Eastern District of California
Press releases recorded for this federal judicial district.
Former Rancho Cordova and Tracy Residents and Utah Resident Indicted for “Refund Fraud” SchemeRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 12-count indictment today against Johnathon Ward, 40, formerly of Tracy; Monica Nunes, 39, formerly of Rancho Cordova; and Talalima Toilolo, 44, of Salt Lake City, Utah, charging them with conspiracy to commit bank fraud and bank fraud, U.S. Attorney McGregor W. Scott announced. The indictment also charges Ward and Nunes with aggravated identity theft.
According to court documents, Ward, Nunes, and Toilolo conspired to defraud financial institutions using a scheme called “refund fraud” or “force post refund fraud.” This scheme exploited the refund process used by businesses and retail establishments to pay back customers for returns, reimbursements, and erroneous charges. The defendants posed as merchants and executed fraudulent debit or credit card refunds, which caused the unauthorized transfer of money from a merchant bank account to an account under the defendants’ control.
The defendants allegedly committed this scheme by stealing or purchasing point-of-sale (POS) terminals that are used by businesses to process bankcard transactions. The defendants programmed each terminal to make it appear as if it was authorized by a particular merchant, connected the terminals to payment processing intermediaries, and executed refund transactions even though no purchases had been made. The payment processors, falsely believing the terminals were authorized, approved the refunds and caused the merchants’ banks to transfer funds to the defendants’ accounts. The defendants then drained the stolen funds from the accounts. The indictment alleges that this scheme caused at least $3.5 million in intended victim losses.
This case is the product of an investigation by the Regional Enforcement Allied Computer Team (REACT) Task Force, which includes investigators from the Santa Clara County District Attorney’s Office, and the Federal Bureau of Investigation. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
Ward and Nunes are in custody, and Toilolo was arrested yesterday in Salt Lake City, Utah, on a criminal complaint filed in this district.
If convicted, Ward, Nunes, and Toilolo face a maximum statutory penalty of 30 years in prison and a $1 million fine for each count of bank fraud and conspiracy to commit bank fraud. Additionally, if convicted of aggravated identity theft, Ward and Nunes face a mandatory two-year prison sentence, to be served consecutive to any other sentence, 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.
Final Defendant Pleads Guilty in Bid-Rigging Conspiracy Involving Government ContractsRead the Press Release
SACRAMENTO, Calif. — Loraine Dixon, 61, of Granite Bay, pleaded guilty today to a conspiracy to commit bid rigging, U.S. Attorney McGregor W. Scott announced.
According to court documents, Dixon conspired with John Brewer, 50, of San Francisco, and Brent Vinch, 49, of New York, to rig the state of California’s competitive bidding process. Dixon was a regional representative for a software company that produced software used by several California state agencies. Brewer and Vinch were the owners of, and senior executives for, a company called Expert Network Consultants (ENC), which submitted bids to the state for various government contracts, including contracts to supply the software produced by Dixon’s employer.
Working together, Dixon, Brewer, and Vinch thwarted the competitive bidding process in order to ensure that ENC won contracts with California agencies to supply the software in question. The process requires that any IT purchase over $4,999 and not advertised must obtain at least two bids from prospective sellers, and the contract must be awarded to the lowest bidder. Brewer solicited bids from individuals and companies that had no intention or ability to perform the work called for in the contracts, and Brewer directed Vinch to create and submit non-competitive bids. Dixon often directed Brewer and Vinch to create, collect, or submit bids to certain agencies, and on other occasions advised them on how to act in bidding. Dixon solicited cash and wine from Brewer and Vinch to continue steering contracts to them and advising them on the non-competitive bidding process, and she joined ENC as an employee in 2012.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Matthew M. Yelovich prosecuted the case. The California Attorney General’s Office conducted the initial investigation into this matter.
Brewer was sentenced on April 26, 2018, to 15 months in prison.
Dixon is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on Oct. 31. Vinch is scheduled to be sentenced on Jan. 9, 2020. They each face a maximum statutory penalty of 10 years in prison and a $1 million fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Merced Couple Operating Dark Web Vendor Accounts “Best Buy Meds,” “Trap Mart” and “House of Dank” Plead GuiltyRead the Press Release
SACRAMENTO, Calif. —Jabari Monson, 32, of Merced, California, pleaded guilty today to conspiring to distribute controlled substances, and Saudia Monson, 39, also of Merced, pleaded guilty today to a violation of the Travel Act, using the mail and internet to distribute controlled substances, U.S. Attorney McGregor W. Scott announced.
According to court documents, from July 2018 through January 2019, Jabari Monson and Saudia Monson operated several vendor accounts on the dark-web marketplace Dream Market, through which they sold cocaine, cocaine base, methamphetamine, and marijuana.
As part of the plea agreement, the defendants agreed to forfeit cryptocurrency that was the proceeds of the drug distribution, including bitcoin and bitcoin cash.
This case is the product of an investigation by Homeland Security Investigations, the Federal Bureau of Investigation, the Drug Enforcement Administration, and the U.S. Postal Inspection Service. Assistant U.S. Attorneys Grant B. Rabenn and Paul Hemesath are prosecuting the case.
The defendants are scheduled to be sentenced by U.S. District Judge John A. Mendez on Nov. 19. Jabari Monson faces a maximum statutory penalty of 40 years in prison, a mandatory minimum of five years in prison, and a $5 million fine. Saudia Monson faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Chico Man Sentenced to 4 Years in Prison for Conspiracy to Distribute Methamphetamine in Butte and Shasta CountiesRead the Press Release
SACRAMENTO, Calif. — Curtis Dale Sawyer, 53, of Chico, was sentenced today by U.S. District Judge John A. Mendez, to four years in prison for conspiracy to distribute methamphetamine, U.S. Attorney McGregor W. Scott announced.
Sawyer pleaded guilty on December 11, 2018. According to court documents, on Dec 7, 2017, the California Highway Patrol stopped Sawyer while he was driving northbound on Interstate 5 in Shasta County. After a narcotics canine alerted to his car, agents searched the vehicle and found approximately 3.4 pounds of methamphetamine. Afterwards, law enforcement executed a search warrant at the Chico home that Sawyer shared with co-defendant Ann Marie Vance. Inside the home, agents found approximately one-half pound of methamphetamine and over $106,000 in cash. Officers found another 8.3 pounds of methamphetamine in a car Vance was driving near the home.
In April 2019, Vance pleaded guilty to conspiracy to distribute methamphetamine. She is scheduled to be sentenced on Sept. 24. She faces a prison sentence of not less than 10 years and up to life; up to a $10 million fine; and a term of supervised release of not less than five years and up to life. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the Shasta Interagency Narcotics Task Force, the Butte Interagency Narcotics Task Force, the Shasta County Sheriff’s Office, and the U.S. Drug Enforcement Administration.
Tracy Resident Convicted of 21 Counts of “H-1B” Visa Fraud and Two Counts of Aggravated Identity TheftRead the Press Release
SACRAMENTO, Calif. — A federal jury convicted Abhijit Prasad, 52, of Tracy, of 21 counts of visa fraud and two counts of aggravated identity theft today. The case originated in Sacramento when the grand jury there indicted Prasad in 2016, but the case was ultimately tried in San Francisco following a court order transferring the case there.
U.S. Attorney David Anderson for the Northern District of California and U.S. Attorney McGregor W. Scott for the Eastern District of California made the announcement.
According to the evidence at trial, Prasad filed 19 petitions for H-1B nonimmigrant visas containing false statements, made under penalty of perjury, as to purported work projects to be performed at locations in California, including Cisco Systems. The evidence at trial showed that Cisco had no expectation that the foreign workers who were the beneficiaries of the visa petitions would actually work at Cisco on an existing work project. The evidence at trial further showed that the defendant knowingly submitted forged Cisco documents to United States Citizenship and Immigration Services in support of his claims that the beneficiaries would work at Cisco.
Finally, the evidence at trial showed that Prasad fraudulently used the digital signature of a Cisco employee, who was not authorized to sign Cisco employment documents, to create a document that would leave the impression that two of the H-1B workers had an existing work project at Cisco. Prasad obtained two of the H-1B visas using this fraudulent document that purports to be a fully executed Cisco contract.
“This verdict sends a strong message: the Diplomatic Security Service is committed to making sure those who commit visa fraud face consequences for their criminal actions,” said Matthew Perlman, Special Agent in Charge of the DSS San Francisco Field Office. “Diplomatic Security’s strong relationship with the U.S. Attorney’s Office and with the Document and Benefit Fraud Task Force continues to be essential in the pursuit of justice.”
“Homeland Security Investigations remains laser focused to conduct document and benefit fraud investigations, arresting and bringing to justice individuals, like Prasad, who seek to undermine and abuse the laws of the United States,” said Tatum King, special agent in charge of Homeland Security Investigations (San Francisco and Northern California). “These types of fraudulent activities pose a severe threat to national security and public safety as it creates vulnerabilities for terrorists and other criminals to exploit. HSI and our law enforcement partners will not tolerate such criminal activities and will hold violators accountable to the fullest extent of the law.”
The case is the product of an investigation by the U.S. Department of State, Diplomatic Security Service’s representative to the Document and Benefit Fraud Task Force (DBFTF), overseen by Homeland Security Investigations. The DBFTF is a multi-agency task force that coordinates investigations into fraudulent immigration documents. U.S. Citizenship and Immigration Service’s Office of Fraud Detection and National Security also assisted with the investigation. Assistant U.S. Attorneys Audrey B. Hemesath and Michael A. Rodriguez are prosecuting the case.
Prasad is scheduled to be sentenced on Oct. 16 by U.S. District Judge Charles R. Breyer. Prasad faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for the visa fraud. He faces a two-year mandatory prison sentence and a $250,000 fine for the aggravated identity theft counts. 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.
Stanislaus County Man Convicted of Home Invasion Robberies Targeting Marijuana GrowersRead the Press Release
FRESNO, Calif. — On Thursday, Aug. 1, after a three–day trial, a federal jury found Jose Jesus Carbajal, 33, of Waterford, guilty of one count of conspiracy to commit robbery affecting interstate commerce, one count of interference with commerce by robbery, and one count of brandishing a firearm during a crime of violence, U.S. Attorney McGregor W. Scott announced.
According to evidence presented at trial, from at least October 2014 until December 2017, Carbajal was part of a robbery crew that targeted and robbed marijuana growers of their marijuana and cash. Carbajal and the crew posed as law enforcement officers to gain access to the property, announced they had a search and seizure warrant, then tied up the victims and held them at gunpoint while robbing them of marijuana, cash, and other items.
This case is the product of an investigation by the Federal Bureau of Investigation, the Colusa County Sheriff’s Department, the Central Valley Gang Impact Task Force, the Turlock Police Department, the Rio Dell Police Department, and the Hollywood Division of the Los Angeles Police Department. Forensic expertise and investigative assistance were provided by the California Department of Justice’s Bureau of Forensic Services and the FBI Laboratory in Quantico, Virginia. Assistant U.S. Attorneys Melanie L. Alsworth and Geoffrey D. Wilson are prosecuting the case.
Carbajal is scheduled to be sentenced by U.S. District Judge Lawrence J. O’Neill on Oct. 28. Carbajal faces a maximum statutory penalty of 20 years in prison and a $250,000 fine on counts one and two, and mandatory consecutive sentence of seven years to life on count three. 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.
Last Defendant Sentenced to 2 Years in Prison for Harmful Marijuana Cultivation Operation in Kiava Wilderness in Sequoia National ForestRead the Press Release
FRESNO, Calif. — Mauricio Vaca Bucio, 32, of Michoacán, Mexico, was sentenced today to two years in prison for conspiring to manufacture, distribute, and possess with intent to distribute marijuana, U.S. Attorney McGregor W. Scott announced.
Vaca’s sentence follows his guilty plea earlier this year. According to court documents, Vaca and his co-defendants Felipe Angeles Valdez Colima, 35, and Rodolfo Torres Galvan, 29, both Mexican nationals, were apprehended after a two-month investigation in the Kiavah Wilderness, a federally designated wilderness area in the Sequoia National Forest. Law enforcement officers saw Torres and Valdez emerge from the forest and enter a Camaro driven by Vaca. They were subsequently stopped in Weldon. Officers found freshly harvested marijuana in the Camaro and located over 1,800 marijuana plants at the grow site on the trail that led to the drop point. The officers also found deadly illegal pesticides, including carbofuran and zinc phosphide, in both the vehicle and at the grow site. U.S. District Judge Dale A. Drozd also ordered Vaca to pay $7,620 in restitution to the U.S. Forest Service for the damage he caused to the National Forest.
The United States Congress designated the Kiavah Wilderness in 1994, and it is managed by the Bureau of Land Management and the Forest Service. This wilderness area is part of the National Cooperative Land and Wildlife Management Area and the Bureau of Land Management’s Jawbone-Butterbredt Area of Critical Environmental Concern.
This case was the product of an investigation by the U.S. Forest Service with assistance from Enforcement and Removal Operations of Immigration and Customs Enforcement (ICE), Campaign Against Marijuana Planting (CAMP), California Department of Fish and Wildlife, California National Guard, Kern County Sheriff’s Office, and Kern County Probation Office. Assistant U.S. Attorney Karen A. Escobar prosecuted the case.
Valdez and Torres pleaded guilty and were sentenced to 10 years and three years and 10 months in prison, respectively.
Fairfield Man Sentenced to 4 Years in Prison for Possessing a Firearm as a FelonRead the Press Release
SACRAMENTO, Calif. — Wesley Ian Groves, 35, of Fairfield, was sentenced today by U.S. District Judge Kimberly J. Mueller, to four years in prison for being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
Groves pleaded guilty on May 20, 2019. According to court records, in December 2018, police stopped Groves’ car for a traffic violation. When the officer spoke to Groves, Groves said he had a gun underneath the driver’s seat. The officer searched the car and found a loaded pistol under the driver’s seat. The pistol was loaded with one round in the chamber and three rounds in the magazine. A subsequent records check showed that the gun was reported stolen out of Reno, Nevada. Groves cannot lawfully possess firearms or ammunition because he has previously been convicted of three felony offenses.
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 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.
Stockton Residents Sentenced for Scheme to Change Test Scores in DMV ComputersRead the Press Release
SACRAMENTO, Calif. — Stockton residents Donald Earl Freeman Jr., 26, was sentenced today to three years and one month in prison, and Juan Arturo Arroyo Gomez, 32, was sentenced to one year in prison, U.S. Attorney McGregor W. Scott announced.
On December 14, 2017, Freeman and Arroyo pleaded guilty to conspiracy to commit bribery, identity fraud, and unauthorized access to a computer for accepting bribes to change test scores in the computers of the California Department of Motor Vehicles (DMV).
“Individuals in positions of trust who exploit federal and state law for personal gain pose a significant threat to public safety and national security,” said Jerry C. Templet Jr, Deputy Special Agent in Charge, Homeland Security Investigations (San Francisco and Northern California). “HSI will continue working with our local, state, and federal partners to investigate these types of public corruption cases and bring those responsible to justice.”
According to court documents, Freeman was an employee at the DMV’s Tracy branch office and among other things, was responsible for processing applications for California commercial driver licenses (CDLs). Such CDLs permit the license holders to drive passenger buses or to operate tractor-trailer trucks on California and interstate highways, including, in some cases, hauling hazardous materials. Arroyo was a broker in the scheme and solicited truck driving students to pay him to assist them in obtaining driving permits.
According to court documents, in exchange for money from Arroyo and other brokers, Freeman accessed the DMV’s database in Sacramento to alter the records of 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 completed CDLs upon the applicants passing the behind-the-wheel driving tests.
According to their plea agreements, Freeman caused no less than 123 fraudulent permits to be issued, including at least 13 at the request of, and in exchange for payment from, Arroyo.
This case was the product of an investigation by the California Department of Motor Vehicles Office of Internal Affairs and Homeland Security Investigations (HSI). Assistant U.S. Attorney Rosanne L. Rust prosecuted the case.
Stockton Man and Woman Charged with Sex Trafficking of a ChildRead the Press Release
SACRAMENTO, Calif. — On July 25, 2019, a federal grand jury returned a two-count indictment charging Stockton residents Lucious James Roy, 33, and Dawniel Santangelo, 41, with sex trafficking of a child, U.S. Attorney McGregor W. Scott announced. The indictment was unsealed today.
According to court documents, between September and November 2018, Roy recruited, enticed, transported, harbored, and maintained a minor victim, knowing that the minor would be caused to engage in prostitution. During that same time period, Roy and Santangelo also recruited, enticed, transported, harbored, and maintained a second minor victim, knowing that the second minor victim would also engage in prostitution.
Roy and Santangelo are currently in state custody in Oregon.
This case is the product of an investigation by the Federal Bureau of Investigation, Stockton Police Department, San Joaquin District Attorney’s Office, Medford (Oregon) Police Department, and Jackson County Oregon District Attorney’s Office. Assistant U.S. Attorneys Cameron L. Desmond and Brian A. Fogerty are prosecuting the case.
If convicted of sex trafficking of a child, Roy and Santangelo face a mandatory minimum sentence of 10 years in prison and a maximum statutory penalty of life in prison, and a maximum fine of $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 Man Sentenced to 10 Years in Prison for Distributing MethamphetamineRead the Press Release
SACRAMENTO, Calif. — Salvador Padilla III, 39, of Sacramento, was sentenced today by U.S. District Judge Troy L. Nunley, to 10 years in prison for distributing methamphetamine, U.S. Attorney McGregor W. Scott announced.
On May 23, 2019, Padilla pleaded guilty. According to court documents, in October 2017, an investigation began into a Sacramento-area methamphetamine dealer based on reports that the dealer was distributing pound-level quantities of methamphetamine locally. In December 2017, an undercover purchase of one-pound methamphetamine was arranged from the dealer. Just before the purchase took place, Padilla left his home and drove to the dealer’s home, where he gave the dealer over a pound of methamphetamine, which the dealer then sold to the undercover agent.
This case is the product of an investigation by the Drug Enforcement Administration with special assistance from Homeland Security Investigations.
In May 2019, co-defendants Eberardo Mendez, and Jose Romero, 55, both of Sacramento, pleaded guilty to conspiracy to distribute methamphetamine. Mendez and Romero will be sentenced in September and October 2019, respectively. They each face a mandatory minimum penalty of 10 years in prison, and a maximum 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.
Sacramento CEO Pleads Guilty to Pension EmbezzlementRead the Press Release
SACRAMENTO, Calif. — David L. Bonuccelli, 65, of Sacramento, pleaded guilty today to embezzlement from his employees’ pension plan, U.S. Attorney McGregor W. Scott announced.
According to court documents, Bonuccelli was the CEO of a real estate investment consulting and advisory firm in Sacramento that was a licensed real estate broker, registered investment advisor with the SEC, and which provided services to public pension funds, institutional investors, endowments, and individual investors. His firm sponsored a number of retirement benefit plans for its employees under ERISA, including a traditional pension over which Bonuccelli was the sole trustee. From 2011 through 2014, Bonuccelli made unauthorized transfers totaling $1,243,154 from the pension’s account, including transfers to his personal bank account to fund hundreds of thousands of dollars in spending and transfers to his own retirement plan. Bonuccelli later created paperwork purporting to document these transfers as “loans,” and made false statements on annual forms filed with the Department of Labor about the pension plan’s balance and his transfers.
This case is the product of an investigation by the U.S. Department of Labor – Employee Benefits Security Administration. Assistant U.S. Attorneys Matthew M. Yelovich and Miriam R. Hinman are prosecuting the case.
Bonuccelli is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on Jan. 16, 2020. Bonuccelli faces a maximum statutory penalty of five 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.
Rocklin Man Sentenced to 20 Years in Prison for Distributing Child PornographyRead the Press Release
SACRAMENTO, Calif. — Cameron Fox, 35, of Rocklin, was sentenced today by U.S. District Judge Morrison C. England Jr. to 20 years in prison for distributing child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, Fox met a minor victim online for sexual purposes and after meeting her in person, he sent her child pornography.
This case was the product of an investigation by the Federal Bureau of Investigation and the Marin County Sheriff’s Office. Assistant U.S. Attorneys Rosanne Rust and Michael D. Anderson 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.
Jury Finds Mexican National Guilty of Being a Deported Alien Found in the United StatesRead the Press Release
SACRAMENTO, Calif. — A federal jury returned a guilty verdict today convicting Jose Elfego Gutierrez-Gomez, 36, a citizen of Mexico residing in Stockton, of being a deported alien found in the United States, U.S. Attorney McGregor W. Scott announced.
According to court documents and evidence presented at trial, Gutierrez-Gomez originally entered the United States without having obtained legal status. Then in 2008, he was convicted of methamphetamine trafficking and sentenced to five years in prison. Following his release from prison, he was removed from the United States. Gutierrez-Gomez subsequently illegally reentered the United States.
Gutierrez-Gomez came to the attention of Immigration and Customs Enforcement, and on December 21, 2018, he was arrested. A grand jury subsequently indicted him.
This case is the product of an investigation by Immigration and Customs Enforcement. Assistant U.S. Attorneys Shea J. Kenny and Katherine T. Lydon are prosecuting the case.
Gutierrez-Gomez is scheduled to be sentenced on Oct. 23 by U.S. District Judge Kimberly J. Mueller. Gutierrez-Gomez 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.
Sacramento Man Convicted of Assaulting U.S. Postal WorkerRead the Press Release
SACRAMENTO, Calif. — On Monday, a federal jury found Morrey Selck, 55, guilty of assaulting a federal employee, U.S. Attorney McGregor W. Scott announced.
According to court documents and trial testimony, on March 17, 2017, Selck assaulted a letter carrier who was delivering mail on his assigned route. Selck sprayed him in the face with dog repellent, followed him into the street, knocking the mail and a phone from his hands. Selck then kicked those items down the street. A neighbor’s surveillance camera captured the entire incident.
San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated, “Postal Inspectors worked closely with the U.S. Attorney’s Office to arrest and prosecute the individual responsible for assaulting the U.S. Postal Service Letter Carrier in Sacramento. Safety of Postal Service employees is our top priority.”
This case is the product of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorneys Cameron L. Desmond and Quinn Hochhalter are prosecuting the case.
Selck is scheduled to be sentenced by U.S. Magistrate Judge Carolyn K. Delaney on Dec. 2. Selck faces a maximum statutory penalty of one year in prison and a $100,000 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.
Prisoners Sentenced to an Additional 20 Years in Prison for Attempting to Kill a Federal Correctional Officer, Assault on a Federal Correctional OfficerRead the Press Release
FRESNO, Calif. — U.S. District Judge Lawrence J. O’Neill sentenced Jonathan Mota, 37, and Dominic Adams, 27, today to 20 years in prison, following their convictions at trial, U.S. Attorney McGregor W. Scott announced.
Mota was sentenced for attempting to kill a federal officer, and Adams was sentenced for assault on a federal officer. The sentences are to be served consecutively to the federal sentences they are currently serving, and will be followed by three years of supervised release.
According to court documents and evidence presented at trial, on October 6, 2017, Mota, Adams and four other inmates brutally attacked a Federal Bureau of Prisons officer who was a teacher working at the federal penitentiary in Atwater. The officer was repeatedly stabbed with homemade knives and kicked and beaten by the inmates.
According to court documents, on the day of the attack, Mota and Eric Chiago, 28, entered the copy room where the officer was making copies and repeatedly stabbed him. William Roe Acevedo, 33; Michael Martin, 30; Joey Thomas, 26; and Adams stationed themselves outside the room. When the victim was able to free himself and escape down the hallway, the six defendants tackled him and wrestled him to the floor where they repeatedly kicked, punched and stabbed him. Adams and Thomas also assaulted an officer who was responding to the attack.
Chiago, Acevedo, Martin, and Thomas pleaded guilty to aggravated assault. Chiago was sentenced to 15 years and eight months in prison, Acevedo was sentenced to 13 years in prison, Martin was sentenced to 12 years and six months in prison, and Thomas was sentenced to eight years and one month in prison.
This case was the product of an investigation by the Federal Bureau of Investigation and the Federal Bureau of Prisons. Assistant U.S. Attorney Kirk E. Sherriff prosecuted the case.
Auburn Man Pleads Guilty to Producing Child PornographyRead the Press Release
SACRAMENTO, Calif. —Christopher Lee, 66, of Auburn, pleaded guilty today to one count of production of child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, Lee repeatedly used a webcam to produce child pornography involving a seven-year-old child and shared the live-streamed video with an individual who lived in England.
This case is the product of an investigation by Homeland Security Investigations (HSI) and the Placer County Sheriff’s Department. Assistant U.S. Attorney Lee S. Bickley is prosecuting the case.
Lee is scheduled to be sentenced by U.S. District Judge Kimberly Mueller on Oct. 28. Lee faces a maximum statutory penalty of 30 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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 U.S. 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.
Vallejo Man Sentenced to 4 Years in Prison for Multimillion Dollar Mortgage and Foreclosure Rescue Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Garland E. Burrell Jr. sentenced Zalathiel Aguila, 46, of Vallejo, to four years in prison for conspiracy to commit wire fraud affecting a financial institution and bank fraud, U.S. Attorney McGregor W. Scott announced.
According to court documents, between September 2004 and February 2008, Aguila and co-conspirators Sergio Roman Barrientos and Omar Anabo 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 Aguila 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. Attorney Matthew M. Yelovich prosecuted the case.
Aguila remains out of custody pending his surrendering for service of his sentence on Oct. 25. Barrientos was sentenced on Nov. 2, 2018, to 14 years in prison for his role in the scheme, and Anabo (charged elsewhere) is scheduled to be sentenced on Aug. 16.
Oakland Resident Pleads Guilty to Conducting Illegal Gambling Business in Sacramento and ElsewhereRead the Press Release
SACRAMENTO, Calif. — Eran Buhbut, 34, of Oakland, pleaded guilty today to conducting an illegal gambling business, U.S. Attorney McGregor W. Scott announced.
According to court documents, from at least September 2015 through November 2017, Buhbut conducted an illegal gambling business in concert with his co-defendants, as a part of the Gohar organization. In violation of California law, members of the Gohar organization, including Buhbut, installed and maintained video slot machines at businesses open to the public across Northern California. Buhbut and other members of the Gohar organization then split the proceeds from these illegal gambling machines with the owners of the small businesses in which the machines were installed.
According to the plea agreement, evidence seized at Buhbut’s residence included over $28,000 in cash in low dollar amounts consistent with video slot machine collections, 16 motherboards used in such machines, ledgers describing cash “in” and “out” amounts, seven different phones, and a specialized set of security keys consistent with the type of locks found on the Gohar organization’s video slot machines. The gambling business is alleged to have 500 machines across California.
This case is the product of an investigation by the Federal Bureau of Investigation and California Department of Justice – Bureau of Gambling Control. Assistant U.S. Attorneys Matthew M. Yelovich and Miriam R. Hinman are prosecuting the case.
Yaniv Gohar, 36, formerly of Berkeley; and Orel Gohar, 28, formerly of San Francisco, fled the United States upon their release in December 2017. Yaniv Gohar was extradited from Israel and faces additional charges. Orel Gohar remains at large. Anyone with information about his whereabouts should call the Federal Bureau of Investigation at (916) 746-7000. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
May Levy, 28, of Walnut Creek; Atir Dadon, 34, of Sherman Oaks; Bar Shani, 27, of San Francisco; and Adam Atari, 35, of Sherman Oaks, have pleaded guilty. Levy was sentenced to two years’ probation; Dadon was sentenced to 22 months in prison; Shani was sentenced to 20 months in prison, and Atari is scheduled to be sentenced on Aug. 30.
Raz Razla, 48, of Sherman Oaks, is charged with making false statements to the grand jury. The charge is only an allegation; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Buhbut is scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on Feb. 28, 2020. Buhbut faces a maximum statutory penalty of five 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.
Israel Extradites Fugitive Charged with Failure to Appear, Conducting Illegal Gambling Business, and Money LaunderingRead the Press Release
SACRAMENTO, Calif. — Following the successful extradition from Israel, Yaniv Gohar, 36, formerly of Berkeley, will be arraigned today on a superseding indictment that adds the charge of failure to appear to the original charges relating to an illegal gambling business, U.S. Attorney McGregor W. Scott announced.
According to court documents, Gohar was arrested on December 8, 2017, in connection with his initial charges. On December 21, he was released on bond over the government’s objection. Four days later, he allegedly crashed his Porsche Panamera into a parked car in Berkeley and did not immediately stop, but rather continued driving until cited by the Berkeley Police Department for reckless driving. On January 3, 2018, he failed to appear as ordered for his pretrial services violation hearing and has remained at large since that time. In September 2018, a grand jury returned a superseding indictment charging Gohar with, among other offenses, failure to appear.
This case is the product of an investigation by the FBI and California Department of Justice – Bureau of Gambling Control. Assistant U.S. Attorneys Matthew M. Yelovich and Miriam R. Hinman are prosecuting the case. Significant assistance was provided by the Department of Justice’s Office of International Affairs and by Israeli authorities.
Yaniv Gohar’s brother and co-defendant, Orel Gohar, 28, fled the United States in December 2017 and remains at large. Anyone with information about his whereabouts should call the Federal Bureau of Investigation at (916) 746-7000.
If convicted, Yaniv Gohar faces five years in prison for the failure to appear to be served consecutively to the other sentences imposed. If convicted, he also faces a maximum statutory penalty of five years in prison for the illegal gambling offense and 20 years in prison for the money laundering conspiracy. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former DMV Employee Sentenced for a Scheme to Issue Commercial Licenses to Unqualified DriversRead the Press Release
SACRAMENTO, Calif. — Kari Scattaglia, 40, of Sylmar, was sentenced today to two years and eight months in prison for a conspiracy to take bribes to provide Class A commercial driver licenses without the buyer having to take or pass the required tests, U.S. Attorney McGregor W. Scott announced.
“The FBI is committed to working with law enforcement and agency partners to root out corruption, especially when it puts the lives of our fellow citizens at risk,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “Scattaglia’s greed led her to value self‑enrichment over the safety of the millions of people accessing California and interstate highways. Instead of performing her job honestly, she took bribes in exchange for enabling drivers of tractor-trailer trucks to operate in California without passing the tests required to ensure they could operate safely.”
“Individuals in positions of trust who exploit federal and state law for personal gain pose a significant threat to public safety and national security,” said Jerry C. Templet Jr, Deputy Special Agent in Charge, Homeland Security Investigations (San Francisco and Northern California). “HSI will continue working with our local, state, and federal partners to investigate these types of public corruption cases and bring those responsible to justice.”
On November 3, 2017, Scattaglia and former DMV employee co-defendant Lisa Terraciano, 52, of North Hollywood, pleaded guilty to a conspiracy to commit bribery, to commit identity fraud, and to commit unauthorized access of a computer.
According to court documents, since April 2007, Scattaglia worked at the DMV. Between 2014 and 2017, she was a manager, assistant manager, and a Licensing-Registration Examiner (LRE) at the Arleta DMV and the Granada Hills Driver License Processing Center. Terraciano worked for the DMV since June 2005 and was a Motor Vehicle Representative (MVR) in the Winnetka DMV office from 2014 through 2017. Among other things, Scattaglia and Terraciano were responsible for processing applications for California commercial driver licenses (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, Scattaglia and Terraciano each accessed the DMV’s database in Sacramento to alter the records of 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. In addition, Scattaglia also accessed the DMV database to fraudulently alter applicants’ records to show that the applicants had passed the driving tests despite the applicants not having taken or passed those tests.
According to the plea agreements, Scattaglia caused at least 68 fraudulent CDLs, including permits, to be issued, and Terraciano caused at least 148 fraudulent CDLs, including permits, to be issued.
This case is the product of an investigation by the California Department of Motor Vehicles, Office of Internal Affairs, the Federal Bureau of Investigation, and Homeland Security Investigations. Assistant U.S. Attorney Rosanne L. Rust is prosecuting the case.
Terraciano is scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on Sept. 27. Terraciano faces a maximum statutory penalty of five 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.
Two Visalia Residents Indicted for Growing Marijuana in the Sierra National Forest in Madera CountyRead the Press Release
FRESNO, Calif. — On Thursday, a federal grand jury returned a three-count indictment today against Hector Manuel Gomez Rodriguez, 45, of Visalia, and Mucio Alejandro Gomez Rodriguez, 46, of Visalia, charging them with manufacture of marijuana, conspiracy to manufacture marijuana, and depredation of public lands and resources, U.S. Attorney McGregor W. Scott announced.
According to court documents, in early June, officers located a clandestine marijuana grow site on U.S. Forest Service land east of North Fork in the Sierra National Forest in Madera County. On July 16, 2019, USFS officers and other law enforcement personnel hiked into the grow site and apprehended the defendants as they tried to flee. Officers found 4,494 live marijuana plants, a .45-caliber handgun, and a pellet gun in the cultivation site.
This case is the product of an investigation by the U.S. Forest Service, the Madera County Sheriff’s Office, California Department of Fish and Wildlife, and CAMP (Campaign Against Marijuana Planting). Assistant U.S. Attorney Katherine Schuh is prosecuting the case.
If convicted, the defendants each face a maximum statutory penalty of 10 years to life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Two Indicted for Conspiring to Grow Marijuana in Shasta Trinity National Forest near Rays PeakRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Mario Alberto Lopez-Pena, 19, of Winton, and Francisco Madrigal Magana, 25, of Turlock, charging them with conspiracy to cultivate marijuana, marijuana cultivation, and depredation of federal lands and resources in the Shasta-Trinity National Forest, U.S. Attorney McGregor W. Scott announced.
According to court documents, between June 9 and July 8, the defendants were involved in the cultivation of 4,105 marijuana plants south of Rays Peak in the Shasta-Trinity National Forest. The defendants were arrested on July 8, 2019.
This case is the product of an investigation by the U.S. Forest Service, the Trinity County Sheriff’s Department, the California Department of Fish and Wildlife, and the Bureau of Land Management. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.
If convicted of either of the marijuana charges, both defendants face a mandatory minimum penalty of 10 years in prison, and a maximum penalty of life in prison and a $10 million fine. If convicted of damaging public lands, the defendants face a maximum penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account several variables. These charges are only allegations; the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Sacramento Man Pleads Guilty to Producing Child PornographyRead the Press Release
SACRAMENTO, Calif. —Javontae D. Rucker, 27, of Sacramento, pleaded guilty today to production of child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, between February 1, 2017, and March 31, 2017, while babysitting, Rucker took advantage of an infant in his care, and he used his cellphone to produce child pornography images and a video of the victim. Rucker also admitted to possessing over a thousand child pornography videos and images of other victims.
This case is the product of an investigation by the Internet Crimes Against Children Task Force, composed of various law enforcement agencies, including the Sacramento County Sheriff’s Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Rosanne L. Rust is prosecuting the case.
Rucker is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on Oct. 24. Rucker faces a maximum statutory penalty of 30 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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.
Olivehurst Man Arrested for Receipt of Child PornographyRead the Press Release
SACRAMENTO, Calif. — An indictment was unsealed today after the arrest of John Maasen, 64, of Olivehurst, who is charged with receipt of child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, between March 26, 2013, and January 15, 2019, Maasen knowingly received visual depictions of minors engaged in sexually explicit conduct.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Shea J. Kenny and Amy Schuller Hitchcock are prosecuting the case.
If convicted, Maasen faces a minimum statutory penalty of 15 years in prison and a maximum penalty of 40 years in prison, as well as 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 Man Sentenced to 15 Years in Prison for Receipt of Child PornographyRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge John A. Mendez sentenced David Patrick Seilheimer, 54, of Sacramento, today to 15 years in prison for receipt of child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, between May 2015 and February 7, 2018, Seilheimer, used a file sharing program to find and download child pornography. Seilheimer had a prior conviction in Colorado for a crime relating to sexual abuse. Seilheimer was on Colorado state parole, and required to register as a sex offender when he was arrested in Sacramento.
This case was the product of an investigation by the Internet Crimes Against Children Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s 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 Rosanne L. Rust and Roger Yang 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.
Federal Protective Service Commander and North Carolina Man Indicted for Conspiracy and Scheme to Defraud the Social Security AdministrationRead the Press Release
SACRAMENTO, Calif. — A 16-count superseding indictment by a federal grand jury was unsealed today against Darron Dimitri Ross, 33, of Charlotte, North Carolina, and Joshua Bilal George, 36, of San Diego, including charges of conspiracy to defraud and commit crimes against the United States, theft of government property, aggravated identity theft, wire fraud, and money laundering, U.S. Attorney McGregor W. Scott announced.
This recent indictment supersedes a December 20, 2018, indictment that charged Ross and alleged co-conspirator Eric Lemoyne Willis, 43, of West Sacramento. On June 17, 2019, Willis pleaded guilty to charges in the original indictment, including conspiracy to defraud the United States, theft of government property, and aggravated identity theft.
According to court documents, Willis, Ross, and George conspired to steal public money from the Social Security Administration (SSA). Willis worked as an SSA Operation Supervisor in Sacramento and Lodi from at least 2015 until his departure in January 2018. In this timeframe, Willis used his authority as an SSA employee to access the confidential Social Security records of numerous Social Security beneficiaries. These records contained personally identifiable information (PII) including names, addresses, social security numbers, dates of birth, account numbers, family information, and benefit payment amounts. Willis sought out PII for beneficiaries who used direct deposit for payment of large benefits. Willis then transferred this PII to his co-conspirators, including Ross who resided in North Carolina, and George who worked as a Federal Protective Service Officer in San Diego.
According to court documents, Ross’s and George’s role in these crimes included calling numerous SSA field offices across the country and using the stolen PII to impersonate the beneficiaries. The conspirators opened at least 44 online bank accounts under fraudulent identities to receive diverted SSA benefit payments. During these calls, Ross and George convinced some of the SSA representatives that they were the identity-theft victims, and they caused the representatives to change the direct deposit account numbers to the fraudulent account numbers. The SSA then deposited the benefit payments into the fraudulent accounts until the fraud was detected. The conspirators were then free to withdraw the funds at ATMs and spend the money using debit cards.
SSA has identified at least 160 beneficiaries who were victims these crimes, and the total fraud loss suffered by SSA has exceeded $480,000.
This case was the product of an investigation by the Social Security Administration – Office of the Inspector General, the Federal Bureau of Investigation, and the Department of Homeland Security – Office of the Inspector General. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
Federal agents arrested George this morning in San Diego, and he made his initial appearance in the Southern District of California. Willis is released on bond pending his sentencing, and Ross is released on bond pending trial.
If convicted of wire fraud, Ross and George face a maximum statutory penalty of 20 years in prison and a $250,000 fine. If convicted of aggravated identity theft, they each face a mandatory sentence of two years in prison consecutive to any other sentence imposed. The maximum sentence for theft of government property is 10 years in prison and a $250,000 fine. The maximum sentence for conspiracy is 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; each defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Vacaville Man Sentenced to 7 Years in Prison for Possessing Methamphetamine for DistributionRead the Press Release
SACRAMENTO, Calif. — Christian Henry Dorsch Jr., 50, of Vacaville, was sentenced today by U.S. District Judge Troy L. Nunley to seven years in prison for possessing methamphetamine for distribution, U.S. Attorney McGregor W. Scott announced.
Dorsch pleaded guilty on January 10, 2019. According to court documents, on September 6, 2018, police stopped Dorsch while he was driving in Fairfield. A search warrant allowed them to search Dorsch, his cars, and his home in Vacaville for evidence of drug-trafficking and firearms. When the officers searched Dorsch’s car, they found approximately one-half pound of methamphetamine in the center console. Later, during an interview, Dorsch said that he intended to sell the narcotics.
This case was the product of an investigation by the Vacaville Police Department, with special assistance from the FBI’s Solano County Violent Crimes Task Force and the Solano County District Attorney’s Office.
South Lake Tahoe Man Charged in Firearms and Narcotics CrimesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Christopher Louis Wadstein, 31, of South Lake Tahoe, charging him with being a felon in possession of a firearm and possession with intent to distribute methamphetamine, U.S. Attorney McGregor W. Scott announced.
According to court documents, in May 2018, burglars stole several firearms from a car parked outside a hotel in South Lake Tahoe. Not long after the theft, officers received information that the firearms were in Wadstein’s possession. Officers were able to locate a car Wadstein had rented and searched it, finding a backpack with five handguns and ammunition in it. The firearms were later confirmed to have been among those stolen from the car outside the hotel. Following his arrest, Wadstein later admitted to having received the guns and ammunition, and to stashing them in his car. Wadstein has two prior state felony convictions for endangering public safety while fleeing from the police, and one felony conviction for being a felon in possession of a firearm. Because of these convictions, Wadstein is prohibited from possessing firearms.
Wadstein was charged in El Dorado County Superior Court for his possession of the firearms, but fled before his preliminary hearing. The court issued a bench warrant for his failure to appear.
In May 2019, the South Lake Tahoe Police Department received information that Wadstein had returned to Northern California. On May 21, 2019, officers were able to locate his vehicle within Sacramento County and attempted to make a traffic stop. Instead, Wadstein fled, leading police on a high speed pursuit, during which Wadstein collided with numerous other drivers, drove the wrong way down several streets, exceeded 100 mph on surface roads, and tried to ram law enforcement vehicles. One collision caused Wadstein’s vehicle to catch fire and he was forced to abandon it, fleeing on foot. As he ran, he scattered a bag of methamphetamine he was carrying. Ultimately, he was unable to escape police on foot and surrendered. Officers later recovered approximately 335 grams of methamphetamine from the ground where Wadstein had discarded it.
This case is the product of an investigation by the South Lake Tahoe Police Department, the Bismarck Police Department, the El Dorado County District Attorney’s Office, the California Highway Patrol, and the Federal Bureau of Investigation. Assistant U.S. Attorney James R. Conolly is prosecuting the case.
If convicted of the count of being a felon in possession of a firearm, Wadstein faces a statutory maximum sentence of 10 years in prison and a $250,000 fine. If convicted of the possession of methamphetamine with the intent to distribute count, he faces a maximum statutory penalty of 40 years in prison and a $5 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the 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.
Sacramento Man Sentenced to 30 Years in Prison for Producing Child Pornography Using Children in the PhilippinesRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Kimberly J. Mueller sentenced Mark Corum, 62, of Sacramento, today to 30 years in prison for distribution and production of child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, Corum engaged in Skype conversations with various Skype users in the Philippines in which he instructed the other parties to perform sexual acts on children while he watched on live webcam. Corum sent the persons in the Philippines payments of between $25 and $35 via money transmittal services in exchange for them performing the sexual acts he requested on children and transmitting the images to him via webcam. Transcripts of the Skype chats filed with the court reflect that, at Corum’s direction, children between the ages of infancy and 10 years old were sexually abused. The Skype chats also contain statements by Corum alluding to prior trips to the Philippines and sex acts with children there. He indicated that if he visited the Philippines again, he wanted to have sex with one of the children he had directed to be abused, a six-year-old girl. In addition, on June 23, 2016, Corum used the internet to transmit images of prepubescent children engaged in sexually explicit conduct to another person.
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. Attorney Katherine T. Lydon 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.
Atwater Man Sentenced to 40 Years in Prison for Offenses Related to the Sexual Exploitation of Children Using Social MediaRead the Press Release
FRESNO, Calif. — Chief U.S. District Judge Lawrence J. O’Neill sentenced Nikko Adolfo Perez, 27, of Atwater, today to 40 years in prison, to be followed by a lifetime term of supervised release for his convictions for the sexual exploitation of children, coercion and enticement of a minor, and receipt and distribution of child pornography, U.S. Attorney McGregor W. Scott announced.
“While Perez's sentence is substantial, it pales in comparison to the lifetime of damage he inflicted upon his many victims. Innocence cannot be restored,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “We hope this case inspires families to have conversations about the danger of communicating online over text, apps, and other media with a stranger and the importance of immediately seeking help if communication becomes exploitive or threatening. The internet fosters both false familiarity and anonymity, which can empower a predator. We urge the community to be mindful of the inherent danger of communicating with or transmitting photos to someone you do not truly know.”
According to a criminal complaint, Perez, using the Instagram screen name captainamerica272018, victimized two boys, ages 8 and 10, in Utah by coercing them to create and send him images of themselves engaged in sexually explicit conduct. Perez offered to pay the boys with Google Play credits if they engaged in requested sexual acts or poses, and when one of the victims said he would call 911, Perez threatened to disseminate the sexually explicit images of the victims. He also threatened to harm family members of the victims.
Perez admitted in a plea agreement that he also used Skype, Kik, Discord, Snapchat, and LiveMe to communicate with between 50 and 100 minors for the purpose of soliciting sexually explicit images of those minors. He admitted that he persuaded the victims to pose nude or engage in sexually explicit activities, sometimes with other minors. He admitted that he often paid victims to engage in this conduct, and he sent some of the material that he had requested to other people.
The FBI continues to seek additional victims. Information can be submitted to https://tips.fbi.gov or call the local FBI office.
This case was the product of an investigation by the Federal Bureau of Investigation, the Salt Lake City Police Department, and the FBI’s Violent Crimes Against Children Section Major Case Coordination Unit. The Merced District Attorney’s Office investigations unit also assisted in the investigation of the case. Assistant U.S. Attorney David Gappa prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
San Francisco Man Sentenced to 20 Months of Imprisonment for Conspiring to Launder Money from Illegal Gambling BusinessRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Garland E. Burrell, Jr., sentenced Bar Shani, 27, of San Francisco, to 20 months in prison for conspiring to launder money, U.S. Attorney McGregor W. Scott announced.
According to court documents, between October 2016 and November 2017, Shani conspired to launder the proceeds of an illegal gambling business with Atir Dadon, 34, of Sherman Oaks, and Orel Gohar, 28, of San Francisco. Orel Gohar and Yaniv Gohar, 35, of Berkeley, operated an illegal gambling business that placed and maintained video slot machines at businesses in Northern California, including locations in the Eastern District of California. Shani, Dadon, and Orel Gohar agreed that Orel Gohar would give cash proceeds from the Gohars’ gambling business to Shani and Dadon, who would use the cash to pay the workers in their cosmetics business. They agreed that Orel Gohar would give cash to Shani and Dadon, and in return, they would arrange for Orel Gohar to receive checks from the cosmetics business. To conceal the fact that the financial transactions involved the proceeds of illegal activity, Shani, Dadon, and Orel Gohar used code words in their conversations about the transactions, referring to the money as bottles of alcohol or other non‑cash items. Dadon also put false memo lines on the checks, indicating that Orel Gohar had provided consulting and training services, when in fact he had not done so. Between October 2016 and November 2017, Shani and Dadon laundered $159,900 from the Gohars’ gambling business.
This case is the product of an investigation by the Federal Bureau of Investigation and the California Department of Justice – Bureau of Gambling Control. Assistant U.S. Attorneys Matthew M. Yelovich and Miriam R. Hinman are prosecuting the case.
On July 12, co-defendant Dadon was sentenced by U.S. District Judge Garland E. Burrell, Jr., to 22 months in prison. Co-defendant Adam Atari, 35, of Sherman Oaks, pleaded guilty to conspiring to launder money and witness tampering. Sentencing for Atari is set for Aug. 30. Co-defendant May Levy, 28, of Walnut Creek, pleaded guilty to operating an illegal gambling business, and on May 10, 2018, was sentenced to two years of probation.
Co-defendants Yaniv Gohar and Orel Gohar fled the United States upon their release in December 2017 and remain at large. Anyone with information about their whereabouts should call the Federal Bureau of Investigation at (916) 746-7000.
Co-defendant Raz Razla, 48, of Sherman Oaks, is charged with making false statements to the grand jury. Co-defendant Eran Buhbut, 33, of Oakland, is charged with operating an illegal gambling business. These charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt. If convicted, these remaining defendants face a statutory maximum penalty of 5 years in prison and a fine of up to $250,000, or both. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Man Arrested in Rancho Cordova Pleads Guilty to Identity Theft and Bank Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Cody Patrick Cannon, 31, a transient, pleaded guilty yesterday to bank fraud, aggravated identity theft, and possession of reproduced U.S. Postal Service keys, U.S. Attorney McGregor W. Scott announced.
According to court documents, between January and August 2018, Cannon engaged in a scheme in which he used counterfeit U.S. Postal Service keys to open apartment complex mailboxes throughout Northern California and steal mail. Cannon and others involved in the scheme then harvested personally identifiable information, financial information, and credit and debit cards. They defrauded banks by using the stolen cards to purchase goods and withdraw cash from ATMs in Vacaville, Folsom, Rocklin, and Rancho Cordova.
On August 2, 2018, Cannon and his co-defendant, Candice Freitas, were arrested at their RV parked in a hotel parking lot in Rancho Cordova. They were found to be in possession of stolen mail, checks, multiple stolen and fake California driver’s licenses, at least two passports bearing the names of others, and at least seven counterfeit U.S. Postal Service mail keys.
This case is the product of an investigation by the United States Postal Inspection Service, Sacramento County Sheriff’s Department, Folsom Police Department, and Vacaville Police Department. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
Cannon remains in custody pending sentencing. Cannon’s co-defendant, Candice Freitas, has pleaded not guilty to the charges in the indictment and she remains in custody pending trial. The charges against her are only allegations; she is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Cannon is scheduled to be sentenced by Judge Troy L. Nunley on October 3, 2019. He faces a maximum statutory penalty of 30 years in prison and a $1,000,000 fine for bank fraud. He also faces a mandatory two-year consecutive sentence for aggravated identity theft. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
San Joaquin County Biodiesel Firm Sentenced to Probation, Fines for Clean Water Act ViolationsRead the Press Release
SACRAMENTO, Calif. — On July 8, 2019, United States District Judge Kimberly J. Mueller sentenced the corporation known as American Biodiesel, Inc. for violations of the Clean Water Act, U.S. Attorney McGregor W. Scott announced.
American Biodiesel, Inc., registered in San Joaquin County as Community Fuels, manufactured biodiesel fuel on property leased from the Port of Stockton.
According to court documents, American Biodiesel, Inc. admitted to allowing the discharge of industrial wastewater into the City of Stockton sewer system in violation of Stockton permitting regulations and the federal Clean Water Act. American Biodiesel, Inc. also admitted to tampering with monitoring devices and methods designed to detect such violations. Specifically, employees tampered with pH recordings and flow meters for the purpose of underreporting acid and pollutant levels and volumes that would have exceeded the figures allowed under the City’s regulations.
Judge Mueller imposed a three-year term of probation on American Biodiesel, Inc., including various reporting and monitoring conditions. Judge Mueller also fined American Biodiesel, Inc. $401,000 and ordered restitution to the Port of Stockton and the City of Stockton in the amount of $256,206. Judge Mueller further ordered the company to develop and implement an effective compliance and ethics program, which will be submitted to the court for review.
The indictment in the case also charges Christopher Young, 41, of El Dorado Hills, with conspiracy, 12 counts of tampering with monitoring equipment, two counts of unlawful discharge of industrial wastewater, one count of false statements, and one count of witness tampering. Christopher Young was the Director of Operations at the Stockton plant. The same indictment charges his brother Jeremiah Young, 38, of El Dorado, with conspiracy, eight counts of tampering with monitoring equipment, and two counts of unlawful discharge of industrial wastewater. Jeremiah Young was Assistant Operator for Community Fuels from 2014 to 2016. The Youngs’ cases remain pending before the court. The charges are only allegations; each defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the EPA’s Criminal Investigation Division, San Joaquin County District Attorney’s Office, City of Stockton Municipal Utilities Department, San Joaquin County Environmental Health Department, Port of Stockton, and California Department of Toxic Substances Control.
Assistant United States Attorneys Samuel Wong, Philip A. Scarborough, and Paul Hemesath are prosecuting the case.
Mexican Nationals Indicted for Methamphetamine Trafficking in Stanislaus CountyRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Antonio Ochoa Mejia, (“Mejia”), 48, Ramon Ortega (“Ortega”), 33, and Jorge Armando Gonzalez Martinez (“Martinez”), 38, all Mexican nationals, charging them with conspiring to distribute and possessing with intent to distribute methamphetamine, United States Attorney McGregor Scott announced.
According to court documents, on April 18, 2019, Mejia and Ortega sold one kilogram of methamphetamine for $4,500 during an undercover transaction in Empire, CA. On May 14, 2019, Mejia sold two kilograms of methamphetamine for $9,000 during an undercover transaction in Ceres. On May 30, 2019, Mejia and Martinez were arrested in Ceres after attempting to deliver 10 kilograms of methamphetamine during an undercover transaction.
This case was the product of an investigation by the Federal Bureau of Investigation and the San Joaquin Metropolitan Narcotics Task Force. Assistant United States Attorney Jessica A. Massey is prosecuting the case.
If convicted, the defendants face a mandatory minimum statutory penalty of ten years imprisonment, a maximum statutory penalty of life 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 defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Mexican National Enters Guilty Plea to Firearm OffenseRead the Press Release
FRESNO, Calif. — Fernando Daniel Ruvalcaba-Velez, 35, of Jalisco, Mexico, pleaded guilty today to being an alien in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, law enforcement officers found Ruvalcaba, an illegal alien who had previously been removed from the United States, in a vehicle in the vicinity of a marijuana cultivation site in the Sequoia National Forest after suspects fled from the site when it was raided. Ruvalcaba flashed his headlights on and off into the woods as a signal to the fleeing suspects. He was in possession of a loaded handgun that he had bought on the street for $600.
This case is the product of an investigation by the U.S. Forest Service and the Fresno County Sheriff’s Office. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
Ruvalcaba is scheduled to be sentenced by U.S. District Judge Lawrence J. O’Neill on Sept. 30. Ruvalcaba faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The case was part of Operation Forest Watch, an enforcement effort targeting marijuana cultivation on public land and the damage they cause.
Debt Collector Sentenced to 6 Years in Prison for FraudRead the Press Release
SACRAMENTO, Calif. — Charles V. Stanley Jr., 65, of Agua Dulce, was sentenced today by U.S. District Judge John A. Mendez to six years in prison for conspiring to commit bank fraud and wire fraud, U.S. Attorney McGregor W. Scott announced.
According to court documents, Stanley was the owner and operator of Creditor Specialty Service Inc. (CSS), a debt collection company that operated in California, Oregon, and Nevada. Various companies contracted with CSS to collect debts, including credit unions based in Folsom, Sacramento, and Bakersfield. At Stanley’s direction, CSS employees collected money from debtors but underreported to creditors the amounts CSS actually collected. During the scheme, Stanley caused CSS to file lawsuits or settle with debtors without client authorization. After one credit union terminated its contract with Stanley, he continued to demand and collect money from its debtors, and persisted in this fraudulent conduct even after a court ordered Stanley to cease collecting from the credit union’s debtors.
Evidence was presented at sentencing that Stanley’s business maintained three sets of books and that Stanley used about $839,608 of the collected funds for his own personal spending. He also used funds to pay other clients to whom CSS owed money and to cover CSS’s operating costs. Stanley’s conspiracies and schemes caused clients and debtors to lose over $4 million.
This case was the product of an investigation by the FBI and the IRS Criminal Investigation. Assistant U.S. Attorney Matthew Segal prosecuted the case.
Wasco State Prison Correctional Officer and a Minnesota Resident Arrested for Conspiring to Traffic Cocaine and MethamphetamineRead the Press Release
BAKERSFIELD, Calif. — Leonard Velazquez-Martinez, 50, of Minnesota, and Joseph Andrade, 38, of Bakersfield, were arrested Monday for conspiring to possess with intent to distribute cocaine and methamphetamine, U.S. Attorney McGregor W. Scott announced.
At the time of his arrest, Andrade was employed as a Correctional Officer at Wasco State Prison in Wasco, California.
According to court documents, in June 2019, in Kern County, the defendants conspired to purchase approximately 40 pounds of methamphetamine and two kilograms of cocaine from an individual who defendants believed was a narcotics supplier, but who was actually an undercover law enforcement officer. On June 24, 2019, the defendants arrived at a location in Kern County to purchase the methamphetamine and cocaine from the undercover officer. Andrade was driving a vehicle registered to him, and Velazquez occupied the front passenger seat. Velazquez directed the undercover officer’s attention to a grocery bag containing money, which was on the passenger-side floorboard of the vehicle. The defendants were arrested shortly thereafter.
This case is the product of an investigation by the Drug Enforcement Administration and the Kern County Sheriff’s Office. Assistant U.S. Attorney Angela Scott is prosecuting the case.
If convicted, defendants face a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Stockton Man Sentenced to over 6 Years in Prison for Unemployment Benefits Fraud and Identity TheftRead the Press Release
SACRAMENTO, Calif. — John Michael Herron II, 38, of Stockton, was sentenced today by U.S. District Judge John A. Mendez to six years and three months in prison for conspiracy to commit mail fraud and identity theft, U.S. Attorney McGregor W. Scott announced.
According to court documents, from at least December 2014 through January 2018, Herron participated in a scheme to defraud the State of California Employment Development Department (EDD) by filing fraudulent claims for unemployment insurance benefits. In furtherance of this scheme, Herron and his co-defendant, Robert Maher, formerly of Stockton, created fictitious companies and fictitious employees (by using the real identities of persons with and without their knowledge), and filed claims with EDD, falsely stating that the employees had been laid off or fired. The unemployment benefits were deposited onto debit cards that were mailed to addresses controlled by Herron, Maher, or their associates. ATM cameras captured Herron withdrawing unemployment benefit funds using a debit card registered to an identity theft victim. Herron was connected to approximately $578,185 in fraudulent claims to EDD, of which approximately $485,685 was paid out by EDD.
“John Michael Herron II conspired with his co-defendant to defraud EDD by filing for unemployment insurance benefits in the names of identity theft victims 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 Abel Salinas, Special Agent-in-Charge, Los Angeles Region, U.S. Department of Labor Office of Inspector General.
“Today’s sentencing sends a clear message that fraud will not be tolerated,” said EDD Director Patrick W. Henning. “EDD proudly works alongside our law enforcement partners to safeguard these vital public benefits and pursue aggressive action against fraud whenever possible.”
This case is the product of an investigation by the U.S. Department of Labor Office of Inspector General, the Federal Bureau of Investigation, and the California Employment Development Department’s Investigation Division. Assistant U.S. Attorney Amy Schuller Hitchcock is prosecuting the case.
The charges against Maher are pending. The charges are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
President of Modesto Hells Angels Chapter Among Four Defendants Charged in Drug ConspiracyRead the Press Release
FRESNO, Calif. — A criminal complaint was unsealed today against four individuals, including the president of the Modesto Hells Angels Motorcycle Club, charging them with conspiracy to distribute and possess with intent to distribute methamphetamine, U.S. Attorney McGregor W. Scott announced.
Charged in the criminal complaint are Modesto residents Randy Picchi, 61, president of the club; his wife Tina Picchi, 51; Michael Mize, 61; and Michael Pack, 32, a prospect with the club. Randy Picchi, Tina Picci, and Mize were arrested today and are in custody. They will appear in federal court on Wednesday in Fresno.
According to court documents, Randy Picchi led a drug conspiracy and directed Tina Picchi to regularly deliver drugs to Mize and other individuals in Ceres. Randy Picchi also enlisted Pack to help obtain methamphetamine on at least one occasion. Pack was stopped by law enforcement and found to have 499 grams of methamphetamine in his possession.
On another occasion, Randy Picchi directed Tina Picchi to drive from Modesto to Redding to deliver methamphetamine to a customer. On the way, Tina Picchi was stopped by law enforcement and found with approximately 4 ounces of methamphetamine, which she had wrapped in a plastic glove and hidden in a cup of soda.
As part of the investigation, officers executed search warrants on Tuesday in seven locations in Stanislaus County, including the clubhouse of the Hells Angels Motorcycle Club in Modesto.
This case is the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the IRS Criminal Investigation, the Central Valley Gang Impact Task Force, the Modesto Police Department, the Turlock Police Department, the Stanislaus County District Attorney’s Office, the California Department of Corrections and Rehabilitation, and the California Highway Patrol. Assistant U.S. Attorneys Ross Pearson and Laurel Montoya are prosecuting the case.
If convicted, each defendant faces a maximum statutory penalty of life in prison, a mandatory minimum 10 years in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
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.
Shasta County Couple Indicted for Forced Labor of Guatemalan Woman and Her Minor DaughtersRead the Press Release
SACRAMENTO, Calif. – An indictment was unsealed today following the arrests of Nery Martinez, 50, and Maura Martinez, 50, of Shasta Lake. The indictment charges the defendants with conspiracy, forced labor, and alien harboring for financial gain. Assistant Attorney General Eric Dreiband of the Justice Department’s Civil Rights Division, U.S. Attorney McGregor W. Scott of the Eastern District of California, and Special Agent in Charge Sean Ragan of the FBI’s Sacramento Division made the announcement.
According to the allegations in the indictment, between September 2016 and February 2018, the defendants conspired to bring a Guatemalan woman and her two minor daughters to the United States using temporary visitor visas, harbored them after their visas expired, and forced them to work long hours at a restaurant and cleaning service for minimal to no pay. The indictment further alleges that the defendants imposed a debt on the victims to prevent them from returning to Guatemala; subjected them to physical, psychological, and verbal abuse; threatened them with arrest; and separated the Guatemala woman from her daughters, all to compel their labor.
An indictment is merely an allegation, and the defendants are presumed innocent until proven guilty. If convicted of forced labor and conspiracy to commit forced labor, the defendants face sentences up to 20 years in prison, as well as mandatory restitution. If convicted of alien harbor for financial gain and conspiracy to commit alien harboring, the defendants face up to 10 years in prison.
The case is the product of an investigation by the FBI’s Sacramento Division. It is being prosecuted by Trial Attorney Avner Shapiro for the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Amy Schuller Hitchcock for the Eastern District of California.
Sacramento was one of six districts designated through a competitive, nationwide selection process as a Phase II Anti-Trafficking Coordination Team, through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.
Former Sacramento Kings Executive Sentenced to 7 Years in Prison for Multimillion Dollar Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Jeffrey R. David, 44, was sentenced today by U.S. District Judge William B. Shubb to seven years in prison for wire fraud and aggravated identity theft, U.S. Attorney McGregor W. Scott announced.
U.S. Attorney Scott stated: “David used his high-ranking position with the Sacramento Kings to deceive businesses across the country into sending him millions of dollars. The brazen scheme involved forgeries, stolen corporate executive identities, money laundering, and even instructing a former colleague to destroy evidence. Thanks to the fast actions of the Kings organization, the FBI, and attorneys in this office, the fraud did not result in the permanent deprivation of the $13.4 million that David intended to steal from his victims, as that money was recovered through timely government seizures and forfeitures. Today’s sentence should deter others from committing substantial frauds such as this one.”
“Mr. David violated the trust of his employer and clients, siphoning millions from agreements to fund purchases he could not otherwise afford. Asset forfeiture of real estate purchased with the misappropriated funds was able to restore the losses the organization suffered as a result of Mr. David’s crimes but trust is much more difficult to repair,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “This case exemplifies the FBI’s commitment to investigating large-scale financial fraud to ensure the integrity of financial transactions and ensure that those who commit greed-fueled financial crime face justice.”
According to court documents, David served as the Chief Revenue Officer for the Sacramento Kings, a professional sports franchise. As part of his duties, he negotiated sponsorship and other marketing agreements with companies in California and elsewhere. From October 2012 through July 2016, David used this position to defraud these companies by representing to them that payments they made were going to the Kings, when in fact the payments were going to bank accounts under his sole control, held in the name of Sacramento Sports Partners LLC. The Kings did not know about these payments or this LLC at the time the payments were solicited and made. In total, David stole approximately $13.4 million from five companies in California and elsewhere.
In particular, David took advantage of the King’s opening of a new stadium by amending, without the franchise’s knowledge, two major sponsorship agreements from the Golden 1 Credit Union and Kaiser Permanente, a nonprofit health care plan, so that $9 million and $4.4 million wires from these entities went to accounts controlled by David, rather than the Kings. In order to accomplish this fraud, David forged the signatures of various individuals, including the then-president of the Kings, the president and chief executive officer of the Golden 1, and an executive at Kaiser Permanente.
David used the fraud proceeds to purchase and remodel real estate in Hermosa Beach and Manhattan Beach, in Southern California. He also spent the fraud proceeds on various personal expenses, including checks to family members, a private jet membership, and substantial credit card bills. The United States moved to forfeit and seize these properties and other assets held by David, and the professional sports franchise has received over $13.2 million in restitution to date.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Michael D. Anderson, Matthew M. Yelovich, and Kevin C. Khasigian are prosecuting the case.
Former Professional Trustee of Sacramento-based Trust Pleads Guilty to Fraud and Money LaunderingRead the Press Release
SACRAMENTO, Calif. — Loretta Darlene Stewart-Cabrera, also known as Loretta Dexter, 54, of Sacramento, pleaded guilty today to wire fraud and money laundering, U.S. Attorney McGregor W. Scott announced.
According to court documents, Stewart-Cabrera was a professional fiduciary who served as the trustee of a trust that owned a Sacramento property. After the trust grantor died in December 2012, Stewart-Cabrera executed a scheme to obtain and spend the trust assets. Stewart-Cabrera did this by selling the trust’s property, only distributing to the trust beneficiaries approximately $30,000 of the more than $300,000 she received from the sale of the property, and spending the remaining money without the permission or knowledge of the trust beneficiaries. She used a portion of the trust funds to gamble and dine in Las Vegas casinos, pay family members, and purchase merchandise.
This case is the product of an investigation by the Federal Bureau of Investigation and IRS Criminal Investigation. Assistant U.S. Attorney Brian A. Fogerty is prosecuting the case.
Stewart-Cabrera is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on September 9. Stewart-Cabrera faces a maximum statutory penalty of 20 years in prison and fine of $250,000 for the wire fraud count; for the money laundering count, she faces a maximum statutory penalty of 10 years in prison, and a fine of $250,000 or twice the value of the property involved in the money laundering transactions. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
California Husband and Wife Indicted on Charges Related to Forced Labor of Guatemalan Woman and Her Minor DaughtersRead the Press Release
An indictment was unsealed today in federal court in the Eastern District of California following the arrests of Nery A. Martinez Vasquez, 50, and Maura N. Martinez, 50, of Shasta Lake, California. The indictment charges the defendants with conspiracy, forced labor, and alien harboring for financial gain. Assistant Attorney General Eric Dreiband of the Justice Department’s Civil Rights Division, U.S. Attorney McGregor W. Scott of the Eastern District of California, and Special Agent in Charge Sean Ragan of the FBI’s Sacramento Division made the announcement.
According to the allegations set forth in the indictment, between September 2016 and February 2018, the defendants conspired to bring a Guatemalan woman and her two minor daughters to the United States using temporary visitor visas, harbored them after their visas expired, and forced them to work long hours at a restaurant and cleaning service for minimal to no pay. The indictment further alleges that the defendants imposed a debt on the victims to prevent them from returning to Guatemala, subjected them to physical, psychological, and verbal abuse, threatened them with arrest, and separated the Guatemalan woman from her daughters, all to compel their labor.
An indictment is merely an allegation, and the defendants are presumed innocent until proven guilty. If convicted of forced labor and conspiracy to commit forced labor, the defendants face sentences up to 20 years in prison, as well as mandatory restitution. If convicted of alien harboring for financial gain and conspiracy to commit alien harboring, the defendants face up to ten years in prison.
The case is being investigated by the FBI’s Sacramento Division. It is being prosecuted by Trial Attorney Avner Shapiro for the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Amy Schuller Hitchcock for the Eastern District of California.
Sacramento was one of six districts designated through a competitive, nationwide selection process as a Phase II Anti-Trafficking Coordination Team, through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.
Money Laundering Charges Added in International Marijuana Conspiracy to Grow Marijuana in Houses in Sacramento and Placer CountiesRead the Press Release
SACRAMENTO, Calif. — A grand jury returned a superseding indictment on Thursday that added money laundering charges to six defendants first charged in 2017 in a scheme to use money from China to buy houses to grow marijuana, U.S. Attorney McGregor W. Scott announced.
Charged with money laundering are Xiu Ping Li, 42 of New Jersey, Xiu Ru Li, 46, of Sacramento, Dao Zhong Wei, 50, of Sacramento, Shui Ping Zheng, 56, of Michigan, and Texas residents Kong Liang Li, 53, and You An Li, 53.
According to the charging documents, the defendants conspired with each other and others to wire transfer approximately $870,000 from China to buy six houses for growing marijuana or to pay off the lenders in order to continue growing marijuana in the house.
This case is the product of an investigation by IRS Criminal Investigation, Federal Bureau of Investigation, the Drug Enforcement Administration, and Homeland Security Investigations. Assistant U.S. Attorney Roger Yang is prosecuting the case.
If convicted, the defendants face a maximum statutory penalty on the money laundering charges of 20 years in prison, a fine of up to $500,000 or twice the value of the funds involved, or both. 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 Man Sentenced to over 21 Years in Prison for Methamphetamine Trafficking, Possession of A Firearm, and Interstate Transportation for ProstitutionRead the Press Release
FRESNO, Calif. — On June 17, 2019, Carlos Montano, aka “Loco,” 29, of Fresno, was sentenced by U.S. District Judge Lawrence J. O'Neill to 21 years and 10 months in prison for conspiracy to distribute methamphetamine, being a felon in possession of a firearm, and interstate transportation for prostitution, United States Attorney McGregor W. Scott announced.
According to court documents, Montano was an influential member of the Fresno Bulldogs criminal street gang. Between April 2017 and July 2017, Montano distributed multiple pounds of crystal methamphetamine in the Fresno area, often using others in his distribution activities. During the investigation, Montano discussed the possession and use of weapons, and on two separate occasions, he fled from officers who were attempting to apprehend him. Montano engaged in commercial sex trafficking, exploiting women in multiple cities, including Los Angeles, San Francisco, Las Vegas and New York.
This case is the product of an investigation by Homeland Security Investigations, Federal Bureau of Investigation, Drug Enforcement Administration, Fresno Police Department, Multi Agency Gang Enforcement Consortium, Fresno County Sheriff’s Office, and Fresno County District Attorney’s Office. Assistant U.S. Attorneys Kimberly A. Sanchez, Jeffrey A. Spivak, and Thomas Newman prosecuted the case.
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.
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.
Drug Conspiracy Convictions of Former Fresno Deputy Police Chief Affirmed on AppealRead the Press Release
FRESNO, Calif. — The Ninth Circuit Court of Appeals affirmed the convictions of former Fresno deputy police chief Keith Foster, 55, for criminal conspiracies involving heroin and marijuana, U.S. Attorney McGregor W. Scott announced today.
On May 23, 2017, a federal jury in Fresno found Foster guilty of conspiracy to distribute and possess with intent to distribute heroin and conspiracy to distribute and possess with intent to distribute marijuana. On November 13, 2017, U.S. District Judge Anthony W. Ishii sentenced Foster to four years in prison. Foster then filed an appeal, challenging his two criminal convictions. The Ninth Circuit Court of Appeals rejected Foster’s claims and upheld his convictions.
The court found that Foster’s “phone calls and text messages with co-conspirators … sufficiently demonstrated Foster’s role in the conspiracy to distribute heroin.” Foster discussed heroin types, prices and other details with a supplier. The court also found that Foster’s calls with his nephew “sufficiently established his role in the conspiracy to distribute marijuana.” When Foster’s nephew was arrested with 6 pounds of marijuana in the trunk of his car, Foster said that he could have provided “cover” for him if he had been asked, and he also said that he would see what his “narc guys” could do for the nephew.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation. Assistant U.S. Attorneys Melanie L. Alsworth and Henry Z. Carbajal III prosecuted the case.
Mexican National Indicted for Drug Trafficking and Firearm PossessionRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment today against Arturo Zavaleta, 39, of Mexico, charging him with trafficking in heroin, methamphetamine, and possessing a firearm in furtherance of a drug crime, United States Attorney McGregor Scott announced.
According to court documents, on June 3, 2019, DEA agents served a search warrant at Zavaleta’s residence in Turlock, California. During a search of the master bedroom, agents discovered heroin, methamphetamine, and three firearms. The home was outfitted with a surveillance camera. In the backyard, agents found approximately 200 marijuana plants and approximately 300 apparent opium poppy bulbs.
This case was the product of an investigation by the Sacramento Drug Enforcement Administration and California Department of Corrections and Rehabilitation. Assistant United States Attorneys Jason Hitt, Amanda Beck, Ross Pearson, and David Spencer are prosecuting the case.
If convicted, Zavaleta faces a maximum statutory penalty of up to life 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 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.
Illegal Alien Charged with Felon in Possession of A Firearm and Alien in Possession of A FirearmRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Jose Toscano-Ruelas, 43, a foreign national, charging him with being a felon in possession of a firearm, being an illegal alien in possession of a firearm, and being a deported alien found in the United States, U.S. Attorney McGregor W. Scott announced.
According to court documents, Toscano-Ruelas received fifteen drug trafficking-related convictions in Tulare County, California in July 2003. He was subsequently deported in December 2005 and never obtained permission to return to the United States. In May 2019, Toscano-Ruelas was found in Tulare County in possession of a semi-automatic pistol.
This case was the product of an investigation by Immigration and Customs Enforcement (ICE) and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant United States Attorney Laura D. Withers is prosecuting the case.
Toscano-Ruelas is currently in custody.
If convicted, Toscano-Ruelas faces a maximum statutory penalty of 20 years in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Illegal Alien Charged with Failure to Register or Update His Registration as Sex OffenderRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count superseding indictment today against Marco Antonio Lopez-Rubio, 35, a foreign national, charging him with failing to register or update his registration as a sex offender and being a deported alien found in the United States, U.S. Attorney McGregor W. Scott announced.
According to court documents, from May 2019 until June 2019, Lopez-Rubio was present in the State of California but failed to register as a sex offender as required by law. In 2008, Lopez-Rubio was convicted in California for forcible rape, at which time he acquired his registration requirement. He was subsequently deported from the United States and never obtained permission to return to the United States.
This case was the product of an investigation by the U.S. Marshals Service and Immigration and Customs Enforcement, Enforcement and Removal Operations. Assistant United States Attorney Laura D. Withers is prosecuting the case.
If convicted, Lopez-Rubio 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.