Eastern District of California
Press releases recorded for this federal judicial district.
Third Conspirator Pleads Guilty to Participation in a Ponzi Scheme Involving $2.5B in Transactions and $1B in LossRead the Press Release
SACRAMENTO, Calif. — Robert A. Karmann, 53, of Clayton, pleaded guilty today to his participation in a massive fraud scheme involving a solar energy company in Benicia that defrauded investors of approximately $1 billion, U.S. Attorney McGregor W. Scott announced.
Those losses resulted from investment transactions in solar energy hardware valued at approximately $2.5 billion. Karmann is the third person to plead guilty to federal criminal charges relating to the fraud scheme since October.
According to court documents, between 2011 and 2018, the solar energy company manufactured mobile solar generator units (MSG), solar generators that were mounted on trailers. The company touted the versatility and environmental sustainability of the MSGs and claimed that they were used by cellphone companies to provide emergency power to cell towers in the case of a power failure. They were also claimed to be used to power lights at sporting and other events.
The company solicited investors by claiming that there were very favorable federal tax benefits associated with investments in alternative energy. The company structured the transactions in order to maximize the tax benefits to the investors. Investors would buy the MSGs without ever taking possession of them. They would pay a percentage of the sales price and finance the balance with the company. Then the investors would lease the MSGs back to the company, which in turn leased them to third parties. A portion of the lease revenue would be used to pay the investors’ debts to the company and to the investors. The third‑party leases, however, generated little income and the company paid early investors with funds contributed by later investors.
According to court documents, Karmann, a certified public accountant, joined the company in 2014 and became its Chief Financial Officer (CFO). Karmann and his co-conspirators used fraudulent financial statements and other false information to hide from investors the company’s use of later investor payments to pay financial obligations the company made to earlier investors—in a classic Ponzi scheme. In his role as CFO, Karmann managed and directed the periodic transfers of new investor money to pay the company’s obligations to existing investors. Karmann also disseminated false financial and other information to investors to mislead them about material aspects of the MSG investments. Karmann’s criminal conduct was intended to create the false impression for investors that the MSG investments were operating as promised, which helped lull existing investors, lured prospective investors, and caused investors to seek more than $1 billion in tax benefits from the Internal Revenue Service to which they were not entitled. Karmann also pleaded guilty to securities violations associated with the same investment fraud scheme.
On Oct. 22, Joseph W. Bayliss, 44, of Martinez, and Ronald J. Roach, of Walnut Creek, each pleaded guilty to related charges. The investigation into the fraud is 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.
Karmann is scheduled to be sentenced by U.S. District Judge John A. Mendez on March 31, 2020. Karmann faces a maximum statutory penalty of 15 years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Six Indicted for Claiming Benefits for Properties Destroyed in Paradise Camp Fire that Were Not Their True ResidencesRead the Press Release
SACRAMENTO, Calif. — On Thursday, Dec. 12, a federal jury returned indictments against six defendants who made false claims for benefits in connection with the 2018 Camp Fire and received funds from FEMA to compensate for their losses, U.S. Attorney McGregor W. Scott announced.
U.S. Attorney Scott stated: “In 2018, in the aftermath of the Carr Fire and Camp Fire, we encouraged the public to report any suspected fraudulent activity and promised to aggressively pursue and prosecute fraud and abuse. Today we are announcing federal charges against individuals who abused the goodwill of the taxpayers and claimed losses that they had not incurred. These investigations are ongoing, and we are not done holding people accountable for fraudulent claims.”
Amanda Thandi, Special Agent in Charge Department of Homeland Security, OIG, Office of Investigations, of the San Diego Field Office stated: “The Department of Homeland Security (DHS), Office of Inspector General (OIG) remains committed to eradicating these and other cases of disaster fraud. As a result of the recent indictments, these individuals will no longer benefit from illegally manipulating the programs designed for assessing the critical needs, home repairs, replacement of personal property, and shelter for persons displaced from their residences due to the California wildfires.”
“Disaster fraud re-victimizes communities devastated physically and emotionally by natural disaster by diverting federal funds from communities and stealing from the victims with significant needs. This is why the FBI is committed to working closely with our local, state, and federal partners to identify and investigate allegations of fraud related to disaster recovery and we want people to both protect themselves and report fraud as it is discovered,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “Together, we continue to aggressively pursue those who prey upon innocent victims of natural disasters and the people who want to help them.”
On Nov. 8, 2018, the “Camp Fire” started in Butte County and burned for approximately 18 days. It burned approximately 153,336 acres, destroyed approximately 13,972 residential structures and caused approximately 85 deaths. The Camp Fire is known as the deadliest and most destructive wildfire in California history. On Nov. 12, 2018, the President declared that a major disaster existed in California, and as a result of this declaration, some residents of Butte County who were affected by the fire were eligible to apply for disaster assistance from FEMA.
FEMA provides Direct Housing Assistance to eligible applicants, such as a manufactured home or trailer for use as temporary housing. FEMA also may provide rental assistance to rent alternative housing accommodations. This assistance is available to eligible individuals whose primary residence was damaged or destroyed by the fire regardless of whether they own or rent the home. In certain circumstances, residents can also receive benefits to replace or repair personal property (including standard appliances, essential clothing, standard room furnishing, and essential tools) damaged or destroyed due to a disaster.
The following defendants have been charged with one count of fraud in connection with a major disaster or emergency benefit. According to the charges, they each falsely claimed that a residence in Paradise that had been destroyed in the fire was their primary residence.
Deborah Laughlin, 64, falsely claimed 7209 Skyway, Apt 18 in Paradise as her primary residence and received $9,674.70 in benefits and a FEMA trailer. According to court documents, on Nov. 3, 2018, Laughlin was arrested at her residence in Willows and remained in jail until Nov. 13, 2018, which was several days after the Camp Fire began.
Evan Palmer, 30, of Chico, falsely claimed 4440 Clark Road, #1 in Paradise as his primary residence and received $26,490.67 for his travel trailer that was destroyed in the fire. His primary residence, however, was in Chico.
Kristy Marie Tapp, 34, falsely claimed 5152 Pentz Road in Paradise as her primary residence and received $3,263.91 in benefits. She filed her application for assistance after the Butte County Sheriff had issued a public notification identifying a couple, aged 67 and 70, as deceased victims of the fire. Tapp falsely claimed they were her landlords.
Patrick Prigmore, 54, falsely claimed 1040 Pearson Road in Paradise as his primary residence and received $12,837.71 in benefits and a FEMA trailer.
Two indictments remain sealed.
These cases are the result of investigations by the Department of Homeland Security, Office of Investigations and the Federal Bureau of Investigation. Assistant U.S. Attorney Shelley Weger is prosecuting the cases.
If convicted, the defendants face up to 30 years in prison and a fine of up to $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
The U.S. Department of Justice established the National Center for Disaster Fraud (NCDF) to investigate, prosecute, and deter fraud in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region. Its mission has expanded to include suspected fraud from any natural or manmade disaster. More than 20 federal, state, and local agencies participate in the NCDF, which allows the center to act as a centralized clearinghouse of information related to disaster relief fraud.
California residents are encouraged to watch for and report any suspicious activity or potential fraud from scam artists, identity thieves, and other criminals who may try to prey on vulnerable survivors of this disaster. Anyone with knowledge of fraud, waste, or abuse may call the Federal Emergency Management Agency’s (FEMA) Disaster Fraud Hotline at (866) 720-5721 or report it to the Federal Trade Commission at ftccomplaintassistant.gov. You may also send an email to [email protected].
Tulare County Man Sentenced to 2.5 Years in Prison for Drug Trafficking and Illegal Possession of a Machine GunRead the Press Release
FRESNO, Calif. — Francisco Fernandez, 26, of Earlimart, was sentenced today to two and a half years in prison for possessing with the intent to distribute cocaine and possession of an unregistered firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, a search warrant was executed at Fernandez’s residence in April 2019. During the search, federal agents found and seized scales, drug paraphernalia and cocaine. Fernandez admitted to possessing the cocaine for sale to others. Apart from the narcotics, federal agents also found “auto-sear” devices that are used to convert semi-automatic firearms to fire as fully automatic machineguns. In a subsequent search of Fernandez’s storage unit, agents located and seized several firearms, which included a Glock handgun that Fernandez had converted into a machine gun.
Tulare County District Attorney Tim Ware stated, “We are extremely grateful for this partnership that takes violent offenders away from the communities they victimized. Tulare County streets are safer because of Project Safe Neighborhoods.”
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations (HSI), and the Tulare County District Attorney’s Office. Assistant U.S. Attorney Thomas Newman is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Former Fresno Resident Sentenced to 10 Years in Prison for Receipt and Distribution of Child PornographyRead the Press Release
FRESNO, Calif. — Forrest Awbrey, 29, formerly of Fresno, was sentenced today to 10 years in prison for receipt and distribution of child pornography, U.S. Attorney McGregor W. Scott announced.
The sentence imposed includes a lifetime term of supervised release during which, Awbrey’s access to minors, computers, and the internet will be restricted. He will also be required to register as a sex offender. A hearing has been scheduled for March 13, 2020, to address restitution to victims.
According to a criminal complaint, Awbrey was detected by law enforcement investigators when he was sharing numerous child pornography files on a BitTorrent file-sharing network from August through November 2016. He admitted to investigating agents that he had used file‑sharing programs for several years to obtain child pornography. He also admitted that he had attempted to make surreptitious video recordings of females using bathrooms in his home and at his church and that he had unsuccessfully attempted to take photos of young girls by holding a camera underneath their skirts.
This case was the product of an investigation by the FBI. Assistant U.S. Attorney David Gappa prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Ceres Gamecock Breeder Indicted on Animal Cruelty ChargesRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment on Thursday, Dec. 12 against Joseph D. Sanford, 72, of Ceres, charging him with offenses involving cockfighting, U.S. Attorney McGregor W. Scott announced.
Sanford was arrested at his place of business this morning and will be arraigned in Fresno at 2:00 p.m. today.
According to court documents, Sanford is charged with conspiring to violate the Animal Welfare Act, unlawfully possessing animals for an animal fighting venture, and unlawfully selling animals for an animal fighting venture. The indictment seeks the forfeiture of thousands of game fowl at his business, Joe Sanford Gamefarm.
According to court documents, Sanford is the owner and operator of Joe Sanford Gamefarm, a 10.26 acre property in Ceres, where he breeds and sells gamecocks for cockfighting. Sanford also fights his own roosters. Following an undercover purchase of a trio of fighting birds, law enforcement officers searched Joe Sanford Gamefarm, where Sanford resides, and found a large cockfighting enterprise consisting of 2,956 game fowl. It is alleged in the indictment that Sanford was involved in the interstate shipments of game fowl. It is also alleged that Sanford acquired and maintained medical equipment, such as scalpels, syringes, thermometers, and medications for conditioning roosters and surgically altering them by removing their wattles, combs, spurs and other body parts.
This case is the product of an investigation by the U.S. Department of Agriculture, Office of Inspector General (USDA-OIG); the USDA Animal and Plant Health Inspection Service; the IRS Criminal Investigation; the U.S. Marshal Service; Homeland Security Investigations; the U.S. Forest Service; the Humane Society of the United States; the Stanislaus County Sheriff’s Office; the Placer County Animal Services, and the El Dorado County Animal Services. The Environmental Crimes Section of the U.S. Department of Justice also lent assistance. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
If convicted, Sanford faces a maximum statutory penalty of five years in prison and a $250,000 fine as to 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.
Carmichael Man Indicted for Sexually Exploiting MinorsRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment Thursday, Dec. 12 against Christopher Espinoza, 27, of Carmichael, charging him with two counts of sexual exploitation of a minor and one count of possession of child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, in 2018, Espinoza sexually exploited two minor victims, and on Jan. 11, 2019, he was found in possession of several electronic devices that contained child pornography.
Espinoza was arrested and is currently in custody. On Dec. 13, he was arraigned and entered a plea of not guilty.
This case is the product of an investigation by the Internet Crimes Against Children Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Office with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant U.S. Attorney Roger Yang is prosecuting the case.
If convicted, Espinoza faces a maximum statutory penalty of 30 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Jury Convicts Former Fresno IRS Employee of Wire Fraud, Aggravated Identity Theft, and Tax FraudRead the Press Release
FRESNO, Calif. — On Thursday, a federal jury convicted Marcela Heredia, 46, of Riverside, of seven counts of wire fraud, four counts of aggravated identity theft, and one count of making a false tax return, U.S. Attorney McGregor W. Scott announced.
According to court documents and evidence introduced at trial, Heredia worked at the Fresno Economic Opportunities Commission’s Transitional Living Center, which houses at-risk youth, until 2014. Heredia also worked at the IRS as a Tax Examiner between 2008 and 2014. While working at the Transitional Living Center, Heredia stole residents’ personal identifying information and filed numerous tax returns that included false wage and withholding information, false educational expenses, and other false entries. Heredia directed the refunds for those returns to her personal bank account, spending the money on various personal expenses. Heredia failed to report any of the refund money she directed into her account on her 2011 tax return.
“Heredia misused her position of trust as a Youth Care Specialist to feed her greed by stealing the identities of the young homeless adults she cared for and using those identities to file fraudulent tax returns,” said Kareem Carter, Special Agent in Charge of the Oakland Field Office, IRS-CI. “Heredia then secured the fraudulent refunds and deposited them into her own bank account for her personal use. The IRS remains committed to the pursuit of identity theft and, together with our partners at the U.S. Attorney’s Office and Tax Inspector General for Tax Administration, we will hold those who engage in similar conduct accountable.”
This case is the product of an investigation by the U.S. Department of the Treasury Inspector General for Tax Administration and IRS Criminal Investigation. Assistant U.S. Attorneys Laura D. Withers and Vincente A. Tennerelli are prosecuting this case.
Heredia is scheduled to be sentenced on March 27, 2020. She faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for wire fraud, a mandatory minimum of two years in prison to be served consecutive to any other sentence for aggravated identity theft, and up to three years in prison and a $250,000 fine for making a false tax return. 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.
Illegal Alien Residing in Sacramento Sentenced for Aggravated Identity Theft, Passport Fraud, and Voting by an AlienRead the Press Release
SACRAMENTO, Calif. — Today, U.S. District Judge John A. Mendez sentenced Gustavo Araujo Lerma, 64, a Sacramento resident, to three years and nine months in prison for aggravated identity theft, passport fraud, and voting by an alien, U.S. Attorney McGregor W. Scott announced.
“In 1992, Araujo Lerma began fraudulently using the identity of a living United States citizen. He used that identity to commit a long list of other crimes, lying to numerous local, state and federal agencies, and abusing government programs,” U.S. Attorney Scott stated. “Today’s sentence serves to protect the public’s confidence in the immigration system, passport security, and federal elections and will deter others from perpetrating this type of fraud.”
“Today’s sentencing sends a strong message that the Diplomatic Security Service, in partnership with the U.S. Attorney’s office, is committed to successfully prosecuting those criminals who perpetrate U.S. passport fraud,” said Matthew Perlman, Special Agent in Charge of DSS’s San Francisco Field Office.
According to court documents and evidence presented at trial, Araujo Lerma was born in Mexico in 1955. In the early 1990s he acquired and began fraudulently using the identity of a United States citizen named Hiram Velez. Araujo Lerma unlawfully obtained U.S. passports with the stolen identity and used the passports to fly back and forth to his hometown in Leon, Mexico. He lied on immigration applications to obtain legal permanent resident status and eventually United States citizenship for his Mexico-born wife and two children. In addition, he voted in numerous federal elections over the past 20 years. After a three-day trial, a jury convicted Araujo Lerma on all counts.
This case was the product of an investigation by the U.S. Department of State’s Diplomatic Security Service. Assistant U.S. Attorneys Katherine T. Lydon and Shea J. Kenny prosecuted the case.
Former EDD Employee Pleads Guilty to Unemployment Benefits Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Pamela Emanuel, 59, of San Jose, pleaded guilty today for her role in a scheme to defraud the state of California by filing false unemployment insurance claims, U.S. Attorney McGregor W. Scott announced.
Emanuel pleaded guilty to mail fraud and aggravated identity theft. According to court documents, Emanuel worked as a tax compliance representative for the California Employment Development Department (EDD) and had access to the personal identifying information of workers throughout California. Between July 22, 2015, and July 14, 2016, Emanuel and her co-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.
“Pamela Emanuel stole information from the Employment Development Department database, thereby violating the public trust afforded to her as a California government employee. The stolen information was then used in a conspiracy to file fraudulent unemployment insurance claims. We will continue to work with our federal and state law enforcement partners to safeguard unemployment compensation benefits programs for those who need it,” said Quentin Heiden, Special Agent-in-Charge of the U.S. Department of Labor Office of Inspector General, Los Angeles Region.
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.
Four other co-conspirators have pleaded guilty and have been sentenced in relation to this scheme. On Aug. 16, 2018, Brittany Maunakea, 30, was sentenced to two and a half years in prison and ordered to pay $139,071 in restitution. On Sept. 20, 2018, Sergio Doriante Sanchez Reyna, 26, was sentenced to four years and three months in prison and ordered to pay $436,091 in restitution. On Feb. 22, 2019, Gregory Lee, 57, of Antioch was sentenced to nine years in prison and ordered to pay $353,458 in restitution. On Sept. 19, Russell White III, 38, of San Jose, was sentenced to four years and three months in prison and ordered to pay $212,071 in restitution.
Emanuel is scheduled to be sentenced on March 19, 2020. She faces a maximum statutory penalty of 20 years in prison and a fine of up to $250,000 for mail fraud, and a mandatory consecutive sentence of two years in prison and a fine of up to $100,000 for aggravated identity theft. 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.
San Joaquin County Doctor Indicted for Prescribing Opioids to Patients Without a Medical NeedRead the Press Release
SACRAMENTO, Calif. — On Dec. 5, a federal grand jury brought a 14-count indictment against a physician, Edmund Kemprud, of Dublin, charging him with prescribing opioids to patients outside the usual course of professional practice and not for legitimate medical purpose, U.S. Attorney McGregor W. Scott announced.
According to court documents, Kemprud was a physician licensed to practice medicine in California and maintained a medical practice in Dublin and Tracy. On 14 occasions between Sept. 6, 2018 and March 13, 2019, Kemprud allegedly prescribed highly addictive, commonly abused prescription drugs, including Hydrocodone, Alprazolam, and Oxycodone – outside the usual course of professional practice and not for legitimate medical purpose. The controlled substances affect the central nervous system and may only be prescribed when medically required. Kemprud was arrested today and pleaded not guilty at his arraignment.
U.S. Attorney Scott stated: “Diversion of drugs with a legitimate purpose to those who abuse them or sell to abusers is a costly and dangerous enterprise. Fortunately, with the cooperative efforts of our state and local partners, we have the ability to track powerful prescription drugs and find those who attempt to divert them. The U.S. Attorney’s Office has made it a top priority to prosecute those who engage in prescription drug diversion.”
“Doctors who violate their position of trust must be held accountable,” said California Attorney General Xavier Becerra. “Prescription drug diversion and the resultant abuse has led to a public health crisis that affects communities and families across California and the nation. It takes all of us working together to combat this epidemic and heal our communities. Our office and special agents will continue to work with our federal, state, and local partners to investigate and prosecute bad actors. At the California Department of Justice, we stand ready to use the tools at our disposal to protect our communities.”
“Doctors take an oath to ‘first, do no harm.’ Prescribing powerful opiates without legitimate medical purpose violates that principle and the law. It places profits above patient welfare and the community suffers the consequences,” stated DEA Acting Special Agent in Charge William C. Fallin. “DEA and our counterparts will continue to work diligently to hold accountable those fueling the prescription drug crisis.”
“When doctors prescribe powerful and dangerous drugs for illegitimate purposes, the results can be deadly,” said Steven J. Ryan, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Working closely with our Federal and State law enforcement partners, we continue fighting to protect beneficiaries, government healthcare programs, and taxpayers picking up the bills.”
This case is the product of an investigation by the California Department of Justice, Bureau of Medi-Cal Fraud and Elder Abuse Drug Diversion Team, the Drug Enforcement Administration, and the Office of Inspector General for the United States Department of Health and Human Services. Assistant U.S. Attorney Vincenza Rabenn is prosecuting the case.
If convicted, Kemprud faces a maximum statutory penalty of 20 years in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Retired CHP Officer from Redding Charged with Receipt of Child PornographyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment on December 5, against Timothy Allen Horwath, 50, of Redding, charging him with receipt of child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, between Feb. 25 and Oct. 10, Horwath knowingly received visual depictions of children engaging in sexually explicit conduct. Horwath was arrested today at his residence and made his initial appearance before U.S. Magistrate Judge Allison Claire.
This case is the product of an investigation by the California Highway Patrol’s Computer Crime Investigation Unit, the Federal Bureau of Investigation, and the Sacramento Internet Crimes Against Children Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. Assistant U.S. Attorney Christina McCall is prosecuting the case.
If convicted, Horwath faces a maximum statutory penalty of 20 years in prison, a fine of up to $250,000, and restitution to the victims of the offense. 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.
Laboratory to Pay $26.67 Million to Settle Allegations of Kickbacks to PhysiciansRead the Press Release
SACRAMENTO, Calif. — Laboratory Boston Heart Diagnostics Corporation (Boston Heart), of Framingham, Massachusetts, has agreed to pay $26.67 million to resolve False Claims Act allegations involving payments for patient referrals in violation of the Anti-Kickback Statute and the Stark Law and claims otherwise improperly billed to federal health care programs for laboratory testing, U.S. Attorney McGregor W. Scott announced today.
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded programs. The Stark Law forbids a laboratory from billing Medicare and Medicaid for certain services referred by physicians that have a financial relationship with the laboratory. The Anti-Kickback Statute and the Stark Law are intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
The settlement resolves allegations that Boston Heart provided physician practices with in-office dieticians in exchange for physician referrals for laboratory testing. These allegations were originally made in a case filed in the Eastern District of California under the whistleblower, or qui tam, provision of the False Claims Act. The Act permits private parties to sue for fraud on behalf of the United States and to share in any recovery. The settlement also resolves allegations that Boston Heart directly or indirectly paid processing and handling fees and waived patient copayments and deductibles. These allegations were originally made in the District of Columbia under the Act. Whistleblowers Chris Riedel and Claudia Bradshaw will receive approximately $4.36 million of the settlement.
In addition, the settlement resolves allegations that Boston Heart conspired with others to pay doctors kickbacks disguised as investment returns and conspired with certain Texas hospitals and others to submit claims for outpatient laboratory testing for patients who were not hospital outpatients, in order to receive higher reimbursements from federal health care programs.
“This office will continue to take all appropriate action to prevent improper inducements that can corrupt the integrity of physician decision-making,” said U.S. Attorney Scott.
The civil settlement was the result of an investigation by the U.S. Attorney’s Offices for the Eastern District of California, the Eastern District of Texas, and the District of Columbia, along with the Commercial Litigation Branch of the Justice Department’s Civil Division, OIG-HHS, and DCIS. The two lawsuits are captioned United States ex rel. FBH1 LLC v. Boston Heart Diagnostics Corp., No. 17-cv-206 (E.D. Cal.) and United States ex rel. Riedel v. Boston Heart Diagnostics Corp., No. 12-cv-1423 (D.D.C.). Assistant U.S. Attorney Catherine J. Swann handled the Eastern District of California matter for the United States. The claims resolved by the settlement are allegations only and there has been no determination of liability.
Former Clovis Resident Sentenced to 10 Years in Prison for Receipt and Distribution of Child PornographyRead the Press Release
FRESNO, Calif. — Aric Matthew Salazar, 36, formerly of Clovis, was sentenced today to 10 years in prison, for receipt and distribution of child pornography, U.S. Attorney McGregor W. Scott announced.
According to a criminal complaint, Salazar was detected by law enforcement investigators when he was sharing numerous child pornography files on a BitTorrent file-sharing network in October 2016. He admitted to investigating agents that he had used file-sharing programs for several years to obtain child pornography. He admitted in a plea agreement that he had received and distributed more than 600 images of child pornography from at least July 2015 through July 2017. Some of the images were depictions of minors being subjected to violence or sadistic conduct.
The sentence imposed includes a term of supervised release of 15 years during which, Salazar’s access to minors, computers, and the internet will be restricted. He will also be required to register as a sex offender, pay restitution of $12,000 to five victims who filed claims, and pay penalty assessments totaling $5,100.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney David Gappa prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Sherman Oaks Man Pleads Guilty to Making False Statements to Grand JuryRead the Press Release
SACRAMENTO, Calif. — Raz Razla, 49, of Sherman Oaks, pleaded guilty last Friday to making false statements to the grand jury, U.S. Attorney McGregor W. Scott announced.
According to court documents, Razla testified falsely before a grand jury in the Eastern District of California on March 1, 2018, regarding his co-defendant, Yaniv Gohar, 36, formerly of Berkeley. Gohar had led an organization that installed and maintained video slot machines at businesses open to the public across Northern California, and he had also laundered the proceeds of his gambling business. Gohar was arrested on Dec. 8, 2017, released over the government’s objection, and escaped from the United States by charter jet.
According to court documents, Razla testified falsely that he had only learned of the charge against Gohar for conducting an illegal gambling enterprise after Razla received the subpoena to the grand jury. Razla’s false testimony was material to the grand jury’s investigation of whether Razla or his work colleagues had aided and abetted Gohar’s failure to appear or harbored or concealed him, as well as whether Razla or his work colleagues had known of the unlawful source of Gohar’s money when engaging in real estate transactions and attempted real estate transactions on his behalf.
This case is the product of an investigation by the Federal Bureau of Investigation and the California Department of Justice – Bureau of Gambling Control. Assistant U.S. Attorney Miriam R. Hinman is prosecuting the case. Assistance was provided by the U.S. Department of Justice’s Office of International Affairs and Israeli authorities.
Co-defendant, Orel Gohar, 29, also fled the United States in Dec. 2017 and remains at large. Anyone with information about his whereabouts should call the Federal Bureau of Investigation at (916) 746-7000. The charges against Orel Gohar are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Co-defendant Yaniv Gohar was extradited from Israel, pleaded guilty in September to conducting an illegal gambling business, money laundering, and failure to appear, and awaits sentencing. Co-defendant Eran Buhbut, 34, of Oakland, pleaded guilty in August to conducting an illegal gambling business and awaits sentencing. Co-defendants May Levy, 28, of Walnut Creek, Atir Dadon, 35, of Sherman Oaks, Bar Shani, 27, of San Francisco, and Adam Atari, 36, of Sherman Oaks, have pleaded guilty and have been sentenced.
Razla is scheduled to be sentenced on Feb. 28, 2020. Razla faces a maximum statutory penalty of five years in prison and a fine of up to $250,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Nevada Man Arrested in Yuba County Charged with Illegal Firearms PossessionRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment Thursday against Darrel Kieth Higginbotham, 53, of Fernley, Nevada, charging him with being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Feb. 28, Yuba County Sheriff deputies responded to a report of a prowler attempting to enter a home in Olivehurst. When deputies arrived, they found Higginbotham near the home. A pat-down of Higginbotham revealed a .45-caliber handgun in his jacket pocket that was cocked with the hammer back and loaded with one round in the chamber and seven in the magazine.
Higginbotham had been convicted previously of violent felonies and had a domestic violence restraining order against him. The convictions and the restraining order prohibit his possession of firearms under federal law.
In addition to the handgun, Higginbotham had 10 firearms, including two short-barreled AR-15 rifles, a shotgun, and multiple handguns in his truck. All of the firearms were loaded or had loaded ammunition magazines nearby.
The following day, March 1, after Higginbotham was released on bail, he visited a storage facility. After securing a search warrant, deputies searched Higginbotham’s unit and found 15 additional firearms, including another AR-15 rifle, three shotguns, and multiple handguns. Again, deputies found most of the firearms loaded.
This case is the product of an investigation by the Federal Bureau of Investigation and the Yuba County Sheriff’s Office. Assistant U.S. Attorney James Conolly is prosecuting the case.
If convicted, Higginbotham faces a maximum statutory penalty of 10 years in prison and a $250,000 fine on each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the 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.
Man Arrested in Vallejo Charged with Unlawful Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment Thursday against Reginald Smith, 39, charging him with possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking offense, U.S. Attorney McGregor W. Scott announced.
This case is the product of an investigation by the Vallejo Police Department and the Solano County District Attorney’s Office. Assistant U.S. Attorney Vincenza Rabenn is prosecuting the case.
If convicted of the possession with intent to distribute methamphetamine offense, Smith faces a mandatory minimum of five years in prison and a maximum statutory penalty of 40 years in prison and a fine of up to $5 million. If convicted of possession of a firearm in furtherance of drug trafficking charge, he faces a mandatory minimum of five years in prison and a maximum sentence of life in prison and up to a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Los Angeles Man Sentenced to 27 Years in Prison for Scheme to Defraud American Express and Account Holders NationwideRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Garland E. Burrell Jr. sentenced Ruslan Kirilyuk, 41, of Beverly Hills, to 27 years in prison for his involvement in an international credit card fraud scheme targeting card holders nationwide, U.S. Attorney McGregor W. Scott announced.
According to evidence presented at trial, between October 5, 2011, and March 5, 2014, Kirilyuk conspired with Mihran Melkonyan, 39, of Sacramento; Rouslan Akhmerov, 45, of Studio City; Alexandr Maslov, 38, of Sacramento, and others in a credit card billing scheme that involved creating approximately 71 fraudulent online companies established with the sole purpose of fraudulently charging approximately 119,000 stolen credit card numbers. In total, the members of the scheme billed the stolen credit card numbers for over $3.4 million in unauthorized charges.
As established at trial, to create the fraudulent companies, the members of the scheme obtained over 200 stolen report cards from the San Juan Unified School District in Sacramento. Those report cards had students’ personal identifying information on them such as names and social security numbers. Using that information, Kirilyuk and his associates created fraudulent companies with names designed to sound like real companies, such as “CVS Store,” “Walt Mart,” and “Chevran.”
Working with a hacker based in Moscow, they used those fraudulent companies to charge stolen American Express credit card account numbers. In order to transfer the stolen money, they used shell bank accounts held in the names of individuals whose identities had been stolen and former Russian J-1 visa holders. According to court documents, Kirilyuk has a history of corporate cyberintrusion dating back to at least 2003.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Michael D. Anderson prosecuted the case.
In an earlier trial, on February 15, 2017, Melkonyan was found guilty of all 24 counts of wire fraud and two counts of mail fraud charged against him related to the scheme. He was sentenced on January 4, 2019, to 19 years and two months in prison.
On December 15, 2014, Akhmerov pleaded guilty to one count of access device fraud for his participation in the scheme. He is set to be sentenced on December 13, 2019.
Maslov is pending trial with a status conference scheduled for January 31, 2020. The charges against him are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
12 Charged with Narcotics Trafficking OffensesRead the Press Release
FRESNO, Calif. — A federal grand jury recently returned a 13-count indictment against 12 individuals for drug trafficking offenses, U.S. Attorney McGregor W. Scott announced. The defendants are:
Carlos Javier Felix Lopez, 42, of Fresno,
David Michael Marin, 61, of Fresno,
Angel Delgadillo Sr., 62, of Fresno,
Ronal Van Warsinger, 35, of Fresno,
Demar Edward Marshall, 32, of Fresno,
Quintin Brown, 45, of Fresno,
Kenneth Lorenzo Pratt, 28, of Seattle, Washington
Armando Acosta Toro, 62, of Fresno,
Rodrigo Savalza, 54, of Salinas,
Jose Guadalupe Bojorquez, 40, of Fresno,
Monica Gutierrez, 37, of Mendota,
Julio Cesar Moreno Garcia, 42, of Hesperia.
According to court documents, Lopez was a large-scale broker and distributor of controlled substances operating in the Fresno area. Lopez utilized a network of drug trafficking associates throughout California (including in Fresno County, Los Angeles County, San Bernardino County, and Monterey County) and in Mexico to source, transport, and distribute controlled substances on his behalf.
Lopez conspired with two drug traffickers based in Mexicali, Mexico to supply him with kilogram quantities of narcotics for further distribution to his wholesale customers, including Marin, Toro, and Savalza, in Fresno County, Monterey County, and elsewhere. Lopez conspired with Gutierrez to store and distribute narcotics on his behalf in Fresno County and utilized Bojorquez to transport narcotics from Southern California to the Central Valley of California for further resale by Lopez. Moreno Garcia conspired with Lopez and one of the Mexican sources of supply to distribute narcotics to Gutierrez and Savalza.
Marin, a wholesale distributor of methamphetamine, heroin, cocaine, and prescription pain pills (including oxycodone), obtained narcotics from a variety of sources, including Lopez, Delgadillo, and Toro, and distributed them to drug dealers based in Fresno, Washington and elsewhere. Marin conspired with Warsinger and Marshall to distribute cocaine in Fresno, and conspired with Brown, Pratt, and others to distribute prescription pills, including Oxycodone, in Washington and elsewhere.
This case is the product of an investigation by the U.S. Drug Enforcement Administration and the Fresno Police Department’s Major Narcotics Unit with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, Homeland Security Investigations, Customs and Border Protection, the United States Marshals Service, the California Department of Justice HIT Team, the Kings County Sheriff’s Department, the San Bernardino Sheriff’s Department, the Salinas Police Department, and the El Monte Police Department. Assistant U.S. Attorney Jeffrey A. Spivak is prosecuting the case.
If convicted, the defendants face a range of maximum sentences, including up to life in prison. Several of the defendants also face a range of mandatory-minimum sentences ranging from between five to 10 years in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
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.
Oxnard Man Indicted for Stealing Mail Truck from Kern County Post OfficeRead the Press Release
FRESNO, Calif. — A federal grand jury returned an indictment today against Ryan James Taylor, 34, of Oxnard, charging him with burglary of a U.S. Post Office, mail theft, and theft of government property, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Aug. 26, 2018, Taylor forcibly broke into the Mojave Post Office in Kern County and stole mail that had been deposited at the post office as well as a U.S. Mail Truck.
This case is the product of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorneys Vincente Tennerelli and Joseph Barton are prosecuting the case.
If convicted, Taylor faces a maximum penalty of five years in prison and a $250,000 fine for each of the burglary and stolen mail charges, and 10 years in prison and a $250,000 fine for the stolen mail truck charge. Any sentence, however, will be determined at the discretion of the court after consideration of applicable statutory factors and the Federal Sentencing Guidelines. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Fentanyl Distribution Organization Disrupted in Kern CountyRead the Press Release
FRESNO, Calif. — A federal grand jury returned an eight-count indictment today against Bakersfield residents Wilfredo Medina-Perez, 31; Uriel Ivan Portillo, 33; and Rojelio “Roy” Garcia, 47, charging them with various drug trafficking crimes involving the distribution of fentanyl, U.S. Attorney McGregor W. Scott announced.
According to court documents, between Feb. 11 and Nov. 21, Medina-Perez sold more than 8,000 fentanyl pills and 1 pound of methamphetamine to an undercover officer. Portillo, who was working with Medina-Perez, delivered 5,000 fentanyl pills to the undercover officer. Garcia, obtained fentanyl from Medina-Perez with the intention of distributing the drug to his customers in the Bakersfield area.
This case is the product of an investigation by the Drug Enforcement Administration, the Bakersfield Police Department, and the Kern County Sheriff’s Office. Assistant U.S. Attorneys Melanie L. Alsworth and Vincente Tennerelli are prosecuting the case.
If convicted, Medina faces a maximum statutory penalty of life in prison and a fine of up to $10 million; Portillo faces a maximum statutory penalty of 40 years in prison and a fine of up to $5 million; and Garcia faces a maximum statutory penalty of 20 years in prison and a fine of up to $1 million. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Driving School Owner Sentenced to over 3 Years in Prison for Bribing DMV Employees to Issue Commercial Driver’s Licenses to Unqualified DriversRead the Press Release
SACRAMENTO, Calif. — Jagpal “Paul” Singh, 61; of Los Angeles, was sentenced today to three years and three months in prison for his participation in a scheme to bribe DMV employees to provide California commercial driver’s licenses (CDLs) to unqualified drivers, U.S. Attorney McGregor W. Scott announced.
On March 1, Singh pleaded guilty to conspiracy to commit bribery, to commit identity fraud, and to commit unauthorized use of a computer, and for identification document fraud. According to court documents, Singh paid bribes to two DMV employees, Lisa Terraciano and Kari Scattaglia, both of whom pleaded guilty. Terraciano was sentenced to three years and four months in prison, and Scattaglia was sentenced to two years and eight months in prison, for, in part, accessing and altering records in the DMV’s database in Sacramento for Singh’s students. Records were altered to show that applicants for CDLs had passed the required tests when, in truth, they had not done so, and in some cases had not even taken the tests. This caused the DMV to issue permits and completed CDLs despite the applicants not having taken or passed those tests.
This case is the product of an investigation by the California Department of Motor Vehicles, Office of Internal Affairs, the Federal Bureau of Investigation, the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE HSI), and the Department of Transportation, Office of Inspector General. Assistant U.S. Attorney Rosanne L. Rust is prosecuting the case.
Charges are pending against co-defendants Tajinder Singh, 34, driving school owner; Parminder Singh, 29, broker; and Shawana Denise Harris, 49, DMV employee at the Rancho Cucamonga DMV Office. They are schedule to go to trial on June 1, 2020. The charges are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt. If convicted, the defendants each faces a maximum statutory penalty of five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Visalia Man Pleads Guilty to Felony Theft in Kings Canyon National ParkRead the Press Release
FRESNO, Calif. — Dallas John Fonseca, 43, of Visalia, pleaded guilty today to felony theft in Kings Canyon National Park, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Feb. 9, someone who worked within Kings Canyon National Park gave a jewelry purse to the manager of the John Muir Lodge for safekeeping. The manager placed the purse inside a locked drawer. Sometime between Feb. 9 and March 11, Fonseca, who worked in the Lodge, stole the jewelry and a Rolex watch that was inside the purse. Fonseca was arrested after he was captured on surveillance footage selling the Rolex to a local pawn shop.
This case is the product of an investigation by the National Park Service. Assistant U.S. Attorney Joseph Barton is prosecuting the case.
Fonseca is scheduled to be sentenced before U.S. District Judge Dale A. Drozd on Feb. 24, 2020. Fonseca faces a maximum penalty of five years in prison and a fine of up to $250,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Calaveras County Man Pleads Guilty to Embezzling Housing Assistance Program FundsRead the Press Release
FRESNO, Calif. — Raymond Cawthorne, 57, of Valley Springs, pleaded guilty today to embezzlement of public funds, U.S. Attorney McGregor W. Scott announced.
According to court documents, between May 2015 and Oct. 2016, Cawthorne embezzled over $14,000 belonging to the Keep Your Home California (KYHC) Program. KYHC was a federally funded program launched in response to the 2008 financial crisis that provided eligible homeowners with temporary mortgage assistance so that they could avoid foreclosure and stay in their homes. The KYHC program was part of a broader effort by the federal government to stabilize the nation’s housing market where states with the most distressed markets received federal monies to develop locally tailored foreclosure prevention solutions.
Cawthorne is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Feb. 24, 2020. Cawthorne faces a maximum penalty of 10 years in prison and a fine of up to $250,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The case is the product of an investigation by the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), a federal law enforcement agency that targets crime at financial institutions and federally funded housing programs. Assistant U.S. Attorney Joseph Barton is prosecuting the case.
Second Guilty Plea in Mexican Timeshare Resale Fraud ProsecutionRead the Press Release
SACRAMENTO, Calif. — Wayne Arthur York II, 51, most recently of Albuquerque, New Mexico, pleaded guilty today to conspiracy to commit wire fraud, U.S. Attorney McGregor W. Scott announced.
According to court documents, York, while working in boiler rooms located in Puerto Vallarta, Mexico, would call timeshare owners to offer to arrange for the sale of Mexican timeshare vacation rentals. York would falsely claim that he and his coconspirators represented companies that had already secured or arranged for buyers who were ready to pay for the timeshares. In truth, no buyers had actually been arranged. Instead, York and others would convince the victims of the fraud to wire money from bank accounts in the United States and Canada to bank accounts in Mexico for alleged up-front payments including taxes, fees, and commissions to make the sale of the timeshare occur. The defendant and his coconspirators would assure victims that the non-existent buyers had already deposited money into trust accounts and that the sellers’ up-front fees would be fully reimbursed from those funds after the sale was complete. During York’s involvement, he was aware of or could have reasonably foreseen approximately $458,628.11 in inbound international wires being processed into bank accounts that he was aware of as part of his role in the conspiracy.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Matthew G. Morris is prosecuting the case.
York is the second defendant to plead guilty in this case:
Codefendant Marco Antonio Ramirez Zuno pleaded guilty in March 2017, and is scheduled for a status hearing regarding sentencing on December 10, 2019.
Codefendant Juan Carlos Montalbo is scheduled to go to trial on February 24, 2020. The charges against Montalbo are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
York is scheduled to be sentenced by Judge John A. Mendez on March 3, 2020. York faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
West Side Crip Member Jarvis Thomas, aka “Big Mice,” Sentenced to over 26 Years in Prison for Narcotics TraffickingRead the Press Release
FRESNO, Calif. — Jarvis Thomas, 34, of Bakersfield, was sentenced by United States District Judge Dale A. Drozd today to 320 months in prison and five years of supervised release for conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine, U.S. Attorney McGregor W. Scott announced.
According to court documents and evidence presented at trial, between Sept. 27, 2017, and Sept. 11, 2018, Thomas conspired with others to possess and distribute methamphetamine in Bakersfield and North Dakota.
According to court documents, on Dec. 14, 2017, after a 10-month investigation, more than 35 members and associates of West Side Crips (WSC), a local criminal street gang, were arrested on federal and state charges including burglary, illegal gun possession, drug sales, and murder. Since that time, all the defendants in federal custody except for Thomas have pleaded guilty to charged offenses. On Jan. 11, 2018, a superseding indictment charged Thomas, a West Side Crip member also known as “Big Mice.” On April 4, 2019, a second superseding indictment charged Thomas and a co-conspirator.
This case is the product of an investigation by the Federal Bureau of Investigation, the California Department of Justice, the Bakersfield Police Department and the Drug Enforcement Administration. Assistant U.S. Attorneys Angela Scott and Thomas Newman are prosecuting the case.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Farmersville Man Charged with Drug and Firearms OffensesRead the Press Release
FRESNO, Calif. — On November 22, 2019, federal authorities arrested Miguel Deniz, 29, of Farmersville, who is charged in a three-count indictment with possession with intent to distribute methamphetamine, being a felon in possession of firearms, and possession of a machinegun, United States Attorney McGregor Scott announced.
Deniz ordered four “auto-sear” devices over the internet to his home address. Auto-sear devices are used to convert semi-automatic firearms to fire as fully automatic machineguns. The package was intercepted by law enforcement, and on May 1, 2019, law enforcement officers conducted a controlled delivery of the package to Deniz’s residence. During a subsequent search executed at the residence, law enforcement officers recovered over a pound of methamphetamine, an AK-style rifle, a Mossberg pump action shotgun, six handguns, eighteen magazines, two handgun silencers, a ballistic vest, thousands of rounds of live ammunition, and firearm accessories. During the search, law enforcement officers also found additional auto-sear devices. Deniz is a convicted felon prohibited from possessing firearms or ammunition.
This case was the product of an investigation by Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Postal Inspection Service, and the California Department of Justice. Assistant United States Attorney Katherine Schuh is prosecuting the case.
If convicted, Deniz faces a maximum statutory penalty of life years in prison and a $10,000,000 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 Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Vallejo Man Sentenced to over 3 Years in Prison for Possessing a Machine GunRead the Press Release
SACRAMENTO, Calif. — Jake Edward Howland, 23, of Vallejo, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to three years and 10 months in prison for unlawfully possessing a machine gun, U.S. Attorney McGregor W. Scott announced.
According to court records, in Feb. 2019, Solano County Sheriff’s deputies responded to a call reporting that someone was shooting a fully automatic weapon on the levee in the unincorporated area of Solano County, near Dixon. When deputies arrived, they spoke with a group of witnesses, several of whom saw Howland firing the pistol. When the deputies searched Howland, they found an empty .40-caliber high-capacity magazine in his pocket. They also found a .40‑caliber pistol nearby that had been modified to function as a machine gun. This was the gun Howland was firing moments earlier. Howland pleaded guilty on Aug. 21.
This case was the product of an investigation by the Solano County Sheriff’s Office, with assistance from the FBI’s Solano County Violent Crimes Task Force and the Solano County District Attorney’s Office.
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.
Sacramento Resident Pleads Guilty to Identity Theft Involving a Rancho Cordova Veterinary ClinicRead the Press Release
SACRAMENTO, Calif. — Marie Antoinette Alcanter, 48, of Sacramento, pleaded guilty today to access device fraud and aggravated identity theft, U.S. Attorney McGregor W. Scott announced.
According to court documents, Alcanter obtained victims’ personal and financial information from co-defendant Rose Marie Segale, 41, of San Jose, formerly of Sacramento. Segale had obtained the information through her employment at a veterinary clinic. Alcanter used the information to make purchases and withdrawals using victims’ accounts, as well as to open new accounts using victims’ identities. When Alcanter’s residence was searched by federal agents, they found numerous documents that Segale had provided from the veterinary clinic. One of them was a statement for euthanasia and cremation of a dog, on which Segale had recorded the client’s credit card number. Using victims’ information, Alcanter obtained over $40,000 worth of items and cash between Dec. 2016 and March 2018.
This case is the product of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorney Miriam R. Hinman is prosecuting the case.
Alcanter is scheduled to be sentenced on Feb. 21, 2020. Segale previously pleaded guilty and is scheduled to be sentenced on Jan. 17, 2020. Each defendant faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for the access device fraud offense, as well as a mandatory two-year prison term for the aggravated identity theft. 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.
Venezuelan National Sentenced for Stealing ATM Card NumbersRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Troy L. Nunley sentenced Luis Jose Ruiz Gainza, 45, to four and a half years in prison for an identity theft scheme, U.S. Attorney McGregor W. Scott announced.
According to court documents, in 2017, Gainza, a Venezuelan national residing in Mexico, traveled to and from the United States for the purpose of stealing bank customers’ account information. During the course of the four-month scheme, at least six times Gainza and his co-conspirators placed skimming devices in ATMs and installed covert cameras to record ATM users’ personal identification numbers. While the skimmers were in place, hundreds of bank customers used the ATMs. Gainza and his co‑conspirators used the stolen account information to create fraudulent credit and debit cards and make unauthorized charges.
On August 5, 2017, Gainza and co-defendant Ricardo Gabriele-Plage, 39, of Venezuela, were arrested in their hotel room in Rancho Cordova. During a search of their room, law enforcement found a magnetic stripe reader and encoder, skimmers, covert cameras, and tools used to repair skimmers and install the devices in ATMs.
This case is the product of an investigation by Homeland Security Investigations and the Sacramento County Sheriff’s Department. Assistant U.S. Attorney Brian A. Fogerty is prosecuting the case.
Gabriele-Plage pleaded guilty to offenses arising from the same identity theft scheme. He will be sentenced by Judge Nunley on Jan. 9, 2020. He faces the following maximum penalties: five years in prison and a $250,000 fine for the conspiracy to possess unauthorized access devices count; 10 years in prison and a $250,000 fine for the access device fraud count; and a mandatory consecutive term of two years in prison for the aggravated identity theft charges. 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.
Two Stockton Residents Sentenced for Firearms OffensesRead 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 sentences in the following cases involving illegal firearms offenses.
U.S. District Judge Troy L. Nunley sentenced Jake Phillip Jines, 23, of Stockton, to five years and 10 months in prison for dealing firearms without a license and distribution of methamphetamine. According to court documents, on Feb. 7, 2017, Jines and a co-defendant sold an undercover agent three firearms and 59.4 grams of methamphetamine. Jines does not have a license to sell firearms and none of the firearms had serial numbers. Such firearms are known as “ghost guns.” (2:17-cr-162-TLN)
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney James R. Conolly is prosecuting the case.
Judge Nunley sentenced Derrick Walker, 30, of Oakland, to three years and four months in prison for being a felon in possession of a firearm. According to court documents, Walker has previous convictions for selling narcotics, carjacking, and second degree robbery. On Feb. 28, 2017, Walker was found to be in possession of a .40-caliber handgun. (2:17-cr-201-TLN)
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Police Departments of Oakland and Stockton. Assistant U.S. Attorney Jason Hitt prosecuted the case.
Two Kings County Men Charged with Possessing and Selling Machine GunsRead the Press Release
FRESNO, Calif. — A three-count indictment was unsealed today charging Eric Lopez Mercado, 25, of Lemoore, and Jose Moreno, 24 of Hanford, with illegally possessing and transferring machine guns, U.S. Attorney McGregor W. Scott announced.
The indictment charges Mercado and Moreno with possessing several pistols that had no serial number markings but had conversion devices attached to the rear of the firearms that enabled them to function as fully automatic weapons. Both men are also charged with transferring a machine gun to another person and possessing a device capable of converting a handgun into a machine gun.
This case is the product of a multi-agency investigation into the criminal activities of individuals associated with the Nuestra Familia prison gang. That investigation culminated in the arrests of over 50 individuals on federal and state charges, including Mercado and Moreno. The investigation was led by the Kings County Gang Task Force; Agents of the Special Operations Unit – a team of agents from the California Department of Justice and the California Highway Patrol; California Department of Corrections and Rehabilitation; the FBI; and the Kings County District Attorney's Office. The Drug Enforcement Administration, the Bureau of Alcohol Tobacco and Firearms, the U.S. Marshals Service, and Homeland Security Investigations all assisted with the arrests. Assistant U.S. Attorneys Kimberly Sanchez and Justin Gilio are prosecuting the case.
If convicted, both Mercado and Moreno face a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This 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.
Madera County Residents Indicted for Dealing Heroin that Caused Overdose DeathRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Georgia Nicole Dean, 36, and Ashley Michelle Hill, 32, both of Coarsegold, charging them with selling heroin that resulted in the overdose death of another Coarsegold resident, U.S. Attorney McGregor W. Scott announced. Dean and Hill are also charged with conspiring to distribute the heroin that resulted in the victim’s death.
According to court documents, on Aug. 22, Dean and Hill drove to the victim’s residence and sold heroin to him. It is alleged that the victim’s death resulted from the use of the mixture or substance containing heroin.
This case is the product of an investigation by the Madera County Sheriff’s Office, the Fresno Police Department, and the Drug Enforcement Administration. Assistant U.S. Attorneys Kathleen A. Servatius and Justin J. Gilio are prosecuting the case.
If convicted, the drug distribution resulting in death charge and the conspiracy to distribute drugs resulting in death charge both carry a mandatory minimum statutory penalty of 20 years in prison up to life in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Kern County and Los Angeles County Residents Charged with Possessing and Illegally Importing 372 Pounds of Methamphetamine into the United StatesRead the Press Release
FRESNO, Calif. — A federal grand jury returned an indictment today against Pedro Alegra Jr., 21, of Delano, and Edgardo Rosales-Andrade, 23, of Paramount, charging them with conspiracy to possess with the intent to distribute methamphetamine and possession with the intent to distribute methamphetamine. Rosales-Andrade was also charged with the illegal importation of narcotics, U.S. Attorney McGregor W. Scott announced.
“The investigation of international drug trafficking operations is a top priority for Homeland Security Investigations,” said Tatum King, special agent in charge for Homeland Security Investigations (HSI) San Francisco. “HSI in the Central Valley employs all of its resources to prevent these dangerous criminal networks from threatening our communities.”
According to court documents, on Nov. 15, HSI and Customs and Border Patrol agents tracked a cargo truck carrying 312 pounds of methamphetamine to Delano, in Kern County where Alegra and Rosales-Andrade were waiting. Agents obtained a search warrant for the truck and residence and found an additional 60 pounds of methamphetamine in the residence. The methamphetamine was concealed in furniture in the cargo truck.
This case is the product of an investigation by HSI and the Bakersfield Police Department. Assistant U.S. Attorney Thomas Newman is prosecuting the case.
If convicted, Alegra and Rosales-Andrade face a minimum statutory penalty of 10 years in prison and up to a lifetime prison term 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 defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Fairfield Man Indicted After Brandishing a Firearm During a Robbery in Solano CountyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today against Antonio Tawan Bankhead, 31, of Fairfield, charging him with being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Oct. 11, police responded to a report of a man robbed at gunpoint in Laurel Creek Park in Fairfield. Police located the victim, who said that three men approached him in the park and started taking his belongings, including his cellphone, pants, and shoes. The victim said that Bankhead pointed a gun at him and asked his two accomplices, “Should I shoot him?” After the victim called 911, police responded to the scene and located the three suspects. Bankhead led police on a foot pursuit through the park, but was apprehended in a nearby neighborhood. Afterwards, police found a gun that Bankhead is alleged to have discarded during the chase. The gun had an extended magazine loaded with 30 rounds of ammunition and one round in the chamber. Bankhead cannot lawfully possess firearms or ammunition because he has previously been convicted of three felony offenses. In addition, when this offense took place, Bankhead was on federal probation for illegally possessing a firearm in 2014.
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.
If convicted, Bankhead faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Sacramento Men Sentenced to 10 and 15 Years in Prison for Methamphetamine TraffickingRead the Press Release
SACRAMENTO, Calif. — On Tuesday, U.S. District Judge John A. Mendez sentenced two Sacramento men for methamphetamine trafficking, U.S. Attorney McGregor W. Scott announced.
Roland Adrian Jufiar, 44, was sentenced to 10 years in prison for conspiracy to distribute methamphetamine, and David Garcia Romero, 44, was sentenced to 15 years in prison for possessing methamphetamine for distribution.
Both men pleaded guilty on Aug. 13. According to court records, federal agents began investigating co-defendant Andre Ramon Washington based on reports that Washington was distributing narcotics from his home in Sacramento. In 2017 and 2018, agents with the Drug Enforcement Administration identified Jufiar and Romero as two of Washington’s suppliers. In March 2018, federal agents executed search warrants at Washington’s, Jufiar’s, and Romero’s homes. At Jufiar’s home, agents found approximately 160 grams of cocaine. When the agents searched Romero’s car, they found over 17 kilograms of methamphetamine, 2.7 kilograms of powder cocaine, over one pound of cocaine base (crack cocaine), over $19,000 in cash, and three firearms.
In October 2019, co-defendant Andre Washington was sentenced to 10 years in prison for possessing methamphetamine for distribution.
This case was the product of an investigation by the Drug Enforcement Administration with assistance from the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; the Sacramento County Sheriff’s Department; the Sacramento Police Department; the Citrus Heights Police Department; and the Folsom Police Department.
Stockton Woman Sentenced for Two Separate Fraud ConspiraciesRead the Press Release
SACRAMENTO, Calif. — Kioni M. Dogan, 39, of Stockton, was sentenced today to four years in prison for criminal conspiracies to submit false claims for federal income tax refunds and to commit mail fraud in connection with California state unemployment insurance benefits, U.S. Attorney McGregor W. Scott announced.
In sentencing, U.S. District Judge John A. Mendez said Dogan’s criminal conduct was “a slap in the face to law abiding citizens” who comply with our tax system and who turn to unemployment benefits in times of real need.
According to court documents, for over five years Dogan was the driving force in two schemes seeking over $2 million from the California and federal governments through fraud.
U.S. Attorney Scott stated: “This defendant ran overlapping fraud schemes targeting federal and state government agencies to steal over $2.2 million. Today’s sentence reflects the extensive criminal conduct, provides just punishment, and protects the public from further crimes of this defendant.”
According to court documents, from May 2011 through April 2012, Dogan filed at least 98 fraudulent tax returns $940,000 in refunds, of which approximately $708,188 was paid out by the IRS. Dogan, co-defendant Antonia Brasley, and others obtained personal identifying information from family, friends, and others, and then submitted returns containing false statements regarding income, withholding, and losses.
“Dogan’s long-running scheme had no purpose other than to mislead and defraud the IRS and EDD,” said Kareem Carter, Special Agent in Charge IRS Criminal Investigation. “Defrauding the government is not a victimless crime as honest taxpayers end up footing the bill. Today’s sentence sends a clear message that those involved in these types of schemes will be held accountable.”
According to court documents, from 2010 through 2015, Dogan filed over 100 fraudulent unemployment insurance claims with the California Employment Development Department (EDD) seeking $1.29 million using fictitious businesses. Dogan created fictitious employers with EDD and then caused the submission of information for employees of the fictitious entities. Dogan subsequently filed unemployment claims in the names of the fake employees. Co‑defendants Gloria Harris and Lavonda Bailey are charged with collecting the fraudulent benefits, both in their own names and in the names of other fake employees. Approximately $972,319 was paid out by EDD.
“Kioni Dogan defrauded the California Employment Development Department by establishing fictitious businesses to obtain unemployment insurance benefits in the names of identity theft victims and her co-conspirators who were not entitled to such benefits. We will continue to work with our law enforcement partners and state workforce agencies to protect the integrity of unemployment insurance benefit programs,” said Quentin Heiden, Special Agent-in-Charge, Los Angeles Region, U.S. Department of Labor Office of Inspector General.
The unemployment fraud case is the product of an investigation by the U.S. Department of Labor, the California Employment Development Department, and the U.S. Postal Inspection Service. The tax fraud case was the product of an investigation by IRS Criminal Investigation. Assistant U.S. Attorney Christopher S. Hales is prosecuting both cases.
On Sept. 10, Brasley was sentenced to five years’ probation and ordered to pay $33,562 in restitution. Harris pleaded guilty to the charges on Nov. 15 and is scheduled to be sentenced on Feb. 14, 2020.
The charges against Bailey remain pending. The charges are only allegations; she is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Sacramento Man Sentenced to 4 Years in Prison for Access Device Fraud, Identity Theft, and Illegal Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — Ahmad Nassar, 33, of Sacramento, was sentenced today by U.S. District Judge Kimberly J. Mueller to four years in prison for aggravated identity theft, being a felon in possession of a firearm, and access device fraud, U.S. Attorney McGregor W. Scott announced.
According to court documents, from August 2015 through June 2017, Nassar was engaged in identity theft, unauthorized bank account takeovers, and obtaining and using unauthorized and counterfeit access devices in the form of credit cards, debit cards, account numbers, and other financial account information. On May 10, 2017, agents executing search warrants at two properties in Sacramento associated with Nassar led to the seizure of a loaded .22‑caliber handgun from underneath a pillow in a bedroom of one of the properties in which Nassar himself was found. In addition, agents seized numerous boxes containing credit cards, debit cards, mail (some with “forwarding” address labels), and federal and state government-issued identification cards, bearing names of people other than Nassar, and at least 55 electronic devices, including computers, cellphones, media storage drives, and other electronic devices including a “CelleBrite” device commonly used by law enforcement to conduct forensic examinations of cellphones. Nassar used intricate techniques to obtain victims’ personal identifying and financial information, including online account takeovers that continued even after search warrants were executed on his properties. Nassar’s conduct caused at least $558,276 in losses.
This case was the product of an investigation by the Federal Bureau of Investigation and Sacramento County Department of Human Assistance. Assistant U.S. Attorney Matthew M. Yelovich is prosecuting the case.
Vallejo Man Sentenced to 3 Years in Prison for Multimillion Dollar Mortgage and Foreclosure Rescue Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Garland E. Burrell Jr. sentenced Omar Anabo, 57, of Vallejo, to three years in prison for conspiracy to make false statements on loan applications, U.S. Attorney McGregor W. Scott announced. Judge Burrell also ordered Anabo to pay $379,068 in restitution to victims of the conspiracy.
According to court documents, between Oct. 2004 and May 2007, Anabo and co‑conspirators Sergio Roman Barrientos, 66, and Zalathiel Aguila, 46, operated Capital Access LLC in Vallejo, a company that preyed on homeowners nearing foreclosure. The defendants convinced homeowners to sign over the title to their homes to Capital Access and then spent any equity those homeowners still had, which was then used for operational expenses of the scheme and personal expenses of Anabo and his co-conspirators.
The defendants also used straw buyers to obtain home loans under false pretenses and defraud federally insured financial institutions out of millions of dollars. Vulnerable homeowners across California lost their homes and savings as a result of the scheme, and lenders lost an estimated $10.47 million from the fraud.
This case was the product of an investigation by the Federal Bureau of Investigation and the United States Postal Inspection Service. Assistant U.S. Attorneys Matthew M. Yelovich and Christina McCall prosecuted the case.
Barrientos was sentenced on Nov. 2, 2018, to 14 years in prison for his role in the scheme. Aguila was sentenced on July 26, 2019, to four years in prison.
Sacramento Man Sentenced to 11 Years in Prison for Receiving Child PornographyRead the Press Release
SACRAMENTO, Calif. —Robert Charles Chavez, 33, of Sacramento, was sentenced today to 11 years and one month in prison for receiving child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, in March 2015, Chavez used peer-to-peer file sharing software to download from the internet videos and images of nude prepubescent children engaged in sexually explicit conduct.
This case was investigated by the Sacramento Internet Crimes Against Children (ICAC) Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant U.S. Attorneys Brian A. Fogerty and Mira Chernick prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Former DMV Employee Sentenced for a Scheme to Issue Commercial Licenses to Unqualified DriversRead the Press Release
SACRAMENTO, Calif. — Lisa Terraciano, 53, of North Hollywood, was sentenced today to three years and four months in prison for a conspiracy to take bribes to provide Class A commercial driver’s licenses (CDLs) without the commercial applicants having to take or pass the required tests, U.S. Attorney McGregor W. Scott announced.
On November 3, 2017, former DMV employees Terraciano and Kari Scattaglia, 40, of Sylmar, pleaded guilty to a conspiracy to commit bribery, to commit identity fraud, and to commit unauthorized access of a computer. On Aug. 29, 2019, Scattaglia was sentenced to two years and eight months in prison for her participation in the conspiracy.
According to court documents, Terraciano worked for the DMV since June 2005 and was a Motor Vehicle Representative (MVR) in the Winnetka DMV office from 2014 through 2017. Scattaglia worked as a manager, assistant manager, and a Licensing-Registration Examiner (LRE) at the Arleta DMV and the Granada Hills Driver License Processing Center. Among other things, Terraciano and Scattaglia were responsible for processing applications for California CDLs. A CDL is required to drive passenger buses and to operate tractor-trailer trucks on California and interstate highways, including, in some cases, transporting hazardous materials.
In exchange for money, Terraciano and Scattaglia each accessed the DMV’s database in Sacramento to alter the records of commercial applicants to fraudulently show that the applicants had passed the required written tests when, in truth, the applicants had not passed the tests or, at times, even taken the written tests. In so doing, this caused the DMV to issue permits to those drivers as well as issue completed CDLs upon the applicants’ passing the behind-the-wheel driving tests.
According to the plea agreements, Terraciano caused at least 148 fraudulent CDLs, including permits, to be issued, and Scattaglia caused at least 68 fraudulent CDLs, including permits, to be issued.
This case was the product of an investigation by the Federal Bureau of Investigation, the Homeland Security Investigations, the U.S. Department of Transportation – Office of Inspector General, and the California Department of Motor Vehicles, Office of Internal Affairs. Assistant U.S. Attorney Rosanne L. Rust is prosecuting the case.
California Health System Agrees to Pay over $15M to Settle Claims Arising from Improper Compensation Arrangements and Double BillingRead the Press Release
SACRAMENTO, Calif. — Sutter Health has agreed to pay $15,117,516 to resolve conduct concerning violations of the Physician Self-Referral Law, commonly known as the Stark Law, as well as double-billing for certain services, U.S. Attorney McGregor W. Scott announced today.
The Stark Law prohibits a hospital from billing Medicare for certain services referred by physicians with whom the hospital has a financial relationship, unless that relationship satisfies one of the law’s statutory or regulatory exceptions. The law is intended to ensure that medical decision-making is not influenced by improper financial incentives and is instead based on the best interests of the patient.
The conduct at issue was self-disclosed by Sutter to the United States, and includes submission of claims to Medicare that resulted from referrals by physicians to whom certain Sutter hospitals: (1) paid compensation under personal services arrangements that exceeded the fair market value of the services provided; (2) leased office space at below-market rates; and (3) paid reimbursements of physician-recruitment expenses that exceeded the actual recruitment expenses at issue. Additionally, several Sutter ambulatory surgical centers double-billed the Medicare program by submitting claims that included radiological services for which Medicare separately paid another entity that had performed those services.
“Providers must rigorously comply with the law and Medicare requirements” said U.S. Attorney Scott. “This office is committed to pursuing enforcement actions that will ensure the integrity of federal health care programs.”
This settlement is the result of work by the U.S. Attorney’s Office for the Eastern District of California with help from the Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Catherine J. Swann handled the matter for the United States. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Vallejo Man Sentenced to over 7 Years in Prison for International Money Laundering Conspiracy and Tax FraudRead the Press Release
SACRAMENTO, Calif. — Marty Marciano Boone, 58, of Vallejo, was sentenced today by U.S. District Judge Troy L. Nunley to seven years and three months in prison following his conviction after jury trial for conspiracy to commit money laundering, two counts of substantive money laundering, and filing a false tax return, U.S. Attorney McGregor W. Scott announced.
According to court documents and evidence presented at trial, Marty Boone and his wife and co-defendant Ronda Boone, 56, filed separate false tax returns claiming that they were owed millions of dollars in refunds from the IRS. While the IRS flagged Ronda Boone’s tax return as fraudulent and denied her claim, Marty Boone’s false return resulted in the IRS paying him over $1.9 million in a refund check. Evidence at trial established that Marty and Ronda Boone then laundered those funds through domestic and foreign accounts, including by establishing a shell corporation in Cyprus and a church in the state of Washington through which the defendants moved the fraudulently obtained money.
This case is the product of an investigation by IRS Criminal Investigation. Assistant U.S. Attorney Matthew M. Yelovich is prosecuting the case.
Ronda Boone is scheduled to be sentenced on Nov. 21. She faces a maximum penalty of 10 years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Twelve Nuestra Familia Gang Members and Associates Charged with Federal Drug Trafficking Charges in Superseding IndictmentRead the Press Release
FRESNO, Calif. — A federal grand jury returned a 13-count superseding indictment today against 12 Nuestra Familia gang members and associates, U.S. Attorney McGregor W. Scott announced.
The individuals charged today were originally charged in June, along with about 40 others, as part of a multi-agency investigation into the prison-based gang’s criminal activities. The superseding indictment adds three additional federal drug charges, including a charge for conspiracy to distribute over 500 grams of cocaine. The defendants are:
Salvador Castro Jr., 49, of Pleasant Valley State Prison,
Raymond Jesse Marcos Lopez, 32, of Pleasant Valley State Prison,
Jesse Juarez, 29, of Visalia,
Daniel Juarez, 27, of Visalia,
Michael Rocha, 37, of Visalia,
Angel Montes, 23, of Visalia,
Rafael Lopez, 28, of Visalia,
Manuel Barrera, 24, of Kettleman City,
Manuel Garcia, 33, of Armona,
Joann Bernal, 33, of Armona,
Ramon Amador, 30, of Riverdale, and
Raul Lopez Jr., 48, of Visalia
According to court documents, high-ranking Nuestra Familia members Salvador Castro, Jr. and Raymond Lopez used contraband cellphones from inside Fresno County’s Pleasant Valley State Prison to arrange the transport of illicit narcotics from drug sources in California and Mexico to a stash house in Kings County. From that stash house, gang members outside of the prison coordinated the preparation and delivery of the drugs to distributors throughout Kings and Tulare Counties.
The case was the result of an investigation by the Kings County Gang Task Force; the Special Operations Unit – a team of agents from the California Department of Justice and the California Highway Patrol; California Department of Corrections and Rehabilitation; the FBI; and the Kings County District Attorney’s Office. The Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; and Homeland Security Investigations all assisted with the arrests. Assistant U.S. Attorneys Kimberly Sanchez, Laurel Montoya, and Justin Gilio are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. 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.
If convicted, the defendants face a range of maximum sentences, including up to life in prison. Several of the defendants also face a range of mandatory-minimum sentences ranging from between five to 10 years in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Fresno Men Charged with Possessing and Selling False Identification DocumentsRead the Press Release
FRESNO, Calif. — A federal grand jury returned a 13-count indictment today against Fresno residents Isaias Herrera-Ortiz, 29, and Lucas Lara Portillo, 38, charging them with conspiracy, production of false identification documents, transfer of false identification documents, and fraud and misuse of visas and related documents, U.S. Attorney McGregor W. Scott announced.
According to court documents, in February and March 2018 and in July and September 2019, the defendants engaged in transactions in which they manufactured and sold false identification documents to buyers. These documents included social security cards and green cards.
This case is the product of an investigation by Homeland Security Investigations. Assistant U.S. Attorney Laura D. Withers is prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of 15 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.
Former CEO of Central Valley Health Clinics to Sell 13 Properties to Resolve False Claims Act AllegationsRead the Press Release
SACRAMENTO, Calif. — The founder and former CEO of a chain of Central Valley rural health clinics will sell 13 properties, remitting proceeds to the United States and the state of California, to resolve allegations that she submitted millions of dollars in false claims to Medi‑Cal, U.S. Attorney McGregor W. Scott announced today.
The Civil and Criminal Divisions of the U.S. Attorney’s Office conducted parallel investigations of Sandra Haar, the founder and chief executive officer of Horisons Unlimited. As a result of the criminal investigation, on Aug. 13, 2018, Haar pleaded guilty to defrauding Medi-Cal and on Nov. 4, 2019, was sentenced to five years in prison.
Horisons Unlimited was a nonprofit that provided health and dental services at eight clinics in Merced and surrounding communities. Between Jan. 1, 2014, and March 2017, Haar billed Medi‑Cal through Horisons for various false and fraudulent claims, including claims for services rendered by unlicensed providers, claims for services that were not rendered at all, claims for office visits that consisted of nothing more than patients picking up controlled substances in plastic baggies in retail parking lots, and claims for unnecessary services. In addition, Haar received illegal kickbacks from an account executive at a Southern California lab. In exchange, Haar directed that lab testing for Horisons’ Medi-Cal patients be conducted at the lab.
The properties to be sold include some former clinics of the now-shuttered Horisons Unlimited as well as several residential properties. Pursuant to the settlement, the Office of Inspector General will be excluding Sandra Haar and a for-profit company Haar controlled from participation in Medicare, Medicaid, and all other Federal healthcare programs for a period of 20 years, and Horisons Unlimited’s chief financial officer, Norman Haar, will be excluded for a period of 15 years.
“The purpose of public insurance programs like Medi-Cal is to provide essential services to those who need them, not to enrich bad actors who submit false and fraudulent claims,” said U.S. Attorney Scott. “We will continue to safeguard the integrity of these programs and the public fisc by recovering public dollars obtained through fraud.”
“Medi-Cal serves vulnerable people who need vital health services. Therefore, when providers steal from this taxpayer-funded program it is a matter of utmost concern,” said Steven J. Ryan, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services. “We will continue working closely with our law enforcement partners to guard the integrity of government health care programs.”
The settlement is the product of an investigation by the Federal Bureau of Investigation, the Office of Inspector General for the U.S. Department of Health and Human Services, the Bureau of Medi-Cal Fraud and Elder Abuse, and the California Department of Health Care Services. Assistant U.S. Attorney Vincente A. Tennerelli handled the case for the United States.
Fairfield Man Charged with Attempted Online Coercion of a Child and Distribution of Child PornographyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Kevin Blaine Cline, 46, of Fairfield, charging him with attempted online coercion of a child and distribution of child pornography, U.S. Attorney McGregor W. Scott announced.
According to the criminal complaint, on Nov. 1, an undercover agent observed Cline’s post on the social media platform called Whisper that said he was “Looking for dad’s (sic) who love their daughters near me I...... Have a question.” The notation at the bottom of Cline’s post said, “Freaky Sexual Desires.” During a two-day conversation on Whisper with the undercover agent, Cline sent two images of child pornography to the agent and attempted to arrange a meeting with a 7‑year-old girl in order to sexually molest her. Cline then drove from Fairfield to Pleasant Hill to meet up with the intended victim. When Cline arrived, he was placed under arrest.
This case is the product of an investigation by the Silicon Valley Internet Crimes Against Children Task Force (SVICAC) a federally and state-funded task force with agents from federal, state, and local agencies that investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. The Contra Costa District Attorney’s Office and Homeland Security Investigations conducted the investigation as part of the SVIAC. Assistant U.S. Attorney Christina McCall is prosecuting the case.
If convicted of attempted online coercion, Cline faces a mandatory minimum penalty of 10 years in prison and a maximum statutory penalty of life in prison and a $250,000 fine. 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.
Stockton Man Sentenced to 9 Years in Prison for Distributing Child PornographyRead the Press Release
SACRAMENTO, Calif. — Jason Solomon, 44, of Stockton, was sentenced today by U.S. District Judge Troy L. Nunley to nine years in prison for distributing child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, in July 2016, Solomon used social media to send images of children engaged in sexually explicit conduct to a then-15-year-old girl. Law enforcement later became aware of Solomon’s sexually explicit chats with the 15-year-old victim. In January 2018, federal agents found Solomon possessing additional images of child pornography, some of which depict the sexual molestation of infants.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Brian A. Fogerty prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Loomis Gun Store Crash and Grab Robber Sentenced to Nearly 6 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — Aaron Lee Patrick, 30, of Loomis, was sentenced today to five years and 11 months in prison by U.S. District Judge Troy L. Nunley for crashing a truck into a gun store and stealing at least five guns, U.S. Attorney McGregor W. Scott announced.
On October 25, 2018, Patrick pleaded guilty to theft of a firearm from a licensed dealer, and being a felon in possession of a firearm. According to court documents, Patrick stole his former employer’s flatbed truck and repeatedly rammed it into the wall of a licensed firearms dealer in Loomis, leaving two truck-sized holes in the side of the building. Patrick stole at least five firearms from the store, fled the scene, and went to the home of co-defendant and convicted felon Rocky Gordon, 63, of Colfax, where he sold Gordon four firearms for $1,000 and at least 35 grams of methamphetamine. That afternoon, sheriff’s deputies found and arrested him. In Patrick’s backpack was a fifth firearm that had been stolen from the dealer along with 35 grams of methamphetamine.
Patrick had previously been convicted of five felonies in Amador and Placer Counties including convictions for burglary and illegally possessing an assault weapon. At the time of his arrest, a California state court had issued a no-bail warrant for his arrest because he was on community supervision and had removed his ankle monitor.
Gordon pleaded guilty to being a felon in possession of a firearm and was sentenced to 18 months in prison.
This case was the product of an investigation by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Placer County Sheriff’s Office. Assistant U.S. Attorney David W. Spencer 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.
Four Indicted for Marijuana CultivationRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment today charging four men with marijuana cultivation and firearms offenses in El Dorado County, U.S. Attorney McGregor W. Scott announced.
Christopher Garry Ross, 47, of Somerset; Juan Carlos Vasquez, 20, a Mexican national residing in Somerset; Ramiro Bravo Morales, 22, a Mexican national residing in Somerset; and Jorge Lamas, 25, of Yuba City, were charged with conspiring to cultivate marijuana, cultivation of marijuana, and discharge of a firearm during and in relation to a drug trafficking offense. In addition, Vasquez and Morales were each charged with being an illegal alien in possession of a firearm.
This case is the product of an investigation by the Drug Enforcement Administration, the Federal Bureau of Investigation, the U.S. Marshals Service, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the California Department of Justice. The El Dorado County Sheriff’s Office and the El Dorado County District Attorney’s Office have provided key assistance. Assistant U.S. Attorneys Michael M. Beckwith, Justin L. Lee, and Shea J. Kenny are prosecuting the case.
The statutory penalty for the marijuana counts is a five-year mandatory minimum prison sentence up to 40 years in prison with fines up to $5 million. The discharge of a firearm during a drug crime is a mandatory minimum of 10 years in prison up to life in prison and a fine of up to $250,000. The alien in possession of a firearm count is a maximum of 10 years in prison and a fine of up to $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
U.S. Attorney McGregor W. Scott Announces Progress in Making Our Communities Safer Through Project Safe NeighborhoodsRead the Press Release
SACRAMENTO, Calif. — Two years ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), the centerpiece of the department’s violent crime reduction strategy.
Throughout the past two years, the United States Attorney’s Office has partnered with all levels of law enforcement, local organizations, and members of the community to reduce violent crime and make our neighborhoods safer for everyone by focusing on the most violent offenders. According to FBI’s Uniform Crime Report released in October, the nationwide violent crime rate decreased for the second consecutive year, down 3.9% from 2017.
“The revitalized Project Safe Neighborhoods program is a major success,” said Attorney General William P. Barr. “It packs a powerful punch by combining advanced data with local leadership, further reducing violence in communities across the country and improving overall public safety. U.S. Attorneys continue to focus their enforcement efforts against the most violent criminals and work in partnership with federal, state, local, and tribal police. The Justice Department’s relationships across the board have never been stronger.”
In the Eastern District of California, indictments for firearms-related offenses in 2018 and 2019 are up 31% over the average for the previous 10 years. Approximately 1,600 guns were seized by ATF in 2018 and 2019. According to the FBI, firearms-related homicides fell 15%, and firearms‑related assaults fell 11%.
“Our office stands ready to work with federal, state, local, and tribal law enforcement to target the most violent criminals plaguing counties in our district,” stated U.S. Attorney Scott. “Our focus remains stemming the tide of illegal firearms flowing into our communities and prosecuting those who manufacture, distribute, and possess those weapons. Project Safe Neighborhoods is alive and well in the Eastern District of California.”
“ATF is dedicated to our mission of combating violent crime and protecting the public,” said Special Agent in Charge Ray Roundtree, San Francisco Field Division, ATF. “In the past year, ATF has worked to stand up crime gun intelligence focused groups across Northern California and Nevada. These teams provide data driven intelligence to open investigations on a local, regional and national level. That data is obtained through ATF’s Tracing Center and National Integrated Ballistics Information Network (NIBIN). ATF has been working hand in hand with both prosecutors and our law enforcement partners. These crime gun intelligence focused groups have been successful in reducing violent crime, disrupting the shooting cycle and removing the sources of crime guns. Throughout 2019 ATF has seized over 1,600 guns in the Eastern District. Those are 1,600 crimes guns that are no longer on the street and a treat to the people who live in those communities.”
“The Project Safe Neighborhood initiative is built on the partnerships the FBI has with our region’s local, state, and federal law enforcement agencies,” said FBI Sacramento Special Agent in Charge Sean Ragan. “When we combine forces, we are able to leverage our federal resources, hold criminals accountable for their crimes, and make significant steps in keeping our neighborhoods safe.”
“The U.S. Marshals Service is a key contributor to the PSN initiative, by bringing immediate relief to our communities with the execution of Operation Triple Beam and Operation Washout,” stated Chief Deputy U.S. Marshal Lasha Boyden. “These two enforcement operations are USMS‑led collaborative counter-gang initiative that partners federal, local, and state law enforcement to focus on specific areas impacted by significant gang violence, while targeting the most violent gang members and organizations.”
“Transnational Street gangs are often involved in a myriad of criminal activity, including narcotics and weapons violations, murder, extortion, and human trafficking. These groups represent a serious threat to public safety in any community and are a challenge for law enforcement agencies throughout the United States,” said Tatum King, special agent in charge, HSI San Francisco and Northern California. “HSI and our law enforcement partners in the Eastern District of California continue to send a strong message to violent gang members that we will not tolerate their threats and intimidation to our communities.”
These enforcement actions and partnerships 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.