Eastern District of California

SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment Thursday against Reginald Smith, 39, charging him with possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking offense, U.S. Attorney McGregor W. Scott announced.

This case is the product of an investigation by the Vallejo Police Department and the Solano County District Attorney’s Office. Assistant U.S. Attorney Vincenza Rabenn is prosecuting the case.

If convicted of the possession with intent to distribute methamphetamine offense, Smith faces a mandatory minimum of five years in prison and a maximum statutory penalty of 40 years in prison and a fine of up to $5 million. If convicted of possession of a firearm in furtherance of drug trafficking charge, he faces a mandatory minimum of five years in prison and a maximum sentence of life in prison and up to a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.

SACRAMENTO, Calif. — U.S. District Judge Garland E. Burrell Jr. sentenced Ruslan Kirilyuk, 41, of Beverly Hills, to 27 years in prison for his involvement in an international credit card fraud scheme targeting card holders nationwide, U.S. Attorney McGregor W. Scott announced.

According to evidence presented at trial, between October 5, 2011, and March 5, 2014, Kirilyuk conspired with Mihran Melkonyan, 39, of Sacramento; Rouslan Akhmerov, 45, of Studio City; Alexandr Maslov, 38, of Sacramento, and others in a credit card billing scheme that involved creating approximately 71 fraudulent online companies established with the sole purpose of fraudulently charging approximately 119,000 stolen credit card numbers. In total, the members of the scheme billed the stolen credit card numbers for over $3.4 million in unauthorized charges.

As established at trial, to create the fraudulent companies, the members of the scheme obtained over 200 stolen report cards from the San Juan Unified School District in Sacramento. Those report cards had students’ personal identifying information on them such as names and social security numbers. Using that information, Kirilyuk and his associates created fraudulent companies with names designed to sound like real companies, such as “CVS Store,” “Walt Mart,” and “Chevran.”

Working with a hacker based in Moscow, they used those fraudulent companies to charge stolen American Express credit card account numbers. In order to transfer the stolen money, they used shell bank accounts held in the names of individuals whose identities had been stolen and former Russian J-1 visa holders. According to court documents, Kirilyuk has a history of corporate cyberintrusion dating back to at least 2003.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Michael D. Anderson prosecuted the case.

In an earlier trial, on February 15, 2017, Melkonyan was found guilty of all 24 counts of wire fraud and two counts of mail fraud charged against him related to the scheme. He was sentenced on January 4, 2019, to 19 years and two months in prison.

On December 15, 2014, Akhmerov pleaded guilty to one count of access device fraud for his participation in the scheme. He is set to be sentenced on December 13, 2019.

Maslov is pending trial with a status conference scheduled for January 31, 2020. The charges against him are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — A federal grand jury recently returned a 13-count indictment against 12 individuals for drug trafficking offenses, U.S. Attorney McGregor W. Scott announced. The defendants are:

Carlos Javier Felix Lopez, 42, of Fresno,

David Michael Marin, 61, of Fresno,

Angel Delgadillo Sr., 62, of Fresno,

Ronal Van Warsinger, 35, of Fresno,

Demar Edward Marshall, 32, of Fresno,

Quintin Brown, 45, of Fresno,

Kenneth Lorenzo Pratt, 28, of Seattle, Washington

Armando Acosta Toro, 62, of Fresno,

Rodrigo Savalza, 54, of Salinas,

Jose Guadalupe Bojorquez, 40, of Fresno,

Monica Gutierrez, 37, of Mendota,

Julio Cesar Moreno Garcia, 42, of Hesperia.

According to court documents, Lopez was a large-scale broker and distributor of controlled substances operating in the Fresno area. Lopez utilized a network of drug trafficking associates throughout California (including in Fresno County, Los Angeles County, San Bernardino County, and Monterey County) and in Mexico to source, transport, and distribute controlled substances on his behalf.

Lopez conspired with two drug traffickers based in Mexicali, Mexico to supply him with kilogram quantities of narcotics for further distribution to his wholesale customers, including Marin, Toro, and Savalza, in Fresno County, Monterey County, and elsewhere. Lopez conspired with Gutierrez to store and distribute narcotics on his behalf in Fresno County and utilized Bojorquez to transport narcotics from Southern California to the Central Valley of California for further resale by Lopez. Moreno Garcia conspired with Lopez and one of the Mexican sources of supply to distribute narcotics to Gutierrez and Savalza.

Marin, a wholesale distributor of methamphetamine, heroin, cocaine, and prescription pain pills (including oxycodone), obtained narcotics from a variety of sources, including Lopez, Delgadillo, and Toro, and distributed them to drug dealers based in Fresno, Washington and elsewhere. Marin conspired with Warsinger and Marshall to distribute cocaine in Fresno, and conspired with Brown, Pratt, and others to distribute prescription pills, including Oxycodone, in Washington and elsewhere.

This case is the product of an investigation by the U.S. Drug Enforcement Administration and the Fresno Police Department’s Major Narcotics Unit with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, Homeland Security Investigations, Customs and Border Protection, the United States Marshals Service, the California Department of Justice HIT Team, the Kings County Sheriff’s Department, the San Bernardino Sheriff’s Department, the Salinas Police Department, and the El Monte Police Department. Assistant U.S. Attorney Jeffrey A. Spivak is prosecuting the case.

If convicted, the defendants face a range of maximum sentences, including up to life in prison. Several of the defendants also face a range of mandatory-minimum sentences ranging from between five to 10 years in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

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

FRESNO, Calif. — A federal grand jury returned an indictment today against Ryan James Taylor, 34, of Oxnard, charging him with burglary of a U.S. Post Office, mail theft, and theft of government property, U.S. Attorney McGregor W. Scott announced.

According to court documents, on Aug. 26, 2018, Taylor forcibly broke into the Mojave Post Office in Kern County and stole mail that had been deposited at the post office as well as a U.S. Mail Truck.

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

If convicted, Taylor faces a maximum penalty of five years in prison and a $250,000 fine for each of the burglary and stolen mail charges, and 10 years in prison and a $250,000 fine for the stolen mail truck charge. Any sentence, however, will be determined at the discretion of the court after consideration of applicable statutory factors and the Federal Sentencing Guidelines. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — A federal grand jury returned an eight-count indictment today against Bakersfield residents Wilfredo Medina-Perez, 31; Uriel Ivan Portillo, 33; and Rojelio “Roy” Garcia, 47, charging them with various drug trafficking crimes involving the distribution of fentanyl, U.S. Attorney McGregor W. Scott announced.

According to court documents, between Feb. 11 and Nov. 21, Medina-Perez sold more than 8,000 fentanyl pills and 1 pound of methamphetamine to an undercover officer. Portillo, who was working with Medina-Perez, delivered 5,000 fentanyl pills to the undercover officer. Garcia, obtained fentanyl from Medina-Perez with the intention of distributing the drug to his customers in the Bakersfield area.

This case is the product of an investigation by the Drug Enforcement Administration, the Bakersfield Police Department, and the Kern County Sheriff’s Office. Assistant U.S. Attorneys Melanie L. Alsworth and Vincente Tennerelli are prosecuting the case.

If convicted, Medina faces a maximum statutory penalty of life in prison and a fine of up to $10 million; Portillo faces a maximum statutory penalty of 40 years in prison and a fine of up to $5 million; and Garcia faces a maximum statutory penalty of 20 years in prison and a fine of up to $1 million. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Jagpal “Paul” Singh, 61; of Los Angeles, was sentenced today to three years and three months in prison for his participation in a scheme to bribe DMV employees to provide California commercial driver’s licenses (CDLs) to unqualified drivers, U.S. Attorney McGregor W. Scott announced.

On March 1, Singh pleaded guilty to conspiracy to commit bribery, to commit identity fraud, and to commit unauthorized use of a computer, and for identification document fraud. According to court documents, Singh paid bribes to two DMV employees, Lisa Terraciano and Kari Scattaglia, both of whom pleaded guilty. Terraciano was sentenced to three years and four months in prison, and Scattaglia was sentenced to two years and eight months in prison, for, in part, accessing and altering records in the DMV’s database in Sacramento for Singh’s students. Records were altered to show that applicants for CDLs had passed the required tests when, in truth, they had not done so, and in some cases had not even taken the tests. This caused the DMV to issue permits and completed CDLs despite the applicants not having taken or passed those tests.

 This case is the product of an investigation by the California Department of Motor Vehicles, Office of Internal Affairs, the Federal Bureau of Investigation, the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE HSI), and the Department of Transportation, Office of Inspector General. Assistant U.S. Attorney Rosanne L. Rust is prosecuting the case.

Charges are pending against co-defendants Tajinder Singh, 34, driving school owner; Parminder Singh, 29, broker; and Shawana Denise Harris, 49, DMV employee at the Rancho Cucamonga DMV Office. They are schedule to go to trial on June 1, 2020. The charges are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt. If convicted, the defendants each faces a maximum statutory penalty of five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — Dallas John Fonseca, 43, of Visalia, pleaded guilty today to felony theft in Kings Canyon National Park, U.S. Attorney McGregor W. Scott announced. 

According to court documents, on Feb. 9, someone who worked within Kings Canyon National Park gave a jewelry purse to the manager of the John Muir Lodge for safekeeping. The manager placed the purse inside a locked drawer. Sometime between Feb. 9 and March 11, Fonseca, who worked in the Lodge, stole the jewelry and a Rolex watch that was inside the purse. Fonseca was arrested after he was captured on surveillance footage selling the Rolex to a local pawn shop.

This case is the product of an investigation by the National Park Service. Assistant U.S. Attorney Joseph Barton is prosecuting the case.

Fonseca is scheduled to be sentenced before U.S. District Judge Dale A. Drozd on Feb. 24, 2020.  Fonseca faces a maximum penalty of five years in prison and a fine of up to $250,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — Raymond Cawthorne, 57, of Valley Springs, pleaded guilty today to embezzlement of public funds, U.S. Attorney McGregor W. Scott announced.

According to court documents, between May 2015 and Oct. 2016, Cawthorne embezzled over $14,000 belonging to the Keep Your Home California (KYHC) Program. KYHC was a federally funded program launched in response to the 2008 financial crisis that provided eligible homeowners with temporary mortgage assistance so that they could avoid foreclosure and stay in their homes. The KYHC program was part of a broader effort by the federal government to stabilize the nation’s housing market where states with the most distressed markets received federal monies to develop locally tailored foreclosure prevention solutions.

Cawthorne is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Feb. 24, 2020. Cawthorne faces a maximum penalty of 10 years in prison and a fine of up to $250,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

The case is the product of an investigation by the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), a federal law enforcement agency that targets crime at financial institutions and federally funded housing programs. Assistant U.S. Attorney Joseph Barton is prosecuting the case.

SACRAMENTO, Calif. — Wayne Arthur York II, 51, most recently of Albuquerque, New Mexico, pleaded guilty today to conspiracy to commit wire fraud, U.S. Attorney McGregor W. Scott announced.

According to court documents, York, while working in boiler rooms located in Puerto Vallarta, Mexico, would call timeshare owners to offer to arrange for the sale of Mexican timeshare vacation rentals. York would falsely claim that he and his coconspirators represented companies that had already secured or arranged for buyers who were ready to pay for the timeshares. In truth, no buyers had actually been arranged. Instead, York and others would convince the victims of the fraud to wire money from bank accounts in the United States and Canada to bank accounts in Mexico for alleged up-front payments including taxes, fees, and commissions to make the sale of the timeshare occur. The defendant and his coconspirators would assure victims that the non-existent buyers had already deposited money into trust accounts and that the sellers’ up-front fees would be fully reimbursed from those funds after the sale was complete. During York’s involvement, he was aware of or could have reasonably foreseen approximately $458,628.11 in inbound international wires being processed into bank accounts that he was aware of as part of his role in the conspiracy.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Matthew G. Morris is prosecuting the case.

York is the second defendant to plead guilty in this case:

Codefendant Marco Antonio Ramirez Zuno pleaded guilty in March 2017, and is scheduled for a status hearing regarding sentencing on December 10, 2019.

Codefendant Juan Carlos Montalbo is scheduled to go to trial on February 24, 2020. The charges against Montalbo are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.

York is scheduled to be sentenced by Judge John A. Mendez on March 3, 2020. York faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — Jarvis Thomas, 34, of Bakersfield, was sentenced by United States District Judge Dale A. Drozd today to 320 months in prison and five years of supervised release for conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine, U.S. Attorney McGregor W. Scott announced.

According to court documents and evidence presented at trial, between Sept. 27, 2017, and Sept. 11, 2018, Thomas conspired with others to possess and distribute methamphetamine in Bakersfield and North Dakota.

According to court documents, on Dec. 14, 2017, after a 10-month investigation, more than 35 members and associates of West Side Crips (WSC), a local criminal street gang, were arrested on federal and state charges including burglary, illegal gun possession, drug sales, and murder. Since that time, all the defendants in federal custody except for Thomas have pleaded guilty to charged offenses. On Jan. 11, 2018, a superseding indictment charged Thomas, a West Side Crip member also known as “Big Mice.” On April 4, 2019, a second superseding indictment charged Thomas and a co-conspirator.

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

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

FRESNO, Calif. — On November 22, 2019, federal authorities arrested Miguel Deniz, 29, of Farmersville, who is charged in a three-count indictment with possession with intent to distribute methamphetamine, being a felon in possession of firearms, and possession of a machinegun, United States Attorney McGregor Scott announced. 

Deniz ordered four “auto-sear” devices over the internet to his home address. Auto-sear devices are used to convert semi-automatic firearms to fire as fully automatic machineguns. The package was intercepted by law enforcement, and on May 1, 2019, law enforcement officers conducted a controlled delivery of the package to Deniz’s residence. During a subsequent search executed at the residence, law enforcement officers recovered over a pound of methamphetamine, an AK-style rifle, a Mossberg pump action shotgun, six handguns, eighteen magazines, two handgun silencers, a ballistic vest, thousands of rounds of live ammunition, and firearm accessories. During the search, law enforcement officers also found additional auto-sear devices. Deniz is a convicted felon prohibited from possessing firearms or ammunition.

This case was the product of an investigation by Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Postal Inspection Service, and the California Department of Justice. Assistant United States Attorney Katherine Schuh is prosecuting the case.

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

This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

SACRAMENTO, Calif. — Jake Edward Howland, 23, of Vallejo, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to three years and 10 months in prison for unlawfully possessing a machine gun, U.S. Attorney McGregor W. Scott announced.

According to court records, in Feb. 2019, Solano County Sheriff’s deputies responded to a call reporting that someone was shooting a fully automatic weapon on the levee in the unincorporated area of Solano County, near Dixon. When deputies arrived, they spoke with a group of witnesses, several of whom saw Howland firing the pistol. When the deputies searched Howland, they found an empty .40-caliber high-capacity magazine in his pocket. They also found a .40‑caliber pistol nearby that had been modified to function as a machine gun. This was the gun Howland was firing moments earlier. Howland pleaded guilty on Aug. 21.

This case was the product of an investigation by the Solano County Sheriff’s Office, with assistance from the FBI’s Solano County Violent Crimes Task Force and the Solano County District Attorney’s Office.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.

SACRAMENTO, Calif. — Marie Antoinette Alcanter, 48, of Sacramento, pleaded guilty today to access device fraud and aggravated identity theft, U.S. Attorney McGregor W. Scott announced.

According to court documents, Alcanter obtained victims’ personal and financial information from co-defendant Rose Marie Segale, 41, of San Jose, formerly of Sacramento. Segale had obtained the information through her employment at a veterinary clinic. Alcanter used the information to make purchases and withdrawals using victims’ accounts, as well as to open new accounts using victims’ identities. When Alcanter’s residence was searched by federal agents, they found numerous documents that Segale had provided from the veterinary clinic. One of them was a statement for euthanasia and cremation of a dog, on which Segale had recorded the client’s credit card number. Using victims’ information, Alcanter obtained over $40,000 worth of items and cash between Dec. 2016 and March 2018.

This case is the product of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorney Miriam R. Hinman is prosecuting the case.

Alcanter is scheduled to be sentenced on Feb. 21, 2020. Segale previously pleaded guilty and is scheduled to be sentenced on Jan. 17, 2020. Each defendant faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for the access device fraud offense, as well as a mandatory two-year prison term for the aggravated identity theft. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — U.S. District Judge Troy L. Nunley sentenced Luis Jose Ruiz Gainza, 45, to four and a half years in prison for an identity theft scheme, U.S. Attorney McGregor W. Scott announced.

According to court documents, in 2017, Gainza, a Venezuelan national residing in Mexico, traveled to and from the United States for the purpose of stealing bank customers’ account information. During the course of the four-month scheme, at least six times Gainza and his co-conspirators placed skimming devices in ATMs and installed covert cameras to record ATM users’ personal identification numbers. While the skimmers were in place, hundreds of bank customers used the ATMs. Gainza and his co‑conspirators used the stolen account information to create fraudulent credit and debit cards and make unauthorized charges.

On August 5, 2017, Gainza and co-defendant Ricardo Gabriele-Plage, 39, of Venezuela, were arrested in their hotel room in Rancho Cordova. During a search of their room, law enforcement found a magnetic stripe reader and encoder, skimmers, covert cameras, and tools used to repair skimmers and install the devices in ATMs.

This case is the product of an investigation by Homeland Security Investigations and the Sacramento County Sheriff’s Department. Assistant U.S. Attorney Brian A. Fogerty is prosecuting the case.

Gabriele-Plage pleaded guilty to offenses arising from the same identity theft scheme. He will be sentenced by Judge Nunley on Jan. 9, 2020. He faces the following maximum penalties: five years in prison and a $250,000 fine for the conspiracy to possess unauthorized access devices count; 10 years in prison and a $250,000 fine for the access device fraud count; and a mandatory consecutive term of two years in prison for the aggravated identity theft charges. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — As part the U.S. Attorney’s Office for the Eastern District of California’s strategy to reduce violent crime by focusing on firearms prosecutions, U.S. Attorney McGregor W. Scott announced sentences in the following cases involving illegal firearms offenses.

U.S. District Judge Troy L. Nunley sentenced Jake Phillip Jines, 23, of Stockton, to five years and 10 months in prison for dealing firearms without a license and distribution of methamphetamine. According to court documents, on Feb. 7, 2017, Jines and a co-defendant sold an undercover agent three firearms and 59.4 grams of methamphetamine. Jines does not have a license to sell firearms and none of the firearms had serial numbers. Such firearms are known as “ghost guns.” (2:17-cr-162-TLN)

This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney James R. Conolly is prosecuting the case.

Judge Nunley sentenced Derrick Walker, 30, of Oakland, to three years and four months in prison for being a felon in possession of a firearm. According to court documents, Walker has previous convictions for selling narcotics, carjacking, and second degree robbery. On Feb. 28, 2017, Walker was found to be in possession of a .40-caliber handgun. (2:17-cr-201-TLN)

This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Police Departments of Oakland and Stockton. Assistant U.S. Attorney Jason Hitt prosecuted the case.

FRESNO, Calif. — A three-count indictment was unsealed today charging Eric Lopez Mercado, 25, of Lemoore, and Jose Moreno, 24 of Hanford, with illegally possessing and transferring machine guns, U.S. Attorney McGregor W. Scott announced.

The indictment charges Mercado and Moreno with possessing several pistols that had no serial number markings but had conversion devices attached to the rear of the firearms that enabled them to function as fully automatic weapons. Both men are also charged with transferring a machine gun to another person and possessing a device capable of converting a handgun into a machine gun.

This case is the product of a multi-agency investigation into the criminal activities of individuals associated with the Nuestra Familia prison gang. That investigation culminated in the arrests of over 50 individuals on federal and state charges, including Mercado and Moreno. The investigation was led by the Kings County Gang Task Force; Agents of the Special Operations Unit – a team of agents from the California Department of Justice and the California Highway Patrol; California Department of Corrections and Rehabilitation; the FBI; and the Kings County District Attorney's Office. The Drug Enforcement Administration, the Bureau of Alcohol Tobacco and Firearms, the U.S. Marshals Service, and Homeland Security Investigations all assisted with the arrests. Assistant U.S. Attorneys Kimberly Sanchez and Justin Gilio are prosecuting the case.

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

This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

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

FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Georgia Nicole Dean, 36, and Ashley Michelle Hill, 32, both of Coarsegold, charging them with selling heroin that resulted in the overdose death of another Coarsegold resident, U.S. Attorney McGregor W. Scott announced. Dean and Hill are also charged with conspiring to distribute the heroin that resulted in the victim’s death.

According to court documents, on Aug. 22, Dean and Hill drove to the victim’s residence and sold heroin to him. It is alleged that the victim’s death resulted from the use of the mixture or substance containing heroin.

This case is the product of an investigation by the Madera County Sheriff’s Office, the Fresno Police Department, and the Drug Enforcement Administration. Assistant U.S. Attorneys Kathleen A. Servatius and Justin J. Gilio are prosecuting the case.

If convicted, the drug distribution resulting in death charge and the conspiracy to distribute drugs resulting in death charge both carry a mandatory minimum statutory penalty of 20 years in prison up to life in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — A federal grand jury returned an indictment today against Pedro Alegra Jr., 21, of Delano, and Edgardo Rosales-Andrade, 23, of Paramount, charging them with conspiracy to possess with the intent to distribute methamphetamine and possession with the intent to distribute methamphetamine. Rosales-Andrade was also charged with the illegal importation of narcotics, U.S. Attorney McGregor W. Scott announced.

“The investigation of international drug trafficking operations is a top priority for Homeland Security Investigations,” said Tatum King, special agent in charge for Homeland Security Investigations (HSI) San Francisco. “HSI in the Central Valley employs all of its resources to prevent these dangerous criminal networks from threatening our communities.”

According to court documents, on Nov. 15, HSI and Customs and Border Patrol agents tracked a cargo truck carrying 312 pounds of methamphetamine to Delano, in Kern County where Alegra and Rosales-Andrade were waiting. Agents obtained a search warrant for the truck and residence and found an additional 60 pounds of methamphetamine in the residence. The methamphetamine was concealed in furniture in the cargo truck.

This case is the product of an investigation by HSI and the Bakersfield Police Department. Assistant U.S. Attorney Thomas Newman is prosecuting the case.

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

SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today against Antonio Tawan Bankhead, 31, of Fairfield, charging him with being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.

According to court documents, on Oct. 11, police responded to a report of a man robbed at gunpoint in Laurel Creek Park in Fairfield. Police located the victim, who said that three men approached him in the park and started taking his belongings, including his cellphone, pants, and shoes. The victim said that Bankhead pointed a gun at him and asked his two accomplices, “Should I shoot him?” After the victim called 911, police responded to the scene and located the three suspects. Bankhead led police on a foot pursuit through the park, but was apprehended in a nearby neighborhood. Afterwards, police found a gun that Bankhead is alleged to have discarded during the chase. The gun had an extended magazine loaded with 30 rounds of ammunition and one round in the chamber. Bankhead cannot lawfully possess firearms or ammunition because he has previously been convicted of three felony offenses. In addition, when this offense took place, Bankhead was on federal probation for illegally possessing a firearm in 2014.

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

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

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.

SACRAMENTO, Calif. — On Tuesday, U.S. District Judge John A. Mendez sentenced two Sacramento men for methamphetamine trafficking, U.S. Attorney McGregor W. Scott announced.

Roland Adrian Jufiar, 44, was sentenced to 10 years in prison for conspiracy to distribute methamphetamine, and David Garcia Romero, 44, was sentenced to 15 years in prison for possessing methamphetamine for distribution.

Both men pleaded guilty on Aug. 13. According to court records, federal agents began investigating co-defendant Andre Ramon Washington based on reports that Washington was distributing narcotics from his home in Sacramento. In 2017 and 2018, agents with the Drug Enforcement Administration identified Jufiar and Romero as two of Washington’s suppliers. In March 2018, federal agents executed search warrants at Washington’s, Jufiar’s, and Romero’s homes. At Jufiar’s home, agents found approximately 160 grams of cocaine. When the agents searched Romero’s car, they found over 17 kilograms of methamphetamine, 2.7 kilograms of powder cocaine, over one pound of cocaine base (crack cocaine), over $19,000 in cash, and three firearms.

In October 2019, co-defendant Andre Washington was sentenced to 10 years in prison for possessing methamphetamine for distribution.

This case was the product of an investigation by the Drug Enforcement Administration with assistance from the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; the Sacramento County Sheriff’s Department; the Sacramento Police Department; the Citrus Heights Police Department; and the Folsom Police Department.

SACRAMENTO, Calif. — Kioni M. Dogan, 39, of Stockton, was sentenced today to four years in prison for criminal conspiracies to submit false claims for federal income tax refunds and to commit mail fraud in connection with California state unemployment insurance benefits, U.S. Attorney McGregor W. Scott announced.

In sentencing, U.S. District Judge John A. Mendez said Dogan’s criminal conduct was “a slap in the face to law abiding citizens” who comply with our tax system and who turn to unemployment benefits in times of real need.

According to court documents, for over five years Dogan was the driving force in two schemes seeking over $2 million from the California and federal governments through fraud.

U.S. Attorney Scott stated: “This defendant ran overlapping fraud schemes targeting federal and state government agencies to steal over $2.2 million. Today’s sentence reflects the extensive criminal conduct, provides just punishment, and protects the public from further crimes of this defendant.”

According to court documents, from May 2011 through April 2012, Dogan filed at least 98 fraudulent tax returns $940,000 in refunds, of which approximately $708,188 was paid out by the IRS. Dogan, co-defendant Antonia Brasley, and others obtained personal identifying information from family, friends, and others, and then submitted returns containing false statements regarding income, withholding, and losses.

“Dogan’s long-running scheme had no purpose other than to mislead and defraud the IRS and EDD,” said Kareem Carter, Special Agent in Charge IRS Criminal Investigation. “Defrauding the government is not a victimless crime as honest taxpayers end up footing the bill. Today’s sentence sends a clear message that those involved in these types of schemes will be held accountable.”

According to court documents, from 2010 through 2015, Dogan filed over 100 fraudulent unemployment insurance claims with the California Employment Development Department (EDD) seeking $1.29 million using fictitious businesses. Dogan created fictitious employers with EDD and then caused the submission of information for employees of the fictitious entities. Dogan subsequently filed unemployment claims in the names of the fake employees. Co‑defendants Gloria Harris and Lavonda Bailey are charged with collecting the fraudulent benefits, both in their own names and in the names of other fake employees. Approximately $972,319 was paid out by EDD.

“Kioni Dogan defrauded the California Employment Development Department by establishing fictitious businesses to obtain unemployment insurance benefits in the names of identity theft victims and her co-conspirators who were not entitled to such benefits. We will continue to work with our law enforcement partners and state workforce agencies to protect the integrity of unemployment insurance benefit programs,” said Quentin Heiden, Special Agent-in-Charge, Los Angeles Region, U.S. Department of Labor Office of Inspector General.

The unemployment fraud case is the product of an investigation by the U.S. Department of Labor, the California Employment Development Department, and the U.S. Postal Inspection Service. The tax fraud case was the product of an investigation by IRS Criminal Investigation. Assistant U.S. Attorney Christopher S. Hales is prosecuting both cases.

On Sept. 10, Brasley was sentenced to five years’ probation and ordered to pay $33,562 in restitution. Harris pleaded guilty to the charges on Nov. 15 and is scheduled to be sentenced on Feb. 14, 2020.

The charges against Bailey remain pending. The charges are only allegations; she is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Ahmad Nassar, 33, of Sacramento, was sentenced today by U.S. District Judge Kimberly J. Mueller to four years in prison for aggravated identity theft, being a felon in possession of a firearm, and access device fraud, U.S. Attorney McGregor W. Scott announced.

According to court documents, from August 2015 through June 2017, Nassar was engaged in identity theft, unauthorized bank account takeovers, and obtaining and using unauthorized and counterfeit access devices in the form of credit cards, debit cards, account numbers, and other financial account information. On May 10, 2017, agents executing search warrants at two properties in Sacramento associated with Nassar led to the seizure of a loaded .22‑caliber handgun from underneath a pillow in a bedroom of one of the properties in which Nassar himself was found. In addition, agents seized numerous boxes containing credit cards, debit cards, mail (some with “forwarding” address labels), and federal and state government-issued identification cards, bearing names of people other than Nassar, and at least 55 electronic devices, including computers, cellphones, media storage drives, and other electronic devices including a “CelleBrite” device commonly used by law enforcement to conduct forensic examinations of cellphones. Nassar used intricate techniques to obtain victims’ personal identifying and financial information, including online account takeovers that continued even after search warrants were executed on his properties. Nassar’s conduct caused at least $558,276 in losses.

This case was the product of an investigation by the Federal Bureau of Investigation and Sacramento County Department of Human Assistance. Assistant U.S. Attorney Matthew M. Yelovich is prosecuting the case.

SACRAMENTO, Calif. — U.S. District Judge Garland E. Burrell Jr. sentenced Omar Anabo, 57, of Vallejo, to three years in prison for conspiracy to make false statements on loan applications, U.S. Attorney McGregor W. Scott announced. Judge Burrell also ordered Anabo to pay $379,068 in restitution to victims of the conspiracy.

According to court documents, between Oct. 2004 and May 2007, Anabo and co‑conspirators Sergio Roman Barrientos, 66, and Zalathiel Aguila, 46, operated Capital Access LLC in Vallejo, a company that preyed on homeowners nearing foreclosure. The defendants convinced homeowners to sign over the title to their homes to Capital Access and then spent any equity those homeowners still had, which was then used for operational expenses of the scheme and personal expenses of Anabo and his co-conspirators.

The defendants also used straw buyers to obtain home loans under false pretenses and defraud federally insured financial institutions out of millions of dollars. Vulnerable homeowners across California lost their homes and savings as a result of the scheme, and lenders lost an estimated $10.47 million from the fraud.

This case was the product of an investigation by the Federal Bureau of Investigation and the United States Postal Inspection Service. Assistant U.S. Attorneys Matthew M. Yelovich and Christina McCall prosecuted the case.

Barrientos was sentenced on Nov. 2, 2018, to 14 years in prison for his role in the scheme. Aguila was sentenced on July 26, 2019, to four years in prison.

SACRAMENTO, Calif. —Robert Charles Chavez, 33, of Sacramento, was sentenced today to 11 years and one month in prison for receiving child pornography, U.S. Attorney McGregor W. Scott announced.

According to court documents, in March 2015, Chavez used peer-to-peer file sharing software to download from the internet videos and images of nude prepubescent children engaged in sexually explicit conduct.

This case was investigated by the Sacramento Internet Crimes Against Children (ICAC) Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant U.S. Attorneys Brian A. Fogerty and Mira Chernick prosecuted the case.

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

SACRAMENTO, Calif. — Lisa Terraciano, 53, of North Hollywood, was sentenced today to three years and four months in prison for a conspiracy to take bribes to provide Class A commercial driver’s licenses (CDLs) without the commercial applicants having to take or pass the required tests, U.S. Attorney McGregor W. Scott announced.

On November 3, 2017, former DMV employees Terraciano and Kari Scattaglia, 40, of Sylmar, pleaded guilty to a conspiracy to commit bribery, to commit identity fraud, and to commit unauthorized access of a computer. On Aug. 29, 2019, Scattaglia was sentenced to two years and eight months in prison for her participation in the conspiracy.

According to court documents, Terraciano worked for the DMV since June 2005 and was a Motor Vehicle Representative (MVR) in the Winnetka DMV office from 2014 through 2017. Scattaglia worked as a manager, assistant manager, and a Licensing-Registration Examiner (LRE) at the Arleta DMV and the Granada Hills Driver License Processing Center. Among other things, Terraciano and Scattaglia were responsible for processing applications for California CDLs. A CDL is required to drive passenger buses and to operate tractor-trailer trucks on California and interstate highways, including, in some cases, transporting hazardous materials.

In exchange for money, Terraciano and Scattaglia each accessed the DMV’s database in Sacramento to alter the records of commercial applicants to fraudulently show that the applicants had passed the required written tests when, in truth, the applicants had not passed the tests or, at times, even taken the written tests. In so doing, this caused the DMV to issue permits to those drivers as well as issue completed CDLs upon the applicants’ passing the behind-the-wheel driving tests.

According to the plea agreements, Terraciano caused at least 148 fraudulent CDLs, including permits, to be issued, and Scattaglia caused at least 68 fraudulent CDLs, including permits, to be issued.

This case was the product of an investigation by the Federal Bureau of Investigation, the Homeland Security Investigations, the U.S. Department of Transportation – Office of Inspector General, and the California Department of Motor Vehicles, Office of Internal Affairs. Assistant U.S. Attorney Rosanne L. Rust is prosecuting the case.

SACRAMENTO, Calif. — Sutter Health has agreed to pay $15,117,516 to resolve conduct concerning violations of the Physician Self-Referral Law, commonly known as the Stark Law, as well as double-billing for certain services, U.S. Attorney McGregor W. Scott announced today.

The Stark Law prohibits a hospital from billing Medicare for certain services referred by physicians with whom the hospital has a financial relationship, unless that relationship satisfies one of the law’s statutory or regulatory exceptions. The law is intended to ensure that medical decision-making is not influenced by improper financial incentives and is instead based on the best interests of the patient.

The conduct at issue was self-disclosed by Sutter to the United States, and includes submission of claims to Medicare that resulted from referrals by physicians to whom certain Sutter hospitals: (1) paid compensation under personal services arrangements that exceeded the fair market value of the services provided; (2) leased office space at below-market rates; and (3) paid reimbursements of physician-recruitment expenses that exceeded the actual recruitment expenses at issue. Additionally, several Sutter ambulatory surgical centers double-billed the Medicare program by submitting claims that included radiological services for which Medicare separately paid another entity that had performed those services.

“Providers must rigorously comply with the law and Medicare requirements” said U.S. Attorney Scott. “This office is committed to pursuing enforcement actions that will ensure the integrity of federal health care programs.”

This settlement is the result of work by the U.S. Attorney’s Office for the Eastern District of California with help from the Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Catherine J. Swann handled the matter for the United States. The claims settled by this agreement are allegations only, and there has been no determination of liability.

SACRAMENTO, Calif. — Marty Marciano Boone, 58, of Vallejo, was sentenced today by U.S. District Judge Troy L. Nunley to seven years and three months in prison following his conviction after jury trial for conspiracy to commit money laundering, two counts of substantive money laundering, and filing a false tax return, U.S. Attorney McGregor W. Scott announced.

According to court documents and evidence presented at trial, Marty Boone and his wife and co-defendant Ronda Boone, 56, filed separate false tax returns claiming that they were owed millions of dollars in refunds from the IRS. While the IRS flagged Ronda Boone’s tax return as fraudulent and denied her claim, Marty Boone’s false return resulted in the IRS paying him over $1.9 million in a refund check. Evidence at trial established that Marty and Ronda Boone then laundered those funds through domestic and foreign accounts, including by establishing a shell corporation in Cyprus and a church in the state of Washington through which the defendants moved the fraudulently obtained money.

This case is the product of an investigation by IRS Criminal Investigation. Assistant U.S. Attorney Matthew M. Yelovich is prosecuting the case.

Ronda Boone is scheduled to be sentenced on Nov. 21. She faces a maximum penalty of 10 years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — A federal grand jury returned a 13-count superseding indictment today against 12 Nuestra Familia gang members and associates, U.S. Attorney McGregor W. Scott announced.

The individuals charged today were originally charged in June, along with about 40 others, as part of a multi-agency investigation into the prison-based gang’s criminal activities. The superseding indictment adds three additional federal drug charges, including a charge for conspiracy to distribute over 500 grams of cocaine. The defendants are:

Salvador Castro Jr., 49, of Pleasant Valley State Prison,

Raymond Jesse Marcos Lopez, 32, of Pleasant Valley State Prison,

Jesse Juarez, 29, of Visalia,

Daniel Juarez, 27, of Visalia,

Michael Rocha, 37, of Visalia,

Angel Montes, 23, of Visalia,

Rafael Lopez, 28, of Visalia,

Manuel Barrera, 24, of Kettleman City,

Manuel Garcia, 33, of Armona,

Joann Bernal, 33, of Armona,

Ramon Amador, 30, of Riverdale, and

Raul Lopez Jr., 48, of Visalia

According to court documents, high-ranking Nuestra Familia members Salvador Castro, Jr. and Raymond Lopez used contraband cellphones from inside Fresno County’s Pleasant Valley State Prison to arrange the transport of illicit narcotics from drug sources in California and Mexico to a stash house in Kings County. From that stash house, gang members outside of the prison coordinated the preparation and delivery of the drugs to distributors throughout Kings and Tulare Counties.

The case was the result of an investigation by the Kings County Gang Task Force; the Special Operations Unit – a team of agents from the California Department of Justice and the California Highway Patrol; California Department of Corrections and Rehabilitation; the FBI; and the Kings County District Attorney’s Office. The Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; and Homeland Security Investigations all assisted with the arrests. Assistant U.S. Attorneys Kimberly Sanchez, Laurel Montoya, and Justin Gilio are prosecuting the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.

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

If convicted, the defendants face a range of maximum sentences, including up to life in prison. Several of the defendants also face a range of mandatory-minimum sentences ranging from between five to 10 years in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — A federal grand jury returned a 13-count indictment today against Fresno residents Isaias Herrera-Ortiz, 29, and Lucas Lara Portillo, 38, charging them with conspiracy, production of false identification documents, transfer of false identification documents, and fraud and misuse of visas and related documents, U.S. Attorney McGregor W. Scott announced.

According to court documents, in February and March 2018 and in July and September 2019, the defendants engaged in transactions in which they manufactured and sold false identification documents to buyers. These documents included social security cards and green cards.

This case is the product of an investigation by Homeland Security Investigations. Assistant U.S. Attorney Laura D. Withers is prosecuting the case.

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

SACRAMENTO, Calif. — The founder and former CEO of a chain of Central Valley rural health clinics will sell 13 properties, remitting proceeds to the United States and the state of California, to resolve allegations that she submitted millions of dollars in false claims to Medi‑Cal, U.S. Attorney McGregor W. Scott announced today.

The Civil and Criminal Divisions of the U.S. Attorney’s Office conducted parallel investigations of Sandra Haar, the founder and chief executive officer of Horisons Unlimited. As a result of the criminal investigation, on Aug. 13, 2018, Haar pleaded guilty to defrauding Medi-Cal and on Nov. 4, 2019, was sentenced to five years in prison.

Horisons Unlimited was a nonprofit that provided health and dental services at eight clinics in Merced and surrounding communities. Between Jan. 1, 2014, and March 2017, Haar billed Medi‑Cal through Horisons for various false and fraudulent claims, including claims for services rendered by unlicensed providers, claims for services that were not rendered at all, claims for office visits that consisted of nothing more than patients picking up controlled substances in plastic baggies in retail parking lots, and claims for unnecessary services. In addition, Haar received illegal kickbacks from an account executive at a Southern California lab. In exchange, Haar directed that lab testing for Horisons’ Medi-Cal patients be conducted at the lab.

The properties to be sold include some former clinics of the now-shuttered Horisons Unlimited as well as several residential properties. Pursuant to the settlement, the Office of Inspector General will be excluding Sandra Haar and a for-profit company Haar controlled from participation in Medicare, Medicaid, and all other Federal healthcare programs for a period of 20 years, and Horisons Unlimited’s chief financial officer, Norman Haar, will be excluded for a period of 15 years.

“The purpose of public insurance programs like Medi-Cal is to provide essential services to those who need them, not to enrich bad actors who submit false and fraudulent claims,” said U.S. Attorney Scott. “We will continue to safeguard the integrity of these programs and the public fisc by recovering public dollars obtained through fraud.”

“Medi-Cal serves vulnerable people who need vital health services. Therefore, when providers steal from this taxpayer-funded program it is a matter of utmost concern,” said Steven J. Ryan, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services. “We will continue working closely with our law enforcement partners to guard the integrity of government health care programs.”

The settlement is the product of an investigation by the Federal Bureau of Investigation, the Office of Inspector General for the U.S. Department of Health and Human Services, the Bureau of Medi-Cal Fraud and Elder Abuse, and the California Department of Health Care Services. Assistant U.S. Attorney Vincente A. Tennerelli handled the case for the United States.

SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Kevin Blaine Cline, 46, of Fairfield, charging him with attempted online coercion of a child and distribution of child pornography, U.S. Attorney McGregor W. Scott announced.

According to the criminal complaint, on Nov. 1, an undercover agent observed Cline’s post on the social media platform called Whisper that said he was “Looking for dad’s (sic) who love their daughters near me I...... Have a question.” The notation at the bottom of Cline’s post said, “Freaky Sexual Desires.” During a two-day conversation on Whisper with the undercover agent, Cline sent two images of child pornography to the agent and attempted to arrange a meeting with a 7‑year-old girl in order to sexually molest her. Cline then drove from Fairfield to Pleasant Hill to meet up with the intended victim. When Cline arrived, he was placed under arrest.

This case is the product of an investigation by the Silicon Valley Internet Crimes Against Children Task Force (SVICAC) a federally and state-funded task force with agents from federal, state, and local agencies that investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. The Contra Costa District Attorney’s Office and Homeland Security Investigations conducted the investigation as part of the SVIAC. Assistant U.S. Attorney Christina McCall is prosecuting the case.

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

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

SACRAMENTO, Calif. — Jason Solomon, 44, of Stockton, was sentenced today by U.S. District Judge Troy L. Nunley to nine years in prison for distributing child pornography, U.S. Attorney McGregor W. Scott announced.

According to court documents, in July 2016, Solomon used social media to send images of children engaged in sexually explicit conduct to a then-15-year-old girl. Law enforcement later became aware of Solomon’s sexually explicit chats with the 15-year-old victim. In January 2018, federal agents found Solomon possessing additional images of child pornography, some of which depict the sexual molestation of infants.

This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Brian A. Fogerty prosecuted the case.

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

SACRAMENTO, Calif. — Aaron Lee Patrick, 30, of Loomis, was sentenced today to five years and 11 months in prison by U.S. District Judge Troy L. Nunley for crashing a truck into a gun store and stealing at least five guns, U.S. Attorney McGregor W. Scott announced.

On October 25, 2018, Patrick pleaded guilty to theft of a firearm from a licensed dealer, and being a felon in possession of a firearm. According to court documents, Patrick stole his former employer’s flatbed truck and repeatedly rammed it into the wall of a licensed firearms dealer in Loomis, leaving two truck-sized holes in the side of the building. Patrick stole at least five firearms from the store, fled the scene, and went to the home of co-defendant and convicted felon Rocky Gordon, 63, of Colfax, where he sold Gordon four firearms for $1,000 and at least 35 grams of methamphetamine. That afternoon, sheriff’s deputies found and arrested him. In Patrick’s backpack was a fifth firearm that had been stolen from the dealer along with 35 grams of methamphetamine.

Patrick had previously been convicted of five felonies in Amador and Placer Counties including convictions for burglary and illegally possessing an assault weapon. At the time of his arrest, a California state court had issued a no-bail warrant for his arrest because he was on community supervision and had removed his ankle monitor.

Gordon pleaded guilty to being a felon in possession of a firearm and was sentenced to 18 months in prison.

This case was the product of an investigation by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Placer County Sheriff’s Office. Assistant U.S. Attorney David W. Spencer prosecuted the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.

SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment today charging four men with marijuana cultivation and firearms offenses in El Dorado County, U.S. Attorney McGregor W. Scott announced.

Christopher Garry Ross, 47, of Somerset; Juan Carlos Vasquez, 20, a Mexican national residing in Somerset; Ramiro Bravo Morales, 22, a Mexican national residing in Somerset; and Jorge Lamas, 25, of Yuba City, were charged with conspiring to cultivate marijuana, cultivation of marijuana, and discharge of a firearm during and in relation to a drug trafficking offense. In addition, Vasquez and Morales were each charged with being an illegal alien in possession of a firearm.

This case is the product of an investigation by the Drug Enforcement Administration, the Federal Bureau of Investigation, the U.S. Marshals Service, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the California Department of Justice. The El Dorado County Sheriff’s Office and the El Dorado County District Attorney’s Office have provided key assistance. Assistant U.S. Attorneys Michael M. Beckwith, Justin L. Lee, and Shea J. Kenny are prosecuting the case.

The statutory penalty for the marijuana counts is a five-year mandatory minimum prison sentence up to 40 years in prison with fines up to $5 million. The discharge of a firearm during a drug crime is a mandatory minimum of 10 years in prison up to life in prison and a fine of up to $250,000. The alien in possession of a firearm count is a maximum of 10 years in prison and a fine of up to $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Two years ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), the centerpiece of the department’s violent crime reduction strategy.

Throughout the past two years, the United States Attorney’s Office has partnered with all levels of law enforcement, local organizations, and members of the community to reduce violent crime and make our neighborhoods safer for everyone by focusing on the most violent offenders. According to FBI’s Uniform Crime Report released in October, the nationwide violent crime rate decreased for the second consecutive year, down 3.9% from 2017.

“The revitalized Project Safe Neighborhoods program is a major success,” said Attorney General William P. Barr. “It packs a powerful punch by combining advanced data with local leadership, further reducing violence in communities across the country and improving overall public safety. U.S. Attorneys continue to focus their enforcement efforts against the most violent criminals and work in partnership with federal, state, local, and tribal police. The Justice Department’s relationships across the board have never been stronger.”

In the Eastern District of California, indictments for firearms-related offenses in 2018 and 2019 are up 31% over the average for the previous 10 years. Approximately 1,600 guns were seized by ATF in 2018 and 2019. According to the FBI, firearms-related homicides fell 15%, and firearms‑related assaults fell 11%.

“Our office stands ready to work with federal, state, local, and tribal law enforcement to target the most violent criminals plaguing counties in our district,” stated U.S. Attorney Scott. “Our focus remains stemming the tide of illegal firearms flowing into our communities and prosecuting those who manufacture, distribute, and possess those weapons. Project Safe Neighborhoods is alive and well in the Eastern District of California.”

“ATF is dedicated to our mission of combating violent crime and protecting the public,” said Special Agent in Charge Ray Roundtree, San Francisco Field Division, ATF. “In the past year, ATF has worked to stand up crime gun intelligence focused groups across Northern California and Nevada. These teams provide data driven intelligence to open investigations on a local, regional and national level. That data is obtained through ATF’s Tracing Center and National Integrated Ballistics Information Network (NIBIN). ATF has been working hand in hand with both prosecutors and our law enforcement partners. These crime gun intelligence focused groups have been successful in reducing violent crime, disrupting the shooting cycle and removing the sources of crime guns. Throughout 2019 ATF has seized over 1,600 guns in the Eastern District. Those are 1,600 crimes guns that are no longer on the street and a treat to the people who live in those communities.”

“The Project Safe Neighborhood initiative is built on the partnerships the FBI has with our region’s local, state, and federal law enforcement agencies,” said FBI Sacramento Special Agent in Charge Sean Ragan. “When we combine forces, we are able to leverage our federal resources, hold criminals accountable for their crimes, and make significant steps in keeping our neighborhoods safe.”

“The U.S. Marshals Service is a key contributor to the PSN initiative, by bringing immediate relief to our communities with the execution of Operation Triple Beam and Operation Washout,” stated Chief Deputy U.S. Marshal Lasha Boyden. “These two enforcement operations are USMS‑led collaborative counter-gang initiative that partners federal, local, and state law enforcement to focus on specific areas impacted by significant gang violence, while targeting the most violent gang members and organizations.”

“Transnational Street gangs are often involved in a myriad of criminal activity, including narcotics and weapons violations, murder, extortion, and human trafficking. These groups represent a serious threat to public safety in any community and are a challenge for law enforcement agencies throughout the United States,” said Tatum King, special agent in charge, HSI San Francisco and Northern California. “HSI and our law enforcement partners in the Eastern District of California continue to send a strong message to violent gang members that we will not tolerate their threats and intimidation to our communities.”

These enforcement actions and partnerships are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.

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.

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.

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.

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.

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, 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.

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.

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.

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.

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. 

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.

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.

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.

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.

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.