl LI rings with the name ‘Brady’ engraved on each one, which he falsely represented were gifts for the baby of quarterback Tom Brady,” according to court documents. “The rings were at no time authorized by Tom Brady. Defendant Spina intended to obtain the three rings by fraud and to sell them at a substantial profit.”
Spina entered into an agreement with the Orange County man who purchased the player’s Super Bowl ring to sell him the three family rings that Spina now claimed Brady had given to his nephews. After agreeing to buy the three rings for $81,500 – nearly three times what Spina paid for the rings – the buyer started to believe that Brady did not have nephews, and he tried to withdraw from the deal.
The same day that the buyer tried to back out, and the same day that Spina received the rings in November 2017, Spina immediately sold them to an auction house for $100,000. During an auction in February 2018, one of the family rings was sold for $337,219.
Spina admitted in his plea agreement that he defrauded the Orange County ring broker when he falsely claimed that the rings “were ordered for Tom Brady directly from [the Ring Company] for select family members.” Spina also admitted that he defrauded this victim in relation to three wire transfers for the deposit on the family rings. Spina further admitted he committed identity theft when he posed as the former Patriot to purchase the rings.
The FBI’s Art Crime Team investigated this matter.
Assistant United States Attorney Erik M. Silber of the Environmental and Community Safety Crimes Section prosecuted this case.
Hacienda Heights Man Sentenced to 18 Months in Federal Prison for Stealing $1.3 Million from Amazon Through Refund ScamRead the Press Release
LOS ANGELES – A third-party seller on Amazon.com was sentenced today to 18 months in federal prison for gaming the online retailer’s payment system in a scheme that defrauded the company out of more than $1.3 million.
Ting Hong Yeung, 40, of Hacienda Heights, was sentenced by United States District Judge Stephen V. Wilson, who also ordered him to pay $1,302,954 in restitution.
Yeung pleaded guilty on June 6 to one count of wire fraud.
Amazon allows third-party sellers to use its online retail platform to advertise items, make sales and communicate with customers. Ordinarily, when an Amazon customer purchases an item listed by a third-party seller, Amazon credits the third-party seller’s internal Amazon account for the amount of that purchase. About every two weeks, Amazon disburses into the seller’s bank account the proceeds of those sales for which the seller has provided proof that the items purchased have been shipped – namely, the shipment tracking numbers.
Yeung operated as an Amazon third-party vendor using business names including “Speedy Checkout,” “Special SaleS” and “California Red Trading Inc.” After enough time passed to allow his businesses to appear to be reputable vendors, Yeung would list expensive merchandise, such as furniture and home décor, at cut-rate prices to drive a spike in sales.
However, instead of shipping purchased items to the customers, Yeung provided Amazon with bogus tracking numbers. When customers complained about not receiving their purchases, Yeung delayed customer refund requests long enough to ensure that Amazon would disburse funds into his businesses’ bank accounts. As a result, Yeung collected payment for items that were never shipped and relied on Amazon to issue refunds to his disgruntled customers under its “A-to-z Guarantee.”
In some instances, instead of sending customers the products they ordered, Yeung shipped them cheap crystal ornaments, which served the dual purpose of generating tracking numbers that induced Amazon to disburse customer funds and forestalling customer complaints and demands for refunds. Yeung also used Amazon’s Buyer-Seller Messaging Service to convince customers that their orders were on their way when, in fact, they were not.
On occasion, Yeung provided goods to his customers that he obtained through his own fraudulent purchases from Amazon, which he made using credit cards in the names of other people and fictitious identities. After the goods were delivered to his customers, Yeung requested refunds for the goods from Amazon. Yeung often falsely claimed that he was entitled to a refund because the product was “Different from what was ordered,” and then returned lower-value items rather than the merchandise he had originally ordered. As a result, Yeung received both the refund and the proceeds of the original sale to his own customer.
“[Yeung] perpetrated his fraud over the course of roughly seven years, collecting more than $1.3 million,” prosecutors argued in a sentencing memorandum. “He forced his victim into an elaborate game of Whac-A-Mole: when Amazon uncovered and shut down a fraud scheme involving one of defendant’s companies, he simply began it anew with another.”
Yeung has admitted causing Amazon to suffer approximately $1,302,954 in losses. He has agreed to pay restitution, some of which will be paid with gold and silver bars that investigators seized during a search of his residence in February 2022.
The FBI investigated this matter and received cooperation from Amazon.
Assistant United States Attorney Alexander B. Schwab of the Major Frauds Section prosecuted this case.
Georgia Man Sentenced to over 7½ Years in Prison for Synthetic Identities Scheme That Defrauded Banks Out of Nearly $2 MillionRead the Press Release
LOS ANGELES – A Georgia man was sentenced today to 94 months in federal prison for participating in a nationwide fraud ring that used stolen Social Security numbers – including those belonging to children – to create synthetic identities used to open lines of credit, create shell companies, and steal nearly $2 million from financial institutions.
Corey Cato, 41, of Atlanta, was sentenced by United States District Judge R. Gary Klausner, who also ordered him to pay $1,908,481 in restitution. Cato pleaded guilty on May 9 to one count of conspiracy to commit financial institution fraud and one count of aggravated identity theft.
No later than 2017, Cato joined conspiracies to defraud banks and illegally possess credit cards. Cato and his co-conspirators created “synthetic identities” by combining false personal information such as fake names and dates of birth with the information of real people, such as their Social Security numbers. Cato and others then used the synthetic identities and fake ID documents to open bank and credit card accounts at financial institutions. Cato and his co-conspirators used the unlawfully obtained credit cards to fund their lifestyles.
As part of the scheme, Cato maintained a commercial mail receiving agency space called “Pak Mail” in Georgia where he and his co-conspirators received correspondence related to the synthetic identities, including bank account and credit card statements, while insulating their personal addresses from detection.
Using a stolen social security number and fake California driver’s license, Cato rented an apartment in Atlanta under the name “Jason Brown,” where, in February 2019, he possessed credit cards and financial information in the names of synthetic identities like “Adam M. Lopez” and “Carlos Rivera.”
The total losses to the banks totaled approximately $1.9 million.
“[Cato] and his co-conspirators built their wealth off the backs of the people whose identities they stole, many of them children,” prosecutors argued in a sentencing memorandum. “Both the effects on these victims’ credit histories and their sense of violation are impossible to quantify, but they provide further reminder of the seriousness of [Cato’s] crime and the callousness of his conduct.”
Homeland Security Investigations investigated this case, which is one of a series of cases that has resulted in criminal convictions for 12 defendants, including Turhan Lemont Armstrong, 52, of Northridge, who was convicted at trial in 2019 of 51 counts of fraud, money laundering, identity theft and other federal offenses.
Assistant United States Attorneys Alexander B. Schwab of the Major Frauds Section and Allison L. Westfahl Kong, Chief of Trials, Integrity, and Professionalism, prosecuted this case.
Former South Bay Resident Pleads Guilty to Sexual Exploitation Charge for Enticing Girls to Send Him Images Depicting MasochismRead the Press Release
LOS ANGELES – A former Redondo Beach resident pleaded guilty today to a federal criminal charge for targeting girls on the internet and enticing them to engage in masochistic abuse for his sexual gratification.
Matthew Christian Locher, 31, pleaded guilty to one count of sexual exploitation of a child for the purpose of producing a sexually explicit visual depiction.
According to his plea agreement, from November 2020 to May 2021, Locher targeted girls suffering from mental health issues, including depression, suicidal thoughts, and eating disorders. During internet conversations, Locher groomed his victims to engage in self-mutilation and instructed a victim struggling with an eating disorder to starve herself, ordering her to film herself cutting her body when she disobeyed him.
Locher enticed two of the minor victims to send Locher images and videos of themselves committing acts of self-harm, which included cutting their breasts with razor blades.
Locher enticed a third victim, who was 12 years old, to run away from her home in Ohio and travel to California to engage in illegal sexual activity with him. Specifically, Locher encouraged the victim to kill her parents, at which point he would pick her up, bring her to California, and make her his “slave.” This victim began a trip to California after setting a fire in her family’s home in an unsuccessful attempt to kill her parents.
Soon after federal authorities executed a search warrant at his residence, Locher relocated to Indiana in the summer of 2021. Following his arrest in Indianapolis in January 2022, federal authorities transported Locher to California. He has been in federal custody since then.
United States District Judge Dolly M. Gee scheduled a January 17, 2023 sentencing hearing, at which time Locher will face a mandatory minimum sentence of 15 years and a statutory maximum sentence of 30 years in federal prison.
The FBI, Homeland Security Investigations, the Los Angeles Police Department, the Springfield (Ohio) Police Department, the Shelby County (Tennessee) Sheriff’s Office, and the New York City Police Department investigated this matter.
Assistant United States Attorney Chelsea Norell of the Violent and Organized Crime Section is prosecuting this case.
Three Companies Agree to Plead Guilty to Federal Offense and Pay Nearly $13 Million in Federal Fines and Response Costs for Offshore Oil SpillRead the Press Release
LOS ANGELES – A Texas-based oil company and two of its subsidiaries have agreed to plead guilty to violating the federal Clean Water Act, pay a $7.1 million criminal fine, and compensate federal programs approximately $5.8 million in connection with the discharge of approximately 25,000 gallons of crude oil last October during an offshore leak in the 17-mile-long San Pedro Bay Pipeline, according to plea agreements filed today.
Federal prosecutors this afternoon filed plea agreements for the Houston-based Amplify Energy Corp., Beta Operating Co. LLC (a wholly owned subsidiary of Amplify doing business as Beta Offshore), and San Pedro Bay Pipeline Co. (a wholly owned subsidiary of Amplify). All three companies were charged in an indictment returned by a federal grand jury in December 2021.
Representatives of the three companies are expected to appear in the near future in United States District Court in Santa Ana to formally enter the guilty pleas. Each company has agreed to plead guilty to one misdemeanor count of negligently discharging oil into San Pedro Bay during the oil spill on October 1 and 2, 2021. The plea agreements are “binding” plea agreements, which means that the judge presiding over the case, United States District Judge David O. Carter, must accept or reject all aspects of the plea agreements. Should the court decide not to accept the plea agreements, any party may withdraw from the agreements and the case would proceed toward trial.
In addition to the payment of approximately $13 million in federal fines and costs, the companies have agreed to be placed on probation for a period of four years, during which time they are required to perform a series of actions and make operational improvements, including:
- reimbursing governmental agencies and entities that incurred direct and indirect expenses as the result of their response, including the U.S. Coast Guard and the Oil Spill Liability Trust Fund, in an amount currently estimated to be $5,844,700;
- improving training for all operational employees and related management personnel in identifying and responding to potential pipeline leaks;
- installing a new leak detection system for the pipeline;
- requiring notification to regulators of all leak detection alarms;
- contracting with an oil spill response organization that has the capability to detect oil on the surface of the water at night or in low-light conditions that will promptly deploy upon request;
- conducting visual underwater inspections of the pipeline semiannually; and
- making modifications to their pipeline-related procedures that will require financial investment of at least $250,000.
“The substantial financial penalties and compliance measures required by the plea agreements demonstrate the federal government’s resolve to punish any entity that causes environmental damage,” said Acting United States Attorney Stephanie S. Christensen. “This oil spill affected numerous people, businesses and organizations who use the Southern California coastal waters. The companies involved are now accepting their responsibility for criminal conduct and are required to make significant improvements that will help prevent future oil spills.”
The San Pedro Bay Pipeline, which was used to transfer crude oil from several offshore facilities to a processing plant in Long Beach, began leaking on the afternoon of October 1, 2021. In response to multiple leak detection alarms on October 1 and 2, the defendants’ employees shut down the pipeline several times, but then repeatedly and incorrectly assessed there was no leak and started pumping crude oil through the pipeline again. As a result of the defendants’ conduct, approximately 588 barrels of crude oil were discharged from a point approximately 4.7 miles west of Huntington Beach from a crack in the pipeline.
“Today’s plea agreement is a noteworthy success for federal and state law enforcement agencies charged with enforcing U.S. maritime laws protecting the oceans and natural marine resources in U.S. waters and around the world,” said Traci Larson, the Assistant Special Agent in Charge of the Coast Guard Investigative Service, Pacific Region. “CGIS Pacific Region is committed to protecting people’s health and the environment in communities across the Pacific Coast and throughout the U.S.”
“Our nation’s environmental laws are designed to protect our communities and oceans from hazardous pollutants, including oil,” said Scot Adair, Special Agent in Charge of EPA’s Criminal Investigation Division in California. “Amplify Energy’s agreement to plead guilty today demonstrates that companies that negligently violate those laws will be held responsible for their crimes.”
“Resources were devoted by the FBI and our federal partners in this investigation, including the FBI’s Underwater Search and Evidence Recovery Team,” said Amir Ehsaei, the Acting Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The anticipated guilty pleas will send a clear message of accountability to companies which rely on our natural resources and will hold them to elevated standards of environmental stewardship.”
“The expected guilty pleas serve as a compelling reminder that pipeline operators are responsible for exercising the highest levels of accountability for their operations given the potential for devastating consequences when they fail to do so,” said Cissy Tubbs, Special Agent in Charge of the U.S. Department of Transportation’s Office of Inspector General, Western Region. “Together with our law enforcement and prosecutorial partners, we will continue our vigorous efforts to pursue those who fail to meet the standards set by law and regulation designed to protect the people and natural resources of our nation.”
The plea agreements filed today require that the $7.1 million fine in the federal case be paid in installments over the next three years. The defendants recently paid $656,500 of the estimated $5.8 million in costs incurred by the Coast Guard and the Oil Spill Liability Trust Fund. Additionally, the defendants previously paid the vast majority of expenses related to the clean-up of the spill.
The Coast Guard Investigative Service; the U.S. Environmental Protection Agency, Criminal Investigation Division; the FBI; and the U.S. Department of Transportation, Office of Inspector General investigated the oil leak.
Assistant United States Attorneys Matt O’Brien and Brian Faerstein of the Environmental and Community Safety Crimes Section are prosecuting this case.
South L.A. Man Pleads Guilty to Conspiring to Commit Armed Robberies of Half a Dozen Businesses in Two-Week Crime SpreeRead the Press Release
LOS ANGELES – A South Los Angeles man pleaded guilty today to a federal conspiracy charge and admitted to committing six armed robberies of businesses, mostly 7-Eleven stores, during a two-week crime spree late last year.
Colin Powell Lacey, 28, of the Hyde Park neighborhood of Los Angeles, pleaded guilty to one count of conspiracy to commit interference with commerce by robbery (Hobbs Act).
According to his plea agreement, from November 13, 2021, to November 29, 2021, Lacey participated in the robbery of six businesses – five of which were 7-Eleven convenience stores. During the robberies, Lacey typically entered the stores, pointed a handgun at the store’s cashier and stole money – usually hundreds of dollars in cash belonging to the business.
For example, on November 29, 2021, Lacey and his co-conspirator, Kyle Richard Williams, 25, of Inglewood, traveled together to a smoke shop located in the Mid-City area of Los Angeles. Williams entered the store, pointed a handgun at the cashier and stole $442 while Lacey waited outside the store before fleeing with Williams.
That same night, Lacey and Williams robbed 7-Eleven stores in Hollywood and Mid-City, with Lacey pointing a handgun at the cashier at the Hollywood store and Williams pointing a handgun at the cashier at the Mid-City business, making off with $600 and $100, respectively. Lacey and Williams then fled in Lacey’s Hyundai.
On December 30, 2021, Lacey and Williams attempted to rob a 7-Eleven in El Segundo. Williams pointed a handgun at the store employee and demanded money. Lacey and Williams fled together after the employee showed Williams that the cash register was empty.
In total, Lacey admitted to participating in the armed robbery of six stores, including two other 7-Elevens in Hollywood and one 7-Eleven in West Hollywood. Lacey and Williams netted a total of $2,859 from the robberies.
Lacey and Williams have been in federal custody since March 2022.
United States District Judge Maame Ewusi-Mensah Frimpong scheduled a November 4 sentencing hearing for Lacey, at which time he will face a statutory maximum sentence of 20 years in federal prison.
Williams pleaded guilty on July 29 to one count of conspiracy to commit Hobbs Act robbery, two counts of Hobbs Act robbery, and one count of attempted Hobbs Act robbery. His sentencing hearing is scheduled for December 9, at which time he will face a statutory maximum sentence of 20 years in federal prison for each Hobbs Act robbery count.
The FBI, the Los Angeles Police Department’s Robbery-Homicide Division, and the Los Angeles County Sheriff's Department’s Major Crimes Bureau Metro Detail investigated this matter.
Assistant United States Attorneys Jeremiah M. Levine and Jeffrey M. Chemerinsky of the Violent and Organized Crime Section are prosecuting this case.
South Bay Chiropractor Sentenced to 14 Months in Federal Prison for Receiving Kickbacks for Referring Patients for Spinal SurgeriesRead the Press Release
LOS ANGELES – A South Bay chiropractor was sentenced today to 14 months in federal prison for taking kickbacks from Pacific Hospital – a corrupt medical center in Long Beach whose owner was later imprisoned – and for soliciting kickbacks from another Southern California hospital.
Brian Carrico, 68, of Redondo Beach, was sentenced by United States District Judge Josephine L. Staton, who also ordered him to pay a fine of $25,000.
Carrico pleaded guilty on February 24 to one count of soliciting kickbacks – the same day his two Redondo Beach-based companies, Performance Medical & Rehab Center Inc., and One Accord Management Inc., each pleaded guilty to one count of conspiracy to solicit kickbacks.
Judge Staton today also sentenced Carrico’s companies to one year of probation and fined them each $250,000.
Carrico is a licensed chiropractor and owned Performance Medical & Rehab Center, which treated injured workers. Surgeons saw patients at Performance Medical’s offices. Carrico also owned One Accord Management, which provided billing, collection and other support services for Performance Medical.
His criminal partner, William Parker, 68, of Redondo Beach, owned Union Choice Therapy Network, which had a contract with Pacific Hospital and paid One Accord money from that contract. Last month, Parker was sentenced to one year and one day in federal prison and was fined $5,500. He pleaded guilty on February 24 to one count of soliciting kickbacks.
From June 2004 to December 2013, Carrico and Parker participated in a kickback scheme in which Pacific Hospital overpaid for the value of services performed under its Union Choice contract to induce Carrico and Parker to refer patients to Pacific Hospital for surgeries and other treatment.
Pacific Hospital specialized in surgeries, especially spinal and orthopedic procedures. The owner of Pacific Hospital, Michael D. Drobot, conspired with doctors, chiropractors and marketers to pay kickbacks in return for the referral of thousands of patients to Pacific Hospital for spinal surgeries and other medical services paid for primarily through the California workers’ compensation system.
During its final five years, the scheme resulted in the submission of more than $500 million in medical bills for spine surgeries involving kickbacks. To date, 22 defendants have been convicted for participating in the kickback scheme.
In April 2013, law enforcement searched Pacific Hospital. Later that year, Carrico learned Pacific Hospital was going to be sold and the kickback scheme would end. Rather than cease their criminal conduct after the Pacific Hospital search, Carrico and Parker then approached an executive at a different hospital and solicited kickbacks from him.
Specifically, Carrico and Parker offered a quid pro quo in which the referral of patients to the hospital was contingent on that hospital entering into a management services agreement with Union Choice. Under the proposed agreement, the hospital would have paid Union Choice a total of $110,000 over the span of four months – more than the market value of the services performed.
While not written into the contract, Carrico and Parker would cause the referrals of Performance Medical patients to go to this hospital. The hospital’s executive ultimately rejected the deal.
“[Carrico], as the licensed medical professional, had control and influence over the location where patients had spinal surgeries,” prosecutors wrote in a sentencing memorandum. “Patients are not commodities that can be traded for kickbacks.”
The United States Postal Service Office of Inspector General, the FBI, IRS Criminal Investigation, and the California Department of Insurance investigated this matter.
Assistant United States Attorneys Joseph T. McNally and Billy Joe McLain of the Violent and Organized Crime Section prosecuted this case.
Downey Man Arrested on Federal Charges Alleging He Sold Fake Prescription Pills that Caused Fatal Fentanyl OverdoseRead the Press Release
LOS ANGELES – A Downey man is in federal custody today after being arrested on federal charges of selling counterfeit prescription pills containing fentanyl to a 17-year-old Downey female who suffered a fatal overdose from the synthetic opioid.
Jonathan Limas-Reyes, 26, was taken into custody Tuesday afternoon by special agents with the Drug Enforcement Administration. Limas-Reyes was ordered detained pending trial during an arraignment Wednesday afternoon in United States District Court.
A federal grand jury on August 19 charged Limas-Reyes in a two-count indictment that accuses him of distributing fentanyl resulting in death and distributing fentanyl with to a person under 21. Limas-Reyes pleaded not guilty to the charges in the indictment and an October 18 trial date was scheduled.
The indictment alleges that, on or about October 29, 2021, Limas-Reyes sold the victim the fentanyl-laced pills, “the use of which resulted in the death and serious bodily injury of victim A.K.”
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 charge of distribution of fentanyl resulting in death and serious bodily injury carries a mandatory minimum sentence of 20 years in federal prison and a maximum statutory penalty of life. The charge of distribution of fentanyl to a person under age 21 carries a mandatory minimum sentence of one year and a maximum statutory penalty of life.
The DEA’s Los Angeles Field Division is investigating this matter. The Downey Police Department provided substantial assistance.
Assistant United States Attorneys Lyndsi Allsop and David Williams of the General Crimes Section are prosecuting this case.
This case is the result of an investigation by the Drug Enforcement Administration’s Overdose Justice Task Force, which was created to address opioid-related deaths in the greater Los Angeles area, most of which are caused by the synthetic opioid fentanyl. Under the Overdose Justice program for the DEA’s Los Angeles Field Division, DEA agents collaborate with local law enforcement to analyze evidence to determine if there are circumstances that might lead to a federal criminal prosecution, and, if so, proactively target the drug trafficker.
Oxnard Man Pleads Guilty to Wildlife Smuggling and Trafficking Charges for Illegally Importing More Than 1,700 Animals into U.S.Read the Press Release
LOS ANGELES – A Ventura County man pleaded guilty today to federal criminal charges for illegally importing into the United States more than 1,700 wild animals – including 60 reptiles found hidden in his clothes earlier this year at the United States-Mexico border.
Jose Manuel Perez, a.k.a. “Julio Rodriguez,” 30, of Oxnard, pleaded guilty to two counts of smuggling goods into the United States and one count of wildlife trafficking.
According to his plea agreement, from January 2016 to February 2022, Perez and his accomplices used social media to arrange for the smuggling of wildlife – primarily reptiles – into the United States, typically from Mexico.
The smuggled animals – which included Yucatan box turtles, Mexican box turtles, baby crocodiles and Mexican beaded lizards – were imported into the United States from Mexico and Hong Kong without declaring them to U.S. customs officials or obtaining permits required by an international treaty known as the Convention on the International Trade of Endangered Species of Wild Fauna and Flora (CITES).
For the animals smuggled from Mexico, Perez’s accomplices retrieved the wildlife from Ciudad Juarez International Airport in Mexico and smuggled the animals by car to El Paso, Texas. Perez’s accomplices were paid a “crossing fee” for each border crossing – the amount of which depended on the number of animals transported, the size of the package, and the risk of being detected by the authorities. Perez then had the animals shipped to his family’s residence in Ventura County, where he resold the animals to customers across the United States. Throughout the process, Perez used the alias “Julio Rodriguez” to conceal his involvement in the scheme.
On other occasions, Perez himself traveled to Mexico to obtain wildlife. He rented a house in Tijuana and crossed into the United States from Mexico at the San Ysidro Port of Entry approximately 36 times from February 2021 to February 2022. On February 25, 2022, Perez was arrested while attempting to enter the United States with 60 reptiles on his person, hidden in his clothing in small bags. Three of the reptiles died during his smuggling attempt.
On May 16, 2022, Perez was ordered released on bond. On June 5, the day before a court hearing he had requested, Perez removed his ankle bracelet used for court-ordered location monitoring and fled to Tijuana. On June 16, Perez was apprehended in Mexico. Perez was returned to the United States on June 16 and has remained in custody since then.
Law enforcement estimates that the wildlife smuggled by Perez had a total market value exceeding $739,000.
United States District Judge Fernando M. Olguin scheduled a December 1 sentencing hearing, at which time Perez will face a statutory maximum sentence of 20 years in federal prison for each smuggling count and up to five years in federal prison for the wildlife trafficking count.
Stephany Perez, 26, also of Oxnard, Jose Perez’s sister and co-defendant, is scheduled to go on trial in this case in February 2023.
The United States Fish and Wildlife Service investigated this matter. The United States Attorney’s Office for the Southern District of California, U.S. Customs and Border Protection, and Homeland Security Investigations provided substantial assistance.
Assistant United States Attorneys Matthew W. O’Brien and Brian R. Faerstein of the Environmental and Community Safety Crimes Section and Senior Trial Attorney Gary N. Donner of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division are prosecuting this case.
South L.A. Gang Member Who Sold Methamphetamine and Crack Cocaine at His Storefront Pleads Guilty to Conspiracy ChargeRead the Press Release
LOS ANGELES – A member of the Hoover Criminals Gang pleaded guilty today to a federal criminal charge for conspiring to distribute narcotics, including crack cocaine and methamphetamine, which were sold at his storefront in South Los Angeles.
Andrew Tate, 54, a.k.a. “Batman,” of South Los Angeles, pleaded guilty to one count of conspiracy to distribute controlled substances. He is the lead defendant in an indictment targeting the gang's members and associates as part of an investigation dubbed “Operation Hoover Dam.”
According to his plea agreement, Tate owned a business named TNN Market and he sold methamphetamine, crack cocaine and powder cocaine from it. Tate and co-defendant Bobby Lorenzo Reed, 58, a.k.a. “Zo” and “Z,” who owned the South Los Angeles-based store H&E Smoke and Snack Shop, referred customers to one another, supplied one another, and directed their employees to engage in drug sales and referrals in dozens of narcotics transactions from June 2017 to May 2018.
United States District Judge Stanley Blumenfeld Jr. scheduled a December 13 sentencing hearing, at which time Tate will face a mandatory minimum sentence of 10 years in federal prison and a statutory maximum sentence of life imprisonment.
In total, federal prosecutors have secured 10 convictions in this case.
Reed pleaded guilty on June 7 to federal criminal charges in this case and is scheduled to be sentenced on September 13. On June 22, co-defendant Willie Alsha Hill, 51, of South Los Angeles, was found guilty by a jury of conspiracy to distribute controlled substances. He is scheduled to be sentenced on October 11.
The FBI, the Los Angeles Police Department and the California Department of Corrections and Rehabilitation investigated this matter.
Assistant United States Attorneys Jenna Williams and Jason Pang of the International Narcotics, Money Laundering, and Racketeering Section are prosecuting this case.
Former Oxnard Resident Sentenced to Nearly 20 Years in Prison for Enticing Girl into Sending Him Sexually Explicit Images of HerselfRead the Press Release
LOS ANGELES – A former resident of Ventura County was sentenced today to 235 months in federal prison for using Instagram to entice a 10-year-old girl into sending him sexually explicit images of herself.
Barry Bryant Rossman, 63, a.k.a. “Ben,” formerly of Oxnard and Santa Rosa, was sentenced by United States District Judge Stanley Blumenfeld Jr., who also placed Rossman on lifetime supervised release and ordered him to pay $427.50 in restitution.
At today’s hearing, Judge Blumenfeld said Rossman’s actions were “clearly planned, clearly sophisticated, and clearly manipulative” and he committed his crimes “knowing that he was elevating his own base needs above the most vulnerable people in society: children.”
Rossman pleaded guilty on May 24 – on what was supposed to be the first day of his trial – to one count of production of child pornography, one count of enticement of a minor to engage in criminal sexual activity, and one count of receipt of child pornography.
In late December 2019 and early January 2020, Rossman, then 60 years old, posed as “Ben,” purportedly a 21-year-old man, and used the Instagram account “itsben6969” to contact the victim – a 10-year-old girl in Colorado. When Rossman first contacted the victim, he pretended to have a 13-year-old brother who had mischievously taken his phone and reached out to the victim.
Rossman engaged in conversation with the victim, using flattery and discussing topics such as Christmas gifts. Over the following days, Rossman’s conversations with the victim became increasingly sexually explicit, and Rossman convinced the victim to send him sexually exploitative photographs of herself.
After Rossman and the victim exchanged photographs, videos, and messages, Rossman instructed the victim to delete her messages, claiming that his little brother might get into his Instagram account and Rossman did not want his little brother “loving” the photos like he did. Shortly thereafter, the victim’s mother discovered the messages on her daughter’s phone and called the police.
In May 2020, law enforcement executed a search warrant at Rossman’s residence in Oxnard and found evidence linking his iPhone to the Instagram account used to contact the victim. A federal search warrant affidavit on Rossman’s “itsben6969” Instagram account revealed that Rossman used the account to contact at least hundreds of minors and used the same ruse that he used with the 10-year-old victim approximately 1,633 times, sometimes translating it into other languages.
“For his sexual gratification…Rossman lied to, groomed, and manipulated children to engage in sex acts they were far too young to even understand,” prosecutors wrote in a sentencing memorandum. “The wreckage [Rossman] leaves in his wake for even one family aptly speaks to the severity of this offense and the public threat it poses in an Internet-reliant era.”
The FBI and the Erie (Colorado) Police Department investigated this matter.
Assistant United States Attorneys Chelsea Norell and Kathy Yu of the Violent and Organized Crime Section prosecuted this case.
Arizona Man Charged in Alleged Armed Robbery Spree that Ended in High-Speed Chase in Which He Fired Upon Federal Law EnforcementRead the Press Release
LOS ANGELES – An Arizona man was charged today in a federal criminal complaint alleging he robbed 10 stores in Southern California and Arizona during a three-week crime spree 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, 26, of Phoenix, was arrested on August 20 at the conclusion of a high-speed chase after he allegedly robbed a PetSmart store in Rancho Cucamonga. In a criminal complaint filed today, Smith was charged with interference with commerce by robbery (Hobbs Act), brandishing a firearm in furtherance of a crime of violence, and assault on a federal officer.
Smith is in a hospital, recovering from his injuries. He is expected to make his initial appearance in United States District Court in the coming weeks.
According to an affidavit filed with the complaint, Smith, armed with a gun, robbed 10 businesses – nine of them PetSmart stores – beginning on July 31 and ending August 20. The targeted stores were a Big Lots store in Riverside and PetSmart stores in Signal Hill, Orange, San Bernardino, Fontana, Pico Rivera, Redlands, Huntington Beach, Phoenix, and Rancho Cucamonga.
During the armed robbery spree, Smith allegedly used a distinct black handbag with pink trim during the robberies and pointed a black handgun at store employees at the cash register. The total loss to the stores was approximately $7,091, according to the affidavit.
On August 20, Smith allegedly robbed a PetSmart store in Rancho Cucamonga, but noticed law enforcement approaching him. Smith opened the driver’s side door of his car and fire at least two rounds at the unmarked vehicle for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), which was struck by gunfire. An officer in another vehicle then returned fire.
Smith then entered his car and fled at a high rate of speed for approximately 20 minutes through several different cities. During this pursuit, Smith allegedly fired several rounds at the law enforcement officers pursuing him.
The pursuit ended when law enforcement rammed their vehicle into Smith’s car. 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.
At the time of his arrest, Smith was still wearing the same clothing that he wore during the robbery, including the ski mask. In the passenger seat, law enforcement recovered the firearm. On the floorboard of the driver’s seat, law enforcement recovered several rounds of live ammunition.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of all charges, Smith would face a statutory maximum sentence of 20 years in federal prison on the Hobbs Act robbery count, seven years in federal prison for the firearm brandishing count and 20 years in federal prison for the assaulting a federal officer count.
The ATF Orange County Violent Crime Task Force is investigating this matter. The task force, which is responsible for investigating serial robberies around Southern California, is comprised of the 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 Attorneys Jeffrey M. Chemerinsky and Kevin J. Butler of the Violent and Organized Crime Section are prosecuting this case.
Former Postal Service Mail Carrier Charged with Bank Fraud, ID Theft for Allegedly Stealing Jobless Benefit Debit Cards from Her Mail RouteRead the Press Release
LOS ANGELES – A former United States Postal Service mail carrier was indicted today by a federal grand jury for her role in a scheme that allegedly defrauded banks out of more than $200,000 via the theft of debit cards containing unemployment insurance benefits from her mail route and giving them to a co-schemer in exchange for cash payments and gifts.
Toya Toshell Hunter, 44, of South Los Angeles, was charged in a 20-count superseding indictment returned today along with lead defendant Michalea Latise Barksdale, a.k.a. “Miichii Bee,” 33, of Corona, whom a federal grand jury previously indicted in December 2021.
Hunter and Barksdale are charged with 12 counts of bank fraud, two counts of aggravated identity theft, and one count of debit card fraud exceeding $1,000. Hunter also is charged with three counts of embezzlement of mail by a postal employee. Barksdale faces one count of unlawful possession of 15 or more access devices (including debit cards and Social Security numbers) and one count of possession of stolen mail.
The defendants are expected to appear in United States District Court for their arraignments in the coming weeks.
According to the indictment, as part of scheme lasting from December 2014 to May 2020, Hunter used her position as a mail carrier with the United States Postal Service to steal Bank of America debit cards mailed by the California Employment Development Department (EDD) to jobless individuals. She then allegedly provided Barksdale the stolen debit cards in exchange for future payments and gifts.
Using the stolen EDD debit cards and the last four digits of the EDD cardholders’ Social Security numbers, Barksdale allegedly called the Visa vocal response unit to activate the EDD debit cards and create personal identification numbers (PINs). Once the cards had been activated, Barksdale used the stolen debit cards and fraudulently obtained PINs to make unauthorized cash withdrawals from ATMs in Corona, Compton and Fullerton, and purchases at stores throughout Southern California.
Aiding and abetting each other, Hunter and Barksdale made fraudulent and unauthorized cash withdrawals and purchases from at least 193 separate EDD cards and thereby stole from Bank of America at least $215,641 to which they were not entitled, according to the indictment.
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.
If convicted, Hunter and Barksdale would face statutory maximum sentences of 30 years in federal prison for each bank fraud count and 15 years in federal prison for the count of debit card fraud exceeding $1,000 in losses, plus a mandatory two-year prison sentence for aggravated identity theft. Hunter would face up to five years in federal prison for each count of embezzling mail by a postal employee. Barksdale would face up to five years in federal prison for possession of stolen mail.
The United States Postal Inspection Service, United States Postal Service – Office of Inspector General, and the United States Treasury Inspector General for Tax Administration are investigating this matter.
Special Assistant United States Attorney Kyle W. Kahan of the General Crimes Section is prosecuting this case.
Ventura County’s Organized Health System and 3 Medical Providers Agree to Pay $70.7 Million to Settle False Claims Act AllegationsRead the Press Release
LOS ANGELES – Ventura County’s organized health system and three medical care providers have agreed to pay a total of $70.7 million to settle allegations that they broke federal and state laws 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 Justice Department announced today.
The parties that entered into the three separate settlement agreements are:
- Ventura County Medi-Cal Managed Care Commission which does business as Gold Coast Health Plan, a county-organized health system (COHS) that contracts to arrange for the provision of health care services under California’s Medicaid program (Medi-Cal) in Ventura County;
- Ventura County, which owns and operates Ventura County Medical Center, an integrated health care system that provides hospital, clinic, and specialty services;
- Dignity Health, a San Francisco-based not-for-profit hospital system that operates two acute care hospitals in Ventura County; and
- Clinicas del Camino Real, Inc. (Clinicas), a non-profit healthcare organization headquartered in Camarillo.
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 percent of the federal poverty level. The federal government fully funded the expansion coverage for the first three years of the program.
Pursuant to contracts with California’s Department of Health Care Services (DHCS), if a California COHS did not spend at least 85 percent of the funds it received for the Adult Expansion population on “allowed medical expenses,” the COHS was required to pay back to the state the difference between 85 percent and what it actually spent. California, in turn, was required to return that amount to the federal government.
The three settlements resolve allegations that Gold Coast, Ventura County, Dignity, and Clinicas knowingly submitted or caused the submission of false claims to Medi-Cal for “Additional Services” provided to Adult Expansion Medi-Cal members between January 1, 2014, and May 31, 2015. The United States and California alleged that the payments were not “allowed medical expenses” under Gold Coast’s contract with DHCS, were pre-determined amounts that did not reflect the fair market value of any Additional Services provided, and/or the Additional 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 Article IV, Section 17 of the Constitution of California.
As a result of the settlements, Gold Coast will pay $17.2 million to the United States; Ventura County will pay $29 million to the United States; Dignity will pay $10.8 million to the United States and $1.2 million to the State of California; and Clinicas will pay $11.25 million to the United States and $1.25 million to the State of California.
“We will pursue every health plan and provider that prioritizes profits over patients,” said Acting United States Attorney Stephanie S. Christensen. “The money at issue in this case was designated by the federal government to pay for services to treat Medicaid expansion patients, and it never should have been used to pay for services that were already – or, simply never – provided. Medicaid is a taxpayer-funded program that exists to help patients afford health care, and it never should be used to line the pockets of health care providers through fraudulent schemes.”
“Federal health care funds are not intended to serve as a blank check,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Health systems and health care providers will be held accountable when they misuse such funds, including funds intended to support Medicaid expansion programs.”
“Medicaid expansion programs were created to ensure access to coverage for those in need of health care services. Anyone who illegitimately diverts Medicaid funding for their own financial gain prevents valuable taxpayer dollars from being used for their intended purpose,” said Special Agent in Charge Timothy DeFrancesca of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG will not hesitate to investigate and pursue all forms of health care fraud.”
“Medi-Cal props up our communities by providing access to free or affordable healthcare services for millions of Californians and their families. Those who attempt to cheat the system are cheating our communities of essential care,” said California Attorney General Rob Bonta. “I want to express my gratitude to the United States Department of Justice and the United States Attorney’s Office in Los Angeles for their 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.”
Contemporaneous with the False Claims Act settlement, the U.S. Department of Health and Human Services agreed to release its right to exclude Gold Coast and Ventura County in exchange for their agreements to enter into 5-year Corporate Integrity Agreements (CIAs). The CIAs require, among other things, that Gold Coast and Ventura County each implement centralized risk assessment programs as part of their compliance programs and each hire an Independent Review Organization to complete annual reviews. Gold Coast’s annual reviews will focus on its calculation and reporting of Medical Loss Ratio (MLR) data under Medi-Cal, while Ventura County’s annual reviews will target hospital claims submitted to Medicare and Medicaid, including claims submitted to Medicaid managed care organizations.
The civil settlements include the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Atul Maithel, Gold Coast’s former controller, and Andre Galvan, Gold Coast’s former director of member services. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The whistleblowers also alleged claims under the California False Claims Act. The qui tam case is captioned United States of America, et al. ex rel. Maithel, et al. v. Ventura Co. Medi-Cal Managed Care Commission d/b/a Gold Coast Health Plan, et al., No. 15-7760AB TJH (JEMx) (C.D. Cal.).
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, the U.S. Attorney’s Office for the Central District of California, and the California Department of Justice, with assistance from HHS-OIG and DHCS.
The investigation and resolution 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).
Assistant United States Attorney Jack D. Ross of the Civil Division’s Civil Fraud Section and Trial Attorneys Alison Rousseau and Mary Beth Hickcox-Howard of the Justice Department’s Fraud Section handled this case.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
South Los Angeles Street Gang Targeted in Federal Racketeering Indictment that Alleges Narcotics, Firearms and Extortion OffensesRead the Press Release
LOS ANGELES – Authorities this morning arrested 28 members and associates of the South Los Angeles-based Eastside Playboys street gang on federal racketeering, narcotics and firearms charges. Today’s arrests stem from six grand jury indictments, one of which alleges a racketeering scheme and includes allegations of narcotics and weapons trafficking, as well as the extortion of local businesses.
One of the indictments alleges that the gang is a criminal enterprise under the Racketeer Influenced and Corrupt Organizations (RICO) Act. This indictment outlines the structure of the gang, its allegiance to the Mexican Mafia prison gang, and how it generates revenue through, among other things, the sale of narcotics and firearms.
Those arrested today are among 41 members and associates of the gang named across the six indictments. Three of the defendants were already in custody, and law enforcement continues to search for 10 defendants.
During this investigation, the Los Angeles Metropolitan Task Force on Violent Gangs seized from the Playboys and their associates approximately 47 firearms, 199 kilograms of methamphetamine, 13.6 kilograms of fentanyl, 27 kilograms of cocaine, 7.6 kilograms of heroin, 283 kilograms of marijuana, and $140,000 in cash. The RICO indictment further alleges that members of the racketeering enterprise operated two unlicensed marijuana dispensaries.
“This case is the culmination of years of work by our agents and prosecutors, alongside our local law enforcement partners, to remove violent gang members from our streets and dismantle the criminal organizations that fuel violent crime,” said Attorney General Merrick B. Garland. “The Justice Department has no tolerance for violent gangs that sow fear and terror in our communities, and we will continue to use every tool we have to stop them and bring them to justice.”
“The indictments unsealed today charge a gang that stands accused of plaguing South Los Angeles for 50 years through repeated acts of violence, drug trafficking, extortion of local businesses, and weapons violations,” said Acting United States Attorney Stephanie S. Christensen. “Today’s coordinated law enforcement action targeted the Playboys street gang because of its alleged widespread criminal conduct, as well as the fear and intimidation its members imposed on our community.”
“Members and associates of this gang have built a criminal enterprise by trafficking in guns and deadly drugs, by extorting business owners, and by terrorizing victims with violent assaults and robberies,” said Amir Ehsaei, the Acting Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The FBI will continue to work with our local partners to identify the gangs wreaking havoc on our communities and to use federal tools to hold major offenders accountable for their crimes.”
“I am proud of the hard work and dedication of our LAPD officers, the FBI and the Los Angeles Metropolitan Task Force on Violent Gangs on such a demanding investigation,” said Los Angeles Police Department Chief Michel Moore. “Organized street gangs prey upon our communities with violence, intimidation and fear. Their tradecraft is furthered by the trafficking of dangerous firearms and narcotics. As in this case, and others, with strong federal partners and the support of our communities we are able to remove the distributors and root cause of such violence from of our neighborhoods.”
Today’s arrests are the result of an investigation that was opened about four years ago by the FBI and the multi-agency Los Angeles Metropolitan Task Force on Violent Gangs. The investigation, dubbed Operation Down the Rabbit Hole, utilized an array of tactics, including wiretaps and surveillance, to uncover evidence of extortion of businesses, violent robberies, burglaries, narcotics and firearms trafficking, and violence against their own members as “discipline” for violating gang rules and norms.
As part of the overall racketeering enterprise, some defendants engaged in large-scale drug trafficking, including sending kilogram quantities of cocaine, methamphetamine and fentanyl through the United States Postal Service, FedEx and United Parcel Service. Some defendants also allegedly distributed cocaine, methamphetamine, fentanyl powder and counterfeit fentanyl-laced pills in Los Angeles and Orange counties.
The 44-count RICO indictment charges 18 defendants, nine of whom are named in the racketeering conspiracy count. Various defendants are also charges with Hobbs Act conspiracy and robbery; a drug trafficking conspiracy; distribution and possession with intent to distribute controlled substances; using and possessing a firearm in furtherance of a crime of violence and a drug trafficking crime; being a felon in possession of firearms and ammunition; and engaging in the business of dealing in firearms without a license.
The lead defendant in the RICO indictment is Eliseo Luna, 47, of South Los Angeles, who acted as overall “shot caller” for the gang, according to the indictment. Luna – who used a number of monikers, including “Chilo,” “Crazy,” “Toca” and “El Abogado” – allegedly oversaw the Playboys’ drug trafficking activities, gave orders to Playboys’ general leadership and membership, and authorized the assault and murder of members in bad standing with Playboys.
The 110-page RICO indictment alleges that four of the defendants participated in a March 2020 home invasion robbery of a marijuana dealer at a residence in Woodland Hills. In a subsequent conversation with Luna outlined in the indictment, one of the alleged robbers described the home invasion robbery, including the restraint of the victim, the theft of up to $50,000 in cash and approximately 10 pounds of marijuana, and a gun fight between the robbers and the victim, which resulted in one of the robbers being shot in the stomach by the robbery victim.
The RICO indictment outlines numerous conversations about criminal acts and specifically alleges that several gang members possessed approximately 3.3 kilograms of heroin at one point. One defendant also allegedly participated in the attempted murder of a Playboys member who was stabbed in the head and torso multiple times for betraying the gang.
A second indictment unsealed today names 17 defendants, all of whom are charged with participating in a narcotics-trafficking conspiracy. One of the defendants – Elvis Arreguin, 31, of San Pedro – allegedly maintained a laboratory in Long Beach where fentanyl and methamphetamine were processed.
“On July 7, 2021, defendant Arreguin and a co-conspirator drove together to a UPS store in Long Beach, California, where the co-conspirator dropped off a package containing approximately 10.007 kilograms of fentanyl that were packaged in one-kilogram bundles and covered in mustard,” the indictment alleges.
Another indictment charges four defendants with participating in a scheme to distribute methamphetamine, heroin, cocaine and fentanyl. The lead defendant in this case, Francisco Soria, 29, of South Los Angeles, an alleged member of a Latino street gang in Watts with close ties to the Playboys, is charged with possessing with the intent to distribute approximately 12 ounces of fentanyl, 20 ounces of heroin, and more than an ounce of methamphetamine. Soria also allegedly possessed two firearms – one of which was a 9mm “ghost gun” – in furtherance of drug trafficking.
The other three indictments unsealed today charge individual defendants with drug trafficking offenses, including Rene Paul Romero, a.k.a. “Capone,” 45, of Whittier, who allegedly knowingly distributed approximately 436 grams (nearly one pound) of methamphetamine.
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 defendants arrested today are expected to be arraigned this afternoon in United States District Court in downtown Los Angeles.
The RICO conspiracy and Hobbs Act robbery charges each carry a statutory maximum sentence of 20 years in federal prison. The narcotics and firearms offenses carry a range of potential sentences, many of which include a mandatory minimum sentence of at least five years in prison.
Operation Down the Rabbit Hole was led by the Los Angeles Metropolitan Task Force on Violent Gangs which is comprised of the FBI and the Los Angeles Police Department. Considerable assistance was provided by the Bureau of Alcohol Tobacco Firearms and Explosives; the Drug Enforcement Administration; the United States Marshals Service; the Joint Regional Intelligence Center; the Los Angeles County Sheriff’s Department; the United States Bureau of Prisons; the California Department of Corrections and Rehabilitation; and the Los Angeles County Probation Department.
Assistant United States Attorneys Damaris Diaz and Claire E. Kelly of the Violent and Organized Crime Section, and Christopher C. Kendall and Maria Elena Stiteler of the International Narcotics, Money Laundering, and Racketeering Section are prosecuting these cases.
Los Angeles Street Gang Targeted in Federal Racketeering Indictment that Alleges Narcotics, Firearms and Extortion OffensesRead the Press Release
Twenty eight members and associates of the South Los Angeles-based Eastside Playboys street gang were arrested today on federal racketeering, narcotics, and firearms charges.
The arrests stem from six indictments, one of which alleges a racketeering scheme and includes allegations of narcotics and weapons trafficking, as well as the extortion of local businesses.
“This case is the culmination of years of work by our agents and prosecutors, alongside our local law enforcement partners, to remove violent gang members from our streets and dismantle the criminal organizations that fuel violent crime,” said Attorney General Merrick B. Garland of the Justice Department. “The Justice Department has no tolerance for violent gangs that sow fear and terror in our communities, and we will continue to use every tool we have to stop them and bring them to justice.”
“One of our fundamental duties at the FBI is to protect the American people,” said FBI Director Christopher Wray. “The law enforcement operations in the Los Angeles area today reflect only a portion of the work being done across the country and illustrate the FBI’s dedication to reducing violent crime in our nation, and combating the threats that gangs, violent actors, and criminal enterprises pose to our communities. I am proud of the work being done by the FBI, in concert with our local, state, tribal, and federal law enforcement partners, to keep our citizens and communities safe.”
One of the indictments alleges that the gang is a criminal enterprise under the Racketeer Influenced and Corrupt Organizations (RICO) Act. This indictment outlines the structure of the gang, its allegiance to the Mexican Mafia prison gang, and how it generates revenue through, among other things, the sale of narcotics and firearms.
“The indictments unsealed today charge a gang that stands accused of plaguing South Los Angeles for 50 years through repeated acts of violence, drug trafficking, extortion of local businesses, and weapons violations,” said Acting United States Attorney Stephanie S. Christensen for the Central District of California. “Today’s coordinated law enforcement action targeted the Playboys street gang because of its alleged widespread criminal conduct, as well as the fear and intimidation its members imposed on our community.”
As part of the overall racketeering enterprise, some defendants engaged in large-scale drug trafficking, including sending kilogram quantities of cocaine, methamphetamine and fentanyl through the United States Postal Service, FedEx and United Parcel Service. Some defendants also allegedly distributed cocaine, methamphetamine, fentanyl powder and counterfeit fentanyl-laced pills in Los Angeles and Orange counties.
“Members and associates of this gang have built a criminal enterprise by trafficking in guns and deadly drugs, by extorting business owners, and by terrorizing victims with violent assaults and robberies,” said Acting Assistant Director in Chage Amir Ehsaei of the FBI’s Los Angeles Field Office. “The FBI will continue to work with our local partners to identify the gangs wreaking havoc on our communities and to use federal tools to hold major offenders accountable for their crimes.”
During this investigation, the Los Angeles Metropolitan Task Force on Violent Gangs seized from the Playboys and their associates approximately 47 firearms, 199 kilograms of methamphetamine, 13.6 kilograms of fentanyl, 27 kilograms of cocaine, 7.6 kilograms of heroin, 283 kilograms of marijuana, and $140,000 in cash. The RICO indictment further alleges that members of the racketeering enterprise operated two unlicensed marijuana dispensaries.
“I am proud of the hard work and dedication of our LAPD officers, the FBI and the Los Angeles Metropolitan Task Force on Violent Gangs on such a demanding investigation,” said Los Angeles Police Department Chief Michel Moore. “Organized street gangs prey upon our communities with violence, intimidation and fear. Their tradecraft is furthered by the trafficking of dangerous firearms and narcotics. As in this case, and others, with strong federal partners and the support of our communities we are able to remove the distributors and root cause of such violence from of our neighborhoods.”
Those arrested today are among 41 members and associates of the gang named across the six indictments. Three of the defendants were already in custody, and law enforcement continues to search for 10 defendants.
The RICO conspiracy and Hobbs Act robbery charges each carry a statutory maximum sentence of 20 years in federal prison. The narcotics and firearms offenses carry a range of potential sentences, many of which include a mandatory minimum sentence of at least five years in prison.
The defendants arrested today are expected to be arraigned this afternoon in U.S. District Court in downtown Los Angeles.
Today’s arrests are the result of an investigation that was opened approximately four years ago by the FBI and the multi-agency Los Angeles Metropolitan Task Force on Violent Gangs. The investigation, dubbed Operation Down the Rabbit Hole, utilized an array of tactics, including wiretaps and surveillance, to uncover evidence of extortion of businesses, violent robberies, burglaries, narcotics and firearms trafficking, and violence against their own members as “discipline” for violating gang rules and norms.
Operation Down the Rabbit Hole was led by the Los Angeles Metropolitan Task Force on Violent Gangs, which is comprised of the FBI and the Los Angeles Police Department. The Bureau of Alcohol Tobacco Firearms and Explosives; DEA; U.S. Marshals Service; the Joint Regional Intelligence Center; Los Angeles County Sheriff’s Department; U.S. Bureau of Prisons; California Department of Corrections and Rehabilitation; and the Los Angeles County Probation Department provided considerable assistance.
Assistant U.S. Attorneys Damaris Diaz and Claire E. Kelly of the Violent and Organized Crime Section, and Christopher C. Kendall and Maria Elena Stiteler of the International Narcotics, Money Laundering, and Racketeering Section of the U.S. Attorney’s Office for the Central District of California are prosecuting these cases.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
California County Organized Health System and Three Health Care Providers Agree to Pay $70.7 Million for Alleged False Claims to California’s Medicaid ProgramRead the Press Release
Ventura County Medi-Cal Managed Care Commission doing business as Gold Coast Health Plan (Gold Coast), a county organized health system (COHS) that contracts to arrange for the provision of health care services under California’s Medicaid program (Medi-Cal) in Ventura County, California; Ventura County, which owns and operates Ventura County Medical Center, an integrated health care system that provides hospital, clinic, and specialty services; Dignity Health (Dignity), a not-for-profit hospital system that operates two acute care hospitals in Ventura County; and Clinicas del Camino Real Inc. (Clinicas), a non-profit health care organization located in Ventura County, have agreed to pay a total of $70.7 million pursuant to three separate settlements to resolve allegations that they violated the federal 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).
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. Pursuant to contracts with California’s Department of Health Care Services (DHCS), if a California COHS did not spend at least 85% of the funds it received for the Adult Expansion population on “allowed medical expenses,” the COHS 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 three settlements resolve allegations that Gold Coast, Ventura County, Dignity, and Clinicas knowingly submitted or caused the submission of false claims to Medi-Cal for “Additional Services” provided to Adult Expansion Medi-Cal members between Jan. 1, 2014, and May 31, 2015. The United States and California alleged that the payments were not “allowed medical expenses” under Gold Coast’s contract with DHCS; were pre-determined amounts that did not reflect the fair market value of any Additional Services provided; and/or the Additional 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 Article IV, section 17 of the California Constitution.
As a result of the settlements, Gold Coast will pay $17.2 million to the United States; Ventura County will pay $29 million to the United States; Dignity will pay $10.8 million to the United States and $1.2 million to the State of California; and Clinicas will pay $11.25 million to the United States and $1.25 million to the State of California.
“Federal health care funds are not intended to serve as a blank check,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Health systems and health care providers will be held accountable when they misuse such funds, including funds intended to support Medicaid expansion programs.”
“We will pursue every health plan and provider that prioritizes profits over patients,” said Acting U.S. Attorney Stephanie S. Christensen for the Central District of California. “The money at issue in this case was designated by the federal government to pay for services to treat Medicaid expansion patients, and it never should have been used to double-pay for services that already had been reimbursed or to pay for services that simply were never provided. Medicaid is a taxpayer-funded program that exists to help patients afford health care, and it never should be used to line the pockets of health care providers through fraudulent schemes.”
“Medicaid expansion programs were created to ensure access to coverage for those in need of health care services. Anyone who illegitimately diverts Medicaid funding for their own financial gain prevents valuable taxpayer dollars from being used for their intended purpose,” said Special Agent in Charge Timothy DeFrancesca of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG will not hesitate to investigate and pursue all forms of health care fraud.”
“Medi-Cal props up our communities by providing access to free or affordable health care services for millions of Californians and their families. Those who attempt to cheat the system are cheating our communities of essential care,” said California Attorney General Rob Bonta. “I want to express my gratitude to the U.S. Department of Justice and the U.S. Attorney’s Office in Los Angeles for their 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.”
Contemporaneous with the False Claims Act settlement, the U.S. Department of Health and Human Services agreed to release its right to exclude Gold Coast and Ventura in exchange for their agreements to enter into five-year Corporate Integrity Agreements (CIAs). The CIAs require, among other things, that Gold Coast and Ventura County each implement centralized risk assessment programs as part of their compliance programs and each hire an Independent Review Organization to complete annual reviews. Gold Coast’s annual reviews will focus on its calculation and reporting of medical loss ratio data under Medi-Cal, while Ventura County’s annual reviews will target hospital claims submitted to Medicare and Medicaid, including claims submitted to Medicaid managed care organizations.
The civil settlements include the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Atul Maithel, Gold Coast’s former controller, and Andre Galvan, Gold Coast’s former director of member services. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The whistleblowers also alleged claims under the California False Claims Act. The qui tam case is captioned United States, et al. ex rel. Maithel, et al. v. Ventura Co. Medi-Cal Managed Care Commission d/b/a Gold Coast Health Plan, et al., No. 15-7760AB TJH (JEMx) (C.D. Cal.).
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, the U.S. Attorney’s Office for the Central District of California, and the California Department of Justice, with assistance from HHS-OIG and DHCS.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care 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).
Trial Attorneys Alison Rousseau and Mary Beth Hickcox-Howard of the Civil Division’s Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorney Jack D. Ross for the Central District of California handled this case.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Court Authorizes Service of John Doe Summons Seeking the Identities of U.S. Taxpayers Who Have Used CryptocurrencyRead the Press Release
On Aug. 15, 2022, a federal court in the Central District of California entered an order authorizing the IRS to serve a John Doe summons on SFOX, a cryptocurrency prime dealer headquartered in Los Angeles, California, seeking information about U.S. taxpayers who conducted at least the equivalent of $20,000 in transactions in cryptocurrency between 2016 and 2021 with or through SFOX.
“Taxpayers who transact with cryptocurrency should understand that income and gains from cryptocurrency transactions are taxable,” said Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division. “The information sought by the summons approved today will help to ensure that cryptocurrency owners are following the tax laws.”
“The John Doe summons remains a highly valuable enforcement tool that the U.S. government will use again and again to catch tax cheats and this is yet one more example of that,” said IRS Commissioner Chuck Rettig. “I urge all taxpayers to come into compliance with their filing and reporting responsibilities and avoid compromising themselves in schemes that may ultimately go badly for them.”
Because transactions in cryptocurrencies can be difficult to trace and have an inherently pseudo-anonymous aspect, taxpayers may be using them to hide taxable income from the IRS. In the court’s order, United States District Court Judge Otis D. Wright found that there is a reasonable basis for believing that individuals conducting at least $20,000 in cryptocurrency transactions may have failed to comply with federal tax laws.
The court’s order grants the IRS permission to serve what is known as a “John Doe” summons on SFOX. There is no allegation in this suit that SFOX has engaged in any wrongdoing in connection with its digital currency business. Rather, the IRS uses John Doe summonses to obtain information about possible violations of internal revenue laws by individuals whose identities are unknown. This John Doe summons directs SFOX to produce records identifying U.S. taxpayers who have used its services, along with other documents relating to their cryptocurrency transactions.
The IRS has issued guidance regarding the tax consequences on the use of virtual currencies in IRS Notice 2014-21, which provides that virtual currencies that can be converted into traditional currency are property for tax purposes, and a taxpayer can have a gain or loss on the sale or exchange of a virtual currency, depending on the taxpayer’s cost to purchase the virtual currency (that is, the taxpayer’s tax basis).
The IRS reminds taxpayers that there is a question at the top of the 2022 Form 1040 (income tax return) and the 2022 Form 1040-SR (income tax return for seniors) asking about virtual currency transactions. More information can be found here Virtual Currencies | Internal Revenue Service (irs.gov).
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former Federal Correctional Officer Sentenced to Prison for Lying About Engaging in Unlawful Sexual Activity with Jail InmateRead the Press Release
LOS ANGELES – A former correctional officer at the federal jail in downtown Los Angeles was sentenced to a prison term today for lying to investigators about his sexual activity with an inmate who was under his care and supervision.
Abel Concho, 54, of East Los Angeles, was sentenced by United States District Judge R. Gary Klausner to a total of six months – three months in federal prison and an additional three-month term of home confinement. Judge Klausner also ordered Concho to pay the victim $9,500 in restitution.
Concho pleaded guilty in November 2021 to one count of making false statements.
Concho was employed by the Bureau of Prisons (BOP) as a correctional officer at the Metropolitan Detention Center (MDC) in Los Angeles. The victim in this case was an MDC inmate under Concho’s supervision from June 2010 to February 2011.
On July 28, 2021, Concho made a series of false statements during an administrative interview with federal investigators, including that he “never” had sexual contact with one MDC inmate, when in fact Concho engaged in sexual contact with the victim on approximately 35 different occasions. Concho, on multiple occasions, also lied that he “never had sexual contact” with any MDC inmates, according to court documents.
“Having abused his power in supervising the halls of a federal institution to commit sexual abuse and then lying up to cover up those gross abuses, justice demands that defendant should now spend time on the other side of the bars,” prosecutors wrote in a sentencing memorandum filed with the court.
After initially denying he had any sexual contact with the victim, Concho then falsely stated that he had sexual intercourse with the victim just “once (or) twice” that he could recall. Concho also falsely stated on multiple occasions that he did not provide a cellphone to the victim to take nude photographs for him. In fact, he illegally smuggled a cellphone into MDC and gave the cellphone to the victim to take nude photographs for him, which the victim then did.
Concho admitted in his plea agreement that he knew it was a federal crime and an offense that could lead to termination for a BOP employee to knowingly engage in any sexual act with a person in official detention and under his authority in a federal facility and to smuggle contraband, including cellphones, into MDC for inmates’ use.
Concho admitted he knew that, under the law and pursuant to the BOP employee code of conduct, sexual activity between staff and inmates could not be considered consensual and was not permitted. In addition to the harm it caused inmates, staff sexual acts with inmates threatened the safety and security of the prison and betrayed the trust and confidence placed in the BOP by the public, Concho admitted.
As part of his plea agreement, Concho also agreed not to seek employment in any law enforcement capacity or a position that requires carrying a firearm.
The United States Department of Justice, Office of Inspector General and the FBI investigated this matter.
Assistant United States Attorney Mack E. Jenkins, Chief of the Public Corruption and Civil Rights Section, prosecuted this case.
South Bay Man Indicted for Alleged Scheme that Used Name of Famous Television Production Company to Swindle InvestorsRead the Press Release
LOS ANGELES – A South Bay man was charged today in a federal grand jury indictment alleging he used the “Desilu” name – the same name used by Lucille Ball and Desi Arnaz’s television production company famous for shows such as “I Love Lucy” and “Star Trek” – to dupe investors into giving him money for sham investments, money that was actually used for personal expenses that included trips to Las Vegas.
Charles Hensley, 68, of Redondo Beach, is charged with 11 counts of wire fraud and one count of aggravated identity theft. He will be summonsed into United States District Court for an arraignment in the coming weeks.
According to the indictment returned today, from August 2017 to May 2018, Hensley successfully pitched investments in companies he owned, including Desilu Studios Inc. and Migranade Inc., which he operated out of offices in Manhattan Beach and other locations in Southern California. While Hensley claimed his businesses were real and successful, in fact, the indictment alleges, they were little more than shell corporations used as part of an investment scam.
In 2016, Hensley began using the name Desilu, which was similar to the name Desilu Productions Inc., the company that produced classic television shows during the 1950s and 1960s. He then claimed he was making new content for his company, Desilu Studios.
Hensley allegedly told investors he was extremely wealthy and was backing Desilu Studios with his personal funds. In fact, according to the indictment, Hensley had few assets, and he repeatedly bounced checks and overdrew bank accounts to get cash and pay expenses.
Hensley also allegedly provided victim-investors false and misleading valuation letters that purported to show that Desilu Studios was valued at more than $11 billion and Migranade at more than $50 million. In fact, the indictment alleges, the companies had little to no assets and were worth nowhere near the represented value.
In addition to these false statements, Hensley allegedly misrepresented that his companies had acquired valuable intellectual property, distribution agreements, subsidiaries and development rights, and that they were actively developing projects and bringing products to market, including new film and television projects using the Desilu name. In reality, Hensley did not own the intellectual property and other assets he said he did, and he used misleading representations regarding new film and television productions he was supposedly producing to dupe victim-investors into giving him money.
The indictment further alleges Hensley falsely represented that Desilu Studios was about to go public and that the company’s stock was worth more than its face value and more than investors were paying and would increase in value following its imminent initial public offering. In fact, according to the indictment, none of this was accurate and Hensley stole someone’s identity to list as Desilu Studio’s chief financial officer in offering materials.
The overall scheme allegedly impacted multiple victim-investors, including some who wired the approximately $331,000 identified in the wire fraud counts. In addition to these victims, Hensley allegedly also targeted multiple companies in the entertainment industry. In this part of the scheme, Hensley allegedly used some of the same misrepresentations to convince owners and executives to sell their companies to him in exchange for Desilu Studio’s stock that, unbeknownst to them, was worthless. The indictment further alleges that Hensley touted these purchases to the individual investors, further misleading them about his purported acquisitions of valuable assets.
If convicted, Hensley would face a statutory maximum sentence of 20 years in federal prison for each wire fraud count plus a mandatory two-year prison sentence for the aggravated identity theft count.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The FBI and IRS Criminal Investigation investigated this matter.
Assistant United States Attorney Kerry L. Quinn of the Major Frauds Section is prosecuting this case.
Inglewood Marine Wildlife Companies Plead Guilty to Federal Criminal Charges for Unlawfully Importing Live Corals from VietnamRead the Press Release
LOS ANGELES – Two Inglewood companies pleaded guilty today to federal criminal charges for illegally importing protected live corals from Vietnam and, to conceal their unlawful activity, submitting false records with United States Fish and Wildlife Service.
Renaissance Aquatics Inc. and Lim Aqua-Nautic Specialist Inc. each pleaded guilty to two felony counts of unlawfully importing live coral.
According to their plea agreements, from 2007 until March 2013, Renaissance Aquatics operated as a retailer of live marine specimens and acted as an agent for Lim Aqua-Nautic Specialist, a wholesaler of marine wildlife. The companies imported marine life from foreign suppliers, then sold and shipped marine life within and outside the United States. Both companies were located within the same commercial building in Inglewood.
Renaissance employees placed orders with foreign suppliers to purchase various live saltwater species, including live corals. Aqua-Nautic provided Renaissance with the funds to pay for the orders, provided trucks and drivers to pick-up the orders upon arrival at Los Angeles International Airport, and provided warehouse space and employees to unpack, condition and store the marine life upon its delivery from the airport. Aqua-Nautic received most of the proceeds from the subsequent sales of the wildlife to Renaissance customers.
Renaissance imported orders from a supplier in Vietnam that contained live stony corals, also known as “hard corals,” that the defendants knew were protected under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). To lawfully import the live stony corals, Renaissance was required to identify the corals on United States Fish and Wildlife Service (USFWS) Declaration for Importation or Exportation of Fish or Wildlife and to have the required CITES documentation.
Renaissance neither declared the live stony corals in the shipments from Vietnam nor provided the required CITES documentation for them. Renaissance caused its customs broker to submit to the USFWS a misleading “Invoice & Packing List” that intentionally omitted the live stony corals and listed inaccurate prices. The shipments from Vietnam also were packed in a manner to conceal the live stony corals beneath other properly declared wildlife.
From May 2012 to March 2013, Renaissance, acting as Aqua-Nautic’s agent, imported at least eight shipments from Vietnam containing stony corals that were not declared to the U.S. Fish and Wildlife Service and were not accompanied by the required CITES documentation.
United States District Judge Michael W. Fitzgerald scheduled a November 9 sentencing hearing, at which time each company will face a statutory maximum sentence of five years’ probation and a $1 million fine.
The U.S. Fish and Wildlife Service investigated this case.
Assistant United States Attorneys Heather C. Gorman and Dennis Mitchell of the Environmental and Community Safety Crimes Section are prosecuting this case.
Inland Empire Man Sentenced to 25 Years in Federal Prison for Coercing 9-Year-Old Girl to Produce Child PornographyRead the Press Release
RIVERSIDE, California – A federal judge has ordered a Fontana man to serve a quarter-century in a federal prison for enticing girls as young as 9 years old to film themselves in sexually explicit ways, sometimes in exchange for online gaming currency, the Justice Department announced today.
Jonathan Garcia, 28, was sentenced late Monday afternoon to 300 months in prison. In addition to the 25-year sentence, United States District Judge Jesus G. Bernal ordered that Garcia be on supervised release for 20 years after he is released from custody.
Garcia pleaded guilty on May 2 to one count of production of child pornography. In his plea agreement, Garcia admitted he posed as a 15-year-old boy and had online conversations with a 9-year-old girl. In his plea agreement, Garcia admitted he was enticed the victim to send him “naughty” pictures in exchange for Robux, a currency that can be used on the Roblox online gaming platform.
In November 2019, the victim made three sexually explicit videos that she sent to
Garcia through online messaging services. The victim’s mother discovered the online communications with Garcia and alerted the Ontario Police Department, which opened an investigation.When police executed a search warrant at Garcia’s residence, officers recovered several phones containing child pornography. Furthermore, during an interview with police, Garcia “admitted to contacting other minor girls online for photos and videos since 2015 and estimated that he probably contacted between 50-100 girls,” according to the plea agreement. Law enforcement discovered meticulously maintained digital folders containing numerous photos and videos of girls who were approximately 11 to 14 years old, and who had been enticed and solicited by Garcia to send the images.
Garcia’s “actions involved harm to real, multiple, children,” prosecutors said in a sentencing memorandum filed with the court. “This was not a one-time error in judgement or slip in impulse control but a years-long, premediated, campaign to satisfy his sexual interest.”
Garcia has been in federal custody since his arrest pursuant to a grand jury indictment in March 2020.
The FBI and the Ontario Police Department conducted the investigation in this matter.
Assistant United States Attorney Sonah Lee of the Riverside Branch Office prosecuted this case.
Long-Time Leader of South L.A. Street Gang Sentenced to 35 Years in Federal Prison for Racketeering Activity that Included MurderRead the Press Release
LOS ANGELES – A long-time senior leader of the South Los Angeles-based East Coast Crips (ECC) street gang was sentenced late this afternoon to 420 months in federal prison for a series of criminal acts, including his participation in the 2014 murder of a rival gang member.
Paul Gary Wallace, 56, a.k.a. “Little Doc” and “Uncle Bill,” of South Los Angeles, was sentenced by United States District Judge André Birotte Jr.
At the conclusion of an 11-day trial in April 2022, a federal jury found Wallace guilty of one count of conspiracy to violate the Racketeer Influenced and Corruption Organizations (RICO) Act and one count of using a firearm in furtherance of a violent crime.
; Wallace was a member of the ECC for more than 30 years and rose to become the leader and most influential member of the gang’s “6-Pacc” set, a part of the gang responsible for control over territory in South Los Angeles.
He maintained his control over the gang through violence and intimidation. Wallace murdered and conspired to commit murder to enhance the gang’s violent reputation, to enhance his status within the gang, to retaliate against rivals, and to enforce discipline within the gang.
As a gang leader, Wallace’s other criminal conduct included selling drugs in ECC territory, extorting local businesses, presiding over robberies, and engaging in other acts of violence, including intimidation, assaults and shootings against the gang’s rivals.
The jury specifically found that on November 13, 2014, Wallace participated in the murder of a rival gang member. The murder weapon, an AK-47-style rifle, was later found in Wallace’s van.
“[Wallace] wreaked havoc on the community and neighborhoods controlled by the ECC, destroying lives with his violence and gang activity,” prosecutors argued in a sentencing memorandum. “The impact of his violent conduct on the victims, their families, and the community will be felt for years and, for the most unfortunate, the rest of their lives.”
The FBI and the Los Angeles Police Department investigated this matter.
Assistant United States Attorney Jeffrey M. Chemerinsky of the Violent and Organized Crime Section prosecuted this case.