Eastern District of California
Press releases recorded for this federal judicial district.
Jury Finds Sacramento Felon Guilty of Possessing Multiple FirearmsRead the Press Release
SACRAMENTO, Calif. — A federal jury found Dezmaighne McClain, 31, of Sacramento, guilty on Wednesday of three counts of being a felon in possession of firearms and ammunition, U.S. Attorney Phillip A. Talbert announced.
According to court documents, McClain, while on felony parole, sold a firearm to an individual on July 15, 2019, soon after meeting the person at the parole office. McClain sold the same individual another firearm on July 30, 2019, and continued to discuss potential firearms sales after that date. Evidence at trial showed that McClain also sold guns to others while on parole. McClain is prohibited from possessing firearms and ammunition based on his prior felony convictions, which include robbery, assault, and illegal possession of a firearm. During a search of McClain’s residence, agents found more firearms, ammunition, and an assault rifle style “ghost” gun hidden in the garage.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Michele Beckwith and Audrey Hemesath are prosecuting the case.
McClain is scheduled to be sentenced by U.S. District Judge William B. Shubb on July 11, 2022. McClain faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for each count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is 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 State Employee Sentenced to Two Years in Prison for Role in $2 Million Scheme to Defraud the Office of AIDSRead the Press Release
SACRAMENTO, Calif. — Christine M. Iwamoto, 48, of Sacramento, was sentenced today to two years in prison and ordered to pay $481,200 in restitution for wire fraud and conspiracy to commit money laundering in relation to a scheme to divert funds from the California Department of Public Health, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Iwamoto was employed by the Office of AIDS within the California Department of Public Health until March 2018. The Office of AIDS is responsible for working on behalf of the State of California to combat the HIV and AIDS epidemic.
Between December 2017 and November 2018, Iwamoto participated in a scheme that was coordinated by Schenelle Flores, also employed at the Office of AIDS, to defraud the Office of AIDS. Flores, Iwamoto, other participants in the scheme, and their families and friends obtained at least $2 million in personal benefits, including cash and purchased items.
According to court documents, as part of the scheme, Flores directed a state contractor to make payments allegedly on behalf of the Office of AIDS and caused the contractor to charge those payments to the state. Flores caused the contractor to pay for personal expenses on its debit cards, order gift cards for personal use, and pay false invoices to shell companies for services allegedly provided to the Office of AIDS.
According to court documents, Iwamoto set up a shell company and coordinated with Flores to submit invoices to the state contractor. Those invoices falsely claimed that Iwamoto’s company had provided various consulting and meeting facilitation services to the Office of AIDS. Iwamoto received $450,000 in payments as a result of the invoices. Iwamoto then gave thousands of dollars in cash and blank checks to another employee of the Office of AIDS who was participating in the scheme. Iwamoto also participated in obtaining the gift cards from the state contractor and received hundreds of the gift cards for her personal use.
This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the California Department of Public Health and the California Highway Patrol. Assistant U.S. Attorneys Miriam R. Hinman and Christopher S. Hales are prosecuting the case.
On March 3, 2022, Flores was sentenced to 70 months in prison and ordered to pay over $2 million in restitution in a related case, United States v. Flores, 2:21-cr-025 TLN.
Justice Department Announces Court-Authorized Disruption of Botnet Controlled by the Russian Federation’s Main Intelligence Directorate (GRU)Read the Press Release
Operation Copied and Removed Malware Known as “Cyclops Blink” from the Botnet’s Command-And-Control Devices, Disrupting the GRU’s Control Over Thousands of Infected Devices Worldwide. Victims Must Take Additional Steps to Remediate the Vulnerability and Prevent Malicious Actors From Further Exploiting Unpatched Devices.
The Justice Department today announced a court-authorized operation, conducted in March 2022, to disrupt a two-tiered global botnet of thousands of infected network hardware devices under the control of a threat actor known to security researchers as Sandworm, which the U.S. government has previously attributed to the Main Intelligence Directorate of the General Staff of the Armed Forces of the Russian Federation (the GRU). The operation copied and removed malware from vulnerable internet-connected firewall devices that Sandworm used for command and control (C2) of the underlying botnet. Although the operation did not involve access to the Sandworm malware on the thousands of underlying victim devices worldwide, referred to as “bots,” the disabling of the C2 mechanism severed those bots from the Sandworm C2 devices’ control.
“This court-authorized removal of malware deployed by the Russian GRU demonstrates the department’s commitment to disrupt nation-state hacking using all of the legal tools at our disposal,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “By working closely with WatchGuard and other government agencies in this country and the United Kingdom to analyze the malware and to develop detection and remediation tools, we are together showing the strength that public-private partnership brings to our country’s cybersecurity. The department remains committed to confronting and disrupting nation-state hacking, in whatever form it takes.”
“Through close collaboration with WatchGuard and our law enforcement partners, we identified, disrupted and exposed yet another example of the Russian GRU’s hacking of innocent victims in the United States and around the world,” said U.S. Attorney Cindy K. Chung for the Western District of Pennsylvania. “Such activities are not only criminal but also threaten the national security of the United States and its allies. My office remains committed to working with our partners in the National Security Division, the FBI, foreign law enforcement agencies and the private sector to defend and maintain our nation’s cybersecurity.”
“This operation is an example of the FBI’s commitment to combatting cyber threats through our unique authorities, capabilities, and coordination with our partners,” said Assistant Director Bryan Vorndran of the FBI’s Cyber Division. “As the lead domestic law enforcement and intelligence agency, we will continue pursuing cyber actors that threaten the national security and public safety of the American people, our private sector partners and our international partners.”
“The FBI prides itself on working closely with our law enforcement and private sector partners to expose criminals who hide behind their computer and launch attacks that threaten Americans’ safety, security and confidence in our digitally connected world,” said Special Agent in Charge Mike Nordwall of the FBI’s Pittsburgh Field Office. “The FBI has an unwavering commitment to combat and disrupt Russia’s efforts to gain a foothold inside U.S. and allied networks.”
On Feb. 23, the United Kingdom’s National Cyber Security Centre, the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency, the FBI and the National Security Agency released an advisory identifying the Cyclops Blink malware, which targets network devices manufactured by WatchGuard Technologies Inc. (WatchGuard) and ASUSTek Computer Inc. (ASUS). These network devices are often located on the perimeter of a victim’s computer network, thereby providing Sandworm with the potential ability to conduct malicious activities against all computers within those networks. As explained in the advisory, the malware appeared to have emerged as early as June 2019, and was the apparent successor to another Sandworm botnet called VPNFilter, which the Department of Justice disrupted through a court-authorized operation in 2018.
The same day as the advisory, WatchGuard released detection and remediation tools for users of WatchGuard devices. The advisory and WatchGuard’s guidance both recommended that device owners deploy WatchGuard’s tools to remove any malware infection and patch their devices to the latest versions of available firmware. Later, ASUS released its own guidance to help compromised ASUS device owners mitigate the threat posed by Cyclops Blink malware. The public and private sector efforts were effective, resulting in the successful remediation of thousands of compromised devices. However, by mid-March, a majority of the originally compromised devices remained infected.
Following the initial court authorization on March 18, the department’s operation was successful in copying and removing the malware from all remaining identified C2 devices. It also closed the external management ports that Sandworm was using to access those C2 devices, as recommended in WatchGuard’s remediation guidance (a non-persistent change that the owner of an affected device can reverse through a device restart). These steps had the immediate effect of preventing Sandworm from accessing these C2 devices, thereby disrupting Sandworm’s control of the infected bot devices controlled by the remediated C2 devices. However, WatchGuard and ASUS devices that acted as bots may remain vulnerable to Sandworm if device owners do not take the WatchGuard and ASUS recommended detection and remediation steps. The department strongly encourages network defenders and device owners to review the Feb. 23 advisory and WatchGuard and ASUS releases.
The operation announced today leveraged direct communications with the Sandworm malware on the identified C2 devices and, other than collecting the underlying C2 devices’ serial numbers through an automated script and copying the C2 malware, it did not search for or collect other information from the relevant victim networks. Further, the operation did not involve any FBI communications with bot devices.
Since prior to the Feb. 23 advisory, the FBI has been attempting to provide notice to owners of infected WatchGuard devices in the United States and, through foreign law enforcement partners, abroad. For those domestic victims whose contact information was not publicly available, the FBI has contacted providers (such as a victim’s internet service provider) and has asked those providers to provide notice to the victims. As required by the terms of the court authorization, the FBI has provided notice to the owners of the domestic C2 devices from which the FBI copied and removed the Cyclops Blink malware.
The efforts to disrupt the Cyclops Blink botnet were led by the FBI’s Pittsburgh, Atlanta and Oklahoma City Field Offices, the FBI Cyber Division, the National Security Division’s Counterintelligence and Export Control Section, and the U.S. Attorney’s Office for the Western District of Pennsylvania. Assistance was also provided by the Criminal Division’s Computer Crime and Intellectual Property Section and Office of International Affairs, as well as the U.S. Attorney’s Office for the Eastern District of California.
If you believe you have a compromised device, please contact your local FBI Field Office for assistance. The FBI continues to conduct a thorough and methodical investigation into this cyber incident.
Jury Returns Guilty Verdict in Yosemite National Park Sexual AssaultRead the Press Release
FRESNO, Calif. — After a three-day trial, a jury found Charles Porter, 31, a resident of Yosemite National Park and Pomona, guilty today of attempted aggravated sexual abuse, abusive sexual contact, assault with intent to commit aggravated sexual abuse, assault with intent to commit abusive sexual contact, and assault by striking or wounding, U.S. Attorney Phillip A. Talbert announced.
According to evidence presented at trial, on April 14, 2020, in Yosemite National Park, Porter, an Aramark employee working and residing in Yosemite Valley, entered the victim’s cabin in employee housing at night while the victim was asleep and began to sexually assault the victim. The victim fought back, and during the struggle, Porter attempted to penetrate the victim. The victim was able to reach the door of his one-room cabin to call for help. Nearby neighbors heard his call for help, and they responded and physically removed Porter.
This case is the product of an investigation by National Park Service Special Agents and Law Enforcement Rangers. Assistant U.S. Attorneys Katherine E. Schuh and Laura Jean Berger are prosecuting the case.
Porter is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on July 8, 2022. Porter faces a maximum statutory penalty of life in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Vallejo Woman Agrees to Resolve False Claims Act Allegations Involving Food Stamp and Unemployment Mortgage Assistance ProgramsRead the Press Release
SACRAMENTO, Calif. — Dorothy Natividad, of Vallejo, has paid $116,900 in damages and civil penalties to resolve allegations that she knowingly made false statements to obtain benefits from both the Food Stamp/Supplemental Nutrition Assistance Program (SNAP) and the “Keep Your Home California” Unemployment Mortgage Assistance Program, U.S. Attorney Phillip A. Talbert announced.
The “Keep Your Home California” Unemployment Mortgage Assistance Program (UMA) was a federally funded program to help California homeowners struggling to pay their mortgages due to financial hardships. Keep Your Home California was funded by the Hardest Hit Fund, which was established in 2010 to provide targeted aid to families in states hit hard by the economic and housing market downturn caused by the financial crisis. This settlement resolves allegations that between April 2014 and August 2016, Natividad concealed more than $100,000 of household income that would have disqualified her from receiving aid through this mortgage assistance program. The United States similarly alleged that Natividad concealed income that would have disqualified her from participation in SNAP.
“The False Claims Act is a valuable tool for assuring that public assistance program funds are expended only on eligible individuals,” said U.S. Attorney Talbert. “This settlement demonstrates how the pursuit of civil remedies under the FCA and interagency cooperation can be used to recover fraudulently obtained benefits that should have gone to truly vulnerable families.”
“Natividad lied to get thousands of federal dollars for both mortgage assistance and SNAP by concealing income that would have disqualified her from receiving aid. SIGTARP, USDA and the United States Attorney’s Office have brought justice for a defendant who defrauded the Hardest Hit Fund, a federal program that helped unemployed homeowners stay in their homes,” said Melissa Bruce, Deputy Special Inspector General for the Troubled Asset Relief Program. “She has agreed to and repaid the improperly obtained funds as well as a penalty.”
“The accurate accounting and administration of federal feeding programs is essential to ensuring those in need of assistance receive it,” said Dustin Cladis, Special Agent in Charge, USDA OIG. “This settlement is a clear message that our agency along with our federal partners will protect the integrity of USDA programs and pursue those who submit false claims.”
The civil settlement resulted from a joint investigation by the United States Department of Agriculture Office of the Inspector General (USDA OIG) and the Office of the Inspector General for the Troubled Asset Relief Program (SIGTARP). Assistant U.S. Attorney Emilia P. E. Morris handled the case for the United States. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Two Individuals Sentenced for Conspiracy Charges Involving the Sale of Fraudulent Identity Documents on the DarknetRead the Press Release
SACRAMENTO, Calif. — An Italian national and a U.S. national, both New York residents, were sentenced on charges of conspiring to transfer false identification documents on the darknet marketplaces AlphaBay Market and Dream Market. According to court documents, from at least from May 2015 until October 2017, defendants Andrea Alessandrini and Evan Hayes sold New York state driver’s licenses, fraudulent identity information for individuals (including fake social security numbers and birthdates), credit card holograms, and ATM skimmers on the darknet, all in exchange for cryptocurrency.
On April 4, 2022, the U.S. District Court for the Eastern District of California sentenced Evan Hayes, 28, of Buffalo, New York, to 18 months in prison, and on April 5, 2021, Alessandrini, 34, of Italy, was sentenced to 20 months in prison, for their roles in the charged identity fraud conspiracy. Alessandrini and Hayes pleaded guilty to the offenses on Nov. 16, 2020, and July 12, 2021, respectively.
According to court filings and statements made in connection with the defendants’ guilty pleas, Alessandrini created and operated the vendor account PlasticA on numerous darknet marketplaces, including AlphaBay Market and Dream Market. With his business partner, Hayes, Alessandrini sold over 300 fraudulent New York identity cards, four social security cards, 15 false birth certificates, 28 state identity card holograms, one ATM skimmer, and 410 “farmed” (i.e., stolen or fraudulently produced) identity packages to buyers in the Eastern District of California and elsewhere. Alessandrini operated the primary darknet accounts used to make these sales, while Hayes produced and mailed most of the fraudulent documents sold. On AlphaBay alone, Alessandrini and Hayes conducted between $250,000 and $400,000 worth of transactions between May 2015 and October 2017.
In connection with the case, the United States seized evidence concerning the wide range of fraudulent identity documents created and sold to buyers throughout the United States, evidence which has been shared with a range of law enforcement agencies for use in additional investigations. Finally, the United States forfeited the proceeds of the offense conduct, which included approximately $134,881 in U.S. currency, 14.78 bitcoins, 285 ounces of silver, 4 ounces of gold, and 22 prepaid Visa gift cards.
The FBI and the U.S. Postal Inspection Service investigated the case.
Senior Counsel Louisa K. Marion of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Paul Hemesath of the Eastern District of California prosecuted the case.
Repeat Offender Pleads Guilty to Knowingly Possessing Visual Depictions of Children Engaging in Sexually Explicit ConductRead the Press Release
SACRAMENTO, Calif. — William Richter, 38, of Shasta County, pleaded guilty today to knowing possession of visual depictions of the sexual exploitation of minors, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Richter had been convicted of the same offense and was on federal supervised release when he committed this new crime on July 23, 2020. On June 6, 2013, Richter was sentenced to 51 months in prison in his prior case. In July of 2020, Richter was on supervised release when a law enforcement officer pulled over Richter for a traffic violation. A smart phone was discovered hidden in Richter’s driver’s seat cover. According to the terms of his supervised release, Richter was not allowed to use the internet or to possess a smart phone. Forensic analysis revealed that Richter possessed at least 51 explicit photographs of pre-pubescents on his phone, one of which depicted sexual abuse of an infant. The victims in the images came from locations outside of California, such as the Philippines, Germany, Russia, Ukraine, Ecuador, Slovenia, Sweden, Pennsylvania, Alabama, Virginia, Florida, Tennessee, Utah, and Delaware. Richter had installed programs such as Kik messenger, VLC medial player, the TOR browser, Yo Live, Telegram and Mega on his unauthorized phone, and accessed websites which likely hosted sexually explicit conduct.
This case is the product of an investigation by Homeland Security Investigations and the Shasta County Sheriff’s Office. Assistant U.S. Attorney Christina McCall is prosecuting the case.
Richter is scheduled to be sentenced by U.S. District Judge John A. Mendez on July 12, 2022. He faces a maximum statutory penalty of 20 years in prison, and a mandatory minimum sentence of 10 years, due to his prior conviction for this same offense. 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.
ESI Energy LLC, Wholly Owned Subsidiary of Nextera Energy Resources LLC, Is Sentenced After Pleading Guilty to Killing and Wounding Eagles in Its Wind Energy Operations, in Violation of the Migratory Bird Treaty ActRead the Press Release
SACRAMENTO, Calif. – ESI Energy Inc. (ESI) was sentenced today in Cheyenne, Wyoming, for violations of the Migratory Bird Treaty Act (MBTA), announced Assistant Attorney General Todd Kim for the Justice Department’s Environment and Natural Resources Division and U.S. Attorney L. Robert Murray for the District of Wyoming.
ESI is a wholly owned subsidiary of NextEra Energy Resources LLC, which in turn is a wholly owned subsidiary of NextEra Energy Inc. ESI owns other companies, many of which operate wind energy generation facilities throughout the United States, including in Wyoming, New Mexico, Arizona, California, Colorado, Illinois, North Dakota and Michigan, as well as other states.
ESI pleaded guilty to three counts of violating the Migratory Bird Treaty Act (MBTA), each based on the documented deaths of golden eagles due to blunt force trauma from being struck by a wind turbine blade at a particular facility in Wyoming or New Mexico, where ESI had not applied for the necessary permits. ESI further acknowledged that at least 150 bald and golden eagles have died in total since 2012, across 50 of its 154 wind energy facilities. 136 of those deaths have been affirmatively determined to be attributable to the eagle being struck by a wind turbine blade.
The court sentenced ESI, pursuant to a plea agreement, to a fine of $1,861,600, restitution in the amount of $6,210,991, and a five-year period of probation during which it must follow an Eagle Management Plan (EMP). The EMP requires implementation of up to $27 million (during the period of probation; more thereafter if a written extension is signed) of measures intended to minimize additional eagle deaths and injuries, and payment of compensatory mitigation for future eagle deaths and injuries of $29,623 per bald or golden eagle. ESI also must over the next 36 months apply for permits for any unavoidable take of eagles at each of 50 of its facilities where take is documented or, in the case of four facilities not yet operational, predicted.
“The Justice Department will enforce the nation’s wildlife laws to promote Congress’s purposes, including ensuring sustainable populations of bald and golden eagles, and to promote fair competition for companies that comply,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “For more than a decade, ESI has violated those laws, taking eagles without obtaining or even seeking the necessary permit. We are pleased to see ESI now commit to seeking such permits and ultimately ceasing such violations.”
“Wyoming is graced with abundant natural resources – including both eagles and strong winds,” said U.S. Attorney L. Robert Murray for the District of Wyoming. “The sentencing today shows our commitment to both maintaining and making sustainable use of our resources. It also ensures a level playing field for business in Wyoming and ensures those receiving federal tax credits are complying with federal law.”
“The U.S. Fish and Wildlife Service (USFWS) has a long history of working closely with the wind power industry to identify best practices in avoiding and minimizing the impacts of land-based wind energy facilities on wildlife, including eagles,” said Edward Grace, Assistant Director of the USFWS’ Office of Law Enforcement. “This agreement holds ESI and its affiliates accountable for years of unwillingness to work cooperatively with the Service and their blatant disregard of wildlife laws, and finally marks a path forward for the benefit of eagles and other wildlife resources entrusted to the Service’s stewardship.”
“This prosecution and the restitution it secures will protect the ecologically vital and majestic natural resources of our bald eagle and golden eagle populations,” said U.S. Attorney Phillip A. Talbert for the Eastern District of California. “California has been awarded more than $4.6 million in restitution under this plea agreement for the deaths of at least 92 eagles within the state caused by the defendant and affiliated companies.”
The MBTA prohibits the “taking” of migratory birds, including bald and golden eagles, without a permit from the U.S. Fish and Wildlife Service of the Department of the Interior. “Take” is defined by regulation to mean “to pursue, hunt, shoot, wound, kill, trap, capture or collect” or to attempt to do so.
Bald and golden eagles are also protected under the Bald and Golden Eagle Protection Act (the Eagle Act) which, like the MBTA, prohibits killing and wounding eagles without a permit from USFWS. USFWS is authorized to issue such eagle take permits (ETPs) only where: (1) the predicted take is compatible with the preservation of bald and golden eagles; (2) it is necessary to protect an interest in a particular locality; (3) the take is associated with, but not the purpose of, the activity; and (4) the take could not practicably be avoided. Permit applicants are required to avoid and minimize take to the maximum extent practicable, and to pay compensatory mitigation for unavoidable takes.
According to documents filed in court, it is the government’s position that ESI’s conduct violated both the Eagle Act and the MBTA, but the government accepted the company’s guilty plea to only MBTA counts due in large part to ESI’s agreement to apply for permits at 50 facilities and its prior efforts to minimize and mitigate for eagle fatalities.
ESI’s and its affiliated companies’ actions in Wyoming and New Mexico were taken under an admitted nationwide posture and alleged corporate policy of not applying for ETPs.
According to the information filed in this case:
- ESI and its affiliates deliberately elected not to apply for or obtain any ETP intended to ensure the preservation of bald and golden eagles, and instead chose to construct and operate facilities it knew would take eagles, and in fact took eagles, without any permits authorizing that take.
- Because ESI did not seek any ETPs, it avoided any immediate federal obligation to avoid and minimize eagle take to the maximum degree practicable and to pay for compensatory mitigation for the eagle deaths.
- Because some other wind energy companies (1) altered proposed operations as required to avoid and minimize take levels to the maximum degree practicable, (2) applied for ETPs, (3) obtained ETPs that in some cases were impacted by take levels caused by ESI’s unpermitted facilities, and/or (4) paid mitigation for eagle takings, ESI, by not doing these things, gained a competitive advantage relative to those wind energy companies.
- ESI and its affiliates began commercial operations at new facilities on a schedule intended to meet, among other things, power purchase agreement commitments and qualifying deadlines for particular tax credit rates for renewable energy, and with production amounts not impacted by avoidance and minimization measures that might have been required under an eagle take permit. ESI and its affiliates received hundreds of millions of dollars in federal tax credits for generating electricity from wind power at facilities that it operated, knowing that multiple eagles would be killed and wounded without legal authorization, and without, in most instances, paying restitution or compensatory mitigation.
According to documents filed in court, between 2018 and 2019, ESI authorized subsidiary Cedar Springs Transmission LLC (CST) to develop a multi-facility commercial wind power project in Converse County, Wyoming, consisting of the Cedar Springs I, II and III wind power facilities (collectively, the project).
On March 28, 2019, USFWS informed the defendant, through a letter to its agents, that Cedar Springs I and II, based on CST’s consultant’s calculations, could result in the collision mortality of 44 golden eagles and 23 bald eagles over the first five years of operations, and recommended that, because of the unusually high number of occupied golden eagle nests, the proposed wind facilities not be built. USFWS further stated that, if the facilities were built, the company should apply for an ETP under the Eagle Act as soon as possible. The defendant continued the development of the Cedar Springs facilities.
On July 17, 2019, representatives of CST met with USFWS representatives. During that meeting, USFWS recommended that, consistent with the recommendation made by USFWS in February, the wind project not be constructed due to the risk of avian fatalities. USFWS also recommended that, if the wind project was built, the project should implement seasonal curtailment during daylight hours. The defendant did not implement the recommended curtailment.
Between Sept. 10 and Sept. 23, 2019, USFWS sent additional letters to the defendant’s agents, each noting that the defendant’s parent company had documented that the project was anticipated to kill eagles and recommending that the facilities apply for an ETP. USFWS reiterated for the third time its recommendation that a wind project should not be constructed in the proposed area for the Cedar Springs project.
On or about Sept 28, 2020, the defendant’s affiliates began some turbine operations at Cedar Springs II. Between approximately Nov. 29, 2020, and Dec. 1, 2020, two golden eagle carcasses were found near wind turbines at Cedar Springs II (after which it was sold).
On or about Dec. 6, 2020, the defendant authorized the commercial operation of Cedar Springs I to commence. Between April 2021 and January 2022, seven golden eagle carcasses were found near wind turbines at Cedar Springs I.
On or about Dec. 15, 2020, the defendant authorized the commercial operation of Cedar Springs III to commence. On approximately Jan. 30, 2022, a golden eagle carcass was found near a wind turbine at Cedar Springs III.
Between 2018 and 2019, ESI authorized a subsidiary, Roundhouse Renewable Energy LLC (RRE), to develop a commercial wind power facility in Laramie County, Wyoming.
In a letter dated March 28, 2019, USFWS stated that, based on RRE’s consultant’s calculations, Roundhouse could result in the collision mortality of 19 golden eagles and 4 bald eagles over the first five years of operation, and recommended that RRE apply for an ETP under the Eagle Act. The defendant continued the development of Roundhouse.
In a letter dated Aug. 27, 2019, USFWS provided recommendations on opportunities to avoid and minimize impacts to eagles using the available data. USFWS again stated that the facility was predicted to take eagles even if all USFWS recommendations were implemented, however, and recommended that an ETP be sought.
On June 12, 2020, the defendant authorized the commercial operation of Roundhouse to commence. Between approximately Sept. 17, 2020, and April 17, 2021, four golden eagle carcasses were found near wind turbines at Roundhouse.
In 2003, ESI authorized a subsidiary, FPL Energy New Mexico Wind LLC (NMW), to begin operations at a commercial wind power facility in De Baca and Quay Counties, New Mexico. On or about Dec. 29, 2020, two golden eagle carcasses were found near a wind turbine at NMW.
No ETP was sought by or issued to ESI in connection with the operations or repowering of any of the above wind power facilities.
This case was investigated by the U.S. Fish and Wildlife Service Office of Law Enforcement. The prosecutions were handled by the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division with assistance from the U.S. Attorneys’ Offices for the Eastern District of California, the District of Wyoming and the Northern District of California.
“M30 King of Fresno” and 17 Members of His Drug Trafficking Ring Charged with Federal Offenses Following Investigation into a String of OverdosesRead the Press Release
FRESNO, Calif. — U.S. Attorney Phillip A. Talbert and Homeland Security Investigations Special Agent in Charge Tatum King announced the results of an investigation into fentanyl-related overdoses in the Fresno area, which resulted in charges against of a total of 18 drug traffickers, charging them with trafficking fentanyl powder, fentanyl pills, cocaine, and methamphetamine.
“Many of the deaths and near deaths in drug overdoses are caused by counterfeit pills that look like prescription pills, but are not and actually contain fentanyl. The user may be unaware that the pills contain fentanyl and can be deadly,” said U.S. Attorney Talbert. “The charges announced today and the seizure of illicit drugs demonstrate our combined commitment to prevent the flow of these dangerous drugs into our communities.”
“Our agents work night and day to keep Fresno free from drugs like fentanyl that poison our children,” said Tatum King, special agent in charge, HSI San Francisco. “Today’s announcement of charges against 18 individuals involved in manufacturing and distributing this dangerous drug highlights HSI’s commitment our investigators have in partnership with prosecutors from the United States Attorney’s Office and local, state, and federal law enforcement to keep our community safe.”
The defendants are:
Horacio Torrecillas Urias Jr., of Fresno;
Amadeo Sarabia Jr., of Fresno;
Justin Dwayne Riddle, of Las Cruces, New Mexico;
Alma Garza, of Fresno;
Juan Valencia Jr., of Fresno;
Abel Lozano, of Sanger;
Henry Cox, of Sanger;
Alejandro Guzman, of Fresno;
Erica Ramirez, of Fresno;
Brayan Cruz, of Fresno;
Jacob Valles, of Fresno;
Cody Fyfe, of Fresno;
Christian Harris-Blanchette, of Fresno;
Marvin Carreno, of Fresno;
Victor Yair Torrecillas-Urias, of Fresno;
Oscar Jaramillo-Cortez, of Fresno;
Alex Garcia, of Fresno; and
Agustin Hernandez.
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 M30 fentanyl pills, 6 pounds of fentanyl powder, 10 pounds of methamphetamine, a pound of cocaine, 25 firearms, and hundreds of rounds of ammunition..
“It is DEA’s mission to keep American communities healthy and safe. Our work is more important than ever as every fentanyl seizure represents potential lives saved,” said DEA Special Agent in Charge Wade R. Shannon. “In collaboration with our law enforcement counterparts we will continue to hold accountable those organizations who are poisoning our community with these deadly drugs.”
Inspector in Charge Rafael Nuñez of the U.S. Postal Inspection Service, San Francisco Division said: “Protecting postal customers and employees from harmful material delivered in the mail is the highest priority of the United States Postal Inspection Service. Controlled substances are dangerous to anyone who receives them and to the postal workers who handle those parcels while doing their jobs. Postal Inspectors are proud to have a part in this team effort to shut down a drug distribution operation and bring those responsible to justice.”
“The Fresno Police Department is proud to have participated in ‘Operation Killer High,’” said Fresno Police Chief Paco Balderrama. “Fentanyl is a true danger, not just to our community, not just to our state, but to our nation. It was fentanyl overdoses that led to the development of the Fentanyl Overdose Resolution Team (FORT) here in Fresno. Last year alone, they responded to 84 overdoses, with 34 of them resulting in death. ‘Operation Killer High’ has culminated in 19 drug trafficking suspects being charged with federal offenses. These suspects, one of whom touts himself as the ‘M30 king of Fresno,’ are responsible for spreading fentanyl and other drugs throughout our city. We are happy to be standing side by side with our federal, state and local law enforcement partners as we hold these criminals accountable for their actions.”
The case was the result of an investigation by the Fentanyl Overdose Response Team (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 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.
Two Sacramento Area Men Indicted for Cocaine TraffickingRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Jose Manuel Chavez Zepeda, 54, of Carmichael, and Denis Zacarias Ponce Castillo, 37, of Sacramento, charging them with conspiracy to distribute cocaine and distribution of cocaine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, from at least April 22, 2016, until March 2022, Chavez distributed cocaine in kilogram quantities that he obtained from a source of supply in Mexico connected to the Cartel Jalisco Nuevo Generación (CJNG). Ponce worked for Chavez as one of his larger sub-dealers and later as his “stash pad” manager. In June, 2021, Chavez and Ponce sold a half kilogram of cocaine to a confidential source in Sacramento.
This case is the product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, Homeland Security Investigations, and the Sacramento Area Intelligence/Narcotics Task Force (SAINT). Assistant U.S. Attorney David Spencer is prosecuting the case.
If convicted, Chavez and Ponce face a maximum statutory penalty of 40 years in prison and a $5 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Sacramento Drug Trafficker Sentenced to 17.5 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — Gabriel Arauza, 33, of Sacramento, was sentenced today by U.S. District Judge Troy L. Nunley to 17 and a half years in prison for possession with intent to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Arauza was arrested on Aug. 29, 2018, after law enforcement officers found 30.5 pounds of methamphetamine at his residence in Sacramento. Arauza has previously been convicted on four separate occasions for felony drug offenses, including California state drug trafficking convictions in 2013 and 2015.
This case was the product of an investigation by the Sacramento County Sheriff’s Department and the Federal Bureau of Investigation. Assistant U.S. Attorneys Justin Lee and Aaron Pennekamp 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.
Fresno Man Convicted of Being a Felon in Possession of a Firearm Faces Additional Escape ChargeRead the Press Release
FRESNO, Calif. — A federal grand jury returned a single-count indictment today against Joel Jose Rueda, 29, of Fresno, charging him with escaping from federal custody, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Rueda was convicted in federal court on April 2, 2021 of being a felon in possession of a firearm. In December 2021, he was transferred from the federal penitentiary in Mendota to the Turning Point Residential Reentry Center, a halfway house in Fresno, to complete the remainder of his prison sentence. On Jan. 18, 2022, he escaped from the halfway house. He was later arrested by law enforcement officers during a traffic stop on March 11, 2022, when he attempted to flee. He later admitted to resisting arrest charges in Fresno County Superior Court and was sentenced to 7 days, with credit for time served. He has been ordered detained on the escape charge and is next scheduled to appear in federal court for arraignment on the indictment on April 4, 2022.
This case is the product of an investigation by the U.S. Marshals Service. Assistant U.S. Attorneys Justin Gilio and Karen Escobar are prosecuting the case.
If convicted, Rueda faces a maximum statutory penalty of five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Susanville Man Sentenced to over 10 Years in Prison for Distribution of MethamphetamineRead the Press Release
SACRAMENTO, Calif. — Darrel Wayne Kratzberg, 46, of Susanville, was sentenced on Monday to 10 years and 10 months in prison for distribution of methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, federal and local law enforcement officers began an investigation into Kratzberg’s distribution of methamphetamine in and around Susanville, in February 2018. The investigation was part of a larger effort between local and federal law enforcement agencies to identify sources of drugs, especially opioids, within Lassen County. Over the course of two months, agents conducted five controlled buys of methamphetamine and one controlled buy of heroin from Kratzberg.
This case was the product of an investigation by the Federal Bureau of Investigation, the Susanville Police Department, the Lassen County Sheriff’s Department, the California Department of Corrections & Rehabilitation-High Desert State Prison, and the Lassen County District Attorney’s office. Assistant U.S. Attorney James Conolly prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Former Sacramento Resident Charged in Unemployment Insurance Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Terence Aubrey Larker, 35, of Las Vegas, previously of Sacramento, was arrested today after a federal grand jury returned an eight-count indictment last Thursday, charging him with mail fraud and aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.
The indictment was unsealed today after Larker’s arrest in Las Vegas.
According to court documents, beginning in April 2020, and continuing through at least October 2020, Larker perpetrated a mail fraud and identity theft scheme that targeted the Unemployment Insurance benefit program that California administers through its Employment Development Department (EDD). Under the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the Pandemic Unemployment Assistance program, EDD is responsible for administering unemployment insurance benefits for qualifying residents who can no longer find employment due to the COVID-19 pandemic. Larker obtained the personally identifiable information (PII) of more than 80 individuals and filed fraudulent unemployment insurance benefit claims under their identities. EDD approved many of these applications and mailed benefits in the form of prepaid debit cards to addresses under Larker’s control, including at least 24 to his home address in Sacramento. Once received in the mail, he activated the cards and spent the benefits on himself, often appearing in ATM surveillance footage taking out large amounts of cash from these cards. In total, Larker’s conduct resulted in EDD and the United States paying out over $1.1 million in fraudulent claims.
“We greatly appreciate the strong work of our federal law enforcement partners who investigate these complex cases and bring perpetrators to justice,” said EDD Director Nancy Farias.
This case is the product of an investigation by the Department of Labor-Office of Inspector General (DOL-OIG), California Employment Development Department, Department of Homeland Security-Office of Inspector General (DHS-OIG), and the Federal Bureau of Investigation. Assistant U.S. Attorney Denise N. Yasinow is prosecuting the case.
If convicted, Larker faces a maximum statutory penalty of 20 years in prison and a fine of up to $250,000 for mail fraud and a mandatory additional sentence of two years in prison for aggravated identity theft. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Fentanyl Pill Dealer Sentenced to 5 Years in PrisonRead the Press Release
FRESNO, Calif. — Jonathon Cortez, 24, of Fresno, was sentenced today to five years in prison for conspiring to distribute hundreds of fentanyl pills, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in August 2020, federal and local law enforcement officers with the Fentanyl Overdose Resolution Team were investigating Cortez’s associate for dealing fentanyl pills. On Aug. 24, 2020, officers searched that associate’s car, person, and residence and found hundreds of fentanyl pills made to look like oxycodone pills with an “M” stamped on one side and a “30” on the other. Further investigation revealed that Cortez had been supplying those fentanyl pills. On Dec. 14, 2021, Cortez pleaded guilty to conspiracy to distribute over 40 grams of fentanyl.
This case was the product of an investigation by the Fentanyl Overdose Resolution Team, a multi‑agency team composed of Homeland Security Investigations, the Drug Enforcement Administration, 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.
Felon Sentenced to 4.5 Years in Prison for Illegally Possessing Firearms and Probation ViolationRead the Press Release
FRESNO, Calif. — Raymond Matthew Vance, 30, of Turlock and Fresno, was sentenced Monday by U.S. District Judge Dale A. Drozd to four years and six months in prison for being a felon in possession of a firearm and for violating the terms of his federal probation, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Feb. 4, 2020, Vance sold two firearms to an individual and two days later sold an additional firearm. Vance was previously convicted of being a felon in possession of a firearm in the Eastern District of California in 2019, and was serving a probationary sentence for that offense at the time that he possessed the firearms.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the Turlock Police Department, the Modesto Police Department, the Tracy Police Department, the Stanislaus County Sheriff’s Office, and the Stanislaus County District Attorney’s Office. Assistant U.S. Attorney Katherine E. Schuh is prosecuting 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.
Bakersfield Resident Sentenced to over 3 Years in Prison for Transporting over 100 Pounds of MethamphetamineRead the Press Release
FRESNO, Calif. — Randal Jason Newell, 42, of Bakersfield, was sentenced today to three years and three months in prison for possessing with intent to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Dec. 5, 2020, Newell drove from Bakersfield to Mexico to obtain and smuggle narcotics from Mexico to Bakersfield, which he agreed to do for $7,000. On Dec. 7, 2020, Newell drove to the San Ysidro port of entry crossing from Mexico into the United States. Law enforcement officers inspected Newell’s vehicle at the border crossing and discovered approximately 98 packages containing approximately 111 pounds of methamphetamine concealed in the vehicle’s gas tank, the rear compartment wall, the driver- and passenger-side exterior frame pillars, and underneath the floor.
On April 8, 2021, Newell and eight other defendants were charged in three related indictments for trafficking and purchasing to sell methamphetamine from a conspiracy orchestrated by Omar Alberto Navarro, 38, of Arvin. The other defendants are: Daniel Armendariz Mercado, 42; David Delgado Gonzalez, 38; 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.
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, 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.
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.
Woman Sentenced to over 4 Years in Prison for Mail Theft and Bank Fraud Scheme Committed throughout Northern CaliforniaRead the Press Release
SACRAMENTO, Calif. — Desiree Brianna Bello aka Desiree Sanchez, 28, of Contra Costa County, was sentenced today to four years and nine months in prison for bank fraud and possession of stolen U.S. mail, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between April and August 2020, Bello and co-defendant Richard Beldon Waters III, perpetrated a mail theft and bank fraud scheme throughout Northern California. The scheme involved stealing U.S. mail from residential mailboxes and harvesting bankcards, identification documents, financial information, checks, and personally identifiable information (PII) for use in fraudulent activity. Bello used the identification and PII of the mail theft victims to obtain money and property from banks and businesses.
On several occasions, Bello used identification documents and financial instruments of mail theft victims to purchase and lease vehicles from car dealerships. For example, on June 25, 2020, Bello entered a Hyundai dealership in Stockton to lease a new Hyundai Genesis G80 using a stolen identity. She made an initial $7,000 payment with a check in the victim’s name, and also submitted a lease application using the victim’s name, date of birth, California Driver’s License number, and Social Security Number. The dealership ultimately approved the application. Bello was able to drive the new G80, valued at approximately $55,490, off the lot.
Additionally, on two separate occasions in May 2020, Bello knowingly possessed stolen mail. On May 11, 2020, she was arrested in Folsom where she possessed over 300 pieces of stolen mail. Similarly, on May 18, 2020, she was arrested in El Dorado Hills where she possessed five large trash bags of mail that she and her co-schemers had just stolen minutes earlier from a residential complex.
This case is the product of an investigation by the U.S. Postal Inspection Service, the Stockton Police Department, the Folsom Police Department, the Concord Police Department, the Pittsburg Police Department, the El Dorado County Sheriff’s Office, the Sonoma County Sheriff’s Office, and the California Highway Patrol. Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
Waters pleaded guilty to similar charges in September 2021. He is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on May 23, 2022.
Modesto Man Pleads Guilty to Burglarizing Post Office in Calaveras CountyRead the Press Release
FRESNO, Calif. — Thomas Patrick Day, 41, of Modesto, pleaded guilty today to burglarizing a post office, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on the night of July 2, 2020, Day broke into the post office at 8271 Camanche Parkway South in Wallace, a town in Calaveras County. He used a glass breaker tool to shatter the glass on the door to the lobby area of the post office and then stole packages and keys to post office boxes belonging to other people and businesses.
This case is the product of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorney Joseph Barton is prosecuting the case.
Day is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on June 21, 2022. If convicted, Day faces a maximum penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Siskiyou Man Convicted of Bribery of a Public Official, Conspiracy to Commit Bribery, and Manufacturing More than 100 Marijuana PlantsRead the Press Release
On March 18, 2022, a federal jury convicted Chi Meng Yang, 36, of Montague, of bribery of a public official, conspiracy to commit bribery, and manufacturing more than 100 marijuana plants, U.S. Attorney Phillip A. Talbert announced.
According to evidence presented at trial, the charges arose from a four-month effort by Yang and Gaosheng Laitinen, Yang’s sister and co-defendant, to bribe Sheriff Jon Lopey, the elected sheriff of Siskiyou County, not to enforce a county ordinance banning outdoor marijuana grows.
On May 17, 2017, Yang met with Sheriff Lopey and offered a million-dollar donation to the charity of the sheriff’s choice in exchange for the sheriff’s “friendship” and help with a lobbying effort to legalize medical marijuana in Missouri. Yang, a Siskiyou County resident, also purported to represent a group of local cannabis farmers. Yang’s exact intentions were unclear, but Sheriff Lopey suspected that the mention of “friendship” implied some kind of improper law enforcement assistance. Sheriff Lopey called the FBI.
The FBI recorded the next meeting between Sheriff Lopey and Yang. In that meeting, Yang clarified that the donation could be paid to the Sheriff’s Office, or it could go to the sheriff himself—as Yang put it—“privately.” Yang added that he was growing marijuana on 10 plots of land, owned by members of his family, despite a Siskiyou County ordinance banning all outdoor grows. He offered the sheriff $5,000 per parcel for “protection,” with another $5,000 per parcel as a contribution to the sheriff’s re-election campaign. He offered to collect the money himself and to pay the sheriff in cash or a cashier’s check. Either way, he wanted it to be “private, discreet … anonymous.” He also made clear that what he wanted was “no enforcement” on the properties or the two water trucks that he used to water the grows.
Yang brought his sister, Gaosheng Laitinen, to the next meeting. Yang and Laitinen confirmed they wanted protection for their family’s marijuana grows. They offered to pay $1,000 per property up front, with the remaining $4,000 in protection fees and $5,000 in re-election money to be paid after the harvest, to guarantee the properties would not get raided before they could realize their profit.
In total, Yang met with Sheriff Lopey seven times. Together, Yang and Laitinen provided the sheriff with a list of eight properties that they wanted the sheriff not to raid. They paid $8,000—in envelopes of cash—as the initial protection payment for each of the eight properties. They also gave the sheriff cash bonuses totaling $2,500. The FBI caught all of these transactions on video.
Over time, Yang asked for favors outside the original protection scheme. He told the sheriff he wanted to add more marijuana plants to each property and to add greenhouses, which would allow him to grow throughout the year. He asked the sheriff to send his deputies to serve other growers with violation notices to get them to join the protection racket. At one point, Yang told Sheriff Lopey about a rival grower’s operation and suggested the sheriff “go out there and take care of it.” Yang also asked if the sheriff could influence other law enforcement agencies for Yang’s benefit. For example, Yang asked the sheriff if he could prevent the California Highway Patrol from enforcing the law against his water trucks, and he also asked for the sheriff’s help concerning a family member’s DUI arrest.
Eventually, FBI agents arrested Yang at a final meeting in Sheriff Lopey’s office on Aug. 31, 2017. Once Yang was in custody, the FBI gave a signal to eight teams of state and federal agents poised to search the eight “protected” properties. In total, agents eradicated 1,168 plants that were found on these eight properties.
This case is the product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Bureau of Land Management, the Siskiyou Unified Major Investigations Team, the Shasta Interagency Narcotics Task Force, the North State Marijuana Investigation Team, and the Siskiyou County Sheriff’s Office. Assistant U.S. Attorneys James Conolly and Aaron Pennekamp are prosecuting the case. Assistant U.S. Attorneys Michael Beckwith, Kevin Khasigian, and Ross Pearson assisted in the prosecution.
A week before the trial was to begin, Gaosheng Laitinen pleaded guilty to conspiring to commit bribery and conspiracy to manufacture marijuana. She is scheduled to be sentenced on Aug. 23, 2022.
Yang is scheduled to be sentenced by U.S. District Judge John A. Mendez on June 28, 2022. Yang faces a maximum sentence of five years in prison and a $250,000 fine for conspiracy to commit bribery, up to 10 years in prison and a $250,000 fine for bribery of a public official, and a mandatory minimum sentence of five years and up to 40 years in prison and a $5 million fine for manufacturing more than 100 marijuana plants. 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.
Five Arrested in Firearms Trafficking Conspiracy Involving 500+ Firearms Shipped from Georgia to California, Sold on Black Market in CaliforniaRead the Press Release
A federal grand jury indicted five individuals today charging them with a conspiracy to bring firearms from Georgia to California in order to sell them on the black market, U.S. Attorney Phillip A. Talbert announced.
On March 11, 2022, the five defendants were arrested. They are Jerrell Lawson, 31, of Sacramento; Aisha Hoggatt, 29, of Sacramento; Malek Williams, 28, of Atlanta, Georgia; Terrence Phillips, 39, of Union City; and James Gordley, 32, of Modesto.
All five defendants are charged with conspiracy to unlawfully deal in firearms and unlawful dealing in firearms for their part in this firearms trafficking scheme. Lawson, Hoggatt, Williams and Phillips are also charged with transferring a firearm to an out-of-state resident, and unlawful mailing of a firearm. Lawson is also charged with being a felon in possession of a firearm.
According to the criminal complaint, between November 2019 and October 2021, Lawson and his co-conspirators purchased over 500 firearms for more than $162,000. Lawson would broker firearms transactions in Georgia over the internet, and Williams, a Georgia resident with a license to carry a concealed firearm, would pick up firearms in person and mail the firearms to various locations in California at Lawson’s direction. Some of the firearms went to individuals that are prohibited from possessing firearms due to prior felony convictions. Hoggatt worked with Lawson to coordinate the purchase, mailing, and distribution of the firearms. Phillips and Gordley also distributed the firearms in California.
The investigation began when a firearm used in a shooting in Sacramento was traced to the last known sale by a federally licensed dealer in Georgia. A subsequent sale of the firearm led to Lawson’s organization. Lawson and his co-conspirators used coded language to traffic firearms and moved money using a variety of financial institutions. During the investigation, interdicted packages destined for Lawson and other co-conspirators were found to contain firearms, ammunition, knives, and brass knuckles, among other things.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Postal Inspection Service, and the Sacramento Region/ San Francisco Bay Area Cross-Jurisdictional Firearms Trafficking Strike Force Initiative. Assistant U.S. Attorneys Ross Pearson, Justin Lee, and Alexis Klein are prosecuting the case.
If convicted, the defendants face the following maximum penalties: five years in prison on each count for conspiracy to unlawfully deal in firearms, unlawful dealing in firearms and transferring a firearm to an out-of-state resident, and two years in prison on each count for unlawful mailing of a firearm. Lawson faces an additional maximum penalty of 10 years in prison for being a felon in possession of a firearm. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
This case is 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.
Vallejo Man Pleads Guilty to Sexual Exploitation of ChildrenRead the Press Release
Tariq Arrhamann Majid, 43, of Vallejo, pleaded guilty today to two counts of sexual exploitation of children, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Dec. 31, 2018, Majid was arrested following an investigation involving online sharing of child pornography. Investigators discovered images and videos of Majid sexually abusing two minors, one of whom was 9 years old at the time of the offense. During the investigation, it was discovered that Majid had contact with many other minors, some of whom reported that Majid would invite minors to spend the night at his home.
This case is the product of an investigation by the California Highway Patrol Computer Crimes Investigation Unit and the Golden Gate Special Investigations Unit and the Federal Bureau of Investigation. Assistant U.S. Attorney Michele Beckwith is prosecuting the case.
Majid is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on June 27, 2022. Majid 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.
Two Plead Guilty to Operating Illegal Gambling Business in Northern California and Conspiring to Launder MoneyRead the Press Release
Two Los Angeles-area residents pleaded guilty today to operating an illegal gambling business and conspiring to launder money, U.S. Attorney Phillip A. Talbert announced.
Pleading guilty today were Yosef Yitzchak Beshari, 29, of North Hollywood, and Efraim Journo, 30, of Los Angeles, in related cases.
According to court documents, Beshari and Journo conducted an illegal gambling business involving video slot machines and devices and the sale of credits for online gambling, in Stanislaus County, San Joaquin County, Sacramento County and elsewhere. In addition, Beshari conspired with Schneur Zalman Getzel Rosenfeld, 33, of Los Angeles, who has been charged in a related case, to launder the proceeds of the illegal gambling business by exchanging the cash proceeds for various payments, including checks, direct deposits of purported salary, and a wire transfer to an escrow company for the purchase of Beshari’s house.
In a related case, an indictment charges Los Angeles residents Gal Yifrach, 35, with operating an illegal gambling business and conspiracy to commit money laundering; Nick Shkolnik, 39, with operating an illegal gambling business; and Shalom Ifrah, 32, and Rosenfeld with conspiracy to commit money laundering.
According to court documents, Yifrach and Shkolnik also conducted the illegal gambling business. Yifrach and Ifrah conspired to launder the proceeds of the illegal gambling business in multiple ways, including by exchanging the cash for checks, exchanging the cash for casino chips, and conducting cash exchanges of no more than $10,000 at banks to avoid transaction reporting requirements.
This case is the product of an investigation by the Federal Bureau of Investigation and the California Department of Justice – Bureau of Gambling Control. Assistant U.S. Attorney Miriam R. Hinman is prosecuting the case.
Beshari and Journo are scheduled to be sentenced by U.S. District Judge William B. Shubb on June 27, 2022. They each face a maximum statutory penalty of five years in prison and a $250,000 fine for conducting an illegal gambling business. In addition, Beshari faces a maximum statutory penalty of 20 years in prison and a $500,000 fine, or twice the value of the monetary instrument or funds involved, whichever is greater, for conspiracy to commit money laundering. Beshari has also agreed to forfeit $250,000. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The charges against the other defendants are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Citrus Heights Man Sentenced to 20 Years in Prison for Sexual Exploitation of a ChildRead the Press Release
Ryan Kent Wheeler, 39, of Citrus Heights, was sentenced today by U.S. District Judge Kimberly J. Mueller to 20 years in prison to be followed by 15 years of supervised release and a $35,000 order of restitution for sexual exploitation of a child, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between November 2019 and February 2020, Wheeler set up hidden cameras in a house he shared with the victim to capture nude images of the victim. Wheeler made screen captured still images from video files and sent those still images into a Kik chat group. Agents obtained a search warrant, and recovered the hidden cameras, digital media that stored the files, and other devices.
This case was the product of an investigation by Homeland Security Investigations and the Placer County District Attorney’s Office. Assistant U.S. Attorney Roger Yang prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Bakersfield Man Pleads Guilty to Receiving Child PornographyRead the Press Release
John Perry, 64, of Bakersfield, pleaded guilty today to receipt of material involving the sexual exploitation of minors, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in February 2020, Perry received child pornography onto a cellphone. He has a previous conviction for rape of a child in the first degree in Washington state.
This case is the product of an investigation by Homeland Security Investigations. Assistant U.S. Attorneys Laura D. Withers and Brian W. Enos are prosecuting the case.
Perry is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on June 27, 2022. Perry faces a minimum statutory penalty of 15 years in prison and a maximum statutory penalty of 40 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.
Citizen of Mexico Residing in Bakersfield Sentenced to over 10 Years in Prison for Distributing Methamphetamine and FentanylRead the Press Release
Wilfredo Medina-Perez, 34, a native and citizen of Sinaloa, Mexico, residing in Bakersfield, was sentenced today to 10 years and five months in prison for distributing methamphetamine and fentanyl, U.S. Attorney Phillip A. Talbert announced.
According to court documents, from December 2018 to November 2019, Medina distributed approximately one pound of 100% pure methamphetamine and 8,078 counterfeit oxycodone pills containing fentanyl to an undercover agent. Medina was arrested on a federal criminal complaint filed on Nov. 22, 2019, and has remained in custody as a flight risk and danger to the community since that time. Medina pleaded guilty in December 2021.
Last week, one of Medina’s runners, Uriel Ivan Portillo, 35, also a native and citizen of Mexico, was sentenced to three years and four months in prison for distributing fentanyl. One of Medina’s customers, Rojelio Garcia, 49, of Bakersfield, was sentenced to time served for possessing fentanyl with the intent to distribute and placed on supervised release for three years.
This case was the product of an investigation by the Drug Enforcement Administration, the Southern Tri-County High Intensity Drug Trafficking Area Task Force, the Kern County Sheriff’s Department, and the Bakersfield Police Department. Assistant United States Attorneys Karen Escobar and Angela Scott prosecuted the case.
This effort was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Bakersfield Resident Pleads Guilty to Fentanyl Distribution ConspiracyRead the Press Release
Adrian Rodriguez Cardenas, 21, of Bakersfield, pleaded guilty today to conspiracy to distribute fentanyl, U.S. Attorney Phillip A. Talbert announced.
On Feb. 4, 2022, co-defendant Keisean Rockmore, 27, of Bakersfield, pleaded guilty to possession with the intent to distribute fentanyl.
According to court documents, on Jan. 11, 2021, Cardenas negotiated with and sold to an undercover law enforcement officer counterfeit OxyContin/oxycodone pills containing fentanyl. Cardenas thereafter negotiated a second sale of pills to the undercover officer. On Jan. 19, 2021, Rockmore drove Cardenas and a third individual to a fast-food restaurant parking lot in Bakersfield to meet with and sell to the undercover officer 1,000 fentanyl-laced pills for the negotiated price of $2,900. During the meeting, when the undercover officer asked the vehicle occupants whether they had the pills, Rockmore motioned towards a bag on his lap and stated that he had it. At least one of the vehicle occupants possessed a firearm during the meeting, which he pointed at the undercover officer when a dispute arose during the transaction. Rockmore then fled in his vehicle with Cardenas and the third person to a nearby apartment complex, where they exited the vehicle and attempted to elude pursuing law enforcement officers. After law enforcement officers found and arrested Cardenas, Rockmore and the other person at the apartment complex, they discovered nearby a loaded firearm and more than 50 counterfeit OxyContin/oxycodone pills.
This case is the product of an investigation by the Drug Enforcement Administration and the Kern County Sheriff’s Office. Assistant U.S. Attorneys Christopher D. Baker and Justin J. Gilio are prosecuting the case.
Cardenas is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on June 17, 2022. Cardenas faces a mandatory five-year term in prison and a maximum term 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.
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.
San Jose Man and Fairfield Woman Indicted for Trafficking Methamphetamine in Solano CountyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a five-count indictment today against Esteban Gerardo Ramirez, 31, of San Jose, and Marsha Garma Phillips, 45, of Fairfield, charging them with conspiracy to distribute methamphetamine and related methamphetamine trafficking charges, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between Sept. 13, 2021, and March 8, 2022, Phillips sold over 5 pounds of methamphetamine to an FBI confidential source. Surveillance and further investigation revealed Phillips was supplied by Ramirez, whom she would meet in a parking lot in Fremont to pick up methamphetamine, before returning to Fairfield to sell it.
This case is the product of an investigation by the FBI’s Solano County Violent Crimes Task Force and the Fairfield Police Department. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.
If convicted, each defendant faces a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are 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.
Nevada Woman Pleads Guilty to Hiring Hitman on Dark Web to Kill Ex-HusbandRead the Press Release
SACRAMENTO, Calif. — Kristy Lynn Felkins, 37, of Fallon, Nevada, pleaded guilty today to the use of interstate commerce facilities in the commission of murder-for-hire, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Felkins admitted that she sent 12 bitcoin (valued at approximately $5,000 at the time) to a dark web hitman website, known as Besa Mafia, to have her ex-husband murdered. From February to May 2016, Felkins regularly communicated with the administrator of the site to pay and arrange for the murder of her ex-husband. Felkins gave the administrator the specific location of her husband in an attempt to have him murdered.
Besa Mafia operated as a “hidden service” on the Tor network, which is an anonymizing internet service that is known informally as the “dark web.” The Besa Mafia website was in fact a scam, and Felkins was not refunded the bitcoin she sent to the site, which is no longer in operation.
This case is the product of an investigation by Homeland Security Investigations (HSI), as part of the Northern California Illicit Digital Economy (NCIDE) Task Force, consisting of agents from HSI, the Federal Bureau of Investigation, the U.S. Postal Inspection Service, and the Drug Enforcement Administration. The NCIDE Task Force is a joint, federal task force focused on targeting all forms of dark web and cryptocurrency criminal activity in the Eastern District of California. Assistant U.S. Attorney Paul Hemesath is prosecuting the case.
Felkins is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on June 16, 2022. Felkins faces a maximum statutory penalty of 10 years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former National Guard Member Sentenced to 20 Years in Prison for Using the Internet to Commit Child Sexual Exploitation OffensesRead the Press Release
SACRAMENTO, Calif. — Jaziz Jesahias Cea, 24, of Galt, was sentenced today to 20 years in prison for transportation, receipt, and possession of visual depictions of children engaging in sexually explicit conduct, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Cea used internet communications platforms and social media to commit the offenses. In particular, on May 13, 2018, Cea uploaded videos showing prepubescent girls being abused by adult males to his YouTube channel. Cea also separately used his Skype account to receive videos depicting prepubescent minor females being sexually exploited and abused, to share links to such material, and to communicate with others about his interest in sexually exploiting children. On Feb. 20, 2019, Cea also possessed additional videos showing prepubescent girls being sexually abused. In addition to committing the charged offenses, Cea also admitted to using the Welcome to Video website and cryptocurrency to buy more than 20 hours of videos depicting child sexual abuse on the darknet in early 2018.
Between September 2017 and July 2018, Cea was a member of the California National Guard serving on active duty with the United States Army in Qatar. He was discharged from the California National Guard on July 23, 2020, under other than honorable conditions.
This case was the product of an investigation by the Federal Bureau of Investigation, the Sacramento County Sheriff’s Office, the Sacramento Valley Hi-Tech Crimes Task Force, the Houston, Texas, Internet Crimes Against Children Task Force (ICAC), and the Galt Police Department. Assistant U.S. Attorneys Rosanne Rust and Christina McCall prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Fresno Man Charged in Schemes to Defraud and Identity TheftRead the Press Release
FRESNO, Calif. — Brian Kenneth Stoffel, 38, of Fresno, was arraigned this week on a seven-count indictment charging him with bank fraud, use of an unauthorized access device, aggravated identity theft, and wire fraud, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Stoffel obtained the name, social security account number, date of birth, and other means of identification of a specific victim. Stoffel used that personally identifiable information to open a checking account at the victim’s bank and drain the victim’s savings account using an unauthorized debit card, to apply for various lines of credit in the victim’s name, and to apply to the Department of Homeland Security Federal Emergency Management Agency (FEMA) for a disaster loan. It is alleged that Stoffel caused at least $420,000 in actual and attempted loss in less than a one-year period of time.
This case is the product of an investigation by the Fresno County Sheriff’s Office, Elder Abuse Unit and the Federal Bureau of Investigation. Assistant U.S. Attorneys Laura D. Withers and Joseph Barton are prosecuting the case.
If convicted, Stoffel faces a maximum statutory penalty of 30 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
PPEI and President Kory Willis Plead Guilty and Agree to Pay $3.1 Million in Criminal Fines and Civil Penalties for the Manufacture and Sale of Illegal Delete Devices and Tunes for Diesel TrucksRead the Press Release
Louisiana-based company Power Performance Enterprises Inc. (PPEI) and its President and owner, Kory B. Willis, pleaded guilty to criminal charges today in federal court in Sacramento, California. Both defendants pleaded guilty to conspiracy to violate the Clean Air Act and to violating the Clean Air Act by tampering with the monitoring devices of emissions control systems of diesel trucks.
In addition to the criminal charges, the United States also filed a civil complaint against PPEI and Willis today in federal court in the Western District of Louisiana, alleging violations of the Clean Air Act’s prohibition against the sale or manufacture of devices that bypass, defeat, or render inoperative emissions controls. Under the criminal plea agreements and a proposed civil consent decree, PPEI and Willis agreed to pay a total of $3.1 million in criminal fines and civil penalties. Under the civil settlement, both Willis and the company agree not to manufacture, sell or install any device that defeats emissions controls.
“The manufacture and sale of illegal delete devices and tunes such as the ones targeted by today’s actions put at risk decades of progress in controlling harmful pollution from motor vehicles in this country,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “As the plea agreements and civil settlement show, we will vigorously enforce the prohibitions on delete devices and tunes, using all appropriate enforcement tools.”
“The defendants sold products nationwide that allowed drivers to illegally tamper with emissions controls in a manner that caused dramatic increases in emissions,” said U.S. Attorney Phillip A. Talbert for the Eastern District of California. “Environmental laws that control diesel pollution protect the environment and the health of the general public and are especially important to protect sensitive populations such as the young, the elderly, and people who suffer from respiratory conditions. Thanks to the work of the EPA, these guilty pleas will send a message to the delete device industry that disregarding federal environmental laws will result in federal charges. The U.S. Attorney’s Office will continue to vigorously prosecute those who place profit above the public’s health and the environment.”
“The actions of Power Performance Enterprises Inc. and its President and owner, Kory B. Willis, that advanced them to the top of the delete tuning market have caused and will continue to cause the emissions of dangerous compounds into the environment which could contribute to serious health issues,” said U.S. Attorney Brandon B. Brown for the Western District of Louisiana. “This proposed civil settlement sends a clear message that these types of violations will not be tolerated and those who violate these environmental laws will be held accountable.”
“EPA estimates that the defeat devices illegally sold by the defendants are expected to cause the release of over 100 million pounds of excess air pollutants over the life of the diesel trucks in which they were installed,” said Acting Assistant Administrator Larry Starfield for EPA’s Office of Enforcement and Compliance Assurance. “This case clearly demonstrates the negative environmental impact of defeat devices and EPA’s commitment to vigorously enforcing laws designed to protect public health and the environment.”
According to court documents, from PPEI’s incorporation in 2009 until 2019, PPEI and Willis were among the nation’s most prominent developers of custom software known as “tunes,” and in particular, “delete tunes.” Generally, tunes can alter a diesel truck’s fuel delivery, power parameters and emissions. PPEI and Willis were well known for their custom delete tunes, software which allows a “deleted” truck to appear to run normally. A deleted vehicle is one that has had emissions controls removed or disabled, resulting in vastly increased emissions of air pollution.
Willis and PPEI reached the top of the illegal delete tuning market, tuning over 175,000 vehicles according to Willis. Willis also stated that PPEI was the biggest custom tuning company in the world, had over 100,000 customers, and tuned more than 500 vehicles a week. According to internal PPEI records, PPEI typically sold well over $1 million dollars of product a month. According to EPA calculations of the estimated emissions impact, PPEI’s sales of delete tunes between 2013 and 2018 alone are anticipated to cause over 100 million excess pounds of nitrogen oxides (NOx) emissions over the life of the diesel trucks equipped with those products.
Deleting a diesel truck causes its emissions to increase dramatically. For example, for a fully deleted truck, which has had all emissions equipment removed or disabled, EPA testing quantified the increased emissions as follows: NOx increased 310 times, non-methane hydrocarbons increased 1,400 times, carbon monoxide increased 120 times, and particulate matter increased 40 times. EPA’s Air Enforcement Division released a report in November 2020 finding that more than half a million diesel pickup trucks in the United States — approximately 15% of U.S. diesel trucks that were originally certified with emissions controls — have been illegally deleted.
Diesel emissions include multiple hazardous compounds and harm human health and the environment. Diesel emissions have been found to cause and worsen respiratory ailments such as asthma and lung cancer. One study indicated that 21,000 American deaths annually are attributable to diesel particulate matter. Exposure to polluted air in utero also has been associated with a host of problems with lifelong ramifications including low birth weight, preterm birth, autism, brain/memory disorders and asthma.
Under the proposed civil settlement, defendants PPEI and Willis will pay $1,550,000 in civil penalties and agree not to manufacture, sell, or install any device that bypasses, defeats, or renders inoperative motor vehicle emissions controls. The defendants will not sell or transfer the intellectual property associated with these products, and will destroy illegal products still in inventory, cease warranty support for previously sold products, revise marketing materials, notify customers and dealers of the law and the settlement, and train employees and contractors. According to civil court documents, Willis and PPEI halted sales of specified delete devices in the fall of 2019 following enforcement activity by EPA.
The defendants are scheduled to be sentenced in the criminal case by U.S. District Judge John A. Mendez on Aug. 23. Willis faces a maximum statutory penalty of five years of incarceration on the conspiracy count, two years of incarceration on the tampering count, and for each count a maximum fine of $250,000 or twice the gross pecuniary gain derived from the offense. PPEI faces for each count a maximum fine of $500,000 or twice the gross pecuniary gain derived from the offense. Under the plea agreements, the defendants agree to jointly and severally pay a $1,550,000 criminal fine. The sentences will be determined at the discretion of the court after consideration of all applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The criminal case was the product of an investigation by the EPA’s Criminal Investigation Division. Assistant U.S. Attorney Katherine T. Lydon of the Eastern District of California and Senior Counsel Krishna S. Dighe and Trial Attorney Stephen J. Foster of the Environmental Crimes Section of the Department of Justice’s Environment and Natural Resources Division (ENRD) are prosecuting the criminal case. The federal civil case is being handled by Senior Counsel Nicole Veilleux of the Environmental Enforcement Section of ENRD and Attorney-Advisor Ed Kulschinsky of the Air Enforcement Division of the EPA.
Stopping the manufacture, sale and installation of illegal delete devices is a priority for EPA. To learn more, visit: https://www.epa.gov/enforcement/national-compliance-initiative-stopping-aftermarket-defeat-devices-vehicles-and-engines.
The consent decree for this settlement was lodged in the U.S. District Court for the Western District of Louisiana and is subject to a 30-day public comment period and final court approval. A copy of the decree, and information on submitting comments will be available on the Department of Justice website at: www.justice.gov/enrd/consent-decrees.
Final Defendant in International Credit Card Scheme with 71 Shell Companies and Moscow Connections Sentenced to over 24 Years in Federal PrisonRead the Press Release
Aleksandr Maslov, 40, of Sacramento, was sentenced today by U.S. District Judge John A. Mendez to 24 years and four months in prison, for his involvement in an international credit card fraud scheme, U.S. Attorney Phillip A. Talbert announced.
According to evidence presented in the trials of his co-defendants and in court documents, between approximately Oct. 5, 2011, and March 5, 2014, Maslov conspired with Rouslan Kirilyuk, 43, of Los Angeles; Mihran Melkonyan, 41, of Sacramento; Rouslan Akhmerov, 46, of Studio City; and others in a massive credit card billing scheme that involved working with Moscow‑based hackers to create approximately 71 fraudulent online companies established with the sole purpose of fraudulently charging approximately 119,000 stolen credit card numbers. In total, the members of the scheme billed the stolen credit card numbers for over $3.4 million in unauthorized charges.
To create the fraudulent companies, the members of the scheme obtained over 200 stolen report cards from the San Juan Unified School District in Sacramento. Those report cards had students’ personally identifiable information (PII) on them including names and social security numbers. Using that personal identity information, Kirilyuk and his associates created fraudulent companies with names designed to sound like real companies, such as “CVS Store,” “Walt Mart,” and “Chevran.”
Working with at least one hacker based in Moscow, Maslov and his conspirators used those fraudulent companies to charge stolen American Express credit card account numbers. To transfer the stolen money, they used shell bank accounts held in the names of individuals whose identities had been stolen and accounts in the names of former Russian J-1 Student Visa holders who had returned to Russia after opening multiple bank accounts in California.
The members of the conspiracy also used numerous runners in the Los Angeles area to withdraw money in the form of cash. The conspirators then sent a portion of the stolen money to Moscow, using prepaid debit cards and by hiding cash inside of items shipped through the mail. According to court documents, Maslov’s co-defendant, Kirilyuk has a history of corporate cyber-intrusion dating back to at least 2003.
Maslov, Kirilyuk and Melkonyan all fled to avoid prosecution. Kirilyuk was apprehended in Mexico and arrested by FBI agents after being flown to San Francisco. Melkonyan was apprehended in California after re-entering the United States. Maslov was apprehended in Virginia.
This case was the product of an investigation by the Federal Bureau of Investigation, Sacramento Field Division with assistance from FBI’s Los Angeles Field Division. Assistant U.S. Attorneys Michael D. Anderson and Heiko P. Coppola prosecuted the case.
In trial on Feb. 15, 2017, Melkonyan was found guilty of 24 counts of wire fraud and two counts of mail fraud charged against him related to the scheme. He was sentenced on January 4, 2019, to 19 years and two months in prison.
In trial, on Feb. 26, 2019, Kirilyuk was found guilty of 24 counts of wire fraud, one count of aggravated identity theft and one count of failure to appear. He was sentenced on Dec. 6, 2019, to 27 years in prison.
On Dec. 15, 2014, Akhmerov pleaded guilty to one count of access device fraud for his participation in the scheme and was sentenced to time served.
Bakersfield Fentanyl Dealer Sentenced to 3 Years in PrisonRead the Press Release
FRESNO, Calif. — Uriel Ivan Portillo, 35, of Sinaloa, Mexico, was sentenced today to three years and four months in prison for conspiring to possess with intent to distribute fentanyl, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Nov. 21, 2019, Portillo distributed 5,000 counterfeit oxycodone pills containing fentanyl in exchange for $40,000 during a controlled purchase in Bakersfield.
This case is the product of an investigation by the Drug Enforcement Administration, the Southern Tri-County High Intensity Drug Trafficking Area Task Force, the Kern County Sheriff’s Department, and the Bakersfield Police Department. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
Portillo’s co-defendant, Wilfredo Medina Perez, also pleaded guilty to the same and additional drug transactions. He is scheduled for sentencing on March 18, 2022, before U.S. District Judge Jennifer L. Thurston. Medina faces a maximum statutory penalty of 20 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Mexican National Sentenced to over 8 Years in Prison for Conspiracy to Distribute Methamphetamine in Tehama CountyRead the Press Release
SACRAMENTO, Calif. — Maria Cervantes-Echevarria, 35, a Mexican national living in Los Molinos, was sentenced today by U.S. District Judge Troy L. Nunley, to eight years and nine months in prison for conspiracy to distribute methamphetamine, United States Attorney Phillip A. Talbert announced.
Cervantes-Echevarria pleaded guilty in May 2019. According to court records, federal agents began investigating Cervantes-Echevarria and co-defendant Miguel Cervantes in 2017 for suspected methamphetamine trafficking in Shasta and Tehama Counties. In August and September 2018, an undercover agent purchased over 3 pounds of methamphetamine from Cervantes during three controlled buys. In addition, when law enforcement executed a search warrant at Cervantes-Echevarria’s and co-defendant Marta Jiminez Lopez’s home in September 2018, they seized approximately 34 pounds of methamphetamine, 3 pounds of heroin, three firearms, and over $44,000 in cash.
Cervantes and Lopez, both Mexican nationals living in Los Molinos, previously pleaded guilty to conspiracy to distribute methamphetamine. Cervantes was sentenced to nine years in prison in February 2020. Lopez is scheduled to be sentenced in May 2022.
This case is the product of an investigation by the Drug Enforcement Administration, the Bureau of Land Management, the Tehama Interagency Drug Enforcement (TIDE) task force, and the Siskiyou Unified Major Investigations Team (SUMIT), with special assistance from the Federal Bureau of Investigation and the California Highway Patrol. Assistant U.S. Attorney Denise N. Yasinow is prosecuting the case.
Four Los Angeles Residents Indicted for Operating Illegal Gambling Business and Conspiring to Launder MoneyRead the Press Release
SACRAMENTO, Calif. — A three-count indictment was unsealed yesterday charging four defendants in connection with an illegal gambling business and conspiracies to launder the proceeds of the illegal gambling business, U.S. Attorney Phillip A. Talbert announced.
The indictment charges Los Angeles residents Gal Yifrach, 35, with operating an illegal gambling business and conspiracy to commit money laundering; Nick Shkolnik, 39, with operating an illegal gambling business; and Shalom Ifrah, 32, and Schneur Zalman Getzel Rosenfeld, 33, with conspiracy to commit money laundering.
According to court documents, Yifrach, Shkolnik, and Yosef Yitzchak Beshari, who was charged elsewhere, conducted an illegal gambling business involving video slot machines and devices and bets, in the Eastern District of California and elsewhere. Yifrach and Ifrah conspired to launder the proceeds of the illegal gambling business in multiple ways, including by exchanging the cash for checks, exchanging the cash for casino chips, and conducting cash exchanges of no more than $10,000 at banks to avoid transaction reporting requirements. Rosenfeld is charged with conspiring with Beshari to launder the proceeds of the illegal gambling business in multiple ways, including by providing checks, direct deposits of purported salary, and a wire transfer to an escrow company, all in exchange for cash from the gambling business.
All four defendants were arrested yesterday. Yifrach and Ifrah have been detained pending trial. Shkolnik and Rosenfeld have been released subject to pretrial supervision and other conditions.
This case is the product of an investigation by the Federal Bureau of Investigation and the California Department of Justice – Bureau of Gambling Control. Assistant U.S. Attorney Miriam R. Hinman is prosecuting the case.
If convicted, Yifrach and Shkolnik each face a maximum statutory penalty of five years in prison and a $250,000 fine for conducting an illegal gambling business. In addition, Yifrach, Ifrah, and Rosenfeld each face a maximum statutory penalty of 20 years in prison and a $500,000 fine, or twice the value of the monetary instrument or funds involved, whichever is greater, for conspiracy to commit money laundering. The indictment also seeks the forfeiture of assets, including over $500,000 in U.S. Currency and three real estate properties in Los Angeles. 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.
Jury Convicts Sacramento Man for Sex Trafficking of a MinorRead the Press Release
SACRAMENTO, Calif. — After a seven–day trial, a federal jury found Robert Pierre Duncan, 26, of Sacramento, guilty on Tuesday of conspiracy to engage in sex trafficking of a child, sex trafficking of a child, and escape from custody, U.S. Attorney Phillip A. Talbert announced.
According to evidence presented at trial, between September and October 2018, Duncan recruited a 17-year-old girl to engage in prostitution in Oakland and San Francisco. He frequently drove the victim to areas known for prostitution activity where he caused her to have sex with strangers for money, which he kept. Duncan also posted online prostitution ads depicting the victim and harbored the victim at an Oakland motel so she could have sex with sex buyers. In late September 2018, Sacramento County Sheriff’s Deputies recovered the victim. However, a few weeks later, Duncan, working with his co-conspirator, Eva Christian, 25, extracted the victim from a children’s group home in the middle of the night. The next day, Duncan put the victim back to work engaging in prostitution on the streets of Oakland. After obtaining the victim from the group home, Duncan managed his pimping operation from his Sacramento apartment, using his cellphone and a location tracking application on his phone to monitor and direct the victim’s prostitution activity in Oakland.
On May 31, 2019, Duncan was arrested by FBI agents in Sacramento. Shortly after his arrest, Duncan broke out of custody and fled through Midtown Sacramento until he was finally apprehended several blocks away from the scene of his initial arrest.
This case is the product of an investigation by the Federal Bureau of Investigation, the California Department of Justice’s Special Operations Unit, the Sacramento County Sheriff’s Office, the Woodland Police Department, and the Oakland Police Department with assistance from the California Department of Corrections and Rehabilitation. Assistant U.S. Attorneys Brian A. Fogerty and Sam Stefanki are prosecuting the case.
Duncan is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on June 6, 2022. Duncan faces a maximum statutory penalty of life in prison and a $250,000 fine. His conviction on the sex trafficking of a child count carries a mandatory minimum sentence of 10 years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Childhood, a nationwide initiative 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.
Vallejo Man Sentenced to over 15 Years in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
SACRAMENTO, Calif. — Lionel Ornelas, 62, of Vallejo, was sentenced today to 15 years and eight months in prison by U.S. District Judge Kimberly J. Mueller sentenced for conspiracy to distribute and to possess with intent to distribute methamphetamine.
According to court documents, between June 20, 2017, and Dec. 19, 2017, Ornelas conspired with Tony Acosta Alvarez, 29, to distribute and possess methamphetamine. Ornelas had previously been convicted of felony drug offenses in Solano County in 2007, 2008, 2012 and 2013. On July 26, 2019, Ornelas pleaded guilty and admitted that he was responsible for 1,068 grams of methamphetamine purchased during an undercover operation. In addition, on July 20, 2017, Ornelas sold a .380 handgun to the confidential informant.
On Sept. 24, 2019, Alvarez was sentenced to 10 years in prison.
This case was the product of an investigation by the Federal Bureau of Investigation and the Solano County Sheriff’s Office. Assistant U.S. Attorney Kelli L. Taylor prosecuted the case.
Stanislaus County Man Sentenced to over 5 Years in Prison for Methamphetamine DistributionRead the Press Release
SACRAMENTO, Calif. — Juan Carlos Cortez-Gomez, 44, of Riverbank, was sentenced today by Chief United States District Judge Kimberly J. Mueller to 70 months in prison for possession with intent to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Sept. 15, 2020, Cortez-Gomez agreed to sell methamphetamine to an FBI informant. When Cortez-Gomez arrived at the location for the sale, he was arrested by officers. A search of his truck revealed 10 pounds of methamphetamine. During a post-arrest statement, Cortez-Gomez admitted he knowingly possessed this methamphetamine and that he was planning to sell it.
This case was the product of an investigation by the FBI’s Solano County Violent Crimes Task Force, the California Highway Patrol, and the Stockton Police Department. Assistant U.S. Attorney Adrian T. Kinsella prosecuted the case.
This case was brought 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.
FBI Impersonator Guilty of Wire Fraud, StalkingRead the Press Release
FRESNO, Calif. — On Friday, March 4, 2022, after a four–day trial, a federal jury found Ivan Isho, 44, of Peoria, Arizona, guilty of two counts of wire fraud, one count of false impersonation of a federal officer, and stalking, United States Attorney Phillip A. Talbert announced.
According to evidence presented at trial, in 2016 and 2017, Isho pretended to be an FBI agent and claimed to members of the Assyrian community in Ceres that he could help them obtain visas for their family members living outside the United States. He displayed fake FBI credentials and a gun to aid his misrepresentations to his victims. They paid him thousands of dollars, including by means of interstate wire transmission, and provided him with copies of personal family documents. However, Isho had no ability to obtain and never helped to obtain visas for the victims’ family members. Isho was never employed in any capacity by the FBI.
Additionally, between April 2017 and April 2018, Isho held himself out as an FBI Special Agent to a female victim whom he harassed by means of repeated phone calls and threatening and harassing voicemail messages to both the victim and her husband.
At trial, Isho testified and claimed he only possessed the fake FBI credentials as part of a Halloween costume, despite recordings in evidence of his voicemails claiming to be with the FBI received in the months of April and August 2017. He further admitted to threatening the stalking victim with abusive language and various threats.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Laura D. Withers and Laura Jean Berger are prosecuting the case.
Isho is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on May 31, 2022. Isho 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.
Stockton Man Indicted for Being a Felon in Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today against Olyimpus Shaquille Pereira, 28, of Stockton, charging him with being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Nov. 16, 2021, following a lawful search, officers found a Sig Sauer .40‑caliber semi-automatic handgun in Pereira’s vehicle. Pereira has several prior felony convictions—including assault with a deadly weapon causing great bodily injury and two prior felon in possession of a firearm/ammunition convictions—which prohibit him from possessing a firearm.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives Violent Crimes Task Force, the U.S. Marshals Service Fugitive Task Force, and the Stockton Police Department. Assistant U.S. Attorney Alstyn Bennett is prosecuting the case.
If convicted, Pereira 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.
Shasta County Woman Arrested for Lying to Federal Agents Regarding Kidnapping and Defrauding the Victim Compensation BoardRead the Press Release
SACRAMENTO, Calif. — Sherri Papini, 39, of Redding, was arrested today on charges of making false statements to a federal law enforcement officer and engaging in mail fraud, U.S. Attorney Phillip A. Talbert, FBI Special Agent in Charge Sean Ragan, and Shasta County Sheriff Michael L. Johnson announced.
According to the criminal complaint filed in this case, on Nov. 2, 2016, Papini was reported missing, and extensive searches were conducted for her in Shasta County and California as well as in several other states. On Nov. 24, 2016, Papini was found in Yolo County near Woodland. Papini had various bindings on her body and injuries including a “brand” on her right shoulder.
At that time, Papini told law enforcement officers and others that she had been abducted and held by two Hispanic women at gunpoint and held against her will. She also provided details of the alleged abductors to an FBI sketch artist. Based on her account, law enforcement agencies were on the lookout for Hispanic women matching Papini’s description. The investigation eventually showed, however, that this was a false narrative Papini fabricated. In truth, Papini had been voluntarily staying with a former boyfriend in Costa Mesa and had harmed herself to support her false statements.
During an interview conducted by a federal agent and a Shasta County Sheriff’s Office detective in August 2020, Papini was warned that it was a crime to lie to federal agents. She was presented with evidence that showed she had not been abducted. Instead of retracting her kidnapping story, Papini continued to make false statements about her purported abductors. In addition, Papini caused the California Victim’s Compensation Board to pay victim assistance money based on her kidnapping story. From 2017 through 2021, Papini’s request for victim assistance caused approximately 35 payments totaling over $30,000, including for visits to her therapist and for the ambulance that transported her to the hospital after her return.
“When a young mother went missing in broad daylight, a community was filled with fear and concern,” said U.S. Attorney Talbert. “Shasta County Sheriff’s Office immediately began investigating, calling on the assistance of the FBI. Countless hours were spent following leads, all in an effort to bring this woman back to her family. Three weeks later, she was found 146 miles south of where she disappeared, and the focus went from trying to find her to trying to find her abductors. Ultimately, the investigation revealed that there was no kidnapping and that time and resources that could have been used to investigate actual crime, protect the community, and provide resources to victims were wasted based on the defendant’s conduct.”
“This case exemplifies the FBI’s commitment to working tirelessly with law enforcement partners and prosecutors to examine all facts and seek the truth, no matter how long that process takes or how complex the analysis may be,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “We are grateful for the dedication of the agents, investigators, lab technicians, professional staff, and prosecutors who aided our collaborative fact-finding efforts. We are relieved that the community is not endangered by unknown, violent kidnappers, and thank the public and media for their patience and strong support for this case since the initial reports of Sherri Papini’s disappearance.”
“The Shasta County Sheriff’s Office is very thankful for the partnerships with all of the local, state, and federal allied agencies that have been involved with this investigation for the last five plus years,” said Sheriff Johnson. “The arrest of Sherri Papini was made possible by the outstanding hard work of a multitude of agents, detectives, DOJ criminalist, forensic analyst, crime scene investigators and support staff members that were assigned to this investigation. Everyone involved in this investigation had one common goal; to find the truth about what happened on Nov. 2, 2016 with Sherri Papini and who was responsible. The 22-day search for Sherri Papini and subsequent five-year search into who reportedly abducted her was not only taxing on public resources but caused the general public to be fearful of their own safety, a fear that they should not have had to endure. The Sheriff’s Office has appreciated the support and patience from the citizens of Shasta County and abroad. This investigation has always been a priority to get solved for the Sheriff’s Office as well as for our investigating partners at the FBI and the California Department of Justice’s Bureau of Forensic Services and Bureau of Investigation.”
“At the California Department of Justice, we're proud of the work that our investigators and forensic experts do each and every day to provide critical investigative leads to our law enforcement partners across California,” said California Attorney General Rob Bonta. “No matter the circumstances, our team is committed to the facts. While this case deals with a tough situation, we'll continue to do our part to help secure justice. Thank you to our partners at the federal and local level for your commitment to seeing this case through.”
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.
If convicted of making false statements to a federal law enforcement officer, Papini faces a maximum statutory penalty of five years in prison and a fine up to $250,000. If convicted of mail fraud, she faces a maximum statutory penalty of 20 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.
Legal Community Holds the Sacramento Region Diversity Career Fair to Great SuccessRead the Press Release
SACRAMENTO, Calif. — The Sacramento Region Diversity Career Fair was held on February 26 and connected employers with diverse legal candidates for future and current job openings, announced the United States Attorney’s Office for the Eastern District of California, the University of the Pacific McGeorge School of Law, the UC Davis School of Law, and the Federal Bar Association Sacramento Chapter.
The Diversity Career Fair is the first legal career fair in the Sacramento region with an online platform where employers can post legal jobs, and law students and attorneys can submit applications. The Diversity Career Fair also provided employers, law students, and attorneys with the opportunity to connect in person, and included a panel discussion featuring federal and state court judges, and practicing attorneys. A wide variety of employers, bar associations, law students, attorneys, and judges attended the Diversity Career Fair held at McGeorge School of Law.
“The Sacramento Region Diversity Career Fair helped bring our diverse legal community together to work on the shared goal of promoting and encouraging diversity,” said U.S. Attorney Phillip A. Talbert. “It was inspiring. The United States Attorney’s Office is committed to continuing these important efforts with our law schools, bar associations, and the larger legal community.”
“I am incredibly honored and proud that McGeorge School of Law was selected to host the inaugural Sacramento Region Diversity Career Fair with partner institutions in Sacramento, and the nearly 40 employers who attended,” said Michael Hunter Schwartz, Dean of McGeorge School of Law. “While there is still plenty of work that needs to be done to continue diversifying the legal profession, this career fair was an important early step in that ongoing journey and was a fantastic opportunity to connect students with employers invested in this critical work.”
“We were so pleased to partner in presenting the inaugural Sacramento Region Diversity Career Fair, which provided a wonderful opportunity for our students to connect with employers who prioritize diversity in the legal profession,” UC Davis School of Law Dean Kevin R. Johnson said. ”Diversity, equity and inclusion are primary principles at Martin Luther King Jr. Hall, and this event helped us further our mission. Many thanks to the outstanding employers who participated, and to our partner organizations for allowing us to participate in this groundbreaking event.”
The Sacramento Region Diversity Career Fair was co-sponsored by all of the affinity bar associations in Sacramento, including the Asian/Pacific Bar Association of Sacramento (ABAS), Cruz Reynoso Bar Association, Leonard M. Friedman Bar Association, Sacramento Filipino American Lawyers Association (SacFALA), South Asian Bar Association (SABA), SacLegal Sacramento’s LGBTQ+ Bar Association, Wiley Manuel Bar Association (WMBA), Women Lawyers of Sacramento (WLS), and by the Sacramento County Bar Association.
For more information: https://fbasacramento.org/sacramentodiversitycareerfair/
Fresno Man with Prior Violent Felony Record Charged with Federal Firearms OffenseRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Richard Ricardo, 26, of Fresno, charging him with being a felon in possession of firearms and ammunition, U.S. Attorney Phillip A. Talbert announced.
According to court documents, a law enforcement officer pulled Ricardo over for a traffic violation. During the stop, the officer determined that Ricardo was driving on a suspended license, in violation of the California Vehicle Code. Before towing the car, officers searched it in accordance with the department’s inventory procedures. Inside the car, officers found firearm parts capable of being assembled into an operable firearm, ammunition, and firearm magazines. Ricardo is prohibited from possessing firearms and ammunition because of his prior felony convictions, including a prior conviction for assault with a deadly weapon.
This case is the product of an investigation by the Fresno Police Department and the Department of Homeland Security Investigations. Assistant U.S. Attorney Justin J. Gilio is prosecuting the case.
If convicted, Ricardo 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 State Employee Sentenced to over 5 Years in Prison for $2M Scheme to Defraud the Office of AIDSRead the Press Release
SACRAMENTO, Calif. — Schenelle M. Flores, 46, of Sacramento, was sentenced today to five years and 10 months in prison and ordered to pay over $2 million in restitution for organizing a scheme to divert funds from the California Department of Public Health, U.S. Attorney Phillip A. Talbert announced. She was ordered to begin serving her sentence on May 18, 2022.
According to court documents, Flores used her employment at the Office of AIDS, within the California Department of Public Health, to coordinate the fraud scheme between December 2017 and November 2018. The Office of AIDS is responsible for working on behalf of the State of California to combat the HIV and AIDS epidemic. Flores’s scheme involved directing a state contractor to make payments allegedly on behalf of the Office of AIDS and causing the contractor to charge those payments to the state. As part of the scheme, Flores caused the contractor to pay for personal expenses on its debit cards, order gift cards for personal use, and pay false invoices to shell companies for services allegedly provided to the Office of AIDS. Flores, other participants in the scheme, and their families and friends obtained at least $2 million in personal benefits, including cash, luxury suites at sports games, and vacations.
This case is the product of an investigation by the Federal Bureau of Investigation and was referred by the California Department of Public Health and the California Highway Patrol. Assistant U.S. Attorneys Miriam R. Hinman and Christopher S. Hales are prosecuting the case.
Another former state employee, Christine M. Iwamoto, 47, of Sacramento, pleaded guilty on Oct. 28, 2021, to wire fraud and conspiracy to commit money laundering in a related case, United States v. Iwamoto, 2:21-cr-193-TLN. Iwamoto is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on April 7, 2022. For the wire fraud count, Iwamoto faces a maximum statutory penalty of 20 years in prison and a fine of $250,000 or twice the gross gain or loss, whichever is greater. For the count of conspiracy to commit money laundering, Iwamoto faces a maximum statutory penalty of 20 years in prison and a fine of $500,000 or twice the property involved in the transactions, whichever is greater. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Sacramento County Man Sentenced to 10 Years in Prison for Armed Robbery of a U.S. Mail Carrier and Bank FraudRead the Press Release
SACRAMENTO, Calif. — Damian Deleal, 33, of Carmichael, was sentenced today to 10 years and one month in prison for armed robbery of a U.S. mail carrier and bank fraud, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in March 2018, Deleal conspired with others, including Jacey Powell to rob a U.S. mail carrier of a postal service key that could open numerous residential cluster mailboxes in Sacramento County. Deleal conspired to obtain the key so he and his co-conspirators – including Jacey Powell, Brandon Moses, and Loren Patrick – could steal bankcards, checks, and other financial instruments from the mail.
On March 9, 2018, in South Sacramento, an unnamed co-conspirator robbed a mail carrier at gunpoint and forced the victim to hand over a postal service key. During the next few days, Deleal, Powell, Moses, and Patrick used the key to steal mailed bankcards and checks. They then attempted to use these items to purchase goods and obtain cash.
Powell and Deleal further conspired to claim reward money offered for information relating to the robbery and the stolen postal service key. In executing this plan, they planted the stolen key on Moses while he was sleeping in his car and called the U.S. Postal Service to report Moses’ location and inquire about the reward. After receiving this tip, investigators worked quickly to make arrests and learned that Deleal orchestrated the conspiracy and related crimes.
“Prosecuting robberies like this one is important to promote respect for the law and provide just punishment,” said U.S. Attorney Talbert. “Mail carriers play an important part in the everyday workings of our country’s mail system, economy, and critical infrastructures. They should be able to do their jobs without the fear of being robbed or assaulted.”
“This sentence demonstrates clearly that Postal Inspectors do not tolerate violence directed at USPS employees and criminal exploitation of the U.S. Mail,” said Rafael Nuñez, Inspector in Charge of the U.S. Postal Inspection Service San Francisco Division. “I want to thank the U.S. Attorney’s Office for the Eastern District of California for prosecuting this serious case, as well as our law enforcement partners for their crucial assistance.”
This case was the product of an investigation by the U.S. Postal Inspection Service, the Sacramento County Sheriff’s Department, and the Sacramento Police Department. Assistant U.S. Attorney Robert J. Artuz prosecuted the case.
Moses, Patrick, and Powell pleaded guilty to federal charges and were sentenced in the following related cases in this district: U.S. v. Patrick, 2:18-cr-79 (two months in prison), U.S. v. Moses, 2:18-cr-90 (two years and 10 months in prison), and U.S. v. Powell, 2:18-cr-83 (two years in prison).
Modesto Hells Angels Motorcycle Club Prospect Pleads Guilty to Drug TraffickingRead the Press Release
FRESNO, Calif. — Michael Pack, 35, of Modesto, pleaded guilty today to possession with intent to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Pack, a prospect of the Hells Angels Modesto Motorcycle Club, was part of a drug trafficking conspiracy led by Hells Angels President Randy Picchi. The drug conspiracy involved Picchi’s wife, Tina Picchi, Michael Mize, and Michael Pack. Randy Picchi directed Tina Picchi to regularly deliver drugs to Mize and other individuals in Ceres. Randy Picchi also enlisted Pack to help obtain methamphetamine on at least one occasion. Pack was stopped by law enforcement and found to have 499 grams of methamphetamine in his possession.
This case is the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the IRS-Criminal Investigation, the Modesto Police Department, the Turlock Police Department, the Stanislaus County District Attorney’s Office, the California Department of Corrections and Rehabilitation, and the California Highway Patrol. Assistant U.S. Attorneys Ross Pearson and Laurel Montoya are prosecuting the case.
Pack is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on May 23, 2022. Pack faces a maximum statutory penalty of 40 years in prison, a mandatory minimum sentence of five 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.
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.
Former Members of Tribal Leadership Sentenced for Multimillion Dollar Embezzlement SchemeRead the Press Release
SACRAMENTO, Calif. — Three former leaders of the Paskenta Tribe of Nomlaki Indians were sentenced today for a conspiracy to embezzle or steal from a tribal organization, as well as tax fraud and tax evasion offenses, U.S. Attorney Phillip A. Talbert announced.
U.S. District Judge John A. Mendez sentenced John A. Crosby, 56, of Redding, to four years and nine months in prison and to pay a $10,000 fine; Ines S. Crosby, 76, of Orland, to four years and nine months years in prison; and Leslie A. Lohse, 67, of Glenn, to three years and five months in prison. Lohse has paid $902,208 in restitution prior to today’s sentencing hearing. A hearing will be held on April 19, 2022, to determine the amount of restitution John Crosby and Ines Crosby will pay.
According to court documents, from approximately January 2009 through May 2014, the defendants took millions of dollars from the Paskenta Tribe of Nomlaki Indians without tribal or legal authority, taking advantage of their positions on the Tribal Counsel and in prominent leadership positions in the tribe. The defendants used this embezzled money to: buy homes; build swimming pools, decks and koi ponds at their personal residences; purchase vehicles; go on luxury vacations (including trips to Africa, South America, and Hawaii, as well as private and chartered jet travel); buy high-value entertainment; pay familial expenses; and purchase precious metals. John Crosby and Leslie Lohse did not declare these embezzled amounts on their respective tax returns as income, while Ines Crosby intentionally failed to file tax returns between 2010 and 2014. All three individuals then took a series of steps to attempt to conceal their actions: they created a written employment agreement in 2014 that appeared to be from 2001 and purported to authorize their use of Tribal funds, and then told federal investigators that the document was from 2001, knowing at the time that that was not true.
“The defendants lived a lavish lifestyle at the expense of the Paskenta Tribe of Nomlaki Indians and were undeterred by the damage their conduct would bring to the Tribe, whose members trusted them with most of their crucial operational positions,” said U.S. Attorney Talbert. “The defendants’ criminal conduct occurred on a regular basis over a period of many years. Today’s sentences should send a strong message to other would-be criminals of the consequences for serious white-collar crime.”
“The emotional and financial damage these defendants have caused to the Tribe cannot be undone. Not only did the defendants steal millions of dollars to line their pockets and failed to report their ill-gotten gains, but their actions also eroded Tribe members’ faith in their government, causing fear and distrust,” stated IRS-Criminal Investigation Special Agent in Charge Mark H. Pearson. “IRS-Criminal Investigation will not standby and tolerate this type of criminal conduct. We remain committed to ensuring those in positions of power are held accountable when that position is exploited for personal gain.”
“These defendants abused the trust of their own tribe and community, diverting millions of dollars from tribal accounts to fund lavish, unauthorized personal expenditures rather than help tribe members,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “This case exemplifies our commitment to conducting thorough investigations and working with our law enforcement partners to ensure justice for crime victims. We thank IRS Criminal Investigation for their strong, continued partnership and commitment to collaborating with us to seek justice for victims of white collar crime.”
This case was the product of an investigation by the IRS-Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorney Christina McCall prosecuted the case.
Leader of MS-13 Gang in Mendota Sentenced to More Than 10 Years in Prison for Drug Trafficking and Assault with a Deadly WeaponRead the Press Release
FRESNO, Calif. — Denis Barrera-Palma, 27, of Mendota, was sentenced Tuesday, Feb. 22, 2022, to 10 years and one month in prison for assault with a deadly weapon in aid of racketeering and conspiracy to distribute and to possess with intent to distribute methamphetamine, cocaine, and marijuana, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Barrera-Palma was the leader in Mendota of La Mara Salvatrucha (MS-13), a violent criminal street gang that engages in racketeering activity, including murder, kidnapping, extortion, and drug trafficking. On May 14, 2018, Barrera-Palma, along with others, assaulted another individual with a pipe in front of an elementary school in Mendota in order to gain entrance to, or maintain or increase his status within MS-13. On Feb. 28, 2020, Barrera‑Palma pleaded guilty to the charges.
Barrera-Palma was also the leader of MS-13’s drug trafficking conspiracy in Mendota. MS-13 engaged in street level drug sales to fund various of the gang’s criminal activities. The gang, through Barrera-Palma, would acquire drugs, and distribute them out among members with a directive that they sell the drugs within a certain period of time and return all proceeds to the gang. Those proceeds would then be used for a variety of purposes, including funding trips to obtain drugs or commit acts of violence, putting money on the books of incarcerated MS-13 members, sending money to MS-13 members in El Salvador, and obtaining more narcotics to sell.
The investigation began after reports that MS-13 had established a presence in and around Mendota, a Central Valley town 35 miles west of Fresno. Investigators found evidence of broad criminal activity, including murder, assault, firearms possession and drug trafficking activity. In August 2018, 25 individuals associated with MS-13 were arrested on federal and state charges in connection with their gang activities, including assault with a dangerous weapon in aid of racketeering and conspiracy to distribute and possess with intent to distribute controlled substances. All 15 of Barrera-Palma’s federal co-defendants have been sentenced.
The investigation was conducted by the California Department of Justice and California Highway Patrol Special Operations Unit, the Multi-Agency Gang Enforcement Consortium (MAGEC), the Federal Bureau of Investigation, Homeland Security Investigations (HSI), the Fresno County District Attorney’s Office, the Fresno County Sheriff’s Office, and the California Department of Corrections and Rehabilitation Special Services Unit (SSU). Assistant U.S. Attorneys Ross Pearson and Kimberly Sanchez prosecuted this case. Senior Deputy District Attorney Dennis Lewis is working with the team and prosecuting related cases in Fresno County Superior Court.
This effort was 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 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.
First Defendant in $25 Million, Prison-Based Unemployment Insurance Fraud Scheme Pleads GuiltyRead the Press Release
FRESNO, Calif. — Daryol Richmond, 31, a Kern Valley State Prison inmate pleaded guilty today to conspiracy and aggravated identity theft charges for his role in a $25 million unemployment insurance fraud scheme during the COVID-19 pandemic, U.S. Attorney Phillip A. Talbert announced.
According to the plea agreement, Richmond obtained the personally identifiable information (PII) for other individuals, including inmates and non-inmates, without their authorization. He then provided this information to his co-conspirators inside and outside of prison through emails and jail calls. The co-conspirators then filed applications for unemployment insurance with the California Employment Development Department (EDD) that falsely stated that the inmates, minor children, and others previously worked as clothing merchants, handymen, and other jobs, and recently became unemployed because of the COVID-19 pandemic. In the plea agreement, Richmond acknowledged that he was responsible for $1.4 million worth of the fraudulent claims.
This case is the product of an investigation by the Federal Bureau of Investigation, California Department of Corrections and Rehabilitation, EDD, and Department of Labor Office of Inspector General. Assistant U.S. Attorney Joseph Barton is prosecuting the case.
Richmond is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Nov. 14, 2022. Richmond faces up to 20 years in prison and a $250,000 fine for the conspiracy charge. He also faces a mandatory, additional two years in prison for the aggravated identity theft charge. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account several variables.
Charges are pending against the other defendants in this case: Telvin Breaux, 29, an inmate at the California Correctional Institution in Tehachapi; Holly White, 30, of Los Angeles; Cecelia Allen, 33, of Downey; Fantasia Brown, 33, of Los Angeles; Tonisha Brown, 28, of Los Angeles; Fantesia Davis, 32, of Victorville; and Shanice White, 28, of Hawthorne. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.