Eastern District of California
Press releases recorded for this federal judicial district.
Fresno Woman Pleads Guilty to over $300,000 in Pandemic Relief FraudRead the Press Release
FRESNO, Calif. — Cecilia Aquino, 34, of Fresno, pleaded guilty today to submitting fraudulent unemployment insurance claims in at least seven states and submitting fraudulent applications for Small Business Administration (SBA) Economic Injury Disaster Loans using stolen identities during the COVID-19 pandemic, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between June 2020 and November 2020, Aquino submitted unemployment insurance claims and SBA loan applications that contained several misrepresentations, including that the named individuals last worked as self-employed dancers, owned interior design businesses, and that they lost their jobs and business revenues because of the COVID-19 pandemic. The state agencies that administer the unemployment insurance system, the SBA, and the United States suffered an actual loss of $220,000 and were subject to a potential loss of more than $300,000 because of Aquino’s fraud. Aquino used the money for gambling, rent, shopping, and other personal expenditures.
This case is the product of an investigation by the Federal Bureau of Investigation, the SBA Office of Inspector General, and the Department of Labor Office of Inspector General. Assistant U.S. Attorney Joseph Barton is prosecuting the case.
Aquino is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on Feb. 21, 2023. Aquino faces a maximum statutory penalty of 20 years in prison and fine of up to $250,000 for the unemployment insurance and SBA loan fraud, and a mandatory two-year consecutive sentence for the identity theft. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This effort is part of a California COVID-19 Fraud Enforcement Strike Force operation, one of three 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.
Temporary Resident in Yosemite National Park Facing Federal ChargesRead the Press Release
FRESNO, Calif. — A federal grand jury returned a six-count indictment today against Devin Michael Cuellar, 28, a transient, charging him with being a felon in possession of a firearm and ammunition, being a drug addict in possession of a sawed-off shotgun and ammunition, destruction of property, receipt of stolen property, theft, and making a false statement to Yosemite National Park rangers, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Cuellar, a convicted felon on parole, broke into a private residence at Koon Hollar Road in Wawona within Yosemite National Park and resided there without permission of the owner for several months during the summer of 2021. During that time, the residence was trashed, a toolbox, flat screen TV, wrought iron candle holders, tools, and other items were stolen from the residence, and items reported stolen from other victims in Wawona were found. A sawed-off shotgun with Cuellar’s DNA was found in the residence, along with ammunition. Cuellar is prohibited from possessing firearms and ammunition because he was previously convicted of carjacking and possessing controlled substances for sale and was an unlawful user of methamphetamine and heroin. In addition, Cuellar is alleged to have falsely stated to park rangers that he had not been at the residence.
This case is the product of an investigation by Yosemite 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 is prosecuting the case.
If convicted, Cuellar faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for each of the two firearms offenses. He also faces five years in prison and a $250,000 fine if convicted of destruction of property and false statements; three years in prison for receipt of stolen property and one year in custody for theft. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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.
Sixth Defendant Pleads Guilty in Large-Scale Sacramento Cocaine and Heroin Trafficking ConspiraciesRead the Press Release
SACRAMENTO, Calif. — Bobby Conner, 51, of Sacramento, pleaded guilty today to two counts of using a cellphone to facilitate a drug trafficking offense, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Conner is among the 15 federal defendants arrested in 2021 and charged in a 45-count indictment for trafficking narcotics as part of a DEA-led multi-agency operation targeting cocaine and heroin traffickers in North Sacramento. Conner was intercepted during a 30-day wiretap trafficking crack cocaine and powder cocaine.
This case is the product of an investigation by the Drug Enforcement Administration, the Federal Bureau of Investigation, Homeland Security Investigations, the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the U.S. Forest Service, the U.S. Postal Inspection Service, the Bureau of Land Management, the California Department of Corrections and Rehabilitation, the California Department of Justice, the California Highway Patrol, the Sacramento County Sheriff’s Office, and the Sacramento Police Department. Assistant U.S. Attorneys Cameron L. Desmond and Aaron D. Pennekamp are prosecuting the case.
Conner is scheduled to be sentenced on March 2, 2023, by U.S. District Judge Troy L. Nunley. He faces a maximum statutory penalty of eight 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.
On Sept. 29, 2022, Jason Tolbert, 45, of Sacramento, was sentenced to four years and nine months in prison for possession with intent to distribute cocaine.
On Nov. 17, 2022, Charles Carter, 36, of Sacramento, was sentenced to 70 months in prison for conspiracy to distribute and to possess with intent to distribute at least 500 grams of cocaine.
On Nov. 17, 2022, Arlington Caine, 48, of Rio Linda, and Andre Hellams, 40, of North Highlands, pleaded guilty to two counts of using a cellphone to facilitate a drug trafficking offense. Caine and Hellams are scheduled to be sentenced on Feb. 9, 2023.
On July 22, 2022, Michael Hampton, 57, of Vallejo, pleaded guilty to conspiracy to distribute and possess with intent to distribute at least 500 grams of cocaine. Michael Hampton is scheduled to be sentenced on Dec. 8, 2022.
Charges are pending against the following defendants: Tyrone Anderson, 40, of Sacramento; Maurice Bryant, 51, of Antelope; Yovanny Ontiveros, 41, of Sacramento; Alex White, 61, of North Highlands; Steven Hampton, 61, of Sacramento; Wilmer Harden, 52, of Elk Grove; Jerome Adams, 54, of North Highlands; Dwight Haney, 49, of Sacramento; and Mark Martin, 62, of Sacramento. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This prosecution is part of the Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. The Sacramento Strike Force is a co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The specific mission of the Sacramento Strike Force is to identify, investigate, disrupt, and dismantle the most significant drug trafficking organizations (DTOs) and transnational criminal organizations (TCOs) shipping narcotics, firearms, and money through the Eastern District of California, thereby reducing the flow of these criminal resources in California and the rest of the United States. The Sacramento Strike Force leads intelligence-driven investigations targeting the leadership and support elements of these DTOs and TCOs operating within the Eastern District of California, regardless of their geographic base of operations.
Sacramento Man Pleads Guilty to Methamphetamine DistributionRead the Press Release
SACRAMENTO, Calif. — Francelino Mario Alves, 51, of Sacramento, pleaded guilty on Tuesday to distribution of methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on June 13, 2017, Alves sold a pound of methamphetamine to an undercover officer. On July 12, 2017, Alves sold another pound of methamphetamine to the undercover officer.
This case is the product of an investigation by the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney David W. Spencer is prosecuting the case.
Alves is scheduled to be sentenced by U.S. District Judge John A. Mendez on March 7, 2023. Alves faces a maximum statutory penalty of life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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.
Placerville Man Indicted on Drug Trafficking ChargesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Richard Turner, 60, of Placerville, charging him with conspiracy to distribute and possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, agents executed a federal search warrant at Turner’s residence in Placerville. During the authorized search, agents located over 40 pounds of methamphetamine. Agents also located six firearms, including one previously reported as stolen. Turner is prohibited from possessing firearms because he has five prior felony convictions, including a conviction for vehicle theft and drug trafficking offenses.
This case is the product of an investigation by the Drug Enforcement Administration, the El Dorado County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Forest Service, and the Bureau of Land Management. Assistant U.S. Attorney Alstyn Bennett is prosecuting the case.
If convicted of the methamphetamine trafficking offenses, Turner faces a mandatory minimum sentence of 10 years in prison, up to a maximum statutory penalty of life in prison, and a $10 million fine. If convicted of being a felon in possession of a firearm, Turner faces a maximum sentence of 15 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 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.
Korean National Sentenced to Almost 2 Years in Prison for “Bust Out” Bank Fraud Scheme in Sacramento Area and ElsewhereRead the Press Release
SACRAMENTO, Calif. — Jong Eun Lee, 48, a Korean national residing in Southern California, was sentenced today to 22 months in prison for a bank fraud conspiracy, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between January 2016, and December 2017, Lee participated in a nationwide check kiting “bust out” scheme in order to obtain cash from banks. The scheme’s participants obtained a real Republic of Korea passport that was altered to bear a new photograph and name, which they used to open bank accounts with a small amount of cash. The accounts were dormant until a time the participants believed the bank would allow the account holder to deposit a check and make withdrawals before the check actually cleared. At that time, the participants wrote checks from a different bank account with non-sufficient funds, deposited those checks into the dormant account, and then withdrew cash from the dormant account before the checks cleared. The participants would access funds by purchasing a money order and then deposit the money order into yet another bank account associated with the scheme.
Lee is associated with opening source accounts or draining victim accounts. These bust-outs resulted in an actual loss of $378,735 to the banks, and a total intended loss of $756,218 based on additional, unsuccessful bust-out attempts.
On Nov. 10, 2022, Kyung Min Kong, 55, a citizen of South Korea, was sentenced to seven years and nine months in prison. Co-defendant Jeffrey Kim is scheduled to be sentenced on Jan. 26, 2023. Charges are pending against the remaining defendants: Ki Jang, Hee Soung Oh, and Bon Soke Hong, who were all indicted on Oct. 21, 2021. 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 IRS Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorney Audrey B. Hemesath is prosecuting the case.
Ten Associated with Nuestra Familia Plead Guilty to Drug Trafficking Offenses in Kings and Tulare CountiesRead the Press Release
FRESNO, Calif. — Ten defendants arrested as part of Operation Red Reaper have pleaded guilty today to drug trafficking offenses, U.S. Attorney Phillip A. Talbert announced.
In 2019, Operation Red Reaper was a federal, state, and local law enforcement operation that targeted the criminal activities of the Nuestra Familia Prison Gang in the counties of Kings and Tulare. At the conclusion of the operation, federal charges were brought against 23 of those defendants, with the remaining being charged by the Kings County District Attorney’s Office.
Pleading guilty today are Raymond Lopez, 35, of Pleasant Valley State Prison; Jesse Juarez, 32, of Visalia; Daniel Juarez, 30, of Visalia; Michael Rocha, 40, of Visalia; Angel Montes, 26, of Visalia; Rafael Lopez, 41, of Visalia; Manuel Barrera, 28, of Kettleman City; Joann Bernal, 36, of Armona; Ramon Amador, 33, of Riverdale; and Raul Lopez Jr., 51, of Visalia.
Two co-defendants have been sentenced after pleading guilty. On May 24, 2021, Salvador Castro Jr., 52, of Fresno, was sentenced to 17 years and six months in prison, and on July 11, 2022, Manuel Garcia, 36, of Armona, was sentenced to 15 years in prison.
According to court documents, in March 2019, various agencies partnered in an investigation into the Nuestra Familia prison gang and the Norteño street gang in Kings County. The investigation uncovered that the Nuestra Familia was responsible for large-scale trafficking of methamphetamine and cocaine, as well as various firearms offenses and other violent crimes.
According to court documents, high-ranking Nuestra Familia members Salvador Castro Jr. and Raymond Lopez used contraband cellphones from inside Fresno County’s Pleasant Valley State Prison to arrange the transport of illicit narcotics from drug sources in California and Mexico to a stash house in Kings County. From that stash house, gang members outside of the prison coordinated the preparation and delivery of the drugs to distributors throughout Kings and Tulare Counties.
This case is the product of an investigation by the Federal Bureau of Investigation, the Kings County Gang Task Force, the Special Operations Unit of the California Department of Justice and the California Highway Patrol, the California Department of Corrections and Rehabilitation, and the Kings County District Attorney's Office. Assistant U.S. Attorneys Justin J. Gilio, Kimberly A. Sanchez, and Jessica A. Massey are prosecuting the case.
Barrera, Amador, Montes, and Raul Lopez are scheduled to be sentenced by U.S. District Judge Ana de Alba on March 6, 2023, and the remaining defendants are scheduled to be sentenced by Judge de Alba on March 20, 2023. They face a range of mandatory minimum sentences from between five to 15 years in prison and a range of maximum sentences, including up to life in prison. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Charges are pending against the remaining defendants. The charges are only allegations; they are 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.
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 Repeat Sex Offender Pleads Guilty to Possessing Child PornographyRead the Press Release
SACRAMENTO, Calif. — Joshua Klomp, 48, of Sacramento, pleaded guilty today to possession of child pornography following a prior sex offense conviction, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in 2018, during a probation visit in 2018, Klomp was found to be in possession of two cellphones that contained thousands of images and video files of thousands of images and video files of children engaging in sexually explicit conduct. At the time he possessed these images and video files, Klomp was on federal supervised release for a 2006 federal conviction for possession of child pornography. Klomp served 10 years in prison for that offense. Prior to that federal conviction, Klomp was also previously convicted in Butte County in 1995 of committing a lewd and lascivious act with a child.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Sam Stefanki is prosecuting the case.
Klomp is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Feb. 14, 2023. Klomp faces a mandatory minimum of 10 years in prison and a maximum statutory penalty of 20 years in prison, as well as 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 to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Sacramento Attorney and Filer of ADA Lawsuits Pleads Guilty to Filing False Tax ReturnRead the Press Release
SACRAMENTO, Calif. — A Sacramento attorney and filer of thousands of disability discrimination lawsuits pleaded guilty today to filing a false tax return on which he underreported the income he earned from many of those lawsuits. U.S. Attorney Phillip A. Talbert and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
According to court documents and statements made in court, Scott Norris Johnson, 60, of Carmichael, owned and operated Disabled Access Prevents Injury Inc (DAPI), a legal services corporation. First using DAPI, and later a law firm, Johnson filed more than 4,000 lawsuits in the Eastern District of California and elsewhere under the Americans with Disabilities Act of 1990 and related California statutes, naming himself as the plaintiff.
Under the Small Business Job Protection Act of 1996, payments related to lawsuit settlements or awards are taxable unless paid on account of personal physical injury or physical sickness. Johnson, who worked as an attorney at the IRS earlier in his career, was required to report the taxable portion of the lawsuit settlements and awards he received. He nonetheless intentionally underreported this income on his 2012, 2013, and 2014 tax returns. By understating the lawsuit settlements and awards, Johnson and DAPI paid little to no income tax for tax years 2012, 2013 and 2014. Johnson caused a loss to the IRS of more than $250,000.
IRS-Criminal Investigation is investigating the case. Assistant U.S. Attorney Katherine T. Lydon and Assistant Chief Matthew J. Kluge of the Tax Division are prosecuting the case.
Johnson is scheduled to be sentenced on March 7. 2023, by U.S. District Judge John A. Mendez and faces a maximum penalty of three years in prison for filing a false tax return. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Fresno Man Sentenced to More than 5 years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
FRESNO, Calif. — Marquis Hawkins, 30, of Fresno, was sentenced Monday to five years and 10 months in prison for being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on March 7, 2019, law enforcement officers conducted a traffic stop on a car that Hawkins was driving. During the traffic stop, the officers searched Hawkins and found a loaded .38‑caliber revolver inside his sweatshirt pocket. Hawkins is prohibited from possessing firearms because he has previously been convicted of two crimes of domestic violence.
This case was the result of an investigation by the Federal Bureau of Investigation and the Fresno Police Department. Assistant U.S. Attorney Justin J. Gilio 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.
California Attorney and Filer of ADA Lawsuits Pleads Guilty to Filing False Tax ReturnRead the Press Release
A California attorney and filer of thousands of disability discrimination lawsuits pleaded guilty today to filing a false tax return on which he underreported the income he earned from many of those lawsuits.
According to court documents and statements made in court, Scott Norris Johnson, 60, of Carmichael, owned and operated Disabled Access Prevents Injury Inc (DAPI), a legal services corporation. First using DAPI, and later a law firm, Johnson filed more than 4,000 lawsuits in the Eastern District of California and elsewhere under the Americans with Disabilities Act of 1990 and related California statutes, naming himself as the plaintiff.
Under the Small Business Job Protection Act of 1996, payments related to lawsuit settlements or awards are taxable unless paid on account of personal physical injury or physical sickness. Johnson, who worked as an attorney at the IRS earlier in his career, was required to report the taxable portion of the lawsuit settlements and awards he received. He nonetheless intentionally underreported this income on his 2012, 2013, and 2014 tax returns. By understating the lawsuit settlements and awards, Johnson and DAPI paid little to no income tax for tax years 2012, 2013 and 2014. Johnson caused a loss to the IRS of more than $250,000.
Johnson is scheduled to be sentenced on March 7, 2023, and faces a maximum penalty of three years in prison for filing a false tax return. He also faces also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Phillip A. Talbert for the Eastern District of California made the announcement.
IRS-Criminal Investigation is investigating the case.
Assistant Chief Matthew J. Kluge of the Tax Division and Assistant U.S. Attorney Katherine T. Lydon of the Eastern District of California are prosecuting the case.
Fresno Man Charged in $4+ Million Ponzi and COVID-19 Benefits Fraud SchemesRead the Press Release
FRESNO, Calif. — Royce Newcomb, 60, of Fresno, charged in connection with schemes estimated to have defrauded investors and the government out of more than $4.2 million was arrested today in Fresno, U.S. Attorney Phillip A. Talbert announced.
The indictment, unsealed following Newcomb’s arrest, charges him with five counts of wire fraud and one count of money laundering for running Ponzi, COVID-19 benefits, and other fraud schemes through his company, Strategic Innovations LLC.
According to court records, beginning in 2017, Newcomb owned and operated Strategic Innovations that purported to make smart home and business products meant to stop package theft, prevent weather damage to packages, and make it easier for delivery services and emergency responders to find homes and businesses. He created prototypes for his products, applied for and was issued patents and trademarks, and received local and national media attention that he used to secure millions of dollars from investors.
Newcomb told his investors that he had been awarded a grant by the National Science Foundation and that he would use their money to further develop and bring his products to market. He also promised them significant returns in as little as three months. But none of these representations were true. Instead, Newcomb used the investors’ money to pay for his personal expenses such as gambling, luxury vehicles, and a mansion, to pay for refunds to other investors, and to pay for new, unrelated projects without the investors’ authorization.
In the midst of Newcomb’s Ponzi scheme, he also received a fraudulent COVID-19 loan for over $70,000 from the Small Business Administration and fraudulent loans for over $190,000 from private lenders. He lied about his company having hundreds of thousands and even millions in revenues to get these loans.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Joseph Barton and Jeffrey Spivak are prosecuting the case.
If convicted, Newcomb faces maximum statutory penalties of 20 years in prison and a $250,000 fine for each of the wire fraud counts, and 10 years in prison and a $250,000 fine for the money laundering count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This effort is part of a California COVID-19 Fraud Enforcement Strike Force operation, one of three 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.
Twelve Defendants Charged in 5 Indictments with Trafficking Fentanyl and Methamphetamine in the Central ValleyRead the Press Release
FRESNO, Calif. — Due to the efforts of federal and local law enforcement agencies working together over the course of the past 18 months on an investigation targeting local criminal street gangs in Bakersfield, 12 defendants were indicted for drug trafficking and firearms offenses, U.S. Attorney Phillip A. Talbert announced.
On Nov. 17, 2022, a federal grand jury returned an 11-count indictment against William Arthur Poush, 43, of Bakersfield; Rosa Fernandez, 43, of Bakersfield; Timothy Robert Hingston, 39, of North Hollywood; Spencer Matthew Hopper, 35, of Montrose; and Dale Vincent Perez, 39, of Bakersfield. According to court documents, on Jan. 20, 2022, and Feb. 24, 2022, Poush and Fernandez sold over 50 grams of methamphetamine to a confidential informant. On May 11, 2022, Poush sold over 50 grams of methamphetamine and a quantity of fentanyl pills to a confidential informant. On Aug. 13, 2022, Hingston and Hopper distributed over 500 grams of methamphetamine and over 400 grams of fentanyl to Poush, and Poush possessed that same quantity with intent to distribute. On Aug. 19, 2022, Poush and Perez conspired to possess with intent to distribute over 50 grams of methamphetamine, and Perez possessed that same quantity with intent to distribute. And on Sept. 1, 2022, Poush possessed over 50 grams of methamphetamine with intent to distribute.
A federal grand jury returned a three-count indictment against Bakersfield residents Dale Wesley Hubbard, 49, and Darlene Crystal Viera, 40, charging them with conspiring and distributing methamphetamine and fentanyl. According to court documents, Hubbard and Viera sold over 50 grams of methamphetamine and over 40 grams of fentanyl to a confidential informant on May 3, 2022; and sold over 50 grams of methamphetamine to a confidential informant on May 25, 2022.
A federal grand jury returned a three-count indictment against Bakersfield residents Manuel Yanes, 25, and Jorge Luis Yanes, 28, charging them with conspiracy to distribute methamphetamine and distribution of methamphetamine. According to court documents, on June 29, 2022, and on July 22, 2022, Manuel Yanes agreed to sell over 50 grams of methamphetamine to a confidential informant and Jorge Yanes delivered that same amount of methamphetamine to a confidential informant.
A federal grand jury returned a four-count indictment against Bakersfield residents Luis Mauricio Castenon, 33, and Bryan Steven Reyes, 28, charging them with conspiracy to distribute and distribution of methamphetamine. According to court documents, on July 16, 2020, Castenon sold over 50 grams of methamphetamine to a confidential informant. On Dec. 10, 2021, Castenon and Reyes conspired to distribute and did distribute over 50 grams of methamphetamine to a confidential informant, and on April 15, 2022, Reyes sold over 50 grams of methamphetamine to a confidential informant.
A federal grand jury returned a two-count indictment against David Garcia, 35, of Bakersfield, charging him with being a felon in possession of a firearm and possession with intent to distribute methamphetamine. According to court documents, during a traffic stop, officers learned that Garcia was on parole and subject to search terms. A search of his vehicle yielded a stolen, loaded firearm and over 50 grams of methamphetamine.
These cases are the product of an investigation conducted by Homeland Security Investigations, the Bakersfield Police Department, the Kern County Probation Department, the Kern County District Attorney’s Office, and the Kern County Sheriff’s Office, with assistance from the Drug Enforcement Administration, the Federal Bureau of Investigation, the California Department of Corrections and Rehabilitation (CDCR), and the California Highway Patrol. Assistant U.S. Attorney Jessica A. Massey is prosecuting the cases.
If convicted, the defendants face various maximum sentences between 10 years and life in prison and $250,000 to $10 million in fines. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This 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.
Mother of Fresno County Jail Inmate Sentenced to 4 Years in Prison for Conspiring to Smuggle Heroin and Methamphetamine into the JailRead the Press Release
FRESNO, Calif. — Eva Dolores Romero, 55, of Fresno, was sentenced today to four years and two months in prison for conspiring to possess with intent to distribute and to distribute heroin and methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between Dec. 1, 2020, and Jan. 26, 2021, Romero’s son was an inmate at the Fresno County Jail. Romero conspired with her son and others outside of jail to smuggle methamphetamine and heroin into the jail for distribution among inmates. The plot was unfoiled when law enforcement agents reviewed recorded jail calls and learned about the attempted smuggling set to occur on January 26. On that date, law enforcement intercepted an individual attempting to deliver athletic shoes to the jail for an inmate. The shoes were searched, and hidden compartments were found inside the shoes containing the illicit narcotics.
This case was the product of an investigation by Homeland Security Investigations, the Drug Enforcement Administration, the Fresno Police Department, and the Fresno County Sheriff’s Office. Assistant U.S. Attorney Justin J. Gilio prosecuted the case.
Modesto Man Indicted for Sexual Exploitation of Numerous Children Using SnapchatRead the Press Release
FRESNO, Calif. — A federal grand jury returned a five-count indictment yesterday against Jacob Jacobsen, 27, of Modesto, charging him with four counts of sexual exploitation of a child and one count of receipt of child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Jacobsen came to the attention of law enforcement in Memphis, Tennessee, when the mother of a 13-year-old girl reported that Jacobsen had been communicating with her through Snapchat, requesting sexually explicit content. Investigators with the Memphis Police Department and the Memphis FBI Office executed numerous search warrants and discovered that Jacobsen had been in contact with as many as 175 victims while using the Snapchat screen names “trippinj” and “treydawgg2000.” Jacobsen often purported to be 16 or 17 years old when communicating with victims and requesting that they create and send to him sexually explicit photographs and videos.
This case is the product of an investigation by the Memphis Police Department and the Memphis and Ripon FBI Offices. Assistant U.S. Attorney David Gappa is prosecuting the case.
If convicted, Jacobsen faces a maximum statutory penalty of 30 years in prison and a $250,000 fine for each of the four counts of sexual exploitation of a minor. The potential punishments for receipt of child pornography include a prison term of 20 years and a fine of $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Fresno Man Pleads Guilty to Using a Stolen Identity to Steal Hundreds of Thousands of Dollars from Banks and the Federal GovernmentRead the Press Release
FRESNO, Calif. — Brian Stoffel, 38, of Fresno, pleaded guilty today to bank fraud and aggravated identity theft charges for using a victim’s identity to steal money from the victim’s bank accounts and get fraudulent loans in the victim’s name, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between September 2020 and August 2021, Stoffel obtained the personally identifiable information for an individual and used it to drain the victim’s savings and apply for loans in the victim’s identity. This included a Department of Homeland Security Federal Emergency Management Agency (FEMA) loan for disaster assistance related to a wildfire. Stoffel’s scheme resulted in a loss of $420,000. He used the proceeds for personal expenses, including to buy a new motorcycle and make purchases at retail stores.
This case is the product of an investigation by the Fresno County Sheriff’s Office Elder Abuse Unit and the Federal Bureau of Investigation. Assistant U.S. Attorney Joseph Barton is prosecuting the case.
Stoffel is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on February 2, 2023. Stoffel faces a maximum penalty of 30 years in prison and $1 million fine for the bank fraud charge and mandatory two years in prison, consecutive to other counts, for the identity theft charge. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Fresno Bank Employee Arrested for Stealing over $70,000 from Customers’ AccountsRead the Press Release
FRESNO, Calif. — Lladira Hernandez, 23, of Fresno, was arrested today on charges that she stole over $70,000 from multiple customers’ accounts at a Fresno-based bank where she was previously employed, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in April 2022, Hernandez was hired by the bank as a customer service representative. She began stealing the bank account information for customers she helped over the phone and used it to pay bills for herself and her associates. This included mortgage payments, car payments, and phone bills. In August 2022, Hernandez transferred more than $45,000 from two customers’ accounts into her own account and abruptly quit her job at the bank. She proceeded to withdraw that money from her account and was captured doing so on surveillance video.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Joseph Barton is prosecuting the case.
If convicted, Hernandez 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. Hernandez is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Yuba County Men Indicted on Drug Trafficking ChargesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 12-count indictment today against Darrell Anderson, 50, and Ricky Phienemanh, 35, both of Olivehurst, charging them with conspiracy to distribute heroin and methamphetamine, distribution of methamphetamine, distribution of heroin, and possession with intent to distribute heroin, U.S. Attorney Phillip A. Talbert announced.
According to court documents, throughout 2020, Anderson sold heroin to an undercover officer. In 2022, Anderson conspired with Phienemanh and Sanit Khamthong, 41, of Marysville to distribute, and did in fact distribute, methamphetamine and heroin. During the investigation, law enforcement learned that Phienemanh and Khamthong were supplying Anderson with large amounts of methamphetamine and heroin. Khamthong was separately indicted in September 2022 and is in federal custody.
This case is the product of an investigation by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Forest Service, the Bureau of Land Management, the U.S. Postal Inspection Service, the Yuba County Sheriff’s Office, the Sutter County Sheriff’s Office, the Yuba City Police Department, the Marysville Police Department, and the California Highway Patrol. Assistant U.S. Attorney Alstyn Bennett is prosecuting the case.
If convicted, Anderson and Phienemanh face a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
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.
Wasco Couple Arrested for 6-Year Credit Card Fraud Scheme that Caused $825,000 in LossesRead the Press Release
FRESNO, Calif. — Miguel Leyva, 35, and Karina Gutierrez, 32, both of Wasco, were arrested today after a federal grand jury indicted them for conspiracy, bank fraud, access device fraud, and aggravated identity theft in connection with a long-running credit card fraud scheme, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between February 2016 and August 2022, Leyva and Gutierrez stole the personally identifiable information (PII) for individuals some obtained from health care providers where Gutierrez worked. They then used the PII to obtain fraudulent credit cards from banks in the identities of those individuals. Specifically, Leyva and Gutierrez created online accounts with credit reporting agencies for the individuals so they could check credit scores before applying for the credit cards. They then used false identification documents to open the credit cards and provided billing addresses, phone numbers, and email addresses over which they had control so any communications from the banks would go to them. They also used checks that had been stolen from trucking and other companies to access the companies’ bank accounts and make fraudulent payments to the credit cards.
Leyva and Gutierrez’s scheme caused an actual loss of over $825,000 to the banks. They spent the proceeds on home appliances, automobile accessories, gardening equipment, designer clothing, concert tickets, professional sporting events tickets, and travel, among other items. Often times, they sold the merchandise for cash on social media sites.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Joseph Barton is prosecuting the case.
If convicted, Leyva and Gutierrez face a maximum penalty of 30 years in prison and $1 million fine for each of the conspiracy and bank fraud charges, 10 years in prison and $250,000 fine for the access device fraud charges, and mandatory two years in prison, consecutive to other counts, for the identity theft charges. Any sentence, however, would be determined at the discretion of the court after consideration of the applicable statutory factors and Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations. Leyva and Gutierrez are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Vacaville Felon Indicted for Manufacturing DMT and Illegal Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment today against Robert Charles Crist, 56, of Vacaville, charging him with being a felon in possession of a firearm and manufacturing a controlled substance, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Sept. 20, 2022, law enforcement officers executed a search warrant at Crist’s home and found a lab he used to manufacture N,N‑Dimethyltryptamine, or “DMT,” a Schedule I controlled substance. Crist traveled to Hawaii to obtain plant materials for manufacturing DMT, which he mailed back to California in order to turn the plant materials into a crystalline controlled substance. Officers also found Crist in possession of a firearm. Crist is prohibited from possessing firearms because he has five prior felony convictions.
This case is the product of an investigation by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco and Firearms; the U.S. Postal Inspection Service; and the Solano County Sheriff’s Office. Assistant U.S. Attorney Emily Sauvageau is prosecuting the case.
If convicted, Crist faces a maximum statutory penalty of 15 years in prison and a $250,000 fine on the firearm count and a maximum of 20 years in prison if convicted for the manufacturing of a controlled substance count. Any sentence, however, would be determined at the discretion of the court after considering 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.
Two Sacramento Men Indicted for Conspiracy, Bank Fraud, Possession of Stolen Mail, and Possession of Mail Keys or LocksRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an eight-count indictment today against Carlos Aranda, 40, and Daniel Hunt, 37, both of Sacramento, charging them with conspiracy, bank fraud, and possession of stolen mail, U.S. Attorney Phillip A. Talbert announced. Aranda is also charged with possession of mail keys or locks.
According to court documents, Aranda, Hunt, and others engaged in a conspiracy to obtain and counterfeit postal keys, which used to steal mail from the U.S. mail system. From the stolen mail, Aranda, Hunt, and their conspirators obtained identifying information, financial information, and financial instruments of other people. The conspirators periodically gathered together at motel rooms to alter or “wash” checks together. The conspirators then took the checks and attempted to negotiate, deposit, or cash them.
This case is the product of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorney Elliot C. Wong is prosecuting the case.
If convicted, Aranda and Hunt face a maximum statutory penalty of 30 years in prison and a $1 million fine for each count of bank fraud, and a maximum statutory penalty of five years in prison and a $250,000 fine for the counts of conspiracy and possession of stolen mail. Aranda further faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for the count of possession of a mail key or lock. 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.
Stockton Man Sentenced to 10 Years in Prison for Methamphetamine TraffickingRead the Press Release
SACRAMENTO, Calif. — Jeremy David Dosier, 26, of Stockton, was sentenced today to 10 years in prison for possession with intent to distribute at least 500 grams of methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in August 2020, law enforcement executed a search warrant at Dosier’s home in in Stockton and found Dosier in the bathroom destroying a large quantity of methamphetamine in the bathtub by turning on the faucet and breaking off the faucet. Agents were able to recover 3.5 pounds of methamphetamine. Next to the bathtub were several open bags that had contained the methamphetamine the defendant destroyed. On Oct. 14, 2022, Dosier pleaded guilty and admitted that he had possessed approximately 10-13 pounds of methamphetamine before agents arrived at his house.
During the search of Dosier’s residence, agents also seized a loaded 9 mm pistol under a couch cushion and $11,830 in cash.
This case was the product of an investigation by the Drug Enforcement Administration and the San Joaquin County Metro Task Force. Assistant U.S. Attorney Cameron Desmond 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.
One Defendant Sentenced, 2 More Plead Guilty in Large-Scale Sacramento-Area Cocaine and Heroin Trafficking ConspiraciesRead the Press Release
SACRAMENTO, Calif. — One defendant was sentenced and two others pleaded guilty today for their participation in a conspiracy to distribute cocaine, crack cocaine, and heroin in the Eastern District of California, U.S. Attorney Phillip A. Talbert announced.
On June 3, 2021, a federal grand jury returned a 45-count indictment against 15 individuals for offenses related to a conspiracy to traffic cocaine, crack cocaine, and heroin. Today, Charles Carter, 36, of Sacramento, was sentenced to five years and 10 months in prison for a conspiracy to distribute and possess with intent to distribute at least 500 grams of cocaine. Arlington Caine, 48, of Rio Linda, and Andre Hellams, 40, of North Highlands, each pleaded guilty to two counts of using a cellphone to facilitate a drug trafficking offense.
According to court documents, Carter, Hellams, and Caine are among the 15 federal defendants arrested in 2021 for trafficking narcotics as part of a DEA-led multi-agency operation targeting cocaine and heroin traffickers in North Sacramento. Specifically, Carter was intercepted during a 30-day wiretap trafficking kilograms of cocaine, kilograms of heroin, and methamphetamine pills. Carter was also intercepted planning to rob another heroin dealer of 3 kilograms of heroin worth $75,000. Hellams was intercepted on the wiretap arranging to obtain and sell over 630 grams of cocaine. Caine was intercepted on the wiretap arranging to obtain and sell over 40 grams of crack cocaine and over 110 grams of powder cocaine.
This case is the product of an investigation by the Drug Enforcement Administration, the Federal Bureau of Investigation, Homeland Security Investigations, the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Forest Service, the U.S. Postal Inspection Service, the Bureau of Land Management, the California Department of Corrections and Rehabilitation, the California Department of Justice, the California Highway Patrol, the Sacramento County Sheriff’s Office, and the Sacramento Police Department. Assistant U.S. Attorneys Cameron L. Desmond and Aaron D. Pennekamp are prosecuting the case.
Caine and Hellams are scheduled to be sentenced on Feb. 9, 2023 by U.S. District Judge Troy L. Nunley. They face a maximum statutory penalty of eight years in prison and a $250,000 fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
On Sept. 29, 2022, Jason Tolbert, 45, of Sacramento, was sentenced to four years and nine months in prison for possession with intent to distribute cocaine.
On July 22, 2022, Michael Hampton, 57, of Vallejo, pleaded guilty to conspiracy to distribute and possess with intent to distribute at least 500 grams of cocaine. Hampton is scheduled to be sentenced on Dec. 8, 2022.
Charges are pending against the following defendants: Tyrone Anderson, 40, of Sacramento; Maurice Bryant, 51, of Antelope; Yovanny Ontiveros, 41, of Sacramento; Alex White, 61, of North Highlands; Steven Hampton, 61, of Sacramento; Wilmer Harden, 52, of Elk Grove; Bobby Conner, 50, of Sacramento; Jerome Adams, 54, of North Highlands; Dwight Haney, 49, of Sacramento; and Mark Martin, 62, of Sacramento. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This prosecution is part of the Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. The Sacramento Strike Force is a co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The specific mission of the Sacramento Strike Force is to identify, investigate, disrupt, and dismantle the most significant drug trafficking organizations (DTOs) and transnational criminal organizations (TCOs) shipping narcotics, firearms, and money through the Eastern District of California, thereby reducing the flow of these criminal resources in California and the rest of the United States. The Sacramento Strike Force leads intelligence-driven investigations targeting the leadership and support elements of these DTOs and TCOs operating within the Eastern District of California, regardless of their geographic base of operations.
Mexican National Indicted for Growing Marijuana in Shasta-Trinity National ForestRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Jaime Alejandro Sanchez Robles, 33, of Mexico, charging him with conspiracy to manufacture marijuana, manufacture of marijuana, and depredation of public lands and resources, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Oct. 20, 2022, law enforcement officers went to a marijuana growing operation in a remote area of the Shasta-Trinity National Forest located in Trinity County. At the grow, agents observed that water was actively being diverted from a nearby stream, and they found the remnants of over 1,200 pounds of soluble fertilizer, 20 gallons of liquid fertilizer, over 50 pounds of rodenticide, and at least one dead animal. Law enforcement officers eradicated 1,708 marijuana plants and arrested Sanchez Robles.
This case is the product of an investigation by the U.S. Forest Service, the California Department of Fish and Wildlife, and the Trinity County Sheriff’s Office. Integral Ecology Research Center, a nonprofit organization dedicated to the research and conservation of wildlife and their ecosystems, analyzed and documented the environmental damage. Assistant U.S. Attorney Alstyn Bennett is prosecuting the case.
If convicted, Sanchez Robles faces a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Butte County Man Pleads Guilty to Distributing FentanylRead the Press Release
SACRAMENTO, Calif. — Julius Rucks, 41, of Butte County, pleaded guilty Monday to three counts of distributing fentanyl, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Dec. 6, 2018, Jan. 10, 2019, and April 3, 2019, Rucks sold a total of 1,000 counterfeit pharmaceutical tablets that were found to contain fentanyl to an undercover agent.
Rucks is set to be sentenced on Feb. 6, 2023, by U.S. District Judge Kimberly J. Mueller. Rucks faces a maximum statutory penalty of 20 years in prison and a $1 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 the product of an investigation by the Drug Enforcement Administration and the Butte County Sheriff’s Office. Assistant U.S. Attorney Cameron L. Desmond is prosecuting the case.
Tattoo Shop Owner Sentenced to More Than 7 Years in Prison for Distributing Heroin and Methamphetamine on the Dark WebRead the Press Release
SACRAMENTO, Calif. — Jason Keith Arnold, 46, of Chandler, Arizona, was sentenced today to seven years and three months in prison for conspiring to distribute heroin and methamphetamine on the dark web, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Arnold, along with co-defendants David White, 50, and Alicia McCoy, 31, both of Chandler, operated the vendor accounts “TheSickness” and “SicknessVersion2” on Dream Marketplace. Dream Marketplace was a website on an encrypted part of the internet known as the “dark web” because it is only accessible via sophisticated encryption technology and is not visible to normal search engines such as Google. The encrypted nature of Dream Marketplace provided individuals such as Arnold—who previously owned tattoo parlors in Arizona—with relative anonymity to sell narcotics and other illegal goods and services over the internet.
Through his dark web accounts, Arnold and his co-conspirators conducted thousands of transactions for illegal drugs, including “pure gun powder heroin” and “uncut” methamphetamine. The conspirators used the U.S. Postal Service and other shippers to send these drugs from Chandler to customers throughout the country in packages purporting to contain candy. Arnold and his co-conspirators accepted payment for these narcotics in cryptocurrency, and accounts associated with the conspiracy grossed more than $350,000 during the time that “TheSickness” and “SicknessVersion2” were operational.
On Feb. 17, 2022, White was sentenced to 11 years in prison. Charges against McCoy are pending. The charges are only allegations; she is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was the product of an investigation by the Northern California Illicit Digital Economy (NCIDE) Task Force, which includes agents from Homeland Security Investigations, the Federal Bureau of Investigation, the U.S. Postal Inspection Service, the U.S. Postal Service Office of Inspector General, the Internal Revenue Service - Criminal Investigation, and the Drug Enforcement Administration. The NCIDE Task Force is a federal task force focused on targeting all forms of illicit dark web and cryptocurrency activity in the Eastern District of California and beyond. Assistant U.S. Attorney Sam Stefanki prosecuted the case.
Placer County Man Sentenced for Tax EvasionRead the Press Release
SACRAMENTO, Calif. — Vladimir Alex Avdeyuk, 40, of Lincoln, was sentenced today to one year and a day in prison and ordered to pay $467,057 in restitution for tax evasion and corrupt endeavor to obstruct the administration of the Internal Revenue Laws, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Avdeyuk repeatedly and intentionally filed false tax returns and took numerous steps to obstruct an IRS audit of his returns. Avdeyuk filed Form 1040 individual income tax returns for himself and his spouse that substantially underreported his business income for tax years 2012, 2013, 2015, and 2016. Avdeyuk operated a sole proprietorship involved in construction work, particularly repairs and reconstruction after fires. If Avdeyuk had reported his business income correctly, he would have owed a total of at least $467,057 in additional tax for 2012, 2013, 2015, and 2016. Avdeyuk also obstructed the Internal Revenue Service’s audit of his tax returns for tax years 2012 and 2013 by submitting multiple false documents to the IRS and lying to IRS agents on multiple occasions.
On Dec. 7, 2017, in a recorded interview, Avdeyuk admitted that he had misidentified deposits submitted the false promissory note, created a false gift letter and was actually the donor, created a false loan application and knowingly omitted the business income.
Approximately three years after his confession, Avdeyuk intentionally filed another false tax return: a Form 1040 individual income tax return for the tax year 2016, which he had backdated to April 18, 2016 (forgetting that the deadline for a 2016 tax return would be in April 2017, not April 2016). On the Schedule C-EZ appended to that return, Avdeyuk reported that his business had gross receipts of $23,314, when he knew that was false because he had failed to report at least $554,577 in additional gross receipts. If he had reported his true gross receipts and expenses, his additional tax due would have been $84,231.
This case was the product of an investigation by the IRS Criminal Investigation. Assistant U.S. Attorney Heiko P. Coppola prosecuted the case.
Eastern District of California Completes Prosecution of 20 Defendants in DMV Corruption CasesRead the Press Release
SACRAMENTO, Calif. — U.S. Attorney Phillip A. Talbert announced today the completion of prosecutions of 20 defendants in a series of DMV corruption cases charged in the Eastern District of California. Charges against the defendants included bribery of public officials, identity fraud, unauthorized access of computers, and conspiracies to commit those offenses. The defendants included corrupt DMV employees who took bribes, trucking school owners and affiliates who bribed them, and others who participated in the conspiracies. The criminal activities charged in these cases took place throughout California, including the Central Valley, Los Angeles Basin, and as far north as Eureka.
Defendants helped put unqualified commercial drivers on the nation’s highways operating large commercial vehicles even though those drivers had not passed the necessary written and driving tests. DMV employees accepted bribes to enter fraudulent test scores for applicants who had not even taken the tests or who could not pass them. Various trucking schools in California looked for corrupt DMV employees they could bribe to help failing or unqualified students get their commercial licenses anyway. In total, hundreds of fraudulent commercial driver license permits and licenses were issued as a part of these schemes, jeopardizing public safety.
Every defendant charged in the cases has now been convicted and sentenced, except for one who passed away prior to trial. The convicted defendants and their sentences are:
Defendant’s Name
Case Number
Sentence
Shawana Harris
2:17-cr-210 TLN
60 months
Robert Turchin
2:15-cr-161 WBS
51 months
Mangal Gill
2:15-cr-161 WBS
51 months
Andrew Kimura
2:15-cr-161 WBS
46 months & $7,500 fine
Lisa Terraciano
2:17-cr-187 KJM
40 months & $500 fine
Jagpal Singh, aka “Paul”
2:17-cr-210 TLN
39 months
Donald Freeman
2:17-cr-207 KJM
37 months
David Sun
2:17-cr-223 KJM
37 months
Kari Scattaglia
2:17-cr-187 KJM
32 months & $1,000 fine
Rahim Mahboob
2:17-cr-213 GEB
27 months & $58,500 fine
Damanpreet Singh
2:18-cr-89 GEB
24 months
Emma Klem
2:15-cr-139 GEB
23 months
Aaron Gilliam
2:17-cr-200 KJM
22 months
Kulwinder Dosangh Singh, aka“Sandhu” and “Sodhi”
2:15-cr-146 GEB
19 months
Juan Arturo Arroyo Gomez
2:17-cr-207 KJM
12 months
Pavitar Dosangh Singh
2:15-cr-161 WBS
10 months
Parminder Singh
2:17-cr-210 TLN
Time served with 11 months home confinement
Poya Khanjan
2:17-cr-212 JAM
Time served with 6 months home confinement & $9,500 fine
Ruvila “Ruby” Lima
2:17-cr-212 JAM
Time served & $500 fine
Tajinder Singh
2:17-cr-210 TLN
Time served with 7 months home confinement & $5,500 fine
Defendants Terraciano and Sun later had their sentences reduced during the COVID-19 pandemic under the CARES Act.
These cases were the product of an investigation by the California Department of Motor Vehicles, Office of Internal Affairs; the Federal Bureau of Investigation; Homeland Security Investigations; and the Department of Transportation, Office of Inspector General. Assistant U.S. Attorneys Rosanne L. Rust and Christopher S. Hales prosecuted the cases.
Construction Company Owner Pleads Guilty to Bid Rigging and BriberyRead the Press Release
SACRAMENTO, Calif. — A construction company owner became the third person to plead guilty for his role in a bid-rigging and bribery scheme involving California Department of Transportation (Caltrans) improvement and repair contracts.
According to a plea agreement filed today in the U.S. District Court for the Eastern District of California in Sacramento, Bill R. Miller engaged in a conspiracy, from April 2015 through at least December 2019, to thwart the competitive bidding process for Caltrans contracts on numerous occasions in order to ensure that companies controlled by co-conspirators or himself submitted the winning bid and would be awarded the contract. As part of the conspiracy, Miller recruited others to submit sham bids on Caltrans contracts, including co-conspirator William D. Opp, a former business partner who pleaded guilty in the case on Oct. 3, 2022.
In addition to pleading guilty to bid rigging, Miller also pleaded guilty for paying bribes to Choon Foo “Keith” Yong, the former Caltrans contract manager who managed the contracts involved on behalf of Caltrans, a California state agency that receives significant federal funding. On April 11, 2022, Yong pleaded guilty to his role in the bid-rigging and bribery scheme. According to Yong’s plea agreement, Yong received the bribes in the form of cash payments, wine, furniture and remodeling services on his home. The total value of the payments and benefits Yong received exceeded $800,000.
“This construction company owner is the third person to plead guilty and the highest-level contractor to face justice in the Antitrust Division’s investigation into bribery and bid rigging at Caltrans,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Transportation infrastructure is critical to our nation, so punishing bid-rigging and bribery schemes that target public works remains a top priority for the division and its Procurement Collusion Strike Force partners.”
“California has many government projects that obligate taxpayer money, making it important to root out corruption and protect the integrity of the contracting process,” said U.S. Attorney Phillip A. Talbert for the Eastern District of California. “My office is committed to investigating and prosecuting those who attempt to bribe public officials or who engage in other acts of public corruption that undermine the public’s confidence in the integrity of the government.”
Miller is scheduled to be sentenced on Feb. 6, 2023, by U.S. District Judge Kimberly J. Mueller. For the bid-rigging conspiracy, Miller faces a maximum statutory penalty of 10 years of incarceration and a fine of up to $1 million or twice the gross pecuniary loss resulting from the offense. For bribery concerning programs receiving federal funds, Miller faces a maximum statutory penalty of 10 years of incarceration and a fine of up to $250,000 or twice the gross pecuniary loss resulting from the offense. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and U.S. Sentencing Guidelines. In addition to his guilty plea, Miller has agreed to pay restitution.
Today’s guilty plea is the result of a joint investigation being conducted by the Antitrust Division’s San Francisco office, the U.S. Attorney’s Office for the Eastern District of California, and the FBI’s Sacramento Division as part of the Justice Department’s Procurement Collusion Strike Force (PCSF). Assistant U.S. Attorney Lee S. Bickley and Antitrust Division Trial Attorneys Christopher Carlberg and Tai Snow Milder are prosecuting the case.
In November 2019, the Department of Justice created the Procurement Collusion Strike Force (PCSF), a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government – federal, state and local. In fall 2020, the Strike Force expanded its footprint with the launch of PCSF: Global, designed to deter, detect, investigate and prosecute collusive schemes that target government spending outside of the United States. To learn more about the PCSF, or to report information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to defense-related spending go to https://www.justice.gov/procurement-collusion-strike-force.
Seven Indicted for Trafficking Methamphetamine, Cocaine, and FentanylRead the Press Release
FRESNO, Calif. — A federal grand jury returned a 24-count indictment today against seven defendants, charging them with drug trafficking offenses, U.S. Attorney Phillip A. Talbert announced.
Cesar Losoya-Castrejon, 46, of Tulare, is charged with two counts of conspiracy to distribute methamphetamine and fentanyl, twelve counts of distribution of methamphetamine and fentanyl, one count of possession with intent to distribute methamphetamine, and one count of using a cellphone in aid of racketeering;
Arturo Farias-Zepeda, 52, of Atwater, is charged with one count of conspiracy to distribute methamphetamine, three counts of distribution of methamphetamine, and one count of using a cellphone in aid of racketeering;
Juan Cesar Valencia-Zepeda, 38, of Merced, is charged with one count of conspiracy to distribute methamphetamine and one count of distribution of methamphetamine;
Roberto Soria-Cuevas, 62, of Yettem, Tulare County, is charged with one count of distribution of methamphetamine;
Ricardo Rivas-Arredondo, 31, of Earlimart, Tulare County, is charged with one count of distribution of methamphetamine;
Jose Adan Chaidez Ojeda, 38, of Earlimart, is charged with one count of distribution of methamphetamine and one count of possession with intent to distribute methamphetamine; and
Julio Cesar Vargas-Birrueta, 30, of Yettem, is charged with one count of distribution of fentanyl and one count of possession with intent to distribute fentanyl.
According to court documents, between October 2021 and October 2022, Losoya-Castrejon, with the assistance of Farias-Zepeda, Valencia-Zepeda, Soria-Cuevas, Arredondo, and Chaidez Ojeda, distributed over 130 pounds of methamphetamine to a DEA confidential source.
On Oct. 12, 2022, agents uncovered an active methamphetamine conversion laboratory in Ducor, in Tulare County, that allegedly was used to convert liquid methamphetamine into crystal methamphetamine for distribution. Large quantities of crystal and liquid methamphetamine were seized in the laboratory. In total, law enforcement seized approximately 500 pounds of crystal methamphetamine and approximately 500 gallons of liquid methamphetamine from the conversion laboratory.
The case is the result of an investigation by the Drug Enforcement Administration, Homeland Security Investigations, the San Joaquin County Metropolitan Narcotics Task Force, and the Tulare County Sheriff’s Office, the Tulare County High Intensity Drug Trafficking Area Unit (HIDTA). Assistant U.S. Attorney Antonio J. Pataca is prosecuting the case.
If convicted, the defendants face a range of maximum sentences, including up to life in prison. All of the defendants also face a mandatory minimum sentence of 10 years in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This 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.
Mexican National Residing in Bakersfield Pleads Guilty to Illegal Cockfighting in Violation of the Animal Welfare ActRead the Press Release
Horacio Ortega-Martinez, 35, a Mexican national residing in Bakersfield, pleaded guilty today to unlawful possession of animals for an animal fighting venture, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in February 2022, Ortega-Martinez communicated frequently with Jorge Calderon-Campos, 41, (charged separately) about illegal cockfighting events, including an event Calderon-Campos attended on February 12 at which 15 roosters fought to win a $5,000 purse. On April 26, 2022, numerous law enforcement agencies served a search warrant at Ortega-Martinez’s residence and discovered approximately 250 roosters, approximately 250 “gaffs” (razor-sharp steel blades that are tied to the birds’ legs), training mitts commonly used for training and fighting roosters, and miscellaneous antibiotics, vitamins, and supplements that are commonly used for breeding and training roosters for fighting.
Ortega-Martinez and Calderon-Campos were arrested on April 26, 2022, along with six other Kern County residents who were also charged with various drug trafficking offenses.
This case is the product of an investigation by Homeland Security Investigations, the Drug Enforcement Administration, the Kern County Sheriff’s Office, the Kern County High Intensity Drug Trafficking Area, the U.S. Marshals Service, the U.S. Customs and Border Protection, the Bakersfield Police Department, the Kern County Probation Department, the California Department of Corrections and Rehabilitation, the U.S. Secret Service, the U.S. Department of Agriculture Office of Inspector General and the California Highway Patrol. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
Ortega-Martinez is scheduled to be sentenced on Feb. 3, 2023, by U.S. District Judge Jennifer L. Thurston. Ortega-Martinez faces a statutory maximum 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.
Charges are pending against Calderon-Campos. The charges are only allegations; he is 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.
Merced Man Pleads Guilty to $60,000 Credit Card FraudRead the Press Release
FRESNO, Calif. — Ruben Chavez III, 36, of Merced, pleaded guilty today to committing credit card fraud and related identity theft, U.S. Attorney Phillip A. Talbert announced.
According to court documents, from April 2021 through March 2022, Chavez used or attempted to use more than 20 victims’ credit cards to make over $60,000 in fraudulent purchases at retail stores, including home appliances. He also changed the victims’ mailing addresses to his own address and created fake identification cards in their names to help further his fraud.
This case is the product of an investigation by U.S. Postal Inspection Service. Assistant U.S. Attorney Joseph Barton is prosecuting the case.
Chavez is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on Feb. 10, 2023. Chavez faces a maximum statutory penalty of 10 years in prison and fine of up to $250,000 for the credit card fraud, and a mandatory two-year consecutive sentence for the identity theft. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Korean National Sentenced to 7 Years and 9 Months in Prison for “Bust Out” Bank Fraud Scheme in Sacramento Area and ElsewhereRead the Press Release
SACRAMENTO, Calif. — Kyung Min Kong, 55, a citizen and national of South Korea, was sentenced today to seven years and nine months in prison for bank fraud, money laundering and aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between March 2014, and March 2018, Kong participated in a nationwide check kiting “bust out” scheme in order to obtain cash from banks. The scheme’s participants obtained a real Republic of Korea passport that was altered to bear a new photograph and name, which they used to open bank accounts with a small amount of cash. The accounts were dormant until a time the participants believed the bank would allow the account holder to deposit a check and make withdrawals before the check actually cleared. At that time, the participants wrote checks from a different bank account with non-sufficient funds, deposited those checks into the dormant account, and then withdrew cash from the dormant account before the checks cleared. The participants would access funds by purchasing a money order and then deposit the money order into yet another bank account associated with the scheme.
Kong is associated with opening source accounts or draining victim accounts from at least 25 different financial institutions. These bust-outs resulted in an actual loss of $2,574,161 to the banks, and an intended loss of $3,698,465 based on additional, unsuccessful bust-out attempts.
Kong is the first defendant to be sentenced in this case. Co-defendant Jeffrey Kim is scheduled to be sentenced Jan. 26, 2023, and co-defendant Jong Eun Lee is scheduled to be sentenced on Dec. 1, 2022. Charges are pending against the remaining co-defendants: Ki Jang, Hee Soung Oh, and Bon Soke Hong, who were all indicted on Oct. 21, 2021. 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 IRS Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorney Audrey B. Hemesath is prosecuting the case.
Former Fresno Businessman Sentenced to Nearly 4 Years in Prison for a Classic Car Restoration SchemeRead the Press Release
FRESNO, Calif. — Jeffrey Scott Hedges, 51, of Huntington Beach, was sentenced today to three years and 10 months in prison for committing wire fraud and money laundering in a scheme to defraud customers of his classic car business, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between November 2015 and January 2019, Hedges carried out a scheme to defraud through his business, West Coast Chassis LLC. Hedges advertised that his business restored classic cars such as Corvettes. However, instead of providing certain customers the classic cars or car chassis they ordered, and instead of making custom modifications to the vehicle frames other customers shipped to him for repairs, Hedges kept the customers’ payments and failed to provide the promised products. In many instances, Hedges used customers’ funds for his personal expenses and for other unauthorized purposes. The court ordered Hedges to pay $811,694 in restitution to the victims of his fraud scheme.
This case was the product of an investigation by the IRS Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorney Kirk E. Sherriff prosecuted the case.
San Jose Man Pleads Guilty to Conspiring to Traffic Methamphetamine in Solano CountyRead the Press Release
SACRAMENTO, Calif. — Esteban Gerardo Ramirez, 32, of San Jose, pleaded guilty today to conspiring to possess and distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between Sept. 13, 2021, and March 8, 2022, Ramirez conspired with his co-defendant, Marsha Garma Phillips, 46, of Fairfield, to distribute methamphetamine in Solano County. Supplied by Ramirez, Phillips sold over 5 pounds of methamphetamine to a confidential source. Ramirez and Phillips were arrested in Fremont on March 8, 2022, when they were found in possession of an additional 2 pounds of methamphetamine.
This case is the product of an investigation by the FBI’s Solano County Violent Crimes Task Force and the Fairfield Police Department. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.
Ramirez faces a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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.
Former Tracy Resident Pleads Guilty to Conspiracy to Defraud Financial InstitutionsRead the Press Release
SACRAMENTO, Calif. —Johnathan Ward, 44, formerly of Tracy, pleaded guilty today to conspiracy to commit wire fraud, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Ward conspired to defraud financial institutions using a scheme called “refund fraud.” This scheme exploited the refund process used by merchants to pay back customers for returns, reimbursements, and erroneous charges. The conspirators posed as merchants and executed fraudulent bankcard refunds, such as credit and debit card refunds, causing an unauthorized transfer of money from a merchant bank account to a bankcard account under the conspirators’ control.
This case was the product of an investigation by the Regional Enforcement Allied Computer Tear (REACT) Task Force, which includes investigators from the Santa Clara County District Attorney’s Office, and the Federal Bureau of Investigation. Assistant United States Attorney Jessica Delaney is prosecuting the case.
Ward is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on April 11, 2023. Ward faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Tulare County Man Pleads Guilty to Failing to Register as a Sex OffenderRead the Press Release
FRESNO, Calif. — Andras Daniel Lee, 33, of Visalia, pleaded guilty today to failure to register as a sex offender, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in March 2017, Lee was convicted in Tulare County of unlawful sexual intercourse with a minor. Shortly after his release from prison, Lee moved to Liberal, Kansas. In March 2018, Lee moved back to California and intentionally did not register as a sex offender under the Sex Offender Registration and Notification Act (SORNA) as was required as a result of his prior conviction for unlawful sexual intercourse with a minor.
On Feb. 20, 2020, Lee committed a lewd act upon a child in Tulare County while in a failure to register status. On Dec. 20, 2021, Lee was convicted of two counts of committing a lewd act upon a child.
The case is the result of an investigation by the U.S. Marshals Service. Assistant U.S. Attorney Antonio J. Pataca is prosecuting the case.
Lee is scheduled to be sentenced by U.S. District Judge Ana de Alba on Feb. 6, 2023. Lee faces a maximum statutory penalty of 10 years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
San Joaquin County Man Sentenced to 14 Months in Prison for Committing Bankruptcy FraudRead the Press Release
SACRAMENTO, Calif. — Kulvir Singh Cheema, 61, of Ripon, was sentenced today to 14 months in prison, a $4,000 fine, and was ordered to pay $259,031 in restitution for filing a false bankruptcy declaration, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Cheema lied about various material facts in a declaration and other documents in a bankruptcy proceeding, which he initiated in 2011. Cheema’s numerous lies in the bankruptcy proceeding—all made under penalty of perjury—created the false impression that he was bankrupt with no assets and deceived his creditors, the bankruptcy trustee, and the bankruptcy judge. Cheema’s lies were extensive. He lied about his business, income, employment, and assets. For example, before filing for bankruptcy, Cheema transferred his business to a new company purportedly run by his ex-wife and concealed his association with the new company. Cheema also falsely claimed he lost his residence in foreclosure when, in fact, he sold it to a close friend in a short sale while continuing to reside there. Through his lies, Cheema successfully discharged over $2 million in debt while managing to conceal $259,031 in assets from his creditors and electing to pay a close friend for a personal loan.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Elliot C. Wong prosecuted the case.
Cheema has been ordered to report on Jan. 10, 2023, to begin serving his sentence.
Modesto County Man Pleads Guilty to Receiving and Distributing Child PornographyRead the Press Release
FRESNO, Calif. — Jerrid Kunkel, 27, of Modesto, pleaded guilty today to receipt and distribution of material involving the sexual exploitation of minors, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between April 2014 and December 2017, Kunkel received and distributed images and videos of child pornography over the internet on his cellphone.
This case is the product of an investigation by Homeland Security Investigations. Assistant U.S. Attorney Brian W. Enos is prosecuting the case.
Kunkel is scheduled to be sentenced by U.S. District Judge Ana de Alba on Feb. 21, 2023. Kunkel faces a minimum statutory 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 to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Fresno Man Pleads Guilty to Unlawfully Possessing FirearmRead the Press Release
FRESNO, Calif. — Mike Marty Hernandez, 26, of Fresno, pleaded guilty today to being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on May 23, 2022, Hernandez was found to be in possession of a loaded firearm equipped with a large capacity magazine. Because of his criminal record, including a 2019 conviction for threatening a public official, Hernandez may not lawfully possess firearms or ammunition.
This case is the product of an investigation by the Federal Bureau of Investigation and the Fresno Police Department’s Multi-Agency Gang Enforcement Consortium. Assistant U.S. Attorney Antonio J. Pataca is prosecuting the case.
Hernandez is scheduled to be sentenced by U.S. District Judge Ana de Alba on Feb. 6, 2023. Hernandez 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.
12 Defendants Charged with Federal Drug Trafficking and Firearms Offenses in a Multi-Agency OperationRead the Press Release
BAKERSFIELD, Calif. — Following an 18-month investigation targeting local criminal street gangs in Bakersfield, 12 defendants have been charged federally and another 17 defendants were arrested on state charges. The charges include drug trafficking, conspiracy, and firearms offenses.
Seized in the operation were 13 firearms, over 15,000 suspected fentanyl pills, approximately 990 grams of fentanyl, approximately 10 pounds of methamphetamine, approximately 7 pounds of heroin, approximately 112 pounds of marijuana , and over $60,000 in U.S. currency.
“Today’s announcement is the result of a coordinated federal, state, and local law enforcement action, and I commend all of our partners for their hard work on this case,” said U.S. Attorney Phillip A. Talbert. “It is precisely this kind of coordinated effort that allows us to most effectively protect our communities and hold gang members accountable for their crimes.”
“The continued support of the US Attorney’s Office and our federal partners is a key element in truly impacting violent and deadly criminal activity in our community,” said Bakersfield Police Chief Greg Terry. “We will continue these collaborative investigations to hold those who victimize our community accountable.”
“The Kern County Sheriff’s Office is grateful for the cooperation we have with all the law enforcement agencies in the County of Kern,” said Sheriff Donny Youngblood, “These outstanding relationships allow us to work together on the mission of taking illegal drugs off the streets to make it a safer place for all the residents and visitors of our great county.”
“The success of yesterday’s operation represents another important stride in our ongoing effort to combat gang-related crime in the Central Valley and all of Northern California and also highlights the importance of law enforcement partnerships across the spectrum,” said HSI San Francisco/NorCal Special Agent in Charge Tatum King. “I’m proud of our agents’ exhaustive investigative work in bringing these subjects to justice. HSI will continue to work closely with Bakersfield PD and all of our other local, state, and federal law enforcement partners to dismantle these dangerous criminal enterprises and hold their members accountable for their flagrant disregard for the law.”
Kern County District Attorney Cynthia Zimmer said, “Congratulations to all our law enforcement partners on their efforts in this operation which will certainly disrupt criminal street gangs and their distribution of narcotics.”
The federal defendants charged include:
William Arthur Poush, 43, of Bakersfield, charged with distribution of a controlled substance and conspiracy to distribute a controlled substance;
Rosa Fernandez, 43, of Bakersfield, charged with distribution of a controlled substance and conspiracy to distribute a controlled substance;
Timothy Robert Hingston, 39, of N. Hollywood, charged with distribution of a controlled substance and conspiracy to distribute a controlled substance;
Spencer Matthew Hopper, 35, of Montrose, charged with distribution of a controlled substance and conspiracy to distribute a controlled substance;
Dale Vincent Perez, 39, of Bakersfield, charged with possession with intent to distribute a controlled substance and conspiracy to possess with intent to distribute a controlled substance;
Dale Wesley Hubbard, 49, of Bakersfield, charged with distribution of a controlled substance and conspiracy to distribute a controlled substance;
Darlene Crystal Viera, 40, of Bakersfield, charged with distribution of a controlled substance and conspiracy to distribute a controlled substance;
Manuel Yanes, 25, of Bakersfield, charged with distribution of a controlled substance and conspiracy to distribute a controlled substance;
Jorge Luis Yanes, 28, of Bakersfield, charged with distribution of a controlled substance and conspiracy to distribute a controlled substance;
Luis Mauricio Castenon, 33, of Bakersfield, charged with distribution of a controlled substance; and
David Garcia, 35, of Bakersfield, charged with possession with intent to distribute a controlled substance and felon in possession of a firearm.
Bryan Steven Reyes, 28, of Bakersfield , charged with distribution of a controlled substance.
These cases are the product of an investigation conducted by Homeland Security Investigations (HSI), the Bakersfield Police Department, the Kern County Probation Department, the Kern County District Attorney’s Office, and the Kern County Sheriff’s Office, with assistance from the Drug Enforcement Administration, the Federal Bureau of Investigation, the California Department of Corrections and Rehabilitation (CDCR), and the California Highway Patrol. Assistant U.S. Attorney Jessica A. Massey is prosecuting the cases.
If convicted, the defendants face various maximum sentences between 10 years and life in prison and $250,000 to $10 million in fines. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This 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.
Former DMV Employee Sentenced to 5 Years in Prison for Participating in Corrupt Bribery Conspiracy involving Commercial Driver LicensesRead the Press Release
SACRAMENTO, Calif. — Shawana Denise Harris, 52, of Phelan, was sentenced today to five years in prison for participating in a conspiracy to commit bribery, to commit unauthorized access of a computer, and to commit identity fraud, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Harris was a long-time DMV employee who had the ability to update test scores for commercial driver’s license applicants in California. Using her position as a public employee at the DMV, Harris accepted bribes in exchange for fraudulently updating test scores for people pursuing commercial driver’s licenses. For at least 185 commercial license applicants, Harris used her access to DMV computers to enter fraudulent test scores indicating the applicants had passed written and/or behind the wheel commercial drive tests, when in reality the applicants had not passed those tests. Harris and a co-conspirator were typically paid at least $1,500 per applicant for fraudulently updating test scores, resulting in approximately $277,500 worth of corrupt bribes.
This case was the product of an investigation by the California Department of Motor Vehicles, Office of Internal Affairs; the Federal Bureau of Investigation; Homeland Security Investigations; and the Department of Transportation, Office of Inspector General. Assistant U.S. Attorneys Rosanne L. Rust and Christopher S. Hales prosecuted the case.
Justice Department Announces Takedown of Nationwide Catalytic Converter Theft RingRead the Press Release
Federal, state, and local law enforcement partners from across the United States executed a nationwide, coordinated takedown today 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 tens of millions of dollars.
Arrests, searches, and seizures took place in California, Oklahoma, Wyoming, Minnesota, New Jersey, New York, Nevada, North Carolina, and Virginia. In total, 21 individuals in five states have been arrested and/or charged for their roles in the conspiracy.
The 21 defendants are charged in two separate indictments that were unsealed today in the Eastern District of California and the Northern District of Oklahoma following extensive law enforcement arrest and search operations. In addition to the indictments, over 32 search warrants were executed, and law enforcement seized millions of dollars in assets, including homes, bank accounts, cash, and luxury vehicles.
“Amidst a rise in catalytic converter thefts across the country, the Justice Department has today carried out an operation arresting 21 defendants and executing 32 search warrants in a nation-wide takedown of a multimillion-dollar catalytic converter theft network,” said Attorney General Merrick B. Garland. “We will continue to work alongside our state and local partners to disrupt criminal conspiracies like this one that target the American people.”
“This national network of criminals hurt victims across the country,” said FBI Director Christopher Wray. “They made hundreds of millions of dollars in the process—on the backs of thousands of innocent car owners. Today’s charges showcase how the FBI and its partners act together to stop crimes that hurt all too many Americans.”
“With California’s higher emission standards, our community has become a hot bed for catalytic converter theft,” said U.S. Attorney Phillip A. Talbert for the Eastern District of California. “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. I am proud to announce that we have indicted nine people who are at the core of catalytic theft in our community and nationwide.”
“In Tulsa alone, more than 2,000 catalytic converters were stolen in the past year,” said U.S. Attorney Clint Johnson for the Northern District of Oklahoma. “Organized criminal activity, including the large-scale theft of catalytic converters, is costly to victims and too often places citizens and law enforcement in danger. The collective work conducted by federal prosecutors and more than 10 different law enforcement agencies led to the filing of charges in the Northern District of Oklahoma against 13 defendants operating an alleged catalytic converter theft operation.”
“The success of this national takedown highlights the importance and necessity of dynamic law enforcement partnerships that we foster at DHS every single day,” said Deputy Secretary John K. Tien of the Department of Homeland Security. “This calculated, cooperative whole-of-government approach across multiple states illustrates our commitment to protecting the homeland from those who seek to profit from sophisticated schemes. Homeland Security Investigations [HSI] will continue to focus its efforts on keeping these types of criminal elements off our streets while dismantling the groups behind these and other thefts.”
“Just like the precious metal inside every catalytic converter, there’s a money trail at the core of every criminal scheme,” said Chief Jim Lee of the IRS Criminal Investigation (IRS-CI). “Our IRS-CI special agents and partners are incredibly well-versed at unraveling financial trails, and this case is not unique. There are real victims here – friends, neighbors, and businesses – and our hope is that today’s arrests will deter similar criminal activity.”
Catalytic Converters
Catalytic converters are a component of an automotive vehicle’s exhaust device that reduce the toxic gas and pollutants from a vehicle's internal combustion engine into safe emissions. 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. Additionally, catalytic converters often lack unique serial numbers, VIN information, or other distinctive identification features, making them difficult to trace to their lawful owner. Thus, the theft of catalytic converters has become increasingly popular because of their value, relative ease to steal, and their lack of identifying markings.
Eastern District of California Case
A federal grand jury in the Eastern District of California returned a 40‑count indictment charging nine defendants with conspiracy to transport stolen catalytic converters, conspiracy to commit money laundering, and other related charges.
According to court documents, Tou Sue Vang, 31, and Andrew Vang, 27, and Monica Moua, 51, all of Sacramento, California, allegedly operated an unlicensed business from their personal 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. The defendants allegedly sold over $38 million in stolen catalytic converters to DG Auto.
Defendants Navin Khanna, aka Lovin Khanna, 39; Tinu Khanna, aka Gagan Khanna, 35; Daniel Dolan, 44; Chi Mo, aka David Mo, 37; Wright Louis Mosley, 50; and Ishu Lakra, 24, all of New Jersey, operated DG Auto in multiple locations in New Jersey. 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 $545 million.
“This national takedown exemplifies the complexities of organized criminal operations and stresses the importance of law enforcement collaboration to identify and disrupt all facets of a criminal enterprise,” explained Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “This case demonstrates how investigations often evolve to expose the higher level organizations that fuel street-level crime. While catalytic converter thefts are a significant and pervasive challenge for local law enforcement agencies, these street-level crimes often benefit larger criminal networks. Organized crime must be addressed comprehensively and collaboratively to disrupt these networks and reduce crime in our communities. We are grateful for the commitment and partnership of our local, state, and federal law enforcement colleagues who worked tirelessly to ensure this criminal enterprise was effectively disrupted.”
Northern District of Oklahoma Case
A federal grand jury in the Northern District of Oklahoma returned a 40‑count indictment charging 13 defendants with conspiracy to receive stolen catalytic converters, conspiracy to commit money laundering, and other related charges.
According to court documents, together the defendants bought stolen catalytic converters from thieves on the street, then re-sold and shipped them to DG Auto in New Jersey for processing. Over the course of the conspiracy, defendant Tyler James Curtis received over $13 million in wired funds from DG Auto for the shipment of catalytic converters and received over $500,000 from Capital Cores for catalytic converters. Defendant Adam G. Sharkey received over $45 million in wired funds from DG Auto. And defendant Martynas Macerauskas received over $6 million in payments from DG Auto for catalytic converters. In all these incidents, most of the catalytic converters sold to DG Auto were stolen, and DG Auto knew or should have known that when they paid for them.
The 13 defendants are Navin Khanna, 39, of Holmdel, New Jersey; Adam Sharkey, 26, of West Islip, New York; Robert Gary Sharkey, 57, of Babylon, New York; Tyler James Curtis, 26, of Wagoner, Oklahoma; Benjamin Robert Mansour, 24, of Bixby, Oklahoma; Reiss Nicole Biby, 24, of Wagoner, Oklahoma; Martynas Macerauskas, 28, of Leila Lake, Texas; Kristina McKay Macerauskas, 21, of Leila Lake, Texas; Parker Star Weavel, 25, of Tahlequah, Oklahoma; Shane Allen Minnick, 26, of Haskell, Oklahoma; Ryan David LaRue 29, of Broken Bow, Oklahoma; Brian Pate Thomas, 25, of Choteau, Oklahoma; and Michael Anthony Rhoden, 26, of Keifer, Oklahoma.
Trial Attorney Danbee C. Kim of the Criminal Division’s Organized Crime and Gang Section, Assistant U.S. Attorney Veronica M.A. Alegría for the Eastern District of California, and Assistant U.S. Attorneys Reagan Reininger and David Nasar for the Northern District of Oklahoma are prosecuting the cases.
The FBI Sacramento, IRS-CI Sacramento, HSI Tulsa, and IRS-CI Tulsa are investigating the cases.
FBI Las Vegas (NV), FBI Richmond (VA), FBI Charlotte (NC), FBI Newark (NJ), FBI Dallas (TX), HSI Dallas (TX), HSI Houston (TX), HSI Amarillo (TX), HSI St. Paul (MN), HSI Long Island (NY), HSI Newark (NJ), IRS-CI Chicago Field Office (IL), IRS-CI Oakland Field Office (CA), IRS-CI Dallas Field Office (TX), IRS-CI Newark Field Office (NJ), Tulsa Police Department (OK), Tulsa County Sheriff’s Office (OK), Oklahoma Highway Patrol (OK), Oklahoma Attorney General’s Office (OK), Wagoner County Sheriff’s Office (OK), Houston Police Department (TX), Amarillo Police Department (TX), Broken Arrow Police Department (OK), Sacramento County Sheriff’s Department (CA), Sacramento Police Department (CA), Davis Police Department (CA), Auburn Police Department (CA), Livermore Police Department (CA), San Bernardino County Sheriff’s Department (CA), Customs and Border Protection (NJ), Port Authority Police Department of New York and New Jersey (NY; NJ), Hudson County Sheriff’s Office (NJ), Monmouth County Prosecutor’s Office (NJ), Monmouth County Sheriff’s Office (NJ), Morris Township Police Department (NJ), Springfield Police Department (NJ), New Jersey State Police (NJ), Union County Prosecutor’s Office (NJ), Port Authority of NY & NJ (NY; NJ), Howell Police Department (NJ), Warren Township Police Department (NJ), Freehold Borough Police Department (NJ), Middletown Police Department (NJ), Marlboro Police Department (NJ), Manalapan Police Department (NJ), Ocean County Sheriff’s Office (NJ), Burlington Police Department (NJ), Willingboro Police Department (NJ), Waterfront Commission of NY Harbor (NY), Nassau County Police Department (NY), Suffolk County Police Department (NY), Las Vegas Metropolitan Police Department (NV), Greensville County Sheriff’s Office (VA), Emporia Police Department (VA), Brunswick County Sheriff’s Office (VA), Halifax County Sheriff’s Office (NC), Saint Paul Police Department (MN), Minnesota Commerce Fraud Bureau (MN), Blaine Police Department (MN), McLeod County Sheriff’s Office (MN), Anoka County Sheriff’s Office (MN), Carver County Sheriff’s Office (MN), Roseville Police Department (MN), Plymouth Police Department (MN), Bloomington Police Department (MN), Eagan Police Department (MN), Woodbury Police Department (MN), Brown County Sheriff’s Office (MN), Brooklyn Park Police Department (MN), Fridley Police Department (MN), Mendota Heights Police Department (MN), Chaska Police Department (MN), and Coon Rapids Police Department (MN) provided assistance.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Justice Department Announces Takedown of Nationwide Catalytic Converter Theft RingRead the Press Release
Federal, state, and local law enforcement partners from across the United States executed a nationwide, coordinated takedown today 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 tens of millions of dollars.
Arrests, searches, and seizures took place in California, Oklahoma, Wyoming, Minnesota, New Jersey, New York, Nevada, North Carolina, and Virginia. In total, 21 individuals in five states have been arrested and/or charged for their roles in the conspiracy.
The 21 defendants are charged in two separate indictments that were unsealed today in the Eastern District of California and the Northern District of Oklahoma following extensive law enforcement arrest and search operations. In addition to the indictments, over 32 search warrants were executed, and law enforcement seized millions of dollars in assets, including homes, bank accounts, cash, and luxury vehicles.
“Amidst a rise in catalytic converter thefts across the country, the Justice Department has today carried out an operation arresting 21 defendants and executing 32 search warrants in a nation-wide takedown of a multimillion-dollar catalytic converter theft network,” said Attorney General Merrick B. Garland. “We will continue to work alongside our state and local partners to disrupt criminal conspiracies like this one that target the American people.”
“This national network of criminals hurt victims across the country,” said FBI Director Christopher Wray. “They made hundreds of millions of dollars in the process—on the backs of thousands of innocent car owners. Today’s charges showcase how the FBI and its partners act together to stop crimes that hurt all too many Americans.”
“With California’s higher emission standards, our community has become a hot bed for catalytic converter theft,” said U.S. Attorney Phillip A. Talbert for the Eastern District of California. “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. I am proud to announce that we have indicted nine people who are at the core of catalytic theft in our community and nationwide.”
“In Tulsa alone, more than 2,000 catalytic converters were stolen in the past year,” said U.S. Attorney Clint Johnson for the Northern District of Oklahoma. “Organized criminal activity, including the large-scale theft of catalytic converters, is costly to victims and too often places citizens and law enforcement in danger. The collective work conducted by federal prosecutors and more than 10 different law enforcement agencies led to the filing of charges in the Northern District of Oklahoma against 13 defendants operating an alleged catalytic converter theft operation.”
“The success of this national takedown highlights the importance and necessity of dynamic law enforcement partnerships that we foster at DHS every single day," said Deputy Secretary John K. Tien of the Department of Homeland Security. “This calculated, cooperative whole-of-government approach across multiple states illustrates our commitment to protecting the homeland from those who seek to profit from sophisticated schemes. Homeland Security Investigations [HSI] will continue to focus its efforts on keeping these types of criminal elements off our streets while dismantling the groups behind these and other thefts.”
“Just like the precious metal inside every catalytic converter, there’s a money trail at the core of every criminal scheme,” said Chief Jim Lee of the IRS Criminal Investigation (IRS-CI). “Our IRS-CI special agents and partners are incredibly well-versed at unraveling financial trails, and this case is not unique. There are real victims here – friends, neighbors, and businesses – and our hope is that today’s arrests will deter similar criminal activity.”
Catalytic Converters
Catalytic converters are a component of an automotive vehicle's exhaust device that reduce the toxic gas and pollutants from a vehicle's internal combustion engine into safe emissions. 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. Additionally, catalytic converters often lack unique serial numbers, VIN information, or other distinctive identification features, making them difficult to trace to their lawful owner. Thus, the theft of catalytic converters has become increasingly popular because of their value, relative ease to steal, and their lack of identifying markings.
Eastern District of California Case
A federal grand jury in the Eastern District of California returned a 40‑count indictment charging nine defendants with conspiracy to transport stolen catalytic converters, conspiracy to commit money laundering, and other related charges.
According to court documents, brothers Tou Sue Vang, 31, and Andrew Vang, 27, and Monica Moua, 51, all of Sacramento, California, allegedly operated an unlicensed business from their personal 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. The Vang family allegedly sold over $38 million in stolen catalytic converters to DG Auto.
Defendants Navin Khanna, aka Lovin Khanna, 39; Tinu Khanna, aka Gagan Khanna, 35; Daniel Dolan, 44; Chi Mo, aka David Mo, 37; Wright Louis Mosley, 50; and Ishu Lakra, 24, all of New Jersey, operated DG Auto in multiple locations in New Jersey. 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 $545 million.
Northern District of Oklahoma Case
A federal grand jury in the Northern District of Oklahoma returned a 40‑count indictment charging 13 defendants with conspiracy to receive stolen catalytic converters, conspiracy to commit money laundering, and other related charges.
According to court documents, together the defendants bought stolen catalytic converters from thieves on the street, then re-sold and shipped them to DG Auto in New Jersey for processing. Over the course of the conspiracy, defendant Tyler James Curtis received over $13 million in wired funds from DG Auto for the shipment of catalytic converters and received over $500,000 from Capital Cores for catalytic converters. Defendant Adam G. Sharkey received over $45 million in wired funds from DG Auto. And defendant Martynas Macerauskas received over $6 million in payments from DG Auto for catalytic converters. In all these incidents, most of the catalytic converters sold to DG Auto were stolen, and DG Auto knew or should have known that when they paid for them.
The 13 defendants are Navin Khanna, 39, of Holmdel, New Jersey; Adam Sharkey, 26, of West Islip, New York; Robert Gary Sharkey, 57, of Babylon, New York; Tyler James Curtis, 26, of Wagoner, Oklahoma; Benjamin Robert Mansour, 24, of Bixby, Oklahoma; Reiss Nicole Biby, 24, of Wagoner, Oklahoma; Martynas Macerauskas, 28, of Leila Lake, Texas; Kristina McKay Macerauskas, 21, of Leila Lake, Texas; Parker Star Weavel, 25, of Tahlequah, Oklahoma; Shane Allen Minnick, 26, of Haskell, Oklahoma; Ryan David LaRue 29, of Broken Bow, Oklahoma; Brian Pate Thomas, 25, of Choteau, Oklahoma; and Michael Anthony Rhoden, 26, of Keifer, Oklahoma.
Trial Attorney Danbee C. Kim of the Criminal Division’s Organized Crime and Gang Section, Assistant U.S. Attorney Veronica M.A. Alegría for the Eastern District of California, and Assistant U.S. Attorneys Reagan Reininger and David Nasar for the Northern District of Oklahoma are prosecuting the cases.
The FBI Sacramento, IRS-CI Sacramento, HSI Tulsa, and IRS-CI Tulsa are investigating the cases.
FBI Las Vegas (NV), FBI Richmond (VA), FBI Charlotte (NC), FBI Newark (NJ), FBI Dallas (TX), HSI Dallas (TX), HSI Houston (TX), HSI Amarillo (TX), HSI St. Paul (MN), HSI Long Island (NY), HSI Newark (NJ), IRS-CI Chicago Field Office (IL), IRS-CI Oakland Field Office (CA), IRS-CI Dallas Field Office (TX), IRS-CI Newark Field Office (NJ), Tulsa Police Department (OK), Tulsa County Sheriff’s Office (OK), Oklahoma Highway Patrol (OK), Oklahoma Attorney General’s Office (OK), Wagoner County Sheriff’s Office (OK), Houston Police Department (TX), Amarillo Police Department (TX), Broken Arrow Police Department (OK), Sacramento County Sheriff’s Department (CA), Sacramento Police Department (CA), Davis Police Department (CA), Auburn Police Department (CA), Livermore Police Department (CA), San Bernardino County Sherriff’s Department (CA), Customs and Border Protection (NJ), Port Authority Police Department of New York and New Jersey (NY; NJ), Hudson County Sheriff’s Office (NJ), Monmouth County Prosecutor’s Office (NJ), Monmouth County Sheriff’s Office (NJ), Morris Township Police Department (NJ), Springfield Police Department (NJ), New Jersey State Police (NJ), Union County Prosecutor’s Office (NJ), Port Authority of NY & NJ (NY; NJ), Howell Police Department (NJ), Warren Township Police Department (NJ), Freehold Borough Police Department (NJ), Middletown Police Department (NJ), Marlboro Police Department (NJ), Manalapan Police Department (NJ), Ocean County Sheriff’s Office (NJ), Burlington Police Department (NJ), Willingboro Police Department (NJ), Waterfront Commission of NY Harbor (NY), Nassau County Police Department (NY), Suffolk County Police Department (NY), Las Vegas Metropolitan Police Department (NV), Greensville County Sheriff’s Office (VA), Emporia Police Department (VA), Brunswick County Sheriff’s Office (VA), Halifax County Sheriff’s Office (NC), Saint Paul Police Department (MN), Minnesota Commerce Fraud Bureau (MN), Blaine Police Department (MN), McLeod County Sheriff’s Office (MN), Anoka County Sheriff’s Office (MN), Carver County Sheriff’s Office (MN), Roseville Police Department (MN), Plymouth Police Department (MN), Bloomington Police Department (MN), Eagan Police Department (MN), Woodbury Police Department (MN), Brown County Sheriff’s Office (MN), Brooklyn Park Police Department (MN), Fridley Police Department (MN), Mendota Heights Police Department (MN), Chaska Police Department (MN), and Coon Rapids Police Department (MN) provided assistance.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Rancho Cordova Man Pleads Guilty to Second Federal Charge for Being a Felon in PossessionRead the Press Release
SACRAMENTO, Calif. —Kevin Lester Wise, 68, of Rancho Cordova, pleaded guilty today to being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, a federal search warrant of Wise’s residence resulted in the discovery of a Ruger .22 caliber rifle and a silencer. Wise had previously attempted to unlawfully import another silencer from China. In 1990, Wise was convicted in Sacramento County for unlawful assault by an officer while he was serving as a deputy sheriff. In 2013, Wise was previously convicted in federal court in the Eastern District of California for a being a felon in possession of a firearm. As a convicted felon, Wise is prohibited from owning firearms, including silencers.
This case was the product of an investigation by the Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.
Wise is scheduled to be sentenced on March 7, 2023, by U.S. District Judge John A. Mendez. Wise 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.
Atlanta Man Pleads Guilty in Firearms Trafficking Conspiracy Involving 500+ Firearms Shipped from Georgia to California and Sold on the Black MarketRead the Press Release
SACRAMENTO, Calif. — Malek Williams, 29, of Stone Mountain, Georgia, pleaded guilty today to unlawful dealing in firearms without a license, U.S. Attorney Phillip A. Talbert announced.
On March 24, 2022, Williams was indicted with four other co-conspirators in a firearms trafficking scheme where firearms were acquired in Georgia and shipped to California to sell on the black market. Also charged in the conspiracy are Jerrell Lawson, 32, of Sacramento; Aisha Hoggatt, 30, of Sacramento; Terrence Phillips, 40, of Union City; and James Gordley, 33, of Modesto.
According to court documents, between November 2019 and October 2021, Williams participated in a conspiracy that brought more than 500 firearms from Georgia into California. Lawson would broker firearms transactions in Georgia over the internet, and Williams, a Georgia resident with a license to carry a concealed firearm, would pick up firearms in person and mail the firearms to various locations in California at Lawson’s direction. Some of the firearms went to individuals that are prohibited from possessing firearms due to prior felony convictions. Hoggatt worked with Lawson to coordinate the purchase, mailing, and distribution of the firearms. Phillips and Gordley also distributed the firearms in California.
The investigation began when a firearm used in a shooting in Sacramento was traced to the last known sale by a federally licensed dealer in Georgia. A subsequent sale of the firearm led to Lawson’s organization. Lawson and his co-conspirators used coded language to traffic firearms and moved money using a variety of financial institutions. During the investigation, interdicted packages destined for Lawson and other co-conspirators were found to contain firearms, ammunition, knives, and brass knuckles, among other things.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Postal Inspection Service, and the Sacramento Region/San Francisco Bay Area Cross-Jurisdictional Firearms Trafficking Strike Force Initiative. Assistant U.S. Attorneys Alexis Klein and Justin Lee are prosecuting the case.
Williams is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Jan. 31, 2023. Williams faces a maximum statutory penalty of five years in prison for unlawful dealing in firearms.
Charges are pending against the remaining defendants. The charges against them are only allegations; 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.
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.
The Sacramento Region/San Francisco Bay Area Cross-Jurisdictional Firearms Trafficking Strike Force is one of five cross-jurisdictional strike forces launched by the U.S. Department of Justice in July 2021 to disrupt illegal firearms trafficking in key regions across the country. Each strike force is led by designated United States Attorneys, who collaborate with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and with state and local law enforcement partners within their own jurisdiction as well as law enforcement partners in areas where illegally trafficked guns originate. The strike forces use the latest data, evidence, and intelligence from crime scenes to identify patterns, leads, and potential suspects in violent gun crimes, and are an important part of the Department’s Comprehensive Violent Crime Reduction Strategy.
Stockton Man Sentenced to 9 Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — Jeffrey James Bray, 37, of Stockton, was sentenced today to nine years and two months in prison for being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Bray sold eight firearms and hundreds of rounds of ammunition to an undercover agent or confidential source in 2019. During the investigation, Bray was arrested on unrelated state charges. While in custody on those state charges, Bray used jail phone calls and directed others to continue his illicit firearms business. Bray cannot lawfully buy or possess firearms or ammunition himself because he has sustained numerous felony convictions, including evading a police officer, vehicle theft, being a felon in possession of a firearm and ammunition, and twice for second degree burglary.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Yolo County District Attorney’s Office, the California Department of Corrections and Rehabilitation, the Yuba City Police Department, and the Sacramento Police Department. Assistant U.S. Attorney Alstyn Bennett 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 Resident Sentenced to 5 Years in Prison for Conspiring to Distribute FentanylRead the Press Release
FRESNO, Calif. — Isaiah Garcia, 20, of Fresno, was sentenced today to five years in prison for conspiring to distribute over 40 grams of fentanyl, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between October and December of 2020, Isaiah Garcia conspired with his brother, who was incarcerated at the Fresno County Jail, to distribute fentanyl pills. The two used the jail’s telephones to discuss the plan. Investigators uncovered the plan and in December 2020, obtained a federal warrant to search Isaiah Garcia’s residence. In his bedroom, officers found over 1,000 fentanyl pills. Isaiah Garcia pleaded guilty on Aug. 8, 2022. On Oct. 11, 2022, Isaiah Garcia’s brother, Mario Garcia, was sentenced to 12.5 years in prison.
The case was the result of an investigation by FORT (a multi-agency team composed of Homeland Security Investigations, the Drug Enforcement Administration, and the Fresno Police Department) and the Fresno County Sheriff’s Office. 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.
Los Angeles Man Sentenced to More Than 4 Years in Prison for Conspiring to Distribute Narcotics on the Dark WebRead the Press Release
FRESNO, Calif. — William James Farber, 43, of Los Angeles, was sentenced Thursday to four years and nine months in prison for a conspiracy to distribute narcotics, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Farber and his co-conspirators, operating under the name PureFireMeds, sold narcotics including marijuana, cocaine, oxycodone, hydrocodone, psilocybin, MDMA (Ecstasy), LSD, and ketamine on dark web marketplaces, including Silk Road. After Silk Road was shut down by law enforcement in October 2013, Farber and his co‑conspirators began selling on the AlphaBay dark web marketplace under the name HumboldtFarms. It became one of the largest vendors on AlphaBay, completing tens of thousands of orders for marijuana on the site to customers throughout the United States.
This case was the product of an investigation by Homeland Security Investigations, the U.S. Postal Inspection Service in Los Angeles, the Los Angeles Police Department, and the Bakersfield Police Department with assistance from the Los Angeles Joint Regional Intelligence Center. Assistant U.S. Attorneys Jeffrey A. Spivak and Ross Pearson 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.
Fresno Man Pleads Guilty to Illegal Possession of a FirearmRead the Press Release
FRESNO, Calif. — Darien Williams, 24, of Fresno, pleaded guilty today to being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Aug. 26, 2021, in Fresno, law enforcement officers tried to stop a car in which Williams was a passenger. The driver failed to yield, sped away, and crashed into another car. After the crash, Williams fled on foot. While fleeing, he discarded a loaded handgun that officers found after they caught and arrested Williams. Williams is prohibited from possessing firearms because of his prior felony record.
This case is the product of an investigation by the Federal Bureau of Investigation and the Fresno Police Department. Assistant U.S. Attorney Justin J. Gilio is prosecuting the case.
Williams is scheduled to be sentenced on Jan. 27, 2023, by U.S. District Judge Jennifer L. Thurston. Williams faces a maximum sentence of 10 years in prison and a fine up to $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 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.