Eastern District of California
Press releases recorded for this federal judicial district.
Four Indicted for Firearms Offenses in Vallejo, Vacaville, Oroville, and StocktonRead the Press Release
SACRAMENTO, Calif. — As part the U.S. Attorney’s Office for the Eastern District of California’s strategy to reduce violent crime by focusing on firearms prosecutions, U.S. Attorney McGregor W. Scott announced that a federal grand jury returned indictments in the following cases involving illegal firearms offenses.
Jake Edward Howland, 22, of Vallejo, was charged with one count of possessing a machine gun illegally. According to court documents, on February 24, 2019, sheriff’s deputies responded to a call reporting that someone was shooting a fully automatic weapon on the levee in the unincorporated area of Solano County, near Dixon. The deputies located Howland and found an empty .40-caliber high-capacity ammunition magazine on his person along with a .40-caliber pistol nearby that had been modified to function as a machine gun. Several witnesses had seen Howland firing the pistol before the deputies arrived. This case is the product of an investigation by the Solano County Sheriff’s Office with assistance from the FBI’s Solano County Violent Crimes Task Force and the Solano County District Attorney’s Office.
Kenny Xyrus Losito, 30, of Vacaville, was charged with one count of possessing a firearm as a felon. According to court documents, on March 14, 2019, during a traffic stop, officers noticed a pistol hidden under Losito’s leg on the driver’s seat. A search of the vehicle revealed over 1 pound of marijuana, several dozen Alprazolam (Xanax) pills, and a loaded Ruger 9 mm pistol. Losito was also carrying over $5,000 in cash at the time. Losito cannot lawfully possess firearms or ammunition because he has previously been convicted of a felony offense. This case is the product of an investigation by the Vacaville Police Department with assistance from the FBI’s Solano County Violent Crimes Task Force and the Solano County District Attorney’s Office.
Christopher Ballez, 34, of Oroville, is charged with one count of being a felon in possession of a firearm. According to court documents, sheriff’s deputies recovered a Sig Sauer handgun by the side of the road after Ballez had attempted to discard it while being followed by a deputy. Ballez is a previously convicted felon and is therefore prohibited from possessing a firearm. This case is the product of an investigation by the Butte County Sheriff’s Office and the FBI. Assistant U.S. Attorney James Conolly is prosecuting the case.
Marquez Jeter, 42, of Stockton, was charged with one count of unlawful trafficking in firearms, three counts of being a felon in possession of a firearm, and one count of illegal possession of a machinegun. According to court documents, on March 13, 2019, Marquez Jeter sold a Glock pistol to a confidential informant in exchange for $1,200. On April 10, 2019, Jeter offered the confidential informant access to a new supply of firearms. The next day, Jeter sold him 15 guns for $16,500. Jeter is a previously convicted felon and cannot lawfully possess firearms. This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Michael W. Redding is prosecuting the case.
If convicted, Howland, Losito, and Ballez face a maximum statutory penalty of 10 years in prison and a $250,000 fine. If convicted, Jeter faces five years in prison and a $250,000 fine for unlawful dealing in firearms, 10 years in prison for illegal possession of a machinegun, and 10 years in prison and a $250,000 fine for the three counts of being a felon in possession of a firearm. 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.
These cases were 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.
Fresno Couple Indicted for Drug Possession and ConspiracyRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Edilberto Vidrio, 53, and Elena Castillo, 46, both of Fresno, charging them with conspiracy to distribute and possess with the intent to distribute methamphetamine, cocaine and heroin, and possession with the intent to distribute methamphetamine, cocaine, and heroin, U.S. Attorney McGregor W. Scott announced.
According to court documents, Fresno police officers assisted Monterey County District Attorney’s Office to serve a search warrant unrelated to narcotics at Vidrio and Castillo’s apartment. They found approximately 30 pounds of methamphetamine, a pound of cocaine, and 1.8 pounds of heroin packaged for sale in their apartment. Scales and other items associated with the sale of narcotics were also found in their apartment.
This case is the product of an investigation by the Fresno Police Department, the Drug Enforcement Administration, and the Monterey County District Attorney’s Office. Assistant U.S. Attorney Laurel J. Montoya is prosecuting the case.
If convicted, Vidrio and Castillo 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.
Founder and CEO of Fresno Substance Abuse Treatment Center Arraigned Today for Defrauding Health Insurance CarriersRead the Press Release
FRESNO, Calif. — A federal grand jury returned an eight-count indictment on April 11 against Orlando Gillam, 45, of Fresno, charging him with mail fraud for a scheme that defrauded insurance carriers, U.S. Attorney McGregor W. Scott announced.
According to court documents, Gillam is the founder and CEO of Dunamis Inc. Group Home, a nonprofit that provided services that included alcohol and drug treatment and counseling. Between January 2016 and January 2018, Gillam falsely billed insurers hundreds of thousands of dollars for alcohol and drug treatment and counseling, mental health treatment, and group and individual psychotherapy purportedly rendered to multiple individuals. Those individuals did not receive the services billed, and several were not Dunamis clients.
This case is the product of an investigation by the Federal Bureau of Investigation and the Office of Personnel Management Office of Inspector General. Assistant U.S. Attorney Vincente A. Tennerelli is prosecuting the case.
If convicted, Gillam faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Federal Jury Finds Sacramento Loan Officers Guilty in Mortgage Fraud ConspiracyRead the Press Release
SACRAMENTO, Calif. — On Tuesday, after a six-day trial, a federal jury found Jaime Mayorga, 40, and Ruben Rodriguez, 42, both of Sacramento, guilty of one count of conspiracy to commit wire fraud, U.S. Attorney McGregor W. Scott announced.
U.S. Attorney Scott stated: “Mayorga and Rodriguez took advantage of members of the Latino community who hoped to become homeowners and manipulated the real estate process for personal gain. As so often occurs in these cases, the result was losses to the financial institutions and neighborhoods burdened with foreclosed properties. We are grateful for the diligence and professionalism of the FBI in investigating this case.”
On July 14, 2011, Mayorga, Rodriguez, and five others were charged by indictment with conspiracy to commit wire fraud. The defendants, including Mayorga and Rodriguez, worked for Delta Homes & Lending, a Sacramento-based real estate and mortgage lending company that falsified home loan applications to obtain mortgage loans for borrowers, many of whom did not and could not qualify for a loan without the lies submitted by Delta employees. Mayorga and Rodriguez were real estate agents and loan officers. The now defunct Delta Homes was founded by co-defendant Moctezuma “Mo” Tovar, 49, of Sacramento.
According to court documents, Delta opened one office in 2003 and eventually had multiple offices in Sacramento, with additional branch offices in Woodland, Yuba City, and Southern California. Rodriguez and Mayorga both started working at the original Delta office on Enterprise Drive in Sacramento. Later, they both moved to a branch on Franklin Boulevard, and Rodriguez went on to work at other Delta branches, including a large branch office located on Howe Avenue.
According to court documents and evidence presented at trial, Delta targeted the Latino community with advertisements in Spanish that heralded the company’s ability to obtain home loans for borrowers who otherwise would not qualify for a mortgage. In addition to advertisements in which Delta claimed to be “Hispanics Serving Hispanics,” Delta employees solicited clients at flea markets and by going door-to-door through the community.
In order to obtain mortgages, the defendants falsified information on loan applications regarding the clients’ income, occupation, and personal savings. Straw buyers were sometimes used when the true borrower did not have a sufficient credit score to qualify. The defendants also deposited money into borrowers’ bank accounts to meet the lenders’ requirement that the borrower have money on hand, taking the money back after acquiring the verification of deposited funds that the lenders also required.
The evidence at trial showed that the defendants’ fraud was also personally lucrative. During the investigation, Rodriguez estimated that in 2006 alone, he earned more than $400,000. Similarly, Mayorga told agents that although he earned a salary when he started at Delta, he shifted to commission-based compensation and then earned between 50 and 85 % of the brokerage fees. Mayorga stated that he earned more than $500,000 in 2005.
The aggregate sale price of the homes involved in the conspiracy was in excess of $10 million, and as a result of the conspiracy, mortgage lenders and others suffered losses of at least $4 million.
Co-defendants Tovar, Manuel Herrera, 39, of Davis; Sandra Hermosillo, 57, of Woodland; and Jun Michael Dirain, 46, of Antelope, all pleaded guilty to one count of conspiracy to commit wire fraud. Christian Parada-Renteria, 43, of Woodland, pleaded guilty to two counts of concealing felonies related to the wire fraud conspiracy.
Rodriguez and Mayorga are scheduled to be sentenced on August 6 by U.S. District Judge John A. Mendez. The court has not yet set a sentencing date for Tovar, Herrera, Hermosillo, and Dirain. Parada-Renteria was sentenced to serve one year in prison.
Each of the defendants faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Brian A. Fogerty and Justin L. Lee are prosecuting the case.
Arrested for Transporting Heroin in Siskiyou County, Escondido Man Sentenced to 10 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — Ruben Ruiz Jr., 27, of Escondido, was sentenced today by U.S. District Judge John A. Mendez to 10 years in prison for possessing heroin for distribution, U.S. Attorney McGregor W. Scott announced.
Ruiz pleaded guilty on June 19, 2018. According to court documents, on February 28, 2018, a California Highway Patrol officer stopped Ruiz while he was driving northbound on Interstate 5 near Mt. Shasta in Siskiyou County. When the officer had his narcotics detection canine run a sweep around Ruiz’s truck, the dog alerted. A subsequent search revealed over 14 pounds of heroin. Ruiz was on federal supervised release at the time, after having been released from federal custody for a separate narcotics offense three months earlier.
According to the plea agreement, Ruiz said that he was supposed to receive a call when he arrived in Portland with further instructions.
This case was the product of an investigation by the Drug Enforcement Administration, the California Highway Patrol, and the Siskiyou Unified Major Investigations Team.
Former IRS Employee Arrested Today After Being Indicted for Filing False Tax ReturnsRead the Press Release
FRESNO, Calif. — A federal grand jury returned an 18-count indictment on April 11 against Deena Vang Lee, 38, of Fresno, charging her with wire fraud, aggravated identity theft, aiding and assisting in the preparation and presentation of false and fraudulent tax returns, and making and subscribing false and fraudulent tax returns, U.S. Attorney McGregor W. Scott announced.
According to court documents, between February 2012 and February 2016, Lee prepared tax returns for a fee for friends, family, and other acquaintances that claimed thousands of dollars in tax credits for education and child care expenses that were not actually incurred. Lee also submitted fraudulent tax returns on her own behalf, failing to report the income from her tax preparation services.
This case is the product of an investigation by IRS Criminal Investigation and the Treasury Inspector General for Tax Administration. Assistant U.S. Attorney Vince Tennerelli is prosecuting the case.
If convicted, Lee faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Mexican National Sentenced to over 6 Years in Prison for 15 Pound Methamphetamine Deal in Kern CountyRead the Press Release
FRESNO, Calif. — Oscar Ivan Salazar-Avalos (Salazar), 29, a citizen of Mexico, was sentenced today to six years and nine months in prison for conspiring to distribute and possess with intent to distribute methamphetamine, U.S. Attorney McGregor W. Scott announced.
Salazar’s sentence follows his guilty plea last November. According to court documents, Salazar and co-defendant Jose Manuel Sotelo-Mendoza, 26, of Ceres, delivered 15 pounds of methamphetamine to an undercover officer in Delano after Salazar negotiated with the officer for the delivery of the drug for $3,400 per pound for a total of $51,000. Salazar and Sotelo met the source of supply in Castaic in the northern part of Los Angeles County to obtain the methamphetamine.
Sotelo pleaded guilty on February 19. He is scheduled to be sentenced on May 20.
This case is the product of an investigation by the Central Valley High Intensity Drug Trafficking Area Task Force, consisting of law enforcement officers of Homeland Security Investigations, California Highway Patrol, Bureau of Investigation of the California Department of Justice, Fresno Police Department, and Fresno County Sheriff’s Office. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
Mexican National Pleads Guilty to Marijuana Cultivation in Wilderness AreaRead the Press Release
FRESNO, Calif. — Mauricio Vaca-Bucio (Vaca), 31, of Michoacán, Mexico, pleaded guilty today to conspiring to manufacture, distribute, and possess with intent to distribute marijuana, U.S. Attorney McGregor W. Scott announced.
According to court documents, Vaca and his co-defendants Felipe Angeles Valdez‑Colima, 35, and Rodolfo Torres-Galvan, 29, also of Mexico, were apprehended after a two-month investigation in the Kiavah Wilderness, a federally designated wilderness area in the Sequoia National Forest. Law enforcement officers saw Torres and Valdez emerge from the forest and enter a Camaro driven by Vaca. They were subsequently stopped in Weldon. Officers found freshly harvested marijuana in the Camaro and located over 1,800 marijuana plants at the grow site on the trail that led to the drop point. The officers also found deadly illegal pesticides, including carbofuran and zinc phosphide, in both the vehicle and at the grow site. In pleading guilty, Vaca agreed to pay over $7,000 in restitution to the U.S. Forest Service for the damage he caused to the National Forest.
The United States Congress designated the Kiavah Wilderness in 1994, and it is managed by the Bureau of Land Management and the Forest Service. This wilderness area is part of the National Cooperative Land and Wildlife Management Area and the Bureau of Land Management’s Jawbone-Butterbredt Area of Critical Environmental Concern.
This case is the product of an investigation by the U.S. Forest Service with assistance from Enforcement and Removal Operations of Immigration and Customs Enforcement (ICE), Campaign Against Marijuana Planting (CAMP), California Department of Fish and Wildlife, California National Guard, Kern County Sheriff’s Office, and Kern County Probation Office. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
Vaca is scheduled for sentencing on July 29. He faces a minimum statutory penalty of 10 years in prison and a maximum statutory penalty of life in prison, along with a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. Valdez and Torres previously entered guilty pleas and are set for sentencing on May 20 and April 29, respectively.
Sacramento Man Sentenced to over 2 Years for Obstruction of Justice and PerjuryRead the Press Release
SACRAMENTO, Calif. — Joseph Woloszyn, 33, of Sacramento, was sentenced today by U.S. District Judge John A. Mendez to two years and three months in prison for obstruction of justice and perjury, U.S. Attorney McGregor W. Scott announced.
According to court documents, on June 28, 2017, Woloszyn provided false testimony under oath at a district court evidentiary hearing in the case of United States v. M.W. (2:13‑cr‑067-KJM). Woloszyn testified on behalf of the defendant and provided false statements related to his gang tattoos, nickname, phone number, and contacts with the defendant. Prior to his testimony, during a recorded jail call, Woloszyn told the defendant, “When they come to me, good luck.” Woloszyn further assured the defendant, “I’m going to stay solid all the way through, regardless.”
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Cameron L. Desmond prosecuted the case.
Madera Pharmacist Arrested on Drug Trafficking ChargesRead the Press Release
FRESNO, Calif. — A Madera pharmacist and two others were arrested today in connection with a conspiracy to distribute oxycodone and hydrocodone, U.S. Attorney McGregor W. Scott announced.
On April 11, a federal grand jury returned a 42-count indictment, charging Ifeanyi Vincent Ntukogu, 44, of Fresno, a pharmacist, with one count of conspiracy to distribute and possess with intent to distribute controlled substances and 17 counts of distribution of controlled substances. Kelo White, 38, of Fresno, was charged with one count of conspiracy to distribute and possess with intent to distribute controlled substances and 12 counts of possession with intent to distribute controlled substances. Donald Ray Pierre, 50, of Fresno, was charged with one count of conspiracy to distribute controlled substances, 10 counts of possession with intent to distribute controlled substances, and two counts of identity theft.
According to court documents, Ntukogu owned and operated New Life Pharmacy in Madera. Between December 2014 and November 2018, Ntukogu filled fraudulent prescriptions for oxycodone and hydrocodone, Schedule II controlled substances, then dispensed the controlled substances to White and Pierre.
This case is the product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, and the California Department of Health Care Services. Assistant U.S. Attorney Melanie L. Alsworth is prosecuting the case.
Ntukogu was arrested at the New Life Pharmacy in Madera and White and Pierre were arrested at their homes in Fresno.
If convicted, Ntukogu, White and Pierre each face a maximum statutory penalty of 20 years in prison and a $1 million fine in connection with the drug charges. Additionally, Pierre faces a maximum statutory penalty of 20 years in prison and a $250,000 fine in connection with the identity theft charges. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Source of Supply for Bakersfield Synthetic Marijuana Traffickers Sentenced to over 5 Years in PrisonRead the Press Release
FRESNO, Calif. — Haitham Eid Habash, aka Eddie Habash, 55, of Hawthorne, was sentenced today to five years and three months in prison for his role in supplying synthetic drugs to wholesale internet drug traffickers, U.S. Attorney McGregor W. Scott announced. Habash was also ordered to forfeit over $193,000 in proceeds derived from drug trafficking.
According to court documents, in 2015, Habash manufactured smokeable synthetic cannabinoids, commonly known as “spice,” which contained AB-Chminaca, AB-Pinaca, and XLR11, all of which are Schedule I controlled substances. Habash personally negotiated with and obtained the raw chemicals directly from Chinese suppliers. He would then dilute them with a solvent before mixing them with flavoring to add to dried plant material. Habash sold his drugs under various brand names, including Bizarro and his own special blend, Mr. High. His customers included his co-defendant Majed Bashir Akroush, aka Magic Mike, 51, of Bakersfield, who sold Habash’s product over the internet under the business names of Magic Mans Wholesale, Blue Whale Wholesale, and World of Incense.
According to the plea agreement, on April 14, 2015, CHP officers intercepted 95 pounds of synthetic cannabinoid products manufactured by Habash in Bakersfield.
The case against Akroush is still pending. He is charged with the drug conspiracy and two substantive drug offenses, all of which carry a maximum statutory penalty of 20 years in prison and a $1 million fine. Akroush is also charged with conspiring to structure several million dollars obtained from his drug trafficking activity. The structuring charge carries a maximum statutory penalty of five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by the U.S. Drug Enforcement Administration, IRS Criminal Investigation, Federal Bureau of Investigation, Homeland Security Investigations, U.S. Postal Inspection Service, California Highway Patrol, California Department of Motor Vehicles, Kern County Probation, Kern County Sheriff’s Office, and Bakersfield Police Department. OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of OCDETF 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 U.S. Attorney Karen A. Escobar is prosecuting the case.
U.S. Attorney’s Office Dedicates the John K. Vincent Memorial Conference RoomRead the Press Release
SACRAMENTO, Calif. — Today, the U.S. Attorney’s Office dedicated the John K. Vincent Memorial Conference Room to honor the legacy of their friend and colleague.
John Vincent provided selfless service to the U.S. Attorney’s Office and his country for more than thirty-two years until his untimely death in 2018. His tenure in the office was marked by inspiring leadership, devoted service, tenacious advocacy on behalf of the United States, and steady guidance as the office’s moral and ethical guiding star in the pursuit of justice.
John Vincent was a public servant of the highest order. He came to the office as an Assistant U.S. Attorney (AUSA) in 1986 and was promoted to Chief of the Special Prosecutions Unit in 1997, a role he held until 2000. He was then promoted to First Assistant U.S. Attorney, and in 2001, he became Acting and then court-appointed U.S. Attorney until 2003. In 2003, Mr. Vincent became the district’s Criminal Chief, a role he held until 2018 while continuing to carry his own portfolio of complex cases and supervising the office’s National Security Unit. His contributions to the office were invaluable and helped to form and sustain the heart and soul of the office. Mr. Vincent exemplified integrity, and he personified the principle that the office’s mission is to always do the right thing for the right reason.
In recognition of his public service, Mr. Vincent was awarded the Director’s Award three times: in 1991 and 1996 for Superior Performance as an AUSA, and then in 2018 for Superior Performance in a Managerial Role. He worked tirelessly to pursue justice, and he embodied the best qualities of a prosecutor and a leader.
To recognize John Vincent’s many contributions to the Office, U.S. Attorney McGregor W. Scott chose to dedicate the main conference room in the U.S. Attorney’s Office in Sacramento in his honor. This facility is the heart of the office and is used almost continually to hold presentations, trainings, press conferences, staff meetings, and holiday events. It is the room that AUSAs enter on their first day of service to take their oath and where the office celebrates AUSAs as they bid their farewell. It is fitting that John Vincent’s name will overlook the many activities that will take place in this room.
Former Executive Director of Non-profit Sentenced for Embezzling Funds Intended for Domestic Violence VictimsRead the Press Release
SACRAMENTO, Calif. — Claudia Humphrey, 62, of American Canyon, was sentenced today by U.S. District Judge Troy L. Nunley to six months in prison and ordered to pay $71,423 in restitution for theft of public money and falsifying records in a federal investigation, U.S. Attorney McGregor W. Scott announced. Judge Nunley ordered Humphrey to self-surrender on May 23 to begin serving her sentence.
According to court documents, Humphrey was the executive director of LIFT3 Support Group Inc., a non-profit organization in Fairfield that offered transitional shelter assistance and other services to victims of sexual assault, domestic violence, and dating violence, primarily serving residents in Solano County. Humphrey, through LIFT3, sought and received federal grants from the Department of Justice, Office on Violence Against Women (OVW) in 2011 and 2012. Humphrey transferred or caused to be transferred over $270,000 in grant funds that were to be used only for assisting victims of domestic violence into bank accounts she controlled. Humphrey used over $70,000 of those victim funds on personal expenses such as travel, shopping, and payments to her family members, among other things.
According to court documents, between October 2014 and August 2015, in an effort to conceal her embezzlement of federal funds, Humphrey obstructed the efforts of an OVW audit of LIFT3. Humphrey falsified purchase documents showing that computers were purchased, and altered and falsified expense ledgers and time sheets.
This case was the product of an investigation by the Department of Justice Office of the Inspector General. Assistant U.S. Attorney Matthew C. Thuesen handled the sentencing in the case.
Fairfield Tax Preparer Indicted for False Tax ReturnsRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 28-count indictment today against Myrna Kawakami, 66, of Fairfield, charging her with assisting in the preparation of false tax returns and filing her own false tax returns, U.S. Attorney McGregor W. Scott announced.
According to court documents, Kawakami ran a tax preparation business in Fairfield called K.I.M. Tax Book Services where she assisted taxpayers in preparing fraudulent federal income tax returns. The returns claimed thousands of dollars in itemized deductions based on ineligible expenses, resulting in fraudulent tax refunds. Kawakami also submitted fraudulent tax returns on her own behalf, significantly underreporting the income from her tax business and claiming education credits based on ineligible expenses. 2:19-cr-067 TLN
On January 24, 2019, a federal grand jury returned a four-count indictment against El Dorado Hills couple Brian Beland, 35, and Denae Beland, 35, charging them with obstructing an IRS investigation. Brian Beland was also charged with filing false tax returns. According to court documents, Brian Beland filed tax returns in 2011, 2012, and 2013, in which he reported false business expenses. Following the initiation of an audit in 2014, Brian and Denae Beland made false statements to IRS revenue agents and provided revenue agents with spreadsheets containing false business expenses in an attempt to obstruct and impede the audit.
2:19-cr-021 WBSThese cases are the product of investigations by the IRS Criminal Investigation.
Assistant U.S. Attorney Mira Chernick is prosecuting U.S. v. Kawakami. Assistant U.S. Attorney Amy S. Hitchcock is prosecuting U.S. v. Beland. If convicted, Kawakami faces a maximum statutory penalty of three years in prison and a $100,000 fine. If convicted, Brian Beland faces a maximum statutory penalty of three years in prison and a $100,000 fine. If convicted, Denae Beland faces a maximum statutory penalty of three years in prison and a $5,000 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.
Bakersfield Woman Sentenced to 7.5 Years in Prison for Possession of Stolen Mail and Possession of Methamphetamine with the Intent to DistributeRead the Press Release
FRESNO, Calif. — Erin Elizabeth Peterson, 41, of Bakersfield, was sentenced Monday to seven and a half years in prison for possession of stolen U.S. mail and possession with intent to distribute methamphetamine U.S. Attorney McGregor W. Scott announced. Peterson was also ordered to pay $92,908 in restitution.
According to court documents, from July to December 2017, Peterson made fraudulent transactions at various retail establishments in Bakersfield using credit and debit cards stolen from the mail. Peterson was identified from photographs obtained from the stores where the stolen cards were used. On December 28, 2017, a federal search warrant was executed at Peterson’s residence and 428 pieces of stolen mail, 31 stolen credit/debit cards, over a hundred personal and business checks and a counterfeit arrow key used to access U.S. community mailboxes were found. Also located in the residence were approximately 140 grams of methamphetamine, $1,400 in cash, drug packaging material, and a digital scale.
Peterson admitted that she had been stealing mail for approximately one year, usually from mailboxes in Bakersfield wherever her counterfeit arrow key would work. Peterson admits that she primarily looked for mail that contained debit or credit cards. When presented with multiple photographs of a female suspect seen shopping at various stores in Bakersfield using stolen debit and credit cards, Peterson admitted that she was in fact that person.
Peterson also admitted that the methamphetamine in her residence was hers and that she sold crystal methamphetamine to help support her habit. Peterson admitted that she obtained about a quarter pound of crystal methamphetamine a week and sold ounces for $200.
This case was the product of an investigation by the U.S. Postal Inspection Service and the Bakersfield Police Department. Assistant U.S. Attorney Brian K. Delaney prosecuted the case.
Bakersfield Man Sentenced to a Year in Prison for Assaulting Postal EmployeeRead the Press Release
FRESNO, Calif. — Donald Landry Beverly, 25, of Bakersfield, was sentenced Monday to one year and one day in prison for assaulting a federal officer, U.S. Attorney McGregor W. Scott announced.
According to court documents, on July 19, 2018, Beverly confronted a letter carrier for the United States Postal Service while she was performing her regular mail delivery duties. He complained to the letter carrier that certain mail that he was expecting had not been delivered. After an extended discussion, Beverly slammed his forearm and elbow against her face and shoulder without warning or provocation. The assault resulted in significant bruising to her face and arm.
This case was the product of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorneys Brian Delaney, Brian Enos, and Katherine Schuh prosecuted the case.
Benicia Man Sentenced to 6 Months in Prison for Bankruptcy FraudRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Kimberly J. Mueller sentenced Steven Brian Homan, 62, of Benicia, today to six months in prison, to be followed by two years of supervised release, for one count of concealment of bankruptcy assets, U.S. Attorney McGregor W. Scott announced.
According to court documents, Homan sought protection from and discharge of more than $1.3 million in personal and business debt. He also wanted to preserve a non-exempt cabin in Redding from liquidation. To protect the cabin, Homan arranged to sell it from his bankruptcy estate to a relative for $100,000. However, Homan concealed from the bankruptcy trustee that the cabin had been destroyed by fire before the trustee accepted the offer.
After the fire, Homan filed an insurance claim that settled for more than $258,000 in losses associated with the cabin and personal property contained in the cabin at the time of the fire. That money constituted property of the bankruptcy estate, which Homan concealed from the trustee. After the sale of the cabin was complete, the bankruptcy trustee learned of the fire and concealed insurance settlement.
This case was the product of an investigation by the Federal Bureau of Investigation and the IRS Criminal Investigation. Assistant U.S. Attorney André M. Espinosa prosecuted the case.
Bakersfield Man Sentenced for Conspiring with Police Officers to Sell Methamphetamine and MarijuanaRead the Press Release
BAKERSFIELD, Calif. — Noel Carter, 45, of Bakersfield, was sentenced today for conspiring with Bakersfield police officers Damacio Diaz and Patrick Mara to distribute methamphetamine and marijuana that Diaz and Mara seized in the course of their duties as police officers, U.S. Attorney McGregor W. Scott announced.
U.S. District Judge Lawrence J. O’Neill sentenced Carter to seven and a half years in prison, to be followed by five years of supervised release. Carter was also ordered to pay $70,513 in restitution to his former employer and to forfeit $286,251 representing proceeds from his drug trafficking activity.
According to court documents, from April 2012 to August 2015, Carter conspired with Diaz and Mara, who deliberately failed to submit the seized drugs into the Bakersfield Police Department evidence room and instead provided the stolen narcotics to Carter so that Carter could sell those narcotics for profit.
In May 2016, Diaz pleaded guilty to possessing with the intent to distribute methamphetamine, as well as receiving bribes and making a false income tax return. In June 2016, Mara pleaded guilty to conspiring to distribute, and to possess with the intent to distribute, methamphetamine. Both were removed from active duty with the Bakersfield Police Department and are currently serving federal prison sentences.
According to the plea agreement in October 2018, Carter agreed to pay restitution to Pacific Workplaces, his former employer. Starting in September 2016 and up until his termination in September 2017, Carter was a contract manager for Pacific Workplaces, a virtual office and short-term office rental business. Carter admitted to embezzling money from the company and depositing the money into his personal account.
This case was the product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, the IRS Criminal Investigation, and the Bakersfield Police Department. Assistant U.S. Attorneys Brian K. Delaney and Angela Scott prosecuted the case.
Bakersfield Man Charged with Shipping Heroin, Methamphetamine, Fentanyl, and CocaineRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment on Thursday, April 4, 2019, against Jose Luis Rivas Jr., 26, of Bakersfield, charging him with conspiracy to distribute and possess with intent to distribute, heroin, methamphetamine, cocaine and fentanyl, U.S. Attorney McGregor W. Scott announced.
According to court documents, between June 2016 and May 2018, Rivas conspired with another Bakersfield man, Juan Pina, 23, to use a national parcel service company to ship packages of narcotics to various distributors around the country. Records filed with the court indicate that Rivas and Pina made kilogram-quantity shipments of controlled substances on several occasions.
On May 3, 2018, search warrants were executed for Pina’s residence and vehicle. Pina was arrested while driving his vehicle and in the back seat was a three-foot-long rectangular box, similar in size to the earlier shipments. The package was searched and found to contain approximately 700 grams of cocaine. In a search of Pina’s home, agents recovered over 2 pounds of heroin, over 2 pounds of cocaine, approximately 70 grams of methamphetamine as well as a loaded handgun and three long guns all found within close proximity to the drugs.
On March 27, 2019, when search warrants were executed for Rivas’s residence, agents recovered 12 cellphones and arrested Rivas.
On April 8, 2019, Juan Pina plead guilty to conspiracy to distribute and possess with intent to distribute, cocaine, methamphetamine, and heroin.
This case is the product of an investigation by Homeland Security Investigations and Bakersfield Police Department. Assistant U.S. Attorneys Brian K. Delaney and Thomas Newman are prosecuting the case.
If convicted, Rivas faces a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Pina is scheduled to be sentenced on August 12. He faces a maximum statutory penalty of life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
U.S. Attorney Announces the Indictment of Fentanyl and Heroin Darknet Vendors, and the Results of Coordinated Federal Operation Targeting Darknet Drug TraffickingRead the Press Release
SACRAMENTO, Calif. — A Rancho Cordova woman was indicted on Thursday, charged with distribution of fentanyl and oxycodone and other opioids as a result of a coordinated operation by the U.S. Attorney’s Office, the Federal Bureau of Investigation, Homeland Security Investigations, the Drug Enforcement Administration, and the U.S. Postal Inspection Service that has identified, disrupted, and prosecuted illegal operators on the darknet.
U.S. Attorney McGregor W. Scott, FBI Special Agent in Charge Sean Ragan, HSI Special Agent in Charge Ryan L. Spradlin, DEA Special Agent in Charge Christopher Nielsen, and USPIS Inspector in Charge Rafael E. Nunez made the announcement today.
U.S. Attorney Scott stated: “Building on the seizure and shut-down of the AlphaBay criminal marketplace in 2017, the cases we are discussing today continue to send a clear message, that if you choose to engage in criminal transactions on the darknet, you will have federal law enforcement from every district and state across the nation pursuing you. There is no hiding, no safety, and no anonymity in the darknet.”
“The darknet supports an illegitimate commerce system where criminals think they can anonymously traffic dangerous substances and goods into the Unites States,” said Ryan L. Spradlin, Homeland Security Investigations Special Agent in Charge for northern California. “HSI is watching and taking down criminals by using innovative technology and uniquely trained analysts and special agents to uncover this type of illicit and dangerous activity. Our country is in the midst of a serious opioid addiction crisis; and some users will do anything to get their hands on drugs like fentanyl. Tens of thousands of people die every year from overdosing on opioids. We all need to do our part to police the streets and all corners of the internet to make sure people do not have unlimited access to these potentially deadly substances.”
“The darknet has become a one-stop shop for individuals peddling powerful opioids, like fentanyl, because of the anonymity it seemingly offers to those who seek to evade detection. As these investigations demonstrate, sophisticated technology is no match for law enforcement when resources and expertise are combined to achieve a common public-safety goal. We will identify and prosecute those who distribute drugs under this illusion of secrecy,” stated DEA Special Agent in Charge Chris Nielsen.
San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated, “Postal Inspectors are continuously working with the U.S. Attorney’s Office and our partners in law enforcement in operations just like this one to keep dangerous drugs out of the communities we serve.”
The operation, which was initiated in September of last year, has yielded 14 arrests, four indictments, and 40 search and tracking warrants. In addition, agents have seized $423,912 in U.S. currency, $1,937,410 in cryptocurrency, four vehicles, two pill presses, and six firearms. Agents have also made large seizures of narcotics, including heroin, cocaine, methamphetamine, LSD, psilocybin mushrooms, marijuana, and oxycodone.
Two recent cases exemplify the work of the coordinated operation.
United States v. Carrie Alaine Markis, et al. (Case No. 2:19-cr-062 JAM):
On April 4, 2019, a federal grand jury returned a six-count indictment against Carrie Alaine Markis, 42, of Rancho Cordova, charging her with distribution of fentanyl, distribution of oxycodone, and conspiracy.
According to court documents, Markis was a registered California nurse who sold more than 20,000 prescription opioid pills and products on various darknet sites, including Silk Road 2.0, Pandora, and AlphaBay. Between 2013 and 2016, she purchased legitimate prescriptions from willing sellers. Then, she resold these pills and patches through her darknet business, “Farmacy41,” which she ran from her Rancho Cordova home.
Markis’s business operated on Silk Road 2.0 from November 2013 through May 2014. During this time, Markis sent private messages to her customers revealing that she was a licensed California medical professional. She sold more than 8,500 hydrocodone pills and more than 2,500 oxycodone pills. In combination with other sales of morphine, hydromorphone, fentanyl, and methadone, Markis earned about $230,000 in Bitcoin at the time.
Markis’s Farmacy41 business operated on Pandora from December 2013 through August 2014. During this time, she again sold more than 2,500 hydrocodone and more than 2,000 oxycodone pills. In combination with other sales of morphine, hydromorphone, methadone, and fentanyl, she completed about 393 transactions and earned about $122,000 in Bitcoin at the time.
On AlphaBay, Markis operated her Farmacy41 business from November 2015 through April 2016. There, she completed about 262 transactions for hydrocodone, oxycodone, morphine, methadone, and fentanyl. At the time, her Bitcoin earnings were worth about $74,000.
Federal agents searched Markis’s residence on January 24, 2019, and found about $1.8 million in Bitcoin held on a cold storage cryptocurrency wallet. Agents also found about $234,000 in cash. Markis was arrested on a federal complaint and made her initial appearance in court on January 25, 2019.
Andrea Michelle Jordan, aka Jill Jordan, 52, was arrested April 4, 2019, in Elk Grove. According to court documents, Jordan allegedly purchased legitimate pill and patch prescriptions from sellers in the area and then provided these to Markis, who then sold them to customers through Markis’ Farmacy41 darknet storefronts.
Assistant U.S. Attorney Amanda Beck is prosecuting the case. If convicted, Markis faces a maximum statutory penalty of 20 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
United States v. Jason Keith Arnold, et al. (Case No. 2:19-cr-043-MCE):
On March 7, 2019, a federal grand jury returned a five-count indictment against Jason Keith Arnold, 45, David Lee White, 49, and Alicia Marie McCoy, 30, all of Chandler, Arizona, charging them with distribution of heroin and methamphetamine, and conspiracy. According to court documents, Arnold, White, and McCoy operated the vendor accounts “TheSickness” and “SicknessVersion2” on Dream Marketplace, through which they conducted more than 3,000 transactions for heroin and methamphetamine to customers throughout the country.
Federal agents conducted several undercover purchases of heroin from SicknessVersion2 from May 2018 through October 2018. In the parcels received by agents, the purchased heroin was placed inside Haribo Gold gummy bear packages. All of the parcels were mailed from the Chandler, Arizona area. One of the undercover purchases was paid for with a postal account controlled by Arnold. Agents conducted surveillance of post offices in the Chandler, Arizona region and were able to determine that White and McCoy were mailing a large volume of parcels and were purchasing thousands of dollars in stamps. Arnold, White, and McCoy also held accounts at a cryptocurrency exchange company in which they exchanged hundreds of thousands of dollars in Bitcoins for U.S. currency.
On February 21, 2019, federal agents executed search and arrest warrants at Arnold’s residence, his tattoo shop, and a motel room occupied by White and McCoy. In the motel room, agents found heroin, and methamphetamine. Agents also found heroin at Arnold’s residence.
Assistant U.S. Attorneys Grant Rabenn and Paul Hemesath are prosecuting the case. Arnold made his initial appearance in Phoenix, Arizona on February 22, 2019. White made his initial appearance in Sacramento, on March 21, 2019. McCoy made her initial appearance in Sacramento, on March 7, 2019.
If convicted of conspiracy, Arnold, White, and McCoy face a maximum statutory penalty of life in prison, a mandatory minimum of 10 years in prison, and a $10 million fine. If convicted of distribution of a controlled substance, Arnold, White, and McCoy face a maximum statutory penalty of 20 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
These and other cases are the product of investigations by the Northern California Illicit Digital Economy (NCIDE) task force, which is composed of the Federal Bureau of Investigation, Homeland Security Investigations, the Drug Enforcement Administration, and the United States Postal Inspection Service. The Rancho Cordova Police Department and Health and Human Services, Office of Inspector General assisted in U.S. v. Markis.
These cases were brought in conjunction with the Joint Criminal Opioid Darknet Enforcement (J-CODE) Team. Established within the FBI’s Hi-Tech Organized Crime Unit, J‑CODE is an initiative announced in January 2018, targeting drug trafficking, especially fentanyl and other opioids, on the darknet. Building on the work initiated with the takedowns of Silk Road and AlphaBay, the FBI’s J-CODE team brings together agents, analysts, and professional staff with expertise in drugs, gangs, health care fraud, and more, and our federal, state, and local law enforcement partners from across the U.S. Government, to focus on disrupting the sale of drugs via the Darknet and dismantling criminal enterprises that facilitate this trafficking.
Sherman Oaks Man Pleads Guilty to Conspiring to Launder Money from Illegal Gambling BusinessRead the Press Release
SACRAMENTO, Calif. — Atir Dadon, 34, of Sherman Oaks, pleaded guilty today to conspiring to launder money, U.S. Attorney McGregor W. Scott announced.
According to court documents, between October 2016 and November 2017, Dadon conspired to launder money with his co-defendants, Orel Gohar, 28, of San Francisco, and Bar Shani, 27, of San Francisco. Orel Gohar and co-defendant 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. Dadon, Shani, and Orel Gohar conspired to launder the proceeds of the illegal gambling business.
According to court documents, Dadon, Shani, and Orel Gohar agreed that Orel Gohar would give cash proceeds from the Gohars’ gambling business to Dadon and Shani, who would use the cash to pay the workers in their cosmetics business. They agreed that in exchange for the cash from Orel Gohar, Dadon and Shani would arrange for Orel to receive checks from the cosmetics business. To conceal the fact that the financial transactions involved the proceeds of illegal activity, Dadon, Shani, and Orel 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 to Orel Gohar, indicating that Gohar had providing consulting and training services, when in fact he had not done so. Between October 2016 and November 2017, Dadon laundered over $150,000 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.
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. Bar Shani is detained pending trial. Co-defendant Adam Atari, 35, of Sherman Oaks, charged with conspiring to launder money with Yaniv and Orel Gohar and with witness tampering, is also detained. Co-defendant Raz Razla, 48, of Sherman Oaks, charged with making false statements to the grand jury, is out of custody. Co-defendant Eran Buhbut, 33, of Oakland, charged with operating an illegal gambling business, is also out of custody. Co-defendant May Levy, 28, of Walnut Creek, charged with operating an illegal gambling business, pleaded guilty.
Dadon is scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr., on July 12, 2019. Dadon 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.
Three Indicted for Manufacture of Methamphetamine in MaderaRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Oscar Rene Marrot-Garcia (Marrot), 26, of Chowchilla, and Mexican nationals Jose Monge Ponce (Ponce), 26, and Francisco Alcantar-Miranda (Alcantar), 30, charging them with conspiring to manufacture, to distribute and to possess with intent to distribute methamphetamine, cocaine, heroin, and marijuana, manufacturing methamphetamine, possessing with intent to distribute methamphetamine, cocaine, heroin, and marijuana, and maintaining drug premises, U.S. Attorney McGregor W. Scott announced.
According to court documents, Marrot rented a rural residence in Madera in December 2018 and set up a methamphetamine lab there. Joined by Ponce and Alcantar, the three assisted in manufacturing methamphetamine and storing large quantities of other drugs at the unoccupied Madera residence. At the end of January law enforcement executed a search warrant at the residence and found all three men there. They also found 22.4 pounds of methamphetamine in solution, 14 pounds of finished methamphetamine, 1 pound of cocaine, 2 pounds of heroin, and 25 pounds of marijuana. A handgun with a fully loaded magazine was also found.
This case is the product of an investigation by the Madera County Narcotic Enforcement Team (MADNET) and the High Intensity Drug Trafficking Area (HIDTA) team, which consists of agents from Homeland Security Investigations, California Department of Justice, California Highway Patrol, Fresno, the Sheriffs’ Offices of Tulare, and King Counties, and the Fresno Police Department. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
If convicted of the drug conspiracy, manufacturing, and possession with the intent to distribute charges, the defendants face a mandatory minimum statutory penalty of 10 years in prison and a maximum statutory penalty of life in prison, along with a $10 million fine. As to maintaining drug premises, the defendants face a maximum statutory penalty of 20 years in prison and a $500,000 fine. The defendants may also be responsible to pay any cleanup costs associated with the disposal of the hazardous materials. 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 County Man Indicted on Conspiracy, Armed Robbery, and Fraud ChargesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a nine-count indictment today against Damian Deleal, 30, of Carmichael, charging him with conspiracy to commit offenses against the United States, armed robbery of a U.S. Mail carrier, possession of a stolen Postal Service key, bank fraud, aggravated identity theft, and possession of stolen U.S. mail, U.S. Attorney McGregor W. Scott announced.
According to court documents, in March 2018, Deleal conspired with other individuals to rob a mail carrier of a U.S. Postal Service key that was capable of opening numerous residential mailboxes in Sacramento. Deleal conspired to obtain the key so he and his coconspirators – including Jayce Powell, Brandon Moses, and Loren Patrick – could commit bank fraud and identity theft using bankcards, checks, and other financial instruments stolen from the mail.
On March 9, 2018, in South Sacramento, an unnamed co-conspirator robbed a mail carrier at gunpoint and took a Postal Service key. Although the gun resembled a real firearm, investigators later determined it was a BB gun that Deleal supplied as part of the conspiracy. During the following week, Deleal, Powell, Moses, and Patrick used the key to steal mailed bankcards and checks. They then posed as the victims and attempted to use their bankcards and checks to purchase goods and obtain cash.
Deleal and Powell further conspired to fraudulently claim reward money offered for information relating to the robbery and the stolen Postal Service key. In executing this plan, they planted the stolen key on Moses while he was sleeping in his car and called the U.S. Postal Service to report Moses’ location and inquire about the reward. After receiving this tip, investigators worked quickly to make arrests and learned that Deleal orchestrated the conspiracy and related crimes.
This case is the product of an investigation by the U.S. Postal Inspection Service, the Sacramento County Sheriff’s Department, and the Sacramento Police Department. Assistant U.S. Attorney Michelle Rodriguez and Special Assistant U.S. Attorney Robert J. Artuz are prosecuting the case.
Deleal is currently in custody on unrelated charges. Powell, Moses, and Patrick have already pleaded guilty to federal charges in the following related cases in this district: U.S. v. Patrick, 2:18-cr-079-MCE; U.S. v. Powell, 2:18-cr-083-MCE; and U.S. v. Moses, 2:18-cr-090‑MCE.
If convicted of bank fraud, Deleal faces a maximum statutory penalty of 30 years in prison and a $1 million fine. If convicted of armed robbery, he faces a maximum statutory penalty of 25 years in prison and a $1 million fine. If convicted of aggravated identity theft, he faces a mandatory sentence of two years in prison consecutive to any other sentence imposed. 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; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Mexican National Charged for Failure to Register or Update His Registration as Sex OffenderRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Jose Reyes-Delgado, 57, a Mexican national residing in Fresno, charging him with failure to register or update his registration as a sex offender, U.S. Attorney McGregor W. Scott announced.
According to court documents, from April 2018 until March 2019, Reyes-Delgado was present in the State of California but failed to register as a sex offender as required by law. Reyes-Delgado was previously convicted in 1989 in California for lewd conduct with a child under 16, at which time he acquired his registration requirement.
This case is the product of an investigation by the U.S. Marshals Service, and ICE Enforcement and Removal Operations. Assistant U.S. Attorney Laura D. Withers is prosecuting the case.
If convicted, Reyes-Delgado 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.
Final Defendant Sentenced in Stockton Tax Refund Fraud RingRead the Press Release
SACRAMENTO, Calif. — Jeffrey S. Grady, 35, of Stockton, was sentenced today by U.S. District Judge Troy L. Nunley to two and a half years in prison and ordered to pay more than $25,000 in restitution for conspiracy to submit false claims to the IRS and aggravated identity theft, U.S. Attorney McGregor W. Scott announced.
“The harm caused by Mr. Grady and his co-defendants goes beyond simply cheating the government,” said Kareem Carter, IRS Criminal Investigation Special Agent in Charge. “Stealing identities and filing false tax returns is a serious crime that has a devastating impact on the victims. Identity theft is a pervasive crime and stopping it remains a top priority for us.”
According to court documents, Grady and his co-conspirators submitted tax returns to the IRS that falsely claimed that the persons named on the returns were entitled to tax refunds. Grady obtained the names, social security numbers, and other personal identifying information of various individuals and used that information, often without the knowledge of those people, to submit the tax returns in their names. Altogether, Grady took part in submitting at least 150 false tax returns, requesting approximately $94,140 in tax refunds. The IRS paid more than $25,000 in tax refunds based on those fraudulent tax returns. Grady was one of four defendants charged in the same conspiracy and the last to be sentenced.
Christopher Grady, of Stockton, was sentenced on July 13, 2017, to approximately 38 months of time served in custody and ordered to pay more than $250,000 in restitution.
Jacob Cook, of Stockton, was sentenced on September 7, 2017, to serve 30 months in prison and ordered to pay more than $69,000 in restitution.
Tosh Babu, of Stockton, was sentenced on September 21, 2017, to serve 30 months in prison and ordered to pay more than $94,000 in restitution.
This case was the product of an investigation by the IRS Criminal Investigation. Assistant U.S. Attorney Matthew G. Morris prosecuted the case.
Minnesota Man Sentenced to 16 Years in Prison for Receipt and Distribution of Child PornographyRead the Press Release
FRESNO, Calif. — Terrence Goldberg, 35, of Brook Park, Minnesota, was sentenced today to 16 years in prison, to be followed by 15 years of supervised release for two counts of receipt and distribution of child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, investigators in Rochester, New York detected Goldberg sharing child pornography files in 2016 from a location at which a children’s camp operated in Madera County, California. When agents located Goldberg in North Fork, California, on July 11, 2016, he was actively downloading child pornography files outside of a church. Goldberg admitted that he had been downloading child pornography and consented to a search of electronic devices that he had been using. He then relocated to Minnesota, and investigators with FBI offices in Minnesota and Wisconsin opened their own investigations after they detected Goldberg sharing child pornography files from October 2016 through May 2017. As part of those investigations, a search of Goldberg’s residence was conducted on May 26, 2017, and he was arrested. A magistrate judge in Minnesota ordered Goldberg detained and returned to California where an indictment had been filed on June 1, 2017.
A restitution hearing has been set before U.S. District Judge Dale A. Drozd on June 24.
This case is the product of an investigation by the FBI offices in Rochester, New York; Minneapolis, Minnesota; La Crosse, Wisconsin; and Fresno, California with assistance from the Madera County Sheriff’s Office. 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.
United States Files Lawsuit Against California State Water Resources Control Board for Failure to Comply with California Environmental Quality ActRead the Press Release
The Department of Justice and the U.S. Department of the Interior (DOI) today filed civil actions, in both federal and state court, against the California State Water Resources Control Board for failing to comply with the California Environmental Quality Act (CEQA).
On Dec. 12, 2018, the California State Water Resources Control Board (the Board) approved and adopted amendments to the Water Quality Control Plan for the San Francisco Bay/Sacramento–San Joaquin Delta Estuary (amended plan) and the related Substitute Environmental Document (SED). According to the complaint, the Amended Plan fails to comply with CEQA and, once implemented, will impair DOI’s ability to operate the New Melones Dam consistent with Congressional directives for the project.
“The environmental analysis by the California State Water Resources Control Board hid the true impacts of their plan and could put substantial operational constraints on the Department of the Interior’s ability to effectively operate the New Melones Dam, which plays a critical role in flood control, irrigation, and power generation in the Sacramento region,” said Assistant Attorney General Jeffrey Bossert Clark for the Department of Justice’s Environment and Natural Resources Division. “The Department of Justice will continue to advocate on behalf of our federal partners, especially when it comes to the proper application of federal and state environmental laws.”
“As stated in our letter to the Board on July 27, 2018, today’s lawsuit affirms the Bureau of Reclamation’s continued opposition to the State Water Board plan. The plan poses an unacceptable risk to Reclamation’s water storage and power generation capabilities at the New Melones Project in California and to local recreational opportunities,” said Bureau of Reclamation Commissioner Brenda Burman. “We pledge our commitment to environmentally and economically sound water management for California’s farms, families, business, and natural resources, and the American public as a whole.”
CEQA is a California statute which requires state and local agencies to identify the significant environmental impacts of their actions and to avoid or mitigate those impacts, if feasible. The lawsuits filed today allege that in approving the amended plan and final SED, the Board failed to comply with the requirements of CEQA in a number of ways:
- The Board failed to provide an accurate, stable and finite project description, because the Board analyzed a project materially different from the project described in the project description;
- The Board improperly masked potential environmental impacts of the amended plan by including carryover storage targets and other reservoir controls – mitigation measures – in its impacts analysis and by not analyzing the impacts of the amended plan on the environment without reservoir controls; and
- The Board failed to adequately analyze the impacts of the amended plan, including with respect to water temperature and related water quality conditions, and water supply.
As alleged in the lawsuits, the United States will be directly and substantially impacted by the Board’s actions, which impacts include, but are not limited to, operational constraints on the New Melones Project, loss of available surface water supplies for New Melones Project purposes, including Central Valley Project (CVP) water service contracts, and involuntary dedication of federal reservoir space for Board purposes.
The New Melones Dam is a federally owned Reclamation facility and a component of the federal CVP. The Dam stores water under permits issued by the State of California, and delivers water from storage to irrigation and water districts under contracts entered into under federal reclamation law. The lawsuits further allege that the new flow objectives will significantly reduce the amount of water available in New Melones reservoir for meeting congressionally authorized purposes of the New Melones Project, including irrigation, municipal and industrial purposes, power generation, and recreational opportunities at New Melones. The reduced water available for New Melones Project purposes would also impair Reclamation’s delivery of water under contracts it presently holds with irrigation and water districts.
The United States is represented in this action by Assistant Attorney General Clark and United States Attorney McGregor W. Scott; with lead counsel Stephen M. Macfarlane, Romney Philpott, Erika Norman of the Natural Resources Section; and Kelli L. Taylor of the U.S. Attorney’s Office for the Eastern District of California.
Sacramento Man Indicted for Mailing Threatening Communications, Hoax Letters Containing White Powder, and Aggravated Identity TheftRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a seven-count indictment today against Darnell Ray Owens, 32, of Sacramento, charging him with mailing threatening communications, hoaxes involving biological weapons, and aggravated identity theft, U.S. Attorney McGregor W. Scott announced.
According to court documents, Owens allegedly sent threatening letters via U.S. mail to individuals and organizations, using the return addresses of people he knew. Two letters contained white powder.
According to the indictment, on July 10, 2018, Owens mailed a letter to the pastor of a church in Dallas, Texas, which said in part, “I will assassinate your pastor in the name of Allah, I will burn down Christian churches … This is a threat.”
According to the indictment, on October 20, 2018, Owens sent a letter to Sacramento television station Fox 40 KTXL with threats to kill four employees. The letter stated in part, “Allah has commanded me to burn down the news station with fire and murder anyone who comes out with a gun … This is a threat and a promise.”
According to the indictment, On March 14, 2019, Owens mailed a letter to an elected official in Sacramento. It stated, “I knew you was going to not charge those corrupt racist cops. You have failed this city and the people. So I am making a threat on your life, I will assassinate you with a bullet to your head, you will not survive I will watch your body shake as the life in you leaves.”
In addition, the indictment charges Owens with sending two letters containing white powder under circumstances where the recipient may have reasonably believed that the letters contained a biological agent or toxin for use as a weapon. The letter to the church in Texas contained white powder and the other letter containing white powder was sent to the Sacramento County Department of Revenue Recovery. Owens allegedly sent the hoax letters using the identities of other persons, an action which would constitute aggravated identity theft.
This case is the product of an investigation by the Federal Bureau of Investigation, the U.S. Postal Inspection Service, and the City of Sacramento Police Department. Assistant U.S. Attorney Shea J. Kenny is prosecuting the case.
Owens is in custody after being arrested in Tulsa, Oklahoma on March 22, 2019. He is awaiting transfer to the Eastern District of California.
If convicted, Owens faces a maximum statutory penalty of five years in prison for each of the threat and hoax counts, and a mandatory statutory penalty of two years in prison for each aggravated identity theft count, 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.
Stockton Man Pleads Guilty to Unemployment Benefits Fraud and Identity TheftRead the Press Release
SACRAMENTO, Calif. — John Michael “Mike” Herron II, 36, of Stockton, pleaded guilty today to mail fraud and aggravated identify theft in connection with an unemployment benefits fraud and identity theft scheme, 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. In at least one instance, 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.
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. Attorneys Amy Schuller Hitchcock and Shelley D. Weger are prosecuting the case.
The charges against Maher are pending. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Herron is scheduled to be sentenced by U.S. District Judge John A. Mendez on July 2. Herron faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for the mail fraud count, and a mandatory two-year consecutive sentence and $250,000 fine for the aggravated identity theft count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Sacramento Man Arrested in Oklahoma for Mailing Interstate Threats, Some Containing White PowderRead the Press Release
SACRAMENTO, Calif. — Darnell Ray Owens, 32, of Sacramento, was arrested March 22 in Tulsa, Oklahoma, after being charged in Sacramento with mailing threatening communications and a hoax involving biological weapons, U.S. Attorney McGregor W. Scott announced.
According to the criminal complaint, between February 2018 and March 2019, Owens allegedly sent approximately 50 letters and online complaints to law enforcement agencies, individuals and organizations, in which he made threats to kill police officers, other government officials, homosexuals, and “white people.” He used return addresses of people he knew with the apparent purpose of having others blamed for sending the letters. Owens allegedly mailed no less than two letters containing a white powder, intending that the recipients would believe the powder to be a biological weapon. The majority of the letters were sent via the U.S. Postal Service and were postmarked from Sacramento.
According to the criminal complaint, in July 2018, one of the letters containing white powder was sent to a church in Dallas, Texas with a threat to assassinate the pastor. On August 3, 2018, the Sacramento County Department of Revenue Recovery received a letter containing white powder, and the letter threatened to burn down the department and kill “a lot of people.” On October 24, 2018, a television news station, KTXL Fox40 received a letter threatening to kill certain employees at the station. The last letter Owens allegedly sent was to the Sacramento County District Attorney, threatening her life.
This case is the product of an ongoing investigation by the Federal Bureau of Investigation, the U.S. Postal Inspection Service, and the City of Sacramento Police Department. Assistant U.S. Attorney Shea J. Kenny is prosecuting the case.
If convicted, Owens faces a maximum statutory penalty of five years in prison 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.
Shasta County Man Sentenced to 40 Years in Prison for Child Pornography OffensesRead the Press Release
SACRAMENTO, Calif. — On Friday, U.S. District Judge Garland E. Burrell Jr. sentenced James Jay Hitt, 51, of Anderson, to 40 years in prison for distribution and receipt of child pornography, U.S. Attorney McGregor W. Scott announced.
According to evidence presented at trial, Hitt interacted with a 12-person network of child pornographers, managed a blog where he posted child pornography, and messaged people through a Russian website that served as a platform for child pornographers to trade and discuss child pornography. Based on a lead from the FBI in Ohio, investigators in California searched Hitt’s house on January 4, 2013. When they entered his house to conduct the search, he brandished a knife at them. They found over 4,000 images and dozens of videos of child pornography on a desktop computer, an 80 gigabyte internal hard drive, and several CDs. Hitt has been in custody since June 15, 2015. Hitt had a prior conviction for a crime relating to sexual abuse that enhanced his sentence.
This case was the product of an investigation by the Federal Bureau of Investigation, the Anderson Police Department, and the California Department of Corrections and Rehabilitation. Assistant U.S. Attorneys Roger Yang and Michael M. Beckwith 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.
Former Oroville Resident Sentenced to Home Detention for Making a False Bomb ThreatRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Troy L. Nunley sentenced Kao Xiong, 34, of Saint Paul, Minnesota, today to time served plus five months of home detention and three years of supervised release for making a false bomb threat, U.S. Attorney McGregor W. Scott said today.
According to court documents, in August 2017, while Xiong was living in Oroville, Xiong mailed a letter to a company in Sunnyvale, informing the company that Xiong and others were going to bomb the location. The bomb threat was reported to the Sunnyvale Police Department who responded to the scene to investigate, and ultimately reported the incident to the FBI. The letter was identified as one of approximately 150 letters Xiong mailed between January and December 2017, containing false information about bombings and assassinations. Although the U.S. Postal Service intercepted many of the letters, others were delivered to the intended recipients who were located across the United States, including FBI offices, an airport, a mall, and the current and former presidents of the United States.
Xiong was arrested on December 22, 2017, and remained in custody until May 23, 2018, which is approximately 153 days. Xiong pleaded guilty on January 3, 2019.
This case was the product of an investigation by the Federal Bureau of Investigation, the U.S. Secret Service, and the U.S. Postal Inspection Service. Assistant U.S. Attorney Shelley D. Weger prosecuted the case.
Department of Homeland Security’s Nonprofit Security Grant Program Funds Training and Security EnhancementsRead the Press Release
SACRAMENTO, Calif. — In the aftermath of the deadly shooting that occurred in New Zealand, U.S. Attorney McGregor W. Scott recommends continued training and preparation for active shooter incidents to ensure the safety of all communities.
Following the shooting at the Tree of Life Synagogue in Pennsylvania last October, the U.S. Attorney’s Office for the Eastern District of California brought together faith leaders to discuss strategies and to provide training to deal with active shooter incidents in houses of worship. In an ongoing effort to keep our community safe, the Department of Homeland Security provides practical assistance to high risk groups.
The Department of Homeland Security’s Nonprofit Security Grant Program (NSGP) competitively awards grant funding to assist nonprofit organizations that are considered to be at high risk of terrorist attack and located within a designated urban area. NSGP provides up to $75,000 to nonprofit organizations for training and physical security enhancements, including fencing, surveillance systems, security systems, and lighting. It is also designed to promote coordination and collaboration in emergency preparedness activities among public and private community representatives, as well as state and local government agencies.
The grant program is administered by the California Office of Emergency Services (Cal OES) Infrastructure Grants Unit, which administers the program for the Department of Homeland Security. The Department of Justice does not administer the grant program.
In preparation for the release of the Notice of Funding Opportunity, Cal OES will be conducting a webinar on Tuesday, April 2 to explain the NSGP requirements and assist nonprofit organizations with the application process. . Please see the attachment for further details.
DHS has indicated that there will be $60 million in grants available nationwide for nonprofit 501(c)(3) tax-exempt groups.
Jury Convicts Roseville Man of 3 Counts of Wire Fraud in Mortgage Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — After a seven–day trial, a federal jury found Erik Hermann Green, 37, of Roseville, guilty on Tuesday of three counts of wire fraud in a mortgage fraud scheme, U.S. Attorney McGregor W. Scott announced.
According to evidence presented at trial, Green was part of a large-scale mortgage fraud scheme to defraud the New Century Mortgage Company by submitting false documentation about employment, income and assets, including fraudulent loan applications and other altered bank documents. Around October 2006, when Green submitted his fraudulent loan applications to obtain a loan for $820,000, he was a licensed real estate sales person and managed approximately 15 loan officers. As part of the scheme, Green received a check for $100,000 that was funneled through a shell company at the close of escrow. Green used the funds for personal expenses.
This case is the product of an investigation by the IRS Criminal Investigation and the Alameda County District Attorney’s Office. Assistant U.S. Attorneys Michael D. Anderson and Miriam R. Hinman are prosecuting the case.
Co-defendants Stephen Pirt and Janis Pirt previously pleaded guilty to wire fraud. Stephen Pirt was sentenced in 2015 to 25 months in prison and in 2014, Janis Pirt was sentenced to five years of probation with a year of home detention.
Green is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on June 13. Green faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count of conviction. 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.
U.S. Air Force Member Charged with Producing and Receiving Child PornographyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an eight-count indictment Thursday against Bryce Carter Studebaker, 22, currently stationed at Beal Air Force Base, charging him with four counts of producing and attempting to produce child pornography and four counts of receiving child pornography, U.S. Attorney McGregor W. Scott announced. Studebaker was arrested this morning.
According to court documents, Studebaker produced and received sexually explicit images of a minor on four occasions between December 31, 2017, and March 30, 2018.
This case is the product of an investigation by the U.S. Air Force Office of Special Investigations. Assistant U.S. Attorney André M. Espinosa is prosecuting the case.
If convicted, Studebaker faces a maximum statutory penalty of 30 years in prison for each count of producing and attempting to produce child pornography, a maximum statutory penalty of 20 years in prison for each count of receiving child pornography, and a $250,000 fine on all counts. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Former Stockton Couple Convicted of Human Trafficking Charges Related to Forced Labor of Foreign NationalsRead the Press Release
SACRAMENTO, Calif. — After an 11-day trial, a federal jury found Satish Kartan, 45, and his wife, Sharmistha Barai, 40, guilty on March 14 of conspiracy to obtain forced labor and two counts of obtaining forced labor. In addition, Kartan was found guilty of fraud in foreign labor contracting. Assistant Attorney General Eric Dreiband for the Department of Justice’s Civil Rights Division, U.S. Attorney McGregor W. Scott, Matthew Perlman, Special Agent in Charge of the of the Diplomatic Security Service San Francisco Field Office, Sean Ragan, Special Agent in Charge of the Sacramento FBI Field Office, and Ryan L. Spradlin, the Special Agent in Charge for Homeland Security Investigations in Northern California made the announcement.
“Human trafficking is a disgraceful and unacceptable crime. The defendants in this case took advantage of overseas workers, forcing them to work without pay, physically abusing them, and threatening negative repercussions if they tried to leave,” said Assistant Attorney General Eric Dreiband. "The Justice Department will continue to investigate and vigorously prosecute human traffickers in order to bring justice to victims.”
“These defendants exploited one victim after another, using them to labor in their home, failing to pay wages and depriving them of basic human rights,” said U.S. Attorney Scott. “The U.S. Attorney’s Office continues its commitment to protect and defend vulnerable members of our society from human trafficking.”
“The Diplomatic Security Service will continue to pursue those who abuse domestic worker visas to manipulate and exploit their employees for personal gain," said Matthew Perlman, Special Agent in Charge of the of the Diplomatic Security Service San Francisco Field Office. "DSS’s strong relationship with our law enforcement partners and the U.S. Attorney’s Office for the Eastern District of California continues to be essential in the pursuit of justice.”
“Kartan and Barai did not simply fail to pay victims for their work,” said Sean Ragan, Special Agent in Charge of the Sacramento FBI Field Office. “They deprived them of their dignity and robbed them of their federally protected civil rights. The FBI will work with partner agencies to protect victims of human trafficking wherever that crime occurs.”
“Millions of people worldwide are affected by this type of forced labor and human trafficking,” said Ryan L. Spradlin, the Special Agent in Charge for Homeland Security Investigations in Northern California. “This case is a testament of the dedication of HSI and our law enforcement partners. We are committed to working together to eradicate these deplorable crimes from our community.”
According to court documents and evidence presented at trial, between February 2014 and October 2016, Kartan and Barai hired workers from overseas to perform domestic labor in their home in Stockton. In advertisements seeking workers on the internet and India-based newspapers, the defendants made false claims regarding the wages and the duties of employment. Then, once the workers arrived at the defendants’ Stockton residence, Kartan and Barai forced them to work 18 hours a day with limited rest and nourishment. Few of them were paid any wage. The defendants kept their domestic workers from leaving and induced them to keep working for them by threatening them, by creating an atmosphere of fear, control, and disempowerment, and at times by physically hitting or burning them. When a victim pushed back or said she wanted to leave, it got worse.
Victims flew from India and Nepal to testify. According to evidence presented at trial, the defendants struck one worker on multiple occasions. Barai threatened to kill her and throw her bones in the garbage, backhanded her across the face for talking back, and slammed her hands down on a gas stove, causing her to suffer first and second degree burns on her hands from the flames. The defendants also threatened several other victims to coerce them to keep working, including by telling the victims they would report them to police or immigration authorities if they tried to leave. Throughout the victims’ time in the defendants’ home, they were deprived of sleep and food. The defendants subjected the victims to verbal abuse and harassment in an effort to intimidate them into continuing to provide labor and services.
Kartan and Barai are scheduled to be sentenced on June 6. Each defendant faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by Homeland Security Investigations (HSI), the FBI, and the State Department’s Diplomatic Security Service. The Stockton Police Department provided the initial investigation and later assistance with victim services. Assistant U.S. Attorneys Jason Hitt and Katherine Lydon are prosecuting the case with the assistance of the Civil Rights Division’s Human Trafficking Prosecution Unit.
The Eastern District of California (Sacramento) is one of six districts designated through a competitive, nationwide selection process as a Phase II Anti-Trafficking Coordination Team, through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.
Former Stockton Couple Convicted of Human Trafficking Charges Related to Forced Labor of Foreign NationalsRead the Press Release
After an 11-day trial, a federal jury found Satish Kartan, 45, and his wife, Sharmistha Barai, 40, guilty on March 14 of conspiracy to obtain forced labor and two counts of obtaining forced labor. In addition, Kartan was found guilty of fraud in foreign labor contracting. Assistant Attorney General Eric Dreiband for the Department of Justice’s Civil Rights Division, U.S. Attorney McGregor W. Scott, Matthew Perlman, Special Agent in Charge of the of the Diplomatic Security Service San Francisco Field Office, Sean Ragan, Special Agent in Charge of the Sacramento FBI Field Office, and Ryan L. Spradlin, the Special Agent in Charge for Homeland Security Investigations in Northern California made the announcement.
“Human trafficking is a disgraceful and unacceptable crime. The defendants in this case took advantage of overseas workers, forcing them to work without pay, physically abusing them, and threatening negative repercussions if they tried to leave,” said Assistant Attorney General Eric Dreiband. “The Justice Department will continue to investigate and vigorously prosecute human traffickers in order to bring justice to victims.”
“These defendants exploited one victim after another, using them to labor in their home, failing to pay wages and depriving them of basic human rights,” said U.S. Attorney Scott. “The U.S. Attorney’s Office continues its commitment to protect and defend vulnerable members of our society from human trafficking.”
“The Diplomatic Security Service will continue to pursue those who abuse domestic worker visas to manipulate and exploit their employees for personal gain," said Matthew Perlman, Special Agent in Charge of the of the Diplomatic Security Service San Francisco Field Office. "DSS’s strong relationship with our law enforcement partners and the U.S. Attorney’s Office for the Eastern District of California continues to be essential in the pursuit of justice.”
“Kartan and Barai did not simply fail to pay victims for their work,” said Sean Ragan, Special Agent in Charge of the Sacramento FBI Field Office. “They deprived them of their dignity and robbed them of their federally-protected civil rights. The FBI will work with partner agencies to protect victims of human trafficking wherever that crime occurs.”
“Millions of people world-wide are affected by this type of forced labor and human trafficking,” said Ryan L. Spradlin, the Special Agent in Charge for Homeland Security Investigations in Northern California. “This case is a testament of the dedication of HSI and our law enforcement partners. We are committed to working together to eradicate these deplorable crimes from our community.”
According to court documents and evidence presented at trial, between February 2014 and October 2016, Kartan and Barai hired workers from overseas to perform domestic labor in their home in Stockton. In advertisements seeking workers on the internet and India-based newspapers, the defendants made false claims regarding the wages and the duties of employment. Then, once the workers arrived at the defendants’ Stockton residence, Kartan and Barai forced them to work 18 hours a day with limited rest and nourishment. Few of them were paid any wage. The defendants kept their domestic workers from leaving, and induced them to keep working for them, by threatening them, by creating an atmosphere of fear, control, and disempowerment, and at times by physically hitting or burning them. When a victim pushed back or said she wanted to leave, it got worse.
Victims flew from India and Nepal to testify. According to evidence presented at trial, the defendants struck one worker on multiple occasions. Barai threatened to kill her and throw her bones in the garbage, backhanded her across the face for talking back, and slammed her hands down on a gas stove, causing her to suffer first and second degree burns on her hands from the flames. The defendants also threatened several other victims to coerce them to keep working, including by telling the victims they would report them to police or immigration authorities if they tried to leave. Throughout the victims’ time in the defendants’ home, they were deprived of sleep and food. The defendants subjected the victims to verbal abuse and harassment in an effort to intimidate them into continuing to provide labor and services.
Kartan and Barai are scheduled to be sentenced on June 6. Each defendant faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by Homeland Security Investigations (HSI), the FBI, and the State Department’s Diplomatic Security Service. The Stockton Police Department provided valuable initial investigation and later assistance with victim services. Assistant U.S. Attorneys Jason Hitt and Katherine Lydon are prosecuting the case with the assistance of the Civil Rights Division’s Human Trafficking Prosecution Unit.
The Eastern District of California (Sacramento) is 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.
Two Indicted in 45-Pound Methamphetamine Deal in Fresno CountyRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment Thursday against Los Angeles residents Josue Garcia-Beltran, 40, and Rafael Medina Labrada, 34, charging them with conspiracy to distribute and possession with intent to distribute methamphetamine, U.S. Attorney McGregor W. Scott announced.
According to court documents, on February 25, 2019, the defendants were arrested delivering methamphetamine to an undercover officer in Fresno. Forty-five pounds of methamphetamine were seized during the operation.
This case is the product of an investigation by the Fresno High Impact Investigation Team (HIIT), composed of law enforcement personnel from Homeland Security Investigations, the California Department of Justice, the Fresno Police Department, the California Highway Patrol, the Tulare County Sheriff’s Office, the Kings County Sheriff’s Office, and the Fresno County Sheriff’s Office. HIIT conducts major narcotic and other major criminal investigations in the Central Valley. Assistant U.S. Attorney Katherine Schuh is prosecuting the case.
If convicted, Garcia-Beltran and Labrada 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.
Shasta County Man Pleads Guilty to Aggravated Identity Theft Committed as Part of a Mail Theft and Bank Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — William Lee Ashley, 37, of Anderson, pleaded guilty today to aggravated identity theft, U.S. Attorney McGregor W. Scott announced.
According to court documents, between December 2017 and March 2018, Ashley committed a scheme to steal identities and defraud banks. During this scheme, Ashley broke into residential mailboxes throughout Northern California and stole U.S. mail containing bankcards, personal and business checks, and personally identifiable information of mail-theft victims. He then fraudulently activated and used bankcards to withdraw cash at ATMs and make purchases at retail establishments. Ashley also forged and altered stolen checks and deposited them into bank accounts under his control. On March 9, 2018, when he was arrested in Anderson, he possessed stolen mail and a U.S. Postal Service lock that he intended to use to facilitate this scheme.
This case is the product of an investigation by the U.S. Postal Inspection Service and the Anderson Police Department. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
Ashley is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on June 13, 2019. Ashley faces a mandatory statutory term of two years in prison for aggravated identity theft and a fine up to $250,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Inmate Sentenced to 6 Years in Prison for Making Threats to Harm Federal JudgeRead the Press Release
FRESNO, Calif. — U.S. District Judge Lawrence J. O’Neill sentenced Craig Shults, 52, of Huntington Beach, today to six years in prison for threatening to harm a federal judge, U.S. Attorney McGregor W. Scott announced.
Shults was convicted of this offense following a December 2018 jury trial.
According to court documents and evidence at trial, in 2016 at a federal prison in Taft, California, Shults, then an inmate, made threats to assault a federal judge with the intent to retaliate against the judge for presiding over a prior criminal case involving Shults. He made the threatening communications in retaliation for, among other reasons, being remanded to custody following a bond violation hearing, and being sentenced to a substantially longer prison sentence than Shults requested. Some of Shults’s threats were captured on a recording device and presented at trial.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Angela L. Scott and Henry Z. Carbajal prosecuted the case.
Fair Oaks Man Sentenced to 4 years in Prison for Conspiring to Sell Stolen Credit Card Information and Identity TheftRead the Press Release
SACRAMENTO, Calif. — Mkrtych “Mike” Sargsyan, 55, of Fair Oaks, was sentenced today by Senior U.S. District Judge William B. Shubb to four years in prison for conspiring to sell stolen credit card information and aggravated identity theft, U.S. Attorney McGregor W. Scott announced.
According to court documents, between September 2015 and April 2016, Sargsyan and others agreed to obtain and sell stolen credit card information. On three occasions, Sargsyan traveled to Southern California to obtain electronic storage devices containing stolen credit card numbers and corresponding account holder information. Sargsyan then delivered that information to a buyer in Southern California and Rancho Cordova. During the course of the conspiracy, Sargsyan and his co-conspirators obtained information related to 587 credit card accounts.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Brian A. Fogerty prosecuted the case.
Former El Dorado County Gymnastics Coach Charged with Attempting to Produce Child PornographyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today against Keith Willette, 56, of Cameron Park, charging him with attempted production of child pornography, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney McGregor W. Scott announced.
According to court documents, between May 2000 and April 2002, Willette attempted to produce child pornography of a juvenile victim.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Rosanne L. Rust and Trial Attorney Jessica Urban with the Child Exploitation and Obscenity Section of the Department of Justice, Criminal Division, are prosecuting the case.
If convicted, Willette faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charge is only an allegation; 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.
Five Tulare Residents Charged in Superseding Indictment with Possessing and Selling False Identification DocumentsRead the Press Release
FRESNO, Calif. — A federal grand jury returned a 10-count superseding indictment today for a case involving the production and sale of false Social Security cards and green cards first charged in August 2018, U.S. Attorney McGregor W. Scott announced.
Today’s superseding indictment adds three counts and a fifth defendant. Tulare residents Elfego Alcala, 46; Aida Corona, 37; Tamilene Cisneros, 48; Lupita Cisneros; and the fifth defendant, Maria Elena Soriano-Salinas, 57, are charged with conspiring to produce false identification documents, the production and sale of false identification documents, and fraud and misuse of visas and related documents.
According to court documents, in March, May, and August of 2018, the defendants engaged in transactions in which they manufactured and sold false identification documents to buyers. These documents included Social Security cards and green cards.
This case is the product of an investigation by Homeland Security Investigations. Assistant U.S. Attorney Laura D. Withers is prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of 15 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Stockton Woman Pleads Guilty to Two Separate Fraud ConspiraciesRead the Press Release
SACRAMENTO, Calif. — Kioni M. Dogan, 38, of Stockton, pleaded guilty Tuesday to separate criminal conspiracies to submit false claims for federal income tax refunds and to commit mail fraud in connection with California state unemployment insurance benefits, U.S. Attorney McGregor W. Scott announced.
According to court documents, Dogan and her co-conspirators together illegally sought over $2 million from the California and federal governments with these schemes.
In the tax case, Dogan conspired with her co-defendant Antonia Brasley and others to submit false tax returns to the IRS by obtaining personal identifying information from family, friends, and others, and then submitting returns seeking refunds to which the people listed on the returns were not entitled. To pursue the refunds, false statements were placed on the returns regarding income, withholding from income, and gambling losses, with fraudulent supporting tax forms. From May 2011 through April 2012, Dogan and her co-conspirators sought over $940,000 in fraudulent tax refunds, of which approximately $708,188 were paid out by the IRS.
In the unemployment insurance case, from 2010 through 2015, Dogan and her co‑conspirators operated a “fictitious employer” scheme. Dogan created an employer with the California Employment Development Department (EDD) that was fictitious and did not conduct any business. Dogan then caused the submission of information to the EDD falsely indicating that various persons were employed by the fictitious entity. Dogan subsequently filed unemployment claims in the names of the fake employees. Co-defendants Gloria Harris and Lavonda Bailey are among the individuals alleged to have collected the fraudulent benefits, both in their own names and in the names of other fake employees. Dogan was connected to approximately $1.3 million in fraudulent claims to EDD, of which approximately $972,319 were paid out by EDD.
The unemployment fraud case is the product of an investigation by the U.S. Department of Labor, the California Employment Development Department, and the U.S. Postal Inspection Service. The tax fraud case was the product of an investigation by IRS Criminal Investigation. Assistant U.S. Attorney Christopher S. Hales is prosecuting both cases.
The charges against co-defendants Brasley, Harris, and Bailey remain pending. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Dogan is scheduled to be sentenced by U.S. District Judge John A. Mendez on June 11, 2019. Dogan faces a maximum statutory penalty of 10 years in prison for conspiracy to submit false claims, and 20 years in prison for conspiracy to commit mail fraud, as well as a $250,000 fine on each count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Statement Following the Completion of State and Local InvestigationsRead the Press Release
SACRAMENTO, Calif. — U.S. Attorney McGregor W. Scott and Special Agent in Charge Sean Ragan of the FBI’s Sacramento Field Office today issued the following statement:
“Now that both state and local authorities have completed their investigations into the shooting of Stephon Clark, the U.S. Attorney’s Office and the FBI, in conjunction with the Civil Rights Division of the U.S. Department of Justice, will examine whether the shooting involved violations of Mr. Clark’s federal civil rights. That examination will involve a review of the substance and results of the state and local investigations, and any additional investigative steps, if warranted.”
Kings County Woman Sentenced to 10 Years in Prison for Distributing MethamphetamineRead the Press Release
FRESNO, Calif. — Nancy Lopez Perez, 44, of Lemoore, was sentenced today to 10 years in prison for distributing methamphetamine, U.S. Attorney McGregor W. Scott announced.
According to court documents, Perez obtained and delivered methamphetamine and two assault rifles during an undercover transaction on the side of the road in rural Fresno County. Three additional firearms were seized from Perez’s residence during a follow-up search. As a convicted felon, Perez was prohibited from possessing firearms.
This case was the product of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Kings County Narcotic Task Force. 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 U.S. Attorney Karen A. Escobar prosecuted the case.
Los Angeles Man Sentenced to Prison for Conspiring to Obtain Fraudulent Commercial Driver's LicenseRead the Press Release
SACRAMENTO, Calif. — Rahim Mahboob, 67, of Los Angeles, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to two years and three months in prison and a $58,500 fine for conspiring to commit bribery, identity fraud, and unauthorized access to a computer, and a separate count of identity fraud, U.S. Attorney McGregor W. Scott announced.
According to court documents, Mahboob conspired with former DMV employee and co‑defendant, Lisa Terraciano, to pay her money to alter DMV records that caused commercial driving permits to be issued for Mahboob’s clients. Mahboob was responsible for the issuance or attempted issuance of no less than 39 fraudulent commercial licenses, including permits, for which he paid Terraciano.
This case was a part of a series of ongoing investigations by the California Department of Motor Vehicles, Office of Internal Affairs, the Federal Bureau of Investigation, Homeland Security Investigations, and the Department of Transportation, Office of Inspector General. Assistant U.S. Attorney Rosanne L. Rust prosecuting the cases.
Mahboob was ordered to self-surrender to begin serving his sentence on June 3, 2019.
Stockton Man Indicted for Illegal Firearms PossessionRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today against Joseph Flowers, 29, of Stockton, charging him with being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, on January 16, 2019, Flowers was found in possession of a Pietro Beretta model 92F semi-automatic pistol. Flowers has three prior felony convictions, making it illegal for him to possess a firearm.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Stockton Police Department. Assistant U.S. Attorney David Spencer is prosecuting the case.
If convicted, Flowers faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case 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.
Two Sentenced for Identity and Mail Theft in Sacramento, San Joaquin, and Stanislaus CountiesRead the Press Release
SACRAMENTO, Calif. — Derek Hillgert, 29, of Carmichael, and Jeffrey Wilhite, 31, of Linden, were each sentenced Monday to five years in prison for committing access device fraud, aggravated identity theft, and possession of stolen mail, U.S. Attorney McGregor W. Scott announced.
According to court documents, Hillgert and Wilhite worked together to steal U.S. mail and conduct transactions with stolen identities. On the day of their arrests, they possessed over 200 pieces of stolen mail addressed to over 100 victims. With Wilhite’s assistance, Hillgert used a stolen identity to purchase a van at a dealership in Modesto. Hillgert presented a fraudulent driver’s license in the other person’s name but with Hillgert’s photograph, and he obtained a loan in the other person’s name for over $39,000. Wilhite opened a Target debit card account using a second stolen identity, and the defendants made more than $3,000 in purchases with it.
This case was the product of an investigation by the U.S. Postal Inspection Service with assistance from the Tracy Police Department. Assistant U.S. Attorney Miriam R. Hinman prosecuted the case.
South Lake Tahoe Man Sentenced to Prison for Destruction of Archaeological SitesRead the Press Release
SACRAMENTO, Calif. — Timothy Brian Harrison, 50, of South Lake Tahoe, was sentenced today by United States District Judge John A. Mendez to one year and one day in prison and ordered to pay $113,000 in restitution for two counts of excavation and removal of archaeological resources from public lands and one misdemeanor count of unlawful possession of methamphetamine, U.S. Attorney McGregor W. Scott announced.
According to court documents, Harrison conducted illegal digging at prehistoric Native American archaeological sites on federal lands in Alpine and El Dorado Counties, near Lake Tahoe. He collected tens of thousands of ancient artifacts from multiple archaeological sites, and virtually destroyed two very significant archaeological sites. Archaeologists explained that Harrison’s conduct led to the irreplaceable loss of unique historical information. Archaeologists learn the cultural history of the prior inhabitants from artifacts left behind by the inhabitants by carefully documenting where the artifacts are found, and looting of the artifacts destroys that context.
Representatives of the Washoe Tribe of California and Nevada spoke about the impact on the tribe from this destruction of sites. They explained that Harrison’s digging erased their past and interfered with the tribe’s ability to teach younger generations about their history and culture.
This case was the product of an investigation by the U.S. Forest Service, the Bureau of Land Management, the National Park Service, the Drug Enforcement Administration, the Federal Bureau of Investigation, California State Fish & Wildlife Service, California Highway Patrol, and Alpine County Sheriff’s Department. Assistant U.S. Attorneys Samuel Wong, Christopher S. Hales, and Miriam R. Hinman prosecuted the case.
Harrison is out of custody and was ordered to self-surrender to begin serving his sentence on April 23, 2019.