Eastern District of California
Press releases recorded for this federal judicial district.
Sacramento Man Pleads Guilty to Selling Unapproved Drugs on the InternetRead the Press Release
SACRAMENTO, Calif. — Scott Edward Cavell, 35, of Sacramento, pleaded guilty today to one count of causing misbranded drugs to be introduced into interstate commerce, U.S. Attorney McGregor W. Scott announced.
According to court documents, between 2015 and 2017, Cavell, with others, developed a scheme to market and sell a drug, 2,4-Dinitrophenol (also known as DNP), as a weight loss drug and “fat burner” despite knowing that DNP is unapproved by the FDA as a substance for human consumption. Cavell sold DNP in pill form and called it a fertilizer — a term under which is it legally sold in other circumstances.
DNP has been commercially used to manufacture dyes and wood preservatives, as a fertilizer, and as a pesticide. The U.S. Food and Drug Administration has declared that DNP is too toxic to be used for human consumption under any circumstances.
This case is the product of an investigation by the U.S. Food and Drug Administration Office of Criminal Investigations, Drug Enforcement Administration, Homeland Security Investigations, and the U.S. Postal Inspection Service. Assistant U.S. Attorney Paul Hemesath is prosecuting the case.
Cavell is scheduled to be sentenced on June 4, 2019, by U.S. District Judge John A. Mendez. Cavell faces a maximum statutory penalty of three years in prison and a $10,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Los Angeles Man Found Guilty on All Counts in Nationwide Credit Card Fraud Scheme with Links to Sacramento and MoscowRead the Press Release
SACRAMENTO, Calif. — After a four-day trial, a jury found Ruslan Kirilyuk, 41, of Beverly Hills, guilty on Tuesday of 24 counts of wire fraud, two counts of mail fraud, and one count each of aggravated identity theft and failure to appear, all arising out of his involvement in a nationwide credit card fraud scheme, U.S. Attorney McGregor W. Scott announced.
According to evidence presented at trial, between approximately October 5, 2011, and March 5, 2014, Kirilyuk conspired with Mihran Melkonyan, 38, of Sacramento; Rouslan Akhmerov, 42, of Studio City; Alexandr Maslov, 38, of Sacramento, and others in a credit card billing scheme that involved creating approximately 71 fraudulent online companies established with the sole purpose of fraudulently charging approximately 119,000 stolen credit card numbers. In total, the members of the scheme billed the stolen credit card numbers for over $3.4 million in unauthorized charges.
As established at trial, to create the fraudulent companies, the members of the scheme obtained over 200 stolen report cards from the San Juan Unified School District in Sacramento. Those report cards had students’ personal identifying information on them such as names and social security numbers. Using that information, Kirilyuk and his associates created fraudulent companies with names designed to sound like real companies, such as “CVS Store,” “Walt Mart,” and “Chevran.”
Working with a hacker based in Moscow, they used those fraudulent companies to charge stolen American Express credit card account numbers. In order to transfer the stolen money, they used shell bank accounts held in the names of individuals whose identities had been stolen and former Russian J-1 visa holders. According to court documents, Kirilyuk has a history of corporate cyberintrusion dating back to at least 2003.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Michael D. Anderson and Matthew M. Yelovich are prosecuting the case.
Kirilyuk is scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on May 17, 2019. Kirilyuk faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each wire and mail fraud count, a mandatory two-year consecutive sentence for the aggravated identity theft count, and up to 10 years in prison and a $250,000 fine for the failure to appear charge. 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.
In an earlier trial, on February 15, 2017, Melkonyan was found guilty of all 24 counts of wire fraud and two counts of mail fraud charged against him related to the scheme. He was sentenced on January 4, 2019, to 19 years and two months in prison.
On December 15, 2014, Akhmerov pleaded guilty to one count of access device fraud for his participation in the scheme. He is set to be sentenced on March 29, 2019.
Maslov failed to appear at an earlier court appearance and a bench warrant has been issued for his arrest. Anyone with information about his whereabouts should contact the Federal Bureau of Investigation at (916) 746-7000. The charges against him are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Arrested in Granite Bay, Contra Costa County Woman Pleads Guilty in Northern California Mail Theft SchemeRead the Press Release
SACRAMENTO, Calif. — Toni Tinay, 24, of Oakley, pleaded guilty today to bank fraud, aggravated identity theft, and possession of reproduced U.S. Postal Service keys, U.S. Attorney McGregor W. Scott announced.
According to court documents, between February and August 2018, Tinay participated in a scheme to defraud banks in which she and others used counterfeit U.S. Postal Service keys to break into residential mailboxes throughout the Eastern and Northern Districts of California. Tinay stole mail from mailboxes – which contained bankcards, personal and business checks, and government-issued IDs. Tinay then fraudulently activated and used the bankcards to withdraw cash at ATMs and make purchases at retail establishments. In one instance, on February 25, 2018, Tinay fraudulently used a stolen Comenity Bank-issued Victoria’s Secret credit card, to purchase $821.85 in goods at a Victoria’s Secret store in Fairfield. On August 29, 2018, when she was arrested in Granite Bay, she and her companions were found to be in possession of four U.S. Postal Service keys with the intention of using them to steal U.S. mail.
This case is the product of an investigation by the U.S. Postal Inspection Service. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
Tinay is scheduled to be sentenced by U.S. District Judge John A. Mendez on June 4, 2019. Tinay faces a maximum statutory penalty of 30 years in prison and a $1 million fine for bank fraud. She faces a mandatory statutory term of two years in prison for aggravated identity theft and a fine up to $250,000, and 10 years in prison and a $250,000 fine for possession of reproduced U.S. Postal Service keys. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Two Tulare County Men Sentenced for Series of Armed Robberies in Tulare and Kern CountiesRead the Press Release
FRESNO, Calif. — Today, U.S. District Judge Lawrence J. O’Neill sentenced Javier Beltran, 25, of Strathmore, to 23 years in prison for his conviction for two counts of use of a firearm during and in relation to a crime of violence, and he sentenced Ulises Medina, 25, of Earlimart, to 15 years in prison for his conviction for conspiracy to commit Hobbs Act robbery, U.S. Attorney McGregor W. Scott and Tulare County District Attorney Tim Ward announced.
U.S. Attorney Scott said, “Today’s sentences are the result of our commitment to work with our federal, state and local partners to identify and prosecute cases that will help to reduce violent crime in our communities. We are confident that these efforts will continue to reduce crime, save lives, and restore safety to our communities.”
District Attorney Ward stated: “When we began this relationship with U.S. Attorney Scott and his office, our intent was to make Tulare County a safer place. The resolution of this case is a direct and powerful example of why this relationship with our federal partners is important. Under current California law, the defendants in this case would have been eligible for youthful offender parole in California far earlier than when their federal sentences will end. We will stop at nothing to protect the communities we call home. To that end, I commend the work of the U.S. Attorney’s Office and local law enforcement, and I pledge our continued support of Project Safe Neighborhoods.”
According to court documents, Beltran and Medina conspired to commit a series of armed robberies of gas stations, convenience stores, and liquor stores. Beltran, Medina, and their associates committed at least seven armed robberies in Tulare and Kern Counties between May 2016 and January 2017. In February, Beltran, Medina, and their associates and their associates travelled to Nebraska, where they committed two more robberies. They then returned to California, where they committed three more armed robberies.
Beltran and Medina both admitted that they robbed Joe’s Westside in Porterville, California on January 18, 2017. Prior to the robbery, Beltran, Medina, and other conspirators stole a 2006 Chevrolet Trailblazer by pushing a hole in the driver’s side lock, cracking the steering shaft, and starting the vehicle without a key. They drove the vehicle to Joe’s Westside where they entered the store wearing masks and carrying guns.
Inside the store, Beltran, Medina, and another co-conspirator ordered the store clerk to the ground at gunpoint, forced the clerk to open the cash register, and stole over $8,000. Beltran, Medina, and their associates then fled in the stolen Chevrolet Trailblazer, which they abandoned approximately half a mile away with the engine still running.
Beltran also admitted that on July 22, 2017, he and other co-conspirators robbed Woodville Liquor in Woodville. Beltran and his associates stole a 2006 Chevrolet Silverado by cracking the steering shaft and starting the vehicle without a key, then drove it to Woodville Liquor. Beltran entered the store along with two other suspects, each carrying a firearm. They ordered the customers in the store to the ground at gunpoint and used zip ties to tie up one of the store employees. They then stole approximately $2,000 in cash, $4,000 in checks, bottles of whiskey, and cartons of cigarettes before fleeing in the stolen vehicle.
This case was the product of an investigation by the Federal Bureau of Investigation, Tulare County Sheriff’s Office, Porterville Police Department, Lindsay Police Department, Bakersfield Police Department, Fremont (Nebraska) Police Department, and Dodge County (Nebraska) Sheriff’s Office. Assistant U.S. Attorneys Ross Pearson and Kathleen Servatius prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Mexican National Sentenced for Toxic Marijuana Grow in Sequoia National ForestRead the Press Release
FRESNO, Calif. — Maximiliano Farias Martinez, 49, a Mexican national, was sentenced today to five years and 10 months in prison for conspiring to cultivate marijuana on public land, U.S. Attorney McGregor W. Scott announced.
According to court documents, Farias supervised Jose Manuel Sanchez Zapien, 39, of Dos Palos, who delivered supplies in Farias’ vehicle to growers at a marijuana cultivation site in the Sequoia National Forest. Law enforcement officers found approximately 20,952 marijuana plants at the site. The cultivation operation caused extensive environmental damage. Approximately three acres were stripped of vegetation and the ground was terraced to accommodate the marijuana plants. Large amounts of ammonium nitrate and other fertilizers were found at the site. Spectracide brand insecticide containers and trash were found scattered throughout the grow site. Farias was ordered to pay $8,664 in restitution to the Forest Service to cover the clean-up cost.
Sanchez pleaded guilty to the drug conspiracy and was sentenced to 10 years in prison and ordered to pay restitution to the Forest Service.
This case was the product of an investigation by the U.S. Forest Service with assistance from Homeland Security Investigations, Office of Inspector General of the Social Security Administration, Drug Enforcement Administration (DEA), California Department of Fish and Wildlife, and Merced Area Gang and Narcotics Enforcement Team (MAGNET). Assistant U.S. Attorney Karen A. Escobar prosecuted the case.
Bulldog Gang Member Sentenced to over 8 Years in Prison in Connection with Fresno ShootingRead the Press Release
FRESNO, Calif. — Alberto Perez, 31, of Fresno, was sentenced today by U.S. District Judge Lawrence J. O’Neill to eight years and four months in prison for being a felon in possession of a firearm and ammunition, U.S. Attorney McGregor W. Scott announced.
According to court documents, on June 26, 2017, while riding in a car in the area of Highway 99 and Ventura, Perez fired shots at a car, intending to hit an occupant inside the vehicle. Perez later discussed the shooting in a call with Carlos Montano, who is charged and has pleaded guilty to drug trafficking, firearms, and sex trafficking offenses in a related criminal case. Agents monitoring the intercepted communications were able to further connect Perez to the shooting using various investigative techniques. In September, 2017, investigators obtained a search warrant and found ammunition at Perez’s residence.
The charges are the product of an investigation by the DEA, FBI, HSI, ATF, the Fresno Police Department, the Fresno County Sheriff’s Office, and the Multi-Agency Gang Enforcement Consortium (MAGEC), with assistance from the California Department of Corrections and Rehabilitation. Assistant U.S. Attorneys Kimberly A. Sanchez and Jeffrey Spivak are prosecuting the case.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
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.
Atwater Man Pleads Guilty to Offenses Related to the Sexual Exploitation of Children Through Social MediaRead the Press Release
FRESNO, Calif. — Nikko Adolfo Perez, 26, of Atwater, pleaded guilty today to the sexual exploitation of children, coercion and enticement of a minor, and receipt and distribution of child pornography, U.S. Attorney McGregor W. Scott announced.
According to a criminal complaint, Perez, using the Instagram screen name captainamerica272018, victimized two boys, ages 8 and 10, in Utah by coercing them to create and send him images of them engaged in sexually explicit conduct. Perez offered to pay the boys with Google Play credits if they engaged in requested sexual acts or poses, and when one of the victims said he would call 911, Perez threatened to disseminate the sexually explicit images of the victims. He also threatened to harm family members of the victims.
Perez admitted in a plea agreement that he also used Skype, Kik, Discord, Snapchat, and LiveMe to communicate with between 50 and 100 minors for the purpose of soliciting sexually explicit images of those minors. He admitted that he persuaded the victims to pose nude or engage in sexually explicit activities, sometimes with other minors. He admitted that he often paid victims to engage in this conduct, and he sent some of the material that he had requested to other people.
Perez is scheduled to be sentenced by Chief U.S. District Judge Lawrence J. O’Neill on May 20, 2019. Perez faces the following possible penalties: a mandatory minimum term of 15 years and a maximum of 30 years in prison for the sexual exploitation count; a mandatory minimum of 10 years to a maximum of life in prison for the coercion and enticement count; and a between 5 and 20 years in prison for the one count of receipt of child pornography. For all counts there is a potential $250,000 fine and a lifetime term of supervised release. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the Salt Lake City Police Department and the Federal Bureau of Investigation offices in Salt Lake City, Utah and Fresno. Assistant U.S. Attorney David Gappa is prosecuting 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.
Yuba City Man Sentenced to 20 Years in Prison for Child Pornography OffenseRead the Press Release
SACRAMENTO, Calif. — Chad Carl Jaycox, 28, of Yuba City, was sentenced today to 20 years in prison to be followed by 25 years of supervised release for receiving images of child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, Jaycox received the images between April 2011 and September 2013. Jaycox was convicted in 2010 of unlawful sex with a minor, and he was on probation for that offense when federal agents executed a search warrant at his residence in September 2013. Upon the discovery of child pornography, Jaycox was arrested by state law enforcement agents for a violation of his probation.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Matthew G. Morris 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.
Vallejo Couple Indicted for Manufacturing Methamphetamine Pills at Elder Care FacilityRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a seven-count indictment today against Henry Benson, 37, and Roselle Cipriano, 35, of Vallejo, charging them with conspiracy to distribute and manufacture methamphetamine, distribution of methamphetamine, possession with intent to distribute methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime, U.S. Attorney McGregor W. Scott announced. Benson was also charged with being a felon in possession of a firearm.
According to court documents, Benson and Cipriano manufactured pills inside a building that also housed an eldercare facility that they owned and operated in Vallejo. They manufactured the pills in various colors and shapes, including the Kool-Aid smiling pitcher, a likeness of President Donald J. Trump’s face, the Tesla emblem, and minions. Although the pills were sold as MDMA, they were found to contain methamphetamine.
When the eldercare facility was searched on February 7, 2019, agents seized a pill press, 31 pounds of methamphetamine pills, 17 pounds of suspected methamphetamine, various other powders and manufacturing equipment, and a shotgun within three feet of the pills. A search warrant executed the next day at a storage facility rented by Benson and Cipriano turned up five additional pill presses, hazmat clothing, and additional powder suspected of containing narcotics.
This case is the product of an investigation by the Drug Enforcement Administration. Assistant U.S. Attorney Cameron L. Desmond is prosecuting the case.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Benson and Cipriano are in custody pending trial. If convicted, they each face 10 years to life 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.
Three Indicted for Firearms Offenses in Sacramento and Solano CountyRead 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 today in the following cases involving illegal firearms offenses.
Jedidiah Nathaniel Smith, 40, of Fairfield, is charged with being a felon in possession of a firearm. According to court documents, on December 5, 2018, police officers stopped a car with an expired registration that Smith was traveling in. After their initial contact with Smith, they learned that he was carrying a loaded revolver in his waistband. Smith 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 Suisun City Police Department with assistance from the FBI’s Solano County Violent Crimes Task Force and the Solano County District Attorney’s Office.
Jesus Aguilar Jr., 34, of Fairfield, is charged with being a felon in possession of a firearm. According to court documents, on November 19, 2018, police officers responded to emergency calls reporting that a man was trying to open motorists’ doors while the cars were stopped at an intersection. After the officers arrived on scene and tried to contact Aguilar, he discarded the handgun and was arrested moments later. Aguilar 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 Suisun City Police Department with assistance from the FBI’s Solano County Violent Crimes Task Force and the Solano County District Attorney’s Office.
Nassir Michaels, 39, of Reno, Nevada, is charged with one count of unlawful dealing in firearms and two counts of being a felon in possession of a firearm. According to court documents, between September 16, 2018, and October 12, 2108, Michaels engaged in the business of dealing in firearms without having an appropriate license. The firearms involved in the charged transactions included three assault rifles, one of which was capable of accepting a high-capacity magazine. Michaels is prohibited from lawfully possessing a firearm because he has previously been convicted of a felony offense. This case is the product of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by the Federal Bureau of Investigation, Sacramento and Las Vegas Divisions, Sacramento Police Department, Sacramento County Sheriff's Department, California Department of Corrections and Rehabilitation's Special Services Unit (SSU) and the California Highway Patrol. Assistant U.S. Attorney Vincenza Rabenn is prosecuting the case.
If convicted, the defendants face a maximum statutory penalty for the felon in possession of a firearm charge of 10 years in prison and a $250,000 fine. If convicted of the unlawful dealing in firearms charge, Michaels faces a maximum sentence 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 defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Additional Charges Filed in Case of Seven Aliens Who Conspired to Harbor Newman Police Officer’s Alleged KillerRead the Press Release
FRESNO, Calif. — A federal grand jury returned a nine-count superseding indictment today against Erik Razo-Quiroz, 29, of Merced; Adrian Virgen-Mendoza, 25, of Fairfield; Conrado Virgen Mendoza, 34, of Chowchilla; Erasmo Villegas-Suarez, 36, of Buttonwillow; Ana Leydi Cervantes-Sanchez, 31, of Newman; Bernabe Madrigal-Castaneda, 59, of Lamont; and Maria Luisa Moreno, 57, of Lamont, adding six new charges relating to fraudulent identification documents to the previous charges of conspiring to harbor an alien and, as to Razo, being a felon and an alien in possession of a firearm.
U.S. Attorney McGregor W. Scott and Homeland Security Investigations Special Agent in Charge Ryan L. Spradlin made the announcement.
According to court documents, between December 26, 2018, and December 28, 2018, the defendants conspired to harbor and conceal Paulo Virgen Mendoza as he attempted to flee from California to Mexico to avoid prosecution for the murder of Newman Police Corporal Ronil Singh. It is alleged that in the early hours of December 26, 2018, Mendoza, an alien not lawfully present in the United States, shot and killed Corporal Singh. Thereafter, the seven defendants helped Mendoza hide from law enforcement, despite knowing that he had killed a police officer. The defendants transported, hosted, and provisioned Mendoza with clothes, money, and a new cellphone; concealed the truck that Mendoza was driving when he allegedly killed Corporal Singh; and made plans and wired money to smuggle Mendoza out of California and back to Mexico. Additionally, Razo, a convicted felon, disposed of the gun that Mendoza allegedly used. All of the defendants are aliens not lawfully present in the United States.
In the superseding indictment, Mendoza’s brothers, Conrado Virgen Mendoza and Adrian Virgen Mendoza, are also charged with using a false Social Security Number and possessing a false lawful permanent resident card in connection with securing employment. Another relative, Erasmo Villegas-Suarez, is also charged with using a false Social Security Number in connection with securing employment.
This case is the product of an investigation by Homeland Security Investigations (HSI) and the Stanislaus County Sheriff’s Office with assistance from the Immigration and Customs Enforcement’s Enforcement and Removal Operations, the Office of the Inspector General of the Social Security Administration, the Central Valley High Intensity Drug Trafficking Area (HIDTA) task force, the Southern Tri-County HIDTA, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the California Highway Patrol, the Kern, Merced, and Santa Cruz Counties Sheriff’s Offices, and the Police Departments of the cities of Merced, Turlock, Modesto, and Santa Cruz. Assistant U.S. Attorney Karen A. Escobar and Laura D. Withers are prosecuting the case.
The defendants are next scheduled to appear in federal court for a status conference on February 25. If convicted of the firearms offenses, Razo faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The charges of harboring conspiracy and misuse of a social security number carry a maximum statutory penalty of five years in prison and a $250,000 fine. Possession of false immigration documents carries 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.
Ceres Man Pleads Guilty to 15-Pound Methamphetamine Deal in Kern CountyRead the Press Release
FRESNO, Calif. — Jose Manuel Sotelo-Mendoza, 26, of Ceres, pleaded guilty today to conspiring to distribute and possess with intent to distribute methamphetamine, U.S. Attorney McGregor W. Scott announced.
According to court documents, Sotelo and his co-defendant Oscar Ivan Salazar-Avalos, 28, a citizen of Mexico, delivered 15 pounds of methamphetamine to an undercover officer in Delano after Salazar negotiated with the officer to sell the drug for $3,400 per pound. In pleading guilty, Salazar acknowledged that he and Sotelo had met his source of supply in Castaic in the northern part of Los Angeles County to obtain the 15 pounds of methamphetamine. In addition, Salazar indicated that they intended to make $51,000 on the deal.
Salazar is scheduled for sentencing on April 8, 2019, before U.S. District Judge Dale A. Drozd. Sotelo is scheduled for sentencing on May 13, 2019. They both face a minimum statutory penalty of 10 years in prison and a maximum statutory penalty of life in prison, along with a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the 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.
Indiana Man Charged with Sexual Exploitation Involving a Minor from Madera CountyRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Scott Matthew Trischler, 24, of Ft. Wayne, Indiana, charging him with one count of sexual exploitation of a minor, one count of enticement of a minor, and one count of receipt of child pornography, U.S. Attorney McGregor W. Scott announced.
According to a criminal complaint, Trischler developed a relationship with a minor in Madera County while playing an online game with her. Trischler then communicated with the minor through Kik Messenger, Skype, TextNow, and Google Hangouts. He convinced her to create and transmit to him images of herself engaging in sexually explicit conduct from approximately December 2017 through March 2018.
Trischler was arrested in Ft. Wayne, Indiana on February 5, 2019, and he has been ordered detained at least through his next court appearance there on March 5, 2019.
This case is the product of an investigation by the Fresno, California and Ft. Wayne, Indiana offices of the Federal Bureau of Investigation as well as the Madera County Sheriff’s Office. Assistant U.S. Attorney David Gappa is prosecuting the case.
If convicted, Trischler faces the following possible penalties: a mandatory minimum term of 15 years and a maximum of 30 years in prison for the sexual exploitation count; a mandatory minimum of 10 years to a maximum of life in prison for the enticement count; and a potential five to 20 years in prison for the one count of receipt of child pornography. For all counts there is a potential $250,000 fine and a lifetime term of supervised release. 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.
Sierra Pacific Mortgage Agrees to Pay $3.67 Million to Resolve False Claims Act Allegations Related to the FHA Loan ProgramRead the Press Release
SACRAMENTO, Calif. — U.S. Attorney McGregor W. Scott announced today that Sierra Pacific Mortgage Company Inc. (SPM), a national mortgage lender headquartered in Folsom, has agreed to pay the United States $3,670,000 to resolve allegations that it violated the False Claims Act by falsely certifying compliance with Federal Housing Administration (FHA) mortgage insurance requirements in connection with certain loans.
During the time period covered by the settlement, SPM participated as a direct endorsement lender (DEL) in the U.S. Department of Housing and Urban Development’s FHA insurance program. A DEL has the authority to originate, underwrite, and endorse mortgages for FHA insurance. If a DEL approves a mortgage loan for FHA insurance and the loan later defaults, the holder of the loan may submit an insurance claim to HUD for the resulting losses. DELs are required to follow program rules designed to ensure they are properly underwriting and certifying mortgages for FHA insurance and to maintain a quality control program that can prevent and correct deficiencies in their underwriting practices.
The United States alleged that between April 2007 and June 2009, SPM knowingly submitted loans for FHA insurance that did not qualify. The United States further alleged that SPM failed to properly respond to internal warning signs that its loans were poorly underwritten and failed to properly implement a quality control program once it was aware of those warning signs.
The False Claims Act allows the government to recover damages and penalties for the presentation of false claims for payment to the United States. By improperly approving loans that did not qualify for FHA insurance, SPM caused the United States to pay insurance claims on those loans when they defaulted.
“When mortgage companies fail to follow lending standards, it harms both taxpayers and borrowers,” said U.S. Attorney Scott. “We will continue to work with HUD/FHA and our law our law enforcement partners to ensure the integrity of the FHA insurance program.”
“The wrongful actions of SPM were not minor mistakes or foot faults. There is no room at FHA for lenders who knowingly violate the trust placed in them as direct endorsement lenders,” HUD General Counsel Paul Compton said.
Assistant Special Agent in Charge Tony Meeks, HUD-Office of Inspector General, added, “When unscrupulous lenders deliberately ignore HUD guidelines, it undermines the housing market and creates distrust between potential home buyers and federal programs designed to assist them. Our office is committed to ensuring the FHA insurance program will not be mismanaged, and we are committed to pursuing all acts of fraud, waste and abuse.”
This settlement was the result of a joint investigation conducted with HUD’s Office of Inspector General. Assistant U.S. Attorney Colleen M. Kennedy handled the case for the United States. The claims settled by this agreement are allegations only and there has been no determination of liability.
Prisoner Convicted of Mailing Threats to Murder a Federal JudgeRead the Press Release
FRESNO, Calif. — After a two-day trial, a federal jury found Cyrus Dennis Braswell, 57, guilty today of three counts of mailing threatening communications, U.S. Attorney McGregor W. Scott announced.
According to court documents, a federal judge in the District of Alaska sentenced Braswell in 1998. Thereafter, while an inmate at Mendota Federal Correctional Institute in Fresno County, Braswell mailed communications to Alaska in which he threated to murder the judge after he got out of prison.
This case is the product of an investigation by the Federal Bureau of Investigation, the U.S. Marshals Service, and the Bureau of Prisons. Assistant U.S. Attorneys Laura D. Withers and Kirk E. Sherriff are prosecuting the case.
Braswell is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on May 6, 2019. Braswell faces a maximum statutory penalty of 10 years in prison and 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. Braswell currently remains in the custody of the Bureau of Prisons.
Federal Prison Cook Convicted of Conspiracy, Attempted Drug Distribution and Accepting a BribeRead the Press Release
FRESNO, Calif. — On Tuesday, a federal jury convicted David G. Bruce II, 32, of Merced, with conspiring to provide inmates with prohibited objects; attempting to possess marijuana and heroin with the intent to distribute; and taking a bribe as a public official, Special Agent in Charge James K. Cheng and U.S. Attorney McGregor W. Scott announced.
“The integrity and honesty of correctional officers are critical to the safety of our federal prisons. Our office strives to ensure that individuals who fail to uphold those values, like David Bruce, will be held accountable for their actions,” said James K. Cheng, Special Agent in Charge for the U.S. Department of Justice Office of the Inspector General’s Los Angeles Field Office.
According to court documents, Bruce was employed as a cook foreman at the United States penitentiary in Atwater (USP Atwater). Between May and December 2015, Bruce conspired with inmates and individuals outside the prison to introduce prohibited items, including marijuana and heroin, into USP Atwater and received at least $1,580 as payment. On December 15, 2015, Bruce drove to meet an individual he believed would give him drugs to be smuggled into the prison, but was instead met by federal agents.
This case is the product of an investigation by the Federal Bureau of Prisons and the Department of Justice Office of the Inspector General. Assistant U.S. Attorneys Vincenza Rabenn and Brian Delaney prosecuted the case.
Bruce faces a maximum statutory penalty of 20 years in prison and a $1 million fine for possessing a controlled substance with intent to distribute. The maximum statutory penalty for conspiring to commit an offense against the United States is five years in prison and a $250,000 fine. The maximum statutory penalty for a public official taking a bribe is 15 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Stockton Man Sentenced to Life in Prison for Long-Term Sexual Abuse of Minors Including His Own ChildrenRead the Press Release
SACRAMENTO, Calif. — Rodney Flucas, 50, of Stockton, was sentenced today to life in prison for transportation of minors with intent to engage in criminal sexual activity, 10 years in prison for transporting an adult daughter across state lines with intent to engage in incest and 20 years in prison for attempted witness tampering, U.S. Attorney McGregor W. Scott announced. U.S. District Judge Kimberly J. Mueller ordered the sentences to be served consecutively.
U.S. Attorney Scott stated: “The defendant’s conduct is an affront to the most fundamental values of our society and family structures. He repeatedly preyed upon his own children, taking advantage of their innocence and the trust they had in him. The defendant has demonstrated that he will never stop preying upon vulnerable victims, and today’s sentence will help to ensure that he does not repeat these crimes in the future.”
“No sentence can ever erase the pain that the victims have endured as a result of years of abuse and reliving those experiences during their courageous testimony in court,” said Special Agent in Charge Sean Ragan of the Sacramento Field Office. “We hope today’s sentence offers some solace to the victims and encourages those who are enduring similar, unreported circumstances to seek help from law enforcement. The FBI stands with our federal, state, and local partners to investigate these crime to ensure those who exploit our community’s vulnerable, innocent children face justice.”
According to court documents and evidence produced at trial, Flucas engaged in long‑term, concurrent sexual abuse of four of his daughters, a son, and two other young women, all of whom were minors when Flucas began abusing them. The abuse came to light in February 2017 when one of his teenaged daughters tried to commit suicide by driving into a lamppost, in the hope that her death would lead to the discovery of the abuse. She was transported to the hospital where she disclosed the abuse to authorities. From that point, at least six other victims have disclosed sexual abuse that Flucas inflicted on them since they were children. They made such disclosures despite Flucas’s aggressive campaign to undermine the credibility of his victims and his attempts to direct his victims to lie to child protection authorities and the police. Ultimately, however, Flucas’s victims disclosed their abuse notwithstanding the family mantra: “What happens in the family, stays in the family.” DNA testing confirmed that Flucas is the father of 10 children born to victims who testified in this case, including three children born to one of Flucas’s daughters. Flucas has admitted to fathering at least 37 children by numerous women.
According to evidence produced at trial and during sentencing, Flucas began abusing five of his victims when the family lived in Valdosta, Georgia around the year 2000. He owned or rented upward of four houses on the same street in Valdosta where his wife, ex-wife, other partners and numerous children lived. In 2014, the Georgia Division of Family and Children Services began to investigate allegations of child abuse, made by a grandmother of four of Flucas’s children, including allegations that Flucas had impregnated two of his daughters. They closed its investigation, and Flucas moved his family to Americus, Georgia, where he continued to sexually abuse some of his children.
By September 2014, Flucas had again moved the family, including four of his victims, this time to Klamath Falls, Oregon. Once in Oregon, Flucas also began sexually abusing a 15‑year-old girl, who had befriended Flucas’s daughter at school. Flucas invited that girl to move into his home, and he eventually impregnated her when she was 16. He also impregnated an adult daughter for the third time in Oregon. Flucas continued his abuse of his victims throughout their entire time in Oregon.
After more allegations arose in Oregon in 2015, Flucas moved his victims, including the then-pregnant friend of his daughter, to Stockton, where he found employment as a teacher of the deaf and hard of hearing. Flucas continued to sexually abuse his victims in California until the car crash that brought the allegations to light. Evidence at trial showed Flucas kept his abuse secret by abusing his victims behind the locked doors of his bedroom and bedroom closet and by waking his victims in the middle of the night to abuse them while the rest of the family slept.
Evidence at trial also demonstrated that on the heels of his daughter’s disclosure to police in Stockton, Flucas began searching the internet for places to move overseas, including China, Kenya, Ethiopia, Canada, Panama, and Nepal. He also searched for the U.S. dollar to Mexican peso conversion rate. Flucas also told two of his victims that he intended to take them someplace where he could continue the abuse, including places where Flucas believed incest to be legal such as New Jersey, Rhode Island, and Switzerland.
This case was the product of an investigation by the Federal Bureau of Investigation, originating from an investigation by the Stockton Police Department. Assistant U.S. Attorney Jeremy J. Kelley prosecuted the case.
Tehachapi Woman Sentenced to Prison for Aggravated Identity TheftRead the Press Release
FRESNO, Calif. — Hazel Turner, 54, of Tehachapi, was sentenced today by U.S. District Judge Lawrence J. O’Neill to two years in prison for aggravated identity theft, U.S. Attorney McGregor W. Scott announced.
According to court documents, Turner unlawfully possessed names, addresses, dates of birth, social security numbers, and other personal identifying information of real people. Turner used this information to prepare and submit fraudulent federal income tax returns. Turner attempted to defraud the federal government out of more than $133,000. Turner’s scheme, however, was discovered and no funds were paid.
This case was the product of an investigation by the Internal Revenue Service and the Kern County Sheriff’s Department. Assistant United States Attorney Melanie L. Alsworth prosecuted the case.
Mexican National Pleads Guilty to Marijuana Cultivation in Protected Kern County Kiavah WildernessRead the Press Release
FRESNO, Calif. — Rodolfo Torres-Galvan, 29, (Torres), a native and citizen of Mexico, pleaded guilty today to conspiring to manufacture, distribute, and possess with intent to distribute marijuana, U.S. Attorney McGregor W. Scott announced. He is the second co-conspirator to enter a guilty plea in this case.
According to court documents, Torres and his co-defendants, Mauricio Vaca-Bucio, 31, and Felipe Angeles Valdez-Colima, 35, 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, Torres agreed to pay over $7,000 in restitution to the U.S. Forest Service for the environmental damage 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.
Torres is scheduled for sentencing on April 29, 2019. Valdez pleaded guilty in January and is scheduled for sentencing on April 22, 2019. They face a minimum statutory penalty of 10 years in prison and a maximum statutory penalty of life in prison, along with a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges against Vaca are pending and are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Citrus Heights Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
SACRAMENTO, Calif. — Emanuel Mois, 25, of Citrus Heights, pleaded guilty today to receipt of child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, between November 2016 and February 2017, Mois knowingly received and saved images depicting children engaged in sexually explicit activity onto his cellphone. At the time he received the images, Mois was on parole pursuant to a California state conviction for possession/distribution of child pornography, and had a prior conviction by the State of California for sexual battery of a minor.
This case is the product of an investigation by the Federal Bureau of Investigation, the Citrus Heights Police Department, and the Roseville Police Department. Assistant U.S. Attorney Amy Schuller Hitchcock is prosecuting the case.
Mois is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on May 13, 2019. He faces a minimum statutory penalty of 15 years in prison and a maximum penalty of 40 years in prison, as well as a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Bakersfield Man Pleads Guilty to Cyberstalking Florida WomanRead the Press Release
FRESNO, Calif. —Earl John Velasquez, 23, of Bakersfield, pleaded guilty today to stalking, U.S. Attorney McGregor W. Scott announced.
According to the plea agreement, between January and June 2018, Velasquez used various cellphones and social media applications to post threatening statements to a woman living in Florida. In addition to his own accounts, Velasquez created a social media account using a fictitious name and also used a relative’s account to send the threatening messages. Among other threats, Velasquez claimed he was planning on shooting up a tattoo parlor in Florida. On April 30, he commented on an Instagram post in which the victim was tagged and said, “I’m going to kill that girl one day.” This conduct caused substantial emotional distress to the victim.
This case is the product of an investigation by the Federal Bureau of Investigation and the Kern County Sheriff’s Department. Assistant U.S. Attorney Melanie L. Alsworth is prosecuting the case.
Velasquez is scheduled to be sentenced by U.S. District Judge Lawrence J. O’Neill on May 6, 2019. Velasquez faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Tobacco Distributor and Two Distribution Companies Charged with Evading California Excise TaxRead the Press Release
SACRAMENTO, Calif. — On December 13, 2018, a federal grand jury returned a 28‑count indictment against Rahman Lakhani, 40, of Naperville, Illinois; N. Ali Enterprises Inc., an Illinois corporation; and 21st Century Distribution Inc., a Nevada corporation, charging them with committing mail and wire fraud, U.S. Attorney McGregor W. Scott announced.
The indictment was unsealed after the arrest of Lakhani on Thursday.
“ATF defines tobacco diversion as the trafficking of tobacco products in avoidance of Federal, State or foreign taxes or in violation of Federal, State or foreign law,” said ATF, San Francisco Field Division, Special Agent in Charge Ray Roundtree. “ATF and the California Department of Tax and Fee Administration worked diligently to put an end to the defendants unlawful acts of tobacco trafficking. Their actions resulted in a loss of millions of dollars in excise taxes for the state of California and the programs those taxes are used to help. ATF is committed to enforcing the law to ensure that the state of California is not a victim of this crime and that everyone is following the rules for the operation of their business.”
“Tax evasion hurts all of us by reducing revenue funding California’s essential state and local services,” said CDTFA Director Nick Maduros. “Nearly 90 percent of the taxes collected on cigarettes and tobacco products are earmarked to fund important programs, including First 5 California. The CDTFA is committed to combating tax evasion to support California’s communities.”
According to court documents, between August 2015 and April 2018, the defendants devised a scheme to avoid paying excise tax on approximately $26,585,000 worth of tobacco products other than cigarettes such as cigars, chewing tobacco and leaf tobacco called “Other Tobacco Products” or OTP. Lakhani owned and operated N. Ali Enterprises and 21st Century Distribution and used them to sell OTP to companies in California, on which all excise tax had purportedly been paid. The result of the scheme was a loss of approximately $5 million to $10 million to the State of California.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives along with the former California State Board of Equalization, sections of which are now the California Department of Tax and Fee Administration. Assistant U.S. Attorneys Michael D. Anderson and Rosanne L. Rust are prosecuting the case.
If convicted, Lakhani faces a maximum statutory penalty of 20 years in prison and a $250,000 or twice the gross loss or gain. If convicted, N. Ali Enterprises Inc. and 21st Century Distribution face up to five years of probation and a $500,000 fine or twice the gross loss or gain caused by the offense. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Sacramento Man Sentenced to 12 Years in Prison for Cocaine Trafficking & Gun PossessionRead the Press Release
SACRAMENTO, Calif. — Benjamin Macias, 40, of Sacramento, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to 12 years in prison for conspiring to distribute cocaine, distributing cocaine, possessing cocaine with the intent to distribute it, and being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, in 2014 and 2015, Macias supplied Sergio Ambriz, 29, of Sacramento, with cocaine. On four occasions, Ambriz sold this cocaine to an undercover agent in Sacramento and El Dorado Counties. Agents planned to arrest Macias and Ambriz during a fifth transaction on June 9, 2015. Shortly before they could do so, Macias sped away from the scene at about 90 miles per hour. Helicopter video showed that, in his attempt to escape, he drove through an intersection, appeared to fail to stop at a red light, and drove erratically as he passed other cars on westbound Highway 50 near the El Dorado Hills Town Center.
After they apprehended him in Gold Run, agents searched Macias’s car. In the glove compartment, they found a Ruger 9 mm pistol loaded with hollow-point bullets; they also found more than one pound of cocaine in the trunk. On the same day, agents searched Macias’s Sacramento home and found ammunition, a 35-round magazine, and more cocaine.
Macias has a record of other criminal convictions stretching back to 1996. He was on pretrial release for California state charges relating to firearm and marijuana possession when he committed the crimes of which he was convicted in this case.
Ambriz previously pleaded guilty to using a cellphone to facilitate a drug trafficking offense and was sentenced on November 4, 2016, to four years in prison.
This case is the product of an investigation by the Drug Enforcement Administration, the El Dorado County Sheriff’s Department, the El Dorado County District Attorney’s Office, the California Highway Patrol, the California Department of Corrections and Rehabilitation, and the Sacramento County Sheriff’s Department. Assistant U.S. Attorneys Paul A. Hemesath and Amanda Beck prosecuted the case.
Federal Indictment Charges Sacramento Woman with Preparing False Tax ReturnsRead the Press Release
SACRAMENTO, Calif. — A six-count indictment returned by a federal grand jury was unsealed today, charging Leticia Tyshalle Reed, 42, of Sacramento, with making false claims to the Internal Revenue Service, U.S. Attorney McGregor W. Scott announced.
According to the indictment, Reed prepared and submitted federal income tax returns for tax years 2013 and 2014 for individuals that included false information and sought refunds that Reed knew the individuals were not entitled to receive.
This case is the product of an investigation by the IRS Criminal Investigation. Assistant U.S. Attorney Shelley D. Weger is prosecuting the case.
If convicted, Reed faces a maximum statutory penalty of five years in prison and a $250,000 fine on each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Fairfield Man Sentenced to over 17 Years in Prison for Attempted Online Enticement of a MinorRead the Press Release
SACRAMENTO, Calif. — Donald Threatt, 68, of Fairfield, was sentenced Thursday to 17 years and eight months in prison for attempted online enticement of a minor, U.S. Attorney McGregor W. Scott announced.
According to court documents, in April 2017, Threatt began conversing through the Kik Messenger mobile app with an individual who identified herself as “Sarah,” a 15-year-old girl who was interested in online games, soccer, and track. Off and on over the course of many days, Threatt used Kik to tell “Sarah” the various sexual things he wanted to do to her. He discussed and agreed with the purported minor that he would visit her residence on Beale Air Force Base while her mother was away. According to the Kik chat, Threatt suggested blindfolding her and tying her up with rope. He stated that he would engage in various sexual acts with her and proposed that they take photos and a video of their sexual activity. Threatt arranged to meet her at her residence on May 12, 2017, after her mother had left for the weekend.
Unbeknownst to Threatt, the minor was actually an undercover law enforcement agent. On the day of the planned meeting, law enforcement personnel surveilled Threatt as he left his home in Fairfield, purchased rope from a home improvement store, and drove to the house where the meeting with the minor was to occur. Threatt was arrested after he pulled into the garage of the house. In his car, agents found cameras, a tripod, rope, and condoms.
According to court documents, this was not the first time Threatt attempted to prey on a child. Agents searched Threatt’s residence and seized a computer hard drive containing approximately 800 internet chats from 2008. Together, those communications showed he had been communicating with several girls under the age of 18. In those communications, Threatt discussed how he wanted to have sexual relations with the underage girls and repeatedly solicited and received nude photographs from at least one minor. In addition, in 2013, Threatt was arrested after he used email to attempt to persuade an undercover law enforcement officer that he believed to be a 15-year-old girl to meet with him to have sex. Threatt was prosecuted in state court for that offense.
This case was the product of an investigation by the Air Force Office of Special Investigations and the Federal Bureau of Investigation. Assistant U.S. Attorneys Matthew D. Segal, Jeremy J. Kelley, and Katherine T. Lydon prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Fresno Man Sentenced for CarjackingRead the Press Release
FRESNO, Calif. — Nicholas Lobkowski, 39, of Fresno, was sentenced Monday by U.S. District Judge Lawrence J. O’Neill to seven years and eight months in prison for carjacking, U.S. Attorney McGregor W. Scott announced.
According to court documents, on September 28, 2017, Lobkowski carjacked a victim at knifepoint. Lobkowski fled in the vehicle and was located by police. Lobkowski drove recklessly, proceeded through a stop sign without stopping, and crashed into two vehicles, causing injuries to several of the occupants.
This case was the product of an investigation by Homeland Security Investigations and Fresno Police Department. Assistant U.S. Attorney Kimberly A. Sanchez prosecuted the case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Former Correctional Officer Sentenced to Prison for Sexting and Propositioning Teenaged GirlRead the Press Release
SACRAMENTO, Calif. — Timothy Holt, 27, formerly of Susanville, was sentenced today by U.S. District Judge John A. Mendez to 21 months in prison and three years of supervised release for transportation of obscene matters, U.S. Attorney McGregor W. Scott announced.
According to court documents, the father of a teenaged girl reported that Holt, as an adult correctional officer, had been sexually propositioning his daughter over an internet messaging service. Law enforcement officers took over the girl’s messaging account. Posing as the teenaged girl, officers continued to chat with Holt and agreed to meet him. Officers arrested Holt when he arrived at the meet location.
This case was the product of an investigation by the FBI and the California Department of Corrections and Rehabilitation. Assistant U.S. Attorney Matthew Segal prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Dog Pound Gangster Sentenced to over 11 Years in PrisonRead the Press Release
FRESNO, Calif. — Kiandre Johnson, 25, of Fresno, was sentenced Monday to 11 years and six months in prison for engaging in a conspiracy to commit murder in aid of racketeering and using a facility of interstate commerce to facilitate prostitution, U.S. Attorney McGregor W. Scott announced.
According to court documents, in March and April 2016, Johnson conspired with other Dog Pound Gang members to kill rival gang members for the purpose of gaining or maintaining his status within the Dog Pound enterprise. Between March 23, 2016, and April 7, 2016, three Dog Pound members or associates were shot or shot at by rival gang members. After the March 23 shooting, Johnson and other Dog Pound members conspired to murder rival gang members in retaliation for the shootings. On April 7, 2016, Johnson obtained a firearm from co‑defendant William Lee to use in a shooting later that evening. Johnson was armed with the gun when he and others went to Fink White Park, rival gang territory, and engaged in a shooting. Johnson tried to fire the gun, but it jammed. After, Johnson returned to a local hotel where other Dog Pound members were located. Johnson met with Lee, and the two planned to go and test the gun to see what the problem was. However, before they could do so, police attempted to stop them. They threw the gun out of the window of the car and police recovered it.
Additionally, York, Monson, Wharry, Maxey, Johnson, and Millro were involved in sex trafficking female victims both within and outside of California. Wharry, Johnson, and Windfield were also involved in fraud that involved obtaining stolen credit card account numbers, manufacturing counterfeit credit cards, and conducting transactions with the counterfeit credit cards throughout California, Nevada, Oregon, Minnesota, Illinois, and Missouri to obtain money, goods and services.
Johnson was the last of the defendants in the case to be sentenced. Following are the other defendants charged in this case:
James York, 41, a leader in the Dog Pound enterprise, was sentenced to 14 years in prison for conspiracy to commit murder in aid of racketeering, use of a facility of interstate commerce to promote prostitution, and possession of an unregistered firearm;
Trenell Monson, 31, a leader in the Dog Pound enterprise, was sentenced to 15 years in prison for conspiracy to commit murder in aid of racketeering, interstate transportation for prostitution, and use of a facility of interstate commerce to promote prostitution;
Deandre Stanfield, a leader in the Dog Pound enterprise, was sentenced to 10 years in prison for conspiracy to commit murder in aid of racketeering;
Kenneth Wharry Jr., 35, was sentenced to 10 years and one month in prison for conspiracy to commit murder in aid of racketeering, interstate transportation for prostitution, and conspiracy to effect transactions with access devices issued to other persons;
Darrell Maxey, 23, was sentenced to 10 years in prison for conspiracy to commit murder in aid of racketeering, and use of a facility of interstate commerce to promote prostitution;
Davon Millro, 24, was sentenced to 10 years and one month in prison for conspiracy to commit murder in aid of racketeering, and use of a facility of interstate commerce to promote prostitution;
Kenneth Johnson III, 28, was sentenced to 10 years and one month in prison for conspiracy to commit murder in aid of racketeering, and conspiracy to effect transactions with access devices issued to other persons;
William Lee, 41, was sentenced to 10 years in prison for conspiracy to commit murder in aid of racketeering; and,
Anthony Windfield Jr., 33, was sentenced to 7 years, 3 months in prison for conspiracy to commit murder in aid of racketeering and conspiracy to effect transactions with access devices issued to other persons.
This case was the product of an investigation by the California Department of Justice/California Highway Patrol Special Operations Unit; Fresno Police Department; the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives; the IRS Criminal Investigation; the Multi-Agency Gang Enforcement Consortium; the Fresno County District Attorney’s Office; and California Department of Corrections and Rehabilitation. Assistant U.S. Attorneys Kimberly A. Sanchez and Jeffrey A. Spivak prosecuted the case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Vallejo Couple Convicted of $2 Million Tax Fraud and Money LaunderingRead the Press Release
SACRAMENTO, Calif. — A federal jury convicted Vallejo couple Marty Marciano Boone, 57, and Ronda Boone, 56, on Thursday for conspiring to launder $2 million that they received after filing fraudulent tax returns, U.S. Attorney McGregor W. Scott announced.
Marty Boone was found guilty of one count of filing a false tax return, one count of conspiring to commit money laundering, and two counts of money laundering. Ronda Boone was found guilty of one count of conspiring to commit money laundering and two counts of money laundering.
According to court documents and evidence presented at trial, the couple filed separate 2008 tax returns, each of which fraudulently claimed millions of dollars in refunds. The IRS flagged Ronda Boone’s tax return, did not pay her, and fined her $5,000. However, Marty Boone received a fraudulent tax refund of more than $1.9 million. Evidence showed that the Boones received this check in August 2009, deposited it in a new checking account, and then quickly drained the account. They moved the funds through a series of other accounts in New York, California, Washington, and the nation of Cyprus. The Boones funneled more than $200,000 of this money to a “church” they had set up in Washington state. Evidence at trial established that this money was spent at a Harley Davidson motorcycle shop, in nail salons, and on other seeming everyday expenses, such as groceries and gas. The Boones laundered another $100,000 of their fraud money through a shell company they established in Cyprus.
This case is the product of an investigation by the IRS Criminal Investigation. Assistant U.S. Attorneys Matthew M. Yelovich and Amanda Beck are prosecuting the case.
Both defendants are scheduled to be sentenced on May 9, 2019. They face a maximum statutory penalty of 10 years in prison and a fine equal to $250,000, or twice the amount of the criminally derived property, 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.
Lemoore Man Employed at Naval Air Station Charged with Embezzlement and Theft of Union AssetsRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment on Thursday against Kevin Crownover, 46, of Lemoore, charging him with embezzlement and theft of union assets and aggravated identity theft, U.S. Attorney McGregor W. Scott announced.
According to court documents, Crownover was the treasurer for a labor organization consisting of mechanics employed at Lemoore Naval Air Station. Between September 2015 and October 2016, he generated at least 70 unauthorized checks and made unauthorized cash withdrawals from the union’s bank accounts, resulting in a loss to the union of at least $50,879. Furthermore, Crownover did so by forging the signature of the union president, which forms the basis of the aggravated identity theft charge.
This case is the product of an investigation by the U.S. Department of Labor, Office of Labor-Management Standards. Assistant U.S. Attorney Laura D. Withers is prosecuting the case.
If convicted, Crownover faces a maximum statutory penalty of five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Elk Grove Man Sentenced to over 12 Years in Prison for Sex Trafficking of a ChildRead the Press Release
SACRAMENTO, Calif. — Abdul Basier Hashimi, 26, of Elk Grove, was sentenced today by Senior U.S. District Judge Garland E. Burrell Jr. to 12 years and seven months in prison for sex trafficking of a child, U.S. Attorney McGregor W. Scott announced.
On August 31, 2018, Hashimi pleaded guilty to sex trafficking of a child. According to statements made during the hearing, Hashimi met the 13-year-old victim in August 2014 on social media and began communicating with her. After she turned 14, Hashimi caused her to work as a prostitute in Sacramento, Oakland, and elsewhere in Northern California. Hashimi managed the victim’s activities by, among other things, creating an internet advertisement, renting a motel room, and driving her to areas with prostitution activity where he caused her to work as a prostitute. The victim gave Hashimi the money she earned.
“Child sex traffickers often prey upon our community’s most vulnerable minors — runaways, foster kids, children who face difficult circumstances — promising the young victims that they will receive care and support. In actuality, traffickers treat their victims as commodities to acquire and sell, generating profit from exploiting them and leveraging their youth as a selling point,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “The FBI, the Sacramento Police Department, and our partners on the Child Exploitation Task Force continue to work tirelessly to identify and disrupt predators like Hashimi to protect the children in our communities. We are also all committed to ensuring the children recovered from exploitation receive the services to move forward with their lives.”
This case was the product of an investigation by the Federal Bureau of Investigation and the Sacramento Police Department. Assistant U.S. Attorney Brian A. Fogerty prosecuted the case.
Three Butte County Residents Indicted for Trafficking in Fentanyl-Laced PillsRead the Press Release
SACRAMENTO, Calif. — U.S. Attorney McGregor W. Scott and Butte County Sheriff Kory L. Honea announced that a federal grand jury returned a three-count superseding indictment today against Guillermo Jose Leon Ramirez, 41, of Oroville; Justin James Garcia, 44, of Oroville; and William Lee Vollendroff, 43, of Palermo, charging them with conspiracy to distribute fentanyl and two counts of distribution of fentanyl.
According to court documents, during two separate drug deals, the defendants sold more than 1,000 fentanyl-laced pills that were made to look like Oxycodone pills to a confidential source. Fentanyl is a very potent synthetic opiate that is 100 times more potent than morphine and can be extremely dangerous due to the small amount of the substance needed for the user to overdose.
This case is the product of an investigation by the Butte Interagency Narcotics Task Force (BINTF), the Drug Enforcement Administration, the Federal Bureau of Investigation, and the California Highway Patrol. Assistant U.S. Attorney David Spencer is prosecuting the case.
If convicted, the defendants each face a mandatory minimum sentence of five years in prison, a maximum statutory penalty of 40 years in prison, and a fine of up to $5 million. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Fresno Man Charged with Assaulting Postal EmployeeRead the Press Release
FRESNO, Calif. — A federal grand jury returned an indictment today against Pablo Rivera, 34, of Fresno, charging him with assaulting a federal employee, a letter carrier for the U.S. Postal Service who was engaged in the performance of his duties, U.S. Attorney McGregor W. Scott announced.
According to court documents, on January 19, 2019, the letter carrier was sitting in his mail truck near Jackson Avenue and E. Shaw Avenue in Fresno, when Rivera ran up to him and stopped him from closing the door. Rivera shoved the letter carrier into the vehicle and sped off with the mail truck. According to police officers on the scene, after Rivera crashed the mail truck into a telephone support cable on Maroa Avenue, he was apprehended.
This case is the product of an investigation by the United States Postal Inspection Service. Assistant U.S. Attorney Thomas Newman is prosecuting the case.
If convicted, Rivera faces a maximum statutory penalty of eight 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.
Jury Finds Local Plaintiff’s Attorney Guilty of Corruptly Obstructing an IRS AuditRead the Press Release
SACRAMENTO, Calif. — On Monday, a federal jury found Stephen J. Dougan, 59, formerly of Granite Bay, guilty of one count of corruptly endeavoring to impede the due administration of the Internal Revenue Laws, U.S. Attorney McGregor W. Scott announced.
According to evidence admitted at trial, during an Internal Revenue Service audit of his 2006 and 2007 tax returns, Dougan made false statements and provided false and misleading documents to the IRS that substantially underrepresented his income in 2006 and 2007. He also made false statements and provided false and misleading documents to the IRS in order to substantiate various business expenses he claimed on Schedule C of his 2006 tax return.
This case is the product of an investigation by IRS Criminal Investigation. Assistant U.S. Attorneys Michael M. Beckwith, Chi Soo Kim, Matthew M. Yelovich and Amy Schuller Hitchcock are prosecuting the case.
Dougan is scheduled for sentencing on April 22, 2019. He faces a maximum statutory penalty of three years in prison and a $5,000 fine or a fine of twice the value of the gross gain or loss from the tax violation, which, in this case, exceeded $320,000.
Mexican National Pleads Guilty to Marijuana Cultivation in Wilderness Area in Kern CountyRead the Press Release
FRESNO, Calif. — Felipe Angeles Valdez-Colima (Valdez), 35, of 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, Valdez and his co-defendants, Mauricio Vaca-Bucio (Vaca), 31, and Rodolfo Torres-Galvan, 29, (Torres), both of Mexico, were apprehended in the Kiavah Wilderness area of the Sequoia National Forest, a federally designated wilderness area, after a two-month investigation. Law enforcement officers saw Valdez and Torres emerge from the forest at a drop point that had long been used by marijuana cultivators to access grow sites in that remote area. The men entered a vehicle driven by Vaca and were later stopped in the Kern County town of Weldon. Officers found freshly harvested marijuana in their vehicle and located over 1,800 marijuana plants at the grow sites on the interconnected trails from the drop point. The officers also found harmful and illegal pesticides, including carbofuran and zinc phosphide, in the vehicle and at the grow sites. In pleading guilty, Valdez 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 United States Attorney Karen A. Escobar is prosecuting the case.
Valdez is scheduled for sentencing on April 22, 2019. 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. The charges against Vaca and Torres are still pending. As to them, the charges are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Bakersfield Trucker Sentenced for Shipping Drugs Sourced from MexicoRead the Press Release
FRESNO, Calif. — Darrell Leon Jennings, 51, of Bakersfield, was sentenced today to five years in prison for conspiring to distribute and possess with intent to distribute heroin and cocaine, U.S. Attorney McGregor W. Scott announced.
His sentence follows his guilty plea on November 7, 2018. According to court documents, Jennings, a trucker doing business in Moreno Valley as Jennings Transportation, assisted Mario Alvarez-Muniz, 50, of Taft, in transporting 6 kilograms of heroin and 11 kilograms of cocaine destined for Chicago. After Alvarez-Muniz arranged for the shipment of the drugs from Mexico to Mira Loma, Jennings picked up the drugs and drove back to Bakersfield where he was stopped by agents. A police dog located the drugs in a customized hidden compartment in Jennings’ truck.
Co-defendant Alvarez-Muniz previously entered a guilty plea and was sentenced last year to a prison term of 10 years and 1 month.
This case was the product of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation by the U.S. Drug Enforcement Administration, California Highway Patrol, Bakersfield Police Department, and Kern County Probation Office. OCDETF is the centerpiece of the United States Attorney General's drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and related criminal enterprises. Assistant U.S. Attorney Karen Escobar prosecuted the case.
Seven Indicted for Conspiring to Harbor and Conceal Man Accused of Killing Newman Police CorporalRead the Press Release
FRESNO, Calif. — A federal grand jury returned an indictment today against Erik Razo‑Quiroz, 29, of Merced; Adrian Virgen-Mendoza, 25, of Fairfield; Conrado Virgen‑Mendoza, 34, of Chowchilla; Erasmo Villegas-Suarez, 36, of Buttonwillow; Ana Leydi Cervantes-Sanchez, 31, of Newman; Bernabe Madrigal-Castaneda, 59, of Lamont; and Maria Luisa Moreno, 57, of Lamont, charging them with conspiring to harbor an alien, U.S. Attorney McGregor W. Scott and Homeland Security Investigations Special Agent in Charge Ryan Spradlin announced. In addition, Razo‑Quiroz is charged with being a felon in possession of a firearm and being an alien in possession of a firearm.
U.S. Attorney Scott stated: “Law enforcement agencies that are sworn to protect the public can accomplish their mission only when they have the active cooperation and support of the community they serve. Officers who serve our community put their lives on the line every day to protect us, and they deserve that cooperation and support. When individuals act to thwart law enforcement’s efforts, they undermine the safety of those officers and the public as a whole. Today’s indictment is a significant step toward holding accountable those who chose to harbor and conceal the man accused of killing a police officer in Newman, California, Corporal Ronil Singh.”
According to court documents, between December 26 and 28, the defendants conspired to harbor and conceal Gustavo Perez Arriaga, while he evaded capture for the alleged murder of Newman Police Corporal Ronil Singh. It is alleged that in the early hours of December 26, 2018, Arriaga, an alien not lawfully present in the United States, shot and killed Corporal Singh. Thereafter, the seven defendants helped conceal and harbor Arriaga, despite knowing that he had killed a police officer. The defendants transported, hosted, and provisioned Arriaga with clothes, money, and a new cellphone; concealed the truck that Arriaga was driving when he allegedly killed Corporal Singh; and made plans and wired money to smuggle Arriaga out of California and back to Mexico. Additionally, Razo-Quiroz, a convicted felon, disposed of the gun that Arriaga allegedly used to murder Corporal Singh.
This case is the product of an investigation led by Homeland Security Investigations and the Stanislaus County Sheriff’s Office with assistance by the Immigration and Customs Enforcement, Enforcement and Removal Operations; Central Valley High Intensity Drug Trafficking Area (HIDTA) task force; Southern Tri-County HIDTA; Bureau of Alcohol, Tobacco, Firearms, and Explosives; California Highway Patrol; the Sheriffs’ Offices for Kern, Merced, and Santa Cruz Counties; and the Police Departments for Merced, Turlock, Modesto, and Santa Cruz. Assistant U.S. Attorneys Karen A. Escobar and Laura D. Withers are prosecuting the case.
If convicted of the firearms offenses, Razo-Quiroz faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The conspiracy 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 defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Fresno Man Charged with Two Counts of Distributing Fentanyl Resulting in DeathRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Darnell Pearson, 40, of Fresno, charging him with distribution of fentanyl resulting in death, U.S. Attorney McGregor W. Scott announced.
“This defendant is alleged to have sold cocaine that was, in fact, fentanyl and caused the deaths of two people and serious injury to two others,” U.S. Attorney Scott stated. “Fentanyl is extremely dangerous and is a serious public health threat in our area and the nation as a whole. Even trace amounts of this drug can be lethal, and it poses serious risks to those who come into contact with it, including first responders. We will continue to work with our state and federal partners to target those who distribute this poison in our communities.”
According to court documents, on January 7, 2019, law enforcement officers responded to a call concerning an overdose in Fresno and found three individuals on the ground with faint or no pulse. All three individuals were transported to Community Regional Medical Center for treatment. One of the individuals was pronounced dead on January 10, 2019. A toxicology report determined that the cause of death for the individual was overdose from fentanyl. The other two individuals survived and were later released from the hospital. Pearson is charged in count one with distributing fentanyl to the three individuals resulting in death of one and serious bodily injury to the other two.
The second count of the indictment charges Pearson with distributing fentanyl to a victim in Madera, resulting in death on January 7, 2019.
This case is the product of an investigation by the U.S. Drug Enforcement Administration, Homeland Security Investigations, the Fresno Police Department, and the Madera Police Department. Assistant U.S. Attorneys Laurel Montoya and Jeffrey A. Spivak are prosecuting the case.
If convicted, Pearson faces a minimum statutory penalty of 20 years in prison, a maximum of life in prison, and a $1 million fine on each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Social Security Employee of West Sacramento and North Carolina Man Indicted on Conspiracy and Fraud ChargesRead the Press Release
SACRAMENTO, Calif. — On Thursday, a federal grand jury returned a 13-count indictment against Eric Lemoyne Willis, 42, of West Sacramento, and Darron Dimitri Ross, 33, of Charlotte, North Carolina, charging them with conspiracy to defraud and commit crimes against the United States, theft of government property, aggravated identity theft, and wire fraud, U.S. Attorney McGregor W. Scott announced.
According to court documents, Willis and Ross allegedly conspired to steal public money from the Social Security Administration (SSA). Willis worked as an SSA Operation Supervisor in Sacramento and Lodi from 2015 until his departure in January 2018. During this timeframe, Willis used his authority as an SSA employee to access the confidential Social Security records of numerous Social Security beneficiaries. These records contained personally identifiable information (PII) including names, addresses, social security numbers, dates of birth, account numbers, family information, and benefit payment amounts. Willis would seek out PII for beneficiaries who used direct deposit for payment of large benefits. Willis then gave this PII to Ross who resided in North Carolina.
Ross’s role in these crimes included calling numerous SSA field offices across the country and using the stolen PII to impersonate the beneficiaries. Ross also opened at least 44 online bank accounts under fraudulent identities to receive diverted SSA benefit payments. If Ross succeeded in convincing an SSA representative that he was the beneficiary, he would request that the beneficiary’s direct deposit account be changed to one of Ross’s fraudulent accounts. The SSA then proceeded to deposit benefit payments into Ross’s account until the fraud was detected. Ross was then free to withdraw the funds at ATMs and spend the money using debit cards. Ross also transferred a portion of the stolen proceeds to Willis for his participation in these crimes.
SSA has identified at least 148 beneficiaries targeted by these crimes, and the total fraud loss suffered by SSA has exceeded $450,000. Willis and Ross spent the proceeds of their crimes on, among other things, trips to Las Vegas and luxury items including Rolex watches.
This case is the product of an investigation by the Social Security Administration – Office of the Inspector General and the Federal Bureau of Investigation. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
Federal agents arrested Willis and Ross last week based on a criminal complaint. Willis was released on bond in Sacramento, and Ross was detained pending his appearance in the Eastern District of California.
If convicted of wire fraud, Willis and Ross face a maximum statutory penalty of 20 years in prison and a $250,000 fine. If convicted of aggravated identity theft, they each face a mandatory sentence of two years in prison consecutive to any other sentence imposed. The maximum sentence for theft of government property is 10 years in prison and a $250,000 fine. The maximum sentence for conspiracy is five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Sacramento Real Estate Broker Indicted for International Money Laundering Conspiracy Funding Residential Marijuana Grows with Wires from ChinaRead the Press Release
SACRAMENTO, Calif. — A nine-count indictment was unsealed today after the arrests of Heidi Phong, 36, of Elk Grove, and Zhen Shang Lin, 37, of Riverside, U.S. Attorney McGregor W. Scott announced.
The indictment, brought by a federal grand jury on December 13, 2018, charged Phong, Lin, Li Juan Wang, 37, of Riverside, and Feng Li, 48, of Sacramento, with conspiracy to commit international money laundering, international money laundering, conspiracy to manufacture marijuana, and manufacturing marijuana. This is the third indictment stemming from Operation Lights Out — an operation that has already resulted in federal forfeiture actions against over 100 homes in the Sacramento area earlier this year.
According to court documents, Phong operated HP Real Estate and Skye Investment LLC in Sacramento. Using these entities, Phong conspired with others to arrange for the use of wires from China to purchase residential real estate throughout the region that was intended to be converted into indoor marijuana grows. Phong is also alleged to have entered three separate marijuana manufacturing conspiracies, two with individuals charged earlier in 2018 and one with Zhen Shang Lin and Li Juan Wang. Finally, Lin and Wang are charged with international money laundering and marijuana manufacturing charges related to real estate in Yuba and Sacramento counties.
This case is the product of an investigation by Federal Bureau of Investigation, the Drug Enforcement Administration, Homeland Security Investigations, and IRS Criminal Investigation. Yuba County Sheriff’s Office assisted. Assistant U.S. Attorneys Roger Yang, Matthew M. Yelovich, and Kevin C. Khasigian are prosecuting the case.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
If convicted, the defendants face a maximum statutory penalty of 40 years in prison and a $5 million fine for each of the marijuana-related counts, and a maximum penalty of 20 years in prison and $500,000 fine, or twice the value of the monetary instrument or funds involved, whichever is greater, for each of the money laundering related 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 defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Fresno Residents Indicted for Aiming Laser Beam at CHP AircraftRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Carlos Villa-Lozano, 30, and Paulina Silva Aguilar, 32, both of Fresno, charging them with aiming the beam of a laser pointer at a California Highway Patrol aircraft, U.S. Attorney McGregor W. Scott announced. Villa-Lozano was also charged separately with making false statements to an agent of the Federal Bureau of Investigation.
The indictment alleges that on July 22, 2018, Villa-Lozano and Silva used a dangerously bright green laser pointer to strike a CHP fixed-wing aircraft approximately 12 times. The indictment further alleges that Villa-Lozano materially misrepresented to the FBI agent that the laser device was used for one to two seconds “at most” and hit the aircraft only one time.
This case is the product of an investigation by the FBI and California Highway Patrol. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
Villa-Lozano and Silva are scheduled for an arraignment on the indictment on December 21, 2018, in federal court in Fresno. If convicted, Villa-Lozano and Silva face a maximum statutory penalty of five years in prison and a $250,000 fine. If convicted of the false statement offense, Villa-Lozano faces an additional 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 defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Stanislaus County Woman Arrested for Stealing Money from Social Security and Other Benefit RecipientsRead the Press Release
SACRAMENTO, Calif. — Lorene Deanda, 59, of Ceres, was arrested today on an indictment charging her with 10 counts of mail fraud and one count of conversion of Social Security benefit funds, U.S. Attorney McGregor W. Scott announced today. Deanda was charged by federal grand jury on December 6, 2018.
According to court documents, Deanda was employed by a charitable organization in Modesto. Deanda participated and ultimately managed the organization’s representative payee program. This program assisted recipients of Social Security and other federal and state benefits that could not physically manage their own financial affairs. Deanda, on behalf of the charitable organization, would set up bank accounts for the beneficiaries and receive benefit funds into those accounts. Deanda’s duties included paying beneficiaries’ bills and necessities from those accounts and benefit funds. However, from April 2009 to May 2015, Deanda stole benefit funds from the accounts and beneficiaries and spent the money for her personal expenses. The amount of stolen funds exceeded $516,000.
This case is the result of an investigation by the Social Security Administration, Office of Inspector General and the Federal Bureau of Investigation. Assistant U.S. Attorney Henry Z. Carbajal III is prosecuting the case.
If convicted, Deanda faces a maximum statutory penalty for mail fraud of 20 years in prison with a $250,000 fine and a maximum penalty of five years in prison for conversion of Social Security benefits. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Fresno Residents Sentenced to Prison for Unlawfully Possessing FirearmsRead the Press Release
FRESNO, Calif. — Devone Johnson, 32, of Fresno, was sentenced today by U.S. District Judge Dale A. Drozd to three years in prison for unlawful possession of a firearm, U.S. Attorney McGregor W. Scott announced. Co-defendant Anthony Thomas, 26, also of Fresno, was sentenced last week to two years and nine months in prison for unlawful possession of a firearm.
According to court documents, on October 9, 2016, Johnson and Thomas possessed an Uzi Model A, 9 mm rifle. On October 30, 2016, Johnson told an associate he had a .45-caliber handgun for sale. When he was arrested at a Fresno residence on November 3, 2016, Johnson was found with three additional firearms and ammunition, including a shotgun and two handguns. Both Thomas and Johnson were prohibited from possessing firearms because of their prior felony convictions.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the Fresno Police Department, MAGEC, the California Department of Corrections and Rehabilitation, the Fresno County District Attorney’s Office, the California Department of Justice, and the California Highway Patrol (CHP) Special Operations Unit (SOU). The CHP SOU is a collaborative investigative effort between the California Department of Justice and the CHP that provides statewide enforcement for combating violent career criminals, gangs, and organized crime groups, along with intrastate drug traffickers. The Fresno County Sheriff’s Office, the Clovis Police Department, and Fresno County Probation also assisted in the investigation. Assistant U.S. Attorneys Kimberly A. Sanchez and Christopher D. Baker prosecuted the case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Fresno Gamecock Breeder Sentenced to 2 Years in PrisonRead the Press Release
FRESNO, Calif. — Thomas Lee Crow, 49, of Fresno, was sentenced today for aiding and abetting an unlawful animal fighting venture involving a large cockfighting enterprise to two years in prison and a 10-year ban on possessing or owning any animals, U.S. Attorney McGregor W. Scott announced.
After hearing from an animal cruelty expert from the Humane Society, U.S. District Judge Lawrence J. O’Neill stated: “This is nothing short of a case of animal torture. His animals were treated without compassion.” Crow was fined $5,500 in addition to agreeing to the forfeiture of $22,800. Fresno County Sheriff’s Office will receive $6,278 of the forfeited funds to pay for the cost of disposal of the fighting roosters.
Crow’s sentence follows his guilty plea earlier this year. According to court documents, law enforcement officers searched Crow’s rural Fresno residential property last year after he was found at a large cockfighting event in Kerman. Cockfighting is illegal under federal law and in all 50 states. At the cockfight, Fresno County Sheriff’s deputies and detectives recovered 129 fighting roosters, including 28 dead and nine injured roosters. Crow was in possession of $22,800 in cash, along with a scoresheet that tracked the winnings for 144 gamecocks expected to fight that evening. They also found cockfighting equipment, such as knives used for cockfighting called slashers, sheaths, mounting boots, and scales. During the search of Crow’s residence, officers found an additional 200 fighting roosters and items associated with cockfighting, including 293 slashers; injectable stimulants, such as “Pure Aggression,” and scoresheets used for cockfighting derbies. The officers also found personalized leg bands in Crow’s name for sponsoring his birds in cockfighting events.
This case was the product of an investigation by the U.S. Department of Agriculture Office of Inspector General, Fresno County Sheriff’s Office, the Humane Society of the United States, and the Central California SPCA. Assistant U.S. Attorney Karen A. Escobar prosecuted the case.
Former Taft Inmate Found Guilty of Threatening to Assault a Federal JudgeRead the Press Release
FRESNO, Calif. — After a four-day trial, a federal jury found Craig Martin Shults, 48, of New York, guilty on Friday of retaliating against a federal official by threat, U.S. Attorney McGregor W. Scott announced.
According to evidence presented 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 following Shults’ prior conviction.
This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the U.S. Marshals Service. Assistant U.S. Attorneys Angela L. Scott and Henry Z. Carbajal III are prosecuting the case.
Shults is scheduled to be sentenced by U.S. District Judge Lawrence J. O'Neill on March 11, 2019. Shults faces a maximum statutory penalty of six 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.
U.S. Attorney and Butte County District Attorney Join Forces to Warn Against Wildfire-Related Disaster FraudRead the Press Release
OROVILLE, Calif. — U.S. Attorney McGregor W. Scott and Butte County District Attorney Michael Ramsey joined forces today to raise public awareness of the potential for fraud in the wake of the Camp Fire. The public is urged to be on guard against fraudulent activity relating to recovery and cleanup operations, fake charities claiming to provide relief for victims, individuals submitting false claims for disaster relief, and any other disaster fraud related activity.
U.S. Attorney Scott stated: “While most people respond to tragic events like the Camp Fire with compassion and generosity, others take advantage of such disasters to fraudulently enrich themselves. I strongly encourage the public to be on the lookout for any fraudulent activity occurring in the aftermath of our state’s most devastating wildfire. With the combined resources of federal and local law enforcement, we will aggressively pursue and prosecute fraud and abuse.”
Butte County District Attorney Michael Ramsey said: “There has been a tremendous outpouring of generosity towards our victims of the Camp Fire. We all know of a friend or family member that was personally affected by this disaster. We cannot allow those with less generous spirits dampen our desire to rebuild our community stronger and better. With the help of our federal partners, we will protect our community from these predators.”
The U.S. Department of Justice established the National Center for Disaster Fraud (NCDF) to investigate, prosecute, and deter fraud in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region. Its mission has expanded to include suspected fraud from any natural or manmade disaster. More than 20 federal, state, and local agencies participate in the NCDF, which allows the center to act as a centralized clearinghouse of information related to disaster relief fraud.
Members of the public are reminded to apply a critical eye and do their due diligence before trusting anyone purporting to be working on behalf of disaster victims, and to be especially cautious of anyone who contacts you seeking personal identifying information or financial information. Members of the public who suspect fraud involving disaster relief efforts, or who believe that they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by a live operator 24 hours a day, 7 days a week. You can also fax information to the Center at (225) 334-4707, or email it to [email protected].
Active Shooter Incident Training for Houses of WorshipRead the Press Release
SACRAMENTO, Calif. — In the aftermath of the deadly shooting that occurred at Tree of Life Synagogue in Pittsburgh, Pennsylvania on October 27, 2018, the U.S. Attorney’s Office for the Eastern District of California, the Federal Bureau of Investigation, the Jewish Federation of the Sacramento Region, and the Interfaith Council of Greater Sacramento have brought together faith leaders to discuss strategies to deal with active shooter incidents in houses of worship. Over 100 are expected to attend today’s presentation.
The Active Shooter training features a lecture by FBI Special Agent Glenn Norling that will teach attendees how to be better prepared, recognize reaction options when faced with a critical situation, and what to expect from a law enforcement response.
The last hour of the training will feature a panel consisting of U.S. Attorney McGregor W. Scott, FBI Special Agent in Charge Sean Ragan, Sacramento County District Attorney Anne Marie Schubert, Sacramento Police Chief Daniel Hahn, FBI Special Agent Glenn Norling, and Sacramento County Sheriff Lieutenant Orrlando Mayes
U.S. Attorney McGregor W. Scott stated, “Any time an individual decides to attack those gathered in the peaceful exercise of their religion, the congregants are the true first responders. Today’s training brings together community leaders to discuss these tragic events and to learn how to prepare their congregations for an incident that we hope and pray will never happen in our district. The U.S. Attorney’s Office is committed to working with the community and its law enforcement partners to prevent such attacks and to taking appropriate action if such a tragedy occurs here.”
“The FBI is committed to providing information to houses of worship to better prepare congregations for security planning to prevent violent incidents and for active shooter response if and when a violent incident occurs,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “Today’s seminar is only one facet of our outreach and commitment to the community. As part of our ongoing efforts, the FBI conducts hundreds of seminars, workshops, and training sessions annually for local law enforcement, minority and religious organizations, and community groups to promote cooperation, reduce civil rights abuses, and provide education about civil rights statutes.”
William Recht, Executive Director of the Jewish Federation of the Sacramento Region stated: “In light of the Pittsburgh massacre of 11 Jews in October, the Jewish Federation wanted to move into action and provide practical tools and training to our synagogue and organizational leaders to make sure we are taking every precaution to keep our community safe. We are grateful for the leadership and partnership of the U.S. Attorney's Office and law enforcement representatives.”
Edrine Ddungu, President of the Interfaith Council of Greater Sacramento stated: “Crimes motivated by a hatred of a religion are particularly chilling. Through programs like today’s Active Shooter Training, we can plan for the unthinkable and make sure our churches, synagogues, mosques and gurdwaras are free of violence. We are committed to working with law enforcement agencies to prevent or respond to attacks on our places of worship.”
United States Reaches $9 Million Settlement for Damages Caused by Forest FireRead the Press Release
SACRAMENTO, Calif. — Kernen Construction Co. and Bundy & Sons Logging have collectively agreed to pay $9 million to settle a lawsuit brought by the United States for damages resulting from a 2012 wildfire that burned more than 1,600 acres of national forest land, U.S. Attorney McGregor W. Scott announced today.
The fire, known as the “Flat Fire,” ignited on July 11, 2012, along the side of Highway 299 west of Weaverville, California. Logging equipment owned by Bundy & Sons was being hauled by Kernen Construction when it became unsecured and dragged along the highway, causing sparks that ignited dry vegetation. By the time the fire was suppressed, 1,688 acres had been burned, almost all of which was located within the Shasta-Trinity National Forest. The fire cost more than $4.6 million to suppress and damaged environmental resources, including habitat for sensitive species such as the Northern Spotted Owl.
The United States sought to recover damages from Kernen Construction and Bundy & Sons for their failure to properly secure the equipment that started the fire. Under the settlement announced today, Kernen Construction will pay $6 million to settle the dispute, and Bundy & Sons will pay $3 million. Defendants deny liability for the fire.
“This settlement goes a long way toward compensating the public for the expense of fighting the fire and the damage to public lands,” U.S. Attorney Scott said. “The U.S. Attorney’s Office will continue to aggressively pursue recovery against those whose carelessness damages our precious national resources.”
“This is a reminder that the public has a major role to play in fire safety,” said USDA Forest Service Pacific Southwest Regional Forester Randy Moore. “Everyone must remain vigilant, especially during our extended fire season. We thank the U.S. Attorney’s Office for their work in this case.”
Since 2012, the U.S. Attorney’s Office for the Eastern District of California has secured settlements in more than 25 different cases involving wildfire damage to federal lands, with total settlements valued at nearly $200 million.
Assistant U.S. Attorneys Colleen M. Kennedy and Benjamin J. Wolinsky handled the case.
Madera Woman Indicted for Credit Card Fraud, Bank Fraud, and Identity TheftRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment Thursday against Leah Guillen, 35, of Madera, charging her with use of unauthorized debit cards, bank fraud, and aggravated identity theft, U.S. Attorney McGregor W. Scott announced.
According to court documents, in early 2018, Leah Guillen obtained the name, social security account number, and date of birth of a specific victim. Guillen then used this information to impersonate the victim and fraudulently gain access to her bank accounts at Golden 1 Credit Union. Using an unauthorized debit card, Guillen drained the victim’s bank accounts over a three-month period between April 18, 2018, and June 30, 2018, causing a loss in excess of $210,449.
This case is the product of an investigation by the Federal Bureau of Investigation, the U.S. Postal Inspection Service, and the Madera Police Department. Assistant U.S. Attorney Laura D. Withers is prosecuting the case.
If convicted of bank fraud, Guillen faces a maximum statutory penalty of 30 years in prison and a $1 million fine, and she faces up to 10 years in prison and a $250,000 fine if convicted of the use of unauthorized debit cards. If convicted of the aggravated identity theft, Guillen faces two 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 Pleads Guilty to Supplying Unqualified Armed Guards to IRS’s Fresno FacilitiesRead the Press Release
FRESNO, Calif. — Scott T. Carlton, 49, of Visalia, pleaded guilty today to conspiracy to defraud the government and making a false statement, U.S. Attorney McGregor W. Scott announced.
According to court documents, the IRS’s Fresno campus is a national center for processing federal tax returns. Carlton was an employee of E&A Protective Services, which had the government contract to supply 24-hour-a-day armed security guards to the IRS’s Fresno campus. When it became apparent that many of the guards could not achieve the firearms shooting score required under the contract, Carlton conspired to falsify scores and supply unqualified guards to the IRS facilities. Over a three-year period, E&A was paid over $2 million on fraudulent invoices submitted to the IRS for security guards who were not qualified to work under that contract.
This case is the product of an investigation by the Treasury Inspector General for Tax Administration (TIGTA). Assistant U.S. Attorney Mark J. McKeon is prosecuting the case.
Two co-defendants have previously pleaded guilty. Matthew L. Cocola, 47, of Clovis, pleaded guilty on September 12, 2016, to making a false statement and was sentenced to a term of probation. Robert J. Bejarano, 49, of Kingsburg, pleaded guilty on September 17, 2018, to conspiracy and making a false statement and is scheduled to be sentenced May 6, 2019.
Carlton is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on March 25, 2019. Carlton faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for conspiracy, and five years in prison and a $250,000 fine for making a false statement. 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.