Central District of California
Press releases recorded for this federal judicial district.
Former Chairman and CEO of Publicly Traded Health Care Company Sentenced to 42 Months in Prison for Insider TradingRead the Press Release
The former CEO and chairman of the board of directors of Ontrak Inc., a Miami-based publicly traded health care company, was sentenced today to 42 months in prison for engaging in an insider trading scheme using Rule 10b5-1 stock trading plans to avoid losses of more than $12.5 million.
Terren Scott Peizer, 65, a resident of Puerto Rico and Santa Monica, was sentenced by U.S. District Judge Dale S. Fischer, who also ordered him to pay a fine of $5.25 million and forfeit more than $12.7 million in ill-gotten gains.
“Terren Peizer betrayed the trust of Ontrak’s investors, trading on inside information to offload company stock before a substantial price decline,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “Today’s just sentence reflects the Criminal Division’s hard work and commitment to prosecuting frauds that harm American investors. The Criminal Division will use the tools at its disposal to combat sophisticated frauds that exploit our securities markets.”
“Insiders must not be allowed to put their thumbs on the scales of the stock market,” said U.S. Attorney Bill Essayli for the Central District of California. “Individuals who impugn the integrity of our markets can and will face prison time for their crimes.”
In May 2021, Peizer entered into his first 10b5-1 trading plan shortly after learning that the relationship between Ontrak and its largest customer was deteriorating, and that the customer had expressed serious reservations about continuing its contract with Ontrak. Peizer later learned that the customer informed Ontrak of its intent to terminate the contract. In August 2021, Peizer entered into his second 10b5-1 trading plan minutes after Ontrak’s chief negotiator for the contract told Peizer that the contract likely would be terminated.
In establishing his 10b5-1 plans, Peizer refused to engage in any “cooling-off” period — the time between when he entered into the plan and when he sold stock — despite warnings from two brokers, a senior Ontrak executive, and attorneys. Instead, Peizer began selling shares of Ontrak on the next trading day after establishing each plan. On Aug. 19, 2021, just six days after Peizer adopted his 10b5-1 plan, Ontrak announced that the customer had terminated its contract and Ontrak’s stock price declined by more than 44%.
In June 2024, Peizer was found guilty after a 10 day jury trial of one count of securities fraud and two counts of insider trading. The case is part of a data-driven initiative led by the Criminal Division’s Fraud Section to identify executive abuses of 10b5-1 trading plans.
The FBI investigated the case. The Justice Department appreciates the substantial assistance of FINRA’s Criminal Prosecution Assistance Group.
Trial Attorney Matthew Reilly of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California prosecuted the case. Assistant U.S. Attorney Jonathan Galatzan for the Central District of California assisted with the forfeiture proceedings.
Former CEO and Chairman of Florida-Based Publicly Traded Health Care Company Sentenced to over 3 Years in Prison for Insider TradingRead the Press Release
First Insider Trading Prosecution Based Exclusively
on Use of Rule 10b5-1 Trading Plans
LOS ANGELES – The former CEO and chairman of the board of directors of Ontrak Inc., a Miami, Florida-based publicly traded health care company, was sentenced today to 42 months in federal prison for engaging in an insider trading scheme – using Rule 10b5-1 stock trading plans – to avoid losses of more than $12.5 million.
Terren Scott Peizer, 65, a resident of Puerto Rico and Santa Monica, was sentenced by United States District Judge Dale S. Fischer, who also ordered him to pay a $5.2 million fine and forfeit $12.7 million in ill-gotten gains.
At the conclusion of a 10-day trial in June 2024, a jury found Peizer guilty of one count of securities fraud and two counts of insider trading.
“Terren Peizer betrayed the trust of Ontrak’s investors, trading on inside information to offload company stock before a substantial price decline,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “Today’s just sentence reflects the Criminal Division’s hard work and commitment to prosecuting frauds that harm American investors. The Criminal Division will use the tools at its disposal to combat sophisticated frauds that exploit our securities markets.”
“Insiders must not be allowed to put their thumbs on the scales of the stock market,” said United States Attorney Bill Essayli. “Individuals who impugn the integrity of our markets can and will face prison time for their crimes.”
The case is part of a data-driven initiative led by the Justice Department’s Criminal Division’s Fraud Section to identify executive abuses of 10b5-1 trading plans. Rule 10b5-1 trading plans can offer an executive a defense to insider trading charges. However, the defense is unavailable if the executive is in possession of material, non-public information at the time he or she enters into the 10b5-1 trading plan. Additionally, a plan does not protect an executive if the trading plan was not entered into in good faith or was entered into as part of an effort or scheme to evade the prohibitions of Rule 10b5-1.
Peizer avoided losses of approximately $12.5 million by entering into two Rule 10b5-1 trading plans while in possession of material, non-public information concerning the serious risk that Ontrak’s then-largest customer would terminate its contract.
In May 2021, Peizer entered into his first 10b5-1 trading plan shortly after learning that the relationship between Ontrak and the customer was deteriorating, and that the customer had expressed serious reservations about continuing its contract with Ontrak. Peizer later learned that the customer informed Ontrak of its intent to terminate the contract. Then, in August 2021, Peizer entered into his second 10b5-1 trading plan approximately one hour after Ontrak’s chief negotiator for the contract confirmed to Peizer that the contract likely would be terminated.
In establishing his 10b5-1 plans, Peizer refused to engage in any “cooling-off” period – the time between when he entered into the plan and when he sold stock – despite warnings from two brokers, a senior Ontrak executive, and attorneys. Instead, Peizer began selling shares of Ontrak on the next trading day after establishing each plan. On August 19, 2021, just six days after Peizer adopted his August 10b5-1 plan, Ontrak announced that the customer had terminated its contract and Ontrak’s stock price declined by more than 44%.
The FBI investigated the case, with substantial assistance from the Financial Industry Regulatory Authority’s (FINRA) Criminal Prosecution Assistance Group.
The U.S. Attorneys Office and Matthew Reilly of the Justice Department’s Criminal Division’s Fraud Section prosecuted this case. Assistant United States Attorney Jonathan S. Galatzan of the Asset Forfeiture and Recovery Section handled the forfeiture proceedings.
California Man Pleads Guilty in Connection with Laundering Proceeds of $16M Hospice Fraud SchemeRead the Press Release
A California man pleaded guilty today to laundering more than $4.6 million in connection with a years-long scheme to defraud Medicare of nearly $16 million through sham hospice companies.
According to court documents, Mihran Panosyan, 46, of Winnetka, worked with others to launder the proceeds of a massive Medicare fraud scheme, transferring the fraudulently obtained funds between multiple accounts before spending them. The scheme comprised three parts. First, three of Panosyan’s co-defendants used the identities of foreign nationals no longer in the United States to operate several sham hospice companies. Panosyan and his co-defendants maintained fraudulent identification documents, bank accounts, checkbooks, and credit and debit cards in the names of purported foreign owners. Second, the co-defendants caused the submission of false and fraudulent claims to Medicare for hospice services for patients who were not terminally ill and who never requested nor received hospice services. As a result, Medicare paid the sham hospices nearly $16 million. Third, Panosyan and his co-defendants laundered the proceeds of the scheme to conceal the source of the funds and their control over them. Panosyan transferred proceeds of the Medicare fraud between accounts in the names of the purported foreign owners, the sham hospices, and other shell corporations, laundering more than $4.6 million in fraudulently obtained funds that he used to purchase real estate, pay for private school for his minor child, and pay for other personal expenses.
Panosyan pleaded guilty to money laundering and is scheduled to be sentenced on Sept. 8. He faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Panosyan’s co-defendant, Petros Fichidzhyan, previously pleaded guilty to health care fraud, aggravated identity theft, and money laundering. Last month, Fichidzhyan was sentenced to 12 years in prison. Trial against the other three defendants in this case is scheduled to begin July 29.
The guilty plea today is the most recent conviction in the Justice Department’s ongoing effort to combat hospice fraud in the greater Los Angeles area. Last year, a doctor was convicted at trial for his role in a scheme to bill Medicare for hospice services patients did not need, and two other defendants were sentenced for their roles in a hospice fraud scheme.
Matthew R. Galeotti, Head of the Justice Department’s Criminal Division, Assistant Director in Charge Akil Davis of the FBI Los Angeles Field Office, and Deputy Inspector General for Investigations Christian J. Schrank of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
The FBI and HHS-OIG are investigating the case.
Trial Attorneys Michael Bacharach, Sarah E. Edwards, and Allison L. McGuire of the Criminal Division’s Fraud Section are prosecuting the case, and Assistant U.S. Attorney Tara B. Vavere of the U.S. Attorney’s Office for the Central District of California is handling asset forfeiture.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of 9 strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Riverside County Woman Sentenced to 7 Years in Prison for Running $1.7 Million COVID-19 Benefits Fraud She Advertised on InstagramRead the Press Release
LOS ANGELES – An Inland Empire woman was sentenced today to 84 months in federal prison for fraudulently obtaining $1.7 million in COVID-19 pandemic-related jobless benefits, federally-guaranteed small business loans, California Small Business COVID-19 relief grants, and Los Angeles County economic opportunity grants.
Jasmine Unique Mallard-McCarter, 30, a.k.a. “JassyMC,” of Eastvale, was sentenced by United States District Judge Maame Ewusi-Mensah Frimpong, who also ordered her to pay $1,765,407 in restitution.
McCarter pleaded guilty on February 28 to one count of conspiracy to commit wire fraud.
McCarter impersonated others to apply online for government benefits that she used for herself. McCarter also used the personal identifying information provided by her co-conspirators to apply for government benefits on their behalf, knowing those co-conspirators were not eligible for those benefits.
McCarter charged fees to instruct others how to apply for government benefits for which they were not eligible without getting caught. Also, for a fee, McCarter served as a broker for counterfeit documents, such as Social Security cards, driver’s licenses, IRS Forms 1040, W-2s, bank statements, education degrees and transcripts, pay stubs, and doctors’ notes for handicapped placards. In some instances, the McCarter and her co-conspirators used the counterfeit documents to trick the government into paying unjustified benefits.
McCarter advertised her fraud services on Instragram, using handles “JassyMc” and “EliteRealEstateandBusiness.” McCarter referred to herself as the “Jass of All Trades” in social media posts, because she could file fraudulent unemployment insurance applications, file grant applications, and broker counterfeit documents and identification in return for a fee.
According to McCarter’s Instagram posts, she charged a fee for introducing customers to her connection at the California Department of Motor Vehicles, who could help bypass requirements for smog checks, insurance, and registration.
The U.S. Department of Labor – Office of Inspector General, Employee Development Department Investigations Division, U.S. Small Business Administration – Office of Inspector General, U.S. Department of Homeland Security – Office of Inspector General, FBI, Homeland Security Investigations, and United States Secret Service investigated this matter.
Assistant United States Attorney Andrew Brown of the Major Frauds Section prosecuted this case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolster efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
On September 15, 2022, the Attorney General selected the U.S. Attorney’s Offices for the Central and Eastern Districts of California to jointly head one of the three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. The Strike Force combines law enforcement and prosecutorial resources and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors, as well as those who committed instances of pandemic relief fraud. The Strike Force uses prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds. Additional information regarding the Strike Force may be found at https://www.justice.gov/opa/pr/justice-department-announces-covid-19-fraud-strike-force-teams.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Two Southern California Men Arrested on Charges Alleging They Committed the Largest Jewelry Heist in U.S. HistoryRead the Press Release
LOS ANGELES – Two Southern California residents are expected to appear in federal court today after being arrested on a federal indictment charging them with breaking into a Brinks semitruck and stole approximately $100 million worth of gold, diamonds, rubies, emeralds, and luxury watches that were in transport from an international jewelry show near San Francisco in July 2022 – in what is considered to be the largest jewelry heist in U.S. history. Some of that jewelry was recovered during the execution of search warrants on June 16.
The indictment, returned June 11, charges the following seven defendants with two counts of conspiracy to commit theft from interstate and foreign shipment and theft from interstate and foreign shipment:
- Carlos Victor Mestanza Cercado, 31, of Pasadena;
- Jazael Padilla Resto, a.k.a. “Ricardo Noel Moya,” “Ricardo Barbosa,” and “Alberto Javier Loza Chamorro,” 36, of Boyle Heights and currently an inmate in Arizona state prison;
- Pablo Raul Lugo Larroig, a.k.a. “Walter Loza,” 41, of Rialto;
- Victor Hugo Valencia Solorzano, 60, of the Rampart Village neighborhood of Los Angeles;
- Jorge Enrique Alban, 33, of South Los Angeles;
- Jeson Nelon Presilla Flores, 42, of Upland; and
- Eduardo Macias Ibarra, 36, of the Westlake neighborhood of Los Angeles.
Mestanza, Padilla, Lugo, Valencia, and Alban also are charged with two counts of conspiracy to interfere with commerce by robbery and interference with commerce by robbery (Hobbs Act), as well as additional counts of theft from interstate and foreign shipment.
Padilla is currently in Arizona state prison serving a prison sentence for third-degree burglary with unlawful entry. He is expected to appear in federal court in the coming weeks.
According to the indictment, on the evening of July 10, 2022, Mestanza, Lugo, and Alban scouted a Brinks semitruck leaving an international jewelry show in San Mateo, California with 73 bags containing millions of dollars of jewelry. From the evening of July 10 to the morning of July 11, Mestanza, Padilla, Lugo, Valencia, Presilla, Macias, and other co-conspirators followed the Brinks truck approximately 300 miles from that jewelry show in San Mateo to rest stops in Buttonwillow and Lebec, north of Los Angeles.
While the truck was stopped in Lebec, those defendants stole 24 bags from the Brinks truck containing approximately $100 million of jewelry. In the following days, Mestanza, Presilla, Alban, Lugo, and Valencia all deactivated their cellphone numbers that they had been using during the heist.
Mestanza, Padilla, Lugo, and Valencia are also alleged to have stolen $240,573 worth of Samsung electronics from an interstate cargo shipment in Ontario on March 2, 2022. Those same defendants, and Alban, allegedly then robbed a box truck driver of $57,377 worth of Apple AirTags. One of the robbers brandished a knife and threatened the driver.
Then, on May 25, 2022, the defendants allegedly attempted to steal from one truck at a Fontana rest stop using a crowbar to break in. Shortly after, the same defendants successfully stole approximately $14,081 worth of Samsung electronics from another interstate shipment in Fontana.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
If convicted, Mestanza, Padilla, Lugo, Valencia, and Alban would face statutory maximum sentences of 20 years in federal prison for each robbery charge, and all defendants would face a statutory maximum sentence of five years in federal prison for the theft conspiracy charge and 10 years in federal prison for each theft charge.
The FBI, the Los Angeles County Sheriff’s Department, the Fontana Police Department, and the Ontario Police Department are investigating this matter.
Assistant United States Attorneys Jena A. MacCabe and Kevin J. Butler of the Violent and Organized Crime Section are prosecuting this case.
Corporate Executives Sentenced to Federal Prison for Failing to Report Defective Dehumidifiers Linked to More Than 450 FiresRead the Press Release
LOS ANGELES – Two corporate executives were sentenced today to federal prison terms for conspiring to defraud the United States and for failing to report information about defective dehumidifiers linked to multiple fires in the first criminal enforcement action against corporate executives for failing to report required information ever brought under the Consumer Product Safety Act. (CPSA)
Simon Chu, 70, of Pomona, was sentenced to 38 months in federal prison and was fined $5,000 by United States District Judge Dale S. Fischer. Judge Fischer today also sentenced Charley Loh, 67, of Arcadia, to 40 months in federal prison and fined him $12,000.
The executives each were found guilty by a jury in November 2023 of one count of conspiracy to defraud the United States Consumer Product Safety Commission (CPSC) and one count of failure to furnish information as required by the CPSA.
“Federal law requires companies to report potentially dangerous products to the Consumer Product Safety Commission to help protect consumers from harm,” said Assistant Attorney General Brett Shumate of the Justice Department’s Civil Division. “The Justice Department will continue to investigate and bring to justice companies and individuals who willfully evade these requirements and put the public in danger.”
“Corporate executives who choose to ignore the law will be held accountable – especially when death and serious injuries result,” said United States Attorney Bill Essayli. “By putting profits over the safety of others, these defendants created serious risks to consumers, and we will continue to prosecute those who endanger the public.”
“These Chinese-made products were hazardous, and the defendants knew it,” said CPSC Acting Chairman Peter Feldman. “Today’s sentences are a clear message that the CPSC will take a hard line against executives who break American laws and endanger families. I commend the CPSC and Justice Department teams for their work to secure this outcome.”
The defective dehumidifiers sold by Chu’s and Loh’s two corporations were included in multiple recalls of a larger number of defective dehumidifiers manufactured by Gree Electric Appliances Inc. of Zhuhai (Gree Zhuhai) in China. Recall notes stated that more than 450 reported fires and millions of dollars in property damage have been linked to the recalled Gree Zhuhai dehumidifiers.
The most recent recall announcements for the Gree dehumidifiers can be found here and here. The CPSC’s most recent warning about the recalled Gree dehumidifiers is here.
Chu was part owner and chief administrative officer of Gree USA Inc. and another corporation in the City of Industry, that distributed and sold to retailers for consumer purchase dehumidifiers that were made by Gree Zhuhai in China. Loh was part owner and CEO of the same two corporations.
The CPSA requires manufacturers, importers and distributors of consumer products to report “immediately” to the CPSC information that reasonably supports the conclusion that a product contains a defect that could create a substantial product hazard or creates an unreasonable risk of serious injury or death. This duty also applies to the individual directors, officers, and agents of those companies.
By September 2012, Chu, Loh and their companies received multiple reports that their Chinese dehumidifiers were defective, dangerous and could catch fire. They also knew that they were required to report this product safety information to the CPSC immediately. Despite their knowledge of consumer complaints of dehumidifier fires and test results showing defects in the dehumidifiers, Chu and Loh failed to disclose their dehumidifiers’ defects and hazards for at least six months while they continued to sell their products to retailers, for resale to consumers.
The jury acquitted both defendants of one count of wire fraud.
Gree USA was sentenced in April 2023 to pay a $500,000 criminal fine after pleading guilty to failing to notify the CPSC about the problems with the dehumidifiers. The fine, along with provisions to pay restitution to victims, was part of a $91 million criminal resolution with Gree USA, Gree Zhuhai and another related Gree company, Hong Kong Gree Electric Appliances Sales Co. Ltd.
Homeland Security Investigations investigated this matter.
Assistant United States Attorney Dennis Mitchell of the Environmental Crimes and Consumer Protection Section, and Justice Department Trial Attorneys Natalie Sanders, Speare Hodges, and Stephen Gripkey of the Civil Division’s Consumer Protection Branch prosecuted this case, with the assistance of Patricia Vieira of the CPSC’s Office of General Counsel.
Illegal Alien in Los Angeles Charged with Spitting on ICE OfficerRead the Press Release
LOS ANGELES – An illegal alien from Mexico who is living in Los Angeles was charged today with a felony count for allegedly spitting on a federal agent executing a warrant for his arrest earlier this week.
Omar Pulido Bastida, 41, of the Historic South Central neighborhood of Los Angeles, is charged with one count of assault of a federal employee, a crime that carries a statutory maximum sentence of eight years in federal prison.
Pulido, who earlier this year separately was charged with being an illegal alien found in the United States following removal, was arrested and made his initial appearance on Tuesday in United States District Court in Santa Ana. A federal magistrate judge order him detained and scheduled his arraignment for July 16 in U.S. District Court in Los Angeles. He is expected to make his initial appearance in this case in the coming days.
“This defendant found out the hard way: When you spit, we hit – with a felony charge,” said United States Attorney Bill Essayli. “Law enforcement officers risk their lives and safety to uphold the law. To treat them with the disrespect, like this defendant did, mocks our great nation and such behavior will be punished accordingly.”
According to an affidavit filed with the complaint, on Tuesday morning, a United States Immigration and Customs Enforcement (ICE) deportation officer arrived at Pulido’s residence to execute the arrest warrant on the illegal re-entry charge. After knocking on the door, the officer identified him as law enforcement with a warrant. Pulido, looking down on the officer from a second-story balcony, responded by insulting the officer.
Several minutes later, the officer saw Pulido open the front door, which had an iron security gate separating the two men. When the officer told Pulido there was an arrest warrant for him, Pulido said, “No, get out of here. I know my rights. I’m calling my lawyer” then spat through the iron security gate onto the officer. At the time, the officer was leaning his head against the grated security gate to be able to see Pulido and felt the spit on his face. After spitting on the officer, Pulido retreated back into the residence.
Shortly after, ICE personnel forced entry into the residence and found Pulido hiding in a second-story storage room. Pulido then said, “OK, you got me,” and was arrested.
A criminal complaint contains allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Homeland Security Investigations is investigating this matter.
The Domestic Security and Immigration Crimes Section is prosecuting this case.
Federal Complaints Charge SoCal Residents with Assault, Throwing Molotov Cocktails at Officers During Recent Civil UnrestRead the Press Release
LOS ANGELES – Two Los Angeles County men -- one of them an illegal alien -- have been charged via federal criminal complaints with possessing Molotov cocktails during the recent civil unrest in downtown Los Angeles and Paramount stemming from protests against federal immigration enforcement operations, the Justice Department announced today.
The following defendants have been charged with possession of an unregistered destructive device, which carries a statutory maximum sentence of 10 years in federal prison:
- Emiliano Garduno Galvez, 23, of Paramount, who is an illegal immigrant from Mexico; and
- Wrackkie Quiogue, 27, of Long Beach.
Both defendants are in custody. Quiogue was ordered detained at his initial court appearance on Tuesday. Galvez is expected to make their initial appearance in United States District Court in the coming days.
“When protesting crosses the line into violence, the penalties will be severe,” said United States Attorney Bill Essayli. “Possessing a Molotov cocktail or another destructive device is punishable by up to 10 years in federal prison. The vile attacks such as the ones alleged in these complaints could have resulted in life-altering or life-ending injuries to police officers, sheriff’s deputies, and innocent bystanders. We will not relent in dispensing swift justice to criminals who take advantage of our country’s freedoms to engage in lawlessness.”
According to an affidavit filed with the complaint charging Galvez, on the evening of June 7 in Paramount, Galvez lit and threw a Molotov cocktail over a wall where Los Angeles County Sheriff’s Department (LASD) deputies were engaging in crowd control activities then ran away. A violent crowd had assembled in that location earlier in the day near a staging area for federal agents who were preparing for immigration enforcement operations.
According to an affidavit filed with the complaint charging Quiogue, on June 8, Quiogue possessed a Molotov cocktail while holding a lighter during civil unrest near federal buildings in downtown Los Angeles’s Civic Center. Los Angeles Police Department officers saw Quiogue with the device and quickly arrested him. As Quiogue attempted to flee arrest, he threw the Molotov.
Charged separately via criminal complaints are the following defendants, who are charged with assault on a federal officer, a misdemeanor punishable by up to one year in federal prison, stemming from violence at recent rallies in Santa Ana:
- Christian Andres Garcia, 32, of Anaheim; and
- Rene Luna, 43, of Orange.
Both defendants are expected to make their initial appearances in United States District Court in Santa Ana in the coming days.
According to court documents, on June 9, Garcia threw objects at law enforcement personnel stationed outside a Homeland Security Investigations (HSI) office in Santa Ana. Luna allegedly threw water bottles and beer cans at officers during the same protest. Both defendants were arrested.
A criminal complaint contains allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Bureau of Alcohol, Tobacco, Firearms and Explosives are investigating Quiogue and Galvez with the assistance of the Los Angeles Police Department and the Los Angeles County Sheriff’s Department. HSI is investigating Garcia and Luna. The FBI is assisting with the Galvez investigation.
Assistant United States Attorney David C. Lachman of the Terrorism and Export Crimes Section is prosecuting Quiogue. Assistant United States Attorney Jenna W. Long, also of the Terrorism and Export Crimes Section, is prosecuting Galvez. Assistant United States Attorney Brian Yang of the Terrorism and Export Crimes Section is prosecuting Garcia and Luna.
Commercial Real Estate Broker Pleads Guilty to Obstructing the IRSRead the Press Release
LOS ANGELES – A San Gabriel Valley man and commercial real estate broker has pleaded guilty to a years-long pattern of obstructing the IRS from collecting taxes he owed, leading that agency to collect $770 in tax liabilities when he earned approximately $1 million from his employment during that time, the Justice Department announced today.
Gabriel David Guerrero, of Pasadena, pleaded guilty on Monday to one count of corruptly obstructing or impeding, or endeavoring to obstruct or impede, the due administration of the Internal Revenue Code. Guerrero is free on $50,000 bond.
According to his plea agreement, Guerrero is a commercial real estate broker who for years did not file timely federal individual income tax returns, specifically for the years 1998, 1999, and 2001 through 2005. He later owed tax liabilities for the years 2012 and 2013.
After the IRS assessed taxes against Guerrero and attempted to collect them him via the sending of dozens of notices, Guerrero took steps to conceal his income and assets from the IRS. For example, he made extensive use of cash and cashier’s checks; submitted a false form to the IRS that significantly understated his income; and used a nominee bank account to deposit income.
Despite the IRS’s issuance of dozens of levies to bank accounts and brokers with whom Guerrero worked throughout the collection action from October 2013 to November 2017, the IRS obtained only $770 towards Guerrero’s tax liabilities for 1998, 1999, 2001 through 2005, 2012, and 2013 despite Guerrero earning approximately $1 million in income from his work as a commercial real estate broker over that same time frame.
United States District Judge Percy Anderson scheduled a September 15 sentencing hearing, at which time Guerrero will face a statutory maximum sentence of three years in federal prison.
IRS Criminal Investigation is investigating this matter.
Assistant United States Attorney Steven M. Arkow of the Major Frauds Section and Justice Department Trial Attorneys Robert Kemins and Christopher Gerace of the Tax Division are prosecuting this case.
California Commercial Real Estate Agent Pleads Guilty to Obstructing the IRSRead the Press Release
A California man pleaded guilty yesterday to obstructing the IRS’s efforts to collect hundreds of thousands of dollars in unpaid taxes.
The following is according to court documents and statements made in court: Gabriel David Guerrero, a resident of Los Angeles County, is a real estate broker who did not timely file individual income tax returns for many years. After the IRS assessed taxes against Guerrero and attempted to collect them him, Guerrero took steps to conceal his income and assets from the IRS. For example, he made extensive use of cash and cashier’s checks; submitted a false form to the IRS that significantly understated his income; and used a nominee bank account to deposit income.
He is scheduled to be sentenced on Sept. 15 and faces a maximum penalty of three years in prison. Guerrero also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and U.S. Attorney Bilal A. Essayli for the Central District of California made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Robert Kemins and Christopher Gerace of the Tax Division along with Assistant U.S. Attorney Steven Arkow for the District of Central District of California are prosecuting the case.
Northridge Man Pleads Guilty to Possessing Meth-Caked Clothes – Including a Cow Pajama Onesie – in Suitcases Checked at LAXRead the Press Release
LOS ANGELES – A San Fernando Valley man pleaded guilty today to a federal criminal charge for possessing two suitcases containing more than a dozen clothing items – including a cow pajama onesie – caked in methamphetamine while preparing to board a flight from Los Angeles International Airport (LAX) to Australia late last year.
Raj Matharu, 31, of Northridge, pleaded guilty to one count of possession with intent to distribute methamphetamine. He remains free on $10,000 bond.
According to his plea agreement, on November 6, 2024, Matharu attempted to travel from Los Angeles to Sydney via airplane. He carried with him two suitcases filled with clothing that had been coated with nearly 1.1 kilograms (2.4 pounds) of methamphetamine. After arriving at LAX, Matharu tried to check his bags but was told they were overweight. He then opened both his suitcases and transferred contents from one to the other, all of which was captured by airport surveillance cameras. He then successfully checked his luggage containing the meth-soaked clothes.
X-ray screening revealed abnormalities in Matharu’s suitcases, and they were flagged for secondary review. Officers inspected one suitcase and felt stiff clothing. A K9 unit was called, and Matharu was intercepted by officers after he crossed the jet bridge to board his Australia-bound flight. He was brought to the screening area, where he confirmed the two bags were his and that he packed them himself.
Officers opened the bags in front of Matharu, where they found stiffly dried white clothing caked in a powdery substance, as well as loose white residue on the lining and throughout both cases, all of which tested positive for methamphetamine. Further extraction of the substance from six of a total of 17 items in the suitcases and additional laboratory testing revealed that those items contained nearly 1.1 kilograms of methamphetamine.
Matharu admitted in his plea agreement that, at the time he possessed the suitcases, he knew he was transporting methamphetamine or some other federally controlled substance and that he intended to distribute it in Australia.
United States District Judge Dale S. Fischer scheduled an October 20 sentencing hearing, at which time Matharu will face a mandatory minimum sentence of 10 years in federal prison and a statutory maximum sentence of life in federal prison.
Homeland Security Investigations investigated this matter. United States Customs and Border Protection provided assistance.
Assistant United States Attorney Nicholas G. Purcell of the General Crimes Section is prosecuting this case.
Former Orange County Supervisor Sentenced to 5 Years in Prison for Bribery Scheme Involving More Than $10 Million in COVID FundsRead the Press Release
SANTA ANA, California – A former politician who served on the Orange County Board of Supervisors was sentenced today to 60 months in federal prison for accepting more than $550,000 in bribes for directing and voting in favor of more than $10 million in COVID-19 pandemic relief funds to a charity affiliated with one of his daughters.
Andrew Hoang Do, 62, of Santa Ana, was sentenced by United States District Judge James V. Selna, who scheduled a restitution hearing for August 11.
Do pleaded guilty in October 2024 to one count of conspiracy to commit bribery concerning programs receiving federal funds.
“Elected officials have a sworn duty to put their constituents’ interests ahead of their own,” said United States Attorney Bill Essayli. “Public money intended to assist aging and ailing pandemic victims instead filled the coffers of Do, his family, and insiders. I commend our prosecutors and law enforcement partners for their work on this important case and for helping to remove a corrupt politician from his seat of power.”
“As a county supervisor, Andrew Do transformed the County of Orange into an ATM available to his insiders, his loved ones, and himself, withdrawing millions of dollars to buy houses, lavish dinners, and expensive wine while the elderly, the sick, and the vulnerable who depended on Andrew Do were left to fend for themselves,” said Orange County District Attorney Todd Spitzer. “We, along with our federal partners, are continuing to peel back the layers of conspiracy to hold every thief accountable and return those stolen monies to the communities to which they belonged.”
“Mr. Do abused his powerful position as a county supervisor to profit personally at the expense of individuals in need, as well as the residents of Orange County, who deserve honest leadership,” said Akil Davis, the Assistant Director in Charge of the FBI's Los Angeles Field Office. “The FBI will continue to pursue corrupt public officials whose actions erode trust in government.”
From February 2015 until his resignation in October 2024, Do was one of five supervisors on the Orange County Board of Supervisors, which is responsible for the county’s $9 billion annual budget. As supervisor for the First District, Do represented the cities of Cypress, Fountain Valley, Garden Grove, Huntington Beach, La Palma, Los Alamitos, Midway City, Rossmoor, Seal Beach, and Westminster.
Beginning in 2020, in exchange for more than $550,000 in bribes, Do voted in favor of and directed millions of dollars in COVID-related funds to the Viet America Society (VAS), a charity affiliated with his daughter. Do directed and worked together with other county employees to approve contracts with – and payments to – VAS. Do further admitted he acted corruptly and abused his position of trust as a county supervisor.
Shortly after receiving the COVID-related public funds from the county government – funds that were intended to provide meals to the elderly and disabled – VAS from April 2021 to February 2024 paid a business identified in court documents as “Company #1” $100,000 or more per month, which totaled approximately $3,804,000. In September 2021, VAS increased its payments to Company #1 from $100,000 to $108,000 per month. Company #1 then began paying Rhiannon Do – Do’s daughter – $8,000 per month, totaling by February 2024 approximately $224,000.
In addition to the $8,000 monthly payments that Company #1 had made to Do’s daughter, in July 2023, Company #1 also transferred a total of $381,500 from the funds it had received from VAS to an escrow company. In July 2023, Do’s daughter used the escrow account funds to purchase a home, in her name, in Tustin for $1,035,000. As part of that transaction, a mortgage for more than $600,000 was obtained by a loan application that contained false information and with fabricated documents. Do’s daughter has admitted in court documents that her conduct was criminal and violated federal and state law.
The $381,500 from Company #1 that his daughter used to purchase the Tustin house in 2023 was a disguised bribe to Do. An additional $100,000 in payments sent to his other daughter, including three $25,000 checks from Company #2 – an air conditioning company that had been paid by VAS – also were bribes to Do.
Some of the bribe funds that had been funneled to his daughters were spent for his direct benefit. For example, during 2022, a total of $14,849 of funds that had been funneled to Do’s daughters was used to make property tax payments for properties in Orange County owned by Do and his wife. Approximately $15,000 was used to pay for one of Do’s credit card bills.
Do knew that VAS was not providing all the meals for which the county had paid VAS. Instead, much of the funds were used for the benefit of insiders, including to buy real estate in the name of both Do’s daughter and Company #1, bribe payments to both of Do’s daughters, payments to other conspirators, payments to other companies affiliated with VAS’s listed officers, and through hundreds of thousands of dollars in cash withdrawals.
Do forfeited assets connected to the bribery scheme, including the Tustin property his daughter purchased in 2023. As part of his daughter’s related diversion agreement, she forfeited the Tustin property. The plea agreement requires Do to pay full restitution, including the bribe money he and his daughters received. In August 2024, the government seized more than $2.4 million from VAS’s and Company #1’s bank accounts.
Do resigned from the Orange County Board of Supervisors as part of a related agreement with the Orange County District Attorney’s Office (OCDA). He also agreed to forfeit any pension credit for the time where he participated in the bribery conspiracy.
The FBI; the Orange County District Attorney’s Office Bureau of Investigation; the Federal Deposit Insurance Corp. Office of the Inspector General; IRS Criminal Investigation; and the United States Department of Education Office of the Inspector General investigated this matter.
This matter is being jointly prosecuted by the United States Attorney’s Office and OCDA. The prosecution is being led by Assistant United States Attorneys Nandor F.R. Kiss, Rosalind Wang, and Tara Vavere of the United States Attorney’s Office and Senior Deputy District Attorney Avery T. Harrison and Deputy District Attorney Anthony J. Schlehner of the OCDA.
Any member of the public who has information related to this or any other public corruption matter in Orange County is encouraged to send information to the FBI’s email tip line at https://tips.fbi.gov and/or to contact the FBI’s Los Angeles Field Office at (310) 477-6565.
Former CEO of Crescenta Valley Investment Firm Sentenced to over 3 Years in Federal Prison for Fraudulently Charging Clients Millions of DollarsRead the Press Release
LOS ANGELES – The founder and former CEO of an investment firm that specializes in debt instruments was sentenced today to 40 months in federal prison for falsifying financial records to fraudulently inflate the value of the funds he managed, allowing him to charge investors millions of dollars in unauthorized fees.
Brendan Ross, 52, of La Cañada Flintridge, was sentenced by United States District Judge Dale S. Fischer, who also ordered him to pay $5.9 million in restitution.
Ross pleaded guilty in August 2022 to one count of wire fraud.
In 2012, Ross founded Direct Lending Investments LLC (DLI), a La Cañada Flintridge-based investment firm. He served as the firm’s sole owner and CEO until his resignation in March 2019.
By the summer of 2017, the firm had more than $1 billion in assets under management. According to the indictment, Ross directed DLI to invest the funds’ assets in, among other things, a company that loaned money to small businesses and retailers. The DLI funds made money when the loans performed, meaning that the borrowers made timely payments. Rather than disclose some of the loans were not performing, Ross falsified monthly reports to make it appear borrowers were making payments. The “payments” came from fee rebates given by the company originating the loans.
By lying about the true status of the loans, Ross caused DLI to overstate the value of these loans on the funds’ books and fraudulently inflate the funds’ value. Specifically, Ross caused the monthly asset values of the funds to be cumulatively inflated by more than $300 million over the course of about four years. By fraudulently inflating the value of the funds, Ross was able to collect millions of dollars in fees he otherwise would not have been able to charge to clients.
To further his scheme and help conceal it, Ross arranged for the sale of approximately $55 million of the loans to a third-party buyer in the summer of 2017. Ross once again inflated the value of these loans by lying about their status, falsely telling the buyer that borrowers had been making payments on many of these loans.
“These losses reflect intense financial hardships, including the decimation of retirement and investment accounts, as well as negative professional and reputational consequences suffered by many of the investors…and even DLI employees who were defrauded by [Ross],” prosecutors argued in a sentencing memorandum.
The FBI investigated this matter. The U.S. Securities and Exchange Commission, which filed a civil complaint against Ross in August 2020, provided substantial assistance.
Assistant United States Attorney Scott Paetty of the Major Frauds Section prosecuted this case.
Five Men Plead Guilty for Their Roles in Global Digital Asset Investment Scam Conspiracy Resulting in Theft of More than $36.9 Million from VictimsRead the Press Release
Five men have pleaded guilty for their roles in laundering more than $36.9 million from victims of an international digital asset investment scam conspiracy that was carried out from scam centers in Cambodia.
According to court documents, Joseph Wong, 33, of Alhambra, California; Yicheng Zhang, 39, of China; Jose Somarriba, 55, of Los Angeles; Shengsheng He, 39, of La Puente, California; and Jingliang Su, 44, of China and Turkey, were part of an international criminal network that induced U.S. victims, believing they were investing in digital assets, to transfer funds to accounts controlled by co-conspirators and that laundered victim money through U.S. shell companies, international bank accounts, and digital asset wallets.
As part of the conspiracy, co-conspirators residing overseas would contact U.S. victims directly through unsolicited social media interactions, telephone calls, text messages, and online dating services and gain the victims’ trust. The co-conspirators then promoted fraudulent digital asset investments to the victims. Scammers would tell victims that their investments were appreciating in value when, in fact, those funds were stolen and not invested at all. Instead, more than $36.9 million in victim funds were transferred from U.S. bank accounts controlled by the co-conspirators to a single account at Deltec Bank in the Bahamas, opened in the name of Axis Digital Limited. Somarriba, He, and Su directed Deltec Bank to convert victim funds to the stablecoin Tether (USDT) and to transfer the converted funds to a digital asset wallet controlled by individuals in Cambodia. From there, co-conspirators in Cambodia transferred the USDT to the leaders of scam centers throughout the region including in Sihanoukville, Cambodia.
Somarriba and He founded Axis Digital and opened the Deltec Bank account. Su joined Axis Digital as a director and participated in the digital asset conversions and transfers of victim funds.
Wong managed a network of money launderers in Los Angeles who registered shell companies, opened U.S. bank accounts, and wired victim funds to international bank accounts. Zhang opened and operated two U.S. bank accounts used to launder victim proceeds.
Zhang and Wong pleaded guilty to money laundering conspiracy. They each face a maximum penalty of 20 years in prison. Zhang has been in custody since May 2024. He, Somarriba, and Su pleaded guilty to conspiracy to operate an unlicensed money services business. He, Somarriba, and Su each face a maximum penalty of five years in prison. Su has been in custody since November 2024. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Eight co-conspirators have pleaded guilty so far, including Daren Li, a national of China and St. Kitts and Nevis and former resident of Cambodia and the United Arab Emirates who has been in U.S. custody since April 2024, and Lu Zhang, a Chinese national illegally in the United States who managed a network of U.S.-based money launderers, who pleaded guilty to conspiracy to commit money laundering on Nov. 12, 2024 and May 13, 2024, respectively.
Matthew R. Galeotti, Head of the Justice Department’s Criminal Division, U.S. Attorney Bilal A. Essayli for the Central District of California, and Special Agent in Charge William Mancino of the U.S. Secret Service (USSS) Criminal Investigative Division made the announcement.
USSS’s Global Investigative Operations Center is investigating the case. The Homeland Security Investigations’ El Camino Real Financial Crimes Task Force, Customs and Border Protection’s National Targeting Center, U.S. Department of State’s Diplomatic Security Service, Dominican National Police, and U.S. Marshals Service provided valuable assistance.
Trial Attorneys Stefanie Schwartz of the Criminal Division’s Computer Crime and Intellectual Property Section, Tamara Livshiz of the Justice Department's Criminal Division, and Assistant U.S. Attorneys Maxwell Coll, Nisha Chandran, and Alexander Gorin for the Central District of California are prosecuting these cases.
If you or someone you know is a victim of a digital asset investment fraud, report it to IC3.gov.
Chinese National Pleads Guilty to Acting at the Direction of North Korea to Export Firearms, Ammo, and Technology to North KoreaRead the Press Release
LOS ANGELES – An illegal alien from China pleaded guilty today to federal criminal charges for illegally exporting firearms, ammunition and other military items to North Korea by concealing them inside shipping containers that departed from the Port of Long Beach, and for committing this crime at the direction of North Korean government officials, who wired him approximately $2 million for his efforts.
Shenghua Wen, 42, of Ontario, pleaded guilty to one count of conspiracy to violate the International Emergency Economic Powers Act (IEEPA) and one count of acting as an illegal agent of a foreign government.
Wen has been in federal custody since his arrest in December 2024.
According to his plea agreement, Wen is a citizen of the People’s Republic of China who entered the United States in 2012 on a student visa and remained in the U.S. illegally after his student visa expired in December 2013.
Prior to entering the United States, Wen met with officials from North Korea’s government at a North Korean embassy in China. These government officials directed Wen to procure goods on behalf of North Korea.
In 2022, two North Korean government officials contacted Wen through an online messaging platform and instructed him to buy and smuggle firearms and other goods – including sensitive technology – from the United States to North Korea via China.
In 2023, at the direction of North Korean government officials, Wen shipped at least three containers of firearms out of the Port of Long Beach to China en route to their ultimate destination in North Korea. Wen took steps to conceal that he was illegally shipping firearms to North Korea by, among other things, filing false export information regarding the contents of the containers.
In May 2023, Wen purchased a firearms business in Houston, paid for with money sent through intermediaries by one of Wen’s North Korean contacts. Wen purchased many of the firearms he sent to North Korea in Texas and drove the firearms from Texas to California, where he arranged for them to be shipped.
In December 2023, one of Wen’s weapons shipments – which falsely reported to U.S. officials that it contained a refrigerator – left the Port of Long Beach and arrived in Hong Kong in January 2024. This weapons shipment was later transported from Hong Kong to Nampo, North Korea.
In September 2024, Wen – once again acting at the direction of North Korean officials – bought approximately 60,000 rounds of 9mm ammunition that he intended to ship to North Korea.
In furtherance of the conspiracy and at the direction of North Korean officials, Wen also obtained sensitive technology that he intended to send to North Korea. This technology included a chemical threat identification device and a handheld broadband receiver that detects known, unknown, illegal, disruptive or interfering transmissions.
Wen also acquired or offered to acquire a civilian airplane engine and a thermal imaging system that could be mounted on a drone, helicopter, or other aircraft, and could be used for reconnaissance and target identification.
During the scheme, North Korean officials wired approximately $2 million to Wen to procure firearms and other goods for their government.
Wen admitted that at all relevant times he knew that it was illegal to ship firearms, ammunition, and sensitive technology to North Korea. He also admitted to never having the required licenses to export ammunition, firearms, and the above-described devices to North Korea. He further admitted to acting at the direction of North Korean government officials and that he had not provided notification to the Attorney General of the United States that he was acting in the United States at the direction and control of North Korea as required by law.
United States District Judge Stephen V. Wilson scheduled an August 18 sentencing hearing, at which time Wen will face a statutory maximum sentence of 20 years in federal prison on the count of violating the International Emergency Economic Powers Act and up to 10 years in federal prison on the count of being an illegal agent of a foreign government.
The FBI; Homeland Security Investigations; DCIS; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Department of Commerce Bureau of Industry and Security investigated this matter.
Assistant United States Attorney Sarah E. Gerdes of the Terrorism and Export Crimes Section and Trial Attorney Ahmed Almudallal of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
Chinese National Pleads Guilty to Acting at the Direction of North Korea to Export Firearms, Ammo, and Technology to North KoreaRead the Press Release
An illegal alien from China pleaded guilty today to federal criminal charges for illegally exporting firearms, ammunition and other military items to North Korea by concealing them inside shipping containers that departed from the Port of Long Beach, California, and for committing this crime at the direction of North Korean government officials, who wired him approximately $2 million for his efforts.
Shenghua Wen, 42, of Ontario, California, pleaded guilty to one count of conspiracy to violate the International Emergency Economic Powers Act (IEEPA) and one count of acting as an illegal agent of a foreign government. Wen has been in federal custody since his arrest in December 2024.
According to his plea agreement, Wen is a citizen of the People’s Republic of China who entered the United States in 2012 on a student visa and remained in the U.S. illegally after his student visa expired in December 2013.
Prior to entering the United States, Wen met with officials from North Korea’s government at a North Korean embassy in China. These government officials directed Wen to procure goods on behalf of North Korea.
In 2022, two North Korean government officials contacted Wen through an online messaging platform and instructed him to buy and smuggle firearms and other goods – including sensitive technology – from the United States to North Korea via China.
In 2023, at the direction of North Korean government officials, Wen shipped at least three containers of firearms out of the Port of Long Beach to China en route to their ultimate destination in North Korea. Wen took steps to conceal that he was illegally shipping firearms to North Korea by, among other things, filing false export information regarding the contents of the containers.
In May 2023, Wen purchased a firearms business in Houston, paid for with money sent through intermediaries by one of Wen’s North Korean contacts. Wen purchased many of the firearms he sent to North Korea in Texas and drove the firearms from Texas to California, where he arranged for them to be shipped.
In December 2023, one of Wen’s weapons shipments – which falsely reported to U.S. officials that it contained a refrigerator – left the Port of Long Beach and arrived in Hong Kong in January 2024. This weapons shipment was later transported from Hong Kong to Nampo, North Korea.
In September 2024, Wen – once again acting at the direction of North Korean officials – bought approximately 60,000 rounds of 9mm ammunition that he intended to ship to North Korea.
In furtherance of the conspiracy and at the direction of North Korean officials, Wen also obtained sensitive technology that he intended to send to North Korea. This technology included a chemical threat identification device and a handheld broadband receiver that detects known, unknown, illegal, disruptive or interfering transmissions.
Wen also acquired or offered to acquire a civilian airplane engine and a thermal imaging system that could be mounted on a drone, helicopter, or other aircraft, and could be used for reconnaissance and target identification.
During the scheme, North Korean officials wired approximately $2 million to Wen to procure firearms and other goods for their government.
Wen admitted that at all relevant times he knew that it was illegal to ship firearms, ammunition, and sensitive technology to North Korea. He also admitted to never having the required licenses to export ammunition, firearms, and the above-described devices to North Korea. He further admitted to acting at the direction of North Korean government officials and that he had not provided notification to the Attorney General of the United States that he was acting in the United States at the direction and control of North Korea as required by law.
Wen faces a maximum penalty of 20 years in prison on the count of violating the IEEPA and a maximum penalty of 10 years in prison on the count of acting as an illegal agent of a foreign government. Sentencing is scheduled for Aug. 18. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General for National Security John Eisenberg, U.S. Attorney Bilal A. Essayli for the Central District of California, Assistant Director Roman Rozhavsky of the FBI Counterintelligence Division, and Kelly P. Mayo, Deputy Inspector General for Investigations and Director of the Defense Criminal Investigative Service (DCIS) made the announcement.
The FBI, Homeland Security Investigations, DCIS, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Department of Commerce Bureau of Industry and Security (BIS) are investigating the case.
Assistant U.S. Attorney Sarah E. Gerdes for the Central District of California and Trial Attorney Ahmed Almudallal of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
5 Men Plead Guilty for Role in Global Digital Asset Investment Scam Conspiracy Resulting in Theft of More than $36.9 Million from VictimsRead the Press Release
LOS ANGELES – Five men have pleaded guilty for their roles in laundering more than $36.9 million from victims of an international digital asset investment scam conspiracy that was carried out from scam centers in Cambodia, the Justice Department announced today.
The following defendants were part of an international criminal network that induced U.S. victims, believing they were investing in digital assets, to transfer funds to accounts controlled by co-conspirators and that laundered victim money through U.S. shell companies, international bank accounts, and digital asset wallets:
- Joseph Wong, 33, of Alhambra;
- Yicheng Zhang, 39, of China;
- Jose Somarriba, 55, of Los Angeles;
- Shengsheng He, 39, of La Puente; and
- Jingliang Su, 44, of China and Turkey.
As part of the conspiracy, co-conspirators residing overseas contacted U.S. victims directly through unsolicited social media interactions, telephone calls, text messages, and online dating services and gain the victims’ trust.
The co-conspirators then promoted fraudulent digital asset investments to the victims. Scammers would tell victims that their investments were appreciating in value when, in fact, those funds were stolen and not invested at all.
Instead, more than $36.9 million in victim funds were transferred from U.S. bank accounts controlled by the co-conspirators to a single account at Deltec Bank in the Bahamas, opened in the name of Axis Digital Limited.
Somarriba, He, and Su directed Deltec Bank to convert victim funds to the stablecoin Tether (USDT) and to transfer the converted funds to a digital asset wallet controlled by individuals in Cambodia. From there, co-conspirators in Cambodia transferred the USDT to the leaders of scam centers throughout the region including in Sihanoukville, Cambodia.
Somarriba and He founded Axis Digital and opened the Deltec Bank account. Su joined Axis Digital as a director and participated in the digital asset conversions and transfers of victim funds.
Wong managed a network of money launderers in Los Angeles who registered shell companies, opened U.S. bank accounts, and wired victim funds to international bank accounts. Zhang opened and operated two U.S. bank accounts used to launder victim proceeds.
Zhang and Wong pleaded guilty to money laundering conspiracy. They each face a maximum penalty of 20 years in prison. Zhang has been in custody since May 2024. He, Somarriba, and Su pleaded guilty to conspiracy to operate an unlicensed money services business. He, Somarriba, and Su each face a maximum penalty of five years in prison. Su has been in custody since November 2024 and has a sentencing hearing scheduled for November 17.
Eight co-conspirators have pleaded guilty so far, including Daren Li, a national of China and St. Kitts and Nevis and former resident of Cambodia and the United Arab Emirates who has been in U.S. custody since April 2024, and Lu Zhang, a Chinese national illegally in the United States who managed a network of U.S.-based money launderers, who pleaded guilty to conspiracy to commit money laundering on Nov. 12, 2024 and May 13, 2024, respectively.
The United States Secret Service’s Global Investigative Operations Center is investigating the case. The Homeland Security Investigations’ El Camino Real Financial Crimes Task Force, Customs and Border Protection’s National Targeting Center, U.S. Department of State’s Diplomatic Security Service, Dominican National Police, and U.S. Marshals Service provided valuable assistance.
Assistant United States Attorneys Maxwell Coll and Alexander Gorin of the Cyber and Intellectual Property Crimes Section, Assistant United States Attorney Nisha Chandran of the Major Frauds Section, and Trial Attorneys Stefanie Schwartz of the Criminal Division’s Computer Crime and Intellectual Property Section and Tamara Livshiz of the Criminal Division’s Fraud Section are prosecuting these cases.
If you or someone you know is a victim of a digital asset investment fraud, report it to IC3.gov.
Founder of O.C.-Based Non-Profit Charged in 15-Count Indictment Alleging He Bribed County Supervisor in $12 Million SchemeRead the Press Release
SANTA ANA, California – The founder of a now-shuttered non-profit organization has been indicted on federal charges alleging he bribed then-Orange County Supervisor Andrew Hoang Do to obtain approximately $12 million in COVID-19 pandemic-related funds, pocketed the bulk of that money, then laundered it to avoid detection by law enforcement, the Justice Department announced today.
Peter Anh Pham, 65, of Garden Grove, is charged with one count of conspiracy to commit wire fraud, one count of conspiracy to commit honest services wire fraud, six counts of wire fraud, six counts of concealment money laundering, and one count of bribery.
Also charged in the indictment is Thanh Huong Nguyen, 61, of Santa Ana, who is charged with one count of conspiracy to commit wire fraud, one count of wire fraud, and one count of concealment money laundering.
Pham is considered to be a fugitive from justice. Nguyen’s initial appearance and arraignment are expected to occur on Monday in U.S. District Court in Santa Ana.
“These two defendants are charged with conspiring with a corrupt politician to pad their pockets while the nation suffered under the weight of COVID-19,” said United States Attorney Bill Essayli. “My office and our law enforcement partners will continue our efforts to prosecute individuals who cashed in on government aid intended to help those impacted by the largest public health emergency in a century.”
“This conspiracy was a house of cards built on lies, betrayal, and insatiable greed,” said Orange County District Attorney Todd Spitzer. “Today’s indictments are another critical step in ensuring accountability – and consequences – for those who conspired to use the County of Orange’s COVID-19 funds as their personal ATMs – and to return those stolen funds to their rightful owners – the community for which these funds were originally intended.”
According to the indictment that was returned on Wednesday and unsealed today, Pham was a friend and associate of Do, 62, of Santa Ana, who served on the Orange County Board of Supervisors from 2015 until his resignation in October 2024. In that role, Do was one of five supervisors on the Board, which is responsible for the county’s $9 billion annual budget.
Do pleaded guilty in October 2024 to one count of conspiracy to commit bribery concerning programs receiving federal funds and is scheduled to be sentenced on June 9, when he will face a sentence of up to five years in federal prison.
From June 2020 to October 2024, Do used his official position as a county supervisor to vote for millions of dollars in county funds to be allocated in his district, subject to disbursement at his sole discretion. Do then steered county contracts and grants to Pham and Nguyen, the indictment alleges.
For example, in June 2020, Do voted to approve an agenda item that, in part, allocated $5 million in federal COVID-19 pandemic-relief funding to a county nutrition program. As part of this agenda item, Do authorized himself a budget of $1 million to develop that nutrition program in his district, which he could distribute without further approval from the rest of the Board. Eight days after Do voted to approve the agenda item, Pham founded the Huntington Beach-based non-profit organization Viet America Society (VAS).
Pham, through VAS, and Nguyen, through a Garden Grove-based group called Hand-to-Hand Relief Organization Inc. (H2H), entered into contracts and beneficiary agreements with the county. In many of these contracts, VAS and H2H falsely represented that they would reimburse the county for any funds not spent for the contract’s intended purpose. In each of the beneficiary agreements, VAS and H2H falsely certified that all funds would be used solely for the grant’s intended purpose.
In exchange for Pham’s bribes in the form of payments to his two daughters, Do used his official position as a county supervisor to advocate for VAS and H2H so county employees would approve contracts and beneficiary agreements between the county and these organizations. Do and his staff – including his chief of staff – edited the terms of those contracts and agreements to make them more favorable to Pham and Nguyen. Through the influence of Do and his staff, the county wired funds to Pham and Nguyen.
After receiving county funds, Pham and Nguyen transferred most of the money to other entities they controlled. They then spent large portions of the funds to pay personal expenses such as rent and bills, to pay off debts owed by their other businesses, and to make personal investments such as purchasing commercial and residential real estate. Pham and Nguyen also used county funds to bribe Do through payments to his daughters.
Pham also used county money to pay the eventual wife of Do’s chief of staff, under the guise that she was providing consulting services to VAS. Do’s chief of staff then used his position in Orange County’s government to help VAS and H2H obtain county contracts, edited the contracts’ terms to make them more favorable to VAS and H2H, and helped those organizations fulfill reporting requirements and get paid.
When required to submit invoices to the county to account for how the money was being spent, Pham and Nguyen submitted false documents, claiming to have used all the funds – all solely for legitimate purposes and according to the contracts’ terms.
To disguise the funds’ source, Pham and an associate caused checks from county funds to be written to a Westminster-based company called D Air Conditioning Co. LLC. This company then issued checks from its corporate bank account to Pham, Pham’s associate, and one of Do’s daughters.
In total, Pham and Nguyen unlawfully acquired approximately $12 million in county funds through this conspiracy.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proved guilty beyond a reasonable doubt.
If convicted of the charges, Pham and Nguyen would face a statutory maximum sentence of 20 years in federal prison for the conspiracy count, each wire fraud count, and each money laundering count. Pham also would face up to 10 years in federal prison for the bribery count.
The FBI, the Orange County District Attorney’s Office Bureau of Investigation, and IRS Criminal Investigation are investigating this matter.
Assistant United States Attorneys Nandor F.R. Kiss and Rosalind Wang of the Orange County Office, Assistant United States Attorney Tara Vavere of the Asset Forfeiture and Recovery Section, and Senior Deputy District Attorney Avery T. Harrison and Deputy District Attorney Anthony J. Schlehner of Orange County District Attorney’s Office are prosecuting this case.
Washington State Man Arrested on Federal Charges Alleging He Provided Material Support to Palm Springs Fertility Clinic BomberRead the Press Release
A Washington state man was arrested on a federal criminal complaint alleging he provided material support to the Palm Springs fertility clinic bomber by shipping and paying for significant quantities of ammonium nitrate – an explosive precursor – prior to the suicidal terror attack last month.
Daniel Jongyon Park, 32, of Kent, was arrested last night shortly after his flight from Poland arrived at John F. Kennedy International Airport in New York. Park is charged with providing and attempting to provide material support to terrorists and made his initial court appearance today in the Eastern District of New York.
“This defendant is charged with facilitating the horrific attack on a fertility center in California. Bringing chaos and violence to a facility that exists to help women and mothers is a particularly cruel, disgusting crime that strikes at the very heart of our shared humanity,” said Attorney General Pamela Bondi. “We are grateful to our partners in Poland who helped get this man back to America and we will prosecute him to the fullest extent of the law.”
“Park allegedly sent large amounts of explosive precursors to the man who drove a car bomb to a fertility clinic in Palm Springs, an attack that potentially could have killed innocent people,” said FBI Director Kash Patel. “The FBI and our partners work together to find and hold accountable those who engage in domestic terrorism and other illegal activity. I also want to express my thanks to authorities in Poland for their vital assistance in this case.”
“This defendant is charged with shipping large quantities of explosive precursors to the man whose suicide bombing last month destroyed a fertility clinic in Palm Springs,” said U.S. Attorney Bill Essayli for the Central District of California. “Domestic terrorism is evil and unacceptable. Those who aid terrorists can expect to feel the cold wrath of justice.”
According to an affidavit filed with the complaint, Guy Edward Bartkus, 25, of Twentynine Palms, California, drove a car containing a bomb to a fertility clinic in Palm Springs on May 17. Bartkus detonated the bomb, killing himself, injuring numerous victims, destroying the fertility clinic’s building, and damaging surrounding buildings and areas. Bartkus’s attack was motivated by his pro-mortalism, anti-natalism, and anti-pro-life ideology, which is the belief that individuals should not be born without their consent and that non-existence is best.
Park – who shares Bartkus’s extremist views – shipped large quantities of explosive precursor materials to Bartkus, including approximately 180 pounds of ammonium nitrate. Days before the Palm Springs bombing, Park paid for an additional 90 pounds (40.8 kilograms) of ammonium nitrate that was shipped to Bartkus.
Park sent the first shipments of approximately 180 pounds (81.7 kilograms) of ammonium nitrate to Bartkus shortly before traveling to Bartkus’s residence, where he stayed with Bartkus from Jan. 25 to Feb. 8. Three days before Park arrived at Bartkus’s house, records from an AI chat application show that Bartkus researched how to make powerful explosions using ammonium nitrate and fuel.
During his stay at Bartkus’s residence, Park and Bartkus spent time in Bartkus’s room as well as in a detached garage “running experiments,” according to the affidavit. This was the same garage where law enforcement, during a search after the May 17 bombing, located significant amounts of chemicals commonly used in the construction of homemade bombs.
Four days after Bartkus conducted the suicide bombing, Park flew to Europe. On May 30, Park was detained in Poland and later was ordered deported to the United States.
If convicted, Park would face a statutory maximum penalty of 15 years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI’s Inland Empire Joint Terrorism Task Force is investigating this matter. Considerable assistance was provided by the Palm Springs Police Department, the San Bernardino County Sheriff’s Department; the FBI’s legal attaché in Warsaw, Polish authorities, and FBI field offices in Seattle, New York, San Diego, Las Vegas, and Portland.
Assistant U.S. Attorneys Sarah E. Gerdes and Anna P. Boylan for the Central District of California, and Trial Attorney Patrick J. Cashman of the National Security Division’s Counterterrorism Section are prosecuting the case.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Washington State Man Arrested on Federal Charges Alleging He Provided Material Support to Palm Springs Fertility Clinic BomberRead the Press Release
LOS ANGELES – A Washington state man has been arrested on a federal criminal complaint alleging he provided material support to the Palm Springs fertility clinic bomber by shipping and paying for significant quantities of ammonium nitrate – an explosive precursor – prior to the suicidal terror attack last month, the Justice Department announced today.
Daniel Jongyon Park, 32, of Kent, Washington, was arrested last night shortly after his flight from Poland arrived at John F. Kennedy International Airport in New York.
Park is charged with providing and attempting to provide material support to terrorists.
He is expected to make his initial appearance today in United States District Court in Brooklyn, New York.
“This defendant is charged with facilitating the horrific attack on a fertility center in California. Bringing chaos and violence to a facility that exists to help women and mothers is a particularly cruel, disgusting crime that strikes at the very heart of our shared humanity,” said Attorney General Pamela Bondi. “We are grateful to our partners in Poland who helped get this man back to America and we will prosecute him to the fullest extent of the law.”
“This defendant is charged with providing material support to a terrorist by shipping large quantities of explosive precursors to the man whose suicide bombing last month destroyed a fertility clinic in Palm Springs,” said United States Attorney Bill Essayli. “Domestic terrorism is evil and unacceptable. Those who aid terrorists can expect to feel the cold wrath of justice.”
“Park allegedly sent large amounts of explosive precursors to the man who drove a car bomb to a fertility clinic in Palm Springs, an attack that potentially could have killed innocent people,” said FBI Director Kash Patel. “The FBI and our partners work together to find and hold accountable those who engage in domestic terrorism and other illegal activity. I also want to express my thanks to authorities in Poland for their vital assistance in this case.”
“Mr. Park’s contribution to the destructive device detonated on May 17 led to today’s charges and we continue to ask the public to come forward with any information,” said Akil Davis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “We must strive to prevent another attack like this and the way we do that is to learn everything we can about what exactly caused the explosion, who knew about it or planned it, and why.”
According to an affidavit filed with the complaint, Guy Edward Bartkus, 25, of Twentynine Palms, California, drove a car containing a bomb to a fertility clinic in Palm Springs on May 17. Bartkus detonated the bomb, killing himself, injuring numerous victims, destroying the fertility clinic’s building and damaging surrounding buildings and areas. Bartkus’s attack was motivated by his pro-mortalism, anti-natalism, and anti-pro-life ideology, which is the belief that individuals should not be born without their consent and that non-existence is best.
Park – who shares Bartkus’s extremist views – shipped large quantities of explosive precursor materials to Bartkus, including approximately 180 pounds of ammonium nitrate. Days before the Palm Springs bombing, Park paid for an additional 90 pounds (40.8 kilograms) of ammonium nitrate that was shipped to Bartkus.
Park sent the first shipments of approximately 180 pounds (81.7 kilograms) of ammonium nitrate to Bartkus shortly before traveling to Bartkus’s residence, where he stayed with Bartkus from January 25 to February 8. Three days before Park arrived at Bartkus’s house, records from an AI chat application show that Bartkus researched how to make powerful explosions using ammonium nitrate and fuel.
During his stay at Bartkus’s residence, Park and Bartkus spent time in Bartkus’s room as well as in a detached garage “running experiments,” according to the affidavit. This was the same garage where law enforcement, during a search after the May 17 bombing, located significant amounts of chemicals commonly used in the construction of homemade bombs.
Four days after Bartkus conducted the suicide bombing, Park flew to Europe. On May 30, Park was detained in Poland and later was ordered deported to the United States.
A criminal complaint contains allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted, Park would face a statutory maximum sentence of 15 years in federal prison.
The FBI’s Inland Empire Joint Terrorism Task Force is investigating this matter. Considerable assistance was provided by the Palm Springs Police Department, the San Bernardino County Sheriff’s Department; the FBI’s legal attaché in Warsaw, Polish authorities, and FBI field offices in Seattle, New York, San Diego, Las Vegas, and Portland.
Assistant United States Attorneys Sarah E. Gerdes and Anna P. Boylan of the Terrorism and Export Crimes Section are prosecuting this case, with substantial assistance from Trial Attorney Patrick J. Cashman of the National Security Division’s Counterterrorism Section.
Yucca Valley Man Charged with Threatening to Kill President Trump After Last Year’s ElectionRead the Press Release
RIVERSIDE, California – A San Bernardino County man was arraigned today on a three-count federal grand jury indictment charging him with threatening to assassinate then-President-elect Donald Trump after last year’s election.
Thomas Eugene Streavel, 73, of Yucca Valley, is charged with three counts of making threats against the President-elect.
Streavel was arrested Monday and was arraigned today in United States District Court in Riverside. He pleaded not guilty to all charges and a July 28 trial date was scheduled. A federal magistrate judge ordered him released on $10,000 bond.
“This defendant is charged with threatening the life of our President – a man who has already survived two deranged attempts on his life,” said Attorney General Pamela Bondi. “The Department of Justice takes these threats with the utmost seriousness and will prosecute this crime to the fullest extent of the law.”
“The type of rhetoric and threats made by this defendant are similar to those that led to an attempt on the President’s life last year,” said United States Attorney Bill Essayli. “There is no place for political violence or threats of violence in the United States. We will not hesitate to arrest and charge others who engage in similar criminal conduct.”
According to the indictment that a federal grand jury returned on May 29 and was unsealed today, Streavel used his Facebook account before the 2024 U.S. presidential election to post multiple messages expressing his desire to harm or have others harm President Trump.
After the 2024 presidential election, Streavel allegedly continued using Facebook to post about assassinating President Trump. For example, on November 6, 2024 – the day after the election – Streavel posted, “[T]rump is a dead man walking for the time being until a patriot like myself blows his [expletive] brains out in the very near future.”
The indictment alleges several instances in which Streavel knowingly and willfully threatened to kill and inflict bodily harm on Donald Trump, who then was the President-elect of the United States.
On November 12, 2024, Streavel posted a message on Facebook that read, in part, that he was “willing to make America great again and blow his [expletive] brains out.”
On November 19, 2024, Streavel posted a Facebook message that read, in part, “Let me put a bullet right between the ears of your president-elect…That’s my purpose for living.”
On November 28, 2024, Streavel wrote on Facebook, “I’m praying for a successful assassination of your president-elect” and “My life’s mission is killing the worthless LOSER [expletive] and my mission starts tonight so watch yourself trump [sic], you are a dead [expletive] and I am your assassin.”
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted, Streavel would face a statutory maximum sentence of five years in federal prison for each count.
The United States Secret Service is investigating this matter.
Assistant United States Attorney Matt Coe-Odess of the Domestic Security and Immigration Crimes Section is prosecuting this case.
Two West Covina Women Arrested on Indictment Alleging $4.8 Million Hospice Services Scheme to Defraud MedicareRead the Press Release
LOS ANGELES – The owner and operator of two West Covina hospices was arrested today on a 14-count federal grand jury indictment alleging she filed more than $4.8 million in false and fraudulent claims to Medicare – which paid more than $3.8 million on those claims – for medically unnecessary services for people not terminally ill and for paying kickbacks to marketers to procure patients.
Normita Sierra, 71, a.k.a. “Normie,” of West Covina, is charged with nine counts of health care fraud, one count of conspiracy, and four counts of illegal remuneration for health care referrals.
Also arrested today was Rowena Elegado, 55, a.k.a. “Weng,” also of West Covina, who is charged with one count of conspiracy, and four counts of illegal remuneration for health care referrals.
Both defendants are expected to make their initial appearances and be arraigned this afternoon in United States District Court in downtown Los Angeles.
According to the indictment, Sierra owned and operated Golden Meadows Hospice Inc., and D’Alexandria Hospice Inc., which billed Medicare for hospice services for patients who were not terminally ill during a scheme that lasted from September 2018 to October 2022.
Sierra and Elegado allegedly worked together to pay marketers to recruit patients to the hospices, knowing that most of those patients had not been referred by their primary care physicians for such services. Those kickbacks, often referred to internally using the code words “girl scout cookies,” amounted to as much as $1,300 per patient, per month that the patient stayed on hospice service.
Others involved in the scheme included Carl Bernardo, 53, of Chino, who pleaded guilty in September 2024 to one count of receiving kickbacks in connection with a federal health care program and is scheduled to be sentenced on October 23. Relyndo Salcedo, 60, of Fontana, a nurse practitioner involved in the scheme, pleaded guilty on May 22 to one count of health care fraud and is scheduled for sentencing on November 20.
Salcedo, a nurse practitioner, conducted initial assessments for the hospice and found many of the patients ineligible for hospice. But, under pressure from Sierra, who made the ultimate enrollment decisions even though she wasn’t a medical professional, and marketers such as Bernardo, Salcedo exaggerated and falsified the patients’ conditions to make them seem terminally ill. Hospice physicians then relied on Salcedo’s records to certify the patients as hospice appropriate.
Once enrolled, those patients – who were not in fact terminally ill – rarely died, and instead were often discharged at around six months at Sierra’s direction, sometimes to her home health company or the other hospice company.
During the scheme, Golden Meadows submitted at least approximately $3,870,642 in fraudulent claims, on which Medicare paid approximately $2,912,187. D’Alexandria submitted approximately $945,647 in fraudulent claims, on which Medicare paid approximately $894,199.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proved guilty beyond a reasonable doubt.
If convicted of the charges, Sierra would face a statutory maximum sentence of 10 years in federal prison for each health care fraud count. Sierra and Elegado would face up to five years in federal prison for the conspiracy count and up to 10 years in federal prison for each illegal kickback count.
The United States Department of Health and Human Services Office of the Inspector General and the FBI investigated this matter.
Assistant United States Attorney Kristen A. Williams of the Major Frauds Section is prosecuting this case.
Former Plaintiffs’ Lawyer Tom Girardi Sentenced to More Than 7 Years in Prison for Swindling Tens of Millions of Dollars from Injured ClientsRead the Press Release
LOS ANGELES – Disbarred plaintiffs’ personal injury attorney Thomas Vincent Girardi was sentenced today to 87 months in federal prison for leading a years-long scheme in which he embezzled tens of millions of dollars of settlement money that belonged to his clients, some of whom awaited payment for treatment of severe physical injuries.
Girardi, 86, formerly of Pasadena and who now resides in Seal Beach, was sentenced by United States District Judge Josephine L. Staton also ordered Girardi to pay a $35,000 fine and $2,310,247 in restitution. Judge Staton ordered Girardi to surrender to federal authorities no later than July 17.
Girardi was found guilty by a jury in August 2024 of four counts of wire fraud.
“This self-proclaimed ‘champion of justice’ was nothing more than a thief and a liar who conned his vulnerable clients out of the millions of dollars,” said United States Attorney Bill Essayli. “My office will vigorously prosecute corrupt lawyers and those who assist them in criminal activities.”
“This sentencing brings a level of recompense for countless victims of Mr. Girardi’s long-running scheme to enrich himself on the backs of clients who trusted him in some of their worst days,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “Mr. Girardi thought he could outsmart his victims and investigators, but this sentencing demonstrates criminals cannot evade the unrivaled acumen of IRS-CI special agents in following the money, as well as the effectiveness of our partnerships with fellow law enforcement organizations like the FBI.”
“Mr. Girardi, once a self-proclaimed ‘legal legend’ who purported to fight corporate greed, will now find himself on the opposite end of justice as he serves out his lengthy prison sentence,” said Akil Davis, the Assistant Director in Charge of the FBI's Los Angeles Field Office. “Years of hard work went into this case by agents and prosecutors motivated to pursue justice for the victims who were betrayed by Girardi after putting their trust in his corrupt law firm in their time of need and while enduring personal hardship.”
A once-powerful figure in California’s legal community, Girardi ran the now-defunct downtown Los Angeles law firm Girardi Keese. For years, Girardi misappropriated and embezzled millions of dollars from client trust accounts at his law firm. The scheme involved defendant Girardi stealing millions of dollars in client settlement funds and failing to pay Girardi Keese clients – some of whom had suffered serious injuries in accidents – the money they were owed.
In carrying out his criminal conduct, from October 2010 to late 2020, Girardi operated Girardi Keese like a Ponzi-scheme by providing a litany of lies for failure to pay clients and directing law firm employees, including co-defendant and former Girardi Keese CFO Christopher Kazuo Kamon, to make incremental payments of newly obtained settlement funds to previously defrauded clients or using the new funds to pay other unrelated expenditures.
Girardi sent lulling communications to the defrauded clients that, among other things, falsely denied that the settlement proceeds had been paid and falsely claimed that Girardi Keese could not pay the settlement proceeds to clients until certain purported requirements had been met. These bogus requirements included addressing supposed tax obligations, settling bankruptcy claims, obtaining supposedly necessary authorizations from judges, and satisfying other debts.
Girardi also diverted tens of millions of dollars from his law firm’s operating account to pay illegitimate expenses, including more than $25 million to pay the expenses of EJ Global, a company formed by his wife related to her entertainment career, as well as spent millions of dollars of Girardi Keese funds on private jet travel, jewelry, luxury cars, and exclusive golf and social clubs.
At the end of 2020, as Girardi and his law firm faced mounting legal problems related to his years-long theft of client funds, Girardi Keese was forced into involuntary bankruptcy. The State Bar of California disbarred Girardi in July 2022.
Relatedly, co-defendant Kamon, 51, formerly of Encino and Palos Verdes and who was residing in The Bahamas at the time of his November 2022 arrest on a federal criminal complaint, pleaded guilty in October 2024 to two counts of wire fraud. Kamon, the long-time head of the accounting department at Girardi Keese, aided and abetted Girardi’s fraud scheme and embezzled millions of dollars from Girardi Keese itself for his own benefit.
On April 11, Kamon was sentenced to 121 months in custody and ordered to pay $8,903,324 in restitution. Kamon has been in federal custody since November 2022.
Kamon has agreed to plead guilty to federal fraud charges in Chicago where he is charged along with former Girardi Keese lawyer David R. Lira, Girardi’s son-in-law. Trial in that case is scheduled to start on July 14. Girardi was dismissed from the Chicago case because of his conviction and sentencing in this case.
IRS Criminal Investigation and the FBI investigated this matter. The Office of the United States Trustee provided assistance.
Assistant United States Attorney Scott Paetty of the Major Frauds Section prosecuted this case.
Two Foreign Nationals Indicted for Plot to Silence U.S. Dissident and Smuggle U.S. Military Technology to ChinaRead the Press Release
Federal grand juries in Milwaukee and Los Angeles each returned indictments charging two foreign nationals, Cui Guanghai, 43, of China, and John Miller, 63, of the United Kingdom and a U.S. lawful permanent resident, with interstate stalking and conspiracy to commit interstate stalking (Los Angeles) and conspiracy, smuggling, and violations of the Arms Export Control Act (Milwaukee).
“As alleged, the defendants targeted a U.S. resident for exercising his constitutional right to free speech and conspired to traffic sensitive American military technology to the Chinese regime,” said Deputy Attorney General Todd Blanche. “This is a blatant assault on both our national security and our democratic values. This Justice Department will not tolerate foreign repression on U.S. soil, nor will we allow hostile nations to infiltrate or exploit our defense systems. We will act decisively to expose and dismantle these threats wherever they emerge.”
“The defendants allegedly plotted to harass and interfere with an individual who criticized the actions of the People’s Republic of China while exercising their constitutionally protected free speech rights within the United States of America,” said FBI Deputy Director Dan Bongino. “The same individuals also are charged with trying to obtain and export sensitive U.S. military technology to China. I want to commend the good work of the FBI and our partners in the U.S and overseas in putting a stop to these illegal activities.”
Allegations in the Central District of California
According to court documents, beginning in October 2023, Cui and Miller enlisted two individuals (Individual 1 and Individual 2) inside the United States to carry out a plot to prevent the Victim from protesting President Xi’s appearance at the Asia Pacific Economic Cooperation (APEC) summit in November 2023. The victim had previously made public statements in opposition to the policies and actions of the PRC government and President Xi.
“The indictment alleges that Chinese foreign actors targeted a victim in our nation because he criticized the Chinese government and its president,” said U.S. Attorney Bill Essayli for the Central District of California. “My office will continue to use all legal methods available to hold accountable foreign nationals engaging in criminal activity on our soil.”
Unbeknownst to Cui and Miller, Individual 1 and Individual 2 were affiliated with and acting at the direction of the FBI.
In the weeks leading up to the APEC summit, Cui and Miller directed and coordinated an interstate scheme to surveil the victim, to install a tracking device on the victim’s car, to slash the tires on the victim’s car, and to purchase and destroy a pair of artistic statues created by the victim depicting President Xi and President Xi’s wife.
A similar scheme took place in the spring of 2025, after the victim announced that he planned to make public an online video feed depicting two new artistic statues of President Xi and his wife. In connection with these plots, Cui and Miller paid two other individuals (Individual 3 and Individual 4), approximately $36,500 to convince the victim to desist from the online display of the statues. Unbeknownst to Cui and Miller, Individual 3 and Individual 4 were also affiliated with and acting at the direction of the FBI.
Allegations in the Eastern District of Wisconsin
According to court documents, beginning in November 2023, Miller and Cui solicited the procurement of U.S. defense articles, including missiles, air defense radar, drones, and cryptographic devices with associated crypto ignition keys for unlawful export from the United States to the People’s Republic of China from two individuals (Individual 5 and Individual 6).
In connection with the scheme, Cui and Miller discussed with Individuals 5 and 6 ways to export a cryptographic device from the United States to the People’s Republic of China, including concealing the device in a blender, small electronics, or motor starter, and shipping the device first to Hong Kong. Cui and Miller paid approximately $10,000 as a deposit for the cryptographic device via a courier in the United States and a wire transfer to a U.S. bank account.
***
If convicted, Cui and Miller face the following maximum penalties: five years in prison for conspiracy; five years in prison for interstate stalking; 20 years in prison for violation of the Arms Export Control Act; and 10 years in prison for smuggling.
The FBI is investigating the case. The United States is coordinating with Serbian authorities regarding the pending extraditions of Cui and Miller from Serbia.
Assistant U.S. Attorneys David Ryan and Amanda B. Elbogen for the Central District of California, Benjamin Taibleson for the Eastern District of Wisconsin, and Trial Attorneys Leslie Esbrook and Menno Goedman of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the cases, with valuable assistance provided by the Justice Department’s Office of International Affairs.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
British and Chinese Nationals Indicted for Alleged Plot to Silence U.S. Dissident and Smuggle U.S. Military Technology to ChinaRead the Press Release
LOS ANGELES – Federal grand juries in Los Angeles and Milwaukee each have returned indictments charging two foreign nationals, Cui Guanghai, 43, of China, and John Miller, 63, of the United Kingdom and a U.S. lawful permanent resident, with interstate stalking and conspiracy to commit interstate stalking (Los Angeles) and conspiracy, smuggling, and violations of the Arms Export Control Act (Milwaukee), the Justice Department announced today.
“As alleged, the defendants targeted a U.S. resident for exercising his constitutional right to free speech and conspired to traffic sensitive American military technology to the Chinese regime,” said Deputy Attorney General Todd Blanche. “This is a blatant assault on both our national security and our democratic values. This Justice Department will not tolerate foreign repression on U.S. soil, nor will we allow hostile nations to infiltrate or exploit our defense systems. We will act decisively to expose and dismantle these threats wherever they emerge.”
“The defendants allegedly plotted to harass and interfere with an individual who criticized the actions of the People’s Republic of China while exercising their constitutionally protected free speech rights within the United States of America,” said FBI Deputy Director Dan Bongino. “The same individuals also are charged with trying to obtain and export sensitive U.S. military technology to China. I want to commend the good work of the FBI and our partners in the U.S and overseas in putting a stop to these illegal activities.”
- Central District of California (Los Angeles)
According to court documents, beginning in October 2023, Cui and Miller enlisted two individuals (Individual 1 and Individual 2) inside the United States to carry out a plot to prevent the Victim from protesting President Xi’s appearance at the Asia Pacific Economic Cooperation (APEC) summit in November 2023. The victim had previously made public statements in opposition to the policies and actions of the PRC government and President Xi.
“The indictment alleges that Chinese foreign actors targeted a victim in our nation because he criticized the Chinese government and its president,” said U.S. Attorney Bill Essayli for the Central District of California. “My office will continue to use all legal methods available to hold accountable foreign nationals engaging in criminal activity on our soil.”
“The FBI will not tolerate transnational repression targeting those in the United States who express dissenting opinions about foreign leaders,” said Akil Davis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Both defendants face serious stalking charges in Los Angeles and my office intends to hold them accountable for bullying a victim, a critic of the PRC, and targeting him with violence.”
Unbeknownst to Cui and Miller, Individual 1 and Individual 2 were affiliated with and acting at the direction of the FBI.
In the weeks leading up to the APEC summit, Cui and Miller directed and coordinated an interstate scheme to surveil the victim, to install a tracking device on the victim’s car, to slash the tires on the victim’s car, and to purchase and destroy a pair of artistic statues created by the victim depicting President Xi and President Xi’s wife.
A similar scheme took place in the spring of 2025, after the victim announced that he planned to make public an online video feed depicting two new artistic statues of President Xi and his wife. In connection with these plots, Cui and Miller paid two other individuals (Individual 3 and Individual 4), approximately $36,500 to convince the victim to desist from the online display of the statues. Unbeknownst to Cui and Miller, Individual 3 and Individual 4 were also affiliated with and acting at the direction of the FBI.
- Eastern District of Wisconsin (Milwaukee)
According to court documents, beginning in November 2023, Miller and Cui solicited the procurement of U.S. defense articles, including missiles, air defense radar, drones, and cryptographic devices with associated crypto ignition keys for unlawful export from the United States to the People’s Republic of China from two individuals (Individual 5 and Individual 6).
In connection with the scheme, Cui and Miller discussed with Individuals 5 and 6 ways to export a cryptographic device from the United States to the People’s Republic of China, including concealing the device in a blender, small electronics, or motor starter, and shipping the device first to Hong Kong. Cui and Miller paid approximately $10,000 as a deposit for the cryptographic device via a courier in the United States and a wire transfer to a U.S. bank account.
***
Complaints and indictments contain allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted, Cui and Miller face the following maximum penalties: five years in prison for conspiracy; five years in prison for interstate stalking; 20 years in prison for violation of the Arms Export Control Act; and 10 years in prison for smuggling.
The FBI is investigating the case. The United States is coordinating with Serbian authorities regarding the pending extraditions of Cui and Miller from Serbia.
Assistant United States Attorneys David Ryan, Chief of the National Security Division and Amanda B. Elbogen of the Terrorism and Export Crimes Section, both of the Central District of California, Benjamin Taibleson of the Eastern District of Wisconsin, and Trial Attorneys Leslie Esbrook and Menno Goedman of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the cases, with valuable assistance provided by the Justice Department’s Office of International Affairs.
Sovereign Health Group Founder and Ex-CEO Arrested on Indictment Alleging Long-Running, Massive Fraud Against Health InsurersRead the Press Release
SANTA ANA, California – The founder and former CEO of the now-defunct Sovereign Health Group addiction treatment provider was arrested today on an eight-count federal grand jury indictment alleging he submitted more than $149 million in fraudulent claims to health insurers – including for fraudulent urinalysis claims – and, in addition, paid more than $21 million in illegal kickbacks for patient referrals.
Tonmoy Sharma, 61, of Tustin, was arrested this afternoon at Los Angeles International Airport and is expected to make his initial appearance and be arraigned tomorrow in United States District Court in downtown Los Angeles.
Sharma is charged with four counts of wire fraud, one count of conspiracy, and three counts of illegal remunerations for referrals to clinical treatment facilities.
Also arrested today was co-defendant Paul Jin Sen Khor, 45, of Irvine, who worked as Sovereign’s cash management and accounts payable supervisor. Khor is charged with one count of conspiracy and one count of illegal remunerations for referrals to clinical treatment facilities. Khor was arraigned this afternoon in United States District Court in Santa Ana. He pleaded not guilty and a July 29 trial date was scheduled. A federal magistrate judge ordered him released on $20,000 bond.
According to the indictment, the San Clemente-based Sovereign once was a prominent addiction treatment provider throughout Southern California and several other states. From 2014 to 2020, Sovereign billed private insurance companies for drug addicted and mentally ill patients often at high, out-of-network rates.
At Sharma’s direction, Sovereign employees aggressively pursued patients through various forms of marketing, directing the patients to contact the company at its toll-free phone number. Once patients called in to Sovereign’s call center, employees used various tactics to enroll patients into the company’s treatment facilities, including misrepresentations. One such misrepresentation was that a patient’s treatment would be paid for by a foundation funded by donations from former Sovereign patients.
In fact, the foundation was a sham organization and a ruse for Sovereign employees – at Sharma’s direction – to obtain patients’ names, dates of birth, and Social Security numbers for use in surreptitiously obtaining health insurance coverage on their behalf. In order to obtain these private health insurance plans, Sovereign employees, at Sharma’s direction, made false representations on insurance applications, claiming qualifying life events that had not happened in order to obtain new insurance outside the enrollment period and inflating or underreporting their income so the patients would qualify for Affordable Care Act government-subsidized private insurance instead of Medicaid, whose reimbursement rates were significantly lower than private insurers.
Patients generally did not know that Sovereign would enroll them into these policies or authorize Sovereign to do so. Sovereign employees at times even pretended to be the patients when calling into those insurance companies. Those insurance companies would not have covered any services under plans obtained by these fraudulent means.
Sovereign also fraudulently billed insurers more than $29 million for urinalysis tests not authorized by the purported ordering health providers. At Sharma’s direction, Sovereign submitted fraudulent claims for comprehensive urinalysis screening, including through its laboratory, Vedanta Laboratories Inc. Sovereign patients were frequently drug tested through both cup testing and comprehensive panel testing. The cup testing returned results within minutes, while the panel testing was much more comprehensive, with results taking several days to return. The comprehensive panel testing screened for dozens of different substances and, accordingly, was billed at a significantly higher rate than cup testing.
Sharma directed Sovereign employees to frequently administer cup testing and comprehensive panel testing on patients, including comprehensive panel testing up to three times a week. Sovereign submitted thousands of claims to insurance companies, including for comprehensive panel tests that purportedly were authorized by physicians when, in reality, the physicians did not authorize the tests. Sovereign also submitted numerous claims to the insurance companies, including urinalysis tests, after physicians were no longer working at Sovereign.
Finally, in addition to the patients obtained through the call center above, Sharma and Khor also procured patients for Sovereign by paying illegal kickbacks to patient brokers. To conceal the nature of these transactions, Sharma and Khor caused Sovereign to enter sham contracts that referred to the brokers’ services as “marketing hours,” a term the brokers used when sending invoices to Sovereign for payment. Sovereign paid more than $21 million in illegal kickbacks for patient referrals.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted, Sharma would face a statutory maximum sentence of 20 years in federal prison for each wire fraud count. Both defendants would face up to five years in federal prison for the conspiracy count, and up to 10 years in federal prison for each illegal remunerations count.
The FBI, the United States Department of Health and Human Services Office of Inspector General, and the California Department of Health Care Services are investigating this matter. The California Department of Insurance, the United States Department of Labor Employee Benefits Security Administration, the Office of Personnel Management Office of Inspector General, and IRS Criminal Investigation provided substantial assistance in the investigation.
Assistant United States Attorney Solomon Kim of the Major Frauds Section is prosecuting this case.
Freight Forwarding Company Executive Arrested on Federal Indictment Alleging Massive Scheme to Avoid Customs Duties PaymentsRead the Press Release
LOS ANGELES – The chief financial officer (CFO) at a Downtown Los Angeles-based shipping company has been arrested on a 22-count federal grand jury indictment charging him and the company’s CEO with using fraudulent documents, shell companies, bribes to public officials, and kickbacks to Mexican drug cartels to smuggle billions of dollars’ worth of goods from the United States into Mexico, repeatedly lying to U.S. customs officials and defrauding Mexico out of hundreds of millions of dollars’ worth of duties owed, the Justice Department announced today.
Ralph Olarte, 55, of Glendale, the CFO of Sport LA Inc., was arrested late last night at Los Angeles International Airport. He is expected to make his initial appearance and be arraigned this afternoon in United States District Court in downtown Los Angeles.
Also charged in the indictment is Humberto Lopez Belmonte, 53, of Mexico City, who was arrested and arraigned on Tuesday in Los Angeles federal court. Lopez pleaded not guilty to the charges against him and a July 21 trial date was scheduled. A federal magistrate judge ordered Lopez released on $100,000 bond.
Olarte and Lopez are charged with one count of conspiracy to smuggle goods from the United States. Both defendants and their company, Sport LA Inc., also are charged with one count of smuggling goods from the United States, three counts of knowingly submitting false and misleading export information, five counts of wire fraud for false information submitted to U.S. Customs and Border Protection (CBP), one count of conspiracy to commit wire fraud against Mexico, one count of conspiracy to commit money laundering, and seven counts of international promotional and concealment money laundering.
Sport LA is charged with three counts of making false statements to a government agency. The other defendant companies – H&R Logistics Inc. and Olarte Transport Service Inc. – are charged with one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering.
According to the indictment returned on April 30 and unsealed Tuesday, Olarte and Lopez, from at least 2013 to the present, operated a lucrative international shipping enterprise. Through shipping companies they controlled, Olarte and Lopez smuggled billions of dollars’ worth of goods from and through the United States into Mexico. Many times, they concealed the nature of the shipped goods, some of which contained contraband.
The companies allegedly submitted millions of false and misleading statements to U.S. customs officials, used shell companies in Mexico to shield their true customers, and created and presented false documents – including sham certificates for paid Mexican import taxes. They also bribed Mexican customs officials, paid kickbacks to drug cartels – including the Jalisco New Generation Cartel (CJNG) – to operate the scheme and smuggled bulk cash into the U.S. to avoid reporting requirements.
Olarte and Lopez then laundered the proceeds of their scheme back from the true Mexican customers, through the shell companies, and ultimately into the companies’ U.S. bank accounts.
As a result of the conspiracy, Olarte and Lopez personally received millions of dollars in illicit proceeds.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted, Olarte and Lopez would face a statutory maximum sentence of 20 years in federal prison for each count of wire fraud- and money laundering-related count, up to five years in federal prison for each smuggling- and false statements-related count, and up to two years in federal prison for each count of knowingly submitting false and misleading export information.
Homeland Security Investigations (HSI), CBP, IRS Criminal Investigation, and the Drug Enforcement Administration are investigating this matter.
The cases announced today were investigated by HSI’s El Camino Real Financial Crimes Task Force, a multi-agency task force that includes federal and state investigators who are focused on financial crimes in Southern California.
The Transnational Organized Crime Section is prosecuting this case.
Department of Justice Takes Action to Enforce Title IX in California to Protect Girls’ SportsRead the Press Release
RIVERSIDE, California – The Justice Department today sent letters of legal notice to California Attorney General Rob Bonta, State Superintendent of Public Instruction Tony Thurmond, Jurupa Unified School District, and the California Interscholastic Federation (CIF) that it is opening an investigation to determine whether Title IX, a landmark federal civil rights law, is being violated by AB 1266, a state law permitting males to participate on female sports teams at state schools.
The investigation is to determine whether California, its senior legal, educational, and athletic organizations, and the school district are engaging in a pattern or practice of discrimination on the basis of sex.
The letters of legal notice were sent at the time the Justice Department filed a statement of interest in federal court in support of a lawsuit filed by and on behalf of girls’ athletes to advance the appropriate interpretation of Title IX to ensure equal educational opportunities and prevent discrimination based on sex in federally funded schools and athletic programs.
The statement of interest is part of a national effort by the President, the Attorney General, and the Justice Department to oppose the deprivation of women and girls of fair athletic opportunities.
“Title IX exists to protect women and girls in education. It is perverse to allow males to compete against girls, invade their private spaces, and take their trophies,” said Harmeet K. Dhillon, Assistant Attorney General for Civil Rights. “This Division will aggressively defend women’s hard-fought rights to equal educational opportunities.”
“The law is clear: Discrimination on the basis of sex is illegal and immoral,” said United States Attorney Bill Essayli. “My office and the rest of the Department of Justice will work tirelessly to protect girls’ sports and stop anyone – public officials included – from violating women’s civil rights.”
According to the allegations in the lawsuit, Save Girls’ Sports, et al. v. Thurmond, et al., AB 1266 – passed by the California State Legislature and codified in the California Education Code – conflicts with Title IX. AB 1266 unlawfully permits males to participate on female sports teams and to use female spaces, resulting in unfair and unsafe environments for women and girls.
The lawsuit alleges that this California statute “is harming hundreds – if not thousands – of female students by removing opportunities for female athletes to be champions in their own sports, robbing them of podium positions and awards, and creating unsafe and intimidating environments in their bathrooms and locker rooms.”
The plaintiffs include K.S., a ninth-grade female cross-country athlete and T.S., an 11th-grade female cross-country athlete and team captain, both of whom attend Martin Luther King High School in Riverside.
T.S. was removed from her position of the girls’ varsity cross-country team to make room for a biological male athlete who did not consistently attend practices and failed to satisfy many of the team’s varsity eligibility requirements. As a result, T.S. missed the opportunity to compete at a high-profile meet, lost the right to compete on the varsity level, and missed the opportunity to compete with elite fellow athletes to be recruited by universities and receive other forms of recognition.
The biological male who replaced T.S. on the girls’ varsity cross-country team recently had transferred from another local high school after breaking that school’s all-time cross-country record for the girls’ cross-country team.
The lawsuit further alleges that the Riverside Unified School District, Martin Luther King High School’s principal, and its assistant principal and athletic director violated the constitutional rights of T.S. and K.S. when it ordered them to stop wearing t-shirts protesting T.S.’s removal from the team.
The plaintiffs are seeking declaratory and injunctive relief related to the defendants’ speech policy and rules governing participating in girls’ sports.
Assistant United States Attorney Richard Park of the Civil Division’s Civil Rights Section is handling this matter.
To learn more about the Civil Rights Division visit www.justice.gov/crt, and to report possible violations of federal civil rights laws go to www.civilrights.justice.gov or call toll-free at (800) 253-3931.
14 Arrested on Complaints Alleging More Than $25 Million in COVID-19 Relief and Small Business Loans Were Fraudulently ObtainedRead the Press Release
LOS ANGELES – Fourteen defendants – including San Fernando Valley and Glendale residents – were arrested on two federal criminal complaints alleging they fraudulently obtained more than $25 million in taxpayer-funded COVID-19 relief funds and federally-guaranteed small business loans.
The 18 total defendants named in the complaints – four defendants are believed to be in Armenia – are charged with conspiracy to defraud the government with respect to claims; false, fictitious, or fraudulent claims; wire fraud and attempted wire fraud; bank fraud and attempted bank fraud; money laundering conspiracy; laundering of monetary instruments; engaging in monetary transactions in property derived from specified unlawful activity; and/or structuring financial transactions to evade reporting requirements.
The defendants arrested today include:
- Vahe Margaryan, a.k.a. “William McGrayan,” 42, of Tujunga, who allegedly orchestrated a scheme to defraud numerous banks and the Small Business Administration’s (SBA) Preferred Lender Program, a program designed to help small businesses that otherwise might not obtain financing. McGrayan allegedly directed owners of sham corporations to open bank accounts, make false statements, and concoct documents, including phony resumes and financial statements, to support loan applications to buy other sham corporations. McGrayan allegedly paid for phony tax returns that falsely reported millions in revenue and tens of thousands in tax due and owing. McGrayan, whose alleged criminal activity lasted from 2018 until January 2025, then directed the laundering of millions in fraud proceeds through various bank accounts.
- Sarkis Gareginovich Sarkisyan, 37, a.k.a. “Samuel Shaw,” of Glendale, who allegedly, among other offenses, submitted a false application and bogus documents to obtain a loan under the Paycheck Protection Program (PPP), which provided low-interest, forgivable loans to help small businesses retain their workforce and cover expenses. Sarkisyan allegedly applied in April 2021 on behalf of a fake business that received more than $700,000 in PPP funds.
- Mery Babayan, 32, a.k.a. “Mery Diamondz,” of Van Nuys, together with co-defendants Margaryan and Hovannes Hovannisyan, 48, a.k.a. “John Harvard,” of Panorama City, in May 2021 allegedly defrauded a bank by representing the nonexistent sale of a sham business to another sham company to obtain an approximately $3 million federally guaranteed loan through the SBA’s Preferred Lending Program.
- Felix Parker, 77, of North Hollywood, who in January 2023 allegedly made false statements and submitted fraudulent documents, including fake tax returns that falsely reported that his shell company, Canmar Promo, earned millions of dollars annually and owed tens of thousands in federal income taxes. Parker allegedly obtained more than $2 million in government-guaranteed funds earmarked to help small businesses.
- Axsel Markaryan, 47, a.k.a. “Axel Mark,” of Pacoima, who in June 2023 allegedly fraudulently obtained more than $5 million in SBA loans via the submission of false statements and the submission of fake documents, including bogus tax returns. After the loans were obtained, Markaryan and his co-schemers in November 2023 laundered the money, including sending at least $100,000 to a co-schemer in Armenia.
As a result of today’s takedown, law enforcement seized approximately $20,000 in cash, two money-counting machines, paper cash bands or currency straps in denominations of $2,000 and $10,000, multiple cell phones, multiple laptops, two loaded semi-automatic 9mm handguns, and boxes of 9mm ammunition.
“Today’s enforcement action is intended to send a message to all criminals who take advantage of government programs designed to help those who need them most,” said United States Attorney Bill Essayli. “If you took COVID-19 or SBA money you weren’t entitled to, your door could be the next one we visit. Together with our law enforcement partners, my office will aggressively prosecute individuals who cheat the system meant to protect and support law-abiding citizens.”
“Scheming to fraudulently obtain federal funds that were meant to provide assistance to the nation’s small businesses is unacceptable,” said the U.S. Small Business Administration Office of Inspector General (SBA-OIG) Western Region Acting Special Agent in Charge Jonathan Huang. “OIG will continue to ardently investigate fraudulently obtained SBA program funds, including COVID-19 pandemic-related loans, to protect taxpayers from fraud, waste, and abuse. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
“This transnational criminal network sought to defraud the government of millions of dollars and almost succeeded,” said Homeland Security Investigations (HSI) Los Angeles Acting Special Agent in Charge John Pasciucco. “Through the diligent work of the El Camino Real Financial Crimes Task Force and our federal partners, HSI is continuing to identify these criminal groups looking to profit from the pandemic and will use all available resources to criminally prosecute or remove them from the country.”
“Today, 14 individuals were arrested in connection with a fraudulent loan scheme in which they allegedly obtained in excess of $25 million through the SBA Paycheck Protection Program, Economic Injury Disaster Loan programs, and other federal funding programs,” said IRS Criminal Investigation Special Agent in Charge Tyler Hatcher, Los Angeles Field Office. “These programs were established to assist individuals and businesses in need of financial assistance and instead were pilfered by the named defendants. IRS-CI is dedicated to identifying and dismantling criminal organizations that prey on assistance programs set up for the benefit of our law-abiding citizens.”
A criminal complaint contains allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted, each defendant would face a statutory maximum sentence of decades in federal prison.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolster efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
On September 15, 2022, the Attorney General selected the U.S. Attorney’s Offices for the Central and Eastern Districts of California to jointly head one of the three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. The Strike Force combines law enforcement and prosecutorial resources and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors, as well as those who committed instances of pandemic relief fraud. The Strike Force uses prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds. Additional information regarding the Strike Force may be found at https://www.justice.gov/opa/pr/justice-department-announces-covid-19-fraud-strike-force-teams.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
SBA-OIG, IRS Criminal Investigation, and HSI are investigating these matters.
The cases announced today were investigated by the U.S. Department of Homeland Security’s Office of Inspector General and Homeland Security Investigations’ (HSI) El Camino Real Financial Crimes Task Force, a multi-agency task force that includes federal and state investigators who are focused on financial crimes in Southern California.
Assistant United States Attorneys Mark Aveis and Gregg Marmaro of the Major Frauds Section and Maxwell Coll of the Cyber and Intellectual Property Crimes Section are prosecuting these cases.
Southern California Edison Agrees to Pay United States $82.5 Million to Resolve Lawsuit Stemming from 2020 Bobcat FireRead the Press Release
LOS ANGELES – Southern California Edison (SCE) has agreed to pay the United States $82.5 million – the largest-ever wildfire cost recovery settlement by the United States in the Central District of California – to resolve claims on behalf of the U.S. Forest Service to recoup costs and damages associated with the 2020 Bobcat Fire in the Angeles National Forest, the Justice Department announced today.
The Bobcat Fire ignited in September 2020 and burned more than 114,000 acres – approximately 175 square miles – of which nearly 100,000 acres were in the Angeles National Forest.
“This record settlement against Southern California Edison provides meaningful compensation to taxpayers for the extensive costs of fighting the Bobcat Fire and for the widespread damage to public lands,” said United States Attorney Bill Essayli. “My office will continue to aggressively pursue recovery for suppression costs and environmental damages from any entity that causes harm to the public’s forests and other precious national resources.”
The United States filed a lawsuit in September 2023 on behalf of the Forest Service against SCE and Utility Tree Service to recover costs incurred fighting the Bobcat Fire and for the extensive damages that it caused to the Angeles National Forest.
The United States alleged that the Bobcat Fire ignited when trees that were not properly maintained by SCE and its tree maintenance contractor came into contact with power lines, causing the blaze to ignite. The wildfire started on September 6, 2020, and resulted in damage to public lands. It caused years of closure of more than 100 miles of trails and numerous campgrounds. It also had a detrimental impact on habitats and wildlife, including to the federally endangered wildlife-mountain yellow-legged frog, federally threatened fish and birds, and irreplaceable cultural and heritage resources.
SCE agreed to pay the $82.5 million settlement within 60 days of the effective date of the settlement agreement, which was May 14, without admitting wrongdoing or fault.
“These settlements are essential in restoring our landscapes after wildfires,” said Acting U.S. Forest Service Pacific Southwest Regional Forester Jason Kuiken.
“We are grateful to receive these settlement funds, which mark an important step toward recovery and restoration,” said Deputy Forest Supervisor Tony Martinez of the Angeles National Forest. “These resources will help us rehabilitate burned areas, restore wildlife habitats, and strengthen our forests’ resilience to future wildfires.”
The United States Forest Service investigated this matter.
Assistant United States Attorneys Sarah Quist and Joseph Tursi of the Complex and Defensive Litigation Section negotiated the settlement in this case.
Russian National and Leader of Qakbot Malware Conspiracy Indicted in Long-Running Global Ransomware SchemeRead the Press Release
LOS ANGELES – A federal grand jury indictment unsealed today charges a Russian national with leading a group of cyber criminals that developed and deployed the Qakbot malware that infected thousands of computers worldwide, installing ransomware and demanding payment from victims.
Rustam Rafailevich Gallyamov, 48, of Moscow, Russia, is charged with one count of conspiracy to commit computer fraud and abuse, and one count of conspiracy to commit wire fraud. He is believed to be in Russia and is not in custody.
In connection with the charges, the Justice Department filed today a civil forfeiture complaint against more than $24 million in cryptocurrency seized from Gallyamov over the course of the investigation. These actions are the latest step in an ongoing multinational effort by the United States, France, Germany, the Netherlands, Denmark, the United Kingdom, and Canada to combat cybercrime.
“The criminal charges and forfeiture case announced today are part of an ongoing effort with our domestic and international law enforcement partners to identify, disrupt, and hold accountable cybercriminals,” said United States Attorney Bill Essayli for the Central District of California. “The forfeiture action against more than $24 million in virtual assets also demonstrates the Justice Department’s commitment to seizing ill-gotten assets from criminals in order to ultimately compensate victims.”
“Today’s announcement of the Justice Department’s latest actions to counter the Qakbot malware scheme sends a clear message to the cybercrime community,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “We will not stop holding cybercriminals accountable, even over a course of years, and we will use every legal tool at our disposal to identify you, charge you, forfeit your ill-gotten gains, and disrupt your criminal activity.”
“Mr. Gallyamov’s bot network was crippled by the talented men and women of the FBI and our international partners in 2023, but he brazenly continued to deploy alternative methods to make his malware available to criminal cyber gangs conducting ransomware attacks against innocent victims globally,” said Akil Davis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The charges announced today exemplify the FBI’s commitment to relentlessly hold accountable individuals who target Americans and demand ransom, even when they live halfway across the world.”
According to the indictment, Gallyamov developed, deployed, and controlled the Qakbot malware beginning in 2008. From 2019 onward, Gallyamov allegedly used the Qakbot botnet to infect thousands of victim computers around the world to establish a network or “botnet” of infected computers. Once Gallyamov gained access to victim computers, he provided access to co-conspirators who infected the computers with ransomware, including Prolock, Dopplepaymer, Egregor, REvil, Conti, Name Locker, Black Basta, and Cactus. Gallyamov was paid a portion of the ransoms received from ransomware victims.
The announcement of charges today is the latest step taken by the Justice Department against the Qakbot conspiracy. In August 2023, a U.S.-led multinational operation disrupted the Qakbot botnet and malware. At that time, the Justice Department announced the seizure of illicit proceeds from Gallyamov, including more than 170 bitcoin and more than $4 million of USDT and USDC tokens.
According to the indictment, after the disruption and takedown of the Qakbot botnet, Gallyamov and his co-conspirators continued their criminal activities. Instead of a botnet, they allegedly used different tactics, including “spam bomb” attacks on victim companies, where co-conspirators would trick employees at those victim companies into granting access to computer systems. The indictment alleges that Gallyamov orchestrated spam bomb attacks against victims in the United States as recently as January 2025. It also alleges that Gallyamov and his co-conspirators deployed Black Basta and Cactus ransomware on victim computers.
On April 25, pursuant to a seizure warrant, the FBI seized additional illicit proceeds from Gallyamov, including more than 30 bitcoin and more than $700,000 of USDT tokens. Today, the Department filed a civil forfeiture complaint in the Central District of California against all the illicit proceeds seized from Gallyamov – worth more than $24 million as of today – to forfeit and ultimately return those funds to victims.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted, Gallyamov would face a statutory maximum sentence of 25 years in federal prison.
The investigation of Gallyamov was led by the FBI’s Los Angeles Field Office, which worked closely with investigators from Germany’s Bundeskriminalamt (BKA), the Netherlands National Police, the French Police Cybercrime Central Bureau, and Europol. The Justice Department’s Office of International Affairs and the FBI Milwaukee Field Office provided significant assistance.
The case against Gallyamov is being prosecuted by Assistant United States Attorneys Khaldoun Shobaki and Lauren Restrepo of the Cyber and Intellectual Property Crimes Section, and the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) Senior Counsel Jessica Peck. Assistant United States Attorney James Dochterman of the Asset Forfeiture and Recovery Section is prosecuting the forfeiture case.
These law enforcement actions were taken in conjunction with Operation Endgame, an ongoing, coordinated effort among international law enforcement agencies aimed at dismantling and prosecuting cybercriminal organizations around the world.
Resources for victims can be found on the following website, which will be updated as additional information becomes available: Qakbot Resources.
Owner of O.C. Staffing Companies Sentenced to 8 Years in Prison for Tax Crimes, Admits to Cheating IRS Out of Nearly $60 MillionRead the Press Release
RIVERSIDE, California – The owner of Orange County-based temporary staffing companies was sentenced today to 96 months in federal prison for willfully evading the payment of nearly $30 million in taxes, penalties and interest, assessed against him to the IRS as well as causing a false tax return to be filed with the IRS as part of defendant’s efforts to conceal nearly $30 million in additional tax liabilities incurred by his staffing companies.
Luis E. Perez, 56, who has maintained residences in Anaheim Hills, Yorba Linda, and Dove Canyon, was sentenced by United States District Judge Kenly Kiya Kato, who also ordered him to pay $38,052,767 in restitution. At today’s hearing, Judge Kato emphasized the “astonishing” period of time defendant engaged in his criminal conduct and the “staggering” amount of money he caused in loss to the government.
Perez pleaded guilty in September 2024 to one count of tax evasion and one count of aiding and assisting in the preparation of a false tax return.
According to his plea agreement, Perez’s companies – which include Checkmates Staffing Inc.; Staffaide Inc.; BaronHR, LLC; BaronHR West Inc.; and Fortress Holding Group LLC – were required to withhold taxes from employee wages and to pay the withheld amounts to the IRS on a periodic basis. These withheld taxes, sometimes known as “trust fund taxes,” include income taxes and Federal Insurance Contributions Act (FICA) taxes that fund Social Security and Medicare.
From May 2009 to January 2017, Perez’s companies failed to pay the IRS the payroll taxes for the tax years 2001, 2002, 2003, 2006, 2007, 2008 and 2010, including trust fund taxes that Perez’s companies withheld from employees’ paychecks. Beginning in June 2007, the IRS attempted to collect Perez’s outstanding tax liability, including penalties and interest. By February 2017, the outstanding balance had grown to $29,593,378, which included the unpaid taxes, interest and the “Trust Fund Recovery Penalty.”
Perez attempted to thwart the IRS’s collection efforts by purchasing luxury items from his business bank accounts – including numerous cars and a boat – and concealing his ownership by placing the titles of these items in the names of his businesses and other individuals. Those luxury items included a Ferrari 360 Spider F, a Rolls Royce Phantom, a Duffy D 22 Bay Island boat, a Mercedes-Benz SLS, a Mercedes-Benz G-Class, and a Lamborghini Aventador. Perez also evaded the IRS’s collection efforts by obtaining a Visa Black credit card in the name of another person (now his wife) to make personal purchases and paid off the credit card using funds from his business bank accounts.
As part of his efforts to impede the IRS, Perez lied to IRS revenue officers during interviews and failed to include material information in documents submitted to the IRS. For example, Perez falsely claimed that he received a salary of only $1,000 per week from BaronHR and he did not receive any other funds from the company, when in fact, Perez distributed money to himself from his businesses by making payments to his now wife for his own benefit.
While on pretrial release for the abovementioned criminal conduct, Perez engaged in additional criminal tax violations. From October 2018 to August 2019, Perez willfully aided and assisted in the preparation of false tax returns that substantially understated the wages paid to the employees of Anaheim-based temporary staffing company BaronHR West from January 2018 through June 2019. Specifically, Perez admitted in his plea agreement that he caused BaronHR West to underreport employee wages and other compensation paid by the company by approximately $130,879,521, which resulted in the company’s failure to pay approximately $29,633,516 in federal employment taxes.
Perez has been in federal custody since August 2024, when a federal magistrate judge revoked his bond after a two-day evidentiary hearing finding probable cause to believe that Perez had violated the terms of his pretrial release by committing still more criminal tax violations between 2021 and 2023. In a motion to revoke Perez’s bond filed with the court in August 2024, the government alleged that Perez had willfully caused his staffing companies to fail to pay over $25 million in federal payroll taxes (including over $13 million in federal trust fund taxes withheld from employee wages) since March 2021.
“[Perez] is a prolific employment tax cheat who engaged in a decades long pattern of willful non-payment, false statements, and outright evasion,” prosecutors argued in a sentencing memorandum. “[Perez] has been unrepentant and unwavering in his violations of the internal revenue laws; he continued his pattern of tax fraud despite extensive efforts to halt his behavior.”
IRS Criminal Investigation investigated this matter.
Assistant United States Attorneys Brett A. Sagel of the Orange County Office, James C. Hughes of the Major Frauds Section, and Robert A. Kemins of the Department of Justice Tax Division prosecuted this case.
Hollywood Man Sentenced to Nearly 5 Years in Prison for Fraudulently Seeking Millions of Dollars in COVID Tax BreaksRead the Press Release
LOS ANGELES – A Hollywood man who admitted to seeking more than $65 million from the IRS by falsely claiming on tax returns that his nonexistent farming business was entitled to COVID-19-related tax credits was sentenced today to 57 months in federal prison.
Kevin J. Gregory, 57, was sentenced by United States District Judge Josephine L. Staton, who also ordered him to pay $2,769,173 in restitution.
Gregory, who has been in federal custody since May 2023, pleaded guilty on January 17 to one count of making false claims to the IRS.
In response to the COVID-19 pandemic and its economic impact, Congress authorized an employee retention tax credit that a small business could use to reduce the employment tax it owed to the IRS, also known as the “employee retention credit.”
To qualify, the business had to have been in operation in 2020 and to have experienced at least a partial suspension of its operations because of a government order related to COVID-19 (for example, an order limiting commerce, group meetings or travel) or a significant decline in profits. The credit was an amount equal to a set percentage of the wages that the business paid to its employees during the relevant time period, subject to a maximum amount.
Congress also authorized the IRS to give a credit against employment taxes to reimburse businesses for the wages paid to employees who were on sick or family leave and could not work because of COVID-19. This “paid sick and family leave credit” was equal to the wages the business paid the employees during the sick or family leave, also subject to a maximum amount.
From November 2020 to April 2022, Gregory made false claims to the IRS for the payment of nearly $65.3 million in tax refunds for a purported Beverly Hills-based farming-and-transportation company named Elijah USA Farm Holdings.
The IRS issued a portion of the refunds Gregory claimed, and Gregory used a significant portion – more than $2.7 million – for personal expenses.
Specifically, in January 2022, Gregory made a false claim to the IRS for the payment of a tax refund in the amount of $23,877,620, which he submitted as part of Elijah Farm’s quarterly federal tax return. Gregory claimed Elijah Farm employed 33 people, paid nearly $1.6 million in quarterly wages, had deposited nearly $18 million in federal taxes, and was entitled to nearly $6.5 million in COVID-relief tax credits.
In fact, Gregory knew that Elijah Farm employed nobody and paid wages to no one and had not made federal tax deposits to the IRS in the amounts stated on his tax return.
IRS Criminal Investigation investigated this matter.
Assistant United States Attorney Kristen A. Williams of the Major Frauds Section prosecuted this case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. More information on the Justice Department’s response to the pandemic may be found here.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it to the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at (866) 720-5721 or via the NCDF online complaint form.
Former Los Angeles Deputy Mayor of Public Safety Agrees to Plead Guilty to Threatening to Bomb L.A. City Hall Last YearRead the Press Release
LOS ANGELES – A former Los Angeles Deputy Mayor of Public Safety was charged today with threatening to bomb Los Angeles City Hall last year.
Brian K. Williams, 61, of Pasadena, is charged in a single-count information with threats regarding fire and explosives.
In a related filing today, Williams agreed to plead guilty to the felony charge, which carries a statutory maximum sentence of 10 years in federal prison.
Williams is expected to make his initial appearance in United States District Court in downtown Los Angeles in the coming weeks.
“In an era of heated political rhetoric that has sometimes escalated into violence, we cannot allow public officials to make bomb threats,” said United States Attorney Bill Essayli. “My office will continue its efforts to keep the public safe, including from those who violate their duty to uphold the law.”
“Mr. Williams, the former deputy mayor of Public Safety for Los Angeles, not only betrayed the residents of Los Angeles, but responding officers, and the integrity of the office itself, by fabricating a bomb threat,” said Akil Davis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Government officials are held to a heightened standard as we rely on them to safeguard the city. I’m relieved that Mr. Williams has taken responsibility for his inexplicable actions.”
According to his plea agreement, on October 3, 2024, while serving as Deputy Mayor of Public Safety for the City of Los Angeles, Williams participated in a virtual meeting with multiple people in connection with his official duties. During this meeting, Williams used the Google Voice application on his personal cellphone to place a call to his city-issued cellphone. Williams then left the virtual meeting and placed a call to the Chief of Staff of the Los Angeles Police Department (LAPD). During this call, Williams falsely stated that he had just received a call on his city-issued cellphone from an unknown man who threatened to bomb Los Angeles City Hall.
In fact, Williams received no such call and had made the bomb threat himself. At no time did Williams intend to carry out the threat.
Approximately 10 minutes later, Williams sent a text message to the Los Angeles Mayor and several high-ranking city officials in the Mayor’s office and falsely reported, “Bomb threat: I received phone call on my city cell at 10:48 am this morning. The male caller stated that ‘he was tired of the city support of Israel, and he has decided to place a bomb in City Hall. It might be in the rotunda.’ I immediately contacted the chief of staff of LAPD, they are going to send a number of officers over to do a search of the building and to determine if anyone else received a threat.” In fact, Williams had not received such a call.
Shortly thereafter, LAPD officers responded to City Hall to investigate the threat Williams reported. Police searched the building and did not locate any suspicious packages or devices. Williams described to police the threatening call he claimed to have received, showed them the record of an incoming call that appeared as a blocked number on his city-issued cellphone, and said it was the unknown man who conveyed the threat. In fact, that incoming call record was the call Williams had placed to himself from the Google Voice application on his personal cellphone.
Williams then sent additional text messages to the Los Angeles Mayor and other high-ranking city officials stating, “At this time, there is no need for us to evacuate the building, I’m meeting with the threat management officers within the next 10 minutes. In light of the Jewish holidays, we are taking this thread, a little more seriously. I will keep you posted.”
The FBI’s Joint Terrorism Task Force is investigating this matter. The Los Angeles Police Department provided substantial assistance.
Assistant United States Attorney David T. Ryan, Chief of the National Security Division, is prosecuting this case.
Former Exec at O.C. Company and Illegal Alien Arrested on Federal Complaint Alleging He Embezzled $7 Million from His EmployerRead the Press Release
SANTA ANA, California – A former executive at a Newport Beach company that specializes in the purchase of classic cars – who also happens to be an illegal alien from Mexico – was arrested today on a federal complaint alleging he embezzled approximately $7 million from his employer.
Alexander G. Ramos, 62, of Newport Beach, is charged with wire fraud, a felony that carries a statutory maximum sentence of 20 years in federal prison.
A federal magistrate judge ordered Ramos jailed without bond and scheduled an arraignment for June 30.
According to an affidavit filed with the complaint, Ramos was employed at the victim company since 2017 until his termination in September 2024 in the company’s Risk Management Department. Through his positions, he knew his employer’s loans and held relationships with title agents or other partners nationwide. He also oversaw requests by the company’s Title and Risk Department to its Accounting Department for payment to title agents, sometimes submitting the requests himself.
Ramos allegedly caused checks to be issued from the victim company to certain parties, including a Las Vegas DMV services business. The checks were supposed to cover expenses for tax, titling, and licensing associated with car purchases.
However, Ramos purposely caused his employer to send too much money to the outside entities. He then directed those entities on how to dispose of the extra money, including by sending the funds to bank accounts that he controlled.
A law enforcement review of financial records revealed that approximately $7 million in checks and wires were deposited into Ramos-controlled bank accounts from the outside entities in the car industry. The origin of some of the funds deposited into Ramos’s bank accounts showed the checks and wires were made out to the victim company and were intended as refunds to that company’s clients who had overpaid for vehicle registration fees.
Instead of being returned directly to the Ramos’s employer, Ramos allegedly moved the funds to other accounts he controlled for his personal use, including buying a home in Irvine. The illegal transfers date back to at least January 2020, according to the complaint.
Ramos is an illegal alien from Mexico who was removed from the United States in 2017 but later returned.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty beyond a reasonable doubt in court.
The FBI and the Federal Deposit Insurance Corporation Office of Inspector General are investigating this matter.
Assistant United States Attorney Kevin Fu of the Orange County Office is prosecuting this case.
California Man Sentenced for 20-Year Scheme to Evade Employment TaxesRead the Press Release
A California man was sentenced today to 96 months in prison and ordered to pay $38 million in restitution for a decades-long scheme to evade employment taxes.
The following is according to court documents and statements made in court: for more than 20 years, Luis E. Perez was the owner and primary decision-maker for more than a dozen labor staffing companies including Check Mate Inc., BaronHR LLC, BaronHR West Inc., and Fortress Holding Group LLC. Typically, a labor staffing company helps connect job candidates with client-companies looking for temporary employees. The staffing company also usually remains responsible for paying the temporary employees’ wages and complying with associated reporting and tax obligations. Specifically, the companies were responsible for withholding Social Security, Medicare, and income taxes from employees’ wages and paying those funds over to the IRS each quarter. They were also responsible for paying their own Social Security and Medicare taxes. The timely payment of these taxes is critical to the functioning of the U.S. government, because, for example, they are the primary source of funding for Social Security and Medicare. The federal income taxes that are withheld from employees’ wages also account for a significant portion of all federal income taxes collected each year.
For nearly as long as Perez was in business, he was noncompliant with his tax obligations. Starting as early as 2001, Perez began not paying over the full amount of taxes withheld from employees’ wages or the full amount of Social Security and Medicare taxes his companies owed. In June 2007, Perez personally owed the IRS taxes related to Check Mate Inc., which the IRS was attempting to collect. By 2017, Perez’s outstanding tax liability had ballooned to nearly $30 million. Between 2007 and 2017, Perez tried to hinder IRS collection efforts in a number of ways. He used BaronHR and Fortress Holding Group’s bank accounts to make personal purchases, such as several luxury items, including automobiles and a boat. He titled the items in the names of several nominees to conceal his ownership from the IRS and to prevent the IRS from seizing them. In addition, he opened a credit card in the name of a nominee and used the card to make personal purchases. He then paid the bills for that credit card from those same business bank accounts. Perez also funneled money from BaronHR and Fortress Holding Group to a nominee, but then used the funds for himself. To further impede IRS collection efforts, Perez lied to IRS revenue officers and submitted false forms to the IRS about his income.
Perez’s misconduct continued even after he was charged for tax offenses in February 2018. From January 2018 through June 2019, he reported that BaronHR West had paid total wages of approximately $54 million and paid approximately $7 million in total taxes on these wages to the IRS. In fact, BaronHR West paid approximately $185 million in total wages and was required but did not pay approximately $37 million in total taxes to the IRS. Similarly, during the first quarter of 2022, BaronHR West paid about $30 million in wages and was obligated to pay nearly $6 million in taxes. The company paid only $76,000.
In total, Perez caused a tax loss to the IRS of approximately $60 million.
Instead of paying his tax obligations, Perez used the money to fund a lavish lifestyle for himself, including multiple large residences, courtside seats to the Los Angeles Lakers, a private jet, a yacht, and dozens of luxury automobiles, including Bentleys and Lamborghinis.
In addition to his prison sentence, U.S. District Court Judge Kenly Kiya Kato for the Central District of California ordered Perez to serve three years of supervised release and pay $38,052,767 in restitution to the IRS.
Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and U.S. Attorney Bilal A. Essayli for the Central District of California made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorney Robert Kemins of the Tax Division and Assistant U.S. Attorneys Brett A. Sagel and James C. Hughes for the Central District of California prosecuted the case
16 Defendants Federally Charged in Connection with DanaBot Malware Scheme That Infected Computers WorldwideRead the Press Release
LOS ANGELES – A federal grand jury indictment and criminal complaint unsealed today charge 16 defendants who allegedly developed and deployed the DanaBot malware which a Russia-based cybercrime organization controlled and deployed, infecting more than 300,000 victim computers around the world, facilitated fraud and ransomware, and caused at least $50 million in damage.
The defendants include Aleksandr Stepanov, 39, a.k.a. “JimmBee,” and Artem Aleksandrovich Kalinkin, 34, a.k.a. “Onix”, both of Novosibirsk, Russia. Stepanov was charged with conspiracy, conspiracy to commit wire fraud and bank fraud, aggravated identity theft, unauthorized access to a protected computer to obtain information, unauthorized impairment of a protected computer, wiretapping, and use of an intercepted communication.
Kalinkin was charged with conspiracy to gain unauthorized access to a computer to obtain information, to gain unauthorized access to a computer to defraud, and to commit unauthorized impairment of a protected computer. Both defendants are believed to be in Russia and are not in custody.
According to the indictment and complaint, DanaBot malware used a variety of methods to infect victim computers, including spam email messages containing malicious attachments or hyperlinks. Victim computers infected with DanaBot malware became part of a botnet (a network of compromised computers), enabling the operators and users of the botnet to remotely control the infected computers in a coordinated manner. The owners and operators of the victim computers are typically unaware of the infection.
The DanaBot malware allegedly operated on a malware-as-a-service model, with the administrators leasing access to the botnet and support tools to client coconspirators for a fee that was typically several thousand dollars a month. The DanaBot malware was multi-featured and had extensive capabilities to exploit victim computers. It could be used to steal data from victim computers, and to hijack banking sessions, steal device information, user browsing histories, stored account credentials, and virtual currency wallet information.
DanaBot also had the capability to provide full remote access to victim computers, to record keystrokes, and record videos showing the activity of users on victim computers. DanaBot has further been used as an initial means of infection for other forms of malware, including ransomware. The DanaBot malware has infected over 300,000 computers around the world, and caused damage estimated to exceed $50 million.
DanaBot administrators operated a second version of the botnet that was used to target victim computers in military, diplomatic, government, and related entities. This version of the botnet recorded all interactions with the computer and sent stolen data to a different server than the fraud-oriented version of DanaBot. This variant was allegedly used to target diplomats, law enforcement personnel, and members of the military in North America, and Europe.
“Pervasive malware like DanaBot harms hundreds of thousands of victims around the world, including sensitive military, diplomatic, and government entities, and causes many millions of dollars in losses,” said United States Attorney Bill Essayli for the Central District of California. “The charges and actions announced today demonstrate our commitment to eradicating the largest threats to global cybersecurity and pursuing the most malicious cyber actors, wherever they are located.”
“The enforcement actions announced today, made possible by enduring law enforcement and industry partnerships across the globe, disrupted a significant cyber threat group, who were profiting from the theft of victim data and the targeting of sensitive networks,” said Special Agent in Charge Kenneth DeChellis of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Cyber Field Office. “The DanaBot malware was a clear threat to the Department of Defense and our partners. DCIS will vigorously defend our infrastructure, personnel, and intellectual property."
"Today's announcement represents a significant step forward in the FBI's ongoing efforts to disrupt and dismantle the cyber-criminal ecosystem that wreaks havoc on global digital security," said Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office. "We are grateful for the coordinated efforts of our domestic and international law enforcement partners in holding cyber criminals accountable, no matter where they operate."
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted, Kalinkin would face a statutory maximum sentence of 72 years in federal prison, and Stepanov would face a statutory maximum sentence of five years in federal prison.
As part of today’s operation, Defense Criminal Investigative Service (DCIS) agents effected seizures and takedowns of DanaBot command and control servers, including dozens of virtual servers hosted in the United States. The U.S. government is now working with partners including the Shadowserver Foundation to notify DanaBot victims and help remediate infections.
These law enforcement actions were taken in conjunction with Operation Endgame, an ongoing, coordinated effort among international law enforcement agencies aimed at dismantling and prosecuting cybercriminal organizations around the world.
Amazon, Crowdstrike, ESET, Flashpoint, Google, Intel 471, Lumen, PayPal, Proofpoint, Spycloud, Team CYMRU, and ZScaler provided valuable assistance.
The investigation into DanaBot was led by the FBI’s Anchorage Field Office and the Defense Criminal Investigative Service, working closely with Germany’s Bundeskriminalamt (BKA), the Netherlands National Police, and the Australian Federal Police. The Justice Department’s Office of International Affairs provided significant assistance.
Assistant United States Attorney Aaron Frumkin of the Cyber and Intellectual Property Crimes Section is prosecuting these cases. Assistant United States Attorney James E. Dochterman of the Asset Forfeiture and Recovery Section is handling the forfeiture case.
Insurance Brokerage Executive Agrees to Plead Guilty to Making Tens of Thousands of Dollars in Illegal Campaign ContributionsRead the Press Release
LOS ANGELES – An insurance brokerage executive was charged today with breaking federal campaign laws by making so-called “conduit” campaign contributions –contributions illegally made in the name of another person – to a joint fundraising committee that included a U.S. Senator’s principal campaign committee.
Teena Maria Hostovich, 66, of La Cañada Flintridge, is charged in a single-count information with making contributions in the name of another aggregating to more than $10,000 in a year, a felony that carries a statutory maximum sentence of two years in federal prison.
In a related filing today, Hostovich has agreed to plead guilty to the federal criminal charge and agreed to pay a fine of $43,500.
Hostovich is expected to make her initial appearance in United States District Court in downtown Los Angeles in the coming weeks.
According to her plea agreement, from May 2020 through 2023, Hostovich knowingly and willfully made a total of $75,700 in contributions to federal candidates’ principal campaign committees and federal joint fundraising committees in the names of other people. For the calendar years 2021 through 2023, Hostovich’s conduit contributions aggregated to more than $10,000 during each of those years.
To make these illegal campaign contributions, Hostovich used 11 different people – including employees at the insurance brokerage that employed her, family members of those employees, and individuals who performed personal services for Hostovich and her family.
As part of the scheme, Hostovich contacted one of these individuals or their family members and asked them to contribute individually or have one of their family members contribute to a particular candidate’s campaign or fundraising committee. Hostovich then paid the person the funds via PayPal either before the contribution was made or reimbursed them afterward.
To execute these conduit contributions, Hostovich sometimes explicitly stated that she would advance the money for the contribution or pay the person back for that contribution. Other times, the person had an implicit understanding that Hostovich would advance the money or reimburse them based on her history of advancements and reimbursements of political contributions. Hostovich generally advanced or reimbursed these individuals in amounts that exceeded the exact contribution amount but often the amounts were very close to the contribution amount.
Hostovich admitted in her plea agreement that one of the reasons she engaged in conduit contributions was to secure an appointment to the Kennedy Center Board of Trustees in Washington, D.C. She did not obtain this position.
The recipients of the illegal contributions included a joint fundraising committee that included a United States senator’s principal campaign committee, a principal campaign committee for a U.S. senatorial candidate, principal campaign committees for two members of the U.S. House of Representatives, and a joint fundraising committee that included the principal campaign for a presidential candidate.
At no time did Hostovich reveal to any of these candidate committees or joint fundraising committees that she was the true source of the funds donated by the 11 individuals. Hostovich further admitted that she knew it was unlawful to make conduit contributions and that, before executing this scheme, she made numerous political contributions to federal candidates and served as a host for political fundraisers.
The FBI investigated this matter.
Assistant United States Attorney Thomas F. Rybarczyk of the Public Corruption and Civil Rights Section is prosecuting this case.
13 Members and Associates of Rival Armenian Syndicates Arrested on Federal Complaints Alleging Attempted Murder, Kidnapping, TheftRead the Press Release
LOS ANGELES – Law enforcement officials in California and Florida today arrested 13 alleged members and associates of Armenian organized crime syndicates who are charged in five federal complaints with a series of crimes – including attempted murder, kidnapping, tens of millions of dollars’ worth of thefts of online retailer shipments, and illegal firearm possession – to expand and maintain their control in the San Fernando Valley.
Among the defendants charged are Ara Artuni, 41, of Porter Ranch, who is charged with attempted murder in aid of racketeering, and a rival, Robert Amiryan, 46, of Hollywood, who is charged with kidnapping.
The defendants arrested today in California are expected to make their initial appearances this afternoon and tomorrow afternoon in United States District Court in downtown Los Angeles. Vahan Harutyunyan, 49, of Hollywood, Florida, made his initial appearance earlier today in Fort Lauderdale, Florida and was ordered detained. Two of the remaining defendants, Levon Arakelyan, 45, of Las Vegas, and Ivan Bojorquez, 33, of Gardena, are presently detained in state custody on unrelated matters.
Law enforcement is still seeking one defendant and seized approximately $100,000 in cash, three armored vehicles, and 14 firearms during today’s operation.
According to affidavits filed with the criminal complaints, Armenian Organized Crime, a Russian mafia-affiliated transnational criminal organization, has made Los Angeles County a center of U.S. operations. Since 2022, two local leaders within the organization, also known as avtoritet, which in Russian means “authority,” allegedly have engaged in a power struggle for control in their territory, resulting in multiple murder attempts and a kidnapping.
Artuni, an avtoritet, is charged with ordering the attempted murder of Amiryan during the summer of 2023. In retaliation, Amiryan, also an avtoritet, allegedly conspired with members of his own criminal organization to kidnap and torture one of Artuni’s associates in June 2023.
In addition to attempted murder, Artuni and his criminal enterprise has, since at least 2021, allegedly committed additional crimes, including bank fraud, wire fraud, and “cargo theft” targeting online retailers such as Amazon.com Inc. Artuni Enterprise members and associates enrolled with Amazon as carriers, contracted for trucking routes, and then, while transporting the goods, diverged from the route and stole all or part of the shipment. To date, the Artuni Enterprise has allegedly stolen goods from Amazon worth more than $83 million, according to estimates provided by Amazon.
The Artuni Enterprise also ran a “credit card bust-out” scheme in which they charged various credit cards to a sham business then drained the business account before the credit card companies could collect the to-be disputed funds.
“Today’s arrests reflect that my office and our law enforcement partners are committed to keeping America safe by dismantling transnational criminal organizations,” said United States Attorney Bill Essayli. “Let today’s enforcement action be a warning to criminals: Our communities are not your playground to engage in violence and thuggery.”
“This transnational criminal organization operated with the structure and brutality of an international cartel, inflicting significant harm on public safety and causing substantial damage to legitimate commerce and supply chains,” said HSI Los Angeles Acting Deputy Special Agent in Charge Dwayne Angebrandt. “Dismantling transnational criminal organizations is at the core of HSI’s mission, and through close collaboration with our law enforcement partners, we are holding these perpetrators accountable and disrupting their criminal enterprise at every level.”
“Our commitment to public safety is strengthened through collaboration,” said Los Angeles Police Chief Jim McDonnell. “By working hand-in-hand with our federal, state, and local law enforcement partners, we are united in our mission to identify, apprehend, and bring violent criminals to justice. Together, we are sending a clear message: violence will not be tolerated in our communities.”
“Investigators from the Burbank Police Department spent hundreds of hours investigating these heinous violent crimes,” said Burbank Police Chief Rafael Quintero. “The Burbank Police Department is grateful for the assistance from its law enforcement partners and the United States Attorney’s Office for their work in holding these individuals accountable for their actions.”
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty beyond a reasonable doubt in court.
If convicted of all charges, the defendants will face statutory maximum sentences ranging from 10 years in federal prison to life imprisonment.
The Los Angeles Police Department Major Crimes Division – Transnational Organized Crime Section; the Burbank Police Department; Homeland Security Investigation’s (HSI) Northridge and Ventura offices; the United States Department of Health and Human Services Office of Inspector General (HHS-OIG); IRS Criminal Investigation; and the Bureau of Alcohol, Tobacco, Firearms and Explosives are investigating this matter.
Assistant United States Attorneys Lyndsi Allsop and Kenneth R. Carbajal of the Violent and Organized Crime Section and Tara B. Vavere of the Asset Forfeiture and Recovery Section are prosecuting this case. The Department of Justice Criminal Division’s Violent Crime and Racketeering Section provided substantial assistance.
These cases are part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime.
Santa Barbara County Investment Advisor Sentenced to over 10 Years in Prison for Stealing Nearly $2.3 Million from Elderly ClientsRead the Press Release
LOS ANGELES – A Santa Barbara County investment advisor was sentenced today to 121 months in federal prison for stealing approximately $2.25 million from elderly clients of her investment advisory business, including clients that were receiving end-of-life care.
Julie Anne Darrah, 52, of Santa Maria, was sentenced by United States District Judge Otis D. Wright II, who will schedule a restitution hearing at a later date.
Darrah pleaded guilty on March 4 to one count of wire fraud.
During the scheme, Darrah stole approximately $2.25 million from her firm’s clients. She did so by obtaining control of her victims’ assets, and then – without the victims’ knowledge or consent – she liquidated their security holdings and transferred the proceeds to accounts she controlled. As part of this, she convinced victims to sign documents making her the trustee of their trusts or a signatory on their bank accounts or giving her power of attorney over their brokerage accounts and allowing her – as their investment advisor – to transfer funds from their accounts to other bank accounts, including to her own accounts.
Darrah took advantage of trust victims placed in her – often convincing them she would take care of them in their older years like a daughter, and she used this trust to convince them to sign the documents that she then used to steal money from them. In this way, Darrah stole money from victims from approximately November 2016 to July 2023. She used stolen funds to buy properties for herself, pay other personal expenses, buy luxury vehicles, and operate other business ventures. Some victims were left in desperate circumstances, without the money to pay for end-of-life care, when the fraud was discovered.
Darrah also convinced a company identified in the plea agreement as “Business Victim 1,” a Minnesota-based investment advisor firm, to acquire VFM based on false and misleading statements and the concealment of material facts, including not telling that firm about her theft of individual client funds. After the fraud was discovered, Business Victim 1 incurred approximately $5.4 million in losses.
In October 2023, the SEC filed a civil complaint against Darrah in connection with this scheme. In December 2024, United States District Judge Dale S. Fischer found Darrah liable to pay $2,416,511, including interest.
The FBI and the Federal Deposit Insurance Corporation Office of Inspector General investigated this matter.
Assistant United States Attorney Kerry L. Quinn of the Major Frauds Section prosecuted this case.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. English, Spanish and other languages are available.
Operation Guardian Angel Launched to Neutralize California’s Sanctuary State Policies that Protect Criminal Illegal AliensRead the Press Release
LOS ANGELES – The United States Attorney’s Office along with its federal law enforcement partners today announced the launch of Operation Guardian Angel, a program that seeks to neutralize California’s sanctuary state policy and protect Americans from criminal illegal aliens incarcerated in county jails by issuing federal arrest warrants for them.
The Central District of California – comprised of the counties of Los Angeles, Orange, Riverside, San Bernardino, San Luis Obispo, Santa Barbara, and Ventura – is home to an estimated 1.5 million illegal aliens. Among this population are gang members and other dangerous felons.
The operation will file complaints and arrest warrants to allow federal law enforcement to take as many defendants as possible into custody from state jails. The program, which began May 10, has resulted in the arrest of 13 defendants as of May 15. Those numbers are expected to grow.
“Even the worst criminal aliens in state custody are frequently released into the community because California’s sanctuary state policies block cooperation with federal law enforcement,” said United States Attorney Bill Essayli. “These laws effectively render federal immigration detainers meaningless. The days of giving criminal illegal aliens a free pass are over. While California may be presently disregarding detainers, it cannot ignore federal arrest warrants.”
The danger to the community of state protection of criminal illegal aliens could not be starker. In February 2025, José Cristian Saravia-Sánchez, 30, of Mexico, shot and killed an Inglewood man who tried to stop him from stealing a catalytic converter. Despite the fact he was an illegal alien who had been convicted of vehicle theft, was removed from the United States in 2013, and had been arrested 11 times between June 2022 and August 2024, local law enforcement was prevented by state law from complying with an immigration detainer request.
The goal of Operation Guardian Angel is to neutralize – as far as possible – California’s sanctuary state policy and make our community safer.
Narco-Terrorists Charged in Federal Indictment with Exchanging Cocaine for Firearms, Explosives in War with Colombia’s GovernmentRead the Press Release
LOS ANGELES – A commander of the Revolutionary Armed Forces of Colombia – People’s Army (FARC-EP) foreign terrorist organization and his associate have been charged in a six-count superseding indictment alleging they are senior members of a large cocaine-manufacturing ring that trades cocaine to buy firearms to engage in terrorist activity in Colombia, the Justice Department announced today.
Iván Jacobo Idrobo Arredondo, 39, a.k.a. “Marlon Vásquez,” and Juan Diego Palta Montero, 26, a.k.a. “Ñeque,” are charged with:
- one count of attempting to provide material support to a foreign terrorist organization;
- one count of conspiracy to engage in narco-terrorism;
- one count of conspiracy to manufacture and distribute cocaine for the purpose of unlawful importation;
- one count of conspiracy to possess firearms, machine guns, and destructive devices in furtherance of a drug trafficking offense; and
- one count of distribution of cocaine for the purpose of unlawful importation.
Idrobo is charged with one additional count of possession of firearms, machine guns, and destructive devices in furtherance of a drug trafficking offense. Both defendants are believed to be in Colombia and are not in custody.
According to the superseding indictment that was unsealed on May 5, FARC-EP is a dissident faction of the FARC terrorist group and emerged after its rejection of a 2016 peace agreement between FARC and the Colombian government. FARC-EP is Colombia’s most powerful and violent dissident group and has continued to carry out criminal acts, including assassinations, extortion, hostage-takings, and armed assaults. The group focuses most of its attacks on Colombian government and military targets but has also attacked critical infrastructure, Colombian civilians, and U.S. military personnel in the country. FARC-EP equips its members with firearms, machine guns, mines, and bombs.
The group disseminates propaganda videos to convince the Colombian public and government that FARC-EP controls Colombia, to threaten rivals, and to recruit young Colombians to join it. Idrobo has appeared in and is the primary speaker in some of these videos. FARC-EP controls an area of Colombia responsible for producing approximately 70% of the cocaine manufactured in that nation.
The United States designated FARC-EP a foreign terrorist organization in December 2021. FARC-EP partners with other terrorist organizations, including the Sinaloa Cartel, Cartel de Jalisco Nueva Generación (CJNG), and Nueva Familia Michoacana.
From March 2023 to March 2024, Idrobo and Palta knowingly attempted to provide material support and resources to FARC-EP by way of thousands of rounds of ammunition, including for AK-47s, rocket-propelled grenade launchers, 100 grenades, and 12 machine guns – weapons they attempted to obtain by exchanging cocaine they had manufactured and distributed at Colombia-based laboratories Idrobo and others owned and operated.
In one such drug deal in Colombia in May 2023, seven kilograms (15.4 pounds) of cocaine – intended for importation and distribution into the United States, including Southern California – in exchange for Colombian pesos worth approximately $10,715.
In December 2023, a co-conspirator traveled to the Czech Republic on Idrobo’s behalf to review and examine weapons that would be traded for cocaine to be imported into the United States. Following a meeting with a purported weapons supplier, the co-conspirator discussed how FARC-EP sought to obtain rocket-propelled grenade launchers to shoot at the Colombian presidential palace, Colombian army helicopters, Colombia’s Supreme Court building, local police stations, and the place where Colombian President Gustavo Petro was located, to force Colombia’s government to respect them.
Later that month, the defendants, along with a co-conspirator, distributed approximately 21 kilograms (46.3 pounds) of cocaine packaged in materials depicting the Hollywood sign in Los Angeles to a buyer.
Four other Colombian nationals were also charged in a related indictment also unsealed on May 5. Two defendants – Jorge Eliecer Luque Monsalve, 53, a.k.a. “Jorge Col,” and Rubén Darío García Londoño, 41, a.k.a. “Bencho,” have been arrested by Colombian authorities. Luque is pending extradition to the United States and García has been extradited to the United States and made his initial appearance in U.S. District Court in Los Angeles on May 5. García was ordered detained pending trial and entered a plea of not guilty. His trial is scheduled to begin on July 1.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted of all charges, the defendants would face a mandatory minimum sentence of 50 years in federal prison and a statutory maximum sentence of life imprisonment.
The Drug Enforcement Administration’s Los Angeles Field Division and Bogotá Country Office are investigating this matter with substantial assistance from the Colombian National Police, the Czech Republic Police’s National Counterterrorism, Extremism and Cybercrime Agency (NCTEKK) and Special Activities Unit (UZC SKPV PCR). The Justice Department’s Office of International Affairs and the Criminal Division’s Narcotic and Dangerous Drug Section’s Office of Judicial Attaché in Bogotá, Colombia, provided significant assistance.
Assistant United States Attorneys Benedetto L. Balding, Kyle W. Kahan, and Kelly L. Larocque of the Transnational Organized Crime Section are prosecuting this case.
These cases are part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime.
West Los Angeles Man Sentenced to 40 Years in Prison for Using Snapchat to Entice Children into Producing Sexually Explicit VideosRead the Press Release
LOS ANGELES – A resident of the Westside of Los Angeles was sentenced today to 480 months in federal prison for using apps such as Snapchat to meet and entice children to engage in sexually explicit video-chats which he screen-captured and saved, unbeknownst to the children.
Mark David Wallin, 44, of the Del Rey neighborhood of Los Angeles, was sentenced by United States District Judge Maame Ewusi-Mensah Frimpong, who scheduled a restitution hearing for August 13.
At today’s hearing, Judge Frimpong said Wallin committed “cruel and relentless” crimes against children and that his conduct was “highly sexualized sadomasochistic conduct that no child should know of, let alone be exposed to.”
Wallin, who has been in federal custody since July 2022, pleaded guilty in September 2024 to one count of production of child pornography and one count of enticement of a minor to engage in criminal sexual activity.
From 2019 to August 2021, Wallin used the internet to “meet” pre-teen boys and girls – both abroad and in the United States – then developed relationships with them online, with the intent to obtain sexually explicit images and videos from them. Wallin also persuaded the victims to engage in sexually explicit conduct via video-chat, which he screen-captured and saved.
After his victims sent him sexually explicit content, Wallin would sometimes demand additional sexually explicit images and videos from them. Wallin also threatened to publish or otherwise expose the prior pictures and videos sent by the victim or created by defendant if the victim did not comply with his demands.
For example, in February and March of 2020, Wallin enticed a victim, who was approximately 9-10 years old at the time, to produce sexually explicit images and videos used on the social media app Snapchat.
Wallin admitted in his plea agreement to knowingly causing at least four additional victims – ranging in age from 12 to 16 years old – to produce multiple files of child pornography.
Wallin further admitted to possessing approximately 200 files containing child sexual abuse material in August 2021.
Homeland Security Investigations investigated this matter, with the Los Angeles County Sheriff’s Department providing assistance.
Assistant United States Attorneys Scott M. Lara of the Domestic Security and Immigration Crimes Section and Catharine A. Richmond of the Violent and Organized Crime Section prosecuted this case.
Three MS-13 Members Charged in Federal Complaints Alleging They Murdered Cooperating Defendant in Racketeering CaseRead the Press Release
LOS ANGELES – Three members of the Mara Salvatrucha-13 (MS-13) transnational street gang – one of them an illegal alien from El Salvador – have been charged in federal criminal complaints with murdering a former MS-13 member earlier this year who was cooperating with law enforcement on a federal racketeering and methamphetamine trafficking case, the Justice Department announced today.
Dennis Anaya Urias, 26, of South Los Angeles, and Grevil Zelaya Santiago, 25, of South Los Angeles, are charged via federal complaint with murder in aid of racketeering, a felony that carries a mandatory sentence of life in federal prison and a possible death sentence.
Roberto Carlos Aguilar, 30, of South Los Angeles, is charged in a separate federal criminal complaint with murder in aid of racketeering. Aguilar is an illegal alien from El Salvador. Urias is a legal permanent resident from El Salvador, and Santiago is an illegal alien from Honduras.
All three defendants made their initial appearances late Thursday in United States District Court in downtown Los Angeles. A federal magistrate judge ordered them jailed without bond and scheduled their arraignments for June 3.
According to affidavits filed with the complaints, Urias and Santiago shot the victim to death at a grocery store in South Los Angeles on February 18. The victim’s status as a government cooperator was well known by MS-13 and made the victim subject to a “green light” order that made him a target for murder by MS-13 members.
Approximately one hour before the victim’s death, he had what appeared to be a chance encounter with Aguilar inside the grocery store. Following that encounter, Aguilar set in motion a series of events that led to Urias and Santiago shooting and killing the victim.
During the evening of February 18, the victim made two telephone calls to authorities and said he was at a grocery store in South Los Angeles where MS-13 members had just tried to kill him. He said he had been talking with MS-13 members when a man whose face was covered approached and tried to shoot him, but the gun did not fire. At one point during the second telephone call, several gunshots were heard.
By murdering the victim, Aguilar, Urias and Santiago either avoided discipline or enhanced their status within MS-13, according to court documents.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI and the Los Angeles Police Department are investigating these matters.
Assistant United States Attorney Shawn T. Andrews of the General Crimes Section is prosecuting these cases.
These cases are part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime.
Brentwood Man Found Guilty of Cyberstalking New Jersey JudgeRead the Press Release
LOS ANGELES – A man from the Brentwood neighborhood of Los Angeles has been found guilty by a jury of a federal felony for sending dozens of emails to a New Jersey state court judge that threatened violence and death against the victim, the Justice Department announced today.
Jonathan Lipman, 36, was found guilty late Thursday of one count of stalking. He has been in federal custody since September 2023.
According to evidence presented at a three-day trial, from February 2023 to September 2023, Lipman sent dozens of emails to the victim, a New Jersey Superior Court judge, intending to harass, intimidate, and terrorize the victim.
In addition to voluminous threatening emails to the victim, Lipman also tracked down the victim’s home address and called the victim’s neighbor to stoke fear in the victim. Lipman also left numerous voicemails at the New Jersey courthouse directed at the victim.
Lipman continued his course of conduct despite a warning from law enforcement regarding his illegal conduct. Over time, Lipman’s communications became increasingly graphic and explicit. For example, in July 2023, Lipman sent the victim multiple emails detailing his graphic depictions of the jurist’s death.
United States District Judge Fernando L. Aenlle-Rocha scheduled an October 3 sentencing hearing, at which time Lipman will face a statutory maximum sentence of five years in federal prison.
The FBI investigated this matter.
Assistant United States Attorneys Clifford D. Mpare of the General Crimes Section and Daniel H. Weiner of the Transnational Organized Crime Section are prosecuting this case.
10-Time Convicted Felon Arrested on Federal Indictment Alleging He Caused Four Fatal Fentanyl ODs at Palmdale House Last YearRead the Press Release
LOS ANGELES – A 10-time convicted felon from the Antelope Valley has been arrested on a 10-count federal grand jury indictment alleging he distributed fentanyl that resulted in the overdose deaths of four victims at a Palmdale house last year, the Justice Department announced today.
Damian Michael Evans, 46, of Palmdale, was arrested Thursday and is scheduled to be arraigned this afternoon in United States District Court in Los Angeles.
He is charged with one count of distribution of fentanyl resulting in death, two counts of possession with intent to distribute methamphetamine, two counts of possession with intent to distribute fentanyl, two counts of possession with intent to distribute cocaine, one count of possession with intent to distribute methylenedioxymethamphetamine (MDMA), one count of possessing a firearm and ammunition in furtherance of a drug trafficking crime, and one count of being a felon in possession of a firearm and ammunition.
According to the indictment returned on Wednesday, Evans on January 15, 2024, knowingly and intentionally distributed fentanyl, the use of which resulted in the deaths of four victims in Palmdale. Evans allegedly also possessed other illegal narcotics in late 2023 and early 2024, including after the four fatal fentanyl overdoses in Palmdale.
Evans also illegally possessed a revolver and ammunition in furtherance of his drug trafficking activities. He is not legally permitted to possess them because his criminal history includes convictions dating from 1997 to 2016 in Los Angeles Superior Court for 10 felonies – nine of them drug-related convictions and most of them for drug dealing.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted of all charges, Evans would face a mandatory minimum sentence of 25 years in federal prison and a statutory maximum sentence of life imprisonment.
The Drug Enforcement Administration and the Los Angeles County Sheriff’s Department are investigating this matter. This case is part of the DEA’s Overdose Justice Program and LASD’s Overdose Response Task Force.
Assistant United States Attorney Brittney M. Harris of the Transnational Organized Crime Section is prosecuting this case.
Federal Prosecutors File 20 Cases This Year Against Alleged Drug Dealers Who Sold Fentanyl that Caused Fatal Drug OverdosesRead the Press Release
LOS ANGELES – Law enforcement officials today announced the filing of 20 criminal cases so far this year targeting fentanyl dealers who are charged with selling fentanyl and fentanyl-laced pills that directly resulted in the death of at least one victim.
The cases being announced today are a result of the ongoing efforts of the OD Justice Task Force, a Drug Enforcement Administration (DEA)-led project designed to investigate fatal fentanyl poisonings and identify the individuals who provided the fentanyl that directly caused the deaths.
Under the OD Justice program for the DEA’s Los Angeles Field Division, DEA agents have established collaborative relationships with local law enforcement agencies across the seven counties that make up the Central District of California. Local authorities are almost always the first to respond to an overdose death, and DEA agents have provided training to dozens of local agencies to help them analyze evidence to determine if there are circumstances that might lead to a federal criminal prosecution.
There were an estimated 80,391 drug overdose deaths in the United States during 2024 and most of those deaths were fentanyl related, according to the Centers for Disease Control and Prevention.
Since the project’s launch in 2018, and including the cases announced today, the United States Attorney’s Office has filed charges against 163 defendants who allegedly sold drugs that resulted in a fatal fentanyl poisoning.
The charge of distribution of fentanyl resulting in death carries a mandatory minimum sentence of 20 years in federal prison and a statutory maximum sentence of life imprisonment.
The criminal cases filed this year include:
- United States v. McDevitt
Michael McDevitt, 43, of Simi Valley, is charged with distribution of fentanyl resulting in death. In September 2021, McDevitt allegedly distributed the powerful synthetic opioid in Ventura County to the victim, who later died. McDevitt also is charged with possession with intending to distribute methamphetamine. McDevitt has pleaded not guilty to the charges and a June 10 trial is scheduled in this matter. He has been in federal custody since April 11.
The Ventura County Sheriff’s Office and the DEA are investigating this matter. Assistant United States Attorney Blake Hannah of the General Crimes Section is prosecuting this case.
- United States v. Biswas
Alexander Nihar Biswas, 42, of Loma Linda, is charged in a single-count indictment with distribution of fentanyl resulting in death. Biswas allegedly distributed the powerful narcotic to a victim in San Bernardino County. The use of the drug resulted in the victim’s death in January 2024. Biswas, who has been in federal custody since March 10, has pleaded not guilty to the charge and awaits an October 20 trial date in U.S. District Court in Riverside.
The San Bernardino County Sheriff’s Department and the DEA are investigating this matter. Assistant United States Attorney Erin C. Kiss of the Riverside Branch Office is prosecuting this case.
- United States v. Abdallah
Michel Joseph Abdallah, 21, a.k.a. “Mike,” of Laguna Niguel, is charged in connection with the fentanyl overdose deaths of two people in 2023. Abdallah is charged with two counts of distribution of fentanyl resulting in death, two counts of possession with intent to distribute fentanyl, and two counts of possession of a firearm in furtherance of drug trafficking crimes.
Abdallah allegedly distributed fentanyl to a victim on March 25, 2023, in Mission Viejo. The victim used the drug, which resulted in a fatal overdose. On May 15, 2023, in Aliso Viejo, Abdallah again distributed fentanyl – this time, to a different victim who ingested the powerful synthetic opioid and died. Abdallah also allegedly possessed a total of 1.3 kilograms (2.9 pounds) of fentanyl on June 10, 2023. On this date, he allegedly also possessed two firearms, including an AR-15-style pistol bearing no serial number, which commonly is referred to as a “ghost gun.”
He remains in state custody and awaits arraignment on the federal criminal charges.
The Orange County Sheriff’s Department, the Santa Ana Police Department, and the DEA are investigating this matter. Assistant United States Attorney Lisa J. Lindhorst of the Orange County Office is prosecuting this case.
- United States v. Casillas
Jesus Erick Casillas, 56, of Lancaster, is charged with one count of distribution of fentanyl resulting in death, in connection with the overdose death of a victim in Los Angeles County in January 2024. Casillas, who has pleaded not guilty to the charge, has been in federal custody since January 24. He awaits an October 26 trial date.
The Los Angeles County Sheriff’s Department and the DEA are investigating this matter. Assistant United States Attorney Joseph S. Guzman of the General Crimes Section is prosecuting this case.
- United States v. Putnam
Macey Delynn Putnam, 31, of Laingsburg, Michigan and formerly of Torrance, is charged in connection with the July 24, 2024, fentanyl overdose death of a victim in Los Angeles County. Putnam, who is free on $25,000 bond, is charged with one count of distribution of fentanyl resulting in death and serious bodily injury. She has pleaded not guilty to the charge and is scheduled to go to trial on November 18.
The Long Beach Police Department, the DEA, and the FBI are investigating this matter. Assistant United States Attorney Christina R.B. Lopez of the General Crimes Section is prosecuting this case.
- United States v. Miller
Myles Ray Miller, 27, of Fullerton, is charged in a federal grand jury indictment with one count of distribution of fentanyl resulting in death and one count of possession with intent to distribute fentanyl. Miller allegedly distributed fentanyl to a victim – who was struggling with drug addiction – in Fullerton on March 18, 2022. The victim later ingested the powerful synthetic opioid and died.
The La Habra Police Department and the DEA are investigating this matter. Assistant United States Attorney Lisa J. Lindhorst of the Orange County Office is prosecuting this case.
- United States v. Lopez, et al.
Kevin Lopez, 24, of Rancho Cucamonga, Jacqueline Carolina Fonseca-Flores, 24, of Rancho Cucamonga, and Brandon Ryan Osika, 22, of Ontario, were arrested May 7 on an indictment charging them with distribution of fentanyl to a person under the age of 21 resulting in death, among other federal drug crimes. The defendants – including Meloney Osika, 24, of Ontario, who also was arrested May 7 – allegedly ran a fentanyl distribution ring in San Bernardino County. Lopez, Flores, and Brandon Osika in January 2023 allegedly distributed fentanyl to a victim who took the drug and died soon afterward.
A federal magistrate judge ordered all four defendants jailed without bond. The defendants pleaded not guilty to the charges against them and a June 23 trial date was scheduled in this case.
The Fontana Police Department and the DEA are investigating this matter. Assistant United States Attorney Christopher M. Brunwin of the Riverside Branch Office is prosecuting this case.
- United States v. Perez
Roberto Alexis Perez, 26, of Palmdale, is charged in a one-count indictment with distributing fentanyl on September 3, 2022, in Los Angeles County, which resulted in the victim’s death.
The DEA and the Los Angeles County Sheriff’s Department are investigating this matter. Assistant United States Attorneys Diane B. Roldán of the Violent and Organized Crime Section and Nicholas G. Purcell of the General Crimes Section are prosecuting this matter.
- United States v. Almazo
Waldo Jesus Almazo Casarubbias, 22, of Santa Ana, was arrested April 11 on a federal grand jury indictment charging him with one count of distribution of fentanyl resulting in death. Almazo allegedly distributed fentanyl to the victim on July 5, 2022, in Orange County. The use of the drug resulted in the victim’s death shortly thereafter. Almazo pleaded not guilty to the charge against him. A federal magistrate judge ordered him jailed without bond. Almazo is scheduled to go on trial in January 2026 in United States District Court in Santa Ana.
The Orange County Sheriff’s Department and the DEA are investigating this matter. Special Assistant United States Attorney Yervant P. Hagopian of the General Crimes Section is prosecuting this case.
- United States v. Hoskinds
Michael Hoskinds, 46, of San Pedro, was arrested April 8 on a one-count federal grand jury indictment charging him with distribution of fentanyl resulting in death. On August 12, 2023, in Los Angeles County, Hoskinds allegedly distributed the powerful controlled substance to a victim, who later ingested it, overdosed, and died.
A federal magistrate judge ordered Hoskinds jailed without bond. Hoskinds has pleaded not guilty to the charge against him. He is scheduled to go to trial on June 3 in U.S. District Court in Los Angeles on this matter.
Redondo Beach Police Department and DEA are investigating this case. Assistant United States Attorney Alix R. Sandman of the General Crimes Section is prosecuting this matter.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
South Los Angeles Man and Woman Arrested on Federal Charge for Impeding Federal Agents Engaged in Immigration EnforcementRead the Press Release
LOS ANGELES – Two South Los Angeles residents were arrested today on a federal criminal complaint alleging they caused a car chase earlier this year in which they deliberately blocked and impeded immigration agents during the performance of their official duties.
Gustavo Torres, 28, and Kiara Jaime-Flores, 34, are charged with conspiracy to impede or injure officer.
The defendants are scheduled to make their initial appearances this afternoon in United States District Court in downtown Los Angeles.
“These defendants are charged with knowingly and recklessly putting federal agents’ lives in danger,” said United States Attorney Bill Essayli. “Anyone who deliberately gets in the way of immigration officers doing their job will face criminal prosecution and the prospect of doing time in a federal prison cell.”
According to an affidavit filed with the complaint, on the morning of February 28, Homeland Security Investigations (HSI) and United States Border Patrol agents executed four search warrants at separate residences in Los Angeles, one of them occurring at an address in South Los Angeles. A small crowd began to concentrate outside the residence and some bystanders in the crowd directed hostile remarks at the agents, who later got in their government vehicles and left the area.
At the intersection of 61st Street and Broadway in South Los Angeles, Torres and Flores – driving a Honda Fit – allegedly pulled in front of one of the government vehicles and blocked its pathway at the intersection. The defendants also drove westbound on 61st Street in an opposing lane, passing another two government vehicles. The defendants allegedly pulled in front of one of the vehicles and slammed on the brakes, which the agents believed was an attempt to cause a collision.
Torres and Flores aggressively followed one of the government vehicles for two miles, attempting to cross multiple lanes of traffic as it followed it and the other cars.
A criminal complaint contains allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted, Torres and Flores would face a statutory maximum sentence of six years in federal prison.
HSI is investigating this matter. The investigation was conducted by the HSI-led El Camino Real Financial Crimes Task Force, a multi-agency task force that includes federal and state investigators who are focused on financial crimes in Southern California.
Assistant United States Attorney Matthew J. Tako of the General Crimes Section is prosecuting this case.
5 Defendants Federally Charged in Los Angeles, Orange Counties as Part of Nationwide Crackdown on Child Sexual Abuse OffendersRead the Press Release
LOS ANGELES – Attorney General Pamela Bondi and FBI Director Kash Patel recently announced an unprecedented national initiative to protect the most vulnerable members of our communities. The FBI launched a coordinated effort with all field offices in a sweeping action to identify, track and arrest child sex predators.
Since the end of April, the FBI arrested 205 subjects across the country and rescued 115 children during Operation Restore Justice. These subjects are accused of various crimes including the production, distribution, and possession of child sexual abuse material, online enticement and transportation of minors, and child sex trafficking. They include school leaders and registered sex offenders, among others.
In the Central District of California, a seven-county jurisdiction that includes Los Angeles and Orange counties, five defendants were charged with federal crimes as follows:
- Andrew Castillon, 47, of El Monte, was arrested May 1 on a federal criminal complaint charging him with possession of child pornography. A federal magistrate judge ordered him released on $5,000 bond. Castillon’s arraignment is scheduled for May 27 in United States District Court in Los Angeles. Assistant United States Attorney Thi H. Ho of the General Crimes Section is prosecuting this case.
- Jose Olvera, 34, of North Hollywood, was arrested May 1 on a federal indictment charging him with two counts of distribution of child pornography and five counts of possession of child pornography. He pleaded not guilty to all charges at his arraignment and a June 23 trial was scheduled in this case. A federal magistrate judge ordered him jailed without bond. Assistant United States Attorney Mikaela W. Gilbert-Lurie of the General Crimes Section is prosecuting this case.
- Steven Martin Nuss, 66, of San Juan Capistrano, was arrested May 9 on a two-count federal grand jury indictment charging him with distribution of child pornography and possession of child pornography. He pleaded not guilty to both charges and a federal magistrate judge ordered him jailed without bond. He is scheduled to go to trial on July 1. Assistant United States Attorney Melissa S. Rabbani of the Orange County Office is prosecuting this case.
- David Eugene Parker, 55, of La Palma, was arrested April 30 on federal grand jury indictment charging him with two counts of possession of child pornography. He pleaded not guilty to the charge and a federal magistrate judge ordered him released on $100,000 bond. A June 24 trial date is scheduled in this matter. Assistant United States Attorney Lauren E. Border of the General Crimes Section is prosecuting this case.
- Gregory Cole Jr., 30, of Lancaster, was arrested April 30 in Arizona after he failed to appear at his trial earlier last month in which a jury found him guilty in absentia of 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. His sentencing hearing is scheduled for June 23, at which time he will face a mandatory minimum sentence of 15 years in federal prison and a statutory maximum sentence of life in federal prison. Assistant United States Attorney Derek R. Flores of the Violent and Organized Crime Section is prosecuting this case.
Two additional individuals were arrested in Los Angeles for sexual exploitation of a child and charges of coercion and enticement, respectively; however, those cases are being prosecuted in separate districts.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
“Sexual predators who target children leave emotional scars that can last a lifetime,” said United States Attorney Bill Essayli. “Along with our law enforcement partners, we seek to bring a measure of solace to victims and put criminals on notice that they risk lengthy prison sentences and severe penalties for harming children.”
“The amount of child predators arrested during Operation Restore Justice should shock the conscience of any law-abiding citizen and parents or guardians, in particular,” said Akil Davis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Each day, our agents are tackling criminal allegations involving children, whether it be online dangers such as ‘sextortion,’ emerging nihilist extremist networks such as ‘764,’ or children being groomed by someone close to them. We urge caretakers of all children to educate themselves about these constant threats targeting the most vulnerable members of our society.”
As the nation marked National Child Abuse Prevention month in April, the timing of this effort was a culmination of countless hours by hundreds of FBI agents. It further underscores the FBI’s unwavering commitment to protecting children and raising awareness about the dangers they face. While the Bureau works relentlessly to investigate these crimes every day, April serves as a powerful reminder of the importance of prevention and community education.
The FBI takes a proactive approach to identify unknown individuals involved in the sexual exploitation of children and the production of child sexual abuse material. We do that through our Child Exploitation and Human Trafficking Task Forces (CEHTTFs) located in each field office. This allows the FBI to combine resources with federal, state, and local law enforcement agencies. The FBI also partners with the nonprofit National Center for Missing and Exploited Children (NCMEC), which receives and shares tips about possible child sexual exploitation received through its 24-hour hotline at 1-800-THE-LOST and on missingkids.org.
In 2004, the FBI created the Endangered Child Alert Program (ECAP) to identify individuals involved in the sexual abuse of children and the production of child sexual abuse material. The program is a collaborative effort between the FBI and the NMCEC.
The FBI also offers resources for parents and caregivers to stay engaged with their children’s online and offline activities. The FBI's Safe Online Surfing (SOS) program teaches students in grades 3 to 8 how to navigate the web safely.
The FBI urges the public to remain vigilant and report suspected exploitation of a child through our tiplines at 1-800-CALL-FBI (225-5324), tips.fbi.gov, or by calling your local FBI field office.
Other online resources:
- Electronic Press Kit:
- Violent Crimes Against Children
- How we can help you: Parents and caregivers protecting your kids
Antelope Valley Man Arrested on Indictment Alleging He and Two Others Participated in Two Gang Murders Last Year in LancasterRead the Press Release
LOS ANGELES – A reputed member of the Pasadena Denver Lanes (PDL) Bloods street gang was arrested today on a four-count federal grand jury indictment alleging he and two other PDL members took part in a one-night shooting spree in Lancaster last year that claimed two lives and almost claimed a third.
Jerry Wimbley III, a.k.a. “Baby Poppa Ckrab,” 20, of Lancaster, was arrested this morning and is expected to be arraigned and make his initial appearance this afternoon in United States District Court in downtown Los Angeles.
Wimbley III is charged with two counts of murder in aid of racketeering.
Also charged in the indictment unsealed today are:
- Vionnie Richardson, 37, a.k.a. “Big Poppa Ckrab,” of Lancaster, who is charged with one count of attempted murder in aid of racketeering, two counts of murder in aid of racketeering, and one count of being a felon in possession of ammunition; and
- Jerry Wimbley Jr., 22, a.k.a. “Poppa Ckrab” and “Little Poppa Ckrab,” of Lancaster, who is charged with two counts of murder in aid of racketeering, and who is Wimbley III’s brother.
Richardson is in state custody in Nevada. He is not legally permitted to possess ammunition because his criminal history includes multiple felony convictions in Los Angeles Superior Court, including for second-degree robbery in September 2020, assault by means of force likely to produce great bodily injury in March 2020, and identity theft in January 2014.
Wimbley Jr. has been in custody on federal robbery and money laundering charges since September 2024.
Richardson and Wimbley Jr. are expected to be arraigned in Los Angeles federal court in the coming weeks.
According to the indictment, on the night of June 25, 2024, Richardson took part in three successive shootings in Lancaster – an attempted murder followed by two murders – and was joined by the Wimbley brothers for the latter two shootings. After each shooting, the defendants gathered at a deceased gang member’s gravesite on the two-year anniversary of that gang member’s death.
Richardson allegedly first attempted to murder victim W.S. in Lancaster and then traveled to the deceased gang member’s gravesite where he met the Wimbley brothers and others. Richardson and the Wimbley brothers next traveled to the area of Whit Carter Park in Lancaster, where they murdered victim E.G. They again returned to the gravesite and then drove to a gas station in Lancaster. As captured on surveillance footage, the defendants murdered victim D.M. and then returned to the gravesite. Throughout the night, defendants allegedly took to Instagram to honor the deceased gang member and pledge allegiance to the PDL Bloods.
The indictment alleges that the murders and attempted murder were committed to enhance the power and influence of the PDL Bloods street gang, which is described as a violent criminal enterprise that has existed since the 1970s and operates in and around Pasadena and the Antelope Valley. The indictment further alleges that PDL engages in murder, robbery and money laundering, among other criminal racketeering activities.
“As alleged in the indictment, these defendants engaged in violent and senseless acts,” said United States Attorney Bill Essayli. “Their alleged shooting spree is intolerable. Today’s charges reflect our Office’s continued commitment to eradicating gang violence and to keeping our communities safe.”
“Bringing violent offenders to justice is one of ATF’s top priorities,” said Kenny Cooper, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Los Angeles Field Division. “This case is a testament to the strength of collaboration among law enforcement agencies at every level. We remain committed to reducing violent crime and ensuring the safety of our communities.”
“The brutality of these alleged crimes reflects a complete disregard for human life and public safety,” said Los Angeles County Sheriff Robert G. Luna. “Gang violence has no place in our communities. The individuals that engage in ruthless crimes that endanger our residents will be pursued and held accountable. Our dedicated homicide detectives, along with our federal partners, have diligently worked to identify, arrest, and dismantle these violent gang networks and protect our communities.”
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted, the defendants would face a mandatory sentence of life in federal prison and a possible death sentence.
The ATF and the Los Angeles County Sheriff’s Department are investigating this matter.
Assistant United States Attorneys Gregg E. Marmaro of the Major Frauds Section, Suria M. Bahadue of the General Crimes Section, and Kevin J. Butler of the Violent and Organized Crime Section are prosecuting this case.