Eastern District of California
Press releases recorded for this federal judicial district.
Fresno Man Previously Convicted of Assault with a Firearm on a Person Indicted for Unlawfully Possessing a FirearmRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Steven Eric Cabrera, 25, of Fresno, charging him with being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, Cabrera communicated over the social media platform Snap Chat to arrange the sale of a handgun at a local park. When he arrived, his car was stopped by law enforcement officers who searched the car and found a bag with a towel-wrapped handgun hidden inside. Cabrera cannot legally possess firearms because in 2017 he was convicted of assaulting a person with a firearm, a felony.
This case is the product of an investigation by the Fresno Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Justin J. Gilio is prosecuting the case.
If convicted, Cabrera faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Fresno Man Indicted on Drug and Firearm ChargesRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Hector Kioni Gongora, 43, of Fresno, charging him with possessing methamphetamine with the intent to distribute and unlawfully possessing a firearm and ammunition after being convicted of a felony, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Jan. 11, Gongora was arrested on a felony warrant and found to be in possession of a firearm and methamphetamine. A search of his residence recovered 177 additional rounds of ammunition. Gongora is a convicted felon prohibited from possessing firearms or ammunition.
This case was the product of an investigation by the Fresno Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Antonio J. Pataca is prosecuting the case.
If convicted of the possession of methamphetamine count, Gongora faces a mandatory minimum of five years in prison and a maximum statutory penalty of 40 years in prison and a fine of up to $5 million. If convicted of the counts of being a felon in possession of a firearm or ammunition, Gongora faces a maximum statutory penalty of 10 years in prison and a fine up to $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Defendant in Refund Fraud Scheme Sentenced to 10 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — Talalima Toilolo of Salt Lake City was sentenced today to 10 years in prison for a conspiracy to commit a bank fraud scheme that attempted to defraud financial institutions of more than $3.8 million, U.S. Attorney McGregor W. Scott announced.
Toilolo was also ordered to pay $827,369 in restitution to victims of the refund fraud. This amount reflects the amount that the defendants received from the scheme.
According to court documents, between June 2018 and February 2019, Talalima Toilolo, 44, conspired with Johnathon Ward and Monica Nunes 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. They 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.
Nunes has pleaded guilty and is scheduled to be sentenced on March 18. In July 2020, the government filed a superseding indictment in this case charging Johnathon Ward with multiple counts of conspiracy to commit wire fraud, wire fraud, and aggravated identity theft. The superseding indictment also added Sabrina Toilolo who is the daughter of Talalima Toilolo. These charges are still pending against Ward and S. Toilolo. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
United States Attorney McGregor Scott to Resign after Serving as Chief Federal Law Enforcement Officer for the Eastern District of CaliforniaRead the Press Release
SACRAMENTO, Calif. — U.S. Attorney McGregor W. Scott announced today that he will resign his position as the chief federal prosecutor for the Eastern District of California. The United States Attorney serves as the chief federal law enforcement officer and is responsible for prosecuting federal criminal cases and representing the United States in civil litigation. The Eastern District covers 34 counties throughout the Central Valley and the Sierras and has 92 attorneys and 91 non-attorney staff with offices in Sacramento, Fresno, and Bakersfield.
Mr. Scott tendered his resignation to the President and the Acting Attorney General today, and he will conclude his service as United States Attorney on February 28.
On Dec. 29, 2017, Scott was sworn in as the U.S. Attorney for the Eastern District of California, returning to the position he held from 2003 to 2009.
“Serving as the United States Attorney for the Eastern District of California has been the most fulfilling experience of my professional career,” said Scott. “It has been an honor these past three years to work with the women and men in this office and our law enforcement partners to keep our communities safe, to safeguard the Treasury, and to provide the United States with the highest quality legal representation in all the matters we handle.”
As of March 1, Phillip A. Talbert will assume leadership of the office as Acting U.S. Attorney. Talbert, who is currently the First Assistant U.S. Attorney, has had a distinguished career of more than 18 years in the office. He previously served as the court-appointed U.S. Attorney during the last transition between administrations, the Chief of Appeals and Training, and a prosecutor in the Narcotics and Violent Crime Unit. He also served in the Department of Justice’s Office of Professional Responsibility and Criminal Division before coming to the Eastern District of California. Mr. Talbert was also in private practice. He is a graduate of Harvard University, the University of Sydney, and the UCLA School of Law.
Mr. Scott received his B.A. from Santa Clara University in 1985 and his J.D. from Hastings College of the Law, University of California, in 1989. He served as a deputy district attorney from 1989 to 1997 in Contra Costa County and served as the elected District Attorney of Shasta County from 1997 to 2003. After completing his first term as U.S. Attorney, Mr. Scott practiced as a partner with the law firm of Orrick, Herrington, & Sutcliffe LLP, focusing on white collar criminal defense and corporate investigations. In addition, Mr. Scott retired in 2008 from the United States Army Reserve as a lieutenant colonel after 23 years of service.
Shasta County Resident Pleads Guilty to Tax FraudRead the Press Release
SACRAMENTO, Calif. —Deborah Gwen Orrey, 51, of Anderson, pleaded guilty today to making and subscribing a false tax return, U.S. Attorney McGregor W. Scott announced.
According to court documents, Orrey was the owner and operator of Affordable Tax, Bankruptcy, and Bookkeeping. From 2014 to 2017, Orrey submitted falsified tax returns to the Internal Revenue Service for her own tax returns and also the tax returns that she filed on her clients’ behalf. Orrey owed to the IRS an additional $112,083. She split the refunds due to her clients without her clients’ knowledge, causing a portion of the clients’ refunds to be deposited to her own bank account. Eight of her clients suffered an actual loss of a total of $3,729.
This case is the product of an investigation by the IRS Criminal Investigation. Assistant U.S. Attorney Tanya B. Syed is prosecuting the case.
Orrey is scheduled to be sentenced by U.S. District Judge John A. Mendez on May 18. Orrey faces a maximum statutory penalty of three years in prison and a $100,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Vallejo Man Sentenced to over 10 Years in Prison for Methamphetamine OffenseRead the Press Release
SACRAMENTO, Calif. — Joseph McCready Tomson, 30, of Vallejo, was sentenced Thursday to 10 years and three months in prison for possession with intent to distribute methamphetamine, U.S. Attorney McGregor W. Scott announced.
Tomson pleaded guilty on April 30, 2020. According to court documents, on Jan. 24, 2020, Tomson was stopped driving back from Mexico and found to be in possession of hundreds of pills hidden near the wheel well of his vehicle. On March 17, 2020, agents executed a search warrant at Tomson’s residence and found two pistols in the living room next to a large amount of tools and gun supply parts, including a handgun and an AR-15-style rifle. Agents also found two additional handguns in a desk next to bottles containing Xanax and Oxycodone pills and a bag containing 229 grams 100% pure methamphetamine.
This case was the product of investigation by the Drug Enforcement Administration. Assistant U.S. Attorney Cameron L. Desmond prosecuted the case.
Reno Man Sentenced to 10 Years in Prison for Fentanyl OffenseRead the Press Release
SACRAMENTO, Calif. — Saybyn Borges, 30, of Reno, Nevada, was sentenced Thursday to 10 years and one month in prison for possession with intent to distribute fentanyl, U.S. Attorney McGregor W. Scott announced.
Borges pleaded guilty on Aug. 6, 2020. According to court documents on May 21, 2018, in Placer County, Borges sold a confidential source 493 counterfeit oxycodone 30 milligram pills. The pills weighed 52.6 net grams and contained 1.6% fentanyl. Borges thereafter arranged to sell an additional 7,000 counterfeit oxycodone pills to the confidential source. On June 7, 2018, Borges arrived at the agreed-upon location in possession of the 7,000 fentanyl pills. Agents surrounded Borges’ vehicle and attempted to arrest him. Borges used his car to break containment by ramming an unmarked law enforcement vehicle. The car struck a CHP officer, injuring his hand. Borges then drove up to 100 miles-per-hour on a two-lane road, throwing tablets out the window as he fled. He was eventually apprehended. Agents located 3,440 counterfeit oxycodone pills scattered along the road and inside Borges’ vehicle. The pills weighed 367 net grams and contained 1% fentanyl.
This case was the product of investigation by the Drug Enforcement Administration. Assistant U.S. Attorney Cameron L. Desmond prosecuted the case.
Mexican National Residing in Turlock Sentenced to 6 Years in Prison on Gun ChargeRead the Press Release
FRESNO, Calif. — Fernando Valencia, 31, of Turlock, was sentenced Thursday to six years in prison for being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Oct. 30, 2019, Valencia was in possession of a loaded firearm in a vehicle in Turlock. He was previously convicted of multiple felonies, including a violent assault, and was therefore prohibited from possessing firearms and ammunition. At the time of Valencia’s arrest, he was on federal probation in the Southern District of California following a 2014 conviction.
This case was the product of an investigation by the Federal Bureau of Investigation, the Turlock Police Department, and the Stanislaus County District Attorney’s Office. Assistant U.S. Attorney Katherine Schuh prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Kern County Man Sentenced to over 5 Years in Prison for Check and Credit Card Fraud, Identity Theft, and Firearms OffensesRead the Press Release
FRESNO, Calif. — Rogelio Benavides, 35, of Arvin, was sentenced Thursday to five years and five months in prison for bank fraud, aggravated identity theft, and being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
Benavides was also ordered to pay over $20,000 in restitution and forfeit another $20,000 as part of his sentence.
Benavides pleaded guilty on Nov. 12, 2020. According to court documents, between November 2018 and September 2019, Benavides obtained hundreds of pieces of stolen mail that included checks, checkbooks, and personally identifiable information belonging to other individuals and businesses. He then altered and forged checks and either cashed or deposited the checks into his own bank accounts. He used personally identifiable information to apply for credit cards, which he used to make purchases and cash advances. He accessed bank accounts belonging to the other individuals and businesses and made payments for credit cards, loans, and insurance policies in his own name and the names of his associates. Benavides’ scheme caused more than $95,000 in fraudulent charges to be made to other individuals’ bank accounts and credit cards.
During the scheme, Benavides was found to have possessed a Glock Model 19, 9 mm pistol, which was illegal given his prior felony convictions.
This case was the product of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorneys Vincente Tennerelli and Joseph Barton are prosecuting the case.
Former Navy Chief Petty Officer and Naval Reservist Indicted for ID Theft SchemeRead the Press Release
FRESNO, Calif. — On Jan. 28, a federal grand jury in Fresno indicted Selma couple Marquis Asaad Hooper, 30, and Natasha Renee Chalk, 37, charging them with conspiracy to commit wire fraud, wire fraud, and aggravated identity theft, U.S. Attorney McGregor W. Scott announced.
According to court documents, Hooper was stationed in Japan as a chief petty officer with the Navy’s Seventh Fleet until October 2018. His wife, Chalk, was a naval reservist stationed at Naval Air Station Lemoore in California. Hooper separated from the Navy in October 2018. Shortly before Hooper’s separation was final, Hooper and Chalk fraudulently obtained access to a database containing millions of people’s personal information. The company that operates the database only grants access to legitimate businesses and government agencies and only for business or government purposes, such as police departments attempting to locate suspects or banks confirming the information in account applications.
In late August 2018, Hooper contacted the company, falsely claiming that the Seventh Fleet needed access to the database to run background checks on Navy personnel. Based on that information, the company approved the account. Hooper signed the company’s subscriber agreement, purporting to act on behalf of his fleet. In reality, Hooper was not acting on behalf of his fleet, and Hooper did not access the database for a legitimate government purpose. Instead, he added Chalk, who was not a member of his fleet, and other individuals to the database account. Over the next approximately two and a half months, Hooper and Chalk searched for tens of thousands of individuals on the database and sold the information they obtained on those individuals to third parties in exchange for bitcoin. The third parties used the information to commit identity theft.
For instance, in November 2018, a man in Gilbert, Arizona, attempted to withdraw money from another person’s bank account using a fake driver’s license created with information Hooper had retrieved from the database. The company shut down Hooper’s and Chalk’s database account in December 2018. Three months later, they tried again to get access to the database through one of Hooper’s Navy contacts stationed on the U.S.S. George Washington, docked in Newport News, Virginia. Hooper had the contact falsely state that another Navy member, L.B., was the contact’s supply officer. Hooper and Chalk then conspired to send the contact a subscriber agreement for the database, a fake driver’s license for L.B., and a fake letter from the contact’s commanding officer, all containing forged signatures.
This case is the product of an investigation by the Naval Criminal Investigative Service, the Federal Bureau of Investigation, and Homeland Security investigations. Assistant U.S. Attorneys Vincente A. Tennerelli and Joseph D. Barton are prosecuting the case.
If convicted, Hooper and Chalk face a maximum statutory penalty of 20 years in prison on the conspiracy and wire fraud charges and a mandatory two-years in prison, consecutive to any other sentence, on the aggravated identity theft charges. 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.
McFarland Man Sentenced to over 3 Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
FRESNO, Calif. — Eduardo Leon, 30, of McFarland, was sentenced today by U.S. District Judge Dale A. Drozd to three years and four months in prison for being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
On June 26, 2019, Leon, a convicted felon prohibited by law from possessing a firearm, possessed four machine gun conversion devices, which he had previously ordered online. Machine gun conversion devices are designed to convert semi‑automatic pistols to fire in fully automatic mode and are illegal in the United States.
This case was the product of an investigation by the Customs and Border Patrol and Homeland Security Investigations. Assistant U.S. Attorney Jessica A. Massey prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
Hanford Man Sentenced to More Than 7 Years in Prison for Orchestrating Firearms Trafficking RingRead the Press Release
FRESNO, Calif. — Rafael Sanchez, Jr., 41, of Hanford, was sentenced today by U.S. District Judge Dale A. Drozd to seven years and three months in prison for orchestrating a large-scale firearms trafficking ring, U.S. Attorney McGregor W. Scott announced.
According to court documents, between April 2016 and March 2018, while residing in Hanford, Sanchez identified firearms available for purchase in Tennessee with the assistance of various co-conspirators residing there. Sanchez transferred money to the Tennessee co-conspirators, who used the money to purchase, package and ship the firearms to Sanchez in California. With the assistance of others, Sanchez identified California-based purchasers and offered to sell and sold to them the firearms he received from the Tennessee co-conspirators. Neither Sanchez nor the six charged co-conspirators were licensed to deal or import firearms, and Sanchez was prohibited from possessing firearms because of a pior felony conviction in Kings County Superior Court for assault with a deadly weapon.
Five other defendants charged in the case have been convicted and sentenced to various terms of imprisonment and probation, including Alexis Sanchez, of Kettleman City, Veronica Ramirez, of Lemoore, and Tennessee residents Victor Luna, Ashley Sanchez and Elvia Sanchez. A seventh defendant, Juan Daniel Gonzalez Mejia, of Tennessee, was convicted of firearms trafficking and is scheduled to be sentenced on May 21.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco and Firearms and the Federal Bureau of Investigation. The U.S. Postal Inspection Service, Lenoir City - Tennessee Police Department, Department of Homeland Security, and the U.S. Attorney’s Office for the Eastern District of Tennessee assisted in the investigation. Assistant United States Attorney Christopher D. Baker is prosecuting the case in the Eastern District of California.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian
Vallejo Woman Sentenced to 5 Years in Prison for International Money Laundering Conspiracy and Tax FraudRead the Press Release
SACRAMENTO, Calif. — Ronda Boone, 58, of Vallejo, was sentenced today by U.S. District Judge Troy L. Nunley to five years in prison and ordered to pay $1,968,650 in restitution for a multimillion dollar tax fraud and money laundering conspiracy, U.S. Attorney McGregor W. Scott announced.
“The defendants attempted to steal more than $4.5 million from the IRS,” said Michael Daniels, Acting Special Agent in Charge IRS Criminal Investigation. “When their scheme finally worked, they moved their money through various accounts, including overseas. Once again this shows the severe nature of fraudulent tax refund schemes perpetrated against the IRS. Today’s sentencing sends a clear message that those involved in these types of schemes will be held accountable for their crimes.”
According to court documents and evidence presented at trial, Ronda Boone and her husband and co-defendant Marty Marciano Boone, 59, filed separate false tax returns claiming that they were owed millions of dollars in refunds from the IRS. While the IRS flagged Ronda Boone’s tax return as fraudulent and denied her claim, Marty Boone’s false return resulted in the IRS paying him over $1.9 million in a refund check. Evidence at trial established that Marty Boone and Ronda Boone then laundered those funds through domestic and foreign accounts, including by establishing a shell corporation in Cyprus and a church in the state of Washington through which they moved the fraudulently obtained money.
On Jan. 31, 2019, a jury found Marty Boone guilty of filing a false tax return, conspiring to commit money laundering and money laundering, and found Ronda Boone guilty of conspiring to commit money laundering and money laundering. On Nov. 14, 2019, Marty Boone was sentenced to seven years and three months in prison.
This case was the product of an investigation by IRS Criminal Investigation. Assistant U.S. Attorney Christina McCall handled the sentencing hearing in the case.
Two Indicted After Investigation into Reports of Sex Trafficking at the Desert Star MotelRead the Press Release
FRESNO, Calif. – A federal grand jury has returned a one-count indictment against Jatinbhai Naresh Bhakta, 29, and Roy Gene Drees, 45, both of Bakersfield, charging them with use of facilities of interstate commerce in aid of a racketeering enterprise, U.S. Attorney McGregor W. Scott announced today.
According to a criminal complaint, Bhakta purchased and began operating the Desert Star Motel at 516 South Union Avenue in Bakersfield in 2015. Bhakta lived in a unit at the motel. Drees also lived at the motel and was employed as a handyman and general manager.
Since 2015, the Bakersfield Police Department has made numerous prostitution-related arrests at the property. In May 2019, an investigation confirmed that Darnell Edwards forced two minor females to engage in prostitution at the Desert Star. On Nov. 7, 2019, Edwards was indicted for sex trafficking of minors. When a search warrant was executed at the Desert Star on Jan. 22, 2021, fifteen prostitutes and three pimps were encountered. Drees and Bhakta were arrested at that time.
If convicted, the defendants face a maximum statutory penalty of up to five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
January is Human Trafficking Awareness Month. Some of the federal and state resources available on this topic are available at the Department of Justice website and the California Attorney General’s website.
If you or someone you know is a victim of human trafficking, contact the Homeland Security Investigations’ Blue Campaign at 1-866-347-2423 or get help from the National Human Trafficking Hotline at 1-888-373-7888 or text 233733.
Report missing children, child pornography, or sexual exploitation of a child online to the National Center for Missing & Exploited Children (NCMEC) at 1-800-THE-LOST (843-5678) or https://report.cybertip.org/.
The investigation is ongoing and is being conducted by the Bakersfield offices of the Federal Bureau of Investigation, Homeland Security Investigations, Bakersfield Police Department, and the Parole Division of the California Department of Corrections and Rehabilitation. Assistant U.S. Attorney David L. Gappa is prosecuting the case.
Ten Indicted for Fentanyl TraffickingRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an 11-count indictment today against members of a drug trafficking organization, charging them with fentanyl trafficking and other related offenses, United States Attorney McGregor Scott announced.
Jose Lopez-Zamora, 26; Leonardo Flores Beltran, 29; Christian Anthony Romero, 25; Joaquin Sotelo Valdez, 24; Sandro Escobedo, 32; Erika Zamora Rojo, 45; and Alejandro Tello, 22; all of Sacramento; and Jason Lee, 48, of Sparks, Nevada, and Rudi Flores, 27, of Manteca, are charged with conspiracy to distribute fentanyl, cocaine, and methamphetamine as well as either fentanyl distribution or possession with intent to distribute fentanyl. Jose Aguilar Saucedo, 22, of Sacramento, is charged with three counts of fentanyl distribution.
According to court documents, Jose Lopez-Zamora was the U.S.-based leader of a drug trafficking organization that was responsible for importing from Mexico and distributing in the United States tens of thousands of fentanyl-laced counterfeit oxycodone (M-30) pills, as well as cocaine and methamphetamine. Law enforcement seized more than 20,000 of these pills during the investigation. Wiretapped calls show awareness by at least some co-conspirators that these fentanyl pills had been responsible for multiple overdoses and overdose deaths in the area.
This case is the product of an investigation by the Drug Enforcement Administration, Homeland Security Investigations, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the U.S. Marshals Service, the U.S. Postal Inspection Service, the Yuba-Sutter Narcotic and Gang Enforcement Task Force (NET-5), the California Highway Patrol, the Butte Interagency Narcotics Task Force (BINTF), the Tri-County Drug Enforcement Team (TRIDENT), the Sacramento County Sheriff’s Department, the Sacramento Police Department, the Roseville Police Department, the Manteca Police Department, the Yuba City Police Department, and the West Sacramento Police Department. Assistant U.S. Attorney David W. Spencer is prosecuting the case.
If convicted, Aguilar Saucedo faces a maximum statutory penalty of 40 years in prison and the other defendants face a maximum statutory penalty of life in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Previously Deported Alien Indicted for Possessing FirearmRead the Press Release
FRESNO, Calif. — Today, a federal grand jury returned a two-count indictment charging Roberto Carlos Leon-Garcia, 47, of Culiacán, Sinaloa, Mexico, with being an alien in possession of a firearm and being a previously deported alien found in the United States, U.S. Attorney McGregor W. Scott announced.
According to court documents, law enforcement officers arrested Leon in Merced County. Leon was in possession of a rifle and had previously been deported three times from the United States.
This case is the product of an investigation by the Drug Enforcement Administration with assistance from the Merced County Sheriff's Department, the Merced Area Gang and Narcotics Enforcement Team, and the California Department of Fish and Wildlife. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
If convicted, Leon faces a maximum statutory penalty of 10 years in prison on the firearm charge and two years on the immigration offense. He is also subject to a $250,000 fine as to both charges, as well as deportation upon completion of any prison sentence imposed. 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.
United States Attorney’s Office Files Suit Against San Joaquin County Pharmacy for Unlawfully Dispensing OpioidsRead the Press Release
SACRAMENTO, Calif. — In a civil complaint filed in the Eastern District of California, the United States alleges that Lawrence Howen and the pharmacy he owns, Nor-Cal Pharmacies Inc. doing business as Lockeford Drug, unlawfully dispensed controlled substances from 2016 through 2019, in violation of the Controlled Substances Act.
The complaint alleges that Howen failed to meet his obligations as the pharmacist of Lockeford Drug in dispensing dangerous opioids and other drugs. According to the complaint, Howen knowingly filled over 700 controlled substance prescriptions that were not issued for a legitimate medical purpose, and he filled prescriptions outside the ordinary course of pharmacy practice. This unlawful conduct resulted in the improper dispensing of over a hundred thousand of doses of controlled substances, primarily prescription opioids. Civil penalties and injunctive relief are sought to prevent Howen from committing further violations.
“As a pharmacist who filled prescriptions for dangerous controlled substances, Howen had an obligation to fill only those prescriptions that he ensured were legitimate,” said U.S. Attorney Scott. “Too many lives have been lost during the opioid crisis because those entrusted with responsibility turned a blind eye. This filing represents an important step in our efforts to hold pharmacists and others in the chain of opioid distribution accountable for misconduct.”
“Pharmacists are often the last line of defense to ensure controlled substances are dispensed lawfully and do not fall into the wrong hands. DEA will continue to hold those accountable who choose to ignore red flags and put the public at risk,” stated DEA Special Agent in Charge Daniel C. Comeaux.
This case is the product of an investigation by the Drug Enforcement Administration’s Sacramento Tactical Diversion Squad. Assistant U.S. Attorney Steven Tennyson is prosecuting the case.
Sacramento County Man Sentenced to 8 Years in Prison for Unlawfully Possessing a Firearm as a FelonRead the Press Release
SACRAMENTO, Calif. — Robert James Hanna, 38, of Elk Grove, was sentenced today to eight years in prison for being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Oct. 4, 2019, several witnesses called 911 to report a fight in progress at an intersection in Vacaville. The callers reported that Hanna and another man and two women were involved in a melee, and one of the witnesses saw a gun fall from Hanna’s clothing during the incident. Court records state that Hanna hit the man in the face several times, and at least one of the victims reported that Hanna threatened to shoot him. Hanna and a female companion fled the scene and were arrested at a nearby home-improvement store moments later. The female companion had a 9 mm pistol in her pants at the time. The companion said that Hanna had given her the gun and told her to go inside. One of the victims identified the gun as the one he saw in Hanna’s clothing during the altercation. Hanna cannot lawfully possess firearms or ammunition because he has previously been convicted of two felony offenses in Solano County for assault with a deadly weapon and false imprisonment.
This case was the product of an investigation by the Vacaville Police Department, with special assistance from the FBI’s Solano County Violent Crimes Task Force and the Solano County District Attorney’s Office. Assistant U.S. Attorney Michele Beckwith prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
Former PG&E Employee Sentenced to 22 Months in Prison for Fraud Conspiracy Involving $82.1MRead the Press Release
SACRAMENTO, Calif. — A former PG&E employee was sentenced today to 22 months in prison and ordered to pay $1,476,295 in restitution for a conspiracy to commit honest services wire fraud and receiving kickback payments from a Stockton transportation company owned by his cousin, U.S. Attorney McGregor W. Scott announced.
According to court documents, Ronald S. Schoenfeld, 65, of Goodyear, Arizona, formerly of Dublin, California, while employed at Pacific Gas and Electric Company, conspired to obtain contracts from PG&E for his cousin’s transportation business in exchange for kickbacks from that business worth approximately 2.5% of the value of the contracts. Schoenfeld concealed from PG&E his familial relationship with his co-conspirator from PG&E, provided confidential information to his co-conspirator, and, at times, directly intervened in the consideration of contracts between PG&E and his co-conspirator’s business, all contrary to PG&E’s policies.
From March 2007 through February 2015, PG&E paid at least $82.1 million to the business operated by Schoenfeld’s cousin for services it provided pursuant to PG&E contracts. During the same period, Schoenfeld’s co-conspirator paid him at least $1,476,295.15 in kickbacks for his role in the conspiracy.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys André M. Espinosa and Tanya B. Syed prosecuted the case.
Bakersfield Man Indicted for Laser Strikes on Sheriff HelicopterRead the Press Release
FRESNO, Calif. — Andrew Nathan Hernandez, 18, of Bakersfield, was arrested today for aiming a laser pointer at an aircraft, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Dec. 26, 2020, Hernandez aimed the beam of a laser pointer at the Kern County Sheriff’s helicopter Air-1. Hernandez is scheduled to be arraigned before U.S. Magistrate Judge Barbara A. McAuliffe on Tuesday, Jan. 26.
This case is the product of an investigation by the Federal Bureau of Investigation, the Kern County Sheriff’s Office, and the Bakersfield Police Department. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
If convicted, Hernandez faces a maximum statutory penalty of five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charge is only an allegation; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Fresno Man Sentenced to 3.5 Years in Prison for Being a Felon in Possession of AmmunitionRead the Press Release
FRESNO, Calif. — John Jacob Gullatt III, 47, of Fresno, was sentenced Tuesday by U.S. District Judge Dale A. Drozd to three and a half years in prison for being a felon in possession of ammunition, U.S. Attorney McGregor W. Scott announced.
According to court documents, on April 9 and 10, 2019, law enforcement officers investigating illegal firearms crimes searched Gullatt’s primary residence. Inside Gullatt’s bedroom, officers found thousands of rounds of ammunition and a handgun. Buried in the side yard of the house, officers dug up a disassembled AR-15-style rifle. Gullatt had been convicted of several felonies and was therefore prohibited from possessing firearms or ammunition.
This case was the product of an investigation by the Homeland Security Investigations and the Stanislaus County Special Investigations Unit. Assistant U.S. Attorney Justin J. Gilio prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian
United States Attorney’s Office Recovers $1 Million in Restitution for VictimsRead the Press Release
SACRAMENTO, Calif. — On Jan. 11, the United States received a $1 million payment as part of a settlement reached in a fraudulent transfer action brought by the Department of Justice, U.S. Attorney McGregor W. Scott announced.
According to court documents, in 2014, Mary Sue Weaver, 67, of Phoenix, Arizona, purchased a home titled solely in her name. A year later, Weaver was indicted for multiple counts of wire fraud, mail fraud, bank fraud, and false statements to a federally insured institution, with estimated losses of more than $22 million. She subsequently pleaded guilty to one count of wire fraud and one count of bank fraud and was sentenced to four years in prison and ordered to pay more than $15 million in restitution. Weaver currently is serving her sentence under home confinement.
Prior to her guilty plea, and a mere six weeks after Weaver was indicted, she executed a deed of trust against the home in favor of her husband, who was not charged. The deed of trust fully encumbered the home, putting it beyond the reach of her creditors, and prevented sale of the property to pay restitution to the victims of the fraud.
The U.S. Attorney filed a civil complaint under the Federal Debt Collection Procedures Act against Weaver and her husband, alleging that the execution and recording of the deed of trust to Weaver’s husband was fraudulent. After substantial discovery and litigation, the parties agreed to settle the action at mediation, where the defendants agreed that Weaver’s husband would make a $1 million cash payment to be applied towards Weaver’s restitution obligation.
“Convicted defendants who attempt to conceal or encumber their property to deprive victims of their lawfully ordered restitution will be found and stopped like Mary Sue Weaver was,” said U.S. Attorney Scott. “The job of the Department of Justice doesn’t end at conviction, and we never stop fighting on behalf of victims.”
Assistant U.S. Attorney Robin Tubesing handled the case for the United States.
Tulare County Gang Member Sentenced to 3 Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
FRESNO, Calif. — Cesar Pena, 28, of Strathmore, was sentenced Friday by U.S. District Judge Dale A. Drozd to three years and one month in prison for being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, on July 16, 2019, Pena, a Strathmore Norteno gang member and a convicted felon prohibited by law from possessing a firearm, sold a firearm to another individual in Fresno. Pena does not hold a Federal Firearms License, and as such, is also prohibited from selling firearms. On Oct. 2, 2020, Pena pleaded guilty to being a felon in possession of a firearm.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Jessica A. Massey prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
Fresno Man Sentenced to over 3 years in Prison for Illegally Possessing FirearmRead the Press Release
FRESNO, Calif. — Jesse Moses Escano, 22, of Fresno, was sentenced on Friday by U.S. District Judge Dale A. Drozd to three years and three months in prison for being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, on July 16, 2019, law enforcement officers conducted a parole-compliance check on Escano. During a pat down search, one of the officers discovered a loaded semi-automatic handgun on Escano’s person. The handgun was later determined to have been stolen out of Brentwood. Escano had been previously convicted of an assault with a deadly weapon, a felony, and was prohibited from possessing firearms.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fresno Police Department. Assistant U.S. Attorney Justin J. Gilio prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
Former Correctional Officer Pleads Guilty to Submitting False Report Related to a Federal Civil Rights InvestigationRead the Press Release
SACRAMENTO, Calif. — A former California Department of Corrections and Rehabilitations (CDCR) correctional officer pleaded guilty today to submitting a false report in connection with a federal civil rights investigation, U.S. Attorney McGregor W. Scott announced.
Ashley Marie Aurich, 32, of Sacramento, pleaded guilty to one count of falsification of records in a federal investigation.
According to court documents, Aurich was a correctional officer at California State Prison, Sacramento. On Sept. 15, 2016, Aurich and another former correctional officer, Arturo Pacheco, escorted an inmate whose hands were handcuffed behind the inmate’s back. During the escort, Aurich saw Pacheco bend down behind the inmate and pull the inmate’s legs out from under him. This caused the inmate immediately to fall forward violently striking his head and upper torso on the concrete. The inmate-victim was taken to the hospital where he died approximately two days later.
After the incident, Aurich prepared a false report regarding Pacheco’s assault on the victim in which Aurich inaccurately described the way Pacheco took the victim to the ground and failed to identify another witness to the assault. Aurich prepared the false report in order to deceive investigators, minimize Pacheco’s conduct, and obstruct the ensuing federal investigation.
This case is the product of an investigation by the Federal Bureau of Investigation and CDCR, Office of Internal Affairs. Assistant U.S. Attorney Brian A. Fogerty is prosecuting the case.
Aurich is scheduled to be sentenced by U.S. District Judge William B. Shubb on April 12. Aurich 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.
Arturo Pacheco, 38, of Mather, is charged with two counts of deprivation of rights under color of law and two counts of falsification of records in a federal investigation in a related case. The charges against Pacheco are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt. (2:20-cr-221-WBS)
Woman Pleads Guilty to Arson in the Tahoe National ForestRead the Press Release
SACRAMENTO, Calif. —Sharon Ann Perkins, 39, pleaded guilty today to setting fire to lands owned by the United States, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Sept. 15, 2020, Perkins intentionally set two wildland fires in the Tahoe National Forest in Yuba County. At the time, all United States Forest Service lands in California were subject to emergency fire restrictions due to extreme fire behavior across the state. Perkins set the fires using gasoline and articles of clothing. Perkins admitted that she started the fires in an attempt to burn down a travel-trailer in which she and her husband had been illegally camping.
This case is the product of an investigation by the U.S. Forest Service. Assistant U.S. Attorney Shea J. Kenny is prosecuting the case.
Perkins faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Solano County Man Pleads Guilty to Unlawfully Possessing a Firearm as a FelonRead the Press Release
SACRAMENTO, Calif. — Steven Michael Roberts, 33, of Vacaville, pleaded guilty today to being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Sept. 4, 2019, police officers responded to a call reporting that a man had a gun in his waistband. When officers arrived, they identified Roberts based on the reporting party’s description. Officers stopped Roberts, who admitted that he had a gun. Roberts was searched, and officers found a loaded 9 mm pistol in his waistband. Roberts cannot lawfully possess firearms or ammunition because he has previously been convicted of four felony offenses.
This case is the product of an investigation by the Vacaville Police Department with assistance from the FBI’s Solano County Violent Crimes Task Force and the Solano County District Attorney’s Office. Assistant U.S. Attorneys Miriam R. Hinman and Alexis Nelsen are prosecuting the case.
Roberts is scheduled to be sentenced by U.S. District Judge John A. Mendez on April 20. Roberts faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
High-Ranking Nuestra Familia Gang Member Pleads Guilty to Directing Drug Trafficking in Kings and Tulare Counties While Inside PrisonRead the Press Release
FRESNO, Calif. — High-ranking Nuestra Familia prison gang member Salvador Castro Jr., 50, pleaded guilty today to conspiring to distribute and to possess with intent to distribute more than 500 grams of methamphetamine, U.S. Attorney McGregor W. Scott announced.
According to court documents, Castro used a contraband cellphone from inside Pleasant Valley State Prison in Fresno County to arrange for the formation of a new street gang regiment in Kings and Tulare Counties. According to the plea agreement, Castro was recorded on a wiretap conspiring with associates outside of prison to distribute cocaine and methamphetamine. Between May 5, 2019, and May 15, 2019, Castro coordinated the transportation of approximately 10 pounds of methamphetamine from the Sacramento area to a residence in Visalia. Castro arranged for co-conspirators outside of prison to protect the narcotics during transit, and when the drugs arrived in Visalia, Castro and his co-conspirators discussed plans to distribute the methamphetamine to buyers in the Central Valley.
The case is the result of an investigation by the Kings County Gang Task Force; the Special Operations Unit – a team of agents from the California Department of Justice and the California Highway Patrol; California Department of Corrections and Rehabilitation; the FBI; the Kings County District Attorney’s Office; and the Tulare County Sheriff’s Office. Assistant U.S. Attorneys Justin Gilio, Kate Schuh, and Kimberly Sanchez are prosecuting the case.
Castro faces a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Fresno Man Sentenced to 5.5 Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
FRESNO, Calif. — U.S. District Judge Dale A. Drozd sentenced Rudy Soto, 32, of Fresno, today to five and a half years in prison for being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, on May 7, 2019, Soto fled from police in a high speed chase, crashed into another vehicle, and threw a loaded gun with a round of ammunition in the chamber from the sunroof of his car. Police had recognized Soto and knew he was wanted on an active felony warrant. The pursuit and gun discovery followed. Soto was prohibited from possessing a firearm as a result of four felony convictions between 2009 and 2016 for corporal injury to a spouse or cohabitant and three for evading an officer.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fresno Police Department. Assistant U.S. Attorney Kimberly Sanchez prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
Eastern District of California Obtains Nation’s First Civil Settlement for Fraud on Cares Act Paycheck Protection ProgramRead the Press Release
SACRAMENTO, Calif. — The first civil settlement to resolve allegations of fraud against the Paycheck Protection Program of the Coronavirus Aid, Relief, and Economic Security (CARES) Act has been entered into today by the Department of Justice, U.S. Attorney McGregor W. Scott announced.
SlideBelts Inc., an internet retail company and debtor in bankruptcy, and Brigham Taylor, the company’s president and CEO, have agreed to pay the United States a combined $100,000 in damages and penalties to resolve allegations that they committed fraud. SlideBelts also repaid the Paycheck Protection Program funds it received.
The CARES Act was enacted on March 29, 2020, to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the Paycheck Protection Program. In April 2020, Congress authorized over $300 billion, and in December 2020, Congress authorized nearly $285 billion in additional Paycheck Protection Program funding.
As part of the settlement, Taylor and SlideBelts admitted that they made false statements to federally insured banks that SlideBelts was not in bankruptcy in order to influence those banks to approve, and the Small Business Administration (SBA) to guarantee, a Paycheck Protection Program loan to SlideBelts. As a result of their false statements, SlideBelts received a Paycheck Protection Program loan for $350,000. Months later, in response to demands by the United States, SlideBelts returned the Paycheck Protection Program funds to the lender. Taylor and SlideBelts also admitted that their statements caused false claims to be made to the SBA in connection with the Paycheck Protection Program loan. This settlement resolves claims that Taylor’s and SlideBelts’ misconduct violated the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA).
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 those that affect federally-insured financial institutions.
“The defendants made false statements to multiple banks in order to obtain a Paycheck Protection Program loan that should have been disbursed to an honest small business suffering financially from the economic effects of the COVID-19 pandemic,” said U.S. Attorney Scott. “The Department of Justice and our partners at the SBA will use all tools at our disposal, including civil fraud statutes, to aggressively pursue those who exploit federal programs intended to help those in need during this national emergency.”
“This is a critical time for our nation’s small businesses,” said SBA OIG’s Western Region Special Agent in Charge Weston King. “Greed has no place in SBA programs that are intended to provide assistance to the nation’s small businesses struggling with the pandemic’s challenges. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
Assistant U.S. Attorney Matthew R. Belz handled the case for the United States. The investigation was conducted with the Office of the Inspector General for the United States Small Business Administration.
Bulldog Street Gang Member Involved in Hit-and-Run Sentenced to 4 Years in Prison for Illegally Possessing FirearmRead the Press Release
FRESNO, Calif. — Mario Alberto Rangel, 29, of Fresno, was sentenced today by U.S. District Judge Dale A. Drozd to four years in prison for being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Oct. 22, 2019, law enforcement officers attempted to stop Rangel for a traffic violation, but he failed to yield. Moments later, Rangel crashed into another car, then exited his car and fled the scene on foot. Fresno Police officers eventually caught up to him and arrested him. The car that he abandoned was searched, and a loaded shotgun was found in the back seat. Rangel is prohibited from possessing firearms because of his prior criminal record, including a 2018 conviction for assault with a firearm on a person.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fresno Police Department. Assistant U.S. Attorney Justin J. Gilio prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
Sacramento Man Charged with Possession with Intent to Distribute Fentanyl PillsRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment Thursday against Sabian Quesada, 22, of Sacramento, charging him with possession with intent to distribute at least 40 grams of fentanyl, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Nov. 13, Quesada was found to be in possession of a significant number of counterfeit oxycodone hydrochloride pills containing fentanyl, a powerful synthetic opiate known to cause overdoses and death, even in small quantities.
This case is the product of an investigation by the Federal Bureau of Investigation, the Sacramento County Sheriff’s Office, and the Sacramento County District Attorney’s Office. Assistant U.S. Attorney James Conolly is prosecuting the case.
If convicted, Quesada faces a maximum statutory penalty of 40 years in prison and a $5 million fine. In addition, the crime with which he is charged carries a statutory mandatory minimum of five years in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Vallejo Man Indicted for Firearms OffensesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment Thursday against Michael Ray Pitre Jr., 35, of Vallejo, charging him with being a felon in possession of firearms, and possession of an unregistered short barrel rifle, U.S. Attorney McGregor W. Scott announced.
According to court documents, the execution of federal search warrants of Pitre’s person, residences, and vehicles led to the discovery of a non-serialized machine gun, a short barrel rifle, and a pistol. The machine gun, which was located in his truck, was loaded with a 60-round extended magazine and was placed on top of a bag containing a mask, additional extended magazines and ammunition, and two tracking devices.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Oakland Police Department. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.
If convicted, faces a maximum statutory penalty of 10 years in prison on each charge, a $250,000 fine for the felon in possession charge, and a $10,000 fine for the possession of an unregistered firearm charge. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
Fresno Man Sentenced to 9 Years in Prison for Illegal Firearms PossessionRead the Press Release
FRESNO, Calif. —David Vann, 29, of Fresno, was sentenced today by U.S. District Judge Dale A. Drozd to nine years and two months in prison for being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, Vann failed to yield to police officers during an attempted traffic stop. He then led officers on a vehicle chase, during which he failed to stop at a stop sign and stop light, and drove southbound in the northbound lane of traffic. After exiting the vehicle, Vann discarded a firearm in bushes in a residential area. Vann is a convicted felon prohibited from possessing a firearm. He was on post-release community supervision at the time of his arrest in this case.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fresno Police Department. Assistant U.S. Attorney Katherine Schuh prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
U.S. Attorney Scott Announces Results from Joint Initiative to Reduce Ongoing Violence in VallejoRead the Press Release
SACRAMENTO, Calif. — U.S. Attorney McGregor W. Scott announces outcomes in Operation PEACE, an initiative launched in Vallejo in August 2020 in response to the increased number of homicides, non-fatal shootings and other violent crimes in Vallejo. By late August 2020, the city had recorded 19 homicides, as well as a significant uptick in shootings and other violent crimes.
Beginning in September 2020, the Vallejo Police Department expanded the reach of Operation PEACE through a partnership formed between the Vallejo Police Department, the Solano County District Attorney’s Office, and the U.S. Attorney’s Office, the Federal Bureau of Investigation, the Drug Enforcement Administration, the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Homeland Security Investigations (HSI).
Operation PEACE leverages the strength of these federal and local law enforcement agencies by focusing enforcement operations on violent criminals, including those responsible for murders and shootings, and targets involved in drug trafficking and firearms trafficking.
“Operation PEACE has successfully taken armed, violent criminals off the streets of Vallejo,” U.S. Attorney Scott said. “These successes will continue as the partnership between federal and local law enforcement agencies continue and bring about a safer Vallejo.”
“We must all remember that behind the statistics are real people experiencing real trauma,” Vallejo Chief of Police Shawny Williams stated. “Our community needs and deserves our compassion, service and commitment during times of difficulty and we are hopeful that Operation PEACE will help us achieve that goal.”
“Drug traffickers often use violence, fear and intimidation as tactics. They have little regard for human life or the communities in which they live. They profit off the pain and suffering of people,” stated DEA Special Agent in Charge Daniel C. Comeaux. “Spikes in violent crime require a swift, calculated, and intel-driven law enforcement response like this one. We will continue to collaborate with our law enforcement partners to ensure the health and safety of the community.”
“I am truly grateful for the assistance and cooperation of all the local and federal law enforcement partners who remain committed to reducing the gun violence throughout our community,” said District Attorney Krishna Abrams.
“The FBI and our Solano County Violent Crime Task Force affirmed our commitment to the region by surging resources to support Operation PEACE in Vallejo and the urgent need to reduce violent crime in the community. Together, with our task force officers from the Vallejo Police Department, California Highway Patrol, Solano County Sheriff’s Office, Benicia Police Department, Fairfield Police Department, and Vacaville Police Department, our investigative and analytic teams have dedicated more than 3,200 service hours to ensure the success of our collaborative local, state, and federal efforts to reduce violent crime in Vallejo,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “Every family should have the opportunity to live, work, and play without fear, and we ask the community to join us in our stand against violence. You can make a difference. If you have information about crime in your community, call our tip line or submit information online to help ensure a safe environment in all of our neighborhoods.”
“The U.S. Marshals Service task force committed over 40 officers for this operation to help relieve the fear and violence of those who live in the City of Vallejo,” U.S. Marshal Lasha Boyden said. “As a result of teamwork and partnership, we were able to track and apprehend some of Vallejo’s most violent offenders.”
“Operation PEACE was a multi-agency law enforcement investigation related to the ongoing violent criminal activity in the city of Vallejo,” said Special Agent in Charge Patrick Gorman, San Francisco Field Division, ATF. “Protecting the public is at the forefront of ATF’s mission, and while working side by side with our partners, ATF focused on our central role in combatting gun violence. Together, the law enforcement agencies involved in this investigation leveraged our resources and specialties to reduce the illegal use and possession of firearms, as well as the illegal distribution of narcotics in the Vallejo area. ATF and our law enforcement partners have made a tremendous effort to make the city of Vallejo a safer community, and we remain committed in doing our part to disrupt the shooting cycle by identifying, investigating, and prosecuting violent criminals and the sources of their crime guns, and remove them from our communities. ”
“HSI agents were highly focused on stopping these criminals’ lawless reign of shootings, narcotics trafficking and a number of other illegal activities. The success of this case was made possible through the partnership of HSI with the Vallejo Police Department, FBI, ATF, DEA, the U.S. Marshals Service, the U.S. Attorney’s Office and the Solano County District Attorney. We look forward to continuing our valuable partnership, as we combat modern slavery known as human trafficking, gang violence, and a host of other criminal activities that have no place in Northern California,” said HSI NorCal Special Agent in Charge Tatum King.
In the first phase of Operation PEACE, during the week of Sept. 21–25, the Marshals Service and Vallejo Police Department apprehended 25 fugitives who were violent offenders with outstanding state and federal arrest warrants, including fugitives wanted for lewd and lascivious acts on a minor and resisting arrest.
In the second phase of Operation PEACE, the DEA spearheaded an effort to target violent offenders engaged in large-scale drug trafficking within Vallejo and suppliers outside of Vallejo. Using confidential informants and undercover agents, the Operation PEACE teams conducted over 12 controlled drug purchases, which led to multiple search and arrests operations. These efforts led to the federal prosecution the following:
Michael Williams, 58, and Clarence Courtney, 55, both of Vallejo, were charged with conspiracy to distribute heroin and methamphetamine, distribution of heroin, distribution of methamphetamine, and possession with the intent to distribute methamphetamine. Courtney is also charged with being a felon in possession of a firearm. Because Courtney has four prior drug trafficking felony convictions, he is prohibited from possessing a firearm. According to court documents, Williams sold an undercover agent over 2 pounds of crystal methamphetamine and over 1 ounce (32 grams) of heroin between September and November 2020. Courtney sourced the methamphetamine and heroin to Williams. On Dec. 3, agents arrested Williams and Courtney and found them to be in possession of over 3 pounds of methamphetamine. Agents later found a ghost-gun assault rifle, a handgun, and over 100 rounds of ammunition in Courtney’s residence. Williams also has an extensive criminal history, with seven prior felonies for drug trafficking, theft, and burglary.
Darren Tramaine Tony Mitchell, 30, and Ronald John Garnes, 42, both of Vallejo, were charged with conspiracy to manufacture, distribute, and possess with the intent to distribute methamphetamine. Mitchell was also charged with being a felon in possession of a firearm. Mitchell, who has seven prior felony convictions for drug trafficking, burglary, and firearms offenses, is prohibited from possessing a firearm. When agents searched the residence where Mitchell and Garnes both lived, they found an active methamphetamine tablet manufacturing operation that included a pill press, pill binding materials, manufacturing equipment, and thousands of methamphetamine tablets shaped like superheroes. They also found an assault rifle and a handgun in the dishwasher in the kitchen. Garnes also has an extensive criminal history, with five prior felony convictions. He had recently been released from prison after a conviction for attempted murder.
Marques Julius Johnson, 39, of Sacramento, and Calvin James Smith, 32, were charged in criminal complaints with distribution and possession with intent to distribute methamphetamine. Johnson was also charged with conspiracy to distribute methamphetamine. According to court documents, undercover operatives conducted multiple purchases of counterfeit MDMA tablets containing methamphetamine from Johnson in Vallejo. On Dec. 9, Johnson and Smith were arrested together during an undercover purchase in Vallejo and found to be in possession of 6,000 methamphetamine tablets and a loaded pistol. Smith was also found carrying an AR-15, loaded with a high capacity magazine.
The above cases are the product of investigations by DEA Sacramento with assistance from HSI, FBI, ATF, and the Vallejo Police Department. Assistant U.S. Attorney Cameron Desmond is prosecuting the cases against Courtney and Mitchell, Assistant U.S. Attorney Alexis Nelsen is prosecuting the case against Johnson.
Brian Earl Turner, 32, of Vallejo, was charged with being a felon in possession of a firearm. According to court documents, on Sept. 16, Turner possessed a Glock 27, .40‑caliber handgun. Turner has been convicted of assault on a person with a semi‑automatic firearm and is prohibited from possessing a firearm.
Lamonte Eshawn Percoats, 33, of Vallejo, was charged with possession with intent to distribute heroin, being a felon in possession of a firearm, and possessing a firearm in furtherance of a drug trafficking crime. According to court documents, on Sept. 29, Percoats possessed a Taurus 9 mm, and at least 100 grams of heroin. Percoats has been convicted of four prior convictions: possession of a controlled substance while armed, assault with a deadly weapon (not a firearm), being a felon in possession of a firearm, and an assault with a deadly weapon. These prior convictions prohibit Percoats from possessing a firearm.
The cases against Turner and Percoats are the product of investigations by the Solano County Violent Crime Task Force, which includes the following law enforcement partnerships: Vallejo Police Department, Vacaville Police Department, Fairfield Police Department, California Department of Corrections and Rehabilitation, Solano County Sheriff’s Office, California Highway Patrol, Benicia Police Department and the FBI. Assistant U.S. Attorney Jill Thomas is prosecuting both cases.
The charges are only allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
During these investigations, Operation PEACE partners took multiple dangerous high-capacity firearms and drugs off the street.
The Solano County District Attorney’s Office continues to work with the Operation PEACE Partners for local prosecutions of violent offenders and is coordinating with the U.S. Attorney’s Office regarding the federal adoption of certain cases.
Phase two of Operation PEACE is ongoing and will continue to target violent subjects committing crimes in Vallejo until the violence stops. Some of these efforts include complex, long-term investigations that are likely to result in future state and federal prosecutions of violent individuals. Operation PEACE will continue to hold those responsible for violence in our community through enforcement and prosecutions in effort to break the cycle of violence.
Two COVID-19 Unemployment Benefit Fraud Schemes Charged in the Eastern District of CaliforniaRead the Press Release
SACRAMENTO, Calif. — Hundreds of thousands of dollars have been fraudulently taken in two separate schemes that targeted California Employment Development Department (EDD) unemployment insurance benefits that were intended for Californians hit hardest by the ongoing COVID-19 pandemic shutdown, U.S. Attorney McGregor W. Scott announced.
The benefits involved billions of dollars in federal subsidies that have been significantly increased through the Pandemic Unemployment Assistance (PUA) program of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
“The U.S. Attorney’s Office is committed to the mission of combatting fraud that abuses the provisions of the CARES Act,” said U.S. Attorney Scott. “We will work with every major law enforcement agency to investigate and prosecute the fraud arising out of the pandemic. This theft of taxpayer dollars intended to assist our citizens in a very difficult economic time simply will not be tolerated.”
“Today’s charges demonstrate the Office of Inspector General’s commitment to combating fraud against the unemployment insurance program, which has become increasingly prevalent amid the pandemic. We will continue to work with our law enforcement and state workforce agency partners to pursue individuals who seek to undermine the integrity of the unemployment insurance program,” said Quentin Heiden, Special Agent-in-Charge, Los Angeles Region, U.S. Department of Labor Office of Inspector General.
“The FBI’s long-standing partnership with our local, state, and federal law enforcement partners aid our collective efforts to swiftly identify and aggressively investigate instances of government benefit fraud,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “Unemployment benefits are intended to support individuals and families who are in crisis due to the economic impact of the COVID-19 pandemic, not be illegally diverted by fraudsters who surreptitiously steal the identities of the unsuspecting. Many victims do not know they have been targeted until they themselves try to file a claim or are notified by EDD, the IRS, or their employer.”
“Today’s announcement reflects our collaborative commitment to work together across all levels of government and highlights that joint cooperation and a “one team, one fight” approach are already paying dividends,” said Mark S. Ghilarducci, Director, California Governor’s Office of Emergency Services and California’s Homeland Security Advisor. “Going forward, this State Coordination Task Force will remain laser focused on continuing to augment and coordinate with our partners at the US Attorney’s Office, with the district attorney’s offices and with our other state, local and federal law enforcement agencies, to continue to root out criminal activity and the fraud that has occurred within the unemployment system and ultimately hold those responsible accountable.”
“There are so many Californians that have been impacted by COVID-19, and we have no tolerance for anyone who tries to defraud the hard-working people of this state. Our investigators have been dedicated to this and other cases of fraud, and these indictments are the result of collaboration and hard work,” said Kathleen Allison, Secretary of the California Department of Corrections and Rehabilitation. “We want to thank U.S. Attorney Scott and all of our partners for the shared commitment in neutralizing fraud in the state’s prisons. We will continue to use every tool at our disposal to hold accountable those who break the law.”
“The EDD is committed to combatting the aggressive fraud attacks against the unemployment benefit system and is grateful for the collaborative efforts of federal, state and local partners in this shared goal,” said Nancy Farias, EDD’s Chief Deputy Director of External Affairs, Legislation, and Policy. “EDD has enhanced its fraud detection and prevention tools to ensure only valid claimants receive timely benefits. We will work with law enforcement to hold those accountable who seek to defraud the unemployment system.”
Today, the federal grand jury in Fresno returned an indictment involving a prison-based scheme out of the Central California Women’s Facility (CCWF) in Chowchilla. Inmate Sholanda Thomas, 36, and parolee Christina Smith, 37, were indicted for conspiracy to commit mail fraud and aggravated identity theft charges for the submission of several fraudulent EDD unemployment insurance claims in Thomas’ and other CCWF inmates’ names. Recorded jail calls and emails show that Thomas and others engaged in “bundling,” that is, they obtained the names, dates of birth, and social security numbers for inmates at CCWF and relayed that information to Smith to submit the fraudulent claims. The claims were submitted shortly thereafter, and the benefits were loaded onto debit cards that were mailed to the addresses provided.
The underlying applications for the claims falsely stated that the inmates had worked within the prescribed period as hairstylists, barbers, 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 a loss of over $200,000 as a result of the fraud.
Thomas and Smith used the proceeds for their own benefit, which included Smith keeping Thomas’ share in a shoebox pending Thomas’ release from prison, and Smith getting plastic surgery.
This case is the product of an investigation by the Federal Bureau of Investigation and the California Department of Corrections and Rehabilitation, Investigative Services Unit. Assistant U.S. Attorney Joseph Barton is prosecuting the case.
In the second scheme, Andrea M. Gervais, 43, of Roseville – a former Employment Development Department employee – allegedly participated in a mail fraud scheme involving approximately 100 fraudulent Pandemic Unemployment Assistance (PUA) claims in the names of persons other than Gervais. According to the criminal complaint, at least 12 of the 100 claims were processed for payment, and over $200,000 in PUA benefits were paid out to Gervais’s Roseville address in the form of Bank of America debit cards. The total value of all fraudulent PUA claims from her residence was at least $2 million.
The investigation began when investigators discovered a PUA claim using the identity of a sitting United States Senator for approximately $21,000. This fraudulent claim was processed for payment, and Gervais received a PUA debit card in the United States Senator’s name. Investigators further discovered that Bank of America ATM cameras captured Gervais on multiple occasions withdrawing cash from at least seven of the PUA debit cards, and at least one captured transaction showed Gervais using the debit card issued to the United States Senator.
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 – Investigation Division. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
Gervais was arrested on federal complaint on Tuesday. On Wednesday, Gervais made her initial appearance before a U.S. magistrate judge and was released on bond pending further proceedings.
If convicted, Thomas and Smith face a maximum statutory penalty of 20 years in prison for conspiracy to commit mail fraud, and a mandatory and additional two-year prison sentence if convicted of aggravated identity theft. If convicted, Gervais faces a maximum statutory penalty of 20 years in prison for mail fraud. Each defendant also faces 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; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
The CARES Act is a federal law enacted March 29 that is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization that expands states’ ability to provide unemployment insurance for many workers impacted by COVID-19, including for workers who are not ordinarily eligible for unemployment insurance benefits.
Anyone with information about attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866‑720‑5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Sacramento Man Sentenced to over 17 Years in Prison for Producing Child PornographyRead the Press Release
SACRAMENTO, Calif. — Nicholas Vuksinich, 35, of Sacramento, was sentenced today by U.S. District Judge Troy L. Nunley to 17 years and seven months in prison for producing child pornography, U.S. Attorney McGregor W. Scott announced.
In sentencing Vuksinich, Judge Nunley said, “There are no victims in the criminal justice system more vulnerable than children.” Judge Nunley also ordered Vuksinich to pay at least $33,000 in restitution with additional amounts to be determined at a hearing scheduled for Feb. 11, 2021.
“This defendant’s conduct was long-lasting, extensive, and directed at real children whom he manipulated on the internet,” U.S. Attorney Scott said. “His actions will have severe effects on his victims that may last for the rest of their lives. Today’s sentence reflects the seriousness of the offense and our office’s commitment to protect children from further crimes of this nature.”
According to court documents, between July 6, 2016, and November 2016, Vuksinich communicated with a victim who lived in the Midwest region using video, audio, and Skype chat. When the communication began, Vuksinich knew that the victim was 14 years old. Through a series of online interactions on different days, Vuksinich directed her to engage in numerous demeaning, lewd, lascivious, and sexual activities, and he saved the images to his computer.
On May 30, 2018, law enforcement executed a search warrant at Vuksinich’s residence in Sacramento. A search of his computer revealed approximately 500 images of the victim. His computer also contained more than 900 additional child pornography videos and photos, including downloads on the day of the search. Skype chats on Vuksinich’s computer also indicated he directed numerous other minor children to perform sex acts.
This case was investigated by the Sacramento Internet Crimes Against Children (ICAC) 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. Attorneys Christopher S. Hales and Rosanne L. Rust prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Emeryville Man Pleads Guilty to Selling Stolen MacBooks to Folsom ContactRead the Press Release
SACRAMENTO, Calif. — Jonas Jarut, 41, of Emeryville, pleaded guilty today to conspiracy to transport stolen property interstate, U.S. Attorney McGregor W. Scott announced.
According to court documents, Jarut worked as a database administrator in the Graduate School of Education at a public university in Berkeley. In that position, his duties included purchasing Apple MacBooks for the graduate school. In March 2019, Jarut began stealing MacBooks from the graduate school and selling them for cash to an individual in Folsom who, in turn, resold and shipped them to buyers outside the state of California. In total, Jarut stole and sold that individual at least 90 MacBooks. The cost to the graduate school of those MacBooks was over $200,000.
This case is a product of an investigation by the IRS Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorney Matthew Thuesen is prosecuting the case.
Jarut is scheduled for a status conference regarding sentencing on June 14, 2021. He faces a maximum statutory penalty of five 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.
Former Clovis Pastor Sentenced to over 7 Years in Prison for Real Estate Development Fraud SchemeRead the Press Release
FRESNO, Calif. — Sherman Smith, 74, of Monterey, was sentenced today to seven years and three months in prison and ordered to pay $2,187,000 in restitution for a scheme that defrauded church congregants and others, U.S. Attorney McGregor W. Scott announced.
In sentencing Smith, U.S. District Judge Dale A. Drozd said, “Mr. Smith is a con-man and a thief.”
“Smith’s actions in this case went far beyond ‘misappropriation,’” said U.S. Attorney Scott. “In asking for church donations to support his scheme, he targeted widows for their deceased husband’s life insurance money; he asked for money to be withdrawn from retirements accounts; he damaged marriages and family relationships; he took away parents’ dreams of affording college for their children, and he destroyed lives. Today’s sentence is the second federal sentence for Smith, who previously served 37 months in prison for securities fraud that caused a loss of over $5 million with 38 different victims. Our office is committed to protecting the public from financial predators like Smith.”
“Smith abused his trusted role as executive pastor of a community church by diverting funds intended to help the church and congregation to fund his personal and business expenses,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “The FBI is committed to investigating allegations of significant financial crime, especially those involving individuals who exploit trusted, valued relationships. While today’s sentence offers some justice to Smith’s victims, many face a long journey to financial recovery from the hardship this scheme created. We ask the public to commit to researching all financial investment opportunities, regardless of who is proposing or coordinating the investment.”
On Sept. 18, Smith, the executive pastor of a church in Clovis, pleaded guilty to wire fraud. According to court documents, Smith induced investors, including church congregants, to give money to the church by representing that the money would be used to finance a real estate development project for the benefit of the church. Smith made appeals from the pulpit, via email, and in person for monies to pay off the church’s mortgage and to fund an income-generating development. Smith collected cash, checks, and rolled-over retirement accounts to fund the church’s project, but he did not disclose to investors that he used the money for personal expenses, to operate a publishing business, and to invest in foreign ventures. Smith defrauded investors of more than $2 million.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Laura D. Withers prosecuted the case.
Two Indicted for Possession with Intent to Distribute Methamphetamine in StocktonRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Ausencio Alvarez Cortez, 41, of Stockton, and Angel Ismael Ramirez, 30, of Los Angeles, charging them jointly with conspiring to distribute methamphetamine and possession of methamphetamine with intent to distribute, and charging Cortez separately with distributing methamphetamine, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Oct. 26, a confidential source bought 3 pounds of methamphetamine from Cortez. Following that purchase, on Nov. 12, the source met again with Cortez, who was accompanied by Ramirez, ostensibly to execute a transaction for 50 pounds of methamphetamine. When Cortez showed the source the requested methamphetamine, however, law enforcement officers converged on the scene, arresting Cortez and Ramirez, and seizing the 50 pounds of methamphetamine as well as a loaded semi-automatic handgun from the back seat of Cortez’s pickup truck.
This case is the product of an investigation by the Federal Bureau of Investigation, the San Joaquin Metropolitan Narcotics Task Force, and the San Joaquin County District Attorney’s Office. Assistant U.S. Attorney James Conolly is prosecuting the case.
If convicted, both Cortez and Ramirez face a maximum statutory penalty of life in prison and a $10 million fine, for each of the narcotics charges, all of which have a statutory mandatory minimum penalty of 10 years in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Tulare County Man Indicted on Gun and Ammunition ChargesRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Ralph Zavala, 39, of Woodlake, charging him with being a felon in possession of a firearm and ammunition, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Sept. 1, Zavala was arrested as part of a law enforcement effort to apprehend parolees who have absconded from parole supervision. Officers observed Zavala in a vehicle, and as they moved in to apprehend him, Zavala drove into an agent’s vehicle. Zavala was eventually arrested and found to be in possession of a loaded Cobra Denali semi-automatic .380 ACP pistol. Zavala has several felony convictions in Tulare County and is prohibited from possessing either a firearm or ammunition.
This case is the product of an investigation by the Federal Bureau of Investigation, the California Department of Corrections and Rehabilitation, the Woodlake Police Department, and the Visalia Police Department. Assistant U.S. Attorney Laura Jean Berger is prosecuting the case.
If convicted, Zavala faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
The case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
San Francisco Man Arrested in Placer County IndictmentRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment today charging a San Francisco man, arrested in Lincoln, with being a felon in possession of a firearm and possession of controlled substances, U.S. Attorney McGregor W. Scott announced.
Ricardo Manuel Duran, 37, was charged with being a felon in possession of a firearm, possession of heroin, and possession of methamphetamine. According to court documents, on Oct. 20, Duran possessed a Smith and Wesson handgun and was further found to be in possession of heroin and methamphetamine. Duran has been convicted of six prior felonies – two of them for being a felon in possession of a firearm – and is prohibited from possessing a firearm.
This case is the product of an investigation by the Lincoln Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Alexis Nelsen is prosecuting the case.
If convicted, Duran 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 a part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also a part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
Bakersfield Man Indicted for Unauthorized Transfers of more than $450,000 from A Victim’s Bank Account to a Brokerage Account He ControlledRead the Press Release
FRESNO, Calif. — Ramon Armendariz, Jr., 33, of Bakersfield, was indicted on Oct. 15, 2020, and charged with multiple counts of wire fraud, bank fraud, and aggravated identity theft, U.S. Attorney McGregor W. Scott announced.
According to court documents, Armendariz unlawfully obtained personal identifying information and bank account information of the victim, S.L., which he used to open a brokerage account in the victim’s name. Armendariz used S.L.’s personal bank accounts to fund the brokerage account. Armendariz listed himself as an authorized check writer on the brokerage account in order to access the funds when the transfers to the brokerage account were completed. Armendariz’s scheme unraveled when S.L. discovered the unauthorized transfers and notified the financial institution, resulting in a freeze of the funds in the brokerage account.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Melanie L. Alsworth is prosecuting the case.
If convicted, Armendariz faces a maximum statutory penalty of 20 years in prison on each count of wire fraud, up to 30 years in prison on each count of bank fraud, and a mandatory consecutive sentence of two years in prison on the 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.
Vallejo Man Sentenced to over 4 Years in Prison for Illegally Possessing a FirearmRead the Press Release
SACRAMENTO, Calif. — Joshua Wayne Thompson, 26, of Vallejo, was sentenced today to four years and three months in prison for being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Nov. 18, 2019, law enforcement officers arrested Thompson on multiple felony warrants. Before the arrest, officers witnessed Thompson exit a home in Vallejo and approached him. Thompson ran toward and entered the driver’s side door of a Ford Fusion. While attempting to flee, Thompson rammed the Ford into a Deputy U.S. Marshal’s vehicle. Officers placed Thompson under arrest. At the time of the arrest, Thompson possessed a loaded pistol with a 25-round extended magazine. Thompson cannot possess a firearm or ammunition because he previously was convicted of a felony offense.
This case was a product of an investigation by the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the California Highway Patrol. Assistant U.S. Attorney Matthew Thuesen prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
Solano County Man Pleads Guilty to Narcotics and Firearms OffensesRead the Press Release
SACRAMENTO, Calif. — Jesus Heriberto Barajas, 29, of Suisun City, pleaded guilty today to possession of cocaine and methamphetamine for distribution and possessing a firearm as a felon, U.S. Attorney McGregor W. Scott announced.
According to court documents, on April 11, 2019, police officers executed a search warrant at Barajas’ home in Suisun City. During the search, they found approximately 860 grams (1.9 pounds) of powder cocaine, 370 grams (0.8 pounds) of methamphetamine, a digital scale, and a stolen .40-caliber pistol that had been modified to function as a fully automatic machine gun. Barajas is not allowed to possess firearms or ammunition because he has previously been convicted of a felony offense.
This case is the product of an investigation by the Fairfield Police Department, with special assistance from the FBI’s Solano County Violent Crimes Task Force, the Solano County District Attorney’s Office, and the Fresno County District Attorney’s Office. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.
Barajas is scheduled to be sentenced by U.S. District Judge Troy Nunley on May 20, 2021. For each of the narcotics charges, Barajas faces a mandatory minimum sentence of five years in prison, a maximum statutory penalty of 40 years in prison and a fine of up to $5 million. For the firearm charge, Barajas faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
Former Fresno IRS Employee Sentenced to 6 Years in Prison for Wire Fraud, Aggravated Identity Theft, and Tax FraudRead the Press Release
FRESNO, Calif. — A former employee of the IRS working in Fresno was sentenced today to six years in prison for a scheme to receive tax refunds by filing false tax returns using the stolen identities of at-risk youths, U.S. Attorney McGregor W. Scott announced.
On Dec. 12, 2019, a federal jury found Marcela Heredia, 47, of Riverside, guilty of seven counts of wire fraud, four counts of aggravated identity theft, and one count of making a false tax return.
According to court documents and evidence introduced at trial, until 2014, Heredia worked at the Fresno Economic Opportunities Commission’s Transitional Living Center. Heredia also worked at the IRS as a Tax Examiner between 2008 and 2014. While working at the Transitional Living Center, Heredia stole residents’ personally identifiable information (PII) and filed numerous tax returns that included false wage and withholding information, false educational expenses, false dependent claims, and others false claims. Heredia directed the refunds for those returns to her personal bank account, spending the money on various personal expenses. Heredia failed to report any of the refund money she directed into her account on her 2011 tax return.
Many of the residents at the Transitional Living Center whose personal identifying information Heredia stole in order to file false tax returns were young, at-risk adults. Many were former foster children who had aged out of foster care, many were homeless and had nowhere else to go.
“Heredia spent three years taking advantage of vulnerable kids, stealing their personal information to get their tax refunds to spend on entertainment tickets, groceries, rental cars, restaurants, retail shopping, liquor stores, and other day-to-day expenses,” said U.S. Attorney Scott. “Today’s sentence reflects the serious nature of her conduct and serves as a warning to others. The U.S. Attorney’s Office will continue to work with the U.S. Department of the Treasury Inspector General for Tax Administration and IRS Criminal Investigation to investigate and bring to justice those who would carry out a tax fraud scheme.”
“The Treasury Inspector General for Tax Administration will aggressively pursue Internal Revenue Service employees who endeavor to corrupt our Nation’s tax system,” said J. Russell George, Treasury Inspector General for Tax Administration. “Identity theft is a nationwide problem that disrupts the lives of its victims. When an IRS employee uses their internal knowledge of the IRS to commit tax fraud, it jeopardizes taxpayer trust in our Nation’s tax system.”
“The IRS along with TIGTA uses all its investigative tools to uncover fraud when committed by the public or in this case an IRS employee,” said Kareem Carter, Special Agent in Charge of the Oakland Field Office, IRS-CI. “Heredia’s fraud scheme harmed the United States Government and members of the local community. Today’s sentencing should send a positive message to the American taxpayers that IRS employees are held to a high standard when working in a public position in order to safeguard and instill trust in the U.S. tax system.”
This case was the product of an investigation by the U.S. Department of the Treasury Inspector General for Tax Administration and IRS Criminal Investigation. Assistant U.S. Attorneys Laura D. Withers and Vincente A. Tennerelli prosecuted the case.
Butte County Resident Pleads Guilty in $35M Ponzi SchemeRead the Press Release
SACRAMENTO, Calif. — Kenneth Winton, 67, of Oroville, pleaded guilty today to conspiracy to commit wire fraud in relation to a $35 million Ponzi scheme, U.S. Attorney McGregor W. Scott announced.
The indictment in the related case, United States v. Piercey, 2:20-cr-211 TLN, charges Matthew Piercey, 44, of Palo Cedro, with wire fraud, mail fraud, money laundering, and witness tampering.
According to court documents, between July 2015 and August 2020, Piercey carried out an investment fraud scheme that raised a total of approximately $35 million in investor funds. Piercey used investment companies Family Wealth Legacy and Zolla to solicit funds from investors using a variety of false and misleading statements, including about trading algorithms, the success of the companies’ investment strategies, and the liquidity of investments. For example, Piercey solicited investor money for an “Upvesting Fund” that allegedly was an algorithmic trading fund with a history of success, but he admitted privately to an associate that there was no Upvesting Fund.
Piercey first recruited Winton as an investor, then to assist with raising investor funds, and ultimately to take on management responsibilities at Zolla. From 2018 to 2020, Winton conspired with Piercey and made various false and misleading statements to investors, including about the success of Zolla’s investment strategies, the reasons for delays in payment to investors, and the current location, value, and nature of Zolla investments. The part of the scheme attributable to Winton caused investors to make investments or forego their right to withdraw investments totaling approximately $11.6 million.
Piercey and Winton used some investor money to make payments to other investors in a “Ponzi scheme.” In total, they paid back approximately $8.8 million to investors. They used other investor money for various business and personal expenses, including two residential properties and a houseboat. Few, if any, liquid assets remain to repay investors.
According to court documents, Piercey also tampered with multiple witnesses by discouraging them from responding to grand jury subpoenas related to the investigation.
Winton is out of custody pending his sentencing. Piercey is currently in custody. When law enforcement agents attempted to arrest Piercey, he fled from arrest by leading agents on a vehicle chase through residential neighborhoods and then onto the highway before abandoning his vehicle and entering Lake Shasta with an underwater submersible device.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Christopher S. Hales and Miriam R. Hinman are prosecuting the case.
Winton is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on Feb. 18, 2021. Winton faces a maximum statutory penalty of 20 years in prison and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater. If convicted, Piercey faces a maximum statutory penalty of 20 years in prison and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater, for each wire fraud and mail fraud count; 20 years in prison and a fine of up to $250,000 for each witness tampering count; and 20 years in prison and a fine of up to $500,000 or twice the value of the property involved, whichever is greater, for each money laundering count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges against Piercey are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
U.S. Department of Justice Recognizes U.S. Attorney’s Office for the Eastern District of California for Its Work with Project Safe NeighborhoodsRead the Press Release
SACRAMENTO, Calif. – The Department of Justice recognized the Solano County District Attorney’s Office, located in the Eastern District of California, for being an Outstanding Local Prosecutor’s Office in support of the Project Safe Neighborhoods (PSN) Initiative and its work with the U.S. Attorney’s Office.
“Throughout 2018 and 2019, the Solano County District Attorney’s Office demonstrated outstanding professionalism, support for U.S. Attorney’s Office initiatives, and ongoing cooperation with federal and state law enforcement partners to promote greater public safety.” U.S. Attorney McGregor W. Scott said. “The Solano County District Attorney’s Office has demonstrated the exemplary initiative and collaboration needed to make PSN successful in keeping our communities safe, meeting bi-weekly with our office to discuss potential cases for federal prosecution.”
“This award exemplifies the true partnership between our office and the Office of the United States Attorney, Eastern District of California,” said District Attorney Abrams. “Project Safe Neighborhoods has truly been a success under U.S. Attorney McGregor Scott’s leadership. We jointly share an unwavering commitment to getting illegal guns off the street and keeping our community safe, and I am honored to be working in collaboration with the U.S. Attorney’s Office regarding this effort.”
The Solano County District Attorney’s Office was recognized for the outstanding work in support of the PSN program. Since the start of the PSN program in Solano County in July 2018, the Solano County District Attorney’s Office has presented more than 400 cases for potential federal adoption, with 46 cases selected for federal prosecution targeting some of the most violent and recidivist criminals in Solano County. They facilitated a meeting to connect AUSAs with over 30 local gang investigators, improving collaboration and coordination between federal, state, and local investigating agencies, and overall intelligence sharing.
In October and November 2018 a multi-agency effort spearheaded by the Solano County District Attorney’s Office to identify the highest-risk offenders on probation, parole, and Post-Release Community Supervision located dozens of fugitives in Solano County in advance of Operation Triple Beam, a December 2018 exercise by the U.S. Marshals Service.
The Solano County District Attorney’s Office worked with the U.S. Attorney’s Office to facilitate federal adoption of cases that originated with state charges. These cases included: (1) a March 2018 attempted homicide, in which two co-conspirators pipe bombed a residential home with a family of five inside [United States v. Capenhurst, et al., 2:18-cr-055-KJM]; (2) a series of five convenience store robberies, during which the lead defendant brandished a firearm and threatened the counter clerks at gunpoint [United States v. Young, et al., 2:18-cr-142-JAM]; and (3) five additional felon-in-possession of a firearm cases, including one defendant who was sentenced as an armed career criminal.
Given its position at the southwest boundary of the Eastern District of California, numerous cases originating in, or with ties to, Solano County, overlap with criminal conduct that could also be charged in surrounding counties (Napa, Contra Costa, Alameda, and/or Sacramento) or in the Northern District of California. In at least two significant cases, the Solano County District Attorney’s Office agreed to dismiss local charges in lieu of federal prosecution in cases with multijurisdictional criminality. These included: (1) the five Hobbs Act robberies charged in United States v. Young, et al., 2:18-cr-142-JAM, which spanned from Alameda County, to Solano County, to Sacramento County; and (2) a high-volume drug-trafficking case stretching from Alameda County to Solano County, in which detectives seized over 4 pounds of powder cocaine and over 3.5 pounds of cocaine base (crack cocaine) from the defendant’s home in Vallejo [United States v. McCutcheon, 2:18-cr-218-TLN]. The defendant in that case will be sentenced as a career offender.
The examples above are representative of the exemplary work the Solano County District Attorney’s Office has performed as part of PSN to decrease violent crime throughout Solano County and Northern California.
Revitalized in 2017, PSN is a critical piece of the Department’s crime reduction efforts. PSN has focused on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
Stockton Man Pleads Guilty to Using Brother’s Identity to Steal Social Security BenefitsRead the Press Release
SACRAMENTO, Calif. — William Frances Stevens, 53, of Stockton, pleaded guilty today to theft of government property and aggravated identity theft and has agreed to pay full restitution, U.S. Attorney McGregor W. Scott announced.
According to court documents, in 2015, Stevens applied for Supplemental Security Income (SSI) disability benefits in California under his true identity. The Social Security Administration (SSA) ultimately denied his application because it did not find him disabled. In 2017, Stevens then stole his brother’s identity and used it unlawfully to apply for SSI benefits again. In his application, Stevens used a fraudulent California driver’s license that he obtained using his brother’s name, date of birth, and Social Security number.
In July 2017, SSA approved Stevens’ fraudulent SSI application and began paying him SSI benefits. During a portion of the time Stevens was receiving benefits, he was incarcerated for unrelated offenses. Stevens listed his wife as a representative payee so she could continue to collect the stolen benefits on his behalf while he was incarcerated. In general, jail inmates are not eligible to collect SSI benefits while they are incarcerated.
According to the plea agreement, SSA paid Stevens over $28,000 in SSI benefits between 2017 and 2019. Additionally, because Stevens was approved for SSI, he qualified for Medi-Cal benefits that were subsidized through federal funds paid to the California Department of Health Care Services. During this same timeframe, Stevens received over $38,000 in Medi-Cal benefits, in the form of medical coverage and services, to which Stevens was not entitled. Stevens knew he was not entitled to any of these benefits because, at a minimum, he had used a fraudulent identity to obtain them.
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.
Stevens is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on Feb. 22, 2021. Stevens faces a maximum statutory penalty of 10 years in prison and a fine of up to $250,000 for theft of government property. The penalty for aggravated identity theft is a mandatory two‑year prison term consecutive to any other sentence and a fine of up to $250,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Bay Area Man Pleads Guilty to Central Valley-Based Marijuana Trafficking ConspiracyRead the Press Release
FRESNO, Calif. — Tien Van Phan, 56, of the San Jose area, pleaded guilty today to conspiring to distribute and possess with intent to distribute marijuana that was shipped from Fresno to Kansas City, Missouri, U.S. Attorney McGregor W. Scott announced.
According to court documents, agents intercepted calls between co-defendants Elias Zambrano Jr., of Fresno; Tan Minh Vo, of San Jose; Halen Steven Patrick Frazier, of Kingsville, Missouri; and David Agustus McGowan, of Kansas City, Missouri, regarding the coordination of the shipment of approximately 92 pounds of marijuana to Frazier in Kansas City. On Nov. 9, 2018, law enforcement agents saw Phan load two suitcases into Frazier’s vehicle in Kansas City. After conducting a traffic stop, 92 pounds of marijuana was seized from Frazier’s vehicle.
Phan is scheduled for sentencing on Feb. 22, 2021. He faces a maximum statutory penalty of five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Frazier previously entered a guilty plea to the drug conspiracy and was sentenced to two years and three months in prison. Patrick Maldonado, of Madera, and Zambrano, who also face charges relating to the cocaine and firearms, along with Vo, are scheduled for a status conference in federal court in Fresno on Dec. 14. As to these defendants, the charges are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Central Valley High Intensity Drug Trafficking Area Task Force consisting of agents from the Drug Enforcement Administration, Homeland Security Investigations, the Federal Bureau of Investigation, the Sheriff’s Offices of Tulare, Kings, and Fresno Counties, the Fresno Police Department, the Arizona Department of Health, and the Kansas City Police Department. Assistant U.S. Attorney Karen Escobar is prosecuting the case.