Eastern District of California
Press releases recorded for this federal judicial district.
Former Merced Health Care Provider CEO and Licensed Nurse Practitioner Sentenced to 5 Years in Prison for Health Care FraudRead the Press Release
FRESNO, Calif. — Sandra Haar, 59, of Merced, was sentenced on Monday by U.S. District Judge Lawrence J. O’Neil to five years in prison and ordered to pay $6,107,846 in restitution for health care fraud and conspiracy to receive kickbacks, U.S. Attorney McGregor W. Scott announced. Haar was ordered to self-surrender on Jan. 15, 2020, to begin serving her sentence.
Haar was the founder and chief executive officer of Horisons Unlimited, a nonprofit public benefit corporation that provided health and dental services in Merced and surrounding communities. According to court documents, between January 1, 2014, and March 2017, Haar orchestrated a scheme to bill Medicare and Medi-Cal for services she knew were not reimbursable, and she profited by over $3.7 million from her fraud. For example, Haar billed Medi‑Cal for health and dental services that were not rendered and for unnecessary health care services. She also billed Medi-Cal for office visits with purportedly licensed doctors when the patients instead were dispensed Suboxone, an opioid medication, in the parking lots of McDonald’s and Rite Aid in baggies.
According to court documents, Haar also received thousands of dollars in kickbacks in cash from an account executive at a laboratory in exchange for using it for patients’ laboratory testing.
This case was the product of an investigation by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services Office of Inspector General (HHS OIG), the California Department of Health Care Services, and the California Bureau of Medi-Cal Fraud & Elder Abuse. Assistant U.S. Attorneys Lee S. Bickley and Michael Tierney prosecuted the case.
Madera County Woman Sentenced to over 16 Years in Prison for Aiding and Abetting Production of Child PornographyRead the Press Release
A Madera County woman was sentenced today to 16 years and 8 months in prison, followed by 15 years of supervised release, for aiding and abetting the production of child pornography, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney McGregor W. Scott.
Ashley Maddox, 32, was sentenced by U.S. District Judge Dale A. Drozd, after pleading guilty on May 24 to one count of aiding and abetting the production of child pornography. Maddox came to the attention of law enforcement during an investigation of an offender in Fort Pierce, Florida. The investigation revealed that between Nov. 2015 and April 2016, Maddox had communicated with that offender, via the internet and on cellphone apps, about their mutual sexual interest in minors. Maddox requested that this individual send her images and video recordings in which he sexually abused a minor victim in his care. To encourage this individual to produce such images, Maddox requested that he commit specific acts, and indicated that the images she had received from him had aroused her. Maddox also created and sent him nude images of a minor to whom she had access.
This case is the product of an investigation by the Central California Internet Crimes Against Children (ICAC) task force, a federally and state-funded task force with agents from federal, state, and local agencies. The Central California ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Homeland Security Investigations (HSI) agents in Fresno, California and Fort Pierce, Florida investigated this case. The Madera County Sheriff’s Office assisted early in the investigation. Trial Attorney Nadia C. Prinz of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney David L. Gappa of the Eastern District of California prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative 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.
Los Angeles Man Pleads Guilty to Conspiring to Distribute Narcotics on AlphaBay, a Dark Web MarketplaceRead the Press Release
FRESNO, Calif. — Christopher Michael Barnes, 36, of Los Angeles, pleaded guilty today to conspiring to distribute narcotics, U.S. Attorney McGregor W. Scott announced.
According to court documents, Barnes distributed marijuana through the vendor account HumboldtFarms on the dark web marketplace AlphaBay from March 2015 through May 2017. HumboldtFarms was one of the largest vendors on AlphaBay, allegedly completing tens of thousands of orders for marijuana on the site to customers throughout the United States. Barnes’ co-conspirators, William James Farber, Bryan Anthony Lemons, Michael Angelo Palma, Richard Thomas Martinsen, and Faysal Alkhayat have all pleaded guilty in case 1:17‑cr‑188 LJO.
This case is the product of an investigation by Homeland Security Investigations (HSI), the U.S. Postal Inspection Service in Los Angeles, the Los Angeles Police Department, and the Bakersfield Police Department with assistance from the Los Angeles Joint Regional Intelligence Center. Assistant U.S. Attorneys Grant B. Rabenn and Ross Pearson are prosecuting the case.
Barnes is scheduled to be sentenced on January 27, 2020. Barnes faces a maximum statutory penalty of 20 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, 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.
Former Delta Homes & Lending Inc. Employee Sentenced for Mortgage Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Today, Senior United States District Judge William B. Shubb sentenced Manuel Herrera, 39, of Davis, to serve one year in prison for conspiring to commit wire fraud, U.S. Attorney McGregor W. Scott announced.
According to court documents, between October 2004 and May 2007, Herrera was an employee of Delta Homes and Lending Inc., a now-defunct Sacramento-based real estate and mortgage lending company that was founded by co-defendant Moctezuma “Mo” Tovar, 50, of Sacramento. Herrera, Tovar, and other Delta Homes employees and co-defendants agreed to commit fraud to obtain home loans from mortgage lenders. As part of the scheme, Herrera submitted fraudulent mortgage loan applications and supporting documents, which falsely represented the borrowers’ assets and income, liabilities and debts, employment status, citizenship status, and intent to occupy the property. Herrera also provided money to the borrowers in order to inflate their bank account balances. Once the loans were secured, the borrowers returned the money to Herrera. The aggregate sales price of the homes involved in the overall conspiracy was in excess of $10 million. As a result of the conspiracy, mortgage lenders and others suffered losses of at least $4 million.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Brian A. Fogerty and Justin L. Lee prosecuted the case.
Herrera is the fifth defendant sentenced as part of the scheme. Co-defendant Tovar was sentenced to four and a half years in prison; Jun Jun Michael Dirain, 47, of Antelope, was sentenced to six months in prison, followed by six months of home detention; Sandra Hermosillo, 57, of Woodland, was sentenced to nine months of home detention; Christian Parada Renteria, 43, formerly of Sacramento, was sentenced to serve one year in prison.
Co-defendants Jaime Mayorga, 40, and Ruben Rodriguez, 42, both of Sacramento, were convicted of conspiracy to commit wire fraud at a jury trial. They are scheduled to be sentenced by U.S. District Judge John A. Mendez on Dec. 10. Each defendant 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.
California Woman Sentenced to Prison for Aiding and Abetting Production of Child PornographyRead the Press Release
A Madera County, California, woman was sentenced today to 200 months in prison, followed by 180 months of supervised release, for aiding and abetting the production of child pornography, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney McGregor W. Scott of the Eastern District of California.
Ashley Maddox, 32, was sentenced by U.S. District Judge Dale A. Drozd of the Eastern District of California. According to admissions made in connection with her guilty plea on May 24, 2019, the defendant came to the attention of law enforcement in Fort Pierce, Florida, in the course of their investigation into an offender there. The investigation revealed that beginning in or about November 2015, Maddox had communicated with that offender, via the internet and mobile-based applications, about their mutual sexual interest in minors. A forensic examination of that individual’s cellular phone recovered Kik chat conversations between them. Over the course of these communications, Maddox requested that this individual send her images and video recordings in which he sexually abused a minor victim in his care. To encourage this individual to produce such images, Maddox requested that he commit specific acts, and indicated that the images she had received from him had aroused her. Maddox also sent him sexually explicit images of a minor to whom she had access.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Fort Pierce, Florida, and Fresno, California. Trial Attorney Nadia C. Prinz of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney David L. Gappa of the Eastern District of California prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Fresno Man Arrested for Investment Fraud, Bank Fraud, and Tax EvasionRead the Press Release
FRESNO, Calif. — A Fresno man was arrested today at his home following an eight-count indictment by a federal grand jury for wire fraud, bank fraud, and evading payment of taxes, U.S. Attorney McGregor W. Scott announced.
According to court documents, Kenneth Shane Patterson, 42, convinced a Southern California small business owner to give him more than $1 million over approximately 31 months so Patterson could buy a skilled nursing facility in Pasadena. Patterson promised to then sell the facility to the business owner at well below market value. Patterson told the business owner that he needed the money to clear liens and pay other expenses so the deal would close. In reality, Patterson never pursued buying the facility and spent the money on other business ventures and personal expenses.
Court documents also state that, in addition to defrauding the business owner, Patterson defrauded Bank of America by writing two checks totaling $230,000 from Patterson’s business account at JPMorgan Chase to another of his business accounts at Bank of America. The Chase account’s balance at the time was less than $10,000. After writing the checks, Patterson quickly transferred and spent the deposited funds before Bank of America realized Patterson’s check had bounced. Bank of America sustained a loss of approximately $150,000.
According to the indictment, Patterson evaded paying federal income tax from tax years as far back as 2003 through various methods of evasion, including having no personal bank accounts, incurring expenses on accounts not in his name, and dealing in a high volume of cash.
This case is the product of an investigation by the Federal Deposit Insurance Corporation, the Federal Bureau of Investigation, and Internal Revenue Service-Criminal Investigation. Assistant U.S. Attorneys Vincente Tennerelli and David Gappa are prosecuting the case.
If convicted, Patterson faces a maximum statutory penalty of 30 years in prison and a $1 million fine for the bank fraud charge, a maximum statutory penalty of 20 years in prison and a $250,000 fine for the wire fraud counts, and a maximum statutory penalty of five years and a $100,000 fine for the tax evasion 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.
Second Nevada Gun Show Dealer Charged with Unlawful Dealing in FirearmsRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today against Brian Scheckla, 61, of Burney, charging him with unlawful dealing in firearms, U.S. Attorney McGregor W. Scott announced.
According to court documents, Brian Scheckla traveled to gun shows to sell guns despite not having a license to sell guns. In 2018, ATF served Scheckla with a cease and desist letter, advising him that he was unlawfully dealing in firearms without a license. Nevertheless, Scheckla continued to travel to 20 gun shows a year to sell guns in California, Arizona, Nevada, Oregon, and Idaho. A review of firearm purchase records for Scheckla revealed that Scheckla has been the initial purchaser of at least 10 firearms that have been recovered by law enforcement as part of criminal investigations in Manteca, Sacramento, Modesto, Vallejo, Elk Grove, Anderson, Ontario, and Rancho Cordova.
On Feb. 12, law enforcement officers executed a search warrant at Scheckla’s residence in Burney and seized over 200 firearms. On Oct. 17, Scheckla’s associate, Gary Osterhout was charged with unlawful dealing in firearms (2:19-cr-180-GEB). The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Justin Lee is prosecuting the case.
If convicted, Scheckla faces a maximum statutory penalty of five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Orangevale Man Charged with Distribution of Child PornographyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment today against Daniel Wayne Benner, 33, of Orangevale, charging him with distribution of child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, Benner distributed child pornography between July 3-5, using the Kik Messenger app. Benner used a smartphone, the internet, and Kik messenger to distribute a video and still images depicting minors engaging in sexually explicit conduct to a person located in Arkansas.
According to the criminal complaint, Benner’s publicly accessible Facebook profile includes a picture of a “My Little Pony” costume with a caption reading, “Rainbow Dash is looking to come to your birthday party and she brings candy and music … contact me for quotes / She will travel anywhere in Sacramento County.” Benner stated that he and two friends were going to start a birthday party business but were unable to secure any customers.
This case is the product of an investigation by the FBI and the Internet Crimes Against Children Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant U.S. Attorney Christina McCall is prosecuting the case.
If convicted, Daniel Benner faces a maximum statutory penalty of 20 years in prison, a $250,000 fine, and potentially a lifetime of supervised release. 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.
Seven Charged with Crimes Related to the Manufacture and Distribution of Pills Laced with Fentanyl and Other Controlled SubstancesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 27-count superseding indictment last Thursday against two brothers and five others, adding charges, including firearms and money laundering to an indictment first filed in May that charged them with a conspiracy to manufacture counterfeit pills containing fentanyl and other controlled substances, U.S. Attorney McGregor W. Scott announced.
The superseding indictment charges Jamaine Barnes, 37, of Stockton, with engaging in a continuing criminal enterprise from at least Sept. 27, 2015 through May 16, 2019. Jamaine Barnes and his brother Jamar Barnes, 37; Kavieo Wiley, 23; Vincent Patterson, 26, Kadrena Watts, 39; and Chevele Richardson, 33, all of Stockton, are charged with conspiracy to manufacture, distribute, and possess with intent to distribute fentanyl, heroin, methamphetamine, and U-47700 (a synthetic opioid).
The superseding indictment charges Jamaine Barnes with distribution of fentanyl and four counts of money laundering; Jamaine Barnes and Wiley with possession with intent to distribute methamphetamine on a premises where children are present; Jamaine Barnes and Watts with manufacture of methamphetamine on a premises where children reside; Jamaine Barnes, Wiley, Patterson, and Richardson with possession of a firearm in furtherance of a drug trafficking crime; and Jamaine Barnes, Wiley, and Richardson with being a felon in possession of a firearm.
Two counts of using a cellphone to facilitate a drug trafficking offense were added against Lamont Thibodeaux, 40, of Houston, Texas, who is also charged with attempt to possess with intent to distribute a controlled substance. Thibodeaux has not been arrested.
According to court documents, the conspiracy involved the manufacture (using pill press machines) and distribution of counterfeit pharmaceutical tablets containing fentanyl, heroin, and U-47700, as well as purported Ecstasy/MDMA pills containing methamphetamine. Seized emails showed purchases from China of pill press parts and dies (molds for stamping logos and markings onto counterfeit pills) as well as controlled substances and other chemicals.
Charges from the original indictment remain pending against Johnesha Thompson, 42, and Jeremy Barnett, 32, both of Stockton, who were charged with conspiracy to manufacture, distribute, and possess with intent to distribute fentanyl, heroin, methamphetamine, and U‑47700. Barnett was also charged with distributing fentanyl. Tashawn Dickerson, 39, of Riverbank, has pleaded guilty to possession with intent to distribute methamphetamine and awaits sentencing.
This case is the product of an investigation by the Drug Enforcement Administration, California Highway Patrol, San Joaquin METRO Narcotics Task Force, and the Tri-County Drug Enforcement Team (TRIDENT) Task Force with assistance from Homeland Security Investigations, the U.S. Marshals Service, the U.S. Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Stockton Police Department, the Sacramento County High Intensity Drug Trafficking Area (HIDTA) Task Force, and the San Joaquin County Sheriff’s Office. Assistant U.S. Attorney David W. Spencer is prosecuting the case.
If convicted, the defendants face a variety of statutory penalties. Jamaine Barnes faces a minimum of 20 years and up to life in prison if convicted for engaging in a continuing criminal enterprise. The penalties for the other charges carry a range of minimum and maximum statutory penalties. 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.
U.S. Attorney's Statement on Federal Charges Brought Against 3 Suspects in El Dorado County Sheriff Deputy's KillingRead the Press Release
Multiple Federal law enforcement agencies have been assisting the El Dorado Sheriff’s Office in this investigation since early Wednesday morning. The United States Attorney’s Office has brought these federal charges in full cooperation and consultation with the El Dorado District Attorney’s Office. We will continue to work collaboratively to ensure that justice is done.
Former Sacramento Resident Pleads Guilty to Identity Theft Involving a Rancho Cordova Veterinary ClinicRead the Press Release
SACRAMENTO, Calif. — Rose Marie Segale, 41, of San Jose, formerly of Sacramento, pleaded guilty today to access device fraud and aggravated identity theft, U.S. Attorney McGregor W. Scott announced.
According to court documents, Segale used her employment at a veterinary clinic and her pet‑sitting work to obtain clients’ personal and financial information. She provided that information to her co-defendant, Marie Antoinette Alcanter, who allegedly used it to make purchases and withdrawals using victims’ accounts, as well as to open new accounts using victims’ identities. One of the credit card numbers that Segale gave to Alcanter belonged to a client who used it to pay for euthanasia and cremation of a dog. Between December 2016 and March 2018, Alcanter is alleged to have obtained over $40,000 worth of items and cash using victims’ identities.
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.
Segale is scheduled to be sentenced on Jan. 17, 2020. Segale 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. Charges are pending against Alcanter. The charges are only allegations; she is presumed innocent until and unless proven guilty beyond a reasonable doubt.
“DrFrosty” Sentenced for Distribution of Methamphetamine Using the Dark NetRead the Press Release
SACRAMENTO, Calif. — Omar Isho, 37, of Modesto, was sentenced today by U.S. District Judge Morrison C. England Jr. to five years and 10 months in prison for possession with intent to distribute methamphetamine, U.S. Attorney McGregor W. Scott announced.
According to court documents, federal agents began investigating Isho as the operator of vendor account “DrFrosty,” which sold methamphetamine on dark net marketplaces such as the Dream Market, Empire Market, and Silk Road 3.1. Federal agents conducted undercover purchases of methamphetamine from his accounts and were sent methamphetamine hidden inside jigsaw puzzle boxes. On Aug. 8, Isho pleaded guilty to possession with intent to distribute at least 50 grams or more of methamphetamine.
“Homeland Security Investigations (HSI) will continue to identify, investigate and bring to justice criminals, like Isho, who seek to profit from trafficking illegal drugs through online black markets,” said Tatum King, special agent in charge, HSI San Francisco and Northern California. “The result of this multi-agency investigation sends a strong message to drug traffickers that the anonymity of the internet will not prevent law enforcement from executing our public safety mission. HSI will continue to leverage its global reach with local, state, federal, and foreign law enforcement partnerships to investigate, disrupt, and dismantle hidden illegal networks that pose threats in both cyberspace and in our local communities.”
This case was the product of an investigation by the Northern California Illicit Digital Economy (NCIDE) Task Force, a multi-agency taskforce composed of law enforcement agents from HSI, the U.S. Postal Inspection Service, the FBI, and the DEA. Assistant U.S. Attorney Quinn Hochhalter prosecuted the case.
Previously Convicted Felon Sentenced to 3 Years in Prison After Arrest in Fairfield for Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — Brandon Edward Nichols, 28, of San Leandro, was sentenced today by U.S. District Judge Morrison C. England Jr. to three years in prison for being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court records, in December 2017, Fairfield police stopped Nichols’ car for a vehicle code violation. Nichols produced various credit cards and pieces of identification issued in other people’s names and was arrested for possessing these fraudulent cards. A gun was found in the driver-side door and a second gun was found during a subsequent search of Nichols’ hotel room. Nichols cannot lawfully possess firearms or ammunition because he has previously been convicted of three felony offenses. Nichols pleaded guilty on Feb. 21.
This case was 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.
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.
Reedley Man Convicted of Drug and Gun ChargesRead the Press Release
FRESNO, Calif. — On Wednesday, after a two–day trial, a jury found Netzahualcoyotl Cerna, 40, of Fresno, guilty of one count of carrying a firearm during a drug trafficking crime, being a felon in possession of a firearm, and possession with intent to distribute methamphetamine, U.S. Attorney McGregor W. Scott announced.
According to evidence presented at trial, on April 8, 2019, Cerna, a convicted felon, was arrested in Reedley for parole violations. Cerna was in possession of a loaded gun and approximately 121 grams of methamphetamine. Cerna admitted to law enforcement officers that he intended to sell the methamphetamine to make money and that he was carrying the firearm for protection because gang members were trying to tax his drug proceeds.
This case is the product of an investigation by the Drug Enforcement Administration, the California Department of Corrections and Rehabilitation, and the Reedley Police Department. Assistant U.S. Attorneys Katherine Schuh and Kathleen Servatius are prosecuting the case.
Cerna is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Jan. 27, 2020. Cerna faces a mandatory minimum sentence of 15 years in prison, and a maximum statutory penalty of life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This 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.
Vallejo Man Sentenced to 12 Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — Sammy Davis Dewitt Morgan, 38, of Vallejo, was sentenced today by U.S. District Judge John A. Mendez to 12 years in prison for being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court records, in Dec. 2017, Morgan led police on a high-speed chase through a residential area in Vallejo at speeds that reached 75 miles per hour. The chase ended when Morgan lost control of his car and crashed into the security fencing at a local business. When Morgan got out of his car, officers detained him in handcuffs. As the officers were doing so, they found a .40-caliber pistol with a 22-round extended magazine in Morgan’s waistband. Afterwards, the officers conducted a parole search at Morgan’s apartment and found ammunition in various calibers. Morgan cannot lawfully possess firearms or ammunition because he has previously been convicted of six felony offenses. Morgan pleaded guilty on Oct. 23, 2018.
This case was the product of an investigation by the Vallejo Police Department with assistance from the FBI’s Solano County Violent Crimes Task Force and the Solano County District Attorney’s Office.
U.S. Marshals Auctioning Collection of 149 Classic, Luxury VehiclesRead the Press Release
Washington, DC – The U.S. Marshals are holding a live auction in Woodland, California, at 9 a.m. PDT Saturday, Oct. 26, for approximately 149 classic, luxury and performance vehicles from a federal civil case involving the owners of the defunct DC Solar company in the Eastern District of California.
The auction will be held at Apple Towing, 550 N. Pioneer Ave., Woodland, CA 95776. The auction will also be simulcast on the web, so people can participate without having to attend in person.
An auction preview will take place from 8 a.m. to 4 p.m. Thursday, Oct. 24, and Friday, Oct. 25, at the same location as the auction. Prebidding is currently underway via the Apple Auctioneering Company website, www.appleauctioneeringco.com.
“It is rare for the U.S. Marshals to hold an auction of such a stunning collection of vehicles,” said Chief Deputy U.S. Marshal Lasha Boyden with the Sacramento office of the U.S. Marshals. “We’ve got classic 1960s Ford Mustangs, 1990s Humvees, a 1960 Austin-Healey, and even a 1978 Pontiac Trans Am that was owned by Burt Reynolds as a memento of the car he drove in the movie ‘Smokey and the Bandit.’”
The vehicles are being sold pursuant to an interlocutory sale order in the federal case United States v. 2011 BMW 328i, et al., case number 19-mc-00053 in the Eastern District of California.
For more information and photos: auction website: www.appleauctioneeringco.com
The Department of Justice Asset Forfeiture Program is a key component of the federal government’s law enforcement efforts to combat major criminal activity by disrupting and dismantling illegal enterprises, depriving criminals of the proceeds of illegal activity, deterring crime and restoring property to victims. The U.S. Marshals Service plays a critical role in identifying and evaluating assets that represent the proceeds of crime as well as efficiently managing and selling assets seized and forfeited by DOJ.
Two plead guilty to participation in a Ponzi scheme involving $2.5 billion in transactions and $1 billion in lossRead the Press Release
SACRAMENTO, Calif. — Two defendants pleaded guilty today to their 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.
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, Ronald J. Roach, 53, of Walnut Creek, a certified public accountant, provided accounting and tax services to the solar energy company. To trick investors, Roach prepared years of financial statements that falsely characterized investments to purchase MSGs as revenue earned from the rental of those MSGs. Roach and his co-conspirators used those fraudulent financial statements 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-like scheme. Roach also pleaded guilty to securities violations associated with the same investment fraud scheme.
Joseph W. Bayliss, 44, of Martinez, a general contractor and electrician who provided services to the solar energy company, pleaded guilty to conspiring with Roach and others in connection with the same scheme to defraud investors. Bayliss admitted to preparing thousands of false reports certifying the existence and operating specifications of thousands of MSGs sold to investors. Bayliss admitted that, for at least two years, he signed many of those false reports knowing that the MSGs associated with them did not exist, and knowing investors would rely on those false reports. Bayliss also admitted that, at the direction of a co-conspirator, he flew to Las Vegas to destroy evidence after the execution of search warrants at the company’s headquarters and other locations in December 2018.
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.
The investigation is ongoing. Roach and Bayliss are schedule to be sentenced by U.S. District Judge John A. Mendez on Jan. 28, 2020. Roach faces a maximum statutory penalty of 10 years in prison. Bayliss faces a maximum statutory penalty of five years in prison. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Sacramento Man Sentenced to 10 Years in Prison for Possessing Methamphetamine for DistributionRead the Press Release
SACRAMENTO, Calif. — Andre Ramon Washington, 47, of Sacramento, was sentenced today by U.S. District Judge John A. Mendez to 10 years in prison for possessing methamphetamine for distribution, U.S. Attorney McGregor W. Scott announced.
According to court records, federal agents began investigating Washington based on reports that he was distributing narcotics from his home in Sacramento. In 2017 and 2018, agents identified two of Washington’s suppliers — co-defendants Roland Adrian Jufiar, 44, and David Garcia Romero, 44, both from Sacramento. In March 2018, federal agents executed search warrants at Washington’s, Jufiar’s, and Romero’s homes. At Washington’s home, the agents found approximately 1 pound of powder cocaine, a half-pound of cocaine base (crack cocaine), over 2 pounds of methamphetamine, and a 9 mm pistol. Agents found narcotics and firearms at the co-defendants’ homes as well. Washington pleaded guilty on June 25.
In August, Jufiar and Romero pleaded guilty to separate narcotics offenses. They are scheduled to be sentenced in Nov. 2019.
This case is 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.
Man Who Sold Guns at Reno Gun Shows Charged with Unlicensed Sale of FirearmsRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a six-count indictment last Thursday against Gary Osterhout, 65, of Sparks, Nevada, charging him with unlawful dealing in firearms and five counts of unlawful sale of a firearm to an out-of-state resident, U.S. Attorney McGregor W. Scott announced.
According to court documents, Osterhout routinely purchased guns from federally licensed firearms dealers and then turned around and sold the guns for a markup at unregulated guns shows throughout Nevada. Osterhout sold guns without filling out the required ATF paperwork and without conducting a background check. During the four-year period between March 2015, and February 2019, Osterhout purchased over 290 guns. At least 14 of those guns were later found by law enforcement as part of criminal investigations.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Justin Lee is prosecuting the case.
If convicted, Osterhout faces a maximum statutory penalty of five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Fresno Residents Plead Guilty to Aiming a Laser at CHP AircraftRead the Press Release
FRESNO, Calif. — Today Carlos Villa-Lozano, 31, and Paulina Silva Aguilar, 33, both of Fresno, Calif., entered guilty pleas to aiming the beam of a laser pointer at a California Highway Patrol aircraft, U.S. Attorney McGregor W. Scott announced.
According to their plea agreements, on July 22, 2018, both Villa-Lozano and Silva used a dangerously bright green laser pointer, a Model 301, to strike a CHP fixed wing aircraft approximately 12 times. The laser strikes caused the CHP airmen to experience temporary blindness and disorientation. Villa-Lozano obstructed justice by materially misrepresenting to the FBI the nature of his involvement in the crime.
The Model 301 laser pointer has a prominent warning label that indicates that the laser is dangerous and should not be pointed at the eye. The Model 301 is advertised as emitting 500 milliwatts of power and having the ability to burn a match. According to the Food and Drug Administration, which regulates laser products, handheld laser devices are limited to 5 milliwatts output power. Lasers that emit more than 5 and up to 500 milliwatts of power are very dangerous and may cause permanent damage to the eye. Lasers pose a particular hazard to pilots, since sustained visual interference caused by lasers could interfere with the safe operation of the aircraft. According to the Federal Aviation Administration, this year there have been 15.7 laser incidents per day involving aircraft in the United States.
This case is the product of an investigation by the FBI and the California Highway Patrol. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
Villa-Lozano and Silva are scheduled for sentencing on Jan. 30, 2020. Villa-Lozano and Silva face 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.
Fresno Resident Pleads Guilty to Unlawfully Possessing Firearm After Ordering Machine Gun Parts from ChinaRead the Press Release
FRESNO, Calif. — Eric Vang, 36, of Fresno, pleaded guilty today to being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, a Chinese distributer mailed a package to Vang that contained parts to convert a Glock handgun into a fully automatic machine gun. Following a search of Vang’s residence, federal agents found and seized several other firearms and several parts resembling silencers for those firearms. Vang is a previously convicted felon and is prohibited from possessing firearms.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Homeland Security Investigations (HSI). Assistant U.S. Attorney Thomas Newman is prosecuting the case.
Vang is scheduled to be sentenced by U.S. District Judge Lawrence J. O’Neill on Jan. 27, 2020. Vang faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Visalia Man Indicted for Theft in Kings Canyon National ParkRead the Press Release
FRESNO, Calif. — A federal grand jury returned an indictment today against Dallas Fonseca, 43, of Visalia, charging him with felony theft in Kings Canyon National Park, U.S. Attorney McGregor W. Scott announced.
According to court documents, between Feb. 9, and March 11, Fonseca, who worked in the park’s John Muir Lodge, is alleged to have stolen a Rolex and other jewelry belonging to another person with an estimated value of over $16,000.
This case is the product of an investigation by the National Park Service. Assistant U.S. Attorneys Mark McKeon and Joseph Barton are prosecuting the case.
If convicted, Fonseca faces a maximum penalty of five years in prison and a $250,000 fine. 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. Fonseca is presumed innocent unless and until he is proven guilty beyond a reasonable doubt.
Two Indicted for Heroin Distribution and Unlawful Firearms Dealing in StocktonRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment today against Josevan Arias, 25, of Posen, Illinois, and Elmer Rodriguez-Colio, 30, of Sacramento, charging both with conspiracy to distribute, and distribution of, heroin, and charging Arias separately with dealing firearms without a license, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Aug. 13, 2018, Arias explained to a law enforcement informant that he had access to high-powered rifles, including AR-style firearms, and arranged to sell multiple weapons to the informant. Over the course of the investigation, Arias sold the informant four AR-style rifles and two AK-47 rifles. At no time did Arias have a federal firearms license. In addition, Arias worked with Rodriguez-Colio to supply the informant with heroin. Rodriguez-Colio separately sold heroin to the same informant at another time.
This case is the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the San Joaquin County Metropolitan Narcotics Task Force. Assistant U.S. Attorney James Conolly is prosecuting the case.
If convicted, Arias and Rodriguez-Colio face a mandatory minimum penalty of five years in prison, and a maximum statutory penalty of 40 years in prison and a $5 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.
Two Indicted for Conspiring to Grow over 8,000 Marijuana Plants in Shasta-Trinity National ForestRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Armando Vargas Garcia, 37, of Mexico, and Eduardo Montero Aleman, 37, of Puerto Vallarta, Mexico, charging them with conspiracy to cultivate marijuana, marijuana cultivation in the Shasta-Trinity National Forest, and depredation of federal lands and resources, U.S. Attorney McGregor W. Scott announced.
According to court documents, between Aug. 29 and Sept. 5, the defendants were involved in the cultivation of 8,656 marijuana plants in the Big Mountain area in Shasta-Trinity National Forest. Two compound archery bows, nine arrows, and 42 rounds of hollow-point .22-caliber ammunition were discovered on the site. Officers also discovered bottles of carbofuran, a toxic pesticide, which is banned in the United States. The defendants were arrested on September 5. Both defendants are in custody.
This case is the product of an investigation by the U.S. Forest Service, the Trinity County Sheriff’s Department, the California Department of Fish and Wildlife, and the Trinity County District Attorney’s Office. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.
If convicted of either of the marijuana charges, the defendants face a mandatory minimum penalty of 10 years in prison, and a maximum penalty of life in prison and a $10 million fine. If convicted of damaging public lands, the defendants face a maximum penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account several variables. These charges are only allegations; the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Three Charged with Distribution of Methamphetamine, Heroin, and Cocaine in StocktonRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 10-count indictment today against Gildardo Barrios, 40, and Marisa Munguia, 40, both of Chowchilla, and Maria Barrios-Alvarez, 44, of Stockton, charging them with multiple counts of distributing narcotics, including methamphetamine, cocaine, and heroin. Barrios and Barrios-Alvarez were also charged with conspiring to distribute methamphetamine and cocaine, U.S. Attorney McGregor W. Scott announced.
According to court documents, over the course of a year and a half, Barrios sold methamphetamine, cocaine, and heroin to a confidential informant on several occasions in the Stockton area. On at least two occasions, Barrios did not deliver the narcotics himself, but had Munguia or Barrios-Alvarez meet the informant to deliver the drugs and receive payment on Barrios’ behalf.
This case is the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the San Joaquin County Metropolitan Narcotics Task Force. Assistant U.S. Attorney James Conolly is prosecuting the case.
All three defendants are currently in federal custody, awaiting trial.
If convicted, Barrios faces a statutory minimum sentence of 10 years in prison, up to a maximum life, and a $10 million fine. Munguia and Barrios-Alvarez each face a statutory minimum sentence of five years in prison, with a maximum of 40 years, and a $5 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.
Stockton Man Indicted for Possession of Unregistered SilencersRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Alan Alfredo Garcia, 23, of Stockton, charging him with possession of unregistered silencers, U.S. Attorney McGregor W. Scott announced.
According to court documents, law enforcement officers found two firearms silencers during a search of Garcia’s residence. The silencers were not registered to Garcia in the National Firearms Registration and Transfer Record, as required under federal law.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the San Joaquin County Sheriff’s Office, and the Stockton Police Department. Assistant U.S. Attorney David W. Spencer is prosecuting the case.
If convicted, Garcia faces a maximum statutory penalty of 10 years in prison and a $10,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Fresno Man Indicted for Conspiring to Distribute Methamphetamine, Heroin and CocaineRead the Press Release
FRESNO, Calif. — A federal grand jury returned a five-count indictment today against Israel Chavez Tamayo, 33, of Fresno, charging him with conspiracy to distribute and possess with the intent to distribute methamphetamine, cocaine, and heroin, distribution of cocaine, distribution of methamphetamine, and two counts of possessing methamphetamine and heroin with the intent to distribute, U.S. Attorney McGregor W. Scott announced.
According to court documents, Tamayo negotiated the sale of 8 kilograms of methamphetamine and 1 kilogram of heroin to an individual and was then stopped on his way to deliver the drugs. Officers found approximately 17 pounds of methamphetamine and over 2 pounds of heroin in his vehicle. An additional quantity of methamphetamine and heroin was found at his residence pursuant to a search warrant.
This case is the product of an investigation by the Drug Enforcement Administration, California Highway Patrol, the Merced Area Gang and Narcotics Team, the Madera County Narcotic Enforcement Team, Fresno County Sheriff’s Office, and the Fresno High Impact Investigation Team. Assistant U.S. Attorney Laurel J. Montoya is prosecuting the case.
If convicted, Tamayo faces a maximum statutory penalty of 10 years to life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, 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.
Former Chief Operating Officer of Davis Bio-Pesticide Company Pleads Guilty to Conspiracy to Commit Mail, Wire, and Securities FraudRead the Press Release
SACRAMENTO, Calif. — Hector Absi, 51, of Las Vegas, Nevada, pleaded guilty today to one count of conspiracy to commit mail fraud, wire fraud, and securities fraud, U.S. Attorney McGregor W. Scott announced.
According to court documents, Absi is the former head of the sales department of Marrone Bio Innovations Inc. (MBI), a company headquartered in Davis, California that produces “bio-based” pesticides. Absi also served as MBI’s Chief Operating Officer from January 2014 until his resignation in August 2014. MBI is a publicly traded company; its stock trades on the NASDAQ exchange under the ticker symbol “MBII.” As a publicly traded company, it is required to file quarterly and annual reports with the Securities and Exchange Commission (SEC). In its reports, MBI stated that it recorded revenue in accordance with generally accepted accounting principles (GAAP).
According to Absi’s plea agreement, in order to increase sales, Absi sold MBI products to customers with side agreements that offered “inventory protection” under which MBI agreed to either repurchase the product from the customer or continue the date by which the customer would need to make full payment for the product. Under GAAP, revenue from sales that include such agreements cannot be recognized on the company’s books at the time of the sales. Between March 2013 and July 2014, Absi conspired with at least one other MBI employee to misrepresent to MBI’s accounting department, its external auditors, and the investing public that MBI had made sales under such terms. By concealing the practice, Absi caused MBI to report a doubling of its revenue in 2013 in comparison to 2012. Absi also conspired to backdate the delivery of certain shipments of MBI’s products to enhance MBI’s reported revenues for the quarter. Absi received a performance-based bonus and exercised stock options during a time when MBI’s inflated revenue figures were being reported.
The Securities and Exchange Commission has also filed a civil complaint against Absi in the U.S. District Court for the Eastern District of California, alleging that Absi violated the Securities Act of 1933, and the Securities Exchange Act of 1934, and federal rules issued under the Exchange Act, and seeking an injunction against Absi, disgorgement of wrongfully obtained benefits, and civil penalties.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Lee S. Bickley is prosecuting the case.
U.S. District Judge Morrison C. England Jr. is scheduled to sentence Absi on Feb. 20, 2020. Absi faces a maximum statutory penalty of 25 years in prison and a $250,000 fine or twice the gross loss or gain. 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.
Defendant given extra prison time for failing to self-surrender for first sentenceRead the Press Release
SACRAMENTO, Calif. — Damanpreet Singh, 34, of Los Angeles, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to nine additional months in prison for failing to self-surrender to serve his prison sentence, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Sept. 14, 2018, Singh was sentenced to two years in prison for conspiring to commit bribery, identity fraud and unauthorized access of a computer. He was ordered to self-surrender to begin serving his prison sentence on Jan. 4, 2019. Rather than turn himself in, however, Singh purposefully took steps to remain out of custody. He stopped answering his phones and drove a rental car to avoid detection.
When he was eventually arrested at the Burbank Airport on March 13, 2019, Singh lied to officers about who he was in order to remain out of custody.
This case was a product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Rosanne L. Rust prosecuted the case.
Stockton Man Indicted for Illegal Firearm Possession and SalesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment today against Antonio Soto-Perez, 26, of Stockton, charging him with being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, over the course of four undercover purchases, Soto-Perez sold an informant a total of nine firearms, including a weapon with a high-capacity magazine, one with an obliterated serial number, and two assault rifles.
This case is the product of an investigation by the FBI and the San Joaquin County Metropolitan Narcotics Task Force. Assistant U.S. Attorney James Conolly is prosecuting the case.
If convicted, Soto-Perez 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.
Sixth Defendant Pleads Guilty in Firearm Trafficking from Tennessee to Kings CountyRead the Press Release
FRESNO, Calif. — Elvia Sanchez, 42, of Lenoir City, Tennessee, pleaded guilty today to conspiring to traffic in firearms by an unlicensed person, and the illegal transportation of firearms received in a state of residency, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Nov. 29, 2016, and June 12, 2017, Elvia Sanchez mailed firearms from Tennessee to Rafael Sanchez in California in connection with a conspiracy to traffic in firearms.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation. The U.S. Postal Inspection Service, Lenoir City Police Department in Tennessee, Homeland Security Investigations (HSI), and the U.S. Attorney’s Office for the Eastern District of Tennessee assisted in the investigation. Assistant U.S. Attorneys Thomas Newman and Stephanie Stokman are prosecuting the case.
Elvia Sanchez is scheduled to be sentenced by U.S. District Judge Lawrence J. O’Neill on Jan. 6, 2020. Sanchez faces a maximum statutory penalty of five years in prison and a $250,000 fine related to the conspiracy to traffic in firearms by an unlicensed person, and five years in prison and a $250,000 fine related to illegal transportation of firearms from her state of residence. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Registered Nurse Pleads Guilty to Medicare Kickback SchemeRead the Press Release
SACRAMENTO, Calif. — John Eby, 46, of Fair Oaks, pleaded guilty today to conspiring with the owners of home health agencies to pay and receive illegal kickbacks in exchange for Medicare beneficiary referrals, U.S. Attorney McGregor W. Scott announced.
According to court documents, Eby is a registered nurse who was a case manager at a nonprofit hospital in Sacramento. As a case manager, Eby was responsible for assisting Medicare beneficiaries in selecting post-acute care providers, including home health care and hospice agencies, after the beneficiaries were discharged from the hospital. Eby used his position to steer Medicare beneficiaries to home health agencies in Folsom and El Dorado Hills. From approximately September 2015 through November 2018, the home health agency owners used an intermediary to pay Eby illegal kickbacks for beneficiary referrals.
According to court documents, in total, Eby referred approximately 55 beneficiaries to the agencies in exchange for kickbacks, and Medicare paid the agencies approximately $250,000 for services they purportedly provided to the beneficiaries. Because the agencies obtained the beneficiary referrals by paying kickbacks, they should not have received any reimbursement from Medicare.
In addition to the conspiracy charge, Eby pleaded guilty to one count of accepting a $1,000 cash kickback in exchange for referring five Medicare beneficiaries to the home health agency in Folsom.
This case is a product of an investigation by the Federal Bureau of Investigation and the Department of Health and Human Services’ Office of Inspector General. Assistant U.S. Attorney Matthew Thuesen is prosecuting the case.
U.S. District Judge Morrison C. England Jr. is scheduled to sentence Eby on Jan. 9, 2020. Eby faces maximum statutory penalties of five years in prison for the conspiracy charge and 10 years in prison for the kickback charge. Eby also faces a maximum fine of $250,000 or twice the gross gain or loss for each charge. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Rancho Cordova Man Pleads Guilty to Conspiring to Sell Narcotics Through Social MediaRead the Press Release
SACRAMENTO, Calif. — Nathan Paul Barnes, 24, of Rancho Cordova, pleaded guilty today to conspiring to distribute narcotics, U.S. Attorney McGregor W. Scott announced.
According to court documents, Barnes operated a drug distribution enterprise called “Fine Cali Herb” that used various social media platforms, including Instagram and Snapchat. Barnes sold marijuana, THC products, and psilocybin mushrooms to customers throughout the United States and abroad. Barnes received payment for the narcotics in several forms, including bitcoin.
This case is the product of an investigation by the Northern California Illicit Digital Economy (NCIDE) Task Force, consisting of agents from Homeland Security Investigations, the Federal Bureau of Investigation, the U.S. Postal Inspection Service, and the Drug Enforcement Administration. The NCIDE Task Force targets all forms of dark-web and cryptocurrency criminal activity in the Eastern District of California. Assistant U.S. Attorneys Grant B. Rabenn and Paul A. Hemesath are prosecuting the case.
Barnes is scheduled to be sentenced by Judge John A. Mendez on Jan. 14, 2020. Barnes faces a maximum statutory penalty of 20 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Opioid Awareness Summit Arms Educators to Combat Opioid AbuseRead the Press Release
FRESNO, Calif. — Sponsored by the U.S. Attorney’s Office, more than 225 educators, school nurses, counselors, mental health clinicians and others with an interest in student health have convened today at the Opioid Awareness Summit for Educators. The daylong summit is being held at Fresno State University.
The summit is focused on four specific goals 1) building awareness of the scope and state of the national opioid epidemic and its impact on young adults in our region; 2) destigmatizing opioid misuse to provide for more effective treatment interventions; 3) having a beneficial conversation with a student if approached about drug misuse; and 4) building awareness of the warning signs that a student or child is misusing opioids.
Participants will hear from medical, public health and law enforcement professionals about the science of addiction, treatment options, ready-for-use resources for educators, and best practices for implementing an opioid awareness program in their own schools. Additionally, U.S. Department of Justice policy and current enforcement efforts will also be discussed.
U.S. Attorney McGregor W. Scott said: “Opioid abuse is one of the most urgent law enforcement and public health challenges facing our country today and needs a three-pronged approach: education and prevention, treatment, and enforcement. Today’s opioid summit for educators brings together all three prongs and highlights our office’s ongoing commitment to keeping communities safe by preventing drug abuse and overdose deaths.”
Jim Yovino, Fresno County Superintendent of Schools explains about the importance of this summit: “The opioid crisis is not only a national epidemic, but it is gripping families close to home. As educators, we must participate in this important discussion to keep our students healthy and safe.”
The U.S. Attorney’s Office is sponsoring the summit, along with the California Narcotic Officer’s Association, the Central Valley Opioid Safety Coalition, the Drug Enforcement Administration, the Foundation at FCOE, the Fresno County Department of Public Health, the Fresno Madera Medical Society, the Fresno Police Officer’s Association, the Fresno State Police Department, the Fresno State University, and the Office of the Fresno County Superintendent of Schools. Assistance was also provided by the California Health Collaborative, the Fresno County District Attorney’s Office, the Fresno County Sheriff’s Department, the Fresno Police Department, the Lock It Up Project, and the U.S. Department of Health and Human Services.
Stanislaus County Man Admits to Defrauding Concert Promoters and InvestorsRead the Press Release
SACRAMENTO, Calif. — A Patterson man pleaded guilty today to defrauding concert promoters and investors of $550,000 by claiming to be able to secure well-known artists to perform concerts, U.S. Attorney McGregor W. Scott announced.
Jordan Mouton, aka Big Cheeze, 39, pleaded guilty to wire fraud and aggravated identity theft for falsely representing his ability to arrange concerts featuring well-known entertainment artists. Mouton also pleaded guilty to engaging in monetary transactions involving criminally derived property.
According to court documents, Mouton held himself out as a person of substantial reputation in the entertainment industry who could secure the services of entertainment artists to perform concerts in Asia and elsewhere, including the services of artists known as Snoop Dogg, Maroon 5, and Rihanna, among others. Mouton provided concert promoters and investors numerous fraudulent documents, including documents containing forged signatures of entertainment artists and their managers. For example, Mouton gave one victim an “Artist Management Agreement” containing a forged signature of Snoop Dogg. The agreement purportedly appointed Mouton to serve as Snoop Dogg’s “[m]anager, adviser and representative throughout China and greater Asia.” Mouton provided the same victim with counterfeit passports purportedly belonging to members of Maroon 5. Additionally, Mouton admitted that he gave another victim letters containing forged signatures that purportedly authorized Mouton to book and organize performances by Rihanna and another artist on what Mouton and others referred to as the “Asia Monster Tour” or “Asian Monster Tour.”
This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the U.S. Department of State’s Diplomatic Security Service (DSS). Assistant U.S. Attorney Matthew Thuesen is prosecuting the case.
U.S. District Judge Kimberly J. Mueller is scheduled to sentence Mouton on March 16, 2020. Mouton faces maximum statutory penalties of 20 years in prison and a fine of up to $250,000 or twice the gross gain or loss on the wire fraud charge. For engaging in transactions involving criminally derived property, Mouton faces maximum statutory penalties of 10 years in prison and a fine of up to $250,000 or twice the amount of property involved in the transaction. Finally, the statutory maximum penalties for aggravated identity theft are a mandatory term of two years in prison and a fine of up to $250,000 or twice the gross gain or loss. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Mexican National Pleads Guilty to Conspiring to Transport Four Kilograms of Heroin into the United StatesRead the Press Release
FRESNO, Calif. — Bertoldo Arellanes-Perez, 32, of Chihuahua, Mexico pleaded guilty today to conspiring to possess with the intent to distribute heroin, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Feb. 22, Arellanes-Perez and two other individuals traveled to the United States from Mexico with four kilograms of heroin. Before he traveled to the United States, Arellanes-Perez brokered the sale of the heroin in a series of phone calls. In the recent past, Arellanes-Perez transported narcotics to other locations in the United States, including Colorado.
This case is the product of an investigation by the Drug Enforcement Administration, and Homeland Security Investigations (HSI). The U.S. Attorney’s Office for the Eastern District of Tennessee also assisted in the investigation. Assistant U.S. Attorney Thomas Newman is prosecuting the case.
Arellanes-Perez is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Jan. 13, 2020. Arellanes-Perez faces a mandatory minimum 10 year sentence up to a lifetime terms, and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Los Angeles Man Pleads Guilty to Conspiring to Distribute Narcotics on the Dark WebRead the Press Release
FRESNO, Calif. — William James Farber, 39, of Los Angeles, pleaded guilty today to conspiring to distribute narcotics, U.S. Attorney McGregor W. Scott announced.
According to court documents, Farber and his co-conspirators, operating under the name PureFireMeds, sold narcotics including marijuana, cocaine, oxycodone, hydrocodone, psilocybin, MDMA (Ecstasy), LSD, and ketamine on dark web marketplaces, including Silk Road. After Silk Road was shut down by law enforcement in Oct. 2013, Farber and his co‑conspirators began selling on the AlphaBay dark web marketplace under the name HumboldtFarms. It became one of the largest vendors on AlphaBay, completing tens of thousands of orders for marijuana on the site to customers throughout the United States.
This case is the product of an investigation by Homeland Security Investigations (HSI), the U.S. Postal Inspection Service in Los Angeles, the Los Angeles Police Department, and the Bakersfield Police Department with assistance from the Los Angeles Joint Regional Intelligence Center. Assistant U.S. Attorneys Grant B. Rabenn and Ross Pearson are prosecuting the case.
Farber is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on April 20, 2020. Farber faces a maximum statutory penalty of 20 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, 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.
Kings County and Tennessee Residents Plead Guilty to Firearm Trafficking ChargesRead the Press Release
FRESNO, Calif. — Rafael Sanchez, 40, of Kettleman City; Victor Luna, 25, and Ashley Sanchez, 23, both of Lenoir City, Tennessee pleaded guilty today to conspiring to traffic in firearms by an unlicensed person, and Rafael Sanchez also pleaded guilty to unlawfully possessing a firearm as a convicted felon, U.S. Attorney McGregor W. Scott announced.
According to court documents, from April 2016 until March 2018, Tennessee-based co‑conspirators Victor Luna, Ashley Sanchez, Juan Gonzalez-Mejia, and Alexis Sanchez assisted in purchasing firearms in Tennessee that were shipped to California. At the direction of Rafael Sanchez, Victor Luna and Juan Gonzalez-Mejia purchased firearms in Tennessee that the other co-conspirators packaged and mailed to Rafael Sanchez in California. Rafael Sanchez then sold the firearms to individuals in California. Rafael Sanchez also pleaded guilty to unlawfully possessing a firearm after having been convicted a felony violation of assault with a deadly weapon in 1999. Rafael Sanchez admitted in his plea that, despite knowing he could not lawfully possess a firearm, he directed others to mail firearms to him in California, and on March 8, 2018, he was in possession of a ROMARM Cugir, Model Mini Draco.
On May 6, 2019, Juan Gonzalez-Mejia pleaded guilty to conspiracy to traffic in firearms by an unlicensed person and is scheduled to be sentenced on Dec. 9. On Sept. 30, Alexis Sanchez pleaded guilty to conspiracy to traffic in firearms by an unlicensed person and conspiracy to distribute narcotics. She is scheduled for sentencing on Dec. 16.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation. The U.S. Postal Inspection Service, Lenoir City Police Department in Tennessee, Homeland Security Investigations (HSI), and the U.S. Attorney’s Office for the Eastern District of Tennessee assisted in the investigation. Assistant U.S. Attorneys Thomas Newman and Stephanie Stokman are prosecuting the case.
Sentencing for today’s defendants is scheduled for Jan. 6, 2020. Victor Luna, Ashley Sanchez, and Rafael Sanchez face a maximum statutory penalty of five years in prison and a $250,000 fine related to the conspiracy to traffic in firearms by an unlicensed person. Rafael Sanchez also faces maximum statutory penalty of 10 years in prison and a $250,000 fine related to the conspiracy to traffic in firearms by an unlicensed person. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Kings County and Tennessee Residents Plead Guilty to Firearm Trafficking ChargesRead the Press Release
FRESNO, Calif. — Rafael Sanchez, 40, of Kettleman City; Victor Luna, 25, and Ashley Sanchez, 23, both of Lenoir City, Tennessee pleaded guilty today to conspiring to traffic in firearms by an unlicensed person, and Rafael Sanchez also pleaded guilty to unlawfully possessing a firearm as a convicted felon, U.S. Attorney McGregor W. Scott announced.
According to court documents, from April 2016 until March 2018, Tennessee-based co‑conspirators Victor Luna, Ashley Sanchez, Juan Gonzalez-Mejia, and Alexis Sanchez assisted in purchasing firearms in Tennessee that were shipped to California. At the direction of Rafael Sanchez, Victor Luna and Juan Gonzalez-Mejia purchased firearms in Tennessee that the other co-conspirators packaged and mailed to Rafael Sanchez in California. Rafael Sanchez then sold the firearms to individuals in California. Rafael Sanchez also pleaded guilty to unlawfully possessing a firearm after having been convicted a felony violation of assault with a deadly weapon in 1999. Rafael Sanchez admitted in his plea that, despite knowing he could not lawfully possess a firearm, he directed others to mail firearms to him in California, and on March 8, 2018, he was in possession of a ROMARM Cugir, Model Mini Draco.
On May 6, 2019, Juan Gonzalez-Mejia pleaded guilty to conspiracy to traffic in firearms by an unlicensed person and is scheduled to be sentenced on Dec. 9. On Sept. 30, Alexis Sanchez pleaded guilty to conspiracy to traffic in firearms by an unlicensed person and conspiracy to distribute narcotics. She is scheduled for sentencing on Dec. 16.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation. The U.S. Postal Inspection Service, Lenoir City Police Department in Tennessee, Homeland Security Investigations (HSI), and the U.S. Attorney’s Office for the Eastern District of Tennessee assisted in the investigation. Assistant U.S. Attorneys Thomas Newman and Stephanie Stokman are prosecuting the case.
Sentencing for today’s defendants is scheduled for Jan. 6, 2020. Victor Luna, Ashley Sanchez, and Rafael Sanchez face a maximum statutory penalty of five years in prison and a $250,000 fine related to the conspiracy to traffic in firearms by an unlicensed person. Rafael Sanchez also faces maximum statutory penalty of 10 years in prison and a $250,000 fine related to the conspiracy to traffic in firearms by an unlicensed person. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Bulldog Gang Member Sentenced to over 20 Years in Prison for Drug and Sex Trafficking OffensesRead the Press Release
FRESNO, Calif. —Today, U.S. District Judge Lawrence J. O’Neill sentenced Filiberto “Beto” Chavez, 38, of Fresno, to 20 years and 10 months in prison for conspiring to distribute methamphetamine, distribution of methamphetamine, possession with intent to distribute methamphetamine, conspiring to engage in interstate travel for prostitution and use of a cellphone to promote prostitution, U.S. Attorney McGregor W. Scott announced.
According to court documents and testimony at trial, on July 8, 2017, Chavez, a Bulldog gang member, sold methamphetamine to convicted co-defendant, Robert Lockhart. Convicted co-defendant Amina Padilla stored methamphetamine for Chavez and gave a portion of what she had stored to convicted co‑defendant Carlos Melgar to deliver to Lockhart. On July 11, 2017, agents served search warrants at Padilla’s and Lockhart’s apartments and seized methamphetamine from both.
Additionally, in June and July of 2017, Chavez and others travelled to New York to engage in prostitution activities. During the trip, Chavez used his cellphone to communicate with his co-defendants about prostitution and to make arrangements for posting prostitution ads. The ads were located in New York on Backpage.com.
“We’re pleased with the outcome of this investigation as it represents another important stride in our ongoing efforts to combat gang-related crime and sex trafficking in Northern California,” said Tatum King, special agent in charge, HSI (San Francisco and Northern California). “HSI will continue to partner with local, state, and federal law enforcement agencies and the U.S. Attorney’s Office in focusing our collective resources to pursue, disrupt, and dismantle transnational criminal organizations that show no regard for our nation’s laws or human welfare.”
Chavez is one of more than 25 defendants who were charged as part of “Operation Alpha Dog,” an investigation by Homeland Security Investigations, the Federal Bureau of Investigation, the Drug Enforcement Administration, the Fresno Police Department, the Multi‑Agency Gang Enforcement Consortium, the Fresno County Sheriff’s Office, and the Fresno County District Attorney’s Office. Assistant U.S. Attorneys Kimberly A. Sanchez, Jeffrey Spivak, and Thomas Newman 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). 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.
Vallejo Man Indicted for Unlawfully Possessing a Firearm After a High-Speed ChaseRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today against Jonathan Shane Blakeley, 25, of Vallejo, charging him with being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Sept. 20, law enforcement officers attempted to stop Blakeley for a traffic violation, but Blakeley refused to yield and led police on a high-speed chase through Vallejo. Blakeley crashed his car on Interstate 80 and got out of his car and ran through several lanes of traffic. He tried to get into the passenger seat of a car that stopped to avoid hitting him. After police apprehended Blakeley, they found a Glock 9 mm pistol with a high-capacity magazine in his car. Blakeley cannot lawfully possess firearms or ammunition because he has previously been convicted of three felony offenses. When the current offense took place, Blakeley was on federal probation. He had just been released from federal prison less than 30 days prior, after having served a 30-month sentence for possessing a firearm as a felon.
This case is the product of an investigation by the Vallejo Police Department with assistance from the FBI’s Solano County Violent Crimes Task Force and the Solano County District Attorney’s Office.
If convicted, Blakeley 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.
Two Charged with Conspiring to Distribute Heroin in StocktonRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Ivan Martinez-Lopez, 29, a Mexican national, and Saul Moreno-Lemus, 22, of Reedley, charging them with conspiracy to distribute heroin and possession with intent to distribute heroin, U.S. Attorney McGregor W. Scott announced.
According to court documents, Martinez-Lopez and Moreno-Lemus arranged to sell several kilograms of heroin to a confidential informant who was working with law enforcement authorities at the time. At an arranged time and place, the informant met with the two men who showed the informant the heroin in the back seat of their car. At that time, the informant gave a signal to law enforcement agents surveilling the transaction. Officers converged on the scene and took both defendants into custody.
This case is the product of an investigation by the Federal Bureau of Investigation and the San Joaquin County Metropolitan Narcotics Task Force. Assistant U.S. Attorney James Conolly is prosecuting the case.
If convicted, both defendants face a mandatory minimum penalty of 10 years in prison, with a maximum of life, and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Roseville Couple Operating Dark Web Vendor Account “Dankstix” Plead GuiltyRead the Press Release
SACRAMENTO, Calif. — Xavier Alexander Speropoulos, 25, and Lauren Crowe, 20, both of Roseville, pleaded guilty today to illegal use of a cellphone in furtherance of a drug crime, U.S. Attorney McGregor W. Scott announced.
According to court documents, from Oct. 2017 through Jan. 22, 2019, when they were arrested, the defendants operated the vendor account “Dankstix” on Dream Market, a dark web marketplace. Through the Dankstix vendor account, the defendants illegally sold marijuana to customers throughout the United States in exchange for cryptocurrency.
This case is the product of an investigation by the Northern California Illicit Digital Economy Task Force (NCIDE), composed of agents from Homeland Security Investigations, the Federal Bureau of Investigation, the U.S. Postal Inspection Service, the Drug Enforcement Administration, and the IRS Criminal Investigation. The NCIDE Task Force is a joint, federal task force focused on targeting all forms of dark-web and cryptocurrency activity in the Eastern District of California. Assistant U.S. Attorneys Grant B. Rabenn and Paul Hemesath are prosecuting the cases.
Speropoulos and Crowe are scheduled to be sentenced by U.S. District Judge Troy L. Nunley on Jan. 16, 2020. Both defendants face a maximum statutory penalty of four 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.
Man Arrested in Rancho Cordova Sentenced to over 4 Years in Prison for Identity Theft and a Bank Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Cody Patrick Cannon, 31, a transient, was sentenced to four years and nine months in prison for bank fraud, aggravated identity theft, and possession of reproduced U.S. Postal Service keys, U.S. Attorney McGregor W. Scott announced.
According to court documents, between January and August 2018, Cannon and an accomplice engaged in a bank fraud scheme in which they used counterfeit U.S. Postal Service keys to open apartment complex mailboxes and steal hundreds of pieces of mail throughout Northern California. From the stolen mail, Cannon and the accomplice then harvested financial information, government-issued IDs, credit and debit cards, and personally identifiable information. They also defrauded banks by using the stolen cards to purchase goods and withdraw cash from ATMs in Vacaville, Folsom, Rocklin, and Rancho Cordova.
On Aug. 2, 2018, Cannon and co-defendant Candice Freitas were arrested at their RV, which was parked in a hotel parking lot in Rancho Cordova. They were found to be in possession of stolen mail, checks, multiple stolen and fake California driver’s licenses, at least two passports bearing the names of others, and at least seven counterfeit U.S. Postal Service mail keys.
The U.S. Postal Inspection Service has identified over 1,500 victims of mail theft associated with these offenses.
This case is the product of an investigation by the U.S. Postal Inspection Service, the Sacramento County Sheriff’s Department, the Folsom Police Department, and the Vacaville Police Department. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
Freitas has pleaded not guilty to the charges in the indictment and remains in custody pending trial, which is scheduled for April 20, 2020. The charges against her are only allegations; she is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Fresno Man Charged with Being a Felon in Possession of a FirearmRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Darren Duane Coleman, 24, of Fresno, charging him with being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, during a traffic stop, police officers observed Coleman reaching up in the area of the sunroof of the car that he was driving. Officers subsequently located a loaded firearm tucked in a pocket behind the car’s sunroof. Coleman is a convicted felon and prohibited from possessing firearms or ammunition.
This case is the product of an investigation by the Federal Bureau of Investigation, the Fresno Police Department, and the California Highway Patrol. Assistant U.S. Attorney Katherine Schuh is prosecuting the case.
If convicted, Coleman 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 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.
Two Convicted for Aiding the Flight of Accused Killer of Newman Police CorporalRead the Press Release
FRESNO, Calif. — Monday, a federal jury in Fresno convicted two defendants for assisting in an effort to help Paulo Virgen Mendoza’s escape from California to Mexico after he allegedly killed Newman Police Corporal Ronil Singh during a traffic stop, U.S. Attorney McGregor W. Scott announced.
Virgen Mendoza’s brother, Conrado Virgen Mendoza, 34, an illegal alien from Colima, Mexico, residing in Chowchilla; and friend, Erik Quiroz Razo, 28, an illegal alien from Michoacán, Mexico residing in Merced, were found guilty of conspiring to aid and abet Paulo Virgen Mendoza’s flight to avoid prosecution for murder. The jury acquitted other family members, Erasmo Villegas Suarez, 36, and Maria Luisa Moreno, 57, both of the Bakersfield-Lamont area. However, Villegas and Moreno have been issued notices to appear initiating deportation proceedings and Villegas faces additional federal charges relating to fraud involving identification documents. Villegas is scheduled to appear in court on Oct. 21 in connection with that case, and he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Paulo Virgen Mendoza’s girlfriend, Ana Leydi Cervantes Sanchez, 31, an illegal alien from Michoacán, Mexico, who was residing with Paulo in Newman, was sentenced today to one year and one day in prison after previously pleading guilty to conspiring to aid and abet Paulo’s flight to avoid prosecution for murder, conspiring to harbor an illegal alien, and harboring an illegal alien. Paulo Virgen Mendoza is an illegal alien from Colima, Mexico. Virgen Mendoza’s brother, Adrian Virgen Mendoza, 26, an illegal alien from Colima, Mexico, previously pleaded guilty to conspiring to aid and abet his brother’s flight to avoid prosecution for murder and was sentenced to one year and nine months in prison. Moreno’s husband, Bernabe Madrigal Castañeda, 60, an illegal alien of Colima, Mexico, also previously entered a guilty plea to the conspiracy and was sentenced to one year and one day in prison. Cervantes, Adrian Virgen Mendoza, and Madrigal have been issued notices to appear initiating deportation proceedings after serving their prison terms.
According to court documents and evidence presented at trial, in the early morning hours of Dec. 26, 2018, Paulo returned to his residence in Newman after killing Newman Police Corporal Ronil Singh during a traffic stop. In the following two days, Paulo’s friends and relatives conspired together to help him escape to Mexico. Conrado, Quiroz, Cervantes, Adrian Virgen Mendoza, and Madrigal were aware from news coverage, social media, and from cellphone alerts that Paulo was wanted for murder of an officer. Nevertheless, Conrado and Quiroz helped him to conceal his truck and drove him to various locations, and Quiroz disposed of Paulo’s loaded firearm. Cervantes provided Paulo with clothes, and Madrigal provided him with food and shelter.
As part of the conspiracy, Adrian Virgen Mendoza arranged for a smuggler to take Paulo across the border, and Adrian and Madrigal purchased a new cellphone for Paulo to use to communicate with the smuggler. On Dec. 28, SWAT officers were deployed to Moreno and Madrigal’s residence after receiving information that Paulo was there. Paulo was then arrested for murder.
Throughout the manhunt, there were immediate and widespread media reports and various alerts indicating that Paulo was wanted for killing Corporal Singh, identifying Paulo as an illegal alien, and showing Paulo’s photograph and the truck that he was driving at the time of the shooting. None of the defendants notified the authorities of their contacts with Paulo when they learned that he was wanted. Ultimately, Conrado directed law enforcement officers to the dumpster where Quiroz had thrown the gun.
This case is the product of an investigation led by Homeland Security Investigations and the Stanislaus County Sheriff’s Office with assistance from the Immigration and Customs Enforcement, Enforcement and Removal Operations; Central Valley High Intensity Drug Trafficking Area (HIDTA) task force; Southern Tri-County HIDTA; Bureau of Alcohol, Tobacco, Firearms, and Explosives; California Highway Patrol; California Department of Justice, the Sheriffs’ Offices for Kern, Merced, and Santa Cruz Counties; and the Police Departments for Merced, Turlock, Modesto, and Santa Cruz. Assistant U.S. Attorneys Karen A. Escobar, Laura D. Withers, and Michael G. Tierney are prosecuting the case.
Conrado Virgen Mendoza and Erik Quiroz Razo are scheduled to be sentenced by U.S. District Judge Dale A. Drozd on January 13, 2020. They face a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Social Security Administration Employee Pleads Guilty to Obtaining Unauthorized BenefitsRead the Press Release
FRESNO, Calif. — Martin Hernandez, 45, of Selma, pleaded guilty on Monday to one count of wire fraud in connection with a scheme to fraudulently obtain unauthorized Social Security benefit payments, U.S. Attorney McGregor W. Scott announced.
According to court documents, Hernandez met Social Security benefit recipients through his employment at the Social Security Administration. Hernandez recruited certain recipients to receive fraudulent payments in addition to the benefits that they were entitled to receive. These recipients agreed to return a substantial amount of the money they received from the fraudulent payments back to Hernandez. Hernandez electronically initiated the payments from his workstation at the Social Security Administration offices where he worked. After Hernandez caused the beneficiaries to receive the fraudulent overpayments, he would instruct them to meet him in person to give him cash. During the course of the scheme, Hernandez caused the Social Security Administration to make unauthorized payments of over $446,000.
This case is the product of an investigation by the Social Security Administration, Office of Inspector General. Assistant U.S. Attorney Mark J. McKeon is prosecuting the case.
Hernandez is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Jan. 13, 2020. Hernandez 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.
Mexican National Sentenced for Possessing Firearm Used in Connection with Marijuana CultivationRead the Press Release
FRESNO, Calif. — Fernando Daniel Velez Ruvalcaba, 35, of Jalisco, Mexico, was sentenced today to 21 months in prison for being an alien in possession of a firearm, which was found to have been used in connection with marijuana cultivation in the Sequoia National Forest, U.S. Attorney McGregor W. Scott announced.
According to court documents, law enforcement officers found Velez, an illegal alien who had previously been removed from the United States in 2012 and 2013, in a vehicle in the vicinity of a marijuana cultivation site in the Sequoia National Forest apparently waiting for suspects who fled from the site when it was raided. He was in possession of a loaded handgun that he had bought on the street for $600.
This case was the product of an investigation by the U.S. Forest Service and Fresno County Sheriff’s Office and was part of Operation Forest Watch, an enforcement effort targeting marijuana cultivation operations on public land and the damage they cause. Assistant U.S. Attorney Karen Escobar prosecuted the case.
Kings County Woman Pleads Guilty to Drug and Firearms Trafficking ChargesRead the Press Release
FRESNO, Calif. — Alexis Sanchez, 20, of Kettleman City, pleaded guilty today to conspiring to possess with the intent to distribute narcotics and conspiring to traffic in firearms by an unlicensed person, U.S. Attorney McGregor W. Scott announced.
According to court documents, between April 2016 and March 2018, Sanchez participated in a conspiracy to purchase and ship firearms from Tennessee to California. Sanchez assisted in sending firearms that were purchased by co-conspirators in Tennessee to California. The California-based co-conspirators then sold the firearms for a profit. In her plea agreement, Sanchez acknowledged that none of the conspirators were licensed firearms dealers. In addition, from Jan. 2017 to March 2018 Sanchez conspired with some of the same individuals to distribute narcotics.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation. The U.S. Postal Inspection Service, Lenoir City Police Department in Tennessee, Homeland Security Investigations (HSI), and the U.S. Attorney’s Office for the Eastern District of Tennessee assisted in the investigation. Assistant U.S. Attorneys Thomas Newman and Stephanie Stokman are prosecuting the case.
Alexis Sanchez is scheduled to be sentenced by U.S. District Judge Lawrence J. O'Neill on Dec. 16. Sanchez faces a maximum statutory penalty of 20 years in prison related to the distribution of narcotics, and a $1 million fine; and a maximum statutory penalty of five years in prison and a $250,000 fine related to the conspiracy to traffic in firearms by an unlicensed person. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe 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.
Inyo County Man Pleads Guilty to Operating a Plane Without a LicenseRead the Press Release
FRESNO, Calif. — Arnold Peterson, 57, of Big Pine, pleaded guilty today to operating a plane without an airman’s certificate, U.S. Attorney McGregor W. Scott announced.
According to court documents, on June 8, 2017, Peterson flew a private aircraft into Portales Municipal Airport located in Portales, New Mexico without having a valid airman certification issued by the Federal Aviation Administration.
On June 8, 2017, Peterson flew an aircraft through Class C Airspace at Lubbock Preston Smith International Airport in Lubbock, Texas without calling the airport’s Air Traffic Control (ATC). Two-way radio communication with ATC is required prior to entry into and while in Class C Airspace. His action caused a regional jet to deviate from its flight path in order to avoid the unknown, uncommunicative aircraft. ATC tracked the aircraft until in landed in Portales, New Mexico. A subsequent investigation established that the aircraft’s registration was expired and that Peterson’s previously issued airman certificate had been surrendered for revocation on June 17, 2014, and had never been reinstated.
“The guilty plea in this U.S. Department of Transportation, Office of Inspector General (DOT-OIG) investigation demonstrates our commitment to safeguarding the National Airspace System,” said Jeffrey Dubsick, DOT-OIG Regional Special Agent-in-Charge. “Working with the Federal Aviation Administration and our prosecutorial partners, we will continue our efforts to vigorously pursue unlicensed pilots who illegally operate aircraft.”
This case is the product of an investigation by the DOT-OIG and the Federal Aviation Administration. Assistant U.S. Attorneys Laura D. Withers and Vincente A. Tennerelli are prosecuting the case.
Peterson is scheduled to be sentenced on Dec. 16 by U.S. District Judge Lawrence J. O’Neill. Peterson faces a maximum statutory penalty of three years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.