Eastern District of California
Press releases recorded for this federal judicial district.
Merced Man Indicted for Possessing and Manufacturing 10 Destructive DevicesRead the Press Release
FRESNO, Calif. — A federal grand jury returned an eight-count indictment today against Wes Parker McDaniel, 52, of Merced, charging him with four counts of possessing unregistered destructive devices, manufacturing destructive devices, impersonating a federal agent, being a felon in possession of firearms and ammunition, and malicious destruction of property by means of an explosive, Acting U.S. Attorney Phillip A. Talbert announced.
According to the indictment, between Feb. 1, 2021, and June 22, 2021, McDaniel manufactured approximately 10 destructive devices, which were not registered to him in the National Firearms Registration and Transfer Record, and possessed those devices on four separate occasions in Merced and Kings Counties. On June 20, 2021, one of those devices is alleged to have caused damage to residential rental properties in Merced.
In addition, McDaniel unlawfully possessed a rifle and ammunition. As a convicted felon, he is prohibited from possessing firearms, including destructive devices, and ammunition.
The indictment also charges that on June, 20, 2021, McDaniel falsely represented himself to be a Special Agent of the National Security Agency for the purpose of arresting another person.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Merced Police Department, the Lemoore Police Department, and the Tulare County Sheriff’s Office. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
If convicted, McDaniel faces a mandatory minimum prison term of five years in prison and a maximum prison term of 20 years if convicted of malicious destruction of property by means of explosive materials. He faces a maximum statutory penalty of 10 years in prison for each count of possessing unregistered destructive devices, manufacturing destructive devices, and being a felon in possession of firearms and ammunition. He faces an additional three years in prison for the impersonation charge. Each of the charges also carries a maximum fine of $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case 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.
Man Charged with Traveling to Have Sex with Minor and Possession and Production of Child PornographyRead the Press Release
FRESNO, Calif. — A federal grand jury returned a five-count indictment today against Aldo David Alcaraz, 27, of Long Beach, charging him with production and possession of child pornography, attempted coercion and enticement of a minor, and attempted transfer of obscene material to a minor, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, between December 2020 and January 2021, Alcaraz produced nine videos of himself engaged in sex acts with a minor victim in Tulare County. Alcaraz is also charged with possessing sexual images of minors, including minors under the age of 12 and another set of videos that Alcaraz produced of himself engaged in sex acts with a different minor victim. Finally, according to court documents, in January 2021, Alcaraz traveled to Kern County in an attempt to meet a minor to engage in sex acts, and he sent obscene images to that minor.
This case is the product of an investigation by Homeland Security Investigations and the Kern County Sheriff’s Office. Assistant U.S. Attorney Laura D. Withers is prosecuting the case.
Anyone who has information related to this case or who believes that they or their child may be a victim can contact HSI at its tollfree tip line: 1-866-347-2323 or fill out the online tip form at https://www.ice.gov/webform/ice-tip-form.
If convicted, Alcaraz faces a maximum statutory penalty of 30 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 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 Indicted for Illegally Possessing AmmunitionRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Marc Davis, 48, of Fresno, charging him with being a felon in possession of ammunition, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on March 21, 2021, Davis engaged in an argument with another man in Fresno. Davis had a loaded, unserialized AR-15 style rifle in his hand during the argument. Police found Davis a short time later, and found an AR-15 style rifle along a path Davis had walked. Davis has multiple prior felony convictions, including convictions for infliction of corporal injury on a spouse or cohabitant and second degree burglary.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fresno Police Department. Assistant U.S. Attorney Kimberly A. Sanchez is prosecuting the case.
If convicted, Davis 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.
Guilty Plea in a Mail Theft and Bank Fraud Scheme Committed Throughout Northern CaliforniaRead the Press Release
SACRAMENTO, Calif. — Desiree Brianna Bello, 27, of Contra Costa County, pleaded guilty Monday to bank fraud and possession of stolen U.S. mail, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, between April and August 2020, Bello and co-defendant Richard Beldon Waters III, 29, 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 off the lot, which was valued at approximately $55,490.
Additionally, on two separate occasions in May 2020, Bello knowingly possessed stolen U.S. 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. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
Bello is in federal custody and is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on Oct. 25, 2021. Bello faces a maximum statutory penalty of 30 years in prison and a $1 million fine for bank fraud and five years in prison and a $250,000 fine for possession of stolen U.S. mail. 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 consider a number of variables.
Charges are pending against Waters. The charges against Waters are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Stanislaus County Woman Sentenced for Using Her Sister’s Social Security Number to Hide Employment Income from the Social Security AdministrationRead the Press Release
FRESNO, Calif. — Linda Expose, 56, of Salida, was sentenced today by U.S. District Judge Dale A. Drozd to two years in prison for aggravated identity theft, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, over the course of two decades Expose unlawfully received over $170,000 in Social Security benefit payments. Expose received those benefits under her own Social Security number while she also earned employment income under her sister’s Social Security number. Her scheme concealed her wages from the Social Security Administration. That unreported income would have rendered her ineligible for a significant portion of the Social Security benefits that she received. After years of collecting both sources of income, Expose then tried to file for Social Security benefits under her sister’s Social Security number. Expose pleaded guilty on Jan. 22, 2020.
“This sentence sends a clear message that individuals who attempt to cheat federally funded programs risk significant consequences,” said Acting U.S. Attorney Talbert. “These programs provide vital support to deserving members of our society, and our office will continue to protect them.”
“We will continue to pursue those who misuse the Social Security number of others. This individual abused Social Security disability benefits and stole Supplemental Security Income — money that is intended as a critical safety net for those in need,” said Gail S. Ennis, Inspector General for the Social Security Administration. “I thank the U.S. Attorney’s Office for their efforts in prosecuting this case and holding this individual accountable.”
This case was the product of an investigation by the Social Security Administration Office of the Inspector General. Assistant U.S. Attorneys Justin J. Gilio and Henry Carbajal prosecuted the case.
Modesto Men Plead Guilty to Drug ConspiracyRead the Press Release
FRESNO, Calif. — Modesto residents Genaro Serrato Calles, 49, and Antonio Valencia Hernandez, 65, pleaded guilty today to conspiring to distribute methamphetamine and heroin, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Serrato and Valencia, along with Antonio Castellanos, 38, of Whittier, and Jose Reyes Pineda, 48, of Anaheim, were charged with conspiring over a two-year period to distribute methamphetamine and heroin in Stanislaus and San Joaquin Counties. In pleading guilty, Serrato acknowledged that he supplied heroin to Valencia for distribution and also had Valencia pick up about 11 pounds of methamphetamine from Reyes in Anaheim for distribution in Modesto. Serrato also made arrangements with Castellanos to store and repackage for distribution about 20 pounds of methamphetamine at a stash house in Modesto.
This case is the product of an investigation by the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; Homeland Security Investigations; the Central Valley High Intensity Drug Trafficking Area (HIDTA) task force; the San Joaquin County Metropolitan Narcotics Task Force; the Stanislaus Drug Enforcement Agency; and the Orange County Sheriff’s Special Investigations Bureau. Assistant U.S. Attorneys Karen Escobar and Melanie Alsworth are prosecuting the case.
Serrato and Valencia are scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Nov. 8, 2021. Castellanos previously entered a guilty plea to the drug conspiracy and is scheduled to be sentenced on Oct. 18, 2021. Serrato and Valencia face a maximum statutory penalty of life in prison, a statutory mandatory minimum prison term of 10 years, and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Central Valley Fruit Broker Member Pleads Guilty and Agrees to Pay $1.25 Million to Resolve Criminal and Civil Allegations of Fraudulent Crop Insurance ClaimsRead the Press Release
FRESNO, Calif. — Ralph Hackett, 66, of Clovis, pleaded guilty today to aiding and abetting mail fraud and agreed to pay $650,000 in criminal restitution for helping another individual submit a fraudulent crop insurance claim for table grapes for the crop year 2013, Acting U.S. Attorney Phillip A. Talbert announced.
In a civil settlement with the United States, Hackett also agreed to pay another $605,000 to resolve allegations of crop insurance fraud for the crop years 2012 through 2015.
According to court documents, Hackett was a member and manager of a Central Valley fruit broker through which the other individual sold various crops, including table grapes, from the individual’s farming operation in Fresno and Tulare counties. At the other individual’s request, Hackett instructed one of his employees to provide altered records to the individual that underreported the amount of table grapes the individual sold through the fruit broker so the individual could submit a fraudulent crop insurance claim for the grapes for the crop year 2013. Hackett then instructed the same employee to falsely confirm the accuracy of the altered records when the insurance company called for verification.
Hackett further acknowledged that he helped the other individual submit additional fraudulent crop insurance claims for the crop years 2012 through 2015 and, all together, caused more than $650,000 in fraudulent insurance payments to be made to the individual’s farming operation. The insurance payments were federally backed by the Federal Crop Insurance Corporation (FCIC) and were made by checks sent through the mail. The civil settlement resolves claims that Hackett violated the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) during those years.
The False Claims Act allows the government to recover damages and penalties for the presentation of false claims for payment to the United States. FIRREA allows the government to impose civil penalties for violations of enumerated federal criminal statutes, including fraud on the FCIC.
This case is the product of an investigation by the United States Department of Agriculture’s Office of the Inspector General and Risk Management Agency Special Investigations Staff. Assistant U.S. Attorney Joseph Barton is prosecuting the criminal case and Assistant U.S. Attorney Matthew R. Belz handled the civil investigation.
Hackett is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Feb. 22, 2022. Hackett faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account several variables.
Man Charged with Violent Crimes in Sequoia National ParkRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Marvin Joseph Chang, 33, of Monterey Park, charging him with assault with a dangerous weapon, brandishing a firearm during a crime of violence, being a felon in possession of ammunition, and vandalism, Acting U.S. Attorney Phillip A. Talbert announced.
According to the indictment, on Feb. 19, 2021, within Sequoia National Park, Chang assaulted an individual with a firearm and brandished a semi-automatic 9 mm pistol. He also slashed the tire of a car in a parking lot inside the park. Chang subsequently was involved in a high-speed chase outside of the park that allegedly resulted in the shooting of a California Highway Patrol officer.
Chang is prohibited from possessing firearms and ammunition as a result of a prior felony conviction for assault with a deadly weapon involving infliction of great bodily injury.
This case is the product of an investigation by the National Park Service Investigative Services Branch; the Sequoia and Kings Canyon National Parks; the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the California Highway Patrol; the Tulare County Sheriff’s Office; and the Visalia Police Department. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
Chang is currently in custody in Tulare County.
If convicted, Chang faces a maximum statutory penalty of 10 years in prison on the assault and felon in possession of ammunition charges. If convicted of brandishing a firearm charge, he faces a mandatory minimum consecutive prison term of seven years. Each of the foregoing charges also carries a fine of up to $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Roseville Firearms Dealer Sentenced to 4 Years in Prison for Using Peace Officers’ Identities to Obtain and Sell New Off-Roster FirearmsRead the Press Release
SACRAMENTO, Calif. — Joseph John Deaser IV, 51, of Arizona, was sentenced today to four years in prison for aggravated identity theft and the illegal sale of firearms by a federally licensed dealer in violation of state law, Acting U.S. Attorney Phillip A. Talbert announced.
Under state law, California has an approved roster of firearms that may be sold to the public. A Federal Firearms Licensee is required to make sure any handgun sold is on the approved roster. There is an exemption, however, that permits licensed dealers to sell “off-roster” firearms, or firearms that do not appear on the approved roster, to sworn peace officers. Peace officers who own non-roster firearms may generally sell them to the public in a private sale, as long as the sale is brokered by a Federal Firearms Licensee.
According to court documents, Deaser was a federally licensed firearm dealer who owned and operated Capital Gun Club, a members-only gun club in Roseville, California. Between December 2014 and April 2018, Deaser circumvented California’s law by conducting at least 50 straw purchases of new off‑roster firearms using the names and personally identifiable information (PII) of six peace officers that he had obtained through legitimate firearm transactions. By falsely reporting sales to peace officers, Deaser obtained new “off-roster” firearms registered to peace officers that he then sold to members of his private gun club, who could not have otherwise purchased the firearms.
In order to complete many of the transactions, Deaser completed and signed federal and state firearm transaction forms that the purchaser was required to complete using an officer’s identity as the purchaser. Deaser also placed his finger print — almost always his middle finger — on the state firearm transaction forms in the box designated for the “Purchaser’s Right Thumb Print.”
Publicly, Deaser was an advocate for gun safety and universal background checks, who testified on several occasions before federal and state legislatures. In imposing the sentence, Judge Nunley found that Deaser had abused his position of trust as a Federally Licensed Firearms dealer and remarked, “I think it’s totally acceptable to, on the one hand, look at the things he’s done, but on the other hand, look at the life he was living behind the scenes. You know … on the one hand, he was … advocating for sensible gun laws before Congress, before local governments, before organizations, and on the other side of it, he was trying to circumvent those very same gun laws.”
“Firearms trafficking is a primary focus of ATF as one of the most pressing problems we face today,” said Special Agent in Charge Patrick Gorman, San Francisco Field Division, Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). “ATF’s strategy is multi-faceted and includes the inspection of licensed gun dealers, the identification/arrest of straw purchasers, and a greater intelligence-driven emphasis by identifying and targeting individuals responsible for organizing and directing illegal firearms trafficking operations in the United States. When criminal wrongdoing by a Federal Firearms Licensee (FFL) is suspected, the FFL will be thoroughly investigated. FFLs, as a whole, have the responsibility to ensure that firearms are not illegally diverted from lawful commerce. The vast majority who comply with the regulations suffer when a small number of corrupt FFLs threaten public safety by abusing the secondary market to obtain and sell firearms illegally for their own greed. ATF will continue to work alongside our law enforcement partners to ensure crimes of this nature are investigated and prosecuted.”
“Circumventing California law to illegally sell firearms by using the identities of peace officers in order to make a profit is a crime that violates the public’s trust and puts the safety of Californians at risk,” said California Attorney General Rob Bonta. “Successful cooperation with our law enforcement partners has put an end to this scheme and brought resolution to this case.”
Deaser was charged and pleaded guilty in May 2019.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the California Depart of Justice’s Bureau of Firearms. Assistant U.S. Attorneys Michael D. Anderson and Shelley D. Weger are prosecuting the case.
Stockton Woman Pleads Guilty to Unemployment Benefits and Identity-Theft Fraud SchemesRead the Press Release
SACRAMENTO, Calif. — Hopelyn Rhiannon Ausk, 25, of Stockton, pleaded guilty today to mail fraud, bank fraud and aggravated identity theft, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Ausk engaged in two separate fraud schemes that caused significant harm to the U.S. Department of Labor’s Unemployment Insurance (UI) program and identity-theft victims throughout Northern California.
First, between May and September 2020, Ausk perpetrated a fraud scheme that targeted California’s unemployment insurance benefit program administered by the Employment Development Department (EDD). Under the 2020 CARES Act and the Pandemic Unemployment Assistance (PUA) program, EDD was responsible for administering benefits for qualifying residents who could no longer find employment due to the COVID-19 pandemic. In this scheme, Ausk used victims’ personally identifiable information (PII) to submit at least 20 fraudulent claims to EDD. For 12 of these claims, EDD paid out over $160,000 in the form of Bank of America debit cards that were mailed to Ausk’s residence.
Second, between January 2019 and September 2020, Ausk perpetrated a bank fraud scheme that involved stealing U.S. mail and harvesting bankcards, financial information, checks, and PII for use in fraudulent activity. For example, in July 2019, she used a stolen Bank of America debit card to purchase online merchandise from Louis Vuitton for delivery to her residence.
This case is the product of an investigation by the U.S. Postal Inspection Service and the Stockton Police Department. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
Ausk is scheduled to be sentenced by U.S. District Judge John A. Mendez on Nov. 9, 2021. Ausk faces a maximum statutory penalty of 20 years in prison for mail fraud, 30 years in prison for bank fraud, a mandatory additional sentence of two years in prison and a maximum fine of $250,000 on 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 consider a number of variables.
Jury Convicts Leader of Nevada City-Based Mortgage Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — On Monday, a federal jury found James Christopher Castle, 57, formerly of Petaluma, guilty of 35 counts in a bank fraud scheme that sought to fraudulently eliminate home mortgages and then profit on the subsequent home sales, Acting U.S. Attorney Phillip A. Talbert announced. This was the first jury trial in the Eastern District of California since the onset of the COVID-19 pandemic in March 2020.
“Castle decided to game the system so that he could profit in the midst of the then looming financial crisis, to which his actions contributed,” said Acting U.S. Attorney Talbert. “We are gratified by the jury’s verdict for this significant fraud scheme.”
“Mortgage fraud is not a victimless crime. Identifying and investigating those who abuse the system for their own personal gain ensures the mortgage system is safer and fairer for everyone. The FBI affirms our commitment to pursuing those who leverage false statements made to financial institutions to enrich themselves while threatening the stability of the banking system and taking advantage of distressed homeowners desperate to retain their homes or start anew without significant losses,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “We thank our domestic and international law enforcement partners for their continued efforts to ensure fugitives will face justice regardless of the distance traveled or time that has elapsed.”
According to court documents, in May 2020, Castle was extradited to the United States from Australia. Castle had fled to New Zealand and then Australia in 2011 when it became clear that his scheme was unraveling. After a three-year extradition process, Castle was transported back to the United States by the U.S. Marshals Service to stand trial in the United States.
“The U.S. Marshals Service successfully conducted this extradition during the height of the pandemic,” said Acting U.S. Marshal Lasha R. Boyden for the Eastern District of California. “To minimize exposure, the extradition was conducted expeditiously with minimal time on the ground. All safety precautions were implemented, and Mr. Castle was extradited back to the United States without incident.”
Between April 22, 2010, and Nov. 18, 2011, Castle was the leader of a conspiracy that ran a “mortgage elimination program” that purported to help distressed homeowners avoid foreclosure. The conspirators fraudulently altered the chain of title on residential properties, sold the properties, and received the sales proceeds.
As a requirement for participation in the “mortgage elimination program,” the conspirators enrolled homeowners as members in a Nevada City-based church named Shon-te-East-a, Walks With Spirit, or its successor entity Pillow Foundation. The conspirators told the homeowners that these entities would offer protection against the banks.
Castle directed other co-conspirators in all aspects of the mortgage elimination program, including recruiting homeowners into the scheme, marshaling the necessary recorded documents, and guiding the homes through sale. Once the homeowner enrolled with Shon-te-East-a or Pillow Foundation, Castle would cause a sham deed of trust to be created and recorded, giving the impression that the homeowner had refinanced the mortgage loan with a new lender. In reality, the new lender was a fake entity controlled by the conspirators, and the homeowner owed no money to the purported new lender.
The next step in the process was also a recorded document. The conspirators caused a fake deed of reconveyance to be recorded, giving the appearance that the true mortgage loan had been discharged and that the true lienholder no longer had a security interest in the home.
With title appearing to be clear, the conspirators caused the sale of the home and split the proceeds between the co-conspirators and the homeowners.
In total, 37 properties were sold through the Shon-te-East-a conspiracy. The conspirators recorded fraudulent documents on an additional approximately 100 homes but were unable to sell these before the scheme unraveled.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Audrey B. Hemesath and Tanya B. Syed are prosecuting the case.
Three other co-defendants have previously entered guilty pleas. On April 21, 2017, Remus A. Kirkpatrick, formerly of Oceanside, pleaded guilty to one count of falsely making writings of lending associations. On May 26, 2017, Michael Romano, of Benicia, pleaded guilty to conspiracy. On July 14, 2017, Laura Pezzi, of Roseville, pleaded guilty to falsely making writings of lending associations.
In related cases, on Sept. 4, 2015, Tisha Trites and Todd Smith, both of San Diego, pleaded guilty to related charges.
Two other co-defendants, George B. Larsen and Larry Todt, were convicted of conspiracy and bank fraud following a jury trial in December 2017.
Co-defendant John Michael DiChiara passed away on Aug. 24, 2019, while awaiting trial.
Castle is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on Oct. 28, 2021, at which time he faces a maximum penalty of 30 years in prison and a $1 million fine for bank fraud, 10 years in prison and a $250,000 fine for falsely making documents of a lending association, and five years in prison and a $250,000 fine for conspiracy. 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.
Orangevale Man Pleads Guilty to Distribution of Child PornographyRead the Press Release
SACRAMENTO, Calif. — Daniel Wayne Benner, 35, pleaded guilty today to distribution of child pornography, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, between July 3 and 5, 2019, Benner distributed child pornography, using the Kik Messenger app. Benner used a smartphone, the internet, and Kik messenger to distribute to a person located in Arkansas a video and still images depicting minors engaging in sexually explicit conduct.. At the time of his arrest, Benner’s publicly accessible Facebook profile included a picture of a “My Little Pony” costume with a caption reading, “Rainbow Dash is looking to come to your birthday party, and she brings candy and music … contact me for quotes / She will travel anywhere in Sacramento County.” Benner stated that he and two friends were going to start a birthday party business but were unable to secure any customers.
This case is the product of an investigation by the FBI and the Internet Crimes Against Children Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant U.S. Attorney Christina McCall is prosecuting the case.
Benner is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on Oct. 25, 2021. Benner faces a mandatory minimum sentence of five years and a maximum statutory penalty of 20 years in prison, a $250,000 fine, and up to a lifetime of supervised release. 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.
Reno Man Pleads Guilty to Stealing Social Security BenefitsRead the Press Release
SACRAMENTO, Calif. — James Vincent Jr., 52, of Reno, Nevada, pleaded guilty today to theft of government property, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, the Social Security Administration (SSA) paid monthly Social Security disability benefits to Vincent’s father until the father’s death in October 2015. The benefits were automatically deposited into a joint bank account held by both Vincent and his father. Vincent did report his father’s death to SSA, but SSA continued to deposit benefit funds into the joint account from October 2015 through May 2020. During this five-year period, Vincent maintained control of the joint account and regularly withdrew and stole the post-death Social Security payments – totaling approximately $90,000 – for his own use.
This case is the product of an investigation by the Social Security Administration, Office of the Inspector General. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
Vincent is scheduled to be sentenced by U.S. District Judge John A. Mendez on Nov. 2, 2021. Vincent faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Vallejo Man Sentenced to over 6 Years in Prison for Bank Fraud and Identity Theft SchemeRead the Press Release
SACRAMENTO, Calif. — Matthew Core, 39, of Vallejo, was sentenced today by U.S. District Judge Kimberly J. Mueller to six years and three months in prison for committing bank fraud, aggravated identity theft, and possession of reproduced U.S. Postal Service keys, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, between February and August 2018, Core participated in a scheme to defraud banks in which he and others used counterfeit U.S. Postal Service keys to break into residential mailboxes throughout Northern California. The scheme’s participants stole mail from these mailboxes and harvested bankcards, personal and business checks, and government-issued IDs, all belonging to the mail-theft victims. They then altered some of the checks and bankcards with the intent to use them to defraud financial institutions.
In one instance, in April 2018, Core deposited an altered check issued by JP Morgan Chase Bank into his own bank account at an ATM in Vallejo. By depositing the altered check, Core knowingly used the identity of a mail-theft victim without legal authority. Core committed these acts with the intent to defraud JP Morgan Chase, which was insured by FDIC. Similarly, on Aug. 29, 2018, when Core and others were arrested in Granite Bay, Core knowingly possessed at least four counterfeit U.S. Postal Service keys and two U.S. Postal Service locks. He possessed these items with the intent to commit identity theft and bank fraud, including using them to steal U.S. Mail. On that same date, Core also possessed at least fifteen unauthorized bankcards.
In April 2020, after pleading guilty, Core sought pretrial release pending his sentencing based on his condition as a cancer survivor and vulnerability to contracting the COVID‑19 virus in jail. He was shortly released and admitted to a residential drug treatment program. Two months later, however, Core absconded from the drug treatment facility without permission, and a federal warrant was issued for his arrest. In July 2020, the defendant was arrested in South Lake Tahoe after he fled from police. During a search of his car, law enforcement officers found an assault rifle and an empty 15-round magazine for a Springfield .45‑caliber handgun in the trunk.
This case was the product of an investigation by the U.S. Postal Inspection Service, the Placer County Sheriff’s Office, the Vallejo Police Department, and the South Lake Tahoe Police Department. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
Core has been in custody since his July 2020 rearrest and will begin serving his sentence immediately.
West Sacramento Couple Indicted for Mail Fraud and Identity TheftRead the Press Release
SACRAMENTO, Calif. — A 12-count indictment was unsealed today charging West Sacramento residents Kimberly Acevedo, 50, and Philip Rich, 49, with mail fraud, aggravated identity theft, possession of stolen mail, and unlawful possession of 15 or more unauthorized access devices, Acting U.S. Attorney Phillip A. Talbert announced.
According to the indictment, between March 2019 and March 2021, Acevedo and Rich perpetrated a mail fraud scheme that involved theft of U.S. mail, identity theft, and unlawful possession of dozens of stolen bank cards. Generally, Acevedo and Rich obtained the personally identifiable information (PII) of victims and used that information to apply for new credit cards, debit cards, checkbooks, and other financial instruments to be sent to the victims’ real home addresses. The defendants then submitted change-of-address requests to USPS at www.usps.com using the victims’ PII. These change-of-address requests rerouted the victims’ mail to defendants’ shared home address, where they would open the mail and use its contents to make fraudulent purchases and cash fraudulent checks.
This case is the product of an investigation by the U.S. Postal Inspection Service and the Yolo County Sheriff’s Office. Assistant U.S. Attorney Denise N. Yasinow and Special Assistant U.S. Attorney Robert J. Artuz are prosecuting the case.
If convicted, Acevedo and Rich both face a maximum statutory penalty of 20 years in prison for mail fraud, five years in prison for possessing stolen mail, and 10 years in prison for possessing more than 15 unauthorized access devices. The defendants also face a mandatory additional sentence of two years in prison if convicted of aggravated identity theft and a maximum fine of $250,000 on each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Vice President of Modesto Hells Angels Motorcycle Club Pleads Guilty to Drug Trafficking ChargesRead the Press Release
FRESNO, Calif. — Michael Shafer, 33, of Modesto, pleaded guilty today to conspiracy to distribute and possess with intent to distribute heroin and conspiracy to distribute and possess with intent to distribute marijuana, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Shafer was the Vice President of the Hells Angels Motorcycle Club in Modesto in 2019. As part of a years-long investigation into the Hells Angels Motorcycle Club, investigators obtained a court-authorized wiretap for Shafer’s phone. The wiretapped calls and messages showed that Shafer was conspiring to distribute marijuana and heroin. Specifically, in April 2019, Shafer conspired with a former Hells Angels member who was incarcerated in Pleasant Valley State Prison to smuggle heroin into prison.
This case is the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service-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.
Shafer is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Oct. 22. Shafer 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.
Manager of Marijuana Cultivation on Shasta Trinity National Forest Sentenced to 10 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — Filemon Padilla Martinez, 56, of Mexico, was sentenced Thursday by U.S. District Judge Morrison C. England Jr. to 10 years in prison for conspiring to manufacture marijuana and depredation of federal lands, Acting U.S. Attorney Phillip A. Talbert announced.
Judge England also ordered Padilla Martinez to pay $24,778 in restitution.
According to court documents, Padilla Martinez conspired with three co-defendants to grow marijuana in the Tomhead Mountain area in Shasta-Trinity National Forest. Padilla Martinez recruited, trained, and supplied two of these co-defendants, whom he left to live and work on the site while he stayed either at a nearby stash house or at his residence in Ione, California. The marijuana grow on Tomhead Mountain consisted of 1,054 marijuana plants.
This case is the product of an investigation by the U.S. Forest Service, the Tehama County Sheriff’s Department, and the California Department of Fish and Wildlife with assistance from the Amador County Sheriff’s Office and the California Department of Justice. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.
Oscar Francisco-Diego and Francisco Gomez Sanchez, two of Padilla Martinez’s co-defendants, have been previously sentenced for their role in the conspiracy. Timothy Charles Wilson, the remaining co-defendant, is currently pending trial. The charges against Wilson are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Fresno Man Indicted for Fentanyl Trafficking and Illegal Firearm PossessionRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Jose Jesus Torres Garcia, 30, of Fresno, charging him with possessing fentanyl with intent to distribute it and possessing a firearm in furtherance of that drug trafficking offense, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on a Facebook Messenger group page dedicated to narcotics trafficking, Torres Garcia advertised the sale of narcotics, including counterfeit oxycodone pills stamped with an “M” on one side and a “30” on the other. On July 8, 2021, investigators executed a federal search warrant at Torres Garcia’s residence and seized several controlled substances, including the “M” “30” fentanyl pills, as well as a loaded, short-barreled AR-15 rifle with an extended magazine attached.
This case is 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 is prosecuting the case.
If convicted, Torres Garcia faces a maximum statutory penalty of life 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.
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 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.
Electrical Engineer Sentenced to More Than Five Years in Prison for Conspiring to Illegally Export to China Semiconductor Chips with Military UsesRead the Press Release
A California man was sentenced today to 63 months, or more than five years, in prison for his role in a scheme to illegally export integrated circuits with military applications to China the required filing of electronic export information. As part of his sentence, the Judge ordered Shih to pay $362,698 in restitution to the IRS and fined him $300,000.
Yi-Chi Shih, 66, of Hollywood Hills, was convicted on July 2, 2019, to one count of conspiracy to violate the International Emergency Economic Powers Act (IEEPA) and the Export Administration Regulations (EAR). Shih also was convicted of four counts of mail fraud, two counts of wire fraud, one count of conspiracy to gain unauthorized access to a protected computer to obtain information, one count of making false statements to an FBI agent, three counts of subscribing to a false tax return, and four counts of making false statements to the IRS about his foreign assets.
According to court documents, Shih defrauded a U.S. company that manufactured broadband, high-powered semiconductor chips known as monolithic microwave integrated circuits (MMICs) out of its confidential and proprietary business information that was part of its MMIC manufacturing services, according to trial evidence. As part of the scheme, Shih accessed the victim company’s web portal after obtaining that access through an associate who posed as a domestic customer seeking to obtain custom-designed MMICs that would be used solely in the United States. In this way, Shih concealed his true intent to export the U.S. company’s MMICs to the People’s Republic of China.
The victim company’s semiconductor chips have several commercial and military applications. MMICs are used in missiles, missile guidance systems, fighter jets, electronic warfare, electronic warfare countermeasures and radar applications. The MMICs Shih exported to China were intended for AVIC 607, a state-owned entity in the PRC.
Shih was the President of Chengdu GaStone Technology Company (CGTC), a Chinese company that was building a MMIC manufacturing facility in Chengdu. In 2014, CGTC was placed on the Commerce Department’s Entity List, according to court documents, “due to its involvement in activities contrary to the national security and foreign policy interest of the United States – specifically, that it had been involved in the illicit procurement of commodities and items for unauthorized military end use in China.”
Shih used a Hollywood Hills-based company he controlled – Pullman Lane Productions, LLC – to funnel funds provided by Chinese entities to finance the manufacturing of the MMICs by the victim company. Pullman Lane received financing from a Beijing-based company that was placed on the Entity List the same day as CGTC “on the basis of its involvement in activities contrary to the national security and foreign policy interests of the United States,” according to court documents.
Shih’s associate, Kiet Mai, pleaded guilty in December 2018 to one felony count of smuggling and was sentenced to 18 months’ probation and a $5,000 fine.
Acting Assistant Attorney General Mark Lesko of the Justice Department’s National Security Division and Acting U.S. Attorney Tracy Wilkison for the Central District of California made the announcement.
The FBI, the U.S. Department of Commerce’s Bureau of Industry and Security Office of Export Enforcement, and IRS Criminal Investigation investigated the case, with valuable assistance provided by the Royal Canadian Mounted Police.
Assistant U.S. Attorneys Judith A. Heinz, Melanie Sartoris, Khaldoun Shobaki, William M. Rollins, James C. Hughes and Daniel G. Boyle of the Central District of California prosecuted the case with assistance from Elizabeth Cannon, Deputy Chief of the National Security Division’s Counterintelligence and Export Control Section.
Department of Justice Announces Launch of Firearms Trafficking Strike Forces to Crack Down on Sources of Crime GunsRead the Press Release
SACRAMENTO, Calif. — The U.S. Department of Justice today launched five cross-jurisdictional strike forces to help reduce gun violence by disrupting illegal firearms trafficking in key regions across the country. Leveraging existing resources, the regional strike forces will better ensure sustained and focused coordination across jurisdictions and help stem the supply of illegally trafficked firearms from source cities, through other communities, and into five key market regions: New York, Chicago, Los Angeles, the San Francisco Bay Area/Sacramento Region and Washington, D.C.
Each strike force region will be led by designated United States Attorneys, who will collaborate with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and with state and local law enforcement partners within their own jurisdiction (where firearms are used in crimes) as well as law enforcement partners in areas where illegally trafficked guns originate. These officials will use the latest data, evidence, and intelligence from crime scenes to identify patterns, leads, and potential suspects in violent gun crimes.
“All too often, guns found at crime scenes come from hundreds or even thousands of miles away. We are redoubling our efforts as ATF works with law enforcement to track the movement of illegal firearms used in violent crimes. These strike forces enable sustained coordination across multiple jurisdictions to help disrupt the worst gun trafficking corridors,” said Attorney General Merrick B. Garland. “The Department of Justice will use all of its tools – enforcement, prevention, intervention, and investment – to help ensure the safety of our communities – the department’s highest priority.”
According to gun trace data, a significant number of firearms recovered in the Eastern District of California originate from other parts of the state and from other states including Nevada and Arizona and are illegally trafficked into the district. The new strike force, which will be co-led by Acting U.S. Attorney Phillip A. Talbert, Eastern District of California, and Acting U.S. Attorney Stephanie Hinds, Northern District of California, will help ensure sustained and focused coordination between law enforcement and prosecutors in the region with their counterparts in locations where many of the firearms originate.
“Because many of the firearm source locations in the Eastern District of California overlap with the source locations for firearms recovered in other parts of California, the San Francisco Bay Area/Sacramento Region Strike Force will work closely with the Los Angeles Strike Force,” Acting U.S. Attorney Talbert said. “With our law enforcement partners, we will work to stem the flow of illegally trafficked guns that end up in the hands of criminals who use them to commit violent crimes.”
The strike forces represent one important, concrete step in implementing the Department’s Comprehensive Violent Crime Reduction Strategy, which was announced on May 26, 2021. The comprehensive strategy supports local communities in preventing, investigating, and prosecuting gun violence and other violent crime—and requires U.S. Attorneys’ offices to work with federal, state, local and tribal law enforcement, as well as the communities they serve, to address the most significant drivers of violence in their districts. In guidance to federal agents and prosecutors as part of that comprehensive strategy, the Deputy Attorney General made clear that firearms traffickers providing weapons to violent offenders are an enforcement priority across the country.
Department of Justice Efforts to Address Violent Crime
Since April 2021, the Department has taken the following steps to reduce and prevent violent crime, especially the gun crime that is often at the core of the problem:
- April 8, 2021 – Attorney General Garland, alongside President Biden, announced four concrete steps for addressing gun violence: ATF would propose a new rule within 30 days to help curb the proliferation of so-called ghost guns, ATF would propose a new rule within 60 days on stabilizing braces used to convert pistols into short-barreled rifles, the Department would publish model state extreme risk protection order legislation within 60 days; and ATF would begin preparing a thorough and detailed new public study of firearms trafficking for the first time in 20 years.
- In April 2021, the Office of Justice Programs also made clear when existing grant funds could be used to support Community Violence Intervention (CVI) programs.
- On May 7, 2021, meeting the Attorney General’s announced timeline, ATF issued a notice of proposed rulemaking to update outdated firearms definitions and to help address the proliferation of ghost guns.
- May 26, 2021, the Attorney General announced the Department’s comprehensive strategy to reduce violent crime, including an overall Department Violent Crime Reduction Strategy, the strengthening of Project Safe Neighborhoods (PSN), and a directive to the U.S. Attorneys to work with their local partners in addressing the increase in violence that typically occurs over the summer (with specific support from DOJ law enforcement agencies)
- On June 7, meeting the Attorney General’s announced timeline, ATF issued a notice of proposed rulemaking to clarify that the restrictions imposed by the National Firearms Act apply when stabilizing braces are used to convert pistols into short-barreled rifles.
- On June 8, meeting the Attorney General’s announced timeline, the Department published model state extreme risk protection order legislation.
- On June 22, 2021, the Attorney General announced that the Department would be forming five Firearms Trafficking Strike Forces within 30 days.
- On, June 23, 2021, the Attorney General, alongside President Biden, announced steps that ATF would take to hold rogue gun dealers accountable for their actions. They include applying a “no tolerance” policy for federal firearms licensers (FFLs) that willfully commit violations that endanger public safety; designating points of contact for state and local government officials to report concerns about rogue FFLs; formalizing the use of public safety factors for inspection prioritization; sharing inspection information with states that regulate firearms dealers themselves; resuming the practice of notifying revoked dealers on how to dispose of their inventory and the potential criminal consequences of continuing to engage in the business; increasing ATF’s resources for inspections (see, FY 2022 Budget request); and publicly posting disaggregated inspection information to ATF’s website.
Three Charged in Prison-Based COVID-19 Unemployment Benefits SchemeRead the Press Release
FRESNO, Calif. — On Thursday, July 15, a grand jury returned an indictment against three defendants for a scheme to submit over $1.4 million in fraudulent unemployment insurance claims in other inmates’ identities to the California Employment Development Department (EDD), Acting U.S. Attorney Phillip A. Talbert announced.
The indictment charges Daryol Richmond, 30; Telvin Breaux, 29; and Holly White, 30, with conspiracy to commit mail fraud and aggravated identity theft. Richmond and Breaux are inmates at the Kern Valley State Prison and California Correctional Institute, respectively. White resides in Los Angeles. The indictment was unsealed today following White’s arrest.
According to court documents, the underlying applications for the claims falsely stated that the inmates worked within the prescribed period as clothing merchants, handymen, and other jobs, and were available to work. To avoid detection, the defendants created fictitious email accounts and used different physical addresses throughout Southern California for the fraudulent claims. In some cases, they paid family members and associates up to $1,000 to use their physical addresses. The actual loss to the EDD and United States is over $270,000.
This case is the product of an investigation by the FBI and EDD. Assistant U.S. Attorneys Joseph Barton and Melanie Alsworth are prosecuting the case.
If convicted of the conspiracy to commit mail fraud, the defendants each face a maximum statutory penalty of 20 years in prison and a fine of up to $250,000. If convicted of the aggravated identity theft, they each face a mandatory two-year consecutive sentence. Any sentence, however, would be determined at the discretion of the court after considering any applicable statutory factors and the Federal Sentencing Guidelines, which take into account several variables. The charges are only allegations and the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Fairfield Man Pleads Guilty to Attempted Online Coercion of a ChildRead the Press Release
SACRAMENTO, Calif. — Kevin Blaine Cline, 47, of Fairfield, pleaded guilty today to attempted online coercion of a child, Acting U.S. Attorney Phillip A. Talbert announced.
According to the criminal complaint, on Nov. 1, 2019, an undercover agent observed Cline’s post on the social media platform Whisper that said he was “Looking for dad’s (sic) who love their daughters near me I … Have a question.” The notation at the bottom of Cline’s post said, “Freaky Sexual Desires.” The undercover agent, posing as a dad, engaged in a two-day conversation on Whisper with Cline, and Cline sent the agent two images of child pornography. Cline planned a meeting with the “dad” and “daughter” in order to sexually molest her. Cline then drove from Fairfield to Pleasant Hill to meet up with what he believed to be a seven‑year-old girl. When Cline arrived, however, he was placed under arrest.
The factual basis of the plea agreement contains a description of the sexual activity that Cline wanted to engage in with the seven-year-old girl, as well as sexual acts he planned to perform with a 10-year-old girl in Washington state.
This case is the product of an investigation by the Silicon Valley Internet Crimes Against Children Task Force (SVICAC) a federally and state-funded task force with agents from federal, state, and local agencies that investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. The Contra Costa District Attorney’s Office and Homeland Security Investigations conducted the investigation as part of the SVIAC. Assistant U.S. Attorney Christina McCall is prosecuting the case.
Cline is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on Oct. 18, 2021. Cline faces a mandatory minimum penalty of 10 years in prison and a maximum statutory penalty of life in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Extradited Israeli Fugitive Sentenced to 30 Months in Prison for Conducting Illegal Gambling Business, Money Laundering, and Failure to AppearRead the Press Release
SACRAMENTO, Calif. — Orel Gohar, 30, formerly of San Francisco, was sentenced Tuesday by U.S. District Judge John A. Mendez to two and a half years in prison for conducting an illegal gambling business, conspiracy to commit money laundering, and failure to appear, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Gohar participated in operating an organization that installed and maintained illegal video slot machines at businesses open to the public across Northern California. Gohar also participated in two different conspiracies to launder the proceeds of the lucrative gambling business through co-defendants’ other businesses. In total, Gohar participated in laundering at least $650,000.
Court documents also detail Gohar’s escape from the United States by charter jet through Mexico, France, and Israel. Gohar was first arrested on Dec. 8, 2017, in connection with his initial charges and granted pretrial release. On Jan. 8, 2018, he failed to appear in federal court for a hearing, and he remained a fugitive for nearly two years until his arrest in Israel in December 2019.
This case was the product of an investigation by the Federal Bureau of Investigation and the California Department of Justice – Bureau of Gambling Control. Assistance was provided by the Department of Justice’s Office of International Affairs and Israeli authorities. Assistant U.S. Attorneys Miriam R. Hinman and Mira Chernick prosecuted the case.
Gohar is the last of eight defendants to be sentenced in connection with the illegal gambling and money laundering schemes. May Levy was sentenced on Aug. 10, 2018, to probation and a $2,000 fine; Atir Dadon was sentenced on June 14, 2019, to one year and 10 months in prison and a $10,000 fine; Bar Shani was sentenced on July 12, 2019, to one year and eight months in prison and a $10,000 fine; Adam Atari was sentenced on Sept. 6, 2019, to two years and seven months in prison; Yaniv Gohar was sentenced on Dec. 20, 2019, to three years and nine months in prison; Raz Razla was sentenced on Oct. 6, 2020, to probation and a $5,500 fine; and Eran Buhbut was sentenced on Jan. 12, 2021, to probation and a $4,000 fine.
Vacaville Man Sentenced to 6 Months in prison for Again Violating a Former Employer’s DataRead the Press Release
SACRAMENTO, Calif. — Matthew Keys, 34, of Vacaville, was sentenced today for violating the terms of his supervised release, Acting U.S. Attorney Phillip A. Talbert announced.
U.S. District Judge Kimberly J. Mueller ordered Keys to serve an additional six months in prison to be followed by 18 months of supervision with specific computer monitoring conditions.
Keys was originally indicted in 2013 on charges related to a scheme that resulted in unauthorized changes to an article on the Los Angeles Times website. The government also suspected Keys had sent threatening emails to employees at KTXL FOX40 where he used to work. Keys later confessed to sending the emails and to his role in changing the Los Angeles Times article. After a jury trial to resolve other disputes, such as the amount of the losses the Los Angeles Times suffered, Keys was convicted on all three counts of the superseding indictment. He was sentenced to two years in prison and two years of supervised release.
After Keys completed his prison sentence, he began working as the digital editor at Comstock’s Magazine in Sacramento. Keys wrote stories for Comstock’s and managed its website and social media accounts, including a YouTube channel. The magazine published videos on YouTube, and it used embedded links to YouTube videos in stories published on its own website. Keys resigned abruptly in late January 2020, a little less than a year after he started and about three months before his term of supervised release was set to expire.
In February 2020, an employee at Comstock’s Magazine discovered that a password to the Google account associated with the magazine’s YouTube account no longer functioned. Shortly thereafter, the employee found that links associated with videos on the YouTube account were broken. Comstock’s employees found that the videos had been deleted from the YouTube channel, along with nearly 700 subscriptions to the channel. The magazine then contacted federal prosecutors and the FBI with its suspicions that Keys was responsible.
The U.S. Probation Office, who was supervising Keys, investigated the deletion of the videos with the assistance of the FBI. Among other evidence, the investigation showed that Keys searched Google for the term “how to delete youtube channel” and then executed a command to delete the Comstock’s YouTube channel on Feb. 10, 2020.
On April 20, 2021, after an evidentiary hearing, Judge Mueller found that Keys violated his term of supervised release by committing new crimes: knowingly causing the transmission of command causing damage to a protected computer, and unauthorized destruction of data.
“Businesses and individuals are already struggling against threats to the integrity of their data from hackers and data thieves,” Acting U.S. Attorney Talbert said. “They should not also have to worry about data destruction from former employees seeking retribution. Federal law enforcement will vigorously investigate malicious data-deletion with all available tools.”
Assistant U.S. Attorneys Paul Hemesath and Matthew D. Segal prosecuted the case.
Vallejo Man Indicted for Flying to the Philippines with the Intention of Engaging in Sexual Conduct with a ChildRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment Thursday against Balbino Sablad, 79, of Vallejo, charging him with traveling with the intent to engage in illicit sexual conduct and conspiring to do the same, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, in 2019, Sablad flew to the Philippines with the intention of engaging in sexual conduct with a child under the age of 16. Sablad had engaged in sexual chats with the intended victim over Facebook and had sent her at least $1,800 prior to his travel to the Philippines. He had also discussed with a co-conspirator his plan to sexually abuse the victim in the Philippines.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Mira Chernick is prosecuting the case.
Sablad was arrested on July 1, 2021.
If convicted, Sablad faces a maximum statutory penalty of 30 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 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.
Three Men Indicted for Trafficking Cocaine and Methamphetamine in FresnoRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Fresno residents David Garcia, 31; Luis Perez, 34; and Gerardo Perez, 48, charging them with conspiracy to distribute and to possess with the intent to distribute 500 grams or more of cocaine and methamphetamine, Acting U.S. Attorney Phillip A. Talbert announced.
Garcia was charged in three additional counts: one count of distributing cocaine and methamphetamine, one count of distributing cocaine, and one count of being a felon in possession of a firearm.
According to court documents, between April 2020 and May 2021, the defendants worked together to distribute more than 500 grams of cocaine, some of which was adulterated with methamphetamine.
This case is the product of an investigation by the Drug Enforcement Administration, Homeland Security Investigations, the Federal Bureau of Investigation, the U.S. Marshals Service, the Fresno Police Department, the Fresno County Sheriff’s Office, the Tulare County Sheriff’s Department, the Multi-Agency Gang Enforcement Consortium, and the Fresno County District Attorney’s Office. Assistant U.S. Attorney Katherine E. Schuh is prosecuting the case.
If convicted, each defendant faces a mandatory minimum sentence of 10 years in prison and 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.
Owner of Sacramento Area Home Health Care and Hospice Agencies Pleads Guilty to Medicare FraudRead the Press Release
SACRAMENTO, Calif. — Akop Atoyan, 48, of Glendale, pleaded guilty today to one count of conspiracy to commit health care fraud and one count of conspiracy to pay and receive health care kickbacks, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Atoyan and his wife, Liana Karapetyan, owned and controlled home health care and hospice agencies in the greater Sacramento area: ANG Health Care Inc., Excel Home Healthcare Inc., and Excel Hospice Inc. On behalf of the agencies, Atoyan and Karapetyan certified to Medicare that they would not pay kickbacks in exchange for Medicare beneficiary referrals to the agencies.
Despite their certifications, from at least July 2015 through April 2019, Atoyan and Karapetyan paid and directed others to pay kickbacks to multiple individuals for beneficiary referrals, including employees of health care facilities, as well as employees’ spouses. The kickback recipients included John Eby, a registered nurse who worked for a hospital in Sacramento; Anita Vijay, the director of social services at a skilled nursing and assisted living facility in Sacramento; Jai Vijay, Anita Vijay’s husband; and Mariela Panganiban, the director of social services at a skilled nursing facility in Roseville.
In total, Atoyan, Karapetyan, and others caused the agencies to submit over 8,000 claims to Medicare for the cost of home health care and hospice services. Based on those claims, Medicare paid the agencies approximately $31 million. Of that amount, Medicare paid the agencies over $2 million for services purportedly provided to beneficiaries, but these beneficiaries were referred in exchange for kickbacks paid to, among others, Eby, Anita Vijay, Jai Vijay, and Panganiban. Because the agencies obtained the beneficiary referrals by paying kickbacks, the agencies should not have received any Medicare reimbursement.
This case is a product of an investigation by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services’ Office of Inspector General. Assistant U.S. Attorney Matthew Thuesen is prosecuting the case.
As part of his guilty plea, Atoyan agreed to pay $2,525,363 in restitution to the U.S. Department of Health and Human Services. He also agreed to forfeit that same amount to the United States.
U.S. District Judge Morrison C. England Jr. is scheduled to sentence Atoyan on Oct. 7, 2021. Atoyan faces maximum statutory penalties of 10 years in prison for the health care fraud conspiracy charge and five years in prison for the kickback conspiracy charge. He also faces a maximum fine of $250,000 or twice the gross gain or loss for each charge. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
In separate cases, Karapetyan, Eby, Jai Vijay, Anita Vijay, and Panganiban pleaded guilty for their roles in the kickback scheme. They await sentencing.
Fresno Man with Four Prior Convictions for Unlawfully Possessing Firearms and Ammunition Faces Federal ChargesRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Earnest Donte Ruff, 23, of Fresno, charging him with possessing ammunition after being convicted of a felony offense, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on April 21, 2021, Ruff was arrested and found to be in possession of a loaded .40‑caliber gun with no serial number. Ruff has four convictions for illegally possessing firearms or ammunition.
This case is the product of an investigation by the Federal Bureau of Investigation and the Fresno Police Department Multi-Agency Gang Enforcement Consortium. Assistant U.S. Attorney Justin J. Gilio is prosecuting the case.
If convicted, Ruff 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.
Federal Drug and Gun Charges Brought Against Fresno Man Accused of Dealing FentanylRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Andres Nunez, 23, of Fresno, charging him with distribution of fentanyl to a person under 21 years old and possession of a firearm in furtherance of a drug trafficking crime, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Feb. 9, 2021, Nunez delivered a substance containing fentanyl to a person under 21 years of age. In June 2021, agents executed a search warrant at Nunez’s residence. In his bedroom, they found approximately 13 firearms, including a “ghost gun,” a Glock-style handgun with no serial number. Attached to the gun was an “auto-sear,” a device that attaches to a firearm enabling it function as a machine gun. Agents also found two additional “auto-sears,” a digital scale, packaging materials, a vacuum sealer, and four clear plastic bags, each containing approximately 1 pound of processed marijuana.
This case is 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 is prosecuting the case.
If convicted, Nunez faces a maximum statutory penalty of life in prison and a $2 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 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 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.
Two Sentenced to over 5 Years in Prison for COVID-19 Unemployment Benefit Fraud SchemeRead the Press Release
FRESNO, Calif. — Jason Vertz, 51, of Fresno, and Alana Powers, 45, an inmate at the Central California Women’s Facility (CCWF) in Chowchilla, were each sentenced today by U.S. District Judge Dale A. Drozd to five years and one month in prison for conspiracy to commit mail fraud and aggravated identity theft, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Vertz and Powers submitted several fraudulent unemployment insurance claims in Powers’ and other CCWF inmates’ names to the California Employment Development Department (EDD). Recorded jail calls and emails show that Powers and other inmates provided names, dates of birth, and social security numbers for inmates at CCWF to Vertz to submit the fraudulent claims. Shortly thereafter, the benefits were loaded onto debit cards that were mailed to the addresses the defendants provided.
The underlying applications for the claims stated that the inmates had worked within the prescribed period as maids, cleaners, fabrication welders, and other occupations, and that they were available to work, which was not true because they were incarcerated. The claims would have been denied if accurate answers had been given. EDD and the United States have suffered an actual loss of over $74,000 as a result of the fraud.
This case was the product of an investigation by the FBI, the California Department of Corrections and Rehabilitation Investigative Services Unit, and the California EDD. Assistant U.S. Attorneys Alexandre Dempsey and Joseph Barton are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Sixth Defendant Sentenced for Marijuana Grow in Shasta-Trinity National ForestRead the Press Release
SACRAMENTO, Calif. — Pedro Alvarez-Alcazar, 28, a citizen of Mexico, was sentenced today by U.S. District Judge Kimberly J. Mueller to five years in prison for conspiracy to manufacture marijuana, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, after a nearly three-month investigation on Aug. 21, 2018, law enforcement agents raided a marijuana-cultivation site in the Shiell Gulch area of the Shasta-Trinity National Forest. Officers apprehended Alcazar-Alvarez at the site after he tried to draw a sheathed knife while struggling with the officer attempting to detain him. Co-defendants Fidencio Palacios-Riano, 22, and Romualdo Palacios-Hernandez, 38, both citizens of Mexico, were also apprehended at the site. Co-defendants Jesus Manzo Canela, 28, a citizen of Mexico; Jose Jesus Suarez Villa, 35, a citizen of Mexico; Joseph William Manzo, 32, of Sacramento; and Francisco Jesus Maldonado, 25, of Denair, were apprehended in a vehicle that had just visited the site. While at the site, officers observed bags being loaded into the trunk of the vehicle, and later found the trunk contained garbage bags holding 84 one-pound bags of processed marijuana. Agents eradicated 6,544 growing marijuana plants and seized another 500 pounds of processed marijuana at the site.
Alvarez-Alcazar is the sixth of seven defendants to be sentenced in connection with the marijuana grow. Romualdo Palacios-Hernandez was sentenced on Jan. 6, 2020 to two years and six months in prison; Jesus Manzo Canela was sentenced on Feb. 3, 2020 to three years and 10 months in prison; Fidencio Palacios-Riano was sentenced on Feb. 10, 2020 to two years and six months in prison; Jose Jesus Suarez Villa was sentenced on Feb. 10, 2020 to 17 months and 21 days in prison; and Joseph William Manzo was sentenced on March 2, 2020 to five years in prison. Francisco Jesus Maldonado is scheduled to be sentenced on Nov. 8, 2021.
This case is the product of an investigation by the U.S. Forest Service, the U.S. Bureau of Land Management, the Trinity County Sheriff’s Office, the California Department of Fish and Wildlife, and the Campaign Against Marijuana Planting (CAMP). Assistant U.S. Attorney Shelley Weger is prosecuting the case.
North Highlands Man Sentenced to 5 Years in Prison for Fentanyl DistributionRead the Press Release
SACRAMENTO, Calif. — Sergey Tkachuk, 28, of North Highlands, was sentenced today by U.S. District Judge Kimberly J. Mueller to five years in prison for distribution of fentanyl, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, in March 2016, Tkachuk obtained 40 pills bearing the mark “M367,” which indicated that the pill was a Lortab 10 or Norco. The pills were in fact counterfeit versions and contained fentanyl. Tkachuk then sold 16 of the pills to another person for $6 per pill, and that person subsequently died of an overdose.
On April 19, 2021, Tkachuk pleaded guilty to distribution of fentanyl. The plea agreement indicates that Tkachuk did not know that the pills were counterfeit.
“This case is another example of the extreme danger posed by pills that appear to be legitimate pharmaceutical products but actually contain fentanyl,” Acting U.S. Attorney Talbert said. “The public should be aware than any pill that did not come directly from a pharmacy as a result of a valid prescription could contain deadly quantities of fentanyl or other drugs. Counterfeit pills often look exactly like legitimate pills, but they have caused untold numbers of deaths as a result of what they actually contain. This sentence should be a message to anyone buying or selling illicitly obtained pills—not knowing that pills contain fentanyl is not an excuse from criminal liability and taking them could result in death.”
This case was the product of an investigation by the Drug Enforcement Administration. Assistant U.S. Attorney Paul Hemesath prosecuted the case.
Sacramento County Man Pleads Guilty to Armed Robbery and Bank FraudRead the Press Release
SACRAMENTO, Calif. — Damian Deleal, 33, of Carmichael, pleaded guilty Thursday to armed robbery of a U.S. mail carrier and bank fraud, Acting 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.
This case is the product of an investigation by the U.S. Postal Inspection Service, the Sacramento County Sheriff’s Department, and the Sacramento Police Department. Special Assistant U.S. Attorney Robert J. Artuz and Assistant U.S. Attorney Samuel Stefanki are prosecuting the case.
Deleal is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on Oct. 7, 2021. He faces a maximum statutory penalty of 25 years in prison and a $1 million fine for armed robbery, and a maximum statutory penalty of 30 years in prison and a $1 million fine for bank fraud. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which consider a number of variables.
Moses, Patrick, and Powell have already pleaded guilty to federal charges and were sentenced in the following related cases in this district: U.S. v. Patrick, 2:18-cr-79-MCE, U.S. v. Moses, 2:18-cr-90‑MCE, and U.S. v. Powell, 2:18-cr-83-MCE.
Two Modesto Men Charged with Illegal Weapons PossessionRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Cesar Castro, 41, of Modesto, charging him with being a felon in possession of a firearm, and a one‑count indictment against Juan Dimas, 31, of Modesto, charging him with being a felon in possession of ammunition, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on June 1, Castro was arrested in Modesto in possession of a loaded firearm. On May 20, Dimas was arrested in Modesto after discarding a loaded firearm during a police chase. Both men are convicted felons prohibited from possessing firearms or ammunition, and both men were serving terms of post-release community supervision following firearms convictions at the time of their arrest on these charges.
This case is the product of an investigation by the Bureau of Alcohol Firearms, Tobacco and Explosives, the Stanislaus County District Attorney’s Office, and the Modesto Police Department. Assistant U.S. Attorney Katherine Schuh is prosecuting the case.
If convicted, Castro and Dimas each face a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the 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.
Tulare County Men Indicted on Firearms and Drug ChargesRead the Press Release
FRESNO, Calif. — A federal grand jury returned a seven-count indictment today against Regino Garcia Jr., 20, and Anthony Martinez, 24, both of Tulare County, charging them with dealing firearms without a license, possession of an unregistered firearm, distribution of methamphetamine and possession of auto-sear devices, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Garcia and Martinez met with undercover officers and sold them a total of 14 firearms and 40 auto-sear devices for converting a firearm into a fully automatic weapon. One of the firearms sold was a short-barreled rifle. Additionally, they sold methamphetamine to the undercover officers on three occasions. Neither defendant had a license to deal firearms.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Laurel J. Montoya is prosecuting the case.
If convicted, both defendants face a maximum statutory penalty of 10 years to 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.
Fresno Man Indicted for Assaulting a Court Security OfficerRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Carlos Perez, 45, of Fresno, charging him with assault on a federal contractor, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on June 21, 2021, Perez assaulted a Court Security Officer inside the U.S. Federal Courthouse in Fresno by striking the officer in the face.
This case is the product of an investigation by the Federal Protective Services, the U.S. Marshals Service, and the Fresno Police Department. Assistant U.S. Attorney Katherine E. Schuh is prosecuting the case.
If convicted, Perez faces a maximum statutory penalty of eight 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.
Delano Drug Suppliers Indicted for Methamphetamine, Fentanyl DistributionRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Jesus Manuel Morfin Villa, 27, of Delano, charging him with distribution of methamphetamine and distribution of fentanyl, charging Omar Vayas Duran, 41, of Delano, with distribution of fentanyl, and charging both Villa and Duran with conspiracy to distribute and to possess with intent to distribute methamphetamine and fentanyl, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents over the course of 11 months, Villa distributed methamphetamine on one occasion, distributed fentanyl with Duran on another occasion, and distributed both methamphetamine and fentanyl on yet another occasion.
This case is the product of an investigation by the Drug Enforcement Administration. Assistant U.S. Attorney Laura Jean Berger is prosecuting the case.
If convicted, Villa and Duran face a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former CFO Pleads Guilty to Embezzling over $1.6 MillionRead the Press Release
SACRAMENTO, Calif. — Christopher Firle, 51, of Fairfield, pleaded guilty today to one count of wire fraud, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Firle was the Chief Financial Officer of a holding company that managed several vehicle dealerships. From January 2016 through September 2019, Firle misappropriated over $1.6 million from the company. He carried out his embezzlement scheme in multiple ways, including by using company credit cards to pay for over $750,000 in personal expenses. The unauthorized charges included tickets to sporting events and purchases at several retail stores, including Bergdorf Goodman, Chanel, Hermès, Nordstrom, and Tiffany & Co. Firle also initiated over 30 unauthorized wire transfers from the company to a family member. Those transfers totaled over $500,000. Additionally, Firle issued over 30 unauthorized company checks to himself that totaled over $165,000, and he withdrew over $50,000 from a company account without authorization. Finally, Firle issued himself excess bonus payments totaling almost $160,000.
This case is a product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Matthew Thuesen is prosecuting the case.
As part of his guilty plea, Firle agreed to pay restitution of $1,937,706 to his former employer. He also agreed to forfeit $1,652,269.44 to the United States.
U.S. District Judge John A. Mendez is scheduled to sentence Firle on October 19, 2021. Firle faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the court’s discretion after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Tehama County Woman Pleads Guilty in Refund Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Sabrina Raylene Toilolo, 26, of Corning, pleaded guilty today to conspiracy to commit wire fraud for her participation in a refund‑fraud scheme, Acting U.S. Attorney Phillip A. Talbert announced.
In June 2020, a federal grand jury returned a 14-count superseding indictment against her and her previously charged co-defendant Johnathon Ward, charging them with conspiracy to commit wire fraud, wire fraud, and aggravated identity theft.
According to court documents, between July 2017 and September 2019, Sabrina Toilolo, Johnathon Ward, Monica Nunes, and Talalima Toilolo conspired to defraud financial institutions using a scheme that exploited the merchant refund process used by businesses and retail establishments to refund customers for returns, reimbursements, and erroneous charges.
The defendants committed this scheme by stealing or purchasing point-of-sale (POS) terminals used by businesses to process bankcard transactions. The defendants programmed each terminal to make it appear as if it was authorized by a particular retail merchant, connected the terminals to payment processing intermediaries, and executed refund transactions even though no purchases had been made. The payment processors, falsely believing the terminals were authorized, approved the refunds and caused the merchants’ payment processors to transfer funds to the defendants’ fraudulent accounts. The defendants then drained the stolen funds from the accounts and distributed them among members of the conspiracy.
This case is the product of an investigation by the Regional Enforcement Allied Computer Team (REACT) Task Force, which includes investigators from the Santa Clara County District Attorney’s Office and the Federal Bureau of Investigation. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
Sabrina Toilolo is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on September 23, 2021. She faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
On April 2, Nunes was sentenced to 12 and a half years in prison. On February 11, Talalima Toilolo was sentenced to10 years in prison. Charges against Ward are pending. The charges are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Whittier Man Pleads Guilty to Drug ConspiracyRead the Press Release
FRESNO, Calif. —Antonio Castellanos, 38, of Whittier, pleaded guilty today to conspiring to distribute methamphetamine, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Castellanos, Genaro Serrato-Calles, aka Alejandro, aka Meno, 51; Antonio Valencia-Hernandez, aka Tito, 65, both of Modesto; and Jose Reyes-Pineda, 48, of Anaheim were charged with conspiring over a two-year period to distribute methamphetamine in Stanislaus and San Joaquin Counties. In pleading guilty, Castellanos admitted to working with individuals in Mexico to distribute methamphetamine in the United States and, on one occasion, arranging for the shipment of over 20 pounds of methamphetamine to Serrato-Calles.
Castellanos is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Oct. 18. Castellanos faces a statutory mandatory minimum prison term of 10 years and a maximum of life in prison, and a fine of up to $10 million. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
A jury trial is set for Serrato-Calles, Valencia-Hernandez, and Reyes-Pineda for Sept. 8. They are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; Homeland Security Investigations; the Central Valley High Intensity Drug Trafficking Area (HIDTA) task force; the San Joaquin County Metropolitan Narcotics Task Force; the Stanislaus Drug Enforcement Agency; and the Orange County Sheriff’s Special Investigations Bureau. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Mexican Native Pleads Guilty to Damaging National Forest Through an Illegal Marijuana Cultivation OperationRead the Press Release
FRESNO, Calif. — Luis Madrigal-Reyes, 37, a native and citizen of Mexico, pleaded guilty to conspiring to manufacture, distribute, and possess with intent to distribute marijuana, Acting U.S. Attorney Phillip A. Talbert announced. He also agreed to pay $45,057 in restitution to the U.S. Forest Service for the damage that the cultivation operation had on public land.
According to court documents, the cultivation operation contained 2,307 marijuana plants and was located in the Basin Creek drainage in the Dutch Oven Creek area of the Sierra National Forest. U.S. Forest Service agents saw Madrigal carrying fertilizers and bags of groceries into the grow site and later apprehended him after they chased him down the side of a mountain.
The cultivation operation caused extensive environmental damage to the area, which serves as the habitat for the Sierra Nevada yellow-legged frog, an endangered species and the California spotted owl, which is currently being considered for listing under the Endangered Species Act. Agents found toxic banned pesticides, which appeared to have been applied to the marijuana plants. The water from Dutch Oven Creek had also been diverted to irrigate the plants. Dutch Oven Creek is part of the Chiquito Creek watershed, which drains into the Fresno River before flowing into the San Joaquin River.
This case is the product of an investigation by the U.S. Forest Service, the California Department of Fish and Wildlife, the Campaign Against Marijuana Planting (CAMP) of the California Department of Justice, and the Madera County Sheriff’s Office. Assistance was provided by the Integral Ecology Research Center, a non-profit organization dedicated to the research and conservation of wildlife and their ecosystems. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
Madrigal is scheduled for sentencing on Sept. 20. He faces a mandatory minimum statutory penalty of 10 years and a maximum penalty of life in prison, as well as a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Charges are pending against co-defendant, Lester Eduardo Cardenas Flores, 24, also a citizen of Mexico. He is presumed innocent until and unless proven guilty beyond a reasonable doubt.
California’s Second-Largest Skilled Nursing Facility Operator Pays $450,000 to Resolve False Claims Act AllegationsRead the Press Release
SACRAMENTO, Calif. — Skilled nursing facility operator Plum Healthcare Group LLC and its entity Azalea Holdings LLC, dba McKinley Park Care Center have agreed to pay more than $451,439 to resolve allegations that they violated the False Claims Act, Acting U.S. Attorney Phillip A. Talbert announced today.
Specifically, Plum Healthcare Group agreed to resolve allegations that an employee at its McKinley Park Care Center knowingly created billing records for services that were not actually provided. According to the settlement agreement, Plum Healthcare Group then used these false records to bill Medicare, leading it to obtain Medicare reimbursements that were higher than warranted. The government also alleges that the management of Plum Healthcare Group learned of the extent of these false billings to Medicare, did not conduct an adequate investigation into this conduct, and then failed to submit a refund to Medicare for the full amount management knew had been overbilled or otherwise disclose its false billings to the government.
“Medicare participants who fail to voluntarily disclose fraud risk significant consequences,” said Acting U.S. Attorney Talbert. “As this settlement makes clear, knowingly retaining Medicare funds obtained by fraud is itself a violation of the law, and this office is committed to pursuing enforcement actions to remedy this conduct.”
“It’s unacceptable to stick taxpayers with a bill for health care services that were never provided and for health care executives to look the other way when these false claims were submitted to Medicare,” said Special Agent in Charge Steven J. Ryan of the U.S. Health and Human Services, Office of the Inspector General. “Working closely with our law enforcement partners, we will continue to protect the integrity of Federal health care programs and investigate false billing allegations.”
“The FBI is committed to working with our partners to identify and investigate fraud, especially when it defrauds taxpayer-funded programs,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “This settlement serves as a warning to Medicare participants to carefully audit and investigate records and billing to ensure their business operations are not in violation of federal law.”
The settlement with Plum Healthcare Group resolves allegations originally brought in a lawsuit filed by a former employee under the whistleblower provisions of the False Claims Act. The act permits private parties to sue on behalf of the government for false claims for government funds and to receive a share of any recovery. The whistleblower will receive over $90,000 as her share of the recovery from Plum Healthcare Group. The whistleblower’s claims for retaliation and attorneys’ fees are not resolved by this settlement.
This case was the result of an investigation by the HHS Office of the Inspector General, the Federal Bureau of Investigation, along with the U.S. Attorney’s Office for the Eastern District of California. Assistant U.S. Attorney Steven Tennyson handled the matter for the United States. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Vallejo Felon Indicted for Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment today against Jacob Harding-Abeyta, 28, of Vallejo, charging him with being a felon in possession of a firearm, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Oct. 7, 2020, a parole search of Harding-Abeyta’s residence resulted in the discovery of a loaded .45-caliber Springfield XDS firearm in his bedroom. Harding-Abeyta is prohibited from possessing firearms or ammunition because he has prior felony convictions in Solano County for attempted murder in 2014 and vehicle theft in 2011.
This case is the product of an investigation by the Solano County Sheriff’s Office, the Solano County District Attorney’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the FBI’s Solano County Violent Crimes Task Force. Assistant U.S. Attorneys Jason Hitt and Adrian T. Kinsella are prosecuting the case.
If convicted, Harding-Abeyta 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.
Stockton Man Indicted for Being a Felon in Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment today against Steven Domingo, 37, of Stockton, charging him with being a felon in possession of a firearm, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Domingo was on federal probation at the time of the offense. The weapon he is accused of possessing is a Fabrique Nationale (FN) Herstal FNS-40, a .40‑caliber semi-automatic handgun. Domingo has been convicted of several felonies.
This case is the product of an investigation by the Stockton Police Department, the California Department of Corrections and Rehabilitation, and the San Joaquin County District Attorney’s Office. Assistant U.S. Attorney Michael W. Redding is prosecuting the case.
If convicted, Domingo 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 also a collaboration with Operation Ceasefire. As part of Operation Ceasefire in the city of Stockton, the U.S. Attorney’s Office works closely with the San Joaquin County District Attorney’s Office and the Stockton Police Department to deliver on Ceasefire’s mission to establish a peaceful community by investigating and prosecuting members and associates of criminal groups who continue to commit serious and violent felonies in the city, including individuals who have previously been prosecuted for illegal gun and gang-related crimes.
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.
Placerville Man Charged with Possessing 27 Dogs for Use in Dog FightingRead the Press Release
Calif. — A federal grand jury returned a 27-count indictment today against Carlos Villasenor, 38, of Placerville, charging him with possession of dogs for use in an animal fighting venture, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on June 17, law enforcement agents executed a federal search warrant at Villasenor’s property and seized 27 pit bull type-dogs, one of whom had injuries to its face consistent with an attack from another dog. Many of the dogs also had untreated veterinary conditions. Numerous implements of the dog fighting trade were found on the property, including a breeding stand, treadmills, and veterinary supplies including skin staplers, antibiotics, syringes, and IV bags. Investigators also found paperwork indicating that Villasenor owned dogs used in dog fighting.
“This investigation and indictment should send a strong zero-tolerance message to those individuals who traffic in inflicting pain and suffering on animals,” said Patricia Contreras, Special Agent in Charge, U.S. Department of Agriculture-Office of Inspector General. “We appreciate the commitment of our federal partners in pursuing these purveyors of death who operate animal fighting ventures.”
This case is the product of an investigation by the U.S. Department of Agriculture. Assistant U.S. Attorney Mira Chernick is prosecuting the case.
If convicted, Villasenor faces a maximum statutory penalty of five years in prison and a $250,000 fine. He may also be ordered to pay restitution for the care and rehabilitation of the dogs. 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.
Former Sacramento Man Charged with Engaging in Monetary Transactions with Money from Wire Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against former Sacramento resident, William A. Sassman, 53, now residing in Orange County, charging him with knowingly engaging in monetary transactions with criminally derived property, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, between October and December 2019, Sassman deposited checks totaling $325,000 into a bank account, knowing that the money was derived from a crime. The money originated from a wire fraud scheme, which is a specified unlawful activity under federal money laundering statutes.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Nirav Desai is prosecuting the case.
If convicted, Sassman faces a maximum statutory penalty of 10 years in prison and a fine of $250,000 or up to twice the amount of the laundered money. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Stockton Man Pleads Guilty to Firearms TraffickingRead the Press Release
SACRAMENTO, Calif. — Johnnie Earl Ross III, 20, of Stockton, pleaded guilty today to conspiracy to deal firearms without a license and possession of an unregistered machine gun, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, between Oct. 10, 2019, and Oct. 22, 2020, Ross and his co‑conspirators sold at least 13 firearms to an undercover agent or confidential source on behalf of the Everybody Killa (EBK) street gang in Stockton. Many of the firearms were obtained out of state in Reno, Nevada, and some were obtained by a straw purchaser from federally licensed firearms dealers in Reno. One of the firearms was a Glock handgun with a switch that converted it to a fully automatic firearm.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Homeland Security Investigations; and the San Joaquin County Sheriff’s Office. Assistant U.S. Attorney David W. Spencer is prosecuting the case.
Charges remain pending against co-defendant Vin Whealen Gaines Jr. He is in custody and scheduled for a status hearing on Aug. 24. The charges against Gaines are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Ross is scheduled to be sentenced by U.S. District Judge John A. Mendez on Sept. 28. Ross faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
San Joaquin County Skydiver Arrested for Running Unauthorized Tandem Instructor CoursesRead the Press Release
SACRAMENTO, Calif. — An indictment was unsealed following the arrest of an Acampo man Monday, Acting U.S. Attorney Phillip A. Talbert announced.
On June 10, a federal grand jury returned a six-count indictment against Robert Allen Pooley, 46, of Acampo, charging him with wire fraud and aggravated identity theft related to tandem parachuting courses.
According to court documents, in 2010, Pooley obtained ratings as a “tandem examiner” with the U.S. Parachute Association (USPA) and as a “tandem examiner” with Uninsured United Parachute Technologies LLC (UPT), a manufacturer of tandem parachute systems. He then began conducting training courses for candidates seeking to obtain their USPA Tandem Instructor rating and/or their certification to use UPT tandem parachute systems. He charged for these courses and conducted them at a skydiving business located in Acampo.
In August 2015, USPA and UPT suspended Pooley’s tandem examiner ratings and could no longer conduct the tandem instructor courses on his own. Nevertheless, he continued running USPA and UPT tandem instructor rating courses without authorization, and he concealed his suspensions from tandem instructor candidates. Pooley led students to believe they could obtain USPA and UPT tandem ratings through his courses, concealed the fact that he had been suspended, and helped students fill out USPA and UPT rating paperwork to further the impression that the students would legitimately get their tandem ratings through his courses.
As part of the scheme, Pooley used a digital image of the signature of another properly rated USPA and UPT tandem examiner to sign off on training that Pooley himself had conducted when the other tandem examiner was not even in the country. Pooley accepted numerous students in this manner in 2016 from around the world, including the Republic of Korea, Chile, New Zealand, and Mexico. Each student typically paid $1,000 to $1,600 total for these courses. On Aug. 6, 2016, one such student fell to his death in a tandem diving accident with a customer who also perished. After those deaths, numerous victims of Pooley’s scheme asked for their money back, but he did not repay them, and several students had to pay for entirely new tandem instructor courses at other locations.
This case is the product of an investigation by the Department of Transportation Office of Inspector General. Assistant U.S. Attorneys Christopher S. Hales and Katherine T. Lydon are prosecuting the case.
If convicted, Pooley faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count of wire fraud, and a mandatory two year sentence on each count of 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.
Former Stockton Man Sentenced to over 6 Years in Prison for Unemployment Benefits Fraud and Identity TheftRead the Press Release
SACRAMENTO, Calif. — Robert Joseph Maher, 42, formerly of Stockton, was sentenced today by U.S. District Judge John A. Mendez to six years and three months in prison for mail fraud and aggravated identity theft, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, between November 2010 and February 2018, Maher participated in a scheme to defraud the State of California Employment Development Department (EDD) by filing fraudulent claims for unemployment insurance benefits. In furtherance of this scheme, Maher and his co-defendant, Michael Herron II, also of Stockton, created fictitious companies and fictitious employees by using the real identities of persons with and without their knowledge. They then filed claims with EDD, falsely stating that the employees had been laid-off or fired. The unemployment benefits were deposited onto debit cards that were mailed to addresses controlled by Maher, Herron, or their associates.
In one instance, Maher and Herron electronically filed an unemployment insurance claim in the name of an identity-theft victim. Maher knew that the victim was a real person because the claim listed the victim’s correct date of birth and social security number. The claim also listed Maher’s address in Stockton as the claimant’s address, which caused a bank to mail an EDD debit card in the victim’s name to Maher’s address. Maher and Herron then transferred the card’s benefits to Maher’s personal bank account. Maher and Herron also used the victim’s name to register another fictitious business entity that was used in the fraud scheme. In all, Maher and Herron filed at least 72 fraudulent claims for unemployment insurance benefits, seeking a total of $739,535, of which EDD paid out approximately $609,335. Judge Mendez ordered Maher to pay restitution to EDD in the amount of $609,335.
This case is the product of an investigation by the U.S. Department of Labor - Office of Inspector General, the Federal Bureau of Investigation, and the California Employment Development Department’s Investigation Division. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
On March 26, 2019, Herron pleaded guilty to similar counts of mail fraud and aggravated identity theft and, on June 25, 2019, was sentenced to six years and three months in prison.
Bakersfield Man Pleads Guilty to Possessing and Attempting to Sell Large Amounts of Fentanyl, Cocaine and MethamphetamineRead the Press Release
FRESNO, Calif. — Jose Mario Quintero Beltran, 31, of Bakersfield, pleaded guilty today to possessing with the intent to distribute fentanyl, cocaine, and methamphetamine, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on March 31, Quintero Beltran arranged to meet a customer at a Bakersfield shopping mall and sell him 20,000 counterfeit oxycodone pills containing fentanyl for $42,000. During their meeting, Quintero Beltran also offered to sell the customer methamphetamine. Afterwards, law enforcement officers searched Quintero Beltran’s vehicle and residence and located a total of 51,000 counterfeit oxycodone pills containing fentanyl, approximately 40 pounds of cocaine, and approximately 3 pounds of crystal and liquid methamphetamine, all of which Quintero Beltran intended to distribute to others.
This case is the product of an investigation by the Drug Enforcement Administration, Homeland Security Investigations, and the Kern County Sheriff’s Office. Assistant U.S. Attorney Christopher D. Baker is prosecuting the case.
Quintero Beltran is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Sept. 7. Quintero Beltran faces a mandatory minimum penalty of 10 years in prison and a maximum life sentence, and up to a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.