Eastern District of California
Press releases recorded for this federal judicial district.
Fresno County Men Indicted for Fentanyl Distribution ConspiracyRead the Press Release
FRESNO, Calif. — A six-count indictment was unsealed today, charging Fresno resident Austin Lloyd Kerns, 53, and Clovis resident Lakota Tehya Wakley, 21, with conspiring to distribute fentanyl. Kerns is also charged with fentanyl distribution and illegally possessing ammunition, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, from November 2024 until his arrest in December 2024, Kerns conspired with Wakley and others to sell fentanyl pills to customers in Fresno County. On Nov. 23 and 24, 2024, Kerns personally and repeatedly sold fentanyl to a victim that Wakley referred to Kerns for a fee. This victim died soon after of a fentanyl overdose. Upon arresting Kerns at his residence on Dec. 9, 2024, law enforcement seized around 1,000 fentanyl pills, hundreds of rounds of ammunition, and handgun parts.
This case is the product of an investigation by the Fentanyl Overdose Resolution Team (FORT), a multi-agency team composed of Department of Homeland Security Investigations, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Fresno and Clovis Police Departments. Assistant U.S. Attorney Calvin Lee is prosecuting the case.
If convicted, Kerns and Wakley face maximum penalties of 20 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Operation Synthetic Opioid Surge (S.O.S.) a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.
Former Fresno County Resident Charged with Managing a $10 Million Nationwide Real Estate Fraud Scheme from PrisonRead the Press Release
FRESNO, Calif. — Seth Adam Depiano, 43, formerly of Clovis, made an initial appearance for an indictment charging him with conspiracy to commit wire fraud, wire fraud, money laundering conspiracy, and aggravated identity theft, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, Depiano was sentenced in 2018 to more than 12 years in prison for running a $24 million fraud scheme in the Eastern District of California (Case No. 1:17-cr-172 DAD). In 2021 and 2022, while serving that sentence in federal prisons in the states of Mississippi, Oklahoma, and Florida, Depiano managed a complex real estate fraud scheme utilizing a group of co-conspirators located across the United States.
Using contraband phones and computers and acting under the fictitious identities “Marcus Lazaro” and “Steven Baron Sr.,” Depiano posed as a real estate broker who represented clients who wanted to sell property. In reality, Depiano was not a real estate broker, did not have clients, and instead marketed and sold properties he did not own and did not have the authority to sell.
Depiano utilized co-conspirators to meet with potential investors, to conduct financial transactions, and conduct other activities on his behalf. In total, Depiano and his co-conspirators obtained approximately $10 million from victims in California, Nevada and elsewhere. Once Depiano and his co-conspirators had received the victim funds, they laundered the money through Las Vegas casinos and other businesses. They also formed shell companies to purchase and hold real estate using victim funds, and wired victim funds overseas.
Once Depiano and his co-conspirators had received the victim funds, they laundered the money through Las Vegas casinos, using international wire transfers and shell companies, purchased properties, and invested in legitimate businesses.
This case is the product of an investigation by the IRS Criminal Investigation and the Bakersfield Police Department, with assistance from the Federal Bureau of Investigation and the Nevada Attorney General’s Office. Assistant U.S. Attorney Jeffrey A. Spivak is prosecuting the case.
Depiano is in custody. His next court date is July 16, 2025, at 1:00 pm before U.S. Magistrate Judge Sheila K. Oberto. Co-Defendants Zahria Barber, 28, of Las Vegas, Nevada, and Paola Quintero Beltran were also charged in the scheme. Barber and Beltran’s next court dates are July 16, 2025, before Judge Oberto.
If convicted, Depiano faces a maximum statutory penalty of 20 years in prison wire fraud and mail fraud. Depiano faces a mandatory minimum penalty of two years consecutive for aggravated identity theft. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Construction Company Employee Indicted for EmbezzlementRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 17-count indictment today against Kami Elois Power, 54, of Gardnerville, Nevada, charging her with wire fraud, bank fraud, and aggravated identity theft, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, from November 2019 to May 2023, Power worked as an office assistant at a family-owned construction company in South Lake Tahoe. During her employment, Power embezzled more than $1.4 million dollars from the company. She disguised more than $700,000 of these fraudulent transfers as payments made to vendors that the company worked with — under fake profiles she created in the names of real companies, as well as fake companies that resembled her own initials, such as “KEP Inc. Sale” and KPI.” She disguised additional fraudulent transfers as payments for payroll or reimbursements. Power also used the company’s credit card to make unauthorized personal purchases and paid down the balance of her own personal credit cards with the company’s money. Power used the stolen money to purchase property, luxury cars, ATVs, and a horse.
This case is the product of an investigation by the Federal Bureau of Investigation and the South Lake Tahoe Police Department. Assistant U.S. Attorneys Elliot C. Wong and Whitnee Goins are prosecuting the case.
If convicted, Power faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count of wire fraud, 30 years in prison and a $1 million fine for each count of bank fraud, and a mandatory two-year sentence for aggravated identity theft. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Sacramento Man Sentenced to 30 Years in Prison for Sexual Exploitation of a ChildRead the Press Release
SACRAMENTO, Calif. — Michael Buchno-Factor, 36, of Sacramento, was sentenced Tuesday by U.S. District Judge Kimberly J. Mueller to 30 years in prison to be followed by a life-term of supervised release, and ordered to pay $29,000 in restitution, for sexual exploitation of a child, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, Buchno-Factor had a prior conviction relating to abusive sexual contact with a minor. While on parole, parole agents seized cellphones from Buchno-Factor, and he admitted that he used encrypted messaging and social media. A further parole search found child sexual abuse material (CSAM) on his cellphones, and images of a minor girl in a foreign country, as well as messages asking for images of the minor victim engaged in sexually explicit conduct. Additional investigation established that Buchno-Factor was distributing CSAM, including images of the minor victim.
This case was the product of an investigation by the Sacramento County Sheriff’s Office, the Internet Crimes against Children Task Force, and Homeland Security Investigations. Assistant U.S. Attorney Roger Yang prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Justice Department Sues Stockton-based Nurse Practitioner to Stop Her Sale of Illegal Opioid PrescriptionsRead the Press Release
rubinger_complaint.pdfSACRAMENTO, Calif. — The United States has filed a civil complaint against nurse practitioner Joan Rubinger, registered in Stockton, that alleges a long-running nationwide scheme to sell illegal opioid prescriptions for cash, Acting U.S. Attorney Michele Beckwith announced today.
The lawsuit asks the Court to prohibit Rubinger from prescribing controlled substances and to impose civil penalties on Rubinger for her conduct in providing more than 900 illegitimate prescriptions to customers around the country.
According to court documents, between Nov. 1, 2019, and June 17, 2024, Rubinger traveled from city to city, providing a range of services from intravenous flushes to prescriptions for controlled substances. Her unorthodox practice consisted of her, a personal assistant, and a person who managed billing. No licensed physician supervises Rubinger, and no licensed physician is associated with, or employed by, her practice. She usually met customers in non-medical environments, such as hotel rooms, without access to necessary diagnostic tools, proper medical records, or any other infrastructure required to treat chronic pain.
According to the complaint, Rubinger sold opioid prescriptions to her customers for cash, often during brief text message conversations over the encrypted messaging application Telegram. The complaint alleges that Rubinger provided her customers with price lists that invited them to select their own prescriptions from a menu of highly addictive drugs intended to treat a wide variety of medical conditions, including Oxycodone, Percocet, Xanax, and Adderall, some of which can be dangerous in combination. Once customers paid Rubinger, she allegedly issued the requested prescriptions without conducting any examination or creating any medical records. The complaint further alleges that, to conceal the excessive quantities of drugs that she prescribed to her customers, Rubinger wrote prescriptions in the names of the customers’ friends and family members, many of whom did not consent to participate in Rubinger’s scheme, which allowed the customers to obtain opioids under false names. Many of Rubinger’s customers allegedly abused the drugs or resold them on the street.
According to court documents, Rubinger knew her conduct was illegal and gave her customers specific instructions that she told them would “make sure each patient appears as a legitimate medical patient.” In a document that she titled “THE RULES,” Rubinger explained to new customers the steps they had to take “to minimize the attention we attract from the DEA.” Among other things, Rubinger told customers they were required to pay her for prescriptions in advance because “just like at McDonald’s, you gotta pay for your burger before they hand it to you.”
The investigation and litigation of this matter illustrates the government’s continued emphasis on combating opioid abuse. Tips and complaints from all sources can be reported to the DEA at 1-877-792-2873 or https://www.dea.gov/submit-tip.
Assistant U.S. Attorney Steven Tennyson is litigating the case. The investigation was conducted by the Drug Enforcement Administration.
The complaint contains allegations only, and there has been no determination of liability. The case is United States v. Rubinger, 2:25-cv-00091-DAD-JDP (E.D. Cal.).
Fentanyl “M30 King of Fresno” Sentenced to 23 Years in PrisonRead the Press Release
FRESNO, Calif. — Horacio Torrecillas Urias Jr., 24, of Fresno, was sentenced today to 23 years and one month in prison for distribution of fentanyl and conspiracy to distribute and possess with intent to distribute methamphetamine and fentanyl, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, the investigation began after a series of fentanyl-pill overdoses in the Fresno area. These overdoses were caused by counterfeit oxycodone M30 tablets containing fentanyl, referred to on the street as M30s. The investigation, dubbed “Operation Killer High,” targeted the drug dealers believed to have supplied the toxic pills that caused the spike in fentanyl-related overdoses. The operation uncovered a large drug-trafficking ring led by Torrecillas Urias, the self-proclaimed “M30 king of Fresno.”
Torrecillas Urias was obtaining, directly from sources in Mexico, tens of thousands of counterfeit M30 fentanyl pills and large quantities of fentanyl powder, cocaine, and methamphetamine. He and his co-defendants were then distributing these illicit drugs to dealers inside and outside of California. During the investigation, federal, state, and local law enforcement agents conducted traffic stops, intercepted packages, and executed residential search warrants that resulted in the recovery of over 55,000 fentanyl pills, 6 pounds of fentanyl powder, 10 pounds of methamphetamine, a pound of cocaine, 25 firearms, and hundreds of rounds of ammunition.
Operation Killer High resulted in three federal cases charging a total of 20 defendants. All but one pleaded guilty. The remaining defendant, Alma Garza, was found guilty in September 2024, after a four-day jury trial. She is set for sentencing on Feb. 24, 2025.
This case is the result of an investigation by the Fentanyl Overdose Resolution Team (a multi-agency team composed of Homeland Security Investigations, the Drug Enforcement Administration, and the Fresno Police Department), the U.S. Postal Inspection Service, the Clovis Police Department, the Fresno County Sheriff’s Office, and the Fresno County District Attorney’s Office, with assistance from the Bakersfield Police Department and the California Highway Patrol. Assistant U.S. Attorney Justin J. Gilio is prosecuting the case.
This case is part of Operation Synthetic Opioid Surge (S.O.S.) a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.
Bakersfield Man Pleads Guilty to Receiving and Distributing Child PornographyRead the Press Release
FRESNO, Calif. — Roman Rodriguez, 26, of Bakersfield, pleaded guilty today to receipt and distribution of child pornography, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, between Feb. 18, 2024, and Feb. 22, 2024, Rodriguez used an iPhone and the internet to receive and distribute more than 600 images containing visual depictions of children engaged in sexually explicit conduct. The images included depictions of the sexual exploitation of prepubescent minors and at least one toddler.
This case is the product of an investigation by Homeland Security Investigations, the U.S. Secret Service, the Central California Internet Crimes Against Children Task Force, and the Bakersfield Police Department. Assistant U.S. Attorney Brittany M. Gunter is prosecuting the case.
Rodriguez is scheduled to be sentenced on March 31, 2025, before U.S. District Judge Jennifer L. Thurston. Rodriguez faces a mandatory minimum penalty of five years in prison and a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Sacramento Man Sentenced to 14 Years in Prison for Methamphetamine TraffickingRead the Press Release
SACRAMENTO, Calif. — Anthony Coates, 29, of Sacramento, was sentenced Tuesday by U.S. District Judge John A. Mendez to 14 years in prison for distribution of methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Coates sold 1 pound of methamphetamine in March 2024 and 3 pounds of methamphetamine in April 2024 to an undercover agent. He also distributed methamphetamine and counterfeit Xanax and Adderall pills on additional occasions in 2023 and 2024.
This case was the product of an investigation by the Drug Enforcement Administration and the U.S. Postal Inspection Service with assistance from members of the Central Valley High-Intensity Drug-Trafficking Area Task Force and the Citrus Heights Police Department. Assistant U.S. Attorney Haddy Abouzeid prosecuted the case.
United States Attorney Talbert Announces His ResignationRead the Press Release
SACRAMENTO, Calif. — U.S. Attorney Phillip A. Talbert has announced his resignation effective midnight on Jan. 11, 2025. Talbert has served as the Presidentially appointed U.S. Attorney for the Eastern District of California for two and a half years.
“It has been the honor of my lifetime to serve as the United States Attorney for the Eastern District of California, the district where I served as a federal prosecutor for two decades,” said Talbert. “I thank President Biden for nominating me to the position and am grateful to the late Senator Dianne Feinstein, Senator Alex Padilla, and Attorney General Merrick Garland for their support and confidence in me to lead this office of dedicated public servants. It has been a privilege to work alongside the talented attorneys and staff of this office as well as with our federal, state, and local law enforcement partners to protect the over 8 million residents who live in our district, to seek justice on behalf of victims, to safeguard civil rights, and to uphold the rule of law. After my departure, I am confident the office will continue to perform at a high level of excellence and will continue to demonstrate its commitment to pursuing justice in a fair, ethical, and nonpartisan manner, with a clear understanding of the need to maintain the public’s confidence and trust.”
The United States Attorney serves as the chief federal law enforcement officer and is responsible for prosecuting federal criminal cases and representing the United States in civil litigation. The Eastern District covers 34 counties throughout the Central Valley and the Sierras and has almost 100 attorneys and almost 100 non-attorney staff with offices in Sacramento, Fresno, and Bakersfield.
Upon Mr. Talbert’s resignation, Michele M. Beckwith will become the Acting U.S. Attorney for the Eastern District of California pursuant to the Vacancies Reform Act. Ms. Beckwith is a veteran federal prosecutor who served as First Assistant U.S. Attorney to Mr. Talbert and earlier as Executive Assistant U.S. Attorney and Criminal Chief.
U.S. Attorney Talbert has served the Department of Justice for more than 31 years, and over the last 14 years he has made a lasting mark on the Eastern District of California through his steady, team-oriented, and innovative leadership. He first assumed the role of First Assistant U.S. Attorney in the office in 2011, and later led the office for almost two years in 2016-2017 as the Acting and Interim U.S. Attorney. He returned to the First Assistant U.S. Attorney position in 2017, and then again led the office as the Acting and Interim U.S. Attorney in 2021-2022 before being confirmed as the Presidentially appointed U.S. Attorney in June 2022. His stalwart leadership throughout changes in Administrations and within the U.S. Attorney’s Office embodies the office’s commitment to excellence and its enforcement of federal law without bias and unaffected by partisanship.
At the national level, Mr. Talbert also served the U.S. Department of Justice through multiple subcommittees and working groups, including the Civil Rights Subcommittee and its Hate Crimes Working Group, the Controlled Substances Subcommittee and its Prevention Working Group, the Office of Management and Budget Subcommittee, and the Resource Allocation Working Group.
Previously, Mr. Talbert served as an Assistant U.S. Attorney in this district, first in the Narcotics and Violent Crime Unit in Sacramento where he prosecuted drug trafficking cases and then as the Chief of Appeals and Training in which he supervised the office’s appellate practice and trained incoming Criminal Division Assistant U.S. Attorneys. Mr. Talbert also taught professional responsibility for four years as an adjunct professor at the U.C. Davis School of Law.
Prior to joining the U.S. Attorney’s Office, Mr. Talbert worked as a Trial Attorney in the Criminal Division of the U.S. Department of Justice in Washington, D.C. after being hired in the Attorney General’s Honors Program; as an attorney at the law firm of Stoel Rives LLP in Seattle, Washington, in the firm’s Litigation Department and White Collar Defense Practice Group; and as an Assistant Counsel and Associate Counsel at the Office of Professional Responsibility of the U.S. Department of Justice where he investigated claims of prosecutorial misconduct and other allegations made against Department of Justice attorneys. He also served as a law clerk to the Honorable David R. Thompson (deceased), Circuit Judge, United States Court of Appeals for the Ninth Circuit.
Mr. Talbert received his Bachelor of Arts, magna cum laude in Economics, from Harvard University; his Master of Economics from the University of Sydney, Australia, which he attended on a Rotary Foundation Scholarship; and his Juris Doctor from the UCLA School of Law where he was the Chief Articles Editor for the UCLA Law Review.
Notable criminal cases the office has handled under U.S. Attorney Talbert’s leadership include:
- Criminal prosecutions of major frauds, including cases against the two co-founders and co-CEOs of Bitwise Industries, who received 11-year and 9-year sentences for a $115 million fraud centered on a failed Fresno-based tech startup; a former congressman charged with fraud in conducting his private business dealings; the owner of a chain of supermarkets who allegedly employed undocumented workers then used their immigration status to avoid paying for overtime; and a former local water district manager convicted of a long-running scheme to divert and sell managed water.
- Investigations and cases undertaken in concert with federal, state, and local law enforcement partners to reduce violent crime, including prosecution of MS-13 and Aryan Brotherhood defendants who committed and directed murders, other violent crimes, and drug trafficking crimes, and the prosecution of illegal firearms trafficking schemes, including a ring alleged to have illegally brought over 500 guns from Georgia to the Eastern District of California and another unrelated scheme that allegedly resulted in the sale of over 100 guns used in crimes across California and neighboring states.
- Cases targeting individuals who prey upon and sexually exploit children, including multiple defendants who extorted minors online for child sexual abuse material, multiple defendants who used hidden recording devices to surreptitiously film children in various stages of undress, and a defendant sentenced to 30 years for the sex trafficking of a minor.
- The indictment of two individuals, leaders of the Terrorgram Collective, for allegedly soliciting over Telegram the murder of federal officials and mass hate crimes as well as other federal crimes.
- The investigation and indictment of individuals operating major drug trafficking organizations in and through the district, including one case that led to seizures of 12,900 pounds of methamphetamine, 23 kilograms of fentanyl, and 35 firearms, and another case involving counterfeit pills containing fentanyl trafficked by a defendant who called himself the “M30 king of Fresno.”
- Cases targeting individuals who defrauded the state and federal government out of millions of dollars of pandemic relief funds intended for people and companies legitimately needing the assistance, including a former gang member serving a life sentence for murder in state prison who allegedly attempted a $550 million COVID relief tax credit fraud scheme while he was simultaneously directing a methamphetamine trafficking organization operating outside of prison walls.
- Cases protecting the environment, including the indictment of a group of defendants who allegedly conspired to create, distribute, and use a sophisticated software system to obtain passing smog check tests for vehicles that would otherwise fail, in violation of the Clean Air Act, and cases against others who distributed defeat devices that unlawfully interfered with the emissions control systems in trucks.
- The indictment of eleven “burglary tourists” alleged to have used blowtorches and cellphone jammers to commit a string of bank robberies in multiple states.
- Criminal prosecutions of law enforcement officers violating victims’ civil rights while acting under color of law, including a state prison guard who assaulted two inmates, resulting in one’s death, and later with fellow officers engaged in an attempted coverup, and a police officer alleged to have abused his official position to sexually assault women.
- Cases against perpetrators of violent crimes, including sexual assaults, in Yosemite National Park.
- Prosecution and conviction of 20 individuals in a series of cases involving corruption at the California Department of Motor Vehicles.
Notable civil cases the office has handled under U.S. Attorney Talbert’s leadership include:
- Multiple cases of health care fraud, including the following: Health Net Federal Services paid more than $97 million for overstated billings to the Veteran’s Administration; Nor-Cal Pharmacies Inc. was shut down and ordered to pay $1 million for dispensing oxycodone and hydrocodone based on invalid prescriptions; Oroville Hospital is to pay $10.25 million for paying kickbacks to physicians in order to increase hospital admissions and admitting patients for whom they knew inpatient care was not medically necessary; and Dr. Francis Lagattuta and his clinic agreed to pay $11.4 million for billing for allegedly medically unnecessary skin biopsies, spinal cord stimulation surgeries, and urine drug testing.
- Recoveries for damage to federal lands based on negligently caused forest fires, including a $117 million payment by PG&E relating to the 2018 Camp Fire.
- Multiple civil settlements for fraud in COVID relief programs.
- A case resulting in a $3.1 million settlement for the manufacture and sale of illegal devices to circumvent emission control systems of diesel trucks.
- The opening of a civil rights investigation with the Civil Rights Division into allegations of sexual abuse of inmates by staff at California’s largest women’s prison.
Throughout his time in the office, Mr. Talbert participated in and supported the development of the office’s community outreach program, especially in the area of interfaith outreach, working to build strong community bonds among various groups and between those groups and law enforcement. He launched the Fresno Area Hate Crimes Task Force, modeled on the successful Sacramento Area Hate Crimes Task Force which he also led, and he worked to increase the public’s awareness of the threat and impact of hate crimes, the importance of reporting them to law enforcement, and the need for different parts of the community and law enforcement to stand up to acts of hate together. Within the federal court family, he ensured that the U.S. Attorney’s Office took a leadership role through its innovative Special Emphasis Program to raise awareness of issues impacting all parts of the community and to further develop leadership opportunities for women lawyers. He also helped create the Sacramento Region Diversity Career Fair, the first legal career fair in the area connecting diverse law students and newer lawyers with prospective employers, and he helped establish the fair as an annual event for three years running.
Galt Big Game Hunter Pleads Guilty to Conspiring to Smuggle an Endangered Ladakh Urial Trophy into the United StatesRead the Press Release
SACRAMENTO, Calif. — Jason Keith Bruce, 51, of Galt pleaded guilty today to conspiring to smuggle an endangered Ladakh urial trophy into the United States, United States Attorney Phillip A. Talbert announced.
The Ladakh urial is an endangered species of wild sheep that lives in the mountains of Ladakh, a region of India and Pakistan.
According to court documents, Bruce was a recreational big game hunter and co-defendant Pir Danish Ali 45, of Pakistan, was the CEO of a hunting outfitter and guide company based in Pakistan. Bruce hunted as a client of Pir’s company, and they conspired to hunt an endangered Ladakh urial in Pakistan. Bruce and Pir then conspired to smuggle the resulting trophy into the United States in 2018 by declaring it as a different species to Customs and Border Protection and the U.S. Fish and Wildlife Service, and by presenting forged documents purporting to be issued by Pakistani authorities. After the U.S. Fish and Wildlife Service detained the trophy, Bruce and Pir agreed with each other to lie and did in fact lie to the U.S. Fish and Wildlife Service. Further investigation revealed that numerous other documents presented by hunters who had hunted with Pir’s company to import trophies into the United States were also forged. The U.S. Fish and Wildlife Service has identified at least 97 trophies brought into the United States pursuant to fraudulent documents by at least 25 hunters who all hunted with Pir’s company between 2013 and 2018.
This case was the product of an investigation by the U.S. Fish and Wildlife Service. Assistant United States Attorneys Katherine T. Lydon and Whitnee Goins are prosecuting the case.
Bruce is scheduled to be sentenced by U.S. District Judge John A. Mendez on May 20, 2025. Bruce faces a maximum statutory penalty of 5 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The charges against Pir are only allegations, and he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
U.S. Attorney’s Office Recognizes the Contributions of State, Local, and Federal Law Enforcement Partners to the Mission of the U.S. Department of JusticeRead the Press Release
SACRAMENTO, Calif. — U.S. Attorney Phillip A. Talbert is pleased to announce the recipients of the 2023 Eastern District of California Law Enforcement Awards. These awards are presented annually to law enforcement agencies and investigators in the District’s Sacramento and Fresno divisions to recognize outstanding collaboration between federal, state, and local law enforcement in addressing public safety issues in this region.
“Congratulations to all of our award recipients on being chosen and for their efforts to address dangerous crimes that threaten the residents of the Eastern District of California,” said U.S. Attorney Talbert. “We owe a debt of gratitude to these agencies, detectives, and agents who conduct extensive investigations to seek justice for victims and for the public. It is a privilege for our office to work alongside them to keep our communities safe.”
Outstanding Law Enforcement Agency Awards
The Outstanding Law Enforcement Agency Award is presented to a local or state law enforcement agency that has demonstrated outstanding professionalism, commitment to public safety partnerships, and strong support for the U.S. Attorney’s Office’s initiatives.
The Fresno Multi-Agency Gang Enforcement Consortium (MAGEC) is the 2023 recipient of the Eastern District of California Law Enforcement Award for Outstanding Law Enforcement Agency in the Fresno Division. MAGEC received the award for two investigations. The first led to the arrest and charging of more than 25 Norteño gang members in Parlier and surrounding communities for murder, drug trafficking, gun trafficking, and witness and victim intimidation. The second led to the charging of 10 members of the MS-13 gang for six different murders committed in and around the Mendota area. MAGEC is composed of personnel from the Clovis Police Department, the Fresno Police Department, the Kerman Police Department, the Kingsburg Police Department. the Parlier Police Department, the Sanger Police Department, the Selma Police Department. the Fresno County Sheriff’s Office, the California Highway Patrol, and the Fresno County District Attorney’s Office, working in partnership with the California Department of Corrections and Rehabilitation, the Fresno County Probation, the California Department of Justice’s Special Operations Unit, Homeland Security Investigations, DEA, ATF, and FBI. MAGEC demonstrates our shared commitment to keeping our communities safe from violent criminal gangs through teamwork among federal, state, and local law enforcement partners.
The Sacramento Hi-Tech Crimes / Internet Crimes Against Children (ICAC) Task Force is the 2023 recipient of Eastern District of California Law Enforcement Award for Outstanding Law Enforcement Agency in the Sacramento Division. The ICAC Task Force received the award for investigations that led to the successful charging and prosecution of some of the Sacramento region’s most serious sexual offenders in 2023, including multiple defendants who produced child pornography and sexually abused minors. Those defendants included a physician, a nurse practitioner, and an adoptive and foster father who sought to sexually exploit young children. The ICAC Task Force is composed of personnel from the El Dorado County District Attorney’s Office, the Placer County Sheriff’s Office, the Sacramento County Sheriff’s Office, the San Joaquin County Sheriff’s Office, the Citrus Heights Police Department, the Elk Grove Police Department, the Folsom Police Department, the Rocklin Police Department, the Tracy Police Department, the Sacramento Police Department, the California Department of Justice, the California Highway Patrol, and the California Department of Corrections and Rehabilitation, as well as from Homeland Security Investigations and the FBI. The ICAC Task Force exemplifies commitment to protect the most vulnerable in our community by thoroughly investigating internet-facilitated crimes against children.
Outstanding Individual Awards
The Outstanding Investigator and Outstanding Federal Agent awards are presented to local, state, and federal law enforcement officers who have demonstrated outstanding professionalism; timely, thorough, quality investigations; exceptional knowledge and investigative skill; energy and commitment to public safety; and commitment to law enforcement partnerships and teamwork.
The Outstanding Investigator award for the Sacramento Division was given to Yuba County Sheriff’s Office Peace Officer Sixto Torres for his work as a DEA Task Force Officer on Operation Splazh Down, an investigation into a large-scale, poly-drug distribution organization in the Sacramento Area. During Operation Splazh Down, TFO Torres identified the leadership structure of a drug trafficking organization. As a result of his efforts and that of his team, DEA seized more than 500 pounds of methamphetamine and large amounts of cocaine, fentanyl, heroine, and firearms. Torres dedicates exceptional energy to his investigations and consistently exemplifies professionalism and service before self.
The Outstanding Investigator award for the Fresno Division was given to Fresno County Sheriff’s Office Sergeant Scott Schwamb for his work with the Internet Crimes Against Children Task Force. One case where Schwamb was the lead investigator culminated in a 21‑year prison sentence for the defendant. That case began when Schwamb received information that hidden cameras were recording a minor in her bedroom and bathroom. Despite having already worked a full shift, Schwamb reviewed the evidence and assembled an investigative team that evening and applied for a search warrant. By early the next morning, evidence had been collected at the suspect’s home and work and the suspect had been interviewed. Schwamb continued to work on the case by preparing for trial and was the prosecution’s key law enforcement witness at trial. While working on the Task Force, Schwamb has assisted in the investigation of hundreds of leads involving child sexual exploitation, and as a result, dozens of cases have been prosecuted by the U.S. Attorney’s Office and the Fresno County District Attorney’s Office.
The Outstanding Federal Agent award for the Sacramento Division was given to FBI Special Agent Jessi Groff for her work as a member of FBI’s international terrorism squad. She has led the investigations into some of the most important cases in the District, using her unique ability to master details of a case while never losing sight of the big picture. Her work is often unheralded and tedious, yet Special Agent Groff maintains a positive demeanor and attitude. Throughout her years of service, she has become a bedrock of federal law enforcement.
The Outstanding Federal Agent award for the Fresno Division was given to Homeland Security Investigations Special Agent Jackie Lovato for his work on the Fentanyl Overdose Resolution Team (FORT). Agent Lovato has spearheaded the investigation into dozens of fentanyl traffickers in the Central Valley, including some who caused overdose injuries and deaths. One of his cases led to charges against 20 fentanyl and cocaine traffickers, including the self‑proclaimed counterfeit M-30 fentanyl “King of Fresno.” Special Agent Lovato has also offered support to overdose victims and their families and played a key role in educating the public about the dangers of fentanyl in schools, hospitals, law enforcement agencies, and other organizations.
Roseville Man Sentenced to 70 Months in Prison for Being A Felon in Possession of AmmunitionRead the Press Release
SACRAMENTO, Calif. — Arnes Krajinic, 33, of Roseville, was sentenced Thursday by United States District Judge Daniel J. Calabretta to 5 years and 10 months in prison for being a felon in possession of ammunition, United States Attorney Phillip A. Talbert announced.
According to court documents, law enforcement began investigating Krajinic in January 2023 because he was advertising fentanyl and firearms for sale via Instagram. On January 17, 2023, law enforcement arrested Krajinic and found him in possession of approximately 95 grams of fentanyl powder, miscellaneous prescription pills, over $7,000 in cash, a digital scale, and a privately manufactured 9mm firearm that did not have a serial number and was loaded with ammunition. Krajinic was prohibited from possessing firearms and ammunition because he had previously been convicted of multiple felonies, including for robbery, possession of controlled substances while armed, possession of a concealed weapon in a vehicle, felon in possession of a firearm, and possession of controlled substances for sale.
This case was the product of an investigation by the U.S. Marshals Service, the ATF, and the Placer County Special Investigations Unit, with assistance from the Roseville Police Department. Assistant United States Attorney Emily G. Sauvageau prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Corcoran Correctional Officer Charged with Conspiring with an Inmate to Assault Another InmateRead the Press Release
FRESNO, Calif. — A federal grand jury returned an indictment Thursday against Raquel Mosqueda, 36, of Porterville, California, and Jimmie L. Carter, 44, charging them with conspiring to violate the constitutional rights of another inmate at California State Prison-Corcoran, United States Attorney Phillip A. Talbert announced.
Mosqueda was a Correctional Officer with the California Department of Corrections and Rehabilitation, and Carter was an inmate. According to court documents, on or around April 20, 2022, Mosqueda, while serving as a correctional officer at California State Prison-Corcoran, agreed with Carter to permit Carter to “get rid of” the victim. Mosqueda facilitated an assault of the victim by permitting Carter and other inmates to enter the victim’s cell and assault him. The assault caused bodily injury to the victim.
Mosqueda is additionally charged with depriving the victim of his constitutional right to be free from cruel and unusual punishment, which includes the right to be reasonably protected from the threat of violence by fellow inmates.
This case was the product of an investigation by the Federal Bureau of Investigation and California Department of Corrections and Rehabilitation’s Office of Internal Affairs. Assistant United States Attorney Karen A. Escobar and Trial Attorney Laura-Kate Bernstein of the Civil Rights Division of the U.S. Department of Justice are prosecuting the case.
If convicted, Mosqueda and Carter face a maximum statutory penalty of 10 years in prison and a $250,000 fine for the conspiracy charge. Mosqueda faces an additional 10 years in prison and a $250,000 fine for the charge of deprivation of constitutional rights. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
South Lake Tahoe Man Indicted on 12 Counts of Wire Fraud in Cryptocurrency Trading ScamRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 12-count indictment against Daniel Chartraw, 51, formerly of South Lake Tahoe, charging him with wire fraud, United States Attorney Phillip A. Talbert announced.
According to court documents, Chartraw was responsible for defrauding multiple victims in a cryptocurrency investment scheme. Chartraw claimed that his companies, Crypto-Pal LLC and TDA Global, were developing and possessed a proprietary algorithm that was capable of generating exceptional returns on cryptocurrency investments. However, instead of investing money from his victims as he promised, Chartraw used the money to fund his personal lifestyle and travel.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Jessica Delaney is prosecuting the case.
If convicted, Chartraw faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Los Angeles Drug Trafficker Sentenced to 15 Years in Prison for his Leadership Role in Methamphetamine ConspiracyRead the Press Release
SACRAMENTO, Calif. — Fernando Castro Bazan, 33, of El Monte, was sentenced today by U.S. District Judge Daniel J. Calabretta to 15 years in prison for his role as a leader in a conspiracy to distribute methamphetamine to the Sacramento area and elsewhere, United States Attorney Phillip A. Talbert announced.
According to court documents, Castro Bazan sold and attempted to sell an undercover officer methamphetamine on three separate occasions. On July 15, 2021, Castro Bazan, who then resided in Los Angeles, sent a courier to Roseville to deliver 20 pounds of methamphetamine to the undercover officer. On August 12, 2021, Castro Bazan sent a different courier to deliver five pounds of methamphetamine to the undercover officer. Finally, in September of 2021, Castro Bazan promised to sell the undercover officer another 30 pounds of methamphetamine. The following day, law enforcement executed a search warrant of the defendant’s stash house and seized 31 pounds of methamphetamine.
On June 30, 2022, while on pretrial release for this case, Castro Bazan was arrested for a separate federal case in San Diego. That case involved his use of drivers to transport drugs for a Tijuana-based drug trafficking organization. Using his status as a club promoter and amateur musician, Castro Bazan hired numerous college-aged drivers, luring them with the prospect of easy money and “all-expenses-paid trips to Mexico.” A number of the young drivers Castro Bazan employed were arrested at the border and convicted of drug trafficking or related offenses. They now have federal felony convictions on their records. Castro Bazan remained in federal custody during the pendency of the San Diego case, and ultimately pleaded guilty to conspiracy and importation of methamphetamine into the United States. On May 17, 2024, a federal judge in San Diego sentenced him to 12 years in prison. After being sentenced in San Diego, Castro Bazan was transported to the Eastern District to face his sentence in this case.
This case was the product of an investigation by the Drug Enforcement Administration and the Tri-County Drug Enforcement Team with assistance from the California Highway Patrol, the LAFD HIDTA Group 48, the LA IMPACT Group 1, the Rialto Police Department Narcotics Unit, and the United States Attorney’s Office for the Southern District of California. Assistant U.S. Attorney Adrian T. Kinsella prosecuted the case.
California Corrections Officer Charged with Federal Conspiracy and Civil Rights ViolationsRead the Press Release
A federal grand jury in Fresno, California, returned an indictment today charging California State Prison-Corcoran Correctional Officer Raquel Mosqueda and inmate Jimmie Carter with conspiracy and a federal civil rights violation.
The indictment alleges that, on or about April 20, 2022, Mosqueda and Carter conspired to violate the Eighth Amendment right to freedom from cruel and unusual punishment of J.M., an inmate at California State Prison-Corcoran. The indictment also charges Mosqueda with depriving J.M. of the same right, while acting under color of law, by facilitating Carter’s planned attack on J.M.
If convicted, Mosqueda and Carter both face a maximum penalty of 10 years in prison and a $250,000 fine for the conspiracy count. Mosqueda also faces a maximum penalty of 10 years in prison for the federal civil rights violation. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Phillip A. Talbert for the Eastern District of California and Acting Special Agent in Charge Mark Remily of the FBI Sacramento Field Office made the announcement.
The FBI Sacramento Field Office is investigating the case, with assistance from the California Department of Corrections and Rehabilitation’s Office of Internal Affairs.
Assistant U.S. Attorney Karen Escobar for the Eastern District of California and Trial Attorney Laura-Kate Bernstein of the Civil Rights Division’s Criminal Section are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Aryan Brotherhood Prison Gang Members Sentenced to Two Consecutive Life Terms in Prison for RICO Conspiracy and Murder in Aid of RacketeeringRead the Press Release
SACRAMENTO, Calif. — Ronald Yandell, 62, of Pinole, and William Sylvester, 56, of Norco, were each sentenced today by U.S. District Judge Kimberly J. Mueller to two consecutive life terms in prison for murder in aid of racketeering and various other RICO-related crimes, United States Attorney Phillip A. Talbert announced.
According to court documents, between 2011 and 2016, Aryan Brotherhood members and associates engaged in racketeering activity, committing multiple acts involving murder, conspiracies to murder, and drug trafficking crimes. The trial evidence showed that Aryan Brotherhood members oversaw a significant heroin and methamphetamine trafficking operation from their California prison cells using smuggled cellphones to direct drug trafficking activities, order murders, and oversee other criminal activities inside and outside of the prisons.
Yandell’s murder in aid of racketeering
According to evidence presented at trial, on August 15, 2015, two inmates carried out a brutal murder of another inmate at CSP-Sacramento on Yandell’s order. Before the murder, Yandell offered the two inmates membership in the Aryan Brotherhood if they were able to execute the killing. About a year after the murder, DEA intercepted calls made by Yandell over a contraband cellphone in which he bragged about directing the murder and sponsoring the killers for membership in the gang. Yandell also directed that money earned from Aryan Brotherhood criminal activities be directed to support the two murderers.
Sylvester’s murder in aid of racketeering
According to evidence presented at trial, on October 7, 2001, Sylvester murdered another inmate at CSP-Sacramento to earn his membership in the Aryan Brotherhood. In particular, Sylvester murdered the other inmate because the victim was a member of a gang that refused to recognize the Aryan Brotherhood’s authority and, as a result, members of the victim’s gang were marked for death.
To carry out the murder, Sylvester and another inmate used substantial planning and premeditation to carry out the attack within an extremely-restrictive prison environment. They used inmate-manufactured weapons and surprised the victim with multiple lethal stab wounds to the victim’s body. Sylvester earned membership in the gang for carrying out the killing.
In April 2024, following a nine-week trial before, a federal jury found Yandell, Sylvester, and co-defendant Danny Troxell, 71, guilty of RICO conspiracy, conspiracy to murder, murder in aid of racketeering, and multiple counts of drug trafficking. Troxell will be sentenced on February 18, 2025.
Charges remain pending against one defendant, Kevin MacNamara, 44, of La Palma.
The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Drug Enforcement Administration with assistance from the California Department of Corrections and Rehabilitation, the Vallejo Police Department, the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the El Dorado County District Attorney’s Office, and the Nevada County Sheriff’s Office. Assistant U.S. Attorneys Jason Hitt, Ross Pearson, and David Spencer are prosecuting the case.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.
Sacramento Man Sentenced to 39 Months Prison for Using Stolen Credit Card Numbers to Buy Gift CardsRead the Press Release
SACRAMENTO, Calif. — Steven Raymon Waller, 46, of Sacramento, was sentenced Tuesday by U.S. District Judge Dale A. Drozd to 39 months in prison for access device fraud.
According to court documents, between November 2017 and March 2019, Waller used stolen credit card numbers to buy at least $927,000 worth of gift cards from a national retailer.
In addition to the prison sentence, Judge Drozd ordered Waller to serve three years of supervised release and to pay $927,000 in restitution to the retailer.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Nicholas M. Fogg prosecuted the case.
Placer County Man Pleads Guilty to Child Exploitation ChargesRead the Press Release
SACRAMENTO, Calif. — Randy Anger, 57, of Carnelian Bay, pleaded guilty today to distribution and receipt of child pornography, United States Attorney Phillip A. Talbert announced.
According to court documents, in May 2021, Anger distributed and received child sexual abuse material on the Kik Messenger app while communicating with Brent Hooton. Hooton was separately charged and convicted in the Eastern District of California with production and distribution of child pornography and was sentenced to 27 years in prison. In November 2021, Anger also received several images of child sexual abuse material on the Wickr app.
This case was the product of an investigation by the Federal Bureau of Investigation, with assistance by Homeland Security Investigations and the Placer County Sheriff’s Office. Assistant United States Attorney Denise N. Yasinow is prosecuting the case.
Anger is scheduled to be sentenced on March 31, 2025, by U.S. District Judge Dale A. Drozd. On both the distribution and receipt counts, he faces a mandatory minimum sentence of 5 years in prison and a maximum statutory penalty of 20 years in prison per count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Kern County Woman Sentenced to Five Years for $825,000 Credit Card Fraud Scheme Where She Used Identities Stolen from Health Care ProvidersRead the Press Release
FRESNO, Calif. — Karina Arceo, 34, of Wasco, was sentenced to 60 months in prison and 3 years of supervised release for conspiring to commit bank fraud and committing aggravated identity theft in a long-running credit card fraud scheme, U.S. Attorney Phillip A. Talbert announced today.
“The defendant used patient healthcare files to commit fraud and identity theft instead of treating those files with the care and sensitivity they deserve,” said U.S. Attorney Talbert. “Let this case serve as a warning those who consider abusing such access to patient files: my office will work tirelessly with the FBI and our law enforcement partners to investigate and prosecute fraud and identity theft crimes committed with sensitive patient information.”
“Arceo violated her employer’s trust by abusing her access to personally identifiable information, fueling an elaborate, greed-driven scheme that she and her partner enjoyed until they were taken into custody,” said FBI Sacramento Special Agent in Charge Sid Patel. “This case should serve as a reminder to all to freeze and routinely check your credit to ensure accounts are not opened without your knowledge. It is also a reminder to would-be criminals that the FBI will identify and pursue anyone who abuses a position of trust to exploit others for personal gain.”
According to court records, from February 2016 through August 2022, Arceo and her partner and co-defendant, Miguel Leyva, stole the personally identifiable information (PII) for more than 125 victims. They stole much of the PII from patient files at health care providers in Kern County where Arceo worked.
As part of their fraud scheme, Arceo and Leyva used the stolen PII to open thousands of fraudulent credit cards in the victims’ identities and made hundreds of thousands of dollars in fraudulent purchases on the credit cards in Fresno County, Kern County, the Bay Area, and elsewhere. The fraudulent purchases included home appliances, furniture, wall art, automobile accessories, designer clothing and shoes, luxury camping equipment, tickets to concerts and sporting events, and travel, among other items. Indeed, they used fraudulent purchases to remodel their home kitchen and their child’s room.
Arceo and Leyva also resold many of the items that they fraudulently purchased for cash and reaped a windfall because they did not actually pay for the items. They also used checks that had been stolen from companies in Kern County to access the companies’ bank accounts and make fraudulent payments towards the credit cards so as to keep their scheme going. Altogether, their scheme caused a total actual loss of more than $825,000.
Selfie of defendants celebrating after fraudulent purchase at Bed, Bath, & Beyond
Arceo’s sentence was enhanced because text messages that she exchanged with Leyva showed that she was the leader of the scheme. Arceo would pull the stolen PII used to open the fraudulent credit cards from her cloud account and send it to Leyva. The text messages also showed that Arceo would coach Leyva on how to make the fraudulent purchases. For example, she would tell him which cashiers to target at the stores and what to say if the cashiers started asking questions. Finally, the text messages showed that Arceo used lyrics from a popular hip-hop song at the time to describe herself as being “the boss” of the scheme who “makes money move” and to Leyva as just being a “worker.”
Leyva was previously sentenced to 65 months in prison.
At the sentencing hearing, Arceo submitted a letter to the court that Leyva wrote from prison where he tried to minimize her role in the scheme and identified himself as being the leader. That argument was rejected by the court.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Joseph D. Barton and Arelis M. Clemente are prosecuting the case.
Bitwise Founders Sentenced to 11 Years and 9 Years in Prison for $115 Million FraudRead the Press Release
FRESNO, Calif. —Jake Soberal, 38, and Irma Olguin, Jr., 44, the founders and leaders of the failed Fresno-based start-up company, Bitwise Industries (“Bitwise”), were sentenced to 11 years and 9 years in prison, respectively, for defrauding people out of approximately $115,000,000, United States Attorney Phillip A. Talbert announced today.
“Defendants likened themselves to gods and joked about deceiving their well-intentioned investors while committing a massive fraud,” said U.S. Attorney Talbert. “They lied repeatedly to pull in over $100 million to a dying business venture that they knew never had any meaningful revenue. To make themselves rich and keep up the façade, they used fabricated bank statements, false financial information, forged documents, and fake loan collateral. These sentences serve as a reminder of the hazards of such financial crimes, and my office will continue to work with the FBI, IRS Criminal Investigation, and our law enforcement partners to vigorously investigate and prosecute those who commit them.”
“The willful and egregious fraud carried out by Irma Olguin Jr. and Jake Soberal will have long lasting impacts on not only those who invested in the well-orchestrated scam of Bitwise, but also the nearly 1,000 employees and contractors who abruptly lost their jobs when the Bitwise swindlers ran out of money,” said IRS Criminal Investigation (IRS-CI) Oakland Field Office Assistant Special Agent in Charge Kulbir Mand. “White-collar crimes are damaging to victims, families, and communities alike. IRS-CI and its law enforcement partners are experts at investigating financial crimes and building cases that lead to justice. Today’s sentencing should serve notice that the consequence for committing white-collar crime is severe.”
“This case demonstrates how disastrous the impact can be when a company’s executives fail to conduct themselves ethically and lawfully. Bitwise Industries co-CEOs Jake Soberal and Irma Olguin, Jr. repeatedly lied to investors and lenders to keep their massive Ponzi scheme afloat, despite knowing that the business model would never generate positive revenue. The $115 million loss is significant, but the damage to the professional reputations of innocent parties and the loss of more than 900 jobs and associated benefits employees depended on will have a lasting, negative impact on the economy and individual lives,” said FBI Sacramento Special Agent in Charge Sid Patel. “The FBI remains steadfast, safeguarding our economy by working with all partner agencies to ensure that those who exploit positions of trust to commit large-scale corporate frauds are held accountable for their criminal activity.”
According to court records, Bitwise was, and still is, the biggest startup company to come from California’s Central Valley. The company’s objective was to use technology to create jobs for underserved groups of people, revitalize blighted urban areas, and show that such a project could be profitable.
Olguin, Jr. and Soberal received national media attention by appearing in publications like Forbes Magazine and giving Ted Talks where they portrayed Bitwise as being a success. They also made a substantial annual salary. By early 2022, however, the company was not generating any revenue and was running low on funds. Thereafter, Olguin, Jr. and Soberal fabricated financial information for its board and for investor materials and doctored audit reports to make it appear as though Bitwise was generating revenues and turning a profit. They also altered bank statements and forged bank representatives’ signatures on bank correspondence to inflate the company’s cash balances. They did so to convince people that Bitwise was excelling when the company was actually failing.
The following are illustrative examples of Olguin, Jr. and Soberal’s fraud:
- In a February 2022 presentation and July 2022 prospectus that were circulated to investors, Olguin, Jr. and Soberal represented that Bitwise’s cash balance was over $44,000,000 as of the end of 2021. They also represented that the company’s revenue was more than $58,000,000. In reality, the company’s cash balance was less than $12,000,000 at that time and its revenue was non-existent.
- In June and July 2022, Olguin, Jr. and Soberal falsely represented to a California-based investment firm that Bitwise had secured a $150,000,000 investment from another, London-based investment firm. This was done to convince the California-based investment firm to purchase several buildings that Bitwise owned. Several months later, Soberal falsely represented to another lender that Bitwise still owned those buildings to to provide collateral for another loan from another lender of millions of dollars.
- In a March 2023 presentation circulated to investors, Olguin, Jr. and Soberal represented that Bitwise’s cash balance was over $77,000,000 as of the end of 2022. They also represented that the company’s revenue was more than $143,000,000. In reality, the company’s cash balance was less than $5,000,000 at that time and its revenue nominal.
- Also in March 2023, Olguin, Jr. and Soberal provided an investor with an altered version of an audit of Bitwise that was previously conducted by an international audit firm. They altered the audit to make it appear as though Bitwise’s revenue was 300 percent higher than the true number.
- Also in March 2023, Soberal represented to a long-time Bitwise employee that the company had sufficient resources on-hand to induce the employee to make a significant loan to the company.
This pattern continued until the end of May 2023 when Bitwise ran out of money and the company collapsed.
Olguin, Jr. was a computer engineer who had previously run another technology company, and Soberal was an attorney who had previously practiced at a law firm doing intellectual property work. Moreover, the defendants hired unqualified family members and friends, which allowed them to compartmentalize information and work in secret to spin the false statements needed to conceal and continue with their fraud. For these reasons, Olguin, Jr. and Soberal received special sentencing enhancements.
This case is the product of an investigation by the FBI and IRS Criminal Investigation. Assistant United States Attorneys Joseph Barton and Henry Z. Carbajal III prosecuted the case.
Vacaville Man Pleads Guilty to Illegal Firearm Possession and Manufacturing DMTRead the Press Release
SACRAMENTO, Calif. — Robert Charles Crist, 58, of Vacaville, pleaded guilty today to being a felon in possession of a firearm and manufacturing a controlled substance, United States Attorney Phillip A. Talbert announced.
According to court documents, on Sept. 20, 2022, law enforcement officers executed a search warrant at Crist’s home and found a lab he used to manufacture N,N‑Dimethyltryptamine, or “DMT,” a Schedule I controlled substance. Crist traveled to Hawaii to obtain plant materials for manufacturing DMT, which he mailed back to California. From the plant materials, Crist extracted DMT liquid, which he then converted into a smokable crystalline form for distribution. Officers also found Crist in possession of a firearm. Crist is prohibited from possessing firearms because he has five prior felony convictions.
This case was the product of an investigation by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco and Firearms; the U.S. Postal Inspection Service; and the Solano County Sheriff’s Office. Assistant United States Attorney Emily G. Sauvageau is prosecuting the case.
Crist is scheduled to be sentenced by Judge Dena Coggins on March 21, 2025. Crist faces a maximum statutory penalty of 15 years in prison and a $250,000 fine on the firearm count and a maximum of 20 years in prison for the manufacturing a controlled substance count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Los Angeles Man Pleads Guilty to Money LaunderingRead the Press Release
SACRAMENTO, Calif. — Tracy Arnett, 39, of Los Angeles, pleaded guilty today to conspiracy to commit money laundering, U.S. Attorney Phillip A. Talbert announced.
According to court documents, from August 2023 through March 2024, Arnett and three co-conspirators conducted multiple financial transactions involving funds they believed to be proceeds of cocaine trafficking. Their belief as to the nature of the funds was based on representations of an individual working at the direction of law enforcement. In total, the co-conspirators received approximately $940,000 in purported drug trafficking proceeds. Of that amount, the co-conspirators laundered approximately $811,000.
This case is the product of an investigation by the IRS Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorneys Matthew Thuesen and Whitnee Goins are prosecuting the case.
A sentencing date for Arnett has not been set. Arnett is scheduled for a status conference regarding sentencing before U.S. District Judge Dena Coggins on June 13, 2025. Arnett faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the court’s discretion after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Oroville Hospital to Pay $10.25 Million to Resolve Allegations of Kickbacks and False BillingRead the Press Release
SACRAMENTO, California — Oroville Hospital has agreed to pay $10.25 million to the United States and the State of California to resolve allegations that it violated the False Claims Act and the Anti-Kickback Statute, U.S. Attorney Phillip A. Talbert announced today.
The settlement resolves allegations that Oroville Hospital engaged in an illegal kickback and physician self-referral scheme by paying kickbacks to physicians for patients they admitted to the hospital, and that it knowingly submitted false claims to Medicare and Medi-Cal for medically unnecessary hospital admissions and claims that included false diagnosis codes. Oroville Hospital will pay $9,518,954 to the federal government and $731,046 to the State of California.
“Physicians should make decisions based the best interests of their patients, not their own personal financial interests,” said U.S. Attorney Talbert. “Hospitals engaging in kickback schemes betray the trust placed in them by their communities and distort care decisions that should be untainted by illegal kickbacks. This settlement demonstrates my office’s commitment to preserving the integrity of public healthcare programs and ensuring that the well-being of patients remains paramount.”
“Improperly billing federal health care programs depletes valuable government resources used to provide medical care to millions of Americans,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to advocate for the appropriate use of Medicare and Medicaid funds, and we will pursue health care providers who defraud taxpayers by knowingly submitting false claims.”
The settlement resolves allegations that, to increase hospital admissions, Oroville Hospital illegally paid kickbacks to its physicians who were responsible for deciding whether individuals should be admitted as inpatients. These physicians allegedly received a bonus based on how many patients they admitted, according to the settlement agreement. The settlement also resolves allegations that Oroville Hospital admitted patients as inpatients when it knew inpatient care was not medically necessary. Oroville Hospital then submitted claims to Medicare and Medicaid for inpatient care, which is more expensive. Oroville Hospital further allegedly submitted claims to Medicare and Medicaid that included false diagnosis codes for systemic inflammatory response syndrome (SIRS), resulting in excessive reimbursement to the Hospital.
In connection with the settlement, Oroville Hospital entered into a five-year Corporate Integrity Agreement with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) that requires, among other requirements, the implementation of a risk assessment and internal review process designed to identify and address evolving compliance risks. The Corporate Integrity Agreement also requires an independent review organization to, among other requirements, annually assess both the medical necessity and appropriateness of select claims billed to Medicare and policies and systems to track arrangements with some referral sources.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Cecilia Guardiola. 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 ex rel. Cecilia Guardiola v. Oroville Hosp., Case No. 2:20-CV-1558 (E.D. Cal.). As part of the settlement announced today, Ms. Guardiola will receive approximately $1.8 million.
Assistant U.S. Attorney Steve Tennyson handled the case for the U.S. Attorney’s Office. The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of California, the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, the Department of Health and Human Services, Office of the Inspector General, and the California Department of Justice, Division of Medi-Cal Fraud and Elder Abuse.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Note: View the settlement here.
Former California Man Sentenced for Tax FraudRead the Press Release
SACRAMENTO, Calif. — Richard Jason Mountford, formerly of Monterey County and now of Las Vegas, Nevada, was sentenced today by U.S. Chief District Judge Troy L. Nunley to 27 months in prison for conspiring to file false claims against the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Phillip A. Talbert for the Eastern District of California made the announcement.
“Tax fraud schemes like the defendant’s cost the government millions of dollars a year and can lead to substantial prison time,” said U.S. Attorney Talbert. “The U.S. Attorney’s Office remains committed to working with IRS Criminal Investigation and other law enforcement partners to investigate and prosecute tax fraud.”
“Richard Mountford is a serial tax cheat who repeatedly schemed to steal from American taxpayers, including two people whose identities he used to file fraudulent tax returns, to the sum of nearly $875,000 in refunds,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “People like Mr. Mountford undermine the tax system and place additional burden on honest taxpayers, and IRS-CI will remain ever-vigilant to ensure people like him face justice.”
According to court documents and statements made in court, from 2016 to 2020, Mountford conspired with another person to submit false individual income tax returns seeking refunds to which they were not entitled. Mountford and his co-conspirator filed false income tax returns in their own names, as well as in the names of two other unwitting individuals, that falsely reported they received wages from a bogus employer from which taxes were withheld and then claimed a refund based on those withholdings. Most of the returns filed as part of the scheme also falsely reported alimony payments to increase the refund amount.
As a result of his criminal conduct, Mountford and his co-conspirator received $873,723.53 from the IRS. Mountford deposited $757,075.53 of those funds into his own bank accounts and subsequently purchased nearly $360,000 worth of new cars. Mountford also distributed about $170,000 in cash and gold bars to his co‑conspirator, as compensation for his role in the scheme.
In addition to his prison sentence, Judge Nunley ordered Mountford to serve one year of supervised release and to pay $757,075.53 in restitution to the United States.
This case was the product of an investigation by IRS Criminal Investigation. Trial Attorneys John C. Gerardi and Charles A. O’Reilly of the Tax Division and Assistant U.S. Attorney Dhruv M. Sharma prosecuted the case.
California Hospital to Pay $10.25M to Resolve False Claims AllegationsRead the Press Release
Oroville Hospital, located in Oroville, California, has agreed to pay $10,250,000, to the United States and the State of California to resolve allegations that it knowingly submitted false claims to Medicare and Medicaid arising from medically unnecessary inpatient hospital admissions, a kickback and physician self-referral scheme and the use of erroneous diagnosis codes. Oroville Hospital will pay $9,518,954 to the federal government and $731,046 to the State of California.
The United States alleged that Oroville Hospital admitted patients and billed Medicare and Medicaid for more expensive inpatient hospital stays when inpatient care was not medically necessary and observation status or outpatient care was appropriate. The United States also alleged that Oroville Hospital illegally incentivized inpatient admissions by paying financial bonuses to doctors who worked full time at the hospital and were in a position to influence whether or not patients were admitted to the hospital. The bonuses paid by Oroville Hospital took into account the volume or value of admissions by these physicians. Oroville Hospital further allegedly submitted claims to Medicare and Medicaid that included false diagnosis codes for systemic inflammatory response syndrome (SIRS), resulting in excessive reimbursement to the Hospital.
“Improperly billing federal health care programs depletes valuable government resources used to provide medical care to millions of Americans,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to protect these critical programs by pursuing those who knowingly claim reimbursement to which they are not entitled.”
“Physicians should make decisions based on the best interests of their patients, not their own personal financial interests,” said U.S. Attorney Phillip A. Talbert for the Eastern District of California. “Hospitals engaging in kickback schemes betray the trust placed in them by their communities and distort care decisions that should be untainted by illegal kickbacks. This settlement demonstrates my office’s commitment to preserving the integrity of public healthcare programs and ensuring that the well-being of patients remains paramount.”
In connection with the settlement, Oroville Hospital entered into a five-year Corporate Integrity Agreement (CIA) with the Department of Health and Human Services Office of Inspector General (HHS-OIG) that requires, among other conditions, the implementation of a risk assessment and internal review process designed to identify and address evolving compliance risks. The CIA also requires an independent review organization to annually assess both the medical necessity and appropriateness of select claims billed to Medicare and policies and systems to track arrangements with some referral sources.
“Health care providers that improperly bill Medicare and Medicaid for medically unnecessary services to boost profits divert taxpayer funding meant to pay for services that enrollees actually need,” said Special Agent in Charge Steven J. Ryan of HHS-OIG. “And when providers engage in improper financial arrangements, they undermine the integrity of medical decision-making. HHS-OIG, in coordination with our law enforcement partners, will continue to identify and investigate such allegations in order to protect federal health care programs and the Americans who rely on them.”
The settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Cecilia Guardiola. 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 ex rel. Cecilia Guardiola v. Oroville Hosp., Case No. 2:20-CV-1558 (EDCA). As part of the resolution, Guardiola will receive approximately $1.7 million from the federal settlement amount.
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 Eastern District of California, with assistance from HHS, Office of Counsel to the Inspector General and Office of Investigations and the California Department of Justice, Division of Medi-Cal Fraud and Elder Abuse.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477).
Attorneys Daniel A. Spiro and James Nealon of the Civil Division’s Fraud Section and Assistant U.S. Attorney Steve Tennyson for the Eastern District of California handled the matter.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
Settlement
Stockton Fentanyl Trafficker Sentenced to 10 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — Travis Jordan Michael, 38, of Stockton, was sentenced today by United States District Judge Kimberly J. Mueller to 10 years in prison for conspiracy to distribute fentanyl, distribution of fentanyl, and possession with intent to distribute fentanyl, United States Attorney Phillip A. Talbert announced.
According to court documents, Michael distributed fentanyl for a Mexico-based drug trafficker who advertised drugs for sale on Snapchat. On April 16, 2021, Michael was stopped by an officer from the California Highway Patrol. After a narcotics-detection canine alerted to the presence of narcotics his Michael’s car, the CHP officer searched the car and found two pounds of methamphetamine and 4,000 fentanyl pills. During a later search of Michael’s residence in Stockton, officers found three pounds of methamphetamine and 9,000 more fentanyl pills.
This case was the product of an investigation by the Drug Enforcement Administration and Stanislaus Special Investigations Unit with assistance from the California Highway Patrol and the Stanislaus County District Attorney’s Office. Assistant United States Attorney Justin Lee prosecuted the case.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.
Arizona Man Sentenced for Attempted Transportation of a Minor with Intent to Engage in Criminal Sexual ActivityRead the Press Release
SACRAMENTO, Calif. — Robert Frenchie McGriff, 44, was sentenced today by United States District Judge Kimberly J. Mueller to 10 years in prison for attempted transportation of a minor with intent to engage in criminal sexual activity, United States Attorney Phillip A. Talbert announced.
According to court documents, from March through June 2019, McGriff began communicating with an individual he believed to be a minor female on Instagram. McGriff told the individual that he was a pimp and actively recruited her to work for him in Arizona as a prostitute. In June 2019, McGriff traveled by bus from Phoenix, Arizona to Turlock, California with the intent of retrieving the minor female in Turlock and transporting her to work for him as a prostitute. McGriff was thereafter arrested by law enforcement.
This case was the product of an investigation by the Stanislaus County Sheriff’s Department’s Special Prosecutions Unit and Homeland Security Investigations (HSI). Assistant United States Attorneys Whitnee Goins and Shea Kenny prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education
Kings County Man Charged with Receiving and Possessing Child Sex Abuse Material on PhoneRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Quentin Nelson, 32, of Corcoran, charging him with receiving and possessing prepubescent child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Dec. 25, 2020, Nelson received and attempted to receive child pornography. Nelson also possessed numerous images and videos of prepubescent child sexual abuse materials on a phone and an SD card.
This case is the product of an investigation by the Federal Bureau of Investigation and the California Department of Corrections and Rehabilitation. Assistant U.S. Attorney Kristin F. Scott is prosecuting the case.
If convicted, Nelson faces a maximum statutory penalty of 20 years in prison and a $250,000 fine on each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Former California Correctional Officer Sentenced for Accepting BribesRead the Press Release
SACRAMENTO, Calif. — Stephen Joseph Crittenden, 44, of Suisun City, was sentenced today by U.S. District Judge Troy L. Nunley to two years and one month in prison for bribery concerning programs receiving federal funds, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Crittenden was a California Department of Corrections and Rehabilitation correctional officer at the California Medical Facility in Vacaville. From 2021 through 2023, he accepted bribes from inmates, totaling more than $45,000, to smuggle cellphones into the California Medical Facility.
“Crittenden abused the trust placed in correctional officers by repeatedly taking bribes to smuggle contraband into a prison,” said U.S. Attorney Talbert. “Today’s sentence reflects the seriousness of his abuse of trust and should deter other correctional officers from engaging in the same conduct.”
“The FBI has no tolerance for corruption by public employees – especially law enforcement officers – who are entrusted to uphold the law and serve the public. No person is above the law,” said FBI Sacramento Special Agent in Charge Sid Patel. “This case exemplifies the strong partnership between the FBI and CDCR. The FBI works tirelessly to ensure corrupt public officials are held accountable to preserve the public’s trust in and integrity of these vital positions.”
This case was the product of an investigation by the Federal Bureau of Investigation, with assistance from the California Department of Corrections and Rehabilitation. Assistant U.S. Attorney Nicholas M. Fogg prosecuted the case.
Bay Area Man Indicted After Escaping from Federal Custody for Nearly 8 YearsRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Eric Pree, 55, of San Francisco, charging him with escape from custody, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in 2012, Pree was convicted on federal wire fraud and aggravated identity theft charges. He was sentenced to 101 months and transferred to serve his sentence at the U.S. Penitentiary Atwater. On Jan. 29, 2017, Pree was discovered missing from the facility. Pree did not have permission to leave the Atwater facility and remained at large until his arrest.
In October 2024, investigators arrested Pree in Walnut Creek. At the time of his arrest, Pree had several cellphones, ID cards, debit and credit cards in different peoples’ names, as well as multiple driver’s licenses and a fake Harvard University Student ID. He is back in federal custody serving the remainder of his original sentence while also facing his new indictment for the escape.
This case is the product of an investigation by the Diplomatic Security Service's San Francisco Field Office and the U.S. Marshals Service. Assistant U.S. Attorney Cody S. Chapple is prosecuting the case.
If convicted, Pree faces a maximum statutory penalty of five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Grass Valley Woman Sentenced to Jail for Trespassing at Beale Air Force BaseRead the Press Release
SACRAMENTO, Calif. — Today, after a one-day bench trial, Chief U.S. Magistrate Judge Carolyn K. Delaney found Shirley L. Osgood, 76, of Grass Valley, guilty of two-counts of unauthorized entry onto a military installation and sentenced her to five days in jail, 100 hours of community service, and a one-year term of probation, U.S. Attorney Phillip A. Talbert announced.
According to evidence presented at trial, Osgood was arrested on Oct. 19, 2023, and again on March 14, 2024, after entering onto Beale Air Force Base without lawful authority. On both dates, Osgood was specifically advised that she was trespassing on the base, but she ignored law enforcement commands to stay off base property. Osgood testified at trial and admitted that she knew that she was trespassing and that she was not authorized to enter onto the base. Osgood said that she was protesting and trespassed because she wanted to speak to the base commander.
Osgood has previously been arrested and convicted for trespassing on Beale Air Force Base. In 2013, Osgood was convicted in federal court for trespassing at the base, and she was barred from entering.
This case was the product of an investigation by the U.S. Air Force Security Forces. Assistant U.S. Attorney Justin Lee prosecuted the case.
United States Obtains Consent Decree with Kings County Man for Alleged Mail and Wire FraudRead the Press Release
FRESNO, Calif. — The United States has entered a consent decree with Dale Lake of Hanford to resolve a lawsuit brought by the United States pursuant to the Anti-Fraud Injunction Statute, U.S. Attorney Phillip A. Talbert announced today.
The lawsuit, filed in the U.S. District Court for the Eastern District of California, alleged that Lake was a “money mule” who was facilitating a mail and wire fraud scheme that primarily victimized senior citizens. According to the complaint, Lake received funds or gift cards obtained via fraud, then transmitted those funds to accomplices in Jamaica. Other participants in the fraud scheme contacted potential victims; falsely claimed that those victims had won a lottery, sweepstakes, or prize; and induced victims to transmit money to Lake, supposedly in order to receive the falsely promised winnings.
The consent decree announced today, approved by U.S. District Judge Jennifer L. Thurston, permanently prohibits Lake from assisting, facilitating, or participating in any prize promotion fraud or any money transmitting business. The decree also authorizes the U.S. Postal Inspection Service (USPIS) to monitor Lake’s incoming mail for the purpose of ensuring compliance with the decree.
“Money mules facilitate fraud against vulnerable populations,” said U.S. Attorney Talbert. “The U.S. Attorney’s Office will hold accountable anyone who engages in schemes to defraud the public. Our office is committed to educating the public about how fraudsters use money mules to receive and transfer money to third parties.”
“Postal Inspectors will continue to use all the tools of law enforcement, including civil remedies, to protect the public from fraud schemes employing money mules,” said Inspector in Charge Stephen M. Sherwood of the USPIS San Francisco Division.
This case is the product of an investigation by the U.S. Attorney’s Office and the USPIS. It is part of a larger effort by the Justice Department, USPIS, FBI, and other federal law enforcement agencies to identify, disrupt, and prosecute networks of individuals who transmit funds from fraud victims to international fraudsters. Such fraudsters rely on money mules to facilitate a range of fraud schemes, including those that predominantly impact older Americans, such as lottery fraud, romance scams, and grandparent scams, as well as those that target businesses or government pandemic funds. Assistant U.S. Attorney Robert A. Fuentes handled this case for the United States.
Stockton Man Pleads Guilty to Fentanyl and Methamphetamine Pill Manufacturing and DistributionRead the Press Release
SACRAMENTO, Calif. — Jamar Deontae Barnes, 42, of Stockton, pleaded guilty Tuesday to conspiracy to manufacture and distribute pills laced with fentanyl, methamphetamine, and other drugs, and possession with intent to distribute methamphetamine-laced pills, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between September 2015 and May 2019, Barnes conspired with his twin brother, Jamaine Dontae Barnes, and others, to make and sell thousands of drug-laced pills. Barnes and his co-conspirators made the pills using pill presses, which are machines that compress powders into pills of various shapes and sizes. They made pills that appeared to be legitimate prescription pills but in fact, contained fentanyl, furanyl fentanyl, heroin, and other synthetic opioids. They also made pills that appeared to be traditional Ecstasy pills but in fact contained methamphetamine. On May 16, 2019, law enforcement searched Jamar Barnes’ Stockton residence and seized a pill press machine as well as powders and pills containing methamphetamine and furanyl fentanyl.
This case is the product of an investigation by the Drug Enforcement Administration, with assistance from Homeland Security Investigations, the U.S. Marshals Service, the U.S. Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the California Highway Patrol, the San Joaquin METRO Narcotics Task Force, the Tri-County Drug Enforcement Team (TRIDENT) Task Force, the Stockton Police Department, the Sacramento County High Intensity Drug Trafficking Area (HIDTA) Task Force, and the San Joaquin County Sheriff’s Office. Assistant U.S. Attorneys David W. Spencer and Emily G. Sauvageau are prosecuting the case.
Nine other defendants have pleaded guilty:
- Jamaine Dontae Barnes pleaded guilty and is scheduled to be sentenced on March 24, 2025.
- Kavio Daeshaun Lee Wiley pleaded guilty and was sentence to 15 years in prison.
- Vincent Isaiah Patterson pleaded guilty and is scheduled to be sentenced on Jan. 28, 2025.
- Johnesha Denae Thompson pleaded guilty and is scheduled to be sentenced on March 24, 2025.
- Kadrena Latrice Watts pleaded guilty and is scheduled to be sentenced on March 17, 2025.
- Jeremy Jerome Barnett pleaded guilty and was sentenced to 57 months in prison.
- Chevele Bernard Richardson pleaded guilty and was sentenced to 79 months in prison.
- Tashawn Terrell Dickerson pleaded guilty and was sentenced to 46 months in prison.
- Lamont Montez Thibodeaux pleaded guilty and is scheduled to be sentenced on March 24, 2025.
Jamar Barnes is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on March 3, 2025. Barnes faces a maximum statutory penalty of life in prison and a mandatory minimum of 15 years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.
Sacramento Man Indicted for Multiple Armed Postal RobberiesRead the Press Release
SACRAMENTO, Calif. — A four-count indictment was unsealed today, charging William Carl Jackson, 36, of Sacramento, with two counts each of armed robbery of a postal carrier and possession of mail keys, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Jackson robbed postal carriers on July 11 and 31, 2024. During in each robbery, he brandished a pistol at the victim and then ordered the victim to turn over his postal keys. After taking the victim’s keys, he then fled from the scene on a bicycle.
This case is the product of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorney Elliot C. Wong is prosecuting the case.
If convicted, Jackson faces a maximum statutory penalty of 25 years in prison for each robbery count and 10 years in prison for each count of possession of a mail key. Each count also carries a maximum statutory fine of $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Fresno Man Sentenced for Embezzling over $1.5 Million from His Employer in Nearly Decade-Long SchemeRead the Press Release
FRESNO, Calif. — Gabriel Ruiz De Chavez, 47, of Fresno, was sentenced Monday by U.S. District Judge Troy L. Nunley to two years and nine months in prison for a multiyear embezzlement scheme and ordered to pay over $1.5 million in restitution, U.S. Attorney Phillip A. Talbert announced.
In July 2024, Ruiz De Chavez pleaded guilty to wire fraud. According to court documents, from 2004 to 2020, Ruiz De Chavez worked as an operations manager for a Fresno-based trucking company. Between 2012 and 2019, Ruiz De Chavez used his position to generate fake invoices, purportedly created by genuine vendors for goods and services. He presented these fake invoices and corresponding checks made out to the real vendors with his employer’s signature. He would then deposit the checks into his own personal bank account.
Once in his personal bank account, Ruiz De Chavez used the funds to pay for personal expenses including credit card payments, cash withdrawals, mortgage payments, vacations, and car loans. He was able to continue the scheme without notice because of the trusted position he held at the company. Ruiz De Chavez created more than 600 fake invoices and checks, causing $1,561,000 to be transferred into his account from his employer.
This case was the product of an investigation by the Federal Bureau of Investigation and the Fresno Police Department. Assistant U.S. Attorney Cody S. Chapple prosecuted the case.
Madera Pharmacist Sentenced to over 7 Years in Prison for Illegally Trafficking Hundreds of Thousands of Opiate PillsRead the Press Release
FRESNO, Calif. — Ifeanyi Vincent Ntukogu, 49, of Fresno, was sentenced today to seven years and three months in prison for illegally distributing oxycodone and hydrocodone, U.S. Attorney Phillip A. Talbert announced.
Ntukogu was a pharmacist in Madera who dispensed more than 450,000 oxycodone and hydrocodone pills based on fraudulent prescriptions, all in exchange for cash.
“This defendant displayed a blatant disregard for public safety and the law,” U.S. Attorney Talbert said. “It took the effort of agents, investigators, undercover officers, and medical professionals to bring an end to this illicit prescription-writing racket. The U.S. Attorney’s Office will continue our pursuit of those who fuel the opioid epidemic for their own personal benefit.”
“As a licensed pharmacist, Mr. Ntukogu was trusted to dispense medications safely, supporting positive health outcomes. He intentionally exploited his trusted role, dispensing hundreds of thousands of fraudulently prescribed oxycodone and hydrocodone pills, knowing his greed-fueled actions would put opioids in the hands of drug dealers and could cause grave harm to the public. Working closely with our state and federal law enforcement partners, we dismantled this operation and held those who chose profit over public safety accountable,” said Special Agent in Charge Sid Patel, who leads the FBI Sacramento field office.
“Ntukogo thought he could outsmart the system by rejecting red flag prescriptions all while conducting drug deals on the side for cash. His illicit scheme led to the distribution of nearly half a million highly addictive opioids in Tennessee, Texas and beyond; fueling the fire of prescription drug misuse and endangering American lives,” said DEA Special Agent in Charge Bob P. Beris. “This lengthy sentence underscores the serious consequences for medical practitioners who place profits above people. DEA will continue to work with our counterparts to investigate, arrest and prosecute individuals who abuse their positions and threaten public safety.”
According to court records, from December 2014 through November 2018, Ntukogu dispensed more than 450,000 oxycodone and hydrocodone pills based on fraudulent prescriptions delivered to him by his co-conspirators and co-defendants in the case, Kelo White and Donald Pierre. The prescriptions were from more than 10 different physicians whose signatures were forged.
Ntukogu reviewed each prescription and rejected the ones that he believed regulators may deem suspicious. For example, he rejected prescriptions that were supposedly written by certain doctors or that were written for individuals who were having prescriptions filled at other pharmacies because he believed those prescriptions may raise red flags.
Ntukogu dispensed the pills through his New Life Pharmacy in Madera. Upon doing so, he required cash payments from White and Pierre and increased the price that he charged over time. White and Pierre then illegally sold the pills in Tennessee, Texas, and elsewhere.
Ntukogu received hundreds of thousands of dollars for his participation in the scheme. His sentence was also enhanced because he used his special skills as a pharmacist to help commit the crime.
This case was the product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, and the California Department of Health Care Services. Assistant U.S. Attorneys Antonio Pataca and Joseph Barton prosecuted the case.
The case was investigated under the DOJ’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about OCDETF, please visit Justice.gov/OCDETF.
This case was also part of the DOJ’s Operation Synthetic Opioid Surge (SOS), which is a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers.
White is scheduled to be sentenced on Feb. 24, 2025. He faces a statutory maximum penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Pierre, the remaining defendant in the case, was previously convicted and sentenced to nine years and four months in prison.
Madera Man Previously Convicted in Washington D.C. for Jan. 6 Capitol Breach Offenses Sentenced in Fresno for Illegally Possessing Firearms and AmmunitionRead the Press Release
FRESNO, Calif. — Benjamin Martin, 46, of Madera, was sentenced today to three years and two months in prison today for illegally possessing several firearms and ammunition, U.S. Attorney Phillip A. Talbert announced today.
Martin was convicted of the firearms charges following a one-day trial in Fresno. According to evidence presented at the trial and other court records, in September 2021, the FBI executed a search warrant at Martin’s residence in Madera and arrested him on charges filed by the United States Attorney’s Office for the District of Columbia for the breach of the United States Capitol that occurred on Jan. 6, 2021. During the search, the FBI found eight firearms, including an AR‑15‑style rifle, multiple high-capacity magazines for the AR-15, and more than 500 rounds of ammunition. Martin was prohibited from possessing these items because of his prior domestic violence conviction, and resulting restraining order, for choking his then girlfriend and dragging her back into the house after she tried to flee.
Shortly after his arrest, Martin was caught on a recorded jail call where he instructed his current fiancée to lie to authorities and tell them that the firearms seized from his residence belonged to her and her father and that he did not know about them. She agreed to do so. Martin received an enhancement to his sentence for this witness tampering.
Martin also recently went to trial in the Capitol breach case in Washington, D.C., where the evidence showed that he held a door to the Capitol open while officers tried to close it. He kept the door open so that other rioters could spray chemical irritants and throw objects at the officers. Martin was convicted on five counts.
This case was the product of an investigation by the FBI. Assistant U.S. Attorneys Joseph Barton, Robert Veneman-Hughes, and Michael Tierney prosecuted the case.
Martin is scheduled to be sentenced in the Capitol breach case in Washington, D.C., on Dec. 20, 2024, by U.S. District Judge Rudolph Contreras. Martin faces additional imprisonment and fines in that case. The actual sentence will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The press release for Martin’s conviction in the Capitol breach case can be found here: https://www.justice.gov/usao-dc/pr/california-man-convicted-felony-and-misdemeanor-charges-actions-during-jan-6-capitol.
Tulare Man Sentenced to over Five Years in Prison for Methamphetamine TraffickingRead the Press Release
Aaron Iribe, 35, of Tulare, was sentenced Thursday by U.S. District Judge Daniel J. Calabretta to five years and 10 months in prison and for conspiracy to distribute and possess with intent to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on July 27, 2020, Iribe coordinated the delivery of 16 pounds of methamphetamine to an undercover officer. The methamphetamine was seized from a vehicle driven by Iribe’s co-defendant, Daniel Lopez. The undercover officer arranged to purchase 20 pounds of methamphetamine for $80,000 from Iribe’s Mexico-based co-conspirator.
This case is the product of an investigation by the Federal Bureau of Investigation, with assistance from the Drug Enforcement Administration, Homeland Security Investigations, and the Tri-County Drug Enforcement Team (TRIDENT). Assistant U.S. Attorney David W. Spencer is prosecuting the case.
Co-defendant Daniel Lopez pleaded guilty on Aug. 8, 2024, and is scheduled to be sentenced on Dec. 19, 2024.
This prosecution is part of the Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. The Sacramento Strike Force is a co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The specific mission of the Sacramento Strike Force is to identify, investigate, disrupt, and dismantle the most significant drug trafficking organizations (DTOs) and transnational criminal organizations (TCOs) shipping narcotics, firearms, and money through the Eastern District of California, thereby reducing the flow of these criminal resources in California and the rest of the United States. The Sacramento Strike Force leads intelligence-driven investigations targeting the leadership and support elements of these DTOs and TCOs operating within the Eastern District of California, regardless of their geographic base of operations.
Stockton Man Sentenced to 12 Years in Prison for Methamphetamine Distribution and Being a Felon in Possession of AmmunitionRead the Press Release
SACRAMENTO, Calif. — Gary Wayne Stuckey, 58, of Stockton, was sentenced today by U.S. District Judge Daniel J. Calabretta to 12 years in prison for possessing methamphetamine with intent to distribute and being a felon in possession of ammunition, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in June 2022, law enforcement officers conducted a traffic stop of Stuckey’s vehicle and observed several pounds of marijuana inside the vehicle. A search revealed over 500 grams of methamphetamine and several items indicative of drug sales, including digital scales, plastic baggies, and hundreds of dollars of U.S. currency in small denominations. Wedged between the driver’s seat and center console of the vehicle was a Polymer 80 handgun, a privately made firearm or “ghost gun” lacking a serial number, that was loaded with a live round of ammunition in the chamber and five additional rounds in the magazine. Stuckey is prohibited from possessing ammunition due to multiple state felony convictions, including a prior conviction for being a felon in possession of ammunition.
This case was the product of an investigation by the Stockton Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Alstyn Bennett and Whitnee Goins and Special Assistant U.S. Attorney Matthew De Moura prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Sacramento Man Sentenced to over 19 Years in Prison for Attempted Sexual Exploitation of a MinorRead the Press Release
SACRAMENTO, Calif. — Bruce Anthony Garcia, 43, of Sacramento, was sentenced today by U.S. District Judge Troy L. Nunley to 19 years and seven months in prison for the attempted sexual exploitation of a minor under his care, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between Aug. 2, 2017, and Sept. 1, 2019, Garcia took hidden video recordings of the victim. He recorded the victim in various stages of undress, using the toilet or shower, or changing in a bedroom or the living room of the apartment they shared. On his devices, Garcia possessed thousands of images and videos of the victim, with the victim either partially or fully nude in several hundred of these images.
When confronted, Garcia admitted that he specifically intended to take these images and videos, that his intent in creating the images and videos was sexual, and that he generally has a sexual interest in children. Garcia described how he would wait until the victim would be getting ready for bed or to take a shower, and then place a cellphone in the bathroom or bedroom. The phone would be propped up so that it would record the minor, but would either appear to be inconspicuous, as if it were being charged, or be hidden altogether. Garcia would then connect to this device remotely using a second device such that he could watch the minor live. From the recordings thus created, Garcia would take screenshots, resulting in the images that were eventually found. Further, Garcia would sometimes manipulate these images to focus or zoom in on the victim’s genitals and pubic area. In a text message conversation with another person, Garcia offered to trade pictures of the victim in exchange for other child sexual abuse material.
In addition to the images and videos described above, Garcia was also found to possess approximately 4,266 images and 426 videos of other child sexual abuse material, including images and videos showing the sexual abuse of toddlers. Several of these videos also depicted violence against the victims, including at least one depicting the bondage and torture of a pre-pubescent female child. Garcia’s child sexual abuse collection included 110 series of known victims of child sexual abuse.
This case was the product of an investigation by the Internet Crimes Against Children Unit of the Sacramento Valley Hi-Tech Crimes Task Force and the Sacramento County Sheriff’s Office. Assistant U.S. Attorney Dhruv M. Sharma is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Fresno Doctors Agree to Pay $2.4 Million to Resolve Kickback AllegationsRead the Press Release
FRESNO, Calif. – In two separate settlements, Fresno physicians have agreed to collectively pay more than $2.4 million to resolve allegations that they solicited and received unlawful kickbacks in exchange for directing prescriptions to a group of mail-order pharmacies controlled by an individual named Matthew H. Peters, U.S. Attorney Phillip A. Talbert announced today. The United States contends that these arrangements violated the Anti-Kickback Statute and the False Claims Act.
In the first settlement, Fresno podiatrist Dr. Jagpreet Mukker and his medical corporation, Jay Mukker, DPM Inc., have agreed to pay a total of $1,598,891 to the United States to resolve allegations that they participated in the unlawful kickback arrangement causing Dr. Mukker to issue prescriptions for beneficiaries of federal health care programs (including Medicare, TRICARE, and Medi-Cal), which the United States alleges violated the False Claims Act.
As part of the settlement, Dr. Mukker acknowledged, accepted, and agreed not to dispute certain facts surrounding the kickback scheme. In particular, Dr. Mukker agreed that from 2016 through 2020, he accepted payments in connection with prescriptions he issued to a series of indistinguishable mail-order pharmacies controlled by Matthew Peters. Under this arrangement, Dr. Mukker received financial payouts, described as investment returns, in connection with investments in “management service organizations” created by Peters. Financial payouts from those investments reached multiple times the amount of capital paid into the venture, within just the first few months. After a small initial investment, Dr. Mukker received up to $117,400 per year in kickbacks, which caused Dr. Mukker to send prescriptions to Peters’ pharmacies. These payouts were described as a “reward[] for scripts” that Dr. Mukker sent to Peters’ pharmacies.
As described in the settlement agreement, Dr. Mukker acknowledged that, as the arrangement continued, he received additional opportunities to invest in Peters’ management service organizations, which resulted in greater financial payouts. Peters awarded additional investment opportunities based on the number and value of prescriptions that Dr. Mukker had directed to the pharmacies. In connection with one such opportunity, Peters made clear that Dr. Mukker’s payout would double. Peters then explained that the scheme could offer him more shares as Dr. Mukker’s prescription “performance” increased.
The arrangement included an agreed-upon exchange of payments for prescriptions, with prescriptions being a condition of investment—described by one representative such that if a clinician “doesn’t write, he can’t have shares.” Similarly, when monthly payouts were less than expected, Dr. Mukker requested to be “made whole” and that he and another investor “have held up our end of the bargain” and “prescrib[ed] a lot of the compounding to our patients.”
The first settlement agreement also resolves separate allegations that Dr. Mukker and Jay Mukker, DPM Inc. submitted false claims for peripheral venous studies that they knew were not covered by Medicare, under the guise of covered evaluation and management services. With respect to these allegations, under the settlement announced today, Dr. Mukker also acknowledged, accepted, and agreed not to dispute that he and his practice submitted claims to Medicare for peripheral venous studies between January 2017 and November 2023 that were not reimbursable, and that Dr. Mukker and his practice billed those services to Medicare using a code for a physician evaluation and management service that was not consistent with what had been furnished to the patient.
In the second settlement announced today, Fresno pain medicine specialist Amitabh Goswami, D.O., and his medical corporation, California Pain Consultants, agreed to pay $835,000 to resolve allegations that they participated in the same unlawful kickback arrangement that the United States alleges violated the Anti-Kickback Statute and the False Claims Act.
“The payment of kickbacks corrupts medical decision-making and increases the cost of health care,” said U.S. Attorney Talbert. “We will hold accountable those who pay or receive such kickbacks, ensuring they do not profit at the expense of American taxpayers and patients.”
“Kickback schemes jeopardize medical decision-making and undermine the integrity of the Medicare program,” said Special Agent in Charge Steven J. Ryan of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “We are dedicated to safeguarding taxpayer-funded health care and ensuring the well-being of the patients who depend on it.”
“The fraudulent schemes encompassed by these settlements wasted patient care resources and taxpayer dollars,” said Special Agent in Charge Bryan D. Denny of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Western Field Office. “DCIS will continue to work with its partners to hold accountable those who seek to defraud federal health care programs, particularly as it relates to our military’s TRICARE program.”
The resolution obtained in this matter was the result of a coordinated investigation conducted by the Department of Health and Human Services Office of Inspector General, and the Defense Criminal Investigative Service of the Department of Defense Office of Inspector General. Assistant U.S. Attorneys David Thiess and Steve Tennyson handled the case for the U.S. Attorney’s Office.
The United States has also initiated a lawsuit against Peters and a number of his related pharmacies, management service organizations, and other entities, alleging violations of the False Claims Act based on the unlawful kickback scheme that formed the basis for the settlements announced today. United States v. Matthew H. Peters, et al., Case No. 2:24-cv-00287. That litigation is ongoing.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
mukker_settlement_executed.pdf goswami_settlement_fully_executed.pdfYuba County Man Sentenced to 2 Years and 11 Months in Prison for Submitting False Claims Against the United States in Relation to a COVID-19 Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Jason Toland, 44, of Wheatland, was sentenced today by U.S. District Judge Dale A. Drozd to two years and 11 months in prison for submitting false claims against the United States related to COVID-19 pandemic tax credits, U.S. Attorney Phillip A. Talbert announced. Toland was also ordered to pay $2,078,462 in restitution to the Internal Revenue Service (IRS) and the Small Business Administration (SBA).
According to court documents, Toland attempted to obtain more than $13.4 million in COVID‑19 pandemic relief funds by filing multiple false tax returns with the IRS seeking refunds for the Employee Retention Credit and the COVID Sick and Family Leave Credit. Toland used shell companies that had no real employees and no actual business activity to seek more than $11 million in such tax refunds to which he was not entitled. In addition, between 2020 and 2023, Toland used the shell companies to fraudulently obtain a total of more than $1.7 million in Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) funds. All these tax credits and programs were intended to alleviate the economic harm caused by the COVID-19 pandemic on real businesses with real employees and operating expenses.
Of the more than $13.4 million that he sought through false tax returns and fraudulent loan applications, Toland successfully obtained more than $1.95 million. All the funds Toland received went to his own personal enrichment.
“The COVID-19 Fraud Strike Force continues to pursue pandemic fraud, including the abuse of tax credits for personal gain,” said U.S. Attorney Talbert. “Today’s sentence demonstrates that false claims targeting credits meant for real businesses suffering real consequences of the pandemic will be identified and prosecuted.”
“Mr. Toland’s fraudulent and nefarious scheming took aim at funds designated to help both small businesses and American citizens in the midst of a global pandemic,” said IRS Criminal Investigation Oakland Field Office Acting Special Agent in Charge Michael Mosley. “IRS-CI does not and will not sit idly by while financial criminals seek to exploit the American tax system. We are the experts in financial investigations, and we build cases that result in justice.”
This case was the product of an investigation by IRS-Criminal Investigation in collaboration with the IRS’s Nationally Coordinated Investigation Unit with assistance from the SBA Office of Inspector General and the Federal Bureau of Investigation. Assistant U.S. Attorney Denise N. Yasinow prosecuted the case.
This effort is part of a California COVID-19 Fraud Enforcement Strike Force operation, one of five interagency COVID-19 fraud strike force teams established by the U.S. Department of Justice. The California Strike Force combines law enforcement and prosecutorial resources in the Eastern and Central Districts of California and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces use prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds.
Three Sacramento Men Plead Guilty to Fentanyl Pill TraffickingRead the Press Release
SACRAMENTO, Calif. —Jose Guadalupe Lopez-Zamora, 30; Joaquin Alberto Sotelo Valdez, 27; and Jose Luis Aguilar Saucedo, 28, all of Sacramento, pleaded guilty today to fentanyl trafficking and related crimes, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Lopez-Zamora was the leader of a Sacramento-based drug trafficking organization. From at least May 2019 until January 2021, the organization was responsible for importing tens of thousands of fentanyl-laced counterfeit oxycodone “M-30” pills from Mexico and distributing them in northern California and elsewhere. The group also distributed cocaine and methamphetamine. Sotelo Valdez was fentanyl pill distributor for the organization. Aguilar Saucedo sold hundreds of fentanyl pills on each of three separate occasions in March, April, and July 2020.
Lopez-Zamora and Sotelo Valdez each pleaded guilty to conspiracy to distribute and possess with intent to distribute fentanyl, cocaine, and methamphetamine. Lopez-Zamora also pleaded guilty to three counts of distribution of fentanyl, one count of possession with intent to distribute methamphetamine, two counts of possession with intent to distribute fentanyl, and one count of conspiracy to launder money. Sotelo Valdez also pleaded guilty to one count of possession with intent to distribute fentanyl. Aguilar Saucedo pleaded guilty to three counts of distribution of fentanyl.
Eight other co-defendants have pleaded guilty, and seven have been sentenced to terms of imprisonment ranging from 27 months to over 10 years. Co-defendant Alejandro Tello is scheduled to be sentenced on April 22, 2025.
Charges are pending against the following defendants: Rosario Zamora Rojo, Luis Lopez Zamora, Leonardo Flores Beltran, Erika Gabriela Zamora Rojo, and Sandro Escobedo. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Drug Enforcement Administration, with assistance from Homeland Security Investigations, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, the U.S. Postal Inspection Service, the Yuba-Sutter Narcotic and Gang Enforcement Task Force (NET 5), the California Highway Patrol, the Butte Interagency Narcotics Task Force (BINTF), the Tri-County Drug Enforcement Team (TRIDENT), the Sacramento County Sheriff’s Department, the Sacramento Police Department, the Roseville Police Department, the Manteca Police Department, the Yuba City Police Department, and the West Sacramento Police Department. The Justice Department’s Office of International Affairs worked with Mexican authorities to secure the arrest and extradition of Luis Lopez Zamora to the United States from Mexico. Assistant U.S. Attorney David W. Spencer is prosecuting the case.
Lopez-Zamora, Sotelo Valdez, and Aguilar Saucedo are scheduled to be sentenced by U.S. District Judge Dale A. Drozd on March 10, 2025. Lopez-Zamora and Sotelo Valdez face a mandatory minimum of 10 years and a maximum statutory penalty of life in prison. Aguilar Saucedo faces a mandatory minimum of five years and a maximum statutory penalty of 40 years in prison. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about OCDETF, please visit Justice.gov/OCDETF.
Modesto Methamphetamine and Heroin Trafficker Sentenced to 70 Months in PrisonRead the Press Release
SACRAMENTO, Calif. — Lupe Aime Busio-Valencia, 43, of Modesto, was sentenced today by U.S. District Judge John A. Mendez to five years and 10 months in prison for conspiracy to distribute methamphetamine and heroin, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Busio-Valencia and co-defendant Jose Garcia Herrera, 63, of Modesto, were arrested on July 22, 2020, while attempting to deliver 10 pounds of methamphetamine and 3 kilograms of heroin to a drug customer. The drug were concealed within a hidden compartment underneath the driver’s seat.
This case was the product of an investigation by the Homeland Security Investigations with assistance from the Modesto Police Department. Assistant U.S. Attorneys Stephanie Stokman and Justin Lee prosecuted the case.
Garcia Herrera failed to appear for a prior court appearance and is currently a fugitive from justice. The pending charges against him are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Auburn Man Sentenced to 63 Months in Prison for Receipt of Child PornographyRead the Press Release
SACRAMENTO, Calif. — Timothy Durel, 58, of Auburn, was sentenced today by U.S. District Judge Kimberly J. Mueller to five years and three months in prison to be followed by five years of supervised release for receipt of child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between 2012 and 2021, Durel uploaded and shared between email accounts hundreds of visual depictions of minors engaged in sexually explicit conduct. This included images of prepubescent children. When law enforcement searched Durel’s home in 2021, they seized electronic devices and found hundreds of additional images of child pornography.
This case was the product of an investigation by Homeland Security Investigations and the Internet Crimes Against Children Task Force. Assistant U.S. Attorney Roger Yang prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Fresno Man Sentenced to 8 Years in Prison for Possessing a Live Hand Grenade, Ammunition, and MethamphetamineRead the Press Release
FRESNO, Calif. — Eric Feldmann, 39, of Fresno, was sentenced today to eight years and one month for possessing methamphetamine and for being a felon in possession of ammunition and an MKII hand grenade, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Dec. 24, 2023, Feldmann knowingly possessed an MKII hand grenade with a M204A2 Fuze in his car. The grenade was seized by police and destroyed. Feldmann also possessed between 50 and 200 grams of methamphetamine in plastic bags. On Jan. 9, 2024, law enforcement officers seized several rounds of ammunition from Feldmann’s storage locker. Feldmann had been previously convicted a felony and is prohibited from possessing a firearm or ammunition.
This case was the product of an investigation by the Fentanyl Overdose Resolution Team (FORT), the Fresno Police Department, Fresno County Sheriff’s Office, and the Drug Enforcement Administration. Assistant U.S. Attorneys Cody S. Chapple and Justin J. Gilio prosecuted the case.
Three Defendants Indicted on Methamphetamine Trafficking ChargesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a six-count indictment Thursday against Francisco Cornejo-Quezada, 21, of Watsonville; and Shawn Eric Morales Sr., 51, and Renee Michele Hermann, 54, both of Hood, charging all three defendants with conspiracy to distribute methamphetamine and related offenses, U.S. Attorney Phillip A. Talbert announced.
According to court documents, all three defendants are charged with conspiracy to distribute and possess with intent to distribute over 500 grams of methamphetamine. The indictment also charges the defendants with multiple counts of distributing methamphetamine and charges Morales and Hermann with possession with intent to distribute methamphetamine.
This case is the product of an investigation by the Drug Enforcement Administration and Homeland Security Investigations, with assistance from the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Emily G. Sauvageau is prosecuting the case.
If convicted, each defendant faces a minimum statutory penalty of 10 years in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.
Los Angeles Man Pleads Guilty to Money LaunderingRead the Press Release
SACRAMENTO, Calif. — Daniel Hooker, 35, of Los Angeles, pleaded guilty today to conspiracy to commit money laundering, U.S. Attorney Phillip A. Talbert announced.
According to court documents, from August 2023 through March 2024, Hooker and three co‑conspirators conducted multiple financial transactions involving funds they believed to be proceeds of cocaine trafficking. Their belief as to the nature of the funds was based on representations of an individual working at the direction of law enforcement. On two different occasions in 2023 and 2024, Hooker met the individual in a parking lot in Rancho Cordova and accepted a total of $100,000 in cash to be laundered. After those meetings in Rancho Cordova, Hooker wired funds from a bank account he controlled into a bank account designated by the individual in an effort to complete the laundering. In total, the conspirators received approximately $940,000 in purported drug trafficking proceeds. Of that amount, the conspirators laundered approximately $811,000.
This case is the product of an investigation by the IRS Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorneys Matthew Thuesen and Whitnee Goins are prosecuting the case.
U.S. District Judge Dena Coggins is scheduled to sentence Hooker on Feb. 21, 2025. Hooker faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Vallejo Man Charged with Sexual Exploitation of a Minor and Possession of a Visual Depiction of a Minor Engaging in Sexually Explicit ConductRead the Press Release
SACRAMENTO, Calif. — On July 11, 2024, a federal grand jury returned a two-count indictment against John Robert Remlinger, 42, of Vallejo, charging him with sexual exploitation of a minor and possession of visual depiction of a minor engaging in sexually explicit conduct, U.S. Attorney Phillip A. Talbert announced. The indictment was unsealed following Remlinger’s arrest.
According to court documents, between June and August 2021, Remlinger knowingly coerced a minor to engage in sexually explicit conduct, and on Jan. 24, 2023, he possessed visual depictions of a minor engaged in sexually explicit conduct.
This case is the product of an investigation by Homeland Security Investigations. Assistant U.S. Attorney Nicholas M. Fogg is prosecuting the case.
If convicted of sexual exploitation of a minor, Remlinger faces a mandatory minimum sentence of 15 years in prison up to a maximum penalty of 30 years in prison, a lifetime of supervised release, restitution, and a $250,000 fine. If convicted of possession of a visual depiction of a minor engaging in sexually explicit conduct, Remlinger faces a mandatory minimum sentence of five years in prison up to a maximum penalty of 10 years in prison, a lifetime of supervised release, plus restitution and a fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.