Eastern District of California

FRESNO, Calif. — Devin Michael Cuellar, 29, of Oakhurst, was sentenced today to five years and three months in prison for being a felon in possession of a sawed-off shotgun and ammunition while squatting on private property in Yosemite National Park, U.S. Attorney Phillip A. Talbert announced.

According to court documents, during the summer of 2021, Cuellar broke into a private residence on Koon Hollar Road in Wawona within Yosemite National Park and resided there for several months without permission of the owner. During that time, the residence was trashed and stolen items were found. Cuellar possessed a sawed-off shotgun and ammunition that were found in the residence. Cuellar was previously convicted of carjacking and possessing controlled substances for sale and is prohibited from possessing firearms and ammunition.

This case was the product of an investigation by the National Park Service with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, the California Department of Corrections and Rehabilitation, the California Department of Justice’s Bureau of Forensic Services, and the Madera County Sheriff’s Office. Assistant U.S. Attorney Karen Escobar 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, Calif. —  Jose Santana, 47, of Shafter, was sentenced to 17 years and six months in prison for possession with intent to distribute fentanyl and heroin, U.S. Attorney Phillip A. Talbert announced.

According to court documents, on Nov. 16, 2021, law enforcement executed a federal search warrant on Santana’s motel room in Bakersfield, and also searched Santana’s vehicle with his consent. As a result, law enforcement seized about 2.5 kilograms of fentanyl, 2.5 kilograms of heroin, two firearms, and approximately $5,000 in cash.

This case is the product of an investigation by the Drug Enforcement Administration and the Bakersfield Police Department. Assistant U.S. Attorney Justin J. Gilio 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, Calif. — After a five–day trial, a federal jury found Leticia Tyshalle Marie Reed, 47, of Sacramento, guilty Monday of six counts of making false claims to the Internal Revenue Service, U.S. Attorney Phillip A. Talbert announced. The trial was held before U.S. District Judge Daniel J. Calabretta.

According to evidence presented at trial, Reed was a paid tax preparer who was registered with the IRS. In 2014 and 2015, Reed prepared and submitted federal income tax returns for Sacramento-based clients, relating to tax years 2013 and 2014. These tax returns requested tax refunds to which the clients were not entitled. Reed deliberately manipulated the reported income on each tax return by either inflating it or fabricating it altogether, in order to qualify her clients for the maximum refundable tax credits available. Based on these falsehoods, each return that Reed submitted sought thousands of dollars in tax refunds from the IRS. At times, the refunds requested were almost half of the annual income claimed. Reed would then take a substantial portion of any tax refunds that issued as compensation for preparing her clients’ Form 1040s.

This case is the product of an investigation by the Internal Revenue Service Criminal Investigation. Assistant U.S. Attorneys Shelley D. Weger and Kristin F. Scott are prosecuting the case.

Reed is scheduled to be sentenced by Judge Calabretta on Feb. 1, 2024. Reed faces a maximum statutory penalty of five years in prison and a $250,000 fine for each of the six counts. 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, Calif. — Jordan T. Piper, 38, of Placerville, was sentenced today to 15 years in prison to be followed by seven and a half years of supervised release for sexual exploitation of a minor, U.S. Attorney Phillip A. Talbert announced.

According to court documents, in 2019, Piper made approximately 30 surreptitious recordings of a minor victim while living in Groveland. Piper created screenshots from surreptitious video recordings that focused on the minor victim’s genitals and pubic area. During the execution of a search warrant, law enforcement found approximately 433 nude images of the minor victim on Piper’s cellphone.

This case was the product of an investigation by the El Dorado County Sheriff’s Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Roger Yang prosecuted the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.

FRESNO, Calif. — Luis Eduardo Sanchez-Azpeitia, 46, a Mexican national who was working in Sequoia National Park on a work visa, pleaded guilty today to abusive sexual contact with a female co-worker, U.S. Attorney Phillip A. Talbert announced. 

According to court documents, on July 31, 2023, Sanchez-Azpeitia entered the victim’s cabin in Sequoia National Park and committed non-consensual acts of abusive sexual contact, including touching her breasts, inner thighs, and vagina. The victim did not consent to any of the defendant’s sexual conduct, repeatedly told the defendant no, and tried to make him stop his sexual advances.

This case is the product of an investigation by the National Park Service with assistance from the Federal Bureau of Investigation. Assistant U.S. Attorney Katrina Brownson and Karen Escobar are prosecuting the case.

Sanchez-Azpeitia is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on Feb. 26, 2024. Sanchez-Azpeitia faces a maximum statutory penalty of two 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.

SACRAMENTO, Calif. — After a six-day trial, a federal jury found Henry Benson, 42, of Vallejo, guilty on Thursday of conspiracy to distribute and manufacture methamphetamine-laced pills, four counts of distributing or possessing with intent to distribute methamphetamine-laced pills, and possessing a firearm in furtherance of a drug trafficking crime, U.S. Attorney Phillip A. Talbert announced.

According to court documents and evidence presented at trial, from January 2015 until his arrest in February 2019, Benson made and sold thousands of methamphetamine-laced pills. He made the pills using pill presses, which are machines that compress powders into pills of various shapes and sizes. Benson made pills to look like traditional Ecstasy pills—colorful, candy-like pills in the shape of cartoon characters, well-known company logos, and other popular designs. On two occasions in July 2018, Benson’s co-conspirator, Rafael Ruiz, sold thousands of methamphetamine-laced pills to an undercover agent in furtherance of the conspiracy. On Feb. 7, 2019, agents searched Benson’s living quarters, which were in the back rooms of a licensed elder-care facility in Vallejo, and found a pill press, methamphetamine-laced pills, bags of powders and other items for pressing pills, and a 12-gauge shotgun. The next day, agents searched Benson’s storage unit in Vacaville and found five more pill presses.

This case is the product of an investigation by the Drug Enforcement Administration with assistance from the Federal Bureau of Investigation, the U.S. Customs and Border Protection, the Vallejo Police Department, the California Department of Corrections and Rehabilitation, and the El Dorado County District Attorney’s Office. Assistant U.S. Attorneys David Spencer and Ross Pearson, and Cameron Desmond are prosecuting the case.

On April 25, 2022, Ruiz was sentenced to 13 years in prison after pleading guilty to distribution of methamphetamine, conspiracy to commit robbery, and assault on a federal officer.

Co-defendant Roselle Cipriano, 39, of Vallejo, pleaded guilty to conspiracy to distribute and manufacture methamphetamine-laced pills.

U.S. District Judge Dale. A Drozd is scheduled to sentence Benson and Cipriano on Jan. 9, 2024. Benson and Cipriano face 10 years to life in prison and a $10 million fine for the methamphetamine trafficking counts. Benson faces a mandatory minimum penalty of five years in prison, up to life in prison, and a fine up to $250,000 for possessing a firearm in furtherance of a drug trafficking crime. 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 effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.

SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Sam Moss Kerfoot, 27, of Carmichael, charging him with sexual exploitation of a minor, distribution of child pornography, and possession of child pornography, U.S. Attorney Phillip A. Talbert announced.

According to court documents, in April and May 2022, Kerfoot sexually abused a minor and produced visual depictions of the minor engaged in sexually explicit conduct. In addition, Kerfoot is alleged to have distributed child pornography in April 2022 and possessed child pornography in June 2023.

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. Attorneys Emily Sauvageau and Alstyn Bennett are prosecuting the case.

If convicted of the charges as alleged, Kerfoot faces a minimum statutory penalty of 25 years in prison, a maximum of 50 years in prison, and a $250,000 fine for sexual exploitation of a minor; a minimum statutory penalty of 15 years in prison, a maximum of 40 years in prison, and a $250,000 fine for distribution of child pornography; and a minimum of 10 years in prison, a maximum of 20 years in prison, and a $250,000 fine for possession of child pornography. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.

FRESNO, Calif. — Jia Bei Zhu, aka Jesse Zhu, aka Qiang He, aka David He, 62, a citizen of China who formerly resided in Clovis, was arrested today on a criminal complaint for manufacturing and distributing misbranded medical devices in violation of the federal Food, Drug, and Cosmetic Act (FDCA) and for making false statements to the Food and Drug Administration (FDA), U.S. Attorney Phillip A. Talbert announced.

“As part of his scheme, the defendant changed his name, the names of his companies, and their locations,” U.S. Attorney Talbert said. “The disarray at the Reedley lab led to the glare of publicity he was trying to avoid, and the ensuing investigation unraveled his efforts to circumvent the requirements that are designed to ensure that medical devices are safe and effective.”

“Providing materially false information to FDA inspectors regarding medical device manufacturing and distribution impedes the agency’s ability to protect public health, especially when those false statements relate to unauthorized and misbranded COVID-19 tests. Consumers who unknowingly use these misbranded COVID tests run the risk of incorrect results about their COVID status, which can lead to further spread of the virus,” said Special Agent in Charge Robert M. Iwanicki, FDA Office of Criminal Investigations Los Angeles Field Office. “We will continue to investigate and bring to justice those who jeopardize the health of U.S. consumers.”

According to court documents, between December 2020 and March 2023, Zhu and others manufactured, imported, sold, and distributed hundreds of thousands of COVID-19 test kits, in addition to test kits for HIV, pregnancy, clinical urinalysis, and other conditions in the United States and China. They did so through the companies Universal Meditech Incorporated (UMI) and Prestige Biotech Incorporated (PBI), which were based in Fresno and Reedley. UMI and PBI did not obtain the required authorizations to manufacture and distribute the test kits and mislabeled some of the test kits. When questioned by FDA officials, Zhu made false statements about his identity, his ownership and control of UMI and PBI, and the activities of UMI and PBI.

According to the criminal complaint, Reedley Code Enforcement officials received a complaint regarding a warehouse in Reedley for using non-permitted plumbing that was visible from outside the warehouse. When code enforcement officials went to the warehouse the next day, they saw various types of in vitro diagnostic test kits, related manufacturing equipment, and shipping supplies.

Further investigation found that UMI first registered as a medical device manufacturer with the FDA in November 2015 in Tulare and moved to Fresno in 2018. FDA records show that its registration lapsed in 2022, and it is no longer permitted to manufacture or import any in vitro diagnostic test kits in the United States. Any test kits that the company manufactured or imported after that date are considered misbranded medical devices.

To manufacture, import, and distribute COVID-19 test kits in the United States during the pandemic, a company must have applied for, and ultimately received, an Emergency Use Authorization (EUA) from the FDA. According to FDA records, UMI applied for an EUA for its COVID-19 test kits, but never received it due to major deficiencies in UMI’s test studies.

In November 2022, Fresno County officials notified UMI that they were going to inspect UMI’s Fresno facility to ensure everything was up to code following a fire that occurred at the facility. FDA officials then received an email from UMI’s attorney saying that the company had gone out of business and sold its assets to PBI, a company that was formed in Las Vegas, Nevada. PBI was never registered with the FDA to manufacture or import any in vitro diagnostic test kits in the United States, and never received an EUA to manufacture and distribute COVID-19 test kits. Therefore, any such test kits would be misbranded medical devices.

According to the criminal complaint, during the investigation, Zhu made several false statements to FDA officials, including that his name was Qiang “David” He; that he was hired by UMI as a COVID-19 consultant in 2021; that he was hired by PBI just a couple of weeks ago to communicate with government agencies and dispose of property at the warehouse as requested by those agencies; that he did not know anything about the manufacturing or distribution histories for UMI or PBI; and that he knew nothing about an Amazon webpage showing PBI‑branded pregnancy test kits for sale or a shipment of 47,500 pregnancy test kits from China to UMI at an address in Las Vegas.

This case is the product of an investigation by the FDA Office of Criminal Investigations, with assistance from the Federal Bureau of Investigation and the California Department of Public Health – Food and Drug Branch. Assistant U.S. Attorneys Joseph D. Barton, Arelis M. Clemente, and Henry Z. Carbajal III are prosecuting this case.

If convicted, Zhu faces a maximum statutory penalty of three years in prison for the misbranding of medical devices charge, and five more years in prison for the false statements charge. 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.

zhu_criminal_complaint.pdf

FRESNO, Calif. — Miguel Deniz, 33, of Farmersville, was sentenced today to 17 years and six months in prison for possession with intent to distribute methamphetamine, being a felon in possession of firearms, and possession of a machine gun, U.S. Attorney Phillip A. Talbert announced.

According to court documents, on May 1, 2019, law enforcement officers executed a search warrant at Deniz’s residence and found more than a pound of methamphetamine, an AK-style rifle, a Mossberg pump action shotgun, six handguns, 18 magazines, two handgun silencers, a ballistic vest, thousands of rounds of live ammunition, and firearm accessories. During the search, law enforcement officers also found “auto-sear” devices that are used to convert semi-automatic firearms to fire as fully automatic machine guns. Deniz is a convicted felon and is prohibited from possessing firearms or ammunition.

This case was the product of an investigation by Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the California Department of Justice. Assistant U.S. Attorney Kimberly Sanchez prosecuted the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

SACRAMENTO, Calif. — Three Sacramento family members pleaded guilty today to charges related to their participation in a nationwide catalytic converter theft conspiracy, U.S. Attorney Phillip A. Talbert announced.

Brothers Tou Sue Vang, 32, and Andrew Vang, 28, and their mother Monica Moua, 58, all pleaded guilty to conspiring to transport stolen catalytic converters from California to New Jersey in return for over $38 million in wired payments. Tou Sue Vang also pleaded guilty to an additional 39 charges related to money laundering.

In October and November 2022, federal, state, and local law enforcement partners from across the United States executed a nationwide, coordinated takedown of leaders and associates of a national network of thieves, dealers, and processors for their roles in conspiracies involving stolen catalytic converters sold to a metal refinery for over $600 million dollars. Nine of 21 defendants were charged in the Eastern District of California.

Catalytic converters are part of an exhaust system that reduces toxic gas and pollutants from a vehicle’s internal combustion engine. Catalytic converters use precious metals in their center, or “core,” and are regularly targeted for theft due to the high value of these metals, especially the precious metals palladium, platinum, and rhodium. Some of these precious metals are more valuable per ounce than gold, and their value has been increasing in recent years. The black-market price for catalytic converters can be above $1,000 each, depending on the type of vehicle and what state it is from. They can be stolen in less than a minute. Last year, approximately 1,600 catalytic converters were reportedly stolen in California each month, and California accounts for 37% of all catalytic converter theft claims nationwide.

According to court documents, the defendants pleading guilty today operated an unlicensed business from their residence in Sacramento where they bought stolen catalytic converters from local thieves and shipped them to DG Auto Parts LLC (DG Auto) in New Jersey for processing. They sold over $38 million in stolen catalytic converters to DG Auto.

Also charged in the 2022 indictment were co-defendants Navin Khanna, aka Lovin Khanna, 40; Tinu Khanna, aka Gagan Khanna, 36; Daniel Dolan, 45; Chi Mo, aka David Mo, 37; Wright Louis Mosley, 50; and Ishu Lakra, 25, all of New Jersey who operated DG Auto in multiple locations in New Jersey. According to court documents, they knowingly purchased stolen catalytic converters and, through a “de-canning” process, extracted the precious metal powders from the catalytic core. DG Auto sold the precious metal powders it processed from California and elsewhere to a metal refinery for over $600 million. 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 Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation with assistance from the Sacramento County Sheriff’s Department, the Sacramento Police Department, the Davis Police Department, the Auburn Police Department, the Livermore Police Department, and the San Bernardino County Sheriff’s Department. Assistant U.S. Attorney Veronica M.A. Alegría is prosecuting the case.

Tou Sue Vang, Andrew Vang, and Monica Moua are not yet scheduled to be sentenced. Andrew Vang and Monica Moua each face a maximum penalty of five years in prison. The 40 counts to which Tou Sue Vang pleaded guilty carry various maximum penalties per count ranging from 20 years in prison to five years in prison, and fines that range from $500,000 to $250,000 per count or twice the gross gain or loss from the crimes. 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 effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.

FRESNO, Calif. — Former Navy IT Manager Marquis Hooper, 32, of Selma, California, was sentenced today to five years and five months in prison for hacking a computer database that contained personally identifiable information (PII) and selling it, U.S. Attorney Phillip A. Talbert announced.

According to court records, in August 2018, Hooper opened an online account with a company that runs a database containing the PII for millions of people. The company restricts access to the database to businesses and government agencies that have a demonstrated, lawful need for the PII. Hooper, however, opened his database account by falsely representing to the company that the Navy needed him to perform background checks.

After Hooper opened his database account, he added his wife and co-defendant, Natasha Chalk, to the account. They then stole over 9,000 people’s PII and sold it to other individuals on the dark web for $160,000 in bitcoin.

At least some of the individuals to whom Hooper and Chalk sold the PII used it to commit further crimes. For example, one individual used the PII to create a fake driver’s license and then tried to withdraw money from the victim’s bank account.

In December 2018, Hooper’s database account was closed for suspected fraud. Thereafter, Hooper, Chalk, and an unindicted co-conspirator tried to regain access to the database. Hooper instructed the unindicted co-conspirator to open a new database account by representing that the Navy needed him to perform background checks just like Hooper had done. Hooper offered to pay the unindicted co-conspirator $2,500 for each month that the database account was opened. The unindicted co-conspirator submitted an application to open the database account and the company told him that a supply officer had to sign the contract. Navy supply officers have contracting authority to purchase certain services and supplies for the Navy.

Hooper then sent the unindicted co-conspirator multiple documents falsely identifying an identity theft victim as the supposed Naval supply officer.  These documents included a false contract, a fake driver’s license for the identity theft victim, and a forged letter purporting to be from a commanding officer in the Navy. The unindicted co-conspirator submitted the fake documents to the company, but the company decided not to open the new database account.

This case is the product of an investigation by the Naval Criminal Investigative Service, the Federal Bureau of Investigation, and Homeland Security Investigations. Assistant U.S. Attorney Joseph Barton is prosecuting the case.

Chalk is scheduled to be sentenced on Nov. 20, 2023. She faces a maximum statutory penalty of 20 years in prison and a fine of $250,000. 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, Calif. — On Sept. 28, 2023, a federal grand jury returned a two-count indictment against Steven Daniel Miller, 47, of Fairfield, charging him with bank fraud and aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.

Yesterday Miller made his first appearance in federal court on the case.

According to court documents, in October 2018, Miller used another person’s social security number to complete a credit application with a bank in order to purchase a 2018 Dodge Challenger Hellcat at a car dealership in Yuba City. Based on the false information on the credit application, the bank approved the loan and paid approximately $75,754 to the car dealership. Miller left the dealership with the vehicle, and it was subsequently seized by law enforcement.

This case is the product of an investigation by the U.S. Secret Service with assistance from the California Highway Patrol, the Solano County Sheriff’s Office, the Rocklin Police Department, the Gilroy Police Department, and the Fairfield Police Department. Assistant U.S. Attorney Denise N. Yasinow is prosecuting the case.

If convicted, Miller faces a maximum statutory penalty of 30 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Nigerian nationals Quazeem Owolabi Adeyinka, 22, and Ayodeji Jonathan Sangode, 25, currently both residing in Maryland, were sentenced today to 26 months and 14 months in prison respectively for their roles a fraud conspiracy during the COVID-19 pandemic, U.S. Attorney Phillip A. Talbert announced.

Sangode pleaded guilty in October 2022 to access device fraud, and Adeyinka pleaded guilty in November 2022 to conspiracy to commit wire fraud. A third co-conspirator, Olamide Yusuf Bakare, 26, also pleaded guilty and was sentenced in July 2023 to four years and nine months in prison.

According to court documents, between June 2020 and July 2021, Adeyinka, Sangode, Bakare, and others participated in a conspiracy to submit fraudulent unemployment insurance (UI) and Pandemic Unemployment Assistance (PUA) claims to the State of California. More than 200 individual applications were filed with the California Employment Development Department (EDD) indicating that the claimants’ address was the Hyattsville, Maryland, apartment that the co-defendants shared.

During the conspiracy, the conspirators obtained the personally identifiable information (PII) of persons who were not eligible for UI or PUA benefits or who did not authorize the conspirators to act on their behalf with respect to seeking such benefits. Such PII included names, dates of birth, and Social Security numbers. The conspirators then used the PII to submit dozens of fraudulent UI and PUA claims to EDD under the putative claimants’ identities and without their authorization.

The underlying benefit applications contained false representations, including, for example, that the claimants had worked for certain employers and supervisors; had specific annual incomes; worked during certain time periods; were self-employed in various occupations; were laid off and had no work; were newly unemployed due to a disaster including the COVID-19 pandemic; and were currently available to work. Most, if not all, of these claims were false because the claimants were not so previously working, employed, newly unemployed, or seeking new employment.

The conspirators knew that these representations were false or lacked the knowledge and authority to make such representations. These actions caused EDD to approve fraudulent UI and PUA claims.

For each approved claim, EDD deposited benefit funds into a debit card account administered by Bank of America and under the identity of the putative claimant. Bank of America then mailed unauthorized debit cards to addresses under the control of the defendants. Under the direction of Bakare and others, Adeyinka and Sangode then obtained these debit cards and their PINs and used these cards to withdraw cash at ATMs for the benefit of themselves and coconspirators.

At least 15 debit cards that Adeyinka used during the conspiracy were linked to bank accounts that received approximately $237,911 in fraudulent UI and PUA benefits. Adeyinka was personally involved in $793,844 in attempted loss. And at least 53 debit cards that Sangode used during the conspiracy were linked to bank accounts that received approximately $752,142 in fraudulent UI and PUA benefits.

This case was the product of an investigation by the Department of Labor – Office of Inspector General, the Federal Bureau of Investigation, the Department of Homeland Security – Office of Inspector General – Covid Fraud Unit, and the California EDD – Investigation Division. Assistant U.S. Attorney Denise N. Yasinow prosecuted the case.

This effort is part of a California COVID-19 Fraud Enforcement Strike Force operation, one of five interagency COVID-19 fraud strike force teams established by the U.S. Department of Justice. The California Strike Force combines law enforcement and prosecutorial resources in the Eastern and Central Districts of California and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces use prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds.

FRESNO, Calif. — William Lee Robinson, 43, of Hattiesburg, Mississippi, pleaded guilty today to five counts of sending threatening interstate communications and three counts of cyberstalking, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Robinson worked at a business in Fresno from June to November in 2017. After the business fired him, Robinson began sending threatening messages to his former supervisor and other co-workers in an attempt to extort them for money. These threats included graphic statements threatening to physically harm co-workers and a former supervisor’s daughter. Robinson made the threats because he wanted the company to pay him between $10,000 and $20,000 to cover the cost of relocating to a different city.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney David Gappa is prosecuting the case.

U.S. District Judge Jennifer L. Thurston is scheduled to sentence Robinson on Feb. 12, 2024. He faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each of the five counts of sending threatening communications.  He faces a maximum statutory penalty of five years in prison and a $250,000 fine for each of the cyberstalking counts. 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, Calif. — On Oct. 5, 2023, a federal grand jury returned a 23‑count indictment against Ari J. Lauer, 59, of Lafayette, charging him with conspiracy to commit wire and bank fraud, bank fraud, and wire fraud affecting a financial institution, for his role in the biggest criminal fraud scheme in the history of the Eastern District of California, U.S. Attorney Phillip A. Talbert announced.

Lauer is an attorney licensed to practice law in California, and from approximately 2009 to January 2019, he was outside counsel to DC Solar and provided legal and business advice concerning DC Solar’s operations. The indictment was unsealed today following Lauer’s arrest.

According to court documents, between 2011 and 2018, DC Solar manufactured mobile solar generators that were mounted on trailers. The company touted the versatility and environmental sustainability of the generators and claimed that they were used to provide emergency power to cellphone towers and lighting at sporting and other events. A significant incentive for investors were generous federal tax credits due to the solar nature of the generators. Jeff Carpoff, 52, Paulette Carpoff, 49, both of Martinez, and their co-conspirators solicited investors to invest in the generators in large multimillion-dollar transactions using a variety of fraudulent techniques.

A key part of the fraud was that investors would never actually take possession of the generators. Instead, DC Solar typically leased those generators back from the investors, and claimed to sublease them to third parties to generate revenue. In reality there was very little actual third-party rental demand for the generators, yet when Lauer and the other co-conspirators learned this, they continued to represent falsely to investors that the rental market for the generators was robust.

In June 2012, Lauer, Jeff Carpoff, and others met to discuss the failure to generate third-party lease revenue sufficient to meet their financial obligations to the investors. The conspirators agreed to conceal that lack of third-party lease revenue from current and prospective investors, by, among other things, making periodic transfers of investor money from one account to another while misrepresenting the flow of funds as third-party lease revenue. Lauer and other members of the conspiracy created a circular payment system they referred to as “re-rent.” In 2014, they created a “re-rent agreement,” backdating the document to 2011, and used it to explain the large sums of money being transferred from one account to another. In fact, the real source of money was new investor money, which was being used to pay obligations to existing investors. The indictment further alleges that Lauer and other members of the conspiracy prepared sublease agreements with “concealed addendums” that materially altered the terms of the contracts. They used the sublease agreements to defraud investors.

Between March 2011 and Dec. 18, 2018, investors collectively invested approximately $759,400,000 and several financial institutions and other investors transferred collectively $152,700,000 to DC Solar as part of related transactions for the purchase and lease of generators. In total, DC Solar closed transactions with investors that contributed an aggregate of more than $912 million to purchase generators. Those transactions purportedly involved approximately 17,000 generators, at approximately $2.5 billion in purported value.

During the conspiracy, approximately 94% to 95% of the supposed lease revenue on the books was actually intercompany transfers disguised as new investor money. In truth, third-party end-user demand for generators never exceeded 5% of the revenue that was claimed.

This case is the product of an investigation by the Federal Bureau of Investigation, IRS Criminal Investigation, and the Federal Deposit Insurance Corporation Office of Inspector General. Assistant U.S. Attorney Audrey Hemesath is prosecuting the case.

On Nov. 9, 2021, Jeff Carpoff was sentenced to 30 years in prison and ordered to pay $790,600,000 in restitution for conspiracy to commit wire fraud and money laundering. His wife Paulette Carpoff pleaded guilty to conspiracy to commit an offense against the United States and money laundering. She was sentenced on June 28, 2022, to 11 years and three months in prison.

On Nov. 16, 2021, Joseph W. Bayliss, 48, of Martinez, was sentenced to three years in prison and ordered to pay $481,300,000 in restitution for securities fraud and conspiracy in connection with the DC Solar scheme. On April 12, 2022, DC Solar CFO Robert A. Karmann, 57, of Clayton, was sentenced to six years in prison and ordered to pay $624 million. On May 31, 2022, Alan Hansen was sentenced to eight years in prison for conspiracy to commit an offense against the United States and aiding and abetting money laundering. Ryan Guidry, 48, of Pleasant Hill, was sentenced on Jan. 31, 2023, to six years and six months in prison and ordered to pay $619,415,950 in restitution for to conspiracy to commit an offense against the United States and aiding and abetting money laundering.

Ronald J. Roach, 55, of Walnut Creek, pleaded guilty to criminal offenses related to the fraud scheme and is scheduled to be sentenced on Nov. 14, 2023. Roach faces a maximum statutory penalty of 10 years 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.

lauer_indictment.pdf

FRESNO, Calif. — On Sept. 21, 2023, a federal grand jury returned an 11-count indictment charging Bakersfield residents Miguel Martinez, 39, and Victor Cruz, 38, for their involvement in a $25 million tax refund fraud scheme, U.S. Attorney Phillip A. Talbert announced today.

Martinez and Cruz were each charged with conspiracy to defraud the United States and submission of false claims to the Internal Revenue Service. Martinez was also charged with identity theft. He has been in custody since his arrest in June 2023 on a criminal complaint. Cruz was arrested Monday at the Los Angeles airport upon his arrival from Mexico.

According to court documents, between November 2019 and June 2023, the defendants and others participated in a scheme to file hundreds of fraudulent individual federal income tax returns that claimed over $25 million in refunds. The defendants used stolen identities to create fake businesses and reported phony wage and withholding information to the IRS that the businesses never actually paid. The purported owners of the businesses listed on these documents were unaware that the businesses even existed. The defendants then submitted hundreds of individual income tax returns to the IRS in the names of the individuals whose identities they had stolen, claiming tax refunds based on the income and withholding information. Cruz was a tax preparer in Bakersfield who filed a significant number of the fraudulent returns. In many cases, the fraudulent tax returns resulted in tax refunds being paid out through checks issued by the IRS. The checks were primarily cashed at businesses in Kern County.

According to court documents, at arrest, Martinez was in possession of more than $750,000 in fraudulent tax refund checks and identification cards for more than 200 people.

This case is the product of an investigation by the Internal Revenue Service Criminal Investigation. Assistant U.S. Attorneys Joseph D. Barton and Henry Z. Carbajal III are prosecuting the case.

If convicted, Martinez and Cruz each face a statutory maximum of 10 years in prison and a $250,000 fine for the conspiracy count, and five years in prison and a $250,000 fine for each of the false claims counts. Martinez also faces a statutory maximum of five years in prison and a $250,000 fine for the identity theft count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

martinez_criminal_complaint.pdf martinez_cruz_indictment.pdf

FRESNO, Calif. — Jaswinder Bhangoo, 50, of Bakersfield, pleaded guilty today to stealing $163,750 in COVID-19 relief money, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between May 2020 and November 2021, Bhangoo applied for over $250,000 in COVID-19 relief loans from the U.S. Small Business Administration. In the applications, Bhangoo falsely represented that he owned multiple businesses with several employees and substantial revenues. He also represented that he had not been convicted of a felony in the previous five years when, in fact, he had been convicted of insurance fraud. Based on Bhangoo’s false representations, some of his loan applications were approved, and he received approximately $163,750 in federal funds to which he was not entitled.

This case is the product of an investigation by the Treasury Inspector General for Tax Administration. Assistant U.S. Attorneys Brittany M. Gunter and Joseph Barton are prosecuting the case.

Bhangoo is scheduled to be sentenced by U.S. District Judge Ana de Alba on Feb. 20, 2024. Bhangoo faces a maximum statutory penalty of 10 years in prison and a fine of $250,000. 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 effort is part of a California COVID-19 Fraud Enforcement Strike Force operation, one of five interagency COVID-19 fraud strike force teams established by the U.S. Department of Justice. The California Strike Force combines law enforcement and prosecutorial resources in the Eastern and Central Districts of California and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces use prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds.

SACRAMENTO, Calif. — On Sept. 28, 2023, a federal grand jury returned a seven-count indictment against Dominic Davis, 38, and Sharitia Wright, 59, both of Sacramento, charging them with conspiring to obtain payment of false claims against the United States, U.S. Attorney Phillip A. Talbert announced. 

The indictment also charges Davis with six counts of filing false claims against the United States and Wright with three counts of filing false claims. Wright is Davis’s mother. The indictment was unsealed following their arrests today.

According to court documents, between March 2019 and April 2022, Davis and Wright caused at least nine fraudulent income-tax returns to be filed with the IRS claiming more than $2 million in income tax refunds.

This case is the product of an investigation by IRS Criminal Investigation. Assistant U.S. Attorney Nicholas M. Fogg is prosecuting the case.

If convicted, Davis and Wright each face a maximum statutory penalty of 10 years in prison and a $250,000 fine for conspiracy to obtain payment of false claims count. The maximum penalty for each count of filing false claim against the United States is five years 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 defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Tamara Mannisto, 58, of Ocean Park, Washington, pleaded guilty today to one count of bank fraud, U.S. Attorney Phillip A. Talbert announced. 

According to court documents, from February 2007 through November 2016, Mannisto worked for a company located in Rio Oso that was in the business of mechanical food processing and farming. In her role at the company, Mannisto’s duties included preparing checks for the owners to sign. Beginning in at least January 2012, and continuing through October 2016, Mannisto carried out a fraudulent scheme to steal over $900,000 from her employer. As part of the scheme, Mannisto created company checks and made them payable to herself, without authorization and for amounts not due her. To make the checks appear legitimate, Mannisto forged the owners’ signatures on the checks or stamped them with one of the owners’ signatures. Falsely posing as the checks’ lawful payee, Mannisto deposited the checks in bank accounts she controlled.

This case is a product of an investigation by the IRS-Criminal Investigation. Assistant U.S. Attorney Matthew Thuesen is prosecuting the case.

U.S. District Judge Troy L. Nunley is scheduled to sentence Mannisto on March 28, 2024. She faces a sentence of up to 30 years in prison and a $1 million 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.

FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Joseph Roy Vigneault, 20, of Lake Isabella, and Michael Roy Anglin, 21, of Wofford Heights, charging them with the receipt and transportation of explosives without a license and distributing explosives to a non-licensed person. Vigneault was also charged with stealing explosive materials from a licensed manufacturer, U.S. Attorney Phillip A. Talbert announced.

According to court documents, in May 2023, Vigneault is alleged to have been involved in the theft of over 700 pounds of Hydromite, an explosive and blasting agent, from Austin Powder West LLC, a licensed explosives manufacturer. The Hydromite contained ammonium nitrate, which is used militarily as an explosive and has been used in several terrorist acts, including the Oklahoma City bombing. Vigneault then recruited Anglin to assist in selling the Hydromite to another individual for a profit. The buyer resided in Wofford Heights. Neither Vigneault, Anglin, nor the buyer were licensed to handle or transport explosives as required by federal law.

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.

If convicted, the defendants face a maximum statutory penalty of 10 years in prison and a $250,000 fine for each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Kendra Dennaoui, 67, of San Mateo, pleaded guilty today to wire fraud, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Dennaoui and her spouse Dennis Moore (who has already pleaded guilty to the same charge) defrauded their victims by promising to invest their money into real estate deals, but they actually used the victims’ money to continue their fraud schemes and pay for personal expenses. Dennaoui and Moore misappropriated approximately $516,529 in funds from their victims.

This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Veronica M.A. Alegría is prosecuting the case.

U.S. District Judge Troy L. Nunley is scheduled to sentence Moore and Dennaoui on Feb. 29, 2024. Dennaoui and Moore each face a maximum statutory penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss. 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, Calif. — Gabriella Santibanez, 59, and her sister Lisa Hazard, 55, both of Temecula, were sentenced Monday to 15 months in prison and ordered to pay over $7.5 million in restitution for health care fraud, U.S. Attorney Phillip A. Talbert announced. 

According to court documents, between Dec, 1, 2015, and Dec, 1, 2020, Santibanez and Hazard ran a mobile phlebotomy company, PhlebXpress Inc. that provided phlebotomy and other medical collection services at patients’ homes and long-term care facilities in Sacramento and elsewhere. Santibanez and Hazard agreed to bill Medicare for services provided that were not reimbursable by Medicare. Santibanez and Hazard also agreed to bill Medicare for overstated mileage that PhlebXpress phlebotomists traveled. On average, Santibanez and Hazard caused false billing to Medicare of over 140 miles for each patient seen by PhlebXpress. Santibanez and Hazard caused a loss to Medicare of at least $7.5 million based on false billing by PhlebXpress.

In November 2020, due to “credible allegations of fraud” at PhlebXpress, Medicare instituted a payment suspension for PhlebXpress under which Medicare ceased paying PhlebXpress for the services it continued to bill Medicare.

According to court documents, between July 1, 2021, and Dec. 31, 2021, Santibanez and Hazard agreed to circumvent the payment suspension by representing to Medicare that services provided to Medicare patients were done by another company, Phlebotomy Solutions, when they were in fact being provided by PhlebXpress through its contractors and employees from PhlebXpress’s offices. Through Phlebotomy Solutions, Santibanez and Hazard agreed to bill Medicare for a non-reimbursable service, misrepresenting that it was for another reimbursable service and overstating the mileage traveled by phlebotomists in order to receive additional money from Medicare. For example, in September 2021, Phlebotomy Solutions billed Medicare for 124.6 miles of travel by a phlebotomist when in fact the phlebotomist travelled 1.4 miles. Santibanez and Hazard caused a loss to Medicare of at least $50,000 based on false billing by Phlebotomy Solutions.

This case was the product of an investigation by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services Office of Inspector General. Assistant U.S. Attorney Lee Bickley prosecuted the case.

SACRAMENTO, Calif. — Juan Valentin Manriquez, 21, of Antioch, was sentenced today to three years and eight months in prison for unlawful dealing in firearms, U.S. Attorney Phillip A. Talbert announced.

According to court documents, co-defendant Andrew Jace Larrabure-Tuma used Snapchat to advertise narcotics and guns for sale. Law enforcement used undercover officers and a confidential informant to buy guns from Tuma. Tuma was 19 years old and could not legally purchase a gun in the state of California. Tuma ultimately introduced the informant working for law enforcement to his gun supplier, Manriquez. During the course of the following month, Manriquez sold the informant nine guns in exchange for cash.

This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Sacramento Police Department, and the Western El Dorado Narcotics Enforcement Team. Assistant U.S. Attorney Justin Lee prosecuted the case.

Tuma pleaded guilty to unlawful dealing and manufacturing firearms and was sentenced to three years and four months in prison.

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, Calif. — Abel Lozano, 29, of Sanger, was sentenced today to 14 years in prison for possession with intent to distribute 400 grams or more of a mixture or substance containing detectible amount of fentanyl, 100 grams or more of a mixture or substance containing a detectable amount of fentanyl analogue, and 50 grams or more of actual methamphetamine, U.S. Attorney Phillip A. Talbert announced.

According to court documents, after a series of overdoses in the Fresno area caused by counterfeit oxycodone M30 tablets containing fentanyl, or M30s, an investigation began to find the drug dealers suppling the toxic pills. The investigation, named “Operation Killer High,” uncovered a large drug-trafficking ring led by Horacio Torrecillas Urias Jr., the self-proclaimed “M30 king of Fresno.”

According to court documents, in February 2022, investigators learned that Urias planned to deliver several thousand fentanyl pills to Lozano. Two days later, federal officers searched Lozano’s home and found about a kilogram of fentanyl analogue, over a kilogram of fentanyl mixture, about a kilogram of methamphetamine, over 3 kilograms of marijuana, and a small amount of cocaine. Lozano was interviewed and admitted that the drugs were his and that he was regularly buying and reselling them in large quantities, including to customers in other states.

Lozano and 17 others were indicted by a federal grand jury in 2022. Lozano is the first defendant to be sentenced. Marvin Carreno, 24, of Fresno, pleaded guilty today to possession with intent to distribute over 40 grams of fentanyl and is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on Feb. 12, 2024.

Twelve co-defendants have previously pleaded guilty to fentanyl or cocaine distribution charges and are now awaiting sentencing.

• Henry Cox, 23, of Sanger;
• Justin Riddle, of Las Cruces, New Mexico,
• Erica Ramirez, of Fresno;
• Alejandro Guzman, of Fresno;
• Agustin Hernandez, of Fresno;
• Christian Harris-Blanchette, of Fresno;
• Oscar Jaramillo-Cortez, of Fresno;
• Jacob Valles, of Fresno;
• Cody Fyfe, of Fresno;
• Juan Valencia Jr., of Fresno;
• Amadeo Sarabia Jr., of Fresno; and
• Alex Garcia, of Fresno.

Charges are pending against the remaining four defendants: Horacio Torrecillas Urias Jr., Alma Garza, Brayan Cruz, and Victor Yair Torrecillas-Urias. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case is the product of an investigation by the Fentanyl Overdose Resolution Team (FORT), an agency composed of officers from Homeland Security Investigations, the Drug Enforcement Administration, and the Fresno and Clovis Police Departments. Assistant U.S. Attorneys Justin J. Gilio and Laurel J. Montoya are prosecuting the case.

This case is part of Operation Synthetic Opioid Surge (S.O.S.) a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.

SACRAMENTO, Calif. — The second annual Sacramento Region Diversity Career Fair, held on Sept. 30, 2023, connected employers with diverse legal candidates for future and current job openings. The U.S. Attorney’s Office for the Eastern District of California, the University of the Pacific McGeorge School of Law, the UC Davis School of Law, and the Federal Bar Association Sacramento Chapter made the announcement following today’s event.

The Diversity Career Fair is the first legal career fair in the Sacramento region with an online platform where employers can post legal jobs and law students and attorneys can submit applications. The Diversity Career Fair grew significantly this year to include 70 participating employers and was expanded to include an interview component. The Diversity Career Fair also provided employers, law students, and attorneys with the opportunity to connect in person, and included a panel discussion featuring federal and state court judges and the Circuit Executive for the U.S. Courts for the Ninth Circuit. A wide variety of employers, bar associations, law students, attorneys, and judges attended the Diversity Career Fair held at McGeorge School of Law campus.

“The Sacramento Region Diversity Career Fair has been groundbreaking, and its successful expansion has strengthened our legal community and commitment to diversity,” said U.S. Attorney Phillip A. Talbert. “We are committed to making the Sacramento Region Diversity Career Fair an annual program to continue this important work with our law schools, bar associations, and the larger legal community.”

“McGeorge is pleased and honored to be hosting the second annual Sacramento Region Diversity Career Fair, and we cannot thank the participating employers enough,” said Michael Hunter Schwartz, Dean of McGeorge School of Law. “A majority of our students at McGeorge are members of marginalized racial and ethnic identities, making the Diversity Career Fair not only a vital step towards fostering a better legal profession but also providing our student body with invaluable opportunities to connect with employers who share our commitment to our students and the needs of California’s diverse communities.”

“The Sacramento Region Diversity Career Fair provided a wonderful opportunity for our students to connect with employers who prioritize diversity in the legal profession,” UC Davis School of Law Dean Kevin R. Johnson said. “We were so pleased to participate and continue to advance the principles of diversity, equity and inclusion that are the foundation of our school. Many thanks to the outstanding employers who participated and to our partner organizations for allowing us to take part in this important event for our region.” 

The panel discussion featured Sacramento Superior Court Judge Bunmi Awoniyi, U.S. District Judge Daniel Calabretta (E.D. Cal.), California Court of Appeal Associate Justice Elena Duarte (3DCA), and U.S. Courts for the Ninth Circuit, Circuit Executive Susan Soong.

The Sacramento Region Diversity Career Fair was co-sponsored by all of the affinity bar associations in Sacramento, including the Asian/Pacific Bar Association of Sacramento (ABAS), Cruz Reynoso Bar Association, Leonard M. Friedman Bar Association, Sacramento Filipino American Lawyers Association (SacFALA), South Asian Bar Association (SABA), SacLegal Sacramento’s LGBTQ+ Bar Association, Wiley Manuel Bar Association (WMBA), and Women Lawyers of Sacramento (WLS), the Yolo Unity Bar, and by the Sacramento County Bar Association.

For more information: https://www.sacramentodiversitycareerfair.org/.

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SACRAMENTO, Calif. — Bryan Tamblyn, 39, of Sacramento, pleaded guilty today to receipt of child pornography, U.S. Attorney Phillip A. Talbert announced.

According to court records, between July 2018 and August 2019, Tamblyn used a BitTorrent client to knowingly receive thousands of files containing visual depictions of children engaging in sexually explicit conduct. Some of those files included children under the age of 12.

This case is the product of an investigation by the Sacramento Valley Hi-Tech Crimes Task Force, the Sacramento Sheriff’s Department, and the Federal Bureau of Investigation. Assistant U.S. Attorney Christina McCall is prosecuting the case.

Tamblyn is scheduled to be sentenced on Jan. 11, 2024, by U.S. District Judge Daniel J. Calabretta. Tamblyn faces a mandatory minimum penalty of five years in prison and a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the Court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.

FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Doroteo Gonzales, 28, of Fresno, charging him with escape, U.S. Attorney Phillip A. Talbert announced.

According to court documents, in October 2021 Gonzalez was sentenced to federal prison after a conviction for being a felon in possession of a firearm. On Jan. 9, 2023, Gonzalez was transferred to the Turning Point Residential Reentry Center (RRC) in Fresno to finish serving his sentence. On Jan. 23, 2023, two weeks after Gonzalez arrived at the RRC, staff discovered that Gonzales was not present while conducting a count of the RRC’s residents. Gonzales was not authorized to leave the RRC and was not scheduled to be released until months later on April 11, 2023. The RRC Staff conducted a search of the facility and contacted local hospitals and jails attempting to locate Gonzales but were unsuccessful in locating him. Gonzalez is currently in federal custody.

This case is the product of an investigation by the U.S. Marshals Service. Assistant U.S. Attorney Arin C. Heinz is prosecuting the case.

If convicted, Gonzales faces a maximum statutory penalty of five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — On Sept. 14, 2023, a federal grand jury returned a two-count indictment against Stephen Joseph Crittenden, 43, of Suisun City, charging him with bribery concerning programs receiving federal funds, U.S. Attorney Phillip A. Talbert announced. The indictment was unsealed following Crittenden’s arrest.

According to court documents, Crittenden was a California Department of Corrections and Rehabilitation correctional officer at the California Medical Facility in Vacaville. In 2021 and 2022 he accepted bribes to smuggle cellphones into the California Medical Facility.

This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the California Department of Corrections and Rehabilitation. Assistant U.S. Attorney Nicholas M. Fogg is prosecuting the case.

If convicted, Crittenden faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

crittenden_indictment.pdf

FRESNO, Calif. — Myron Kilgore, 44, of Modesto, pleaded guilty Monday to being a felon in possession of ammunition, U.S. Attorney Phillip A. Talbert announced.

According to court documents, on Feb. 2, 2021, Kilgore was arrested in Modesto after a Glock style P80 handgun was discovered under the driver’s side floormat during a search of his vehicle. The handgun was loaded with six rounds of ammunition. Kilgore is a convicted felon and is prohibited from possessing firearms and ammunition.

This case is the product of an investigation by the Federal Bureau of Investigation, the Modesto Police Department, and the Stanislaus County District Attorney’s Office. Assistant U.S. Attorney Chan Hee Chu is prosecuting the case.

Kilgore is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on Dec. 18, 2023. Kilgore 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 part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

SACRAMENTO, Calif. — Jose Cruz Ivan Aispuro, 38, a Mexican national residing in Stockton, pleaded guilty today to conspiracy to distribute heroin and fentanyl and 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 heroin and counterfeit pharmaceutical pills containing fentanyl. As part of this conspiracy, Aispuro supplied heroin that Guzman sold to a confidential source and undercover agent on three occasions. Aispuro also supplied 500 counterfeit oxycodone pills containing fentanyl that Guzman sold to the undercover agent on two occasions. Approximately 4.5 kilograms of heroin and $42,066 in cash were seized from Aispuro’s residence. Aispuro has agreed to forfeit the $42,066 to the United States as part of his plea agreement. Approximately 10,000 counterfeit oxycodone pills containing fentanyl and 2.8 kilograms of heroin were seized from Guzman’s residence.

This case is 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 is prosecuting the case.

Aispuro is scheduled to be sentenced by U.S. District Judge John A. Mendez on Jan. 9, 2024. Guzman is scheduled to be sentenced on Dec. 12, 2023. Aispuro and Guzman each face a maximum statutory penalty of life in prison and a $10 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.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.

SACRAMENTO, Calif. — Timothy Allen Horwath, 53, formerly of Redding, was sentenced today to 10 years and one month in prison, 10 years of supervised release, $53,000 in restitution and a $5,100 special assessment for receipt of child pornography, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Horwath was serving as a California Highway Patrol officer while, in his nonworking time, he was receiving visual depictions of children engaging in sexually explicit conduct, including children as young as three and four years old being sexually abused by adult males. While released on bond, Horwath violated the court conditions that he not use the internet or a device capable of accessing the internet. Investigators caught Horwath with a home internet subscription and an iPhone that he had used to carry out dozens of WhatsApp encrypted conversations with females, many of which were sexual in nature. Horwath’s bond was revoked following execution of a search warrant that confirmed he was violating his bond conditions.

This case was the product of an investigation by the California Highway Patrol’s Computer Crimes Investigation Unit and the Federal Bureau of Investigation. Assistant U.S. Attorney Christina McCall prosecuted the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.

SACRAMENTO, Calif. — Quinten Giovanni Moody, aka Christano Rossi, 39, of Dublin, was sentenced today to seven years in prison for aggravated identity theft, obstruction of justice, and conspiracy to distribute marijuana, U.S. Attorney Phillip A. Talbert announced.

“This defendant committed felonies involving drugs and identity theft, then doubled down by obstructing justice,” said U.S. Attorney Talbert. “After making hundreds of thousands of dollars distributing marijuana across the country and fraudulently claiming unemployment insurance benefits during the coronavirus pandemic, he used phony court documents in a failed attempt to get the FBI to release property seized during the federal investigation. The U.S. Attorney’s Office is committed to hold accountable those who engage in such brazen violations of federal criminal law.”

According to court documents, between June 2017 and June 2022, Moody, co-defendant Myra Boleche Minks, 46, formerly of Roseville, and other co‑conspirators generated hundreds of thousands of dollars by transporting marijuana from California to Georgia, Nevada, Texas, and other locations. Moody and others bought marijuana in California and then transported the marijuana to distributors in other states via couriers and baggage traveling on commercial airplanes and commercial shipping services. Once the marijuana was sold, Moody and others caused the proceeds of the marijuana sales to be returned to them in California by using couriers to travel on commercial airline flights carrying cash, using shipping services to ship cash, and causing others at their direction to deposit cash into bank accounts.

Moody and others also committed unemployment insurance fraud during the COVID-19 pandemic. Beginning in August 2020, Moody, Minks, and co-defendant Jessica Tang, 49, of Sacramento, participated in a scheme to submit fraudulent claims of unemployment benefits through the California Employment Development Department (EDD). As part of this scheme, on Sept. 4, 2020, Moody used a Bank of America debit card in the name of an identity theft victim to make purchases at a Cartier store and Louis Vuitton store in Las Vegas, Nevada.

“Quinten Moody engaged in a scheme to fraudulently obtain unemployment insurance (UI) benefits in the names of identity theft victims in order to purchase luxury jewelry and further his criminal enterprise. Today’s sentencing demonstrates the federal government’s commitment to holding perpetrators of UI fraud accountable for their actions. We commend the FBI and the Project Safe Neighborhoods program for leading this joint investigation,” said Quentin Heiden, Special Agent-in-Charge, U.S. Department of Labor Office of Inspector General, Western Region.

Moody sought to obstruct the investigation into his activities by using faked court documents. As part of the investigation, the United States applied for seizure warrants for a 1969 Chevrolet Camaro and a 1956 Chevrolet pickup that Moody purchased with the proceeds of his criminal activities. On April 15, 2022, personnel from the FBI seized the two vehicles in Georgia pursuant to the seizure warrants issued in the Eastern District of California. The vehicles were transported to the FBI’s Atlanta Field Office for storage. On May 8, 2022, at approximately 9:30 p.m., a flatbed truck from towing company arrived at the FBI’s Atlanta field office. The tow truck driver informed FBI security personnel that he had been directed to retrieve the vehicles from FBI’s custody. The tow truck driver gave FBI security personnel documents, including a document purporting to be an order issued by the Honorable John K. Larkins III, U.S. Magistrate Judge for the Northern District of Georgia. The documents purported to order the U.S. Marshal and the FBI to release the vehicles. The documents, however, were fraudulent and had been created by Moody and Minks for the purpose of fraudulently obtaining custody of the two seized vehicles.

On May 21, 2022, a tow truck from a different towing company arrived at the FBI’s Atlanta field office. Again, the driver presented a fake federal court order purporting to authorize the release of the seized vehicles. The fraudulent federal court documents had been altered from the previous attempt. FBI personnel did not release the vehicles. Shortly before the arrival of the tow truck, a co-conspirator called personnel at the FBI’s Atlanta field office and pretended to be an FBI Special Agent. While in character, the co-conspirator attempted to contact the employees assigned to the gate outside of the field office to facilitate the tow truck gaining access to the FBI property.

Charges are pending against Minks and Tang. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the Drug Enforcement Administration, the California Highway Patrol, the Placer County Sheriff’s Office, the Placer County Probation Department, the San Mateo County Sheriff’s Department, the Colma Police Department, the Reno-Tahoe Airport Authority Police Department, the Roseville Police Department, the San Francisco Police Department, the Atlanta Police Department, the U.S. Department of Labor – Office of Inspector General, and the California Employment Development Department. Assistant U.S. Attorneys Justin Lee and Sam Stefanki are prosecuting the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

SACRAMENTO, Calif. — Christopher Campbell, 48, of Citrus Heights, pleaded guilty today to possession of child pornography, U.S. Attorney Phillip A. Talbert announced.

According to court documents, in February 2023 Campbell engaged in an online chat with an undercover officer whom Campbell believed was a 13-year-old girl. As a result of the conversations, law enforcement search Campbell’s residence and seized his iPad and cellphone, which contained approximately 517 images and 45 videos of child pornography. Law enforcement also searched Campbell’s Mega cloud storage account, which contained approximately 169 videos of child pornography, including depictions of toddlers and other minors engaged in sexually explicit conduct.

This case is the product of an investigation by the Sacramento County Sheriff’s Office with assistance from the Federal Bureau of Investigation and Homeland Security Investigations. Assistant U.S. Attorney Emily G. Sauvageau is prosecuting the case.

Campbell is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Feb. 6, 2024. Campbell faces a mandatory minimum penalty of 10 years in prison, a maximum statutory penalty of 20 years in prison, and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.

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SACRAMENTO, Calif. — Raykheem Andrew Guthery, 31, of Vallejo, pleaded guilty today to being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.

According to court documents, on June 9, 2022, law enforcement officers conducted a vehicle stop on Guthery for driving a car without license plates. Guthery pretended to be someone else, claimed he was not on parole or probation, and denied being armed. In fact, Guthery was on probation for felony assault and had a firearm loaded with an extended magazine concealed on his person. Officers discovered the firearm during Guthery’s arrest. The firearm was a non-serialized, privately manufactured firearm, known as a “ghost gun.” It was loaded with one round of .40-caliber ammunition in the chamber and another 17 rounds in an extended magazine.

Guthery is prohibited from possessing firearms or ammunition because he has been convicted of at least three felonies, including a 2016 felony conviction for forcible assault likely to cause grave bodily injury. He is also prohibited from possessing firearms or ammunition because he is the subject of a domestic violence protective order issued on April 15, 2021, by the Superior Court of California, Solano County.

This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Solano County District Attorney’s Office, the Solano County Sheriff’s Office, and the FBI’s Solano County Violent Crimes Task Force. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.

Guthery is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on Dec. 11, 2023. Guthery 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 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, Calif. — Alma Sanchez, 50, of Alpaugh, was sentenced today to 16 years and three months in prison for distributing methamphetamine, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Sanchez distributed methamphetamine on two occasions to a co-conspirator, who then immediately sold the methamphetamine. On June 16, 2021, Sanchez distributed a pound and a half of methamphetamine, and on and Jan. 31, 2022, she distributed another 2 pounds of methamphetamine.

This case was the product of an investigation by the Drug Enforcement Administration, the Coalinga Police Department, the Tulare County Sheriff’s Office, the Tulare County High Intensity Drug Trafficking Area Unit (HIDTA), and the Fresno Police Department. Assistant U.S. Attorney Antonio J. Pataca prosecuted the case.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.

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, Calif. — Pedro Gavino, 28, of Orosi, was sentenced today to seven years and three months in prison for selling firearms without a license and conspiring to violate the Animal Welfare Act by selling gamecocks and participating in cockfighting events, U.S. Attorney Phillip A. Talbert announced.

According to court documents, from February 2017 to October 2018, Gavino negotiated for the sale of 28 firearms and actually sold 24 unregistered firearms, including AR-15 type pistols and AR-15 type short-barreled rifles that had been privately made using unfinished receivers. Privately made firearms using unfinished receivers are known as “ghost guns” because they do not have a serial number and are untraceable. The gun sales occurred at Gavino’s ranch in Orosi and at different gas stations in Selma after the buyer advised Gavino that the firearms were destined for buyers in Chicago and Juarez, Mexico.

During one of the illegal gun transactions, Gavino also sold two American Game Fowl type of birds commonly used for cockfighting and six Mexican slashers, or short knives, that are attached to the leg of a rooster for the purpose of fighting.

In April 2018, Gavino brought five gamecocks to a large cockfighting event in an orchard in Orosi where 200 to 300 spectators gathered. After two of Gavino’s gamecocks fought and won, there was a dispute, gunshots were fired, and the crowd dispersed. In October 2018, during the execution of a federal search warrant at Gavino’s ranch, agents found 128 gamecocks, 30 hens used for breeding gamecocks, 278 Mexican slashers, and 10 additional firearms, including two AR-15 type pistols.

Gavino agreed to surrender the animals involved in the case - both gamecocks and hens used to breed gamecocks.

This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Department of Agriculture-Office of Inspector General with assistance from the California Highway Patrol and the Fresno Police Department Multi-Agency Gang Enforcement Consortium (MAGEC). Assistant U.S. Attorney Karen A. Escobar prosecuted the case.

SACRAMENTO, Calif. — Jamel Duppre Stinson, 43, of Stockton, pleaded guilty today to two counts of possession of various drugs with intent to distribute, one count of being a felon in possession of a firearm, and one count of possessing a firearm during and in relation to a drug trafficking offense, U.S. Attorney Phillip A. Talbert announced.

According to court documents, on April 21, 2020, law enforcement agents went to Stinson’s residence to execute a search warrant for his residence, vehicle, and person. Stinson arrived in a Mercedes driven by his girlfriend. Once the vehicle parked on the driveway, officers announced their presence and that they had a search warrant. Stinson, still seated in the front passenger seat, shoved an item in a black plastic bag into a shoe on the front passenger floorboard. Officers removed Stinson from the vehicle and detained him. During the subsequent search, officers located a loaded Glock 21 .45 caliber firearm in his left shoe. In his right shoe, they discovered various distribution amounts of crack cocaine, powder cocaine, heroin, and methamphetamine. Stinson later admitted that he sold drugs in Oakland, that he personally manufactured powder cocaine into crack cocaine, and that he carried the firearm for protection because people knew he had money from dealing drugs. Stinson is prohibited from possessing firearms because he has been previously convicted of eight felonies, including six prior drug trafficking offenses and a prior conviction for being a felon in possession of a firearm.

This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Oakland Police Department. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.

Stinson is scheduled to be sentenced by U.S. District Judge William B. Shubb on Dec. 18, 2023. Stinson faces a maximum statutory penalty of life in prison and a $5 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.

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, Calif. — Francisco Torres Mora, 30, a Mexican national residing in Bakersfield, pleaded guilty today to possessing with intent to distribute 60 pounds of methamphetamine, U.S. Attorney Phillip A. Talbert announced.

According to court documents, in April 2021, Torres possessed 60 pounds of methamphetamine at a commercial property that he intended to distribute. Law enforcement officers seized the methamphetamine after wire intercepts indicated that Torres was holding the methamphetamine for Jorge Calderon-Campos, 42, also a Mexican national, who was the target of a wiretap investigation that resulted in the seizure of an additional 26 pounds of methamphetamine and 1 kilogram of heroin. The wiretap investigation also uncovered an illegal cockfighting enterprise involving Calderon-Campos, who is charged in a second indictment with violations of the Animal Welfare Act. An associate, Horacio Ortega-Martinez, 36, a Mexican national residing in Bakersfield, previously pleaded guilty to the unlawful possession of gamecocks for an animal fighting venture and was sentenced to 18 months in prison.

This case was the product of an investigation led by Homeland Security Investigations and the Drug Enforcement Administration with assistance from the U.S. Department of Agriculture Office of Inspector General (USDA-OIG), 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.

Torres is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on Jan. 29, 2024. Torres faces a mandatory statutory minimum penalty of 10 years and a maximum statutory penalty of life in prison, along with 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.

Calderon-Campos and four other co-defendants are currently scheduled for a status conference on Dec. 6, 2023. They are presumed innocent until and unless proven guilty beyond a reasonable doubt.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.

SACRAMENTO, Calif. — Jeremy Michael Benner, 39, of San Diego, pleaded guilty today to unlawful dealing in firearms, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between September 2022 to August 2023, Benner sold firearms to a confidential informant on four separate occasions in Vallejo. One of the firearms had previously been reported stolen, and three of them came with extended magazines. Benner did not have a license as a firearms dealer, and could not have obtained a license if he tried because he is a previously convicted felon.

This case is the product of an investigation by the FBI’s Solano County Violent Crimes Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.

Benner is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on Dec. 11, 2023. Benner faces a maximum statutory penalty of five 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 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, Calif. — Paul Joseph Espinosa, 55, of Clovis, pleaded guilty today to attempted online coercion of a child, U.S. Attorney Phillip A. Talbert announced.

According to court documents, in May 2021, Espinosa noticed an undercover agent’s Instagram profile and sent her a direct message. The undercover agent told Espinosa she was 15 years old, but Espinosa continued to send her direct messages and call her using Instagram audio. Espinosa asked the 15-year-old undercover persona for sexy pictures, asked multiple times to meet up with her to cuddle, to “enjoy each others company at least for a night” and “lay there naked” and “enjoy each other.” Espinosa asked for the 15-year-old persona to send her a picture for his eyes only and sent her three sexually explicit photos of females when asking her for “naughty” pictures.

According to court documents, on June 26, 2021, Espinosa traveled from Clovis to Fresno to meet up with the intended victim because he wanted to engage in various forms of sexual activity with her. When Espinosa arrived, he was placed under arrest.

This case is the product of an investigation by Homeland Security Investigations with assistance from the Fresno Police Department and Fresno County District Attorney’s Office. Assistant U.S. Attorneys Brittany Gunter and Christina McCall are prosecuting the case.

Espinosa is scheduled to be sentenced on Jan. 22. 2024, by U.S. District Judge Jennifer L. Thurston. Espinosa faces a mandatory minimum penalty of 10 years in prison and 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 sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.

FRESNO, Calif. — Ruben Mireles, 48, of Clovis, pleaded guilty today to stealing $1.4 million in COVID-19 relief money, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Mireles owned and operated a farm labor contracting business in Kings County. His business initially went by the name Vista Pacific Labor Solutions Inc. (VPLS) and then changed its name to Calzona Ag Management Inc., doing business as Vista Pacific Farm Management (CAM).

In January 2021, after VPLS changed its name to CAM, Mireles caused CAM to apply for and receive a COVID-19 Paycheck Protection Program (PPP) loan for $1.4 million from the Small Business Administration (SBA). Then, in April 2021, Mireles caused VPLS to apply for and receive another PPP loan for $1.4 million from the SBA based on false information.

In the second loan application, Mireles falsely represented to the SBA that VPLS was a separate company from CAM when, in fact, VPLS and CAM were the same company. Mireles also falsely represented that he had not received any other PPP loans when, in fact, he had previously received CAM’s loan. Finally, Mireles falsely represented that he was not subject to any pending criminal charges when, in fact, he was facing state fraud charges.

Based on Mireles’ representations, VPLS’s loan application was approved and the $1.4 million, to which he was not entitled, was deposited into his bank account.

This case is the product of an investigation by the Federal Bureau of Investigation and the SBA Office of Inspector General. Assistant U.S. Attorney Joseph Barton is prosecuting the case.

Mireles is scheduled to be sentenced by Jennifer L. Thurston on Feb. 20, 2024. Mireles 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 effort is part of a California COVID-19 Fraud Enforcement Strike Force operation, one of five interagency COVID-19 fraud strike force teams established by the U.S. Department of Justice. The California Strike Force combines law enforcement and prosecutorial resources in the Eastern and Central Districts of California and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces use prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds.

SACRAMENTO, Calif. — On Sept. 14, 2023, a federal grand jury returned a three-count indictment against Bruce Anthony Garcia, 41, of Sacramento, charging him with the attempted sexual exploitation of a minor and distribution and possession of child pornography, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between Aug. 2, 2017, and Sept. 1, 2019, Garcia attempted to sexually exploit a minor by producing visual depictions of the minor engaged in sexually explicit conduct. In June 2022, Garcia distributed child pornography, and in January 2023, Garcia was found in possession of child pornography.

This case is the product of an investigation by the Internet Crimes Against Children Unit of the Sacramento Valley Hi-Tech Crimes Task Force and the Sacramento County Sheriff’s Office. Assistant U.S. Attorney Dhruv M. Sharma is prosecuting the case.

If convicted, Garcia faces a mandatory minimum penalty of 15 years in prison, a maximum of up to 30 years in prison, and a $250,000 fine for attempted sexual exploitation of a minor; a mandatory minimum of five years in prison, a maximum of 20 years in prison, and a fine of up to $250,000 for distribution of child pornography; and a maximum of 20 years in prison and a fine of up to $250,000 for possession of child pornography. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.

SACRAMENTO, Calif. — A federal grand jury returned an eight-count indictment today against Kamaal Yusuf, 22, of West Sacramento, charging him with conspiracy to distribute and possession with intent to distribute 400 grams of fentanyl, distribution of fentanyl, possession with intent to distribute 400 grams of fentanyl, being a felon in possession of a firearm, and possession of an unregistered short-barrel rifle, U.S. Attorney Phillip A. Talbert announced.

According to court documents, in May 2022 Yusuf was conspiring to distribute 400 grams of fentanyl in El Dorado, Sacramento, and Yolo Counties. On three occasions, twice in Sacramento County and once in Yolo County, he distributed fentanyl pills.  Yusuf also possessed another 400 grams of fentanyl in Yolo County. Yusuf, who is a previously convicted felon, is also charged with illegally possessing a Glock handgun and an unregistered short-barreled rifle.

This case is the product of an investigation by the West El Dorado Narcotics Enforcement Team, the El Dorado County District Attorney’s Office, the Yolo County District Attorney’s Office, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Homeland Security Investigations. Special Assistant U.S. Attorney Matthew De Moura is prosecuting the case.

If convicted, Yusuf faces a mandatory minimum of 10 years in prison, a maximum penalty of up to life in prison and a $10 million fine for conspiracy to distribute fentanyl; a maximum of 20 years in prison and a $1 million fine for distribution of fentanyl; and 10 years in prison and a $250,000 fine for the counts of being a felon in possession of a firearm and possession of an unregistered short-barrel rifle. 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 is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Sean Thomas Delapp, 37, of Vallejo, charging him with assaulting federal officers with a deadly weapon and being a felon in possession of a firearm and ammunition, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Delapp assaulted two FBI special agents by chasing 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 U.S. Attorney Adrian T. Kinsella is prosecuting the case.

If convicted, Delapp faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

SACRAMENTO, Calif. — A federal grand jury returned a 30-count indictment on Sept. 14, 2023, against Tilila Siola’a Walker Sumchai, 61, of Richmond, charging her with wire fraud, mail fraud, securities fraud, and the sale of unregistered securities, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between January 2021 and October 2021, Walker Sumchai orchestrated a scheme to defraud investors in the United States, Australia, and New Zealand from her Stockton office. Claiming to use a secret algorithm, Walker Sumchai solicited Tongan investors and promised them that if they gave her money to purchase shares of the “Tongi Tupe” investment program, she would invest the money, and they would receive their principal investments back and thousands of dollars in returns within weeks or months. She also promised investors that if they gave her $30,000, within months they would receive a home in Lodi worth approximately $480,000. Instead, she took investors’ money and used it for her own personal expenses, including gambling, and used it to pay back and lull earlier investors. More than 1,000 investors invested over $13 million with Walker Sumchai.

This case is the product of an investigation by the Federal Bureau of Investigation and the San Joaquin County District Attorney’s Office. Assistant U.S. Attorney Lee S. Bickley is prosecuting the case.

If convicted of mail fraud or wire fraud, Walker Sumchai faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count of conviction. If convicted of securities fraud, Walker Sumchai faces a maximum statutory penalty of 20 years in prison and a $5 million fine. If convicted of the remaining securities-related counts in the indictment, Walker Sumchai faces a maximum statutory penalty of five years in prison and a $10,000 fine for each count of conviction. 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.

The FBI is seeking to identify possible victims of Tilila Siola’a Walker Sumchai. If you believe that you were victimized by Walker Sumchai or have information relevant to this investigation, please complete the online form available at https://www.fbi.gov/tongitupevictims.

walker_sumchai_indictment.pdf

FRESNO, Calif. — Travis Gober, 44, of Hanford, pleaded guilty to health care fraud and aggravated identity theft charges today for submitting over $1 million in fraudulent claims for sleep studies to Medicare, U.S. Attorney Phillip A. Talbert announced.

According to court records, Gober owned the VIP Sleep Center, which operated sleep clinics in Fresno and Tulare Counties. Sleep clinics perform diagnostic sleep studies on patients to identify disorders like sleep apnea and narcolepsy.

From October 2019 through September 2021, Gober caused the VIP Sleep Center to submit thousands of claims to Medicare, which is a federally funded health care insurance program, for sleep studies that were not actually performed on patients. The claims also falsely stated that the patients had been referred for the sleep studies by physicians with whom Gober had previously worked. This was done because Medicare will not pay for a sleep study unless the patient was referred by a physician.

Gober committed this fraud, at least in part, to try to pay debts and address other financial difficulties that his brother, Jeremy Gober, had caused the VIP Sleep Center and him to incur without his knowledge or consent.

This case is the product of an investigation by the U.S. Department of Health and Human Services Office of Inspector General, the Federal Bureau of Investigation, and the California Department of Health Care Services. Assistant U.S. Attorney Joseph Barton is prosecuting the case.

Travis Gober is scheduled to be sentenced by Jennifer L. Thurston on Jan. 16, 2024. Gober faces a maximum statutory penalty of 10 years in prison for the health care fraud conviction, and an additional, mandatory two years in prison for the identity theft conviction. His 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.

Travis Gober’s brother, Jeremy Gober, was previously charged with health care fraud and identity theft related to other sleep clinics in the Central Valley in December 2022. The charges are only allegations. Jeremy Gober is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. —  Billy Glyn Sims Jr., 29, of Yuba City, pleaded guilty today to one count of unlawfully dealing in firearms without a license and one count of being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between April 1, 2022, and March 9, 2023, Sims, who is not a licensed firearms dealer, unlawfully engaged in the business of dealing in firearms. In three separate transactions in motel and apartment complex parking lots, Sims sold an FBI confidential source a Mossberg Shotgun, a Ruger single-action revolver, and a black powder revolver and a box containing .45 caliber ammunition. The transactions occurred in Yuba, Yolo, and Sutter Counties. At least one of the transactions occurred after Sims became aware that the source was a “double felon” and thus prohibited from possessing firearms or ammunition. Sims also offered to sell the source several other firearms, including an AR-15 assault rifle, although these transactions were never completed. Sims was prohibited from possessing any firearms because of his own prior felony convictions, including for domestic violence and burglary.

This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the California Department of Corrections and Rehabilitation. Assistant U.S. Attorneys Justin L. Lee and Dhruv M. Sharma are prosecuting the case.

Sims is scheduled to be sentenced by U.S. District Judge Daniel J. Calabretta on January 18, 2024. He faces a maximum statutory penalty of five years in prison and a $250,000 fine for unlawfully dealing in firearms, and 10 years in prison and a $250,000 fine for being a felon in possession of a firearm. 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

SACRAMENTO, Calif. — Antonio Long Andrews, 29, of Sacramento, was sentenced today to 19 years and seven months in prison and 20 years of supervised release for sex trafficking by force, fraud or coercion, United States Attorney Phillip A. Talbert announced.

According to evidence presented at a 2022 jury trial, between August 2017 and December 2018, Long used force and coercion to convince a female to engage in commercial sexual acts for his financial benefit. As part of Long’s pimping operation, he put the victim in motel rooms around the state of California and had them engage in prostitution acts on the street in order to make money from their prostitution activity. Long ran his pimping operation in Sacramento, Oakland, San Jose, and Orange County.

According to evidence presented at trial, on September 28, 2018, as part of his sex trafficking operation, Long repeatedly punched the victim inside his car in the parking lot of a motel. During the attack, the victim tried to exit the car, but an associate of Long kept her inside the car while Long continued to beat her. An eyewitness saw the attack, and the motel’s security camera recorded the victim being dragged under Long’s car. Although the victim was injured and had two black eyes, a week later, Long had continued to engage her in commercial sex acts for his benefit.

During recorded calls from the Sacramento County Jail, Long maintained control over the victim, conveying that she was expected to earn money for him by selling her body to strangers. After Long’s release from the Sacramento County Jail, Long continued his exploitation of the victim from late November 2018 until his arrest on December 5, 2018.  At the sentencing hearing, the judge noted that Long saw the victim as property and took advantage of her so he could make money.

This case was the product of an investigation by the Sacramento Police Department, California Department of Justice’s Special Operations Unit, and the Federal Bureau of Investigation. The California Highway Patrol, Sacramento Sheriff’s Department, and the Sacramento District Attorney’s Office assisted in the investigation. Assistant United States Attorneys Jason Hitt, Christina McCall and Nirav Desai prosecuted the case.

SACRAMENTO, Calif. —  Jason Michael Carlsen, 50, of Sacramento, was sentenced Tuesday to 10 years in prison for possession of child pornography, United States Attorney Phillip A. Talbert announced. 

According to court documents, Carlsen possessed child pornography in July 2022.  At the time he possessed these images, Carlsen was on federal supervised release for a prior federal conviction for possession of child pornography.

This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Nicholas M. Fogg prosecuted the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.

SACRAMENTO, Calif. — Folsom company Amani Investments LLC, which operated Coinucopia kiosks that exchanged U.S. currency for Bitcoin, forfeited $1 million in currency, a Mercedes-Benz, Bitcoin, and other items for its criminal efforts to avoid reporting requirements under the Bank Secrecy Act, U.S. Attorney Phillip A. Talbert announced.

In February 2023, Amani Investments LLC, doing business as Coinucopia, pleaded guilty to conspiring to avoid filing Currency Transaction Reports (CTRs) that are required under federal law.  The federal Bank Secrecy Act was enacted by Congress to combat the laundering of criminal proceeds, and it requires money services businesses to report each transaction involving more than $10,000 in currency.  Willful violation of the requirement to file these reports, commonly called CTRs, is a federal criminal offense.

According to court documents, on multiple occasions Amani Investments exchanged over $10,000 in U.S. currency for Bitcoin without filing a CTR, as required by the Bank Secrecy Act. Many transactions were conducted during face-to-face exchanges of more than $10,000 in cash for Bitcoin with a Managing Officer of Amani Investments, all without the filing of a CTR. In total, approximately $1 million was involved in the crime. Today the court finalized Amani Investments’ forfeiture order, which included a Mercedes-Benz E63, Bitcoin, gold coins, and $1 million in United States currency.

“Federal currency transaction reporting requirements are intended to protect our financial system from the influx of criminal proceeds,” said U.S. Attorney Talbert. “The U.S. Attorney’s Office will continue to hold accountable those who seek to evade these requirements.”

“Today’s sentence holds Amani Investments, dba Coinucopia, a registered Money Service Business, accountable for violating the Bank Secrecy Act,” said Tatum King, Special Agent in Charge, HSI San Francisco / NorCal. “We know that money is the lifeblood of criminals as evidenced by the $1 million forfeiture, which is why it is a primary focus for HSI across all of our investigative programs. We appreciate the work of HSI personnel with FBI, USPIS, DEA, IRS-CI, USAO Eastern District, and Sacramento County Sheriff’s Office who worked this multi-year case collaboratively and resulted in the substantial forfeiture of ill-gotten gains.”

This case is the product of an investigation by Homeland Security Investigations (HSI), as part of the Northern California Illicit Digital Economy (NCIDE) Task Force, consisting of agents from HSI, the U.S. Postal Inspection Service, the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation, the U.S. Postal Service Office of Inspector General, and the Drug Enforcement Administration. The NCIDE Task Force is a joint, federal task force focused on targeting all forms of dark web and cryptocurrency criminal activity in the Eastern District of California. Assistant U.S. Attorneys Robert C. Abendroth and Veronica M.A. Alegría prosecuted the case.