Central District of California
Press releases recorded for this federal judicial district.
Former Fifth-Grade Teacher at San Gabriel Valley School Sentenced to 4 Years in Federal Prison for Possession of Child PornographyRead the Press Release
RIVERSIDE, California – A former elementary school teacher who worked at a school district in the San Gabriel Valley was sentenced today to 48 months in federal prison for possessing more than 400 videos containing child sexual abuse material (CSAM).
Steven Pilar, 47, of Las Vegas, was sentenced by United States District Judge Sunshine S. Sykes, who also ordered him to pay $115,000 in restitution.
Pilar pleaded guilty in December 2024 to one count of possession of child pornography. He has been in federal custody since August 2024.
In February and April of 2020, Pilar used his computer and a peer-to-peer file-sharing program called BitTorrent to download videos and images containing CSAM via the internet. Specifically, Pilar – at his then-home in Victorville – knowingly received and downloaded approximately 444 videos containing CSAM, and knowingly possessed the videos for a time before deleting them.
At the time of download and possession, Pilar knew these videos and images contained visual depictions of actual children engaging in sexually explicit conduct.
Many of the videos and images that Pilar knowingly downloaded involved a pre-pubescent minor and a minor who had not attained 12 years of age, sadistic and masochistic conduct, and sexual abuse and exploitation of an infant and toddler.
Pilar was employed as a fifth-grade teacher working in the Hacienda La Puente Unified School District at the time of the offense. He no longer works at the school.
In April 2020, Pilar was arrested on state charges, which were later dropped so a federal case could be pursued.
“His actions caused direct and significant harm to the victims in this case, and his offense is aggravated by fact that he was teaching young children at the time,” prosecutors argued in a sentencing memorandum. “In fact, when [Pilar] downloaded and viewed the CSAM, he took part of a perpetual re-victimization of the victims.”
The FBI and the San Bernardino County Sheriff’s Department investigated this matter.
Assistant United States Attorney Joshua J. Lee of the General Crimes Section prosecuted this case.
CEO of Company that Owned Rights to Notorious Drug Lord’s Name Extradited to United States to Face Fraud, Money Laundering CountsRead the Press Release
LOS ANGELES – A Swedish national was extradited from Spain and was arraigned today on a 115-count federal indictment alleging he licensed the rights of the late Colombian narcoterrorist Pablo Escobar and defrauded investors by marketing and selling products – including flamethrowers and cellphones – that he never delivered.
Olaf Kyros Gustafsson, 31, a.k.a. “El Silencio,” arrived in Los Angeles this morning after Spanish authorities extradited him. Gustafsson is charged with one count of conspiracy to commit wire fraud and mail fraud, nine counts of wire fraud, three counts of mail fraud, one count of conspiracy to engage in money laundering, 41 counts of money laundering, 35 counts of international money laundering, and 25 counts of engaging in monetary transactions in property derived from specified unlawful activity.
Gustafsson was arrested in Spain in December 2023 and was arraigned this afternoon in United States District Court in downtown Los Angeles. Gustafsson pleaded not guilty to the charges against him. A May 20 trial date was scheduled. A federal magistrate judge scheduled an April 3 detention hearing. Gustafsson remains in federal custody.
According to the indictment, Gustafsson was the CEO of Escobar Inc., a corporation registered in Puerto Rico that held successor-in-interest rights to the persona and legacy of Pablo Escobar, the deceased Colombian narcoterrorist and head of the Medellín Cartel. Escobar Inc. used Pablo Escobar’s likeness and persona to market and sell purported consumer products to the public.
From July 2019 to November 2023, Gustafsson identified existing products in the marketplace that were being manufactured and sold to the public. He then used the Escobar persona to market and advertise similar and competing products purportedly being sold by Escobar Inc., advertising them at a price substantially lower than existing counterparts being sold by other companies.
Gustafsson then purportedly sold the products – including an Escobar Flamethrower, an Escobar Fold Phone, an Escobar Gold 11 Pro Phone, and Escobar Cash (marketed as a “physical cryptocurrency”) – to customers, receiving payments via PayPal, Stripe, Coinbase, among other payment processors.
Despite receiving customer payments, Gustafsson did not deliver the Escobar Inc. products to paying customers because the products did not exist.
In furtherance of the scheme, Gustafsson sent crudely made samples of the purported Escobar Inc. products to online technology reviewers and social media influencers to attempt to increase the public’s demand for them. For example, Gustafsson allegedly sent Samsung Galaxy Fold Phones wrapped in gold foil and disguised as Escobar Inc. phones to online technology reviewers to attempt to induce victims who watched the online reviews into buying the products that never would be delivered.
Also, rather than sending paying customers the actual products, Gustafsson mailed them a “Certificate of Ownership,” a book or other Escobar Inc. promotional materials so there was a record of mailing from the company to the customer. When a paying customer attempted to obtain a refund when the product was never delivered, Gustafsson fraudulently referred the payment processor to the proof of mailing for the Certificate of Ownership or other material as proof that the product itself was shipped and that the customer had received it so the refund requests would be denied.
Some of the victims include residents of Los Angeles, Gardena, and Commerce.
Gustafsson allegedly also caused bank accounts to be opened under his name and entities he controlled to be used as funnel accounts – bank accounts into which he deposited and withdrew proceeds derived from his criminal activities. The purpose was to conceal and disguise the nature, location, source, ownership, and control of the proceeds. The bank accounts were located in the United States, Sweden, and the United Arab Emirates.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
IRS Criminal Investigation, the FBI, and the Federal Deposit Insurance Corporation-Office of Inspector General are investigating this matter, with assistance from the Department of Justice’s Office of International Affairs, the United States Marshals Service, Eurojust, Spanish authorities, and French judicial authorities.
Assistant United States Attorney Joshua O. Mausner of the Violent and Organized Crime Section is prosecuting this case.
20 Defendants – Convicted Felons Included – Charged Federally with Being Illegal Aliens Found in the United States Following RemovalRead the Press Release
LOS ANGELES – This week, federal prosecutors working with United States Immigration and Customs Enforcement (ICE) and other federal law enforcement partners filed criminal charges against 20 defendants who allegedly were found in the U.S. following removal, the Justice Department announced today.
Many of the defendants charged previously were convicted of felony offenses before they were removed from the United States, offenses that include vandalism and firearms crimes.
One of the defendants, Antonio Espinoza Zarate, 55, a.k.a. “El Gato,” of the Mar Vista neighborhood of Los Angeles, was arrested Wednesday on a federal criminal complaint alleging he sold two kilograms of fentanyl pills to a buyer from July 2023 to February 2025 and charging him with illegally re-entering the U.S. following removal and possession with intent to distribute fentanyl. A federal magistrate judge ordered him jailed without bond a scheduled an April 15 arraignment for him in United States District Court in downtown Los Angeles. Assistant United States Attorney Diane B. Roldán of the Violent and Organized Crime Section is prosecuting Espinoza.
Espinoza is a citizen of Mexico who has been previously deported in 2010, 2013, 2014, and 2017 and illegally reentered the United States following his removals, according to court documents. His criminal history includes felony convictions in 2008 in Los Angeles Superior Court for possession of narcotics for sale and in 2015 in U.S. District Court for the District of Arizona for illegal reentry of a removed alien.
The investigation was conducted by the Homeland Security Investigations (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, with support from special agents with the United States Attorney’s Office for the Central District of California – Criminal Investigative Division; and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Los Angeles Police Department regarding dangers to the community from the sales of narcotics and firearms.
The crime of being found in the United States following removal carries a base sentence of up to two years in federal prison. Defendants who were removed after being convicted of a felony face up to 10 years in federal prison. Defendants removed after being convicted of an aggravated felony face a statutory maximum sentence of 20 years in federal prison.
Some of the other recently filed cases are summarized below with information contained in court documents.
- Efrén García Jiménez, 24, of Mexico, was charged via a federal criminal complaint with being an illegal alien found in the United States after removal. García Jiménez, who was removed from the U.S. in 2019, was charged after being convicted in Orange County Superior Court on January 24 of discharging a firearm at an inhabited residence and vandalism, for which he was sentenced to three years in California state prison. Assistant United States Attorney Melissa S. Rabbani of the Orange County Office is prosecuting this case.
- Aristeo González Rosas, 24, of Mexico, was charged via a federal criminal complaint with being an illegal alien found in the United States after removal. González Rosas was federally charged after he was arrested on February 15 in Ventura County. Prior to this arrest, González Rosas was convicted in 2022 in Ventura County Superior Court of carrying a loaded firearm with a large capacity magazine, for which he was sentenced to eight months’ imprisonment, and again in Ventura County Superior Court in 2023 of being a felon/addict in possession of a firearm, for which he was sentenced to 16 months in California state prison. He was removed from the U.S. on August 31, 2024, and was removed again on September 5, 2024. The Domestic Security and Immigration Crimes Section is prosecuting this case.
In another matter, a federal grand jury on Tuesday indicted Kevin Mauricio Ballardo-García, 24, a Mexican national, for allegedly transporting 148.12 kilograms (326.6 pounds) of methamphetamine from Mexico into Southern California. During a traffic stop in Westminster on March 11, law enforcement seized 13 buckets and one water container that held liquid methamphetamine from Ballardo-García’s Jeep Wrangler. He was ordered jailed without bond and his arraignment is scheduled for March 31 in United States District Court in Santa Ana. He is charged with one count of possession with intent to distribute methamphetamine. Assistant United States Attorney Robert J. Keenan of the Orange County Office is prosecuting this matter.
Criminal complaints and indictments contain allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
ICE and Homeland Security Investigations are investigating these matters. The Drug Enforcement Administration is investigating the Ballardo-García case with assistance from California Highway Patrol and the Irvine Police Department.
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. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETF) and Project Safe Neighborhood (PSN).
Long-Time Rollin’ 60s Neighborhood Crips Leader Charged in 43-Count Indictment Alleging Murder, Extortion, Fraud, and Tax CrimesRead the Press Release
LOS ANGELES – A federal grand jury has returned a 43-count indictment charging a music label owner and purported anti-gang activist who is a long-time leader of a South Los Angeles street gang with dozens of felonies, including fraud, robbery, extortion, tax evasion, embezzlement of donations to his charity that receives public money, and running a racketeering conspiracy in which he allegedly murdered an aspiring musician, the Justice Department announced today.
Eugene Henley, Jr., 58, a.k.a. “Big U,” of the Hyde Park neighborhood of Los Angeles, is charged with one count of conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act, two counts of conspiracy to interfere with commerce by robbery and extortion (Hobbs Act), one count of Hobbs Act robbery, nine counts of attempted Hobbs Act extortion, five counts of Hobbs Act extortion, one count of transportation of an individual in interstate commerce with intent that the individual engage in prostitution (Mann Act), 15 counts of wire fraud, five counts of embezzlement, conversion, and intentional misapplication of funds from an organization receiving federal funds, one count of bank fraud, one count of tax evasion, and two counts of willful failure to file a tax return.
Henley – a long-time member of the Rollin’ 60s Neighborhood Crips street gang – has been in federal custody since March 19 after being charged in a federal criminal complaint. His arraignment is scheduled for April 8 in United States District Court in downtown Los Angeles. He has a detention hearing scheduled for April 10, also in Los Angeles federal court.
Also charged in today’s indictment are:
- Sylvester Robinson, 59, a.k.a. “Vey,” of Northridge;
- Mark Martin, 50, a.k.a. “Bear Claw,” of the Beverlywood area of Los Angeles;
- Termaine Ashley Williams, 42, a.k.a. “Luce Cannon,” of Las Vegas;
- Armani Aflleje, 38, a.k.a. “Mani,” of Koreatown neighborhood of Los Angeles;
- Fredrick Blanton Jr., 43, of South Los Angeles; and
- Tiffany Shanrika Hines, 51, of Yorba Linda.
These defendants are in federal custody and are expected to be arraigned in the coming weeks.
“As the indictment alleges, Mr. Henley led a criminal enterprise whose conduct ranged from murder to sophisticated fraud that included stealing from taxpayers and a charity,” said Acting United States Attorney Joseph McNally. “Eradicating gangs and organized crime is the Department of Justice's top priority. Today's charges against the leadership of this criminal outfit will make our neighborhoods in Los Angeles safer.”
According to the indictment returned on Wednesday, from 2010 until March 2025, Henley’s criminal group – identified in court documents as the “Big U Enterprise” – operated as a mafia-like organization that utilized Henley’s stature and long-standing association with the Rollin’ 60s and other street gangs to intimidate businesses and individuals in Los Angeles. Henley is widely regarded as a leader within the Rollin’ 60s and rose to prominence in the street gang during the 1980s.
While the Big U Enterprise at times partnered with the Rollin’ 60s and other criminal elements for mutual benefit, the Big U Enterprise is a distinct and independent criminal enterprise engaged in criminal activity including murder, extortion, robbery, trafficking and exploiting sex workers, fraud, and illegal gambling.
Not only did the enterprise expand its power through violence, fear, and intimidation, but it also used social media platforms, documentaries, podcasts, interviews, and Henley’s reputation and status as an “O.G.” (original gangster) to create fame for – and stoke fear of – the Big U Enterprise, its members, and its associates.
For example, in January 2021, Henley murdered a victim – identified in the indictment as “R.W.” – an aspiring musician signed to Uneek Music, Henley’s music label. Henley shot and killed R.W., who had recorded a defamatory song about Henley. Henley then dragged the victim’s body off Interstate 15 in Las Vegas and left it in a ditch.
Henley also committed other crimes, including fraudulently obtaining a COVID-19 business-relief loan for Uneek Music, which operated at a loss and was ineligible for such relief. He used his anti-gang charity, Developing Options, as a front for fraudulent activities and to insulate other members of the Big U Enterprise from law enforcement suspicion.
Henley further embezzled large donations that celebrities and award-winning companies made to Developing Options, which Henley immediately converted to his personal bank account. According to the indictment, Developing Options is primarily funded through the City of Los Angeles’s Mayor’s Office through the Gang Reduction Youth Development (GRYD) Foundation, portions of which receive federal funding, but also receives donations from prominent sources, including NBA players.
Finally, the indictment alleges that – as part of the racketeering conspiracy charge – that during the early morning hours of March 19, while law enforcement was arresting other members of the enterprise, Henley turned off his cellphones and fled his home. That day, Henley posted to the “Crenshaw Cougars” Instagram account, claiming racial profiling, blaming his co-defendants and opponents for the criminal charges filed against him in a federal criminal complaint, and instructing the public not to associate with his co-defendants and known opponents. Henley eventually surrendered to federal law enforcement without his phones.
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, Henley, Robinson, Martin would face a statutory maximum sentence of 20 years in federal prison for the racketeering conspiracy count. The bank fraud count is punishable by up to 30 years in federal prison. The Hobbs Act conspiracy, robbery, and extortion and the wire fraud counts each carry a statutory maximum sentence of 20 years in federal prison. The Mann Act count and the theft concerning programs receiving federal funds count each carry a penalty of up to 10 years in federal prison. The tax evasion count carries a statutory maximum sentence of five years in federal prison while the willful failure to pay file a tax return count is punishable by up to one year’s imprisonment.
The FBI’s Los Angeles Metropolitan Task Force on Violent Gangs; IRS Criminal Investigation; the United States Department of Justice Office of Inspector General; the Los Angeles Police Department; and the North Las Vegas Police Department are investigating this matter.
Assistant United States Attorneys Kevin J. Butler and Jena A. MacCabe of the Violent and Organized Crime Section are prosecuting this case.
Latin Music Talent Agency and Its CEO Found Guilty of Violating U.S. Sanctions by Doing Business with Cartel-Linked Concert PromoterRead the Press Release
LOS ANGELES – The CEO of a Latin music conglomerate and his talent agency were found guilty by a jury today of conspiring to violate the Foreign Narcotics Kingpin Designation Act by conducting business with a Guadalajara-based concert promoter with ties to Mexican drug cartels.
José Ángel Del Villar, 44, of Huntington Beach, the CEO of Del Records and its related talent agency Del Entertainment Inc., was found guilty of one count of conspiracy to transact in property of specially designated narcotics traffickers in violation of the Kingpin Act and 10 counts of violating the Kingpin Act.
Co-defendant Del Entertainment also was found guilty of all 11 counts of which Del Villar was convicted.
According to evidence presented at a nine-day trial, in April 2018, the defendants did business with Jesús Pérez Alvear, a.k.a. “Chucho,” of Guadalajara, Mexico, a music promoter who controlled Gallistica Diamante, a.k.a. Ticket Premier. Pérez promoted concerts for Del Entertainment in Mexico until March 2019.
The U.S. Treasury Department listed Pérez and his company as “specially designated narcotics traffickers” under the Kingpin Act on April 6, 2018, after concluding he facilitated money laundering for the Cartel de Jalisco Nueva Generación (CJNG) and the Los Cuinis drug trafficking organization. The Kingpin Act prevents people in the United States from conducting business with sanctioned persons and entities.
Even though Del Villar and Del Entertainment were aware that it was illegal to engage in transactions or dealings with Pérez, they willfully did business with him by continuing to have a Del Entertainment musical artist perform at concerts in which Pérez and Del Entertainment had a financial interest.
For example, on April 19, 2018, FBI agents approached a well-known musician and explicitly told him about Pérez’s designation under the Kingpin Act and how that prohibited him from conducting business with Pérez and performing concerts that Pérez promoted.
On April 28, 2018, the musician performed at a music concert which Pérez organized. Del Villar’s credit card was used to pay for a private jet that brought the musician from Van Nuys Airport to the performance in Aguascalientes, Mexico.
On multiple other occasions in 2018 and 2019, Pérez and Del Villar continued to do business by arranging for the musician to perform at concerts in Mexico – including Mexicali and San José Iturbide, Guanajuato.
“The defendants here chose to get into business with an individual they knew had ties to the CJNG and had been designated a narcotics trafficker under the Kingpin Act,” said Acting United States Attorney Joseph McNally. “Cartels and transnational criminal organizations cause immeasurable harm to our country. We are using every tool to eliminate these organizations and will prosecute those that do business with cartels.”
“Doing business with government-sanctioned individuals is illegal and can have very serious consequences,” said Akil Davis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Today’s guilty verdict sends a message to music industry associates and others who engage in business with those sanctioned for laundering money for Mexican cartels that such criminal activity will not be tolerated by the FBI and our partners at the IRS and the United States Attorney’s Office.”
United States District Judge Maame Ewusi-Mensah Frimpong scheduled an August 15 sentencing hearing, at which time Del Villar will face a statutory maximum sentence of 30 years in federal prison for each count. Del Entertainment will face a sentence of five years of probation and a fine of $10 million for each count.
Co-defendant Luca Scalisi, 58, of West Hollywood, has pleaded not guilty to the charges against him in this case and is scheduled to be tried separately in July 2025.
Co-defendant Pérez, who previously pleaded guilty to conspiracy to transact in property of specially designated narcotics traffickers, was murdered in Mexico in December 2024.
The FBI and IRS Criminal Investigation investigated this matter. The Treasury Department’s Office of Foreign Assets Control provided significant assistance in this matter.
Assistant United States Attorneys Benedetto L. Balding and Alexander B. Schwab of the Corporate and Securities Fraud Strike Force, and Kathrynne N. Seiden of the Terrorism and Export Crimes Section, prosecuted this case, with substantial assistance from the International Narcotics, Money Laundering, and Racketeering Section.
This case is 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. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETF) and Project Safe Neighborhood (PSN).
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Koreatown-Based Medicare Advantage Provider Seoul Medical Group and Related Parties to Pay More Than $62 Million to Settle False Claims LawsuitRead the Press Release
LOS ANGELES – Seoul Medical Group Inc. and its wholly-owned subsidiary Advanced Medical Management Inc., headquartered in the Koreatown area of Los Angeles, have agreed to pay $58.74 million and their former president, Dr. Min Young Cha, has agreed to pay $1.76 million for allegedly violating the False Claims Act by causing the submission of false diagnosis codes for two spinal conditions to increase payments from the Medicare Advantage program.
Renaissance Imaging Medical Associates Inc., a Northridge-based radiology group that worked with Seoul Medical, has also agreed to pay $2.35 million for allegedly conspiring with Seoul Medical Group in connection with the false diagnoses for the two spinal conditions.
“The false claims to Medicare resulted in millions of dollars in losses to the government,” said Acting U.S. Attorney Joseph McNally. “Through this $62.85 million settlement we have recouped those losses and the healthcare providers who made the false claims are paying millions of dollars in additional damages.”
“Medicare Advantage is a vital program for our seniors and the government expects healthcare providers who participate in the program to provide truthful and accurate information,” said Acting Assistant Attorney General Yaakov M. Roth of the Justice Department’s Civil Division. “Today’s result sends a clear message to the Medicare Advantage community that the United States will zealously pursue appropriate action against those who knowingly submit false claims for taxpayer funds.”
Under Medicare Advantage, also known as the Medicare Part C program, Medicare beneficiaries have the option of enrolling in managed care insurance plans called Medicare Advantage Plans (MA Plans) and the MA Plans contract with healthcare providers, such as Seoul Medical Group, to provide the Medicare-covered benefits. MA Plans are paid a per-person amount to provide the care to their enrollees and, in turn, the MA Plans pay the providers.
The Centers for Medicare and Medicaid Services (CMS), which oversees the Medicare program, adjusts the payments to MA Plans based on demographic information and the health diagnoses of each plan beneficiary. The adjustments are commonly referred to as “risk scores.” In general, a beneficiary with diagnoses that are more expensive to treat will have a higher risk score, and CMS will make a larger risk-adjusted payment to the MA Plan for that beneficiary.
Seoul Medical Group is a healthcare provider that started in 1993 in Los Angeles and has since expanded into at least six states and has contracted at times with a network of 150 independent primary care providers and 1,000 specialists. Dr. Min Young Cha started Seoul Medical Group and until 2023 was its president.
The United States alleged that, from 2015 to 2021, Seoul Medical Group and Dr. Cha submitted diagnoses for two severe spinal conditions, spinal enthesopathy and sacroiliitis, for patients who did not suffer from either of these conditions. When Seoul Medical Group was questioned by an MA Plan about its use of spinal enthesopathy, Seoul Medical Group enlisted the assistance of Renaissance Imaging Medical Associates to create radiology reports that appeared to support the spinal enthesopathy diagnosis. Both diagnoses resulted in an increase in payment from CMS to the MA Plan, and the MA Plan then passed along a portion of the increased payment to Seoul Medical Group.
“Providers who game the Medicare program to increase profit undermine the foundation of care and diminish patient trust in the nation’s public health care system,” said Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG will continue to collaborate with our law enforcement partners and rigorously probe false claims to the fullest extent possible.”
The civil settlement resolves claims brought under the qui tam or whistleblower provisions of the False Claims Act by Paul Pew, the former Vice President and Chief Financial Officer of Advanced Medical Management. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States of America ex rel. Pew v. Seoul Medical Group, Inc., et al., No. 2:20-cv-05156 (C.D. Cal.). The relator’s share of the settlement has not yet been determined.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the United States Attorney’s Office for the Central District of California, with assistance from the Department of Health and Human Services Office of the Inspector General.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
Assistant United Sates Attorney Karen Y. Paik of the Civil Division’s Civil Fraud Section and Trial Attorneys J. Jennifer Koh and Robbin O. Lee of the Justice Department’s Fraud Section investigated this matter.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Irvine Man Sentenced to Nearly 4 Years in Federal Prison for Stealing and Reselling High-End Violins and for Robbing Bank in O.C. Last YearRead the Press Release
SANTA ANA, California – An Orange County man was sentenced today to 46 months in federal prison for orchestrating a scheme to steal high-value violins and robbing a bank in Irvine.
Mark Meng, 58, of Irvine, was sentenced by United States District Judge David O. Carter, who scheduled a restitution hearing for June 24 in this case.
Meng pleaded guilty in September 2024 to one count of wire fraud and one count of bank robbery. He has been in federal custody since May 2024.
From August 2020 to April 2023, Meng schemed to steal valuable violins and keep or resell them for his personal gain. Meng – posing as a collector of musical instruments – contacted violin shops across the country to express interest in receiving the violins on loan for a trial period to determine if he wished to buy them. In some cases, he purchased violin bows before asking for the violins on a trial-period basis.
After receiving each violin, Meng negotiated a purchase price for it, kept the instrument beyond the trial period, then provided the violin shops with a check or set of checks for the violin, knowing the whole time the checks he wrote to the violin shops would be rejected due to insufficient funds.
When a violin-shop representative contacted Meng to inform him that the shop’s bank had rejected his checks, he sent a new series of checks, which also later were rejected due to insufficient funds. Sometimes, Meng lied to the violin shops by falsely telling them he had mailed the violin back to them, but that they had been lost in the mail. Eventually, Meng stopped communicating with the violin shops.
After fraudulently obtaining the violins, Meng re-sold them to a buyer – often during the trial periods from the violin shops. For example, on February 1, 2023, a victim loaned Meng a Guilio Degani violin – valued at $175,000 – pursuant to a trial-period contract, which required Meng to return or purchase the violin by February 10, 2023. However, Meng attempted to sell this violin to a buyer – who was unaware of the violin’s stolen origin.
According to court documents, Meng also stole the following:
- one Lorenzo Ventapane violin, dated 1823, and valued at $175,000;
- one Guilio Degani violin, dated 1903, and valued at $55,000;
- one Caressa & Francais violin, dated 1913, and valued at $40,000;
- one Francais Lott violin bow, stamped “Lupot,” and valued at $7,500;
- one Gand & Bernardel violin, dated 1870, and valued at $60,000;
- one French, Charles J.B. Colin Mezin violin, valued at $6,500; and
- one German, E.H. Roth Guarneri violin, valued at $6,500.
Despite knowing that he did not own these violins and violin bows, Meng sold three of these stolen violins and a violin bow to a victim for a total of $44,700.
In January 2023, Meng emailed one violin shop in Alexandria, Virginia, to express an interest in obtaining the Ventapane violin and the Degani violin on a trial basis, all the while intending to fraudulently obtain then re-sell them.
On April 2, 2024, Meng entered a bank branch in Irvine, wearing a hat, sunglasses, a bandana covering his face, and blue latex gloves. Meng gave the bank teller a note stating “$18,000. Withdraw. Please. Stay Cool. No harm. Thx.” When the teller told Meng she did not have access to the money he demanded, Meng responded, “Give me whatever you have.” The teller, fearing harm to herself and her co-workers, handed Meng $446.
The FBI’s Art Crime Team investigated this matter, with assistance from the Irvine Police Department and the Glendale Police Department.
Assistant United States Attorneys Laura A. Alexander and Mark A. Williams, both of the Environmental Crimes and Consumer Protection Section, prosecuted this case.
Father-and-Son Duo from Westside Arrested on Federal Criminal Complaints Alleging Fentanyl Trafficking and Gun SalesRead the Press Release
LOS ANGELES – A Westside father and son were arrested today on federal criminal complaints charging them with possessing narcotics – specifically, the powerful synthetic opioid fentanyl – with the intent to distribute it to others.
Antonio Espinoza Zarate, 55, a.k.a. “El Gato,” of the Mar Vista area of Los Angeles, and his son, Francisco Javier Espinoza Galindo, 31, of Santa Monica, were arrested this morning and are scheduled to make their initial appearances this afternoon in United States District Court in downtown Los Angeles.
Both defendants are charged with possession with the intent to distribute fentanyl. Antonio Espinoza also is charged with illegal reentry of a removed alien.
According to affidavits filed with the complaints, Antonio Espinoza in July 2023 sold a pistol, a rifle, 131 rounds of ammunition, and more than 500 grams of fentanyl pills to a buyer. He is not licensed to engage in the business of dealing in firearms.
In August 2023, Antonio Espinoza allegedly sold an AR-style rifle and approximately 1 kilogram of fentanyl pills to a buyer, supplied by Francisco Espinoza. In January 2025, he allegedly sold a rifle, a pistol, a revolver, and ammunition to a buyer. In February 2025, with his son present, Antonio Espinoza sold more than 500 grams of fentanyl pills to the confidential informant.
Antonio Espinoza is a citizen of Mexico, who has been previously deported in 2010, 2013, 2014, and 2017 and illegally reentered the United States following his removals, according to court documents. His criminal history includes felony convictions in 2008 in Los Angeles Superior Court for possession of narcotics for sale and in 2015 in U.S. District Court for the District of Arizona for illegal reentry of a removed alien.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of all charges, the defendants would face a statutory maximum sentence of life in federal prison and a mandatory minimum sentence of 10 years in federal prison.
The investigation was conducted by the Homeland Security Investigations (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, with support from special agents with the United States Attorney’s Office for the Central District of California – Criminal Investigative Division; and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Los Angeles Police Department regarding dangers to the community from the sales of narcotics and firearms.
As U.S. DOJ special agents, the U.S. Attorney’s Office (USAO) Criminal Investigators conduct independent and joint-agency investigations to achieve successful prosecutions and adjudications of federal crimes charged in the district. USAO investigators are positioned to address the prosecution priorities of the U.S. Attorney, as well as unique or project-based matters that may arise in the district and serve to generate or support a variety of federal cases with coordination and continuity among law enforcement partners throughout an investigation and trial.
Assistant United States Attorney Diane B. Roldán of the Violent and Organized Crime Section is prosecuting these cases.
Beverly Hills Man Sentenced to 25 Years in Prison for Cannabis and Bottling Company Cons That Caused Nearly $18 Million in LossesRead the Press Release
LOS ANGELES – A Beverly Hills man was sentenced today to 300 months in federal prison for obtaining nearly $18 million from investors for sham businesses supposedly operating in hemp related industries – all while he was completing a sentence in a prior criminal case.
Mark Roy Anderson, 70, was sentenced by United States District Judge Fernando L. Aenlle-Rocha, who scheduled a restitution hearing for June 4.
At today’s hearing, Judge Aenlle-Rocha said, “The magnitude of the fraud is breathtaking…the [victims’ statements reflect] the depth of the harm. Many have lost their life savings reflecting decades of hard work.” Judge Aenlle-Rocha also described Anderson as “an accomplished and incorrigible con man” and stated that “the public must be protected from him for as long as possible.”
Anderson pleaded guilty in April 2024 to two counts of wire fraud. He has been in federal custody since May 2023.
Anderson engaged in two separate but related schemes that swindled victims, which he committed shortly after his release from federal prison but while serving out the rest of his prison term on home confinement and, later, while on supervised release for a previous fraud conviction.
“The defendant stole more than $18 million from dozens of investors by promising quick returns on their investments into hemp farms and other exotic investments,” said Acting United States Attorney Joseph McNally. “Today’s 25-year sentence takes him off the street so that he cannot harm other victims.”
Harvest Farm Group
In the first scheme, from June 2020 to April 2021, Anderson tricked investors into providing funding for his company, called Harvest Farm Group, to harvest hemp supposedly being grown on his farm and then process that hemp into medical-grade cannabidiol (CBD) isolate – a chemical found in marijuana – to be sold for a substantial profit.
Anderson convinced investors to invest in Harvest Farm Group by falsely representing that, through the company, he owned and operated a hemp farm in Kern County. He also lied that had already completed successful and profitable harvests of hemp from the farm. He also falsely said he was using his own machinery and equipment to convert the hemp into CBD isolate and Delta 8, a psychoactive substance that, like CBD isolate, could be used in consumer products ranging from olive oil to body cream.
Anderson attempted to maintain a veneer of trustworthiness by taking steps to assure investors Harvest Farm Group was legitimate and he was not the “Mark Roy Anderson” with multiple prior fraud convictions. Anderson concealed that he had been convicted of multiple federal and state felony crimes, including mail fraud, wire fraud, grand theft, forgery, preparing false evidence, and money laundering. He also concealed that he was still serving a criminal sentence and was on supervised release at the time he was soliciting investments.
To stall victim investors from making collection efforts and reporting him to law enforcement, Anderson falsely promised victims he would pay them money from purported sales of products made to Canadian companies, that sales of products had been delayed because of the COVID-19 pandemic, and that he would otherwise return their money.
Bio Pharma and Verta Bottling
In the second scheme, which ran from April 2021 to May 2023, Anderson deceived investors by soliciting money for Bio Pharma and Verta Bottling, two of his sham companies, by claiming that these businesses successfully manufactured, bottled, and packaged commercial products.
Specifically, Anderson falsely told investors Bio Pharma purportedly manufactured and sold products infused with CBD, including products such as CBD-infused avocado oil, olive oil, pain cream, gummies, tequila, and chili oil. Anderson also claimed that Verta Bottling manufactured and sold beverages and a variety of food products.
Anderson falsely stated that his bottling companies owned and possessed millions of dollars’ worth of assets, including – in Bio Pharma’s case – hemp biomass, CBD isolate, CBD oil, and – in Verta Bottling’s case – manufacturing equipment and an assignable lease for a warehouse to manufacture and sell its products.
Anderson’s other lies to investors included false claims that his bottling companies had at least $10 million in purchase-order contracts from suppliers. He drafted fake legal and business documents, which included fabricated purchase order contracts purporting to show agreements with third party companies to purchase tens of millions of dollars’ worth of products manufactured by the Anderson bottling companies. Anderson also provided victims samples of products purportedly manufactured by his purported bottling companies.
Instead of investing victim funds as he promised, Anderson instead used their money on personal expenses. He has agreed to forfeit his ill-gotten gains from these schemes, including 15 cars – one of them a Ferrari – and real estate in Ojai.
In total, Anderson solicited more than $18.8 million from 45 victims for both schemes, causing victims to lose approximately $17,745,150.
The FBI investigated this matter.
Assistant United States Attorney Kerry L. Quinn of the Major Frauds Section prosecuted this case.
Bay Area-Based Flooring Company and Its Owners to Pay $8.1 Million to Settle False Claims Allegations Related to Customs Duties EvasionsRead the Press Release
LOS ANGELES – Evolutions Flooring Inc., a South San Francisco, California based importer of multilayered wood flooring, and its owners, Mengya Lin and Jin Qian, have agreed to resolve allegations that they violated the False Claims Act by knowingly and improperly evading customs duties on imports of multilayered wood flooring from the People’s Republic of China (PRC). The settlement is based on Evolutions’ and its owners’ ability to pay.
To enter goods into the United States, an importer must declare, among other things, the country of origin of the goods, the value of the goods, whether the goods are subject to duties, and the amount of duties owed.
U.S. Customs and Border Protection (CBP) collects applicable duties, including antidumping and countervailing duties assessed by the Department of Commerce and Section 301 duties imposed by the Office of the United States Trade Representative. Antidumping duties protect against foreign companies “dumping” products on U.S. markets at prices below cost, while countervailing duties offset foreign government subsidies.
Section 301 duties similarly protect U.S. industry by imposing trade sanctions on foreign countries that violate U.S. trade agreements or engage in other unreasonable acts that burden U.S. commerce. During the relevant time period, PRC-manufactured multilayered wood flooring products were subject to antidumping, countervailing, and Section 301 duties.
The settlement resolves allegations that Evolutions, at the direction of Lin and Qian, knowingly and improperly evaded customs duties, including antidumping, countervailing, and Section 301 duties, on multilayered wood flooring manufactured in the PRC that Evolutions imported between Sept. 1, 2019 and July 31, 2022. Among other things, the United States alleged that Evolutions caused false information to be submitted to CBP regarding the identity of the manufacturers and country of origin of the imported multilayered wood flooring.
“The outcome of this case demonstrates that our office and its CBP partners will continue to safeguard the nation’s economic well-being,” said Acting United States Attorney Joseph McNally. “Fraud in international commerce deprives the United States of vital revenue and creates an unfair advantage over businesses that operate legitimately. The settlement sends a message that we will not stand aside when companies try to cheat the system.”
“Import duties provide an important source of government revenue and level the playing field for U.S. manufacturers against their global competitors,” said Acting Assistant Attorney General Yaakov M. Roth of the Justice Department’s Civil Division. “The department will pursue those who seek an unfair advantage in U.S. markets, including by evading the duties owed on goods imported into this country from China.”
“The team at CBP was instrumental in providing expertise and logistical support to this investigation,” said Director of Field Operations Cheryl M. Davies of the CBP Los Angeles Field Office. “Through its efforts, which included a site visit to factories in Thailand, review of identified shipments by CBP experts on multilayered wood flooring, an analysis of import records and data by Office of Trade Regulatory Audit, and involvement in interviews with witnesses, CBP contributed to a successful outcome in this matter.”
The settlement with Evolutions and its owners resolves a lawsuit filed by Urban Global LLC under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The civil lawsuit was filed in the Central District of California and is captioned United States of America ex rel. Urban Global LLC v. Struxtur Inc. et al., No. CV20-7217 (C.D. Cal.). As part of today’s resolution, relator Urban Global LLC will receive approximately $1,215,000 of the settlement proceeds.
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Central District of California, with assistance from CBP’s Office of Chief Counsel, West Region and Trade Regulatory Audit and the Center of Excellence and Expertise for Industrial and Manufacturing Materials within CBP’s Office of Trade.
Assistant United States Attorney Sheng-Wen D. Jui of the Civil Division’s Civil Fraud Section and Senior Trial Counsel Christelle Klovers of the Justice Department’s Civil Division handled this case.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Hollywood Hills Man Sentenced to Nearly 3½ Years in Federal Prison for Paying Nearly $2.9 Million in Kickbacks for Drug Addiction Patient ReferralsRead the Press Release
LOS ANGELES – A Hollywood Hills man was sentenced today to 41 months in federal prison for paying illegal kickbacks for patient referrals to his addiction treatment facilities located in Orange County.
Casey Mahoney, 48, was sentenced by United States District Judge Josephine L. Staton, who also fined him $240,000.
At the conclusion of a nine-day trial in September 2024, a jury found Mahoney guilty of one count of conspiracy to solicit, receive, pay, or offer illegal remunerations for patient referrals and seven counts of receiving illegal kickbacks for patient referrals.
“This defendant illegally profited millions of dollars off of addicts who desperately needed help,” said Acting United States Attorney Joseph McNally. “Bribes and kickbacks compromise the integrity of substance abuse treatment facilities and undermine patient care. As the sentence imposed today demonstrates, those that engage in body brokering will go to federal prison.”
The charges relate to Mahoney’s operation of two addiction treatment facilities: the Huntington Beach-based Healing Path Detox LLC, and the San Juan Capistrano-based Get Real Recovery Inc.
From at least October 2018 to December 2020, Mahoney paid nearly $2.9 million in illegal kickbacks to so-called “body brokers” who referred patients to Mahoney’s addiction treatment facilities. Those body brokers in turn paid thousands of dollars in cash to patients. Brokered patients sometimes were dropped off at motels in Orange County and introduced to drug dealers. Some of these patients later overdosed and died.
Brokers also arranged for patients to receive drugs to make them eligible for more lucrative levels of care at Mahoney’s facilities. Mahoney paid one broker $140,000 per month for additional patients despite knowing that brokers offered to get some patients high. Mahoney also requested that his employees send brokers to track down former patients with lucrative insurance policies, which he called his “most wanted list.”
Throughout the scheme, Mahoney concealed the illegal kickbacks by entering into sham contracts with the body brokers which purportedly required fixed payments and prohibited payments based off of the volume or value of the patient referrals.
In reality, Mahoney and the brokers negotiated payments based on the patients’ insurance reimbursements and the number of days Mahoney was able to bill for treatment.
The FBI and IRS Criminal Investigation investigated this matter. The California Department of Insurance provided valuable assistance.
Assistant United States Attorney Nandor F.R. Kiss of the Orange County Office and Justice Department Trial Attorney Siobhan M. Namazi of the Criminal Division’s Fraud Section prosecuted this case.
Mahoney’s conviction arose out of violations of the Eliminating Kickbacks in Recovery Act (EKRA). EKRA was enacted in October 2018 as part of comprehensive legislation designed to address the opioid crisis and to target the rise in body brokering and substance abuse facility profiteering.
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 nine strike forces operating in 27 federal districts, has charged more than 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24.7 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, 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.
17 Previously Removed Defendants – Including Convicted Felons – Charged with Being Illegal Aliens Found in U.S. After RemovalRead the Press Release
LOS ANGELES – Working with U.S. Immigration and Customs Enforcement and other federal law enforcement partners, federal prosecutors in the last week filed charges against 17 defendants who allegedly illegally re-entered the United States after being removed, the Justice Department announced today.
Many of the defendants charged were previously convicted of felony offenses before they were removed from the United States, offenses that include assault with bodily injury. One of the defendants is suspected of murder while another was arrested on suspicion of committing assault with intent to rape.
The crime of being found in the United States following removal carries a base sentence of up to two years in federal prison. Defendants who were removed after being convicted of a felony face a maximum 10-year sentence and defendants removed after being convicted of an aggravated felony face a maximum of 20 years in federal prison.
Some of the recently filed cases are summarized below with information contained in court documents.
- Jescar Amarzca-Olgiuen, 51, of Mexico, was charged via a federal criminal complaint with being an illegal alien found in the United States after removal. Amarzca was charged after he was arrested in Orange County on March 19 as a suspect in the 2023 murder of a man who died from multiple gunshot wounds. His criminal history includes a felony conviction in 2013 in San Diego federal court for fraud and misuse of visas and permits, for which he was sentenced to 15 months in federal prison.
- Marvin Campos Cerna, 29, of El Salvador, was charged via a federal criminal complaint with being an illegal alien found in the United States after removal. Campos was charged after he was arrested in West Hollywood on March 7 for allegedly committing assault with intent to rape, false imprisonment, sodomy, and kidnapping. Prior to this arrest, Campos was convicted in 2014 for assault with bodily injury, for which he was sentenced to six years in California state prison.
- Victor Navarro-Cota, 23, and Tereso Guadalupe Martinez-Reyes, 20, both of Mexico, were arrested near Barstow on March 13 while driving a black Chevrolet Suburban filled with 478 pairs of Nike Jordan 6 Rings shoes, which retail for approximately $170 per pair, totaling $81,260. Both Martinez-Reyes and Navarro-Cota were in the U.S. illegally and each previously was deported in February 2025. Navarro-Cota’s arraignment is scheduled for April 22. Martinez-Reyes’ arraignment is scheduled for April 1.
Criminal complaints contain allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Immigration and Customs Enforcement and Homeland Security Investigations are investigating these matters.
The criminal cases are being prosecuted by Assistant United States Attorneys in the Domestic Security and Immigration Crimes Section and the General Crimes Section.
10 Indicted in Alleged Scheme Orchestrated by Street Gang Members to Smuggle Narcotics into a Riverside County JailRead the Press Release
RIVERSIDE, California – Three people were arrested today pursuant to a federal grand jury indictment alleging a scheme to smuggle narcotics into a Riverside County jail by concealing drugs inside of individuals who would purposely get arrested to deliver the contraband.
The three arrested today are among 10 defendants named in the indictment that alleges a scheme to smuggle fentanyl, methamphetamine and heroin into the detention facility. The other defendants charged in the case were already in custody.
“Drug smuggling endangers the lives of inmates and the sheriff’s deputies who are sworn to guard them,” said Acting United States Attorney Joseph McNally. “I thank and commend our partners at the FBI and the Riverside County Sheriff’s Department for the time and attention they have paid to this urgent and important matter.”
“This investigation highlights the importance of the cooperation and working relationship with our federal partner law enforcement agencies when it comes to public safety,” said Riverside County Sheriff Chad Bianco. “The smuggling of drugs into our jails, particularly with the emergence of fentanyl, has dramatically increased inmate deaths and medical emergencies within our corrections division. I commend the sheriff's investigators and FBI agents who worked tirelessly on this case to ensure those responsible were identified and brought to justice. We will continue to partner with federal agents in our ongoing efforts to keep Riverside County safe.”
The conspiracy allegedly was led by Andrew Jesus Ayala, 46, of Riverside, and members of a Riverside-based street gang who worked with three in-custody defendants who wanted to obtain narcotics, a group of facilitators on the street and an at least one drug mule who concealed narcotics in a body cavity, the indictment alleges.
The indictment outlines a scheme that began at an unknown date and continued into late 2022, when intercepted phone calls revealed efforts to smuggle narcotics into a Riverside County custody facility. Members of the drug trafficking ring obtain narcotics and recruited individuals who were willing to smuggle drugs hidden inside their bodies, according to the indictment.
Leaders of the scheme arranged temporary housing for the drug mules before and after they went into custody and delivered narcotics, according to the indictment, which details steps taken by the smugglers to avoid having the drugs detected by X-ray scanners.
In one incident in late 2022, a defendant attempted to smuggle 1¾ ounces of methamphetamine concealed inside his body, but that shipment was intercepted when the contraband was seen on an X-ray machine when the defendant was brought into custody, the indictment alleges.
Members of the conspiracy allegedly discussed smuggling fentanyl-laced pills that could be sold inside the jail for 10 times the street price.
The indictment unsealed today charges all 10 defendants with conspiracy to possess with intent to distribute and distribute methamphetamine, a charge that carries a mandatory minimum sentence of five years in federal prison and statutory maximum sentence of 40 years in federal prison. Nine of the defendants are additionally charged with possession with intent to distribute methamphetamine, which also carries a mandatory minimum sentence of five years in federal prison and statutory maximum sentence of 40 years in federal prison.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI and the Riverside County Sheriff’s Department are investigating this matter.
Assistant United States Attorneys Peter Dahlquist and Erin C. Kiss of the Riverside Branch Office are prosecuting this case.
Longtime Rollin’ 60s Crips Leader and Show Business Entrepreneur Charged in Federal Complaint Alleging Racketeering CrimesRead the Press Release
LOS ANGELES – A longtime leader of the South Los Angeles-based Rollin’ 60s Neighborhood Crips street gang – who also is an entertainment entrepreneur and a self-proclaimed community activist – has been charged in a federal complaint alleging he ran a criminal enterprise that committed a series of racketeering crimes, including extortion, human trafficking, fraud, and the 2021 murder of an aspiring rap musician, the Justice Department announced today.
Eugene Henley Jr., 58, a.k.a. “Big U,” of the Hyde Park neighborhood of South Los Angeles, is charged in the complaint with conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act.
Two other alleged members of the criminal enterprise – Sylvester Robinson, 59, a.k.a. “Vey,” of Northridge, and Mark Martin, 50, a.k.a. “Bear Claw,” of the Beverlywood area of Los Angeles – were arrested today on the same criminal complaint in which Henley is charged.
Robinson, and Martin are expected to make their initial appearances this afternoon in United States District Court in downtown Los Angeles. Henley is considered a fugitive.
“The allegations in the complaint unsealed today reveal a criminal enterprise that engaged in murder, extortion, human trafficking, and fraud – all led by a supposed anti-gang activist and purported music entrepreneur who was nothing more than a violent street criminal,” said Acting United States Attorney Joseph McNally. “Eliminating gangs and organized crime is the Department of Justice’s top priority. Today’s charges and arrests target the leadership of this criminal outfit and will make the neighborhoods of Los Angeles safer. I am grateful for the work of our prosecutors and law enforcement partners.”
“The lead defendant and others in this case have for too long gotten away with violent acts and stealing money from taxpayers and well-intentioned donors whether they use intimidation tactics or wield influence as purportedly rehabilitated original gangsters,” said Akil Davis, the Assistant Director in Charge of the FBI's Los Angeles Field Office. “The FBI and our partners have worked for four years to bring justice in this case and will continue to root out this kind of criminal behavior plaguing the streets of Los Angeles.”
In total, law enforcement in the last 24 hours arrested 10 Rollin’ 60s members and associates who are charged with various federal crimes, including drug trafficking, racketeering conspiracy, and firearms offenses. Four defendants already were in custody. Law enforcement is seeking the whereabouts of five other defendants – three of whom are expected to be in custody shortly. Two defendants, including Henley, are considered fugitives.
According to an affidavit filed with the criminal complaint filed Monday and unsealed today, from 2010 to the present, Henley’s criminal group – identified in court documents as the “Big U Enterprise” – operated as a mafia-like organization that utilized Henley’s stature and long-standing association with the Rollin’ 60s and other street gangs to intimidate businesses and individuals in Los Angeles. Henley is widely regarded as a leader within the Rollin’ 60s and rose to prominence in the street gang during the 1980s.
While the Big U Enterprise at times partnered with the Rollin’s 60s and other criminal elements for mutual benefit, the Big U Enterprise is a distinct and independent criminal enterprise engaged in criminal activity including murder, extortion, robbery, trafficking and exploiting sex workers, fraud, and illegal gambling.
For example, in January 2021, Henley murdered a victim – identified in the affidavit as “R.W.” – an aspiring musician signed to Uneek Music, Henley and Martin’s music label. Shortly before R.W.’s murder, Henley and Uneek Music paid for R.W. to travel to Las Vegas to record music at a Grammy Award-winning music producer’s studio.
But R.W. did not record at the agreed-upon rate and instead recorded a defamatory song about Henley, causing Henley and Robinson to travel to Las Vegas to confront him. Henley allegedly drove R.W. to North Las Vegas, shot him in the head, and dragged the victim’s body off Interstate 15 into the desert and left it in a ditch. Henley returned to Los Angeles with Robinson and ordered studio workers to leave while his associate removed security surveillance footage from the studio. Henley allegedly later ordered witnesses to not speak with law enforcement about R.W.’s murder.
Not only did the enterprise expand its power through violence, fear, and intimidation, but it also used social media platforms, documentaries, podcasts, interviews, and Henley’s reputation and status as an “O.G.” (original gangster) to create fame for – and stoke fear of – the Big U Enterprise, its members, and its associates.
In furtherance of the enterprise, Henley allegedly submitted a fraudulent application for a COVID-19 pandemic relief loan in which he claimed that Uneek Music was operating at a $200,000 profit in 2019 despite operating at a $5,000 loss that year, which should have disqualified it from loan eligibility.
The enterprise also enriched itself by defrauding donors to nonprofit entities under the control of the Big U Enterprise, including Henley’s charity, Developing Options, a Hyde Park-based nonprofit. Henley marketed Developing Options as giving South Los Angeles youth alternative choices to gang violence, drugs, and other criminal activity. But the Big U Enterprise allegedly used it as a front for fraudulent purposes and to insulate its members from suspicion by law enforcement.
Henley allegedly embezzled large donations that celebrities and award-winning companies made to Developing Options, which Henley immediately converted to his personal bank account. According to the complaint, Developing Options is primarily funded through the City of Los Angeles’s Mayor’s Office through the Gang Reduction Youth Development (GRYD) Foundation, portions of which receive federal funding, but also receives donations from prominent sources, including NBA players.
“The RICO charges against Mr. Henley and his associates reflect a pattern of crimes that runs the gambit from extortion to tax evasion, all under the umbrella of a well-organized criminal organization led by Mr. Henley,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “Additionally, Mr. Henley allegedly duped the County of Los Angeles by running a charitable organization that promoted anti-gang solutions while continuing criminal activity that was directly contrary to his charity. IRS-CI is proud to partner with fellow law enforcement organizations to investigate these criminal organizations to protect our communities from further harm.”
“From day one, the Los Angeles Police Department has been proud to stand shoulder to shoulder with the FBI in this critical investigation,” said Los Angeles Police Chief Jim McDonnell. “The invaluable expertise provided by the Operations South Bureau FBI Task Force on the Rollin’ 60’s criminal street gang has played a pivotal role in securing these charges. This is a major step forward in our ongoing fight against gang violence, and it brings hope and relief to a community that has endured far too much. Together, we will continue to protect and serve, working tirelessly to ensure the safety of our neighborhoods.”
Criminal complaints and indictments contain allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted, Henley would face a statutory maximum sentence of life in federal prison. If convicted, Robinson, and Martin would face a statutory maximum sentence of 20 years in federal prison.
The FBI’s Los Angeles Metropolitan Task Force on Violent Gangs; IRS Criminal Investigation; the United States Department of Justice Office of Inspector General; the Los Angeles Police Department; and the North Las Vegas Police Department are investigating this matter.
Assistant United States Attorneys Kevin J. Butler and Jena A. MacCabe of the Violent and Organized Crime Section are prosecuting this case.
Justice Department Files Statement of Interest Supporting Equal Access to Educational Opportunities and Facilities for Jewish UCLA StudentsRead the Press Release
The Federal Task Force to Combat Antisemitism announced that the Justice Department filed a statement of interest in the Central District of California to advance the appropriate interpretation of federal laws that prohibit colleges and universities from discriminating against students because of their religion or national origin. The statement of interest is part of the Task Force’s nationwide effort to combat antisemitism in all of its forms.
According to the allegations in Frankel et al. v. Regents of the University of California et al., in the spring of 2024 administrators of the University of California system allowed members of a protest encampment to physically prevent University of California, Los Angeles (UCLA) students and faculty from accessing portions of the UCLA campus if they were wearing articles reflective of their Jewish faith or if they refused to denounce Israel.
The plaintiffs are Jewish students and a Jewish professor at UCLA who allege that the university knowingly acted in concert with or allowed members of the protest encampment to prevent them from accessing a central campus space and adjacent classrooms and library on the basis of their Jewish faith or national origin in violation of Title VI of the Civil Rights Act of 1964 (Title VI), the Fourteenth Amendment’s Equal Protection Clause, and California state law. The United States’ statement of interest addresses the sufficiency of plaintiffs’ claims that defendant administrators violated Title VI and the Equal Protection Clause.
The Justice Department recently announced the formation of a multi-agency task force coordinated by the Civil Rights Division to combat antisemitism, which is visiting 10 university campuses that have experienced antisemitic events. The Department also recently announced its investigation into the University of California to assess whether the university system engaged in a pattern or practice of discrimination based on race, religion and national origin against its professors, staff and other employees by allowing an antisemitic hostile work environment to exist on its campuses, including UCLA. The Task Force also recently announced that the Department, together with other federal agencies, would cancel $400 million in federal contracts and grants to Columbia University due to the school’s inaction in the face of persistent harassment of Jewish students.
“The President, Attorney General Pam Bondi, and the Task Force know that every student must be free to attend school without being discriminated against on the basis of their race, religion or national origin,” said Leading Task Force member and Senior Counsel to the Assistant Attorney General for Civil Rights Leo Terrell. “The Department of Justice is working to combat antisemitism using all of the tools at our disposal.”
“Discrimination of any kind will not be tolerated in our community,” said Acting U.S. Attorney Joseph McNally for the Central District of California. “Our office will enforce anti-discrimination laws to address the issue of antisemitism affecting our residents.”
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.
DOJ Files Statement of Interest Supporting Equal Access to Educational Opportunities and Facilities for Jewish UCLA StudentsRead the Press Release
LOS ANGELES – The Federal Task Force to Combat Antisemitism announced today that the Justice Department has filed a statement of interest in Los Angeles federal court to advance the appropriate interpretation of federal laws that prohibit colleges and universities from discriminating against students because of their religion or national origin.
The statement of interest – filed on Monday – is part of the Task Force’s nationwide effort to combat antisemitism in all its forms.
According to the allegations in Frankel et al. v. Regents of the University of California et al., in the spring of 2024 administrators of the University of California system allowed members of a protest encampment to physically prevent University of California, Los Angeles (UCLA) students and faculty from accessing portions of the UCLA campus if they were wearing articles reflective of their Jewish faith or if they refused to denounce Israel.
The plaintiffs are Jewish students and a Jewish professor at UCLA who allege that the university knowingly acted in concert with or allowed members of the protest encampment to prevent them from accessing a central campus space and adjacent classrooms and library on the basis of their Jewish faith or national origin in violation of Title VI of the Civil Rights Act of 1964 (Title VI), the Fourteenth Amendment’s Equal Protection Clause, and California state law. The United States’ statement of interest addresses the sufficiency of plaintiffs’ claims that defendant administrators violated Title VI and the Equal Protection Clause.
The Justice Department recently announced the formation of a multi-agency task force coordinated by the Civil Rights Division to combat antisemitism, which is visiting 10 university campuses that have experienced antisemitic events.
The Department also recently announced its investigation into the University of California to assess whether the university system engaged in a pattern or practice of discrimination based on race, religion and national origin against its professors, staff and other employees by allowing an antisemitic hostile work environment to exist on its campuses, including UCLA.
The Task Force also recently announced that the Department, together with other federal agencies, would cancel $400 million in federal contracts and grants to Columbia University due to the school’s inaction in the face of persistent harassment of Jewish students.
“Discrimination of any kind will not be tolerated in our community,” said Acting U.S. Attorney Joseph McNally. “Our office will enforce anti-discrimination laws to address the issue of antisemitism affecting our residents.”
“The President, Attorney General Pam Bondi, and the Task Force know that every student must be free to attend school without being discriminated against on the basis of their race, religion or national origin,” said Leading Task Force member and Senior Counsel to the Assistant Attorney General for Civil Rights Leo Terrell. “The Department of Justice is working to combat antisemitism using all of the tools at our disposal.”
Assistant United States Attorney Katherine M. Hikida of the Civil Division’s Civil Rights Section and Senior Trial Attorneys Peter W. Beauchamp and Laura C. Tayloe of the Justice Department’s Civil Rights Division’s Educational Opportunities Section are representing the United States in 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.
Justice Department Files Statement of Interest in California Religious Land Use Lawsuit Brought by Small Christian ChurchRead the Press Release
SANTA ANA, California – The Justice Department filed a statement of interest today in federal district court supporting a small Christian church’s claim that the City of Santa Ana violated its rights under the under the Religious Land Use and Institutionalized Persons Act (RLUIPA) when it denied the church’s zoning application to use space in the city’s professional district as a house of worship.
The statement of interest was filed in Anchor Stone Christian Church v. City of Santa Ana, a private lawsuit alleging that the City violated RLUIPA by enacting and enforcing zoning provisions that treat religious uses less favorably than secular places of assembly. The lawsuit alleges that the city’s professional district allows, as of right, nonreligious assembly uses like museums and art galleries, but only allows religious assembly uses with the city’s discretionary approval of a conditional use permit (CUP).
“Zoning practices that unfairly limit assemblies by faith-based groups violate federal law,” said Acting United States Attorney Joseph McNally. “Municipalities cannot create zoning districts that treat houses of worship worse than comparable secular assemblies. The Justice Department will vigorously protect the right of religious institutions to receive equal treatment under the law.”
“RLUIPA prohibits local governments from treating religious assembly uses like the Anchor Stone Church worse than comparable nonreligious assemblies,” said Deputy Assistant Attorney General Mac Warner of the Justice Department's Civil Rights Division. “Zoning codes violate RLUIPA when they make it more difficult for people to gather for religious worship than for secular purposes. The Civil Rights Division will continue to vigilantly enforce RLUIPA’s protections and ensure that religious groups have equal access to places to worship as a community.”
The lawsuit alleges that Anchor Stone is a small Christian church of first-generation Chinese and Taiwanese Americans. It obtained space within the city’s professional district and applied for a CUP to operate a Church but was denied by the city. The Church filed a motion for preliminary injunction, seeking an order allowing it to worship at its property. The Department’s statement of interest supports the Church’s argument that the zoning code, on its face, treats religious uses less favorably than nonreligious assembly uses, in violation of RLUIPA’s equal terms provision, and that the city has failed to justify this unequal treatment.
RLUIPA is a federal law that protects persons and religious institutions from unduly burdensome, unequal, or discriminatory land use regulations. More information about RLUIPA and the department’s efforts to enforce it can be found on the Place to Worship Initiative’s webpage.
As part of this initiative, the department distributed a letter to state, county, and municipal leaders throughout the country to remind them of their obligations under RLUIPA, including its requirement that land use regulations treat religious assemblies and institutions at least as well as nonreligious assemblies and institutions. Additionally, as part of a series on combating religious discrimination and promoting awareness of RLUIPA, the department hosted an outreach forum last year with land use practitioners and religious leaders at Fowler School of Law at Chapman University in Orange County, California.
Individuals who believe they have been subjected to discrimination in land use or zoning decisions may contact the U.S. Attorney’s Office Civil Division’s Civil Rights Section at (213) 894-2879 or the Civil Rights Division’s Housing and Civil Enforcement Section at (833) 591-0291 or may submit a complaint through the RLUIPA complaint portal. More information about RLUIPA, including questions and answers about the law and other documents, may be found at www.justice.gov/crt/about/hce/rluipaexplain.php.
Justice Department Files Lawsuit Seeking Permanent Injunction Against Two Tax Preparers Based in Koreatown and ResedaRead the Press Release
LOS ANGELES – The Justice Department filed a lawsuit today against two defendants who allegedly prepared false federal tax returns under the names of a business with storefronts in the San Fernando Valley and the Koreatown area of Los Angeles.
Luis Alberto Mijangos and George Louis Montalvan are the defendants named in the lawsuit, which seeks to permanently stop them from preparing or filing federal tax returns.
According to the lawsuit, Mijangos and Montalvan prepared false tax returns under several business names, including Luismi Services Inc., Luismi Services, Luismi Income Tax Services, and CYL Professional Services. Mijangos and Montalvan allegedly used that business, which has storefronts in Koreatown and Reseda, to perpetuate an unlawful tax scheme in which they filed fraudulent tax returns that reported deductions, credits, exemptions, or other tax items for which their customers were not qualified to receive. From 2019 to 2022, the defendants filed at least 1,800 federal income tax returns with the IRS.
The IRS issued tax refunds based on the fabricated tax items, but customers did not receive the refunds. Instead, Mijangos and Montalvan allegedly diverted the refunds into bank accounts they owned or controlled.
For example, one customer paid $300 to the defendants to prepare and file her 2019 federal income tax return. The defendants provided this customer with a copy of a federal income tax return that reported a balance due in the amount of $364. The defendants indicated that version of the return would be filed with the IRS.
Instead, the defendants allegedly filed a tax return that reported a refund in the amount of $3,965. The claimed refund was based upon dependents and education credits that the defendants fabricated and falsely reported on the return. The customer never received the refund reported on the IRS version of her return. Instead, the defendants diverted the entire refund to a bank account owned or controlled by the defendants.
The claims mentioned in the lawsuit are allegations only. There has been no determination of liability.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers guidance on the credentials and qualifications that taxpayers should seek from their return preparer.
In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $79,000. For individuals whose income is over that threshold, IRS Free File offers electronic federal tax forms that can be filled out and filed online for free.
In the past decade, the Justice Department has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the U.S. Attorney’s Office’s website and the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page.
Assistant United States Attorney John D. Ellis of the Civil Division’s Tax Section is representing the United States in this matter.
Four Chinese Nationals Sentenced to Federal Prison in Scheme Targeting Hundreds of U.S. Consumers and Multiple U.S. RetailersRead the Press Release
LOS ANGELES – Four Chinese nationals were sentenced to federal prison today for their participation in a complex scheme that involved the theft of hundreds of identities to defraud multiple domestic retailers out of at least $1.2 million.
A fifth co-conspirator was previously sentenced to more than four years in prison, and a sixth is awaiting sentencing following a guilty plea.
As part of the scheme, these six defendants stole the victims’ identities – including their Social Security numbers, dates of birth and home addresses – and used that information to make fake driver’s licenses that were used to access credit in the victims’ names at large national retailers, including Ulta Beauty, Sephora, Nordstrom, Macy’s, Kohl’s, Williams-Sonoma, Dillard’s, and Saks Fifth Avenue.
The four defendants, all Chinese nationals who entered the country under false pretenses, were sentenced today by United States District Judge Stephen V. Wilson. All four pleaded guilty on January 6. They are:
- Kar Kee “Steven” Cheung, 36, of Chino Hills, was sentenced to 42 months in federal prison after pleading guilty to one count of visa fraud, one count of possession of equipment used to manufacture false identification documents, and one count of conspiracy to commit access device fraud;
- Qian Guo, 37, of Chino Hills, was sentenced to 33 months in federal prison for one count of possession of equipment used to manufacture false identification documents and one count of conspiracy to commit access device fraud;
- Chongming “Ming” Wang, 28, of Temple City, was sentenced to 18 months in federal prison for one count of conspiracy to commit access device fraud and one count of aiding and abetting access device fraud in excess of $1,000; and
- Jiaozhu “Yanny” Yan, 30, of Alhambra, was sentenced to 12 months and one day in federal prison for one count of visa fraud.
Previously in this case, Sizhen “Rachel” Liu, 35, also a Chinese national and a resident of Chino Hills, was sentenced on January 6 to 50 months in federal prison for one count of conspiracy to commit access device fraud and one count of access device fraud in excess of $1,000.
The sixth defendant in the case, Hyun Woo “Scott” Jung, 30, of Ontario, pleaded guilty on February 10 to one count of conspiracy to commit access device fraud and one count of possession with intent to use unlawfully five or more false identification documents. Jung is scheduled to be sentenced by Judge Wilson on May 5.
The ongoing investigation in this matter is being conducted by the State Department’s Diplomatic Security Service. The DSS Los Angeles Field Office has created a tipline to solicit information confidentially from sources with information about this scheme. Security and loss prevention personnel from large national retailers, particularly those identified above, are encouraged to contact the DSS LA Retail Fraud Tipline if they have information about Los Angeles-area transactions closely matching this scheme. Suspects using fake driver’s licenses as part of this scheme may also be opening retail-branded credit accounts in the victims’ names.
During this investigation, DSS has received substantial assistance from Homeland Security Investigations and the FBI, with additional support coming from the Alhambra Police Department, the Arcadia Police Department, and the Bel Air, Maryland Police Department.
Assistant United States Attorney Kim Meyer of the Violent and Organized Crime Section prosecuted this case.
Former Fairfax District Resident Sentenced to 3 Years in Prison for Fraudulently Obtaining Public Assistance Benefits via Identity TheftRead the Press Release
LOS ANGELES – A former resident of the Fairfax District of Los Angeles was sentenced today to 36 months in federal prison his role in a scheme that involved using illegal skimmers on ATMs to harvest data, creating counterfeit debit cards using the stolen account holders’ information, and then using the cards to make cash withdrawals from numerous victims’ accounts.
Sorin-Miguel Ghiorghe, 47, was sentenced by United States District Judge John F. Walter, who will schedule a restitution hearing to occur in the coming months.
Ghiorghe pleaded guilty in October 2024 to one count of conspiracy to commit bank fraud, three counts of bank fraud, one count of aggravated identity theft, one count of possession of 15 or more unauthorized access devices, and one count of possession of device-making equipment.
Ghiorghe – a Romanian national whom prosecutors believe illegally entered the United States – admitted that he and his accomplices used counterfeit cards to fraudulently make withdrawals from the accounts of numerous victims, and that he specifically used the counterfeit cards to withdraw thousands of dollars from victims’ accounts.
The skimming ring focused on illegally accessing funds administered by the California Department of Social Services to low-income California residents through Electronic Benefit Transfer (EBT) accounts, including CalFresh and CalWorks benefits. When law enforcement searched the apartment Ghiorghe was living in, they located ATM-skimming equipment and EBT account numbers in other peoples’ names.
The United States Secret Service investigated this case and received significant assistance from the Los Angeles Police Department.
Assistant United States Attorney Max A. Shapiro of the General Crimes Section prosecuted this case.
Colombian Man Illegally in the United States Pleads Guilty to Participating in Armed Robbery at Hotel in Beverly Hills Last YearRead the Press Release
LOS ANGELES – An illegal alien from Colombia pleaded guilty today to a federal criminal charge for participating in the armed robbery of a victim at a Beverly Hills hotel and belonging to a robbery crew that possessed a firearm once registered to the late former Los Angeles Police Officer Christopher Dorner.
Jamer Mauricio Sepulveda Salazar, 22, pleaded guilty to one count of interference with commerce by robbery (Hobbs Act). Sepulveda has been in federal custody since August 2024.
According to his plea agreement, Sepulveda was the getaway driver during the August 7, 2024, armed robbery of a victim identified in court documents as “T.A.” On that date during dinnertime, two unidentified robbers held the victim at gunpoint inside the patio of “THE Blvd,” a restaurant located within the Beverly Wilshire Hotel in Beverly Hills. The robbers stole a Patek Philippe Nautilus wristwatch from T.A. at gunpoint. T.A. reported that his watch was valued at approximately $1 million.
Sepulveda and his co-defendant, Jesus Eduardo Bryan Padron Rojas, 20, an illegal alien from Venezuela, cased the area two day before the robbery trying to find T.A.’s watch, which they and their co-conspirators valued at $1.3 million.
The crew coincidentally stumbled upon another victim walking in Beverly Hills wearing a $30,000 Rolex wristwatch. A member of Sepulveda’s crew stole that wristwatch at gunpoint.
During this time, the robbery crew stayed at an Airbnb and possessed multiple firearms, including a Glock .45-caliber handgun loaded with 12 rounds of .45-caliber ammunition. The gun previously was registered to Dorner, known for committing a series of murders before dying in a standoff with law enforcement in February 2013.
United States District Judge Otis D. Wright II scheduled a July 14 sentencing hearing, at which time Sepulveda will face a statutory maximum sentence of 20 years in federal prison.
Criminal charges are still pending against Padron.
Homeland Security Investigations, the Beverly Hills Police Department, and the Blythe (California) Police Department investigated this matter.
Assistant United States Attorneys Jena A. MacCabe and Kevin J. Butler of the Violent and Organized Crime Section are prosecuting this matter.
Federal Prosecutors Charge 16 Previously Removed Illegal Aliens – Including Convicted Felons – with Illegally Re-entering the U.S.Read the Press Release
LOS ANGELES – Working with U.S. Immigration and Customs Enforcement and other federal law enforcement partners, federal prosecutors in the last two weeks filed charges against 16 defendants who allegedly illegally re-entered the United States after being removed, the Justice Department announced today.
Many of the defendants charged were previously convicted of felony offenses before they were removed from the U.S., offenses that include sexual abuse of children. One of the defendants is charged in state court with a murder in Inglewood last month.
The crime of being found in the United States following removal carries a base sentence of up to two years in federal prison, defendants who were removed after being convicted of a felony face a maximum 10-year sentence, and defendants removed after being convicted of an aggravated felony face a maximum of 20 years in federal prison.
Some of the recently filed cases are summarized below with information contained in court documents.
- United States v. Saravia-Sanchez
Jose Cristian Saravia-Sanchez, 30, of El Salvador, was charged via a federal criminal complaint after he was arrested by Inglewood Police Department as a suspect in the February 25 murder of a man who tried to stop Saravia and another individual from stealing a neighbor’s catalytic converter.
Following the arrest, federal law enforcement determined that Saravia was previously removed in 2013 and returned to the United States illegally. At the time of his arrest on March 6, officers found a firearm in the bathroom of the hotel room in which Saravia barricaded himself, resulting in an hours-long standoff with law enforcement.
In the complaint, Saravia is charged with being an illegal alien found in the United States and an alien in possession of a firearm. His criminal history includes a felony conviction in Los Angeles Superior Court in May 2023 for taking a vehicle without the owner’s consent. Saravia is in state custody and has been booked for murder.
The matter was investigated by the Homeland Security Investigations with assistance from the Bureau of Alcohol, Tobacco, Firearm and Explosives, and ICE’s Enforcement and Removal Operations.
- United States v. Marquina-Sierra
Francisco Marquina-Sierra, 32, of Mexico, was charged via a federal criminal complaint for being an illegal alien found in the United States after he was previously removed. An immigration judge ordered him removed in December 2013. Marquina’s criminal history includes convictions in Orange County Superior Court for second-degree robbery in 2012 and for child abuse with possible great bodily injury in 2023 for which he was incarcerated in California state prison. On March 12, a federal magistrate judge ordered Marquina jailed without bond. His arraignment is scheduled for April 14 in United States District Court in Santa Ana.
- United States v. Barreto
Luis Enrique Barreto, 38, of Mexico, a convicted sex offender, was charged this week in a two-count indictment for allegedly failing to register under the federal Sex Offender Registration and Notification Act (SORNA) and for illegally returning to the United States following removal.
Barreto, who was found living across from a school when he was arrested, was convicted in 2012 in Orange County Superior Court of lascivious acts with a child 14 or 15 years of age and offender 10 or more years older than victim (lewd act upon a child). In September 2021, Barreto was removed to Mexico, but he returned to the United States by the following year and did not register as a sex offender.
A federal magistrate judge ordered Barreto jailed without bond pending trial. His arraignment is scheduled for March 18 in United States District Court in downtown Los Angeles.
Criminal complaints and indictments contain allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Immigration and Customs Enforcement and Homeland Security Investigations are investigating these matters.
The criminal cases are being prosecuted by Assistant United States Attorneys in the Domestic Security and Immigration Crimes Section and the General Crimes Section.
Three Defendants Face Federal Charges of Bilking and Attempting to Defraud FEMA with Fraudulent Claims for Wildfire Disaster BenefitsRead the Press Release
LOS ANGELES – Three defendants have been charged in recent days with fraudulently seeking federal disaster relief funds by falsely claiming their properties were damaged by the Eaton and Palisades wildfires when in fact they did not have an interest in the affected property or the property was not affected by either fire, the Justice Department announced today.
Three defendants – two in Southern California and one in Texas – were arrested this week after being charged with defrauding the Federal Emergency Management Agency.
“These defendants allegedly made false and fraudulent claims to FEMA for emergency benefits related to wildfires that devastated Los Angeles County two months ago,” said Acting United States Attorney Joseph McNally. “These false claims resulted in badly needed disaster-relief money being denied to actual wildfire victims while these defendants allegedly used property information to illegally line their own pockets.”
“The Department of Homeland Security, Office of Inspector General, along with our law enforcement partners, including HSI, SBA OIG, FEMA fraud investigations and Inspections Division, IRS Criminal Investigation and the U.S. Attorney’s Office, will continue to investigate anyone who attempts to defraud FEMA in order to protect the integrity of government assistance programs, and to ensure FEMA funds are accessible to those who truly need them,” said Matthew Brackett, Special Agent in Charge of DHS OIG, Los Angeles Field Office.
“Criminals will seize every opportunity to defraud the government, even at the expense of those who have lost everything,” said Homeland Security Investigations (HSI) Los Angeles Acting Special Agent in Charge John Pasciucco. “We strongly urge the public to report any suspicious activity related to disaster relief claims to the HSI Los Angeles’ El Camino Real Financial Crimes Task Force and our law enforcement partners.”
“These suspects are accused of attempting to defraud the U.S. Government out of disaster relief funds carved out to help those who lost loved ones, pets, and homes…as well as those whose properties were damaged instead of destroyed,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “IRS Criminal Investigation stands proudly with our law enforcement partners to prevent and deter this sort of fraud to ensure relief funds exist for those in need as Los Angeles rebuilds our communities.”
The allegedly false claims were made in the wake of the Eaton and Palisades fires that started on January 7. Together, the wildfires burned nearly 60,000 acres, destroyed more than 16,000 structures, and resulted in the deaths of 29 people. As a result, the President approved a Major Disaster Declaration, which prompted FEMA to develop a program to provide financial assistance to fire victims.
FEMA offered various forms of relief, a one-time payment of $750, up to $43,600 for “other needs” assistance, and housing assistance for up to 18 months. Homeowners are also potentially eligible for additional relief of up to $43,600 for home repair.
The fraud alleged in the three cases include payment of “other needs assistance” based on false claims of damage to personal property, lost vehicles, and medical and relocation expenses.
The cases announced today were investigated by the Department of Homeland Security’s Office of Inspector General and HSI’s El Camino Real Financial Crimes Task Force.
- United States v. Turner
Joyce Turner, 55, of Rosharon, Texas, was arrested Tuesday after being charged Friday in a criminal complaint with fraud in connection with major disaster or emergency benefits.
Turner allegedly submitted an application claiming her home had been destroyed in the Eaton fire, but she appears never to have lived in California and in fact had no connection to the address she claimed was destroyed in the fire. Instead, she allegedly forged a lease making it look like she lived there, and she received more than $25,000 from FEMA because of the fraudulent submissions.
“Turner submitted at least ten other applications to FEMA for disaster relief (so eleven total) related to seven other federally declared disasters, e.g., Hurricane Katrina (2005), Hurricane Ike (2008), Hurricane Isaac (2012), Hurricane Harvey (2017), and Hurricane Beryl (2024), and otherwise has a criminal history showing previous arrests and convictions for fraud offenses,” the affidavit states.
Turner is scheduled to make her initial appearance today in United States District Court in the Southern District of Texas and is expected to appear in the Central District of California in the coming weeks.
This case is being prosecuted by Assistant United States Attorney Kerry L. Quinn of the Major Frauds Section.
- United States v. Barnes
Tyrone D. Barnes Jr., 38, of Paramount, was arrested Tuesday after being named in an indictment charging him with making false claims that was returned by a federal grand jury on February 21. The indictment alleges that Barnes submitted a disaster relief claim to FEMA for an Altadena property owned by other individuals who did not know Barnes. The true owners of the property contacted FEMA about potential assistance, which is when they learned another person had already submitted an application in relation to their property.
Barnes is expected to make his initial appearance this afternoon in United States District Court in downtown Los Angeles.
This case is being prosecuted by Assistant United States Attorney David Y. Pi of the Major Frauds Section.
- United States v. Robertson
Hedeshia Robertson, 36, of Lakewood, was arrested on Tuesday after being charged in a criminal complaint filed Monday. Robertson allegedly filed a fraudulent application for FEMA benefits on January 28, seeking benefits related to a damaged residence in the Pacific Palisades that she did not own, did not rent, and in which she did not reside or work. As a result of her fraudulent application, Robertson obtained approximately $24,899 in FEMA benefits to which she was not entitled. At the time of her arrest, Robertson also allegedly attempted to obtain additional FEMA benefits for a purported property lease in San Francisco. She is due to make an initial appearance in court this afternoon.
This case is being prosecuted by Assistant United States Attorneys Scott Paetty and Roger Hsieh of the Major Frauds Section.
Complaints and indictments contain allegations of criminal conduct. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The charge of fraud in connection with major disaster or emergency benefits carries a statutory maximum sentence of 30 years in federal prison. The charge of false, fictitious, or fraudulent claim against the United States carries a statutory maximum sentence of five years in federal prison.
To report fraud related to FEMA disaster-relief public assistance, please contact the U.S. Department of Homeland Security Office of Inspector General (DHS-OIG) hotline at (800) 323-8603. Homeland Security's tip line may be contacted at (866) 347-2423.
Newport Beach Man Indicted for Allegedly Using Sports Gambling Losses as Business Expenses to Evade Federal Tax PaymentsRead the Press Release
LOS ANGELES – An Orange County man is scheduled to be arraigned today on a federal grand jury indictment alleging he committed tax evasion by deducting millions of dollars in gambling losses and other personal expenditures as business expenses.
Edward Michael Greer, of Newport Beach, is charged with four counts of tax evasion.
Greer is scheduled to be arraigned this afternoon in United States District Court in downtown Los Angeles.
According to the indictment, Greer owned an insurance salvage company, the La Mirada-based Greer & Kirby Co. Inc. From 2017 to 2020, Greer allegedly used the company’s bank accounts to pay for personal expenses, including payments to bookmakers Wayne Joseph Nix and Ken Arsenian to cover sports gambling losses, and to purchase a 2021 Mercedes-Benz automobile.
The indictment further alleges that Greer concealed these personal payments in the company’s business records, and in many cases directed to payments to be recorded as business expenses to reduce the company’s income.
Nix and Arsenian previously pleaded guilty for their roles in operating an illegal sports gambling business and are expected to be sentenced in the coming months.
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, Greer faces a statutory maximum sentence of five years in federal prison for each count.
IRS Criminal Investigation is investigating this matter.
Assistant United States Attorney Jeff Mitchell of the Major Frauds Section and Trial Attorneys Julia Rugg and Mahana Weidler of the Justice Department’s Tax Division are prosecuting this case.
Former NFL Player Sentenced to 2½ Years in Prison for Real Estate and Gold Mine Ponzi Scheme that Caused $5.3 Million in LossesRead the Press Release
LOS ANGELES – A former NFL linebacker was sentenced today to 30 months in federal prison for running a Ponzi scheme in which he defrauded victims out of more than $5 million by lying to them that he was involved in lucrative luxury real estate investments, gold mines in Alaska and Ghana, and other ventures, and promising them high rates of return on their investments.
John Robert Leake, 43, of Plano, Texas, but who formerly resided in Marina del Rey, was sentenced by United States District Judge John F. Walter, who also ordered him to pay $5,314,059 in restitution.
Leake pleaded guilty in September 2024 to one count of wire fraud and one count of transactional money laundering.
From June 2015 to March 2020, Leake solicited money from victims by falsely claiming that he was participating in multiple lucrative business ventures, including subletting luxury real estate properties and real estate investing. Leake offered his victims the opportunity to loan him funds for him to invest in these purported ventures in exchange for a high rate of return.
In fact, Leake knew these investment opportunities often were fabricated and non-existent and were devised by Leake to defraud victims and trick them into giving him money.
Leake duped his victims by lying that he had invested large amounts of his own money in the purported business ventures he promoted. Leake rarely invested his own money into them.
He also fraudulently offered to personally guarantee return of the victims’ loans and provided them promissory notes purporting to memorialize his promise to repay the victims at a fixed rate of interest. Leake’s lies to his victims included his claims that his business ventures were successful, and he had accumulated substantial personal assets and income. In fact, Leake lacked sufficient personal assets and income to repay his victims.
Once in receipt of the victim’s money, Leake – without the victims’ knowledge or consent – used some of the funds to pay his own personal expenses, including credit card bills, car payments, rent, and gambling expenses. To continue his scam, Leake also used some of the victims’ money to lull victims by making purported “interest” and “capital” payments on the promissory notes. Leake used a small amount of his personal funds to make these payments.
In total, Leake fraudulently received approximately $8,129,450 from six victims, causing them a total loss of approximately $5,314,059.
IRS Criminal Investigation investigated this matter.
Assistant United States Attorney James C. Hughes of the Major Frauds Section prosecuted this case.
California Businessman Indicted for Tax EvasionRead the Press Release
A federal grand jury in Los Angeles recently returned an indictment charging a California man with tax evasion.
According to the indictment, Edward Michael Greer, of Newport Beach, owned an insurance salvage company, Greer & Kirby Co. Inc. From 2017 through 2020, Greer allegedly used the business’s bank accounts to pay for personal expenses, including payments to bookmakers Wayne Nix and Ken Arsenian to cover sports gambling losses, and to purchase a 2021 Mercedes Benz. The indictment further alleges that Greer concealed these personal payments in the business records, and in many cases directed the payments to be recorded as business expenses to reduce its income.
Wayne Nix and Ken Arsenian previously pleaded guilty for their roles in operating an illegal sports gambling business.
If convicted, Greer faces a maximum penalty of five years in prison for each count of evasion. 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 Acting U.S. Attorney Joseph T. McNally for the Central District of California made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Julia Rugg and Mahana Weidler of the Tax Division and Assistant U.S. Attorney Jeff Mitchell for the Central District of California are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
San Bernardino Church Pastor and Ex-Political Candidate Arrested for Alleged Wire Fraud Schemes Targeting Friends, NonprofitRead the Press Release
RIVERSIDE, California – A pastor at a San Bernardino church and one-time political candidate for the San Bernardino City Council has been arrested on an 11-count federal grand jury indictment alleging he committed several con jobs targeting long-time friends and a nonprofit corporation tied to another church, swindling them out of a total of more than $230,000, the Justice Department announced today.
Terrance Owens Elliott, 60, a.k.a. “Tony Elliott,” of Crestline, is charged with 11 counts of wire fraud.
Elliott was arrested Thursday and is scheduled to be arraigned this afternoon in United States District Court in Riverside.
The Family Trust
According to the indictment that a grand jury returned February 26, from October 2019 to February 2023, Elliott – representing himself as working in the San Bernardino city government and being involved with the San Bernardino Police Department – defrauded several long-time friends out of approximately $150,263 by convincing one friend – identified in the indictment as “M.C” – to put her inheritance money into a trust for her own benefit. Elliott convinced this victim to allow him to establish and administer that trust, claiming that she would lose her Medicare and Social Security benefits if she directly received the inheritance.
Elliott prepared a trust agreement that appointed himself as a co-trustee. The trust provided that its money was to be used for the M.C.’s financial needs during her lifetime and permitted that her funeral expenses were to be paid from the trust with any remaining property being passed to her children upon her death.
Elliott then opened a bank account in the trust’s name listing only himself as a trustee and gave the bank a fraudulently modified copy of the trust agreement that purported that he had the sole power to make payments from the trust’s bank account.
He then wrote checks and made online transfers to a church – identified in the indictment as “Church A” – that weren’t permitted under the trust agreement. He also used the money from that trust’s bank account to purchase postal money orders that were used to pay the church’s rent. Elliott further used the account to pay for his personal expenses, including the repair of a Chevrolet truck, Nike sneakers, a piano, clothing, and an extended warranty for a motorcycle.
Elliott also obtained access to M.C.’s account at a different bank to make approximately $27,164 in unauthorized transfers of some of her monthly Social Security payments to the church.
When the victim’s family asked Elliott about the trust account or asked for bank statements, he lulled them into compliance by getting upset and telling them that everything was under control.
When M.C. died, Elliott tricked another victim – identified as “W.H.” – into paying approximately $8,615 for the victim’s funeral expenses, falsely claiming that he needed authorization from a judge before money in the trust bank account could be released.
Through this scheme, Elliott defrauded four victims – including M.C. and W.H. – out of at least approximately $150,263.
The Corporation
In a separate scheme, from June 2021 to February 2023, Elliott advised victim W.H. on selling a house when renters occupied the property. After W.H. sold the house, Elliott called him and suggested the victim’s corporation loan M.C.’s trust $65,000, falsely claiming this would help the victim to avoid having to pay a capital gains tax from the house’s sale.
Elliott prepared a loan contract between a corporation W.H. had set up and M.C.’s trust, which they signed. Elliott told W.H. that Elliott would transfer $65,000 from the corporation to the trust account and that the trust would repay the loan with 10% annual interest. Elliott convinced the victim to give him several signed blank checks from the bank account of W.H.’s corporation.
Instead of honoring the contract, Elliott used one of the blank checks to make an unauthorized transfer to Church A – without W.H.’s knowledge or consent. Although Elliott ultimately transferred $49,000 to the trust, he never repaid any part of the $65,000 loan. Instead, he spent the bulk of the money on his own personal expenses.
Nonprofit Litigation
Finally, from September 2018 to June 2021, Elliott used his relationships with Church B and its board of directors to help manage the church’s litigation expenses and other costs involving a different church – identified in the indictment as “Church B” and a nonprofit.
Elliott lied to the nonprofit and Church B’s board of directors that the nonprofit owed money to W.H.’s corporation for services rendered related to litigation against them. He caused the nonprofit to issue approximately 32 checks to W.H.’s corporation, which Elliott later deposited in a corporation-related bank account that Elliott controlled.
Elliott did not use the money from the checks for the nonprofit’s benefit and defrauded it out of approximately $23,300.
In total, Elliott allegedly caused his victims approximately $238,563 in losses.
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, Elliott would face a statutory maximum sentence of 20 years in federal prison for each count.
The FBI is investigating this matter. Based on evidence, investigators believe it is possible that Elliott has additional victims yet to be identified. If you have any information, please contact the FBI at (310) 477-6565 or tips.fbi.gov.
Assistant United States Attorney Benjamin J. Weir of the Riverside Branch Office is prosecuting this case.
Former Olympian Wanted for Running Transnational Drug Enterprise and Ordering Several Murders Added to FBI’s List of Ten Most Wanted FugitivesRead the Press Release
LOS ANGELES – Former Olympic snowboarder and Canadian national, Ryan Wedding, 43, has been added to the FBI’s Ten Most Wanted Fugitives list, Akil Davis, the Assistant Director in Charge (ADIC) of the FBI’s Los Angeles Field Office, announced today during a press conference in Westwood.
ADIC Davis was joined by law enforcement partners with the United States Department of State, Royal Canadian Mounted Police – Federal Policing, the Los Angeles Police Department, the Drug Enforcement Administration – Los Angeles, and the United States Attorney’s Office – Central District of California.
Ryan Wedding, whose aliases include “El Jefe,” “Giant,” “Public Enemy,” “James Conrad King,” and “Jesse King,” was born in Thunder Bay, Canada, and competed in the Giant Slalom snowboarding competition during the 2002 Winter Olympics in Salt Lake City.
At present, Wedding is wanted for allegedly running a transnational drug trafficking network that routinely shipped hundreds of kilograms of cocaine from Colombia, through Mexico and Southern California, to Canada and other locations in the United States, and for orchestrating multiple murders and an attempted murder in furtherance of these drug crimes.
Wedding’s placement on the top 10 list marks the 535th addition to the FBI’s list of notorious fugitives. Wedding will replace Alexis Flores who is wanted by FBI Philadelphia. Although Flores is being removed from the list today, he will remain on the FBI’s website on its Most Wanted page.
“As alleged in the superseding indictment, defendant Ryan Wedding – a former Olympian – led a transnational criminal organization that murdered innocent people and put thousands of kilograms of narcotics on our streets,” said Acting United States Attorney Joseph McNally. “The reward offered today will help bring this defendant to justice in the United States. We urge anyone with information about Wedding to contact law enforcement and help us get Mr. Wedding into custody.”
“Wedding went from shredding powder on the slopes at the Olympics to distributing powder cocaine on the streets of U.S. cities and in his native Canada,” said Akil Davis, the Assistant Director of the FBI’s Los Angeles Field Office. “The alleged murders of his competitors make Wedding a very dangerous man, and his addition to the list of Ten Most Wanted Fugitives, coupled with a major reward offer by the State Department, will make the public our partner so that we can catch up with him before he puts anyone else in danger.”
Additionally, the U.S. Department of State’s Bureau of International Narcotics and Law Enforcement Affairs announced that it is offering a $10-million-reward for information leading to Wedding’s arrest and/or conviction. The reward was authorized by Secretary of State Marco Rubio under the Narcotics Rewards Program (NRP), which supports law enforcement efforts to disrupt transnational crime globally and bring fugitives to justice. This reward offering supplements the FBI’s current offering of $50,000 for information leading to Wedding’s apprehension, arrest, and extradition, and further, is jointly being offered with assistance from the Canadian and Mexican governments as part of a unified effort to bring Wedding to justice.
“The Department of State is offering a reward of up to $10 million for information leading to the arrest and/or conviction of Ryan James Wedding,” said Senior Bureau Official F. Cartwright Weiland of the Department of State’s Bureau of International Narcotics and Law Enforcement Affairs (INL). “We are committed to protecting American communities from thugs who, with clear consciences, deliberately peddle illicit narcotics and prey on our youth.”
In June 2024, Wedding and his second-in-command Andrew Clark, 34, also Canadian, were charged in an indictment out of the Central District of California with running a continuing criminal enterprise; committing murder in connection with a continuing criminal enterprise and assorted drug crimes; and conspiring to possess, distribute, and export cocaine. Clark, who was arrested last October by Mexican authorities, was among the 29 fugitives whom Attorney General Pamela Bondi announced had arrived in the United States from Mexico last week.
In September 2024, a federal grand jury in Los Angeles returned a superseding indictment naming 14 additional defendants and including, among other counts, an attempted murder charge against Wedding and Clark. The superseding indictment alleges that Wedding, Clark, and others conspired to ship bulk quantities of cocaine – weighing hundreds of kilograms – from Southern California to Canada through a Canada-based drug transportation network run by Hardeep Ratte, 46, of Ontario, Canada, and Gurpreet Singh, 31, of Ontario, Canada, from approximately January 2024 to August 2024. The cocaine shipments were transported from Mexico to the Los Angeles area, where the cocaine trafficking organization’s operatives stored the cocaine in stash houses, before delivering it to the transportation network couriers for delivery to Canada using long-haul semi-trucks.
The superseding indictment also alleges that Wedding and Clark’s organization resorted to violence – including multiple murders – to achieve its aims. Wedding and Clark allegedly directed the November 20, 2023, murders of two members of a family in Ontario, Canada, in retaliation for a stolen drug shipment that passed through Southern California. Another member of that family survived the shooting but was left with serious physical injuries. Wedding and Clark allegedly also ordered the murder of another victim on May 18, 2024, over a drug debt. In addition, Clark and Malik Damion Cunningham, 23, a dual Canadian-American citizen, are charged with the April 1, 2024, murder of another victim in Ontario, Canada.
“The RCMP is committed to working with our international partners in the fight against transnational criminals,” said Liam Price, Director General, Royal Canadian Mounted Police International program. “It’s imperative that Ryan Wedding faces justice for the charges against him. We will continue to stand with and support our US and Mexican partners in this and other investigations to protect the public.”
If convicted, Wedding and Clark would face a mandatory minimum penalty of life in federal prison on their respective continuing criminal enterprise charge. The murder and attempted murder charges carry a mandatory minimum penalty of 20 years in federal prison. The drug trafficking charges carry mandatory minimum penalties of 10 to 15 years in prison.
“The former Canadian snowboarder unleashed an avalanche of death and destruction, here and abroad,” said Matthew Allen, Special Agent in Charge of the Drug Enforcement Administration’s Los Angeles Field Division. “He earned the name ‘El Jefe’, becoming boss of a violent transnational drug trafficking organization. Now, his face will be on ‘The Top 10 Most Wanted’ posters. He’s unremitting, callous and greed-driven. Today’s announcement beams an even brighter searchlight on him. We ask that you help us find him.”
The FBI urges anyone with information as to Wedding’s whereabouts to contact the FBI via WhatsApp, Signal or Telegram at +1-424 495-0614. These are neither government-operated nor government-controlled platforms. Callers may also contact their local FBI office, the nearest American Embassy or Consulate, or submit a tip online at tips.fbi.gov. Confidentiality will be granted to anyone who calls with information.
Investigators believe that Wedding is residing in Mexico but have not ruled out his presence in the United States, Canada, Colombia, Honduras, Guatemala, Costa Rica, or elsewhere.
Wedding is further described as follows:
- Aliases: James Conrad King, Jesse King
- DOB: September 14, 1981
- Hair: Brown, may wear a beard and/or mustache
- Eyes: Blue
- Height: 6’3”
- Weight: 240 lbs. (may vary)
- Nationality: Canadian
- Place of Birth: Thunder Bay, Canada
- Monikers: “Giant,” “Public Enemy,” “El Jefe”
Photographs and reward information about Wedding will be posted on digital billboards in key locations, as well as on fbi.gov, and on the FBI’s social media platforms. Additional information about Wedding and other Top Ten Fugitives is available at this link: Top Ten Fugitives.
The FBI’s “Ten Most Wanted Fugitives” list was established in March 1950. Since its inception, 535 fugitives have been placed on the list of “Ten Most Wanted Fugitives,” 496 of whom were apprehended or located; 163 were due to citizen cooperation.
The FBI is investigating Wedding and Clark’s drug trafficking enterprise with the Los Angeles Police Department, DEA Los Angeles, and the Royal Canadian Mounted Police – Federal Policing. In addition, significant assistance has been provided by U.S. law enforcement partners, including Homeland Security Investigations – Detroit, and United States Customs and Border Protection – Buffalo; Canadian law enforcement partners, including Niagara Regional Police Service, Ontario Provincial Police, Toronto Police Service, and Peel Regional Police; Mexican law enforcement partners; and Colombian law enforcement partners, including Colombian National Police – Directorate of Criminal Investigation and Interpol, Special Interagency Investigation Group (Policía Nacional de Colombia – Dirección de Investigación Criminal e Interpol, Grupo Especial de Investigación Interagenciales).
Assistant United States Attorneys Lyndsi Allsop and Maria Jhai of the Violent and Organized Crime Section and Ryan Waters of the Asset Forfeiture and Recovery Section are prosecuting this case. The Justice Department’s Office of International Affairs provided substantial assistance.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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.
5 Charged in Alleged $3.3 Million Scam to Obtain COVID Jobless Benefits for Unqualified Individuals, Including Children and InmatesRead the Press Release
LOS ANGELES – Five defendants – including a California Highway Patrol (CHP) dispatcher and her convicted-felon husband – have been taken into federal custody on a 10-count indictment alleging they fraudulently obtained more than $3.3 million in COVID-19 government unemployment benefits using stolen identities and personal identifiable information, the Justice Department announced today.
The following defendants were charged by a federal grand jury with one count of conspiracy to commit bank fraud:
- Janet Clarise Gloria Theus, 44, of Lancaster;
- Diane Clarise Theus, 78, of Lancaster, Janet Theus’ mother;
- Dailen Spears, 24, of Carson;
- Erica Abson Robins, 57, of Compton, a CHP dispatcher; and
- Ronald Lee Robins, 62, of Compton, Erica Robins’ husband, who was serving a state prison sentence for first-degree burglary during the alleged scheme.
Janet Theus also is charged with four counts of bank fraud. Diane Theus and Erica Abson Robins each have been charged with two counts of bank fraud. Janet Theus, Diane Theus, Erica Abson Robins, and Ronald Lee Robins are charged with one count of unlawful use of unauthorized access devices.
Janet Theus and Diane Theus surrendered to federal authorities today and are scheduled to be arraigned this afternoon in United States District Court in downtown Los Angeles.
Erica Abson Robins and Ronald Lee Robins were arrested Wednesday. Spears surrendered to federal authorities on Wednesday. All three of these defendants were arraigned and pleaded not guilty to all charges. An April 29 trial date was scheduled. Erica Robins and Spears were ordered released on $10,000 bond. A detention hearing was scheduled for March 11 for Ronald Robins, who remains in federal custody.
According to the indictment returned February 12 and unsealed today, the defendants from April 2020 to July 2022 executed a scheme to collect and share personal information, including names and Social Security numbers, from individuals to fraudulently receive COVID-19 unemployment cash benefits. After collecting this personal information, the defendants submitted fraudulent COVID-19 unemployment assistance applications, falsely claiming that the applicants had lost jobs because of the pandemic. Janet Theus, Diane Theus, and Erica Robins then withdrew cash at ATMs from the job-loss cash assistance accounts they conspired to create.
The indictment further alleges that, in total, defendants caused at least approximately 293 applications for unemployment benefits to be filed, resulting in payouts of approximately $3.3 million. Approximately 169 of the benefits applications the defendants caused to be filed were for children under the age of 18, approximately 106 of which were for children under the age of 10. The defendants also caused to be submitted at least 17 COVID-19 job-loss claims for individuals who were in fact incarcerated prisoners.
The indictment also alleges that Erica Robins used her position as a California Highway Patrol dispatcher to query a law enforcement database containing Social Security numbers and dates of birth regarding an inmate at the California Men’s Colony state prison in San Luis Obispo, which was then used to obtain COVID-19 job-loss cash benefits. At the time, Erica Robins’ husband, Ronald Robins, was an inmate at that same prison. While incarcerated, Robins collected Social Security numbers and dates of birth from other inmates, which Janet Theus and Diane Theus then used to withdraw COVID-19 job-loss cash benefits.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of all charges, the defendants would face a statutory maximum sentence of 30 years in federal prison for each bank fraud-related count. Janet Theus, Diane Theus, Erica Robins, and Ronald Robins would face up to 10 years in federal prison for unlawful use of unauthorized access devices.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
On September 15, 2022, the Attorney General selected the U.S. Attorney’s Offices for the Central and Eastern Districts of California to jointly head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. The Strike Force combines law enforcement and prosecutorial resources and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors, as well as those who committed multiple instances of pandemic relief fraud. The Strike Force uses prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds. Additional information regarding the Strike Force may be found at https://www.justice.gov/opa/pr/justice-department-announces-covid-19-fraud-strike-force-teams.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
A number of law enforcement agencies are providing significant support, including the U.S. Department of Labor Office of Inspector General; the United States Postal Inspection Service; the U.S. Department of Homeland Security Office of Inspector General; the U.S. Secret Service; the California Employment Development Department; California Department of Corrections and Rehabilitation; and the San Luis Obispo County District Attorney's Office.
Assistant United States Attorneys Diane B. Roldán and Matthew J. Tako of the General Crimes Section are prosecuting these cases.
Violent Recidivist Sentenced to More Than 4 Years in Federal Prison for Racially Motivated Attack on Asian American WomanRead the Press Release
LOS ANGELES – A Southern California man has been sentenced to 51 months in federal prison for punching an Asian American woman in the head while shouting racial slurs and then leaving her bloodied in a Culver City street in 2021, the Justice Department announced today.
Jesse Allen Lindsey, 38, who was transient at the time of the attack, was sentenced on Monday by United States District Judge Michael W. Fitzgerald.
Lindsey pleaded guilty in December 2024 to one count of a hate crime. He has been in federal custody since July 2024.
On June 14, 2021, at approximately 1 a.m., Lindsey began following the victim on her walk to work. According to the government’s sentencing position, Lindsey shouted racial slurs, cursed at the victim, and told her, “You don’t belong here.” He then violently punched her in the head. While the victim lay face down in the street, defendant shouted, “You hear what I said, [N-word]? I said good morning, bitch!”
Emergency personnel later transported the victim to a hospital to treat injuries to her head and ear. She was unable to work for a month and suffered years of psychological trauma, prosecutors said.
At sentencing, Judge Fitzgerald called the attack a “shocking and horrible crime” and noted Lindsey’s “serious criminal record.” Lindsey has 13 criminal convictions for firearms and narcotics offenses, domestic battery, grand theft, and attempted extortion. He also has at least 14 violations of probation or pretrial release and 19 additional arrests or contacts with law enforcement, the government said at Monday’s sentencing hearing.
Lindsey fled California after seeing news reports about the attack. Law enforcement officers eventually located Lindsey in a California state prison serving time for an unrelated conviction.
During an interview with law enforcement about the assault, Lindsey eventually admitted to punching the victim, but falsely claimed self-defense, the government’s sentencing position stated. Lindsey said the “little Asian person” was “mouthy” and looked like a “gangbanger.” Referencing the Asian actor known for his martial arts ability, Lindsey claimed the victim might pull “some Jet Li [expletive].” The victim was a middle-aged Asian woman who stood five feet tall and weighed approximately 120 pounds. Lindsey was over six feet tall and weighed approximately 250 pounds.
The FBI investigated this matter and received substantial assistance from the Culver City Police Department.
Assistant United States Attorney Lindsey Greer Dotson prosecuted this case.
Santa Maria Investment Advisor Pleads Guilty to Defrauding Elderly Clients Out of More Than $2 MillionRead the Press Release
LOS ANGELES – A Santa Barbara County investment advisor pleaded guilty today to stealing approximately $2.25 million from elderly clients of her investment advisory business – some of whom were receiving end-of-life care.
Julie Anne Darrah, 52, of Santa Maria, pleaded guilty to one count of wire fraud. She remains free on $50,000 bond.
Darrah ran a Santa Maria-based investment advisory business called Vivid Financial Management Inc. (VFM). At all relevant times, she was an investment advisor registered with the United States Securities and Exchange Commission (SEC), and, from 2015 to 2021, she was the president, chief compliance officer, and a one-third shareholder of VFM.
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.
“The defendant took advantage of her clients’ trust,” said Acting United States Attorney Joseph McNally. “Many of them were elderly and she stole from them using their funds as her own. Our seniors should never have to question whether their money is safe. She will now be held accountable for her actions.”
United States District Judge Otis D. Wright II scheduled a May 19 sentencing hearing, at which time Darrah will face a statutory maximum sentence of 20 years in federal prison.
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 is prosecuting 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.
Prominent Los Angeles Tattoo Artist Pleads Guilty to Federal Tax ChargeRead the Press Release
LOS ANGELES – A prominent tattoo artist, once identified in the press as “Hollywood’s Go-To Tattoo Artist,” pleaded guilty today to filing false tax returns through which he evaded the payment of more than $641,000 in federal income tax.
Daniel Joseph Winter, 43, who uses the moniker “winterstone,” pleaded guilty to one count of subscription to a false tax return.
Winter operated his tattoo business in the Los Angeles area, New York and Vancouver, Canada, specializing in single-needle fine-line tattoos and catering to high-end clients. His tattoos were expensive, and he earned substantial income from his work as a tattoo artist and related endeavors.
According to his plea agreement, Winter earned at least $1.7 million from his tattoo business from 2021 to 2023. But he declared no wages, salaries or tip income on the tax returns he signed and filed with the IRS. For 2021, he reported taxable income of negative $3,442 instead of his actual taxable income of $501,710; for 2022, he reported taxable income of $1,105 instead of his actual taxable income of $347,159; and for 2023, he reported income of $14,852, instead of his actual taxable income of $850,447.
By underreporting his actual income in this way, Winter reduced the taxes he appeared to owe by more than $641,000. At today’s hearing, Winter presented a cashier’s check in the amount of $641,959 to the court to pay the taxes he owed due to the underreporting of his income for 2021 through 2023.
Winter also admitted in court today that he knew he was required to report all his income but willfully lied about it on his tax returns. He accepted payment for his tattoo services almost exclusively in cash, making it harder for the IRS to determine his true income.
United States District Judge Otis D. Wright II scheduled an August 11 sentencing hearing, at which time Winter will face a statutory maximum sentence of three years in federal prison.
Assistant United States Attorney Ranee Katzenstein of the Criminal Appeals Section is prosecuting this case.
Hollywood Woman Found Guilty of Running Tech-Savvy Drug Delivery Business that Caused Three Near-Fatal Fentanyl OverdosesRead the Press Release
LOS ANGELES – A Hollywood woman was found guilty by a jury today of running a tech-savvy drug delivery business that employed drivers – including a part-time actor – and resulted in three near-fatal fentanyl overdoses.
Mirela Todorova, 36, a.k.a. “Mimi,” was found guilty of one count of conspiracy to distribute controlled substances resulting in serious bodily injury, one count of distribution of fentanyl, three counts of distribution of fentanyl resulting in serious bodily injury, one count of possession with intent to distribute methamphetamine, one count of possession with intent to distribute cocaine, one count of possession with intent to distribute MDMA (Ecstasy), and one count of making false statements to federal investigators.
The jury also found that Todorova must forfeit $498,555 in drug proceeds to the government.
“This defendant used her knowledge of technology to peddle the poison of fentanyl – despite knowing the pills she sold ran the risk of killing people,” said Acting United States Attorney Joseph McNally. “Investigating and prosecuting these cases saves lives. I commend our local and federal partners for stopping this dangerous criminal organization and bringing justice to the victims here.”
“This case highlights the importance of looking at every overdose incident,” said Matthew Allen, Special Agent in Charge of the Drug Enforcement Administration’s Los Angeles Field Division. “This case started with a single overdose and led to the identification of the dealer responsible for multiple overdoses. This drug distributor had knowledge of the harm she was creating and didn’t care.”
According to evidence presented at a nine-day trial, Todorova from June 2020 to March 2021 orchestrated a technology-savvy drug trafficking operation in which she provided cellphones and narcotics – including counterfeit oxycodone pills that contained fentanyl – to drivers to facilitate the delivery of drugs to customers across Los Angeles County and elsewhere. Todorova – who is a citizen of the United States, Canada, and Bulgaria – also delivered drugs herself.
Several times throughout the drug trafficking conspiracy, Todorova visited Mexico, where she continued to manage her drug operation while tending to her pet jaguar, “Princess.”
To carry out the scheme, Todorova hired Mucktarr Kather Sei, 39, of Koreatown, as a driver and, later, gave him the keys to her Hollywood drug stash house, allowing him to run the drug ring’s operations while continuing to direct him from abroad.
Despite warnings from customers that the oxycodone pills she was selling were laced with fentanyl and potentially fatal, Todorova continued to sell them. From November 2020 to January 2021, three customers of Todorova’s drug ring suffered near-fatal overdoses of fentanyl-laced oxycodone pills. Despite knowing their danger, Todorova continued to sell these fentanyl-laced pills until February 2021.
In March 2021, law enforcement executed search warrants on Todorova’s person, car, and home, seizing numerous drug trafficking materials and narcotics, including lab-confirmed methamphetamine, cocaine, and MDMA, as a well as a single purported oxycodone pill laced with fentanyl.
In December 2021, Todorova knowingly made series of false statements to federal law enforcement official when she said she thought the drugs seized from her apartment were vitamins, she never instructed anyone how to package or make drugs, and she only met Sei twice.
United States District Judge André Birotte Jr. scheduled a September 12 sentencing hearing, at which time Todorova will face a mandatory minimum sentence of 20 years in federal prison and a statutory maximum sentence of life imprisonment. She has been in federal custody since April 2021.
Sei and two other defendants charged in this case – Christopher Y. Moreno Núñez, 29, of Pacific Palisades, and Ashley Alicia Nicole Johnson, 34, of Los Angeles – each pleaded guilty last year to felony narcotics distribution charges and will be sentenced in the coming months. Sei has been in federal custody since February 2022.
This case is the result of an investigation by the Los Angeles Police Department and the Drug Enforcement Administration’s Overdose Justice Task Force, which was created to address opioid-related deaths in the greater Los Angeles area, most of which are caused by the synthetic opioid fentanyl. Under the Overdose Justice program for the DEA’s Los Angeles Field Division, DEA agents collaborate with local law enforcement to analyze evidence to determine if there are circumstances that might lead to a federal criminal prosecution, and, if so, proactively target the drug trafficker.
Assistant United States Attorney Patrick Castañeda of the International Narcotics, Money Laundering, and Racketeering Section, Assistant United States Attorneys Jason C. Pang and Suria M. Bahadue of the General Crimes Section, and Assistant United States Attorney James E. Dochterman of the Asset Forfeiture and Recovery Section are prosecuting this case.
Ex-Girlfriend of Crypto ‘Godfather’ Agrees to Plead Guilty to Tax Charge for Failing to Report More Than $2.6 Million in Illicit IncomeRead the Press Release
LOS ANGELES – The former girlfriend of a cryptocurrency fraudster who dubbed himself “The Godfather” has agreed to plead guilty to a federal criminal tax charge for failing to report more than $2.6 million in ill-gotten gains she obtained via her then-boyfriend’s criminal activities, the Justice Department announced today.
Iris Ramaya Au, 35, of Irvine, is charged in a single-count information with subscribing to a false tax return.
Au has agreed to plead guilty to the felony charge and is expected to make her initial appearance in United States District Court in downtown Los Angeles in the coming days.
According to Au’s plea agreement, from 2020 to 2024, Iza committed a series of crimes, including fraudulently obtaining access to advertising accounts and lines of credit provided by Facebook Inc. and Meta Platforms Inc. and selling access to those accounts. Iza obtained millions of dollars of unreported income as a result of these schemes.
Separately, Iza engaged active Los Angeles County Sheriff’s Department (LASD) deputies to provide private security for him and caused the deputies, among other things, to obtain court-authorized search warrants and confidential law enforcement information targeting people with whom Iza had financial and personal disputes.
At Iza’s direction, Au created shell corporations and opened bank accounts in the names of those entities. She then used the illicit funds placed into those accounts to pay approximately $1 million to the deputies, mostly in cash, purchase or lease luxury real estate, cars, jewelry, and clothing, pay for recreational activity for Iza and herself valued at nearly $10 million, and acquire approximately $16 million in cryptocurrency for Iza.
Au admitted in her plea agreement that she transferred more than $2.6 million from these various accounts to her personal bank accounts during the period 2020 through 2023, income that she willfully failed to report to the IRS on her federal tax returns.
After pleading guilty, Au will face up to three years in federal prison.
On January 30, Iza appeared before a federal judge and pleaded guilty to a first superseding information charging him with conspiracy against rights, wire fraud, and tax evasion. His sentencing hearing is scheduled for June 16, at which time he will face up to 35 years in federal prison. Iza has been in federal custody since September 2024.
IRS Criminal Investigation and the FBI are investigating this matter.
Assistant United States Attorneys Daniel J. O’Brien and J. Jamari Buxton of the Public Corruption and Civil Rights Section, and Assistant United States Attorney Maxwell K. Coll of the Cyber and Intellectual Property Crimes Section are prosecuting this case.
Joseph Sanberg, Co-Founder of Aspiration Partners, Arrested for Conspiring to Defraud an Investment Fund of at Least $145 MillionRead the Press Release
SANTA ANA, California – Joseph Neal Sanberg, 45, of Orange, the co-founder and largest shareholder of the financial and sustainability services company Aspiration Partners, Inc., was arrested today on a federal criminal complaint alleging that he conspired to defraud two investor funds of at least $145 million.
Sanberg’s coconspirator, Ibrahim Ameen AlHusseini, 51, of Venice, pleaded guilty today to an information charging him with wire fraud for falsifying documents and information to assist Sanberg. According to his plea agreement, signed on February 7, 2025, and unsealed today, AlHusseini personally received approximately $12.3 million in payments from the scheme. AlHusseini is scheduled for sentencing on September 29, 2025.
Sanberg is scheduled to make his initial appearance this afternoon in United States District Court in Santa Ana. AlHusseini was arrested on a criminal complaint on October 7, 2024, and has been released on bond since November 13, 2024. That criminal complaint was previously dismissed against AlHusseini to facilitate his cooperation in the prosecution of others, including Sanberg.
“Our prosecutors and law enforcement partners have worked methodically to secure a guilty plea from one of the main offenders in this case and have now charged another member of the conspiracy,” said Acting United States Attorney Joseph McNally. “We will continue to ensure that markets and businesses receive an honest and level playing field in which to operate.”
According to the complaint against Sanberg and AlHusseini’s plea agreement, Sanberg obtained $145 million in loans secured by AlHusseini, who Sanberg knew did not have sufficient financial assets to cover those loans if Sanberg defaulted. Sanberg hid this fact from investors, then defaulted on the loans, which resulted in at least a $145 million in losses.
In January 2020, Sanberg began negotiating a $55 million loan from Investor Fund A to Sanberg, in which Sanberg pledged 10.3 million shares of Aspiration Partners stock as collateral. Because Aspiration Partners was a non-public company without a liquid market to sell its stock, Investor Fund A required Sanberg to find a buyer for the 10.3 million shares of Aspiration Partners stock as a hedge against the risk that the shares could not be sold on the open market.
To secure the $55 million loan, Sanberg recruited AlHusseini, who served on Aspiration Partners’ board of directors, to enter into a put option agreement with Investor Fund A that obligated AlHusseini to buy the 10.3 million shares of Aspiration Partners stock in the event of Sanberg’s default. A put option is an investment contract in which the option buyer has the right to require the option seller to buy an asset from the option buyer at a pre-determined price. Under the option, AlHusseini was obligated to purchase the 10.3 million shares in Aspiration Partners for $55 million from Investor Fund A.
Aware that AlHusseini lacked sufficient assets to cover the put option obligation, as required by the deal, Sanberg and AlHusseini hid that fact and lied to Investor Fund A, court documents state. Among other things, Sanberg and AlHusseini enlisted a graphic designer in Lebanon to create fake brokerage account and bank account statements that falsely inflated AlHusseini’s financial assets by between approximately $80 million and $200 million.
Unaware of the fraud, Investor Fund A extended the $55 million loan to Sanberg and purchased the put option from AlHusseini. AlHusseini received approximately $6 million of the $55 million loan at the time of the loan’s execution as consideration (also known as a “premium payment”) for guaranteeing Sanberg’s repayment of the loan.
Unsealed court documents also state that, in November 2021, Sanberg refinanced the $55 million loan against his 10.3 million shares of Aspiration Partners stock with Investor Fund B. Investor Fund B loaned $145 million to Sanberg against the same 10.3 million shares of stock as collateral. Investor Fund B and AlHusseini agreed to a new put option agreement in which AlHusseini was obligated to pay $65 million to Investor Fund B if Sanberg defaulted on the $145 million loan. The terms of the agreement required AlHusseini to have sufficient assets to pay $65 million in the event of Sanberg’s default.
Because AlHusseini lacked sufficient assets to cover his obligation, Sanberg and AlHusseini again submitted falsified brokerage account and bank account statements to Investor Fund B to secure the $145 million loan. AlHusseini received a premium payment of approximately $6.3 million as consideration for guaranteeing Sanberg’s repayment of the refinanced loan.
Sanberg thereafter defaulted on the $145 million loan in November 2022 and again in the spring of 2023. Investor Fund B exercised its put option requiring AlHusseini to buy the pledged shares of Aspiration Partners stock, which he has not done. As a result of Sanberg and AlHusseini’s fraud, Investor Fund B has suffered at least $145 million in losses.
Investor Fund A and Investor Fund B are investment funds that loaned investors’ capital to high-net-worth borrowers.
A criminal complaint contains allegations. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted of the charge in the complaint, Sanberg would face a maximum penalty of 20 years in prison. AlHusseini faces a maximum penalty of 20 years in prison.
The FBI and the United States Postal Inspection Service are investigating the case.
Assistant United States Attorneys Brett A. Sagel, Nisha Chandran, and Jenna Williams of the Corporate and Securities Fraud Strike Force, along with Theodore M. Kneller and Adam L.D. Stempel for the Fraud Section of the Justice Department’s Criminal Division, are prosecuting this case.
Guatemalan National Arrested on Indictment Charging Him with Leading One of the Largest Human Smuggling Rings in U.S.Read the Press Release
LOS ANGELES – An illegal immigrant from Guatemala has been arrested on a four-count indictment alleging he led one of the largest human smuggling organizations in the United States, a ring that smuggled approximately 20,000 illegal immigrants from Guatemala to destinations nationwide over a five-year span, holding some of them hostage in stash houses and ultimately resulting in the deaths of seven illegal immigrants – including a 4-year-old child – who were killed in a November 2023 car accident in Oklahoma, the Justice Department announced today.
Eduardo Domingo Renoj-Matul, 51, a.k.a. “Turko,” of the Westlake neighborhood near downtown Los Angeles, was arrested Friday morning along with his alleged right-hand man, Cristobal Mejia-Chaj, 49, also of the Westlake neighborhood. These defendants were arraigned Friday and ordered to stand trial on April 22. A federal magistrate judge also ordered them jailed without bond.
Renoj-Matul allegedly led one of the largest human smuggling organizations in the United States, moving approximately 20,000 illegal immigrants from 2019 through July 2024.
Also charged in the indictment are Helmer Obispo-Hernandez, 41, a.k.a. “Xavi,” a lieutenant in the criminal organization who is a fugitive, and Jose Paxtor-Oxlaj, 44, a driver for the smuggling organization who is incarcerated in Oklahoma in connection with the fatal November 2023 car accident.
All the defendants are Guatemalan nationals who are or were illegally living in the United States at the time of the alleged offenses.
All four defendants are charged with one count of conspiracy to bring aliens to the United States, transporting aliens in the United States, and harboring aliens in the United States for private financial gain and resulting in death.
Additionally, Renoj-Matul and Mejia-Chaj are charged with two counts of hostage taking. Obispo-Hernandez and Paxtor-Oxlaj also are charged with one count of transporting aliens in the United States for private financial gain and resulting in death.
A separate federal criminal complaint filed March 2 charges Obispo-Hernandez with threatening to cut off the heads of a Homeland Security Investigations Task Force Officer and members of his family. The threats were allegedly made Friday to the federal law enforcement office in the wake of search warrants being executed at Obispo-Hernandez’s residence.
“These smuggling organizations have no regard for human life and their conduct kills,” said Acting United States Attorney Joseph T. McNally. “Their members pose a danger to the public and law enforcement. We must vigorously enforce our immigration laws so that these organizations cannot operate. The indictment and arrests here have dismantled one of the country’s largest and most dangerous smuggling organizations. This work saves lives, and the members of the organization will now face significant consequences.”
“These arrests illuminate the dangers and victimization associated with aliens attempting to unlawfully enter our country,” said Homeland Security Investigations (HSI) Los Angeles Acting Special Agent in Charge John Pasciucco. “Every day, similar human smuggling organizations put profits ahead of the safety in these reckless and illegal endeavors. HSI Los Angeles and our partners are committed to continue identifying and dismantling these organizations so no further lives are lost and our borders are secure.”
According to the indictment returned on Tuesday and unsealed Friday, the Renoj-Matul transnational criminal organization operated for at least a dozen years and specialized in the smuggling of illegal immigrants from Guatemala to the United States, the transportation and movement of those illegal immigrants within the United States – especially between Phoenix and Los Angeles – and the harboring, concealing, and shielding of illegal immigrants within the United States.
Renoj-Matual was assisted by associates in Guatemala who solicited illegal immigrants to come to the United States, accepted payment of between $15,000 and $18,000 for each illegal immigrant smuggled into the United States, and coordinated the journey of the illegal immigrants from Guatemala to the United States.
Mexican smuggling organizations transported the immigrants through Mexico and across the U.S.-Mexico border in Arizona, where they were held them in stash houses and eventually picked up by Renoj-Matul’s lieutenants. The illegal immigrants then – for an additional fee – were transported and moved to various destinations in the United States, including Los Angeles. The immigrants who had not paid their fees were held hostage in a stash house in the Westlake neighborhood near downtown Los Angeles.
Renoj-Matul directed that the transportation of proceeds from human smuggling be transported from Los Angeles to Phoenix, where they were given to the Mexican smuggling organization to pay the expenses incurred by Renoj-Matul’s transnational criminal organization.
In November 2023, Paxtor-Oxlaj caused a car accident in Elk City, Oklahoma, while he was smuggling illegal immigrants from New York to Los Angeles. That car accident resulted in the deaths of seven people who were passengers in the vehicle he drove. Of the seven people killed, three were minors, including a 4-year-old child.
Paxtor-Oxlaj was arrested in connection with the accident and was charged in the Western District of Oklahoma with being an illegal alien found in the United States following removal. He previously had been removed from the U.S. to Guatemala in 2010 and did not have legal permission to re-enter the United States.
The indictment further alleges that, from April 2024 to July 2024, Renoj-Matul and Mejia-Chaj held hostage two victims – Guatemalan nationals smuggled into the United States – who had not paid smuggling fees. The defendants allegedly threatened to kill the victims until third parties paid for their release.
An indictment 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 would face a statutory maximum sentence of death or life imprisonment.
Also arrested Friday was Rolando Gomez-Gomez, a.k.a. “Chaka,” 39 of South Los Angeles, who is charged with one count of being an illegal alien found in the United States following removal, and Juan Lopez Garcia, a.k.a. “Boxer,” 41 of Downtown Los Angeles, who was arrested on a civil removal matter. Both defendants are alleged lieutenants in the Renoj-Matul transnational criminal organization.
HSI’s El Camino Real Financial Crimes Task Force, HSI’s Figueroa Initiative Gang and Human Trafficking Task Force, the United States Border Patrol and the Inglewood Police Department are investigating this matter.
Assistant United States Attorneys Shawn J. Nelson and Elia Herrera of the International Narcotics, Money Laundering, and Racketeering Section are prosecuting this case. Assistant United States Attorney Tara B. Vavere of the Asset Forfeiture and Recovery Section is handling the asset forfeiture portion of this case.
Gardena Man Sentenced to Nearly 3½ Years in Federal Prison for Assaulting a United States Postal Service EmployeeRead the Press Release
LOS ANGELES – A Gardena man was sentenced today to 41 months in federal prison for assaulting a United States Postal Service (USPS) employee last year.
John Leomen Ross, 40, was sentenced by United States District Judge Dale S. Fischer. Ross pleaded guilty in November 2024 to one count of assault on a federal employee resulting in bodily injury.
“The defendant here violently attacked a postal employee who was hard at work doing his job,” said Acting United States Attorney Joseph McNally. “We are grateful to our law enforcement partners for their work helping obtain a prison sentence for this defendant.”
“The U.S. Postal Inspection Service’s top priority is the safety of our postal employees,” said Matt Shields, Acting Inspector in Charge of the Los Angeles Division. “These dedicated letter carriers serve our communities daily, ensuring reliable mail delivery while facing various challenges on their routes. We remain committed to protecting the well-being of these carriers and holding accountable anyone who threatens their livelihood. No one should have to fear for their safety while performing their job.”
On February 21, 2024, the victim was delivering mail in Gardena when Ross approached and stopped the USPS employee. According to the victim, Ross yelled at him and was upset he didn’t get a package he felt he was supposed to have already received.
Ross asked the employee to deliver his mail to a particular Gardena residence where he was allegedly squatting.
Surveillance video from a home security system show the USPS employee turning away from Ross and attempting to walk away to continue his postal route. Without warning, Ross then hit the USPS employee on the back of the head, hit him in the eye, and then body slammed the USPS employee to the ground.
The United States Postal Inspection Service investigated this matter.
Assistant United States Attorney Joshua J. Lee of the General Crimes Section prosecuted this case.
Federal Prosecutors Charge 126 Previously Removed Illegal Aliens, Many with Felony Criminal Records, with Illegally Re-Entering the U.S.Read the Press Release
LOS ANGELES – Working with U.S. Immigration and Customs Enforcement and other federal law enforcement partners, federal prosecutors in recent weeks filed charges against 126 defendants who allegedly illegally re-entered the United States after being removed, the Justice Department announced today.
Many of the defendants charged in this operation were previously convicted of felony offenses before they were removed from the U.S., offenses that include manslaughter and crimes against children.
Filed as part of immigration enforcement activities across the region over the past week, the criminal cases charge each defendant with being an illegal alien found in the United States following a previous removal from the United States. The criminal complaints and indictments were filed in federal court in Los Angeles, Santa Ana, and Riverside. The recently filed illegal re-entry cases resulted in nearly three dozen arrests over the past week.
The crime of being found in the United States following removal carries a base sentence of up to two years in federal prison, defendants who were removed after being convicted of a felony face a maximum 10-year sentence, and defendants removed after being convicted of an aggravated felony face a maximum of 20 years in federal prison.
“The U.S. Attorney’s Office is enforcing long-standing immigration laws, and Illegal aliens who defy lawful removal orders by returning to this nation will be prosecuted,” said Acting United States Attorney Joseph T. McNally. “These charges promote respect for the immigration laws. The individuals charged over the past week include sex offenders, narcotics dealers, violent criminals, and others who pose a danger to the public.”
“This result represents a brand new, whole-of-government approach to immigration enforcement,” said Homeland Security Investigations (HSI) Los Angeles Acting Special Agent in Charge John Pasciucco. “Our primary goal, along with our federal law enforcement partners, is to ensure those who commit transnational crimes such as drug trafficking, financial fraud and child exploitation can no longer commit it in the U.S.”
Some of the recently filed cases are summarized below with information contained in court documents. Most of these defendants were arrested February 23. Each of these defendants are Mexican nationals.
- Ricardo Reynoso-Garcia, 59, of Arleta, was convicted in federal court of illegal reentry into the United States in September 2013 and sentenced to 46 months in prison. He was separately removed four other times between 1984 and 2018. Reynoso-Garcia was convicted in Los Angeles Superior Court of voluntary manslaughter in January 1995 and sentenced to 24 years in prison. He also was convicted in U.S. District Court of fraud and misuse of visas in April 2017 and sentenced to 18 months in prison.
- Oscar Parra-Reyes, 50, of El Monte, was removed four previous times between 1995 and 2006. He was convicted in Los Angeles Superior Court in February 1993 for sale/transportation of marijuana and sentenced to two years in prison. He subsequently was convicted in Los Angeles Superior Court of unlawful sexual intercourse with a minor, corporal injury to a child’s parent and being a felon in possession of a firearm.
- Luis Roberto Calderon Collantes, 52, of Rialto, was removed from the United States in August 2021 following his February 2017 conviction in San Bernardino County Superior Court for transporting methamphetamine, a felony offense for which he was sentenced to five years in California state prison. In March 2024, Collantes was found in the United States when FBI agents identified his fingerprints on a package of fentanyl they obtained through an undercover purchase on the dark web, a package investigators believe originated from his Rialto home.
- Valentin Vidal-Lopez, 35, of Granada Hills, was removed from the United States in April 2018. He was convicted of attempted murder in January 2011 in Los Angeles County Superior Court and was sentenced to 10 years in California state prison. According to court documents, immigration authorities were notified on January 26 that Vidal-Lopez was in the custody of the Ventura County Sheriff’s Office after his arrested on the charges of resisting, delaying or obstructing a peace officer, DUI alcohol, and possessing a forged driver’s license. At the time of his arrest, Vidal-Lopez allegedly ignored officer commands to step out of his vehicle and then began to drive away. Vidal-Lopez allegedly continued to ignore officer commands and verbally threatened to fight the officers. When taken into custody, Vidal-Lopez allegedly possessed a driver’s license and a Social Security card in other people’s names, along with a bogus lawful permanent resident card, commonly known as a “green card.”
- Erasmo Hermosillo-Martin, 69, of Inglewood, was removed from the United States to Mexico in March 1994. He was convicted of kidnapping and terrorist threats in May 1991 in Los Angeles County Superior Court and was sentenced to five years and eight months in California state prison. On January 14, law enforcement was notified via the HSI Tipline that Hermosillo-Martin had returned to the United States.
- Angel Navarro-Camarillo, 42, was removed from the United States four times between 2007 and 2021. He was convicted in Orange County Superior Court in August 2004 for lewd and lascivious acts upon a child under 14 and sentenced to five years’ probation and 202 days in jail. In October 2005, but his probation was revoked, and he was sentenced to three years in prison. Navarro-Camarillo was convicted in U.S. District Court in February 2019 for being an illegal alien found in the United States following removal and was sentenced to 46 months in prison.
- Isidro Jimenez-Ibanez, 51, of Coachella, was arrested February 24. Jimenez-Ibanez was removed in 1995 following a conviction for possession for sale of methamphetamine in Riverside County Superior Court. According to the criminal complaint, Jimenez-Ibanez returned to the United States and was convicted in 2023 of assault with a deadly weapon in Riverside County.
Criminal complaints and indictments contain allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The illegal re-entry cases filed as part of the past week’s immigration enforcement activities are being investigated by U.S. Immigration and Customs Enforcement and Homeland Security Investigations.
The FBI; the Drug Enforcement Administration; the United States Marshals Service; U.S. Customs and Border Protection; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the State Department’s Diplomatic Security Service provided substantial support during the enforcement activities this week.
The criminal cases are being prosecuted by Assistant United States Attorneys in the Domestic Security and Immigration Crimes Section and the General Crimes Section.
Justice Department Files Statement of Interest Supporting Access to Places of Worship in Connection with Pico-Robertson IncidentRead the Press Release
LOS ANGELES – The Department of Justice announced today that it has filed a statement of interest in federal court to promote the correct and uniform interpretation of federal law protecting access to places of religious worship. The case involves allegations that a violent mob used violence, intimidation, and threats to prevent congregants from accessing the Adas Torah Synagogue.
The statement of interest is part of the Department’s nationwide efforts to promote freedom of religious worship and combat antisemitism in all its forms.
“Members of our Jewish community should not have to think about their safety when they go to worship,” said Acting United States Attorney Joseph T. McNally. “We make clear today that federal law prohibits people from obstructing access to places of worship.”
“Every person should be free to worship and attend religious services without fear of violence, threats, or intimidation,” said Deputy Assistant Attorney General Mac Warner. “The Civil Rights Division is working vigorously to combat antisemitism using all of the tools at our disposal.”
The Department of Justice recently announced the formation of a multi-agency task force coordinated by the Civil Rights Division to combat antisemitism, which is visiting 10 university campuses that have experienced antisemitic events.
Private plaintiffs sued CodePink Women for Peace, CodePink Action Fund, WESPAC Foundation, Honor the Earth, Courtney Lenna Schirf, Remo Ibrahim, d/b/a Palestinian Youth Movement, and various unnamed individuals. These plaintiffs allege that on June 23, 2024, these organizations and individuals violated provisions of the Freedom of Access to Clinic Entrances Act (FACE Act) that protect access to places of religious worship.
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.
LA Woman Sentenced to 5 Years in Prison for $2.3 Million COVID Loan Scheme and Falsely Seeking Nearly $1.3 Million in Pandemic Tax CreditsRead the Press Release
LOS ANGELES – A woman from the Mid-City area of Los Angeles was sentenced to 60 months in federal prison for fraudulently obtaining more than $2 million in COVID-19 government loans and to submitting false claims in an unsuccessful effort to secure from the IRS nearly $1.3 million in pandemic-related tax credits, the Justice Department announced today.
Casie Hynes, 39, was sentenced late Thursday afternoon by United States District Judge Hernán D. Vera, who also ordered her to pay $2,376,168 in restitution.
In April 2024, Hynes pleaded guilty to one count of wire fraud and one count of false claims.
“The defendant exploited a crisis to line her own pockets, diverting vital relief funds from businesses that needed the money,” said Acting United States Attorney Joseph McNally. “The sentence imposed today sends a message to others that you will be held accountable if you steal government relief funds.”
From June 2020 to December 2021, Hynes submitted more than 80 fraudulent applications for Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL) from banks and the United States Small Business Administration (SBA) in the names of approximately 20 companies. Congress designed these programs to provide government relief to businesses during the COVID-19 pandemic.
Hynes submitted the bogus applications in the names of both existing and newly created companies, including Nasty Womxn Project and She Suite Collective and others purportedly owned by Hynes or her friends and family members. On those applications, Hynes often used the personal information and signatures of other people without their authorization and even though those people were not involved with the companies. Hynes also provided false information on the applications, including as to the number of purported employees at the companies, the companies’ average monthly payroll, and who purportedly owned and controlled these sham businesses. Hynes also submitted fabricated tax documents and bank statements in support of the fraudulent PPP and EIDL applications.
In reliance on Hynes’ fraudulent loan applications, banks and the SBA approved PPP and EIDL loans for the various companies she created and then disbursed the COVID-19 relief funds into bank accounts she controlled and used to pay for her own personal expenses.
Hynes admitted that she intended to cause approximately $3,174,323 in losses and she received approximately $2,255,244 in fraudulent proceeds from this scheme.
In a related scheme, Hynes used some of the same companies named in her PPP and EIDL fraud to submit bogus tax forms to the IRS, requesting refunds. Following COVID-19’s outbreak, Congress enacted laws authorizing the IRS to reduce the employment tax burdens of small businesses and reimburse those businesses for wages paid to employees who were on sick or family leave and could not work because of the pandemic. During the tax years 2020 and 2021, the IRS offered the Employee Retention Credit and paid sick and family leave credit to businesses that were significantly impacted by COVID-19.
From May 2021 to April 2022, Hynes caused to be submitted 12 tax forms that sought refunds based on false statements on behalf of Nasty Womxn Project LLC, She Suite Ventures, and Casie Hynes Consulting. Hynes knew these companies had little to no business operations, did not have the number of employees she claimed, and did not pay the quarterly wages she claimed in the tax forms.
Hynes fraudulently sought approximately $1,255,703 in COVID-19 tax credits and tax refunds through these false claims, none of which the IRS paid.
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 Justice Department in partnership with agencies across the federal government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international actors committing civil and criminal fraud and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.
Tips and complains from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint From at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Co-Leader of Transnational Drug Trafficking Organization Arrives in the U.S. to Face Federal Narcotics and Murder ChargesRead the Press Release
LOS ANGELES – An alleged leader of a transnational drug trafficking enterprise co-helmed by former Canadian Olympic snowboarder Ryan Wedding has been sent to the United States from Mexico to face federal charges alleging that he ran a continuing criminal enterprise, committed murder and attempted murder, and conspired to possess, distribute, and export cocaine, the Justice Department announced today.
Andrew Clark, 34, a Canadian citizen who was residing in Mexico, was arrested by Mexican authorities in October 2024 and is scheduled to be arraigned on Monday in United States District Court in Phoenix on charges contained in a 16-count superseding indictment out of the Central District of California. Alongside Wedding, Clark allegedly controlled a billion-dollar drug enterprise with supply routes that transported ton-quantities of cocaine from Colombia to Canada by way of Mexico and Southern California.
From March to August 2024, Wedding and Clark allegedly conspired with others to export, possess, and distribute more than 1,800 kilograms of cocaine. In addition, using a network of virtual currency wallets, Wedding, Clark, and their co-conspirators transferred approximately a quarter of a billion dollars from April to September 2024. In one day, investigators seized more than $3 million dollars from one cryptocurrency wallet.
“The defendant, as described in the superseding indictment, played a key role in running a violent, international drug trafficking organization that was responsible for multiple murders,” said Acting United States Attorney Joseph T. McNally. “We are grateful to have him in the United States where he will face justice. When law enforcement officials around the globe work together, there is nowhere criminals can hide.”
The superseding indictment alleges that Wedding and Clark, whose aliases include “The Dictator,” directed the November 20, 2023, murders of two individuals and the attempted murder of a third victim in Ontario, Canada. Wedding and Clark also allegedly ordered the murder of a fourth individual on May 18, 2024. Clark and another co-defendant are also charged with the April 1, 2024, murder of a fifth individual in Ontario, Canada.
Clark is the second-named defendant in the superseding indictment that charges a total of 16 defendants. With Clark’s expected court appearance, a total of eight defendants will have been arraigned in this case. Clark’s co-conspirators are scheduled to begin trial on May 6.
An indictment 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, Clark would face a mandatory minimum penalty of life in federal prison on the continuing criminal enterprise charge. The murder and attempted murder charges carry a mandatory minimum penalty of 20 years in federal prison. The drug trafficking charges carry mandatory minimum penalties of 10 years in prison.
The FBI investigated this matter with the Los Angeles Police Department, the Drug Enforcement Administration’s Los Angeles Field Division, and the Royal Canadian Mounted Police – Federal Policing. In addition, significant assistance was provided by U.S. law enforcement partners, including Homeland Security Investigations – Detroit and United States Customs and Border Protection – Buffalo; Canadian law enforcement partners, including Niagara Regional Police Service, Ontario Provincial Police, Toronto Police Service, and Peel Regional Police; Mexican law enforcement partners, including the Attorney General’s Office (Fiscalía General de la República) and the Criminal Investigation Agency (Agencia de Investigación Criminal); and Colombian law enforcement partners, including Colombian National Police – Directorate of Criminal Investigation and Interpol, Special Interagency Investigation Group (Policía Nacional de Colombia – Dirección de Investigación Criminal e Interpol, Grupo Especial de Investigación Interagenciales). This investigation was conducted with the support of the Organized Crime Drug Enforcement Task Force (OCDETF).
Assistant United States Attorneys Lyndsi Allsop and Maria Jhai of the Violent and Organized Crime Section and Ryan Waters of the Asset Forfeiture and Recovery Section are prosecuting this case. The Justice Department’s Office of International Affairs provided substantial assistance.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Central Coast Woman Arrested on Complaint Alleging She Created Hundreds of Bogus Medical Documents for Immigration ApplicantsRead the Press Release
LOS ANGELES – A San Luis Obispo County woman has been arrested on a federal criminal complaint alleging she created hundreds of fraudulent immigration documents by misusing physicians’ credentials to show compliance with medical examination requirements for immigrants to register for green cards or otherwise adjust their immigration status, the Justice Department announced today.
Chantelle Lavergne Woods, 54, of Nipomo, is charged with fraud and misuse of visas, permits, and other documents, a felony that carries a statutory maximum sentence of 10 years in federal prison.
Woods was arrested on Wednesday made her initial appearance Thursday in United States District Court and a federal magistrate judge ordered her released on $10,000 bond. Her arraignment is scheduled for March 25.
“The fraudulent conduct described in the criminal complaint undermined the integrity of our nation’s immigration system,” said Acting United States Attorney Joseph T. McNally. “We commend our law enforcement partners for putting a stop to it.”
United States Citizenship and Immigration Services (USCIS) requires the submission of a medical examination and vaccination record that assess several physical and mental health factors to determine an applicant’s legal status. Federal law requires licensed physicians – or “civil surgeons” – to perform these examinations.
According to an affidavit filed on February 18 with the complaint, from February 2021 to April 2024, Woods, while operating an Arroyo Grande medical clinic, created hundreds of fraudulent documents pertaining to medical examination and vaccination requirements for individuals seeking to register for a lawful permanent resident (LPR) card – commonly known as a “green card” – or otherwise adjust their immigration status.
Woods allegedly maintained a website that advertised itself as a “Medical Weight Loss and Immigration Services” clinic that, in part, purported to help applicants with immigration physicals. One of the doctors listed on that website as an “M.D. Board Certified Neurologist and Designated Civil Surgeon for USCIS” was in fact, according to the California Medical Board website, a pediatrician, not a neurologist.
She allegedly forged several doctors’ signatures – including one doctor who died before Woods prepared the fraudulent immigration forms.
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 Drug Enforcement Administration’s Ventura Resident Office Tactical Diversion Squad and USCIS Fraud Detection and National Security are investigating this matter.
Assistant United States Attorneys Elia Herrera of the International Narcotics, Money Laundering, and Racketeering Section and Mark Aveis of the Major Frauds Section are prosecuting this case.
Two Southern California Men Arrested on Indictment Alleging Scheme Targeting Elderly Victims and Causing $10 Million in LossesRead the Press Release
LOS ANGELES – Two men living in Southern California were arrested today for allegedly leading a complex money laundering scheme that targeted more than 100 victims, many of whom were targeted because they were elderly, and caused victims more than $10 million in losses.
Sylas Nyuydzene Verdzekov, 38, of Chino Hills, and Lovert Che, 44, of Lomita, were taken into federal custody today. A third defendant, Mustapha Nkachiwouo Selly Yamie, 29, of Inglewood, is being sought by law enforcement. Each defendant is charged with one count of conspiracy to commit money laundering.
Verdzekov and Che are expected to be arraigned this afternoon in United States District Court in downtown Los Angeles.
“As the indictment alleges, these defendants built a sophisticated fraud and money laundering scheme that targeted and preyed on our most vulnerable citizens. They not only stole the victims’ money, but robbed them of their security and trust,” said Acting United States Attorney Joseph T. McNally. “Let this serve as a clear message: If you defraud members of our community, especially the elderly, we will hold you accountable to the fullest extent of the law.”
“Financial fraud against our elder population has unfortunately lined the pockets of several transnational criminal organizations,” said HSI Los Angeles Acting Special Agent in Charge John Pasciucco. “HSI and our law enforcement partners remain committed to protecting our most vulnerable and ensuring the public is informed of the red flag indicators of elder fraud.”
According to the indictment, from at least November 2021 and continuing to the present, Verdzekov, Yamie, and Che, and their co-conspirators, created fake identification documents of fictitious people, including passports and driver’s licenses. Using these fake documents, the defendants and their co-conspirators created at least 36 shell companies in California, which conducted no legitimate business and were created solely to advance their crimes.
Verdzekov, Yamie, and Che, and their co-conspirators, opened at least 145 bank accounts and at least 32 private mailboxes across Southern California using the fake identities and sham businesses.
In one scheme specifically targeting elderly victims using phone calls and email pop-ups, the defendants and their co-conspirators posed as law enforcement personnel or employees with well-known companies attempting to help the victims maintain the security of their accounts. They then allegedly fabricated claims of victim bank accounts or payment accounts being compromised and needing to be resolved quickly.
The defendants and their co-conspirators convinced the victims of their purported authority through pictures of fake badges and fake job titles, then requested the victims’ personally identifiable information (PII) and bank account information. Victims were told they needed to move money from their corrupted accounts quickly to ensure they kept all their money, and to move it into accounts that Verdzekov, Yamie, and Che, and their co-conspirators, fraudulently opened and controlled. Victims typically moved money via electronic bank transfers, money orders, cashier’s checks, or personal checks into these fraudulent bank accounts or mailboxes.
The defendants and their co-conspirators then deposited the ill-gotten gains into the bank accounts they controlled with the intent of disguising the ownership and control of the funds. Verdzekov, Yamie, Che, and their co-conspirators then withdrew large cash amounts to use the stolen funds on personal expenses, including rental payments.
In a similar scam, the defendants and their co-conspirators allegedly posed as a real estate owner selling property. Using fake identification and credentials, the defendants deceived victims into believing that they were entering into a legitimate sale of the property and tricked the victims into wiring money or mailing a check to an account or mailbox the defendants and their co-conspirators controlled.
In total, Verdzekov, Yamie, and Che, and their co-conspirators, laundered at least $10 million in funds taken from at least 100 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, the defendants would face a statutory maximum sentence of 20 years in federal prison.
Homeland Security Investigations’ Document Benefit Fraud Task Force, the FBI’s Honolulu Field Office, the U.S. Department of State’s Diplomatic Security Service (DSS), and the United States Postal Inspection Service are investigating this matter. The investigation remains ongoing.
If you think you have been a victim of a scam, immediately contact your bank or financial institution to request a recall or reversal as well as a Hold Harmless Letter or Letter of Indemnity and contact local law enforcement. Additionally, file a detailed complaint with the Internet Crime Complaint Center at www.ic3.gov. The Internet Crime Complaint Center is run by the FBI and serves as the country’s hub for reporting cybercrime.
Assistant United States Attorneys Sarah S. Lee and Gregg E. Marmaro of the Major Frauds Section are prosecuting this case.
Inland Empire Man Pleads Guilty to Possessing Trade Secrets Belonging to U.S. Employer to Build Business with China CompanyRead the Press Release
LOS ANGELES – A San Bernardino County man pleaded guilty today to illegally possessing sensitive technologies that he downloaded from his Southern California-based employers and used them to market his own competing company to a China-based company.
Liming Li, 66, of Rancho Cucamonga, pleaded guilty to one count of possession of trade secrets.
“Protecting U.S. companies’ sensitive intellectual property is critical to our country’s success in a global economy,” said Acting United States Attorney Joseph T. McNally. “The defendant here stole intellectual property in order to benefit companies in China. Stealing proprietary information undermines our economic security and the U.S. Attorney’s Office will aggressively prosecute individuals that engage in this conduct.”
“Mr. Li’s greed allowed him to be used by a Chinese company without regard for the negative implications to the economy or national security of the United States,” said Akil Davis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The FBI is well-aware that China is actively seeking and stealing American intellectual property at a rapid pace and those who willingly hand it over, as Mr. Li has done and now acknowledged, will face serious consequences.”
According to his plea agreement, from 1996 to 2013, Li worked for a Southern California-based business identified in court documents as “U.S. Company #1,” which specialized in precision measuring instruments and metrological technology and equipment. The company designed and sold a range of products such as micrometers, calipers, coordinate measuring machines (CMMs), and optical measurement systems.
Li worked at U.S. Company #1 as a senior software engineer, then as a program manager. From 2013 to 2018, Li worked as chief technologist at a wholly-owned subsidiary of U.S. Company #1. During his employment at U.S. Company #1 and its subsidiary, Li worked on the development of the source code for one of the company’s software programs, which was considered its proprietary information.
In July 2013, Li signed an employee handbook and confidentiality agreement with U.S. Company #1 that required him to turn over all writings, records, files, technology, trade secrets or data containing any proprietary information belonging to the company. The agreement also prohibited Li from copying the company’s proprietary information without written permission.
Li admitted in his plea agreement that he occasionally downloaded the company’s proprietary information onto his personal devices without permission. Li failed to return all the proprietary information belonging to U.S. Company #1 after its subsidiary terminated him in January 2018.
In February 2018, Li operated a consulting company named JSL Innovations Inc. and in March 2020, he signed an employment agreement with Suzhou Universal Group Technology Co. Ltd., a China-based chain-and-bearing manufacturer. Li continued to work for Suzhou Universal until his arrest in May 2023. During this period, Li continued to knowingly possess U.S. Company #1’s proprietary information and – more than once – accessed this information without that company’s authorization.
Li admitted that he used the proprietary information for his own economic benefit and that it would injure U.S. Company #1’s interests.
United States District Judge John A. Kronstadt scheduled a May 8 sentencing hearing, at which time Li will face a statutory maximum sentence of 10 years in federal prison.
The FBI investigated this matter with substantial assistance from the Department of Commerce, Office of Export Enforcement, Bureau of Industry and Security.
The case against Li was brought under the auspices of the Disruptive Technology Strike Force, which is co-led by the Departments of Justice and Commerce. The Strike Force seeks to counter efforts by hostile nation-states to illicitly acquire sensitive U.S. technology to advance their authoritarian regimes and facilitate human rights abuses.
Assistant United States Attorney Aaron B. Frumkin of the Cyber and Intellectual Property Crimes Section, Solomon D. Kim of the Major Frauds Section, and David T. Ryan of the National Security Division are prosecuting this case.
Corona Man Who Sold Stan Lee Memorabilia Agrees to Plead Guilty to Tax Fraud of More Than $1.2 Million in IncomeRead the Press Release
LOS ANGELES – A Riverside County man has agreed to plead guilty to filing false income tax returns after selling Stan Lee-signed memorabilia and receiving more than $1.2 million in proceeds which he never reported to the IRS, the Justice Department announced today.
Mac Martin Anderson, 59, of Corona, has agreed to plead guilty to two counts of willfully subscribing to a false tax return, a felony that carries a statutory maximum sentence of three years in prison for each charge.
According to his plea agreement, from 2015 to 2018, Anderson had a personal relationship with Marvel Comics publisher Stan Lee and sold Marvel-related items bearing Lee’s autograph to various dealers, brokers and fans at comic conventions.
In exchange for selling these memorabilia, Anderson received payments from buyers, typically in the form of cash or checks. These payments were considered regular income by the IRS and should have been reported on Anderson’s income tax return each year that he received money.
For tax years 2015 through 2018, income from the sold memorabilia totaled $289,460, $452,269, $414,166, and $80,590, respectively. In total, Anderson admitted to profiting approximately $1,236,485 in reportable income from the memorabilia sales which resulted in him owing the IRS approximately $482,833.
As part of his plea agreement, Anderson agreed to pay restitution to the IRS of approximately $482,833.
IRS Criminal Investigation is investigating this matter.
Assistant United States Attorneys Mark Aveis of the Major Frauds Section and Sarah E. Spielberger of the Asset Forfeiture and Recovery Section are prosecuting this case.
Simi Valley Couple Arrested for Abusing Asylum-Seeking Immigrants, Operating Illegal “Work for Smuggling” SchemeRead the Press Release
LOS ANGELES – A Simi Valley couple were arrested today on charges that they abused asylum-seeking immigrants from Latin American countries by forcing them to do domestic labor around the house and hand over money they earned working outside the home.
Carolina Rojas, 50, and her husband Jairo John Gastelo, 45, were each charged with one count of conspiracy to commit forced labor and four counts of forced labor.
Rojas was separately charged with an additional four counts of trafficking with respect to forced labor, three counts of giving immigration documents to unauthorized persons, one count of encouraging and inducing illegal entry, and one count of witness tampering.
During initial appearances Wednesday afternoon in U.S. District Court in downtown Los Angeles, a federal magistrate judge ordered them detained and scheduled a trial for April 8.
“As described in the indictment, the defendants smuggled individuals into the United States and exploited them for their own financial gain,” said Acting United States Attorney Joseph McNally. “The enforcement of our immigration laws is critical to preventing forced labor and human trafficking. We will hold accountable those that violate these laws.”
“Today’s indictment shows the great lengths that the defendants went through to enrich themselves off smuggled aliens,” said HSI Los Angeles Special Agent in Charge Eddy Wang. “Labor trafficking continues to be an ongoing problem in our communities and HSI remains committed to holding traffickers accountable for their deplorable actions.”
According to the indictment, no later than November 2021 and continuing until at least March 2024, Rojas and Gastelo allegedly worked with each other and others to recruit foreign nationals from specifically Latin American countries to come to the United States for the purpose of providing forced labor upon arrival to their house in Simi Valley.
Rojas allegedly facilitated the foreign nationals’ entry into the United States by providing initial financial assistance and by making travel arrangements for each victim. Once successfully in the U.S., Rojas helped the victims get transportation to California and eventually to Rojas and Gastelo’s house in Simi Valley.
After arriving at the house, the defendants allegedly forced the victims to provide around-the-clock childcare for a child with special needs and perform other domestic labor. The victims received no pay for their services and were told by Rojas and Gastelo that their work was performed in exchange for rent at the home.
The defendants allegedly charged the foreign nationals a fee for being smuggled into the U.S. In some cases, Rojas connected victims with a nearby McDonald’s in Simi Valley where she had an arrangement with the manager to hire individuals she brought to work there. Rojas and Gastelo would then collect money from the victims’ jobs as repayment for their smuggling fee debt.
Before getting outside-the-house employment, Rojas allegedly helped procure fraudulent social security cards and permanent resident cards for the victims to use when seeking jobs. Rojas would then bring the victims to a check cashing company, where they could cash their checks in order to pay Rojas and Gastelo.
If convicted, Rojas and Gastelo face a statutory maximum of five years for conspiracy to commit forced labor and a statutory maximum of 20 years for each charge of forced labor.
Rojas faces an additional statutory maximum of 20 years for each charge of trafficking with respect to forced labor, a statutory maximum of 10 years for each charge of giving immigration documents to unauthorized persons, a statutory maximum of 10 years for encouraging and inducing illegal entry, and a statutory maximum of 20 years for witness tampering.
Indictments contain allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Homeland Security Investigations and Immigration and Customs Enforcement investigated this matter.
Assistant United States Attorneys K. Afia Bondero of the Major Frauds Section and Matt Coe-Odess of the General Crimes Section are prosecuting this case.
Russian National Charged in Federal Criminal Complaint Alleging He Bit and Injured Deportation Officer Who Arrested HimRead the Press Release
LOS ANGELES – A Russian national was charged today in a federal criminal complaint alleging he bit and injured an immigration officer who had detained and arrested him on Tuesday in downtown Los Angeles.
Maksim Zaitsev, 35, of Costa Mesa, is charged with assault on a federal employee resulting in bodily injury.
Zaitsev is expected to make his initial appearance today in United States District Court in downtown Los Angeles.
“The men and women of Immigration and Customs Enforcement are critical to protecting national security and public safety and upholding the rule law,” said Acting United States Attorney Joseph T. McNally. “As alleged in the felony criminal complaint, the defendant attacked a deportation officer. He will be held accountable for his actions.”
According to an affidavit filed with the complaint, on the morning of February 25, two Immigration and Customs Enforcement (ICE) officers announced themselves and arrested Zaitsev pursuant to an administrative arrest warrant issued by the U.S. Department of Homeland Security.
After handcuffing Zaitsev, the officers attempted to escort him to be processed. Zaitsev became agitated while the agents walked him through a hallway. Zaitsev then resisted. While the officers attempted to regain control of him, Zaitsev bit one officer on the left pinky finger. The bite broke skin, drew blood, and broke the finger.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted, Zaitsev would face a statutory maximum sentence of 20 years in federal prison.
The Department of Homeland Security’s Federal Protective Service is investigating this matter.
Assistant United States Attorney Joseph S. Guzman of the General Crimes Section is prosecuting this case.
Three Defendants Arrested on Federal Complaints Alleging They Knowingly Received More Than $13 Million in Scam Victims’ MoneyRead the Press Release
SANTA ANA, California – Three individuals, including two Chinese nationals, were arrested today on federal criminal complaints alleging they set up shell companies that laundered more than $13 million stolen from victims of investment scams known as “pig butchering.”
The following defendants were arrested this morning and are expected to make their initial appearances this afternoon in United States District Court in Santa Ana:
- Mingzhi Li, 24, a.k.a. “Zheng Lin,” of Downtown Los Angeles;
- Zeyue Jia, 23, a.k.a. “Jiao Jiao Liu,” also of Downtown Los Angeles; and
- Jun Shi, 55, of San Gabriel.
The defendants are charged with operating an unlicensed money transmitting business, a felony offense that carries a statutory maximum sentence of five years in federal prison.
Li and Jia are both Chinese citizens who entered the United States on student visas that have since expired; it is believed that they do not have lawful status in the United States.
A federal magistrate judge ordered Li and Jia jailed without bond. Shi was ordered released on $20,000 bond. The defendants’ arraignments are scheduled for March 17 in U.S. District Court in Los Angeles.
According to affidavits filed with the complaints, Shi established both Magic Location Trading LLC and Stone Water Trading LLC on December 7, 2022. Both companies listed the same address in downtown Los Angeles as being their base of operations.
Magic Location and Stone Water allegedly operated as money service businesses that were formed for the purpose of remitting funds on behalf of third-party customers to other entities. The defendants and the companies did so without registering with the Financial Crimes Enforcement Network (FinCEN) or the State of California, as required under federal law.
Shi and Li, using the alias “Zheng Lin,” opened U.S.-based bank accounts Magic Location, while Jia, using the alias “Jiao Jiao Liu,” opened U.S.-based bank accounts for Stone Water. Those accounts received funds from investment fraud victims. In total, law enforcement identified 242 wire transfers to Stone Water that were received from individuals – including identified crime victims – totaling approximately $7,618,982, and 60 wire transfers to Magic Trading totaling approximately $5,405,514, according to the complaint.
The defendants allegedly then transferred those funds to overseas bank accounts and other domestic businesses, transferred money to individuals, and used the ill-gotten gains for personal expenses.
The victims in this matter were attempting to fund what they believed to be investment accounts that they purportedly maintained on digital platforms such as websites or mobile applications. The victims’ investments including commodities such as gold contracts or virtual currency such as Bitcoin.
“Pig butchering” fraud schemes (a term derived from a foreign-language phrase used to describe these crimes) consist of scammers encountering victims on dating services or social media, or through unsolicited messages or calls, often masquerading as a wrong number. Scammers initiate relationships with victims and slowly gain their trust, eventually introducing the idea of making a business investment.
Victims are then directed to other members of the scheme operating fraudulent investment platforms and applications, where victims are persuaded to transfer money for the purpose of financial investments. Once funds are sent to scammer-controlled accounts, the purported investment platform often falsely shows significant gains on the purported investment, and the victims are thus induced to send more money for additional investments.
Ultimately, the victims are unable to recover their money, often resulting in significant losses for the victims.
For example, one victim – a 72-year-old Minnesota man – exchanged messages with a Chinese woman on the WhatsApp messaging application. She convinced him to invest in a digital platform called “Enkuu,” according to the complaints. In August 2023, the victim wired $75,000 to Stone Water and, the following month, wired $250,000 to Magic Trading for the purpose of investing in “Enkuu.” He later was unable to withdraw any of his money from “Enkuu.”
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 is investigating this matter.
Assistant United States Attorneys Kristin N. Spencer of the Orange County Office and Angela C. Makabali of the Cyber and Intellectual Property Crimes Section are prosecuting these cases.
Two Men and Woman Charged in Grand Jury Indictment Alleging Armed Robbery Spree of a Dozen Southern California BusinessesRead the Press Release
LOS ANGELES – A federal grand jury has returned a 12-count superseding indictment charging two San Fernando Valley residents and one Long Beach resident with committing armed robberies of smoke shops, donut shops, and convenience stores in Los Angeles and Orange counties during a two-week crime spree last year, the Justice Department announced today.
The following defendants were charged Wednesday by a federal grand jury with one count of conspiracy to commit interference with commerce by robbery (Hobbs Act), three counts of Hobbs Act robbery, and one count of attempted Hobbs Act robbery:
- Antonio Lamar Bland, 36, of North Hollywood;
- Ronnie Tucker, 23, of Long Beach; and
- Abigail Luckey, 49, of North Hollywood.
Bland and Tucker also have been charged with one count of Hobbs Act robbery and four counts of brandishing a firearm in furtherance of a crime of violence. Bland also is charged with one count of being a felon in possession of a firearm and one count of being a felon in possession of ammunition.
The defendants’ arraignment is expected in United States District Court in downtown Los Angeles in the coming weeks. There is a May 6 trial date scheduled in this case. All three defendants have been in federal custody since last year.
“Members of the community should not have to think about being subjected to violence when they walk into a convenience store or business. The defendants’ pattern of violent conduct described in the indictment put innocent lives at risk,” said Acting United States Attorney Joseph McNally. “Violent crime is a top priority for the US Attorney’s Office, and we are grateful for the teamwork of federal law enforcement and our local police departments to bring charges against these defendants.”
"Any time someone takes a gun into a place of business to rob it, victims are traumatized and there is a potential for tragic consequences," said Akil Davis, Assistant Director in Charge of the FBI Los Angeles Field Office. "If convicted, these individuals face significant prison time. Moreover, the FBI and our partners remain committed to pooling resources, intelligence, and skills that allow us to remain focused on one goal: keeping our communities safe."
“Investigators from the Burbank Police Department spent hundreds of hours investigating this robbery series,” said Burbank Police Chief Michael Albanese. “The Burbank Police Department is grateful for the assistance from our law enforcement partners and the United States Attorney’s Office for their work in holding these individuals accountable for their actions. Our community is safer because of it.”
According to the superseding indictment, from January 29, 2024, to February 14, 2024, Bland, Tucker, and Luckey robbed 12 businesses in Los Angeles and Orange counties: one smoke shop in Tustin, nine 7-Eleven stores in North Hollywood, Burbank, Torrance, Van Nuys, Long Beach, Glendale, and Pasadena, and two donut shops in Los Angeles and Downey.
These commercial robberies typically occurred late at night and usually involved Bland and Tucker who entered each business wearing hooded sweatshirts and face masks. In several of the robberies, a getaway driver, Luckey, waited outside for Bland and Tucker to complete the robbery and fled the scene in a white four-door sedan owned by Luckey when they returned to the vehicle.
In the midst of the 12 robberies, on February 6, 2024, Bland and Luckey drove to Las Vegas and were legally married before returning to Southern California for their next robbery on February 8, 2024.
The armed robbery spree ended after Bland, Tucker and Luckey committed an attempted robbery of a donut shop in Downey during the early morning hours of February 14, 2024, court records show.
Once the subjects entered the donut shop, one yelled, “Open the cash register!” The employee noticed that one of the subjects, believed to be Bland, had what appeared to be a handgun tucked into his front waistband with the handle visible. Fearing that the subjects were going to harm him, the employee ran toward the rear kitchen area from behind the main sales counter. The subjects jumped the counter in pursuit of him. The employee retrieved his own firearm to defend himself. To deter the suspects from attacking him, he fired at least one shot, hitting a wall of the building.
After the employee fired, Bland and Tucker ran out of the store. Law enforcement witnessed the attempted armed robbery and, shortly afterward, pulled over a car containing Bland, Tucker and Luckey, and later retrieved a firearm from the vehicle.
In February 2024, Bland allegedly illegally possessed a firearm and ammunition. He is not legally allowed to possess them because of previous felony convictions in Los Angeles Superior Court for carjacking and possession of drugs in prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of all charges, Bland, Tucker and Luckey would face a statutory maximum sentence of 20 years in federal prison for each Hobbs Act robbery-related count. Bland and Tucker would face a statutory minimum sentence of seven years in federal prison for each count of brandishing a firearm during a crime of violence. Bland would face up to 15 years in federal prison for each count of being a felon in possession of a firearm and being a felon in possession of ammunition.
The FBI and the Burbank Police Department are investigating this matter with assistance from the Tustin, Torrance, Long Beach, Glendale, Pasadena, Los Angeles, and Downey police departments.
Assistant United States Attorneys Diane Roldán of the General Crimes Section and J’me K. Forrest of the Violent and Organized Crime Section are prosecuting this case.
Palmdale Man Indicted for Allegedly Producing Sexually Explicit Material Featuring Teenage GirlsRead the Press Release
LOS ANGELES – A Palmdale man is scheduled to be arraigned today on a 12-count federal grand jury indictment alleging he coerced two minors into producing and sharing with him sexually explicit content of themselves and enticed one minor to have sex with him.
Darius Dasean Edwards, 21, of Palmdale, is charged with five counts of production of child pornography, five counts of receipt of child pornography, and two counts of enticement of a minor to engage in criminal sexual activity.
Edwards, who was employed by Palmdale’s Department of Parks and Recreation until his recent termination, was arrested this morning and is scheduled to be arraigned this afternoon in United States District Court in downtown Los Angeles.
According to the indictment, from October 2023 until December 2023, Edwards engaged in sexual conversations with a then 16-year-old girl and requested her to produce and share with him child sexual abuse material (CSAM) of herself. Edwards received at least one video from this victim depicting CSAM.
In March 2024, Edwards communicated with a then 15-year-old girl and requested that she produce and share with him CSAM of herself. Edwards received at least one photo and three videos from this victim depicting CSAM.
An indictment 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, Edwards would face a mandatory minimum sentence of five years in federal prison for each count of receipt of child pornography, a mandatory minimum sentence of 15 years in federal prison for each count of production of child pornography, and a mandatory minimum sentence of 10 years in federal prison and a statutory maximum of life in prison for each count of enticement of a minor to engage in criminal sexual activity.
The FBI is investigating this matter.
Assistant United States Attorney Lyndsi Allsop with the Violent and Organized Crime Section is prosecuting this case.