Eastern District of California
Press releases recorded for this federal judicial district.
University of San Francisco Agrees to Pay over $2.5M for Alleged False Claims in Its Administration of AmeriCorps GrantsRead the Press Release
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.
Federal Law Enforcement Leaders Affirm Importance of Protecting Civil Rights Amid Coronavirus PandemicRead the Press Release
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 Man Admits Sexual Exploitation of at Least 50 Children Through Multiple Social Media AppsRead the Press Release
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.
California Man Pleads Guilty to Production of Child PornographyRead the Press Release
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.
Omnicare Inc. Agrees to Pay over $15M to Resolve Allegations It Improperly Dispensed Narcotics at Long-Term Care FacilitiesRead the Press Release
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.
U.S. Attorney’s Office Recognizes National Police WeekRead the Press Release
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.
Former Rancho Cordova Woman Pleads Guilty to Conspiracy to Commit Bank FraudRead the Press Release
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 Man Sentenced to over 4 Years in Prison for Dealing Firearms Without a LicenseRead the Press Release
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.
Mexican National Pleads Guilty to Being an Alien Unlawfully in the United States in Possession of a FirearmRead the Press Release
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.
U.S. Attorney’s Office Honors California Peace Officers Who Have Died in the Line of DutyRead the Press Release
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.
El Dorado County Man Sentenced to 10 Years in Prison for Distributing a Drug that Caused the Death of a MinorRead the Press Release
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.
U.S. Attorney and TIGTA Urge Public Awareness for Scams and Fraud Involving CARES Act Economic Impact PaymentsRead the Press Release
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 Man Pleads Guilty to Impersonating an FBI AgentRead the Press Release
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.
Court-Orders Final Forfeiture of over $54 Million in Connection with Billion Dollar Ponzi SchemeRead the Press Release
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.
Federal Government Warns of Potential Fraud Scams Surrounding COVID-19 Economic Impact PaymentsRead the Press Release
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.
Coronavirus Emergency Supplemental Funding Program Will Provide Funds for Coronavirus ResponseRead the Press Release
SACRAMENTO, Calif. — The Bureau of Justice Assistance has released the FY 2020 Coronavirus Emergency Supplemental Funding (CESF) Program Formula Grant Solicitation.
The Coronavirus Emergency Supplemental Funding Program will provide funding to assist eligible states, local units of government, and tribes in preventing, preparing for, and responding to the coronavirus.
Funds awarded under the Coronavirus Emergency Supplemental Funding Program must be utilized to prevent, prepare for, and respond to the coronavirus. Allowable projects and purchases include, but are not limited to, overtime, equipment (including law enforcement and medical personal protective equipment), hiring, supplies (such as gloves, masks, sanitizer), training, travel expenses (particularly related to the distribution of resources to the most impacted areas), and addressing the medical needs of inmates in state, local, and tribal prisons, jails, and detention centers.
Learn more about this opportunity and apply by May 29, 2020.
United States Attorney’s Office Takes Steps to Protect Consumers and Prevent Civil Rights Violations Amidst COVID-19 Public Health EmergencyRead the Press Release
SACRAMENTO, Calif.—Today, U.S. Attorney McGregor W. Scott announced a series of steps aimed at protecting consumer financial safety amidst the COVID-19 (Coronavirus) outbreak.
U.S. Attorney Scott has appointed a COVID-19 fraud coordinator to lead investigations into known and suspected occurrences of consumer financial fraud resulting from the nation’s ongoing public health emergency.
U.S. Attorney Scott stated, “The investigation and prosecution of crime remains the mission of the U.S. Attorney’s Office. We will continue to vigilantly guard the public from wrongdoers, including those who might try to take advantage of the COVID-19 crisis. Those who violate federal law will be held accountable.”
If you think you are a victim of a scam or attempted fraud involving COVID-19, you can report it without leaving your home though a number of platforms. Go to:
- Contact the National Center for Disaster Fraud Hotline at 866-720-5721 or via email at [email protected]
- Report it to the FBI at tips.fbi.gov
- If it’s a cyber-scam, submit your complaint through https://www.ic3.gov/default.aspx
The U.S. Attorney’s Office COVID-19 fraud coordinator will be notified of tips submitted via any of the above reporting methods.
Taking into account the general orders filed by Chief U.S. District Judge Kimberly Mueller related to COVID-19, the U.S. Attorney’s Office has taken necessary precautions to protect the health and safety of its staff during this health emergency while continuing to fulfill its public safety mission. Essential law enforcement functions including investigations, the signing and execution of warrants, filing of charges, and case litigation will continue. Eastern District of California prosecutors and support staff will continue working with federal, state, local and tribal law enforcement partners to safeguard our justice system and protect the safety and security of our nation during this difficult time.
United States Attorney Shares Tips for Avoiding COVID-19 ScamsRead the Press Release
SACRAMENTO, Calif.—Today, U.S. Attorney McGregor W. Scott warned of several new fraud schemes seeking to exploit the evolving COVID-19 (Coronavirus) public health emergency often targeting vulnerable populations.
Scammers have already devised numerous methods for defrauding people in connection with COVID-19. They are setting up websites, contacting people by phone and email, and posting disinformation on social media platforms. Some examples of scams linked to COVID-19 include:
- Testing scams: Scammers are selling fake at-home test kits or going door-to-door performing fake tests for money.
- Treatment scams: Scammers are offering to sell fake cures, vaccines, and advice on unproven treatments for COVID-19.
- Supply scams: Scammers are creating fake shops, websites, social media accounts, and email addresses claiming to sell medical supplies currently in high demand, such as surgical masks. When consumers attempt to purchase supplies through these channels, fraudsters pocket the money and never provide the promised supplies.
- Provider scams: Scammers are contacting people by phone and email, pretending to be doctors and hospitals that have treated a friend or relative for COVID-19, and demanding payment for that treatment.
- Charity scams: Scammers are soliciting donations for individuals, groups, and areas affected by COVID-19.
- Phishing scams: Scammers posing as national and global health authorities, including the World Health Organization (WHO) and the Centers for Disease Control and Prevention (CDC), are sending phishing emails designed to trick recipients into downloading malware or providing personal identifying and financial information.
- App scams: Scammers are creating and manipulating mobile apps designed to track the spread of COVID-19 to insert malware that will compromise users’ devices and personal information.
- Investment scams: Scammers are offering online promotions on various platforms, including social media, claiming that the products or services of publicly traded companies can prevent, detect, or cure COVID-19, and that the stock of these companies will dramatically increase in value as a result. These promotions are often styled as “research reports,” make predictions of a specific “target price,” and relate to microcap stocks, or low-priced stocks issued by the smallest of companies with limited publicly available information.
The U.S. Attorney’s Office urges Californians to take the following precautionary measures to protect themselves from known and emerging scams:
- Independently verify the identity of any company, charity, or individual that contacts you regarding COVID-19.
- Check the websites and email addresses offering information, products, or services related to COVID-19. Be aware that scammers often employ addresses that differ only slightly from those belonging to the entities they are impersonating. For example, they might use “cdc.com” or “cdc.org” instead of “cdc.gov.”
- Be wary of unsolicited emails offering information, supplies, or treatment for COVID-19 or requesting your personal information for medical purposes. Legitimate health authorities will not contact the general public this way.
- Do not click on links or open email attachments from unknown or unverified sources. Doing so could download a virus onto your computer or device.
- Make sure your computer’s anti-malware and anti-virus software is operating and up to date.
- Ignore offers for a COVID-19 vaccine, cure, or treatment. Remember, if there is a medical breakthrough, you won’t hear about it for the first time through an email, online ad, or unsolicited sales pitch.
- Check online reviews of any company offering COVID-19 products or supplies. Avoid companies whose customers have complained about not receiving items.
- Research any charities or crowdfunding sites soliciting donations in connection with COVID-19 before giving. Remember, an organization may not be legitimate even if it uses words like “CDC” or “government” in its name or has reputable looking seals or logos on its materials. For online resources on donating wisely, visit the Federal Trade Commission (FTC) website.
- Be wary of any business, charity, or individual requesting payments or donations in cash, by wire transfer, gift card, or through the mail. Don’t send money through any of these channels.
- Be cautious of “investment opportunities” tied to COVID-19, especially those based on claims that a small company’s products or services can help stop the virus. If you decide to invest, carefully research the investment beforehand. For information on how to avoid investment fraud, visit the U.S. Securities and Exchange Commission (SEC) website.
- For the most up-to-date information on COVID-19, visit the Centers for Disease Control and Prevention (CDC) and World Health Organization (WHO) websites.
On March 23, U.S. Attorney Scott announced the appointment of a COVID-19 fraud coordinator to lead investigations into known and suspected occurrences of financial fraud related to the nation’s ongoing public health emergency.
If you think you are a victim of a scam or attempted fraud involving COVID-19, you can report it without leaving your home though a number of platforms. Go to:
- Contact the National Center for Disaster Fraud Hotline at 866-720-5721 or via email at [email protected]
- Report it to the FBI at tips.fbi.gov
- If it’s a cyber-scam, submit your complaint through https://www.ic3.gov/default.aspx
The U.S. Attorney’s Office COVID-19 fraud coordinator will be notified of tips submitted via the above reporting method.
Former Edd Employee Sentenced to over Six Years Imprisonment for Unemployment Benefits FraudRead the Press Release
SACRAMENTO, Calif. — Pamela Emanuel, 58, of San Jose, was sentenced yesterday by United States District Judge Morrison C. England, Jr. to 6 years and 3 months in prison and ordered to pay $773,733 in restitution for her role in scheme to defraud the State of California by filing false unemployment insurance claims, United States Attorney McGregor W. Scott announced.
“Pamela Emanuel conspired to file fraudulent unemployment insurance claims, diverting vital taxpayer resources away from those in dire need of unemployment benefits. Protecting the integrity of the unemployment insurance program remains one of our highest priorities, and we will continue to work with our law enforcement partners to safeguard the unemployment benefits for those who need it, especially during this critical time,” said Quentin Heiden, Special Agent-in-Charge of the U.S. Department of Labor. Office of Inspector General, Los Angeles Region.
According to court documents, between July 22, 2015, and July 14, 2016, Emanuel and her co-conspirators engaged in a scheme to defraud the state of California. Emanuel worked as a tax compliance representative for the California Employment Development Department (EDD) and used her position to access the personal identifying information of workers throughout California. The conspirators used that information to file fraudulent unemployment claims in the names of the unknowing victims. In total, the conspirators filed at least 269 false claims seeking over $2.4 million in fraudulent benefits. EDD’s actual overpayment was approximately $887,199.
Emanuel was the fifth co-conspirator to be sentenced for their participation in this scheme. On August 16, 2018, Brittany Maunakea, 30, was sentenced to two and a half years in prison and ordered to pay approximately $139,000 in restitution. On Sept. 20, 2018, Sergio Doriante Sanchez Reyna, 26, was sentenced to 4 years and 3 months in prison and ordered to pay approximately $436,000 in restitution. On Feb. 22, 2019, Gregory Lee, 57, of Antioch was sentenced to 9 years in prison and ordered to pay approximately $353,000 in restitution. On Sept. 19, 2019, Russell White III, 38, of San Jose, was sentenced to 4 years and 3 months in prison and ordered to pay approximately $212,000 in restitution.
This case is the product of an investigation by the U.S. Department of Labor Office of Inspector General, the Federal Bureau of Investigation and the California Employment Development Department, Investigations Division. Assistant U.S. Attorney Amy Schuller Hitchcock is prosecuting the case.
Fresno Man Sentenced to 6 ½ Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
FRESNO, Calif. — Raul Adrian Torres, 22, of Fresno, was sentenced today to 6 ½ years in prison for being a felon in possession a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, on March 15, 2018, Torres was found to be in possession of a 9 mm hand gun with an obliterated serial number. Torres had two previous felony convictions for domestic violence in 2016 and 2017 and is prohibited from possessing a firearm. On Jan. 23, Torres pleaded guilty to the offense.
This case was the product of an investigation by Homeland Security Investigations, the Multi-Agency Gang Enforcement Consortium (MAGEC), and the Fresno Police Department. Assistant U.S. Attorneys Kirk E. Sherriff and Jessica A. Massey prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
Tattoo Shop Owner Pleads Guilty to Distributing Heroin and Methamphetamine on the DarknetRead the Press Release
SACRAMENTO, Calif. —Jason Keith Arnold, 46, of Chandler, Arizona, pleaded guilty today to conspiracy to distribute heroin and methamphetamine, U.S. Attorney McGregor W. Scott announced.
According to court documents, Arnold, along with co-defendants David White, 50, and Alicia McCoy, 31, both of Chandler, operated the vendor accounts “TheSickness” and “SicknessVersion2” on Dream Marketplace, through which they conducted more than 3,000 transactions for heroin and methamphetamine to customers throughout the country. Dream Marketplace was a website on the darknet that allowed individuals to sell narcotics and other illegal goods and services. Arnold and his co-conspirators mailed heroin inside Haribo Gold gummy bear packages from post offices in the Chandler region. Some of these packages were mailed to locations in the Eastern District of California.
Arnold is scheduled to be sentenced on May 11 by U.S. District Judge Morrison C. England Jr. Arnold faces a mandatory minimum sentence of 10 years in prison, a maximum statutory penalty 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.
Charges against White and McCoy are pending. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of investigations by the Northern California Illicit Digital Economy (NCIDE) task force, which is composed of the Federal Bureau of Investigation, Homeland Security Investigations, the Drug Enforcement Administration, and the United States Postal Inspection Service. Assistant U.S. Attorneys Grant B. Rabenn and Paul Hemesath are prosecuting the case.
This case was brought in conjunction with the Joint Criminal Opioid Darknet Enforcement (J‑CODE) Team. Established within the FBI’s Hi-Tech Organized Crime Unit, J-CODE is a U.S. Government initiative announced in January 2018, aimed at targeting drug trafficking, especially fentanyl and other opioids, on the darknet. Building on the work initiated with the takedowns of Silk Road and AlphaBay, the FBI’s J-CODE team brings together agents, analysts, and professional staff with expertise in drugs, gangs, health care fraud, and more, and our federal, state, and local law enforcement partners from across the U.S. Government, to focus on disrupting the sale of drugs via the darknet and dismantling criminal enterprises that facilitate this trafficking.
Modesto Man Indicted for Methamphetamine Trafficking and Firearm OffenseRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Jason Allen Celes, 37, of Modesto, charging him with possession with intent to distribute methamphetamine and being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, Celes was arrested in Modesto in possession of methamphetamine packaged for sale and a loaded firearm with an “auto-sear” device attached to it. Auto-sear devices are used to convert semi-automatic firearms to fire as fully automatic machine guns. Celes is a convicted felon prohibited from possessing firearms or ammunition.
This case is the product of an investigation by the Central Valley Gang Impact Task Force, the Federal Bureau of Investigation, the California Department of Corrections, and the Modesto Police Department. Assistant United States Attorney Katherine E. Schuh is prosecuting the case.
If convicted, Celes faces a mandatory minimum penalty of five years in prison, a maximum statutory penalty of life in prison and a fine up to $5 million. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the 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.
Chinese National Residing in Fresno Charged in Illegal Marijuana Grow OperationRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Yunquan Jiang, 48, a Chinese national residing in Fresno, charging him with cultivating and possessing with intent to distribute over 1,000 marijuana plants inside his residence, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Feb. 7, narcotics detectives served a search warrant at a house on East White Avenue in Fresno. The living room, kitchen, bedrooms, and garage had been retrofitted with fluorescent grow lights suspended from the ceiling, charcoal air-filtration systems, ballasts, and numerous fans. Authorities discovered a total of 1,263 marijuana plants inside the home. Jiang, the sole occupant, was arrested for cultivation of marijuana and possession of marijuana for sale.
This case is the product of an investigation by the Drug Enforcement Administration and the Fresno County Sheriff’s Office. Assistant U.S. Attorney Justin J. Gilio is prosecuting the case.
If convicted, Jiang faces a mandatory minimum prison sentence of 10 years in prison and up to life in prison and a fine of up to $10 million. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former VA Podiatry Chief Sentenced to 6.5 Years in Prison for Health Care Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Anthony Lazzarino, 69, former Chief of Podiatry for the Veterans Affairs’ (VA) Northern California Health Care System, was sentenced today by U.S. District Judge John A. Mendez to six years and six months in prison for health care fraud and conspiracy to commit wire fraud, U.S. Attorney McGregor W. Scott announced.
According to court documents and evidence presented at trial, between March 2008 and Feb. 2015, Lazzarino and Peter Wong, 62, founder and former CEO of Sunrise Shoes and Pedorthic Service Corporation, engaged in a scheme to defraud the VA by billing for custom work and services that were prescribed but not supplied in shoes delivered to veterans. In addition, they and Wong’s former employee Jai Aing Chen agreed to make materially false statements to the VA regarding where shoes were manufactured, in the course of applying for a national contract worth over $11 million per year. A federal jury found Wong and Lazzarino guilty of health care fraud and conspiracy to commit wire fraud on May 17, 2019. Chen separately pleaded guilty on Dec. 6, 2016.
This case was the product of an investigation by the Department of Veterans Affairs Office of Inspector General, Department of Veterans Affairs Police Service, Homeland Security Investigations, and Federal Bureau of Investigation. Assistant U.S. Attorney Lee S. Bickley prosecuted the case.
Judge Mendez sentenced Wong to five years in prison on Dec. 17, 2019. Judge Mendez sentenced Chen to one year and one day in prison on Aug. 6, 2019.
Department of Justice Launches a National Nursing Home InitiativeRead the Press Release
The U.S. Department of Justice issued this press release today to announce an important initiative to pursue nursing homes that provide grossly substandard care. The Eastern District of California looks forward to joining the initiative in the future and remains committed to combat elder abuse, neglect and financial exploitation. For more information please use the contacts and links in the message below.
WASHINGTON – Attorney General William P. Barr announced today the launch of the Department of Justice’s National Nursing Home Initiative, which will coordinate and enhance civil and criminal efforts to pursue nursing homes that provide grossly substandard care to their residents.
This initiative is focusing on some of the worst nursing homes around the country and the Department already has initiated investigations into approximately thirty individual nursing facilities in nine states as part of this effort.
“Millions of seniors count on nursing homes to provide them with quality care, and to treat them with dignity and respect when they are most vulnerable,” said Attorney General William P. Barr. “Yet, all too often, we have found nursing home owners or operators who put profits over patients, leading to instances of gross abuse and neglect. This national initiative will bring to justice those owners and operators who have profited at the expense of their residents, and help to ensure residents receive the care to which they are entitled.”
The department considers a number of factors in identifying the most problematic nursing homes. For example, the department looks for nursing homes that consistently fail to provide adequate nursing staff to care for their residents, fail to adhere to basic protocols of hygiene and infection control, fail to provide their residents with enough food to eat so that they become emaciated and weak, withhold pain medication, or use physical or chemical restraints to restrain or otherwise sedate their residents. These care failures cause residents to suffer in pain and to be exposed to the great indignities. Care failures cause residents to develop pressure sores down to the bone, to lie in their own waste for hours, to starve because they cannot reach the food on their trays and to remain unwashed for weeks at a time. Nursing homes that provide grossly substandard care also force vulnerable elderly residents who cannot leave the facilities to live in filthy and dangerous conditions where there are leaks in the roofs, mold is found growing and rodents found living in residents’ rooms. These are some of the actions and the inactions that the department intends to pursue.
“The Department of Justice has a long history of holding nursing homes and long-term care providers accountable when they fail to provide their Medicare and Medicaid residents with even the most basic nursing services,” said Assistant Attorney General Jody Hunt for the Civil Division. “Through this National Initiative, we will more effectively and quickly pursue nursing homes that are jeopardizing the health and well-being of their residents.”
“The Administration for Community Living was created to help ensure that older adults and people with disabilities are able to live the lives they want, with the people they choose, fully participating in their communities,” said Administrator Lance Robertson for the Administration for Community Living, U.S. Department of Health and Human Services. “Our mission includes supporting their basic right to live with dignity, free from abuse. We appreciate the Department of Justice’s leadership on this important Initiative, and we are proud to work side by side with DOJ and all of our partners in the Elder Justice Coordinating Council to prevent elder abuse in all forms.”
“The HHS Office of Inspector General (OIG) continues to pursue nursing home operators who provide potentially harmful care to residents who are often unable to protect themselves,” said Chief Counsel to the Inspector General Gregory Demske of HHS. “Creating this Initiative sends a message to those in charge of caring for these beneficiaries that grossly substandard care will not be tolerated.”
The National Nursing Home Initiative reflects the department’s larger strategy and commitment to protecting our nation’s seniors, coordinated by the department’s Elder Justice Initiative in conjunction with the U.S. Attorneys’ Offices. The Elder Justice Initiative and the U.S. Attorneys’ Offices are essential to the department’s investigative and enforcement efforts against nursing homes and other long-term care entities that deliver grossly substandard care to Medicare and Medicaid beneficiaries. The Initiative and the U.S. Attorneys’ Offices also support the efforts of state and local prosecutors, law enforcement, and other elder justice professionals to combat elder abuse, neglect and financial exploitation, with the development of training, resources, and information. Learn more about the Justice Department’s Elder Justice Initiative at http://www.justice.gov/elderjustice/.
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.
Department of Justice Charges Unprecedented Number of Elder Fraud Defendants Nationwide and Launches HotlineRead the Press Release
The U.S. Department of Justice issued this press release today to announce a number of elder fraud cases nationwide. The Eastern District of California has supported this sweep by conducting outreach to law enforcement and community groups. This press release contains important information to protect older Americans from financial harm. This interactive map provides state by state information on today’s sweep announcement. Also of note is the newly launched National Elder Fraud Hotline. For more information please use the links and contacts in the message below.
WASHINGTON – Attorney General William P. Barr, FBI Director Christopher A. Wray, and Chief Postal Inspector Gary R. Barksdale today announced the largest coordinated sweep of elder fraud cases in history. This year, prosecutors charged more than 400 defendants, far surpassing the 260 defendants charged in cases as part of last year’s sweep. In each case, offenders allegedly engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused alleged losses of over a billion dollars.
Attorney General Barr made the announcement at an event in Florida entitled “Keeping Seniors Safe,” which outlined his vision for protecting older Americans from financial harm. The event focused special attention on the threat posed by foreign-based fraud schemes that victimize seniors in large numbers. During the event, the Attorney General declared “Prevention and Disruption of Transnational Elder Fraud” to be an Agency Priority Goal, making it one of the Department’s four top priorities.
“Americans are fed up with the constant barrage of scams that maliciously target the elderly and other vulnerable citizens,” said Attorney General William P. Barr. “This year, the Department of Justice prosecuted more than 400 defendants, whose schemes totaled more than a billion dollars. I want to thank the men and women of the department’s Consumer Protection Branch, which coordinated this effort, and all those in the U.S. Attorneys’ Offices and Criminal Division who worked tirelessly to bring these cases. The department is committed to stopping the full range of criminal activities that exploit America’s seniors.”
“The charges announced today demonstrate the great success of the Transnational Elder Fraud Strike Force to identify and stop those who are targeting our senior communities from overseas,” said FBI Director Christopher Wray. “We’re committed to continuing our efforts to keep our elderly citizens safe, whether they’re being targeted door-to-door, over the phone, or online.”
“Every day, American consumers, particularly older Americans, receive offers that sound just too good to be true,” said Chief Postal Inspector Gary Barksdale. “Some come through the mail; others by telephone or the Internet. These offers have one objective – to rob you of your hard-earned money. Fraud costs Americans millions of dollars each year. The good news is most frauds can be prevented. It’s one of the few crimes in which potential victims can just say “No!” So hold on to your money and report scams to Postal Inspectors.”
This interactive map provides state by state information on the elder fraud cases and education and prevention community outreach efforts highlighted by today’s sweep announcement.
Elder Fraud Hotline
Attorney General Barr also announced the launch of a National Elder Fraud Hotline, which will provide services to seniors who may be victims of financial fraud. The Hotline will be staffed by experienced case managers who can provide personalized support to callers. Case managers will assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed. When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller. The Hotline’s toll free number is 833-FRAUD-11 (833-372-8311).
Transnational Elder Fraud Strike Force
The Transnational Elder Fraud Strike Force prosecuted more than one quarter of the defendants charged as part of the announced sweep. Established in June 2019, the Strike Force is composed of the department’s Consumer Protection Branch and six U.S. Attorneys’ Offices (Central District of California, Middle and Southern Districts of Florida, Northern District of Georgia, Eastern District of New York, Southern District of Texas), along with FBI special agents, Postal Inspectors, and numerous other law enforcement personnel. Prosecutors in Strike Force districts brought cases against more than 140 sweep defendants. FBI and the Postal Inspection Service served as lead agencies in the Strike Force and committed substantial investigative resources to pursuing elder fraud cases as part of Strike Force efforts. The Strike Force has held dozens of meetings with industry, victim groups, and law enforcement at the federal, state, and local levels to identify the most harmful schemes victimizing American seniors and to bolster preventive measures against further losses.
Law Enforcement Actions Swept from Coast to Coast
U.S. Attorneys’ Offices in every federal district took part in the Elder Fraud Sweep announced today. Many federal prosecuting offices filed cases against perpetrators and/or facilitators of elder fraud. Others conducted outreach to law enforcement, community groups, seniors, or private industry. Other U.S. Attorneys’ Offices demonstrated exceptional devotion to the cause of elder justice by both filing cases and conducting outreach.
For the second year, the Department of Justice and its law enforcement partners also took comprehensive action against the money mule network that facilitates foreign-based elder fraud. Generally, perpetrators use a “money mule” to transfer fraud proceeds from a victim to ringleaders of fraud schemes who often reside in other countries. Some of these money mules act unwittingly, and intervention can effectively end their involvement in the fraud. The FBI and the Postal Inspection Service took action against over 600 alleged money mules nationwide by conducting interviews, issuing warning letters, and bringing civil and criminal cases. Agents and prosecutors in more than 85 federal district participated in this effort to halt the money flow from victim to fraudster. These actions against money mules were in addition to the criminal and civil cases announced as part of this year’s elder fraud sweep.
In addition to announcing the sweep cases, Attorney General Barr and others at the Keeping Seniors Safe event also thanked department personnel — especially the Elder Justice Coordinators appointed in each U.S. Attorney’s Office — for conducting dozens of outreach events across the nation to warn seniors of fraud schemes and to engage with industry representatives and state and local authorities on fraud-prevention measures. These outreach efforts have helped to prevent seniors from falling prey to scams and have frustrated offenders’ efforts to obtain even more money from vulnerable elders.
The charges announced today are allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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.
McFarland Man Sentenced for Distributing Methamphetamine and Possessing a FirearmRead the Press Release
FRESNO, Calif. — Edgar Hernandez, aka Dopey, 34, of McFarland, was sentenced today to 16 years and six months in prison for possessing with the intent to distribute methamphetamine and possessing a firearm in furtherance of a drug trafficking crime, U.S. Attorney McGregor W. Scott announced.
According to court documents, on January 17, February 28, and March 6, 2019, Hernandez sold methamphetamine in the McFarland area. Hernandez was arrested on March 6, 2019, and agents seized a .45-caliber handgun and methamphetamine. This is Hernandez’s eighth felony conviction within a 16-year span.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the McFarland Police Department. Assistant United States Attorney Thomas Newman is prosecuting the case.
This case was 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 was also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
Fresno Man Sentenced to over 20 Years in Prison for Illegal Firearms Possession and Drug TraffickingRead the Press Release
FRESNO, Calif. — Darien Hatcher, 29, of Fresno, was sentenced today by U.S. District Judge Dale A. Drozd to 20 years and six months in prison for two counts of being a felon in possession of a firearm and one count of conspiracy to distribute and possess with intent to distribute methamphetamine, U.S. Attorney McGregor W. Scott announced.
On Oct. 22, 2015, Hatcher was arrested in Fresno for possession of a loaded Ruger 9 mm pistol that was not registered in his name and had been reported stolen. Hatcher was a previously convicted felon and prohibited from possessing a firearm. On July 18, 2016, Hatcher pleaded guilty to the charge. While out on bond and awaiting sentencing for this conviction, Hatcher conspired with others to distribute methamphetamine in Fresno. On Nov. 22, 2016, Hatcher was arrested and again found to be in possession of a firearm. He was charged with trafficking methamphetamine and being a felon in possession of a firearm.
According to court documents, on Nov. 18, 2019, Hatcher pleaded guilty to conspiracy to distribute methamphetamine and being a felon in possession of a firearm.
This case was the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Fresno Police Department, the California Department of Justice, the California Highway Patrol Special Operations Unit, and MAGEC. Assistant U.S. Attorney Kimberly A. Sanchez prosecuted the cases.
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.
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.
Manager of Marijuana Cultivation Site in Shasta Trinity National Forest ArrestedRead the Press Release
SACRAMENTO, Calif. — Custodio Ibarra Nunez, 37, of Merced, was arrested pursuant to a federal arrest warrant today. On Jan. 30, 2020,a federal grand jury returned a three-count indictment against Nunez, charging him with conspiracy to cultivate marijuana, marijuana cultivation, and depredation of public lands in the Shasta-Trinity National Forest, U.S. Attorney McGregor W. Scott announced.
This indictment relates to the same conspiracy charged in U.S. v. Lopez Pena et al. (2:19-cr-123). According to court documents, between May 23 and July 8, 2019, Nunez was a manager in a conspiracy to cultivate over 4,000 marijuana plants south of Rays Peak in Shasta-Trinity National Forest with three other co-conspirators, including an uncharged 17-year-old minor. In addition to the cultivation charges, Nunez is charged with committing depredation of federal lands and resources.
This case is the product of an investigation by the U.S. Forest Service, the Trinity County Sheriff’s Office, the California Department of Fish and Wildlife, the Bureau of Land Management, the Trinity County District Attorney’s Office the Merced Area Gang and Narcotics Team, Merced County Sheriff’s Office, the Atwater Police Department, and the Redding Police Department. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.
If convicted of either of the marijuana charges, Nunez faces a mandatory minimum penalty of 10 years in prison, and a maximum penalty of life in prison and a fine of up to $10 million. If convicted of damaging public lands, he faces a maximum penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account several variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Leader of Mendota MS-13 Gang Pleads Guilty to Drug Trafficking and Assault with a Deadly WeaponRead the Press Release
FRESNO, Calif. —Denis Barrera-Palma, 25, of Mendota, pleaded guilty today to assault with a deadly weapon in aid of racketeering and conspiracy to distribute and to possess with intent to distribute methamphetamine, cocaine, and marijuana, U.S. Attorney McGregor W. Scott announced.
Barrera-Palma was the leader in Mendota of La Mara Salvatrucha (MS-13), a violent criminal street gang that engages in racketeering activity, including murder, kidnapping, extortion, and drug trafficking.
The investigation began after reports that MS-13 had established a presence in and around Mendota, a Central Valley town 35 miles west of Fresno. Investigators found evidence of broad criminal activity, including murder, assault, firearms possession and drug trafficking activity. In August 2018, 25 individuals associated with MS-13 were arrested on federal and state charges in connection with their gang activities, including assault with a dangerous weapon in aid of racketeering and conspiracy to distribute and possess with intent to distribute controlled substances.
According to court documents, on May 14, 2018, Barrera-Palma, along with others, assaulted another individual with a pipe in front of an elementary school in Mendota in order to gain entrance to, or maintain or increase his status within MS-13.
The investigation was conducted by the California Department of Justice and California Highway Patrol Special Operations Unit, the Multi-Agency Gang Enforcement Consortium (MAGEC), the Federal Bureau of Investigation, Homeland Security Investigations (HSI), the Fresno County District Attorney’s Office, the Fresno County Sheriff’s Office, and the California Department of Corrections and Rehabilitation Special Services Unit (SSU). Assistant U.S. Attorneys Ross Pearson, Kathleen Servatius, and Kimberly Sanchez are prosecuting this and related cases. Senior Deputy District Attorney Dennis Lewis is working with the team and prosecuting related cases in Fresno County Superior Court.
Four of Barrera-Palma’s co-defendants have pleaded guilty. On Jan. 27, Claudia Lizaola, 40, of San Bernardino, was sentenced to 10 years in prison for conspiracy to distribute methamphetamine. Other co-defendants are scheduled for trial on April 14. These remaining defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Barrera-Palma is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on July 10. Barrera-Palma faces a maximum statutory penalty of 40 years in prison and a $1.25 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case 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.
These cases are 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.
Bakersfield Attorney Indicted for Scheme to Defraud Her ClientsRead the Press Release
FRESNO, Calif. — On Feb. 20, a federal grand jury returned an eight-count indictment against Heather Christiansen Stanley, 47, of Bakersfield, charging her with five counts of wire fraud, two counts of mail fraud, and one count of attempt to evade and defeat assessment of a tax, U.S. Attorney McGregor W. Scott announced.
The indictment was unsealed following Stanley’s arraignment on Wednesday.
According to court documents, Stanley, a divorce attorney in Bakersfield, represented to her clients that she could hold funds for them in a bank account for safekeeping during the pendency of their divorce proceedings. These monies were her clients’ funds and were not owed to Stanley for legal fees or otherwise. Instead of maintaining and protecting these funds, Stanley would use the funds for her own personal gain. Stanley often would not return the funds or would not return the full amount to her clients. In some instances, when Stanley returned the funds to her clients, she used other clients’ funds to make these payments.
This case is the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Angela Scott is prosecuting the case.
If convicted, Stanley faces a maximum statutory penalty of up to 20 years in prison and a fine of up to $250,000 for the wire and mail fraud counts and up to five years in prison and a $100,000 fine on the tax evasion 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.
New Jersey Man Who Traveled to Sacramento to Have Sex with a 13-Year-Old Sentenced to over 12 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — Michael Anaya-Otero, 23, of Elizabeth, New Jersey, was sentenced today to 12 years and six months, for traveling interstate with the intent to engage in illicit sexual conduct with a minor and enticement of a minor, U.S. Attorney McGregor W. Scott announced.
According to court documents, in April 2016 and again in January 2017, Anaya-Otero traveled to Placer County in order to engage in sexual conduct with a seventh grader. Anaya flew to Sacramento from New Jersey, picked the victim up from her middle school, and took her to a nearby hotel where he had sexual intercourse with her. Anaya-Otero repeated the trip several months later and again engaged in sexual activity with the same victim. Anaya kept a picture of the sexual contact on his cell phone.
Separately, in June 2017, Anaya-Otero had an online relationship over Snapchat and Instagram with a second juvenile victim, age 14, in El Dorado County. Anaya requested sexually explicit images from this juvenile victim and also kept at least one image from this victim on his cellphone.
“This predator carefully planned his contacts with victims and earned their trust. He traveled across the country, not once but twice,” stated U.S. Attorney Scott. “Anaya’s criminal conduct was only interrupted when he was arrested. Today’s sentence reflects the seriousness of his offenses, affords adequate deterrence and protects the public from further crimes by this defendant. Our office is committed to protecting our children and stopping this type of predatory conduct.”
Anaya-Otero was detained in 2018 when he attempted to enter Canada by car. He stated to the Canadian border agent that he was traveling to Canada to meet a 15-year-old girl he had previously contacted on social media. Anaya-Otero was denied entry into Canada, and images of child pornography on Anaya-Otero’s phone were discovered when he was returned to the United States.
This case was the product of an investigation by Homeland Security Investigations (HSI). Assistant U.S. Attorney Audrey B. Hemesath prosecuted the case.
“Homeland Security Investigations does not allow sexual predators, who commit deviant crimes against children, to go unfettered. HSI Agents are willing to pursue criminals, no matter where they try to hide,” said HSI San Francisco’s Special Agent in Charge Tatum King. “This important sentencing highlights the strong consequences brought to bear for criminal behavior towards minors.”
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.
Stockton Man Sentenced to More Than 7 Years in Prison for Fentanyl DistributionRead the Press Release
SACRAMENTO, Calif. — Manuel Felix-Rivera, 34, of Stockton, was sentenced today to seven years and three months in prison for conspiring to distribute and to possess with intent to distribute fentanyl, U.S. Attorney McGregor W. Scott announced.
According to court documents, between September 2018 and March 18, 2019, Felix-Rivera conspired with others to distribute fentanyl, methamphetamine, heroin, and cocaine. During the conspiracy, Felix-Rivera sold fentanyl to an undercover source five times. When agents executed a search warrant at Felix-Rivera’s house, they found fentanyl, methamphetamine, heroin, and cocaine. Felix-Rivera distributed and possessed with intent to distribute 1,157 grams of actual fentanyl. Studies indicate that just 3 milligrams of fentanyl can be fatal.
“Fentanyl can kill and has killed. Felix-Rivera possessed enough fentanyl to potentially kill over 380,000 people and sold highly dangerous drugs to multiple buyers,” stated U.S. Attorney Scott. “Felix-Rivera’s disregard for the lives of others warrants today’s sentence. Fortunately, law enforcement was able to stop the streets of Stockton from being flooded with thousands of doses of this potentially lethal opioid.”
“Just a few grains of fentanyl can have deadly consequences. Felix-Rivera was in possession of more than two and a half pounds of the substance at the time of his arrest, creating a potentially fatal situation for thousands of people,” stated DEA Special Agent in Charge Daniel C. Comeaux. “Today’s sentence sends the message that DEA and our law enforcement partners will not tolerate those whose conduct represents a danger to the community.”
This case is the product of an investigation by the Drug Enforcement Administration. Assistant U.S Attorney Ross Pearson prosecuted 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, 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.
Off-Site Manager of Marijuana Grow in Shasta-Trinity National Forest Sentenced to 10 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — Dimas Ortiz, 26, of Michoacán, Mexico, was sentenced today by U.S. District Judge Kimberly J. Mueller to 10 years in prison and ordered to pay $10,000 in restitution to the U.S. Forest Service for growing marijuana on the National Forest and for depredation of Public Lands and Resources, U.S. Attorney McGregor W. Scott announced.
According to court documents, Ortiz oversaw the marijuana growing operations of several other men in the Shasta-Trinity National Forest to the west of Weaverville, near Limedyke Mountain, at an elevation of approximately 2,500 feet. On Aug. 7, 2017, law enforcement officers executed a search of the grow and eradicated more than 2,500 marijuana plants. A camp site was found where the on-site workers had camped. Ortiz oversaw the operation from a distance. He helped finance the operation, provided the supplies for the grow site, and directed the activities of his co-defendants. Ortiz expected the operation to yield 800 pounds of processed marijuana, worth $500,000, of which he was to receive 25%. In 2016, Ortiz was the driver for the same grow site and he and others harvested approximately 800 pounds of processed marijuana.
The environmental damage to the forest was analyzed and documented by Integral Ecology Research Center, a non-profit organization dedicated to the research and conservation of wildlife and their ecosystems that has examined over 100 public land marijuana grow sites.
According to the report of the investigation filed with the court, at this grow site, a half-full 33.8‑oz. bottle of carbofuran was found hidden among the fertilizer bags and a bag containing an estimated 20 pounds of suspected powder carbofuran. Carbofuran is a toxic pesticide that is banned in the United States. A food bottle found at the site had been reused and contained a mixture of refried beans and carbofuran (suspected bait for animals). The environmental assessment concluded that the carbofuran and other pesticides and fertilizer at the grow site likely posed a significant direct risk to a number of endangered species, including the bald eagle, the northern spotted owl, and the coho salmon. Four cisterns were discovered with water diverted from mountain streams for use in the marijuana grow’s irrigation system with an estimated 4,500 feet of plastic irrigation lines for water and over 2,200 pounds of soluble fertilizer. The report estimates that the operation used over 15,000 gallons of water per day. Open campsite latrines were also found in proximity to waterways that would cause watershed contamination from the latrines’ fecal matter after the next substantial rain. About 1,000 pounds of trash and 500 pounds of plastic irrigation lines were hauled out of the site. Tests on samples of the marijuana plants determined that carbofuran was present in the plant material.
This case was the product of an investigation by the U.S. Forest Service with the assistance of agents from the U.S. Bureau of Land Management, the California Department of Fish and Wildlife, the North State Marijuana Investigation Team and deputies of the Trinity County Sheriff’s Office. Assistant U.S. Attorney David W. Spencer prosecuted the case.
Sebastian Martinez Arreola, of Michoacán, Mexico, who had been in the grow site approximately 11 days at the time of his arrest, pleaded guilty to marijuana cultivation charges, and on Feb. 28, 2018, was sentenced to 20 months in prison. Carlos Gutierrez Gonzalez, 25, of Michoacán, Mexico, was sentenced to 50 months in prison. On Dec. 17, 2018, Armando Mayorga Garcia pleaded guilty and is scheduled to be sentenced on March 30.
Mexican National Pleads Guilty to Drug Conspiracy in MaderaRead the Press Release
FRESNO, Calif. — Francisco Alcantar-Miranda, aka Paquin, 31, of Mexico, pleaded guilty today to conspiring to manufacture, to distribute and to possess with intent to distribute methamphetamine, cocaine, heroin, and marijuana, U.S. Attorney McGregor W. Scott announced.
According to the plea agreement, Alcantar assisted in manufacturing methamphetamine and storing large quantities of other drugs at an unoccupied house in Madera. At the end of Jan. 2019, detectives executed a search warrant at the house and found Alcantar with co‑defendants 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. As part of the plea agreement, Alcantar will forfeit a handgun and approximately $18,000 in cash, which were found during the search of the house.
This case is the product of an investigation by Madera County Sheriff’s Office Narcotic Enforcement Team (MADNET)and High Intensity Drug Trafficking Area (HIDTA) High Impact Investigation Team (HITT), consisting of agents of Homeland Security Investigations; California Department of Justice; California Highway Patrol; Fresno, Tulare, and King Counties Sheriffs’ Offices; and the Fresno Police Department. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
Alcantar is scheduled for sentencing on May 15. He faces a mandatory minimum statutory penalty of 10 years in prison, a maximum statutory penalty of life in prison, and a fine 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.
Marrot-Garcia and Monge-Ponce are scheduled for a jury trial on June 16. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Fresno Man Pleads Guilty to Credit Card Fraud and Possession of Stolen MailRead the Press Release
FRESNO, Calif. — On Friday, Feb. 21, Justin Deger, 28, of Fresno, pleaded guilty to two counts of access device fraud and one count of possession of stolen mail, U.S. Attorney McGregor W. Scott announced.
According to the plea agreement, from Dec. 5, 2018, through March 28, 2019, Deger broke into mail boxes at various Fresno area residences. He stole over 2,000 pieces of mail, including 26 credit cards or account access devices. He subsequently activated some of those devices and made unauthorized purchases and cash withdrawals at retailers and casinos totaling thousands of dollars. As part of the plea agreement, Deger agreed to pay full restitution to the victims and forfeiture.
This case is 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 are prosecuting the case.
Deger is scheduled to be sentenced on May 22. He faces a maximum penalty of 10 years in prison and a $250,000 fine for the access device fraud counts, and a maximum penalty of five years in prison and a $250,000 fine for the stolen mail count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
West Sacramento Man Indicted for Transporting 85 Pounds of MethamphetamineRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Simeon Hernandez-Ortiz, 24, of West Sacramento, charging him with possessing methamphetamine with the intent to distribute it, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Feb. 6, Hernandez-Ortiz was stopped by a law enforcement officer while traveling north on I-5 in Stanislaus County. Based upon the officer’s subsequent investigation, the vehicle was searched and the officer found 85 pounds of methamphetamine concealed in the trunk.
This case is the product of an investigation by the Drug Enforcement Administration and the California Highway Patrol, Stanislaus Investigative Unit. Assistant U.S. Attorney Kathleen A. Servatius is prosecuting the case.
If convicted, Hernandez faces a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Three Indicted for Conspiring to Traffic 20,000 Fentanyl Pills and 20 Pounds of MethamphetamineRead the Press Release
FRESNO, Calif. — Tirso Garcia-Valdez, 27, of Mexico, Misael Garcia-Carranza, 23, of Mexico, and Brenda Carmona-Venegas, 37, of Los Angeles, were indicted Thursday for conspiring and possessing with intent to distribute approximately 20,000 counterfeit oxycodone pills laced with fentanyl and approximately 20 pounds of methamphetamine, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Jan. 9, in Kern County, Garcia-Valdez sold approximately 300 fentanyl-laced counterfeit oxycodone pills. Garcia-Carranza drove Garcia Valdez to the deal and was present in the vehicle as the deal occurred. On Jan. 30, Garcia-Valdez sold approximately 2,000 fentanyl-laced counterfeit oxycodone pills. Garcia-Carranza drove Garcia-Valdez to this deal. On Feb. 13, Garcia-Valdez, Garcia-Carranza and Carmona-Valdez conspired to possess with the intent to distribute approximately 20,000 fentanyl-laced counterfeit oxycodone pills and approximately 20 pounds of methamphetamine, which were seized by law enforcement.
This case is the product of an investigation by the Drug Enforcement Administration and the Kern County Sheriff’s Office. Assistant U.S. Attorney Angela Scott is prosecuting the case.
If convicted, defendants face a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Sailor from Lemoore Charged with Child Sexual Exploitation OffensesRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Christopher Jeorge Millican, 26, of Lemoore, charging him with one count of sexual exploitation of children and one count of receipt of child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, on July 27, 2018, a parent contacted Snapchat and reported that someone, later identified as Millican, had been “flirting” with an 11-year-old girl and soliciting pictures of and location information for the child. Snapchat reviewed Millican’s account and discovered that he had been soliciting several minors for sexually explicit content.
This case is the product of an investigation by the Central Valley Internet Crimes Against Children Task Force, specifically the U.S. Naval Criminal Investigative Service, the Hanford Police Department, the Fresno office of Homeland Security Investigations, and several local police agencies across the United States. Assistant U.S. Attorney David Gappa is prosecuting the case.
If convicted, Millican faces a mandatory minimum prison term of 15 years and a maximum of 30 years for the sexual exploitation charge, a mandatory minimum prison term of five years and a maximum of 20 years for receipt of child pornography, and a fine up to $250,000 for each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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.
One Indicted, One Sentenced for Firearms Offenses in Sacramento and FairfieldRead the Press Release
SACRAMENTO, Calif. — As part the U.S. Attorney’s Office for the Eastern District of California’s strategy to reduce violent crime by focusing on firearms prosecutions, U.S. Attorney McGregor W. Scott announced an indictment and a recent sentencing involving illegal firearms offenses.
Tommy Walker, 43, of Sacramento, was charged today with being a felon in possession of a firearm. According to court documents, on Nov. 22, 2019, law enforcement officers found a Jimenez Arms .380 semi-automatic handgun in Walker’s bedroom. Walker has several prior felony convictions—including four prior felon-in-possession-of-a-firearm convictions—which prohibit him from possessing a firearm. This case is the product of an investigation by the Federal Bureau of Investigation, the Sacramento County District Attorney’s Office, and the Sacramento Police Department. Assistant U.S. Attorney Aaron D. Pennekamp is prosecuting the case. (2:20-cr-039)
If convicted, Walker faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Jedidiah Nathaniel Smith, 40, of Fairfield, was sentenced on Feb. 10 to two years and six months in prison for possessing a firearm as a felon. Smith pleaded guilty in April 2019. According to court records, on Dec. 5, 2018, law enforcement officers stopped a car Smith was traveling in for having an expired registration. After the officers spoke with Smith, they learned that he had four outstanding warrants for his arrest. The officers asked Smith to get out of the car, and he complied, but when he got out of the car, Smith was carrying a loaded revolver in his waistband. Smith cannot lawfully possess firearms or ammunition because he has previously been convicted of five felony offenses. This case was the product of an investigation by the Suisun City Police Department, with special assistance from the FBI’s Solano County Violent Crimes Task Force and the Solano County District Attorney’s Office. (2:19-cr-039)
These cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
The cases are also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
Fresno Man Charged with Distribution of Child PornographyRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Gary Lee Briggs, 63, of Fresno, charging him with receipt and distribution of child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Jan. 3, a concerned citizen reported to the police that Briggs appeared to be trying to lure an 8-year-old boy into Briggs’s apartment in Fresno. When officers confronted Briggs, he reported that he planned to test his ability to withstand urges that attracted him to the boy. Briggs also admitted that Facebook recently had terminated his account for having transmitted sexually explicit material. Facebook separately had notified the National Center for Missing & Exploited Children that Briggs’s Facebook account had been used to transmit sexually explicit images of minors from August through December 2019.
This case is the product of an investigation by the Central Valley Internet Crimes Against Children Task Force, specifically the Fresno Police Department, the Fresno County Sheriff’s Office, and Homeland Security Investigations. Assistant U.S. Attorney David Gappa is prosecuting the case.
If convicted, Briggs faces a maximum statutory penalty of 20 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.
Former Vallejo Elementary School Teacher Sentenced to 10 Years in Prison for Attempted Enticement of a MinorRead the Press Release
SACRAMENTO, Calif. — Andrew Stephen Lund, 38, of Vallejo, was sentenced today by United States District Judge Troy L. Nunley to 10 years in prison for attempted online enticement of a minor to engage in sexual activity, U.S. Attorney McGregor W. Scott announced.
According to court documents, in April 2018, Lund engaged in online sexual chats with a person whom he believed to be a 14-year-old girl, but who was in fact an undercover agent. Lund was an elementary school teacher in Vallejo at the time he attempted to entice the minor.
“Teachers hold a special position of trust in our communities, and we are committed to keeping our children safe by investigating and prosecuting those who try to sexually exploit them,” said U.S. Attorney Scott.
“Our communities expect their children to be kept safe from the sexual exploitation by online predators. Homeland Security Investigations will use every tool available to aggressively track down anyone who seeks to harm children,” said Tatum King, the Special Agent in Charge of the Homeland Security Investigations San Francisco Field Office.
This case was the product of an investigation by the Homeland Security Investigations and the Silicon Valley Internet Crimes Against Children Task Force. Assistant U.S. Attorney Amy Schuller Hitchcock is prosecuting 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.
Turlock Drug Dealers Sentenced to Prison for Methamphetamine DistributionRead the Press Release
FRESNO, Calif. — Turlock residents Joseph Wayne Attaway, 33, and Edmond Hormozi, 51, were sentenced today by U.S. District Judge Dale A. Drozd for methamphetamine trafficking, U.S. Attorney McGregor W. Scott announced.
Attaway was sentenced to 17 years in prison and Hormozi was sentenced to 10 and a half years in prison. On Oct. 31, 2019, a federal jury found Attaway and Hormozi guilty of one count of conspiracy to distribute and possess with intent to distribute methamphetamine and two counts of distribution of methamphetamine.
According to evidence presented at trial, Attaway and Hormozi were a source of methamphetamine supply for co-defendant Kasper Kasperian, 52, of Modesto, California. A confidential source working with the FBI purchased approximately 4 pounds of methamphetamine from Kasperian on two occasions. Agents saw Attaway and Hormozi meet with Kasperian immediately before and after each drug deal. Recorded meetings and intercepted communications revealed that Attaway and Hormozi would deliver several pounds of methamphetamine to Kasperian, and after Kasperian sold the drugs to the confidential source, Attaway and Hormozi would immediately collect the money from Kasperian.
Kasperian pleaded guilty and is scheduled to be sentenced on May 5.
This case is the product of an investigation by the Federal Bureau of Investigation, the Central Valley Gang Impact Team (CVGIT), the Modesto Police Department, the Turlock Police Department, the California Highway Patrol, the Stanislaus County Sheriff’s Office, and Stanislaus County Probation. Assistant U.S. Attorneys Melanie L. Alsworth and Geoffrey D. Wilson 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.
Bakersfield Man Pleads Guilty to Conspiring to Structure FundsRead the Press Release
FRESNO, Calif. — Majed Bashir Akroush, aka Mike Akroush, aka Magic Mike, 52, of Bakersfield, pleaded guilty today to conspiring to structure at least half a million dollars in cash withdrawals from his bank accounts, U.S. Attorney McGregor W. Scott announced.
According to court documents, Akroush structured funds in amounts just under $10,000 in order to evade the currency transaction report filing requirements. As part of the plea agreement, he agreed to the forfeiture of the following assets derived from his structuring activity: real property in Bakersfield, approximately $109,555 seized from five different bank accounts, approximately $199,181 in cash seized from his residence, approximately $233,460 in cash seized from two safe deposit boxes, and a 1962 Chevrolet Impala.
According to court documents, during the time of the structured cash withdrawals, Akroush owned Magic Mans Wholesale Inc., an internet business that distributed synthetic marijuana, commonly known as spice or incense. Magic Mans Wholesale later morphed into other spice businesses known as Blue Whale Wholesale and World of Inc. Wholesale. Federal agents successfully seized and shut down these websites and forfeited the domain names.
Akroush is scheduled for sentencing on May 18, 2020 before U.S. District Judge Dale A. Drozd. Akroush faces a maximum statutory penalty of five years in prison and a fine of up to twice the gross gain obtained by him. 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 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 County Man Indictment for Large-Scale Marijuana CultivationRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Diego Garcia Lua, 61, of Orange Cove, charging him with cultivating marijuana and maintaining a drug-involved premises, U.S. Attorney McGregor W. Scott announced.
According to court documents, Lua used his orange orchard to disguise the presence of approximately 6,305 marijuana plants he was growing there.
This case is the product of an investigation by the Tulare County Sheriff’s Office and the Drug Enforcement Administration. Assistant U.S. Attorneys Kathleen A. Servatius and Katherine E. Schuh are prosecuting the case.
If convicted, Lua faces a maximum statutory penalty of life in prison and a $10 million fine on count one and a 20-year maximum penalty and $250,000 fine on count two. 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 Man Convicted of Sex Trafficking of a Child and Sex Trafficking by Force, Fraud, or CoercionRead the Press Release
SACRAMENTO, Calif. — After a six-day trial, Jaquorey Rashawn Carter, 24, of Sacramento, was found guilty today of sex trafficking of a child, and sex trafficking by force, fraud, or coercion, U.S. Attorney McGregor W. Scott announced.
“The defendant targeted vulnerable young women and underage girls to work as prostitutes for him on the streets of California cities and inside seedy motels,” U.S. Attorney Scott stated. “Thanks to the thorough work of the investigating agencies, the defendant’s years-long pimping operation has come to an end. For the next several years, he will be in a place where he cannot harm young females.”
“Traffickers see their victims as mere commodities to be controlled and sold. This case illustrates the cycle of violence and exploitation victims often face and traffickers’ brazen disregard for the law,” said FBI Sacramento Field Office Special Agent in Charge Sean Ragan. “The FBI works with its local and state partners to ensure criminals face justice for their actions and victims of trafficking are connected with the support they need to move forward with their lives.”
“Sex trafficking is a monstrous crime. It has no place in our society, let alone near our children,” said California Attorney General Xavier Becerra. “Those who profit from the detestable exploitation of human beings must pay a high price. We owe many thanks to the multi-jurisdictional law enforcement team that successfully investigated and prosecuted this case.”
According to evidence presented at trial, between 2013 and October 2018, Carter targeted vulnerable young women and underage girls to work as prostitutes for him. Carter used a consistent pattern of behavior in recruiting and keeping close association to the women and girls who worked for his financial benefit. As part of Carter’s pimping operation, he put girls and women in motel rooms and had them engage in prostitution in Sacramento, Stockton, Oakland, Sunnyvale, and Santa Ana, in order to make money from their prostitution activity.
Starting in 2013, Carter recruited two 14-year-olds to work as prostitutes for him in Oakland. Ultimately, the girls were returned home to Sacramento, but Carter continued to transport, harbor and maintain one of the underage girls in connection with prostitution activity through 2018.
Evidence presented at trial also showed that Carter has been arrested or contacted by law enforcement on multiple occasions on the streets or in high-crime areas while he was transporting his victims to or from his illegal business opportunities. In September 2018, a federal judge authorized the wiretap of Carter’s cellphone. Sacramento-based task force agents then intercepted calls demonstrating that Carter was actively recruiting, harboring, transporting, and managing several women engaged in prostitution throughout California. During the calls, Carter discussed his pimping operation and his involvement in violence, and he threaten to physically beat one of his victims.
Task force agents identified at least five different women that Carter was either recruiting or actively managing in ongoing prostitution. On Sept. 19, 2018, law enforcement intervened during an intercepted call when Carter described his plan to hurt a woman. At the time of the call, Carter was driving to Oakland with four women in his car. A California Highway Patrol officer conducted a traffic stop and arrested Carter for falsely impersonating someone. A short time later, while out on bail, Carter assisted a fellow pimp who savagely beat a woman inside a car. The victim tried to exit the car, but Carter stood outside the car and attempted to prevent her from escaping.
This case is the product of an investigation by the Federal Bureau of Investigation, the California Department of Justice’s Special Operations Unit, and the Sacramento Police Department. The California Highway Patrol, Sacramento Sheriff’s Department, and the Sacramento District Attorney’s Office assisted in the investigation. Assistant U.S. Attorneys Brian A. Fogerty and Jason Hitt are prosecuting the case.
Carter is scheduled to be sentenced on May 4, 2020, by U.S. District Judge William B. Shubb. Carter faces a mandatory minimum sentence of 10 years in prison and a maximum statutory penalty of life in prison for sex trafficking of a child. Carter also faces a mandatory minimum sentence of 15 years in prison and a maximum statutory penalty of life in prison for sex trafficking by force, fraud, or coercion. Both counts of conviction carry a maximum fine of $250,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Mexican National Sentenced to 9 Years in Prison for Conspiracy to Distribute Methamphetamine in Tehama CountyRead the Press Release
SACRAMENTO, Calif. — Miguel Alvarez Cervantes, 55, a Mexican national living in Los Molinos, was sentenced today by U.S. District Judge Troy L. Nunley, to nine years in prison for conspiracy to distribute methamphetamine, United States Attorney McGregor W. Scott announced.
Cervantes pleaded guilty in July 2019. According to court records, federal agents began investigating Cervantes and co-defendant Maria Cervantes-Echevarria, in 2017 for suspected methamphetamine trafficking in Shasta and Tehama Counties. In August and September 2018, an undercover agent purchased over 3 pounds of methamphetamine from Cervantes during three controlled buys. In addition, when law enforcement executed a search warrant at Cervantes-Echevarria’s and co-defendant Marta Jiminez Lopez’s home in September 2018, they seized over 34 pounds of methamphetamine, 3 pounds of heroin, three firearms, and over $44,000 in cash.
Cervantes-Echevarria and Lopez, both Mexican nationals living in Los Molinos, previously pleaded guilty to conspiracy to distribute methamphetamine. They are scheduled to be sentenced in March 2020.
This case is the product of an investigation by the Drug Enforcement Administration, the Bureau of Land Management, the Tehama Interagency Drug Enforcement (TIDE) task force, and the Siskiyou Unified Major Investigations Team (SUMIT), with special assistance from the Federal Bureau of Investigation and the California Highway Patrol.
Five Indicted for Firearms Offenses in Sacramento, Fairfield, Stockton, and FresnoRead the Press Release
SACRAMENTO, Calif. — As part the U.S. Attorney’s Office for the Eastern District of California’s strategy to reduce violent crime by focusing on firearms prosecutions, U.S. Attorney McGregor W. Scott announced that a federal grand jury has returned indictments in the following cases involving illegal firearms offenses.
Andre Parker, 54, of Sacramento, was charged today with being a felon in possession of a firearm. According to court documents, on Dec. 29, 2019, law enforcement officers stopped a vehicle in which Parker was riding and found a Springfield XD .45-caliber handgun underneath Parker’s seat. Parker has several prior felony convictions—including prior felon-in-possession-of-a-firearm convictions—which prohibit him from possessing a firearm. This case is the product of an investigation by the Sacramento County District Attorney’s Office, the Sacramento Police Department, and the Federal Bureau of Investigation. Assistant U.S. Attorney Aaron D. Pennekamp is prosecuting the case.
Derick Louangamath, 30, of Sacramento, was charged today with being a felon in possession of a firearm. According to court documents, on Nov. 23, 2019, law enforcement officers stopped a vehicle that Louangamath was driving and found a Glock 26, along with loaded 10-, 15-, and 33-round magazines. Louangamath has several prior felony convictions—including prior felon-in-possession-of-a-firearm convictions—which prohibit him from possessing a firearm. This case is the product of an investigation by the Sacramento County District Attorney’s Office, the Sacramento Police Department, and the FBI. Assistant U.S. Attorney Aaron D. Pennekamp is prosecuting the case.
Hack Townsend Culling Jr., 27, of Fairfield, was charged on Feb. 6 with being a felon in possession of a firearm. According to court documents, in April 2019, law enforcement officers stopped Culling for various traffic violations. The officers searched Culling and his motorcycle based on Culling’s status on post-release community supervision and found a .25-caliber pistol in one of the saddle bags on Culling’s motorcycle. Culling cannot lawfully possess firearms or ammunition because he has previously been convicted of six felony offenses, five of the convictions are domestic violence 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.
Gabriel Mata, 25, of Fresno, was charged on Feb. 6 with being a felon in possession of a firearm. According to court documents, on Jan. 19, law enforcement officers discovered that Mata possessed a loaded Smith & Wesson M&P, .40-caliber, semi-automatic pistol. Mata has three prior felony convictions—including one prior felon-in-possession-of-a-firearm conviction—which prohibit him from possessing a firearm. This case is the product of an investigation by the FBI and the Fresno Police Department. Assistant U.S. Attorney Anthony Yim is prosecuting the case.
Lawrence Macken, 42, of Stockton, was charged on Jan. 24 with being a felon in possession of a firearm. According to court documents, on Dec. 12, 2019, law enforcement officers stopped Macken’s vehicle and found a Bersa Firestorm .380 semi-automatic handgun in the dash compartment near the driver’s seat. Macken has numerous prior felony convictions—including two felon-in-possession-of-a-firearm convictions, two assault convictions, and multiple vehicle-theft convictions—which prohibit him from possessing a firearm. This case is the product of an investigation by the San Joaquin County District Attorney’s Office, the Stockton Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Aaron D. Pennekamp is prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
These cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
The cases are 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.
Bakersfield and Florida Residents Charged with Conspiracy to Distribute MethamphetamineRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Fayth Shamariah Jones, 22, of Bakersfield; Jonte Deon Scott Jr., 23, of Port Richey, Florida; and Donald Conferlete Carney Jr., 22, of Tarpon Springs, Florida, charging all three defendants with conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine, U.S. Attorney McGregor W. Scott announced.
According to court documents, the defendants were traveling north on State Route 99 in Merced County when law enforcement officers attempted to stop the vehicle. The driver began driving at speeds reaching up to 120 miles per hour. After approximately 10 minutes, the officers cornered the vehicle in a cul-de-sac. A search of the vehicle revealed more than 24 kilograms of methamphetamine.
This case is the product of an investigation by the California Highway Patrol, the Merced Area Gang/Narcotics Enforcement Team (MAGNET), Homeland Security Investigations, and the Merced District Attorney’s Office. Assistant U.S. Attorney Michael W. Redding is prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Guilty Plea in Sacramento-based Scheme to Defraud the Social Security AdministrationRead the Press Release
SACRAMENTO, Calif. — Darron Dimitri Ross, 34, of Charlotte, North Carolina, pleaded guilty Monday to conspiracy to defraud and commit offenses against the United States, aggravated identity theft, and wire fraud, United States Attorney McGregor W. Scott announced.
According to court documents, between November 2015 and October 2018, Ross and co-defendants Eric Lemoyne Willis and Joshua Bilal George conspired to defraud the Social Security Administration (SSA). Willis worked as an SSA Operation Supervisor in Sacramento and Lodi and used his authority as an SSA employee to access the confidential records of numerous beneficiaries. These records contained personally identifiable information (PII), including names, addresses, social security numbers, birth dates, account numbers, family information, and benefit payment amounts. Willis gave this PII to Ross and George who contacted SSA field offices across the country and posed as the beneficiaries. Once Ross or George succeeded in convincing an SSA representative that he was the beneficiary, he then requested that the beneficiary’s direct deposit account be changed to one of the 44 accounts that Ross had opened. SSA then deposited benefit payments into the fraudulent accounts, and the conspirators would divide the proceeds amongst themselves.
At least 160 beneficiaries nationwide were targeted by these crimes, and the total fraud loss suffered by SSA has exceeded $500,000. Willis and Ross spent the proceeds of their crimes on, among other things, trips to Las Vegas and luxury items, including Rolex watches.
This case is the product of an investigation by the Social Security Administration – Office of the Inspector General and the Federal Bureau of Investigation. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
On June 17, 2019, Willis pleaded guilty to similar charges in this case. The charges against George are pending. They are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Ross is scheduled to appear before U.S. District Judge William B. Shubb for a status conference regarding sentencing on April 20. Ross faces a maximum statutory penalty of 27 years in prison and a $750,000 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.