Eastern District of California
Press releases recorded for this federal judicial district.
Colorado Man, Operating Under the Nicknames “Penissmith” and “Botah” Indicted on Racketeering Charges Related to Darknet Marketplace AlphaBayRead the Press Release
FRESNO, Calif. — An indictment was unsealed on June 20, 2019, charging Bryan Connor Herrell, 24, with conspiring to engage in a racketeer influenced corrupt organization, U.S. Attorney McGregor W. Scott for the Eastern District of California and Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division announced.
According to court documents, Herrell was a moderator on the AlphaBay marketplace, an illegal website that operated on the so-called darknet. On AlphaBay, vendors and purchasers engaged in hundreds of thousands of illicit transactions for guns, drugs, stolen identity information, credit card numbers and other illegal items. At the time, AlphaBay was considered to be the world’s largest online drug marketplace.
Allegedly, as a moderator on AlphaBay, Herrell settled disputes between vendors and purchasers. He is also accused of serving as a scam watcher – providing a service dedicated to monitor attempts to defraud AlphaBay users. Herrell went by the monikers “Penissmith” and “Botah” and was paid in Bitcoin for his participation.
On June 1, 2017, a Fresno grand jury indicted the alleged founder of AlphaBay, Alexandre Cazes. On July 5, 2017, the Royal Thai Police, with assistance from the FBI and DEA, executed an arrest warrant for Alexandre Cazes at his residence in Bangkok, in connection with his alleged involvement with AlphaBay. At the time of his arrest, law enforcement discovered Cazes’s laptop open and in an unencrypted state. Agents and officers found several text files that identified the passwords/passkeys for the AlphaBay website, the AlphaBay servers, and other online identities associated with AlphaBay. The indictment against Cazes was dismissed as a result of his death. The investigation of AlphaBay and its former administrators continues.
This case was the product of an investigation by the Sacramento and Philadelphia Field offices of the Federal Bureau of Investigation. Assistant United States Attorneys Paul Hemesath and Grant B. Rabenn, and Senior Counsel Louisa K. Marion of the Department of Justice’s Computer Crime and Intellectual Property Section are prosecuting the case. The Philadelphia United States Attorney’s Office provided substantial assistance.
Herrell is currently in custody.
If convicted, Herrell faces a maximum statutory penalty of 20 years in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Arizona Man Charged with Attempted Sex Trafficking of A Child and Attempted Transportation of A Minor with Intent to Engage in Criminal Sexual ActivityRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Robert Frenchie McGriff, 39, of Mesa, Arizona, charging him with attempted sex trafficking and attempted interstate transportation with the intent to engage in criminal sexual activity of a minor female in Stanislaus County, U.S. Attorney McGregor W. Scott announced.
According to court documents, McGriff traveled by bus from Phoenix, Arizona to Turlock, California in June 2019 with the intent of retrieving a minor female in Turlock and transporting her to work for him as a prostitute.
This case was the product of an extensive investigation by the Stanislaus County Sheriff’s Department’s Special Prosecutions Unit and the Stockton Office of Homeland Security Investigations of the Department of Homeland Security. Assistant U.S. Attorney Brian W. Enos is prosecuting the case.
If convicted of either charge, McGriff faces a mandatory minimum sentence of ten years and maximum statutory penalty of life in prison, and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Twenty-One Drug Traffickers Associated with Nuestra Familia Arrested on Federal Charges in Kings and Tulare CountiesRead the Press Release
FRESNO, Calif. — As part of a multi-agency operation, over 50 individuals were arrested in California on federal and state charges in connection with their drug-trafficking activities after investigation into the criminal activities of individuals associated with the Nuestra Familia prison gang. The charges were announced by U.S. Attorney McGregor W. Scott, California Attorney General Xavier Becerra, Special Agent in Charge Sean Ragan of the FBI’s Sacramento Field Office, Kings County District Attorney Keith Fagundes, Tulare County District Attorney Tim Ward, Kings County Sheriff David Robinson, and Hanford Police Chief Parker Sever.
The defendants charged federally are:
1) SALVADOR CASTRO, JR., 49, of Pleasant Valley State Prison
2) RAYMOND LOPEZ, 31, of Pleasant Valley State Prison
3) JESSE JUAREZ, 28, of Visalia
4) DANIEL JUAREZ, 27, of Visalia
5) MICHAEL ROCHA, 36, of Visalia
6) ANGEL MONTES, 23, of Visalia
7) RAFAEL LOPEZ, 28, of Visalia
8) MANUEL BARRERA, 24, of Kettleman City
9) MANUEL GARCIA, 33, of Armona
10) JOANN BERNAL, 32, of Armona
11) RAMON AMADOR, 29, of Riverdale
12) RAUL LOPEZ, JR., 48, of Visalia
13) DONAVEN ADKINS, 41, of Hanford
14) RYAN GINES, 39, of Armona
15) DOUG GINES, 48, of Hanford
16) FLORENTINO GUTIERREZ, 37, of Hanford
17) JESUS NUNEZ, 19, of McFarland
18) MARIA NUNEZ, 22, of McFarland
19) LOUIS MOLINA, 48, of Hanford
20) ERNESTO ZIBRAY, 30, of Delano
21) TIFFANY FELLER, 31, of Riverdale.
According to court documents, in March 2019, various agencies partnered in an investigation into the Nuestra Familia prison gang and the Norteño street gang in Kings County. The investigation uncovered that Nuestra Familia was responsible for large-scale trafficking of methamphetamine and other controlled substances, as well as various firearms offenses and other violent crimes.
According to court documents, high-ranking Nuestra Familia members Salvador Castro, Jr. and Raymond Lopez used contraband cell phones from inside Fresno County’s Pleasant Valley State Prison to arrange the transport of illicit narcotics from drug sources in California and Mexico to a stash house in Kings County. From that stash house, gang members outside of the prison coordinated the preparation and delivery of the drugs to distributors throughout Kings and Tulare Counties. The complaint charges several other gang associates, including Angel Montes, Rafael Lopez, Daniel Juarez, Manuel Barrerra, Manuel Garcia, Joann Bernal, Ramon Amador, and Raul Lopez, Jr. with federal drug-distribution crimes.
U.S. Attorney Scott stated: "This coordinated law enforcement operation highlights how federal, state, and local law enforcement partners can work together to target gang activities that make our communities unsafe. When we work together in this way, we are more effective in achieving our shared goal of ensuring public safety. We are committed to combatting and reducing violent crime and drug trafficking, both inside and outside of prison walls."
"The fear and violence that criminal street gangs are perpetrating in our communities cannot be tolerated," said Attorney General Becerra. "We will continue to collaborate with our federal and local partners to reduce crime and keep our communities safe."
"The FBI is dedicated to disrupting and dismantling gangs through intelligence-driven investigations, new and longstanding initiatives, and partnerships—state, local, federal, and trans-national," said FBI Sacramento Field Office Special Agent in Charge Sean Ragan. "Yesterday's effort exemplifies our commitment to working with our partners to reduce the impact of gang violence and crime in the communities we serve."
This case was the product of an investigation by the Kings County Gang Task Force; Agents of the Special Operations Unit – a team of agents from the California Department of Justice and the California Highway Patrol; California Department of Corrections and Rehabilitation; the FBI, Kings County District Attorney's Office, and the Tulare County Sheriff's Office. Drug Enforcement Administration, Alcohol Tobacco and Firearms, U.S. Marshals Service, and Homeland Security Investigations all assisted with the takedown. Assistant United States Attorneys Kimberly Sanchez, Laurel Montoya, and Justin Gilio are prosecuting the case.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
All 21 defendants have been arrested. If convicted, they face a range of maximum sentences, including up to life in prison. Several of the defendants also face a range of mandatory minimum sentences ranging from between five to ten years in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Sureño Gang Members Indicted for Distributing Methamphetamine or Being A Felon in Possession of A FirearmRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned three indictments on June 13, 2019, against Armando Garcia, aka Thien Quach, 44, of Los Angeles; Manuel Reyes, 35, of Sacramento; Elton Padilla, 35, of Sacramento; Julio Adrian Jiminez-Sevilla, aka "Mudo", 31, of Burns, Oregon[KCS(1] ; Manuel Rubin Perez, aka "Rascal", 33, of Orland, CA; Gregorio Rojas, 28, of Orland, CA; and Jorge Zarate, 23, of Orland, CA, charging them with distributing methamphetamine, U.S. Attorney McGregor W. Scott announced. In addition, Jiminez-Sevilla is charged with being a felon in possession of a firearm. On June 13, 2019, a federal grand jury returned an additional indictment against Erick Stephen Perez, 32, of Orland, CA, charging him with being a felon in possession of a firearm.
According to court documents, defendants Garcia, Reyes, Padilla, Manuel Rubin Perez, Rojas and Zarate are linked to Sureño street gangs that claim allegiance to the Mexican Mafia. The majority of these federal indictments target gang members who allegedly trafficked in narcotics and firearms and held senior positions within their respective organizations. The Garcia, Reyes, Padilla, Jiminez-Sevilla, Manuel Rubin Perez, Rojas, and Zarate indictments also charge conspiracy to distribute methamphetamine.
This case is the product of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by the Federal Bureau of Investigation, California Department of Corrections and Rehabilitation (CDCR) Special Service Unit, CDCR Adult Parole, CDCR High Desert State Prison Investigations, California Highway Patrol, Sacramento Sheriff’s Department, Sacramento County Probation, Sacramento Police Department, Susanville Police Department, Lassen County Sheriff's Department, Bureau of Land Management, North State Major Investigations Team, Glenn County Sheriff's Department, Glenn County Probation, Glenn County Investigation Task Force, Reno Police Department, and Tehama County Sheriff's Office.
The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. Assistant United States Attorney Vincenza Rabenn is prosecuting these cases.
This case was also a product of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
If convicted, defendants Garcia, Reyes, Padilla, Jiminez-Sevilla, Manuel Rubin Perez, Rojas, and Zarate face a maximum statutory penalty of life in prison and a $10,000,000 fine. Defendant Erick Perez faces a maximum statutory penalty of 10 years in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Sherman Oaks Men Sentenced and Plead Guilty to Conspiring to Launder Money from Illegal Gambling BusinessRead the Press Release
SACRAMENTO, Calif. — Atir Dadon, 34, of Sherman Oaks, was sentenced on June 14, 2019, to 22 months for conspiring to launder money, and co-defendant Adam Atari, 35, of Sherman Oaks, pleaded guilty today to conspiring to launder money, U.S. Attorney McGregor W. Scott announced.
According to court documents, Dadon and Atari each conspired with other co-defendants to launder the cash proceeds of an illegal gambling business run by Orel Gohar, 28, of San Francisco, and Yaniv Gohar, 35 of Berkeley, that placed and maintained video slot machines at businesses in Northern California, including Sacramento and other locations in the Eastern District of California.
According to court documents, between October 2016 and November 2017, Dadon conspired to launder money with Orel Gohar and Bar Shani, 27, of San Francisco. They agreed that Shani and Dadon would take the cash from the gambling business and use it to pay the workers in their cosmetics business. In exchange, Shani and Dadon would arrange for Orel Gohar to receive checks from the cosmetics business. Dadon indicated in the memo lines on the checks that Orel Gohar had provided consulting and training services when in fact, he had not. They used code words in their conversations about the transactions, referring to the money as bottles of alcohol or other non-cash items. Shani and Dadon laundered over $150,000 from the Gohars’ gambling business. Shani pleaded guilty on April 26.
According to court documents, between January 2015 and December 2017, Atari conspired to launder money with Orel Gohar and Yaniv Gohar. They agreed that the Gohars would use cash from the gambling business to pay Atari’s employees in his home improvement and construction businesses. In exchange, Atari would send checks and electronic transfers from his businesses to Yaniv Gohar. Atari laundered approximately $490,000 from the Gohars’ gambling business. To cover up his money laundering, Atari lied to the FBI and directed his employees to lie to the FBI about the nature of his transactions with the Gohars.
This case is the product of an investigation by the Federal Bureau of Investigation and the California Department of Justice – Bureau of Gambling Control. Assistant U.S. Attorneys Matthew M. Yelovich and Miriam R. Hinman are prosecuting the case.
Yaniv Gohar and Orel Gohar fled the United States upon their release in December 2017 and remain at large. Anyone with information about their whereabouts should call the FBI at (916) 746-7000.
Charges are pending against co-defendants Raz Razla, 48, of Sherman Oaks, and Eran Buhbut, 33, of Oakland. These charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Atari is scheduled to be sentenced by U.S. District Judge Garland E. Burrell, Jr., on August 30, 2019. Atari faces a statutory maximum penalty of 20 years in prison and a fine of up to $500,000, or twice the value of the monetary instrument or funds involved, whichever is greater. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Sacramento Man Pleads Guilty to Distributing Narcotics on the Dark Web and Illegally Possessing FirearmsRead the Press Release
SACRAMENTO, Calif. — Jose Robert Porras III, 22, of Sacramento, pleaded guilty today to distributing a controlled substance and illegally possessing firearms, United States Attorney McGregor W. Scott announced.
According to court documents, Porras distributed marijuana and alprazolam (Xanax) on Wall Street Market using the vendor account "TheFastPlug" and on Dream Market using the vendor account "Canna_Bars." Wall Street Market and Dream Market were websites on the dark web that allowed individuals to sell narcotics and other illegal goods and services. On May 22, 2018, investigators searched a storage unit held by Porras and found numerous firearms, including a D&D Sales Model A uzi-style firearm, a Norinco MAK 90 Sporter rifle, and a Smith and Wesson .44 caliber revolver. At the time of the search, Porras had already sustained a prior felony conviction, specifically, a 2017 state felony conviction for possession/purchase for sale of narcotics, making it illegal for him to possess a firearm.
This case was the product of an investigation by the Northern California Illicit Digital Economy Task Force (NCIDE), comprised of agents from Homeland Security Investigations (HSI), the Federal Bureau of Investigation, the U.S. Postal Inspection Service, and the Drug Enforcement Administration. The NCIDE Task Force is a joint, federal task force focused on targeting all forms of dark-web and cryptocurrency activity in the Eastern District of California. Assistant United States Attorneys Grant B. Rabenn and Paul Hemesath are prosecuting the case.
Porras is scheduled for sentencing on September 9, 2019, before U.S. District Judge Kimberly J. Mueller. Porras will remain in custody pending his sentencing. Porras faces a maximum statutory penalty of 20 years in prison and a $1,000,000 fine for the charge of distributing narcotics, and a maximum statutory penalty of 10 years in prison and a $250,000 fine for the charge of felon in possession of a firearm. 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.
Northern California Man and Woman Charged with Sex Trafficking of A ChildRead the Press Release
SACRAMENTO, Calif. — Eva Symone Christian, 22, of Sacramento, was arrested on June 14, 2019, and Robert Pierre Duncan, 24, of Galt, was arrested by FBI agents on May 31, 2019. Duncan and Christian are charged in a two-count indictment, unsealed on June 14, 2019, that was returned by a federal grand jury in Sacramento on May 30, 2019. The indictment charges Duncan and Christian with conspiring to engage in sex trafficking, and sex trafficking of a child, U.S. Attorney McGregor W. Scott announced.
According to court documents, between September and October 2018, Duncan and Christian recruited, transported, harbored, and maintained a minor victim, knowing that the minor would be caused to engage in prostitution.
This case was the product of an investigation by the Federal Bureau of Investigation, California Department of Justice, Sacramento Police Department, Sacramento Sheriff’s Department, and the Oakland Police Department. Assistant U.S. Attorneys André M. Espinosa and Brian A. Fogerty are prosecuting the case.
If convicted of conspiracy to engage in sex trafficking, Duncan and Christian face a maximum statutory penalty of life in prison, and a $250,000 fine. If convicted of sex trafficking of a child, Duncan and Christian face a mandatory minimum sentence of ten years in prison and a maximum statutory penalty of life in prison, and a maximum fine of $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Granite Bay Man Sentenced for Multi-Million Dollar Product Substitution Fraud on Federal Government AgenciesRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Kimberly J. Mueller sentenced Jim A. Meron, 54, of Granite Bay, today to 33 months in prison and three years of supervised release on two counts of wire fraud arising out of a government-procurement fraud scheme, U.S. Attorney McGregor W. Scott announced. As part of the sentence, the Court ordered Meron to pay restitution of $1,622,729.13 to dozens of victims. The Court also entered a final order forfeiting more than $1.7 million in assets seized during the investigation of Meron’s crimes.
According to court documents, between May 2011 and July 2017, Meron used two office supply businesses he operated to defraud federal government agencies out of as much as $3.5 million, in thousands of transactions, by substituting and delivering cheaper, generic versions of expensive, name-brand products his customers ordered, and pocketing the price difference.
Meron’s companies, WOW Imaging Products LLC and Time Enterprises LLC, contracted to sell office supplies to federal agencies through two web-based government sales portals, GSA Advantage, operated by the General Services Administration, and DOD EMall, operated by the Department of Defense. After Meron received payments for the premium products his customers ordered, he obtained compatible products from his suppliers that cost him a fraction of what his customer paid for the brand-name products they ordered. Meron then substituted and delivered those cheaper products for the more expensive products his customers ordered, and retained the difference in cost. Over time, Meron extended his substitution scheme to nearly all orders for those name-brand products, and never intended to deliver what his customers ordered.
This case is the product of an investigation by the General Services Administration Office of Inspector General and the Defense Criminal Investigative Service. Assistant U.S. Attorneys André M. Espinosa and Kevin Khasigian are prosecuting the case.
Former Social Security Employee of West Sacramento Pleads Guilty to Conspiracy and Theft ChargesRead the Press Release
SACRAMENTO, Calif. — Eric Lemoyne Willis, 43, of West Sacramento, pleaded guilty today to conspiracy to defraud the United States, theft of government property, and aggravated identity theft, United States Attorney McGregor W. Scott announced.
According to court documents, Willis and his co-defendant, Darron Dimitri Ross, conspired to steal public money from the Social Security Administration (SSA). Willis was an SSA employee from approximately 2003 until his departure in January 2018, and from at least 2016 he was as an Operations Supervisor in the South Sacramento and Lodi, California, field offices. During this timeframe, Willis used his authority as an SSA employee to access the confidential Social Security records of numerous Social Security beneficiaries. These records contained personally identifiable information (PII) including names, addresses, social security numbers, dates of birth, account numbers, family information, and benefit payment amounts. Willis would seek out PII for beneficiaries who used direct deposit for payment of large benefits. Willis then gave this PII to Ross who resided in North Carolina.
According to court documents, Ross's alleged role in these crimes included calling numerous SSA field offices across the country and using the stolen PII to impersonate the beneficiaries. Ross also opened at least 44 online bank accounts under fraudulent identities to receive diverted SSA benefit payments. If Ross succeeded in convincing an SSA representative that he was the beneficiary, he would request that the beneficiary's direct deposit account be changed to one of the conspirators' fraudulent accounts. The SSA then proceeded to deposit benefit payments into the fraudulent account until the fraud was detected. The conspirators were then free to withdraw the funds at ATMs and spend the money using debit cards. Ross also transferred a portion of the stolen proceeds to Willis for his participation in these crimes.
SSA has identified at least 160 beneficiaries nationwide who were targeted by these crimes, and the total fraud loss suffered by SSA has exceeded $480,000. Willis and Ross spent the proceeds of their crimes on, among other things, trips to Las Vegas and luxury items including Rolex watches.
This case is the product of an investigation by the Social Security Administration – Office of the Inspector General and the Federal Bureau of Investigation. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
Willis remains released on bond pending sentencing, and his co-defendant, Ross, remains released on bond pending trial. Ross has pleaded not guilty to the charges in the indictment. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Willis is scheduled to be sentenced by U.S. District Judge William B. Shubb on September 9, 2019. Willis faces a maximum statutory penalty of 17 years in prison and a $750,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Mexican National Indicted for Being an Alien Unlawfully in the United States in Possession of A FirearmRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Ismael Huazo-Jardinez, 33, a Mexican citizen residing in Yuba City, CA, charging him with two counts of possessing a firearm while being an alien unlawfully in the United States, U.S. Attorney McGregor W. Scott announced.
According to court documents, Huazo-Jardinez is suspected of having been the driver in a fatal car accident that killed three people, the parents and one child of a family of four, when the vehicle crashed into their mobile home as they slept, on May 4, 2019, in Sutter County. Huazo-Jardinez was arrested at the scene of the accident. Authorities impounded the vehicle, a Chevrolet Avalanche registered to Huazo-Jardinez, and later recovered a handgun from the vehicle’s center console. A database query revealed that the handgun had been reported stolen in Boise, Idaho.
According to court documents, a Beretta handgun was found during a search of Huazo-Jardinez’s residence. Huazo-Jardinez is alleged to be a citizen and national of Mexico who has twice been removed from the United States and has not been granted permission to return. As an alien unlawfully in the United States, Huazo-Jardinez is prohibited by federal statute from possessing a firearm.
This case is the product of an investigation by the California Highway Patrol, Sutter County Sheriff’s Department, and U.S. Immigration and Customs Enforcement's (ICE) Enforcement and Removal Operations (ERO). Assistant United States Attorneys James Conolly and Shea Kenny are prosecuting the case. The Sutter County District Attorney’s Office is prosecuting Huazo-Jardinez in the state case related to the May 4, 2019 fatal car accident.
This case was brought as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN was reinvigorated in 2017 as part of the Department of Justice's renewed focus on targeting violent criminals, directing all U.S. attorney's Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
If convicted, Huazo-Jardinez faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
West Sacramento Man Sentenced to 5 Years in Prison for Assaulting a Federal Officer and Possessing a Firearm in Furtherance of a Drug Trafficking CrimeRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge John A. Mendez sentenced Dustin Joseph Albini, 36, of West Sacramento, today to five and a half years in prison and five years of supervised release, for assaulting a federal officer and possessing a firearm in furtherance of a drug trafficking crime, U.S. Attorney McGregor W. Scott announced.
The crimes were charged in two separate cases and Albini pleaded guilty to both in February 2019.
According to court documents, in July 2015, state and federal law enforcement executed a search warrant at a marijuana grow operation in Modoc County. During execution of the warrant, a Bureau of Land Management agent attempted to take Albini into custody. Albini resisted arrest and engaged in a struggle with the agent that resulted in the agent and Albini going to the ground. While on the ground, Albini grabbed the agent’s testicles and bit his leg.
According to court documents, when law enforcement arrested Albini in September 2015 on the first indictment, they searched Albini’s vehicle and found a .45-caliber Colt MK IV handgun, a .40-caliber Glock 27 handgun, and a backpack containing marijuana and hundreds of vials of liquid containing tetrahydrocannabinol, a Schedule I controlled substance. As part of his guilty plea, Albini admitted to possessing the vials with the intent to distribute them and possessing the handguns to protect and otherwise further his drug distribution activities.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Matthew Thuesen prosecuted the case.
Arrested in Granite Bay, Contra Costa County Woman Is Sentenced to 3½ Years in Prison for Mail Theft SchemeRead the Press Release
SACRAMENTO, Calif. — Toni Tinay, 24, of Oakley, was sentenced today by U.S. District Judge John A. Mendez to three and a half years in prison for bank fraud, aggravated identity theft, and possessing counterfeited U.S. Postal Service keys, U.S. Attorney McGregor W. Scott announced. Tinay was also sentenced to serve three years of supervised release following her prison term and pay $2,936 in restitution to victims.
According to court documents, between February and August 2018, Tinay participated in a scheme to defraud banks in which she and at least one accomplice used counterfeited U.S. Postal Service keys to break into residential mailboxes throughout the Eastern and Northern Districts of California. Tinay and the accomplice stole mail from the mailboxes and collected bankcards, personal and business checks, and government-issued IDs. Tinay then fraudulently activated and used the bankcards to withdraw cash at ATMs and make purchases at retail establishments. On August 29, 2018, when she was arrested in Granite Bay, she and her accomplice were found to be in possession of stolen mail and at least four counterfeited U.S. Postal Service keys, which they intended to use to steal additional mail.
This case was the product of an investigation by the U.S. Postal Inspection Service, the Placer County Sheriff’s Department, and the California Highway Patrol. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
“Drfrosty” Indicted for Distribution of Methamphetamine from Modesto Using the DarknetRead the Press Release
SACRAMENTO, Calif. — On June 6, 2019, a federal grand jury returned a five-count indictment against Modesto resident Omar Isho, 37, charging him with distributing methamphetamine and possession with intent to distribute methamphetamine, U.S. Attorney McGregor W. Scott announced.
According to court documents, Isho allegedly sold methamphetamine on darknet marketplaces such as the Dream Market, Empire Market, and Silk Road 3.1 using the vendor name “DrFrosty.” Federal agents conducted undercover purchases of methamphetamine from his accounts. Surveillance and postal records linked Isho to the parcels, which contained methamphetamine hidden inside jigsaw puzzle boxes.
This case is the product of an investigation by the Northern California Illicit Digital Economy (NCIDE) Task Force, a multiagency taskforce composed of law enforcement agents from the U.S. Postal Inspection Service, Homeland Security Investigations, the FBI, and the Drug Enforcement Administration. Assistant U.S. Attorney Quinn Hochhalter is prosecuting the case.
If convicted, Isho faces a maximum statutory penalty of 40 years in prison and a $5 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Stockton Men Sentenced on Firearms ChargesRead the Press Release
SACRAMENTO, Calif. — Somnang Chea, 34, of Stockton, was sentenced today to five years and three months in prison for unlawful possession of ammunition, U.S. Attorney McGregor W. Scott announced.
In a related case, on March 7, 2019, Phirum Phin, 31, of Stockton, was sentenced to seven years and eight months in prison for unlawful possession of a firearm.
According to court documents, Chea and Phin ran from a car after Stockton police officers attempted a traffic stop. They fled in opposite directions, each holding a firearm. Chea possessed a fully automatic handgun without a serial number. The gun was equipped with a laser sight and had a high-capacity magazine loaded with 22 rounds of ammunition. Chea also possessed 5.88 grams of methamphetamine. Phin possessed a stolen Glock handgun with a laser sight and a high-capacity magazine. Chea and Phin both have previous felony convictions and are prohibited from possessing firearms and ammunition.
Both cases were the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Stockton Police Department, and the San Joaquin County District Attorney’s Office. Assistant U.S. Attorney Cameron L. Desmond prosecuted the cases.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Rocklin Man Sentenced to 20 Years in Prison for the Sexual Exploitation of ChildrenRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Kimberly J. Mueller sentenced Aaron Reed, 30, of Rocklin, to 20 years in prison today for sexual exploitation of children, receiving child pornography, and transferring obscene material to minors, U.S. Attorney McGregor W. Scott announced.
According to court documents, between January 5, 2015, and June 28, 2015, Reed persuaded two minors in Canada to take photographs and videos of themselves engaging in sexually explicit conduct and then send them to him through Kik, a social messaging application. At the time, one minor was 14 years old and the other was nine years old. He also sent obscene material to a minor whom he knew was under 16 years of age.
“Homeland Security Investigations (HSI) is committed to public safety, which includes protecting the children and youth of our communities who are most vulnerable to online predators,” said Ryan L. Spradlin, Special Agent in Charge, Homeland Security Investigations (San Francisco and Northern California). “We are witnessing an epidemic of the sexual exploitation of children across all sectors of our society. It’s imperative that parents and their children understand the dangers of online predators, take every step possible to safely navigate internet activity and participation in social media activities, and to contact law enforcement for help.”
This case was the product of an investigation by HSI. Assistant U.S. Attorney Matthew D. Segal 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 Sentenced to 10 Years in Prison for Marijuana Cultivation in Wilderness Area in the Sequoia National ForestRead the Press Release
FRESNO, Calif. — Felipe Angeles Valdez-Colima (Valdez), 36, of Michoacán, Mexico was sentenced today to 10 years in prison for conspiring to manufacture, distribute, and possess with intent to distribute marijuana in the Kiavah Wilderness area of the Sequoia National Forest, U.S. Attorney McGregor W. Scott announced.
U.S. District Judge Dale A. Drozd ordered Valdez to pay $7,620 in restitution to the U.S. Forest Service for the damage he caused to the National Forest.
According to court documents, Valdez and his co-defendants, Mauricio Vaca-Bucio, 31, and Rodolfo Torres-Galvan, 30, both of Mexico, were apprehended after a two-month investigation. Law enforcement officers saw Valdez and Torres emerge from the forest at a drop point historically used by marijuana cultivators to access grow sites in that remote area. The men entered a Camaro driven by Vaca and were later stopped in Weldon. Officers found freshly harvested marijuana in their vehicle and located over 1,800 marijuana plants at the grow sites on the interconnected trails from the drop point. The officers also found highly toxic illegal pesticides, including carbofuran and zinc phosphide, in the Camaro and at the grow sites.
The Kiavah Wilderness is part of the National Cooperative Land and Wildlife Management Area and the Bureau of Land Management Jawbone Butterbredt Area of Critical Environmental Concern, which was designated to protect wildlife and preserve Native American heritage.
This case is the product of an investigation by the U.S. Forest Service with assistance from Enforcement and Removal Operations of Immigration and Customs Enforcement (ICE), Campaign Against Marijuana Planting (CAMP), California Department of Fish and Wildlife, California National Guard, Kern County Sheriff’s Office, and Kern County Probation Office. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
On May 13, Torres was sentenced to three years and 10 months in prison. Vaca is scheduled for sentencing on Aug. 5. He faces a minimum statutory penalty of 10 years in prison and a maximum statutory penalty of life in prison, along with 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.
Citrus Heights Man Sentenced to over 24 Years in Prison for Receipt of Child PornographyRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Kimberley J. Mueller sentenced Emanuel Mois, 26, of Citrus Heights today to 24 years and four months in prison to be followed by a lifetime term of supervision, for receipt of child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, between November 2016 and February 2017, Mois knowingly received and saved images depicting children engaged in sexually explicit activity onto his cellphone. At the time he received the images, Mois was on parole monitor for a state conviction for child pornography and was required to wear an ankle monitor. In addition, he had a prior state conviction for sexual battery of a minor.
In pronouncing the sentence, Judge Mueller cited Mois’ aggravated criminal history, which included numerous offenses against children, and the need to protect the public from someone who appears to be “a sexually deviant child predator.”
“Child pornography is the end-product of the victimization of our communities’ youngest and most vulnerable members,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “It is a crime that can have an effect on victims well after the material is initially produced and distributed. Mois’ actions are particularly concerning since he was on parole for assaulting a child at the time he was found with child pornography. The FBI is committed to working with our local, state, and federal law enforcement partners to ensure anyone who produces, obtains or shares such exploitive and illegal content faces justice to both punish those who exploit children but also to deter the behavior.”
This case was the product of an investigation by the FBI, the Citrus Heights Police Department, and the Roseville Police Department. Assistant U.S. Attorney Amy Schuller Hitchcock 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.
Tulare County Man Charged with Unlawfully Possessing a Machinegun and CocaineRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment on Thursday against Francisco Fernandez, 26, of Earlimart, charging him with possessing cocaine for distribution, unlawfully possessing a machinegun, and possession of an unregistered firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, on April 19, 2019, agents searched Fernandez’s residence and storage unit and found cocaine, several assault rifles, a Glock pistol that was converted into a machinegun, and several auto sears. An auto sear is a part that is used to convert a semi‑automatic pistol into a fully automatic machinegun. Fernandez is prohibited from possessing firearms because he is an unlawful user of cocaine.
This case is the product of an investigation by Bureau of Alcohol, Tobacco, Firearms and Explosives and Homeland Security Investigations. Assistant U.S. Attorney Thomas Newman is prosecuting the case.
If convicted, Fernandez faces a maximum statutory penalty of 20 years in prison and a $1 million fine for possessing with the intent to distribute cocaine and a maximum statutory penalty of 10 years in prison and a $250,000 fine for the firearms charges. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Woman Arrested for Defrauding Homeless Individuals and a Nonprofit Serving the HomelessRead the Press Release
SACRAMENTO, Calif. — Sherwana Lynn Marcus, also known as Sherwana Granderson and Sherwana Santana, 47, was arrested today on a 36-count federal indictment charging her with wire fraud for a scheme that defrauded homeless individuals and a housing assistance nonprofit that was receiving federal funding, U.S. Attorney McGregor W. Scott announced.
According to court documents, between May 2014 and March 2015, Marcus used her employment at a nonprofit organization in the Sacramento area to divert funding for homelessness services to herself and also to defraud homeless individuals. She submitted false paperwork to the nonprofit organization so that it would issue rent checks under a program to house the homeless, and she then funneled the checks through a bank account that she controlled. She also altered, or caused to be altered, money orders that had been collected from individuals seeking housing assistance and funneled those money orders through the bank account that she controlled. The individuals providing the money orders believed they were contributions to rent or savings that they would get back.
According to court documents, Marcus stole at least approximately $54,133 through the scheme. At least in part as a result of her diverting rent checks and money orders to herself, she caused at least one person to lose housing and become homeless.
This case is the product of an investigation by the U.S. Department of Housing and Urban Development, Office of Inspector General. Assistant U.S. Attorney Miriam R. Hinman is prosecuting the case.
If convicted, Marcus faces a maximum statutory penalty of 20 years in prison and a $250,000 fine on each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Aryan Brotherhood Members and Associates Charged with Racketeering for Directing Murders and Other Violent Crimes from Inside California PrisonsRead the Press Release
SACRAMENTO, Calif. — Sixteen members and associates of a prison-based gang have been charged after a long-running investigation into drug trafficking and murders inside and outside of California’s prisons.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney McGregor W. Scott, and Special Agent in Charge Chris Nielsen of the U.S. Drug Enforcement Administration (DEA) made the announcement.
According to a criminal complaint unsealed today, nine defendants have been arrested on federal racketeering and other charges for extensive, organized criminal activity from within California’s most secure prisons. The allegations include murders, drug trafficking and other violent crimes. The complaint charges California State Prison inmates Ronald Yandell, 56; Daniel “Danny” Troxell, 66; William Sylvester, 51; Travis Burhop, 46; Brant Daniel, 44; Donald Mazza, 48, Pat Brady, 48; Michael Torres, 55; and Jason Corbett, 47. At the outset of this investigation, Yandell, Troxell, Sylvester, Burhop, Torres and Corbett were all serving life sentences for murder.
Five other individuals were also arrested as part of the investigation: Samuel Keeton, 40, of Menifee; Jeanna Quesenberry, 52, of Sacramento; Kevin MacNamara, 39, of La Palma; Kristen Demar, 44, of Citrus Heights; and Justin Petty, 37, of Los Angeles. Warrants have been issued for the arrests of Kathleen Nolan 64, of Calimesa, and Matthew Hall, 50, of Manhattan Beach.
U.S. Attorney Scott stated: “Today we are announcing a significant blow to the leadership of a violent criminal enterprise run from inside California prisons. Despite the incarceration of its leaders in the state’s most secure prisons, the Aryan Brotherhood has maintained its deadly influence over members, associates and others both inside and outside prison walls. The charges allege multiple murders of those who run afoul of the gang, as well as an active drug trafficking operation that spans multiple counties and states. The prosecution of these individuals, if convicted, will help to dismantle and weaken this dangerous organization.”
“This extensive investigation revealed the violent underbelly of a race-based prison gang and organized crime enterprise operating behind bars. Agents exposed Aryan Brotherhood operations providing law enforcement opportunities to successfully intervene and save lives,” stated DEA Special Agent in Charge Chris Nielsen. “This case demonstrates our unwavering commitment to combat drug related gang violence not only on the streets, but also behind prison walls.”
“Neutralizing prison gangs is a top priority for the department, and we are committed to stopping illegal activities conducted by them to further their criminal organizations and instill fear in people,” said Secretary Ralph Diaz, California Department of Corrections and Rehabilitation. “Actions like this operation demonstrate how effective our partnerships are with local, state, and federal agencies so that together we can target dangerous individuals in and out of prison. We value the hard work of our staff and our partners, and are proud of the tremendous work that went into this operation.”
According to court documents, between 2011 and 2016, Aryan Brotherhood (AB) members and associates engaged in racketeering activity, committing multiple acts involving murder and drug trafficking offenses. Yandell and Sylvester oversaw a significant heroin and methamphetamine trafficking operation from their shared cell. They used smuggled-in cellphones to direct their drug trafficking activity from their cell to the streets of Sacramento and other California cities. Using a contraband cellphone, Yandell and Sylvester communicated with AB members and associates to direct drug trafficking activities, membership in the AB, order murders, and oversee other criminal activities.
The complaint alleges that the AB members murdered five other inmates as part of their gang activities and conspired to murder several others. The complaint alleges that on Oct. 7, 2011, Sylvester murdered an inmate at Folsom State Prison and, on Aug. 12, 2015, AB associates carried out an order to murder a rival prison gang member at Folsom State Prison. In addition, the complaint alleges that on Oct. 15, 2016, on Corbett’s order an AB associate murdered an inmate at High Desert State Prison in Susanville, AB member Daniel killed an inmate at Salinas Valley prison on Oct. 29, 2016, and AB members Corbett and Brady murdered an inmate on July 20, 2018, at High Desert State Prison as part of their role in the gang. The complaint further describes multiple other murder plots.
The complaint details the drug trafficking activities of the AB. Members and associates oversaw an extensive drug-trafficking network that operated on the streets of Sacramento, Southern California, Missouri, Las Vegas, and elsewhere. On Aug. 11, 2016, MacNamara, a lawyer, and Demar, posing as a paralegal, visited Sylvester in Folsom State Prison in order to smuggle methamphetamine, cellphones, and tobacco. When the contraband was discovered, Sylvester, using a cellphone, advised Demar to blame their contraband smuggling on the Aryan Brotherhood in order to get out of trouble.
According to the complaint, Petty sent heroin, methamphetamine, cellphones, and other items concealed in food packages to Aryan Brotherhood members at Folsom State Prison and High Desert State Prison. In addition, the investigation uncovered a drug trafficking partnership between AB members Yandell and Burhop with Torres a Mexican Mafia member.
This case is the product of an investigation by the DEA with substantial investigative 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 El Dorado County District Attorney’s Office, and the Nevada County Sheriff’s Office.
If convicted, the defendants face a range of maximum sentences, including up to life in prison. The facts outlined in the complaint could trigger the federal death penalty for several defendants, and a number of the defendants also face a range of mandatory minimum sentences of five to 10 years in prison. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Aryan Brotherhood Members and Associates Charged with Racketeering for Directing Murders and Other Violent Crimes from Inside California PrisonsRead the Press Release
Sixteen members and associates of a prison-based gang have been charged after a long-running investigation into drug trafficking and murders inside and outside of California’s prisons.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney McGregor W. Scott for the Eastern District of California and Special Agent in Charge Chris Nielsen of the U.S. Drug Enforcement Administration (DEA) made the announcement.
According to a criminal complaint unsealed today, nine defendants have been arrested on federal racketeering and other charges for extensive, organized criminal activity from within California’s most secure prisons. The allegations include murders, drug trafficking and other violent crimes. The complaint charges California State Prison inmates Ronald Yandell, 56; Daniel “Danny” Troxell, 66; William Sylvester, 51; Travis Burhop, 46; Brant Daniel, 44; Donald Mazza, 48, Pat Brady, 48; Michael Torres, 55; and Jason Corbett, 47. At the outset of this investigation, Yandell, Troxell, Sylvester, Burhop, Torres and Corbett were all serving life sentences for murder.
Five other individuals were also arrested as part of the investigation: Samuel Keeton, 40, of Menifee; Jeanna Quesenberry, 52, of Sacramento; Kevin MacNamara, 39, of La Palma; Kristen Demar, 44, of Citrus Heights; and Justin Petty, 37, of Los Angeles. Warrants have been issued for the arrests of Kathleen Nolan 64, of Calimesa, and Matthew Hall, 50, of Manhattan Beach.
According to court documents, between 2011 and 2016, Aryan Brotherhood (AB) members and associates engaged in racketeering activity, committing multiple acts involving murder and drug trafficking offenses. Yandell and Sylvester oversaw a significant heroin and methamphetamine trafficking operation from their shared cell. They used smuggled-in cellphones to direct their drug trafficking activity from their cell to the streets of Sacramento and other California cities. Using a contraband cellphone, Yandell and Sylvester communicated with AB members and associates to direct drug trafficking activities, membership in the AB, order murders, and oversee other criminal activities.
The complaint alleges that the AB members murdered five other inmates as part of their gang activities and conspired to murder several others. The complaint alleges that, on Oct. 7, 2011, Sylvester murdered an inmate at Folsom State Prison and, on Aug. 12, 2015, AB associates carried out an order to murder a rival prison gang member at Folsom State Prison.
In addition, the complaint alleges that on Oct. 15, 2016, on Corbett’s order an AB associate murdered an inmate at High Desert State Prison in Susanville, AB member Daniel killed an inmate at Salinas Valley prison on Oct. 29, 2016, and that AB members Corbett and Brady murdered an inmate on July 20, 2018, at High Desert State Prison as part of their role in the gang. The complaint further describes multiple other murder plots.
The complaint details the drug trafficking activities of the AB. Members and associates oversaw an extensive drug-trafficking network that operated on the streets of Sacramento, Southern California, Missouri, Las Vegas and elsewhere. On Aug. 11, 2016, MacNamara, a lawyer, and Demar, posing as a paralegal, visited Sylvester in Folsom State Prison in order to smuggle methamphetamine, cellphones and tobacco. When the contraband was discovered, Sylvester, using a cellphone, advised Demar to blame their contraband smuggling on the AB in order to get out of trouble.
According to the complaint, Petty sent heroin, methamphetamine, cellphones and other items concealed in food packages to AB members at Folsom State Prison and High Desert State Prison. In addition, the investigation uncovered a drug trafficking partnership between AB members Yandell and Burhop with Torres a Mexican Mafia member.
The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the DEA with substantial investigative 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 El Dorado County District Attorney’s Office and the Nevada County Sheriff’s Office.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Siskiyou County Man Pleads Guilty to Major Fraud Against the United States for Taking FEMA Grant FundsRead the Press Release
SACRAMENTO, Calif. — Samuel Thomas Lanier, 40, of Dunsmuir, pleaded guilty today to seven counts of major fraud against the United States, U.S. Attorney McGregor W. Scott announced.
According to court documents, from approximately June 2013 to March 2018, Lanier engaged in a scheme to defraud the United States by submitting, or causing to be submitted, false reimbursement requests to the Federal Emergency Management Agency (FEMA) in connection with federal grants awarded to Siskiyou and Shasta County Fire Chiefs Associations to assist them in recruiting and training new firefighters.
In June 2013 and June 2014, respectively, the Siskiyou and Shasta County Fire Chiefs Associations were awarded grants as part of the Staffing for Adequate Fire and Emergency Response (SAFER) program. Each grant was over $1 million. The purpose of these grants was to assure that communities have adequate protection from fire-related hazards, and to help the recipients attain and maintain 24-hour staffing.
Lanier, as an owner or executive of two companies located in Dunsmuir, was hired by the Fire Chiefs Associations to administer these grants. In this capacity, Lanier knowingly submitted to FEMA false and fraudulent reimbursement requests, seeking and obtaining reimbursement for goods and services that were not, in fact, actually obtained on behalf of the fire associations. In so doing, Lanier caused a gross loss to the United States of over $500,000.
This case is the product of an investigation by the Major Frauds & Corruption Unit of the Department of Homeland Security, Office of Inspector General. Assistant U.S. Attorney Amy Schuller Hitchcock is prosecuting the case.
Lanier is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on September 16. He faces a maximum statutory penalty of 10 years 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.
Nicaraguan National Pleads Guilty to Conspiring to Distribute Cocaine and Marijuana on the DarknetRead the Press Release
SACRAMENTO, Calif. — Eddy Steven Sandoval Lopez, 23, a Nicaraguan national residing in Sacramento, pleaded guilty today to conspiracy to distribute controlled substances, U.S. Attorney McGregor W. Scott announced.
According to court documents, Sandoval Lopez distributed cocaine and marijuana on a darknet site, Dream Market, using the vendor accounts “CokeWave,” “SafeDealsDirect,” and “HerbanFarmer.” The Dream Market allowed individuals to sell narcotics and other illegal goods and services. In return for his cocaine and marijuana sales, Sandoval Lopez received $97,891 in bitcoin from his customers.
This case is the product of an investigation by the Northern California Illicit Digital Economy Task Force (NCIDE), composed of agents from Homeland Security Investigations, the Federal Bureau of Investigation, the U.S. Postal Inspection Service, and the Drug Enforcement Administration. The NCIDE Task Force is a joint federal task force focused on targeting all forms of darknet and cryptocurrency activity in the Eastern District of California. The Sacramento County Sheriff’s Department also assisted in this investigation. Assistant U.S. Attorneys Grant B. Rabenn and Paul Hemesath are prosecuting the case.
Sandoval Lopez is scheduled for sentencing on August 26 before U.S. District Judge Kimberly J. Mueller. Sandoval Lopez faces a maximum statutory penalty of 20 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Roseville Firearms Dealer Pleads Guilty to Using Peace Officers’ Identities to Purchase Firearms and to the Sale of a Firearm in Violation of State LawRead the Press Release
SACRAMENTO, Calif. — Joseph John Deaser IV, 49, of Arizona, pleaded guilty today to one count of aggravated identity theft and one count of an illegal sale of a firearm by a federally licensed dealer in violation of state law, U.S. Attorney McGregor W. Scott announced.
Under state law, California has an approved roster of firearms that may be sold to the public. A Federal Firearms Licensee is required to make sure any handgun sold is on the approved roster. There is an exemption, however, that permits licensed dealers to sell “non-roster” firearms, or firearms that do not appear on the approved roster, to sworn peace officers. Peace officers who own non-roster firearms may sell them to the public in a private sale, as long as the sale is brokered by a Federal Firearms Licensee.
According to court documents, Deaser was a federally licensed firearm dealer who owned and operated Capital Gun Club, a members-only gun club in Roseville, California. Between December 2014 and April 2018, in order to circumvent California’s law, Deaser conducted straw purchases of new non‑roster firearms using the names and personally identifying information of peace officers that he had obtained through legitimate firearms transactions. By falsely reporting sales to peace officers, Deaser obtained new “non-roster” firearms registered to peace officers that he then sold to the public.
In order to complete many of the transactions, Deaser completed and signed federal and state firearm transaction forms that the purchaser was required to complete using an officer’s identity as the purchaser. Deaser also placed his finger print — almost always his middle finger — on the state firearm transaction forms in the box designated for the “Purchaser’s Right Thumb Print.” In all, Deaser used the identities of six law enforcement officers to obtain approximately 50 non-roster handguns that he subsequently sold to members of the public, including himself.
This case is the product of an investigation by the U.S. Bureau of Alcohol, Tobacco, and Firearms with assistance from the California Depart of Justice’s Bureau of Firearms. Assistant U.S. Attorneys Michael D. Anderson and Shelley D. Weger are prosecuting the case.
Deaser is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on August 22. Deaser faces a maximum statutory penalty of five years in prison and a $250,000 fine for the illegal sale of a firearm by a licensed dealer in violation of state law and a mandatory two-year prison term consecutive to any other sentence for aggravated identity theft. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Sacramento Man Sentenced to 3 Years in Prison for Selling Fertilizer as a Fat-Burning PillRead the Press Release
SACRAMENTO, Calif. — Scott Edward Cavell, 36, of Sacramento, was sentenced today by U.S. District Judge John A. Mendez to three years in prison for causing misbranded drugs to be introduced into interstate commerce, U.S. Attorney McGregor W. Scott announced.
U.S. Attorney Scott stated: “Cavell thought he could trick regulators. He was wrong. It’s past time for him to learn that we will ensure that these types of schemes are stopped to keep the community safe.”
“Drugs that are produced and distributed outside of the FDA’s oversight present the prospect of harm to consumer health,” said Special Agent in Charge Lisa L. Malinowski, FDA Office of Criminal Investigations Los Angeles Field Office. “The FDA will continue to work to prevent the illegal online sales of dangerous, unapproved drugs and we’re committed to protecting consumers from criminals who put profits above the health and safety of the U.S. public.”
“Homeland Security Investigations (HSI) will continue to identify, investigate and bring to justice individuals, like Cavell, who traffic unsafe products into the hands of American consumers that could cause serious and irreversible harm,” said Ryan L. Spradlin, Special Agent in Charge, Homeland Security Investigations (San Francisco and Northern California). “Individuals who choose to circumvent drug regulations should continue looking over their shoulders. HSI and our law enforcement partners are committed to uncovering even the most secret of schemes.”
San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated, “Postal Inspectors have worked closely with the U.S. Attorney’s Office and our partners in law enforcement in operations just like this one to keep dangerous drugs out of the communities we serve.”
According to court documents, between 2015 and 2017, Cavell, with others, developed a scheme to market and sell a drug, 2,4-Dinitrophenol (also known as DNP), as a weight loss drug and “fat burner” despite knowing that DNP is not approved by the FDA as a substance for human consumption. Cavell sold DNP in pill form and called it a fertilizer — a term under which is it legally sold in other circumstances.
Cavell admitted that he controlled websites that marketed the drug as a supplement while at the same time discouraging its use. He proceeded to sell DNP pills on another website, thefertizerwarehouse.com, for the purpose of misleading U.S. Food and Drug Administration regulators.
DNP has been commercially used to manufacture dyes and wood preservatives, as a fertilizer, and as a pesticide. The U.S. Food and Drug Administration has declared that DNP is too toxic to be used for human consumption under any circumstances.
According to court documents, Cavell collected at least $763,000 for compounding cheap fertilizer into pills for human consumption.
This case was the product of an investigation by the U.S. Food and Drug Administration Office of Criminal Investigations, Drug Enforcement Administration, Homeland Security Investigations, and the U.S. Postal Inspection Service. Assistant U.S. Attorney Paul Hemesath prosecuted the case.
Madera County Woman Pleads Guilty to Aiding and Abetting Production of Child PornographyRead the Press Release
FRESNO, Calif. — A Madera County woman pleaded guilty today to sexual exploitation of children, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney McGregor W. Scott.
Ashley Maddox, 32, pleaded guilty to one count of aiding and abetting the production of child pornography before U.S. District Judge Dale A. Drozd.
According to court documents, in June 2017, Maddox came to the attention of law enforcement during a child pornography investigation of a man in Florida. An examination of the Florida man’s electronic devices revealed that between November 2015 and April 2016, he and Maddox had communicated, via the internet and on their cellphones, about their mutual sexual interest in minors. Maddox requested that he send her images and video recordings that depicted the Florida man sexually abusing a prepubescent minor victim. Maddox received from him over 20 images and videos that depicted the minor victim engaged in sexually explicit conduct. Maddox also created and sent to this individual images and videos depicting a prepubescent minor.
This case is the product of an investigation by the Central California Internet Crimes Against Children (ICAC) task force, a federally and state-funded task force with agents from federal, state, and local agencies. The Central California ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Homeland Security Investigations (HSI) agents in Fresno, California and Fort Pierce, Florida investigated this case. The Madera County Sheriff’s Office assisted early in the investigation. Trial Attorney Nadia Prinz of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney David Gappa of the Eastern District of California are prosecuting the case.
Maddox is scheduled to be sentenced by Judge Drozd on August 26 in Fresno. She faces a minimum statutory penalty of 15 years in prison and a maximum of 30 years in prison, up to a $250,000 fine, and up to a lifetime of supervised release. 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.
Madera County Woman Pleads Guilty to Aiding and Abetting Production of Child PornographyRead the Press Release
A Madera County woman pleaded guilty to aiding and abetting the production of child pornography today, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney McGregor Scott of the Eastern District of California.
Ashley Maddox, 32, pleaded guilty to one count of aiding and abetting the production of child pornography before U.S. District Court Judge Dale A. Drozd. Sentencing is set for August 26.
According to admissions made in connection with her guilty plea, Maddox was initially identified in the course of a child pornography investigation into a separate target in Florida. An examination of the Florida target’s electronic devices revealed that between November 2015 and April 2016, he and Maddox had communicated via the internet and mobile-based applications about their mutual sexual interest in minors. In the course of these communications, Maddox requested that this individual send her images and video recordings which depicted the Florida man sexually abusing a prepubescent minor victim. Maddox received from him over 20 images and videos that depicted the minor victim engaged in sexually explicit conduct. Maddox also created and sent to this individual images and videos depicting a prepubescent minor.
This case is the product of an investigation by the Central California Internet Crimes Against Children (ICAC) task force, a federally and state-funded task force with agents from federal, state and local agencies. The Central California ICAC investigates online child exploitation crimes, including child pornography, enticement and sex trafficking. Homeland Security Investigations (HSI) agents in Fresno, California, and Fort Pierce, Florida, investigated this case. The Madera County Sheriff’s Office assisted early in the investigation.
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.
Two Mexican Nationals Indicted for Transporting Approximately 14,800 Counterfeit Oxycodone Pills Containing FentanylRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment Thursday against Ivan Lopez, 34, of Mexico, and Erick Olivas Lopez, 39, of Mexico, charging them with conspiracy and possession with intent to distribute at least 400 grams of a substance containing fentanyl, U.S. Attorney McGregor W. Scott announced.
According to court documents, on April 25, 2019, the defendants were found in possession of approximately 14,799 fentanyl-laced counterfeit oxycodone pills, weighing approximately 1.6 kilograms, during a traffic stop in Sacramento.
This case is the product of an investigation by the Tri-County Drug Enforcement Team (TRIDENT), the U.S. Drug Enforcement Administration, and the California Highway Patrol. Assistant United States Attorney David W. Spencer is prosecuting the case.
If convicted, Lopez and Olivas Lopez each face a minimum statutory penalty of 10 years and a maximum of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Tulare County Man Indicted on Methamphetamine Trafficking ChargesRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Alejandro Cabrera-Gallegos, 37, of Porterville, charging him with distribution of methamphetamine and possession with intent to distribute methamphetamine, U.S. Attorney McGregor W. Scott announced.
According to court documents, on May 2, 2019, Cabrera distributed one pound of methamphetamine to an individual in Tulare County. On May 14, 2019, Cabrera was arrested in Tulare County attempting to distribute five pounds of methamphetamine. An additional one pound of methamphetamine was seized during a search warrant executed at Cabrera’s residence in Porterville on May 14, 2019.
This case is the product of an investigation by the Drug Enforcement Administration and the Porterville Police Department. Assistant U.S. Attorneys Kathleen Servatius and Katherine Schuh are prosecuting the case.
If convicted, Cabrera faces a mandatory minimum statutory penalty of 10 years in prison, a maximum statutory penalty of life in prison, and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Sacramento Area Attorney Indicted for Filing False Tax ReturnsRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment today against Scott Norris Johnson, 57, of Carmichael, charging him with three counts of making and subscribing a false tax return, U.S. Attorney McGregor W. Scott and Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division announced.
According to the indictment, Johnson owned and operated Disabled Access Prevents Injury Inc. (DAPI), a legal services corporation. First using DAPI, and later using a law firm, Johnson filed thousands of lawsuits in the Eastern District of California and elsewhere. Johnson named himself as the plaintiff in the lawsuits and made claims under the Americans with Disabilities Act of 1990, the California Disabled Persons Act, and the California Unruh Civil Rights Act.
Under the Small Business Job Protection Act of 1996, payments related to lawsuit settlements or awards are taxable unless they were paid on account of personal physical injury or physical sickness. Johnson, however, allegedly materially underreported the taxable income he received from lawsuit settlements and awards on his income tax returns for tax years 2012, 2013, and 2014. By understating his income on his tax returns, Johnson and DAPI paid little to no income tax for tax years 2012, 2013 and 2014.
This case is the product of an investigation by the Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Katherine T. Lydon and Trial Attorney Tim Russo of the Tax Division are prosecuting the case.
If convicted, Johnson faces a maximum statutory penalty of three years in prison and a $250,000 fine for each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Mendota Prisoner Sentenced to over 8 Years in Prison for Mailing Threats to Murder a Federal JudgeRead the Press Release
FRESNO, Calif. — Cyrus Dennis Braswell, 57, was sentenced Monday by U.S. District Judge Dale A. Drozd to eight years and one month in prison for three counts of mailing threatening communications, U.S. Attorney McGregor W. Scott announced.
On February 13, a federal jury found Braswell guilty of mailing threats against a federal judge in the District of Alaska who had sentenced Braswell in 1998. According to court documents and evidence presented at trial, while an inmate at Mendota Federal Correctional Institute in Fresno County, Braswell mailed communications to Alaska in which he threatened to murder the judge after he got out of prison.
This case was the product of an investigation by the Federal Bureau of Investigation, the U.S. Marshals Service, and the Bureau of Prisons. Assistant U.S. Attorneys Laura D. Withers and Kirk E. Sheriff prosecuted the case.
Braswell currently remains in the custody of the Bureau of Prisons, and he will serve the new sentence after he completes his original 1998 sentence.
Former Fresno Resident Charged with Illegally Brokering the Sale of Military Arms to a Foreign Government and Money LaunderingRead the Press Release
FRESNO, Calif. — Ara Dolarian, 58, was arrested on Wednesday, May 15, in Fresno on a criminal complaint charging him with illegally brokering the sale of military-grade arms and munitions, money laundering, and conspiracy, U.S. Attorney McGregor W. Scott announced.
According to court documents, Dolarian was the owner and president of Dolarian Capital Inc. (DCI), an arms brokering company operating in Fresno; Washington, DC; and Sophia, Bulgaria. Dolarian is a United States citizen residing in Sophia, Bulgaria. Beginning in 2013 and continuing through 2014, the U.S. Department of State denied DCI licenses to broker international arms deals. During this time period, in which DCI was not authorized to broker international arms deals, Dolarian allegedly attempted to broker a multi-million dollar transfer of high‑explosive bombs, rockets, military-grade firearms, and aircraft-mounted cannons from Eastern Europe and South Africa to the government of Nigeria.
In furtherance of this arms deal, it is alleged that in June 2014, Dolarian executed sales contracts with Societe D’Equipments Internationaux (SEI), a French arms brokering company acting on behalf of Nigeria, for the purchase and transfer of high‑explosive bombs, rockets, military-grade firearms, and aircraft-mounted cannons worth more than $8.5 million. Dolarian submitted a brokering application with the U.S. State Department in June 2014 for the proposed deal with Nigeria. This brokering application, along with a later one, was never approved by the State Department.
Without approval from the State Department, Dolarian allegedly accepted approximately $8.3 million from Nigeria and its broker, SEI. These funds were, in part, funneled by Nigeria through a purported furniture company in Hong Kong. Then they were routed through numerous shell accounts held by Dolarian, and others. Soon after obtaining the funds, Dolarian used them to pay off personal expenses, such as federal and state tax debts, and to buy a BMW SUV. In February 2015, the federal government seized over $6 million that remained in Dolarian’s accounts. Civil forfeiture proceedings related to that seizure are currently pending (Case No. 1:15-cv-954-DAD).
“Homeland Security Investigations’ (HSI) national security priorities include the investigation of violations of the arms export and money laundering control laws of the United States,” said Ryan L. Spradlin, HSI Special Agent in Charge. “Illegal arms brokering represents a threat, not only to U.S. national security, but to the security of the international community.”
This case is the product of an investigation by Homeland Security Investigations. This matter is being prosecuted by Assistant U.S. Attorneys Grant B. Rabenn and Jeffrey Spivak, and Department of Justice Trial Attorney Christian Ford of the National Security Division’s Counterintelligence and Expert Control Section.
Dolarian made his initial appearance on the charges on Thursday and is scheduled for a detention hearing on May 20.
If convicted of unlicensed arms brokering, Dolarian faces a maximum statutory penalty of 20 years in prison and a $1 million fine; a maximum statutory penalty of five years in prison and a $250,000 fine for conspiracy, and a maximum statutory penalty of 20 years in prison and a fine of up to $500,000 or up to twice the value of the property involved in the transactions, whichever is greater for money laundering. 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.
Clovis Man Sentenced to Almost 3 Years in Prison for Bank Fraud and Aggravated Identity TheftRead the Press Release
FRESNO, Calif. — Johnny Kajitani Jr., 47, of Clovis, was sentenced Monday to two years and 10 months in prison for bank fraud and aggravated identity theft, U.S. Attorney McGregor W. Scott announced. In addition, U.S. District Judge Dale A. Drozd ordered Kajitani to pay almost $44,000 in restitution to his various victims.
According to court documents, Kajitani obtained the social security number of an individual without her knowledge. In October 2012, he used that social security number to apply for membership with a local credit union. Kajitani then used that social security number to apply for and obtain from the credit union a $30,000 vehicle loan and a Platinum Visa credit card with a $7,500 limit. The credit union ultimately suffered a loss of over $30,000.
Furthermore, in 2014, Kajitani obtained the personally identifiable information and social security number of another individual. In September 2014, Kajitani opened four credit cards using that social security number without the consent of the victim. After Kajitani defaulted on these credit cards, four different banks suffered a combined loss of almost $30,000.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Laura D. Withers prosecuted the case.
Ceres Resident Sentenced to over 8 Years in Prison for Crystal Meth DeliveryRead the Press Release
FRESNO, Calif. — Jose Manuel Sotelo-Mendoza (Sotelo), 27, of Ceres, was sentenced today to eight years and four months in prison for conspiring to distribute and possess with intent to distribute 15 pounds of crystal methamphetamine, U.S. Attorney McGregor W. Scott announced.
Sotelo’s sentence follows his guilty plea earlier this year. According to court documents, Sotelo and his co-defendant Oscar Ivan Salazar-Avalos (Salazar), 29, of Mexico, delivered 15 pounds of crystal methamphetamine to an undercover officer in Delano after Salazar negotiated with the officer for the delivery of the drug for $3,400 per pound for a total of $51,000. Salazar and Sotelo met the source of supply in Castaic in the northern part of Los Angeles County to obtain the methamphetamine. Salazar was recently sentenced to 6 years and 9 months in prison for the drug conspiracy.
This case was the product of an investigation by the Central Valley High Intensity Drug Trafficking Area Task Force, consisting of law enforcement officers of Homeland Security Investigations, the California Highway Patrol, the Bureau of Investigation of the California Department of Justice, the Fresno Police Department, and the Fresno County Sheriff’s Office. Assistant U.S. Attorney Karen A. Escobar prosecuted the case.
Grass Valley Man Sentenced for Child Pornography and Online Child Enticement CrimesRead the Press Release
SACRAMENTO, Calif. — Samuel C. Thompson, 34, of Grass Valley, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to 10 years and four months in prison for receipt of child pornography and attempting to use the internet to entice a child to engage in sexual activity, U.S. Attorney McGregor W. Scott announced.
“Homeland Security Investigations (HSI) (San Francisco and Northern California) is committed to public safety, which includes protecting the children and youth of our communities who are most vulnerable to online predators,” said Ryan L. Spradlin, Special Agent in Charge, Homeland Security Investigations. “We can’t arrest our way out of this problem – the real key to combatting online sexual predators is teaching parents and their children about the dangers of online predators and where to go for help. HSI will continuing working with its federal, state, and local law enforcement partners throughout the Bay Area and Northern California in this crucial endeavor.”
According to court documents, between August 2012 and March 2013, Thompson used a peer-to-peer file sharing software program to download child pornography files from the internet. He was charged in case 2:13-cr-273-GEB with receipt of child pornography and pleaded guilty in May 2016. That case was the product of an investigation by Homeland Security Investigations.
According to court documents, in 2016, while Thompson was on supervised pretrial release in the 2013 case, he posted an online advertisement seeking to meet and teach a “younger lover.” After an undercover Placer County Sheriff’s detective replied to the advertisement, Thompson arranged to meet what he believed would be a 13-year-old girl for a sexual encounter. He was arrested when he arrived at a park in Auburn, where he planned to carry out that sexual encounter. He was charged in case 2:16-cr-232-GEB with attempted online enticement of a minor. That case was the product of an investigation by the Placer County Sheriff’s Office and the Federal Bureau of Investigation.
“The FBI will always work with its law enforcement partners to protect the innocence of the children in the communities we serve,” said Assistant Special Agent in Charge, Tom Osborne. “Thompson continued to pose as a threat to minors by attempting to contact a teen for sex while awaiting sentencing for child pornography charges.”
Assistant U.S. Attorney Matthew G. Morris prosecuted both cases.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Former VA Podiatry Chief and Sacramento CEO Convicted for Health Care Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — A federal jury found Anthony Lazzarino, 68, former Chief of Podiatry for the Veterans Affairs’ (VA) Northern California Health Care System, and Peter Wong, 61, founder and CEO of Sunrise Shoes and Pedorthic Service Corporation, guilty of health care fraud and conspiracy to commit wire fraud, U.S. Attorney McGregor W. Scott announced.
According to evidence presented at trial, between March 2008 and February 2015, Lazzarino and Wong engaged in a scheme to defraud the VA by billing for custom work and services that were prescribed but not supplied in shoes delivered to veterans. In addition, Lazzarino, Wong, and Jai Aing Chen, who separately pleaded guilty on December 6, 2016, agreed to make materially false statements to the VA regarding where the shoes were manufactured, in the course of applying for a national contract worth over $11 million per year.
This case is the product of an investigation by the Department of Veterans Affairs Office of Inspector General, Department of Veterans Affairs Police Service, Homeland Security Investigations, and Federal Bureau of Investigation. Assistant U.S. Attorneys Matthew M. Yelovich and Lee S. Bickley are prosecuting the case.
Lazzarino and Wong are scheduled to be sentenced by U.S. District Judge John A. Mendez on August 27. They face a maximum statutory penalty of 10 years in prison and a $250,000 fine for each health care fraud count, and five years in prison and a $250,000 fine for the wire fraud conspiracy 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.
Three Plead Guilty to Tax Fraud Conspiracy that Sought Nearly $1 Million in Fraudulent Tax RefundsRead the Press Release
SACRAMENTO, Calif. — Sequoiya D. Harris, 35, former resident of Sacramento and Stockton; John A. Owens Jr., 32, of Sacramento; and Dionne Thomas, 53, of Galt, pleaded guilty today to participating in a federal tax refund fraud conspiracy, U.S. Attorney McGregor W. Scott announced.
According to court documents, from at least February 2009 through April 2013, Harris, Owens, Thomas, and co-defendant Joe E. Rodriguez Jr. conspired to submit false tax returns in the names of themselves and others to obtain tax refunds from the Internal Revenue Service based on false documents and information. The defendants used hundreds of fraudulent W-2 forms from multiple purported employers to make it appear as if the people listed on the returns worked at those companies and had portions of their wages withheld by the employers for federal tax purposes, but the W-2s, wages, and withholdings were false. The W-2s were used to seek tax refunds of the supposedly withheld wages, and as a basis to seek further tax credits. Defendants often directed the tax refunds into a variety of bank accounts controlled by Thomas, Owens, and Rodriguez, after which those defendants would often share a substantial portion of the proceeds with Harris. Harris, Owens, and Thomas also had fraudulent tax returns in their own names filed in connection with the conspiracy. In total, the fraudulent tax returns connected to the conspiracy sought approximately $997,804 in tax refunds, of which over $570,000 was paid out by the IRS.
This case is the product of an investigation by the IRS Criminal Investigation. Assistant U.S. Attorney Christopher S. Hales is prosecuting the case.
Rodriguez, the fourth defendant, is scheduled for trial on June 24, 2019 in front of U.S. District Judge John A. Mendez. The charges are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Harris, Owens, and Thomas are scheduled to be sentenced by U.S. District Judge John A. Mendez on September 24, 2019. Each defendant 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.
Siskiyou County Man Charged with Major Fraud Against the United States for Taking FEMA Grant FundsRead the Press Release
SACRAMENTO, Calif. — Samuel Thomas Lanier, 40, of Dunsmuir, was charged today with seven counts of major fraud against the United States, U.S. Attorney McGregor W. Scott announced.
According to court documents, from approximately June 2013 to March 2018, Lanier engaged in a scheme to defraud the United States by submitting, or causing to be submitted, false reimbursement requests to the Federal Emergency Management Agency (FEMA) in connection with federal grants awarded to Siskiyou and Shasta County Fire Chiefs Associations to assist them in recruiting and training new firefighters.
In June 2013 and June 2014, respectively, the Siskiyou and Shasta County Fire Chiefs Associations were awarded grants as part of the Staffing for Adequate Fire and Emergency Response (SAFER) program. Each grant was over $1 million. The purpose of these grants was to assure that communities have adequate protection from fire-related hazards, and to help the recipients attain and maintain 24-hour staffing.
Lanier, as an owner or executive of two companies located in Dunsmuir, was hired by the Fire Chiefs Associations to administer these grants. In this capacity, Lanier knowingly submitted to FEMA false and fraudulent reimbursement requests, seeking and obtaining reimbursement for goods and services that were not, in fact, actually obtained on behalf of the fire associations. In so doing, Lanier caused a gross loss to the United States of over $500,000.
This case is the product of an investigation by the Major Frauds & Corruption Unit of the Department of Homeland Security, Office of Inspector General. Assistant U.S. Attorney Amy Schuller Hitchcock is prosecuting the case.
“The Department of Homeland Security (DHS), Office of Inspector General (OIG) in partnership with the Department of Justice is committed to identifying and investigating fraud schemes and corrupt activities that pose significant risk and major financial impact to DHS and its components, including FEMA. This fraud scheme siphoned vital funds from a federal program that supports local fire departments to serve their communities,” said James E. Long, Special Agent in Charge, Major Frauds and Corruption Unit, DHS OIG. “Fraud perpetrated against FEMA is detrimental to our nation’s infrastructure and safety, especially from programs that support front line firefighters and first responders.”
Lanier has agreed to plead guilty to the charges. He faces a maximum statutory penalty of 10 years 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.
Mexican National Sentenced for Marijuana Cultivation in Protected WildernessRead the Press Release
FRESNO, Calif. — Rodolfo Torres-Galvan, 30, (Torres), of Michoacán, Mexico, was sentenced today to three years and 10 months in prison for conspiring to manufacture, distribute, and possess with intent to distribute marijuana, U.S. Attorney McGregor W. Scott announced.
Torres’ sentencing follows his guilty plea entered earlier this year. According to court documents, Torres and his co-defendants, Mauricio Vaca-Bucio (Vaca), 31, and Felipe Angeles Valdez-Colima (Valdez), 35, both Mexican nationals, were apprehended after a two-month investigation in the Kiavah Wilderness, a federally designated wilderness area in the Sequoia National Forest. Law enforcement officers saw Torres and Valdez emerge from the forest and enter a Camaro driven by Vaca. They were subsequently stopped in Weldon. Officers found freshly harvested marijuana in the Camaro and located over 1,800 marijuana plants at the grow site on the trail that led to the drop point. The officers also found deadly illegal pesticides, including carbofuran and zinc phosphide, in both the vehicle and at the grow site. In sentencing Torres, U.S. District Judge Dale A. Drozd also ordered Torres to pay $7,620 in restitution to the U.S. Forest Service for the environmental damage caused by the cultivation operation.
The United States Congress designated the Kiavah Wilderness in 1994, and it is managed by the Bureau of Land Management and the Forest Service. This wilderness area is part of the National Cooperative Land and Wildlife Management Area and the Bureau of Land Management’s Jawbone-Butterbredt Area of Critical Environmental Concern.
This case is the product of an investigation by the U.S. Forest Service with assistance from Enforcement and Removal Operations of Immigration and Customs Enforcement (ICE), Campaign Against Marijuana Planting (CAMP), California Department of Fish and Wildlife, California National Guard, Kern County Sheriff’s Office, and Kern County Probation Office. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
Valdez and Vaca have pleaded guilty and are scheduled for sentencing on May 20 and July 29, respectively. They face a minimum statutory penalty of 10 years in prison and a maximum statutory penalty of life in prison, along with a $10 million fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Jury Finds Fresno Man Guilty on 6 Counts of Drug and Sex Trafficking OffensesRead the Press Release
FRESNO, Calif. — On Thursday, a federal jury found Filiberto “Beto” Chavez, 37, of Fresno, guilty of conspiracy to distribute and possess with intent to distribute methamphetamine, distribution of methamphetamine, possession with intent to distribute methamphetamine, conspiracy to engage in interstate travel for prostitution and two counts of use of a facility of interstate commerce to promote prostitution, U.S. Attorney McGregor W. Scott announced.
U.S. Attorney Scott stated: “This verdict is the result of law enforcement partners at the federal, state and local level working as one to pursue criminal gangs and their associates. We will continue to work tirelessly together to protect our communities and to hold accountable those who threaten our safety.”
Fresno Police Chief Jerry Dyer stated: “It excites me to see ruthless gang members removed from our society, especially those like Filiberto Chavez who treat women as property through violent acts of sex trafficking. Filiberto Chavez and his fellow conspirators have proven they belong behind bars.”
Fresno County District Attorney Lisa A. Smittcamp stated, “I congratulate U.S. Attorney Scott and Assistant U.S. Attorneys Kimberly Sanchez, Jeffrey Spivak, and Thomas Newman on an outstanding job bringing Filiberto Chavez to justice. This conviction is yet another example of how cooperation between our local law enforcement agencies, the District Attorney and the United States Attorney works for the people of Fresno County. The Federal and local teams came together under the umbrella of the Multi-Agency Gang Enforcement Consortium and worked as one, focused on high ranking members of the Lewis Street Bulldogs criminal street gang. Special thanks to Senior Deputy District Attorney Lewis and the Officers and Deputies of MAGEC who gave their all to put this case together.”
According to court documents and testimony, Chavez sold methamphetamine to a convicted codefendant, Robert Lockhart, on July 8, 2017. Convicted codefendant Amina Padilla stored methamphetamine for Chavez and gave a portion of what she had stored to convicted codefendant Carlos Melgar to deliver to Lockhart. On July 11, 2017, agents served search warrants at Padilla’s and Lockhart’s apartments and seized methamphetamine from both.
Additionally, in June and July of 2017, Chavez was pimping a prostitute using the assistance of Padilla to post prostitution ads on the internet. Chavez invited convicted codefendants Carlos Montano and Miguel Murillo to join him in New York to engage in prostitution activities with each of their prostitutes. On July 2, 2017, Chavez flew from California to New York with his prostitute. On July 18, 2017, Montano and Murillo flew from California to New York and subsequently began engaging in prostitution activities.
This case is the product of an investigation by Homeland Security Investigations, Federal Bureau of Investigation, Drug Enforcement Administration, Fresno Police Department, Multi‑Agency Gang Enforcement Consortium, Fresno County Sheriff’s Office, and Fresno County District Attorney’s Office. Assistant U.S. Attorneys Kimberly A. Sanchez, Jeffrey Spivak, and Thomas Newman are prosecuting the case.
Chavez is scheduled to be sentenced by Chief U.S. District Judge Lawrence J. O’Neill on August 5. Chavez faces a maximum statutory penalty of life in prison and a $30,750,000 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 Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Texas Man Sentenced to 20 Years in Prison for Enticing a Sacramento Minor Online and Traveling to Engage in Illicit Sexual Conduct with HerRead the Press Release
SACRAMENTO, Calif. — Christopher L. Crawford, 38, of Houston, Texas, was sentenced today by U.S. District Judge Troy L. Nunley to 20 years in prison for enticing a minor online and traveling in interstate commerce to engage in illicit sexual conduct with a minor, U.S. Attorney McGregor W. Scott announced.
According to court documents, in March 2017, Crawford met a young victim online in a video game and began texting and video chatting with her. Crawford told the victim that he was 15 years old. After a few weeks of chatting, Crawford made plans to come to Sacramento and meet the victim. In April 2017, Crawford travelled from Texas to California, and lured the victim away from her junior high school campus and molested her.
This case was the product of an investigation by the Internet Crimes Against Children Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant U.S. Attorney Rosanne Rust 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.
Stockton Man Sentenced to 5 Years in Prison for Trafficking Cocaine BaseRead the Press Release
SACRAMENTO, Calif. — David Alhaqq, 56, of Stockton, was sentenced today by U.S. District Judge Morrison C. England Jr. to five years in prison for distributing cocaine base, U.S. Attorney McGregor W. Scott announced.
Alhaqq pleaded guilty on January 3. According to court documents, in November 2016, a confidential source purchased six ounces of cocaine base from Alhaqq during a controlled buy in Lodi. Just before the buy, Alhaqq met with an unidentified third-party at a parking lot and retrieved a white box. Afterwards, Alhaqq met with the confidential source and gave him the white box, in exchange for $6,000. The box contained approximately six ounces of cocaine base (i.e., crack cocaine).
This case was the product of an investigation by the Federal Bureau of Investigation, the Stockton Safe Streets Task Force, and the Stockton Police Department, with special assistance from the San Joaquin County District Attorney’s Office. Assistant U.S. Attorney Quinn Hochhalter prosecuted the case.
Rocklin Man Pleads Guilty to Distributing Child PornographyRead the Press Release
SACRAMENTO, Calif. — Cameron Fox, 35, of Rocklin, pleaded guilty today to distributing child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, Fox met a minor victim online for sexual purposes and after meeting her in person, he sent her child pornography.
This case is the product of an investigation by the Federal Bureau of Investigation and the Marin County Sheriff’s Office. Assistant U.S. Attorney Rosanne Rust is prosecuting the case.
Fox is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on August 1. Fox 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.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Jury Finds Atwater Inmates Guilty of Attempting to Kill a Correctional Officer and Assault on a Correctional OfficerRead the Press Release
FRESNO, Calif. — On Tuesday, after a four-day trial, a federal jury found Jonathan Mota, 37, guilty of attempting to kill a federal officer and found Dominic Adams, 27, guilty of assault on a federal officer, U.S. Attorney McGregor W. Scott announced.
According to court documents and evidence presented at trial, on October 6, 2017, Mota, Adams and four other inmates brutally attacked a Federal Bureau of Prisons officer who was a teacher working at the federal penitentiary in Atwater. The officer was repeatedly stabbed with homemade knives and kicked and beaten by the inmates.
According to court documents, on the day of the attack, Mota and Eric Chiago, 28, entered the copy room where the officer was making copies and repeatedly stabbed him. William Roe Acevedo, 33; Michael Martin, 30; Joey Thomas, 26; and Adams stationed themselves outside the room. When the victim was able to free himself and escape down the hallway, the six defendants tackled him and wrestled him to the floor where they repeatedly kicked, punched and stabbed him. Adams and Thomas also assaulted an officer who was responding to the attack.
Chiago, Acevedo, Martin, and Thomas pleaded guilty to aggravated assault. Chiago was sentenced to 15 years and eight months in prison, Acevedo was sentenced to 13 years in prison, Martin was sentenced to 12 years and six months in prison, and Thomas was sentenced to eight years and one month in prison.
This case is the product of an investigation by the FBI and the Federal Bureau of Prisons. Assistant U.S. Attorneys Brian K. Delaney and Kirk E. Sherriff are prosecuting the case.
Mota and Adams are scheduled to be sentenced by U.S. District Judge Lawrence J. O’Neill on July 29. They face 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.
Bakersfield Woman Indicted for Bank FraudRead the Press Release
FRESNO, Calif. — On May 5, 2019, a federal grand jury returned a four-count indictment against Amanda Joy Nash, 31, of Bakersfield, charging her with bank fraud, U.S. Attorney McGregor W. Scott announced.
According to court documents, between August 20, 2017, and March 6, 2018, Nash obtained checks that had been stolen from the mail and altered to change the payee name. Nash deposited the checks into her own and her associates’ bank accounts.
This case is the product of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorney Vincente A. Tennerelli is prosecuting the case.
If convicted, Nash faces a maximum statutory penalty of 30 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Three Germans Who Allegedly Operated Dark Web Marketplace with over 1 Million Users Face U.S. Narcotics and Money Laundering ChargesRead the Press Release
SACRAMENTO, Calif. — Following a nearly two-year international investigation involving U.S. law enforcement and authorities in Germany and the Netherlands, federal prosecutors have charged three German nationals with being the administrators of Wall Street Market (WSM), which was one of the world’s largest dark web marketplaces that allowed vendors to sell a wide variety of contraband, including an array of illegal narcotics, counterfeit goods and malicious computer hacking software. A Brazilian national was also charged for allegedly acting as a moderator for WSM.
A criminal complaint filed Wednesday in United States District Court in Los Angeles alleges that the three defendants, who currently are in custody in Germany, were the administrators of WSM, a sophisticated online marketplace available in six languages that allowed approximately 5,400 vendors to sell illegal goods to about 1.15 million customers around the world. Like other dark web marketplaces previously shut down by authorities — SilkRoad and AlphaBay, for example — WSM functioned like a conventional e-commerce website, but it was a hidden service located beyond the reach of traditional internet browsers, accessible only through the use of networks designed to conceal user identities, such as the Tor network.
For nearly three years, WSM allegedly was operated on the dark web by the three men who now face charges in both the United States and Germany. An “exit scam” was allegedly conducted last month when the WSM administrators took all of the virtual currency held in marketplace escrow and user accounts – believed by investigators to be approximately $11 million – and then diverted the money to their own accounts. Exit scams are common among large darknet marketplaces, which typically hold money in escrow while a vendor delivers illicit goods.
A defendant linked to Wall Street Market was charged yesterday in a criminal complaint filed in U.S. District Court in Sacramento. Marcos Paulo De Oliveira-Annibale, 29, of Sao Paulo, Brazil, also faces federal drug distribution and money laundering charges for allegedly acting as a moderator who, among other things, mediated disputes between vendors and their customers. Annibale, who used the online monikers “MED3LIN,” also acted as a public relations representative for WSM by, among others things, promoting WSM on websites such as Reddit, according to the complaint. The case naming Annibale was unsealed today when Brazilian authorities executed a search warrant at his residence.
The three defendants arrested in Germany on April 23 and 24 and charged in the United States are a 23-year-old resident of Kleve, Germany; a 31-year-old resident of Wurzburg, Germany; and a 29-year-old resident of Stuttgart, Germany. The complaint charges the men with two felony counts – conspiracy to launder monetary instruments, and distribution and conspiracy to distribute controlled substances. These defendants also face charges in Germany.
The two cases filed in the United States are the result of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, the U.S. Postal Inspection Service, IRS Criminal Investigation, and Homeland Security Investigations.
“We are on the hunt for even the tiniest of breadcrumbs to identify criminals on the dark web,” said U.S. Attorney McGregor W. Scott for the Eastern District of California. “The prosecution of these defendants shows that even the smallest mistake will allow us to figure out a cybercriminal’s true identity. As with defendant Marcos Annibale, forum posts and pictures of him online from years ago allowed us to connect the dots between him and his online persona ‘Med3l1n.’ No matter where they live, we will investigative and prosecute criminals who create, maintain, and promote dark web marketplaces to sell illegal drugs and other contraband.”
“We continue to keep pace with sophisticated actors on the dark web by increasing our technical abilities and working even more closely with our international law enforcement partners,” said U.S. Attorney Nick Hanna. “While they lurk in the deepest corners of the internet, this case shows that we can hunt down these criminals wherever they hide.”
“Just as international law-enforcement partners began dismantling Wall Street Market and taking action against its members, as alleged in the complaint, the site’s administrators decided to steal their customers’ money via an exit scam,” said Assistant Attorney General Brian Benczkowski. “This operation sends a crystal-clear message: dark markets offer no safe haven. The arrest and prosecution of the criminals who allegedly ran this darknet marketplace is a great example of our partnership with law enforcement authorities in Europe, with the support of Europol, and demonstrates what we can do when we stand together.”
“Investigators from many countries overcame the national, legal and diplomatic challenges to hold accountable sophisticated actors who operated one of the largest known encrypted marketplaces in the shadowy environment of the Darknet,” said Assistant Director Paul Delacourt of the FBI’s Los Angeles Field Office. “This case is an example of successful global collaboration among law enforcement entities who share the many challenges of prosecuting transnational criminal activity conducted by individuals who operate anonymously across borders.”
The affidavit in support of the criminal complaint filed in Los Angeles outlines how the defendants operated a sophisticated online marketplace that offered encrypted communications between buyers and sellers, as well as an online forum to discuss vendors and the quality of their wares. The affidavit also describes an international investigation that was able to identify the three administrators of WSM, show how they previously operated another German-based darknet marketplace that shut down in 2016, and link them to computer servers in Germany and the Netherlands that were used to operate WSM and process virtual currency transactions.
The three defendants allegedly created WSM, maintained the website, and operated the marketplace to ensure that buyers could access vendor pages and that financial transactions were properly processed. The investigation outlined in the complaint affidavit linked the three defendants to WSM in a number of ways, including their access to the WSM computer infrastructure. One defendant, for example, used virtual private networks to access WSM computers, but when a VPN connection would fail, his IP was revealed and authorities were able to identify his specific location.
The three defendants charged in Los Angeles were arrested in Germany after the WSM administrators conducted an exit scam in the wake of WSM recently becoming regarded as the world’s pre-eminent dark web marketplace and gaining a significant influx of new vendors and users, according to the affidavit. On April 16, vendors realized they could not collect the virtual funds that had been placed in escrow by their customers, which prompted German authorities to execute a series of arrest and search warrants.
The complaint affidavit identifies several cases that have been filed in the United States against WSM vendors. One darknet vendor who advertised on WSM is currently serving a 12‑year federal prison sentence after being convicted in the Western District of Wisconsin for distributing a fentanyl analogue resulting in the overdose death of a Florida resident who ordered a nasal spray laced with the powerful opioid from the vendor.
Other defendants include Jose Robert Porras III, 21, and Pasia Vue, 23, both of Sacramento, who were charged with drug distribution, money laundering, and illegally possessing firearms, in a 16-count indictment returned by a grand jury in the Eastern District of California. According to the indictment, Porras and Vue were using the online monikers “Cannabars” and “TheFastPlug,” to distribute marijuana, Xanax, and methamphetamine on various dark web marketplaces, including Wall Street Market.
“The dark web marketplace, Wall Street Market, was one of the largest operating hosts for vendors peddling illegal wares,” said DEA San Francisco Special Agent in Charge Chris Nielsen. “Law enforcement is always adapting to changes in technology and this case sends a clear message to those breaking the law and attempting to hide behind the illusion of anonymity – we will identify and find you. The success of this case is due to the excellent cooperation between law enforcement agencies from around the globe who delivered another blow to criminal networks operating in the underground cyberspace.”
“Anyone who thinks the dark web is a safe place to conduct illegal commerce should know they are not anonymous,” said Inspector in Charge Michael Ray of the Postal Inspection Service. “They will be found and they will be brought to justice. The Postal Inspection Service has a highly trained, skilled and committed cyber unit that works tirelessly with other law enforcement agencies to disrupt marketplaces and stop vendors from using the U.S. mail to ship illegal goods and dangerous drugs.”
“Taking down this site is a huge win for past and future victims of crimes perpetrated due to the proliferation of illegal products and services being sold,” said Chief Don Fort of IRS Criminal Investigation. “We are committed to using our unique financial investigative abilities to tackle these kinds of threats head on to protect citizens, to promote cyber security and to inform the global community.”
“HSI and our partners are at the forefront of combating narcotics trafficking, financial crimes and illicit activities purveyed by online black markets,” said HSI Acting Executive Associate Director Alysa D. Erichs. “While criminal operators may continue to grow the reach of their businesses through these dark web marketplaces, ultimately they do not escape the reach of law enforcement. We continue to investigate, disrupt, and dismantle hidden illegal networks that pose a threat in cyberspace.”
The charges against the three WSM administrators were announced today in conjunction with authorities in Germany and the Netherlands.
The cases in the United States are being prosecuted by Assistant U.S. Attorney Grant Rabenn of the Eastern District of California, Assistant U.S. Attorneys Ryan White and Puneet Kakkar of the Central District of California, Justice Department Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section, and Justice Department Trial Attorney Joseph Wheatley of the Criminal Division’s Organized Crime and Gang Section.
The U.S. investigation was conducted with support and coordination provided by the Department of Justice’s multi-agency Special Operations Division.
The Justice Department thanks its law enforcement colleagues at the German Federal Criminal Police (the Bundeskriminalamt), the German Public Prosecutor’s Office in Frankfurt, the Dutch National Police (Politie), the Netherlands National Prosecutor’s Office, Federal Police of Brazil (Policia Federal), Europol and Eurojust. Significant assistance was provided by the Office of International Affairs at the Justice Department and the Organized Crime and Drug Enforcement Task Force program.
The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Vacaville Man Sentenced to 14 Years in Prison for Possessing 5 Pounds of Methamphetamine for DistributionRead the Press Release
SACRAMENTO, Calif. — Robert Elias Padilla, 41, of Vacaville, was sentenced Thursday by U.S. District Judge Troy L. Nunley to 14 years in prison for possessing methamphetamine for distribution, U.S. Attorney McGregor W. Scott announced.
Padilla pleaded guilty on January 31. According to court documents, on June 6, 2018, law enforcement agents had a warrant to search Padilla and his car for evidence of drug-trafficking and firearms. They located Padilla in his car and followed him to a parking lot in Vacaville. When the officers tried to stop Padilla’s car, Padilla tried to flee, hitting a parked car in the process. At the same time, Padilla threw a backpack from the driver’s-side window, and officers later found over 5.5 pounds of methamphetamine in the backpack. Padilla was carrying over $2,300 in cash when he was arrested.
This case was the product of an investigation by the Vacaville Police Department, with special assistance from the FBI’s Solano County Violent Crimes Task Force and the Solano County District Attorney’s Office.
Sacramento Man Sentenced to Nearly 5 Years in Prison for Fraud in Connection with Arson Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Morrison C. England Jr. sentenced Saber A. Shehadeh, 76, of Sacramento, to four years and nine months in prison for an arson fraud scheme, U.S. Attorney McGregor W. Scott announced.
On June 14, 2018, a jury found Shehadeh guilty of three counts of mail fraud. According to evidence presented at trial, Saber Shehadeh made a series of false statements to State Farm Insurance Company to get insurance money after two fires destroyed buildings he owned at the corner of 10th and E Streets in Sacramento’s Alkali Flat neighborhood. The fires occurred on December 27, 2009, and August 15, 2010, and ultimately destroyed a historical building where Saber Shehadeh ran a business called Tru Value Market. Prior to the fires, the financial condition of Shehadeh’s Tru Value Market had declined. He experienced suspension from USDA’s food stamp program, bounced mortgage checks, and frequent overdrafts on his business bank account, and his alcohol license was placed in jeopardy due to a conviction for food stamp fraud and receiving stolen property.
After the second fire, Saber Shehadeh became a silent partner in a supposed construction company that was then used to submit inflated invoices for post-fire cleanup to State Farm. During State Farm’s investigation of the insurance claims, Saber Shehadeh made a series of false statements about the status of his market prior to the fires, and submitted fraudulent documents and made false statements about the debris removal performed after the second fire. Saber Shehadeh received over $1.4 million in insurance proceeds after the fires, enabling him to pay off his mortgage and still have several hundred thousand dollars left over to invest in new businesses and to share with family members, including his co-defendant Jamal Shehadeh.
This case was the product of an investigation by the Federal Bureau of Investigation and IRS Criminal Investigation, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Sacramento Fire Department; the Sacramento Metropolitan Fire Department; and the Sacramento Sheriff’s Department. Assistant U.S. Attorneys Michael D. Anderson and Christopher S. Hales prosecuted the case.
On February 10, 2018, Jamal Shehadeh pleaded guilty to two counts of arson to commit a felony and was sentenced to 30 years in prison. According to his plea agreement, Jamal Shehadeh set or caused to be set the first fire at Saber Shehadeh’s 10th and E Street property. On April 17, 2018, co-defendant, Brian Stone, was convicted of 13 counts of mail and wire fraud after a separate jury trial, and on September 27, 2018, he was sentenced to six years in prison.
Delano Man Sentenced to 10 Years in Prison for Receipt and Distribution of Child PornographyRead the Press Release
FRESNO, Calif. — Steven Andrew Dobson, 33, of Delano, was sentenced today by U.S. District Judge Lawrence J. O’Neill to 10 years in prison, to be followed by 10 years of supervised release, for receiving and distributing child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, from approximately March 1, 2016, through November 11, 2016, in Kern County, Dobson was found to have received and distributed through the internet between 150 and 300 images of minors engaged in sexually explicit conduct. The images also involved depictions of violence, and included depictions of prepubescent minors.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Brian W. Enos prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
San Francisco Man Pleads Guilty to Conspiring to Launder Money for Illegal Gambling Business Operating in Sacramento and ElsewhereRead the Press Release
SACRAMENTO, Calif. — Bar Shani, 27, of San Francisco, pleaded guilty today to conspiring to launder money, U.S. Attorney McGregor W. Scott announced.
According to court documents, between October 2016 and November 2017, Shani conspired to launder the cash proceeds of an illegal gambling business run by Orel Gohar, 28, of San Francisco, and Yaniv Gohar, 35, of Berkeley, that placed and maintained video slot machines at businesses in Northern California, including Sacramento and other locations in the Eastern District of California.
According to court documents, Shani conspired with Atir Dadon, 34, of Sherman Oaks, and Orel Gohar to launder the proceeds of the gambling business. They agreed that Shani and Dadon would take the cash from the gambling business and use it to pay the workers in their cosmetics business. In exchange, Shani and Dadon would arrange for Orel Gohar to receive checks from the cosmetics business. Dadon indicated in the memo lines on the checks that Orel Gohar had provided consulting and training services when in fact, he had not. They used code words in their conversations about the transactions, referring to the money as bottles of alcohol or other non-cash items. Between October 2016 and November 2017, Shani and Dadon laundered over $150,000 from the Gohars’ gambling business. Dadon pleaded guilty on April 5.
This case is the product of an investigation by the Federal Bureau of Investigation and the California Department of Justice – Bureau of Gambling Control. Assistant U.S. Attorneys Matthew M. Yelovich and Miriam R. Hinman are prosecuting the case.
Yaniv Gohar and Orel Gohar fled the United States after their arrest in December 2017 and remain at large. Anyone with information about their whereabouts should call the FBI at (916) 746-7000.
Charges are pending against co‑defendants Adam Atari, 35, of Sherman Oaks; Raz Razla, 48, of Sherman Oaks; and Eran Buhbut, 33, of Oakland. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Shani and Dadon are scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on July 12. They face a statutory maximum penalty of 20 years in prison and a fine of up to $500,000, or twice the value of the monetary instrument or funds involved, whichever is greater. 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.