Eastern District of California

FRESNO, Calif. — A Porterville man was arrested today after a federal grand jury returned a five‑count indictment on July 9, charging him with mail fraud and introducing a misbranded drug into interstate commerce with the intent to defraud, U.S. Attorney McGregor W. Scott announced.

According to the indictment, Huu Tieu, 58, is the president and chief executive officer of Golden Sunrise Pharmaceutical Inc. and Golden Sunrise Nutraceutical Inc., both headquartered in Porterville. From at least April 25 to July 9, through his companies, Tieu marketed and sold a package of herbal mixtures dubbed the “Emergency D-Virus Plan of Care,” which he claimed treated COVID-19. In materials posted on the companies’ websites and Facebook pages and in emails to the media, Tieu made a series of false statements about the Emergency D-Virus Plan of Care, including:

• That one of the mixtures in the product, called “ImunStem,” was the first dietary supplement in the United States to be FDA approved as a prescription medicine to treat serious or life-threatening conditions and had specifically been approved to treat COVID‑19. In reality, the FDA has never approved any Golden Sunrise product for any intended use and, on at least two occasions, has told Tieu in writing that ImunStem is not FDA approved; and
• That ImunStem was designated as a Regenerative Medicine Advanced Therapy (RMAT) under the 21st Century Cures Act. In reality, the FDA never granted an RMAT designation to any Golden Sunrise product, denied Tieu’s request for an RMAT designation for ImunStem in 2017, and reiterated that denial to Tieu in writing in 2019.

According to the indictment, Tieu made these misrepresentations for the purpose of soliciting customers, both patients and health care professionals, to acquire Golden Sunrise products so that he could submit reimbursement claims to the patients’ insurers, including Medicare and Medi-Cal. Tieu dispensed his products to customers in the Porterville area and also shipped the products to other parts of California and the United States.

On May 8, an undercover investigator with the Tulare County District Attorney’s Office met with Tieu in person, telling him her mother was 68 and very sick with COVID-19. The investigator asked Tieu if she should take her mother to the hospital. Tieu responded, “No. You cannot go in there,” and instead, encouraged her to use Golden Sunrise products.

“The FDA is actively monitoring the marketplace for fraudulent products claiming to treat COVID-19. Americans expect and deserve treatments that are safe, effective and meet appropriate standards, and the agency will continue to bring to justice those who place profits above the public health during this pandemic,” said Special Agent in Charge Lisa L. Malinowski, FDA Office of Criminal Investigations Los Angeles Field Office. “We commend the efforts of our law enforcement partners in this investigation and today’s announcement should serve as a reminder that we will take appropriate action against those who jeopardize the health of Americans while taking advantage of a crisis.”

This case is the product of an investigation by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services Office of Inspector General, the U.S. Food and Drug Administration, the U.S. Postal Inspection Service, and the California Department of Health Care Services with assistance from the Tulare County District Attorney’s Office and the California Bureau of Medi-Cal Fraud and Elder Abuse. Assistant U.S. Attorneys Vincente Tennerelli and Alexandre Dempsey are prosecuting the case.

If convicted, Tieu faces a maximum statutory penalty of 20 years in prison and a $250,000 fine on the mail fraud counts and three years in prison and a $10,000 fine on the misbranding counts. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — The Internal Revenue Service Criminal Investigation division and the U.S. Attorney’s Office for the Eastern District of California reminded taxpayers of the July 15 filing and payment deadline and warned against an increase in tax and COVID-19 scams.

Due to COVID-19, the original filing deadline and tax payment due date for 2019 was postponed from April 15 to July 15. Taxpayers filing Form 1040 series returns must file Form 4868 by July 15 to obtain the automatic extension to Oct. 15.

“Although the extension provides additional time to file the tax return – it is not an extension to pay any taxes due,” said Kareem Carter, Special Agent in Charge of the IRS Criminal Investigation division in California. “For people facing hardships who cannot pay in full, including those affected by COVID-19, the IRS has several options available to help. The IRS encourages taxpayers to visit IRS.gov as soon as possible to explore these options and avoid accruing interest and penalties after the July 15 deadline.”

As the filing deadline approaches, taxpayers should beware of tax and COVID-19 related scams. “Criminals use the tax filing deadline as an opportunity to steal personal and financial information,” said U.S. Attorney McGregor W. Scott for the Eastern District of California. “Taxpayers should remain vigilant and know that the IRS will not initiate contact with them via phone, email or social media to request personal or financial information.”

In the last few months, the IRS Criminal Investigation division (CI) has continued to see a tremendous increase in a variety of Economic Impact Payment scams and other financial schemes. CI continues to work with its law enforcement partners to put a stop to these schemes and bring criminals to justice.

Taxpayers can report COVID-19 scams to the National Center for Disaster Fraud. Taxpayers can also report fraud or theft of their Economic Impact Payments to the Treasury Inspector General for Tax Administration (TIGTA). Unsolicited (phishing) emails that appear to be from the IRS should be forwarded to [email protected].

For the most up-to-date information about the tax filing deadline and IRS impersonation scams, taxpayers can visit IRS.gov. To verify the identity of an IRS Special Agent please contact [email protected].

SACRAMENTO, Calif. — The District Attorneys of Alameda, Sacramento, and San Diego counties together with the U.S. Attorney’s Office for the Eastern District of California launched an online outreach campaign to help victims of domestic violence and child exploitation and abuse during the COVID-19 pandemic.

The outreach campaign was created to combat unintended consequence of COVID-19 public health measures — an alarming rise in domestic violence with victims trapped at home with their abusers, and in child exploitation as more children are pushed online for longer periods of time with school and summer camp closures. The National Center of Missing and Exploited Children (NCMEC) runs the CyberTipline, a centralized, national reporting system for the online exploitation of children. In March 2019, NCMEC received 983,734 reports and in April 2019, NCMEC received approximately 1 million reports through its CyberTipline. In March 2020, NCMEC received over 2 million reports, 4.2 million reports in April 2020.

“Our shared goal in this campaign is to help children who are being exploited by online predators, and other child abuse and domestic violence victims who are isolated and at risk during this pandemic by using one of the only available means to reach them — technology,” said U.S. Attorney Scott. “Every time one of our posts is seen or shared, it’s a chance to save a life.”

The public awareness messages are visible on Facebook and other social media platforms with a new post made each day for two weeks, with the ad campaign continuing to run through July. The posts provide information for victims with resources, such as 24-hour hotlines and other services vital to reporting abuse. The posts also provide tips for concerned friends, relatives, and educators on how they can help victims of abuse. This outreach campaign has reached more than 142,000 people, and will continue to reach more people throughout July.

A Facebook Live panel on July 10 featuring U.S. Attorney Scott and the District Attorneys of Alameda, Sacramento, and San Diego counties will discuss the current challenges facing victims and survivors of domestic violence and child abuse, and will be moderated by Childhelp, a nonprofit organization aiding victims of child abuse.

FRESNO, Calif. — Francisco Alcantar-Miranda, aka Paquin, 31, of Mexico, was sentenced today to 10 years in prison for conspiring to manufacture, to distribute and to possess with intent to distribute methamphetamine, cocaine, heroin, and marijuana, U.S. Attorney McGregor W. Scott announced. U.S. District Judge Dale A. Drozd, who sentenced Alcantar, also ordered the forfeiture of a handgun and approximately $18,000 in cash.

On Feb. 2, Alcantar pleaded guilty and acknowledged that he assisted in manufacturing methamphetamine and storing large quantities of other drugs at an unoccupied residence in Madera. At the end of January 2019, detectives of the Madera County Sheriff’s Office Narcotic Enforcement Team (MADNET) executed a search warrant at the residence and found Alcantar, along with two other men, Oscar Rene Marrot-Garcia, 27, of Chowchilla, and Jose Monge-Ponce, 31, of Mexico. The detectives also found over 10 pounds of methamphetamine, 1 pound of heroin, 1 pound of cocaine, and 25 pounds of marijuana.

Marrot-Garcia pleaded guilty on June 12, and is scheduled for sentencing on Sept. 4. He faces a mandatory minimum statutory penalty of 10 years in prison and a maximum statutory penalty of life in prison, along with a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

Charges are pending against Monge-Ponce, and he is scheduled for a jury trial on Oct. 26. The charges are only allegations; Monge-Ponce is presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case is the product of an investigation by MADNET detectives and agents of the High Intensity Drug Trafficking Area (HIDTA) High Impact Investigation Team (HIIT), consisting of agents of Homeland Security Investigations; California Department of Justice; California Highway Patrol; Fresno, Tulare, and King Counties Sheriffs’ Offices; and Fresno Police Department. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.

FRESNO, Calif. — U.S. District Judge Dale A. Drozd sentenced a Turlock man today to two years and three months in prison to be followed by three years of supervised release for purposefully striking a Stanislaus County Sheriff’s helicopter with the beam of a powerful laser, U.S. Attorney McGregor W. Scott announced.

In March 2018, Roger Shane John, 34, pleaded guilty. According to court documents, on the evening of Oct. 22, 2017, John struck a Stanislaus County Sheriff’s helicopter, Air 101, five to six times with a powerful green laser, causing visual interference of both the pilot and tactical flight officer and disrupting an air support response to a domestic violence call. The laser strikes occurred within the Federal Aviation Administration‑designated laser-free zone of the Modesto Airport.

According to the guilty plea, John knew that shining a laser at an aircraft is illegal. An examination of John’s laser revealed that it emitted 85 milliwatts (mW) of power and is 17 times more powerful than what is legally permissible for handheld laser devices. The Food and Drug Administration, which regulates handheld laser devices, has found that such power emission is dangerous and can cause either temporary visual effects or an eye injury.

This case was the product of an investigation by the Federal Bureau of Investigation, Stanislaus County Sheriff’s Department, and Modesto Police Department. Assistant U.S. Attorney Karen Escobar prosecuted the case.

SACRAMENTO, Calif. — Christopher Ramonaguilar Lawrence, 25, of Chico, was sentenced today to 14 years in prison for sex trafficking of a minor and distribution of methamphetamine to a person under 21, U.S. Attorney McGregor W. Scott announced.

According to court documents and evidence presented at trial, in July and August 2017, Lawrence recruited a then 17-year-old girl to engage in prostitution for his financial benefit. Lawrence used social media to communicate with the victim, and on two occasions, he lured the victim to Chico motel rooms where he gave the victim methamphetamine, explained the methods of his prostitution business, including how to detect and evade law enforcement, and continued to recruit the victim to work for him as a prostitute. After a seven-day trial, a federal jury found Lawrence guilty on Aug. 29, 2019.

“Sex trafficking can occur in any community, and it is an exploitive, abusive crime that treats human beings as mere commodities to be bought and sold,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “Our agents work closely with our local, state, and federal partners to identify individuals who are trafficking minors and adults for financial gain to disrupt this activity in the communities we serve. Today, as a result of our partnership with the Chico Police Department and Butte County Sheriff’s Office, an exploiter who entrapped his victim in a cycle of abuse and addiction will pay the penalty for his crimes, and those he exploited can take another step towards healing.”

This case was the product of an investigation by the Federal Bureau of Investigation, the Chico Police Department, and the Butte County Sheriff’s Office. Assistant U.S. Attorneys Brian A. Fogerty and Quinn Hochhalter prosecuted the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.

FRESNO, Calif. — A federal grand jury returned an indictment today against a Madera County man for a marijuana cultivation operation that consisted of over 1,000 marijuana plants grown in the Carter Creek watershed drainage network in the Sierra National Forest in Madera County, U.S. Attorney McGregor W. Scott announced.

The five-count indictment charged Carson Shane Wilhite, 41, of Ahwahnee, with conspiring to manufacture, distribute, and possess with intent to distribute marijuana, manufacturing marijuana, damaging public lands and natural resources, possessing firearms in furtherance of drug trafficking, and being a methamphetamine user in possession of firearms. According to the indictment, Wilhite was involved in the marijuana cultivation operation and, in furtherance of his drug trafficking activities, he possessed 12 firearms while using methamphetamine. The cultivation operation is alleged to have caused significant damage to the environment.

This case is the product of an investigation by the U.S. Forest Service, California Department of Fish and Wildlife, and the Madera County Sheriff’s Office. Integral Ecology Research Center, a nonprofit organization dedicated to the research and conservation of wildlife and their ecosystems, analyzed and documented the environmental damage. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.

If convicted of the drug conspiracy and manufacturing offense, Wilhite faces a mandatory minimum statutory penalty of 10 years and a maximum penalty of life in prison, as well as a $10 million fine. The environmental charge and the charge of being a drug user in possession of firearms carry a maximum statutory penalty of 10 years in prison and a fine of up to $250,000. The charge of possessing a firearm in connection with drug trafficking carries a mandatory minimum prison term of five years and a maximum term of life in prison and a $250,000 fine. The defendant faces a mandatory consecutive prison term of five years. In addition, he may be liable for restitution to the U.S. Forest Service for damage sustained to the land and natural resources as a result of the cultivation activities. 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.

FRESNO, Calif. — Two Soledad men were sentenced this week for conspiracy to rob the Chase Bank in Modesto, U.S. Attorney McGregor W. Scott announced. Robert Zavala, 24, was sentenced today to five years in prison, and Moises Misael Garcia DeLeon, 27, was sentenced to on Monday to four years and nine months in prison.

According to court documents, on Nov. 16, 2018, a deputy sheriff noticed a Nissan Altima that had been reported stolen from Salinas parked in a parking lot at an apartment complex in Modesto. Officers set up surveillance on the stolen Nissan and watched four cars carrying the five co-conspirators leave the apartment complex.

The cars traveled close to each other to a shopping area in Modesto that contained a Chase Bank. Zavala, who drove one of the cars, drove back and forth near the Chase Bank on surveillance.

The stolen Nissan, driven by co-defendant Victor Bravo, parked in a loading area behind the shopping center next to a car driven by Enrique Lopez. Lopez got out of his car and started loading items into the stolen Nissan. The stolen Nissan then left the loading area, drove through an alley, and parked in a parking lot near Chase Bank. Officers stopped the car and detained all four occupants. Inside the stolen Nissan, officers found two assault rifle-style firearms, a handgun, a revolver, masks, gloves, and a large duffel bag. DeLeon was sitting in the front passenger seat with an assault rifle next to him.

Three co-defendants have been sentenced. On June 2, Bravo and Lopez were each sentenced to five years in prison, and on June 15, Cesar Lemus was sentenced to four years and seven months in prison.

This case is the product of an investigation by the Federal Bureau of Investigation, the Stanislaus County Sheriff’s Department, the Modesto Police Department, the Monterey County Sheriff’s Department, San Mateo County Sheriff’s Department, Tulare County Sheriff’s Department, and Fresno County Sheriff’s Department. Assistant U.S. Attorney Ross Pearson is prosecuting 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, Calif. — Five individuals were indicted Thursday for the burglary of a Vacaville gun shop, U.S. Attorney McGregor W. Scott announced.

According to court documents, on June 1, police responded to reports of suspicious activity at Guns, Fishing and Other Stuff, a two-story gun and outdoor recreation store in Vacaville. Guns, Fishing and Other Stuff is a federally licensed firearms dealer. When officers responded, four vehicles fled the scene. After a high-speed chase on Interstate 80 during which vehicles reached over 100 miles per hour, one vehicle, a rented minivan, was stopped, and its five passengers were arrested after a foot pursuit. In total, the gun store reported that over 70 firearms had been stolen.

According to the criminal complaint, inside the minivan were bolt cutters, a power saw, and 13 handguns with price tags from Guns, Fishing and Other Stuff still attached. Donte Marcel Anderson, 31, of Antioch; Desteny Estrella Leilani Salazar, 22, of San Francisco; Donley Thompson, 27, of Pinole; Tracy Whitfield, 31, of Pittsburg; and Adrian Oscar Duran, 23, of San Francisco, were arrested. They are charged with possession of a stolen firearm and burglary of a federally licensed firearms dealer.

This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, Vacaville Police Department, Fairfield Police Department, Antioch Police Department, Vallejo Police Department, and California Department of Justice – Bureau of Firearms. Assistant U.S. Attorneys Justin L. Lee and Brian A. Fogerty are prosecuting the case.

If convicted, the defendants face a maximum statutory penalty of 10 years in prison and a fine of up to $250,000 for both counts. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

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, Calif. — A federal grand jury returned a three-count indictment today against a Honolulu woman, charging her with conspiracy to distribute heroin, and two counts of possessing heroin with intent to distribute heroin, U.S. Attorney McGregor W. Scott announced.

According to court documents, between Oct. 24, 2019, and Nov. 16, 2019, Arlene‑Alena Keko Olani, 29, conspired with an inmate at High Desert State Prison to fly from Honolulu to Sacramento, rent a car, obtain heroin, and then try to surreptitiously pass the drugs to the inmate during a contact visit at the prison.

Investigators learned of the plot by listening to recorded prison calls and decoding the calls between Keko Olani and the inmate. When Keko Olani flew from Honolulu and landed in Sacramento on Nov. 15, investigators spotted her in the airport and identified the silver Toyota Camry she rented to carry out the smuggling operation. On Nov. 16, 2019, Keko Olani arrived at High Desert State Prison in Susanville. Investigators seized heroin she had hidden on her person. They also discovered additional heroin in her rental car parked in the prison parking lot.  

This case is the product of an investigation by the Federal Bureau of Investigation, the California Department of Corrections and Rehabilitation (CDCR), Lassen County Sheriff’s Office, Susanville Police Department, Lassen County District Attorney’s Office, and Sacramento County Sheriff’s Office. Assistant U.S. Attorney Jason Hitt is prosecuting the case.

Keko Olani made her initial appearance on March 11, and was ordered released on bond.

If convicted, Keko Olani faces a maximum statutory penalty of 20 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.

SACRAMENTO, Calif. — A Salt Lake City man pleaded guilty Thursday to a conspiracy to commit bank fraud that attempted to defraud financial institutions of more than $1.5 million, U.S. Attorney McGregor W. Scott announced.

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 pay back customers for returns, reimbursements, and erroneous charges.

The defendants committed this scheme by stealing or purchasing point-of-sale (POS) terminals used by businesses to process bankcard transactions. The defendants programmed each terminal to make it appear as if it was authorized by a particular 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’ banks to transfer funds to the defendants’ accounts. The defendants then drained the stolen funds from the accounts. The indictment alleges that this scheme caused at least $3.5 million in intended victim losses.

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 Aug. 6. Charges are pending against Ward. The charges against him are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.

Toilolo is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on Sept. 17. Toilolo faces a maximum statutory penalty of 30 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — U.S. District Judge Dale A. Drozd sentenced a Fresno man today to one year and one day in prison for credit card fraud and possession of stolen mail, U.S. Attorney McGregor W. Scott announced.

According to court records, from Dec. 5, 2018, through March 28, 2019, Justin Deger, 28, broke into mail boxes at various Fresno area residences and stole over 2,000 pieces of mail, including checks and 26 credit cards. He subsequently activated some of those credit cards and made unauthorized purchases and cash withdrawals at retailers and casinos totaling thousands of dollars. Deger was also ordered to pay full restitution to the victims and forfeit the proceeds of his crimes.

This case was the product of an investigation by the U.S. Postal Inspection Service and the Fresno Police Department. Assistant U.S. Attorneys Vincente Tennerelli and Joseph Barton prosecuted the case.

FRESNO, Calif. — On March 12, a federal grand jury brought a five-count indictment against an assistant manager of a Fresno-area retail store, charging her with bank fraud and use of unauthorized credit cards, U.S. Attorney McGregor W. Scott announced.

According to court documents, Alena Nicole George, 42, obtained the personally identifiable information (PII) of individuals with names similar to her own name, and obtained credit cards in those individuals’ names. For one such credit card, George made at least $100,000 in fraudulent purchases and cash advances. She was arrested today, and is scheduled to be arraigned on Thursday.

This case is the product of an investigation by the Federal Bureau of Investigation and U.S. Postal Inspection Service. Assistant U.S. Attorneys Vincente Tennerelli and Joseph Barton are prosecuting the case.

If convicted, George faces a maximum penalty of 30 years in prison and a $1 million fine for bank fraud, and a maximum penalty of 10 years in prison and a $250,000 fine for the unauthorized use of credit cards. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Jeremy Ray Warren, 26, of Vallejo, was sentenced on Monday by U.S. District Judge Kimberly J. Mueller to 17 years in prison for conspiring to engage in sex trafficking of a child, U.S. Attorney McGregor W. Scott announced.

According to court documents, between Feb. 1, 2012, and April 18, 2013, Warren trafficked two minor victims, knowing that force, threats of force, and coercion would be used to cause the minors to engage in prostitution. Between April 23 and April 25, 2013, Warren conspired with Alyssa Tegan Brulez, 26, of Vacaville, to traffic a third minor victim, and to benefit financially from commercial sex acts by the third minor victim.

This case is the product of an investigation by the Federal Bureau of Investigation, the California Highway Patrol, the Vacaville Police Department and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Michael M. Beckwith is prosecuting the case.

“Warren preyed on some of the weakest members of our community – children who lacked strong familial support or were suffering from other instability,” said U.S. Attorney Scott. “He exploited these weaknesses for his personal advantage and gain. The damage he caused can never be undone. The U.S. Attorney’s Office is committed to prosecuting sex traffickers, protecting children, and vindicating victims.”

“No person should ever be coerced, defrauded or sold as a mere commodity to whomever is willing to pay for illicit services,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “The FBI works with our law enforcement and community partners to ensure traffickers face justice for their crimes and their victims have an opportunity to escape the cycle of abuse. This sentence sends a clear message that exploitation will not be tolerated in the communities we serve.”

Brulez is scheduled to be sentenced by Judge Mueller on July 20.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.

FRESNO, Calif. — On June 18, a federal grand jury brought a 19-count indictment against Rogelio Benavides, 34, charging him with being a felon in possession of a firearm, bank fraud, use and possession of unauthorized credit cards, aggravated identity theft, and possession of stolen mail. Benavides was arrested on the indictment today, U.S. Attorney McGregor W. Scott announced.

According to the indictment unsealed today, between November 2018 and September 2019, Benavides obtained and received, without authorization, hundreds of pieces of stolen mail that included checks, checkbooks, and personally identifiable information (PII) belonging to other individuals and businesses. He then altered and forged checks belonging to other individuals or businesses and either cashed the checks or deposited the checks into his own bank accounts. He also used the PII belonging to the other individuals to apply for and receive unauthorized credit cards, which he used to make purchases and cash advances He used the PII belonging to the other individuals and businesses to access their bank accounts and make unauthorized payments for the unauthorized credit cards and for credit cards, loans, and insurance policies in Benavides’ own name and the names of his associates. Benavides’ scheme caused at least $95,000 in fraudulent charges to be made to other individuals’ bank accounts and credit cards.

This case is 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.

If convicted, Benavides faces a maximum statutory penalty of 10 years in prison and a fine of up to $250,000 for being a felon in possession of a firearm, a maximum statutory penalty of 30 years in prison and a fine of up to $1 million for bank fraud, a maximum statutory penalty of 10 years in prison and a fine of up to $250,000 for the counts of unauthorized use and possession of access devices, a mandatory two-year sentence consecutive to other counts for aggravated identity theft, and up to five years in prison and a fine of up to $250,000 for possession of stolen mail. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — A federal grand jury returned an indictment today against two Stockton residents, charging them with sexual exploitation of a child, U.S. Attorney McGregor W. Scott announced.

According to court documents, between April and June 2020, Jonathan Michael Thornton, 36, and Katherine Leann Herrera, 30, produced images depicting a victim under the age of 10 engaged in sexually explicit conduct. Thornton then distributed the images on a darknet website. Thornton operates a photography business called Thornton Photography. The indictment also charges Thornton with distribution of child pornography.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Mira Chernick is prosecuting the case.

If convicted, Thornton and Herrera each face a mandatory minimum penalty of 15 years in prison, a maximum statutory penalty of 30 years in prison, and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information.

SACRAMENTO, Calif. — A federal grand jury returned an indictment today against Timothy Mackey, 39, of South Lake Tahoe, charging him with distribution of child pornography, U.S. Attorney McGregor W. Scott announced.

According to court documents, between Feb. 5 and Feb. 26, Mackey distributed visual depictions of children engaging in sexually explicit activity. Mackey worked as a snowboarding instructor and had applied to become a foster parent prior to his arrest.

Anyone who has information related to this case or who believes their child may be a victim can contact the FBI at [email protected]. 

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Mira Chernick is prosecuting the case.

If convicted, Mackey faces a mandatory minimum sentence of five years in prison, a maximum statutory penalty of 20 years in prison, and a fine of up to $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

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.

SACRAMENTO, Calif. — A federal grand jury returned an indictment today against Raymond Rodriguez, 72, and Rigoberto Guerra-Salcedo, 54, charging them with conspiracy to distribute methamphetamine, distribution of methamphetamine, possession with intent to distribute methamphetamine, and possessing a firearm while being an alien unlawfully in the United States, U.S. Attorney McGregor W. Scott announced.

According to court documents, Rodriguez sold kilogram quantities of methamphetamine to a confidential informant working for law enforcement in 2019 and 2020. A covert investigation determined that Guerra-Salcedo was supplying methamphetamine to Rodriguez. During the course of the investigation, law enforcement officers followed Guerra-Salcedo as he delivered wholesale amounts of methamphetamine to Rodriguez.

This case is the product of an investigation by the Tri-County Drug Enforcement Team (TRIDENT), the Drug Enforcement Administration, and Homeland Security Investigations. Assistant U.S. Attorney Justin Lee is prosecuting the case.

If convicted, Rodriguez and Guerra-Salcedo 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.

FRESNO, Calif. — A federal grand jury returned a two-count indictment today against a Fresno man, charging him with possessing methamphetamine with the intent to distribute it and possessing firearms in furtherance of a drug trafficking crime, U.S. Attorney McGregor W. Scott announced.

According to court documents, Jesus Lopez-Zepeda, 27, negotiated to sell 60 kilograms of methamphetamine an undercover officer for $240,000. On March 12, agents seized approximately 137 pounds of methamphetamine from Lopez-Zepeda’s residence, as well as a firearm and three rifles.

This case is the product of an investigation by the High Impact Investigation Team (HIIT), a High Intensity Drug Trafficking Area Initiative (HIDTA), composed of personnel from the California Department of Justice, Homeland Security Investigations, Fresno Police Department, Fresno County Sheriff’s Office, Tulare County Sheriff’s Office, Kings County Sheriff’s Office, Fresno County District Attorney’s Office, Federal Bureau of Investigation, and the California Highway Patrol. Assistant U.S. Attorney Kathleen A. Servatius is prosecuting the case.

If convicted, Lopez-Zepeda faces a maximum statutory penalty of life in prison and a $10 million fine for the drug offense and a mandatory five year consecutive term on the firearms 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.

SACRAMENTO, Calif. — A grand jury brought a five-count indictment today against a Granite Bay resident, charging him with conspiracy to transport marijuana and concentrated cannabis oil in his Learjet, U.S. Attorney McGregor W. Scott announced.

Manish Patel, 33, is an attorney licensed in New Jersey and New York. According to court documents, between Feb. 27, 2017, and June 13, 2019, Patel allegedly conspired to fly marijuana and concentrated cannabis oil (tetrahydrocannabinol or TCH) from California across the country in his private airplane.

In May and June 2019, search warrants were executed at three locations that resulted in the seizure of approximately 1,400 pounds of marijuana contraband and $400,000 in cash. One of the locations searched was a warehouse being used as a laboratory to manufacture concentrated cannabis, where over 980 pounds of processed marijuana and over 50 pounds of concentrated cannabis were seized.

According to the criminal complaint, in January 2017, Patel is alleged to have paid $345,000 in cash for the Learjet. In August 2018, agents stopped Patel and several associates at an executive airport in Albuquerque, New Mexico and seized $80,000 in cash. When investigators searched the Learjet again in June 2019, it contained over 180 pounds of dried marijuana and over 18 pounds of THC. The flight plan for the Learjet showed that it was scheduled to fly to Colorado, then Illinois, and then New Jersey.

This case is the product of an investigation by the Drug Enforcement Administration, the El Dorado Sheriff’s Office, the El Dorado District Attorney’s Office, the Placer County Sheriff’s Office, and the Placer County District Attorney’s Office. Assistant U.S. Attorneys Kevin Khasigian and Vincenza Rabenn are prosecuting the case.

If convicted, Patel faces a mandatory minimum sentence of five years in prison and a maximum of up to 40 years in prison and a fine up to $5 million for the conspiracy to distribute marijuana and THC and possession with intent to distribute marijuana charges. He faces a maximum statutory penalty of 20 years in prison and a fine of up to $1 million for possession with intent to distribute THC. 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.

FRESNO, Calif. — Tommie Thomas, 37, of Bakersfield, was sentenced by U.S. District Judge Dale A. Drozd on Tuesday to 20 years and six months in prison for distribution of methamphetamine, U.S. Attorney McGregor W. Scott announced.

According to court documents, on Dec. 14, 2017, after a 10-month investigation, more than 35 members and associates of the West Side Crips, a local criminal street gang, were arrested on federal and state charges including burglary, illegal gun possession, drug sales, and murder. On April 4, 2019, a second superseding indictment charged Thomas, a West Side Crip member also known as “Tapp,” and co-conspirators with drug trafficking offenses. Since the December 2017 arrests, all defendants in federal custody have either been convicted of or have pleaded guilty to charged offenses.

This case is the product of an investigation by the Federal Bureau of Investigation, the California Department of Justice, the Bakersfield Police Department and the Drug Enforcement Administration. Assistant U.S. Attorneys Angela Scott and Thomas Newman are prosecuting the case.

This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.

SACRAMENTO, Calif. — A Sacramento man was sentenced today by U.S. District Judge Kimberly J. Mueller to eight months in prison for impersonating an FBI agent, U.S. Attorney McGregor W. Scott announced.

“By pretending to be a FBI agent, Mr. Arushanov boldly exploited the trusted relationship the FBI has with the communities we serve,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “All FBI agents carry badges and credentials to aid identification and a call can be placed to the FBI or their local law enforcement agency to verify a claim that a person is a FBI agent on official business. Most importantly, please call 911 immediately if you feel you are in danger.”

According to court documents, on Feb. 11, Daniel Arushanov, 27, entered a Red Roof Inn in Sacramento and identified himself to the hotel clerk as a special agent with the FBI. Arushanov claimed to be involved in an investigation into underage prostitution and demanded to see a guest list for the hotel. When asked to show his badge, Arushanov refused and instead told a hotel employee to call the FBI. Arushanov left after the hotel employee called the FBI to report the incident. One of the hotel employees later identified Arushanov as the individual who posed as an FBI agent. Arushanov was arrested for impersonating a peace officer.

This case was the product of an investigation by the Federal Bureau of Investigation and the Sacramento County Sheriff’s Office. Assistant U.S. Attorney Shea J. Kenny prosecuted the case.

SACRAMENTO, Calif. — Following three and a half years of extradition litigation before courts in the United Kingdom, a former Sacramento resident was arraigned today in the Eastern District of California, U.S. Attorney McGregor W. Scott announced.

On June 12, 2020, Brian Arthur Dempsey, 48, was extradited from the United Kingdom to the United States to stand trial on charges that he made false statements to an agent of the Federal Bureau of Investigation concerning his travel to Syria. He was first arrested in the United Kingdom on Jan. 18, 2017, and has been in custody since that date.

On June 23, 2016, a grand jury, sitting in the Eastern District of California, returned an indictment charging Dempsey with a single count of making false statements in a matter involving an international terrorism investigation. The indictment alleges that on or about Aug. 22, 2013, during an interview with an FBI agent at the Fiumicino International Airport in Rome, Italy, Dempsey did knowingly and willfully make and cause to be made materially false, fictitious, and fraudulent statements and representations in a matter involving international terrorism. The false statements were related to the nature of his travel to Syria in July 2013.

This case is the product of an investigation by the FBI. The Department of Justice acknowledges and expresses its appreciation of the significant assistance provided by the UK authorities. The Office of International Affairs of the Department of Justice’s Criminal Division provided significant support in securing and coordinating Dempsey’s arrest and extradition. Assistant U.S. Attorney Heiko Coppola is prosecuting the case.

If convicted, Dempsey faces a maximum statutory penalty of eight 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.

FRESNO, Calif. — Majed Bashir Akroush, aka Magic Mike, 52, of Bakersfield, was sentenced today to two years and nine months in prison for conspiring to structure over $700,000 in cash withdrawals from four different bank accounts associated with his internet businesses that sold synthetic marijuana, U.S. Attorney McGregor W. Scott announced.

His sentencing follows his guilty plea earlier this year. According to court documents, Akroush structured cash withdrawals over a three-year period in amounts just under $10,000 in order to evade the currency transaction report filing requirements. In addition to imposing a prison sentence, the court fined the defendant $7,500 and ordered the forfeiture of the following assets owned by Akroush: real property in Bakersfield, approximately $109,555 seized from five different bank accounts, approximately $199,181 in cash seized from a safe in his residence, approximately $233,460 in cash seized from two safe deposit boxes, and a 1962 Chevrolet Impala worth $200,000.

According to court documents, during the time of the structured cash withdrawals, Akroush operated several internet businesses–Magic Man’s Wholesale, Blue Whale Wholesale, World of Incense, and Blue Bear– that distributed synthetic marijuana to convenience stores, smoke shops, and other customers throughout the country. Although marketed as a legal alternative to marijuana, the products contained illegal drugs that have much more harmful effects than marijuana. Akroush structured the proceeds derived from synthetic drug sales as a means of concealing the illegal nature of his businesses.

This case was the product of an investigation by the Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation, Homeland Security Investigations, and the California Highway Patrol with assistance from the U.S. Postal Inspection Service, the California Department of Motor Vehicles, Kern County Probation, Kern County Sheriff’s Office, and Bakersfield Police Department. Assistant U.S. Attorneys Karen A. Escobar and Henry Z. Carbajal III are prosecuting the case.

This case was designated an Organized Crime Drug Enforcement Task Force (OCDETF) case. The OCDETF program was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.

FRESNO, Calif. — Javier Ochoa-Anaya, 49, residing in Denair, pleaded guilty today to conspiracy to distribute methamphetamine and possessing firearms in furtherance of drug trafficking offenses, U.S. Attorney McGregor W. Scott announced.

According to the plea agreement, Ochoa received a shipment of 54 kilograms of methamphetamine on Sept. 3, 2019. Ochoa enlisted the aid of co-defendant Victoria Rodriguez, to assist him in weighing and packaging the methamphetamine. On Sept. 5, 2019, agents seized the methamphetamine during a search of Ochoa’s vehicle. In addition, agents seized a cooler stored with the methamphetamine that contained 1 kilogram of cocaine, five loaded firearms, a bullet proof vest, several high capacity magazines, a substance used to dilute the drugs, and a digital scale.

This case is the product of an investigation by the Drug Enforcement Administration and the Sheriff’s Special Investigations Unit, composed of agents from the Stanislaus County Sheriff’s Department, the California Highway Patrol, the Stanislaus County District Attorney’s Office, Stanislaus County Probation, and Ceres Police Department. Assistant U.S. Attorney Kathleen A. Servatius is prosecuting the case.

Ochoa is scheduled to be sentenced on Sept. 4. He faces a maximum statutory penalty of life in prison and a $10 million fine for the drug offense and a mandatory five-year consecutive term on the firearms charge. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

Victoria Rodriguez pleaded guilty to conspiring to distribute methamphetamine and is scheduled for sentencing on June 19, 2020.

SACRAMENTO, Calif. — A Fairfield man pleaded guilty Thursday to being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.

Antonio Tawan Bankhead, 32, was convicted of the same crime in Sacramento federal court in 2015. He violated his federal probation in that case when he committed this new offense.

According to court documents, on the evening of Oct. 11, 2019, police responded to the area of Laurel Creek Park for a report of a potential robbery involving three individuals, one of whom had a gun. As police arrived, Bankhead ignored commands to stop and began to walk away. As more police arrived and tried to cut off his path, Bankhead changed direction and started to sprint. After a pursuit by officers and a K9, Bankhead was caught in the bushes of a house across from the park, and a gun and phone he had been carrying were found on a baseball field, which was fenced in and closed to the public. The gun, a Glock Model 19 9 mm pistol, had a 30-round extended magazine, and was loaded with 30 live 9 mm rounds and one round in the chamber. Bankhead cannot lawfully possess firearms or ammunition because he has previously been convicted of three felony offenses.

This case is the product of an investigation by the Fairfield Police Department with assistance from the FBI’s Solano County Violent Crimes Task Force and the Solano County District Attorney’s Office. Assistant U.S. Attorney Christopher S. Hales is prosecuting the case.

Bankhead is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on Aug. 27. Bankhead faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Bankhead also faces an additional maximum of two years for violating his federal probation from his 2015 conviction. 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.

FRESNO, Calif. — The owner of a Bakersfield truck driving school was sentenced today for his role in a conspiracy to sell California commercial driver’s licenses to unqualified drivers, U.S. Attorney McGregor W. Scott announced.

U.S. District Judge Dale A. Drozd sentenced Paramjit Singh Mangat, 56, of Bakersfield, to 14   months in prison and a $10,000 fine for his conviction on one count of unlawful production of an identification document and aiding and abetting. The court also finalized an order for forfeiture of $100,000 that had been seized as proceeds from the fraud scheme.

According to court documents, Mangat operated driving schools in Bakersfield that ostensibly provided training to those seeking to obtain driver’s licenses, including Akal Truck Driving School and Akal Driving School. When students had difficulty passing DMV examinations, in return for money, Mangat offered to assist them in obtaining fraudulently issued, yet official licenses through Mangat’s contact Javier Jesus Hernandez-Herrera, 56, then a DMV employee.

According to court documents, from approximately June 2012 through Aug. 24, 2016, Mangat conspired with Herrera, then a Licensing Registration Examiner at a DMV office in Bakersfield. In return for monetary payment, Herrera agreed to access the students’ DMV records and alter the records to reflect that the individual had passed DMV written and/or behind-the-wheel examinations, when, in fact, the individual had not passed one or more required DMV tests. Herrera’s alteration of the records resulted in the DMV issuing a California driver’s license and mailing it to that individual.

Herrera pleaded guilty on Nov. 12, 2019, and is scheduled to be sentenced on Aug. 14, 2020. Herrera faces a maximum statutory penalty of 15 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

This case was the product of an investigation by Homeland Security Investigations and the California DMV, Investigations Division Office of Internal Affairs. Assistant U.S. Attorneys Henry Z. Carbajal III and David L. Gappa are prosecuting the case.

SACRAMENTO, Calif. —, Five individuals face federal charges for the burglary of a Vacaville gun shop, U.S. Attorney McGregor W. Scott announced.

According to court documents, on June 1, police responded to reports of suspicious activity at Guns, Fishing and Other Stuff, a two-story gun and outdoor recreation store in Vacaville. Guns, Fishing and Other Stuff is a federally licensed firearms dealer. When officers responded, four vehicles fled the scene. After a high-speed chase, one vehicle, a rented minivan, was stopped, and its five passengers were arrested after a foot pursuit.

According to the criminal complaint, inside the minivan were bolt cutters, a power saw, and 13 handguns with price tags from Guns, Fishing and Other Stuff still attached. Donte Marcel Anderson, 31, of Antioch; Desteny Estrella Leilani Salazar, 22, of San Francisco; Donley Thompson, 27, of Pinole; Tracy Whitfield, 31, of Pittsburg; and Adrian Oscar Duran, 23, of San Francisco, were arrested. They are charged with possession of a stolen firearm and burglary of a federally licensed firearms dealer

This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Vacaville Police Department. Assistant U.S. Attorney Justin Lee is prosecuting the case.

If convicted, the defendants face a maximum statutory penalty of 10 years in prison and a fine of up to $250,000 for both counts. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the 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.

SACRAMENTO, Calif. — John Maasen, 65, of Olivehurst, pleaded guilty today to possession of child pornography, U.S. Attorney McGregor W. Scott announced.

According to court documents, on Jan. 16, 2019, Maasen knowingly possessed visual depictions of minors engaged in sexually explicit conduct. Maasen has a prior conviction by the State of California for lewd and lascivious acts on a child under the age of fourteen.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Shea J. Kenny and Amy S. Hitchcock are prosecuting the case.

Maasen is scheduled to be sentenced by U.S. District Judge John A. Mendez on Sept. 15. Maasen faces a minimum statutory penalty of 10 years in prison and a maximum penalty of 20 years in prison, as well as a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.

SACRAMENTO, Calif. — Community leaders and federal, state and local law enforcement partners join together to condemn the death of George Floyd in Minneapolis and to call for justice, unity and peace, U.S. Attorney McGregor W. Scott, FBI Special Agent in Charge Sean Ragan, Sacramento County District Attorney Anne Marie Schubert, Sacramento County Sheriff Scott Jones, Sacramento Chief of Police Daniel Hahn, and the following community leaders announced.

Sacramento NAACP
President Betty Williams

Vallejo NAACP
President Jimmie Jackson

Madera NAACP
President Gloria Brown

Kings County, Hanford Unit, NAACP
Dr. Crystal Jackson

The 100 Black Men of Sacramento
President Richard Cornelius

MLK Celebration Committee
President Toni Greenwell

Organization of Chinese Americans Sacramento
President Jinky Dolar

Church of Scientology of Sacramento
President Mike Klagenberg

Sacramento Afghan Community
President Abdul Karim Yusufzai

West Sacramento Gurdwara
Public Relations Officer Darshan Mundy

Racial Healing Project
President Jan Merrill

Shasta County Citizens Advocating Respect
Chair Susan Morris-Wilson

Center for Interfaith Studies in America
CEO Jon Fish

Interfaith Council of Sacramento
President Edrine Ddungu
Public Relations Officer Akram Keval

Interfaith Council of Elk Grove
President Dr. Richard Shankar

Islamic Center of Vallejo
Secretary Najim Khan

Sikh Community of Fresno
Ike Grewal

Japanese American Citizens League
President Janice Luszczak

International Faith Based Coalition
Bishop Ron Allen

Sacramento Regional Coalition for Tolerance
President Susie Wong

Gethsemane Lutheran Church of Sacramento
Reverend Jason Bense

Twin Rivers Unified School District
Trustee Ramona Landeros

Greater Solomon Temple Community Church
Pastor Bishop Ron Allen

Lutheran Church of our Redeemer
Reverend Jason Bense

California Council of Churches
Policy Advocate Libby Sholes

Jewish Federation of Sacramento CEO Willie Recht
President Deborah Gonzalez

Jewish Community Relations Council Chair Bruce Pomer

Benito Juarez Association of North Sacramento
Founder Ramona Landaros

Mi Familia Vota
Calif. State Director Samuel Molina

La Raza Lawyers Foundation President Michael Terhorst

Sacramento Valley Family Federation for World Peace
Pastor Charles de Watteville

Leonard M. Friedman Bar Association
President Misha Igra

North State Relief
Secretary Joshua Cook

Interfaith Explorers
President Rachel Lyman and Reverend Dave Lyman

Yeshua Helping Hands, Inc.
Pastor Elizabeth Mass

Westminster Presbyterian Church of Sacramento
Pastor Wes Nordman

Kutchi Cultural Association
Akram Keval and Aslam Ahme

Peaceful protest is a time-honored tradition in our country that is protected by the First Amendment. The peaceful protests in Sacramento, Fresno, Bakersfield, and around our country are addressing real and legitimate concerns about what happened to Mr. Floyd. Law enforcement supports the community’s right to peacefully protest and strives to protect this important right. But violence and destruction are not acceptable in our community nor in any other city in our country. It endangers our community, including those exercising their right to protest peacefully and those protecting that right.

“In this difficult time for our country, we stand together as one community to call for unity and peace, not division,” said U.S. Attorney Scott. “We stand together to call for justice, not violence and lawlessness. We call on our community to model peaceful protests like the one Chief Hahn and other community leaders joined in Sacramento on June 3.”

“Our mission is to protect the American people and uphold the Constitution,” said FBI Special Agent in Charge Ragan. “The FBI respects the First Amendment right to peacefully protest and be heard. Our investigative focus is on those who sow seeds of violence and destruction. These acts interfere with the rights of protestors and harm the community.”

On June 1, U.S. Attorney Scott convened the U.S. Attorney’s Hate Crimes Task Force, including community leaders, the FBI, and local law enforcement, to hear the concerns of community leaders and to identify positive steps to take going forward. The U.S. Attorney’s Office, FBI, Sacramento County District Attorney’s Office, Sacramento County Sheriff’s Department, Sacramento Police Department, and other federal, state, and local law enforcement are committed to safeguarding the constitutionally protected right to peaceful protest and continuing to work together with our community leaders to promote justice, unity, and peace for all.

SACRAMENTO, Calif. — A Stockton man was arrested on Tuesday and charged with production and distribution of child pornography, U.S. Attorney McGregor W. Scott announced.

According to court documents, from April to June 2020, Jonathan Thornton, 36, produced images depicting a seven-year-old engaged in sexually explicit conduct. He then distributed the images on a darknet website. Thornton operates a photography business called Thornton Photography.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Mira Chernick is prosecuting the case.

If convicted, Thornton faces a mandatory minimum of 15 years in prison, a maximum statutory penalty of 30 years in prison, and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.

FRESNO, Calif. — Soledad residents Enrique Lopez, 28, and Victor Bravo, 25, were each sentenced today to five years in prison for conspiracy to commit armed bank robbery, U.S. Attorney McGregor W. Scott announced.

According to court documents, on Nov. 16, 2018, a deputy sheriff noticed a Nissan Altima parked in a parking lot at an apartment complex in Modesto that had been reported stolen from Salinas. Officers set up surveillance on the stolen Nissan and watched four cars carrying the five co-conspirators leave the apartment complex.

The cars traveled close to each other to a shopping area in Modesto that contained a Chase Bank. One co-conspirator drove back and forth past the Chase Bank, talking to the other conspirators on the phone.

The stolen Nissan, driven by Bravo, parked in a loading area behind the shopping center next to a car driven by Lopez. Lopez got out of his car and started loading items into the stolen Nissan. The stolen Nissan then left the loading area, drove through an alley, and parked in a parking lot near Chase Bank. Officers stopped the car and detained all four occupants. Inside the stolen Nissan, officers found two assault rifle-style firearms, a handgun, a revolver, masks, gloves, and a large duffel bag.

This case is the product of an investigation by the Federal Bureau of Investigation, the Stanislaus County Sheriff’s Department, the Modesto Police Department, the Monterey County Sheriff’s Department, San Mateo County Sheriff’s Department, Tulare County Sheriff’s Department, and Fresno County Sheriff’s Department. Assistant U.S. Attorney Ross Pearson is prosecuting the case.

Three other defendants have pleaded guilty are scheduled to be sentenced by U.S. District Judge Dale A. Drozd. The defendants face a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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, Calif. — Marco Lizandro Duarte-Beltran, aka Marco Antonio Duarte-Beltran, 34, an illegal alien from Mexico, pleaded guilty today to conspiring to manufacture, distribute, and possess with intent to distribute marijuana, U.S. Attorney McGregor W. Scott announced.

According to court documents, Duarte-Beltran cultivated 1,082 marijuana plants in the Millwood Creek area of the Sequoia National Forest for four months. Duarte-Beltran was apprehended at the marijuana cultivation site after a two-month investigation. He was wearing camouflage clothing and was armed with a loaded revolver.

The marijuana cultivation operation caused extensive environmental damage: native vegetation and tree limbs had been cut down to make room for the plants; three areas had been terraced for the campsite where Duarte-Beltran resided; water had been diverted from a water source on federal land to irrigate the plants; irrigation tubing, trash, seed trays, seed pots, fertilizers, and pesticides were scattered throughout the grow site. It will cost $12,644 to clean up the area, which Duarte-Beltran has agreed to pay.

This case is the product of an investigation by the U.S. Forest Service. Homeland Security Investigations, the Enforcement and Removal Operations, the Campaign Against Marijuana Planting (CAMP), the California National Guard, and the Fresno County Sheriff’s Office assisted in the investigation. Integral Ecology Research Center, a non-profit organization dedicated to the research and conservation of wildlife and their ecosystems, analyzed and documented the environmental damage. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.

Duarte-Beltran is scheduled for sentencing on Aug. 24. He faces a mandatory minimum term of 10 years in prison, a maximum term of life in prison, and a fine of up to $10 million. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — Federal, state and local law enforcement partners join together to condemn the death of George Floyd in Minneapolis and offer sincere condolences to his family and colleagues, U.S. Attorney McGregor W. Scott, FBI Special Agent in Charge Sean Ragan, Sacramento County District Attorney Anne Marie Schubert, Sacramento County Sheriff Scott Jones, and Sacramento Chief of Police Daniel Hahn announced.

Mr. Floyd’s death is being addressed through our criminal justice system, which is moving quickly. The state prosecutor has brought murder charges against a former Minneapolis police officer. As United States Attorney General Barr announced on May 29, the Department of Justice, including the FBI, is also conducting an independent investigation to determine whether any federal civil rights laws were violated.

Peaceful protest is a time-honored tradition in our country, and we in law enforcement strive to protect these important First Amendment rights. The majority of those protesting are doing so peacefully. But when protests turn violent, this endangers the community, and law enforcement must act to protect the community. As a civilized society based upon the rule of law, we will not tolerate violence, anarchy or chaos that threatens the safety of the community.

Federal, state, and local law enforcement will continue to work together to protect the community’s First Amendment rights and to protect the community from violence and lawlessness. Federal and state felony statutes may apply.

“As part of the community, we share the concerns about George Floyd’s death,” said U.S. Attorney Scott. “We also recognize that his death comes at a time when we are also fighting, as a nation, an unprecedented pandemic that has taken its toll across our country and our District. Together with state and local law enforcement, we have reached out to our community leaders to address the real and legitimate concerns about what happened to Mr. Floyd and to identify positive steps we can take going forward. Please join me in a call for unity and peace, not violence, as we work together during this difficult time.”

The FBI Sacramento Field Office is deeply committed to protecting the civil rights of all people within the 34 California counties we serve,” said Special Agent in Charge Sean Ragan. “The FBI steadfastly investigates all allegations involving the deprivation of civil rights, including ‘color of law’ violations – official actions taken by persons acting under the authority of local, state, federal, or tribal laws to willfully deprive someone of a right or privilege secured or protected by the Constitution or laws of the United States. No one is above or beyond the law. The communities we serve can depend on the FBI to methodically collect facts in order to provide unbiased and independent investigative results so prosecutors can make a charging decision.”

SACRAMENTO, Calif. — U.S. Attorney McGregor W. Scott is asking anyone who has witnessed or experienced sexual harassment by a landlord, property manager, maintenance worker, or anyone with control over housing to report that conduct to the Department of Justice.

The COVID-19 Pandemic has impacted the ability of many people to pay rent on time and has increased housing insecurity. The Department of Justice has heard reports of housing providers trying to exploit the crisis to sexually harass tenants. Sexual harassment in housing is illegal, and the Department of Justice stands ready to investigate such allegations and pursue enforcement actions where appropriate.

The U.S. Attorney’s Office for the Eastern District of California will work closely with state and local partners to identify incidents of sexual harassment in housing.

The Justice Department’s Sexual Harassment in Housing Initiative is an effort to combat sexual harassment in housing led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the Initiative is to address sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing.

Launched in 2017, the Initiative has filed lawsuits across the county alleging a pattern or practice of sexual harassment in housing and recovered millions of dollars in damages for harassment victims. The Justice Department’s investigations frequently uncover sexual harassment that has been ongoing for years.  Many individuals do not know that being sexually harassed by a housing provider can violate federal law or that the Department of Justice may be able to help.

The Department of Justice, through the Civil Rights Division and the U.S. Attorney’s Offices, enforces the Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. Sexual harassment is a form of sex discrimination prohibited by the Act.

The Department encourages anyone who has experienced sexual harassment in housing, or knows someone who has, to contact the Civil Rights Division by calling (844) 380-6178 or emailing [email protected].

Individuals may also file a complaint alleging harassment or discrimination in housing with the Department of Housing and Urban Development through HUD’s website or by calling (800) 669-9777.

SACRAMENTO, Calif. — The University of San Francisco (USF) has agreed to pay $2,561,727 to resolve allegations under the False Claims Act that it knowingly presented false and fraudulent claims to the Corporation for National and Community Service (CNCS) in order to secure federal grant funds under the AmeriCorps State and National Program. CNCS is an independent federal agency that administers the AmeriCorps national service program.

USF obtained AmeriCorps funding to support the San Francisco Teacher Residency Program that allowed students working towards teaching degrees to earn living allowances and money towards their tuition costs by serving as teacher apprentices in high‑needs schools within the San Francisco Unified School District. To receive an AmeriCorps education award, among other requirements, each volunteer had to serve a specified number of hours that were required to be timely and accurately documented.

Based on its investigation, the United States contends that USF, through the director of the San Francisco Teacher Residency Program, falsified over 1,500 timesheets and falsely certified approximately 61 education awards during the 2014, 2015, and 2016 grant years to qualify its program and students for receipt of more than $1.7 million in federal grant funds administered by CNCS. When the United States brought these issues to the attention of senior USF management, USF voluntarily relinquished the grant and actively cooperated during the investigation.

“When federal grantees commit fraud to get or keep federal grant money, the United States Attorney’s Office and our federal law enforcement partners will pursue these wrongdoers, seeking damages and substantial civil penalties where warranted,” stated U.S. Attorney Scott. “In this case, USF’s cooperation with federal investigators was a key factor in determining an appropriate resolution.”

“One whistleblower stepped forward to expose a brazen fraud. Our thanks go to him, to the U.S. Attorney’s Office for the Eastern District of California for its vigorous action and the cooperation of USF to make the public whole,” said CNCS Inspector General Deborah J. Jeffrey.

The allegations resolved by this settlement were first raised in a lawsuit filed against USF under the qui tam, or whistleblower, provisions of the False Claims Act by the former assistant director of the San Francisco Teacher Residency (No. 2:16-cv-2789). The False Claims Act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery.

This investigation was conducted jointly by the CNCS Office of Inspector General and the U.S. Attorney’s Office for the Eastern District of California. Assistant U.S. Attorney Geoffrey Wilson handled the matter for the United States.

The claims resolved by the settlement are allegations only; there has been no determination of liability.

SACRAMENTO, Calif. — Today, U.S. Attorney McGregor W. Scott and FBI Special Agent in Charge Sean Ragan denounced discrimination and acts of hate targeting racial, ethnic, and religious minorities in the Eastern District of California.

“The majority of hate crimes go unreported,” said U.S. Attorney Scott. “Especially during the coronavirus pandemic, victims are encouraged to report bias-motivated crimes. The FBI and the U.S. Attorney’s Office are ready to investigate and vigorously prosecute hate crimes so that all people can live their lives freely and without fear.”

“Hate crimes are not only an attack on a victim; these violent acts threaten and intimidate an entire community,” said Special Agent in Charge Ragan. “For this reason, investigating hate crimes is one of the FBI’s highest priorities and the FBI Sacramento Field Office continues unabated in our pursuit of offenders.”

The Justice Department prosecutes hate crimes and violations of anti-discrimination laws to the fullest extent of the law. Attorney General William Barr and Assistant Attorney General for Civil Rights Eric Dreiband have called upon department prosecutors throughout the country to watch for hate-motivated acts of violence.

U.S. Attorney Scott and Special Agent in Charge Ragan urge communities within the Eastern District of California to take the following steps to protect racial, ethnic, religious and other minority community members from bias and hate:

• Encourage reporting of all incidents of bias and hate. Hate crimes are often underreported to both federal and local law enforcement. It is critical to report hate crimes not only to show support for the individual(s) directly impacted, but also to send a clear message that the community will not tolerate these kinds of crimes. Reporting also enables law enforcement to fully understand the scope of the problem in a community and assign resources toward preventing and addressing crimes of bias and hate.
• How to report hate crimes. If you or someone you know are in immediate danger, call 911. Then, report the crime by calling the FBI Sacramento Field Office at (916) 746-7000 or submitting a tip online at tips.fbi.gov. Tips can be submitted anonymously but contact information is valuable to gather information needed to fully assess the reported situation. The FBI also has linguists available to ensure all callers are understood. The U.S. Attorney’s Office is notified of tips submitted.
• Use language supported by public health officials when referring to the global pandemic and the precipitating virus. World Health Organization (WHO) officials have recommended using “coronavirus disease 2019” or “COVID-19” as appropriate descriptors.
• Disseminate accurate COVID-19 information within professional and social networks. U.S. Government officials have warned the public about widespread misinformation and disinformation related to the COVID-19 pandemic. Avoid spreading inaccurate information by relying on trusted sources for news and public health guidance. Examples include: the Centers for Disease Control and Prevention (www.CDC.gov), the World Health Organization (www.WHO.int), and the California Department of Public Health (www.cdph.ca.gov).

FRESNO, Calif. — Jacob Blanco, 28, of Fresno, pleaded guilty today to five counts of sexual exploitation of a minor, as well as one count of receipt and distribution of child pornography, U.S. Attorney McGregor W. Scott announced.

According to the plea agreement, Blanco’s activities were discovered in March 2017 when the parents of a then six-year-old discovered that the minor had communicated with and created sexually explicit images at the request of another user on the social media application Musical.ly (now TikTok). Law enforcement investigators subsequently identified the offender as Blanco. Investigators searched Blanco’s residence and digital devices and discovered that he had successfully persuaded and coerced multiple minors to produce sexually explicit material. Blanco used various methods of deception and enticement, including by pretending to be a modeling agent or to be a minor himself. Blanco used Snapchat, Kik, Musical.ly (TikTok), and other applications to communicate with minor females for the purpose of having those minors create and transmit to him images of themselves engaged in sexually explicit conduct. Blanco admitted to law enforcement investigators, and as part of his plea agreement, that he communicated with at least 50 minors.

This investigation is the product of an investigation by Homeland Security Investigations (HSI) with assistance from the Fresno County Sheriff’s Office and the Fresno County Police Department along with numerous law enforcement agencies in various states. Assistant U.S. Attorney David L. Gappa and Trial Attorney Nadia C. Prinz of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) are prosecuting the case.

Sentencing is set for Oct. 9 before U.S. District Judge Dale A. Drozd. Blanco faces a mandatory minimum of 15 years in prison and a maximum of 30 years in prison for each sexual exploitation count and 5–20 years in prison for the distribution of child pornography count. For all counts there is a potential $250,000 fine and lifetime supervised release. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.

A Fresno, California, man pleaded guilty to production of child pornography today.

Jacob Blanco, 28, pleaded guilty to five counts of production of child pornography, as well as one count of receipt of child pornography, before U.S. District Court Judge Dale A. Drozd. Sentencing is set for Oct. 9, 2020.

According to admissions made in connection with his guilty plea, the defendant's activities initially came to light in or about March of 2017, when the parents of a then six-year-old discovered that the minor had communicated with and created sexually explicit images at the request of another user on the social media application Musical.ly (now TikTok). Law enforcement investigators subsequently identified this user as Jacob Blanco.

A search of the defendant’s digital media revealed that he had successfully persuaded and coerced multiple minors to produce sexually explicit material. Blanco accomplished this by using various methods of deception and enticement, including by pretending to be a modeling agent or to be a minor himself.  Blanco used Snapchat, Kik, Musical.ly and other applications to communicate with minors for the purpose of having those minors create and transmit to him images of those minors engaged in sexually explicit conduct.  In his interview with law enforcement, Blanco admitted that he communicated with at least 50 minors, an admission confirmed by the communications and images stored on his digital media.

The investigation was conducted by Homeland Security Investigations (HSI) in Fresno, with assistance from the Fresno County Sherriff’s Office and the Fresno County Police Department.  Trial Attorney Nadia C. Prinz of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney David L. Gappa of the Eastern District of California prosecuted the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.  Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.  

SACRAMENTO, Calif. — Omnicare Inc., a subsidiary of CVS Health and a leading provider of pharmacy services to long-term care facilities, has agreed to pay the United States a $15.3 million civil penalty to resolve allegations that it violated federal law by allowing opioids and other controlled substances to be dispensed without a valid prescription, U.S. Attorney McGregor W. Scott announced today.

Omnicare operates “closed door” pharmacies, which are pharmacies that are not open to the public, that deliver controlled substances to nursing homes and other long-term care facilities. Omnicare makes daily deliveries of prescription medications to residents of long-term care facilities; but it also pre-positions limited stockpiles of controlled substances at long-term care facilities in “emergency kits,” which are to be dispensed to patients on an emergency basis. These emergency kits, which often include opioids and other controlled substances that are commonly abused and diverted, remain part of Omnicare’s inventory and must be tightly controlled and tracked. The controlled substances may be dispensed only pursuant to a valid prescription.

“Omnicare failed in its responsibility to ensure proper controls of medications used to treat some of the most vulnerable among us,” said DEA Acting Administrator Uttam Dhillon. “DEA is committed to keeping our communities safe by holding companies like Omnicare accountable for such failures, while ensuring continuity of care and necessary access to emergency prescription drug supplies.”

“When controlled substances are diverted from their intended lawful purpose, whether from a large ‘closed door’ pharmacy chain like Omnicare or a pharmacy open to the public, there is a substantial danger to public health and safety,” U.S. Attorney Scott stated. “That is why the United States Attorney’s Office, together with our law enforcement partners, will continue to enforce the Controlled Substances Act against pharmacies of any size or type that violate the Act and will seek substantial civil penalties when warranted.”

“Failure to control access to prescription drugs can lead to the diversion of medication that could fall into the wrong hands with potentially devastating consequences,” stated DEA Special Agent in Charge Daniel C. Comeaux. “Today’s settlement demonstrates DEA’s commitment in protecting the health and safety of the public by ensuring all entities involved in the distribution of controlled substances follow the law.”

The United States alleged that Omnicare violated the federal Controlled Substances Act in its handling of emergency prescriptions, its controls over the emergency kits, and its processing of written prescriptions that had missing elements. The federal investigation found that Omnicare failed to control emergency kits by improperly permitting long-term care facilities to remove opioids and other controlled substances from emergency kits days before doctors provided a valid prescription. The investigation also revealed that Omnicare had repeated failures in its documentation and reporting of oral emergency prescriptions of Schedule II controlled substances.

As part of the settlement agreement announced today, Omnicare agreed to pay the $15.3 million civil penalty and entered into a Memorandum of Agreement with the Drug Enforcement Administration that will require Omnicare to increase its auditing and monitoring of emergency kits placed at long-term care facilities.

This matter was investigated by the DEA’s Field Divisions in Denver, Los Angeles, San Francisco and Seattle, in conjunction with five U.S. Attorney’s Offices: the Central District of California, the Eastern District of California, the District of Colorado, the District of Oregon, and the District of Utah. The settlement agreement, which was finalized on May 6, resolves Omnicare’s civil liability for the alleged Controlled Substances Act violations in those five districts.

The claims settled by this civil agreement are allegations. In entering into this settlement agreement, Omnicare did not admit to any liability.

The United States Attorney’s Office for the Eastern District of California was represented in this matter by Assistant U.S. Attorneys Colleen M. Kennedy and Geoffrey D. Wilson.

SACRAMENTO, Calif. — In honor of National Police Week, the U.S. Attorney’s Office honors and remembers the service and sacrifice of federal, state, local, and tribal law enforcement.

Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty and commitment to keeping our communities safe. This year, the COVID-19 pandemic has underscored the courage and unwavering devotion of law enforcement officers to the communities they swore to serve.

“There is no more noble profession than serving as a police officer,” said Attorney General William P. Barr. “The men and women who protect our communities each day have not just devoted their lives to public service, they’ve taken an oath to give their lives in order to ensure our safety. And they do so not only in the face of hostility from those who reject our nation’s commitment to the rule of law, but also in the face of evolving adversity – such as an unprecedented global health pandemic. This week, I ask all Americans to join me in saying ‘thank you’ to our nation’s federal, state, local, and tribal law enforcement officers. Their devotion and sacrifice to our peace and security will not be taken for granted.”

“This is a time for all of us to honor and pay tribute to our law enforcement heroes who gave the ultimate sacrifice while protecting our communities,” said U.S. Attorney McGregor W. Scott. “We will never forget their sacrifice and we will keep their families and fellow officers in our hearts and minds.”

In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which falls on May 15 every year, specifically honors law enforcement officers killed or disabled in the line of duty.

Based on data collected and analyzed by the FBI’s Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 89 law enforcement officers died nationwide in the line of duty in 2019. Comprehensive data tables about these incidents and brief narratives describing most of the fatal attacks are included in the sections of Law Enforcement Officers Killed and Assaulted, 2019.

Three of the law enforcement officers killed in the line of duty being remembered this week are from the Eastern District of California— Officer Natalie Corona of the Davis Police Department, Officer Tara O’Sullivan of the Sacramento Police Department, and Deputy Brian Ishmael of the El Dorado County Sheriff’s Department.  The United States Attorney’s Office brought federal charges in full cooperation and consultation with the El Dorado District Attorney’s Office related to the marijuana cultivation that resulted in the death of Deputy Ishmael.  In November 2019, a federal grand jury returned a four-count indictment charging four men with marijuana cultivation and firearms offenses.

The names of the fallen officers who have been added in 2020 to the wall at the National Law Enforcement Memorial will be read on Wednesday, May 13, 2020, during a Virtual Annual Candlelight Vigil. Because public events have been suspended as a result of COVID-19, the vigil will be live streamed to the public at 8:00 pm (EDT). To register to view this free online event, please go to https://nleomf.org/.  To learn more about National Police Week and the virtual candlelight vigil, please visit www.policeweek.org.

SACRAMENTO, Calif. — Monica Nunes, 40, of formerly of Rancho Cordova, pleaded guilty Thursday to conspiracy to commit bank fraud, U.S. Attorney McGregor W. Scott announced. 

According to court documents, Nunes and her co-defendants, Johnathon Ward and Talalima Toilolo, conspired to defraud financial institutions using a scheme called “refund fraud” or “force post refund fraud.” This scheme exploited the merchant refund process used by businesses and retail establishments to pay back customers for returns, reimbursements, and erroneous charges. The defendants posed as merchants and executed fraudulent debit or credit card refunds, which caused the unauthorized transfer of money from a merchant bank account to an account under the defendants’ control.

The defendants committed this scheme by stealing or purchasing point-of-sale (POS) terminals that were used by businesses to process bankcard transactions. The defendants programmed each terminal to make it appear as if it was authorized by a particular 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’ banks to transfer funds to the defendants’ accounts. The defendants then drained the stolen funds from the accounts. The indictment alleges that this scheme caused at least $3.5 million in intended losses.

This case is the product of an investigation by the Regional Enforcement Allied Computer Team (REACT) Task Force, which includes investigators from the Federal Bureau of Investigation and the Santa Clara County District Attorney’s Office. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.

Charges are pending against Ward and Toilolo. The charges are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.

Nunes is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on Aug. 6. Nunes faces a maximum statutory penalty of 30 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — Kenneth Bryant, 29, of Sacramento, was sentenced Thursday by U.S. District Judge Morrison C. England Jr. to four years and nine months in prison for dealing firearms without a license, U.S. Attorney McGregor W. Scott announced.

According to court documents, Bryant met with an undercover agent and a confidential source on 10 occasions between Sept. 12, 2017, and Dec. 8, 2017, and sold them a variety of firearms, including an AR-15-type rifle and pistol and various semi-automatic handguns. In all, Bryant sold investigators 30 firearms, and at least two lacked a serial number or other identifying markings. Bryant, a convicted felon, was not licensed to sell firearms.

This case was the product of an investigation by the by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, with special assistance from the Sacramento Police Department and the Sacramento County District Attorney’s Office’s Gangs, Hate Crimes, and Narcotics unit. Special Assistant U.S. Attorney Robert J. Artuz 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, Calif. — Ismael Huazo-Jardinez, 34, a Mexican citizen previously residing in Yuba City, pleaded guilty today to a charge of possessing a firearm while being an alien unlawfully in the United States, U.S. Attorney McGregor W. Scott announced. 

According to court documents, Huazo-Jardinez is suspected of having been the driver in a fatal car accident in Sutter County that killed three people — the parents and one child of a family of four — when the vehicle crashed into their mobile home as they slept on May 4, 2019. Huazo‑Jardinez was arrested at the scene of the accident. Authorities impounded the vehicle, a Chevrolet Avalanche registered to Huazo-Jardinez, and later recovered a handgun from the vehicle’s center console. A database query revealed that the handgun had been reported stolen in Boise, Idaho.

Huazo-Jardinez is a citizen and national of Mexico who has twice been removed from the United States and has not been granted permission to return. As an alien unlawfully in the United States, Huazo-Jardinez is prohibited by federal statute from possessing a firearm.

This case is the product of an investigation by the Federal Bureau of Investigation, the California Highway Patrol, Sutter County Sheriff’s Office, and U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations. Assistant U.S. Attorneys James Conolly and Shea Kenny are prosecuting the case. The Sutter County District Attorney’s Office is prosecuting Huazo-Jardinez in the state case related to the May 4, 2019, fatal car accident.

Huazo-Jardinez is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on Aug. 6. Huazo-Jardinez 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.

SACRAMENTO, Calif. — During California State Peace Officers’ Memorial Week, the U.S. Attorney’s Office honors and remembers the California peace officers who have died in the line of duty in the preceding year.

Three of the California peace officers being remembered this week are from the Eastern District of California— Officer Natalie Corona of the Davis Police Department, Officer Tara O’Sullivan of the Sacramento Police Department, and Deputy Brian Ishmael of the El Dorado County Sheriff’s Department.  The United States Attorney’s Office brought federal charges in full cooperation and consultation with the El Dorado District Attorney’s Office related to the marijuana cultivation that resulted in the death of Deputy Ishmael.  In November 2019, a federal grand jury returned a four-count indictment charging four men with marijuana cultivation and firearms offenses.

“We are deeply grateful for these men and women who protect us all,” said U.S. Attorney McGregor W. Scott.  “Please take a moment to stop and remember the peace officers who gave their lives this past year, making the ultimate sacrifice while protecting our communities.  The U.S. Attorney’s Office expresses our sincere condolences to these officers and their families as we honor their memory.” 

More information about California State Peace Officers’ Memorial Week, including observation of a virtual tribute during the COVID-19 public health crisis, is available here: 2020 California Peace Officers' Memorial Foundation Candlelight Vigil Tribute. 

SACRAMENTO, Calif. — Elijah Richter, 28, of Camino, was sentenced Monday by U.S. District Judge Kimberly J. Mueller to 10 years in prison for distribution of a controlled substance known as n25i-nBOME that caused death, U.S. Attorney McGregor W. Scott announced.

According to court documents, during September 2012, Richter imported hallucinogenic drugs, including a controlled substance known as n25i-nBOME, from Europe to his residence in El Dorado County by placing orders on his computer through Silk Road, a now-defunct darknet website.

Through Silk Road, Richter was able to use bitcoin currency and an anonymous interface to execute drug deals. Shortly before Sept. 8, 2012, Richter imported a number of doses of n25i‑nBOME from Europe. Richter then distributed some of that n25i-nBOME to Jesse Roberts. Roberts, in turn, distributed some of that n25i-nBOME to a juvenile male who took four doses of the n25inBOME and died as a result of an overdose on the drug. DEA and the El Dorado County Sheriff’s Office served a search warrant at Richter’s home and recovered 2.61 grams of MDMA, three digital scales, 3.81 grams of suspected hash oil, 42.25 grams of marijuana, 89 pink colored tabs of suspected 25i-nBome on paper, and seven additional tabs of suspected 25i-nBome in aluminum foil, as well as a handwritten list of drugs and their proper dosage units. Richter admitted to supplying the hits of n25i-nBome that killed the juvenile.

When Richter pleaded guilty on Jan. 13, 2020, he admitted that he imported doses of n25i‑nBOME for the purpose of distributing that substance to others for human consumption and some of those doses ultimately were distributed and led to the juvenile’s overdose death in September 2012.

The El Dorado County District Attorney’s Office prosecuted Roberts. He was convicted of involuntary manslaughter on March 3, 2017, and sentenced to six years in prison.

This case was the product of an investigation by the El Dorado County Sheriff’s Office, the El Dorado County District Attorney’s Office, and the Drug Enforcement Administration as part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. Assistant U.S. Attorneys Jason Hitt and Paul A. Hemesath prosecuted the case.

SACRAMENTO, Calif. — U.S. Attorney McGregor W. Scott and Rod Ammari, Special Agent in Charge of the Treasury Inspector General for Tax Administration (TIGTA), Office of Investigations, Western Field Division, today warned the public to be aware of scammers attempting to intercept Economic Impact Payments being delivered by the Internal Revenue Service.

U.S. Attorney Scott and SAC Ammari announced an effort to provide taxpayers with the necessary information to avoid falling victim to criminals using this pandemic as an opportunity to commit fraud. TIGTA has established a website for citizens to report IRS-related Coronavirus scams at tips.TIGTA.gov. You may also contact TIGTA’s investigative offices in Fresno at 559-458-7377 or in Sacramento at 916-974-5774.

Most eligible taxpayers will receive their payment through direct deposit into their bank account. Taxpayers that traditionally receive tax refunds via paper check, including many elderly citizens and those who do not use banking services, will receive their payments via U.S. Treasury check delivered by mail by the U.S. Postal Service.

“During this national emergency, all Californians must remain vigilant against those who are plotting ways to scam them out of their COVID-19 economic impact payments,” said U.S. Attorney Scott. “It is critical that suspicious calls and efforts are immediately reported to law enforcement.”

“TIGTA is the agency responsible for protecting the integrity of Federal tax administration, including attempts to impersonate the IRS to defraud taxpayers,” said Special Agent in Charge Ammari. “We are committed to working with our law enforcement partners to investigate and bring to justice any individual or organization that engages in criminal activity and exploits this national crisis as a means to commit fraud.”

U.S. Attorney Scott and SAC Ammari offered the following tips on how to identify and report attempted scams involving the Economic Impact Payments:

• The IRS will not call you, text you, or email you to prompt you for more information as a prerequisite to getting an Economic Impact Payment.
• To check on the status of your Economic Impact Payment, please visit www.IRS.gov and click on “Get My Payment.” Only use the website www.IRS.gov. Do not use any other websites or services that claim to be able to process your Economic Impact Payment or act as an intermediary between you and the IRS. Similarly, do not click on any links in e-mails that purport to take you to the IRS website. The best practice is to manually type “www.IRS.gov” into your web browser.
• Anyone who calls you claiming to be from the IRS and offering to process your Economic Impact Payment is impersonating the IRS. Do not share any personal or financial information with these scammers.
• Do not share your personal information with anyone, whether claiming to be from the IRS or some other business or government agency, offering to assist you with your Economic Impact Payment. Payments will be delivered by the IRS through direct deposit or via U.S. Treasury check delivered by mail by the U.S. Postal Service.
• Do not share your online banking username or password with anyone. The IRS does not need your online banking username and password in order to send your Economic Impact Payment.

After your Economic Impact Payment has been sent, the IRS will send you a letter confirming your payment. If you receive this letter, but you have not received your Economic Impact Payment, please report the missing payment to TIGTA through our website at tips.TIGTA.gov. You will also need to report the missing payment separately to the IRS.

Additional information about the coronavirus pandemic and the Justice Department’s role in combatting related illegal activities can be found at www.justice.gov/coronavirus.

SACRAMENTO, Calif. —Daniel Arushanov, 27, of Sacramento, pleaded guilty today to impersonating an officer or employee of the United States, U.S. Attorney McGregor W. Scott announced.

According to court documents, on Feb. 11, Arushanov entered a Red Roof Inn in Sacramento and identified himself to the hotel clerk as a special agent with the Federal Bureau of Investigation. Arushanov claimed to be involved in an investigation into underage prostitution and demanded to see a guest list for the hotel. When asked to show his badge, Arushanov refused and instead told a hotel employee to call the FBI. Arushanov left after the hotel employee called the FBI to report the incident. One of the hotel employees later identified Arushanov as the individual who posed as an FBI agent. Arushanov was arrested for impersonating a peace officer.

“We depend on the cooperation of the public,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “It is essential that people trust us to be who we say we are. If contacted by the FBI, the public can always call their local FBI office or law enforcement agency to verify that contact as genuine. Please call 911 if you feel you are in danger.”

This case is the product of an investigation by the Federal Bureau of Investigation and the Sacramento County Sheriff’s Office. Assistant U.S. Attorney Shea J. Kenny is prosecuting the case.

Arushanov is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on June 15. Arushanov faces a maximum statutory penalty of three 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.

SACRAMENTO, Calif. — On Monday, U.S. District Judge John A. Mendez ordered the final forfeiture of $3.9 million in private jet shares bringing the total court-ordered forfeiture this year to more than $54 million related to the DC Solar Ponzi scheme, U.S. Attorney McGregor W. Scott announced.

The assets were seized in the fraud prosecution of the owners of DC Solar, a Benicia-based company, who pleaded guilty in January to charges related to a billion dollar Ponzi scheme. Monday’s order follows an earlier order, on March 24, ordering the final forfeiture of 83 seized assets worth more than $50 million. In total, $120 million in assets have been forfeited so far by the defendants in this investigation and prosecution, which has resulted in the largest criminal forfeiture in the history of the Eastern District of California.

Jeff Carpoff, 49, of Martinez, pleaded guilty on Jan. 24 to conspiracy to commit wire fraud and money laundering. His wife, Paulette Carpoff, 46, pleaded guilty the same day to conspiracy to commit an offense against the United States and money laundering. According to court documents, between 2011 and 2018, DC Solar manufactured mobile solar generator units (MSG), solar generators that were mounted on trailers and promoted as providing emergency power to cellphone towers and lighting at sporting events. A significant incentive for investors were generous federal tax credits due to the solar nature of the mobile units.

The conspirators pulled off their scheme by selling solar generators that did not exist to investors, making it appear that solar generators existed in locations that they did not, creating false financial statements, and obtaining false lease contracts, among other efforts to conceal the fraud. In reality, at least half of the approximately 17,000 solar generators claimed to have been manufactured by DC Solar did not exist.

U.S. Attorney Scott stated: “This billion dollar Ponzi scheme hurt investors and took money from the United States Treasury. This case represents not only the largest criminal fraud scheme in the history of the District, it also represents the District’s largest criminal forfeiture. All of the more than $120 million in forfeited assets will be returned to the victims. These final forfeiture orders make clear that criminals engaged in fraud risk their freedom and won’t be able to profit from their crimes because federal investigators and prosecutors will make every effort to locate and seize their ill-gotten fortunes to help make victims whole.”

The forfeitures in this investigation included the seizure and auction of 148 of the Carpoffs’ luxury and collector vehicles that resulted in recouping over $8.2 million for victims. Jeff and Paulette Carpoff used money from the scheme to pay for a minor-league professional baseball team and a NASCAR racecar sponsorship; to purchase luxury real estate in California, Nevada, the Caribbean, Mexico, and elsewhere; a subscription private jet service; a suite at a professional football stadium; and jewelry.

Four defendants have previously pleaded guilty to federal criminal charges related to the fraud scheme since October 2019. Joseph W. Bayliss, 44, of Martinez, and Ronald J. Roach, of Walnut Creek, each pleaded guilty to related charges on Oct. 22, 2019. Robert A. Karmann, 53, of Clayton, pleaded guilty to related charges on Dec. 17, 2019. Ryan Guidry, 53, of Pleasant Hill, pleaded guilty to related charges on Jan. 14. A seventh co-conspirator is scheduled to plead guilty on June 16. The investigation into the fraud remains ongoing.

This case is the product of an investigation by the Federal Bureau of Investigation, IRS‑Criminal Investigation, and the Federal Deposit Insurance Corporation Office of Inspector General. Assistant U.S. Attorneys André M. Espinosa and Kevin C. Khasigian are prosecuting the case.

Jeff and Paulette Carpoff are scheduled to be sentenced by U.S. District Judge John A. Mendez on May 19. Jeff Carpoff faces a maximum statutory penalty of 30 years in prison. Paulette Carpoff faces a maximum statutory penalty of 15 years in prison. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — The United States Attorney’s Office for the Eastern District of California and the Internal Revenue Service - Criminal Investigation (IRS-CI) is warning California taxpayers to be alert about possible scams relating to COVID-19 economic impact payments.

U.S. Attorney McGregor W. Scott and Kareem Carter, Special Agent in Charge IRS Criminal Investigation, made the announcement today in an effort to equip taxpayers to avoid being victimized by criminals who may view the recently approved payments as an opportunity to commit a crime.

“At a time when many Americans are struggling during this national emergency, others are plotting ways to get between the taxpayers in need and the payments that have been designed to help them. I urge all Californians to remain vigilant, especially those receiving the COVID-19 economic impact payment, and not fall prey to these scammers,” said U.S. Attorney Scott. “It is critical that suspicious calls and efforts are immediately reported to law enforcement.”

“As this deadly virus continues to impact every part of our lives, scammers are looking to take advantage of all the chaos,” said Special Agent in Charge Carter. “They will prey on our hopes and fears to steal your money, your personal information, or both.”

COVID-19 economic impact payments will be on their way in a matter of weeks. For most Americans, this will be a direct deposit into their bank account. Those who usually receive tax refunds via paper check will receive their economic impact payment in check form as well. Scammers may use various methods to trick recipients into signing over their checks or into giving their personal information that the scammer can use at a later date to file false tax returns in an identity theft scheme.

U.S. Attorney Scott and Special Agent in Charge Carter offer the following tips on how to spot a scam and information on how the COVID-19 related economic impact payments will be issued:

• The IRS will deposit your check into the direct deposit account you previously provided on your tax return. If you usually receive tax refunds through a paper check, IRS will send you a paper check.
• The IRS will not call and ask you to verify your payment details. Do not give out your bank account, debit account, or PayPal account information — even if someone claims it is necessary to get your check. It’s a scam.
• If you receive a call, don’t engage or talk with scammers or thieves, even if you want to tell them that you know it’s a scam, or you think that you can beat them. Just hang up.
• If you receive texts or emails claiming that you can get your money faster by sending personal information or clicking on links, delete them. Do not click on any links in those texts or emails.
• Reports are also swirling about bogus checks. If you have already received or receive a check in the mail now, it’s fraud — it will take the Treasury a few weeks to mail checks out. If you receive a check for an odd amount (especially one with cents), or a check that requires that you verify the check online or by calling a number, it’s fraud.
• If you receive a request or instructions to sign over check, this is a scam.
  Don’t become a victim by allowing criminals to exploit your emotions. Stay strong and tell your family, friends and neighbors about these scams.
  If you believe you have been a target or victim of a scam or fraud, please report it to the National Center for Disaster Fraud Hotline at 866-720-5721 or via email at [email protected].
  For more information, visit the IRS website at www.irs.gov/coronavirus.