Eastern District of California
Press releases recorded for this federal judicial district.
Fresno Baker Sentenced to 3 Years in Prison for SNAP FraudRead the Press Release
Jorge Luis Rivera, 56, of Fresno, was sentenced today to three years in prison and ordered to pay $3,499,999 in restitution for conspiracy to commit wire fraud and wire fraud offenses, U.S. Attorney Eric Grant announced.
According to court documents, beginning in 2011 and continuing through August 2018, Rivera, the then-owner of El Ranchito Bakery in Fresno, exchanged Supplemental Nutrition Assistance Program (SNAP) benefits for cash and also accepted SNAP benefits for unauthorized items at the request of customers. Rivera, in exchanging SNAP benefits for cash, did so at significant discount and thereby pocketed millions in ill-gotten profits.
Rivera’s sentence was enhanced as he directed the participation of two lower-level employees of the bakery who engaged in the fraud. The two employees pleaded guilty to conspiracy to commit wire fraud and were sentenced last year. Rivera pleaded guilty on Sept. 29, 2025.
The U.S. Department of Agriculture Office of Inspector General (USDA-OIG) and the Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorneys Chan Hee Chu and Joseph Barton prosecuted the case.
Bakersfield Man Pleads Guilty to Wire Fraud and Aggravated Identity TheftRead the Press Release
FRESNO, Calif. — Kyle Matthew Lisman, 29, of Bakersfield, pleaded guilty today to wire fraud, aggravated identity theft, and possessing stolen mail, U.S. Attorney Eric Grant announced.
According to court documents, between January and July 2023, Lisman devised a scheme to steal victim identities to defraud them. In July 2023, he used the name, social security number, and other personal information of another person to fraudulently buy a car at a Bakersfield car dealership. Under the victim’s identity, Lisman purportedly paid $40,000 to purchase the car on the dealership’s website before traveling to the dealership and picking it up. To do this, he presented the dealership with a fake driver’s license created from the victim’s actual driver’s license information but with Lisman’s picture.
Lisman also caused other peoples’ mail to be forwarded to his home by filing and submitting fraudulent change of address forms for the mail recipients. In September 2023, Lisman possessed several credit cards, checks, and debit cards in other peoples’ names. Between May and July 2023, he opened credit and debit cards in other peoples’ names and used those cards to withdraw thousands of dollars’ worth of cash and purchases.
The U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorney Cody S. Chapple is prosecuting the case.
Lisman is scheduled to be sentenced on April 20, 2026, by U.S. District Judge Jennifer L. Thurston. Lisman faces a statutorily required sentence of two years in prison, a maximum sentence 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.
Rio Linda Man Sentenced to 14 Years in Prison for Possessing Explicit Images of ChildrenRead the Press Release
Kenneth Wayne Lorenz, 82, of Rio Linda, was sentenced Thursday by U.S. District Judge Daniel J. Calabretta to 14 years in prison for possessing visual depictions of minors engaging in sexually explicit conduct, U.S. Attorney Eric Grant announced.
According to court documents, Lorenz came to the attention of law enforcement during an undercover operation in July 2024. Kevin Gipson, 60, of Oroville, a friend of Lorenz, responded to an undercover agent who had assumed the identity of a man who was interested in finding people to have sex with his 8‑year-old daughter. Gipson told the undercover officer that Lorenz might also be interested in having sex with the minor. Later in the operation, the undercover officer spoke with Lorenz by phone, and Lorenz confirmed that he would cancel a poker game so that the undercover officer could bring his daughter to Lorenz’s residence. A search warrant was later executed at Lorenz’s residence, and two thumb drives and a laptop computer were seized. Forensic examination of the devices revealed that they contained child sexual abuse material, including videos involving infants and bestiality. Lorenz admitted to law enforcement that he possessed the material on the two thumb drives and admitted that he viewed the material with his friends, including Gipson.
Gipson has pleaded guilty in a separate case in this district and awaits sentencing, case no., 2:24-CR-272-TLN. Lorenz pleaded guilty on Aug. 8, 2025.
The Federal Bureau of Investigation, the Sacramento Sheriff’s Office, and the Sacramento Valley Hi-Tech Crimes Task Force/Internet Crimes Against Children Task Force conducted the investigation. Assistant U.S. Attorney Jessica Delaney 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.
Mexican National Residing in Sacramento Indicted for Drug Trafficking and Firearms OffensesRead the Press Release
A federal grand jury returned a three-count indictment Thursday against Roberto Hernandez, 35, a Mexican national unlawfully in the United States and residing in Sacramento, charging him with possession with intent to distribute fentanyl, being a felon in possession of a firearm, and possession of a firearm in furtherance of drug trafficking, U.S. Attorney Eric Grant announced.
According to court documents, on Sept. 2, 2025, Hernandez was found to be in possession of at least 400 grams of fentanyl and two loaded Glock handguns. Hernandez is prohibited from possessing firearms because of prior felony convictions in California including reckless evasion of a peace officer causing injury, driving under the influence causing injury, being a felon in possession of a firearm, and possession of a controlled substance.
Additionally, in May 2021, Hernandez was deported from the United States, and on Nov. 6, 2025, was charged in a separate indictment for being a deported alien found in the United States.
The Sacramento County Sheriff’s Office conducted the investigation with assistance from the Drug Enforcement Administration. Special Assistant U.S. Attorney Brad Ng is prosecuting the case. Special Assistant U.S. Attorney Nchekube Onyima is prosecuting the illegal reentry case.
If convicted in the drug trafficking and firearms case, Hernandez faces a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; in each case, the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. HSTF Sacramento is composed of agents and officers from Homeland Security Investigations, the Federal Bureau of Investigation, the Drug Enforcement Administration, the Northern California High Intensity Drug Trafficking Area, the Central Valley High Intensity Drug Trafficking Area, and the Sacramento County Sheriff’s Office with the prosecution being led by the United States Attorney’s Office for the Eastern District of California.
This case is also part of the Special Assistant U.S. Attorney program, a partnership between the U.S. Attorney’s Office and local District Attorney’s Offices. Special Assistant U.S. Attorneys remain employed by local District Attorney’s Offices, but they work on federal investigations and can prosecute cases in both state and federal court. This partnership allows the U.S. States Attorney’s Office and local District Attorney’s Offices to partner to fight transnational organized crime and violent crime that impacts the region. The U.S. Attorney’s Office currently has Special Assistant U.S. Attorneys from the District Attorney’s Offices of Yolo, Placer, Fresno, and Sacramento Counties.
Lincoln Man Charged with Distribution of Child Sexual Abuse MaterialRead the Press Release
A federal grand jury returned an indictment Thursday against Carlos Andrew Dominguez, 25, of Lincoln, charging him with distribution of child sexual abuse material, U.S. Attorney Eric Grant announced.
According to court documents, between March 6, 2025, and Jan. 9, 2026, Dominguez used peer-to-peer messaging apps to distribute hundreds of depictions of children engaging in sexually explicit conduct.
The Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorney Zachary Malinski is prosecuting the case.
Dominguez is currently in federal custody following his arrest on a criminal complaint. If convicted, Dominguez faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Vacaville Man Sentenced to 17.5 Years in Prison for Sexual Exploitation of a MinorRead the Press Release
Michael Rubino, 38, of Vacaville, was sentenced today by Chief U.S. District Judge Troy L. Nunley to 17 years and six months in prison for sexually exploiting an underage girl, U.S. Attorney Eric Grant announced.
According to court documents, Rubino convinced a 17-year-old girl to live with him at his parents’ Vacaville residence in late 2024. During this time, Rubino engaged in aggressive sexual conduct with his minor victim and created approximately 15 videos of himself assaulting her. At least one recording Rubino made depicted himself taking a hit from a methamphetamine pipe and then blowing the smoke toward his victim.
Law enforcement officers recovered the minor victim after Rubino deposited her at a local hospital, where she underwent immediate surgery for infected drug injection sites on her body. Officers arrested Rubino after executing a search warrant for his room and seized evidence that on more than one occasion while she was under his control, Rubino provided the minor victim to his friends for sex in exchange for money and narcotics. On Aug. 21, 2025, Rubino pleaded guilty.
Rubino’s criminal history includes at least one prior conviction for domestic violence and assault. He is subject to four restraining orders entered for the protection of various women and girls in Solano County.
The Federal Bureau of Investigation conducted the investigation with assistance from the Vacaville Police Department. Assistant U.S. Attorney Sam Stefanki 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.
Former Madera County Welfare Benefits Employee Pleads Guilty to Stealing Identities and Benefits in Years-Long SchemeRead the Press Release
Former Madera County benefits eligibility worker Leticia Mariscal, 55, of Madera, pleaded guilty today to aggravated identity theft for stealing identities and fraudulently obtaining CalFresh benefits in their names, U.S. Attorney Eric Grant announced today.
CalFresh, formerly known as a “food stamp” program, provides qualifying California residents with monetary benefits to help them purchase food. The benefits are funded by the federal government, while the administrative costs for running the program are shared among federal, state, and local governments.
According to court records, between July 2022 and June 2025, Mariscal improperly used county databases to which she had access through her job to obtain identifying information for individuals who either were not United States citizens, were elderly, or were deceased. She then secretly approved these individuals to receive or continue receiving CalFresh benefits, printed EBT cards in their names with the benefits deposited thereon and spent the money on herself and her family members.
For example, for the individuals who were not United States citizens, Mariscal would obtain their identifying information, contact them, and falsely inform them that they had to provide the county with certain immigration records to continue receiving benefits. She took these steps so that these individuals would fear suffering immigration consequences if they tried to continue receiving benefits and would stop using them. She would then take the benefits for herself.
Altogether, Mariscal stole more than $40,000 from more than 15 people.
The Federal Bureau of Investigation conducted the investigation with assistance from the Madera County District Attorney’s Office. Assistant U.S. Attorneys Joseph Barton and Arelis Clemente are prosecuting the case.
Mariscal is scheduled to be sentenced on April 13, 2026, by U.S. District Judge Jennifer L. Thurston. Mariscal faces a statutorily required sentence of two years in prison and a fine of up to $250,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the federal Sentencing Guidelines, which take into account a number of variables.
Sacramento Drug Dealer Sentenced to 15 Years in PrisonRead the Press Release
Michael William Hutchison III, 24, of Sacramento, was sentenced today by U.S. District Judge Dena M. Coggins to 15 years in prison for conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine, U.S. Attorney Eric Grant announced.
According to court documents, between Jan. 26, 2023, and May 10, 2024, Hutchison was a leader and organizer of violent drug traffickers who distributed massive amounts of lethal drugs in the Sacramento region. Hutchison’s specific role involved orchestrating the transport of large drug loads while he himself was active in selling drugs in Sacramento.
During the investigation, undercover operatives conducted nine controlled buys directly from Hutchison and seized hundreds of pounds of methamphetamine from the drug trafficking organization. Hutchison’s role in these serious offenses was aggravated by his status as an influential figure in a violent Sacramento street gang. Hutchison pleaded guilty on Aug. 13, 2025.
The Drug Enforcement Administration, the Sacramento Police Department, the Yuba County Sheriff’s Department, and the California Highway Patrol conducted the investigation. Assistant U.S. Attorney Jason Hitt prosecuted the case.
This case is part of Operation Take Back America a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime.
Sacramento Man Pleads Guilty to Defrauding an Investor of $777,470Read the Press Release
Jaswant Singh Gill, 57, of Sacramento, pleaded guilty today to one count of wire fraud for orchestrating an investment fraud scheme, U.S. Attorney Eric Grant announced.
According to court documents, between May 2024 and June 2025, Gill was the Chief Executive Officer of Kismet Capital Partners LLC. Using Kismet Capital, Gill executed a scheme to defraud that involved making false representations and promises in exchange for purported investments. Gill falsely represented to investors that Kismet Capital was an investment firm with about 20 employees. He falsely promised that funds invested into Kismet Capital would be used solely for investment purposes, and the investor would receive a specific monthly rate of return. Based on the promises, a victim investor sent approximately $777,470 in the form of cash and wire transfers to be invested into Kismet. The victim obtained these funds from sources including personal loans, loans against an IRA, and a home equity line of credit. Gill also used at least one of the victim’s credit cards to obtain cash advances.
Instead of using the funds for investment purposes, Gill used the stolen funds for his own personal use including, paying for dinners at restaurants, paying a personal driver, and purchases of luxury items. During the time that Gill was stealing the investor’s funds, Gill falsely assured the investor that their investment was growing, when in fact, the investment was not growing.
Also based on court records, Gill committed this scheme to defraud while on federal supervised release that was imposed after Gill’s 2018 conviction for wire fraud in another federal judicial district.
The Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorney Nchekube Onyima is prosecuting the case.
Gill is scheduled to be sentenced on April 2, 2026, before Chief U.S. District Judge Troy L. Nunley. Gill 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.
Rancho Cordova Man Pleads Guilty to Production and Distribution of Child Sexual Abuse MaterialRead the Press Release
Daragh Finbar Hayes, 44, of Rancho Cordova, pleaded guilty on Jan. 9 to three counts of production of child sexual abuse material and one count of distribution of child sexual abuse material, U.S. Attorney Eric Grant announced.
According to court documents, between June 25, 2024, and Sept. 30, 2024, Hayes knowingly used a child to engage in sexually explicit conduct for the purpose of producing visual depictions of that conduct. Hayes kept images of the sex abuse in a “hidden” folder on his personal electronic device and distributed images of the sex abuse to at least one other person over the internet.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Shea J. Kenny is prosecuting the case.
Hayes is in custody and will be sentenced by U.S. District Judge Dena Coggins at a later date. For each of the three counts of production of child sexual abuse material, Hayes faces a mandatory statutory minimum of 15 years in prison, a maximum penalty of 30 years in prison, and a $250,000 fine. For the count of distribution of child sexual abuse material, he faces a mandatory statutory minimum of five years in prison, a maximum 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.
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.
Previously Deported Man Sentenced for Misuse of a Social Security Number and Selling a Fraudulent California Driver’s LicenseRead the Press Release
Javier Aguilera Rosas, 43, of Los Angeles, was sentenced Monday by U.S. District Judge William B. Shubb to 15 months in prison for transfer of a false identity document, misuse of a social security number, and illegal reentry by a previously removed alien, U.S. Attorney Eric Grant announced.
According to court documents, from August 2020 through December 2023, Rosas transferred at least 20 false identification documents to multiple buyers in the Eastern District of California. On multiple occasions, buyers submitted orders to Rosas through text messages asking for fraudulent passports, driver’s licenses, and Social Security cards. After obtaining the fraudulent IDs as specified by the particular buyer, Rosas mailed the false IDs to the buyer. On at least four occasions, he provided IDs containing the true name, birthdate, and Social Security number of identity theft victims.
At least one buyer used the false IDs Rosas provided to sell marijuana out of state, rent Airbnbs, and travel, including passing through Transportation Security Administration checkpoints. Rosas pleaded guilty on Aug. 25, 2025.
This case was the product of an investigation by the Federal Bureau of Investigation. Special Assistant U.S. Attorney Nicole Moody prosecuted the case.
Sutter County Man Sentenced to 15 Years in Prison for Receipt of Child Sexual Abuse MaterialRead the Press Release
SACRAMENTO, Calif. — Thomas Davis, 40, of Yuba City, was sentenced today by U.S. District Judge Dena M. Coggins to 15 years in prison for receipt of child sexual abuse material, U.S. Attorney Eric Grant announced.
According to court documents, between May 2023 and January 2024, Davis used the BitTorrent network to download child pornography. During this period Davis built a collection of more than 400 videos and 200 images containing child sexual abuse material, including some which depicted the sexual abuse of toddlers.
This case was the product of an investigation by the Sacramento County Sheriff’s Department, the Yuba City Police Department, and the California Hi-Tech Crimes Task Force. Assistant United States Attorney Charles Campbell is prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. Learn more at Justice.gov/PSC.
Placer County Doctor Sentenced to 9 Years in Prison for Distribution of Child Sexual Abuse MaterialRead the Press Release
SACRAMENTO, Calif. — Khursheed Haider, 50, of Roseville, was sentenced today by U.S. District Judge Dena M. Coggins to nine years in prison for distribution of child sexual abuse material, U.S. Attorney Eric Grant announced.
“Today’s sentence holds Khursheed Haider accountable for his proliferation of child sexual abuse material, each instance of which retraumatizes the victims shown in such material,” said U.S. Attorney Grant. “My office is committed to investigating and prosecuting individuals who traffic in this abusive material, including those in positions of trust like Haider.”
“Khursheed Haider was known to many as a trusted physician and family man,” said FBI Sacramento Special Agent in Charge Sid Patel. “However, he was a predator behind that facade who actively shared material depicting the horrific sexual abuse of infants and toddlers. The FBI works tirelessly to identify and apprehend individuals who consume and distribute child sexual abuse material to stop the ongoing victimization of our nation’s most vulnerable and innocent victims.”
According to court documents, Haider, a Sacramento Area pulmonologist, used an application called Wire to post, distribute, and request videos and images of prepubescent boys and girls being sexually abused. After a search warrant was executed, agents discovered more than 600 images and videos of prepubescent child sexual abuse material on Haider’s electronic devices. Haider pleaded guilty on June 18, 2025.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Jason Hitt 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.
Tracy Man Sentenced to over 7 Years in Prison for his Role in Murder-for-Hire PlotRead the Press Release
SACRAMENTO, Calif. — Shaminderjit Singh Sandhu, 52, of Tracy, was sentenced today to seven and a half years in prison for conspiring to use interstate commerce facilities in the commission of murder-for-hire, U.S. Attorney Eric Grant announced.
According to court documents, Sandhu conspired with Jagninder Singh Boparai, 49, of Manteca; and Ramesh Kumar Birla Jr., 47, of Dublin, to murder a victim identified as Victim 2. In February 2023, Boparai met with a person he believed to be a hitman at a Starbucks in Manteca. Unbeknownst to Boparai and his co-defendants, throughout their interactions, the hitman was in fact a confidential informant working for the FBI. Boparai told the supposed hitman that the first job involved the assault of another man with whom the defendants were feuding. Once the hitman proved his trustworthiness, he would be given another job.
The following day, Boparai met the confidential informant again and offered to pay $6,000 for the assault. In March 2023, in the presence of Birla and another individual, Boparai met with the confidential informant, and Boparai gave the confidential informant $1,000 as a down payment for the assault. After more time had passed, the confidential informant showed Boparai a staged photo of the supposed assault victim lying on the ground covered in bruises, dirt, and blood to show the assault had occurred. Boparai said he liked the photo and told the confidential informant that he had two other “jobs,” one of which involved robbing a business, and the other involved making a person “disappear.”
Then, in March 2023, Boparai met with the confidential informant to pay the confidential informant $10,000 as a down payment for the murder for hire job. Sandhu provided the second victim’s address, and Boparai instructed the confidential informant that the victim must disappear without any evidence remaining. On March 24, 2023, Sandhu and Birla met with the confidential informant in a parking lot in Manteca. Sandhu and Birla claimed that Boparai was out of town, but Boparai was observed remaining in a car in the same parking lot. Sandhu and Birla instructed the confidential informant to kill the victim and take his remains to Mexico in a suitcase. All three defendants were arrested on March 31, 2023, and are currently in federal custody.
This case is the product of an investigation by the Federal Bureau of Investigation, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the California Department of Corrections and Rehabilitation, the California Highway Patrol, the Ceres Police Department, the Dublin Police Department, Homeland Security Investigations, the Lathrop Police Department, the Modesto Police Department, the San Joaquin County Probation Office, the San Joaquin County Sheriff’s Office, the Stanislaus County District Attorney’s Bureau of Investigation, the Stanislaus County Sheriff’s Office, the Stockton Police Department, the Tracy Police Department, the Turlock Police Department, and the U.S. Attorney’s Office for the Northern District of California. Assistant U.S. Attorneys Adrian T. Kinsella and Kevin Khasigian are prosecuting the case.
Sandhu pleaded guilty on July 31, 2025. Boparai pleaded guilty to the same charge on January 23, 2025. On August 14, 2025, U.S. District Judge Daniel J. Calabretta sentenced him to nine years in prison.
Birla is scheduled for a further status conference on February 12, 2026. If convicted, he 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 charges against Birla are only allegations; he is presumed innocent until and unless he is proven guilty beyond a reasonable doubt.
Stockton Firearms Trafficker Who Sold Guns, Including Two Machineguns, Sentenced to 77 Months in PrisonRead the Press Release
SACRAMENTO, Calif. — Rayshawn Williams, 20, of Stockton was sentenced today by Senior U.S. District Judge John A. Mendez to six years and five months in prison for illegally dealing in firearms and possessing machine guns, United States Attorney Eric Grant announced.
According to court documents, between May and July 2024, Williams sold 10 firearms to a confidential informant in illegal deals conducted on the streets in exchange for cash. Of the ten firearms sold to the informant, two of them were Glock pistols with machinegun conversion devices, popularly known as “switches,” that allow the Glock pistols to fire in a fully-automatic mode.
Williams pleaded guilty on Aug. 26, 2025. While sentencing Williams, Judge Mendez observed that Williams had boasted about his involvement with a burglary of a jewelry store in Oakland, that he was affiliated with a violent street gang, and that, despite his young age, Williams had already amassed a substantial criminal history.
This case was the product of an investigation by the Stockton Field Office for the Bureau of Alcohol Tobacco, Firearms, and Explosives, and the Stockton Police Department Crime Gun Intelligence Center. Assistant U.S. Attorneys Jason Hitt and Zulkar Khan are prosecuting the case.
This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime.
Butte County Man Sentenced to 21 Years in Prison for Sexual Exploitation of a ChildRead the Press Release
SACRAMENTO, Calif. — Javier Robert Barraza, 44, of Oroville, was sentenced today by U.S. District Judge Dena Coggins to 21 years in prison for sexual exploitation of a child, U.S. Attorney Eric Grant announced.
According to court documents, Barraza paid multiple women to sexually abuse young boys during video calls with him for his own sexual gratification. Barraza recorded these video calls, adding them to his collection of more than 1,000 videos and images of child sexual abuse material that he maintained on his phones and tablet. Barraza also shared his child sexual abuse material on internet sharing platforms and in text messages to individuals. Barraza made multiple attempts to pay for the services of “a girl around age 10” to perform oral sex on him.
This case was the product of an investigation by Homeland Security Investigations, with assistance from the Redding Police Department, the Butte County Sheriff’s Office, and the U.S. Forest Service. Assistant U.S. Attorney Veronica M.A. Alegría 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.
Indian National Indicted for Threatening to Kill a Victim Living in CanadaRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment today against Jasmeet Singh, 30, an Indian national who had been living in Fresno, charging him with transmitting threats to injure another person, United States Attorney Eric Grant announced.
According to court documents, on May 27, 2024, Singh sent multiple threats to a victim living in Canada, threatening to kill the victim because of that victim’s prior cooperation with Indian law enforcement. Singh sent the victim a picture of the victim’s car in front of the victim’s residence, told the victim he knew the victim’s daily habits, including the type of coffee the victim drank, and that the victim could not run because Singh and his associates would kill him/her.
This case was the product of an investigation by the Federal Bureau of Investigation and the Langley Detachment of the Royal Canadian Mounted Police, with assistance from U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations. Assistant United States Attorney Adrian T. Kinsella is prosecuting the case.
Singh is currently detained in federal custody while awaiting trial.
If convicted, Singh faces a maximum statutory penalty of five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Armed Career Criminal Indicted for Unlawful Possession of FirearmRead the Press Release
FRESNO, Calif. — A federal grand jury returned an indictment today against Shyheim Jetton, 31, of Fresno, charging him with being an armed career criminal in possession of a firearm, U.S. Attorney Eric Grant announced.
According to court documents, Jetton unlawfully possessed a firearm in that he is prohibited from possessing firearms due to prior felony convictions. Undercover Fresno Police Department officers located Jetton, who had ducked inside a convenience store when uniformed officers came to arrest him. Inside the store, Jetton had hidden a backpack behind a freezer; the backpack contained a 9mm Taurus handgun and 23 rounds of 9mm ammunition.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Fresno Police Department. Assistant U.S. Attorney Robert Veneman-Hughes is prosecuting the case.
If convicted, Jetton a mandatory minimum sentence of 15 years in prison and a maximum sentence of life 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 is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime.
This case is also 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 gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Leader of Transnational Terrorist Group Sentenced to 30 Years in Prison for Soliciting Hate Crimes and Murder, and for Conspiring to Provide Material Support to TerroristsRead the Press Release
Dallas Humber, 35, of Elk Grove — leader of the transnational terror group called the Terrorgram Collective — was sentenced today in U.S. District Court to 30 years in prison and a lifetime period of supervised release for soliciting hate crimes, soliciting the murder of federal officials, and conspiring to provide material support to terrorists, U.S. Attorney Eric Grant announced.
“From the comfort of her suburban California home, Humber used online platforms to celebrate violence and solicit attacks that took the lives of innocent people and injured others around the world. Her incarceration makes the world a safer place,” said Assistant Attorney General for National Security John A. Eisenberg. “The Department of Justice has shown that it can and will find these criminals even in the darkest corners of the Internet.”
“Today’s 30-year sentence sends an unmistakable message: if you plot acts of terror or use extremist networks to incite violence, you will be found, prosecuted, and incarcerated for decades,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “This case demonstrates that our prosecutors and law enforcement partners will disrupt these threats and will pursue the maximum penalties the law provides.”
“Humber actively encouraged violence against, and the murder of, individuals based on their race, religion, sexual orientation, and gender identity,” U.S. Attorney Grant stated. “Our office remains committed to working with our law enforcement partners and with other Department of Justice components to stop these hate-fueled crimes and to ensure the safety of all people and public officials.”
“With today’s sentencing, Dallas Humber will pay the price for encouraging racially motivated violence, attacks on critical infrastructure, and the murder of federal officials,” said Assistant Director Donald Holstead of the FBI’s Counterterrorism Division. “Humber led the Terrorgram Collective which inspired and guided individuals to commit violent acts around the world. Keeping our communities safe is a top priority of the FBI. Let there be no doubt, we will remain steadfast in identifying and holding accountable those who commit or encourage terrorism and other heinous acts.”
“Dallas Humber led the Terrorgram Collective as they conspired to murder federal officials and solicited individuals to commit hate crimes across the globe,” said FBI Sacramento Special Agent in Charge Sid Patel. “Through close collaboration with our domestic and international partners, we dismantled a dangerous network intent on inciting violence to advance its extremist ideology. Her 30-year sentence serves as a clear message that those who conspire to commit murder and solicit acts of terror in our communities will face justice.”
According to court documents, between July 2022 and September 2024, Humber served as a leader of the Terrorgram Collective, a white supremacist transnational terrorist group. To achieve their ends, she and other members of the Terrorgram Collective solicited individuals to commit hate crimes, terrorist attacks on critical infrastructure, and assassinations. They provided technical, inspirational, and operational guidance to equip those individuals to plan, prepare for, and successfully carry out those attacks.
Inspired and guided by Humber and the Terrorgram Collective, individuals committed attacks or plotted to commit attacks in the United States and elsewhere, including plotting to attack an energy facility in New Jersey, plotting to bomb an energy facility in Tennessee, plotting to murder two people in Wisconsin in furtherance of plans to assassinate a federal official, and attempting to assassinate an Australian official. In addition, individuals led by Humber and the Terrorgram Collective have committed acts of violence internationally, including shooting three people, killing two, at an LGBT bar in Bratislava, Slovakia; shooting 11 people, killing four, at two schools in Aracruz, Brazil; and stabbing five people outside of a mosque in Eskişehir, Turkey.
This case is the product of an investigation by the Federal Bureau of Investigation with assistance from a variety of foreign and domestic law enforcement agencies. The U.S. Attorney’s Office for the Eastern District of California, the Justice Department’s Civil Rights Division, and the National Security Division’s Counterterrorism Section prosecuted the case.
Leader of Transnational Terrorist Group Sentenced to 30 Years in Prison for Soliciting Hate Crimes and Murder, and Conspiring to Provide Material Support to TerroristsRead the Press Release
Dallas Humber, 35, of Elk Grove, California, — leader of the Terrorgram Collective, a transnational terrorist group — was sentenced today by U.S. District Judge Dena Coggins to 360 months in prison for soliciting hate crimes, soliciting the murder of federal officials, and conspiring to provide material support to terrorists.
“From the comfort of her suburban California home, Humber used online platforms to celebrate violence and solicit attacks that took the lives of innocent people and injured others around the world. Her incarceration makes the world a safer place,” said Assistant Attorney General for National Security John A. Eisenberg. “The Department of Justice has shown that it can and will find these criminals even in the darkest corners of the Internet.”
“Today’s 30-year sentence sends an unmistakable message: if you plot acts of terror or use extremist networks to incite violence, you will be found, prosecuted, and incarcerated for decades,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “This case demonstrates that our prosecutors and law enforcement partners will disrupt these threats and will pursue the maximum penalties the law provides.”
“Humber actively encouraged violence against, and the murder of, individuals based on their race, religion, sexual orientation, and gender identity,” said U.S. Attorney Eric Grant for the Eastern District of California. “Our office remains committed to working with our law enforcement partners and with other Department of Justice components to stop these hate-fueled crimes and to ensure the safety of all people and public officials.”
“With today’s sentencing, Dallas Humber will pay the price for encouraging racially motivated violence, attacks on critical infrastructure, and the murder of federal officials,” said Assistant Director Donald Holstead of the FBI’s Counterterrorism Division. “Humber led the Terrorgram Collective which inspired and guided individuals to commit violent acts around the world. Keeping our communities safe is a top priority of the FBI. Let there be no doubt, we will remain steadfast in identifying and holding accountable those who commit or encourage terrorism and other heinous acts.”
According to court documents, between July 2022 and September 2024, Humber served as a leader of the Terrorgram Collective, a white supremacist transnational terrorist group. To achieve their ends, she and other members of the Terrorgram Collective solicited individuals to commit hate crimes, terrorist attacks on critical infrastructure, and assassinations. They provided technical, inspirational, and operational guidance to equip those individuals to plan, prepare for, and successfully carry out those attacks.
Inspired and guided by Humber and the Terrorgram Collective, individuals committed attacks or plotted to commit attacks in the United States and elsewhere, including plotting to attack an energy facility in New Jersey, plotting to bomb an energy facility in Tennessee, plotting to murder two people in Wisconsin in furtherance of plans to assassinate a federal official, and attempting to assassinate an Australian official. In addition, individuals led by Humber and the Terrorgram Collective have committed acts of violence internationally, including shooting three people, killing two, at an LGBT bar in Bratislava, Slovakia; shooting 11 people, killing four, at two schools in Aracruz, Brazil; and stabbing five people outside of a mosque in Eskişehir, Turkey.
The FBI Sacramento Field Office investigated the case, with assistance from a variety of foreign and domestic law enforcement agencies.
The Eastern District of California, the Justice Department’s Civil Rights Division, and National Security Divisions Counterterrorism Section prosecuted the case.
West Sacramento Man Pleads Guilty to Drug Distribution ConspiracyRead the Press Release
James L. Kenney, 45, of West Sacramento, pleaded guilty Thursday to conspiring to distribute fentanyl, methamphetamine, cocaine, and heroin, U.S. Attorney Eric Grant announced.
According to court documents, between May 2025 and August of 2025, Kenney, his co-conspirator Kevin Leacy, 31, of West Sacramento, and others worked together as part of a drug trafficking organization selling fentanyl, methamphetamine, cocaine, and heroin using a motel in West Sacramento. During three controlled purchases in May 2025, law enforcement officers purchased 100 grams of fentanyl and 540 grams of pure methamphetamine from Kenney and Leacy.
In August 2025, law enforcement officers executed a search warrant at the motel and seized approximately 3.5 kilograms of fentanyl, 2 kilograms of cocaine, as well as methamphetamine and heroin located in rooms used by members of the conspiracy, including Kenney.
This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the West Sacramento Police Department and the Yolo County Sheriff’s Office. Assistant U.S. Attorney J. Douglas Harman and Special Assistant U.S. Attorney Matthew DeMoura are prosecuting the case.
Charges are pending against Leacy. The charges are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Kenney is scheduled to be sentenced by Chief U.S. District Judge Troy L. Nunley on March 26, 2026. Kenney faces a mandatory minimum statutory penalty of 10 years in prison, 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.
Former Madera County Welfare Benefits Employee Arrested for Improperly Using Other People’s Identities to Steal BenefitsRead the Press Release
Former Madera County benefits eligibility worker Leticia Mariscal, 55, of Madera, was arrested today on charges that she stole tens of thousands of dollars’ worth of other people’s CalFresh benefits during a multiyear scheme, U.S. Attorney Eric Grant announced. CalFresh is a financial assistance program that provides qualifying California residents with monetary benefits they can use to buy food. It was formerly known as the food stamp program.
According to court records, between December 2020 and April 2025, Mariscal improperly used county databases to which she had access through her job to obtain identifying information for individuals who were elderly or deceased. She then secretly approved these individuals to receive CalFresh benefits, printed EBT cards in their names with the benefits deposited thereon and spent the proceeds. Altogether, Mariscal used the identities of more than 15 people to steal benefits totaling more than $40,000. She was placed on leave earlier this year when her scheme was discovered.
This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the Madera County District Attorney’s Office. Assistant U.S. Attorney Joseph Barton is prosecuting the case.
If convicted, Mariscal faces up to 10 years in prison and a $250,000 fine for stealing CalFresh benefits. She also faces an additional two years in prison for misusing other people’s identities to commit the crime. 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.
Virtual Asset Trading Platform Pleads Guilty to Violating the Travel Act and Other Federal Criminal ChargesRead the Press Release
Paxful Holdings Inc., an online virtual currency trading platform, agreed to plead guilty yesterday to a three-count information filed in the Eastern District of California and agreed to pay a criminal penalty of $4 million based on its ability to pay.
“Paxful made millions of dollars in part by knowingly moving cryptocurrency for the benefit of fraudsters, extortionists, money launderers and purveyors of prostitution,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “The defendant attracted its criminal clientele by promoting its lack of anti-money laundering controls and its deliberate decision not to identify its customers. This conviction shows that no matter the means, the Criminal Division will hold criminals accountable for knowingly engaging in illicit finance to further dangerous criminal activity.”
“Yesterday’s guilty plea by Paxful Holdings holds the company accountable for knowingly facilitating serious criminal conduct in the United States and elsewhere,” said U.S. Attorney Eric Grant for the Eastern District of California. “Through its calculated lack of controls, the company made itself available as a vehicle for money laundering, sanctions violations, and other criminal activity, including fraud, romance scams, extortion schemes, and prostitution. This resolution sends a clear message: those who deliberately turn a blind eye to criminal activity on their platforms will face serious consequences under U.S. law. The Department of Justice remains committed to protecting victims and ensuring that the financial system, including the cryptocurrency ecosystem, is not exploited.”
“For years, Paxful disregarded its Bank Secrecy Act obligations and facilitated transactions associated with illicit activity and high-risk jurisdictions, such as Iran and North Korea,” said Financial Crimes Enforcement Network (FinCEN) Director Andrea Gacki. “FinCEN is committed to mitigating risks to the U.S. financial system while fostering responsible innovation in the virtual asset ecosystem.”
“Paxful Holdings, Inc. knowingly enabled its platform to serve as a conduit for criminal activity — including fraud and illegal prostitution,” said Special Agent in Charge Linda Nguyen of the IRS Criminal Investigation (IRS-CI) Oakland Field Office. “By willfully disregarding anti-money laundering laws and failing to report suspicious activity, Paxful profited in illicit trades while facilitating crimes with serious harm and consequences. IRS-CI remains steadfast in its mission to hold virtual currency platforms accountable when they are used to conceal and enable criminal conduct.”
According to court documents, Paxful Inc., and later, Paxful Holdings Inc. (collectively Paxful), owned and operated an online peer-to-peer virtual currency platform and money transmitting business (MTB) where customers negotiated for and traded virtual currency for a variety of other items, including fiat currency, prepaid cards and gift cards. Paxful knew that its customers transmitted funds from criminal offenses, including fraud schemes and illegal prostitution. From Jan. 1, 2017, to Sept. 2, 2019, Paxful facilitated more than 26.7 million trades, totaling nearly $3 billion in value, and collected more than $29.7 million in revenue.
Paxful knowingly transferred virtual currency on behalf of its customers, including Backpage, an online advertising platform for illicit prostitution and similar sites. In various criminal proceedings, Backpage and its owners and operators admitted that Backpage advertised and profited from illegal prostitution, including illegal sex work depicting minors. Paxful’s founders boasted about the “Backpage Effect,” which enabled Paxful’s business to grow. Between December 2015 and December 2022, Paxful’s collaboration with Backpage and a similar site caused nearly $17 million worth of bitcoin to be transferred from the Paxful wallet to Backpage and the copycat site from which Paxful obtained at least $2.7 million in profits.
As described in the plea agreement, from July 2015 to June 2019, Paxful and its founders marketed Paxful as a platform that did not require know-your-customer (KYC) information; allowed customers to open accounts and trade on the Paxful platform without gathering sufficient KYC information; presented to third parties fake anti money-laundering (AML) policies that they knew were not implemented or enforced; and failed to file suspicious activity reports, despite knowing that Paxful users were engaged in suspicious and criminal activity. As a result, Paxful knew it was used as a vehicle for prostitution, fraud, romance scams and extortion schemes.
Paxful agreed to plead guilty to conspiring to violate the Travel Act by promoting illegal prostitution through interstate commerce; conspiring to operate an unlicensed MTB by knowingly transmitting funds derived from criminal offenses or supporting unlawful activity, including illegal prostitution and fraud schemes; and conspiring to violate the Bank Secrecy Act’s (BSA) AML program requirement. As a result of its illegal conduct, the virtual currency platform was used to transfer the proceeds of fraud schemes, illegal prostitution, hacks by malign state actors and distribution of child sexual abuse material.
The Justice Department reached its resolution with Paxful based on several factors, including the nature and seriousness of the offenses, which involved Paxful’s processing of millions of dollars of illicit transactions. Paxful did not make a timely and voluntary disclosure of wrongdoing, but it received credit for its cooperation with the department’s investigation, including among other things, collecting, analyzing and producing voluminous information, providing timely updates on facts learned during its internal investigation and engaging in extensive and timely remedial measures. Accordingly, Paxful received a 25% reduction off the bottom of the applicable U.S. sentencing guidelines fine range. According to court documents, Paxful agreed that the appropriate criminal penalty based on the law and the facts in its case is $112,500,000. Based on the Justice Department’s independent analysis, it determined that Paxful did not have the ability to pay a criminal penalty greater than $4 million. The court will sentence Paxful on Feb.10, 2026.
On July 8, 2024, Paxful’s co-founder and former chief technology officer, Artur Schaback, pleaded guilty to conspiracy to fail to maintain an effective AML program in relation to the same scheme.
Paxful’s guilty plea is part of a coordinated resolution with FinCEN.
Immigrations and Customs Enforcement Homeland Security Investigations (ICE HSI) and IRS‑CI are investigating the case.
Bank Integrity Unit Deputy Chief Kevin Mosley and Trial Attorneys Emily Cohen, Caylee Campbell and Katherine Nielsen of the Criminal Division’s Money Laundering, Narcotics and Forfeiture Section and Assistant U.S. Attorney Matthew Thuesen for the Eastern District of California are prosecuting the case.
The Money Laundering, Narcotics and Forfeiture Section’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers and employees whose actions threaten the integrity of the individual institution or the wider financial system.
Virtual Asset Trading Platform Pleads Guilty to Violating the Travel Act and Other Federal Criminal ChargesRead the Press Release
Paxful Holdings Inc., an online virtual currency trading platform, agreed to plead guilty yesterday to a three-count information filed in the Eastern District of California and agreed to pay a criminal penalty of $4 million based on its ability to pay.
“Paxful made millions of dollars in part by knowingly moving cryptocurrency for the benefit of fraudsters, extortionists, money launderers and purveyors of prostitution,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “The defendant attracted its criminal clientele by promoting its lack of anti-money laundering controls and its deliberate decision not to identify its customers. This conviction shows that no matter the means, the Criminal Division will hold criminals accountable for knowingly engaging in illicit finance to further dangerous criminal activity.”
“Yesterday’s guilty plea by Paxful Holdings holds the company accountable for knowingly facilitating serious criminal conduct in the United States and elsewhere,” said U.S. Attorney Eric Grant for the Eastern District of California. “Through its calculated lack of controls, the company made itself available as a vehicle for money laundering, sanctions violations, and other criminal activity, including fraud, romance scams, extortion schemes, and prostitution. This resolution sends a clear message: those who deliberately turn a blind eye to criminal activity on their platforms will face serious consequences under U.S. law. The Department of Justice remains committed to protecting victims and ensuring that the financial system, including the cryptocurrency ecosystem, is not exploited.”
“For years, Paxful disregarded its Bank Secrecy Act obligations and facilitated transactions associated with illicit activity and high-risk jurisdictions, such as Iran and North Korea,” said Financial Crimes Enforcement Network (FinCEN) Director Andrea Gacki. “FinCEN is committed to mitigating risks to the U.S. financial system while fostering responsible innovation in the virtual asset ecosystem.”
“Paxful Holdings, Inc. knowingly enabled its platform to serve as a conduit for criminal activity — including fraud and illegal prostitution,” said Special Agent in Charge Linda Nguyen of the IRS Criminal Investigation (IRS-CI) Oakland Field Office. “By willfully disregarding anti-money laundering laws and failing to report suspicious activity, Paxful profited in illicit trades while facilitating crimes with serious harm and consequences. IRS-CI remains steadfast in its mission to hold virtual currency platforms accountable when they are used to conceal and enable criminal conduct.”
According to court documents, Paxful Inc., and later, Paxful Holdings Inc. (collectively Paxful), owned and operated an online peer-to-peer virtual currency platform and money transmitting business (MTB) where customers negotiated for and traded virtual currency for a variety of other items, including fiat currency, pre-paid cards and gift cards. Paxful knew that its customers transmitted funds from criminal offenses, including fraud schemes and illegal prostitution. From Jan. 1, 2017, to Sept. 2, 2019, Paxful facilitated more than 26.7 million trades, totaling nearly $3 billion in value, and collected more than $29.7 million in revenue.
Paxful knowingly transferred virtual currency on behalf of its customers, including Backpage, an online advertising platform for illicit prostitution and similar sites. In various criminal proceedings, Backpage and its owners and operators admitted that Backpage advertised and profited from illegal prostitution, including illegal sex work depicting minors. Paxful’s founders boasted about the “Backpage Effect,” which enabled Paxful’s business to grow. Between December 2015 and December 2022, Paxful’s collaboration with Backpage and a similar site caused nearly $17 million worth of bitcoin to be transferred from the Paxful wallet to Backpage and the copycat site from which Paxful obtained at least $2.7 million in profits.
As described in the plea agreement, from July 2015 to June 2019, Paxful and its founders marketed Paxful as a platform that did not require know-your-customer (KYC) information; allowed customers to open accounts and trade on the Paxful platform without gathering sufficient KYC information; presented to third parties fake anti money-laundering (AML) policies that they knew were not implemented or enforced; and failed to file suspicious activity reports, despite knowing that Paxful users were engaged in suspicious and criminal activity. As a result, Paxful knew it was used as a vehicle for prostitution, fraud, romance scams and extortion schemes.
Paxful agreed to plead guilty to conspiring to violate the Travel Act by promoting illegal prostitution through interstate commerce; conspiring to operate an unlicensed MTB by knowingly transmitting funds derived from criminal offenses or supporting unlawful activity, including illegal prostitution and fraud schemes; and conspiring to violate the Bank Secrecy Act’s (BSA) AML program requirement. As a result of its illegal conduct, the virtual currency platform was used to transfer the proceeds of fraud schemes, illegal prostitution, hacks by malign state actors and distribution of child sexual abuse material.
The Justice Department reached its resolution with Paxful based on several factors, including the nature and seriousness of the offenses, which involved Paxful’s processing of millions of dollars of illicit transactions. Paxful did not make a timely and voluntary disclosure of wrongdoing, but it received credit for its cooperation with the department’s investigation, including among other things, collecting, analyzing and producing voluminous information, providing timely updates on facts learned during its internal investigation and engaging in extensive and timely remedial measures. Accordingly, Paxful received a 25% reduction off the bottom of the applicable U.S. sentencing guidelines fine range. According to court documents, Paxful agreed that the appropriate criminal penalty based on the law and the facts in its case is $112,500,000. Based on the Justice Department’s independent analysis, it determined that Paxful did not have the ability to pay a criminal penalty greater than $4 million. The court will sentence Paxful on Feb.10, 2026.
On July 8, 2024, Paxful’s co-founder and former chief technology officer, Artur Schaback, pleaded guilty to conspiracy to fail to maintain an effective AML program in relation to the same scheme.
Paxful’s guilty plea is part of a coordinated resolution with FinCEN.
Immigrations and Customs Enforcement Homeland Security Investigations (ICE HSI) and IRS-CI are investigating the case.
Bank Integrity Unit Deputy Chief Kevin Mosley and Trial Attorneys Emily Cohen, Caylee Campbell and Katherine Nielsen of the Criminal Division’s Money Laundering, Narcotics and Forfeiture Section and Assistant U.S. Attorney Matthew Thuesen for the Eastern District of California are prosecuting the case.
The Money Laundering, Narcotics and Forfeiture Section’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers and employees whose actions threaten the integrity of the individual institution or the wider financial system.
Southern California Man Pleads Guilty to Fentanyl and Methamphetamine Distribution ConspiracyRead the Press Release
Devlin Hosner, 36, of Indio, pleaded guilty today to conspiring to distribute fentanyl and methamphetamine, U.S. Attorney Eric Grant announced.
According to court documents, between 2020 and 2022, Hosner and his co-conspirator Holly Adams, 35, of Palm Desert, operated vendor accounts on the dark web marketplaces known as ToRReZ and Dark0de. Hosner and Adams generated hundreds of thousands of dollars selling counterfeit oxycodone pills pressed with fentanyl, after which they laundered the proceeds using cryptocurrency mixers, wallets, and other online tools.
In September 2021, law enforcement officers executed a search warrant at an address where Hosner and Adams resided. After the officers announced their presence, Hosner attempted to impede their entry while Adams destroyed pills by pouring them into a chemical solution. Adams and Hosner were arrested and subsequently released by state authorities and resumed selling fentanyl on the dark web a few months later while they were unknowingly under investigation by federal law enforcement agents.
In March 2022, federal agents executed a search warrant at a hotel room in Riverside County where Hosner and Adams were temporarily residing. Officers seized nearly a kilogram of fentanyl-pressed oxycodone pills and 60 grams of methamphetamine from this hotel room. Hosner and Adams were arrested on federal charges.
This case is the product of an investigation by the Northern California Illicit Digital Economy (NCIDE) Task Force, a previously existing task force that included agents from the Internal Revenue Service - Criminal Investigation, Homeland Security Investigations, the Federal Bureau of Investigation, the United States Postal Inspection Service, the United States Postal Service Office of Inspector General, and the Drug Enforcement Administration. The NCIDE Task Force was a federal task force focused on targeting all forms of illicit dark web and cryptocurrency activity in the Eastern District of California and beyond. Assistant U.S. Attorney Sam Stefanki is prosecuting the case.
Adams previously pleaded guilty to conspiring to distribute fentanyl and to launder the resulting proceeds. In June 2025, the district court sentenced her to serve 12 years in prison.
Hosner is scheduled to be sentenced by Senior U.S. District Judge John A. Mendez on March 24, 2026. Hosner faces a mandatory minimum statutory penalty of 10 years in prison and a maximum statutory penalty of life in prison, as well as a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the federal Sentencing Guidelines, which take into account a number of variables.
Mother Convicted for Interstate Violation of Protective Order Regarding Her Estranged Teenage SonRead the Press Release
Following a 5-day jury trial, Shana Gaviola, 38, formerly of Clovis, was found guilty of interstate violation of a protection order for causing her estranged teenage son to be taken against his will and transported from California to Missouri, U.S. Attorney Eric Grant announced.
“Shana Gaviola paid individuals to kidnap her then-16-year-old son from an ice-skating rink in Fresno, California, drive him in handcuffs to Missouri, and forcibly restrain him there for a week—all in express violation of a state-court domestic violence restraining order and ostensibly in the exercise of Gaviola’s religious beliefs,” said U.S. Attorney Grant. “No parent—indeed, no person whatsoever—has the right to subject a child to kidnapping and terror for that reason or any other reason. This office will continue to vigorously prosecute anyone who violates the basic rights and safety of minors in our district, especially in violation of lawful court orders.”
“We are grateful for our strong partnership with the Fresno Police Department. Together, we uncovered the facts that ultimately led to today’s verdict. Shana Gaviola manipulated others to help force her will upon her son. We are very proud of his resolve throughout this investigation and trial. He will rest easier knowing that justice has been served,” said FBI Sacramento Acting Special Agent in Charge Duel Valentine.
According to court documents and testimony at trial, in 2020, Gaviola’s then-16-year-old son began living apart from Gaviola with another family. He petitioned for emancipation from Gaviola and obtained a domestic violence protection order against Gaviola from the Fresno County Superior Court. The order prohibited Gaviola from harassing, blocking the movements of, or contacting her son in any way, including directly or indirectly.
Despite the protection order, Gaviola made plans for her son to be forcibly transported from California to Missouri. On Aug. 21, 2021, individuals acting on behalf of Gaviola abducted the minor from an ice-skating rink in Fresno, handcuffed him, and forced him into a car. He remained in handcuffs for more than 24 hours while they drove to Stockton, Missouri. He was then held at a youth facility until his father was able to free him.
This case is the product of an investigation by the Federal Bureau of Investigation, with assistance from the Fresno Police Department and the Clovis Police Department. Assistant U.S. Attorneys Veronica M.A. Alegría and Heiko P. Coppola are prosecuting the case. Assistance was provided by the U.S. Attorney’s Offices for the Western District of Missouri and the Eastern District of Missouri.
Gaviola is scheduled to be sentenced by U.S. District Judge John C. Coughenour on April 27, 2026. Gaviola 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.
Los Angeles-area Drug Trafficker Sentenced to 70 Months in Prison for Conspiracy to Distribute Methamphetamine in SacramentoRead the Press Release
Julio Cesar Nevarez-Erunez, 24, of Salem, Oregon, formerly of Downey, California, was sentenced on Dec. 4, 2025, by U.S. District Judge Daniel J. Calabretta to five years and 10 months in prison for conspiracy to distribute methamphetamine, U.S. Attorney Eric Grant announced.
According to court documents, Nevarez-Erunez conspired with his co-defendant, Juan Niebla-Osuna, 28, of Downey, to distribute methamphetamine in the Eastern District of California and elsewhere. On July 13, 2022, Nevarez-Erunez and Niebla Osuna sold 15 pounds of methamphetamine to a confidential source. On Oct. 6, 2022, Nevarez-Erunez was arrested and found in possession of 40 pounds of methamphetamine and 5,000 counterfeit oxycodone pills containing fentanyl. A search of the residence shared by the co-defendants in the Los Angeles area uncovered 7 more pounds of methamphetamine and 2.5 pounds of fentanyl powder.
Niebla-Osuna previously pleaded guilty to one count of conspiracy to distribute methamphetamine. On Aug. 28, 2025, Niebla-Osuna failed to appear for sentencing. A bench warrant has been issued for his arrest.
This case is the product of an investigation by Homeland Security Investigations, the Drug Enforcement Administration, and the Federal Bureau of Investigation. Assistant U.S. Attorney Haddy Abouzeid is prosecuting the case.
This case is part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. HSTF Sacramento is composed of agents and officers from Homeland Security Investigations, Federal Bureau of Investigations, Drug Enforcement Administration, Northern California High Intensity Drug Trafficking Area, Central Valley High Intensity Drug Trafficking Area, and Sacramento County Sheriff’s Office with the prosecution being led by the United States Attorney’s Office for the Eastern District of California.
Court Appoints Eric Grant to Continue to Serve as the United States Attorney for the Eastern District of CaliforniaRead the Press Release
Today, Chief U.S. District Judge Troy L. Nunley administered the oath of office to Eric Grant, swearing him in to serve as the court-appointed United States Attorney and thereby continue as the chief federal law enforcement officer for the Eastern District of California. On August 11, 2025, Attorney General Pam Bondi appointed Mr. Grant as the interim U.S. Attorney for 120 days, and the judges of the Eastern District of California recently voted to re-appoint Mr. Grant pursuant to 28 U.S.C. § 546(d).
Mr. Grant is a veteran of the Department of Justice, having served twice in Washington, D.C.: from 1991 to 1993 as an Attorney-Adviser in the Office of Legal Counsel, and from 2017 to 2021 as a Deputy Assistant Attorney General in the Environment and Natural Resources Division (ENRD). During his tenure at ENRD, Mr. Grant supervised more than a hundred Department litigators advancing the interests of the United States and its agencies in both enforcement and defensive matters, both civil and criminal.
“I have been honored to lead an excellent team of dedicated attorneys and other public servants in our shared mission to enhance public safety and the rule of law in the Eastern District of California. We have accomplished a great deal over the last several months, and our work continues. I look forward to continuing to work with my colleagues and with federal, state, local, and tribal partners to accomplish that mission,” U.S. Attorney Grant said.
In addition to his service in the Department, Mr. Grant has decades of experience in private practice in Washington, D.C., and Sacramento. That experience includes arguments in the U.S. Supreme Court, the California Supreme Court, and numerous other federal and state courts.
Mr. Grant served as a law clerk to Chief Justice Warren E. Burger (retired) and Associate Justice Clarence Thomas during the Supreme Court’s October 1994 Term. Earlier he served as a law clerk to Judge Edith H. Jones of the U.S. Court of Appeals for the Fifth Circuit in Houston, Texas.
Mr. Grant grew up in Modesto, California, and raised his family in Sacramento County. He attended the University of California, Berkeley, from which he earned a bachelor’s degree in economics (1986) and a law degree (1990).
The United States Attorney serves as the chief federal law enforcement officer for the Eastern District of California and is responsible for prosecuting federal criminal cases and representing the United States in civil litigation. The Eastern District encompasses 34 counties throughout the Central Valley and the Sierra, from the Oregon border in the north to the Los Angeles County line in the south. The United States Attorney’s Office has offices in Sacramento, Fresno, and Bakersfield.
Sacramento County Man Sentenced to over 6 Years in Prison for Receiving Child Sex Abuse MaterialRead the Press Release
Kyle Travis Colton, 38, of Citrus Heights, was sentenced today by U.S. District Judge Dale A. Drozd to six years and eight months in prison for receiving child sex abuse material, U.S. Attorney Eric Grant announced.
According to evidence presented at trial and in court documents, during a search of Colton’s home, law enforcement recovered his laptop, which contained copious images and videos depicting the graphic sexual abuse of young children. Between July 2022 and December 2023, Colton downloaded these depictions of children engaged in sexually explicit conduct. The material was saved on Colton’s computer desktop and in his downloads folder, and he had user-created bookmarks linking to known child pornography websites.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Shea J. Kenny is prosecuting the case.
Following sentencing, Colton was remanded into custody of the Bureau of Prisons to begin serving his sentence immediately.
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.
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Fresno Man Sentenced to 7.5 Years in Prison for $30-plus Million Fraud SchemeRead the Press Release
Matthew Dane Billingsley, 40, of Fresno, was sentenced today by U.S. District Judge Jennifer L. Thurston to seven years and six months in prison for wire fraud in a scheme that defrauded individual lenders and financial institutions out of more than $30 million, U.S. Attorney Eric Grant announced.
“The defendant defrauded victims out of millions of dollars. Over nearly five years, he repeatedly and deliberately committed crimes by altering documents, forging signatures, and otherwise lying,” said U.S. Attorney Grant. “This office, together with our law enforcement partners, will continue to aggressively pursue those who defraud victims and threaten our financial system through deceit.”
“Matthew Billingsley orchestrated a deliberate campaign of fraud, stealing more than $30 million through falsified documents,” said FBI Sacramento Special Agent in Charge Sid Patel. “The FBI, in partnership with IRS Criminal Investigation, put an end to his pattern of manipulation and exploitation. We will relentlessly pursue those who victimize others through dishonesty and greed.”
“Today’s sentencing sends a clear message: those who engage in deception to defraud lenders and abuse the financial system will be held accountable,” said IRS Criminal Investigation (IRS‑CI) Oakland Field Office Special Agent in Charge Linda Nguyen. “By fabricating brokerage statements and misusing loan funds, Mr. Billingsley not only betrayed the trust of financial institutions and individual lenders but also undermined the integrity of our financial markets. IRS-CI uses fundamental accounting principles mixed with advanced technology to build investigations that extinguish such financial deceit.”
According to court documents, between June 2018 and February 2023, Billingsley made false representations about having a brokerage account with millions of dollars in assets to serve as collateral for loans. Billingsley gave fabricated brokerage account statements to obtain more than $30 million in loans from individual lenders and financial institutions. The brokerage account statements were false because the brokerage account did not exist. Billingsley also misrepresented to individual lenders and financial institutions the intended use of the loan funds and, instead, used the money to pay down previous loans and for his personal benefit.
To obtain one of the loans, Billingsley used a Fresno restaurant owner’s name and signature on a profit-sharing agreement that Billingsley created and forged. Billingsley presented the false and fraudulent profit-sharing agreement to a financial institution to obtain a loan.
This case was the product of an investigation by the Federal Bureau of Investigation and the IRS Criminal Investigation. Assistant U.S. Attorney Brittany M. Gunter prosecuted the case.
Central Valley Corporate Insider Sentenced to 18 Months in Prison for Role in Stealing Nearly $5 Million in Livestock Feed IngredientsRead the Press Release
Shawn Sawa, 49, formerly of Clovis, was sentenced today by U.S. District Judge Jennifer L. Thurston to 18 months in prison for his role in a fraud scheme that stole millions of dollars’ worth of canola, used to make livestock feed, from international food processors, U.S. Attorney Eric Grant announced.
According to court documents, from 2015 through 2017, Sawa and co-defendant Richard Best stole $4.8 million worth of canola from international food processors. They then sold the canola for a windfall.
Sawa and Best carried out the scheme through Best’s now defunct train-to-truck transloading company, Richard Best Transfer Inc. (RBT). A transloading company transfers commodities from one mode of transportation to another mode. The victim food processors sent hundreds of thousands of tons of their canola to RBT for delivery to their customers. Sawa was the Fresno area manager for one of the victim food processors from whom he and Best stole canola. Sawa initially received kickback payments from Best to try to increase the supply of canola that RBT received from that food processor before they began their scheme.
Sawa and Best sold the stolen canola through an acquaintance in Texas who used to work in the livestock-feed industry. The acquaintance sold the stolen canola to farms and dairies and distributed the proceeds according to Best’s instructions. This included wire transfers to Sawa, Best, and RBT’s bank accounts. The account that Sawa used was opened in his spouse’s name to try to conceal the scheme.
Throughout the scheme, Sawa and Best caused RBT to email fraudulent inventory reports to the victim food processors representing that RBT had certain amounts of their canola in-stock when, in fact, RBT had significantly lesser amounts. Sawa and Best used the proceeds from the scheme to purchase luxury homes and multiple vehicles, take trips, hire private karate teachers, and cover RBT’s operating expenses, among other expenses.
Shortly before the scheme was discovered, Best gave Sawa an old cellphone that had belonged to Best’s deceased mother. Best did so because he was afraid that the victim food processor for whom Sawa worked was onto their scheme and was monitoring communications on Sawa’s company issued devices. They then used the old cellphone to secretly communicate with each other in furtherance of the scheme.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Cody Chapple, Chan Hee Chu, and Joseph Barton are prosecuting the case.
Best pleaded guilty on Oct. 14, 2025, three weeks before his trial was supposed to start and is scheduled to be sentenced on March 2, 2026. He 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.
Virginia Laboratory to Pay $758,000 to Settle Allegations of Kickbacks to Doctors and MarketersRead the Press Release
Note: View settlement here.
Clinical laboratory NEXT Bio-Research Services LLC, doing business as NEXT Molecular Analytics (NEXT), of Chester, Virginia, has agreed to pay at least $758,000 to the United States to resolve False Claims Act allegations involving illegal kickbacks to doctors and marketers. NEXT has agreed to cooperate with the Department of Justice’s investigations of, and litigation against, other participants in the alleged schemes.
“This settlement shows DOJ’s commitment to rooting out illegal kickback schemes that have no place in our federal health care programs,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “The Department is committed to pursuing these important investigations and health care fraud enforcement across the board.”
“Physicians should make decisions based the best interests of their patients, not their own personal financial interests,” said U.S. Attorney Eric Grant for the Eastern District of California. “This settlement demonstrates my office’s commitment to taking all appropriate action to prevent improper inducements that can corrupt the integrity of physician-patient relationships.”
“Violations of the Anti-Kickback Statute are not victimless crimes — they compromise the integrity of medical decision-making and betray the trust patients place in their providers,” stated Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “When health care decisions are shaped by hidden financial motives, patients may be misled, unnecessary services may be rendered, and taxpayer-funded programs may be manipulated for personal gain. HHS-OIG is resolutely committed to holding participants in federal health care programs fully accountable to the law.”
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded health care programs. It is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
Under the settlement with the United States, NEXT has agreed to pay $758,000, plus additional amounts if certain financial contingencies occur. The settlement resolves allegations that NEXT knowingly and willfully paid kickbacks to induce laboratory testing referrals. NEXT allegedly paid doctors in Texas and Arkansas thousands of dollars in kickbacks, which were disguised as consulting fees and medical director fees but actually were offered to induce the doctor to order NEXT laboratory tests. NEXT also allegedly paid commissions based on the volume and value of referrals to certain independent contractor marketers to arrange for and recommend that doctors order NEXT laboratory tests. The settlement resolves allegations that NEXT billed Medicare, Medicaid, and TRICARE for the laboratory tests despite knowing of these kickbacks.
The settlement resolves certain allegations in a lawsuit originally filed by Sunil Wadhwa and Ken Newton under the whistleblower provisions of the False Claims Act, which permit private parties to sue on behalf of the government and receive a share of any recovery. Relators will receive $113,700 of the proceeds from the settlement. The qui tam case is captioned United States ex rel. Wadhwa and Newton v. Admera Health LLC, et al. (E.D. Cal.).
The settlement announced today was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Offices for the District of New Jersey and the Eastern District of California, with assistance from HHS-OIG. It was handled by Trial Attorneys Christopher Terranova and Elizabeth J. Kappakas in the Civil Division’s Commercial Litigation Branch, Fraud Section, Assistant U.S. Attorney Kruti Dharia for the District of New Jersey, and Assistant U.S. Attorney Catherine J. Swann for the Eastern District of California. The United States previously settled related allegations with NEXT’s National Sales Director and NEXT’s independent contractor marketers OC Genetic Consultants Inc. and Ralston Health Group Inc.
The government’s pursuit of these matters illustrates its emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 1-800-HHS-TIPS (800-447-8477).
The claims resolved by the settlements are allegations only, and there has been no determination of liability.
NEXT Settlement Agreement.pdfPicnic Day Shooter in Davis Pleads Guilty to Being a Felon in Possession of a FirearmRead the Press Release
Joseph Allen Davis, 19, of Sacramento, pleaded guilty today to being a felon in possession of a firearm, U.S. Attorney Eric Grant announced.
According to court documents, police officers began investigating Joseph Allen Davis after determining that he was a shooter at the April 12, 2025, shooting at Rainbow City Park in Davis, where three people were injured by gunfire. Law enforcement officers conducted a search of Joseph Allen Davis’s apartment and seized a short-barrel AR-15-style pistol that was loaded with 23 rounds of ammunition. Davis is prohibited from possessing any firearms and ammunition because he was previously convicted of a felony gun possession offense.
This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the Davis Police Department, the Sacramento Police Department, the Sacramento County Sheriff’s Office, the Yolo County District Attorney’s Office, and the Sacramento County District Attorney’s Office. Assistant U.S. Attorney Justin Lee is prosecuting the case.
Davis is scheduled to be sentenced by Chief U.S. District Judge Troy L. Nunley on March 26, 2026. Davis faces a maximum statutory penalty of 15 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the federal Sentencing Guidelines, which take into account a number of variables.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
California Lobbyist and Former Chief of Staff to an Elected Official Plead Guilty to Conspiracy to Commit FraudRead the Press Release
California lobbyist Greg Campbell, 52, of Davis, pleaded guilty today to one count of conspiracy to commit bank and wire fraud, and one count of conspiracy to defraud the United States and to commit offenses against the United States. On Nov. 20, 2025, Sean McCluskie, 56, of Davis, pleaded guilty to one count of conspiracy to commit bank fraud and wire fraud.
According to court documents, in 2021, McCluskie was the Chief of Staff to an elected official and continued in that role when the official was confirmed to a United States government position. Between February 2022 and September 2024, Campbell and McCluskie conspired with Dana Williamson, 53, of Carmichael, and others to steal approximately $225,000 in funds from the elected official’s dormant political campaign for McCluskie’s personal use in order to pay for McCluskie’s bicoastal lifestyle. Collectively, they funneled the money through various business entities and disguised it as pay for what was, in reality, a no-show job for McCluskie’s spouse.
In July 2024, at Williamson’s request, Campbell had three fake retroactive contracts created to respond to a subpoena Williamson had received questioning her company’s eligibility for PPP loans and loan forgiveness. The Paycheck Protection Program (PPP) provided forgivable loans to small businesses to help them keep employees on the payroll during the pandemic. Lobbying firms were not eligible to receive PPP loans. Campbell signed the fake contracts, which made it appear as though Williamson provided only non-lobbying services to her clients, and her firm was only a subcontractor for Campbell’s independently owned lobbying firm.
On Nov. 12, 2025, a 23-count indictment was unsealed, charging Williamson with conspiracy to commit bank and wire fraud, bank fraud, wire fraud, conspiracy to defraud the United States and obstruct justice, subscribing to false tax returns, and making false statements. The charges are only allegations; Williamson is presumed innocent until and unless proven guilty beyond a reasonable doubt.
These cases are the product of an investigation by the Federal Bureau of Investigation and IRS Criminal Investigation. Assistant U.S. Attorneys Michael D. Anderson, Rosanne Rust, and Katherine T. Lydon, and Public Integrity Section Trial Attorney Alexandre Dempsey are prosecuting the case.
A status of sentencing hearing for both Campbell and McCluskie is set for Feb. 26, 2026, before Chief U.S. District Judge Troy L. Nunley. The next court date for Williamson is a status conference set for Dec. 11, 2025, at 9:30 a.m., before Chief Judge Nunley.
Campbell and McCluskie face a maximum statutory penalty of five years in prison and a fine of up to $250,000 for each count of conspiracy.
If convicted, Williamson faces a maximum statutory penalty of 30 years in prison and a $250,000 fine for each count of bank fraud and conspiracy to commit bank fraud and wire fraud; up to 20 years in prison and a $250,000 fine for each count of wire fraud; up to five years in prison and a $250,000 fine for each count of conspiracy to obstruct and making a false statements; and up to three years in prison and a $100,000 fine for each count of subscribing to a false tax return.
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.
CEO of Fresno-based Health Care Company Arrested at San Francisco Airport for an Alleged $7 Million Scheme to Defraud the Department of Veterans AffairsRead the Press Release
The CEO of a Fresno-based home health care company was arrested at San Francisco International Airport while attempting to board a flight to Nigeria. He is charged in a criminal complaint alleging that he fraudulently obtained more than $7 million in payments from the Department of Veterans Affairs for services that were never actually rendered, including care purportedly rendered to veterans weeks after they had died, U.S. Attorney Eric Grant announced.
According to court documents, between December 2019 and July 2024, Cashmir Chinedu Luke, believed to be 66, of Antioch, operated Four Corners Health LLC. That entity provided unskilled in-home nursing and day-to-day care for elderly VA beneficiaries under the Veterans Community Care Program. Four Corners provided services in Fresno, Tulare, Merced, Mariposa, Madera, San Francisco, and Contra Costa Counties. Luke engaged in a five-year scheme to bill the VA for hours of care that were not actually rendered to veterans. Luke caused Four Corners to submit approximately 10,000 individual false claims of care provided that caused the VA, through its third-party benefits administrator, to reimburse Four Corners $7 million for duplicate claims for care actually provided, claims for days caretakers were not present with veterans, claims for hours of care beyond those actually worked by caretakers, and claims of care for veterans who were actually dead.
Luke served as the sole owner and billing representative for Four Corners and actively deceived the VA’s third-party benefits administrator as it attempted to recover some of the fraudulently paid reimbursements. This allowed the Four Corners billing scheme to continue. Luke personally profited from the scheme as the sole owner of the bank account that received the reimbursement payments. Luke spent reimbursement payments immediately after being paid by the VA, either by spending lavishly on personal expenses or by promptly transferring the funds across a network of bank accounts throughout Asia and Africa.
This case is the product of an investigation by the U.S. Veterans Affairs Office of Inspector General. Assistant U.S. Attorney Calvin Lee is prosecuting the case.
If convicted, Luke 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.
Delano Man Sentenced to 6 Years and 8 Months in Prison for Distributing FentanylRead the Press Release
Omar Vayas Duran, 45, of Delano, was sentenced today to six years and eight months in prison by U.S. District Judge Edward J. Davila for conspiracy to distribute fentanyl and possession with intent to distribute fentanyl, U.S. Attorney Eric Grant announced.
According to court documents, between Sept. 23, 2020, and June 29, 2021, Duran conspired with Jesus Manuel Morfin Villa, 31, of Delano, and others to acquire and distribute fentanyl. On one occasion in June 2021, Duran supplied Morfin Villa with approximately 2,000 counterfeit oxycodone pills containing fentanyl to sell.
On Aug. 14, 2023, Morfin Villa was sentenced to 14 years in prison for conspiracy to distribute, and possess with intent to distribute, methamphetamine and fentanyl.
This case is the product of an investigation by the Drug Enforcement Administration. Assistant U.S. Attorneys Kimberly A. Sanchez and Cody S. Chapple prosecuted the case.
Bay Area Man Sentenced to 13 Years in Prison for Stockton Drug BuyRead the Press Release
Robert Godinez, 53, of Hayward, was sentenced today by U.S. District Judge Dale A. Drozd to 13 years in prison for possessing methamphetamine and heroin with the intent to distribute, and for using a cellphone to facilitate drug trafficking offenses, U.S. Attorney Eric Grant announced.
According to court documents, on Aug. 30, 2019, law enforcement officers pulled over Godinez on a traffic stop after he purchased methamphetamine and heroin from a drug dealer in Stockton. A search of Godinez’s vehicle resulted in the discovery of 2 pounds of methamphetamine and approximately a half pound of heroin. Additionally, during the prosecution of this case, Godinez submitted false declarations to the district court and lied to the assigned probation officer, resulting in the application of an obstruction of justice sentencing enhancement.
This case was the product of an investigation by the Federal Bureau of Investigation, with assistance from the California Department of Corrections and Rehabilitation, U.S. Customs and Border Protection, the Drug Enforcement Administration, Homeland Security Investigations, the San Joaquin County Probation Department, the Stockton Police Department, and the Tracy Police Department. Assistant U.S. Attorneys Justin Lee and Adrian T. Kinsella prosecuted the case.
This case is part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. HSTF Sacramento comprises agents and officers from Homeland Security Investigations, Federal Bureau of Investigations, Drug Enforcement Administration, Northern California High Intensity Drug Trafficking Area, Central Valley High Intensity Drug Trafficking Area, and Sacramento County Sheriff’s Office with the prosecution being led by the United States Attorney’s Office for the Eastern District of California.
Placer County Man Pleads Guilty to Stealing Nearly $1.5 million in COVID-Relief Loans to Fund Lavish LifestyleRead the Press Release
Jedrek Upton, 45, of Lincoln, pleaded guilty to one count of wire fraud and one count of money laundering, U.S. Attorney Eric Grant announced.
According to court documents, between January 2021 and May 2022, Upton repeatedly lied on applications for COVID-19 disaster relief funds that he submitted on behalf of his businesses. The misrepresentations included false statements regarding the number of employees or payroll and that he would spend the money to alleviate economic injury caused by COVID-19. In support of these applications, Upton also submitted falsified IRS documents.
In reality, some of the businesses had no employees or payroll, and Upton spent much of the money received on personal expenses. Upton received nearly $1.5 million in ill-gotten loans from the United States, a large portion of which was ultimately forgiven after Upton falsely claimed that he had spent it on payroll. Instead of legitimate business expenses, the money that Upton received allowed him to fund a lavish lifestyle. He paid off personal credit cards, transferred money to other people, leased a Ferrari and a Lamborghini, and made a large down payment on a $2.7 million, 10-acre property.
In addition to pleading guilty, Upton agreed to forfeit his interest in the property he purchased and pay nearly $1.5 million in restitution to the United States.
This case is the product of an investigation by the IRS Criminal Investigation. Assistant U.S. Attorney Dhruv M. Sharma is prosecuting the case.
Upton is scheduled to be sentenced by Senior U.S. District Judge John A. Mendez on March 24, 2026. Upton faces a maximum statutory penalty of 20 years in prison and a $250,000 fine on the wire fraud count, and 10 years in prison and a $250,000 fine on the money laundering count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the federal Sentencing Guidelines, which take into account a number of variables.
Bakersfield Man Pleads Guilty to Illegal Possession of Explosives and Manufacturing MethamphetamineRead the Press Release
Matthew Henry Jacober, 44, of Bakersfield, pleaded guilty today to being a felon in possession of explosives and manufacturing crystal methamphetamine, U.S. Attorney Eric Grant announced.
According to court documents, in July 2025, Jacober possessed 50 pounds of dynamite, which he had secreted in a cave approximately 10 to 15 feet from a travel trailer where Jacober was residing. In 2021, Jacober was convicted in Kern County Superior Court of making a destructive device without a permit, a felony. As a convicted felon, Jacober was prohibited from possessing explosives. In addition, Jacober was in the process of manufacturing crystal methamphetamine in his trailer, where he possessed both finished product and methamphetamine in the process of changing from liquid to a crystal form.
This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kern County Sheriff’s Office Bomb Squad, and the Kern County Fire Department. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
Jacober is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on Feb. 17, 2026, Jacober faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for the explosives charge and a mandatory minimum statutory penalty of five years, a maximum statutory penalty of 40 years in prison, and a $5 million fine for manufacturing methamphetamine. 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.
Vallejo Felon Indicted for a Second Federal Firearms OffenseRead the Press Release
A federal grand jury returned a one-count indictment Thursday against Marquese Alvin Roberts, 36, of Vallejo, charging him with being a felon in possession of a firearm, U.S. Attorney Eric Grant announced.
According to court documents, on May 3, 2025, law enforcement received numerous reports of multiple gunshots heard on the 1600 block of Fairgrounds Drive, in Vallejo. With the assistance of a CHP helicopter and other agencies, officers investigated these reports. During the investigation, officers in the helicopter observed Roberts remove a firearm from a vehicle and conceal it in nearby bushes. They directed law enforcement officers on the ground to the location, where they arrested Roberts and recovered the firearm. At the time of the offense, Roberts was on supervised release following a federal conviction in 2018 for carrying a firearm during and in relation to a drug trafficking crime.
This case is the product of an investigation by the Vallejo Police Department, the American Canyon Police Department, the California Highway Patrol Air Unit, the FBI’s Solano County Violent Crimes Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Solano County District Attorney’s Office. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.
Roberts was arrested for a related supervised release violation on May 7, 2025, and remains in federal custody as a result of that violation.
If convicted, Roberts faces a maximum statutory penalty of 15 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the 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 gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
New Hampshire Man Indicted for Fraud Scheme that Stole over $700,000 in California Unemployment Insurance BenefitsRead the Press Release
A federal grand jury returned a 10-count indictment today against Anthony Mark Silva, 40, of Manchester, New Hampshire, charging him with nine counts of bank fraud and one count of aggravated identity theft, U.S. Attorney Eric Grant announced.
According to court documents, between July 2020 and June 2021, Silva executed a scheme to defraud the California Employment Development Department (EDD) by filing fraudulent unemployment insurance claims with EDD, seeking Pandemic Unemployment Assistance and other benefits under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. During the scheme, Silva collected personally identifiable information of numerous individuals—including names, birth dates, and Social Security numbers—which were used to file fraudulent unemployment insurance claims. The filings represented, among other things, that the claimants had recently lost employment or were unable to find employment due to the COVID-19 pandemic. These unemployment insurance claims were fraudulent because, for example, the claimants were not unemployed, they were not eligible for California unemployment insurance benefits, or Silva did not have authority to file claims on their behalf.
EDD approved dozens of the fraudulent claims and authorized Bank of America to mail out debit cards containing unemployment insurance benefits. Silva then activated the debit cards and spent the benefits on himself. The scheme sought and caused EDD and the United States to incur actual losses exceeding $700,000.
This case is the product of an investigation by the U.S. Department of Labor Office of Inspector General and EDD’s Investigation Division. Special Assistant U.S. Attorney Nchekube Onyima and Assistant U.S. Attorney Shea J. Kenny are prosecuting the case.
If convicted, Silva faces a maximum statutory penalty of 30 years in prison and a $1 million fine on each of the bank fraud counts. Silva also faces a two-year mandatory prison sentence if convicted of aggravated identity theft, which must run consecutive to any sentence received on the other counts. 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 Employee of South Lake Tahoe Construction Company Convicted of Fraud and Identity TheftRead the Press Release
Following a six-day trial before U.S. District Judge Dena M. Coggins, Kami Elois Power, 54, of Gardnerville, Nevada, was found guilty today of 11 counts of wire fraud, three counts of bank fraud, and three counts of aggravated identity theft, U.S. Attorney Eric Grant announced.
According to court documents and evidence presented at trial, between November 2019 and May 2023, Power worked as an office manager and controller at a family-owned construction company in South Lake Tahoe. During her employment, Power embezzled more than $1.4 million from the company. She disguised more than $700,000 of these fraudulent transfers as payments made to vendors that the company worked with—under fake profiles she created in the names of real companies, as well as fake companies that reflected her own initials, such as “KEP Inc. Sale” and “KPI.” She disguised additional fraudulent transfers as payments for payroll or reimbursements. Power also used the company’s credit card to make unauthorized personal purchases and paid down the balance of her own personal credit cards. Power used the money she stole to purchase two houses, several new cars and ATVs, and a horse. She also spent the money on field-level seats at football games and a $29,000 Hawaii vacation.
This case is the product of an investigation by the Federal Bureau of Investigation, the El Dorado County District Attorney’s Office, and the South Lake Tahoe Police Department. Assistant U.S. Attorneys Elliot Wong and Dhruv Sharma are prosecuting the case.
Power is scheduled to be sentenced by Judge Coggins on Feb. 27, 2026. Power faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count of wire fraud, 30 years in prison and a $1 million fine for each count of bank fraud, and a mandatory two-year sentence on each count of 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.
Significant Case Activities During ShutdownRead the Press Release
U.S. Attorney Eric Grant announces actions taken during the recent lapse in appropriations when public affairs functions at the U.S. Attorney’s Office were significantly curtailed. This press release contains just a few examples of indictments, trial verdicts, and sentences that took place from Oct. 1 to Nov. 12, 2025.
“I extend my gratitude to the dedicated men and women of the U.S. Attorney’s Office who have remained on duty throughout this government shutdown,” said U.S. Attorney Grant. “Many employees continued the unseen daily work that protects our communities. And those who were not permitted to work eagerly sought a return to service. Their steadfast commitment under challenging conditions exemplifies true public service.”
Sentences
Dakota Jeremiah Pevino, aka Dakota Jeremiah Viggiano, 37, of Sacramento, was sentenced on Oct. 21, to 30 years in prison for sexual exploitation of a child. In 2022, Pevino took explicit photographs of a minor and distributed them along with video recordings of child sexual abuse. Pevino pleaded guilty on Aug. 20, 2024. Assistant U.S. Attorneys Druv Sharma and Kevin Khasigian prosecuted the case. The FBI is still seeking to identify potential victims of Pevino. Anyone with relevant information is asked to email the FBI at [email protected].
Andrew Michael Alonso, 36, of Fresno, was sentenced on Oct. 27, to 35 years in prison and a lifetime of supervised release for sexual exploitation of a minor, receipt of a visual depiction of a minor engaged in sexually explicit conduct, and committing a felony offense involving a minor while being a registered sex offender, in addition to being on California parole supervision with GPS location monitoring. In 2021, Alonso repeatedly asked a 13-year-old victim to create and send to him images of the victim engaged in sexually explicit conduct. Assistant U.S. Attorney David Gappa prosecuted the case.
On Nov. 10, Jamaine Barnes, 43, of Stockton, was sentenced to 31 years in prison for running a continuing criminal enterprise and related drug trafficking, firearms, and international money laundering offenses. Barnes was the lead defendant of a large organization who for years brought in fentanyl and other opioids from China, pressed them into counterfeit prescription pills, and sold them throughout Stockton, Sacramento, and elsewhere. He also made and sold meth-laced pills made to look like ecstasy pills. Assistant U.S. Attorney David Spencer prosecuted the case.
Trial Verdicts
On Oct. 15, a jury found Ranvir Singh, 42, of Sacramento, guilty of conspiracy to distribute cocaine and ketamine and one count of distribution of cocaine. According to court documents, in April 2021, Singh and two others were indicted for their involvement in a drug trafficking organization based in Sacramento and extending to the greater Toronto Area in Canada. Between October 2020 and March 2021, they arranged multiple kilogram-level drug deals with a Canadian undercover officer, both in Canada and California, using encrypted applications on their cellphones. Singh faces a mandatory minimum of 10 years in prison and a maximum statutory penalty of life in prison and a $10 million fine. Assistant U.S. Attorneys David Spencer and Haddy Abouzeid are prosecuting the case.
On Oct. 30, a jury found Christopher Guilford, 54, formerly of Sacramento, guilty of one count of making a false claim against the United States and eight counts of filing a false tax return. Guilford had filed nine false tax returns with the IRS in which he reported false income and false tax withholdings. For one of the tax return filings, Guilford received a refund of $1,172,446. The charges against Guilford stem from his use of a convoluted “redemption” scheme, used by tax protestors and sovereign citizens that has been repeatedly rejected by the courts. For the one count of making a false claim against the United States, Guilford faces a maximum statutory sentence of five years in prison and a fine up to $250,000. For each of the eight counts of filing a false tax return, Guilford faces a maximum statutory sentence of three years in prison and a fine of up to $250,000. Assistant U.S. Attorneys Brittany Gunter and Arelis Clemente are prosecuting the case.
On Oct. 31, a jury found Stanislav Yelizarov, 35, guilty of threatening the family of a federal law enforcement officer during a recorded telephone call he placed while an inmate in U.S. Penitentiary, Atwater. According to evidence presented at trial, Yelizarov threatened to kill the “whole family” of a federal law enforcement office in Maryland during a phone call to his mother and in threatening letters sent to the victim. Yelizarov faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Assistant U.S. Attorneys Robert Veneman-Hughes and Joshua Banister are prosecuting the case.
Indictments
On Oct. 2, Anibal Hernandez Santana, 63, of Sacramento, was indicted for incidents involving the discharge and possession of a firearm. On Sept. 18, 2025, Santana allegedly discharged a 9 mm handgun within 1,000 feet of the grounds of a high school and an elementary school. On Sept. 19, 2025, while standing on the sidewalk around the block from the KXTV/ABC 10 station, in front of 2555 3rd Street, Hernandez Santana fired into the air in the direction of the station. He then drove to the front of the station and fired three shots directly into the building’s lobby. No one was injured. If convicted, he faces up to five years in prison and a fine of up to $250,000. Santana is also facing state charges. His next federal appearance, a status conference, is scheduled for June 1, 2026. Assistant U.S. Attorney Elliot Wong is prosecuting the case.
On Oct. 23, Fresno restaurant operator Robert “Bobby” Salazar, 63, was charged in two indictments. The first indictment charges Salazar, Thomas Qualls, 40, and Shylo Badiali, 43, with engaging in a scheme to defraud an insurance company by setting fire to a commercial property. On April 2, 2024, a fire broke out at the vacant Bobby Salazar’s restaurant on Blackstone Avenue in Fresno. According to court documents, Salazar’s hired Qualls and Badiali to set the fire and then claimed to his insurance company that he had nothing to do with the arson. He was ultimately paid out more than $900,000 for his insurance claim. The second indictment charges Salazar with possession of a handgun with an obliterated serial number that was found during the execution of a search warrant at Salazar’s residence. A status conference is scheduled for the three defendants on Jan. 21, 2026. Assistant U.S. Attorneys Robert Veneman-Hughes and Brittany Gunter are prosecuting the case.
The charges in an indictment are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Fresno Man Sentenced to 40 Years in Prison for Child Exploitation OffensesRead the Press Release
Monico Erich Gastelo, 44, of Fresno, was sentenced Monday 40 years in prison for sexual exploitation of a child and receipt and distribution of child pornography, U.S. Attorney Eric Grant announced.
The sentence will be followed by 15 years of supervised release, during which time Gastelo’s access to children, computers, and the internet will be restricted. He was also ordered to pay $40,000 in monetary penalties, and he will be required to register as a sex offender upon his release from custody.
According to court documents, in January 2019, Gastelo created a social media account in which he pretended to be an 18-year-old boy. Gastelo used the account to converse with younger individuals and request sexually explicit content from them.
Between January and March 2020, Gastelo began communicating on Wickr, Snapchat, and Telegram with other individuals sexually attracted to children. He sent and received multiple images and videos of child sexual abuse material (CSAM) on these platforms. Forensic review of Gastelo’s phones revealed that he had more than 1,500 images and videos of suspected CSAM.
Gastelo’s conduct escalated in May 2020. A minor victim told law enforcement that he had been sexually exploited online and that an individual later identified as Gastelo had added him as a friend on Snapchat. Gastelo sent over a dozen images of his penis to this minor victim and enticed the victim to send back CSAM.
This case was the product of an investigation by the Central California Internet Crimes Against Children Task Force, specifically the Fresno Police Department, the Fresno County Sheriff’s Office, and Homeland Security Investigations. Assistant U.S. Attorney David Gappa and the Justice Department’s Child Exploitation and Obscenity Section Trial Attorney McKenzie Hightower prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Fresno Man Sentenced for Child Exploitation OffensesRead the Press Release
Monico Erich Gastelo, 44, of Fresno, California, was sentenced yesterday after being convicted of sexual exploitation of a child and receipt and distribution of child pornography. The Court sentenced Gastelo to 40 years in prison followed by 15 years of supervised release, during which time Gastelo’s access to children, computers, and the internet will be restricted. He was also required to register as a sex offender for the rest of his life upon his release from custody.
According to court documents, in January 2019, Gastelo created a social media account in which he pretended to be an 18-year-old boy to enhance his chances of connecting with minors. Gastelo used the account and others to converse with minors — some of whom disclosed that they were 12 years-old — and repeatedly demanded sexually explicit content from them.
Between Jan. 1, 2020, and March 23, 2020, Gastelo began communicating on messaging platforms with other individuals sexually attracted to children. He sent and received multiple images and videos of child sexual abuse material (CSAM) on these platforms, describing the type of videos and images he preferred, including requesting videos of sex acts performed by toddlers. Forensic review of Gastelo’s phones revealed that he had more than 1,500 images and videos of CSAM saved on his device.
Gastelo’s conduct escalated in May 2020. A minor victim disclosed to law enforcement that he had been sexually exploited online and that an individual later identified as Gastelo had added him as a friend on social media. Gastelo had sent over a dozen images of his genitalia to this minor victim and insisted the minor reciprocate.
Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division and U.S. Attorney Eric Grant for the Eastern District of California made the announcement.
The Central California Internet Crimes Against Children Task Force, specifically the Fresno Police Department, the Fresno County Sheriff’s Office, and Homeland Security Investigations investigated the case.
Trial Attorney McKenzie Hightower of the Justice Department’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney David Gappa for the Eastern District of California prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Final Aryan Brotherhood Gang Member Sentenced to Life in Prison for Conspiracy Convictions Including Conspiracy to Commit MurderRead the Press Release
Danny Troxell, 72, of Fresno, was sentenced today by Senior U.S. District Judge Kimberly J. Mueller to life in prison for participating in a RICO conspiracy and a conspiracy to commit murder, U.S. Attorney Eric Grant announced.
According to evidence produced at trial, between 2011 and 2019, Aryan Brotherhood (or AB) members and associates engaged in racketeering activity, committing multiple acts involving murder, conspiracies to murder, and drug trafficking crimes. The trial evidence showed that Aryan Brotherhood members oversaw a significant heroin and methamphetamine trafficking operation from their California prison cells using smuggled cellphones to direct drug trafficking activities, order murders, and oversee other criminal activities inside and outside of the prisons.
At trial, the jury heard evidence that the Aryan Brotherhood elevated Troxell to a position of leadership on the gang’s three-man commission in the early 2000s when nearly all of the prominent AB members were housed in Pelican Bay state prison. In 2016, wiretaps by the Drug Enforcement Administration captured Troxell discussing gang business with another member. He explained that he viewed the gang as “blood in, blood out,” meaning you had to kill to enter the gang, and you could only leave it by being killed.
The wiretaps also caught Troxell ordering the murder of another AB member housed in Calipatria state prison. Law enforcement moved quickly to stop the plot and keep the targeted inmate from being harmed. The jury found Troxell guilty of RICO conspiracy and conspiracy to commit murder based upon the intercepted calls and testimony from other gang members.
The district court previously imposed life sentences on five other Aryan Brotherhood defendants in this case: Ronald Yandell, William Sylvester, Pat Brady, Jason Corbett, and Brant Daniel.
This case was the product of an investigation by the Drug Enforcement Administration with assistance from the California Department of Corrections and Rehabilitation, the Vallejo Police Department, the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the El Dorado County District Attorney’s Office, and the Nevada County Sheriff’s Office. Assistant U.S. Attorneys Jason Hitt, Ross Pearson, and David Spencer prosecuted the case.
This case is part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. HSTF Sacramento comprises agents and officers from Homeland Security Investigations, Federal Bureau of Investigations, Drug Enforcement Administration, Northern California High Intensity Drug Trafficking Area, Central Valley High Intensity Drug Trafficking Area, and Sacramento County Sheriff’s Office with the prosecution being led by the United States Attorney’s Office for the Eastern District of California.
Fresno Man Sentenced to 25 Years in Prison for Sexual Exploitation of a MinorRead the Press Release
Peter Yang, 34, of Fresno, was sentenced today to 25 years in prison for sexual exploitation of a child, U.S. Attorney Eric Grant announced.
The sentence will be followed by 15 years of supervised, during which time Yang’s access to children, computers, and the internet will be restricted. He was also ordered to pay $5,000 in restitution, and he will be required to register as a sex offender upon his release from custody.
According to court documents, between November 2021 and March 2022, Yang communicated with a 15-year-old victim in Missouri on the gaming platform Among Us, and then through Discord and FaceTime calls. Yang coerced the victim into creating and then transmitting sexually explicit images of the victim to Yang. Yang also discussed traveling from California to Missouri to meet the victim in person at a motel near the victim’s residence.
This case is the product of an investigation by the Christian County Sheriff’s Office in Missouri and the Central California Internet Crimes Against Children Task Force, with assistance from the National Center for Missing & Exploited Children. Assistant U.S. Attorney David Gappa prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
CVS Pharmacy Inc. Pays $18.2 Million to Resolve Alleged False Claims Act ViolationsRead the Press Release
CVS Pharmacy Inc. has paid a total of $18,282,280 to the United States and the State of California to resolve allegations that the company violated the Federal False Claims Act and the California False Claims Act when it knowingly submitted claims for reimbursement for certain prescribed medications to California’s Medi-Cal program that were not supported by applicable diagnosis and documentation requirements, U.S. Attorney Eric Grant announced today.
CVS is among the largest pharmacy chains in the United States, with more than 9,000 locations nationwide and more than 1,000 stores in California. CVS submits reimbursement claims for medications dispensed to beneficiaries of the Medi-Cal program—California’s Medicaid health care program administered by the California Department of Health Care Services (DHCS). Medi-Cal relies on both federal and state funding to provide health care to millions of Californians, including those with low incomes and disabilities.
Medi-Cal utilizes a “formulary” list that designates restrictions for certain listed drugs, including restrictions pertaining to diagnoses and required documentation that must be confirmed by the pharmacy before the drug can be prescribed. Drugs listed on the Medi-Cal formulary are commonly referred to as “Code 1” drugs. Medi-Cal will reimburse certain Code 1 drugs only for approved diagnoses, taking into account criteria such as the drug’s safety, efficacy, misuse potential, and cost. Pharmacies such as CVS serve the critical gatekeeping function of confirming and certifying that these Code 1 drugs are dispensed for the approved diagnoses. CVS may bill for drugs prescribed outside of the approved diagnoses, but it must submit a request to DHCS that includes a justification for the nonapproved use.
Today’s settlement resolves allegations that CVS failed to confirm and document the requisite diagnoses, and in some instances dispensed drugs for nonapproved diagnoses, then knowingly billed Medi-Cal for those prescriptions.
“This settlement demonstrates our commitment to protect the integrity of this critically important federal-state program serving low-income and disabled citizens of this District,” said U.S. Attorney Grant. “My office will continue working to ensure that pharmacies comply with important program regulations like those at issue here.”
“Proper billing of federal health care programs is essential and underpins the reliability of our health care system. Oversight is key to ensuring that compliance failures are remedied,” said Acting Chief Counsel to the Inspector General Susan Gillin of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Although CVS entered into a health care fraud settlement with the United States, CVS did not agree to compliance-related oversight with HHS-OIG through a corporate integrity agreement.”
This settlement includes the resolution of claims brought by a former CVS pharmacist under the qui tam or whistleblower provisions of the Federal False Claims Act. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery from that action. The qui tam case is captioned: U.S., et al. ex rel. Zimniski v. CVS Health Corporation, no. 2:19-cv-1118 (E.D. Cal.). As part of the settlement announced today, the whistleblower will receive approximately $3.3 million of the recovery proceeds.
This settlement is the result of a joint effort by the United States Attorney’s Office for the Eastern District of California and California’s Department of Medicaid Fraud and Elder Abuse, with assistance from HHS OIG and the Federal Bureau of Investigation. Assistant U.S. Attorney Catherine Swann handled the case for the U.S. Attorney’s Office.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Note: View the settlement agreement here:
cvs_settlement_agreement_-_executed.pdfBakersfield Tax Return Preparer Sentenced for Role in $25 Million Fraud SchemeRead the Press Release
Victor Cruz, 41, of Bakersfield, was sentenced today to 18 months in prison for participating in a scheme to submit fraudulent individual federal income tax returns that claimed $25 million in refunds, U.S. Attorney Eric Grant announced.
According to court records, between November 2019 and June 2023, Miguel Martinez, 42, a Mexican national residing in the United States illegally, led a scheme to file thousands of fraudulent tax returns that claimed millions of dollars in refunds. Martinez created fake businesses that reported to the IRS phony wages paid and withholding information for supposed employees. Martinez then filed thousands of individual income tax returns in the names of the supposed employees that claimed the employees were owed refunds based on the phony wages paid and withholding information that had been reported for them.
Cruz helped Martinez carry out the scheme by preparing and filing more than 500 of the fraudulent tax returns. This was approximately 10% to 15% of the total fraudulent tax returns for which Martinez was responsible. Cruz received thousands of dollars in fees from Martinez in exchange for his services.
The IRS actually paid out $2.3 million of the $25 million in refunds that were claimed by the fraudulent tax returns.
Martinez pleaded guilty and, in September 2024, was sentenced to six years in prison.
This case was the product of an investigation by the IRS Criminal Investigation. Assistant U.S. Attorney Joseph Barton prosecuted the case.
Sacramento Man Charged with Being Felon in Possession of a FirearmRead the Press Release
A federal grand jury returned a two-count indictment today against Cornelius Houston, 34, of Elk Grove, charging him with being a felon in possession of a firearm, U.S. Attorney Eric Grant announced.
According to court documents, on Aug. 15, 2025, Houston was found in possession of a loaded Glock handgun. On Oct. 7, he was found in possession of another Glock handgun. Houston is prohibited from possessing ammunition or firearms based on his prior felony convictions for robbery and transportation, sale, or distribution of a controlled substance.
This case is the product of an investigation by the Sacramento Police Department with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives. Special Assistant U.S. Attorney Brad Ng is prosecuting the case.
If convicted, Houston faces a maximum statutory penalty of 15 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the 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 gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case is also part of the Special Assistant United States Attorney program, a partnership between the United States Attorney’s Office and local District Attorney’s Offices. Special Assistant U.S. Attorneys remain employed by local District Attorney’s Offices, but they work on federal investigations and can prosecute cases in both state and federal court. This partnership allows the United States Attorney’s Office and local District Attorney’s Offices to partner to fight transnational organized crime and violent crime that impacts the region. The U.S. Attorney’s Office currently has Special Assistant U.S. Attorneys from the District Attorney’s Offices of Yolo, Placer, Fresno, and Sacramento Counties.