Eastern District of California
Press releases recorded for this federal judicial district.
“Coyote” Arrested in Yolo County for Transportation of Non-Citizens and Refusal to Release Passengers After Demanding More PaymentRead the Press Release
SACRAMENTO, Calif. — A human smuggler (also known as a “coyote”) was taken into federal custody today on a criminal complaint charging him with unlawful transportation of noncitizens without status in the United States, U.S. Attorney Phillip A. Talbert announced.
Mateo Gomez Gonzalez, 29, of Mexico, was arrested at a gas station near Dunnigan, California, and currently is in federal custody in Sacramento.
According to court documents, on Sept. 28, 2022, a concerned resident of Sacramento called law enforcement to report that his relative and a friend were being held over a payment dispute in a human smuggling operation. Specifically, the driver of a vehicle involved in the transport of Mexican citizens to the United States was threatening to drop the relative and family friend at an unknown stash house rather than to the awaiting family members if additional payment was not made. Acting on the tip, law enforcement met the vehicle at a gas station, discovered four passengers in the vehicle who did not have lawful status in the United States, and arrested the driver, Gomez.
This case is the product of an investigation by the Homeland Security Investigations. Assistant U.S. Attorneys Audrey B. Hemesath and Denise Yasinow are prosecuting the case. The investigation is ongoing.
If convicted, Gomez faces a maximum statutory penalty of five years in prison per individual smuggled. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Sacramento Man Sentenced to More Than 7 Years in Prison for Methamphetamine TraffickingRead the Press Release
SACRAMENTO, Calif. — Adilson Jose Montiero, 42, of Sacramento, was sentenced today to seven years and 10 months in prison for possession with intent to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Nov. 19, 2020, agents executed a federal search warrant at Montiero’s residence in Sacramento and found a total of more than 1.5 pounds of crystal methamphetamine, about half a pound of counterfeit Ecstasy pills containing methamphetamine, and smaller amounts of cocaine, crack cocaine, heroin, and counterfeit M-30 pills containing fentanyl. Agents also found four handguns, three of which were Glock-style handguns with no serial number known as “ghost” guns.
This case was the product of an investigation by the Drug Enforcement Administration. Assistant U.S. Attorney David W. Spencer 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.
Former Crips Gang Members and Inmates Each Sentenced to More Than Five Years in Prison for COVID-19-Related Unemployment Insurance Fraud SchemeRead the Press Release
FRESNO, Calif. — Sholanda Thomas, 38, a former Hoover Crips gang member and an inmate at the Central California Women’s Facility (CCWF) in Chowchilla, was sentenced today to five years and five months in prison for conspiring to submit fraudulent unemployment insurance claims to the California Employment Development Department (EDD) in the names of other CCWF inmates, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Thomas sent her own and other inmates’ personally identifiable information to Christina Smith, a parolee and a former Hoover Crips gang member, to submit the unemployment insurance claims in their names. The underlying applications falsely represented that the inmates had been working as carpet cleaners, hair stylists, mechanics, and other jobs. This was impossible because they were incarcerated and ineligible for benefits. The intended loss to the EDD and the United States was over $250,000 and the actual loss was more than $200,000. The proceeds were spent on various personal expenses, including plastic surgery for Smith.
Smith was sentenced in September 2021 to five years in prison for her role in the conspiracy.
This case was the product of an investigation by the Federal Bureau of Investigation, the California Department of Corrections and Rehabilitation’s Investigative Services Unit, and the EDD. Assistant U.S. Attorney Joseph Barton prosecuted the case.
This case was prosecuted as part of the California COVID-19 Fraud Enforcement Strike Force, one of three interagency COVID-19 fraud strike force teams established by the Department of Justice. The California Strike Force combines law enforcement and prosecutorial resources in the Eastern and Central Districts of California. The strike forces focus on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
Elk Grove and Las Vegas Residents Plead Guilty to Conspiring to Violate the U.S. Trade Embargo on IranRead the Press Release
SACRAMENTO, Calif. — Richard Lant, 77, of Las Vegas, Nevada, pleaded guilty today to a conspiracy to export to an embargoed country, Iran, U.S. Attorney Phillip A. Talbert announced. On Sept. 19, 2022, Dariush Niknia, 59, of Elk Grove, entered a guilty plea to the same charge.
According to court documents, between May and October 2015, Niknia, Lant and others conspired to unlawfully sell and supply 500 Russian-made tank helmets to Niknia’s contact in Tehran, Iran. The helmets were to be configured for a Russian-produced T-72S battle tank and were required to have a five-pin plug, a feature that is necessary to enable a tank communication device.
In May 2015, Niknia contacted Lant, who operated R&L Ltd., a company that sold Russian items, and requested to purchase 500 T-72S tank helmets and to have the helmets shipped to Tehran. Niknia initially paid R&L monies to purchase sample tank helmets and to have the helmets sent from Russia to Iran. Prior to the shipment of the first sample helmet both Lant and Niknia were told that the United States’ sanctions prohibited the shipment of items to Iran, but both proceeded with the transaction.
Niknia’s customer rejected the first sample helmet because it did not have a rectangular five-pin plug, but approved the second sample tank helmet that was sent to Tehran. In an email communication with Niknia, Niknia’s Iranian contact discussed the fact that the helmets would be inspected by the ultimate buyer, the “GOI” or Government of Iran. Niknia then requested additional helmets be sent to Tehran, 50 at a time, and paid Lant money for the purchase and shipment of the first 50 helmets. However, the deal ultimately fell apart before additional helmets were sent because Lant’s associate could not obtain and ship the tank helmets in the quantities and timeframe Niknia required. The Russian supplier said the difficulties stemmed from the fact that it was illegal to both sell large quantities of tank helmets and to send modern military items to countries such as Iran that might use them in “terroristic or any war ways.”
In May 2015, prior to contacting Lant, Niknia attempted to purchase battle tank helmets from another individual who sold Russian military memorabilia online. This individual did not sell Niknia any helmets and instead reported him to the Federal Bureau of Investigation.
The embargo on Iran, which is enforced through the International Emergency Economic Powers Act and the Iranian Transactions and Sanctions Regulations, prohibits the export, sale, and supply of goods to Iran by United States persons with very limited exceptions. It also prohibits, with very limited exceptions, United States persons from engaging in any transaction or dealing related to the sale or supply of goods to Iran.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Shelley D. Weger is prosecuting the case with assistance from Trial Attorney Scott Claffee of the Counterintelligence and Export Control Section of the National Security Division.
Niknia and Lant are scheduled to be sentenced by U.S. District Judge Kimberley J. Mueller on Dec. 5, 2022, and Jan. 9, 2023 respectively. Both face 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.
Bakersfield Man Sentenced to 20 Years in Prison for Receiving Child PornographyRead the Press Release
FRESNO, Calif. — John Perry, 64, of Bakersfield, was sentenced today to 20 years in prison for receiving child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in February 2020, Perry was found to have received on a cellphone, as well as on the internet through both the use of an email account as well as cloud data storage, over 1,000 image files depicting minors suffering various acts of sexual abuse. Many of the images depicted prepubescent minors and Perry likewise engaged in a pattern of activity involving the sexual abuse of minors. Perry had prior convictions in the states of Washington and California for committing crimes, including rape of a child, communicating with minors for immoral purposes, and possession of child pornography.
This case was the product of an investigation by Homeland Security Investigations. Assistant U.S. Attorney Brian W. Enos prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Sacramento Man Sentenced to 57 Months in Prison for Cocaine TraffickingRead the Press Release
SACRAMENTO, Calif. — Jason Tolbert, 45, of Sacramento, was sentenced yesterday by United States District Judge Troy L. Nunley to 57 months in prison for possession with intent to distribute cocaine, United States Attorney Phillip A. Talbert announced.
According to court documents, Tolbert was one of 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. Tolbert was intercepted during wiretaps in 2018 trafficking powder cocaine. Upon his arrest, he was in possession of over a kilogram of cocaine and a loaded firearm. Tolbert is the first defendant to be sentenced.
This case was the product of an investigation by the Drug Enforcement Administration, Sacramento Police Department, Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, United States Marshals Service, Homeland Security Investigations, and California Highway Patrol. Assistant United States Attorneys Cameron L. Desmond and Aaron Pennekamp 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.
Madera County Man Pleads Guilty to Conspiring to Cultivate Marijuana in the Sierra National ForestRead the Press Release
FRESNO, Calif. — Carson Shane Wilhite, 43, of Ahwahnee, pleaded guilty today to conspiring to manufacture, distribute, and possess with intent to distribute marijuana and possessing a firearm in furtherance of drug trafficking, U.S. Attorney Phillip A. Talbert announced.
Wilhite has agreed to pay $46,680 in restitution to the U.S. Forest Service for the damage sustained to the environment as a result of his marijuana cultivation activities.
According to court documents, Wilhite was involved in a marijuana cultivation operation at his residence on private land in the Carter Creek watershed drainage network in the Sierra National Forest and on public land adjacent to the residence. During the execution of a federal search warrant in the summer of 2019, law enforcement officers located marijuana growing inside and outside of Wilhite’s residence and 2,261 marijuana plants growing on the adjacent public land. In exchange for $3,000 in cash and an additional $300 per month, Wilhite allowed other individuals to pass through his property to the public land so that they could grow marijuana there. Upon harvest, he was going to be paid in marijuana and would receive an additional $10,000. In total, officers located 2,353 marijuana plants.
While serving the warrant in Wilhite’s residence, officers found three firearms, including an AR-15 type assault rifle with no serial number and a Springfield .40 caliber semi-automatic pistol with a live round chambered. In a second residence on the property, officers located a safe, which Wilhite controlled, that contained an additional 11 guns. Wilhite advised the officers that he had been carrying the loaded semi-automatic pistol prior to the arrival of law enforcement officers and was armed when he checked on the marijuana in the forest.
This case is the product of an investigation by the U.S. Forest Service, California Department of Fish and Wildlife, and the Madera 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 Karen A. Escobar is prosecuting the case.
Wilhite is scheduled for sentencing on January 13, 2023, before United States District Judge Jennifer L. Thurston. He faces a maximum prison term of five years in prison on the drug conspiracy and a mandatory consecutive prison term of at least five years for the firearms charge. He also faces a $250,000 fine, as to each 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.
Bulldog Gang Member Sentenced for Ammo PossessionRead the Press Release
FRESNO, Calif. — Brian Zamora, 30, of Fresno, was sentenced today by United States District Judge Jennifer L. Thurston to four years in prison for being a felon in possession of ammunition, United States Attorney Phillip A. Talbert announced.
According to court documents, officers stopped the car Zamora was traveling in after learning that he was a wanted parolee-at-large and had been spotted in the area. Officers found Zamora’s loaded AR-style “ghost gun” without a serial number and 30-round magazine concealed in a duffle bag in the car. Zamora is a felon, so he is prohibited from possessing both firearms and ammunition. In addition to three felony convictions for vehicle theft, one felony conviction for carrying a loaded firearm, two felony convictions for second degree burglary, one felony conviction for felon in possession of a firearm, Zamora was on parole for second degree attempted robbery at the time of the crime.
This case was the product of an investigation by the FBI, the Fresno Police Department Multi-Agency Gang Enforcement Consortium (MAGEC), and the California Department of Corrections and Rehabilitation. Assistant United States Attorney Laura Jean Berger prosecuted the case.
Zamora remains in federal custody.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Woodland Man Pleads Guilty to Firearms Trafficking and Unlawful Gun PossessionRead the Press Release
SACRAMENTO, Calif. — Justin Wade Johnson, 38, of Woodland, pleaded guilty today to the unlawful sale of a firearm to a felon and being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Johnson is one of 27 federal defendants arrested in February 2018 on narcotics and weapons-related charges as part of Operation Silent Night, a multi-agency law enforcement investigation into coordinated criminal activity in Woodland. Johnson is the 27th and final defendant to plead guilty. Beginning in the spring of 2016, the investigation uncovered organized criminal activity in Woodland with ties to criminal organizations in California’s jail and prison system. Although centered in Yolo County, the investigation revealed that at least nine other California counties were negatively impacted by these criminal organizations: Sacramento, Sutter, Colusa, Yuba, Del Norte, Solano, Fresno, Santa Clara, and Siskiyou.
Johnson is a felon who is prohibited from possessing any firearm because he was previously convicted of felonies for assault with a deadly weapon, possessing a weapon while being a prisoner, and possession of marijuana for sale. In October 2017, Johnson sold an AR-15 rifle to a convicted felon. At the time of the sale, Johnson knew that he was selling the rifle to a felon. Later in October, law enforcement executed a search warrant at Johnson’s storage unit in Woodland and seized a shotgun, a rifle, and four handguns.
Operation Silent Night is the product of an investigation by the FBI, the California Department of Corrections and Rehabilitation, the Yolo County District Attorney’s Office, the Woodland Police Department, and the California Highway Patrol. The following agencies provided substantial assistance: the Colusa County Sheriff’s Office, the Sacramento Police Department, the Sacramento County Sheriff’s Office, the West Sacramento Police Department, the Yolo County Sheriff’s Office, the Davis Police Department, the Yuba City Police Department, the Yuba County Sheriff’s Office, the Sutter County Sheriff’s Office, the Solano County Sheriff’s Office, the Vacaville Police Department, the Correctional Intelligence Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, the U.S. Postal Inspection Service, and the Drug Enforcement Administration. Assistant U.S. Attorney Justin Lee is prosecuting the cases. Johnson is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on Feb. 23, 2023. Johnson faces a maximum statutory penalty of 20 years in prison and a $500,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The other defendants that have been convicted are listed below:
- Aldo Arellano, 28, of Marysville, was convicted of distribution of methamphetamine and sentenced to eight years in prison;
- Raul Barajas, 24, of Woodland, was convicted of conspiracy to possess with intent to distribute and to distribute controlled substances and was sentenced to five years in prison;
- Patrick Botello, 36, of Pelican Bay State Prison, was convicted of conspiracy to possess with intent to distribute and to distribute methamphetamine and heroin. He is scheduled to be sentenced on Oct. 6, 2022;
- Israel Covarrubias, 30, of Woodland, was convicted of conspiracy to possess with intent to distribute and to distribute controlled substances and carrying a firearm during and in relation to a drug trafficking crime and was sentenced to 15 years in prison;
- Mike Do, 40, of Sacramento, was convicted of being a felon in possession of a firearm and was sentenced to three years of supervised release;
- Milton Escobedo, 33, of Woodland, was convicted of distribution of cocaine and was sentenced to 33 months in prison;
- Rachel Felix, 43, of Woodland, was convicted of distribution of methamphetamine and was sentenced to seven years in prison;
- Daisy Gonzalez, 37, of Termo, was convicted of conspiracy to manufacture marijuana and was sentenced to four years of supervised release;
- Ashley Habash, 32, of Marysville, was convicted of conspiracy to possess with intent to distribute and to distribute methamphetamine and heroin and was sentenced to five years of supervised release;
- Jose Heredia, 39, of Los Banos, was convicted of conspiracy to manufacture marijuana and was sentenced to five years in prison;
- Edgar Jimenez, 23, of Sacramento, was convicted of using a cellphone to facilitate a drug trafficking offense and was sentenced to three years in prison;
- Stefanie Lavan, 69, of Woodland, was convicted of possession with intent to distribute methamphetamine and was sentenced to two years in prison;
- John Lemus, 35, of Woodland, was convicted of being a felon in possession of a firearm and was sentenced to 46 months in prison;
- Jose Madrigal-Vega, 37, Woodland, was convicted of conspiracy to possess with intent to distribute and to distribute controlled substances and was sentenced to eight years in prison;
- Victor Magana, 28, of Woodland, was convicted of conspiracy to distribute methamphetamine and was sentenced to 11 years in prison;
- Carlos Martinez, 43, of Woodland, was convicted of possession of a firearm in furtherance of a drug trafficking crime and was sentenced to five years in prison;
- James Masterson, 28, of Newcastle, Pennsylvania, was convicted of using a cellphone to facilitate a drug trafficking offense and was sentenced to four years in prison;
- Brenda Miranda, 25, of Napa, was convicted of conspiracy to possess with intent to distribute and to distribute methamphetamine and heroin and was sentenced to five years of supervised release;
- Reginald Pajimola, 28, of Marysville, was convicted using a cellphone to facilitate a drug trafficking offense and was sentenced to two years of supervised release;
- Blas Ramirez, 24, of Sacramento, was convicted of unlawful possession of a firearm and was sentenced to 18 months in prison;
- Mercedez Silva-Sims, 26, of Colusa, was convicted of conspiracy to possess with intent to distribute and to distribute methamphetamine and heroin and was sentenced to five years of supervised release;
- Joshua Sims, 27, of Colusa, was convicted of conspiracy to possess with intent to distribute and to distribute methamphetamine and heroin, and attempted distribution of methamphetamine and was sentenced to 10 years in prison;
- Erica Umbay, 47, of Woodland, was convicted of being a felon in possession of a firearm and was sentenced to six years in prison;
- Trevor White, 27, of Sacramento, was convicted of conspiracy to possess with intent to distribute and to distribute controlled substances and was sentenced to 10 years in prison;
- Ricardo Villa, 43, of Woodland, was convicted of conspiracy to possess with intent to distribute and to distribute methamphetamine and heroin. He is scheduled to be sentenced on Nov. 3, 2022.
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.
Vacaville Parolee Indicted for Being a Felon in Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment today against Eric Terrell Christian, 31, of Vacaville, charging him with being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on July 21, 2022, Christian failed to yield during an attempted law enforcement traffic stop and sped away from the officer. Moments after this evasion, a witness called 911 and reported seeing a firearm in a parking lot Christian had just driven through. On Aug. 11, 2022, officers attempted to stop Christian; he fled on foot from his car but was quickly apprehended. In his vehicle, officers located a Glock handgun with a round in the chamber and another 17 rounds in an inserted high-capacity magazine. Officers subsequently searched the apartment in this complex that Christian had access to and located a Palmetto Arms AR-style pistol with a round in the chamber and 40 rounds in an inserted, high-capacity magazine. Christian is not allowed to possess firearms because he has previously been convicted of three felony offenses, including two convictions for assault with a deadly weapon. Christian was on parole from his second assault conviction when he committed the current offenses.
This case is the product of an investigation by the Vacaville Police Department, California Department of Corrections and Rehabilitation - Division of Adult Parole Operations, the Solano County District Attorney’s Office, the FBI’s Solano County Violent Crimes Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.
If convicted, Christian faces a maximum statutory penalty of 15 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Folsom Man Sentenced to a Year in Prison for Making False Tax ReturnsRead the Press Release
SACRAMENTO, Calif. — Zarko Danilov, 67, of Folsom, was sentenced today to 12 months and one day in prison for two counts of making and subscribing a false tax return, U.S. Attorney Phillip A. Talbert announced. Danilov was also ordered to pay a $10,000 fine and $283,359 in restitution.
According to court documents, Danilov owned and operated a dental laboratory business called Danilov’s Dental Lab. Danilov hid the true amount of gross receipts received from his business from his tax return preparers. For the tax years 2015 and 2016, Danilov failed to provide his return preparer the bank statements for one additional business bank account and one personal bank account. For the tax year 2017, Danilov failed to provide his return preparer the bank statements for that same business bank account and a different personal bank account. During a civil audit by the IRS, Danilov lied to a tax examiner about only having one bank account for business and personal matters. On May 19, 2022, Danilov pleaded guilty to two counts of making and subscribing a false tax return.
In total, Danilov’s income for tax years 2015, 2016, and 2017 was underreported by at least $1,271,694. The total amount lost by the IRS as a result of defendant’s criminal conduct for those tax years was approximately $283,359, which is the amount of restitution ordered.
This case was the product of an investigation by the IRS-Criminal Investigation. Assistant U.S. Attorney Denise N. Yasinow prosecuted the case.
El Dorado County Dog Agility Trainer Charged with Sexually Exploiting a Child OverseasRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment today against Terry Francis Le Clair, 64, of Shingle Springs, charging him with sexual exploitation of a child, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Le Clair sexually exploited a minor in his care when in a foreign country in the summer of 2017. Le Clair used the camera on his tablet computer to create photos of the minor victim depicting sexually explicit conduct, which he then brought back to California. While executing a search warrant at Le Clair’s residence, investigators also found video recordings showing various teenagers changing into and out of their swimsuits and showering in Le Clair’s bathroom. Le Clair made these video recordings using hidden cameras he set up in the bathroom.
Anyone who has information related to this case can contact the FBI at 916-746-7000.
This case is the product of an investigation by the Federal Bureau of Investigation and the Sacramento Hi-Tech Crimes Task Force, which is part of the Internet Crimes Against Children Task Force. Assistant U.S. Attorney Christina McCall is prosecuting the case.
If convicted, Le Clair faces a minimum of 15 years in prison up to a maximum statutory penalty of 30 years in prison, a $250,000 fine, a minimum of five years and up to a lifetime of supervised release, and restitution. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Jury Finds Merced Man Guilty of Sexual Assault in Yosemite National ParkRead the Press Release
FRESNO, Calif. — After a six–day trial, a federal jury found Ramonchito Racion, 52, of Merced, guilty today of one count of attempted sexual abuse and one count of abusive sexual contact, U.S. Attorney Phillip A. Talbert announced.
According to evidence presented at trial, Racion, who was working as a cook in Yosemite in the summer of 2019, sexually assaulted his roommate while the roommate was sleeping.
This case is the product of an investigation by the National Park Service. Assistant United States Attorneys Michael G. Tierney and Justin J. Gilio are prosecuting the case.
Racion is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on Jan. 20, 2023. Racion faces a maximum statutory penalty of life in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Jury Convicts MS-13 Gang Member of Kidnapping and MurderRead the Press Release
FRESNO, Calif. — On Friday, Sept. 23, 2022, a jury found Israel Alberto Rivas Gomez, 27, a citizen of El Salvador unlawfully residing in Mendota, guilty of kidnapping and murder in aid of racketeering, U.S. Attorney Phillip A. Talbert announced.
According to court documents and evidence presented at trial, Rivas Gomez was a member of La Mara Salvatrucha (MS-13), a violent criminal street gang that engages in racketeering activity, including murder, kidnapping, extortion, and drug trafficking. On Dec. 18, 2017, Rivas Gomez and other MS-13 gang members kidnapped a 19-year-old man in Mendota, drove him to a remote location approximately 30 minutes away, and used a knife and machete to murder him, all in furtherance of MS-13’s criminal gang enterprise.
“This conviction is the culmination of years of incredible teamwork between our federal, state, and local law enforcement partners,” said U.S. Attorney Talbert. “In August 2018, we announced the arrest of 25 individuals, including Rivas Gomez, associated with the MS-13 gang after investigators found evidence of broad criminal activity centered in and around the Central Valley town of Mendota. This defendant murdered a young man and brought untold harm to the victim’s family. The U.S. Attorney’s Office is committed to dismantling criminal enterprises like MS-13, and, equally important, to vindicating the rights of victims and seeking justice for their family members and loved ones.”
“This case highlights the importance and advantage of employing a collaborative investigative approach to disrupt MS-13’s violent activity in California’s central valley,” said Special Agent in Charge Sean Ragan of the Federal Bureau of Investigation Sacramento Field Office. “The FBI is deeply committed to mitigating the threat of violent criminal organizations nationwide and, locally, we are proud of the strong relationships we have with our law enforcement partners. Together, we can ensure a safer future for central valley families that deserve to live, work, and play without fear.”
“This verdict represents another important victory in the ongoing effort to rid our neighborhoods of violent transnational street gangs like MS-13 who terrorize our communities and commit the most heinous violent acts against their victims,” said HSI San Francisco / NorCal Special Agent in Charge Tatum King. “Bringing this criminal to justice is a direct result of the strong partnerships between HSI agents/analysts, and local and federal law enforcement officers and prosecutors who are all in this fight together. We will remain diligent in our pursuit of transnational criminal organizations that show no regard for the law or human life.”
This case is the product of an investigation by the Federal Bureau of Investigation, Homeland Security Investigations, the California Department of Justice and the California Highway Patrol Special Operations Unit, the Multi-Agency Gang Enforcement Consortium (MAGEC), the Fresno County District Attorney’s Office, the Fresno County Sheriff’s Office, and the California Department of Corrections and Rehabilitation Special Services Unit (SSU). Assistant U.S. Attorneys Ross Pearson, Christopher D. Baker, and Kimberly Sanchez prosecuted the case.
Rivas Gomez is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on Dec. 16, 2022. Rivas Gomez faces a mandatory statutory penalty of life in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This 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 Financial Advisor Agrees to Plead Guilty to Aggravated Identity TheftRead the Press Release
SACRAMENTO, Calif. — Tyler Rigsbee, 32, of Folsom, has signed a plea agreement admitting to committing aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.
Rigsbee was charged in a criminal information filed Tuesday in U.S. District Court. In a plea agreement, filed today, Rigsbee agreed to plead guilty to one count of aggravated identity theft. Rigsbee is scheduled for an initial appearance on Oct. 5, 2022, before Magistrate Judge Kendall J. Newman.
According to court documents, from 2016 to 2021, Rigsbee worked as a financial advisor at a major bank in Sacramento. During his employment, Rigsbee stole over $158,000 from the accounts of two bank customers. Rigsbee stole this money by transferring it from customer accounts to brokerage accounts he created at E-Trade, a third-party financial institution. He then transferred the money from these brokerage accounts to his own personal bank account. Rigsbee also attempted to conceal his scheme by partially replacing some of what he stole from one of these bank customers with money he took from the account of a third bank customer.
After the death of one bank customer in August 2018, Rigsbee created a fraudulent request for distribution of eligible assets from a transfer-on-death account by falsely pretending that he was the deceased customer’s beneficiary. On March 15, 2019, Rigsbee submitted this request for distribution of eligible assets to the bank’s estate processing department, which caused the liquidation of the customer’s account and transfer of these funds to a brokerage account Rigsbee created and controlled.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Elliot C. Wong is prosecuting the case.
Rigsbee faces a mandatory term of two years in prison and a statutory maximum fine of up to $250,000 fine or twice the gross gain or gross loss. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Georgia Resident Sentenced to 5 Years in Prison for International Lottery Fraud Scheme that Victimized Elderly People in California and ElsewhereRead the Press Release
SACRAMENTO, Calif. — Adedayo Akinwunmi Agbayewa, 45, of College Park, Georgia, was sentenced today to five years in prison and ordered to pay $7,784,415 in restitution for a mail fraud and money laundering conspiracy, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Agbayewa and his co‑conspirators were involved in a lottery or sweepstakes telemarketing scheme that targeted elderly victims. The conspirators used false names and falsely notified the victims by mail or telephone that they had won a sweepstakes or lottery. The victims were told that they had to pay taxes or fees before they could receive their winnings. The victims mailed checks or deposited money into bank accounts as directed by the individuals involved in the scheme. However, the victims never received any prize money; in fact, no lottery or sweepstakes ever existed.
This case was the product of an investigation by the Federal Bureau of Investigation and IRS‑Criminal Investigation. Assistant U.S. Attorney Christina McCall prosecuted the case.
The U.S. Department of Justice, through the Elder Justice Initiative, works to combat elder abuse, neglect and financial fraud and scams that target our nation’s older adults. Through the Elder Justice Initiative, the department provides community presentations, educational webinars, summits, and resources to help older victims and their families. The Elder Justice Initiative’s website is: https://www.justice.gov/elderjustice. The National Elder Fraud Hotline number is: 1-833–FRAUD–11 (or 833–372–8311).
Sacramento Man Sentenced to 15 Years in Prison for Possessing Methamphetamine for DistributionRead the Press Release
SACRAMENTO, Calif. — A Vern Saeteurn, 34, of Sacramento, was sentenced Thursday to 15 years in prison for possessing methamphetamine with the intent to distribute it, U.S. Attorney Phillip A. Talbert announced.
According to court documents, law enforcement agents searched Saeteurn’s home on Sept. 6, 2018. They found about 11 kilograms of methamphetamine, a garage lab for adulterating and packaging methamphetamine, and several guns — two of which had been stolen from law enforcement agencies. Four children were also present in the home. Saeteurn was purchasing around 10 kilograms of methamphetamine several times a week.
This case was the product of an investigation by the Federal Bureau of Investigation, Homeland Security Investigations, the Sacramento Sheriff’s Office, the Sacramento Police Department, the California Highway Patrol, and the California Department of Corrections & Rehabilitation. Assistant U.S. Attorney Michael Beckwith 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.
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.
Vallejo Tax Preparer and Business Owner Pleads Guilty to Assisting in Filing False Tax ReturnsRead the Press Release
SACRAMENTO, Calif. — Emilio Lara, 55, of American Canyon, pleaded guilty Tuesday to willfully aiding and assisting in the preparation and presentation of false and fraudulent income tax returns, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Lara was the owner of Lara’s Income Tax Services, an income tax preparation business in Vallejo. From 2009 to 2012, Lara prepared individual income tax returns for clients on which he falsely inflated certain Schedule A deductions. Lara listed inflated amounts for medical and dental expenses, charitable contributions by cash or check, charitable contributions other than by cash or check, and unreimbursed employee expenses, resulting in a loss to the IRS.
According to the plea agreement, Lara agreed to pay back $7,868 in restitution for tax loss to the IRS. Lara further agreed to a tax preparation injunction, which means he will be permanently prohibited from preparing or filing federal tax returns for anyone other than himself.
This case is the product of an investigation by the Internal Revenue Service – Criminal Investigation. Assistant U.S. Attorneys Michael Anderson and Emily Sauvageau are prosecuting the case.
Lara is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Jan. 10, 2023. Lara faces a maximum statutory penalty of three years in prison and a $100,000 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.
Yuba City Man Sentenced to More Than 15 Years in Prison for Child ExploitationRead the Press Release
SACRAMENTO — James Dean Miller, 54, of Yuba City, was sentenced today to 15 years and eight months in prison for sexual exploitation of a child, U.S. Attorney Phillip A. Talbert announced.
Miller pleaded guilty to one count in April 2022. According to court records, on March 17, 2018, Miller produced a surreptitious video of a naked child and still images depicting himself engaged in sexually explicit conduct with the child while she slept. Miller subsequently possessed this child sexual abuse material over a period of several months.
Miller was convicted of state charges of unlawful sexual penetration of an unconscious victim in 2018. Upon his release from state custody, Miller was transferred to federal custody for federal prosecution.
This case was the product of an investigation by the Federal Bureau Investigation and the Yuba County Sheriff’s Department. Assistant U.S. Attorney Denise N. Yasinow prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Former Sacramento Man Pleads Guilty to Failing to File Report of Foreign Bank and Financial AccountsRead the Press Release
SACRAMENTO, Calif. — Virgil Sever Santa, 49, formerly of Sacramento, pleaded guilty today to failing to file a report of foreign bank and financial accounts (FBAR) with the Department of the Treasury, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Virgil Santa’s wife, Maria Santa, was convicted of mail fraud in 2013 and was ordered to surrender in early 2014 for service of her prison sentence. In February 2014, Virgil Santa reported to local law enforcement that his wife was missing and had left a note suggesting that she had committed suicide. Despite search efforts, Maria Santa was not found. It was later determined that she had faked her purported suicide and fled the country to avoid going to prison. Documents obtained from the Romanian government confirmed that Maria Santa eventually made her way to Romania.
According to court documents, in December 2014, Virgil Santa opened a foreign bank account at Banca Comerciala Romana S.A., in Romania, over which he had signatory authority. In April 2015, he caused over $50,000 to be wired from the United States to this foreign bank account. Bank records show that, in June 2015, Virgil Santa added his wife to the account so that she was permitted to make withdrawals in Romania. While Maria Santa was hiding in Romania from United States authorities, the couple made significant withdrawals from the account between April and August 2015.
Because Virgil Santa’s Romanian bank account had a value of over $10,000 in the 2015 calendar year, he was required by law to file an FBAR, in the form of FinCEN Form 114, with the Treasury Department by June 30, 2016. Knowing that he had a duty to file such a report, Santa willfully failed to file an FBAR by the deadline. In 2016, Virgil Santa also filed a U.S. tax return for the 2015 tax year, which also failed to disclose the existence of this foreign account.
In August 2016, federal agents found Maria Santa living as a fugitive with her husband back in Sacramento. She was arrested and eventually pleaded guilty to failing to surrender for service of her prison sentence. On Jan. 24, 2018, she was sentenced to serve a year and a day in prison consecutive to her original 20-month sentence.
This case is the product of an investigation by IRS Criminal Investigation. Assistant U.S. Attorneys Robert J. Artuz and Matthew Thuesen are prosecuting the case.
Virgil Santa is scheduled to be sentenced on Nov. 29, 2022, by U.S. District Judge Dale A. Drozd. Santa faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Bakersfield DMV Employee Pleads Guilty to Issuing Commercial Driver’s Licenses to Unqualified Drivers in Exchange for BribesRead the Press Release
FRESNO, Calif. — Ulises Pena, 39, a former California Department of Motor Vehicles employee in Bakersfield, pleaded guilty Monday to illegally producing California commercial driver’s licenses (CDL) in exchange for bribes, U.S. Attorney Phillip A. Talbert announced.
According to court records, Pena was a Motor Vehicle Representative at the DMV and was responsible for processing driver’s license applications. From January 2015 through August 2016, he arranged for the passage of written tests for students from co-defendant Bikramjit Singh Pannu’s truck driving school who were having trouble passing the tests in exchange for payments from Pannu. Pena improperly accessed the students’ DMV records and altered them to show that the students had passed the tests when that was not true. His alterations caused the fraudulent issuance of CDLs to the unqualified students.
This case is the product of an investigation by Homeland Security Investigations and the California DMV’s Internal Affairs Division. Assistant U.S. Attorneys Joseph Barton and David Gappa are prosecuting the case.
Charges are pending against Pannu. He is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Pena has agreed to cooperate with the government in its ongoing case against Pannu. Pena is scheduled to be sentenced by U.S. District Judge Ana de Alba on Dec. 12, 2022. Pena faces a maximum penalty of 15 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Vallejo Man Pleads Guilty to Possessing Methamphetamine with Intent to DistributeRead the Press Release
SACRAMENTO, Calif. — Christopher Matthew Rougeau, 38, of Vallejo, pleaded guilty today to possessing methamphetamine with intent to distribute, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on April 20, 2022, law enforcement officers found Rougeau in his car and searched him pursuant to a search warrant. They found a pistol in a holster on his hip. On the passenger seat, officers found 159 grams of methamphetamine, which was 94% pure, and a digital scale. In the backseat, officers found another pistol. Rougeau has been previously convicted in California state court of multiple firearm and drug offenses.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the Marin County Sheriff’s Office. Assistant U.S. Attorney Nicholas M. Fogg is prosecuting the case.
Rougeau is scheduled to be sentenced on Dec. 5, 2022, by U.S. District Judge William B. Shubb. Rougeau 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.
Sherri Papini Sentenced to 18 Months in Prison for Lying to Federal Agents About Being Kidnapped and Defrauding the California Victim Compensation BoardRead the Press Release
SACRAMENTO, Calif. — Sherri Papini, 39, of Redding, was sentenced today to 18 months in prison to be followed by 36 months of supervised release for making materially false statements to FBI agents about the circumstances of her own hoax kidnapping and committing mail fraud based on her being a kidnapping victim, U.S. Attorney Phillip A. Talbert announced today.
Papini was ordered to pay $309,902 in restitution for losses incurred by the California Victim Compensation Board, the Social Security Administration, the Shasta County Sheriff’s Office, and the Federal Bureau of Investigation.
On April 12, 2022, Papini was charged in a criminal information with 34 counts of mail fraud and one count of making false statements. On April 18, 2022, Papini pleaded guilty to a single count of mail fraud and one count of making false statements.
According to the criminal complaint and Papini’s plea agreement, on Nov. 2, 2016, Papini was reported missing and was believed to be kidnapped. Extensive searches were conducted for her in Shasta County, throughout California, as well as other states. Twenty-two days later, on Nov. 24, 2016, Papini reappeared with various bindings on her body and injuries, including a “brand” on her right shoulder, and claimed that she had been abducted by two Hispanic women at gunpoint, held against her will, and that she had been abused by her captors. At that point, law enforcement efforts focused on finding her abductors. For over four years, Papini repeated her false story about her kidnapping, while law enforcement continued its investigation to identify Papini’s kidnappers.
Eventually, the evidence showed that Papini’s story was a carefully planned, false story. DNA, cellphone, and car rental evidence proved she had been voluntarily staying with a former boyfriend and that she had harmed herself to support her false statements. On Aug. 13, 2020, an FBI special agent and a detective with the Shasta County Sheriff’s Office met with Papini. At the outset of the meeting, they told Papini it was a crime to lie to federal agents. Papini continued to claim she was kidnapped. Later in the interview, Papini was again warned that it was a crime to lie to federal agents and was told about the DNA and telephone evidence showing that she had been with her former boyfriend. Yet, even after this second warning and evidence, Papini continued to make false statements.
Not only did Papini lie to law enforcement, her friends, and her family, she also made false statements to the California Victim Compensation Board and the Social Security Administration in order to receive benefits as a result of her alleged “post-traumatic stress” from being abducted.
This case was the product of an investigation by the FBI and the Shasta County Sheriff’s Office with assistance from the California Department of Justice’s Bureau of Forensic Services and Bureau of Investigation, and the California Highway Patrol. Assistant U.S. Attorneys Veronica M.A. Alegría and Shelley D. Weger prosecuted the case.
Kern County Man Sentenced to Prison for Unlawfully Possessing AmmunitionRead the Press Release
FRESNO, Calif. — Jessie Gonzalez, 26, of Wasco, was sentenced today to three years and 10 months in prison for being a felon in possession of ammunition, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Dec. 22, 2021, law enforcement officers arrested Gonzalez for an active parole violation warrant and found a Polymer 80 handgun in Gonzalez’s waistband, which was loaded with a high-capacity magazine and 16 rounds of 9 mm ammunition. At the time of the offense, Gonzalez, who uses the moniker “Creeper,” was a member of the Varrio Wasco Rifas, a southern criminal street gang in Wasco. Gonzalez may not lawfully possess firearms or ammunition because of criminal convictions he has sustained in Bakersfield, including assault with a firearm on a person and being a prisoner in possession of a weapon.
This case was the product of an investigation by the Federal Bureau of Investigation, the Kern County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Christopher D. Baker 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.
Washington Men Indicted for Possession of Firearms and Ammunition in Fresno CountyRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against residents of Everett, Washington, Brian Ulises Rangel, 21, and Martin Velazquez, 29, charging Rangel with being a felon in possession of a firearm and Velazquez with being a felon in possession of ammunition, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Aug. 15. 2022, law enforcement officers in Fresno County conducted a traffic stop on a car occupied by Rangel and Velazquez. Because neither individual had a valid driver’s license, the car was towed. During a search of the car, two firearms (one stolen and the other with an obliterated serial number) and ammunition were found.
Both defendants are prohibited from possessing firearms or ammunition because of previous convictions in the state of Washington. Rangel was convicted for possession with intent to manufacture or deliver methamphetamine and Velazquez was convicted for unlawful firearm possession.
This case is the product of an investigation by the Fresno County Sheriff’s Office, the Drug Enforcement Administration, the Fresno Police Department, and Homeland Security Investigations. Assistant U.S. Attorney Justin J. Gilio is prosecuting the case.
If convicted, the defendants face a minimum of 15 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants 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.
Placer County Couple Sentenced for Tax-Related OffensesRead the Press Release
SACRAMENTO, Calif. — A Foresthill couple was sentenced today for tax-related offenses, and have agreed to pay over $605,000 in restitution, U.S. Attorney Phillip A. Talbert announced.
Virendra (Vic) Maharaj, 55, was sentenced to 364 days in prison for willfully failing to file tax return information with the U.S. Treasury related to his receipt of cash while engaged in trade or business. Maharaj’s wife, Rosalin R. Prasad, was sentenced to 24 months’ probation for a conspiracy to defraud the United States with respect to the Internal Revenue Service’s assessment of income taxes. They pleaded guilty on Dec. 9, 2021.
According to court documents, Prasad conspired with Maharaj to defraud the IRS in the IRS’s attempts to assess the couple’s tax obligations for the years 2005, 2006, and 2007. Maharaj worked at car dealerships in Sacramento and Woodland in those years and earned substantial income. Several actions were taken to further the conspiracy to thwart the proper assessment of income taxes. Among other things, part of Maharaj’s wages were paid directly to Prasad; part of Maharaj’s compensation was paid directly to Prasad and Maharaj’s creditors through indirect payments; Maharaj took compensation in the form of currency; Prasad improperly deferred around $270,000 in capital gains related to her purchase of a $1.9 million residence; Prasad caused false tax returns to be filed in each of those years; and Prasad made false statements during an IRS audit. Prasad conspired to underreport over $819,000 in income and, in turn, underpay over $184,000 in federal income taxes. She received substantial tax refunds in 2005, 2006, and 2007.
According to court documents, Maharaj was an owner, general manager, and salesperson of Maharaja Motors LLC, which operated a used car lot in Woodland, from approximately 2007 through 2016. In 2015, Maharaj sold a vehicle to a customer and, in turn, received a cash payment of over $10,000. Maharaj willfully failed to file information with the U.S. Treasury, specifically an IRS Form 8300, which is required to be filed by a person engaged in certain trades or businesses, including an automobile sales business, who receives a cash payment exceeding $10,000.
These cases were the product of an investigation by IRS-Criminal Investigation. Assistant U.S. Attorneys Nirav Desai and Audrey Hemesath prosecuted the cases.
Modesto Man Sentenced to 45 Years in Prison for Production of Child PornographyRead the Press Release
FRESNO, Calif. — Anthony Rodriguez, aka Anthony Rito Lara, 34, of Modesto, was sentenced today to 45 years in prison for sexual exploitation of a minor, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in September and October 2020, Rodriguez used a cellphone to create approximately 49 videos and 51 images of a child under 12 years old engaged in sexually explicit conduct. Rodriguez distributed some of these videos over the internet, including one video in which he engages in a sex act with the child.
This case was the product of an investigation by the Federal Bureau of Investigation and the Modesto Police Department with assistance from the Stanislaus County District Attorney’s Office. Assistant U.S. Attorney Alexandre M. Dempsey prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Kern County Man Charged with Firearms OffensesRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Damien Torres, 22, of Wasco, charging him with illegal possession of firearms and ammunition, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Aug. 5, 2021, Torres was found in possession of ammunition after officers contacted him in response to a disturbance call. On Nov. 29, 2021, Torres was found in possession of a firearm after he failed to yield to officers as they were trying to stop him for a traffic violation. On March 18, 2022, Torres was found to be in possession of a firearm during a search of his residence, and on May 2, 2022, a firearm was found at Torres’ residence during a search after reports of a confrontation involving Torres striking a male with a firearm the day before. Torres is prohibited from possessing firearms and ammunition based on his prior convictions for taking a vehicle without consent and possession of a loaded a firearm by a gang member.
This case is the product of an investigation by the Kern County Sheriff’s Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Laurel J. Montoya is prosecuting the case.
If convicted, Torres faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the 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.
Justice Department Announces COVID-19 Fraud Strike Force TeamsRead the Press Release
SACRAMENTO, Calif. – Today the Justice Department announced the establishment of three strike force teams created to enhance the department’s existing efforts to combat and prevent COVID-19 related fraud.
The strike force teams will operate out of U.S. Attorney’s Offices in the Southern District of Florida, the District of Maryland, and a joint effort between the Eastern and Central Districts of California.
“These Strike Force teams will build on the Department’s historic enforcement efforts to deter, detect, and disrupt pandemic fraud wherever it occurs,” said Attorney General Merrick B. Garland. “Since the start of this pandemic, the Justice Department has seized over $1.2 billion in relief funds that criminals were attempting to steal, and charged over 1,500 defendants with crimes in federal districts across the country, but our work is far from over. The Department will continue to work relentlessly to combat pandemic fraud and hold accountable those who perpetrate it.”
“The Strike Force Teams are the latest example of the Justice Department’s commitment to fight pandemic fraud,” said Associate Deputy Attorney General Kevin Chambers, who serves as the department’s Director for COVID-19 Fraud Enforcement. “The work being done by our prosecutors, trial attorneys, agents and partners on our COVID-19 Fraud Enforcement Task Force has been extraordinary. We’re going a step further today with the announcement of strike force teams to support, enhance, and continue the great work being done across the department.”
“The U.S. Attorney’s Office for the Eastern District of California is proud to be included as a part of the COVID-19 Fraud Enforcement Strike Force,” said U.S. Attorney Phillip A. Talbert. “We have had early successes pursuing COVID-19 fraud both civilly and criminally. For example, our district obtained the first civil settlement in the nation for fraud related to the CARES Act’s Paycheck Protection Program, and we have brought a number of criminal prosecutions against defendants who obtained through fraud relief monies intended to help those in need. We remain committed to leading investigations and vigorously prosecuting those who commit COVID-19 fraud.” Recent examples of the Eastern District of California’s COVID-19 fraud work include the following:
U.S. v. Daryol Richmond, et al, 1:21-cr-184 DAD
Daryol Richmond, 31, a Kern Valley State Prison inmate, pleaded guilty on Feb. 22, 2022, to conspiracy and aggravated identity theft charges for his role in a $25 million unemployment insurance fraud scheme during the COVID-19 pandemic. Seven others, including an inmate at the California Correctional Institution in Tehachapi, California, were charged in the scheme. According to the plea agreement, between June 2020 and December 2020, Richmond obtained the personally identifiable information (PII) for other individuals, including inmates and non-inmates, without their authorization. He then provided this information to his co-conspirators inside and outside of prison through emails and jail calls. The co-conspirators then filed applications for unemployment insurance with the California Employment Development Department (EDD) that falsely stated that the inmates, minor children, and others previously worked as clothing merchants, handymen, and other jobs, and recently became unemployed because of the COVID-19 pandemic. Charges are pending against the other seven defendants; they are presumed innocent until and unless proven guilty beyond a reasonable doubt. The charges carry a sentence up to 20 years in prison and a $250,000 fine.
U.S. v. Makiah Miles, et al., 1:22-cr-129 ADA
An inmate at the Central California Women’s Facility in Chowchilla, Makiah Miles, 29, of Compton, California, and her mother Apryl Weston, 50, of Santa Maria, California, took advantage of changes made to the California Employment Development Department (EDD) eligibility criteria in response to the COVID-19 pandemic and submitted the fraudulent claims. The inmate obtained other inmates’ names, dates of birth, and social security numbers and sent that information to her mother on the outside for her to submit claims in those inmates’ identities as well as her own identity. The underlying applications contained several misrepresentations, including that the inmates had been self-employed as accountants, beauty culturists, child care providers, cosmetologists, hairdressers, and other occupations, and that they recently became unemployed because of the COVID-19 pandemic. The claims were worth over $550,000. The defendants used the money to purchase handbags, jewelry, and televisions, among other items. The pending charges carry a maximum statutory penalty of 20 years in prison and $250,000 fine. The defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts.
Since the establishment of the task force, the department has worked closely with our law enforcement partners to analyze the extraordinary amount of data from our state workforce agency partners and the Small Business Administration. The strike force teams will be composed of dedicated prosecutors and agents from the Department of Labor Office of Inspector General, the Small Business Administration Office of Inspector General, the Department of Homeland Security Office of Inspector General, the FBI, the U.S. Secret Service, Homeland Security Investigations, Internal Revenue Service Criminal Investigations, and the U.S. Postal Inspection Service, with assistance from the Pandemic Response Accountability Committee and the Special Inspector General for Pandemic Recovery. The strike force teams are designed to accelerate the process of turning data analytics into criminal investigations, which will enhance prosecutions. This prosecutor-led approach has proven successful in other organized crime arenas; it will be key to dismantling the networks that stole pandemic relief funds.
The Justice Department’s efforts to combat COVID-19 related fraud schemes have proceeded on numerous fronts, including cases and investigations involving the Paycheck Protection Program (PPP), Economic Injury Disaster Loan (EIDL) program, Unemployment Insurance (UI) programs, and COVID-19 health care fraud enforcement.
For further information on the Criminal Division’s enforcement efforts on PPP fraud, including court documents from significant cases, visit the following website: https://www.justice.gov/criminal-fraud/ppp-fraud. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. For further information on the Civil Division’s enforcement efforts, visit the following website: https://www.justice.gov/civil.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Roseville Man Sentenced to 15 Years in Prison for Sexual Exploitation of a ChildRead the Press Release
SACRAMENTO, Calif. — Brian Baptise Formiconi, 49, of Roseville, was sentenced Monday to 15 years in prison for sexual exploitation of a child, U.S. Attorney Phillip A. Talbert announced.
According to court documents, law enforcement officers in Canada were investigating a large network of Kik Messenger users that were trading child pornography. When reviewing some of the chats, they found messages containing nude pictures of a minor victim being sent by Formiconi. Information from Kik, internet service providers, and other investigations led to the identification of Formiconi and the victim.
This case was the product of an investigation by Homeland Security Investigations with assistance from the Royal Canadian Mounted Police. Assistant U.S. Attorneys Roger Yang and Audrey Hemesath prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Sacramento Man Sentenced to 30 Years in Prison for Sex Trafficking of a MinorRead the Press Release
SACRAMENTO, Calif. — Robert Pierre Duncan, 26, of Sacramento, was sentenced today to 30 years in prison for a conspiracy to engage in sex trafficking of a child, sex trafficking of a child, and escape from custody, U.S. Attorney Phillip A. Talbert announced.
On March 8, 2022, a federal jury found Duncan guilty on all counts of a three-count superseding indictment after a seven–day trial. According to evidence presented at trial, between September and October 2018, Duncan recruited a 17-year-old girl to engage in prostitution in Oakland and San Francisco. He frequently drove the victim to areas known for prostitution activity where he caused her to have sex with strangers for money, which he kept. Duncan also posted online prostitution ads depicting the victim and harbored the victim at an Oakland motel so she could have sex with sex buyers. Duncan was on parole for assault with a semiautomatic firearm at the time.
In late September 2018, law enforcement officers recovered the victim and sent the victim to a children’s group home in Woodland. However, a few weeks later, Duncan, working with his co-conspirator, Eva Christian, 25, extracted the victim from the children’s group home in the middle of the night. The next day, Duncan put the victim back to work engaging in prostitution on the streets of Oakland. Duncan kept his child victim at his Sacramento apartment thereafter. He also managed his trafficking of her from this location, using his cellphone and a GPS tracking application on that phone to monitor and direct the victim’s prostitution activity in Oakland.
On May 31, 2019, Duncan was arrested, but immediately broke free and fled through Midtown Sacramento until he was finally apprehended again several blocks away from the scene of his initial arrest. He fought the arresting officer so violently that the officer required surgery for an injury he sustained while arresting Duncan.
Evidence at trial also showed that Duncan sent a letter to Christian—his co-defendant—in which he urged her to lie about Duncan’s knowledge that his trafficking victim was 17 years old. Duncan’s letter encouraged his co‑defendant to claim that she could not remember various details about Duncan’s trafficking of the child victim.
This case was the product of an investigation by the Federal Bureau of Investigation, the California Department of Justice’s Special Operations Unit, the Sacramento County Sheriff’s Office, the Woodland Police Department, and the Oakland Police Department with assistance from the California Department of Corrections and Rehabilitation. Assistant U.S. Attorney Sam Stefanki prosecuted the case.
On April 8, 2021, co-defendant Christian pleaded guilty to one count of misprision of a felony. She is scheduled to be sentenced on Sept. 19, 2022.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Bakersfield Man Indicted for Laser Strikes of Sheriff’s HelicopterRead the Press Release
FRESNO, Calif. — Alejandro Galvan-Silvestre, 23, of Bakersfield, was arrested today, charged with knowingly aiming the beam of a laser pointer at Air One, a Kern County Sheriff’s Office helicopter, U.S. Attorney Phillip A. Talbert announced.
A federal grand jury returned the indictment on Aug. 25, 2022. It was unsealed today after Galvan-Silvestre’s arrest. According to court documents, on Sept. 5, 2021, Galvan-Silvestre aimed the beam of a laser pointer at Air One.
This case is the product of an investigation by the Federal Bureau of Investigation, the Kern County Sheriff’s Office, and the Bakersfield Police Department. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
If convicted, Galvan-Silvestre faces a maximum statutory penalty of five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Marysville Man Charged with Trafficking Methamphetamine and Heroin in Sacramento, Sutter, and Placer CountiesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a seven-count indictment today against Sanit Khamthong, 41, of Marysville, charging him with conspiracy to distribute and possess with intent to distribute heroin and methamphetamine, three counts of distribution of methamphetamine, two counts of distribution of heroin, and possession with intent to distribute heroin, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between May and August 2022, Khamthong conspired with others to acquire methamphetamine and heroin and distribute it in Sacramento, Sutter, and Placer Counties. On Aug. 29, 2022, a law enforcement officer conducted a traffic stop of a vehicle that Khamthong was driving. The officer subsequently located a gallon-size bag of heroin in Khamthong’s pants.
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, Khamthong faces a maximum statutory penalty of 40 years in prison and a $5 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.
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.
Bakersfield Man Indicted for Illegal Possession of a Firearm at a Bakersfield MotelRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Derrick Dewayne Gage, 41, of Bakersfield, charging him with being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on April 23, 2022, law enforcement officers were on patrol at the Plaza Motel on Union Avenue in Bakersfield when they saw Gage inside a room with a firearm and what appeared to be narcotics. The officers seized a loaded Sarsilmaz 9 mm semi-automatic handgun. Gage is prohibited from possessing firearms because he has prior felony convictions for domestic violence, participation in a criminal street gang, and sales of cocaine.
This case is the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Bakersfield Police Department. Assistant U.S. Attorney Laurel J. Montoya is prosecuting the case.
If convicted, Gage faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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.
Bakersfield Man Pleads Guilty to Unlawfully Possessing FirearmRead the Press Release
Katterin McCray, 25, of Bakersfield, pleaded guilty today to being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Jan. 15, 2022, police officers in Bakersfield attempted to stop a vehicle in which McCray was the passenger for traffic infractions. The vehicle sped off and McCray discarded from the vehicle a Glock, Model 22, 40 caliber handgun with a high-capacity magazine and ammunition near the intersection of Cottonwood Road and Casa Loma Drive in Bakersfield. Because of his criminal record, including a 2017 conviction for being a felon in possession of a firearm and a 2018 conviction for receiving known stolen property, McCray may not lawfully possess firearms or ammunition.
This case is the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Bakersfield Police Department. Assistant U.S. Attorney Christopher D. Baker is prosecuting the case.
McCray is scheduled to be sentenced by U.S. District Judge Ana de Alba on Dec. 12, 2022. McCray 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.
Los Angeles Resident Sentenced to Prison for Attempting to Obstruct an Official Proceeding Dealing with a Scheme to Issue Commercial Driver’s Licenses to Unqualified DriversRead the Press Release
SACRAMENTO, Calif. — Jaswinder Singh, 60, of Los Angeles, was sentenced today to serve a nine-month prison sentence and to pay a $7,500 fine for attempting to obstruct an official proceeding, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Singh contacted a trial witness in a pending federal criminal case and instructed the witness to lie to law enforcement as a trial date approached. The witness knew that Singh and others had participated in a conspiracy to bribe a DMV official to fraudulently obtain California commercial driver’s licenses (CDLs) for numerous drivers who did not want to take (or could not pass) the necessary tests. Nevertheless, Singh instructed the witness to falsely tell law enforcement the witness knew nothing, not to mention anything about Singh or Singh’s participation in the conspiracy, and not to name any names. Singh also told the witness not to talk on the phone and that it was very important for them to make sure their stories were similar to one another. On another occasion, Singh himself provided false statements about his knowledge and his role to law enforcement while the conspiracy was under investigation.
This case was the product of an investigation by the California Department of Motor Vehicles, Office of Internal Affairs, Homeland Security Investigations, and the Federal Bureau of Investigation. Assistant U.S. Attorneys Rosanne L. Rust and Christopher Hales prosecuted the case.
High Speed Chase Results in Firearm Charge for Stockton ManRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today against Rothel Leandre Satchell, 32, of Stockton, charging him with being a felon in possession of ammunition, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on July 15, 2022, an Audi sedan made an illegal U-turn, sped off, and led law enforcement officers on a high-speed chase through a residential neighborhood. The vehicle ultimately was unable to navigate a turn and crashed into a row of parked cars. The driver, later identified as Satchell, climbed out of the passenger side door and fled on foot. Once apprehended, officers located a privately manufactured firearm (commonly known as a “ghost gun”) on Satchell’s person and a high-capacity magazine containing 27 rounds in the vehicle. Satchell is prohibited from possessing firearms or ammunition because he was previously convicted of two felonies, including a 2021 conviction for being a felon in possession of ammunition.
This case is the product of an investigation by the Stockton Police Department, the San Joaquin County District Attorney’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Alstyn Bennett is prosecuting the case.
If convicted, Satchell faces a maximum statutory penalty of 15 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Central Valley Corporate Insider and Small Business Owner Indicted for Stealing Nearly $5 Million in Livestock Feed IngredientsRead the Press Release
FRESNO, Calif. — A federal grand jury returned a multiple-count indictment today against Richard Best, 68, of Fresno, and Shawn Sawa, 46, formerly of Clovis, charging them with conspiracy and wire fraud.
According to court documents, from 2015 through 2017, Best and Sawa stole $4.8 million worth of canola used in cow feed from international food processors. They then sold the canola for a windfall.
Best and Sawa carried out the scheme through Best’s now defunct train-to-truck transloading company, Richard Best Transfer Inc. (RBT). A transloading company transfers commodities from one mode of transportation to another mode. The victims sent hundreds of thousands of tons of their canola and other commodities to RBT for delivery to their customers. Sawa was the manager of one of the victim’s branch offices in Fresno and had a close relationship with Best.
Best and Sawa sold the stolen canola through an acquaintance in Texas who used to work in the livestock feed industry. The acquaintance sold the stolen canola to farms and dairies, and distributed the proceeds according to Best’s instructions. This included wire transfers to RBT, Best, and Sawa’s bank accounts. The account that Sawa used was opened in his spouse’s name to try to conceal the scheme.
Throughout the scheme, Best and Sawa caused RBT to send fraudulent inventory reports to the victims representing that RBT had certain amounts of their canola in-stock when, in fact, RBT had significantly lesser amounts. Whenever the victims began to make inquiries about missing canola, Best and Sawa told them it had been destroyed by bad weather when it had actually been stolen.
Best and Sawa used the proceeds from the scheme to cover RBT’s operating expenses, purchase luxury homes and multiple vehicles, take trips, and hire private karate teachers, among other expenses.
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, Best and Sawa face maximum statutory penalties of 20 years in prison and a $250,000 fine for each of the conspiracy and wire fraud counts. 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.
Bakersfield Man Indicted for Illegally Possessing a FirearmRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Billy Reo Howard, 51, of Bakersfield, charging him with being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on June 3, 2022, law enforcement officers on routine patrol observed Howard driving a vehicle with expired tags on Garces Highway. When the officers attempted to conduct an enforcement stop, Howard ran a stop sign, drove at a high rate of speed, and failed to yield. As the officers continued behind the vehicle, they saw a firearm being thrown from the driver’s side window. The officers located the firearm, a loaded Bersa .380‑caliber pistol. Howard ran from the vehicle and was eventually located hiding on a nearby property. Howard has several felony convictions for evading a peace officer, possessing a controlled substance for sale, carjacking, and being a felon in possession of ammunition.
This case is the product of an investigation by the Federal Bureau of Investigation and the Delano Police Department. Assistant U.S. Attorney Laurel J. Montoya is prosecuting the case.
If convicted, Howard faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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.
Arrests Made for Transportation of Fresno County Teen to School in MissouriRead the Press Release
FRESNO, Calif. — A parent and a onetime dean of a boarding school for troubled youth have been arrested for a scheme that took a teen against his will and transported him from California to Missouri, U.S. Attorney Phillip A. Talbert announced.
A federal indictment was unsealed Tuesday charging Shana Gaviola, 35, formerly of Clovis, and Julio Sandoval, 41, of Piedmont, Missouri, with violating a protective order that had been issued at the request of Gaviola’s son in July 2021. Sandoval was formerly the dean of students at a boarding school in Missouri. He was also the founder of an agency that transported minors to the boarding school.
According to court documents, in 2020, Gaviola’s son began living apart from Gaviola with another family. He petitioned for emancipation from Gaviola and obtained a domestic violence protection order against Gaviola from the Fresno County Superior Court. The order prohibited Gaviola from harassing, striking, threatening, assaulting, hitting, following, stalking, molesting, disturbing the peace, keeping under surveillance, and blocking the movements of her son, and contacting him in any way, including directly or indirectly, and from denying his use and possession of his phone.
Despite the protection order, Gaviola and Sandoval made plans for Gaviola’s son to be forcibly transported from California to Missouri. On Aug. 21, 2021, individuals acting on behalf of Gaviola and Sandoval found the minor at a business in Fresno, handcuffed him, and forced him into a car. He remained in handcuffs for over 24 hours while they drove to Stockton, Missouri. He was then held at the boarding school until his father was able to free him.
This case is the product of an investigation by the Federal Bureau of Investigation, the Fresno Police Department, and the Clovis Police Department. Assistant U.S. Attorney Michael G. Tierney is prosecuting the case. Assistance was provided by the U.S. Attorney’s Offices for the Western District of Missouri and the Eastern District of Missouri.
If convicted, each defendant faces a maximum statutory penalty of five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Sacramento Felon and Fugitive in Four State Firearms Cases, Sentenced to Almost 6 Years in Prison for Illegal Gun PossessionRead the Press Release
SACRAMENTO, Calif. — Marcus Lawrence Weber, 26, of Sacramento, was sentenced today by U.S. District Judge John A. Mendez to five years and 11 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 16, 2022, Weber had four pending felony arrest warrants when law enforcement officers located him hiding in Roseville. When officers tried to pull Weber over to arrest him, he led them on a car chase through a populated apartment complex, speeding past multiple vehicles and people. The police eventually surrounded Weber in a cul-de-sac, where he abandoned his car and continued his flight on foot, wearing a black ski mask. He ran past a family with two small children, dropped the firearm, picked it back up, and eventually tossed the firearm in thick brush before being arrested. The firearm, a Ruger 5.7, was loaded with a 20-round extended magazine with one round in the chamber.
Weber possessed that firearm while on the run from a spree of four firearm related felony offenses that he committed within a five-month period. Weber began this crime spree after being only a month and a half on probation from a prior felony drug trafficking offense that involved the discharge of a firearm into his neighbor's apartment.
This case was the product of an investigation by the Sacramento Police Department, the Sacramento County District Attorney’s Office, the Placer County Sheriff’s Office, and the Placer County District Attorney’s Office, the Fresno Police Department, and the Fresno County District Attorney’s Office, with the assistance of the Federal Bureau of Investigation’s Safe Streets Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Adrian T. Kinsella 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.
Professional Rock Climber Arrested for Yosemite National Park Sexual AssaultsRead the Press Release
FRESNO, Calif. — A three-count indictment was unsealed today following the arrest of Charles Barrett, 38, who is charged with aggravated sexual abuse and abusive sexual contact, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in August 2016, Barrett forcibly committed sexual assault on two occasions and committed abusive sexual contact on a third.
If you have information related to this case or believe you may be a victim, please submit a tip online, call 888-653-0009, or email [email protected].
This case is the product of an investigation by the National Park Service. Assistant U.S. Attorneys Kimberly Sanchez, Michael Tierney, and Jessica Massey are prosecuting the case.
If convicted, Barrett faces a maximum statutory penalty of life in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Stockton Woman Sentenced to More Than 17 Years in Prison for Sex Trafficking ChildrenRead the Press Release
SACRAMENTO, Calif. — Dawniel Santangelo, 44, of Stockton, was sentenced today by U.S. District Judge Kimberly J. Mueller to 17 years and seven months in prison for conspiracy to engage in sex trafficking of a child, three counts of sex trafficking a child, and transporting a minor with intent to engage in criminal sexual activity, U.S. Attorney Phillip A. Talbert announced.
According to evidence presented at trial, between September 2018 and May 2019, Santangelo recruited 15-, 16-, and 17-year-old girls to engage in prostitution throughout Northern California and Southern Oregon. Santangelo enticed the girls to perform sex acts for strangers by providing alcohol, drugs, and creating a party atmosphere in motels in Stockton and Salinas. She then posted online prostitution ads depicting the victims and brought the victims to truck stops and motels to have sex with men for money, which she and co-defendant Lucious James Roy, 34, of Stockton, took from the victims. After the victims began engaging in commercial sex acts, Santangelo urged them to continue, reassuring them when they felt insecure.
In early May 2019, Santangelo and Roy recruited a 15-year-old runaway from the Modesto area to engage in prostitution. They drove the victim from Merced to Medford, Oregon, Santangelo’s former hometown, where Santangelo advertised on the internet and harbored the victim in a motel room that she rented. After a few days in Oregon, the victim called her family for help, and police officers subsequently found the victim in Santangelo’s motel room along with Santangelo and Roy.
“Santangelo’s conduct in this case was egregious. She played an essential part in the conspiracy recruiting the girls with false promises of freedom and fun. Once she reeled them in, she quickly put them to work, exploiting three children over hundreds of miles for over nine months,” said U.S. Attorney Talbert. “Today’s sentence reflects the seriousness of the crime and should deter others from engaging in such conduct. The U.S. Attorney’s Office will relentlessly target and prosecute sexual predators who victimize vulnerable children.”
This case was the product of an investigation by the Federal Bureau of Investigation, the Stockton Police Department, the San Joaquin District Attorney’s Office, the Medford (Oregon) Police Department, and the Jackson County (Oregon) District Attorney’s Office. Assistant U.S. Attorney Cameron L. Desmond prosecuted the case.
On April 12, 2021, Roy was sentenced by Judge Mueller to 17 years and seven months in prison after pleading guilty to conspiracy to engage in sex trafficking of a child.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Mortgage Loan Officer and Real Estate Agents Charged in Mortgage Fraud Scheme in Central ValleyRead the Press Release
FRESNO, Calif. — A federal grand jury returned an indictment against German Antonio Lopez-Velasquez, 55, of Modesto; Marko Antonio Lopez, 27, of Modesto; and Lisa Marie Santos, 48, of Long Beach, charging them with bank fraud and conspiracy to commit bank fraud, U.S. Attorney Phillip A. Talbert announced.
Lopez-Velasquez was also charged with witness tampering. He is alleged to have attempted to persuade an individual to make false statements to law enforcement officers regarding a mortgage loan under investigation.
According to court documents, Lopez-Velasquez and Lopez, who were both real estate agents, worked with Santos, a mortgage loan officer, to obtain fraudulent mortgage loans for properties based in Stanislaus County, San Joaquin County, Santa Clara County, and elsewhere. The three utilized false documents, fictional companies, and fictional individuals to obtain mortgage loans for borrowers who were not qualified to receive loans. In total, the defendants caused lenders to issue at least 30 loans based on false information with a total principal loan balance exceeding $10 million.
This case is the product of an investigation by the Federal Housing Finance Agency – Office of Inspector General (FHFA-OIG), the U.S. Department of Housing and Urban Development – Office of Inspector General (HUD-OIG), and the U.S. Postal Inspection Service (USPIS). Assistant U.S. Attorney Jeffrey A. Spivak is prosecuting the case.
“The FHFA-OIG is committed to holding accountable those who waste, steal, or abuse the resources of the Government-Sponsored Enterprises regulated by FHFA, which the defendants have been charged with defrauding,” said Jay Johnson, Special Agent in Charge, FHFA-OIG, Western Regional Office. “We are proud to have worked with the U.S. Attorney’s Office and our law enforcement partners on this case and to demonstrate, once again, that FHFA-OIG will investigate and hold accountable those who seek to victimize the Government-Sponsored Enterprises supervised and regulated by FHFA.”
“This case demonstrates HUD OIG’s commitment to pursuing and bringing to justice those who put Federal programs, such as the FHA Mortgage Insurance Fund at risk for their own enrichment,” said Special Agent in Charge Mark T. Kaminsky with HUD OIG Office of Investigation. “HUD OIG remains committed to working with our law enforcement partners and the US Attorney’s Office, Eastern District of California to investigate and hold accountable those who perpetrate mortgage fraud in central California.”
If convicted, the defendants face a maximum statutory penalty of 30 years in prison and a $1 million fine for bank fraud and conspiracy to commit bank fraud. If convicted, Lopez‑Velasquez faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for witness tampering. 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.
Kern County Man Sentenced to 10 Years in Prison for Illegally Cultivating Marijuana in the Sequoia National ForestRead the Press Release
FRESNO, Calif. — Marino Cruz Diaz, 24, of Taft, was sentenced today by U.S. District Judge Jennifer L. Thurston to 10 years in prison for illegally cultivating marijuana in a national forest and ordered to pay over $13,000 in restitution for damage to the land, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in July 2019, law enforcement officers located a clandestine marijuana grow site in Sequoia National Forest in Fresno County. On Aug. 2, 2019, officers hiked into the grow site, where they found and arrested Marino Cruz Diaz and Moreno Florez. The grow contained over 2,400 marijuana plants, chemicals, fertilizers, chicken wire, irrigation lines, and man-made dams and water reservoirs that diverted water from nearby creeks. On May 27, 2022, Cruz Diaz pleaded guilty.
On Aug. 12, 2022, Moreno Florez, was sentenced to 12 years in prison for illegally cultivating marijuana in a national forest and possessing a firearm in furtherance of that offense.
This case was the result of an investigation by the U.S. Forest Service. Assistant U.S. Attorney Justin J. Gilio prosecuted the case.
San Rafael Man Visiting Yosemite Charged with Domestic ViolenceRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Stefan Niels Weiste Kirkeby, 59, of San Rafael, charging him with domestic violence within the special maritime and territorial jurisdiction of the United States, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Aug. 4, 2022, Kirkeby and his wife got into a verbal confrontation that resulted in park visitors having to intervene due to the yelling as well as the threats of harm being made by Kirkeby. The victim reported she was forcibly grabbed by her wrist and both fell to the ground. Kirkeby was threatening to kill her then kill himself during the altercation. The victim sustained bruising, pain to her wrist, and scratches.
This case is the product of an investigation by the National Park Service. Assistant U.S. Attorney Laurel J. Montoya is prosecuting the case.
If you have information related to this case, please submit a tip online, call 888-653-0009, or email [email protected].
If convicted, Kirkeby faces a maximum statutory penalty of five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Rocklin Business Owner Sentenced to 10 Years in Prison for Embezzling from His Employer and, While Awaiting Sentencing, Defrauding BanksRead the Press Release
SACRAMENTO, Calif. — Kevin Lee Co, 51, of Rocklin, was sentenced today to 10 years in prison for wire fraud, money laundering and submitting false statements to a financial institution, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Dec. 8, 2016, Co pleaded guilty to wire fraud and money laundering for embezzling approximately $4.8 million from his former employer, Holt of California. Co used the money he embezzled to purchase, among other things, luxury cars, home furniture, NFL football and NBA basketball season tickets, and approximately $1 million in purchases for the online video game “Game of War.”
While out of custody and awaiting sentencing on those charges, Co defrauded federally insured financial institutions by submitting false statements to qualify for loans that were part of the Paycheck Protection Program.
Co was the sole owner of Apollo HP Inc., a Rocklin-based company that sells generators, windows, and residential solar panels. Between April 2020 and January 2021, Co applied for and obtained Paycheck Protection Program loans for his company. The loan applications required him to disclose his pending criminal charges and guilty pleas. However, in his loan applications, Co concealed the fact that he had pleaded guilty to wire fraud and money laundering charges in order to cause two banks to approve loans for his company. As a result of Co’s false statements, financial institutions suffered a total loss of $530,552.
This case was the product of an investigation by the IRS Criminal Investigation, the Federal Bureau of Investigation, and the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection. Assistant U.S. Attorney Nicholas M. Fogg prosecuted the case.
Former Merced Resident Sentenced to 60 Years in Prison for Sexual Exploitation of MinorsRead the Press Release
FRESNO, Calif. — Matthew Sheffield, 41, of Merced, was sentenced today to 60 years in prison to be followed by a lifetime of supervised release for his two convictions for sexual exploitation of a minor, U.S. Attorney Phillip A. Talbert announced.
In addition, Sheffield was ordered to pay $100,200 in special assessments and $25,000 in restitution to each of two victims.
According to court documents, law enforcement agents first encountered sexually explicit material in February 2018, and through investigative work and assistance from the National Center for Missing & Exploited Children, ultimately identified Sheffield as the person responsible for creating and distributing the material on the internet. During the execution of a search warrant at Sheffield’s house, agents recognized unique objects that are depicted in the images he created. On Aug. 29, 2019, Sheffield was indicted and on March 21, 2022, he pleaded guilty to two counts of sexual exploitation of children.
This case was the product of an investigation by the Federal Bureau of Investigation office in Fresno and the FBI Child Exploitation Operational Unit in Linthicum, Maryland. Assistant U.S. Attorney David Gappa and Child Exploitation and Obscenity Section Trial Attorney Nadia Prinz prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Indictment Unsealed Charging Former Member of Congress with Multiple Fraud Schemes and Campaign Contribution FraudRead the Press Release
FRESNO, Calif. — A 28-count indictment was unsealed today, charging Terrance John “TJ” Cox, 59, of Fresno, with 15 counts of wire fraud, 11 counts of money laundering, one count of financial institution fraud, and one count of campaign contribution fraud, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Cox perpetrated multiple fraud schemes targeting companies he was affiliated with and their clients and vendors. Cox created unauthorized off-the-books bank accounts and diverted client and company money into those accounts through false representations, pretenses and promises. From 2013 to 2018, across two different fraud schemes, Cox illicitly obtained over $1.7 million in diverted client payments and company loans and investments he solicited and then stole.
In addition, Cox received mortgage loan funds from a lender for a property purchase by submitting multiple false representations to the lender, including fabricated bank statements and false statements that Cox intended to live in the property as his primary residence. In fact, he intended to and did buy the property to rent it to someone else.
Cox also fraudulently obtained a $1.5 million construction loan to develop the recreation area in Fresno known as Granite Park. Cox and his business partner’s nonprofit could not qualify for the construction loan without a financially viable party guaranteeing the loan. Cox falsely represented that one of his affiliated companies would guarantee the loan, and submitted a fabricated board resolution which falsely stated that at a meeting on a given date all company owners agreed to guarantee the Granite Park loan. No meeting took place, and the other owners did not agree to back the loan. The loan later went into default causing a loss of more than $1.28 million.
According to the indictment, when Cox was a candidate for the U.S. House of Representatives in the 2018 election, he perpetrated a scheme to fund and reimburse family members and associates for donations to his campaign. Cox arranged for over $25,000 in illegal straw or conduit donations to his campaign in 2017.
This case is the product of an investigation by the Federal Bureau of Investigation and the IRS‑Criminal Investigation. Assistant U.S. Attorneys Henry Z. Carbajal III and Jeffrey A. Spivak are prosecuting the case.
If convicted, Cox faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for wire fraud and money laundering. He faces a maximum statutory penalty of 30 years in prison and a $1 million fine for wire fraud affecting a financial institution and financial institution fraud. He faces a maximum statutory penalty of five years in prison and a $250,000 fine for campaign contribution fraud. 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.
Stockton Doctor and Medical Practice Agree to Pay Nearly $2 Million to Resolve Allegations of Health Care FraudRead the Press Release
SACRAMENTO, Calif. — Azizulah “Aziz” Kamali and his medical corporation, Aziz Kamali, M.D. Inc., have agreed to pay $1,963,953 to resolve allegations that they violated the False Claims Act by submitting millions of dollars of false claims to Medicare for surgically implanted neurostimulators and paying kickbacks to sales marketers, U.S. Attorney Phillip A. Talbert announced today.
According to the settlement, Dr. Kamali and his medical corporation admitted that they submitted claims to Medicare for surgically implanted neurostimulator devices even though they did not perform surgery or implant neurostimulators. Dr. Kamali and Kamali Inc. admitted that they instead taped a disposable electroacupuncture device called “Stivax” to their patients’ ears. Stivax devices do not require surgical implantation and are not reimbursable by Medicare. The government alleges that this conduct violated the False Claims Act.
“The defendants falsely claimed that they conducted expensive and invasive surgical procedures to dishonestly obtain millions of dollars from Medicare,” said U.S. Attorney Talbert. “Working with our partners at the Department of Health and Human Services, we identified a substantial number of false claims that enabled our Office to make a significant recovery of taxpayer dollars.”
“This provider egregiously exploited the trust of his patients for illegitimate financial gain,” said Steven J. Ryan, Special Agent in Charge with the HHS-OIG. “HHS-OIG will not hesitate to investigate and thwart any attempts at defrauding federal health care programs.”
Dr. Kamali and his medical corporation also admitted that they paid a marketing company a percentage of the reimbursements they received from Medicare for billing implantable neurostimulators, in return for the marketing company arranging for and recommending that patients order Stivax from them. The United States alleges that this conduct violated the Anti‑Kickback Statute and the False Claims Act.
In addition to paying the civil settlement, Dr. Kamali and Kamali Inc. have agreed to enter into an Integrity Agreement with the Department of Health and Human Services Office of Inspector General (HHS-OIG). The Integrity Agreement requires that Dr. Kamali and Kamali Inc. implement specific compliance measures, including training on applicable health care fraud laws and contracting with an Independent Review Organization that will conduct third-party audits of the medical necessity of their Medicare claims.
HHS-OIG conducted the investigation. Assistant U.S. Attorney Matthew R. Belz handled the case for the United States.