Eastern District of California
Press releases recorded for this federal judicial district.
Aryan Brotherhood Prison Gang Member Sentenced to Life in Prison for Murder in Aid of RacketeeringRead the Press Release
SACRAMENTO, Calif. — Pat Brady, 53, of Lake Forest, was sentenced today by U.S. District Judge Kimberly J. Mueller to life in prison for murder in aid of racketeering, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between 2011 and 2016, Aryan Brotherhood (AB) members and associates engaged in racketeering activity, committing multiple acts involving murder, conspiracies to murder, and drug trafficking crimes. AB 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.
According to Brady’s plea agreement, on July 28, 2018, Brady murdered an inmate at High Desert Prison as part of an AB-related killing. Brady admitted that he committed the murder because the victim falsely claimed to be an AB member and had run up a significant drug debt at his previous prison — both violations of the AB’s expected codes of conduct. Brady willfully, deliberately, and with premeditation, murdered the victim in order to maintain his status within the gang.
On Jan. 17, 2024, Brady’s co-defendant in the murder, Jason Corbett, 52, pleaded guilty to the same murder in aid of racketeering. His sentencing is set for Nov. 25, 2024.
In April 2024, following a nine-week trial, a federal jury found three of Brady’s co-defendants guilty of RICO conspiracy, conspiracy to murder, murder in aid of racketeering, and multiple counts of drug trafficking. Ronald Yandell, 61, Danny Troxell, 71, and Billy Sylvester, 55, are scheduled to be sentenced by Judge Mueller on Sept. 11, 2024.
Charges are pending against Kevin MacNamara, 44, of La Palma, and Kathleen Nolan, 69, of Calimesa. A status conference is set for Sept. 23, 2024. The charges against them are only allegations; they 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.
Superseding Indictment Adds Three Defendants and New Charges in “Operation SLO Ride”Read the Press Release
FRESNO, Calif. — A federal grand jury returned a 53-count superseding indictment today adding new charges for Alberto “Beto” Alvarado, Freddy Alvarado, Yerlly Vega, and Roberto Soria-Cuevas, and newly charging Tulare County residents Manuel Diaz, Daniel Alvarado, and Rafael Alcala Jr, for their participation in the drug trafficking and money laundering conspiracies, U.S. Attorney Phillip A. Talbert announced.
The initial indictment in the case charged 28 individuals. The addition of Manual Diaz, Daniel Alvarado, and Rafael Alcala Jr. brings the total number now charged in the case to 31.
According to court documents, beginning in July 2023, investigators gathered evidence regarding individuals involved in the distribution of methamphetamine, fentanyl, and other narcotics in Tulare County using investigative tools that included confidential sources, surveillance, and wiretaps.
Operation SLO Ride ultimately resulted in the dismantling of a criminal organization operating in Tulare County. In March 2024, law enforcement executed numerous search and arrest warrants in a coordinated takedown. In the course of the operation, law enforcement seized more than 936 pounds of methamphetamine, 8.6 pounds of cocaine, 5.5 pounds of heroin, 5.5 pounds of fentanyl, more than $600,000 in currency, and 50 firearms. The 31 individuals now stand charged with various drug trafficking, money laundering, continuing criminal enterprise, and illegal possession of firearms offenses.
The superseding indictment adds charges against Alberto “Beto” Alvarado for operating a continuing criminal enterprise and conspiring to commit money laundering. If convicted, Alberto “Beto” Alvarado faces a mandatory minimum of life in prison.
Freddy Alvarado is additionally charged with conspiring to commit money laundering and international money laundering. Vega is additionally charged with possession of a firearm in furtherance of a drug trafficking offense. Soria-Cuevas is also now charged with conspiring to commit money laundering. Diaz, Alcala, and Daniel Alvarado are each newly charged with conspiring to distribute and possess with the intent to distribute methamphetamine and conspiring to commit money laundering.
According to court documents, Alberto Alvarado, Freddy Alvarado, Daniel Alvarado, Diaz, Vega, Alcala, and Soria-Cuevas conspired to launder the proceeds of narcotics trafficking by transporting and transferring the proceeds from the United States to Mexico.
On April 29, 2024, Francisco Garcia, 28, of Tulare, pleaded guilty to one count of possessing methamphetamine with intent to distribute. Sentencing is scheduled to occur Sept. 30, 2024.
This case is the product of an investigation by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, the U.S. Postal Inspection Service, the Tulare County Sheriff’s Office, Tulare County Tactical Narcotics Team, which is a part of Central Valley California HIDTA, the Tulare Police Department, the Visalia Police Department, the Kings County Sheriff’s Office, the Porterville Police Department, the Woodlake Police Department, the Clovis Police Department, the San Luis Obispo County Sheriff’s Office, the Fresno County Sheriff’s Office, the California Highway Patrol, the California Department of Corrections and Rehabilitation, and the Tulare County District Attorney. Assistant U.S. Attorney Antonio Pataca is prosecuting the case.
If convicted, the defendants face a range of sentences from 10 years in prison to life in prison, and some face mandatory minimum sentences of five and 10 years for drug trafficking offenses. 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.
Sacramento Man Charged with Production, Distribution, and Possession of Child Sexual Abuse MaterialRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment today against Jordan Hughes, 24, of Sacramento, charging him with production, distribution, and possession of child sexual abuse material, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between February and September 2022, Hughes convinced at least two underage victims to send him images and videos depicting themselves engaging in sexually explicit conduct. Hughes also distributed images of child sexual abuse conduct, and, in November 2022, possessed child sexual abuse material, including images of at least four underage victims engaging in sexually explicit conduct.
This case is the product of an investigation by the Internet Crimes Against Children Unit of the Sacramento Valley Hi-Tech Crimes Task Force, which includes the Sacramento County Sheriff’s Department as well as Homeland Security Investigations. Assistant U.S. Attorney Shea J. Kenny is prosecuting the case.
If convicted, Hughes faces a maximum statutory penalty of 30 years in prison and a $250,000 fine for each count of production of child sexual abuse material. 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 U.S. 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 exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.
Corporate President Sentenced to Prison for Multimillion Dollar California Excise Tax SchemeRead the Press Release
SACRAMENTO, Calif. — Rahman Lakhani, of Naperville, Illinois, was sentenced today to four years in prison for a tobacco-related excise tax fraud scheme, U.S. Attorney Phillip A. Talbert announced.
U.S. District Judge Daniel J. Calabretta sentenced Lakhani and his two corporations, N. Ali Enterprises Inc. and 21st Century Distribution Inc., for a total of 20 counts of mail and wire fraud. In addition to Lakhani’s prison term, his companies were each sentenced to three years of probation and all defendants were ordered to pay over $5.9 million in restitution.
According to court documents, Lakhani and the corporate defendants used warehouses in Illinois, Nevada, and California, to move over $25 million worth of other tobacco products (OTP) across the United States and into California. OTP are tobacco products other than cigarettes, such as cigars and chewing tobacco.
As the defendants moved the OTP from state to state, they submitted false excise tax returns to different state regulators that were designed to hide the size and value of the shipments. Ultimately, the OTP was sold into California on false invoices with the misrepresentation that tax had been paid. In fact, Lakhani and the corporate defendants submitted or caused to be submitted false tax returns to the California Board of Equalization (BOE) and the California Department of Tax and Fee Administration (CDTFA). As a result of the fraud, Lakhani and the corporate defendants defrauded the State of California of over $5.9 million.
This fraud allowed Lakhani and the corporate defendants to earn additional profit and to undercut competitors who lawfully paid the excise tax. A large percentage of the proceeds of the California OTP excise tax are used to fund California’s early childhood development program, First 5 California.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives along with the former California State Board of Equalization, sections of which are now the California Department of Tax and Fee Administration. Assistant U.S. Attorneys Rosanne L. Rust and Michael D. Anderson prosecuted the case.
Two Stockton Men Plead Guilty in a Fentanyl and Methamphetamine Pill Trafficking Criminal EnterpriseRead the Press Release
SACRAMENTO, Calif. —Jamaine Dontae Barnes, 42, of Stockton, pleaded guilty on Tuesday to running a continuing criminal enterprise, multiple counts of manufacturing and distributing pills laced with fentanyl, methamphetamine, and other drugs, illegal firearms possession, and international money laundering, U.S. Attorney Phillip A. Talbert announced.
One of Barnes’ subordinates, Kavieo Daeshaun Lee Wiley, 28, of Stockton, also pleaded guilty Tuesday to conspiracy to distribute fentanyl, methamphetamine, heroin, and U-47700 (a synthetic opioid), and possession of a firearm in furtherance of drug trafficking.
According to court documents, from at least September 2015 through May 2019, Barnes led a Stockton-based pill-trafficking operation that regularly made and sold thousands of drug-laced pills. Barnes and his subordinates made the pills using pill presses, which are machines that compress powders into pills of various shapes and sizes. Barnes made pills that appeared to be legitimate prescription pills but in fact contained fentanyl, furanyl fentanyl, heroin, and other synthetic opioids that Barnes mixed into them. Barnes also made pills that appeared to be traditional Ecstasy pills, but in fact contained methamphetamine and other illegal stimulants. For years, Barnes obtained pill pressing equipment, materials, and illegal drugs from China, and at his direction, his subordinates made illegal international money transfers to purchase these materials.
In April and May 2019, investigators obtained a court-authorization for a federal wiretap and intercepted communications over Barnes cellphone. During this wiretap investigation, law enforcement seized thousands of methamphetamine-laced pills. On May 16, 2019, during search warrants executed at multiple locations across Stockton that Barnes and his subordinates used to manufacture, store, and distribute pills, investigators seized two pill press machines and other pill manufacturing equipment and materials; thousands of fentanyl-laced and methamphetamine-laced pills; powders containing fentanyl, methamphetamine, and other illegal drugs; and three firearms possessed by Barnes.
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.
Seven other defendants have pleaded guilty:
- Vincent Isaiah Patterson pleaded guilty and is scheduled to be sentenced on Sept. 24, 2024.
- Johnesha Denae Thompson pleaded guilty; sentencing is set for Nov. 12, 2024.
- Kadrena Latrice Watts pleaded guilty; sentencing is set for Nov. 5, 2024.
- Jeremy Jerome Barnett pleaded guilty and was sentenced to 57 months in prison.
- Chevele Bernard Richardson pleaded guilty; sentencing is set for Nov. 5, 2024.
- Tashawn Terrell Dickerson pleaded guilty and was sentenced to 46 months in prison.
- Lamont Montez Thibodeaux pleaded guilty; sentencing is set for Nov. 12, 2024.
Charges are pending against Jamar Deontae Barnes, who is scheduled for a jury trial on Dec. 2, 2024. The charges are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Jamaine Barnes is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Dec. 3, 2024. Jamaine Barnes faces a minimum of 25 years in prison and a maximum of life in prison. Wiley is scheduled to be sentenced by Judge Drozd on Nov. 12, 2024. Wiley faces a maximum statutory penalty of life in prison and a mandatory minimum of 15 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.
Stockton Man Sentenced to 10 Years in Prison for Heroin and Fentanyl TraffickingRead the Press Release
SACRAMENTO, Calif. — Jose Cruz Ivan Aispuro, 39, of Stockton, was sentenced Tuesday by U.S. District Judge John A. Mendez to 10 years in prison and ordered to forfeit $42,066 to the United States for conspiracy to distribute heroin and fentanyl and the distribution of fentanyl, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between November 2018 and December 2019, Aispuro and co‑defendant Frank Guzman, of Stockton, conspired to distribute and possess with intent to distribute at least 1 kilogram of heroin and at least 400 grams of counterfeit pharmaceutical pills containing fentanyl. As part of this conspiracy, Aispuro supplied heroin that Guzman sold to an undercover agent and another person on three occasions and supplied 500 counterfeit oxycodone pills containing fentanyl that Guzman also sold to the undercover agent. Approximately 4.5 kilograms of heroin and $42,066 in cash were seized from Aispuro’s residence. Approximately 10,000 counterfeit oxycodone pills containing fentanyl and 2.8 kilograms of heroin were seized from Guzman’s residence.
This case was the product of an investigation by the Drug Enforcement Administration with assistance from the U.S. Marshals Service and the San Joaquin Metropolitan Drug Task Force. Assistant U.S. Attorney David W. Spencer prosecuted the case.
Guzman also pleaded guilty to conspiracy to distribute heroin and fentanyl and was sentenced to 10 years in prison by Judge Mendez on Dec. 12, 2023.
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.
Texas Man Pleads Guilty to Possession of a Firearm as a FelonRead the Press Release
SACRAMENTO, Calif. — William Lesley, 34, of Dallas, Texas, pleaded guilty today to being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, law enforcement officers conducted a parole search in Galt, at the residence of Lesley’s co-defendant, Dexter Weeks, a known felon on parole. While clearing the residence, officers encountered Lesley as he was coming out of a bedroom. In the bedroom where Lesley had exited, officers found a loaded Ruger pistol located in a backpack on the floor near the bed. Weeks and Lesley are prohibited from possessing firearms or ammunition because they each have multiple state felony convictions.
This case is the product of an investigation by the Sacramento Sheriff’s Office, the Federal Bureau of Investigation, and the FBI’s Safe Streets Task Force. Assistant U.S. Attorney Haddy Abouzeid is prosecuting the case.
Lesley is scheduled to be sentenced on Nov. 5, 2024, by U.S. District Judge Dale A. Drozd. Weeks pleaded guilty on Jan. 30, 2024, and is scheduled for sentencing on Aug. 6, 2024. Both defendants face a maximum statutory penalty of 15 years in prison and a $250,000 fine. 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.
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. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Kern County Man Sentenced for Assaulting a U.S. Postal CarrierRead the Press Release
FRESNO, Calif. — Marco Pergis, 42, of Wasco, was sentenced on July 26, 2024, by U.S. District Judge Charles R. Breyer to three years in prison for assault on a federal employee with bodily injury, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on June 21, 2023, Pergis assaulted a United States postal carrier by striking him in the face, causing serious bodily injury. Pergis admitted to assaulting the postal carrier without any provocation.
This case was the product of an investigation by the U.S. Postal Inspection Services and the Kern County Sheriff’s Department. Assistant U.S. Attorneys Antonio Jose Pataca and Chan Hee Chu prosecuted the case.
Stockton Man Pleads Guilty to Attempted Sexual Exploitation of a MinorRead the Press Release
SACRAMENTO, Calif. — Elmer Yusay Ngo, 28, of Stockton, pleaded guilty today to one count of attempted sexual exploitation of a minor, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Ngo utilized social media to sexually exploit female minors. This sexual exploitation included attempting to coerce, entice, and persuade the minors to produce child pornography for Ngo.
This case is the product of an investigation by the Federal Bureau of Investigation and the Internet Crimes Against Children Task Force, with assistance from state and local police departments nationwide. Assistant United States Attorney Kristin F. Scott is prosecuting the case.
Ngo is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on Nov. 4, 2024. Ngo faces a minimum statutory penalty of 15 years in prison, a maximum statutory penalty of 30 years in prison, a $250,000 fine, supervised release and restitution. 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 U.S. 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 exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.
Kern County Woman Pleads Guilty to 6-Year, $825,000 Credit Card Fraud SchemeRead the Press Release
FRESNO, Calif. — Karina Arceo, 34, of Wasco, pleaded guilty today to conspiracy to commit bank fraud and aggravated identity theft charges for her role in a long-running credit card fraud scheme, U.S. Attorney Phillip A. Talbert announced.
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 over 125 victims. They stole much of the PII from patient files at health care providers in Kern County where Arceo worked. Leyva previously pleaded guilty and was sentenced to five years and five months in prison.
Arceo and Leyva used the stolen PII to open thousands of fraudulent credit cards in the victims’ identities. They used false identification documents to open the credit cards and provided billing addresses, phone numbers, and email addresses over which they had control so that any communications related to the credit cards would go to them instead of the victims. They then made hundreds of thousands of dollars in fraudulent purchases on the credit cards in Kern County and elsewhere. The fraudulent purchases included home appliances, automobile accessories, designer clothing, tickets to concerts and sporting events, and travel, among other items.
Arceo and Leyva often resold 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.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Joseph Barton and Arelis Clemente are prosecuting the case.
Arceo is scheduled to be sentenced on Nov. 6, 2024. She faces a maximum penalty of 30 years in prison and $250,000 fine for the conspiracy charge, and a mandatory two years in prison, consecutive to other counts, for the identity theft charge. Any sentence, however, would be determined at the discretion of the court after consideration of the applicable statutory factors and Federal Sentencing Guidelines, which take into account a number of variables.
Kern County Man Sentenced to 12 Years in Prison for Receiving and Distributing Child PornographyRead the Press Release
FRESNO, Calif. — Marcus Tatum, 32, of Bakersfield, was sentenced today to 12 years and five months in prison, to be followed by 10 years of supervised release, and ordered to pay $45,000 in restitution, for receipt and distribution of child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between February 2012 and March 2018, Tatum used a laptop computer to knowingly receive and distribute over 600 files containing visual depictions of children engaging in sexually explicit conduct. The files contained images of children under the age of 12 engaging in sexually explicit conduct, as well as engaging in sado-masochistic conduct.
This case was the product of an investigation by the Federal Bureau of Investigation, Homeland Security Investigations, and the Kern County Sheriff’s Office. Assistant U.S. Attorney Brittany M. Gunter 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 U.S. 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 exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.
Fresno Resident Pleads Guilty to Distributing MethamphetamineRead the Press Release
FRESNO, Calif. — Dario Mata-Manzo, 32, of Fresno, pleaded guilty today to distribution of methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in June 2022, Mata-Manzo negotiated for the sale of crystal methamphetamine for $1,200 per pound and subsequently delivered 8 pounds of the drug to undercover officers in Fresno.
This case is the product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Fresno County Sheriff’s Office and High Impact Investigation Team (HIIT), a High Intensity Drug Trafficking Area Initiative (HIDTA), which consists of personnel from the California Department of Justice, the Fresno Police Department, the Fresno County Sheriff’s Office, the Fresno County District Attorney’s Office, the California Highway Patrol, the Madera County Sheriff’s Office, the Tulare County Sheriff’s Office, the Kings County Sheriff’s Office, and the California Department of Corrections and Rehabilitation. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
Mata-Manzo is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on Nov. 20, 2024. Mata-Manzo faces a maximum statutory penalty of life in prison, a mandatory minimum prison term of 10 years, and a $10 million 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 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.
Bakersfield Residents Plead Guilty to Drug Trafficking Offenses and One Pleads Guilty to a Violation of the Animal Welfare ActRead the Press Release
FRESNO, Calif. — Two Bakersfield residents pleaded guilty today, U.S. Attorney Phillip A. Talbert announced.
Jorge Calderon-Campos, 43, pleaded guilty to conspiracy to distribute methamphetamine and heroin and also pleaded guilty to unlawful possession of animals for an animal fighting venture in violation of the Animal Welfare Act.
Jose Angel Beltran-Chaidez, 68, pleaded guilty to possession with intent to distribute heroin.
According to court documents, on March 30, 2021, Calderon-Campos, who goes by the name “Americano,” supplied 26 pounds of methamphetamine to co-defendants Mark Garcia, 24, of Lamont, and Alberto Gomez-Santiago, 38, a Mexican national. Between Jan. 16 and April 26, 2022, Calderon-Campos also possessed roosters for the purpose of having the roosters participate in an animal fighting venture, in and affecting interstate and foreign commerce. During a search of his residence on April 26, 2022, law enforcement officers found numerous hens and roosters, various cockfighting implements, to include razors and spurs, and six cockfighting trophies, including several with plates inscribed with “Team Amkno” (shorthand for “Team Americano”). At Calderon-Campos’s stash house, law enforcement officers found 14 hens and 77 roosters, cockfighting leashes, a cockfighting trophy, various types of syringes containing substances believed to be related to cockfighting supplements, and multiple pill bottles containing suspected cockfighting vitamins. The majority of the roosters at the property had been modified for cockfighting.
On Jan. 27, 2022, Jose Beltran-Chaidez, at the direction of his brother Antonio Beltran-Chaidez, 54, a Mexican national, delivered more than 2 pounds of heroin to Calderon-Campos for distribution to Calderon-Campos’s customers. However, when Calderon-Campos was unable to sell the drug, Beltran retrieved it from Calderon-Campos and was in possession of the heroin when stopped by a CHP officer for a traffic violation.
U.S. District Judge Jennifer L. Thurston is scheduled to sentence Calderon-Campos on Oct. 21, 2024, and Jose Beltran-Chaidez on Nov. 4, 2024. For the drug offenses, they face a mandatory statutory minimum penalty of 10 years and a maximum statutory penalty of life in prison, along with a $10 million fine. Calderon-Campos faces up to five years in prison for the Animal Welfare Act violation, a $250,000 fine, and forfeiture of the roosters and hens used to breed fighting roosters. 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.
Antonio Beltran-Chaidez previously entered a guilty plea and is scheduled for sentencing on Aug. 26, 2024. Gomez-Santiago pleaded guilty and was sentenced to four years and nine months in prison. The two remaining co-defendants have requested a jury trial, which is set for Jan. 28, 2025. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by Homeland Security Investigations and the Drug Enforcement Administration, with assistance from the U.S. Department of Agriculture Office of Inspector General, the U.S. Marshals Service, the U.S. Customs and Border Protection, the U.S. Secret Service, the Bureau of Land Management, the Kern County High Intensity Drug Trafficking Area Task Force, the California Highway Patrol, the California Department of Corrections and Rehabilitation, the Kern County Sheriff's Office, the Kern County Probation Department, and the Bakersfield Police Department. Assistant U.S. Attorney Karen Escobar is 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 OCDETF, please visit Justice.gov/OCDETF.
Romanian National Sentenced for Using Debit Card Skimming Devices on ATMs to Steal Nearly $150,000 from Victims Throughout CaliforniaRead the Press Release
FRESNO, Calif. — Christos Mavrokelos, 37, was sentenced today by U.S. District Judge Charles R. Breyer to 18 months in prison and ordered to pay $75,000 in restitution for illegally using counterfeit debit cards and skimming devices, U.S. Attorney Phillip A. Talbert announced.
According to court records, from July 2021 through November 2023, in Fresno and Madera Counties and elsewhere, Mavrokelos knowingly and with intent to defraud, used counterfeit debit cards that contained victims’ stolen account information to make unauthorized cash withdrawals from the victims’ accounts. The victims’ account information was stolen through the use of skimming devices, which are devices that can be surreptitiously installed on bank ATMs and card readers that are used to record victims’ information.
In total, Mavrokelos made unauthorized cash withdrawals on at least 40 victims’ accounts. The withdrawals were made from banks whose deposits were insured by the Federal Deposit Insurance Corporation. Mavrokelos’s misconduct resulted in a total loss of approximately $149,000.
This case is the product of an investigation by the FBI and the Clovis Police Department. Assistant U.S. Attorneys Joseph D. Barton and Cody C. Chapple prosecuted the case.
Kern County Man Sentenced for Distributing ExplosivesRead the Press Release
FRESNO, Calif. — Joseph Roy Vigneault, 21, of Lake Isabella, was sentenced today to 18 months in prison for distributing explosives to a non‑licensed person, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in May 2023, Vigneault and his co-defendant, Michael Roy Anglin, 22, of Wofford Heights, sold and delivered six full boxes and one partial box of Hydromite 880 weighing approximately 350 pounds to a non-licensed person. Vigneault knew or had reason to believe that the Hydromite 880 had been stolen. The boxes containing the explosives were labeled “Explosive, Blasting, Type E” and “Blasting Agent.” The sticks of Hydromite 880 were also individually labeled “Danger” and “Explosive.” Hydromite 880 is one and a half times more powerful than dynamite. Austin Powder West LLC, a licensed explosive distributor, confirmed that 295 sticks of Hydromite 880 went missing from its Lake Isabella storage facility sometime between May 6 and May 11, 2023. The missing explosives included the boxes that Vigneault sold. The value of the unrecovered explosives is $7,603. Vigneault agreed to make restitution to Austin Powder in that amount.
Anglin has pleaded guilty and is scheduled for sentencing on Oct. 21, 2024. He faces a maximum statutory penalty of 10 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 is the product of an investigation by the Federal Bureau of Investigation with assistance from the Kern County Sheriff’s Office. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
Fresno County Methamphetamine Dealer SentencedRead the Press Release
FRESNO, Calif. — Ivan Sigmond, 47, of Clovis, was sentenced today to 11 years in prison for possessing with intent to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Aug. 28, 2020, after identifying Sigmond as a source of methamphetamine supply in the Clovis area, law enforcement officers obtained and executed a search warrant at Sigmond’s residence where they found nearly 30 pounds of pure methamphetamine, along with two handguns and an assault firearm.
This case was the product of an investigation by the Drug Enforcement Administration and the Clovis Police Department. Assistant U.S. Attorney Karen Escobar 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 OCDETF, please visit Justice.gov/OCDETF.
Admera Health Agrees to Pay over $5 Million to Settle False Claims Act Allegations of Kickbacks to Third Party MarketersRead the Press Release
SACRAMENTO, Calif. – Admera Health LLC has agreed to pay the United States $5,389,648 to resolve allegations that it violated the False Claims Act by paying commissions to third party independent contractor marketers in violation of the Anti-Kickback Statute (AKS). Admera will pay an additional $147,851 to individual states for claims paid to Admera by state Medicaid programs.
Admera is a New Jersey-based company that provides biopharmaceutical research services for health care institutions and provided clinical laboratory testing services to health care providers relating to pharmacogenetics until 2021. Pharmacogenetics analyzes how a patient’s genetic attributes affect their response to therapeutic drugs. The settlement announced today resolves allegations that, from Sept. 1, 2014, through May 21, 2021, Admera made commission-based payments to independent contractor marketers in return for recommending or arranging for the ordering of genetic testing services in violation of the AKS. The AKS prohibits offering or paying remuneration in return for arranging or recommending items or services covered by Medicare and other federally funded programs.
“By entering into kickback arrangements, health care companies can cause providers to make medical decisions that are motivated by financial gain rather than the patient’s best interest,” said U.S. Attorney Phillip A. Talbert. “Our office is committed to ensuring the accountability of participants in the health care system who put their own financial needs ahead of patient welfare.”
“The law prohibits health care providers, including those that provide laboratory services, from paying kickbacks in the form of commissions to third parties as an inducement to generate business,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Department is committed to holding accountable those who engage in kickback arrangements that undermine the integrity of federal healthcare programs.”
“Kickbacks can negatively influence medical decision making and corrupt the legitimate doctor-patient relationship,” said Special Agent in Charge Steven J. Ryan of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “This settlement demonstrates HHS-OIG’s commitment to identifying and holding accountable those who allegedly engage in unlawful financial relationships at the expense of Medicare patients and the taxpayer.”
As part of the settlement, Admera has admitted that it made millions of dollars of commission payments to independent-contractor marketers to induce them to arrange for or recommend that health care providers order and refer clinical laboratory services to Admera, including genetic tests, that were reimbursable by Medicare and/or Medicaid, that it paid marketers through arrangements that took into account the volume and value of genetic testing referrals, and that Admera was informed that the payment of commissions to independent contractors did not comply with the AKS but continued to enter into such contracts.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by relators, Sunil Wadhwa and Ken Newton, co-founders of Financial Halo LLC/MedXPrime, a former third-party marketer for Admera. 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 U.S. ex rel. Wadhwa and Newton v. Admera Health, LLC et al (E.D. Cal.). Relators will receive $862,343 of the proceeds from the settlement.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the United States Attorney’s Office for the Eastern District of California, with substantial investigative assistance from HHS-OIG, the Federal Bureau of Investigation, and the Department of Veterans Affairs, Office of Inspector General. The matter was handled by Assistant U.S. Attorney Colleen Kennedy for the Eastern District of California and Civil Division Fraud Section Trial Attorney Elizabeth J. Kappakas.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The claims resolved by the settlement are allegations only and there has been no determination of liability.
admera_settlement_fully_executed_07.12.24.pdfAdmera Health Agrees to Pay over $5M to Settle False Claims Act Allegations of Kickbacks to Third Party MarketersRead the Press Release
Admera Health LLC (Admera) has agreed to pay the United States $5,389,648 to resolve allegations that it violated the False Claims Act by paying commissions to third party independent contractor marketers in violation of the Anti-Kickback Statute (AKS). Admera will pay an additional $147,851 to individual states for claims paid to Admera by state Medicaid programs.
Admera is a New Jersey-based company that provides biopharmaceutical research services for healthcare institutions and provided clinical laboratory testing services to healthcare providers relating to pharmacogenetics until 2021. Pharmacogenetics analyzes how a patient’s genetic attributes affect their response to therapeutic drugs. The settlement announced today resolves allegations that, from Sept. 1, 2014, through May 21, 2021, Admera made commission-based payments to independent contractor marketers in return for recommending or arranging for the ordering of genetic testing services in violation of the AKS. The AKS prohibits offering or paying remuneration in return for arranging for or recommending items or services covered by Medicare and other federally funded programs.
“The law prohibits health care providers, including those that provide laboratory services, from paying kickbacks in the form of commissions to third parties as an inducement to generate business,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to holding accountable those who engage in kickback arrangements that undermine the integrity of federal healthcare programs.”
“By entering into kickback arrangements, health care companies can cause providers to make medical decisions that are motivated by financial gain rather than the patient’s best interest,” said U.S. Attorney Phillip A. Talbert for the Eastern District of California. “Our office is committed to ensuring the accountability of participants in the health care system who put their own financial needs ahead of patient welfare.”
“Kickbacks can negatively influence medical decision making and corrupt the legitimate doctor-patient relationship,” said Special Agent in Charge Steven J. Ryan of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “This settlement demonstrates HHS-OIG’s commitment to identifying and holding accountable those who allegedly engage in unlawful financial relationships at the expense of Medicare patients and the taxpayer.”
As part of the settlement, Admera has admitted that it made millions of dollars of commission payments to independent-contractor marketers (the Marketers) to induce them to arrange for or recommend that healthcare providers order and refer clinical laboratory services to Admera, including genetic tests, that were reimbursable by Medicare and/or Medicaid, that it paid Marketers through arrangements that took into account the volume and value of genetic testing referrals, and that Admera was informed that the payment of commissions to independent contractors did not comply with the AKS but continued to enter into such contracts.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by relators, Sunil Wadhwa and Ken Newton, co-founders of Financial Halo LLC/MedXPrime, a former third-party marketer for Admera. 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 U.S. ex rel. Wadhwa and Newton v. Admera Health, LLC et al (E.D. Cal.). Relators will receive $862,343 of the proceeds from the settlement.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Eastern District of California, with substantial assistance from HHS-OIG.
Trial Attorney Elizabeth J. Kappakas of the Civil Division’s Fraud Section and Assistant U.S. Attorney Colleen Kennedy for the Eastern District of California handled the matter.
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).
The claims resolved by the settlement are allegations only. There has been no determination of liability.
SettlementRiverside County Chiropractor Agrees to Pay $180,000 to Resolve Allegations of Health Care FraudRead the Press Release
FRESNO, Calif. — Chiropractor Kevin Michael Brown, of Menifee, has agreed to pay $180,000 to resolve allegations that he violated the False Claims Act by submitting hundreds of false claims to Medicare for surgically implanted neurostimulators, U.S. Attorney Phillip A. Talbert announced today.
As part of the settlement, Brown stipulated that, through his companies, Revive Medical of San Diego and Revive Medical LLC, located in Oklahoma City, he submitted claims to Medicare for surgically implanted neurostimulator devices, even though his companies did not perform surgery or implant neurostimulators. Brown stipulated that he and his companies instead taped a disposable “electroacupuncture” device called “Stivax” to their patients’ ears. Stivax devices do not require surgical implantation and are not reimbursable by Medicare. The United States alleges that this conduct violated the False Claims Act. In addition to paying the civil settlement, Brown agreed to a five-year exclusion period from Medicare, Medicaid, and all other federal health care programs.
“In addition to the clinics in San Diego and Oklahoma City, Revive Medical personnel performed Stivax procedures at a pain clinic in Chico, which is in the Eastern District of California,” said U.S. Attorney Talbert. “As this case demonstrates, we are committed to vigorously pursuing those who defraud Medicare and will use all tools available to us, including civil enforcement remedies. The investigation into false claims involving Stivax is ongoing.”
“Health care professionals who fraudulently bill Medicare for services never actually provided divert taxpayer funding meant to pay for medically necessary services for Medicare enrollees,” stated Special Agent in Charge Steven J. Ryan of the U.S. Department of Health and Human Services, Office of the Inspector General. “HHS-OIG will continue to work with our law enforcement partners to protect the integrity of federal health care programs and those served by those programs.”
The investigation was conducted with the U.S. Department of Health and Human Services, Office of the Inspector General. Assistant U.S. Attorney Emilia P. E. Morris handled the case for the United States.
Vallejo Man Pleads Guilty to Assaulting Federal Agents with a Firearm and VehicleRead the Press Release
SACRAMENTO, Calif. — Sean Thomas Delapp, 37, of Vallejo, pleaded guilty today to assaulting federal officers with a deadly weapon, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Delapp assaulted two FBI special agents by pursuing them with his car, pulling up alongside them, and aiming a firearm at them through the window, making a recoil motion with the firearm. A subsequent search warrant at his residence resulted in the discovery of a Glock 29 firearm, ammunition, and various firearm parts. Delapp is prohibited from possessing firearms or ammunition because he was previously convicted of a felony evasion offense.
This case was the product of an investigation by the Federal Bureau of Investigation, the California Highway Patrol, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Adrian T. Kinsella is prosecuting the case.
Delapp is scheduled to be sentenced on October 31, 2024. He 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.
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.
Gang Member Sentenced to 2 Years in Prison for Illegal Firearms TraffickingRead the Press Release
FRESNO, Calif. — Juan Banda Jr., 44, of Selma, was sentenced yesterday by U.S. District Judge Dale A. Drozd to 2 years in prison for engaging in the business of manufacturing and dealing firearms without a license, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between Feb. 1, 2022, and March 15, 2023, Banda and Arthur Garcia, 22, of Selma, engaged in the business of dealing and manufacturing firearms. He engaged in the repetitive purchase and resale of firearms for the principal purpose of profit and did not possess a valid Federal Firearms License. Banda admitted membership in the Vario Selma Rifa Bulldog gang when he was arrested.
On March 15, 2023, a search warrant was executed at Banda’s residence and the following was seized: three completed AR-15 style rifles, a Springfield XD 9, a gray and black privately-manufactured handgun, four privately manufactured rifle lower receivers with trigger assemblies, as well as firearm parts and ammunition. Messages revealed dozens more firearms previously manufactured and trafficked by Banda, many of which were earmarked for distribution to gang members.
This case is the product of an investigation by the FBI, the Multi-Agency Gang Enforcement Consortium (MAGEC), and the Fresno Police Department. Assistant U.S. Attorney Robert Veneman-Hughes is prosecuting the case.
Garcia is scheduled for a status conference on Aug. 28, 2024. The charges against him are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Chicago Man Pleads Guilty to Investment FraudRead the Press Release
SACRAMENTO, Calif. — Gary Klopfenstein, 62, of Chicago, Illinois, pleaded guilty today to committing wire fraud in relation to an investment scheme, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Klopfenstein served as the Chief Wealth Officer of a company called Zolla Financial, which was an investment company operated by individuals in Shasta County and Butte County. From approximately June 2019 through March 2020, Klopfenstein carried out a fraudulent scheme to steal investor funds from Zolla. Through false representations, Klopfenstein persuaded Zolla executives to invest $2.45 million of Zolla investor funds in purported short-term notes related to the purchase and sale of jet fuel, which they referred to variously as jet fuel notes, jet fuel contracts, and a gas lease investment. No such notes existed. Klopfenstein used the Zolla funds to pay personal expenses and invest in a real estate development.
This case is a product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Matthew Thuesen is prosecuting the case. U.S. District Judge Troy L. Nunley is scheduled to sentence Klopfenstein on January 16, 2025. Klopfenstein 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.
West Sacramento Man Sentenced to Ten Years in Prison for Fentanyl Pill and Cocaine TraffickingRead the Press Release
SACRAMENTO, Calif. — Christian Anthony Romero, 28, of West Sacramento, was sentenced yesterday by United States District Judge Dale A. Drozd to 10 years in prison for conspiracy distribute and possess with intent to distribute fentanyl pills and cocaine, United States Attorney Phillip A. Talbert announced.
According to court documents, Romero distributed thousands of fentanyl-laced counterfeit oxycodone M-30 pills and cocaine on behalf of a Sacramento-based drug trafficking organization. From at least May 2019 through January 2021, the organization imported fentanyl M-30 pills from Mexico and distributed them, as well as cocaine and methamphetamine, throughout northern California and in Nevada. The organization was led by Jose Lopez-Zamora in Sacramento and his Mexico-based brother and drug trafficking partner, Luis Lopez Zamora.
On Sept. 4, 2020, Romero sold approximately 1,000 fentanyl M-30 pills to an undercover officer for $9,000. During October through December 2020, evidence obtained during court-ordered wiretaps of Jose Lopez-Zamora and Luis Lopez Zamora’s cellphones revealed that Romero stored fentanyl pills and cocaine at his residence in West Sacramento and sold thousands of fentanyl pills on behalf of the organization. Evidence from the wiretap investigation also revealed that Romero contributed money to, and was kept apprised of, large loads of fentanyl M-30 pills that the organization imported from Mexico, including two loads that were seized by law enforcement on Nov. 26, 2020, (about 11,000 pills) and Dec. 5, 2020, (7,727 pills).
On Jan. 13, 2021, law enforcement executed a federal search warrant at Romero’s West Sacramento residence, where he lived with his girlfriend and two young children. During the search, agents found more than 1,000 fentanyl M-30 pills in the same room as a loaded 9 mm Ruger pistol, and 7.62 caliber rifle, and a .223 caliber rifle.
This case was 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. Assistant United States Attorney David W. Spencer is prosecuting the case.
Seven other defendants have pleaded guilty:
- Rudi Jean Carlos pleaded guilty and, on Oct. 11, 2022, was sentenced to 10 years and one month in prison.
- Jason Lamar Lee pleaded guilty and, on Oct. 11, 2022, was sentenced to eight years and seven months in prison.
- Javier Hernandez pleaded guilty and, on Nov. 8, 2022, was sentenced to two years and eight months in prison.
- Christopher Kegan Williams pleaded guilty, and on Dec. 14, 2021, was sentenced to two and a half years in prison.
- Baudelio Vizcarra Jr., pleaded guilty, and on Jan. 24, 2023, was sentenced to two and a half years in prison.
- Mateo Elias Guerrero-Gonzales pleaded guilty and, on Oct. 11, 2022, was sentenced to two years and three months in prison.
- Alejandro Tello pleaded guilty and is scheduled to be sentenced on Sept. 3, 2024.
Charges are pending against the following defendants: Jose Guadalupe Lopez-Zamora, Luis Lopez Zamora, Leonardo Flores Beltran, Joaquin Alberto Sotelo Valdez, Erika Gabriela Zamora Rojo, Jose Luis Aguilar Saucedo, Rosario Zamora Rojo, and Sandro Escobedo. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Luis Lopez Zamora was extradited from Mexico to the United States on April 17, 2024, following his arrest by Mexican authorities on a warrant based on a U.S. extradition request.
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.
Two Men Plead Guilty to Assaulting Correctional Officer at United States Penitentiary AtwaterRead the Press Release
FRESNO, Calif. — Daniel Higgins, 39, of Morro Bay, California, and Austin Noblitt, 35, of Portland, Oregon, pleaded guilty today to Assault on a Federal Officer or Employee, United States Attorney Phillip A. Talbert announced.
According to court documents, Higgins and Noblitt assaulted a Federal Bureau of Prisons Correctional Officer at United States Penitentiary (USP) Atwater in Merced County. As a result of the assault, the Correctional Officer suffered multiple lacerations to the face and was transported to the local hospital for treatment.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Chan Hee Chu and Jeffrey A. Spivak are prosecuting the case.
Higgins and Noblitt are scheduled to be sentenced on October 7, 2024. Higgins and Noblitt face 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.
Rancho Cordova Man Sentenced to Fifteen Years in Prison for Drug Importation and Money Laundering OffensesRead the Press Release
SACRAMENTO, Calif. — Adan Navarro, 30, of Rancho Cordova, was sentenced yesterday by United States District Judge Dale A. Drozd to 15 years in prison for conspiracy to import heroin, methamphetamine, and fentanyl pills, conspiracy to distribute and possess with intent to distribute heroin, methamphetamine, and fentanyl pills, and conspiracy to launder money to Mexico, United States Attorney Phillip A. Talbert announced.
According to court documents, on June 2, 2020, Navarro coordinated and received a $20,000 cash payment on behalf of a Mexico-based drug trafficker in order to pay down a multi-kilogram heroin debt and to facilitate future larger shipments of heroin. On July 24, 2020, U.S. border agents seized a drug load that Navarro partially owned and coordinated. The load was seized immediately after it crossed from Mexico into the United States and contained approximately 21 pounds of pure methamphetamine, 2 kilograms of heroin, and 977 fentanyl-laced counterfeit prescription pills. Following this seizure, Navarro and an associate arranged to send additional money to a Mexico-based source of supply to coordinate a new shipment of drugs.
This case was the product of an investigation by Homeland Security Investigations, the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Tri-County Drug Enforcement Team (TRIDENT), with assistance from Customs and Border Protection, the California Highway Patrol, the California Department of Corrections and Rehabilitation, the Rancho Cordova Police Department, the Citrus Heights Police Department, and the El Dorado County Sheriff’s Office. Assistant United States Attorney David W. Spencer is prosecuting the case.
Co-defendant Lionel Chavez pled guilty on March 21, 2023, and is scheduled to be sentenced on August 6, 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. This 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.
Los Angeles County Man Pleads Guilty to Identity Theft Offenses Committed While in Federal PrisonRead the Press Release
FRESNO, Calif. — Sean Lamont Wyatt, 46, of Los Angeles County, pleaded guilty today to identity theft and aggravated identity theft, United States Attorney Phillip A. Talbert announced.
According to court documents, in June 2021, 27 pages of victims’ personally identifiable information were found in Wyatt’s assigned inmate bunk at the federal prison in Atwater. Investigation revealed that while Wyatt was incarcerated, he used a contraband phone to call victims’ banks and creditors. In the phone calls, Wyatt used the victims’ names, dates of birth, addresses, and social security numbers to falsely identity himself and to add himself as an authorized user on the victims’ accounts. Wyatt did this to boost his own credit. Wyatt then used his boosted credit to apply for new credit lines.
This case was the product of an investigation by the U.S. Postal Inspection Service. Assistant United States Attorney Brittany M. Gunter is prosecuting the case.
Wyatt is scheduled to be sentenced on October 7, 2024. Wyatt faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for identity theft and a mandatory consecutive sentence of two years in prison for aggravated identity theft. 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.
Fresno Man Sentenced for Illegally Possessing AmmunitionRead the Press Release
FRESNO, Calif. —Emmanuelle Padilla, 28, was sentenced to 63 months in custody today for being a felon in possession of ammunition and a probation violation, United States Attorney Phillip A. Talbert announced.
According to court documents, Padilla was found in possession of ammunition on Oct. 24, 2022. He has prior felony convictions for possessing controlled substances while armed and being a felon in possession of a firearm, and he is therefore prohibited from possessing firearms and ammunition.
This case was the product of an investigation by the Fresno Police Department and Federal Bureau of Investigation. Assistant United States Attorney Arin C. Heinz 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.
Fresno Man Pleads Guilty to Embezzling $1.49 Million from his Employer in Nearly Decade Long SchemeRead the Press Release
FRESNO, Calif. — Gabriel Ruiz De Chavez, 46, of Fresno, pleaded guilty today to one count of wire fraud for defrauding his employer out of over $1.49 million, United States Attorney Phillip A. Talbert announced.
According to court documents, from 2004 to 2020, Ruiz De Chavez worked as an operations manager. 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 to his employer for signature, and would then deposit the checks into his own 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. Between 2012 and 2019, Ruiz De Chavez created over 600 fake invoices and checks, causing at least $1,491,000 to be transferred into his account from his employer.
This case is the product of an investigation by the Federal Bureau of Investigation and the Fresno Police Department. Assistant United States Attorney Cody S. Chapple is prosecuting the case.
Ruiz De Chavez is scheduled to be sentenced on November 6, 2024. He 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.
Bitwise Founders Plead Guilty to $115 Million Fraud SchemeRead the Press Release
FRESNO, Calif. — Irma Olguin, Jr., 43, and Jake Soberal, 38, the founders and leaders of the failed Fresno-based start-up company, Bitwise Industries, pleaded guilty today to one count of conspiring to commit wire fraud and one count of wire fraud, United States Attorney Phillip A. Talbert announced. They admitted to defrauding investors, lenders, and others out of $115,000,000.
According to court records, Olguin and Soberal founded Bitwise in 2013. The company then grew to have three business lines: (1) technology workforce training program, (2) technology consulting service, and (3) a real estate arm that bought, renovated, and leased commercial properties. The company promised to create jobs for underserved groups of people, revitalize blighted urban areas, and show that such a project could be highly profitable.
By early 2022, Bitwise had raised over $75,000,000 through Series A and B investment rounds, and the company had grown to 800 employees and apprentices across multiple offices and states. But the company was not making a significant profit and was running low on funds.
Thereafter, Olguin and Soberal conspired to mislead investors, lenders, and others into believing that Bitwise was excelling when it was instead failing. They fabricated financial information in investor materials and altered and forged other financial records to inflate the company’s revenues, cash balances, and other financial markers.
The following are illustrative examples of Olguin and Soberal’s fraud:
- In a February 2022 presentation and July 2022 prospectus that were circulated to investors, Olguin 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 minimal;
- In June and July 2022, Olguin 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 get the lender to loan Bitwise millions more dollars;
- In a March 2023 presentation circulated to investors, Olguin 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 was minimal;
- Also in March 2023, Olguin 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% higher than was true;
- 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.
As a result of Olguin and Soberal’s false and fraudulent representations, Bitwise received $115,000,000 in investments and loans to which the company was not entitled. The ill-gotten money went towards paying the company’s payroll, outfitting its office spaces, and repaying debts owed to prior investors and lenders, among other business expenses.
Olguin and Soberal admitted that they used their positions as Bitwise’s co-Chief Executive Officers to conceal their fraud from the company’s board of directors and others at the company. They also admitted to using sophisticated means to deceive and cheat investors and lenders out of their money.
This case is the product of an investigation by the Federal Bureau of Investigation and the IRS Criminal Investigation. Assistant United States Attorneys Joseph Barton and Henry Carbajal III are prosecuting the case.
Olguin and Soberal are scheduled to be sentenced on Nov. 6, 2024. They face maximum statutory penalties of 20 years in prison and a $250,000 fine for each of the conspiracy to commit wire fraud and wire fraud counts. That makes for a total maximum penalty of 40 years in prison and a $500,000 fine. They also agreed to pay full restitution. 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.
Manager of Marijuana Cultivation Site in Shasta Trinity National Forest Sentenced to 10 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — Custodio Ibarra Nunez, 42, of Merced, was sentenced today to 10 years in prison and ordered to pay $17,930 in restitution to the United States, for conspiracy to cultivate marijuana, marijuana cultivation, and depredation of public lands in the Shasta-Trinity National Forest, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between May 23 and July 8, 2019, Nunez was a manager in a conspiracy to cultivate over 4,000 marijuana plants south of Rays Peak on public lands in the Shasta-Trinity National Forest with three other co-conspirators: Francisco Madrigal Magana, Mario Alberto Lopez Pena, and an uncharged 17-year-old. Agents arrested Magana and Lopez at the site. Magana and Pena were later convicted and sentenced to 18 months and 24 months in prison, respectively, for conspiracy to manufacture marijuana and depredation of public lands and resources.
Nunez was not present at the illegal cultivation site during the law enforcement raid. Subsequent investigation led to his identification, and revealed that he continued to engage in illegal marijuana cultivation with the uncharged minor in Merced. A search of his residence resulted in the discovery of additional marijuana plants, marijuana cultivation tools and supplies, vacuum sealing devices, and packaging material, including evidence of USPS tracking receipts for shipments across the county. Nunez was indicted and arrested in February 2020, and has remained in custody since.
This case was the product of an investigation by the U.S. Forest Service, the Trinity County Sheriff’s Office, the California Department of Fish and Wildlife, the Bureau of Land Management, the Trinity County District Attorney’s Office the Merced Area Gang and Narcotics Team, the Merced County Sheriff’s Office, the Atwater Police Department, and the Redding Police Department. Assistant U.S. Attorney Adrian T. Kinsella prosecuted the case.
Carmichael Man Pleads Guilty to Sexual Exploitation of a MinorRead the Press Release
SACRAMENTO, Calif. — Sam Moss Kerfoot, 27, of Carmichael, pleaded guilty today to sexual exploitation of a minor, United States Attorney Phillip A. Talbert announced.
According to court documents, in April 2022, Kerfoot used the online application Omegle to meet teenage girls in the Sacramento area, including Victim 1, who was a minor. On multiple occasions, Kerfoot picked up the victim from school and took her off campus to have sexual intercourse with her, and Kerfoot took a video of this sexual exploitation. Law enforcement searched Kerfoot’s phone and located 73 videos of child sexual abuse material. Law enforcement also searched Kerfoot’s SnapChat account and learned that Kerfoot had used Snapchat to send and receive child pornography.
This case is the product of an investigation by the Sacramento Valley Hi-Tech Crimes Task Force Internet Crimes Against Children unit including the Sacramento County Sheriff’s Office, with assistance from the Federal Bureau of Investigation and Homeland Security Investigations. Assistant U.S. Attorney Emily Sauvageau is prosecuting the case.
Kerfoot is scheduled to be sentenced by Judge Dale A. Drozd on October 22, 2024. Kerfoot was previously convicted for crimes related to the sexual abuse of a minor, and accordingly is subject to a 25-year mandatory minimum sentence. Kerfoot faces a maximum statutory penalty of 50 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.
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 U.S. 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 exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.
Fresno Man Sentenced to 25 Years in Prison for Sexual Exploitation of a Minor and Receipt of Child PornographyRead the Press Release
FRESNO, Calif. — Nicolas Adan Guereca, 25, of Fresno was sentenced today by U.S. District Judge Jennifer L. Thurston to 25 years in prison for sexual exploitation of a minor and receipt of child pornography, U.S. Attorney Phillip A. Talbert announced. The court also ordered Guereca to pay a total of $60,200 in financial assessments and scheduled a hearing on restitution for September 16, 2024.
The prison sentence will be followed by a lifetime term of supervised release during which time his access to minors, computers, and the internet will be restricted. Guereca was also ordered to register as a sex offender.
According to court documents, on approximately July 30, 2019, Guereca used a cellphone and an Instagram account with username jayriggs_14 to locate and communicate with a minor victim. During a series of messages, Guereca coerced the victim to engage in sexually explicit conduct and create visual depictions of that conduct for the purpose of transmitting them to Guereca. Investigators later learned that Guereca had used multiple phones and Yahoo, Snapchat, and Instagram accounts to communicate with minor females. Guereca received images of minors, some as young as 12 years of age, engaged in sexually explicit conduct from approximately June 2019 through July 2020.
This case is a product of an investigation by the Central California Internet Crimes Against Children Task Force, specifically Homeland Security Investigations, the Clovis and Fresno Police Departments, and the Fresno County Sheriff’s Office. Assistant U.S. Attorney David L. Gappa 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 exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.
South Lake Tahoe Man Convicted of Impersonating Federal OfficersRead the Press Release
SACRAMENTO, Calif. — After a three-day trial, a federal jury found Anton Andreyevich Iagounov, 38, of South Lake Tahoe, guilty of four counts of impersonating a federal officer, U.S. Attorney Phillip A. Talbert announced.
Iagounov pretended to be a federal law enforcement agent by creating and sending counterfeit investigative documents, which he signed in the name of a fictional federal agent, seeking highly protected information from the Department of Defense.
“The defendant impersonated federal officers and tried multiple times to obtain protected information using fake court documents,” said U.S. Attorney Talbert. “Many federal agencies like NASA have devoted law enforcement officers, and we will continue to partner with those agencies to ensure their officers are not illegally impersonated.”
“Usurping public trust, Mr. Iagounov pretended to be an agent of the National Aeronautics and Space Administration’s (NASA) Office of Inspector General creating fake investigative documents in an attempt to obtain sensitive government information,” said Michael Graham, NASA-OIG Acting Assistant Inspector General for Investigations. “This verdict demonstrates the commitment of NASA-OIG, the USAO, and our law enforcement partners to aggressively investigate, prosecute, and hold accountable those who undermine justice.”
On July 5, 2022, Iagounov sent a search warrant he had created to the U.S. Capitol Police, falsely claiming it was signed by a Special Agent of NASA Office of Inspector General (NASA-OIG) and appearing to be authorized by a U.S. District Court judge for the District of Columbia. The Capitol Police investigated the document, determined it was fake, and referred it to NASA-OIG for further investigation.
On July 11, 2022, Iagounov again pretended to be the same fictional NASA-OIG agent, and sent the warrant to the U.S. District Court for the Central District of California. This time, he sent it without a judge’s signature, indicating it was for an “emergency filing” and required a judge’s signature. He sent it from an email address designed to look like it was from a United States government agency, but which the defendant owned and had named to look like a government agency’s internet domain.
On July 18, 2022, Iagounov again sent the fake search warrant, purporting to be signed by the same fictitious NASA-OIG agent. He sent it to the U.S. Bankruptcy Court for the Middle District of Georgia, again indicating that it was for an emergency filing and needed a judge’s signature immediately.
Finally, on July 24, 2022, Iagounov faxed a letter, under the name of a real NASA-OIG supervising agent, to the U.S. District Court for the Northern District of Florida. In that letter, he claimed to be following up on the warrant, stating that an “exigent circumstance” required a judge’s signature immediately. The faxed letter included an anonymous email address for the agent that actually belonged to Iagounov. Several days earlier, on July 15, Iagounov had sent his warrant to the U.S. Bankruptcy Court for the Northern District of Florida, but had received no response.
In each case, given the apparently sensitive nature of the materials the defendant’s warrant sought, the receiving personnel for the Courts referred the matter to NASA-OIG for review and investigation.
This case is the product of an investigation by the Federal Bureau of Investigation and the NASA Office of Inspector General, with assistance by the South Lake Tahoe Police Department and the Carson City Sheriff’s Office. Assistant U.S. Attorney James Conolly and Audrey Hemesath are prosecuting the case.
Iagounov is scheduled to be sentenced by U.S. District Judge Daniel J. Calabretta on Oct. 17, 2024. Iagounov faces a maximum statutory penalty of three years in prison and a $250,000 fine, per count of conviction. 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.
Sacramento Resident Indicted for Possession of Stolen Mail and Intent to DefraudRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Stephanie Lynn Fahlgren, 47, of Sacramento, charging her with possession of stolen mail, unlawfully possessing a mail key or lock, and unauthorized possession of 15 or more access devices, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on March 20, 2024, Fahlgren was in possession of stolen mail, mail keys or locks, and more than 15 debit or credit cards, which are counterfeit and unauthorized access devices. Fahlgren possessed those devices with intent to defraud her victims.
This case is the product of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorney Alex Cárdenas is prosecuting the case.
If convicted, Fahlgren faces a maximum statutory penalty of five years in prison for possession of stolen mail, 10 years in prison for possession of mail key or lock and 20 years in prison for unlawful possession of 15 or more access devices. Each count carries a fine of up to $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.
Armed Stockton Drug Trafficker Sentenced to 14 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — Jesus Iribe, 28, of Stockton, was sentenced today by U.S. District Judge Daniel J. Calabretta to 14 years in prison for possession with intent to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Feb. 17, 2022, Iribe was stopped by law enforcement officers. Iribe had a loaded Glock pistol in his pocket and a kilogram of cocaine in his pickup truck. The officers later conducted a search at Iribe’s house and found 10 pounds of methamphetamine, 5 pounds of cocaine, 3 pounds of marijuana, counterfeit M-30 oxycodone pills, and five more firearms.
This case was the product of an investigation by the Federal Bureau of Investigation and the Drug Enforcement Administration, with assistance from the San Joaquin County District Attorney’s Office, the Stockton Police Department, the San Joaquin County Sheriff’s Office, and the Sacramento County Sheriff’s Office. Assistant U.S. 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 OCDETF, please visit Justice.gov/OCDETF.
Paxful Inc. Co-Founder Pleads Guilty to Conspiracy to Fail to Maintain Effective Anti-Money Laundering ProgramRead the Press Release
SACRAMENTO, Calif. – The co-founder and former chief technology officer of Paxful Inc. pleaded guilty today to conspiracy to fail to maintain an effective anti-money laundering (AML) program.
According to court documents, from July 2015 to June 2019, Artur Schaback, 36, of Tallin, Estonia, used Paxful Inc. to operate Paxful, an online peer-to-peer virtual currency platform and money‑transmitting business where customers negotiated for and traded virtual currency for a variety of other items, including fiat currency, prepaid cards, and gift cards. During this time, Schaback allowed customers to open accounts and trade on Paxful without gathering sufficient know-your-customer (KYC) information; marketed Paxful as a platform that did not require KYC; presented fake AML policies to third parties that he knew were not, in fact, implemented or enforced at Paxful; and failed to file a single suspicious activity report, despite knowing that Paxful users were perpetrating suspicious and criminal activity.
As a result of his failure to implement AML and KYC programs, Schaback made Paxful available as a vehicle for money laundering, sanctions violations, and other criminal activity, including fraud, romance scams, extortion schemes, and prostitution.
Schaback pleaded guilty to conspiracy to willfully fail to establish, develop, implement, and maintain an effective AML program as required by the Bank Secrecy Act. He is scheduled to be sentenced on Nov. 4, 2024, by U.S. District Judge Kimberly J. Mueller and faces a maximum penalty of five 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. Schaback will also resign from Paxful Inc.’s Board of Directors.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Phillip A. Talbert for the Eastern District of California; Tatum King of Homeland Security Investigations; and Acting Special Agent in Charge Michael Mosley of IRS Criminal Investigation Oakland Field Office made the announcement.
This case is the product of an investigation by Homeland Security Investigations and IRS Criminal Investigation. Bank Integrity Unit Deputy Chief and National Cryptocurrency Enforcement Team Deputy Director Kevin Mosley and Trial Attorneys Emily Cohen, Victor Salgado, and Caylee Campbell of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), and Assistant U.S. Attorney Matthew Thuesen for the Eastern District of California are prosecuting the case.
MLARS’ Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Paxful Inc. Co-Founder Pleads Guilty to Conspiracy to Fail to Maintain Effective Anti-Money Laundering ProgramRead the Press Release
The co-founder and former chief technology officer (CTO) of Paxful Inc. pleaded guilty today to conspiracy to fail to maintain an effective anti-money laundering (AML) program.
According to court documents, from July 2015 to June 2019, Artur Schaback, 36, of Tallin, Estonia, used Paxful Inc. to operate Paxful, an online peer-to-peer virtual currency platform and money transmitting business where customers negotiated for and traded virtual currency for a variety of other items, including fiat currency, pre-paid cards, and gift cards. During this time, Schaback allowed customers to open accounts and trade on Paxful without gathering sufficient know-your-customer (KYC) information; marketed Paxful as a platform that did not require KYC; presented fake AML policies to third parties that he knew were not, in fact, implemented or enforced at Paxful; and failed to file a single suspicious activity report, despite knowing that Paxful users were perpetrating suspicious and criminal activity.
As a result of his failure to implement AML and KYC programs, Schaback made Paxful available as a vehicle for money laundering, sanctions violations, and other criminal activity, including fraud, romance scams, extortion schemes, and prostitution.
Schaback pleaded guilty to conspiracy to willfully fail to establish, develop, implement, and maintain an effective AML program as required by the Bank Secrecy Act. He is scheduled to be sentenced on Nov. 4 and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Schaback will also resign from Paxful Inc.’s Board of Directors.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Phillip A. Talbert for the Eastern District of California; Special Agent in Charge Tatum King of Homeland Security Investigations (HSI) San Francisco; and Acting Special Agent in Charge Michael Mosley of the IRS Criminal Investigation (IRS-CI) Oakland Field Office made the announcement.
HSI and IRS-CI are investigating the case.
Bank Integrity Unit Deputy Chief and National Cryptocurrency Enforcement Team Deputy Director Kevin Mosley and Trial Attorneys Emily Cohen, Victor Salgado, and Caylee Campbell of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and Assistant U.S. Attorney Matthew Thuesen for the Eastern District of California are prosecuting the case.
MLARS’ Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Sacramento Man Charged with Serial Production of Child Sexual Abuse MaterialRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a five-count indictment on June 6, 2024, against Sean Ryan Angelo Grace, 32, of Sacramento, charging him with producing images and videos depicting child sexual abuse material, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between August 2021 and August 2023, Grace convinced at least five underage female victims to send him images and videos depicting themselves engaging in sexually explicit conduct.
This case is the product of an investigation by the Internet Crimes Against Children Unit of the Sacramento Valley Hi-Tech Crimes Task Force, which includes the Folsom Police Department. Assistant U.S. Attorney Sam Stefanki is prosecuting the case.
If convicted, on each count, Grace faces a mandatory minimum penalty of 15 years in prison and a maximum statutory penalty of 30 years in prison, as well as 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.
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 U.S. 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 exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.
Madera County Man Sentenced to 10 Years in Prison for Supplying Fentanyl that Caused Death to a Person Under 21 Years of AgeRead the Press Release
FRESNO, Calif. — Yovany Ramirez, 29, of Madera, was sentenced today by U.S. District Judge Jennifer L. Thurston to 10 years in prison for distribution of fentanyl to a person under age 21, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Aug. 13, 2021, Ramirez distributed the fentanyl pills that caused the death of D.D., a 19-year-old Madera man. D.D. suffered a fatal overdose just hours later. Upon further investigation, law enforcement recovered additional evidence that Ramirez was dealing drugs and firearms.
This case was the product of an investigation by Homeland Security Investigations and the Madera Police Department. Assistant U.S. Attorney Antonio J. Pataca prosecuted 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.
Sacramento County Man Indicted for Attempted Coercion and Enticement of a MinorRead the Press Release
SACRAMENTO, Calif. — A single count indictment was unsealed following the arrest of Mark Sigl, 62, of Antelope, that charges him with attempted coercion and enticement to engage in sexual activity, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in March 2024, Sigl attempted to persuade, coerce, and entice a minor to engage in sexual activity including oral copulation.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Zulkar Khan is prosecuting the case.
If convicted, Sigl faces a mandatory minimum of 10 years in prison, a maximum of life in prison, and a fine of up to $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.
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 exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.
Recidivist Sacramento Sex Offender Sentenced to 17.5 Years in Prison for Distributing and Possessing Child PornographyRead the Press Release
SACRAMENTO, Calif. — Michael Joseph Taylor, 39, of Sacramento, was sentenced today by U.S. District Judge Daniel J. Calabretta to 17 years and six months in prison to be followed by 20 years of supervised release for distributing and possessing child sexual abuse material, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in 2022 and 2023, Taylor used Reddit and Facebook Messenger to distribute multiple images depicting the sexual exploitation of children. Taylor also solicited a person on the internet whom he thought was the mother of daughters, aged four and six years old, to send him explicit images of her purported children. During this time period, Taylor possessed images and videos depicting child sexual abuse in two Google Drive accounts that he controlled.
Taylor’s criminal history includes at least nine prior convictions, including for failing to register as a sex offender in multiple jurisdictions and for attempted sexual abuse of a minor in Oregon. At the time he engaged in this criminal conduct, Taylor was on federal supervised release in Sacramento following a 2021 federal conviction for failing to register as a sex offender.
This case was the product of an investigation by the Internet Crimes Against Children Unit of the Sacramento Valley Hi-Tech Crimes Task Force, which includes the Sacramento County Sheriff’s Office. Assistant U.S. Attorney Sam Stefanki 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 exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.
Former Department of Defense Employee Sentenced for Assaulting a U.S. Military Member in KoreaRead the Press Release
SACRAMENTO, Calif. – A former Department of Defense civilian employee was sentenced today to one year and eight months in prison for assaulting a U.S. military member in July 2020.
U.S. Attorney Phillip A. Talbert; Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Special Agent Andrew D. Franz of the U.S. Air Force Office of Special Investigations, Osan Air Base Korea; and Special Agent in Charge Sid Patel of the FBI Sacramento Field Office made the announcement.
According to court documents, Gerald Leon Ray III, 27, of Lathrop, California, intentionally struck the victim in the face near Osan Air Base, a U.S. military installation in the Republic of Korea. The assault caused the victim to fall to the ground strike his head on the pavement and suffer serious bodily injury. The evidence showed that, without immediate medical attention, which he received, the victim could have died. The victim’s injuries included a broken jaw, brain hemorrhage, and ongoing physical and mental health symptoms. At the time, Ray was employed in the Republic of Korea by the Defense Commissary Agency, a Department of Defense agency, on Osan Air Base.
The charge was brought under the Military Extraterritorial Jurisdiction Act (MEJA), which establishes U.S. jurisdiction over certain offenses committed abroad by, among others, civilian employees of the Armed Forces.
Ray previously pleaded guilty on March 21 in the Eastern District of California to assault resulting in serious bodily injury.
The U.S. Air Force Office of Special Investigations and the FBI investigated this case, with assistance from the U.S. Army’s Criminal Investigation Division and the U.S. Marshals Service in connection with the arrest, initial detention, and transport of Ray.
Trial Attorney Marie Zisa of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Heiko P. Coppola for the Eastern District of California prosecuted the case.
Former Department of Defense Employee Sentenced for Assaulting a U.S. Military Member in KoreaRead the Press Release
A former Department of Defense civilian employee was sentenced today to one year and eight months in prison for assaulting a U.S. military member in July 2020.
According to court documents, Gerald Leon Ray III, 27, of Lathrop, California, intentionally struck the victim in the face near Osan Air Base, a U.S. military installation in the Republic of Korea. The assault caused the victim to fall to the ground, strike his head on the pavement, and suffer serious bodily injury. The evidence showed that, without immediate medical attention, which he received, the victim could have died. The victim’s injuries included a broken jaw, brain hemorrhage, and ongoing physical and mental health symptoms. At the time, Ray was employed in the Republic of Korea by the Defense Commissary Agency, a Department of Defense agency, on Osan Air Base.
The charge was brought under the Military Extraterritorial Jurisdiction Act (MEJA), which establishes U.S. jurisdiction over certain offenses committed abroad by, among others, civilian employees of the Armed Forces.
Ray previously pleaded guilty on March 21 in the Eastern District of California to assault resulting in serious bodily injury.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Phillip A. Talbert for the Eastern District of California; Special Agent Andrew D. Franz of the U.S. Air Force Office of Special Investigations, Osan Air Base Korea; and Special Agent in Charge Sid Patel of the FBI Sacramento Field Office made the announcement.
The U.S. Air Force Office of Special Investigations and FBI investigated this case, with valuable assistance from the U.S. Army’s Criminal Investigation Division and U.S. Marshals Service in connection with the arrest, initial detention, and transport of Ray.
Trial Attorney Marie Zisa of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Heiko P. Coppola for the Eastern District of California prosecuted the case.
Tehama County Man Pleads Guilty to Online Enticement of a Minor for Sexual PurposesRead the Press Release
SACRAMENTO, Calif. — Eduardo Castillo, 39, of Corning, pleaded guilty today to one count of online enticement of a minor for sexual purposes, U.S. Attorney Phillip A. Talbert announced.
Castillo had previously fled to Mexico to avoid prosecution; however, he was returned to the United States in August 2023 thanks to the collaboration of the FBI, Mexican law enforcement officials, and Mexican immigration officials.
According to court documents, between July 13, 2020, and Aug. 27, 2020, Castillo used a cellphone and the internet to entice at least five minor victims into sending him images and videos of themselves engaging in sexually explicit conduct.
During that timeframe, Castillo posed as one or more teenage girls on social media platforms such as Snapchat and Instagram. Using images of teenage girls that he had downloaded from the internet, Castillo initiated chats and then exchanges of images with his male victims. Castillo then asked for child sexual abuse material in return, assuring his victims that the images and videos would be deleted. In reality, Castillo screen-recorded the videos and images and saved them on his devices.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Denise N. Yasinow is prosecuting the case.
Castillo is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on Sept. 9, 2024. Castillo faces a mandatory minimum of 10 years in prison, a maximum statutory penalty of life 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 exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.
Tahoe City Resident Pleads Guilty to Smuggling Injurious Amphibians into the United StatesRead the Press Release
SACRAMENTO, Calif. — Andrew Laughlin, 47, of Tahoe City, pleaded guilty today to one count of smuggling goods into the United States, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Laughlin acted as a “middleman” in an international amphibian smuggling ring. In a conversation with an undercover agent, Laughlin admitted that he participated in the ring in order to acquire hard-to-find newts. He shipped or received at least four packages of amphibians, including packages to or from individuals located in Hong Kong and Sweden. The packages were falsely labeled as items including a “toy car,” “rubber toys,” or “a ceramic art piece.” In reality, the boxes contained live animals including Eastern Box turtles, spotted turtles, fire belly newts, Asian warty newts, and newts native to California. Certain of the defendant’s shipments contained injurious species prohibited from being imported into the United States because their introduction could harm the ecosystems and natural resources of the United States. A search warrant executed on the defendant’s residence uncovered 81 live newts of various species. Some seized newts tested positive for Bd, a virulent fungi which originated in Asia and is spread through the illegal pet trade. Scientists estimate that Bd has caused significant declines in the populations of more than 500 species, more than 90 of which are presumed extinct.
This case is the product of an investigation by the U.S. Fish and Wildlife Service. Assistant U.S. Attorney Katherine T. Lydon is prosecuting the case.
Laughlin is scheduled to be sentenced by U.S. District Judge William B. Shubb on Oct. 7, 2024. Under the plea agreement, Laughlin agrees to pay restitution for the costs of caring for and testing the seized newts. He also agrees as part of his plea agreement to undertake a voluntary public education campaign at his kayaking store about the harms of illegal amphibian trafficking. 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.
Several of the newts seized via search warrant from Laughlin’s residence.
Arizona Man Pleads Guilty to Attempted Transportation of a Minor with Intent to Engage in Criminal Sexual ActivityRead the Press Release
SACRAMENTO, Calif. — Robert Frenchie McGriff, 44, of Mesa, Arizona, pleaded guilty today to attempted transportation of a minor with intent to engage in criminal sexual activity, U.S. Attorney Phillip A. Talbert announced.
According to court documents, from March 2019 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 is the product of an investigation by the Stanislaus County Sheriff’s Department’s Special Prosecutions Unit and Homeland Security Investigations. Assistant U.S. Attorneys Whitnee Goins and Shea Kenny are prosecuting the case.
McGriff is scheduled to be sentenced by U.S. District Judge Kimberly Mueller on Sept. 9, 2024. McGriff faces a mandatory minimum sentence of 10 years in prison, a maximum statutory penalty of life 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 exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.
Yosemite National Park Rape ChargedRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Nathan Baptista, 36, charging him with aggravated sexual abuse, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on May 31, 2024, Baptista forcibly raped and strangled a fellow Yosemite Hospitality employee after meeting her that night.
This case is the product of an investigation by the National Park Service. Assistant U.S. Attorney Arin C. Heinz is prosecuting the case.
If convicted, Baptista faces a maximum statutory penalty of life 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.
Tracy Man Pleads Guilty to Bank Fraud and ID Theft in Mail Theft ConspiracyRead the Press Release
SACRAMENTO, Calif. — Cameron Pope, 30, of Tracy, pleaded guilty today to bank fraud and aggravated identity theft, United States Attorney Phillip A. Talbert announced.
According to court documents, Pope entered into a conspiracy to steal mail from the U.S. Postal Service. Pope and others stole from cluster mailboxes throughout Northern California, including throughout Placer County and Sacramento County. From the stolen mail, the conspirators obtained identifying information and financial information from California residents. Pope and the conspirators then digitally altered checks and forged account holder signatures to negotiate and deposit checks. Pope and the conspirators stole thousands of pieces of mail from California residents, including checks totaling over $200,000.
This case is the product of an investigation by the U.S. Postal Inspection Service, with assistance from the police departments of Citrus Heights, Folsom, Rancho Cordova, Roseville, and Tracy. Assistant U.S. Attorney Jessica Delaney is prosecuting the case.
Pope is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on Sept. 19, 2024. Pope faces a maximum statutory penalty of 30 years in prison and a $1 million fine for bank fraud and a mandatory consecutive sentence of two years in prison for aggravated identity theft. 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.
Placer County Man Pleads Guilty to Sexual Exploitation Offense Against a MinorRead the Press Release
SACRAMENTO, Calif. — Ryan Davidek, 40, of Lincoln, pleaded guilty today to transportation of a minor with intent to engage in criminal sexual activity, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in 2016, Davidek began a sexual relationship with a middle school child who he had met online. Over the course of several years, Davidek booked hotel rooms and traveled across state lines, as well as transported the victim from another state to the Eastern District of California, to commit criminal sexual conduct.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Alexis Klein and Christina McCall are prosecuting the case.
Davidek is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on Oct. 3, 2024. Davidek faces a mandatory minimum of 10 years in prison and a maximum statutory penalty of life in prison, a $250,000 fine, restitution as determined by the court, and a lifetime term of supervised release. 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 exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.
Executives for Fresno-Based Business American Labor Alliance Convicted of Multi-Million Dollar Fraud Following Five-Week TrialRead the Press Release
FRESNO, Calif. — Following a 19-day trial, on Tuesday, a jury convicted Fresno residents Marcus Asay, 68; Antonio Gastelum, 53; and their company, Agricultural Contracting Services Association dba American Labor Alliance (ALA), of committing a multi-year pension fraud scheme, U.S. Attorney Phillip A. Talbert announced.
The jury also convicted Asay and ALA of committing separate workers’ compensation and hardship exemption fraud schemes. The hardship exemption fraud scheme involved a supposed exemption from the Affordable Care Act’s requirement that people obtain health insurance or pay a significant shared responsibility payment when they file their taxes. Finally, the jury convicted Asay of laundering money that he received from the pension fraud scheme.
According to court documents and evidence presented at trial, Asay was the founder and chairman of ALA, and Gastelum was the company’s Chief Operating Officer, Chief Financial Officer, and Compliance Officer. Gastelum is also the former city manager for the City of Parlier. From 2011 through 2019, the defendants offered three sham products: retirement plan, workers’ compensation coverage, and hardship exemption.
Pension Fraud Scheme
For the pension fraud scheme, Asay, Gastelum, and ALA falsely represented to over 3,000 people that they would protect and invest their retirement money through a 401(k) Plan when, in fact, they used the money for improper business and personal expenses. The improper expenses included restaurants, travel, credit cards, rare coins, transfers to Asay’s personal retirement account, online companion websites, and rent for Asay’s lakefront house in Fresno. The defendants then covered up the fact that the retirement money was gone by taking money the company received from the workers’ compensation fraud scheme and holding those funds out as pension funds. The loss caused by the pension fraud scheme was over $750,000.
Workers’ Compensation Fraud Scheme
For the workers’ compensation fraud scheme, Asay and ALA falsely represented that national insurers backed the workers’ compensation coverage that the company offered in several states, including California. The defendants did so by listing the national insurers on the certificates of insurance and policy declarations that the company issued to customers. The accuracy of the certificates of insurance and policy declarations was important to the customers because they needed to present these items to their own customers and regulators as proof of having workers’ compensation coverage in order to continue doing business. When government authorities began investigating the workers’ compensation fraud scheme, the defendants sent letters to customers telling them not to cooperate. The loss caused by the workers’ compensation fraud scheme was over $2,250,000.
Hardship Exemption Fraud Scheme
For the hardship exemption fraud scheme, Asay and ALA falsely represented that for a few hundred dollars they could provide people with an exemption that would protect them from The Affordable Care Act’s shared responsibility payment for not having health insurance when, in fact, only government agencies could issue such exemptions. Moreover, the exemptions were free to those who qualified.
This case is the product of an investigation by the U.S. Department of Labor’s Employee Benefits Security Administration and Office of Labor-Management Standards, the Federal Bureau of Investigation, the IRS Criminal Investigation, and the Social Security Administration Office of Inspector General. Assistant U.S. Attorneys Michael Tierney, Joseph Barton, and Stephanie Stokman are prosecuting the case.
The defendants are scheduled to be sentenced on Oct. 21, 2024, by U.S. District Judge Dale A. Drozd. Asay and Gastelum face up to 20 years in prison for each count of conviction as well as maximum fines ranging from $250,000 to $500,000 per count. ALA faces up to an $8.5 million fine. 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.