Eastern District of California
Press releases recorded for this federal judicial district.
Woodland Man Sentenced to 11 Years in Prison for Drug Offenses Uncovered by Operation Silent Night, an Effort to Fight Coordinated Criminal Activity in Northern CaliforniaRead the Press Release
SACRAMENTO, Calif. — Victor Magana, 28, of Woodland, was sentenced today to 11 years and three months in prison for conspiracy to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Magana was 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. 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.
On Aug. 5, 2021, Magana pleaded guilty to the conspiracy and admitted that on five different occasions in 2017, he had sold methamphetamine to a confidential source in various places in Woodland.
Operation Silent Night is the product of an investigation by the FBI, California Department of Corrections and Rehabilitation (CDCR), Yolo County District Attorney’s Office, Woodland Police Department, and the California Highway Patrol. The following agencies provided substantial assistance: Colusa County Sheriff’s Office, Sacramento Police Department, Sacramento County Sheriff’s Office, West Sacramento Police Department, Yolo County Sheriff’s Office, Davis Police Department, Yuba City Police Department, Yuba County Sheriff’s Office, Sutter County Sheriff’s Office, Solano County Sheriff’s Office, Vacaville Police Department, the Correctional Intelligence Task Force (CITF), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the U.S. Postal Inspection Service, and the Drug Enforcement Administration (DEA). Assistant U.S. Attorney Justin Lee is prosecuting the cases.
The other defendants that have been convicted are listed below:
• Aldo Arellano, 28, of Marysville, was convicted of distribution of methamphetamine and sentenced 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 July 21, 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. He was sentenced to 15 years in prison.
• Mike Do, 40, of Sacramento, was convicted of being a felon in possession of a firearm. He is scheduled to be sentenced on July 21, 2022.
• Milton Escobedo, 33, of Woodland, was convicted of distribution of cocaine and sentenced to two years and nine months in prison.
• Rachel Felix, 43, of Woodland, was convicted of distribution of methamphetamine and was sentenced to seven years in prison.
• Ashley Habash, 32, of Marysville, was convicted of conspiracy to possess with intent to distribute and to distribute methamphetamine and heroin. She is scheduled to be sentenced on June 2, 2022.
• Jose Heredia, 39, of Los Banos, was convicted of conspiracy to manufacture marijuana and sentenced to five years in prison.
• Edgar Jimenez, 23, of Sacramento, was convicted of using a cellphone to facilitate a drug trafficking offense and sentenced to three years in prison.
• Stefanie Lavan, 69, of Woodland, was convicted of possession with intent to distribute methamphetamine and sentenced to two years in prison.
• John Lemus, 35, of Woodland, was convicted of being a felon in possession of a firearm and sentenced to three years and 10 months in prison.
• Jose Madrigal-Vega, 37, Woodland, was convicted of conspiracy to possess with intent to distribute and to distribute controlled substances and sentenced to eight years in prison.
• James Masterson, 28, of Newcastle, Pennsylvania, was convicted of using a cellphone to facilitate a drug trafficking offense and 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 sentenced to five years of supervised release.
• Reginald Pajimola, 28, of Marysville, was convicted of using a cellphone to facilitate a drug trafficking offense and sentenced to two years of probation.
• Mercedez Silva-Sims, 26, of Colusa, was convicted of conspiracy to possess with intent to distribute and to distribute methamphetamine and heroin and 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 sentenced to 10 years in prison.
• Erica Umbay, 47, of Woodland, was convicted of being a felon in possession of a firearm and 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 sentenced to 10 years in prison.
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 being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Sacramento Woman Indicted for Bank Fraud, Identity Theft, and Possession of Stolen MailRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a five-count indictment today against Ashley Leyba, 32, of Sacramento, charging her with bank fraud, aggravated identity theft, and possession of stolen mail, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Leyba executed a scheme to defraud a financial institution. She obtained identity information, identification documents, cards, and checks belonging to other people without their authorization. Leyba obtained at least some of these items from stolen mail. She used stolen identification to cash altered stolen checks to obtain money and other things of value from a credit union. On March 22, 2022, Leyba was found to be in possession of stolen mail.
This case is the product of an investigation by the U.S. Postal Inspection Service and the Sacramento Police Department. Assistant U.S. Attorney Elliot C. Wong is prosecuting the case.
If convicted, Leyba faces a maximum statutory penalty of 30 years in prison and a $1 million fine for each count of bank fraud, a mandatory two-year sentence on each count of aggravated identity theft, and a maximum statutory penalty of five years in prison and a $250,000 fine for the count of possession of stolen mail. 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 Grand Jury Indicts Riverside County Man and Woman for Fentanyl Distribution and Money Laundering ConspiracyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Holly Adams, 31, and Devlin Hosner, 33, of Indio, charging them with conspiracy to distribute and possess with intent to distribute fentanyl and methamphetamine, and with conspiracy to launder money, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Adams and Hosner operated the vendor accounts “igogrraawwr” and “its4real” on the dark web marketplaces ToRReZ and Dark0de, respectively, through which they sold tens of thousands of counterfeit oxycodone pills containing fentanyl in exchange for cryptocurrency. Adams and Hosner shipped these fentanyl pills to buyers throughout the United States, using the U.S. Postal Service, UPS, and other means of delivery.
Adams and Hosner operated vendor accounts on the dark web from at least May 2021 through March 2022. In the course of their conspiracy, Adams and Hosner finalized over 1,100 transactions of narcotics and other contraband and received more than $800,000 in cryptocurrency. Federal law enforcement officers executed a search warrant in March at a hotel in Riverside County where Adams and Hosner were residing, and recovered more than 10,000 counterfeit oxycodone pills as well as approximately 60 grams of methamphetamine.
This case is the product of an investigation by the Northern California Illicit Digital Economy (NCIDE) Task Force, which includes Homeland Security Investigations, the Federal Bureau of Investigation, the U.S. Postal Inspection Service, the U.S. Postal Service Office of Inspector General, and the Internal Revenue Service - Criminal Investigation. The NCIDE Task Force is a federal task force focused on targeting all forms of illicit dark web and cryptocurrency activity in the Eastern District of California and beyond. Assistant U.S. Attorney Sam Stefanki is prosecuting the case.
If convicted, Adams and Hosner each face a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Rocklin Business Owner Pleads Guilty to Defrauding Banks While Awaiting Sentencing on Other Fraud and Money Laundering ChargesRead the Press Release
SACRAMENTO, Calif. — Kevin Lee Co, 51, of Rocklin, pleaded guilty today to 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, and NFL football and NBA basketball season tickets. 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 Federal Reserve Board and Consumer Financial Protection Bureau – Office of Inspector General. Assistant U.S. Attorney Brian A. Fogerty is prosecuting the case.
Co is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on Aug. 18, 2022. On the false statements charge, Co faces a maximum statutory penalty of 30 years in prison and a $1 million fine. Because the offense was committed while on release pending sentencing, the court may impose an additional consecutive sentence of up to 10 years in prison. Co also faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for the wire fraud charge. For the money laundering charge, Co faces a maximum statutory penalty of 20 years in prison and a fine of up to $500,000, or twice the value of the property involved in the money laundering transactions. 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 Felon Sentenced to over 6 Years in Prison for Possession of a Firearm while on Federal Supervised ReleaseRead the Press Release
SACRAMENTO, Calif. — Johnathan Shane Blakeley, 28, of Vallejo, was sentenced today by U.S. District Judge John A. Mendez to a total of six years and eight months in prison for being a felon in possession of a firearm and for committing this offense while on federal supervised release, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Sept. 20, 2019, law enforcement officers attempted to stop Blakeley for a traffic violation, but Blakeley refused to yield and led police on a high-speed chase through Vallejo. After Blakeley crashed his car on Interstate 80, he got out of his car and ran through several lanes of traffic. He tried to get into the passenger seat of a car that stopped. After police apprehended Blakeley, they found a Glock 9 mm pistol with a high-capacity magazine in his car. Blakeley cannot lawfully possess firearms or ammunition because he has previously been convicted of three felony offenses. Blakeley was on federal supervised release when he committed this offense. He had just been released from federal prison less than 30 days prior, after having served a 30-month sentence for possessing a firearm as a felon.
This case was the product of an investigation by the Vallejo Police Department with assistance from the FBI’s Solano County Violent Crimes Task Force and the Solano County District Attorney’s Office. Assistant U.S. Attorney Adrian T. Kinsella prosecuted the case.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Leader of Nevada City-Based Mortgage Fraud Scheme Sentenced to 15 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — James Christopher Castle, 57, formerly of Petaluma, was sentenced today to 15 years in prison for a bank fraud scheme that sought to fraudulently eliminate home mortgages and then profit on the subsequent home sales, U.S. Attorney Phillip A. Talbert announced.
On Aug. 2, 2021, a jury found Castle guilty of 35 counts of bank fraud. According to evidence at trial, in May 2020, Castle was extradited to the United States from Australia. Castle had fled to New Zealand and then Australia in 2011 when it became clear that his scheme was unraveling. After a three-year extradition process, Castle was transported back to the United States by the U.S. Marshals Service to stand trial in the United States.
Between April 22, 2010, and Nov. 18, 2011, Castle was the leader of a conspiracy that ran a “mortgage elimination program” that purported to help distressed homeowners avoid foreclosure. The conspirators fraudulently altered the chain of title on residential properties, sold the properties, and received the sales proceeds.
As a requirement for participation in the “mortgage elimination program,” the conspirators enrolled homeowners as members in a Nevada City-based church named Shon-te-East-a, Walks With Spirit, or its successor entity Pillow Foundation. The conspirators told the homeowners that these entities would offer protection against the banks.
Castle directed other co-conspirators in all aspects of the mortgage elimination program, including recruiting homeowners into the scheme, marshaling the necessary recorded documents, and guiding the homes through sale. Once the homeowner enrolled with Shon-te-East-a or Pillow Foundation, Castle would cause a sham deed of trust to be created and recorded, giving the impression that the homeowner had refinanced the mortgage loan with a new lender. In reality, the new lender was a fake entity controlled by the conspirators, and the homeowner owed no money to the purported new lender.
The next step in the process was also a recorded document. The conspirators caused a fake deed of reconveyance to be recorded, giving the appearance that the true mortgage loan had been discharged and that the true lienholder no longer had a security interest in the home.
With title appearing to be clear, the conspirators caused the sale of the home and split the proceeds between the co-conspirators and the homeowners.
In total, 37 properties were sold through the Shon-te-East-a conspiracy. The conspirators recorded fraudulent documents on an additional approximately 100 homes but were unable to sell these before the scheme unraveled.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Audrey B. Hemesath is prosecuting the case.
Three other co-defendants have previously entered guilty pleas. On April 21, 2017, Remus A. Kirkpatrick, 65, formerly of Oceanside, pleaded guilty to one count of falsely making writings of lending associations and was sentenced to six years in prison. On May 26, 2017, Michael Romano, 75, of Benicia, pleaded guilty to conspiracy and was sentenced to three years in prison. On July 14, 2017, Laura Pezzi, of Roseville, pleaded guilty to falsely making writings of lending associations and was sentenced to time served.
In related cases, on Sept. 4, 2015, Tisha Trites and Todd Smith, both of San Diego, pleaded guilty to related charges. Trites is scheduled to be sentenced on June 14, 2022, and Smith was sentenced to two years in prison.
Two other co-defendants, George B. Larsen, 60, of San Rafael, and Larry Todt, 70, of Malibu, were convicted of conspiracy and bank fraud following a jury trial in December 2017. Larsen was sentenced to 10 years in prison, and Todt was sentenced to 7 years and three months in prison.
Co-defendant John Michael DiChiara passed away on Aug. 24, 2019, while awaiting trial.
Sacramento Man Pleads Guilty to COVID-19 Relief Fraud, Embezzlement, and Unemployment FraudRead the Press Release
SACRAMENTO, Calif. — Aaron Ashcraft, 42, of Sacramento, pleaded guilty today to one count of wire fraud and one count of bank fraud in a scheme to defraud the Paycheck Protection Program of over $1.2 million in COVID-19 relief loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, U.S. Attorney Phillip A. Talbert announced.
The CARES Act was enacted on March 29, 2020, to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of forgivable loans to small businesses for job retention and certain other expenses, through the Paycheck Protection Program.
According to court documents, Ashcraft carried out the fraud scheme between May 2020 and April 2021. As part of his scheme, Ashcraft submitted to SBA-approved lenders at least seven fraudulent Paycheck Protection Program loan applications in the names of purported businesses. In the applications, Ashcraft falsely represented that each of the purported businesses had employees and monthly payroll expenses. To support the Paycheck Protection Program loan applications, Ashcraft submitted fabricated records including Internal Revenue Service forms, checking account statements, and payroll summaries. In total, Ashcraft requested over $1.2 million in Paycheck Protection Program loans and obtained approximately $920,000.
In addition to Paycheck Protection Program fraud, Ashcraft admitted that, from September 2017 through June 2020, he embezzled at least approximately $780,000 from his former employer—a street-sweeping company in Sacramento. Ashcraft held multiple positions at the company, including chief financial officer. As chief financial officer, Ashcraft had access to the company’s business credit card accounts. Without authorization, Ashcraft used those accounts to pay for personal expenses.
Finally, Ashcraft admitted to defrauding the Maine Department of Labor. According to his plea agreement, in July 2020, Ashcraft applied for Pandemic Unemployment Assistance, falsely claiming that he lived in Maine and was unable to work due to COVID-19. To support his application, Ashcraft submitted falsified IRS forms in which he represented that, in 2019, he operated a business in Maine that received over $160,000 in income and made a net profit of over $66,000. In total, Ashcraft fraudulently obtained unemployment compensation of over $58,000.
As part of his plea agreement, Ashcraft agreed to pay restitution as follows:
- A total of $919,598 to three SBA-approved lenders;
- $45,979 to the SBA;
- $779,832 to his former employer; and
- $58,050 to the Maine Department of Labor.
This case is the product of an investigation by the Federal Bureau of Investigation, the Federal Deposit Insurance Corporation Office of Inspector General, and the Small Business Administration Office of Inspector General. Assistant U.S. Attorney Matthew Thuesen is prosecuting the case.
U.S. District Judge Kimberly J. Mueller is scheduled to sentence Ashcraft on Aug. 22, 2022. He faces up to 20 years in prison and a $250,000 fine for wire fraud and up to 30 years in prison and a $1 million fine for bank fraud. The actual sentence, however, will be determined at the court’s discretion after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Two Charged for Illegal Cockfighting in Violation of the Animal Welfare Act in BakersfieldRead the Press Release
FRESNO, Calif. — Today, a federal grand jury charged Jorge Calderon-Campos, 41, and Horacio Ortega-Martinez, 35, both Mexican nationals residing in Bakersfield, in separate indictments with unlawful possession of animals for an animal fighting venture, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Calderon-Campos and Ortega-Martinez communicated frequently throughout February 2022 about illegal cockfighting events, including an event Calderon-Campos attended on February 12 at which 15 roosters fought to win a $5,000 purse. On April 26, 2022, numerous law enforcement agencies served a search warrant at Ortega-Martinez’s residence and discovered approximately 250 roosters, approximately 250 “gaffs” (razor-sharp steel blades that are tied to the birds’ legs), training mitts commonly used for training and fighting roosters, and miscellaneous antibiotics, vitamins, and supplements that are commonly used for breeding and training roosters for fighting.
Calderon-Campos and Ortega-Martinez were arrested on April 26, 2022, along with six other Kern County residents who were also charged with various drug trafficking offenses in a separate indictment returned today.
This case is the product of an investigation by Homeland Security Investigations, the Drug Enforcement Administration, the Kern County Sheriff’s Office, the Kern County High Intensity Drug Trafficking Area, the U.S. Marshals Service, the U.S. Customs and Border Protection, the Bakersfield Police Department, the Kern County Probation Department, the California Department of Corrections and Rehabilitation, the U.S. Secret Service, the U.S. Department of Agriculture Office of Inspector General and the California Highway Patrol. Assistant U.S. Attorney Christopher D. Baker is prosecuting the case.
If convicted, Calderon-Campos and Ortega-Martinez face a statutory maximum 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 defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Vacaville Man Sentenced to over 8 Years in Prison for Being a Felon in Possession of AmmunitionRead the Press Release
SACRAMENTO, Calif. — Guy Joseph Bass, 30, of Vacaville, was sentenced today by U.S. District Judge John A. Mendez to eight 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, between August 2020 and November 2020, Bass possessed three different loaded firearms. On Aug. 17, 2020, Bass’ acquaintance drove him to the hospital, where Bass falsely reported to law enforcement that he had been shot by an unknown assailant, before eventually admitting that he had shot himself by accident. Officers recovered a stolen Walther P22 semi-automatic pistol from the acquaintance’s vehicle. On Sept. 18, 2020, Bass was arrested for an outstanding warrant. During the arrest, Bass admitted to having a firearm on his person. The loaded firearm was a non-serialized, privately made firearm, also known as a “ghost gun.” Finally, on Nov. 18, 2020, law enforcement officers spotted Bass and another individual parked in Vacaville. After a police dog alerted to the presence of narcotics, Bass handed an officer a bag of methamphetamine. A search of the vehicle resulted in the discovery of a another loaded, privately made firearm. Bass is prohibited from possessing firearms or ammunition because he has been convicted of several felonies, including a prior state conviction for possessing a firearm as a felon.
This case was the product of an investigation by the Fairfield Police Department, the Vacaville Police Department, 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 prosecuted the case.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Shasta County Couple Sentenced for Conspiring to Subject Mother and Her Two Daughters to Forced LaborRead the Press Release
Nery A. Martinez Vasquez, 54, and Maura N. Martinez, 54, both of Shasta Lake, California, were both sentenced today for conspiring to subject three victims to forced labor, a crime to which the defendants had previously pleaded guilty. Vasquez was sentenced to six and a half years in prison and Martinez was sentenced to three years in prison. Both defendants were also sentenced to three years of supervised release and a fine of $25,000. The couple was also required to pay $300,000 in restitution to seven total victims. Assistant Attorney General Kristen Clarke and U.S. Attorney Phillip A. Talbert made the announcement.
According to court documents, from September 2016 to February 2018, the defendants — who owned and operated a restaurant and janitorial service — used various coercive means to force their victims into working long hours of physically demanding work, seven days a week, for minimal to no pay. In August 2016, the defendants convinced the victims, a Guatemalan relative and her two minor daughters, ages 15 and 8, to come to the United States by falsely promising the victims a better life and arranging for them to enter the United States and overstay their temporary visitor visas. The defendants then conspired with each other to impose an inflated debt on the victims that they required the victims to pay back through working for them. When the adult victim complained and expressed an interest in leaving, the defendants threatened to have the victims arrested for overstaying their visas unless they continued working the same long hours, seven days a week, for little pay.
Similarly, the defendants kept the two minor victims working at their businesses instead of attending school by telling the victims that immigration authorities would find and arrest them if the minor victims attempted to go to school. The defendants housed the victims in a dilapidated, unheated trailer with no running water, and degraded and humiliated them in front of others. Finally, the defendants used force and threats of force to intimidate the victims. For instance, Nery Martinez Vasquez beat the children with a stick that had the children’s name and nickname written on it along with the phrase “what goes up, must come down.”
“These defendants used the promise of a better life to lure a mother and her children to travel to the United States, only to betray their familial relationship and exploit the victims’ precarious situation to cruelly oppress and degrade them, and to turn a profit off their backs,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Forced labor has no place in our civilized society. This sentencing makes clear our commitment to holding perpetrators accountable and our dedication to eradicating human trafficking.”
“These defendants exploited vulnerable victims, forcing them to work in their businesses, failing to pay wages, and depriving them of basic human rights,” said U.S. Attorney Phillip A. Talbert for the Eastern District of California. “Now they have been sentenced to years in prison and have paid hundreds of thousands of dollars in restitution to their victims. The U.S. Attorney’s Office continues its commitment to protect and defend vulnerable members of our society from human trafficking, and we appreciate the partnerships we have with the Civil Rights Division and the FBI that led to the result in this case.”
“We hope today’s sentencing will offer the victims confidence as they continue to reclaim their lives. Forced labor, a form of human trafficking, is of significant concern for the FBI, but is difficult to identify and investigate without cooperation of fearful victims who believe escape is not an option because of the lies they have been told by their exploiters,” said Special Agent in Charge Sean Ragan for the FBI Sacramento Field Division. “This case highlights how such crimes may occur in public view at a legitimate business yet go unnoticed. The FBI is deeply commitment to seeking justice for all victims of human trafficking — regardless of immigration status or background — to ensure victims receive the care and support they need to break free from their exploiters.”
This case is the product of an investigation by the FBI. Assistant U.S. Attorneys Katherine T. Lydon and Audrey Hemesath, and Trial Attorney Avner Shapiro of the Civil Rights Division prosecuted the case.
Bakersfield Resident Sentenced to over 5 Years in Prison for Unlawfully Possessing AmmunitionRead the Press Release
FRESNO, Calif. — Jesus B. Cordero, 26, of Bakersfield, was sentenced today by U.S. District Judge Dale A. Drozd to five years and 10 months in prison for possession of ammunition after sustaining a domestic violence conviction, U.S. Attorney Phillip A. Talbert announced.
According to court documents, at approximately midnight on Sept. 5, 2020, law enforcement officers stopped Cordero for traffic infractions while he was driving in Bakersfield. Cordero did not have a driver’s license and gave a false name to the responding police officers. During a search of Cordero’s vehicle, officers located a baggie containing what was later determined to be approximately 45.5 grams of methamphetamine, which Cordero possessed intending to distribute it to others. Officers also discovered in Cordero’s vehicle an unmarked Polymer P80 9 mm handgun (which is known as a “ghost gun”) loaded with a high-capacity magazine and 23 rounds of 9 mm ammunition. In addition to Cordero’s 11 prior criminal convictions, he previously was convicted of inflicting corporal injury on a spouse or cohabitant and is prohibited from possessing firearms or ammunition.
This case was the product of an investigation by the Federal Bureau of Investigation and the Bakersfield Police Department. Assistant U.S. Attorney Christopher D. Baker prosecuted the case.
This case was part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Bakersfield Resident Pleads Guilty to Methamphetamine and Fentanyl Trafficking ChargesRead the Press Release
FRESNO, Calif. — David Delgado Gonzalez, 38, of Bakersfield, pleaded guilty today to conspiracy to distribute and possess with intent to distribute methamphetamine and fentanyl, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between September 2020 and March 2021, Gonzalez (also known as “Spider”) conspired with, among others, co-defendant Omar Alberto Navarro to acquire methamphetamine in Mexico, transport it to the Eastern District of California, unload the narcotics from “load cars,” store the narcotics, and sell and distribute the narcotics to others. For instance, on Oct. 29, 2020, at the behest of Navarro, Gonzalez transported approximately 6 pounds of methamphetamine to a meeting in Bakersfield and sold the methamphetamine to Scott Gordon James, who is charged in a related case, for $6,200.
On March 26, 2021, in a storage unit in Bakersfield Gonzalez possessed with the intent to distribute to others approximately 4 pounds of methamphetamine. As part of his plea agreement, Gonzalez agreed to forfeit three unserialized 9 mm handguns seized during law enforcement’s search of his Bakersfield residence on March 26, 2021.
On April 8, 2021, Gonzalez and eight other defendants were charged in three related indictments for trafficking and purchasing to sell methamphetamine from a conspiracy orchestrated by Navarro, 38, of Arvin. The other charged defendants are: Daniel Armendariz Mercado, 42, Miguel Angel Martinez, 27, Amayrani Jared Arreguin, 25, and Yvette Gallegos, 23, all of Bakersfield; Lizette Mendez, 32, of Delano; and James Scott Gordon, 47 of Chico. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt. Co-defendant Randal Jason Newell was sentenced on March 29, 2022, to three years and three months in prison for attempting to smuggle approximately 111 pounds of methamphetamine from Mexico to Bakersfield.
This case is the product of an investigation by Homeland Security Investigations, the Drug Enforcement Administration, the U.S. Marshals Service, the U.S. Postal Inspection Service, the U.S. Customs and Border Protection, the Bureau of Alcohol, Firearms, Tobacco and Explosives, the Federal Bureau of Investigation, the U.S. Secret Service, the Bakersfield Police Department, the Kern County Sheriff’s Office, the Shafter Police Department, the Kern County Probation Department, the California Department of Corrections and Rehabilitation, the California Department of Motor Vehicles, and the California Highway Patrol. Assistant U.S. Attorneys Christopher D. Baker and Laura J. Berger are prosecuting the case.
Gonzalez is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on July 5, 2022. Gonzalez faces a maximum term 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 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.
“Chicken Joe” Sentenced to 16 Months in Prison for Conspiring to Run an Animal Fighting OperationRead the Press Release
FRESNO, Calif. — Joseph D. Sanford, 74, of Ceres, aka “Chicken Joe,” was sentenced today to 16 months in prison and a fined $25,000 for conspiring to sell, buy, possess, train, transport, deliver and receive game fowl intended to be used in animal fighting ventures, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Sanford was the owner and operator of Joe Sanford Gamefarm in Ceres, where he bred and sold gamecocks for cockfighting. Cockfighting is illegal under federal law and in all 50 states. Sanford also fought his own roosters. Following an undercover purchase of a trio of fighting game birds, federal agents searched Joe Sanford Gamefarm, where Sanford resides, and found a large cockfighting enterprise consisting of 2,956 game fowl. Sanford shipped game fowl for cockfighting within the United States and to Mexico, Peru, and the Philippines.
This case was the product of an investigation by the U.S. Department of Agriculture Office of the Inspector General (USDA-OIG), with assistance from the USDA Animal and Plant Health Inspection Service, the IRS Criminal Investigation, Homeland Security Investigations, the U.S. Forest Service, and the Stanislaus County Sheriff’s Office. Assistance was also provided by the Humane Society of the United States, the Placer County Animal Services, and the El Dorado County Animal Services. The U.S. Department of Justice’s Environment and Natural Resources Division and U.S. Marshals Service also provided assistance in the disposal of the fighting roosters and placement of the hens in an animal sanctuary. Assistant U.S. Attorney Karen A. Escobar prosecuted the case.
Tulare County Man Sentenced to over 7 Years in Prison for Fentanyl and Methamphetamine Deliveries, Co Conspirator Pleads GuiltyRead the Press Release
FRESNO, Calif. — Renato Aguilera, 30, of Porterville, was sentenced today to seven years and three months in prison for conspiring to distribute fentanyl and methamphetamine, U.S. Attorney Phillip A. Talbert announced. Another member of the conspiracy, Maria Delgado, 31, of Porterville, pleaded guilty today to participating in the drug conspiracy.
According to court documents, acting at the direction of his brother-in-law, Pedro Delgado-Montenegro, 42, a native and citizen of Mexico formerly residing in Porterville, Aguilera delivered 800 fentanyl pills to an undercover officer in exchange for $4,250. Aguilera also transported several thousand fentanyl pills from Los Angeles to Porterville. In addition, at Delgado-Montenegro’s direction, Aguilera delivered over a pound of methamphetamine in two separate transactions to co-defendant Robert Cox, 58, of Porterville, and a third party sent by Cox.
In pleading guilty to the drug conspiracy, Delgado-Montenegro’s niece Maria Delgado admitted that she delivered fentanyl pills to an undercover officer, on behalf of Delgado-Montenegro, on three separate occasions. She also admitted that, at Delgado-Montenegro’s direction, she retrieved 2.2 pounds of heroin from the Los Angeles area that had been smuggled into the United States from Mexico.
Aguilera and Maria Delgado are two of nine defendants, including Delgado-Montenegro, charged in the case. Delgado-Montenegro is a fugitive. Maria Delgado is scheduled to be sentenced on July 22, 2022, and faces a mandatory minimum statutory penalty of five years in prison, a maximum statutory penalty of 40 years in prison, and a $5 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. On April 22, 2022, Roberto Cavazos, 43, of Porterville, was sentenced to 12 years and seven months in prison for conspiring to distribute methamphetamine. Charges are pending against the remaining defendants. The charges are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Drug Enforcement Administration with assistance from Federal Bureau of Investigation, the Porterville Police Department, the Coalinga Police Department, and the Fresno Police Department. Assistant U.S. Attorney Karen Escobar is prosecuting 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.
Vallejo Man Pleads Guilty to Flying to the Philippines with the Intention of Engaging in Sexual Conduct with a ChildRead the Press Release
SACRAMENTO, Calif. — Balbino Sablad, 80, of Vallejo, pleaded guilty today to traveling with the intent to engage in illicit sexual conduct, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in 2019, Sablad flew to the Philippines with the intention of engaging in sexual conduct with a child under the age of 16. Using Facebook, Sablad had engaged in sexual chats with a person he believed was the intended minor victim and he sent the intended minor victim over $2,000 prior to his travel to the Philippines. Before he arrived, he also discussed with a co-conspirator his plan to sexually abuse the intended minor victim in the Philippines.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Rosanne Rust is prosecuting the case.
Sablad a sentencing hearing is scheduled before U.S. District Judge Troy L. Nunley on Aug. 1, 2022. Sablad faces a maximum statutory penalty of 30 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Tracy Man Charged with Distribution and Possession of Child Pornography and Being a Felon in Possession of AmmunitionRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Wayne Lee Hauzer, 57, of Tracy, charging him with distribution and possession of child pornography and being a felon in possession of ammunition, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Hauzer used the Kik messaging application to communicate with an undercover FBI agent whom he believed to be a 13-year-old girl, and sent the undercover agent a video of child pornography. Hauzer also possessed additional images of child pornography. In addition, Hauzer possessed 35 rounds of 9 mm caliber ammunition in a closet near a firearm without a serial number, which is known as a “ghost gun.” Hauzer is prohibited from possessing firearms or ammunition after having been convicted of felonies, including the enticement of a minor and distribution of child pornography.
This case is the product of an investigation by the Federal Bureau of Investigation and the FBI Child Exploitation and Human Trafficking Task Force (CEHTTF) with assistance from the Tracy Police Department. Assistant U.S. Attorney Shelley D. Weger is prosecuting the case.
If convicted, Hauzer faces a maximum statutory penalty of 40 years in prison, a $250,000 fine, and potentially a lifetime of supervised release. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Former DMV Employee Pleads Guilty to Conspiracy to Receive Bribes to Alter Records in DMV Database in SacramentoRead the Press Release
SACRAMENTO, Calif. — Shawana Denise Harris, 52, of Rancho Cucamonga, pleaded guilty today to conspiracy to commit bribery, to commit unauthorized access of a computer, and to commit identity fraud, which resulted in unqualified drivers receiving their California commercial driver’s licenses (CDLs), U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Nov. 16, 2017, Harris was charged with conspiring to receive bribes as a DMV employee in Rancho Cucamonga for accessing and altering records in the DMV’s database in Sacramento. During the scheme, Harris altered records to show that applicants for California CDLs had passed the required tests when, in truth, they had not done so, and in some cases had not even taken the tests. In so doing, this caused the DMV to issue permits and completed California CDLs despite the applicants not having taken or passed those tests.
This case is the product of an investigation by the California Department of Motor Vehicles, Office of Internal Affairs; the Federal Bureau of Investigation; Homeland Security Investigations; and the Department of Transportation, Office of Inspector General. Assistant U.S. Attorneys Rosanne L. Rust and Christopher S. Hales are prosecuting the case.
Harris is scheduled to be sentenced on July 28, 2022, by U.S. District Judge Troy L. Nunley. Harris 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.
Federal Firearms Charges Brought Against 6 Fresno Residents Arrested in Operation No Fly ZoneRead the Press Release
FRESNO, Calif. — A federal grand jury returned four indictments today against six Fresno residents as a result of Operation No Fly Zone that sought to address a rise in the number of shootings and homicides in Fresno, U.S. Attorney Phillip A. Talbert announced.
The multi-agency, months-long investigation resulted in the arrests of over 40 individuals, including six federal defendants.
Fresno residents Patrick Anthony Feaster, 23, and Marcus Rashad Newton, 24, are charged in one indictment with one count each of being a felon in possession of a firearm. Both have prior felony convictions and are prohibited from possessing firearms.
Donald Ray Phelps Jr., 28, of Fresno, is charged with being a felon in possession of ammunition. He has a felony conviction for conspiracy to commit pandering in Orange County and is prohibited from possessing ammunition.
Reginald Keith Cannon Jr., 24, of Fresno, is charged with being a felon in possession of a firearm. He has prior felony convictions involving firearms offenses and is prohibited from possessing a firearm.
Fresno residents Taylor Washington, 21, and his mother Jawana Washington, 42, are charged in one indictment. Taylor is charged with being a felon in possession of a firearm and Jawana is charged with aiding and abetting a felon’s possession of a firearm when she provided Taylor with a 9 mm handgun, knowing that he had been convicted of two felonies involving firearms offenses and was prohibited from possessing a firearm.
According to court documents, on March 16, 2022, investigators gained information that Newton and Feaster would be meeting at a residence in Fresno so that Newton could provide Feaster with a firearm and an extended magazine. Investigators observed the meetup, and shortly after Feaster left the residence, officers attempted to conduct a traffic stop on Feaster’s car. Feaster failed to yield, bailed out of the car with a bag, and fled on foot. After a chase, officers arrested Feaster and seized the bag from him. Inside the bag, officers found a semi-automatic handgun with an extended magazine.
On March 18, 2022, investigators learned about the presence of a firearm inside a car in which Phelps was a passenger. Officers conducted a traffic stop on the car, and during a search of the car, under the seat where Phelps had been sitting, officers found a loaded, privately manufactured, semi-automatic handgun with no serial number.
On March 23, 2022, investigators received information that Cannon was in possession of a firearm at the Fashion Fair Mall. Officers reported to the mall, where they found Cannon, a parolee, and conducted a parole-compliance check on him. During a search of his person, officers found a loaded semi-automatic firearm with an extended magazine attached.
On March 25, 2022, Jawana Washington loaned a firearm to Taylor Washington. Officers conducted a traffic stop on Taylor Washington’s car, searched it, and found the firearm in the center console.
These cases are the product of an investigation by the Federal Bureau of Investigation, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Fresno Police Department, the Fresno-area Multi-Agency Gang Enforcement Consortium (MAGEC), the California Department of Justice Special Operations Unit, the California Department of Justice Human Trafficking / Sexual Predator Apprehension Team, the California Highway Patrol, the Fresno County Sheriff’s Office, the Kings County Sheriff’s Office, the California Department of Corrections and Rehabilitation, and the Fresno County District Attorney’s Office. Assistant U.S. Attorneys Antonio J. Pataca, Justin J. Gilio, and Kimberly A. Sanchez are prosecuting the cases.
If convicted, the defendants each face 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 being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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 Man Sentenced to over 4 Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — Roosevelt Ronee Bohannon II, 44, of Vallejo, was sentenced today by U.S. District Judge John A. Mendez to four years and two months in prison for being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on April 11, 2019, officers were dispatched to assist with a male who was being combative with members of the Vallejo Fire Department. Officers arrived on scene and apprehended Bohannon, who had a revolver tucked into the front of his waistband. Bohannon has previously been convicted of four felony offenses for drug and firearms offenses and is prohibited from possessing firearms.
This case was the product of an investigation by the Vallejo Police Department with assistance from the FBI’s Solano County Violent Crimes Task Force and the Solano County District Attorney’s Office. Assistant U.S. Attorney Emily Sauvageau prosecuted the case.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Six Arrested for Trafficking Methamphetamine and Heroin in BakersfieldRead the Press Release
FRESNO, Calif. — Six people were arrested in Kern County today following a year-long investigation of a Bakersfield-based drug trafficking organization that distributed methamphetamine and heroin, U.S. Attorney Phillip A. Talbert announced.
The defendants are scheduled to make an initial appearance before U.S. Magistrate Judge Sheila K. Oberto on Wednesday, April 27, at 2:00 p.m.
Those charged in the federal criminal complaint unsealed today are: Jorge Calderon-Campos, 41; Byron Adilio Alfaro-Sandoval, 45; and Johnathan Benjamin Torres, 30; all citizens of Mexico residing in Bakersfield; Jose Angel Beltran-Chaidez, 66, of Bakersfield; and Alberto Gomez-Santiago, 36; and Mark Garcia, 22, of Arvin.
According to court documents, Campos distributed in Bakersfield large amounts of methamphetamine and heroin that he imported from Mexico. Between March 2021 and February 2022, law enforcement agencies intercepted and seized approximately 86 pounds of methamphetamine and 1 kilogram of heroin that Campos and his co-conspirators attempted to distribute.
“We are committed to disrupting transnational criminal networks that flood our communities with dangerous drugs,” said U.S. Attorney Talbert. “Those who distribute large amounts of methamphetamine, heroin, and other illegal drugs in our communities will be held accountable.”
“The successful outcome of this yearlong investigation further highlights the importance of sustained cooperation between local, state and federal law enforcement,” said HSI San Francisco/NorCal Special Agent in Charge Tatum King. “Through this multiagency effort, we were able to disrupt transnational criminal activity responsible for importing and distributing large amounts of methamphetamine and heroin into our communities. We especially thank our agents, the men and women of our federal and local partners as well as the prosecutorial efforts by the U.S. Attorney’s Office, Eastern District of California.”
“DEA and our law enforcement partners will be relentless in the pursuit of criminal networks that set-up shop in our communities and push poison into our neighborhoods,” said DEA Special Agent in Charge Wade R. Shannon.
This case is the product of an investigation by Homeland Security Investigations, the Drug Enforcement Administration, the Kern County Sheriff’s Office, the Kern County High Intensity Drug Trafficking Area, the U.S. Department of Agriculture Office of Inspector General, the U.S. Marshals Service, U.S. Customs and Border Protection, the Bureau of Land Management, the Bakersfield Police Department, the Kern County Probation Department, the California Department of Corrections and Rehabilitation, the U.S. Secret Service, and the California Highway Patrol. Assistant U.S. Attorney Christopher D. Baker is prosecuting the case.
If convicted of the charged offenses, each defendant faces a statutory mandatory minimum penalty of 10 years in prison up to a maximum of life in prison, and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Former Owner of Chrysler Dealerships in Lodi and Sonora Charged with Wire Fraud for Defrauding InvestorsRead the Press Release
FRESNO, Calif. — On April 21, 2022, a federal grand jury returned an eight-count indictment against Vincent Elliot Porter, 73, of Oakdale, charging him with wire fraud, United States Attorney Phillip A. Talbert announced.
According to court documents, between 2013 and 2017, Porter owned and operated two Chrysler Dodge Jeep Ram dealerships: Sonora Chrysler Dodge Jeep Ram, and Lodi Chrysler Dodge Jeep Ram. He used his ownership of those businesses to defraud investors of approximately $8 million. He promised investors fixed rates of return and falsely represented that the investments were risk free and backed by collateral. He misrepresented the financial health of the dealerships and the intended use of investor funds. Porter spent much of the investors’ funds for personal use including expensive travel (including to golf resorts such as Pebble Beach, high end hotels such as the Ritz Carlton, and numerous trips to Las Vegas, the Napa Valley, and other luxury locations), the purchase of an expensive vehicle, and other personal expenses.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey A. Spivak is prosecuting the case.
If convicted, Porter faces a maximum statutory penalty of 20 years in prison and a $250,000 fine on each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Vallejo Men Sentenced to Prison for Robbery and Assault of Federal Officer During Undercover Drug DealRead the Press Release
SACRAMENTO, Calif. — Rafael Ruiz, 34, and Edgar Torres, 35, of Vallejo, were sentenced today by U.S. District Judge Kimberly J. Mueller to 13 and 10 years in prison respectively for their involvement in the armed robbery of a federal agent during an undercover drug deal, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on June 14, July 3, and July 27, 2018, Ruiz sold crystal methamphetamine and thousands of methamphetamine pills to an undercover agent. Ruiz agreed to sell heroin to the undercover agent on Sept. 3, 2018. During that arranged transaction, Ruiz and Torres robbed the undercover agent at gunpoint. During the robbery, Torres pointed the firearm at the agent and threatened to kill him.
Ruiz and Torres were arrested in possession of the stolen funds. The firearm used in the robbery, a Halloween mask, knife, and 3,000 additional methamphetamine pills were later seized from Ruiz’s residence. Ruiz was convicted of distribution of at least 500 grams of a mixture containing methamphetamine, conspiracy to commit robbery of money of the United States, and assault on a federal officer. Torres was convicted of conspiracy to commit robbery of money of the United States, assault on a federal officer, and brandishing a firearm during and in relation to crimes of violence.
This case was the product of an investigation by the Drug Enforcement Administration, the Vallejo Police Department, the Napa Sheriff’s Department, the California Department of Corrections and Rehabilitation (CDCR), and the El Dorado County District Attorney’s Office. Assistant U.S. Attorneys Cameron L. Desmond and Justin L. Lee prosecuted the case.
Fresno County Man Sentenced to over 4 Years in Prison for Possession of Stolen MailRead the Press Release
FRESNO, Calif. — Randall McKinney, 33, of Clovis, was sentenced today to four years and three months in prison for possession of stolen mail and possession of a counterfeit postal key, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between April 2021 and October 2021, McKinney stole and possessed stolen mail and possessed a counterfeit postal key for the delivery of mail. McKinney claimed to have broken into approximately five thousand to 10 thousand mailboxes, using the counterfeit postal key for many of the thefts. On Aug. 17, 2021, law enforcement officers observed Kinney drive up to a community mailbox in Clovis, exit his truck, open the rear door of the mailbox with the key, and steal mail from the mailbox. When McKinney was arrested, he possessed stolen mail that included checks, credit cards, and device making equipment. Through his conduct, McKinney caused an intended loss that exceeded $150,000. McKinney was also ordered to pay over $50,000 in restitution to the victims of the mail theft.
This case was the product of an investigation by the Federal Bureau of Investigation, the U.S. Postal Inspection Service, the Fresno County Sheriff’s Office - Elder Abuse Unit, and the Clovis Police Department. Assistant U.S. Attorney Alexandre Dempsey prosecuted the case.
Bakersfield Man Pleads Guilty to Possession of Methamphetamine with Intent to DistributeRead the Press Release
FRESNO, Calif. — Louis Torres, 37, of Bakersfield, pleaded guilty today to possession of methamphetamine with the intent to distribute, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on July 23, 2021, Torres was driving a vehicle in Bakersfield that was stopped by police officers for traffic violations. After exiting his vehicle, Torres fled on foot, but was pursued and apprehended by police. After Torres was arrested, police officers discovered that he possessed methamphetamine and heroin that he intended to distribute to others. At the time of his arrest, Torres was under active court supervision for a burglary conviction and had a suspended driver’s license.
This case is the product of an investigation by the Federal Bureau of Investigation and the Bakersfield Police Department. Assistant U.S. Attorney Christopher D. Baker is prosecuting the case.
Torres is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Aug. 8, 2022. Torres faces a mandatory minimum statutory penalty of five years in prison and a maximum of up to 40 years in prison and a fine of up to $5 million. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Tulare County Man Sentenced to over 12 Years in Prison for Methamphetamine Trafficking ConspiracyRead the Press Release
FRESNO, Calif. — Roberto Cavazos, 43, of Porterville, was sentenced today to 12 years and seven months in prison for conspiring to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Cavazos negotiated for the purchase of 1 pound of methamphetamine from Pedro Delgado-Montenegro, 42, a former Porterville resident and native and citizen of Mexico, who supplied the drug to Cavazos through a third party.
Cavazos is one of nine defendants, including Delgado-Montenegro, charged in the case. Delgado-Montenegro is a fugitive. Co-defendant Renato Aguilera is scheduled for sentencing in federal court on April 29, 2022. Aguilera faces a mandatory minimum statutory penalty of 10 years in prison, 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.
Charges are pending against the remaining defendants. The charges are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Drug Enforcement Administration with assistance from Federal Bureau of Investigation, the Porterville Police Department, the Coalinga Police Department, and the Fresno Police Department. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Fresno Man Sentenced to 15 Years in Prison for Receipt of Child PornographyRead the Press Release
FRESNO, Calif. — Adam Lee Campbell, 43, of Fresno, was sentenced Thursday by U.S. District Judge Jennifer L. Thurston to 15 years in prison for receipt of material involving the sexual exploitation of minors, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between Jan. 17, 2019, and Feb. 23, 2021, Campbell received images of minors engaging in sexually explicit conduct onto a cellphone while on parole. Campbell has a prior conviction for hands-on contact with minors, along with prior state convictions for possession of child pornography and for failing to register as a sex offender.
This case was the product of an investigation by Homeland Security Investigations (HSI). Assistant United States Attorney Laura D. Withers 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 Felon Indicted for Possessing FirearmsRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today against Nicholas D. Gray, 38, of Sacramento, charging him with being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on March 31, 2022, law enforcement officers responded to a domestic disturbance in Sacramento. Before officers arrived, Gray took a duffle bag of firearms from his residence and drove to a mini-storage facility. Officers contacted Gray at his storage unit and found him in possession of firearms, additional firearms parts and lower receivers, and ammunition. Gray has eight prior felony convictions which prohibit him from possessing a firearm, including 2016 convictions for arson and manufacturing controlled substances.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Yolo County District Attorney’s Office, the Sacramento Police Department, and the Woodland Police Department. Assistant U.S. Attorney Emily Sauvageau is prosecuting the case.
If convicted, Gray 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 considering any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Mexican National Indicted for Distribution of Fentanyl and Other Drugs in Fresno CountyRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Jesus Ramos, 48, of Sinaloa, Mexico, charging him with distributing and possessing with intent to distribute fentanyl, eutylone, hydrocodone, and ketamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Oct. 13, 2021, after negotiating for the delivery 10,000 “pills” and “one of China”–a street term for synthetic heroin powder usually containing fentanyl–Ramos delivered pills containing fentanyl that weighed approximately 31 grams and approximately 2 pounds of a white powdery substance containing eutylone, hydrocodone, and ketamine. According to the Drug Enforcement Administration, 2 milligrams of fentanyl is considered a lethal dose. Ketamine is a schedule III pain reliever commonly used in anesthesia. Hydrocodone is a schedule II opiate used for severe pain. Eutylone is a schedule I stimulant, and is also known as “boot.”
This case is the product of an investigation by the Fresno High Impact Investigation Team (HIIT), which is a High Intensity Drug Trafficking Area Initiative (HIDTA) composed of law enforcement personnel from the Federal Bureau of Investigation; the DEA; the California Department of Justice; the California Highway Patrol; the Sheriff’s Offices of Fresno, Tulare, and Kings Counties; and the Fresno Police Department. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
If convicted, Ramos faces a minimum statutory penalty of 10 years in prison and a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Bakersfield Man Indicted for Unlawful Possession of a FirearmRead the Press Release
FRESNO, Calif. — Katerrin McCray, 25, of Bakersfield, was charged today by a federal grand jury with being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Jan. 15, 2022, law enforcement officers attempted to stop a vehicle in which McCray was the passenger for traffic infractions in Bakersfield. The vehicle sped off and McCray discarded a loaded Glock Model 22 .40‑caliber handgun out the passenger window during the pursuit. Officers apprehended McCray and shortly afterwards located McCray’s handgun in the street where he discarded it, along with a high-capacity magazine and 21 rounds of 40-caliber ammunition. Because of his prior criminal convictions, including a 2017 conviction for being a felon in possession of 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.
If convicted, McCray 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 charge is only an allegation; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Sacramento Felon Pleads Guilty to Illegal Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — Marcus Lawrence Weber, 26, of Sacramento, pleaded guilty today to 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 officers located him driving in Roseville. When they tried to pull him over to arrest him, Weber led them on a car chase. Eventually, Weber stopped his car and fled on foot, wearing a black ski mask. He ran into a creek bed, where he dropped a Ruger 5.7 firearm and was eventually arrested. The firearm was loaded with an extended magazine and had a round in the chamber. Weber is prohibited from possessing firearms or ammunition because he has previously been convicted of felony offenses.
This case is 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, 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 is prosecuting the case.
Weber is scheduled to be sentenced on Aug. 2, 2022. He 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.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Siblings Sentenced for Offenses Involving the Sale of Stolen MacBooksRead the Press Release
SACRAMENTO, Calif. — Patricia Castaneda, 38, of Redwood City, was sentenced to 33 months in prison and her brother, Eric Castaneda, 37, also of Redwood City, was sentenced to 18 months in prison by U.S. District Judge Kimberly J. Mueller for their roles in a scheme that involved the theft and interstate sale of Apple MacBooks, U.S. Attorney Phillip A. Talbert announced.
In addition, Judge Mueller ordered Patricia Castaneda to pay $4,077,832 in restitution and ordered Eric Castaneda to pay $2,283,155 in restitution.
According to court documents, Patricia Castaneda worked in the School of Humanities and Sciences at a private university in Stanford, California. In her position, Patricia Castaneda’s duties included ordering MacBooks for university faculty and staff. In 2009 or 2010, Patricia Castaneda began stealing MacBooks she ordered and selling them for cash. Initially, Patricia Castaneda sold the stolen MacBooks to an individual she met on Craigslist. In approximately February 2016, Patricia Castaneda began giving the stolen MacBooks to Eric Castaneda to sell to an individual named Philip James who, in turn, resold and shipped the MacBooks from Folsom to buyers outside California.
In total, the cost to the university of MacBooks Patricia Castaneda stole was over $4 million. That amount includes the cost to the university of approximately 800 stolen MacBooks Eric Castaneda sold to James, which was approximately $2.3 million.
This case was a product of an investigation by the IRS-Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorney Matthew Thuesen prosecuted the case.
In a separate case, on April 11, 2022, James pleaded guilty for his role in the scheme.
Mexican Citizen Sentenced to over 5 Years in Prison for Distributing Fentanyl in BakersfieldRead the Press Release
FRESNO, Calif. — Jesus Adrian Pena-Gamez, 33, a Mexican national unlawfully residing in Bakersfield, was sentenced today to five years and three months in prison for possessing with the intent to distribute fentanyl, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on April 7, 2021, Pena-Gamez and co-defendant Carlos Ivan Campana met in the parking lot of a Bakersfield restaurant to sell to a person 15,000 counterfeit M30 pills containing fentanyl. During the meeting, Pena-Gamez and Campana were arrested and law enforcement officers recovered from Pena-Gamez’s vehicle approximately 3 pounds of pills containing a detectable amount of fentanyl.
Charges are pending against Campana for distribution of fentanyl and methamphetamine on three prior occasions between November 2020 and April 2021. On April 6, 2022, a bench warrant was issued for Campana’s arrest for violating pretrial release conditions and his whereabouts currently are unknown. The charges against him are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Drug Enforcement Administration. Assistant U.S. Attorney Christopher D. Baker is prosecuting the case.
Fresno Man Sentenced to over 5 Years in Prison for Investment Fraud, Bank Fraud, and Tax EvasionRead the Press Release
FRESNO, Calif. — Kenneth Shane Patterson, 44, of Fresno, was sentenced today by U.S. District Judge Dale A. Drozd to five years and six months in prison and ordered to pay $1.9 million in restitution for wire fraud, bank fraud, and evading the payment of taxes, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Patterson convinced a small business owner to give him more than $1 million over approximately 31 months so that Patterson could acquire a skilled nursing facility in Pasadena. Patterson promised to then sell the facility to the business owner at below market value. Patterson told the business owner that he needed the money to clear liens and pay other expenses so the deal would close. In reality, Patterson never actually intended to buy the facility and instead spent the money on unrelated business expenses and his own gambling.
In addition to defrauding the business owner, Patterson defrauded Bank of America in a check-kiting scheme by writing two checks totaling $230,000 from Patterson’s business account at JPMorgan Chase to another of his business accounts at Bank of America. The Chase account’s balance at the time was less than $10,000. After writing the checks, Patterson quickly transferred and spent the deposited funds before Bank of America realized Patterson’s check had bounced. Bank of America sustained a loss of approximately $150,000.
Additionally, Patterson evaded paying federal income tax from tax years as far back as 2003 through various methods of evasion, including having no personal bank accounts, incurring expenses on accounts not in his name, and dealing in a high volume of cash. Patterson pleaded guilty on Oct. 19, 2021.
This case was the product of an investigation by the Federal Deposit Insurance Corporation Office of Inspector General, the Federal Bureau of Investigation, and the Internal Revenue Service-Criminal Investigation. Assistant U.S. Attorney Alexandre Dempsey prosecuted the case.
Fresno Fentanyl Pill Dealer Sentenced to 6 Years in Prison for Illegal Possession of Counterfeit M30 Pills and a Loaded FirearmRead the Press Release
FRESNO, Calif. — Jose Jesus Torres Garcia, 30, of Fresno, was sentenced today by U.S. District Judge Dale A. Drozd to six years in prison for illegally possessing fentanyl pills and a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in May 2021, law enforcement obtained evidence that Torres Garcia was using his social media account to advertise the sale of “M30” pills, which are counterfeit oxycodone pills laced with fentanyl. Based on that information, federal officers executed a search warrant at Torres Garcia’s residence and found a loaded, short-barrel rifle and several hundred fentanyl pills packaged for sale. Torres Garcia was charged with possessing fentanyl with intent to distribute it and possessing a firearm in furtherance of a drug trafficking crime. He pleaded guilty to both charges on Sept. 27, 2021.
The case was the result of an investigation by FORT, a multi-agency team composed of the Drug Enforcement Administration, the Homeland Security Investigations, and the Fresno Police Department. Assistant U.S. Attorney Justin J. Gilio prosecuted the case.
This case is part of Operation Synthetic Opioid Surge (S.O.S.) a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.
Former Butte County Man Pleads Guilty to Theft of FEMA Benefits in Connection with Paradise Camp FireRead the Press Release
SACRAMENTO, Calif. — Andrew Keffer, 44, previously of Chico, pleaded guilty today to theft of government property: specifically, FEMA benefits issued in connection with the 2018 Camp Fire, U.S. Attorney Phillip A. Talbert announced.
Following the 2018 Camp and Carr Fires, FEMA assistance was available to individuals who, as a result of the fires, had emergency needs for food, shelter, and personal items. To qualify for certain benefits, an individual’s primary residence—the place where the individual resided at the time of the fire—had to have been destroyed or damaged by the fire, among other eligibility criteria.
According to court documents, FEMA issued two checks to Keffer based on an application for FEMA benefits that falsely claimed Keffer’s primary residence had been destroyed in the Camp Fire. Keffer cashed the two checks knowing he was not a victim of the Camp Fire and was not entitled to the money. This case came to the attention of federal law enforcement through a tip from a member of the public.
This case is the result of investigations by the Department of Homeland Security, Office of the Inspector General with assistance from the Federal Bureau of Investigation. Assistant U.S. Attorney Shelley D. Weger is prosecuting the case.
Keffer is scheduled to be sentenced by U.S. District Judge William B. Shubb on Aug. 15, 2022. Keefer 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. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
The U.S. Department of Justice established the National Center for Disaster Fraud (NCDF) to investigate, prosecute, and deter fraud in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region. Its mission has expanded to include suspected fraud from any natural or manmade disaster. More than 20 federal, state, and local agencies participate in the NCDF, which allows the center to act as a centralized clearinghouse of information related to disaster relief fraud.
El Dorado Hills Man Indicted for Fraud Against Merchant Cash Advance CompaniesRead the Press Release
SACRAMENTO, Calif. — A 10-count indictment was unsealed today against Suneet Singal, 43, of El Dorado Hills, charging him with wire fraud and mail fraud, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between March 2017 and July 2017, Singal engaged in a scheme to make false representations in order to induce financing companies to provide funds to certain companies in the form of merchant cash advances, which are advances of money in exchange for promises to repay greater amounts of money from future receivables. To obtain the cash advances, Singal claimed that he was the owner of a company that operated a chain of fast-food franchises, but he did not actually own that company.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Miriam R. Hinman and Nicholas M. Fogg are prosecuting the case.
If convicted, Singal faces a maximum statutory penalty for each count of 20 years in prison and a fine of $250,000 or twice the gross gain or gross loss, whichever is greater. 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.
Auburn Man Sentenced to 30 Years in Prison for Producing Child PornographyRead the Press Release
SACRAMENTO, Calif. — Christopher Lee, 69, of Auburn, was sentenced today to 30 years in prison for production of child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Lee repeatedly used a webcam to produce child pornography involving a seven-year-old child by sharing a live-streamed video with an individual who lived in England.
“Today’s sentence assures the public that this defendant will be kept away from children,” U.S. Attorney Talbert said. “This defendant encouraged others to participate in crimes that hurt children, who are the most vulnerable members of our communities. The U.S. Attorney’s Office is committed to continuing its collaboration with our law enforcement partners to ensure that offenders like this defendant are prosecuted to the fullest extent of the law.”
“We appreciate the work in this joint investigation with the Placer County Sheriff’s Office with prosecution by the U.S. Attorney’s Office, Eastern District of California, that resulted in the rescue of a seven-year-old child,” said Tatum King, special agent in charge, HSI San Francisco. “Special thanks to Hertfordshire Constabulary (United Kingdom) for discovering the crime and HSI Attaché London for collaborating with HSI Sacramento to bring Mr. Lee to justice. This is another disturbing reminder of the dangers of the internet and the importance of working with our international partner law enforcement agencies via HSI’s extensive network of overseas attachés to respond quickly to crimes that exploit our most vulnerable victims.”
This case was the product of an investigation by Homeland Security Investigations (HSI) and the Placer County Sheriff’s Department. Assistant U.S. Attorney Lee S. Bickley prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who 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.
Federal Grand Jury Charges 18, Including the “M30 King of Fresno” and His Fentanyl Trafficking RingRead the Press Release
FRESNO, Calif. — A federal grand jury returned a 21-count indictment Thursday against 18 individuals, charging them with illegally trafficking fentanyl, fentanyl analogue, methamphetamine, and cocaine as well as illegally possessing firearms, U.S. Attorney Phillip A. Talbert announced.
Horacio Torrecillas Urias Jr., 22, of Fresno, is charged with conspiracy to distribute and possess with intent to distribute methamphetamine and fentanyl, conspiracy to distribute and to possess with intent to distribute cocaine and methamphetamine, conspiracy to distribute and to possess with intent to distribute fentanyl, conspiracy to possess with intent to distribute and distribute methamphetamine, conspiracy to possess with intent to distribute and to distribute fentanyl (two counts), conspiracy to possess with intent to distribute and to distribute cocaine, and distribution of fentanyl.
Amadeo Sarabia Jr., 22, of Fresno, is charged with conspiracy to possess with intent to distribute and to distribute fentanyl and possession with intent to distribute fentanyl.
Justin Dwayne Riddle, 34, of Las Cruces, New Mexico, is charged with conspiracy to possess with intent to distribute and distribute methamphetamine.
Alma Garza, 21, of Fresno, is charged with conspiracy to distribute and to possess with intent to distribute cocaine and methamphetamine and distribution of fentanyl.
Juan Valencia Jr., 22, of Fresno, is charged with conspiracy to possess with intent to distribute and to distribute fentanyl and distribution of fentanyl.
Abel Lozano, 28, of Sanger, is charged with possession with intent to distribute methamphetamine.
Henry Cox, 22, of Sanger, is charged with conspiracy to distribute and to possess with intent to distribute fentanyl and attempted distribution of fentanyl.
Alejandro Guzman, 28, of Fresno, is charged with conspiracy to distribute and possess with intent to distribute methamphetamine and fentanyl and possession with intent to distribute methamphetamine and fentanyl.
Erica Ramirez, 22, of Fresno, is charged with conspiracy to distribute and to possess with intent to distribute fentanyl and possession with intent to distribute fentanyl.
Brayan Cruz, 24, of Fresno, is charged with conspiracy to possess with intent to distribute and to distribute fentanyl.
Jacob Valles, 26, of Fresno, is charged with possession with intent to distribute cocaine and fentanyl and possession of a firearm in furtherance of a drug trafficking crime.
Cody Fyfe, 22, of Fresno, is charged with possession with intent to distribute fentanyl.
Christian Harris-Blanchette, 26, of Fresno, is charged with possession with intent to distribute fentanyl.
Marvin Carreno, 23, of Fresno, is charged with possession with intent to distribute fentanyl.
Victor Yair Torrecillas-Urias, 27, of Fresno, is charged with conspiracy to possess with intent to distribute and to distribute cocaine.
Oscar Jaramillo-Cortez, 26, of Fresno, is charged with conspiracy to possess with intent to distribute and to distribute cocaine and possession with intent to distribute cocaine.
Alex Garcia, 23, of Fresno, is charged with distribution of fentanyl.
Agustin Hernandez, 28, of Fresno, is charged with possession with intent to distribute fentanyl.
According to court documents, the investigation began after a series of fentanyl-pill overdoses in the Fresno area. These overdoses were caused by counterfeit oxycodone M30 tablets containing fentanyl, referred to on the street as M30s. Similar to authentic oxycodone M30 tablets, they are small, round, and light blue or green in color with “M” stamped on one side and “30” on the other. The investigation, dubbed “Operation Killer High,” aimed to search for the drug dealers believed to have supplied the toxic pills that caused the recent spike in fentanyl-related overdoses. The operation uncovered a large drug-trafficking ring led by Horacio Torrecillas Urias Jr., the self-proclaimed “M30 king of Fresno.”
According to the criminal complaint, Torrecillas Urias Jr. was obtaining, directly from sources in Mexico, tens of thousands of counterfeit M30 fentanyl pills and large quantities of fentanyl powder, cocaine and methamphetamine. He and his co-defendants were then distributing these illicit narcotics to drug dealers inside and outside of California. During the investigation, federal, state, and local law enforcement agents conducted traffic stops, intercepted packages, and executed residential search warrants that resulted in the recovery of over 55,000 counterfeit M30 fentanyl pills, 6 pounds of fentanyl powder, 10 pounds of methamphetamine, a pound of cocaine, 25 firearms, and hundreds of rounds of ammunition
The case was the result of an investigation by FORT (a multi-agency team composed of Homeland Security Investigations, the Drug Enforcement Administration, and the Fresno Police Department), the U.S. Postal Inspection Service, the Clovis Police Department, the Fresno County Sheriff’s Office, and the Fresno County District Attorney’s Office. The Bakersfield Police Department and the California Highway Patrol assisted in the case. Assistant U.S. Attorneys Justin J. Gilio and Laurel J. Montoya are prosecuting the case.
This case is part of Operation Synthetic Opioid Surge (S.O.S.) a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
If convicted, the defendants each face a statutory penalty range including a minimum of 10 years and a maximum of life in prison and fines up to $1 million to $10 million. 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.
West Sacramento Man Indicted for Illegal Possession of Handgun, Ammunition, and MethamphetamineRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Rudy Tafoya, 54, of West Sacramento, charging him with being a felon in possession of a firearm and ammunition and possession of methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in May 2021, Tafoya was stopped for a traffic violation and found to be in possession of ammunition, a firearm, and methamphetamine. At that time, Tafoya was on supervised release for a previous conviction of being a felon in possession of a firearm. Tafoya is prohibited from possessing firearms or ammunition on account of six prior felony convictions, including two felony crimes of violence.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Yolo County District Attorney’s Office; and the West Sacramento Police Department. Assistant U.S. Attorney Emily Sauvageau is prosecuting the case.
If convicted, Tafoya faces a maximum statutory penalty of 10 years in prison and a $250,000 fine on the ammunition and firearm counts and up to an additional year for the methamphetamine count. Any sentence, however, would be determined at the discretion of the court after considering any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Stockton Man Indicted on Firearms ChargesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Jeffrey James Bray, 36, of Stockton, charging him with being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Bray sold at least six firearms to an undercover agent or confidential source in 2019. During the investigation, Bray also sold over 300 rounds of ammunition. Bray cannot lawfully buy or possess firearms or ammunition himself because he has sustained numerous felony convictions, including evading a police officer, vehicle theft, being a felon in possession of a firearm and ammunition, and twice for second degree burglary.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Yolo County District Attorney’s Office, the California Department of Corrections and Rehabilitation, the Yuba City Police Department, and the Sacramento Police Department. Assistant U.S. Attorney Alstyn Bennett is prosecuting the case.
If convicted, Bray 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 being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Former Water District General Manager Indicted for $25 Million Water Theft and Tax ViolationsRead the Press Release
FRESNO, Calif. — A federal grand jury returned a five-count indictment today against Dennis Falaschi, 75, of Aptos, California, charging him with conspiracy, theft of government property, and filing false tax returns, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Falaschi was the general manager for a public water district in Fresno and Merced Counties near the communities of Dos Palos, Firebaugh, and Los Banos. He exploited a leak in the Delta-Mendota Canal and engineered a way to steal over $25 million in federally owned water.
According to court documents, in 1992, Falaschi was informed that an old, abandoned drain turnout near milepost markers 94.57 and 94.58 on the Delta-Mendota Canal was leaking water from the Delta-Mendota Canal into a parallel canal that the water district controlled. The drain was connected to a standpipe on the bank of the Delta-Mendota Canal that used a gate and valve to redirect water from the Delta-Mendota Canal into the water district’s canal. The gate had been cemented closed years earlier. The cement had since cracked and water was coming through it.
Thereafter, Falaschi instructed an employee to install a new gate inside the standpipe so that the site could be opened and closed on demand. He later instructed the employee to install a lid with a lock on top of the standpipe and an approximate two-foot elbow pipe off the valve of the standpipe that angled down 90 degrees into the water district’s canal. The lid concealed the theft because it prevented people from seeing that the gate inside the standpipe was functional. The elbow pipe further concealed and expedited the theft because it enclosed the water flow from the Delta-Mendota Canal into the water district’s canal and was installed in such a way that it was generally submerged under the water.
Falaschi subsequently instructed employees to use the site to steal federal water from the Delta-Mendota Canal on multiple occasions until the site was discovered in April 2015. He used the proceeds of the theft to pay himself and others exorbitant salaries, fringe benefits, and personal expense reimbursements.
Additionally, Falaschi is charged with filing false tax returns in 2015 through 2017. According to court records, he failed to report over $900,000 in income to the Internal Revenue Service that he received from private water sales.
The case is the product of an investigation by the U.S. Department of the Interior’s Office of Inspector General, the IRS-Criminal Investigation, and the Federal Bureau of Investigation. Assistant U.S. Attorney Joseph Barton is prosecuting the case.
If convicted of theft of government property, Falaschi faces a maximum penalty of 10 years in prison and a fine up to $250,000. If convicted of conspiracy, he faces a maximum penalty of five years in prison and a fine up to $250,000. If convicted of the tax charges, he faces a maximum penalty of three years in prison and a fine up to $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Man Arrested in Placer County Sentenced to over 4 Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — Ricardo Manuel Duran, 37, of San Francisco, was sentenced Tuesday by U.S. District Judge John A. Mendez to four years and three months in prison for being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Oct. 20, 2020, Duran, who was serving a term of supervised release for a previous offense, was arrested in Lincoln. He was found to be in possession of a Smith and Wesson handgun and was further found to be in possession of heroin and methamphetamine. Duran has been convicted of six prior felonies – two of them for being a felon in possession of a firearm – and is prohibited from possessing a firearm.
This case was the product of an investigation by the Lincoln Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Alexis Klein prosecuted the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Stockton Man Sentenced to over 4 Years in Prison for Unlawful Gun PossessionRead the Press Release
SACRAMENTO, Calif. — Anthony West, 46, of Stockton, was sentenced today by U.S. District Judge John A. Mendez to four years and nine months in prison for being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on July 25, 2018, law enforcement officers obtained a warrant to search West’s residence. During that search, officers found a loaded .40 caliber Smith & Wesson pistol in West’s bedroom closet. Prior to the search, West had been convicted of six felony drug offenses.
This case was the product of an investigation by the Stockton Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the San Joaquin County District Attorney’s Office. Assistant U.S. Attorney Brian A. Fogerty prosecuted the case.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Redding Woman Agrees to Plead Guilty to Lying to Federal Agents Regarding Kidnapping and Defrauding the VictimRead the Press Release
SACRAMENTO, Calif. — A Redding woman has signed a plea agreement admitting that she planned and participated in her own hoax kidnapping and agreeing to plead guilty to making materially false statements to FBI agents about the circumstances of her disappearance and committing mail fraud based on her being a kidnapping victim, U.S. Attorney Phillip A. Talbert announced today.
Sherri Papini, 39, of Redding, was charged in a criminal information filed today in the U.S. District Court with thirty-four counts of mail fraud and one count of making false statements. In a plea agreement, also filed today, Papini agreed to plead guilty to a single count of mail fraud and one count of making false statements. Papini was arrested on March 3 based on a criminal complaint filed that day.
The court has not yet scheduled a date for Papini to enter her guilty pleas.
This case is 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 are prosecuting the case.
Papini faces a maximum statutory penalty of five years in prison and a fine up to $250,000 for making false statements to a federal law enforcement officer. She faces a maximum statutory penalty of 20 years in prison and a fine up to $250,000 for the count of mail fraud. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
DC Solar CFO Sentenced to 6 Years in Prison for Billion Dollar Ponzi SchemeRead the Press Release
SACRAMENTO, Calif. — Robert A. Karmann, 55, of Clayton, was sentenced today to six years in prison and ordered to pay $624 million in restitution for participating in a billion-dollar Ponzi scheme involving DC Solar, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Karmann was a certified public accountant (CPA) that DC Solar hired first as its Controller in 2014, and later as its Chief Financial Officer. DC Solar manufactured mobile solar generator units (MSG), which were solar generators that were mounted on trailers. The MSGs were sold to investors who were given generous federal tax credits, and who were falsely led to believe that there was extensive demand from third parties to lease these MSGs to create a revenue stream. In fact, that demand was virtually non-existent. DC Solar had instead become a fraud scheme that took new investor money to pay older investors, using circular transactions that were fraudulently disguised to look like real third-party lease revenue.
According to court documents, Karmann and the other co-conspirators, including company founder Jeff Carpoff, carried out an accounting and lease revenue fraud using the Ponzi-like circular payments. Carpoff and others lied to investors about the market demand for DC Solar’s MSGs and its revenue from leasing to third parties. Then Karmann, Carpoff, and others covered up these lies with techniques including false financial statements, false operation reports, and false written summaries of the supposed revenue from leasing MSGs to third parties. In 2016, 2017, and 2018, Karmann oversaw the hidden circular transfers of funds, delivered false financial information to another co-conspirator for use in tax returns and tax documents, provided false compiled financial statements to an investor representative for multiple funds, and provided other false information to investor representatives about DC Solar’s third-party leasing. Karmann also directed others in DC Solar’s accounting department, including one subordinate whom Karmann told to “make it up” when responding to a customer request for location reports on their MSGs. During these years that Karmann knowingly joined in the fraud, DC Solar pulled in over $600 million in investor funds as a result of this scheme.
On Nov. 9, 2021, Jeff Carpoff was sentenced to 30 years in prison and ordered to pay $790.6 million in restitution for conspiracy to commit wire fraud and money laundering. His wife, Paulette Carpoff, 47, has pleaded guilty to conspiracy to commit an offense against the United States and money laundering, and is scheduled to be sentenced on May 10, 2022.
On Nov. 16, 2021, Joseph W. Bayliss was sentenced to three years in prison and ordered to pay $481.3 million in restitution for securities fraud and conspiracy in connection with the DC Solar scheme.
Other defendants have pleaded guilty to criminal offenses related to the fraud scheme and are scheduled for sentencing: Alan Hansen, 50, of Vacaville, is scheduled to be sentenced on April 26, 2022; Ronald J. Roach, 54, of Walnut Creek, is scheduled to be sentenced on May 3, 2022; and Ryan Guidry, 44, of Pleasant Hill is scheduled to be sentenced on June 7, 2022.
This case is the product of an investigation by the Federal Bureau of Investigation, IRS Criminal Investigation, and the Federal Deposit Insurance Corporation Office of Inspector General. Assistant U.S. Attorneys Christopher S. Hales and Kevin C. Khasigian are prosecuting the case.
Paulette Carpoff, Hansen, and Guidry face a maximum statutory penalty of 15 years in prison. Roach faces a maximum statutory penalty of 10 years prison. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Fresno Man Sentenced to over 11 Years in Prison for Receipt and Distribution of Child PornographyRead the Press Release
FRESNO, Calif. — Steven Dale Jones, 43, of Fresno, was sentenced today to 11 and a half years in prison by U.S. District Judge Dale A. Drozd for receipt and distribution of child pornography, U.S. Attorney Phillip A. Talbert announced.
The sentence imposed includes a term of supervised release of 20 years during which Jones’s access to minors, computers, and the internet will be restricted. He will also be required to register as a sex offender. The court has scheduled a hearing for June 27, 2022, to address restitution to victims.
According to court documents, Jones was detected by law enforcement investigators when he was sharing numerous child pornography files on a BitTorrent file-sharing network in December 2016. He admitted to investigating agents that he had used file-sharing programs for several years to obtain child pornography. He admitted in court, when pleading guilty, that between January 2012 and April 2017, he used a BitTorrent program and the TOR network to search for and download thousands of images of child pornography.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney David Gappa and Child Exploitation and Obscenity Section Trial Attorneys Alicia Bove and 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.
Former Chief Operating Officer of Davis Bio-Pesticide Company Sentenced to 2 Years in Prison for Conspiracy to Commit Mail, Wire, and Securities FraudRead the Press Release
SACRAMENTO, Calif. — Hector Absi, 51, of Las Vegas, Nevada, was sentenced today to two years in prison for conspiracy to commit mail fraud, wire fraud, and securities fraud, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Absi is the former head of the sales department of Marrone Bio Innovations Inc. (MBI), a company headquartered in Davis that produces “bio-based” pesticides. Absi also served as MBI’s Chief Operating Officer from January 2014 until his resignation in August 2014. MBI is a publicly traded company; its stock trades on the NASDAQ exchange under the ticker symbol “MBII.” As a publicly traded company, it is required to file quarterly and annual reports with the Securities and Exchange Commission (SEC). In its reports, MBI stated that it recorded revenue in accordance with generally accepted accounting principles (GAAP).
On Oct. 17, 2019, Absi pleaded guilty conspiracy to commit mail fraud, wire fraud, and securities fraud. According to his plea agreement, in order to increase sales, Absi sold MBI products to customers with side agreements that offered “inventory protection” under which MBI agreed to either repurchase the product from the customer or continue the date by which the customer would need to make full payment for the product. Under GAAP, revenue from sales that include such agreements cannot be recognized on the company’s books at the time of the sales. Between March 2013 and July 2014, Absi conspired with at least one other MBI employee to misrepresent to MBI’s accounting department, its external auditors, and the investing public that MBI had made no sales under such terms. By concealing the practice, Absi caused MBI to report a doubling of its revenue in 2013 in comparison to 2012. Absi also conspired to backdate the delivery of certain shipments of MBI’s products to enhance MBI’s reported revenues for the quarter. Absi received a performance-based bonus and exercised stock options during a time when MBI’s inflated revenue figures were being reported.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Lee S. Bickley prosecuted the case.
A restitution hearing is scheduled for June 13, 2022.
Former Caltrans Contract Manager Pleads Guilty to Bid Rigging and BriberyRead the Press Release
A former contract manager for the California Department of Transportation (Caltrans) pleaded guilty today for his role in a bid-rigging and bribery scheme involving Caltrans improvement and repair contracts.
According to a plea agreement filed today in the U.S. District Court for the Eastern District of California in Sacramento, Choon Foo “Keith” Yong and his co-conspirators engaged in a conspiracy, from early 2015 through late 2019, to thwart the competitive bidding process for Caltrans contracts to ensure that companies controlled by Yong’s co-conspirators submitted the winning bid and would be awarded the contract. Yong is also charged with accepting bribes while working for Caltrans, a California state agency that receives significant federal funding. Yong received the bribes in the form of cash payments, wine, furniture and remodeling services on his home. The total value of the payments and benefits Yong received exceeded $800,000. In addition to his guilty plea, Yong agreed to pay restitution and cooperate with the ongoing investigation.
“Today’s guilty plea is the first in the Antitrust Division’s ongoing investigation into bribery and bid rigging at Caltrans,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Given the Infrastructure Investment and Jobs Act’s $1.2 trillion authorization and the critical role of transportation infrastructure in our nation, rooting out bid-rigging schemes that cheat the competitive bidding process remains a top priority for the division and its Procurement Collusion Strike Force partners.”
Yong received more than $800,000 of bribes in the form of cash payments, wine, furniture, and remodeling services on his home.
Yong is scheduled to be sentenced on Aug. 22 by U.S. District Judge Kimberly J. Mueller. For the bid-rigging conspiracy, Yong faces a maximum statutory penalty of 10 years of incarceration and a fine of up to $1 million or twice the gross pecuniary gain or twice the gross pecuniary loss resulting from the offense. For bribery concerning programs receiving federal funds, Yong faces a maximum statutory penalty of 10 years of incarceration and a fine of up to $250,000 or twice the gross pecuniary gain or twice the gross pecuniary loss resulting from the offense. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and U.S. Sentencing Guidelines.
Today’s guilty plea is the first to result from a joint investigation being conducted by the Antitrust Division’s San Francisco office, the U.S. Attorney’s Office for the Eastern District of California, and the FBI’s Sacramento Field Office as part of the Justice Department’s Procurement Collusion Strike Force (PCSF).
In November 2019, the Department of Justice created the Procurement Collusion Strike Force (PCSF), a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government – federal, state and local. In fall 2020, the Strike Force expanded its footprint with the launch of PCSF: Global, designed to deter, detect, investigate and prosecute collusive schemes that target government spending outside of the United States. To learn more about the PCSF, or to report information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to defense-related spending.
Folsom Man Pleads Guilty to Scheme Involving the Sale of Stolen MacBooksRead the Press Release
SACRAMENTO, Calif. — Philip James, 35, of Folsom, pleaded guilty today to transporting stolen property interstate, U.S. Attorney Phillip A. Talbert announced.
According to court documents, from October 2015 through June 2020, James purchased almost 1,000 stolen Apple MacBooks from multiple individuals, including Cory Beck, Eric Castaneda, and Jonas Jarut. After purchasing the MacBooks, James generally resold and shipped them from Folsom to buyers located outside California.
Beck worked in the information technology department at an electric vehicle and clean energy company based in Palo Alto, “Company 1.” Beginning in October 2015, Beck stole new MacBooks from Company 1 and sold them to James. In total, James purchased at least 100 MacBooks that Beck stole from Company 1.
Eric Castaneda’s sister, Patricia Castaneda, worked in the School of Humanities and Sciences at a private university in Stanford, California, “University 1.” Beginning in February 2016, Patricia Castaneda stole new MacBooks from University 1 and gave them to Eric Castaneda to sell to James. In total, James purchased from Eric Castaneda at least 800 MacBooks that Patricia Castaneda stole from University 1.
Jarut worked as a database administrator in the Graduate School of Education at a public university in Berkeley, “University 2.” Beginning in March 2019, Jarut stole new MacBooks from University 2 and sold them to James. In total, James purchased at least 90 MacBooks Jarut stole from University 2.
As part of his plea agreement, James agreed to pay restitution as follows: $2,283,155 to University 1; $256,485 to Company 1; and $209,057 to University 2.
This case is a product of an investigation by the IRS-Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorney Matthew Thuesen is prosecuting the case.
Chief U.S. District Judge Kimberly J. Mueller is scheduled to sentence James on July 25, 2022. Jarut faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the court’s discretion after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
In separate cases, Eric Castaneda, Patricia Castaneda, Beck, and Jarut pleaded guilty for their roles in the scheme.
Sacramento Felon Indicted for Illegal Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment Thursday against Marcus Lawrence Weber, 26, of Sacramento, charging him with being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Weber had four pending felony arrest warrants when officers located him driving in Roseville. When they tried to pull him over to arrest him, Weber led them on a car chase. Eventually, Weber stopped his car and fled on foot, wearing a black ski mask. He ran into a creek bed, where he dropped a Ruger 5.7 firearm and was eventually arrested. The firearm was loaded with an extended magazine and had a round in the chamber. Weber is prohibited from possessing firearms or ammunition because he has previously been convicted of felony offenses.
This case is 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, with the assistance of the Federal Bureau of Investigation’s Safe Streets Task Force. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.
If convicted, Weber 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 being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.