Eastern District of California

FRESNO, Calif. — U.S. District Judge Lawrence J. O’Neill sentenced Jonathan Mota, 37, and Dominic Adams, 27, today to 20 years in prison, following their convictions at trial, U.S. Attorney McGregor W. Scott announced.

Mota was sentenced for attempting to kill a federal officer, and Adams was sentenced for assault on a federal officer. The sentences are to be served consecutively to the federal sentences they are currently serving, and will be followed by three years of supervised release.

According to court documents and evidence presented at trial, on October 6, 2017, Mota, Adams and four other inmates brutally attacked a Federal Bureau of Prisons officer who was a teacher working at the federal penitentiary in Atwater. The officer was repeatedly stabbed with homemade knives and kicked and beaten by the inmates.

According to court documents, on the day of the attack, Mota and Eric Chiago, 28, entered the copy room where the officer was making copies and repeatedly stabbed him. William Roe Acevedo, 33; Michael Martin, 30; Joey Thomas, 26; and Adams stationed themselves outside the room. When the victim was able to free himself and escape down the hallway, the six defendants tackled him and wrestled him to the floor where they repeatedly kicked, punched and stabbed him. Adams and Thomas also assaulted an officer who was responding to the attack.

Chiago, Acevedo, Martin, and Thomas pleaded guilty to aggravated assault. Chiago was sentenced to 15 years and eight months in prison, Acevedo was sentenced to 13 years in prison, Martin was sentenced to 12 years and six months in prison, and Thomas was sentenced to eight years and one month in prison.

This case was the product of an investigation by the Federal Bureau of Investigation and the Federal Bureau of Prisons. Assistant U.S. Attorney Kirk E. Sherriff prosecuted the case.

SACRAMENTO, Calif. —Christopher Lee, 66, of Auburn, pleaded guilty today to one count of production of child pornography, U.S. Attorney McGregor W. Scott announced.

According to court documents, Lee repeatedly used a webcam to produce child pornography involving a seven-year-old child and shared the live-streamed video with an individual who lived in England.

This case is the product of an investigation by Homeland Security Investigations (HSI) and the Placer County Sheriff’s Department. Assistant U.S. Attorney Lee S. Bickley is prosecuting the case.

Lee is scheduled to be sentenced by U.S. District Judge Kimberly Mueller on Oct. 28. Lee faces a maximum statutory penalty of 30 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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

SACRAMENTO, Calif. — U.S. District Judge Garland E. Burrell Jr. sentenced Zalathiel Aguila, 46, of Vallejo, to four years in prison for conspiracy to commit wire fraud affecting a financial institution and bank fraud, U.S. Attorney McGregor W. Scott announced.

According to court documents, between September 2004 and February 2008, Aguila and co-conspirators Sergio Roman Barrientos and Omar Anabo operated Capital Access LLC, in Vallejo, a company that preyed on homeowners nearing foreclosure. The defendants convinced homeowners to sign over the title to their homes to Capital Access and then spent any equity those homeowners still had, which was then used for operational expenses of the scheme and personal expenses of Aguila and his co-conspirators.

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

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

Aguila remains out of custody pending his surrendering for service of his sentence on Oct. 25. Barrientos was sentenced on Nov. 2, 2018, to 14 years in prison for his role in the scheme, and Anabo (charged elsewhere) is scheduled to be sentenced on Aug. 16.

SACRAMENTO, Calif. — Eran Buhbut, 34, of Oakland, pleaded guilty today to conducting an illegal gambling business, U.S. Attorney McGregor W. Scott announced.

According to court documents, from at least September 2015 through November 2017, Buhbut conducted an illegal gambling business in concert with his co-defendants, as a part of the Gohar organization. In violation of California law, members of the Gohar organization, including Buhbut, installed and maintained video slot machines at businesses open to the public across Northern California. Buhbut and other members of the Gohar organization then split the proceeds from these illegal gambling machines with the owners of the small businesses in which the machines were installed.

According to the plea agreement, evidence seized at Buhbut’s residence included over $28,000 in cash in low dollar amounts consistent with video slot machine collections, 16 motherboards used in such machines, ledgers describing cash “in” and “out” amounts, seven different phones, and a specialized set of security keys consistent with the type of locks found on the Gohar organization’s video slot machines. The gambling business is alleged to have 500 machines across California.

This case is the product of an investigation by the Federal Bureau of Investigation and California Department of Justice – Bureau of Gambling Control. Assistant U.S. Attorneys Matthew M. Yelovich and Miriam R. Hinman are prosecuting the case.

Yaniv Gohar, 36, formerly of Berkeley; and Orel Gohar, 28, formerly of San Francisco, fled the United States upon their release in December 2017. Yaniv Gohar was extradited from Israel and faces additional charges. Orel Gohar remains at large. Anyone with information about his whereabouts should call the Federal Bureau of Investigation at (916) 746-7000. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

May Levy, 28, of Walnut Creek; Atir Dadon, 34, of Sherman Oaks; Bar Shani, 27, of San Francisco; and Adam Atari, 35, of Sherman Oaks, have pleaded guilty. Levy was sentenced to two years’ probation; Dadon was sentenced to 22 months in prison; Shani was sentenced to 20 months in prison, and Atari is scheduled to be sentenced on Aug. 30.

Raz Razla, 48, of Sherman Oaks, is charged with making false statements to the grand jury. The charge is only an allegation; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.

Buhbut is scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on Feb. 28, 2020. Buhbut faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — Following the successful extradition from Israel, Yaniv Gohar, 36, formerly of Berkeley, will be arraigned today on a superseding indictment that adds the charge of failure to appear to the original charges relating to an illegal gambling business, U.S. Attorney McGregor W. Scott announced.

According to court documents, Gohar was arrested on December 8, 2017, in connection with his initial charges. On December 21, he was released on bond over the government’s objection. Four days later, he allegedly crashed his Porsche Panamera into a parked car in Berkeley and did not immediately stop, but rather continued driving until cited by the Berkeley Police Department for reckless driving. On January 3, 2018, he failed to appear as ordered for his pretrial services violation hearing and has remained at large since that time. In September 2018, a grand jury returned a superseding indictment charging Gohar with, among other offenses, failure to appear.

This case is the product of an investigation by the FBI and California Department of Justice – Bureau of Gambling Control. Assistant U.S. Attorneys Matthew M. Yelovich and Miriam R. Hinman are prosecuting the case. Significant assistance was provided by the Department of Justice’s Office of International Affairs and by Israeli authorities.

Yaniv Gohar’s brother and co-defendant, Orel Gohar, 28, fled the United States in December 2017 and remains at large. Anyone with information about his whereabouts should call the Federal Bureau of Investigation at (916) 746-7000.

If convicted, Yaniv Gohar faces five years in prison for the failure to appear to be served consecutively to the other sentences imposed. If convicted, he also faces a maximum statutory penalty of five years in prison for the illegal gambling offense and 20 years in prison for the money laundering conspiracy. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Kari Scattaglia, 40, of Sylmar, was sentenced today to two years and eight months in prison for a conspiracy to take bribes to provide Class A commercial driver licenses without the buyer having to take or pass the required tests, U.S. Attorney McGregor W. Scott announced.

“The FBI is committed to working with law enforcement and agency partners to root out corruption, especially when it puts the lives of our fellow citizens at risk,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “Scattaglia’s greed led her to value self‑enrichment over the safety of the millions of people accessing California and interstate highways. Instead of performing her job honestly, she took bribes in exchange for enabling drivers of tractor-trailer trucks to operate in California without passing the tests required to ensure they could operate safely.”

“Individuals in positions of trust who exploit federal and state law for personal gain pose a significant threat to public safety and national security,” said Jerry C. Templet Jr, Deputy Special Agent in Charge, Homeland Security Investigations (San Francisco and Northern California). “HSI will continue working with our local, state, and federal partners to investigate these types of public corruption cases and bring those responsible to justice.”

On November 3, 2017, Scattaglia and former DMV employee co-defendant Lisa Terraciano, 52, of North Hollywood, pleaded guilty to a conspiracy to commit bribery, to commit identity fraud, and to commit unauthorized access of a computer.

According to court documents, since April 2007, Scattaglia worked at the DMV. Between 2014 and 2017, she was a manager, assistant manager, and a Licensing-Registration Examiner (LRE) at the Arleta DMV and the Granada Hills Driver License Processing Center. Terraciano worked for the DMV since June 2005 and was a Motor Vehicle Representative (MVR) in the Winnetka DMV office from 2014 through 2017. Among other things, Scattaglia and Terraciano were responsible for processing applications for California commercial driver licenses (CDLs). A CDL is required to drive passenger buses and to operate tractor-trailer trucks on California and interstate highways, including, in some cases, transporting hazardous materials.

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

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

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

Terraciano is scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on Sept. 27. Terraciano faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — On Thursday, a federal grand jury returned a three-count indictment today against Hector Manuel Gomez Rodriguez, 45, of Visalia, and Mucio Alejandro Gomez Rodriguez, 46, of Visalia, charging them with manufacture of marijuana, conspiracy to manufacture marijuana, and depredation of public lands and resources, U.S. Attorney McGregor W. Scott announced.

According to court documents, in early June, officers located a clandestine marijuana grow site on U.S. Forest Service land east of North Fork in the Sierra National Forest in Madera County. On July 16, 2019, USFS officers and other law enforcement personnel hiked into the grow site and apprehended the defendants as they tried to flee. Officers found 4,494 live marijuana plants, a .45-caliber handgun, and a pellet gun in the cultivation site.

This case is the product of an investigation by the U.S. Forest Service, the Madera County Sheriff’s Office, California Department of Fish and Wildlife, and CAMP (Campaign Against Marijuana Planting). Assistant U.S. Attorney Katherine Schuh is prosecuting the case.

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

SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Mario Alberto Lopez-Pena, 19, of Winton, and Francisco Madrigal Magana, 25, of Turlock, charging them with conspiracy to cultivate marijuana, marijuana cultivation, and depredation of federal lands and resources in the Shasta-Trinity National Forest, U.S. Attorney McGregor W. Scott announced.

According to court documents, between June 9 and July 8, the defendants were involved in the cultivation of 4,105 marijuana plants south of Rays Peak in the Shasta-Trinity National Forest. The defendants were arrested on July 8, 2019.

This case is the product of an investigation by the U.S. Forest Service, the Trinity County Sheriff’s Department, the California Department of Fish and Wildlife, and the Bureau of Land Management. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.

If convicted of either of the marijuana charges, both defendants face a mandatory minimum penalty of 10 years in prison, and a maximum penalty of life in prison and a $10 million fine. If convicted of damaging public lands, the defendants face a maximum penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account several variables. These charges are only allegations; the defendants are presumed innocent until proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. —Javontae D. Rucker, 27, of Sacramento, pleaded guilty today to production of child pornography, U.S. Attorney McGregor W. Scott announced.

According to court documents, between February 1, 2017, and March 31, 2017, while babysitting, Rucker took advantage of an infant in his care, and he used his cellphone to produce child pornography images and a video of the victim. Rucker also admitted to possessing over a thousand child pornography videos and images of other victims.

This case is the product of an investigation by the Internet Crimes Against Children Task Force, composed of various law enforcement agencies, including the Sacramento County Sheriff’s Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Rosanne L. Rust is prosecuting the case.

Rucker is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on Oct. 24. Rucker faces a maximum statutory penalty of 30 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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

SACRAMENTO, Calif. — An indictment was unsealed today after the arrest of John Maasen, 64, of Olivehurst, who is charged with receipt of child pornography, U.S. Attorney McGregor W. Scott announced.

According to court documents, between March 26, 2013, and January 15, 2019, Maasen knowingly received visual depictions of minors engaged in sexually explicit conduct.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Shea J. Kenny and Amy Schuller Hitchcock are prosecuting the case.

If convicted, Maasen faces a minimum statutory penalty of 15 years in prison and a maximum penalty of 40 years in prison, as well as a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

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

SACRAMENTO, Calif. — U.S. District Judge John A. Mendez sentenced David Patrick Seilheimer, 54, of Sacramento, today to 15 years in prison for receipt of child pornography, U.S. Attorney McGregor W. Scott announced.

According to court documents, between May 2015 and February 7, 2018, Seilheimer, used a file sharing program to find and download child pornography. Seilheimer had a prior conviction in Colorado for a crime relating to sexual abuse. Seilheimer was on Colorado state parole, and required to register as a sex offender when he was arrested in Sacramento.

This case was the product of an investigation by the Internet Crimes Against Children Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant U.S. Attorneys Rosanne L. Rust and Roger Yang prosecuted the case.

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

SACRAMENTO, Calif. — A 16-count superseding indictment by a federal grand jury was unsealed today against Darron Dimitri Ross, 33, of Charlotte, North Carolina, and Joshua Bilal George, 36, of San Diego, including charges of conspiracy to defraud and commit crimes against the United States, theft of government property, aggravated identity theft, wire fraud, and money laundering, U.S. Attorney McGregor W. Scott announced.

This recent indictment supersedes a December 20, 2018, indictment that charged Ross and alleged co-conspirator Eric Lemoyne Willis, 43, of West Sacramento. On June 17, 2019, Willis pleaded guilty to charges in the original indictment, including conspiracy to defraud the United States, theft of government property, and aggravated identity theft.

According to court documents, Willis, Ross, and George conspired to steal public money from the Social Security Administration (SSA). Willis worked as an SSA Operation Supervisor in Sacramento and Lodi from at least 2015 until his departure in January 2018. In this timeframe, Willis used his authority as an SSA employee to access the confidential Social Security records of numerous Social Security beneficiaries. These records contained personally identifiable information (PII) including names, addresses, social security numbers, dates of birth, account numbers, family information, and benefit payment amounts. Willis sought out PII for beneficiaries who used direct deposit for payment of large benefits. Willis then transferred this PII to his co-conspirators, including Ross who resided in North Carolina, and George who worked as a Federal Protective Service Officer in San Diego.

According to court documents, Ross’s and George’s role in these crimes included calling numerous SSA field offices across the country and using the stolen PII to impersonate the beneficiaries. The conspirators opened at least 44 online bank accounts under fraudulent identities to receive diverted SSA benefit payments. During these calls, Ross and George convinced some of the SSA representatives that they were the identity-theft victims, and they caused the representatives to change the direct deposit account numbers to the fraudulent account numbers. The SSA then deposited the benefit payments into the fraudulent accounts until the fraud was detected. The conspirators were then free to withdraw the funds at ATMs and spend the money using debit cards.

SSA has identified at least 160 beneficiaries who were victims these crimes, and the total fraud loss suffered by SSA has exceeded $480,000.

This case was the product of an investigation by the Social Security Administration – Office of the Inspector General, the Federal Bureau of Investigation, and the Department of Homeland Security – Office of the Inspector General. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.

Federal agents arrested George this morning in San Diego, and he made his initial appearance in the Southern District of California. Willis is released on bond pending his sentencing, and Ross is released on bond pending trial.

If convicted of wire fraud, Ross and George face a maximum statutory penalty of 20 years in prison and a $250,000 fine. If convicted of aggravated identity theft, they each face a mandatory sentence of two years in prison consecutive to any other sentence imposed. The maximum sentence for theft of government property is 10 years in prison and a $250,000 fine. The maximum sentence for conspiracy is five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; each defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Christian Henry Dorsch Jr., 50, of Vacaville, was sentenced today by U.S. District Judge Troy L. Nunley to seven years in prison for possessing methamphetamine for distribution, U.S. Attorney McGregor W. Scott announced.

Dorsch pleaded guilty on January 10, 2019. According to court documents, on September 6, 2018, police stopped Dorsch while he was driving in Fairfield. A search warrant allowed them to search Dorsch, his cars, and his home in Vacaville for evidence of drug-trafficking and firearms. When the officers searched Dorsch’s car, they found approximately one-half pound of methamphetamine in the center console. Later, during an interview, Dorsch said that he intended to sell the narcotics.

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

SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Christopher Louis Wadstein, 31, of South Lake Tahoe, charging him with being a felon in possession of a firearm and possession with intent to distribute methamphetamine, U.S. Attorney McGregor W. Scott announced.

According to court documents, in May 2018, burglars stole several firearms from a car parked outside a hotel in South Lake Tahoe. Not long after the theft, officers received information that the firearms were in Wadstein’s possession. Officers were able to locate a car Wadstein had rented and searched it, finding a backpack with five handguns and ammunition in it. The firearms were later confirmed to have been among those stolen from the car outside the hotel. Following his arrest, Wadstein later admitted to having received the guns and ammunition, and to stashing them in his car. Wadstein has two prior state felony convictions for endangering public safety while fleeing from the police, and one felony conviction for being a felon in possession of a firearm. Because of these convictions, Wadstein is prohibited from possessing firearms.

Wadstein was charged in El Dorado County Superior Court for his possession of the firearms, but fled before his preliminary hearing. The court issued a bench warrant for his failure to appear.

In May 2019, the South Lake Tahoe Police Department received information that Wadstein had returned to Northern California. On May 21, 2019, officers were able to locate his vehicle within Sacramento County and attempted to make a traffic stop. Instead, Wadstein fled, leading police on a high speed pursuit, during which Wadstein collided with numerous other drivers, drove the wrong way down several streets, exceeded 100 mph on surface roads, and tried to ram law enforcement vehicles. One collision caused Wadstein’s vehicle to catch fire and he was forced to abandon it, fleeing on foot. As he ran, he scattered a bag of methamphetamine he was carrying. Ultimately, he was unable to escape police on foot and surrendered. Officers later recovered approximately 335 grams of methamphetamine from the ground where Wadstein had discarded it.

This case is the product of an investigation by the South Lake Tahoe Police Department, the Bismarck Police Department, the El Dorado County District Attorney’s Office, the California Highway Patrol, and the Federal Bureau of Investigation. Assistant U.S. Attorney James R. Conolly is prosecuting the case.

If convicted of the count of being a felon in possession of a firearm, Wadstein faces a statutory maximum sentence of 10 years in prison and a $250,000 fine. If convicted of the possession of methamphetamine with the intent to distribute count, he faces a maximum statutory penalty of 40 years in prison and a $5 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

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

SACRAMENTO, Calif. — U.S. District Judge Kimberly J. Mueller sentenced Mark Corum, 62, of Sacramento, today to 30 years in prison for distribution and production of child pornography, U.S. Attorney McGregor W. Scott announced.

According to court documents, Corum engaged in Skype conversations with various Skype users in the Philippines in which he instructed the other parties to perform sexual acts on children while he watched on live webcam. Corum sent the persons in the Philippines payments of between $25 and $35 via money transmittal services in exchange for them performing the sexual acts he requested on children and transmitting the images to him via webcam. Transcripts of the Skype chats filed with the court reflect that, at Corum’s direction, children between the ages of infancy and 10 years old were sexually abused. The Skype chats also contain statements by Corum alluding to prior trips to the Philippines and sex acts with children there. He indicated that if he visited the Philippines again, he wanted to have sex with one of the children he had directed to be abused, a six-year-old girl. In addition, on June 23, 2016, Corum used the internet to transmit images of prepubescent children engaged in sexually explicit conduct to another person.

This case was investigated by the Sacramento Internet Crimes Against Children (ICAC) Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant U.S. Attorney Katherine T. Lydon prosecuted the case.

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

FRESNO, Calif. — Chief U.S. District Judge Lawrence J. O’Neill sentenced Nikko Adolfo Perez, 27, of Atwater, today to 40 years in prison, to be followed by a lifetime term of supervised release for his convictions for the sexual exploitation of children, coercion and enticement of a minor, and receipt and distribution of child pornography, U.S. Attorney McGregor W. Scott announced.

“While Perez's sentence is substantial, it pales in comparison to the lifetime of damage he inflicted upon his many victims. Innocence cannot be restored,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “We hope this case inspires families to have conversations about the danger of communicating online over text, apps, and other media with a stranger and the importance of immediately seeking help if communication becomes exploitive or threatening. The internet fosters both false familiarity and anonymity, which can empower a predator. We urge the community to be mindful of the inherent danger of communicating with or transmitting photos to someone you do not truly know.”

According to a criminal complaint, Perez, using the Instagram screen name captainamerica272018, victimized two boys, ages 8 and 10, in Utah by coercing them to create and send him images of themselves engaged in sexually explicit conduct. Perez offered to pay the boys with Google Play credits if they engaged in requested sexual acts or poses, and when one of the victims said he would call 911, Perez threatened to disseminate the sexually explicit images of the victims. He also threatened to harm family members of the victims.

Perez admitted in a plea agreement that he also used Skype, Kik, Discord, Snapchat, and LiveMe to communicate with between 50 and 100 minors for the purpose of soliciting sexually explicit images of those minors. He admitted that he persuaded the victims to pose nude or engage in sexually explicit activities, sometimes with other minors. He admitted that he often paid victims to engage in this conduct, and he sent some of the material that he had requested to other people.

The FBI continues to seek additional victims. Information can be submitted to https://tips.fbi.gov or call the local FBI office.

This case was the product of an investigation by the Federal Bureau of Investigation, the Salt Lake City Police Department, and the FBI’s Violent Crimes Against Children Section Major Case Coordination Unit. The Merced District Attorney’s Office investigations unit also assisted in the investigation of the case. Assistant U.S. Attorney David Gappa prosecuted the case.

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

SACRAMENTO, Calif. — U.S. District Judge Garland E. Burrell, Jr., sentenced Bar Shani, 27, of San Francisco, to 20 months in prison for conspiring to launder money, U.S. Attorney McGregor W. Scott announced.

According to court documents, between October 2016 and November 2017, Shani conspired to launder the proceeds of an illegal gambling business with Atir Dadon, 34, of Sherman Oaks, and Orel Gohar, 28, of San Francisco. Orel Gohar and Yaniv Gohar, 35, of Berkeley, operated an illegal gambling business that placed and maintained video slot machines at businesses in Northern California, including locations in the Eastern District of California. Shani, Dadon, and Orel Gohar agreed that Orel Gohar would give cash proceeds from the Gohars’ gambling business to Shani and Dadon, who would use the cash to pay the workers in their cosmetics business. They agreed that Orel Gohar would give cash to Shani and Dadon, and in return, they would arrange for Orel Gohar to receive checks from the cosmetics business. To conceal the fact that the financial transactions involved the proceeds of illegal activity, Shani, Dadon, and Orel Gohar used code words in their conversations about the transactions, referring to the money as bottles of alcohol or other non‑cash items. Dadon also put false memo lines on the checks, indicating that Orel Gohar had provided consulting and training services, when in fact he had not done so. Between October 2016 and November 2017, Shani and Dadon laundered $159,900 from the Gohars’ gambling business.

This case is the product of an investigation by the Federal Bureau of Investigation and the California Department of Justice – Bureau of Gambling Control. Assistant U.S. Attorneys Matthew M. Yelovich and Miriam R. Hinman are prosecuting the case.

On July 12, co-defendant Dadon was sentenced by U.S. District Judge Garland E. Burrell, Jr., to 22 months in prison. Co-defendant Adam Atari, 35, of Sherman Oaks, pleaded guilty to conspiring to launder money and witness tampering. Sentencing for Atari is set for Aug. 30. Co-defendant May Levy, 28, of Walnut Creek, pleaded guilty to operating an illegal gambling business, and on May 10, 2018, was sentenced to two years of probation.

Co-defendants Yaniv Gohar and Orel Gohar fled the United States upon their release in December 2017 and remain at large. Anyone with information about their whereabouts should call the Federal Bureau of Investigation at (916) 746-7000.

Co-defendant Raz Razla, 48, of Sherman Oaks, is charged with making false statements to the grand jury. Co-defendant Eran Buhbut, 33, of Oakland, is charged with operating an illegal gambling business. These charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt. If convicted, these remaining defendants face a statutory maximum penalty of 5 years in prison and a fine of up to $250,000, or both. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — Cody Patrick Cannon, 31, a transient, pleaded guilty yesterday to bank fraud, aggravated identity theft, and possession of reproduced U.S. Postal Service keys, U.S. Attorney McGregor W. Scott announced.

According to court documents, between January and August 2018, Cannon engaged in a scheme in which he used counterfeit U.S. Postal Service keys to open apartment complex mailboxes throughout Northern California and steal mail. Cannon and others involved in the scheme then harvested personally identifiable information, financial information, and credit and debit cards. They defrauded banks by using the stolen cards to purchase goods and withdraw cash from ATMs in Vacaville, Folsom, Rocklin, and Rancho Cordova.

On August 2, 2018, Cannon and his co-defendant, Candice Freitas, were arrested at their RV parked in a hotel parking lot in Rancho Cordova. They were found to be in possession of stolen mail, checks, multiple stolen and fake California driver’s licenses, at least two passports bearing the names of others, and at least seven counterfeit U.S. Postal Service mail keys.

This case is the product of an investigation by the United States Postal Inspection Service, Sacramento County Sheriff’s Department, Folsom Police Department, and Vacaville Police Department. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.

Cannon remains in custody pending sentencing. Cannon’s co-defendant, Candice Freitas, has pleaded not guilty to the charges in the indictment and she remains in custody pending trial. The charges against her are only allegations; she is presumed innocent until and unless proven guilty beyond a reasonable doubt.

Cannon is scheduled to be sentenced by Judge Troy L. Nunley on October 3, 2019. He faces a maximum statutory penalty of 30 years in prison and a $1,000,000 fine for bank fraud. He also faces a mandatory two-year consecutive sentence for aggravated identity theft. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — On July 8, 2019, United States District Judge Kimberly J. Mueller sentenced the corporation known as American Biodiesel, Inc. for violations of the Clean Water Act, U.S. Attorney McGregor W. Scott announced. 

American Biodiesel, Inc., registered in San Joaquin County as Community Fuels, manufactured biodiesel fuel on property leased from the Port of Stockton.

According to court documents, American Biodiesel, Inc. admitted to allowing the discharge of industrial wastewater into the City of Stockton sewer system in violation of Stockton permitting regulations and the federal Clean Water Act. American Biodiesel, Inc. also admitted to tampering with monitoring devices and methods designed to detect such violations.  Specifically, employees tampered with pH recordings and flow meters for the purpose of underreporting acid and pollutant levels and volumes that would have exceeded the figures allowed under the City’s regulations.

Judge Mueller imposed a three-year term of probation on American Biodiesel, Inc., including various reporting and monitoring conditions. Judge Mueller also fined American Biodiesel, Inc. $401,000 and ordered restitution to the Port of Stockton and the City of Stockton in the amount of $256,206. Judge Mueller further ordered the company to develop and implement an effective compliance and ethics program, which will be submitted to the court for review.

The indictment in the case also charges Christopher Young, 41, of El Dorado Hills, with conspiracy, 12 counts of tampering with monitoring equipment, two counts of unlawful discharge of industrial wastewater, one count of false statements, and one count of witness tampering. Christopher Young was the Director of Operations at the Stockton plant. The same indictment charges his brother Jeremiah Young, 38, of El Dorado, with conspiracy, eight counts of tampering with monitoring equipment, and two counts of unlawful discharge of industrial wastewater. Jeremiah Young was Assistant Operator for Community Fuels from 2014 to 2016.  The Youngs’ cases remain pending before the court. The charges are only allegations; each defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case is the product of an investigation by the EPA’s Criminal Investigation Division, San Joaquin County District Attorney’s Office, City of Stockton Municipal Utilities Department, San Joaquin County Environmental Health Department, Port of Stockton, and California Department of Toxic Substances Control.

Assistant United States Attorneys Samuel Wong, Philip A. Scarborough, and Paul Hemesath are prosecuting the case.

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FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Antonio Ochoa Mejia, (“Mejia”), 48, Ramon Ortega (“Ortega”), 33, and Jorge Armando Gonzalez Martinez (“Martinez”), 38, all Mexican nationals, charging them with conspiring to distribute and possessing with intent to distribute methamphetamine, United States Attorney McGregor Scott announced. 

According to court documents, on April 18, 2019, Mejia and Ortega sold one kilogram of methamphetamine for $4,500 during an undercover transaction in Empire, CA. On May 14, 2019, Mejia sold two kilograms of methamphetamine for $9,000 during an undercover transaction in Ceres. On May 30, 2019, Mejia and Martinez were arrested in Ceres after attempting to deliver 10 kilograms of methamphetamine during an undercover transaction.

This case was the product of an investigation by the Federal Bureau of Investigation and the San Joaquin Metropolitan Narcotics Task Force. Assistant United States Attorney Jessica A. Massey is prosecuting the case.

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

FRESNO, Calif. — Fernando Daniel Ruvalcaba-Velez, 35, of Jalisco, Mexico, pleaded guilty today to being an alien in possession of a firearm, U.S. Attorney McGregor W. Scott announced.

According to court documents, law enforcement officers found Ruvalcaba, an illegal alien who had previously been removed from the United States, in a vehicle in the vicinity of a marijuana cultivation site in the Sequoia National Forest after suspects fled from the site when it was raided. Ruvalcaba flashed his headlights on and off into the woods as a signal to the fleeing suspects. He was in possession of a loaded handgun that he had bought on the street for $600.

This case is the product of an investigation by the U.S. Forest Service and the Fresno County Sheriff’s Office. Assistant U.S. Attorney Karen Escobar is prosecuting the case.

Ruvalcaba is scheduled to be sentenced by U.S. District Judge Lawrence J. O’Neill on Sept. 30. Ruvalcaba faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

The case was part of Operation Forest Watch, an enforcement effort targeting marijuana cultivation on public land and the damage they cause.

SACRAMENTO, Calif. — Charles V. Stanley Jr., 65, of Agua Dulce, was sentenced today by U.S. District Judge John A. Mendez to six years in prison for conspiring to commit bank fraud and wire fraud, U.S. Attorney McGregor W. Scott announced.

According to court documents, Stanley was the owner and operator of Creditor Specialty Service Inc. (CSS), a debt collection company that operated in California, Oregon, and Nevada. Various companies contracted with CSS to collect debts, including credit unions based in Folsom, Sacramento, and Bakersfield. At Stanley’s direction, CSS employees collected money from debtors but underreported to creditors the amounts CSS actually collected. During the scheme, Stanley caused CSS to file lawsuits or settle with debtors without client authorization. After one credit union terminated its contract with Stanley, he continued to demand and collect money from its debtors, and persisted in this fraudulent conduct even after a court ordered Stanley to cease collecting from the credit union’s debtors.

Evidence was presented at sentencing that Stanley’s business maintained three sets of books and that Stanley used about $839,608 of the collected funds for his own personal spending. He also used funds to pay other clients to whom CSS owed money and to cover CSS’s operating costs. Stanley’s conspiracies and schemes caused clients and debtors to lose over $4 million.

This case was the product of an investigation by the FBI and the IRS Criminal Investigation. Assistant U.S. Attorney Matthew Segal prosecuted the case.

BAKERSFIELD, Calif. — Leonard Velazquez-Martinez, 50, of Minnesota, and Joseph Andrade, 38, of Bakersfield, were arrested Monday for conspiring to possess with intent to distribute cocaine and methamphetamine, U.S. Attorney McGregor W. Scott announced.

At the time of his arrest, Andrade was employed as a Correctional Officer at Wasco State Prison in Wasco, California.

According to court documents, in June 2019, in Kern County, the defendants conspired to purchase approximately 40 pounds of methamphetamine and two kilograms of cocaine from an individual who defendants believed was a narcotics supplier, but who was actually an undercover law enforcement officer. On June 24, 2019, the defendants arrived at a location in Kern County to purchase the methamphetamine and cocaine from the undercover officer. Andrade was driving a vehicle registered to him, and Velazquez occupied the front passenger seat. Velazquez directed the undercover officer’s attention to a grocery bag containing money, which was on the passenger-side floorboard of the vehicle. The defendants were arrested shortly thereafter.

This case is the product of an investigation by the Drug Enforcement Administration and the Kern County Sheriff’s Office. Assistant U.S. Attorney Angela Scott is prosecuting the case.

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

SACRAMENTO, Calif. — John Michael Herron II, 38, of Stockton, was sentenced today by U.S. District Judge John A. Mendez to six years and three months in prison for conspiracy to commit mail fraud and identity theft, U.S. Attorney McGregor W. Scott announced.

According to court documents, from at least December 2014 through January 2018, Herron participated in a scheme to defraud the State of California Employment Development Department (EDD) by filing fraudulent claims for unemployment insurance benefits. In furtherance of this scheme, Herron and his co-defendant, Robert Maher, formerly of Stockton, created fictitious companies and fictitious employees (by using the real identities of persons with and without their knowledge), and filed claims with EDD, falsely stating that the employees had been laid off or fired. The unemployment benefits were deposited onto debit cards that were mailed to addresses controlled by Herron, Maher, or their associates. ATM cameras captured Herron withdrawing unemployment benefit funds using a debit card registered to an identity theft victim. Herron was connected to approximately $578,185 in fraudulent claims to EDD, of which approximately $485,685 was paid out by EDD.

“John Michael Herron II conspired with his co-defendant to defraud EDD by filing for unemployment insurance benefits in the names of identity theft victims who were not entitled to such benefits. We will continue to work with our law enforcement partners and state workforce agencies to protect the integrity of unemployment insurance benefit programs,” said Abel Salinas, Special Agent-in-Charge, Los Angeles Region, U.S. Department of Labor Office of Inspector General.

“Today’s sentencing sends a clear message that fraud will not be tolerated,” said EDD Director Patrick W. Henning. “EDD proudly works alongside our law enforcement partners to safeguard these vital public benefits and pursue aggressive action against fraud whenever possible.”

This case is the product of an investigation by the U.S. Department of Labor Office of Inspector General, the Federal Bureau of Investigation, and the California Employment Development Department’s Investigation Division. Assistant U.S. Attorney Amy Schuller Hitchcock is prosecuting the case.

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

FRESNO, Calif. — A criminal complaint was unsealed today against four individuals, including the president of the Modesto Hells Angels Motorcycle Club, charging them with conspiracy to distribute and possess with intent to distribute methamphetamine, U.S. Attorney McGregor W. Scott announced.

Charged in the criminal complaint are Modesto residents Randy Picchi, 61, president of the club; his wife Tina Picchi, 51; Michael Mize, 61; and Michael Pack, 32, a prospect with the club. Randy Picchi, Tina Picci, and Mize were arrested today and are in custody. They will appear in federal court on Wednesday in Fresno.

According to court documents, Randy Picchi led a drug conspiracy and directed Tina Picchi to regularly deliver drugs to Mize and other individuals in Ceres. Randy Picchi also enlisted Pack to help obtain methamphetamine on at least one occasion. Pack was stopped by law enforcement and found to have 499 grams of methamphetamine in his possession.

On another occasion, Randy Picchi directed Tina Picchi to drive from Modesto to Redding to deliver methamphetamine to a customer. On the way, Tina Picchi was stopped by law enforcement and found with approximately 4 ounces of methamphetamine, which she had wrapped in a plastic glove and hidden in a cup of soda.

As part of the investigation, officers executed search warrants on Tuesday in seven locations in Stanislaus County, including the clubhouse of the Hells Angels Motorcycle Club in Modesto.

This case is the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the IRS Criminal Investigation, the Central Valley Gang Impact Task Force, the Modesto Police Department, the Turlock Police Department, the Stanislaus County District Attorney’s Office, the California Department of Corrections and Rehabilitation, and the California Highway Patrol. Assistant U.S. Attorneys Ross Pearson and Laurel Montoya are prosecuting the case.

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

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

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

SACRAMENTO, Calif. – An indictment was unsealed today following the arrests of Nery Martinez, 50, and Maura Martinez, 50, of Shasta Lake. The indictment charges the defendants with conspiracy, forced labor, and alien harboring for financial gain. Assistant Attorney General Eric Dreiband of the Justice Department’s Civil Rights Division, U.S. Attorney McGregor W. Scott of the Eastern District of California, and Special Agent in Charge Sean Ragan of the FBI’s Sacramento Division made the announcement.

According to the allegations in the indictment, between September 2016 and February 2018, the defendants conspired to bring a Guatemalan woman and her two minor daughters to the United States using temporary visitor visas, harbored them after their visas expired, and forced them to work long hours at a restaurant and cleaning service for minimal to no pay. The indictment further alleges that the defendants imposed a debt on the victims to prevent them from returning to Guatemala; subjected them to physical, psychological, and verbal abuse; threatened them with arrest; and separated the Guatemala woman from her daughters, all to compel their labor.

An indictment is merely an allegation, and the defendants are presumed innocent until proven guilty. If convicted of forced labor and conspiracy to commit forced labor, the defendants face sentences up to 20 years in prison, as well as mandatory restitution. If convicted of alien harbor for financial gain and conspiracy to commit alien harboring, the defendants face up to 10 years in prison.

The case is the product of an investigation by the FBI’s Sacramento Division. It is being prosecuted by Trial Attorney Avner Shapiro for the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Amy Schuller Hitchcock for the Eastern District of California.

Sacramento was one of six districts designated through a competitive, nationwide selection process as a Phase II Anti-Trafficking Coordination Team, through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.

SACRAMENTO, Calif. — Jeffrey R. David, 44, was sentenced today by U.S. District Judge William B. Shubb to seven years in prison for wire fraud and aggravated identity theft, U.S. Attorney McGregor W. Scott announced.

U.S. Attorney Scott stated: “David used his high-ranking position with the Sacramento Kings to deceive businesses across the country into sending him millions of dollars. The brazen scheme involved forgeries, stolen corporate executive identities, money laundering, and even instructing a former colleague to destroy evidence. Thanks to the fast actions of the Kings organization, the FBI, and attorneys in this office, the fraud did not result in the permanent deprivation of the $13.4 million that David intended to steal from his victims, as that money was recovered through timely government seizures and forfeitures. Today’s sentence should deter others from committing substantial frauds such as this one.”

“Mr. David violated the trust of his employer and clients, siphoning millions from agreements to fund purchases he could not otherwise afford. Asset forfeiture of real estate purchased with the misappropriated funds was able to restore the losses the organization suffered as a result of Mr. David’s crimes but trust is much more difficult to repair,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “This case exemplifies the FBI’s commitment to investigating large-scale financial fraud to ensure the integrity of financial transactions and ensure that those who commit greed-fueled financial crime face justice.”

According to court documents, David served as the Chief Revenue Officer for the Sacramento Kings, a professional sports franchise. As part of his duties, he negotiated sponsorship and other marketing agreements with companies in California and elsewhere. From October 2012 through July 2016, David used this position to defraud these companies by representing to them that payments they made were going to the Kings, when in fact the payments were going to bank accounts under his sole control, held in the name of Sacramento Sports Partners LLC. The Kings did not know about these payments or this LLC at the time the payments were solicited and made. In total, David stole approximately $13.4 million from five companies in California and elsewhere.

In particular, David took advantage of the King’s opening of a new stadium by amending, without the franchise’s knowledge, two major sponsorship agreements from the Golden 1 Credit Union and Kaiser Permanente, a nonprofit health care plan, so that $9 million and $4.4 million wires from these entities went to accounts controlled by David, rather than the Kings. In order to accomplish this fraud, David forged the signatures of various individuals, including the then-president of the Kings, the president and chief executive officer of the Golden 1, and an executive at Kaiser Permanente.

David used the fraud proceeds to purchase and remodel real estate in Hermosa Beach and Manhattan Beach, in Southern California. He also spent the fraud proceeds on various personal expenses, including checks to family members, a private jet membership, and substantial credit card bills. The United States moved to forfeit and seize these properties and other assets held by David, and the professional sports franchise has received over $13.2 million in restitution to date.

This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Michael D. Anderson, Matthew M. Yelovich, and Kevin C. Khasigian are prosecuting the case.

SACRAMENTO, Calif. — Loretta Darlene Stewart-Cabrera, also known as Loretta Dexter, 54, of Sacramento, pleaded guilty today to wire fraud and money laundering, U.S. Attorney McGregor W. Scott announced.

According to court documents, Stewart-Cabrera was a professional fiduciary who served as the trustee of a trust that owned a Sacramento property. After the trust grantor died in December 2012, Stewart-Cabrera executed a scheme to obtain and spend the trust assets. Stewart-Cabrera did this by selling the trust’s property, only distributing to the trust beneficiaries approximately $30,000 of the more than $300,000 she received from the sale of the property, and spending the remaining money without the permission or knowledge of the trust beneficiaries. She used a portion of the trust funds to gamble and dine in Las Vegas casinos, pay family members, and purchase merchandise.

This case is the product of an investigation by the Federal Bureau of Investigation and IRS Criminal Investigation. Assistant U.S. Attorney Brian A. Fogerty is prosecuting the case.

Stewart-Cabrera is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on September 9. Stewart-Cabrera faces a maximum statutory penalty of 20 years in prison and fine of $250,000 for the wire fraud count; for the money laundering count, she faces a maximum statutory penalty of 10 years in prison, and a fine of $250,000 or twice the value of the property involved in the money laundering transactions. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

An indictment was unsealed today in federal court in the Eastern District of California following the arrests of Nery A. Martinez Vasquez, 50, and Maura N. Martinez, 50, of Shasta Lake, California. The indictment charges the defendants with conspiracy, forced labor, and alien harboring for financial gain. Assistant Attorney General Eric Dreiband of the Justice Department’s Civil Rights Division, U.S. Attorney McGregor W. Scott of the Eastern District of California, and Special Agent in Charge Sean Ragan of the FBI’s Sacramento Division made the announcement. 

According to the allegations set forth in the indictment, between September 2016 and February 2018, the defendants conspired to bring a Guatemalan woman and her two minor daughters to the United States using temporary visitor visas, harbored them after their visas expired, and forced them to work long hours at a restaurant and cleaning service for minimal to no pay. The indictment further alleges that the defendants imposed a debt on the victims to prevent them from returning to Guatemala, subjected them to physical, psychological, and verbal abuse, threatened them with arrest, and separated the Guatemalan woman from her daughters, all to compel their labor.

An indictment is merely an allegation, and the defendants are presumed innocent until proven guilty. If convicted of forced labor and conspiracy to commit forced labor, the defendants face sentences up to 20 years in prison, as well as mandatory restitution. If convicted of alien harboring for financial gain and conspiracy to commit alien harboring, the defendants face up to ten years in prison.

The case is being investigated by the FBI’s Sacramento Division. It is being prosecuted by Trial Attorney Avner Shapiro for the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Amy Schuller Hitchcock for the Eastern District of California.

Sacramento was one of six districts designated through a competitive, nationwide selection process as a Phase II Anti-Trafficking Coordination Team, through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.

SACRAMENTO, Calif. — A grand jury returned a superseding indictment on Thursday that added money laundering charges to six defendants first charged in 2017 in a scheme to use money from China to buy houses to grow marijuana, U.S. Attorney McGregor W. Scott announced.

Charged with money laundering are Xiu Ping Li, 42 of New Jersey, Xiu Ru Li, 46, of Sacramento, Dao Zhong Wei, 50, of Sacramento, Shui Ping Zheng, 56, of Michigan, and Texas residents Kong Liang Li, 53, and You An Li, 53.

According to the charging documents, the defendants conspired with each other and others to wire transfer approximately $870,000 from China to buy six houses for growing marijuana or to pay off the lenders in order to continue growing marijuana in the house.

This case is the product of an investigation by IRS Criminal Investigation, Federal Bureau of Investigation, the Drug Enforcement Administration, and Homeland Security Investigations. Assistant U.S. Attorney Roger Yang is prosecuting the case.

If convicted, the defendants face a maximum statutory penalty on the money laundering charges of 20 years in prison, a fine of up to $500,000 or twice the value of the funds involved, or both. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — On June 17, 2019, Carlos Montano, aka “Loco,” 29, of Fresno, was sentenced by U.S. District Judge Lawrence J. O'Neill to 21 years and 10 months in prison for conspiracy to distribute methamphetamine, being a felon in possession of a firearm, and interstate transportation for prostitution, United States Attorney McGregor W. Scott announced.

According to court documents, Montano was an influential member of the Fresno Bulldogs criminal street gang. Between April 2017 and July 2017, Montano distributed multiple pounds of crystal methamphetamine in the Fresno area, often using others in his distribution activities. During the investigation, Montano discussed the possession and use of weapons, and on two separate occasions, he fled from officers who were attempting to apprehend him.  Montano engaged in commercial sex trafficking, exploiting women in multiple cities, including Los Angeles, San Francisco, Las Vegas and New York. 

This case is the product of an investigation by Homeland Security Investigations, Federal Bureau of Investigation, Drug Enforcement Administration, Fresno Police Department, Multi Agency Gang Enforcement Consortium, Fresno County Sheriff’s Office, and Fresno County District Attorney’s Office. Assistant U.S. Attorneys Kimberly A. Sanchez, Jeffrey A. Spivak, and Thomas Newman prosecuted the case.

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

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

FRESNO, Calif. — The Ninth Circuit Court of Appeals affirmed the convictions of former Fresno deputy police chief Keith Foster, 55, for criminal conspiracies involving heroin and marijuana, U.S. Attorney McGregor W. Scott announced today.

On May 23, 2017, a federal jury in Fresno found Foster guilty of conspiracy to distribute and possess with intent to distribute heroin and conspiracy to distribute and possess with intent to distribute marijuana. On November 13, 2017, U.S. District Judge Anthony W. Ishii sentenced Foster to four years in prison. Foster then filed an appeal, challenging his two criminal convictions. The Ninth Circuit Court of Appeals rejected Foster’s claims and upheld his convictions.

The court found that Foster’s “phone calls and text messages with co-conspirators … sufficiently demonstrated Foster’s role in the conspiracy to distribute heroin.” Foster discussed heroin types, prices and other details with a supplier. The court also found that Foster’s calls with his nephew “sufficiently established his role in the conspiracy to distribute marijuana.” When Foster’s nephew was arrested with 6 pounds of marijuana in the trunk of his car, Foster said that he could have provided “cover” for him if he had been asked, and he also said that he would see what his “narc guys” could do for the nephew.

This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation. Assistant U.S. Attorneys Melanie L. Alsworth and Henry Z. Carbajal III prosecuted the case.

SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment today against Arturo Zavaleta, 39, of Mexico, charging him with trafficking in heroin, methamphetamine, and possessing a firearm in furtherance of a drug crime, United States Attorney McGregor Scott announced. 

According to court documents, on June 3, 2019, DEA agents served a search warrant at Zavaleta’s residence in Turlock, California. During a search of the master bedroom, agents discovered heroin, methamphetamine, and three firearms. The home was outfitted with a surveillance camera. In the backyard, agents found approximately 200 marijuana plants and approximately 300 apparent opium poppy bulbs.

This case was the product of an investigation by the Sacramento Drug Enforcement Administration and California Department of Corrections and Rehabilitation. Assistant United States Attorneys Jason Hitt, Amanda Beck, Ross Pearson, and David Spencer are prosecuting the case.

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

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

FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Jose Toscano-Ruelas, 43, a foreign national, charging him with being a felon in possession of a firearm, being an illegal alien in possession of a firearm, and being a deported alien found in the United States, U.S. Attorney McGregor W. Scott announced. 

According to court documents, Toscano-Ruelas received fifteen drug trafficking-related convictions in Tulare County, California in July 2003. He was subsequently deported in December 2005 and never obtained permission to return to the United States. In May 2019, Toscano-Ruelas was found in Tulare County in possession of a semi-automatic pistol.  

This case was the product of an investigation by Immigration and Customs Enforcement (ICE) and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).  Assistant United States Attorney Laura D. Withers is prosecuting the case. 

Toscano-Ruelas is currently in custody.

If convicted, Toscano-Ruelas faces a maximum statutory penalty of 20 years in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — A federal grand jury returned a two-count superseding indictment today against Marco Antonio Lopez-Rubio, 35, a foreign national, charging him with failing to register or update his registration as a sex offender and being a deported alien found in the United States, U.S. Attorney McGregor W. Scott announced. 

According to court documents, from May 2019 until June 2019, Lopez-Rubio was present in the State of California but failed to register as a sex offender as required by law.  In 2008, Lopez-Rubio was convicted in California for forcible rape, at which time he acquired his registration requirement. He was subsequently deported from the United States and never obtained permission to return to the United States.

This case was the product of an investigation by the U.S. Marshals Service and Immigration and Customs Enforcement, Enforcement and Removal Operations. Assistant United States Attorney Laura D. Withers is prosecuting the case.

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

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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.

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.

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.

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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.

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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, 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.

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.

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.

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.

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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.

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.

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.

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.

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.

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.