Eastern District of California
Press releases recorded for this federal judicial district.
Madera County Man Indicted for Excavating Native American Artifacts in Sierra National Forest Near the Town of North ForkRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment on October 18, 2018, against Vance Franklin Myers, 31, of Ahwannee, charging him with three counts of unauthorized excavation and removal of archeological resources, and one count of possession of stolen government property, U.S. Attorney McGregor W. Scott announced.
According to court documents, on July 26, 2015, while fighting a wild fire, fire fighters discovered an excavated site in the Willow Creek area of Box Canyon in the Sierra National Forest. Human remains and artifacts were located among large piles of sifted dirt, hand tools and a large screen sifting box.
According to the criminal complaint filed in this case, archeologists determined that the artifacts indicated long‑term use of the site between 500 A.D. and 1900. The site is believed to have been inhabited by members of the Mono Indian tribe. In August 2015, the archeological site was stabilized, rehabilitated, and the artifacts repatriated after consultation with the involved tribe.
The investigation revealed incidents of illegal excavation and looting in the same archeological site in September 2015 and again in August 2016, requiring a second site rehabilitation and reburial of the artifacts in October 2016. As the investigation progressed, Myers was identified as being involved in the excavation through photographs and statements.
According to the indictment, Myers was found to be in possession of archeological items such as stone tools, arrowheads, and beads, among other things.
“We are extremely proud of the Forest Service’s role in helping to reduce the theft and destruction of Native American remains and artifacts from national forest lands here in California,” said Randy Moore, Regional Forester for the USDA Forest Service Pacific Southwest Region. “Special Agent Michael Grate and the Sierra National Forest are to be commended for their excellent work in bringing this case to justice.”
Myers was arraigned on the indictment October 19, 2018, and entered pleas of not guilty. His next hearing is scheduled for January 28, 2019.
This case is the product of an investigation by the U.S. Forest Service. Assistant U.S. Attorney Laurel J. Montoya is prosecuting the case.
If convicted, Myers faces a maximum statutory penalty of two years in prison and a $100,000 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.
Fresno Man Sentenced to over 12 Years in Prison for Child Pornography OffenseRead the Press Release
FRESNO, Calif. — Chief U.S. District Judge Lawrence J. O’Neill sentenced Stefan Ramirez, 34, of Fresno, today to 12 years and seven months in prison for receipt and distribution of child pornography, U.S. Attorney McGregor W. Scott announced.
The prison sentence imposed will be followed by five years of supervised release, during which Ramirez will be required to register as a sex offender, and his access to minors, computers, and the internet will be restricted.
“Consumers and distributors of child pornography often try to rationalize their actions as passive behavior,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “It is most certainly not passive. Children are physically abused during the production of child pornography. Not only do consumers of child pornography seek gratification from vicariously participating in that abhorrent activity, but they also often make those images available to others through file sharing. The FBI and our partner agencies work to ensure consumers and distributors of child pornography understand their behavior is utterly contrary to the values of American society and will be met with rigorous investigation and lengthy prison sentences.”
According to a plea agreement and sentencing documents, Ramirez admitted that he used a file-sharing program to obtain and make available thousands of images of children being sexually abused. Some of the depictions were of infants and toddlers, and some included sadistic conduct and violence. Judge O’Neill awarded restitution to seven victims whose images Ramirez obtained for damages that they established that Ramirez caused.
This case was the result of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney David Gappa prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Former U.S. Navy Sailor Sentenced to Prison for Credit Card Fraud and Identity TheftRead the Press Release
FRESNO, Calif. — Jarrod M. Langford, 27, of Orlando, Florida, was sentenced today by U.S. District Judge Dale A. Drozd to three years and six months in prison for conspiracy to commit credit card fraud and aggravated identity theft, U.S. Attorney McGregor W. Scott announced.
According to court documents, Langford, while serving with the United States Navy in Lemoore, California, conspired with others to fraudulently acquire and use credit card account numbers to purchase and resell over the internet voucher codes redeemable for consumer items such as wristwatches, jewelry, computer software applications, and electronic devices. Langford used various methods to fraudulently acquire other peoples’ credit card information, including purchasing the information on the internet. In September 2012, Langford fraudulently possessed more than 2,500 records of credit card account numbers and the associated account holders’ personal identifying information, such as names, addresses, telephone numbers, and email addresses.
To hide his actual location and conceal his involvement in these fraudulent activities, Langford installed an application on his computers that established a virtual private network (VPN) that allowed him to conduct anonymous encrypted internet sessions and gave the appearance that he was located outside of California. In his plea agreement, Langford admitted to fraudulently purchasing approximately $340,000 of consumer products and unauthorized voucher codes redeemable for such items.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Christopher D. Baker prosecuted the case.
Former Sacramento Resident Sentenced to Prison for Failure to Register as Sex OffenderRead the Press Release
SACRAMENTO, Calif. — Zendell Despenza, 34, was sentenced by U.S. District Judge Kimberly J. Mueller to 10 months in prison, followed by five years of supervised release, for failing to register as a sex offender, U.S. Attorney McGregor W. Scott announced.
According to court documents, in June 2014, Despenza moved from Nevada to Sacramento and knowingly failed to register as a sex offender as was required by the Sex Offender Registration and Notification Act (SORNA) based on his conviction for attempted sexual assault in the state of Nevada. Despenza lived and worked in the Eastern District of California for approximately two years, and on two separate occasions during that two-year period submitted a sex offender registration form in Nevada that falsely indicated he was unemployed and residing at addresses in Las Vegas.
This case was the product of an investigation by the U.S. Marshals Service and the Sacramento County Sheriff’s Sex Assault Felony Enforcement (SAFE) Team. The SAFE Team is a multi-agency task force operating in Northern California that monitors sex offenders and conducts investigations regarding sex offender registration violations. Assistant U.S. Attorney Shelley D. Weger is prosecuting the case.
Bakersfield Man Pleads Guilty to Conspiring with Police Officers to Sell Methamphetamine and MarijuanaRead the Press Release
BAKERSFIELD, Calif. — Noel Carter, 46, of Bakersfield, pleaded guilty today to conspiring with Bakersfield police officers Damacio Diaz and Patrick Mara to distribute methamphetamine and marijuana that Diaz and Mara seized in the course of their duties as police officers, U.S. Attorney McGregor W. Scott announced.
According to court documents, from April 2012 to August 2015, Carter conspired with Diaz and Mara, who deliberately failed to submit the seized drugs into the BPD evidence room and instead provided the stolen narcotics to Carter so that Carter could sell those narcotics for profit.
In May 2016, Diaz pleaded guilty to possessing with the intent to distribute methamphetamine, as well as receiving bribes and making a false income tax return. In June 2016, Mara pleaded guilty to conspiring to distribute, and to possess with the intent to distribute, methamphetamine. Both were removed from active duty with the Bakersfield Police Department and are currently serving federal prison sentences.
As part of the plea agreement, five counts of the indictment will be dismissed, but Carter will pay restitution to the victim of the embezzlement charged in those counts, Pacific Workplaces. According to the factual basis in the plea agreement, starting in September 2016 and up until his termination in September 2017, Carter was a contract manager for the Pacific Workplaces, a virtual office and short-term office rental business, and was responsible for the overall operation of the office. Carter admitted to embezzling money from the company and depositing the money into his personal account. During this one-year period, Carter fraudulently negotiated and embezzled the funds from at least 87 checks, totaling $70,251.
According to the plea agreement, Carter admitted that he failed to report the proceeds of his illegal activity from 2012 through 2017. He agrees that he will file amended returns for those years, correctly reporting $480,000 of previously unreported income.
This case is the product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Internal Revenue Service Criminal Investigation, and the Bakersfield Police Department. Assistant U.S. Attorneys Brian K. Delaney and Angela Scott are prosecuting the case.
Carter is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on January 16, 2019. Carter faces a maximum statutory penalty of life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Tulare County Men Indicted in Firearms and Cockfighting CaseRead the Press Release
FRESNO, Calif. — A federal grand jury returned a 14-count indictment today against Pedro Gavino, 23, and his father, Pedro Gavino-Robles, 58, both of Orosi, charging them with four felony counts of animal cruelty violations relating to cockfighting, U.S. Attorney McGregor W. Scott announced.
In addition, Gavino was charged with dealing firearms without a license and nine counts of possessing and transferring firearms in violation of the National Firearm Act. According to court documents, from February 2017 to October 4, 2018, Gavino sold homemade AR-15 style assault rifles that did not have any serial numbers or manufacture markings. Gavino was not a licensed firearms dealer. During one of his firearms transactions, Gavino sold gamecocks and knives or gaffs for the purpose of cockfighting. Gavino and his father, Pedro Gavino-Robles, allegedly bought, trained, and sold hundreds of gamecocks from their ranch and attended cockfights in Tulare County. During the execution of a federal search warrant at their ranch, agents found at least 150 gamecocks and 278 knives used in cockfighting.
Cockfighting violates federal law and is outlawed in all 50 states. In cockfighting, roosters, bred for fighting and often provided with stimulants to make them more aggressive, are placed in a pit and goaded to fight. With knives attached to their legs, the birds kick one another to the death, all for the entertainment and profit of spectators, exhibitors, and sponsors.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the U.S. Department of Agriculture, with assistance from the Dinuba Police Department and the Multi-Agency Gang Enforcement Consortium (MAGEC), consisting of officers from the California Highway Patrol, the Fresno County Sheriff’s Office, and Fresno Police Department. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
Gavino is scheduled to be arraigned in the federal court in Fresno on October 19, 2018. An arrest warrant has issued for Gavino-Robles. If convicted, Gavino faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for each of the nine counts of possessing and transferring unregistered firearms. He also faces a maximum statutory penalty of five years in prison and a $250,000 fine for dealing firearms without a license. Both defendants face a maximum statutory penalty of five years in prison and a $250,000 fine for each of the four counts relating to selling gamecocks and knives used in cockfights. 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.
Leader of Target Department Store Credit Card Fraud Scheme Sentenced to 6.5 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — Frank Her, 39, of Sacramento, was sentenced today by U.S. District Judge Troy L. Nunley to six years and six months in prison for conspiracy to commit access device fraud, possession of device-making equipment, and possession of stolen mail, U.S. Attorney McGregor W. Scott announced.
According to court documents, Her was the leader of an organization numbering up to 50 people who created fraudulent credit cards, stole others’ mail, and compromised victims’ identities. Her specifically conspired with others to traffic in and use unauthorized Target REDcard account numbers to obtain things of value in excess of $1,000 in a one-year period. Her’s conduct involved at least 500 unauthorized and counterfeit cards, affected hundreds of victims, and led to an estimated actual loss of over $200,000 to those victims.
Her operated a credit card and access device “lab” out of his garage in Sacramento, which included possessing and operating voluminous device-making equipment used to create fake credit, debit, gift, and other banking cards, falsifying government identification documents, and washing checks. In particular, Her would create fraudulent Target REDcards in his garage, give them to co-conspirators, and direct them to use those REDcards to buy merchandise and other items at Target stores in the Sacramento area. Her learned an algorithm revealing how to create working Target REDcard account numbers and encoded those account numbers onto blank cards without authorization from Target or the account holders. To avoid detection, Her often sent co‑conspirators to Target alone or, if he went himself, wore disguising clothing and accessories. Her also personally stole mail and directed others to do so.
This case is the product of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorneys Matthew M. Yelovich and André M. Espinosa are prosecuting the case.
Five of Her’s six co-defendants have already been sentenced, with the final co-defendant, Amy Her, scheduled to be sentenced on October 25, 2018.
Former Porterville Tax Preparer Pleads Guilty to Preparing False Tax ReturnsRead the Press Release
FRESNO, Calif. —Leticia Bedolla, 39, of Porterville, pleaded guilty today to aiding and assisting in the preparation and presentation of a false and fraudulent tax return, United States Attorney McGregor W. Scott announced.
According to court documents, Bedolla operated a tax preparation service called Leticia Tax Service, located in Porterville, California. Bedolla prepared and electronically filed tax returns with the Internal Revenue Service (IRS) on behalf of her customers. In finalizing the customers' federal income tax returns for electronic filing, Bedolla would sometimes fabricate amounts of deductions and deductible expenses without informing her customers she was doing so. In other instances, Bedolla would ask a general question about a customer's personal expenses and then mischaracterize the information on the customer's federal income tax return to improperly claim a deduction or tax credit. As a result of Bedolla's preparation and submission to the IRS of false and fraudulent federal income tax returns, Bedolla caused her customers to claim tax deductions and credits to which the customers were not entitled. This resulted in the IRS paying out excessive refunds to Bedolla's customers or not collecting additional tax that would have been due and owing from Bedolla's customers. Bedolla's conduct resulted in a tax loss to the IRS of approximately $105,747.
This case was the product of an investigation by the Internal Revenue Service, Criminal Investigations Division. Assistant United States Attorney Henry Z. Carbajal III is prosecuting the case.
Bedolla is scheduled to be sentenced by Judge Dale A. Drozd on February 4, 2019. Bedolla faces a maximum statutory penalty of three 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.
Valley Springs Man Sentenced to 25 YearsRead the Press Release
FRESNO, Calif. — Nicholas Carroll Watkins, 30, of Valley Springs, was sentenced today by Chief U.S. District Judge Lawrence J. O’Neill to 25 years in prison, followed by 10 years of supervised release for receiving material involving the sexual exploitation of minors, U.S. Attorney McGregor W. Scott announced. Watkins will also be required to register as a sex offender.
According to a criminal complaint and sentencing documents, Watkins used Kik Messenger and SayHi, which are messaging applications based outside the United States, to engage in sexually explicit communications with other adults as well as numerous minor females. Watkins discussed his sexual interest in children and often solicited and received sexually explicit images directly from minors.
This case was the result of an investigation by the Miami, Florida and Stockton, California offices of the Federal Bureau of Investigation. Assistant U.S. Attorney David Gappa prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Two Fresno Men Plead Guilty to Firearms and Money Laundering OffensesRead the Press Release
FRESNO, Calif. — On Monday, Vonshay Robinson, 31, pleaded guilty to conspiracy to traffic firearms, U.S. Attorney McGregor W. Scott announced.
According to court documents, between November 2015 and October 2016, Robinson illegally purchased and sold firearms to others, including a .22 caliber gun he sold to an undercover agent on March 25, 2016, for $1,000.
Another defendant in a related case, Jesus Roberto Velazquez Juarez, 25, also pleaded guilty on Monday to money laundering. According to court documents, Velazquez Juarez sold firearms and methamphetamine to others, including a 9mm automatic blank pistol modified to fire live ammunition and approximately 3 grams of methamphetamine to the same customer in October 2016.
Robinson and Velazquez Juarez were arrested on November 3, 2016, along with 18 other defendants following a year-long multi-agency investigation that targeted criminal street gangs in Fresno. Other defendants also have pleaded guilty to various firearms and drug offenses, including:
Devone Johnson, 32, and Anthony Thomas, 26, pleaded guilty on August 13, 2018, to unlawfully possessing a firearms. They are scheduled to be sentenced on October 29, 2018.
Garry Sampson, 40, pleaded guilty on August 1, 2018, to unlawfully possessing a firearm. He is scheduled to be sentenced on October 22, 2018.
Raymond Jones, 61, pleaded guilty on August 6, 2018, to conspiracy to distribute and possess with intent to distribute cocaine base. He is scheduled to be sentenced on November 5, 2018.
Danny Valenzuela, 51, pleaded guilty on July 30, 2018, to conspiracy to distribute and possess with intent to distribute cocaine base. He is scheduled to be sentenced on November 5, 2018.
Stephen Hill, 28, pleaded guilty on September 25, 2017, to conspiracy to distribute and possess with intent to distribute cocaine. On December 18, 2017, Hill was sentenced to two years and eight months in prison.
Rashad Halford, 31, pleaded guilty on September 25, 2017, to conspiracy to distribute and possess with intent to distribute cocaine. On March 12, 2018, Halford was sentenced to two years and two months in prison.
These cases are the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the California Department of Justice’s Bureau of Investigation Special Operations Unit, the Multi-Agency Gang Enforcement Consortium (MAGEC), the Fresno Police Department, the California Department of Corrections and Rehabilitation, the Fresno County District Attorney’s Office, and the California Highway Patrol Special Operations Unit (SOU). The Fresno County Sheriff’s Office, the Clovis Police Department, Fresno County Probation, and the California Highway Patrol assisted in the investigation. Assistant U.S. Attorneys Kimberly A. Sanchez and Christopher D. Baker are prosecuting the cases.
Robinson and Velazquez Juarez are scheduled to be sentenced by U.S. District Judge Dale A. Drozd on January 7, 2019, and January 22, 2019, respectively. Robinson faces a maximum statutory penalty of 5 years in prison and a $250,000 fine. Velazquez Juarez faces a maximum statutory penalty of 20 years in prison and a $500,000 fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The Organized Crime Drug Enforcement Task Force (OCDETF) was involved in the investigation of many of these cases. 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.
These cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
Recent Prosecutions of Firearms Offenses in Fresno CourtRead the Press Release
FRESNO, Calif. — As part the U.S. Attorney’s Office for the Eastern District of California’s strategy to reduce violent crime, U.S. Attorney McGregor W. Scott announced the following cases involving illegal firearms offenses.
Richard Reyes, a 37-year-old resident of Fresno, was sentenced today by United States Chief District Judge Lawrence J. O’Neill to nine years and two months in prison for being a felon in possession of a firearm. According to court documents, on March 21, 2017, Reyes crashed his vehicle into another car and fled the scene of the accident. Police found him a few houses away. In Reyes’s car, police found a short-barreled rifle and a sawed-off shotgun, along with ammunition. This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Fresno Police Department. Assistant United States Attorney Ross Pearson prosecuted the case.
Delwyn Gladney, a 49-year-old resident of Fresno, was sentenced today by United States Chief District Judge Lawrence J. O’Neill to seven years in prison for being a felon in possession of a firearm. According to court documents, Gladney was riding his bicycle without a front light on February 26, 2017. Police officers attempted to stop him, but he rode away. They followed him to a nearby parking lot, where they saw him place a gun behind a parked car. This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Fresno Police Department. Assistant United States Attorney Ross Pearson prosecuted the case.
Miguel Saldate, a 42-year-old resident of Modesto, pleaded guilty today to being a felon in possession of a firearm. According to court documents, police officers came to search Saldate’s house and observed him drop a firearm near a shed. Saldate is scheduled to be sentenced by United States Chief District Judge Lawrence J. O’Neill on January 14, 2019. This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Stanislaus County Sheriff’s Department. Assistant United States Attorney Ross Pearson is prosecuting the case.
Daniel Sandoval-Arce, a 42-year-old resident of Turlock, pleaded guilty today to being an illegal alien in possession of a firearm. According to court documents, police officers searched a house in Turlock, where they found Sandoval-Arce in possession of firearms and a military-grade 60-millimeter mortar round. Sandoval-Arce is scheduled to be sentenced by United States District Judge Dale A. Drozd on January 7, 2019. This case is the product of an investigation by Homeland Security Investigations and the Turlock Police Department. Assistant United States Attorney Ross Pearson is prosecuting the case.
Salvador Tarango, 35, of Bakersfield, pleaded guilty today to possession of an unregistered firearm. According to court documents, on March 7, 2018, Bakersfield Police Officers responded to a call reporting shots fired in the early morning hours. Officers found shell casings in the defendant’s driveway. During a search, officers found an unregistered weapon made from a rifle with a barrel of less than 16 inches in length. A partially-loaded, high capacity magazine was found in close proximity to the weapon. Tarango is scheduled to be sentenced by U.S. District Judge Lawrence J. O’Neill on January 22, 2019. This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Bakersfield Police Department. Assistant U.S. Attorney Melanie L. Alsworth is prosecuting the case.
Orasio Fierro, 27, of Winton, was sentenced last week by United States Chief District Judge Lawrence J. O’Neill to four years and eleven months in prison for being a felon in possession of a firearm. According to court documents, on multiple occasions between January 2017 and May 2017, Fierro sold firearms to an alleged gang member, including two AR-15-type rifles. Fierro pleaded guilty to the offense in June 2018. This case was the product of an investigation by the Federal Bureau of Investigations, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the California Department of Justice Special Operations Unit. Assistant United States Attorneys Ross Pearson and Kimberly A. Sanchez prosecuted the case.
Bryan Mancia, 31, of Fresno, was sentenced on October 10, 2018, by U.S. District Judge Dale A. Drozd to 2 years in prison for being a felon in possession of a firearm. In June 2018, Mancia pleaded guilty to the charge. According to court documents, Mancia had a firearm in his pocket during an encounter with police. This case was the product of an investigation by the Fresno Sheriff’s Office and Homeland Security Investigations. Assistant U.S. Attorney Kimberly A. Sanchez prosecuted the case.
The Organized Crime Drug Enforcement Task Force (OCDETF) was involved in the investigation of many of these cases. 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.
These cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
Man Sentenced to over 12 Years for Sex Trafficking A MinorRead the Press Release
SACRAMENTO, Calif. — Tion Makeise Foster, 23, of Point Arena, was sentenced today by United States District Judge Kimberly J. Mueller to twelve and one-half years in prison followed by ten years of supervised release for sex trafficking a minor, United States Attorney McGregor W. Scott announced.
According to court documents, in August 2016, Foster and his co-defendant, Monica Morales, recruited a 16-year-old girl to engage in commercial sex acts for their financial benefit. The defendants contacted the minor using a social media website on the internet called MocoSpace. After making initial contact, Foster and Morales drove to Yuba County, where they picked up the victim and then transported her around Northern California, where they had her engage in sex acts for their financial benefit for approximately one week. During that time, Foster and Morales posted photos of the victim in various online prostitution advertisements.
After Foster and Morales returned the victim to Yuba County, they contacted her again using the internet in December 2016, and discussed plans to traffic her again. While en route to pick up the victim, Foster was arrested in Citrus Heights following a local undercover operation. In that separate state case, Foster used the internet to recruit a person he believed to be a seventeen-year old girl for sex trafficking activity, but who was in fact an undercover officer.
Codefendant Monica Morales was previously sentenced to over 10 years in prison in this case.
This case was the product of an investigation by the Federal Bureau of Investigation with assistance from the Yuba County Sheriff’s Office. Assistant United States Attorney Michele Beckwith prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Man Sentenced to 10 Years for Conspiring to Commit Murder in Aid of RacketeeringRead the Press Release
FRESNO, Calif. — Deandre Stanfield, 38, of Fresno, was sentenced last week by Chief U.S. District Judge Lawrence J. O’Neill to 10 years in prison for conspiracy to commit murder in aid of racketeering, U.S. Attorney McGregor W. Scott announced.
According to court documents, Stanfield was an influential member of the Dog Pound Gang (“DPG”). In that role, he and other influential members guided and directed the actions of younger, less-experienced gang members. They also set rules, including directives not to talk to the police, to “back up” fellow gang members when they needed help with rival gang members or otherwise, and to assist other DPG members with sex trafficking and credit card fraud. In addition to these crimes, the DPG enterprise engaged in drug trafficking, conspiracy to commit murder, and other offenses affecting interstate commerce.
In pleading guilty to the conspiracy, Stanfield admitted that he agreed with other DPG members to kill rival gang members. While incarcerated in Kern North State Prison for assault with a firearm, Stanfield spoke with several DPG members about getting guns and planning retaliation for the shooting of fellow DPG gang members. The conversations happened in March 2016 after codefendant Kenneth Wharry was shot at by individuals DPG believed to be rival gang members, and during a time when DPG was pursuing retaliation.
This case is 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 Internal Revenue Service Criminal Investigations; the Multi-Agency Gang Enforcement Consortium (MAGEC); the Fresno County District Attorney’s Office; and California Department of Corrections and Rehabilitation. Assistant U.S. Attorneys Kimberly A. Sanchez, Jeffrey A. Spivak, and Christopher D. Baker prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
Kern County Resident Admits to Aggravated Identity TheftRead the Press Release
FRESNO, Calif. —Hazel Turner, 44, of Tehachapi, pleaded guilty today to aggravated identity theft, United States Attorney McGregor W. Scott announced.
According to court documents, between February 2014 and March 2014, Turner used the means of identification of another person to falsify and electronically submit federal tax returns for the purpose of fraudulently obtaining money belonging to the United States.
This case was the product of an investigation by the Internal Revenue Service Criminal Investigations and the Kern County Sheriff’s Office. Assistant United States Attorney Melanie L. Alsworth is prosecuting the case.
Turner is scheduled to be sentenced by Judge Lawrence J. O'Neill on January 7, 2019. Turner faces a statutory penalty of 2 years in prison, a $250,000 fine, and up to 3 years 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.
Defense Contractor Agrees to Pay $1 Million to Settle Allegations Under the False Claims ActRead the Press Release
SACRAMENTO, Calif. — United States Attorney McGregor Scott announced today that Alpha Research & Technology, Inc. (“ART”), an El Dorado Hills company that provides command and control systems to the U.S. Air Force, has agreed to pay the United States $1 million to resolve allegations that it violated the False Claims Act by knowingly submitting inflated contract pricing to the government.
Between 2006 and 2011, ART submitted subcontract proposals to prime contractors including The Raytheon Company and The Boeing Company that were to be included in firm-fixed-price proposals made by those prime contractors to the Department of Defense. In submitting its proposals, ART knowingly included millions of dollars in personal expenses of its owners Donne and DeAnn Smith, which ART knew were unallowable in government contracting. Those expenses included payments for the design and construction of the Smiths’ luxury personal residence in Amador County, luxury cars, a personal caretaker, and a weekend at the Hotel del Coronado in San Diego.
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 basing its government subcontract proposals on unallowable costs, ART caused the United States to pay improperly inflated prices.
“It is a priority of this office to safeguard public coffers against fraud and abuse that affect the integrity of federal contracting programs,” said U.S. Attorney Scott. “We will continue to work closely with our federal law enforcement partners to address the unnecessary expenditure of taxpayer funds, and results like this one help accomplish that objective.”
Chris Hendrickson, Special Agent in Charge of the Department of Defense, Defense Criminal Investigative Service (DCIS), Western Field Office, said, “Padding government contracts with personal expenses is an act of greed that diverts taxpayer dollars away from the critical support of our soldiers, sailors, airmen, and Marines. DCIS is committed to working with partner agencies to root out fraud in Department of Defense contracting.”
“Cost mischarging schemes such as this cheat the Air Force and ultimately the American taxpayer,” said Air Force Office of Special Investigations Special Agent in Charge Cornelius King. “I appreciate the dedicated efforts of the Defense Criminal Investigative Service, The Defense Contract Audit Agency, and the U.S. Attorney's office who helped hold this Air Force contractor accountable.”
The settlement is the product of a joint investigation by DCIS, the Defense Contract Audit Agency, and the Air Force Office of Special Investigations. 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.
Carson Man Sentenced to over 13 Years for Distributing MethamphetamineRead the Press Release
FRESNO, Calif. — Danny Luna, 32, of Carson was sentenced on October 10, 2018 by U.S. District Judge Dale A. Drozd to over 13 years in prison for distributing methamphetamine, U.S. Attorney McGregor W. Scott announced. In July 2018, Luna pleaded guilty to the charge.
According to court documents, Luna delivered methamphetamine to an undercover officer twice between October and December 2016: two pounds on the first occasion and 20 pounds on the second occasion.
This case was the product of an investigation by Fresno Police Department, Major Narcotics Unit, and the Drug Enforcement Administration. Assistant U.S. Attorney Kimberly A. Sanchez prosecuted the case.
Vallejo Man Sentenced to Six Years for Unlawful Possession of A FirearmRead the Press Release
SACRAMENTO, Calif. — Danny Lee Rhines, 34, of Vallejo, CA was sentenced on Thursday by United States District Judge Morrison C. England, Jr. to six years in prison for being a prohibited person in possession of a firearm, United States Attorney McGregor W. Scott announced.
According to court documents, in March 2018, officers of the Fairfield Police Department observed Rhines driving a Nissan Altima in Vallejo and tried to pull him over. Rhines, who was the sole occupant of the car, ran a red light and attempted to flee police. Officers were able to apprehend him after Rhines ran the car into a fence and it came to a stop. While officers were securing the car after Rhines' arrest, they found a Ruger .22-caliber pistol in the driver’s side door pocket. Rhines cannot lawfully possess a firearm because he has a prior felony conviction. Rhines pleaded guilty to the charge on July 5, 2018.
This case was the product of an investigation by the FBI Solano County Violent Crimes Task Force and the Fairfield Police Department. Assistant United States Attorneys Owen Roth and James Conolly prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state and local law enforcement to combat gun and gang crime. At the core of PSN is increased federal prosecution to incapacitate chronic violent offenders as well as to communicate a credible deterrent threat to potential gun offenders.
BMO Harris Bank Pays $10 Million to Resolve Fraud AllegationsRead the Press Release
SACRAMENTO, Calif. — BMO Harris Bank, N.A. (“BMO Harris”) will pay $10 million to resolve allegations that M&I Marshall & Ilsley Bank (“M&I Bank”), which BMO Harris acquired in 2011, violated the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) by engaging in fraud related to the multi-billion-dollar Ponzi scheme perpetrated by Minnesota businessman Thomas J. Petters, United States Attorney McGregor W. Scott announced.
Petters was convicted by a federal jury in December 2009 of orchestrating a massive Ponzi scheme. Aided and abetted by multiple co-conspirators, he obtained billions of dollars and property by inducing investors to lend money to his company, Petters Company, Inc. (“PCI”), purportedly to purchase electronics to be sold to big-box retailers, such as Costco and Sam’s Club. Instead, Petters and his co-conspirators diverted the funds to other purposes, such as making lulling payments to investors, paying off those who assisted in the fraud scheme, and financing Petters’s extravagant lifestyle. For his conduct, Petters was sentenced to 50 years in prison.
The United States alleges that M&I Bank participated in a related fraudulent scheme by entering, at Petters’s request, “deposit account control agreements” that promised certain of Petters’s investors that M&I Bank would monitor PCI’s depository account held at M&I Bank on their behalf and protect the proceeds of their investments with Petters. The bank representatives who signed the agreements, however, knew that the agreements in fact provided the investors with no protection and would not be performed. The United States alleges that M&I Bank’s fraudulent conduct facilitated the continuation of Petters’s scheme and resulted in millions of dollars in losses to the Petters investors who signed the fraudulent agreements.
“People who commit white collar crimes often use the banking system to facilitate those crimes,” U.S. Attorney Scott said. “This significant civil penalty underscores the Department of Justice’s continued commitment to use all of the tools at our disposal to hold accountable financial institutions that participate in wrongful activity.”
This investigation was initiated by a whistleblower declaration submitted to the Eastern District of California and the whistleblower will receive a share of this settlement, as provided for in the Financial Institutions Anti-Fraud Enforcement Act. Assistant U.S. Attorneys Colleen M. Kennedy and Kelli L. Taylor represented the United States in this matter.
The claims settled by this agreement are allegations only, and there has been no determination of liability. The settled claims relate exclusively to conduct by M&I Bank prior to its acquisition by BMO Harris in 2011.
Two Sacramento Men Indicted for Distributing Cocaine and Marijuana on Dark Web MarketplacesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an eleven-count indictment today against Eddy Steven Sandoval Lopez, 22, and Deshari Saivohn Frederick, 21, both of Sacramento, charging them with distributing controlled substances, conspiracy, and use of a firearm in furtherance of drug trafficking, United States Attorney McGregor W. Scott announced.
According to court documents, Sandoval Lopez and Frederick sold cocaine and marijuana to customers throughout the country under the vendor names "CokeWave," "SafeDealsDirect," and "HerbanFarmer" on Dream Market, a dark-web marketplace. Agents conducted numerous undercover purchases of cocaine and marijuana from these vendor accounts. Physical surveillance and postal records revealed that Sandoval Lopez and Frederick were responsible for packaging and mailing these parcels. Agents searched the defendants' residences on October 2, 2018, and found bulk marijuana, packaged cocaine, and a stolen Ruger handgun.
This case was the product of an investigation by the Northern California Illicit Digital Economy ("NCIDE") Task Force, consisting of agents from Homeland Security Investigations, the Federal Bureau of Investigation, the United States Postal Inspection Service, and the Drug Enforcement Administration. The NCIDE Task Force is a joint, federal task force focused on targeting all forms of dark-web and cryptocurrency criminal activity in the Eastern District of California. The Sacramento County Sheriff’s Department also assisted in this investigation. Assistant United States Attorneys Grant B. Rabenn and Paul A. Hemesath are prosecuting the case.
This case was brought in conjunction with the Joint Criminal Opioid Darknet Enforcement (J-CODE) Team. Established within the FBI’s Hi-Tech Organized Crime Unit, J-CODE is a U.S. Government initiative announced in January 2018, aimed at targeting drug trafficking, especially fentanyl and other opioids, on the Darknet. Building on the work initiated with the takedowns of Silk Road and AlphaBay, the FBI’s J-CODE team brings together agents, analysts, and professional staff with expertise in drugs, gangs, health care fraud, and more, and our federal, state, and local law enforcement partners from across the U.S. Government, to focus on disrupting the sale of drugs via the Darknet and dismantling criminal enterprises that facilitate this trafficking.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation's drug supply.
If convicted, the defendants face a maximum statutory penalty of 20 years in prison and a $1,000,000 fine for drug distribution. Frederick also faces a five-year consecutive sentence and a $250,000 fine for possessing a firearm in furtherance of drug trafficking. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Stockton Man Indicted for Possessing Methamphetamine for Distribution and Carrying a Firearm During a Drug-Trafficking CrimeRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Atanasio Jose Marcos Avila, 30, of Stockton, charging him with possessing methamphetamine for distribution, possessing a firearm as a felon, and possessing a firearm in furtherance of a drug-trafficking crime, United States Attorney McGregor W. Scott announced.
According to court documents, on September 22, 2018, Stockton Police responded to a call about a disturbance. When they arrived on the scene, they encountered Avila and found that his backpack contained two firearms, a box with 42 rounds of ammunition, methamphetamine, marijuana, and a digital scale. Avila cannot lawfully possess firearms or ammunition because he has a prior felony conviction.
This case is the product of an investigation by the Stockton Police Department, with special assistance from the FBI’s Stockton Safe Streets Task Force.
If convicted of possessing methamphetamine for distribution, Avila faces a maximum statutory penalty of 20 years in prison and a $1,000,000 fine. If convicted of possessing a firearm as a felon, Avila faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. If convicted of possessing a firearm in furtherance of a drug-trafficking crime, Avila faces a mandatory minimum penalty of 5 years in prison, and a maximum statutory penalty of life imprisonment and a $250,000 fine. Any sentence would be determined at the discretion of the district court after considering any applicable statutory factors and the Federal Sentencing Guidelines. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
Fresno Man Admits to His Role in Coordinating a Drug DealRead the Press Release
FRESNO, Calif. — Rafael Delatorre, 33, of Fresno, pleaded guilty on Wednesday to using a cellphone to facilitate a drug trafficking crime, U.S. Attorney McGregor W. Scott announced.
According to court documents, on April 15, 2016, Delatorre used a cellphone to communicate with a local drug dealer and an out-of-town drug courier to coordinate the transfer of more than 30 pounds of methamphetamine.
This case is the product of an investigation by the Drug Enforcement Administration, the Fresno Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Melanie L. Alsworth and Kimberly Sanchez are prosecuting the case.
Delatorre is scheduled to be sentenced by Judge Dale A. Drozd on January 22, 2019. Delatorre faces a maximum statutory penalty of 4 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.
Folsom Man Sentenced to over Three and A Half Years for Investment Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Jason E. Mininger, 50, of Folsom, CA, was sentenced today by United States District Judge Troy L. Nunley to 46 months in prison and ordered to pay $917,714 in restitution to the victims of the fraud, United States Attorney McGregor W. Scott announced.
According to court documents, Mininger was an investment broker and advisor in Folsom. Beginning in January 2014, and continuing until May 2017, Mininger misrepresented to his clients that he needed to use their previously invested funds as part of a new series of investments to be made or managed by Mininger. In truth, Mininger, after depositing the clients’ funds into his own bank account, used the investors’ money on his personal expenses. Mininger caused at least $917,714 in losses to his clients. Mininger also created false investment account statements and used a sham corporation to conceal his embezzlement of his clients’ funds.
This case was the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Services-Criminal Investigations. Assistant United States Attorney Todd A. Pickles prosecuted the case.
St. Paul, Minnesota Man Sentenced to 10 Years in Prison for Using the Internet to Induce A Fresno Minor to Engage in Sexual ActivityRead the Press Release
FRESNO, Calif. — John Baker Rose, 77, of St. Paul, Minnesota, was sentenced today by United States District Judge Dale A. Drozd to 10 years in prison, followed by a ten-year term of supervised release, for using the internet to induce a minor in Fresno, Calfiornia to engage in illegal sexual activity, United States Attorney McGregor W. Scott announced. The court also ordered that Rose pay the minor victim $25,000 in restitution.
According to court documents, from approximately September 2015 through November 2015, Rose met a 14-year-old minor female from Fresno online and groomed her through buying her a computer, jewelry, and clothing. Rose traveled to Fresno on two occasions to engage in sexual intercourse with her.
This case was the product of an extensive investigation by the Fresno Office of Homeland Security Investigations (HSI), St. Paul, Minnesota and Fresno Police Departments. Assistant United States Attorney Brian W. Enos prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Federal Indictment Charging Six Men with Violent Armed Robbery Unsealed TodayRead the Press Release
FRESNO, Calif. — A two-count indictment returned by a federal grand jury was unsealed today, charging six defendants with one count of conspiracy to commit robbery affecting interstate commerce and one count of robbery affecting interstate commerce. The indictment charges the following defendants with both conspiracy and robbery in connection with the robbery of a Calaveras County marijuana distributor: Talia Khio, 42, of Chicago, Illinois; Dontia Arrington, 38, of Skokie, Illinois; Roddy Aundre Johnson, Jr., 30, of San Diego, California; Mark Noble, 32, of Willamette, Illinois; Jimmy Khio, 41, of Morton Grove, Illinois; and Carlos Merkhai, 42, of Phoenix, Arizona.
U.S. Attorney McGregor W. Scott stated, “This indictment demonstrates our offfice’s commitment to working with and supporting our local law enforcement partners. We are proud to have answered the call when Calaveras County District Attorney Barbara Yook reached out to us for assistance in prosecuting this case involving individuals who crossed state lines to commit violent crimes in our district. It is through partnerships like these that we can work together to keep our communities safe.”
"This case serves as an excellent example of the FBI's commitment to working with federal, state, and local partners to aggressively investigate and disrupt violent criminals that threaten the safety and security of our communities," said Special Agent in Charge Sean Ragan of the Federal Bureau of Investigation Sacramento Field Office. "Through our Safe Streets Task Force, the FBI relies on these partnerships to target those who target our neighborhoods with violent crimes such as those charged today. I would like to thank all of our partners for their collaboration and tireless work on this investigation."
According to court documents, on June 24, 2018, the six defendants conducted an armed robbery of a Calaveras County marijuana distributor. The defendants allegedly bound and blindfolded several victims and tortured one victim with a stun gun. One victim was beaten with a baseball bat, which caused multiple injuries. The defendants allegedly took over 100 pounds of processed marijuana and $30,000 in cash. After a high speed chase, officers arrested Talia Khio, Dontia Arrington, Roddy Aundre Johnson, Jr., and Mark Noble. Jimmy Khio and Carlos Merkhai were apprehended months later.
This case was the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Calaveras County Sheriff’s Office, California Highway Patrol, and the Skokie Police Department, with special assistance from the Calaveras County District Attorney’s Office. Assistant United States Attorneys Jeffrey A. Spivak and Ross Pearson are prosecuting the case.
If convicted, the defendants each face a maximum statutory penalty of 20 years in prison and a $250,000 fine on each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
Tulare County Man Pleads Guilty to Gun Charges in Series of Armed RobberiesRead the Press Release
FRESNO, Calif. — Javier Beltran, 34, of Strathmore, pleaded guilty today to two counts of use of a firearm during a crime of violence, U.S. Attorney McGregor W. Scott announced.
According to court documents, Beltran was a member of a conspiracy to commit a series of armed robberies of gas stations, convenience stores, and liquor stores from May 19, 2016, until July 26, 2017. The indictment alleges that Beltran and his conspirators committed at least seven armed robberies in Tulare and Kern Counties between May 2016 and January 2017. The next month, Beltran and his associates travelled to Nebraska, where they committed two more robberies. They then returned to California, where they committed three more armed robberies.
In his guilty plea, Beltran admitted that he used a firearm to rob two liquor stores. First, Beltran admitted that on January 18, 2017, he and other conspirators robbed Joe’s Westside in Porterville, California. Prior to the robbery, Beltran 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 in Porterville, California, where they entered the store wearing masks and carrying guns.
Inside the store, Beltran and other co-conspirators ordered the store clerk to the ground at gunpoint, forced the clerk to open the cash register, and stole over $8,000. Beltran and his associates fled in the stolen Chevrolet Trailblazer, which they left approximately half a mile away with the engine still running.
Second, Beltran admitted that on July 22, 2017, he and other co-conspirators robbed Woodville Liquor in Woodville, California. Prior to the robbery, Beltran and his associates stole a 2006 Chevrolet Silverado by cracking the steering shaft and starting the vehicle without a key. They drove the vehicle to Woodville Liquor in Woodville, California. 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, which they left a short distance from Woodville Liquor.
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 United States Attorneys Ross Pearson and Kathleen Servatius are prosecuting the case.
Beltran is scheduled to be sentenced by Judge Lawrence J. O’Neill on Monday, January 14, 2019, at 8:30 a.m. Beltran faces a mandatory minimum statutory penalty of 32 years in prison for the two firearms offenses to which he pleaded guilty, a maximum statutory penalty of life 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.
An additional defendant, Ulises Medina, is also charged in this case. His next court appearance is set for January 7, 2019. The charges are only allegations; Medina is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
Indictment Unsealed Charging Sacramento Man with International Money Laundering and Indoor Marijuana Grows in Amador and Sacramento CountiesRead the Press Release
SACRAMENTO, Calif. — A 10-count indictment was unsealed today charging Daniel Zhu, 38, of Sacramento, with conspiracy to commit international money laundering, substantive counts of international money laundering, and conspiracy to manufacture and manufacturing of marijuana, U.S. Attorney McGregor W. Scott announced.
This is the second 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, Zhu conspired with others to grow marijuana, and Zhu grew marijuana plants at three locations in Sacramento and Amador Counties. Moreover, Zhu is charged in two separate money laundering conspiracies that entailed international wires from China being used to purchase real estate in California that was subsequently turned into a marijuana cultivation site. Zhu is also charged with substantive money laundering counts for several wires from China to the United States to convert residences in Elk Grove and Fiddletown into indoor marijuana grow sites.
This case is the product of an investigation by Federal Bureau of Investigation, Drug Enforcement Administration, Homeland Security Investigations (HSI), and IRS Criminal Investigation. 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, Zhu faces 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 defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Veterinarian Charged with Filing False Tax ReturnsRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an eight-count indictment today against Jack Ray Snyder, 61, of Truckee, charging him with tax evasion and filing false tax returns, U.S. Attorney McGregor W. Scott announced.
According to court documents, between 2012 and 2014, Jack Ray Snyder filed false tax returns that failed to report significant income, deducted non-deductible personal expenses, and overreported his property taxes.
This case is the product of an investigation by the Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Roger Yang is prosecuting the case.
If convicted, Snyder faces a maximum statutory penalty of five years in prison and a $100,000 fine for each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.Two Charged with Methamphetamine Distribution Conspiracy, Firearms Violations, and Assault on a Federal OfficerRead the Press Release
FRESNO, Calif. — A federal grand jury returned a six-count indictment today against Ruben Gonzalo Duran-Sanchez, 42, and Daniel Delgado, 27, both Mexican nationals, charging them with conspiracy to distribute and possess with intent to distribute methamphetamine and possession of firearms in furtherance of a drug trafficking offense, U.S. Attorney McGregor W. Scott announced. Delgado is also charged with assault on a federal officer.
According to court documents, on September 26, 2018, the defendants were arrested when they went to Shafter to sell 10 pounds of crystal methamphetamine to a confidential source. Sanchez was arrested without incident and was found to possess a stolen and loaded Sig Sauer .380 pistol. Delgado, resisted arrest, and in his attempt to flee, rammed into a California Highway Patrol vehicle and a DEA undercover vehicle injuring an officer. A high-speed car chase ensued, resulting in Delgado driving his vehicle off the road and into a vineyard where he then attempted to flee on foot. A law enforcement canine was utilized to locate and assist in the apprehension of Delgado. Delgado was found to possess a loaded and stolen 9 mm Berretta with obliterated serial number. Approximately 13 pounds of methamphetamine were recovered from the defendants.
This case is the product of an investigation by the DEA, the Bakersfield Police Department and the California Highway Patrol. Assistant U.S. Attorney Brian K. Delaney is prosecuting the case.
If convicted, both defendants face a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.Indictment Unsealed Following Arrests for International Lottery Fraud Scheme That Preyed on Elderly in California and ElsewhereRead the Press Release
SACRAMENTO, Calif. — An indictment was unsealed following the arrests today of two defendants in Medellin, Colombia, for a lottery fraud scheme, U.S. Attorney McGregor W. Scott announced.
On August 23, 2018, a federal grand jury returned a 41-count indictment against Alexander Franco Gutierrez, 40, of Medellin, Colombia; Eduardo Cartagena, 43, of Medellin, Colombia; and Oldaim Lopes, 39, of Calgary, Canada, charging them with conspiracy to commit mail and wire fraud, mail and wire fraud, and conspiracy to commit money laundering related to a fake sweepstake scheme that targeted victims over the age of 55. Gutierrez and Cartagena were arrested in Colombia. Lopes remains out of custody in Canada and is being informed of the charges.
According to court documents, Gutierrez and his co-conspirators contacted elderly individuals in the Eastern District of California and elsewhere telling them that they had won a lottery or sweepstakes in the millions of dollars, but had to prepay taxes or insurance fees prior to getting their prize. The conspirators used various means to convince the victims of the lottery or sweepstakes’ authenticity and to avoid detection, including using false aliases, having one victim mail another checks disguised as “investments,” and instructing victims to lie to bank tellers and family members about what purpose the checks or money orders served. In all, dozens of victims over the age of 55 were targeted in the telemarketing scheme, which caused actual losses of at least $1.4 million.
Lopes and Cartagena then conspired with Gutierrez to move the resulting money out of the United States and conceal its nature and source.
This case is the product of an investigation by the Federal Bureau of Investigation and IRS Criminal Investigation. Significant assistance was provided by the Justice Department’s Office of International Affairs. Assistant U.S. Attorney Matthew M. Yelovich is prosecuting the case.
If convicted, Gutierrez faces a maximum statutory penalty of 30 years in prison and a $250,000 fine for each of the mail and wire fraud counts as well as the conspiracy to commit mail and wire fraud. All three defendants face a maximum of 20 years of in prison and a fine of up to $500,000, or twice the value of the monetary instrument or funds involved, whichever is greater, for the conspiracy to commit money laundering. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
The U.S. Department of Justice has partnered with Senior Corps, a national service program administered by the Corporation for National and Community Service, a federal agency, to educate seniors and prevent further victimization. The Senior Corps program engages more than 245,000 older adults in intensive service each year, who in turn, serve more than 840,000 additional seniors, including 332,000 veterans. Using its vast network operating in more than 30,000 locations, Senior Corps volunteers will communicate about elder fraud to potential victims across the country and will use their skills, knowledge and experience to educate their peers and caregivers about the most prolific types of schemes and how to avoid them.
U.S. Attorney Announces Progress in Making Our Communities Safer Through Project Safe NeighborhoodsRead the Press Release
SACRAMENTO, Calif. — One year ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), which Attorney General Sessions has made the centerpiece of the Department’s violent crime reduction strategy. PSN is a nationwide initiative that brings together federal, state, and local law enforcement officials, prosecutors, and community leaders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. The PSN strategy empowers each district to develop targeted, localized violent crime reduction strategies, tailoring solutions to each individual community. PSN has been proven to reduce violent crime since it was launched in 2001, and the revitalized version has been enhanced with new technologies and a redoubling of efforts to strengthen partnerships with local communities.
“Project Safe Neighborhoods is a proven program with demonstrated results,” Attorney General Jeff Sessions said. “We know that the most effective strategy to reduce violent crime is based on sound policing policies that have proven effective over many years, which includes being targeted and responsive to community needs. I have empowered our United States Attorneys to focus enforcement efforts against the most violent criminals in their districts, and directed that they work together with federal, state, local, and tribal law enforcement and community partners to develop tailored solutions to the unique violent crime problems they face. Each United States Attorney has prioritized the PSN program, and I am confident that it will continue to reduce crime, save lives, and restore safety to our communities.”
U.S. Attorney Scott stated: “Our office has a strong track record of working with our federal, state and local partners to prosecute cases aimed at reducing violent crime in our communities. We have developed a model that targets the most violent street gangs plaguing counties in our district, and we have focused on stemming the tide of illegal firearms flowing into our communities, prosecuting those who manufacture, distribute, and possess those weapons. We have deployed this strategy in the Counties of Fresno, Sacramento, San Joaquin, Shasta, Kern, Solano and Tulare, and we are working to spread this model throughout the district. Project Safe Neighborhoods is alive and well in the Eastern District of California.”
The U.S. Attorney’s Office works regularly with District Attorney’s Offices in Fresno, Sacramento, Kern, Stanislaus, Solano, and Tulare Counties, and partners with local law enforcement and federal agencies to target drivers of violence in those communities, including gang members and those who inject illegal firearms into the hands of criminals. This team collects and analyzes statistical and anecdotal data to refine the targeted use of pooled resources. Since the revitalization of PSN in October 2017, almost 200 defendants have been indicted federally for charges arising from PSN investigations. Sixty-four of those stemmed from investigations in Sacramento, Solano, Shasta, and San Joaquin Counties. In 2018, a total of 60 PSN defendants were sentenced to between two and 15 years in prison in the Eastern District of California.
Project Safe Neighborhoods has helped to reinvigorate existing partnerships in our district, which has a history of successful collaborations with local, state and federal law enforcement agencies. Those collaborations have resulted in several large-scale, long-term, multidefendant gang cases, with many arrests, guilty pleas, and sentencings occurring over the past year. Below are examples.
Operation Silent Night involved a coalition of local, state and federal law enforcement officers who conducted 69 searches at various locations throughout Northern California. Officers arrested 25 defendants on federal charges. In addition, local officials arrested more than 10 individuals on state charges. The investigation, led by the FBI, the California Department of Corrections and Rehabilitation, and the Woodland Police Department, focused on coordinated criminal activity that centered in Yolo County but extended to other Northern California counties and prisons.
Three Stockton residents were charged with unlawful dealing in firearms in February 2018. One defendant allegedly sold 50 firearms, including machine guns, stolen firearms, firearms with obliterated serial numbers, and assault rifles manufactured from unfinished lower receivers with no serial numbers. At the time of his arrest, he possessed one handgun, eight machineguns, and five machine gun-conversion devices. Another allegedly manufactured and sold approximately 15 assault rifles. The third defendant allegedly sold eight firearms, including five assault rifles manufactured from unfinished lower receivers with no serial numbers. None of the defendants is licensed to deal in firearms.
A Grass Valley man was sentenced to five years in prison for unlawful manufacturing and dealing in firearms. He contacted a firearms vendor on the dark web seeking to sell AR-15-style “ghost” guns. Firearms without serial numbers are sometimes referred to as ghost guns. The firearms vendor was in fact an undercover agent. He manufactured and sold eight AR‑15‑style firearms without serial numbers to the undercover agent in exchange for payment in bitcoin.
A Vallejo man was sentenced to five years in prison for being a felon in possession a firearm. On July 26, 2017, officers executed a search warrant at Andrews’ home in Vallejo and at a hotel in Fairfield where. When officers arrived at the hotel parking lot, they confronted the defendant, who discarded a .40‑caliber semi-automatic handgun under a car. The gun was loaded with 12 rounds of ammunition, including seven rounds of hollow point ammunition. The defendant could not lawfully possess firearms because he has previously been convicted of felony offenses, including a January 2016 conviction in Solano County for assault with a firearm on a police officer.
Improvements to Community Safety
- The FBI’s official crime data for 2017 reflects that, after two consecutive, historic increases in violent crime, in the first year of the Trump Administration the nationwide violent crime rate began to decline. The nationwide violent crime rate decreased by approximately 1 percent in 2017, while the nationwide homicide rate decreased by nearly 1.5 percent.
- The preliminary information we have for 2018 gives us reason for optimism that our efforts are continuing to pay off. Public data from 60 major cities, including Sacramento and Fresno, show that violent crime was down by nearly 5 percent in those cities in the first six months of 2018 compared to the same period a year ago.
These enforcement actions and partnerships are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. Learn more about Project Safe Neighborhoods.
Sacramento Woman Pleads Guilty to Stealing Social Security BenefitsRead the Press Release
SACRAMENTO, Calif. —Vincene R. Jones, 69, of Sacramento, pleaded guilty today to theft of government property, U.S. Attorney McGregor W. Scott announced.
According to court documents, Jones’s mother received Social Security retirement benefits beginning in 1988. Jones and her mother held a joint bank account where the Social Security Administration deposited the mother’s monthly benefits. The mother was entitled to these benefits until her death on August 16, 1999. Jones did not report her mother’s death to SSA, and SSA continued to deposit the mother’s benefit funds to the joint account from September 1999 to January 2014. Over this 14-year period, SSA paid approximately $114,796 to the joint account. During this period, Jones maintained control of the account and stole the Social Security benefits for her own use. Jones did this knowing she was not entitled to the benefits and that doing so would prevent SSA from using or benefitting from the money.
This case is the product of an investigation by the Office of Inspector General, Social Security Administration. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
Jones is scheduled to be sentenced on January 8, 2019, by U.S. District Judge John A. Mendez. Jones faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
U.S. Attorney Announces Progress in Making Our Communities Safer Through Project Safe Neighborhoods in FresnoRead the Press Release
SACRAMENTO, Calif. — One year ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), which Attorney General Sessions has made the centerpiece of the Department’s violent crime reduction strategy. PSN is a nationwide initiative that brings together federal, state, and local law enforcement officials, prosecutors, and community leaders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. The PSN strategy empowers each district to develop targeted, localized violent crime reduction strategies, tailoring solutions to each individual community. PSN has been proven to reduce violent crime since it was launched in 2001, and the revitalized version has been enhanced with new technologies and a redoubling of efforts to strengthen partnerships with local communities.
“Project Safe Neighborhoods is a proven program with demonstrated results,” Attorney General Jeff Sessions said. “We know that the most effective strategy to reduce violent crime is based on sound policing policies that have proven effective over many years, which includes being targeted and responsive to community needs. I have empowered our United States Attorneys to focus enforcement efforts against the most violent criminals in their districts, and directed that they work together with federal, state, local, and tribal law enforcement and community partners to develop tailored solutions to the unique violent crime problems they face. Each United States Attorney has prioritized the PSN program, and I am confident that it will continue to reduce crime, save lives, and restore safety to our communities.”
U.S. Attorney Scott stated: “Our office has a strong track record of working with our federal, state and local partners to prosecute cases aimed at reducing violent crime in our communities. We have developed a model that targets the most violent street gangs plaguing counties in our district, and we have focused on stemming the tide of illegal firearms flowing into our communities, prosecuting those who manufacture, distribute, and possess those weapons. We have deployed this strategy in the Counties of Fresno, Sacramento, San Joaquin, Shasta, Kern, Solano and Tulare, and we are working to spread this model throughout the district. Project Safe Neighborhoods is alive and well in the Eastern District of California.”
The U.S. Attorney’s Office works regularly with District Attorney’s Offices in Fresno, Sacramento, Kern, Stanislaus, Solano, and Tulare Counties, and partners with local law enforcement and federal agencies to target drivers of violence in those communities, including gang members and those who inject illegal firearms into the hands of criminals. This team collects and analyzes statistical and anecdotal data to refine the targeted use of pooled resources. Since the revitalization of PSN in October 2017, more than 110 defendants have been indicted federally for charges arising from PSN investigations in Fresno, Kern, Merced, Stanislaus, and Tulare Counties. In 2018, a total of 35 PSN defendants were sentenced to between two and 15 years in prison.
Project Safe Neighborhoods has helped to reinvigorate existing partnerships in our district, which has a history of successful collaborations with local, state and federal law enforcement agencies. Those collaborations have resulted in several large-scale, long-term, multidefendant gang cases, with many arrests, guilty pleas, and sentencings occurring over the past year. Below are examples.
- Operation Blue Inferno (Fresno) — 21 defendants were charged with offenses including murder, kidnapping, assault with a dangerous weapon in aid of racketeering, as well as a drug trafficking conspiracy.
- Operation Dog Track (Fresno) — The defendants were charged with various racketeering, human trafficking, fraud and firearms offenses in U.S. v. James York, et al. All 17 defendants have pleaded guilty, and 11 have been sentenced, receiving sentences of up to 10 years in prison.
- Operation Alpha Dog (Fresno) — The 2017 investigation into Fresno criminal street gangs resulted in federal charges against 18 defendants and state charges against at least 14 defendants. The various charges include drug trafficking, conspiracy to traffic illegally in firearms, and transportation for the purpose of prostitution.
- Operation Blind Mice (Kern)— A multi-agency investigation of Bakersfield’s West Side Crips gang resulted in federal indictments against 11 gang members or associates as well as state charges against approximately 30 individuals for crimes ranging from burglary to murder.
- Operation Downward Dog — Two defendants from this operation were in court last week: Christopher Martinez Jr. pleaded guilty to a drug trafficking conspiracy, and Randy Seja was sentenced to 10 years in prison for his role in the drug trafficking conspiracy. Both were members of the Bulldogs criminal street gang and ranking members of the related Malos Hechos motorcycle gang.
- Operation Red Sol (Tulare) – The final defendant, Fabian Magana, from this Tulare County operation targeting Nortenos and associates, was sentenced in November 2017. The investigation resulted in 6 federal indictments and convictions on drug trafficking and firearms charges, and a substantial number more state charges. All 6 defendants have been sentenced with sentences up to 15 years imprisonment.
Additionally, Project Safe Neighborhoods has targeted individuals engaged in a number of firearms offenses, including armed robbery, felons in possession of firearms and firearms trafficking. Some of those cases are highlighted below. - Javier Alonso Beltran and Ulises Medina were members of a conspiracy that committed a series of armed robberies of gas stations, convenience stores, and liquor stores in Tulare and Kern counties from May 19, 2016, until July 22, 2017.
- On April 5, 2018, a federal grand jury returned an indictment charging seven Tennessee and California residents with various firearms offenses. Firearms purchased in Tennessee were shipped to California where they were offered for sale.
- On March 8, 2018, Turlock residents Miguel Rosas and Francisco Rosas were charged with dealing in firearms without a license with regard to the sale of 24 firearms, including a multiple AR-15 style rifles, a short barrel shotgun, a short barrel rifle, bulletproof vests and ammunition. Jaime Arellano, of Fresno, was charged with being a felon in possession of a firearm.
- On March 8, 2018, Jovan Escalante of Fresno, was indicted for maliciously damaging a building by fire. Escalante allegedly threw multiple Molotov cocktails (ignited bottles of gasoline) at an apartment complex in Fresno, causing fire damage to the apartment and a car parked at the apartment complex.
- On June 4, 2018, Luvell Ronell Blinks, a two time convicted felon and East Side Crips gang member, was sentenced to five years in prison for possession of a loaded .357‑caliber Smith and Wesson revolver and a loaded handgun.
In addition to prosecutions, the Project Safe Neighborhoods initiative in Fresno and Bakersfield supports law enforcement, clergy and community groups working to reduce gun violence. This is critical, as the goal of PSN is not to merely manage or punish crime but to make every district safer through community partnerships.
In Fresno, the HOPE Coalition does a monthly block party where food/groceries are given away, bicycles for kids are given away, and free food and entertainment are provided. The location of the block parties are typically ones where a shooting has occurred and the residents may be too fearful to come out of their houses. The block party tries to bring the neighborhood together. The HOPE Coalition also organizes special events to give away backpacks, Christmas presents & Easter baskets. They are currently working on hosting evening community forums at Southeast Schools.
The Bakersfield Safe Streets Partnership also does occasional block parties with other non-profit organizations, as well as, partnering with Kern County Superintendent of Schools for various youth trainings – Youth Mental Health First Aid & Youth Mentoring. They also do an annual Stop the Violence March.
Bakersfield also hosts meetings in which law enforcement, clergy, social service organization, medical providers, and the community come together to talk to individuals who are involved in gangs or are at risk for becoming involved in gangs in an effort to provide alternatives to choosing that path.
Improvements to Community Safety
- The FBI’s official crime data for 2017 reflects that, after two consecutive, historic increases in violent crime, in the first year of the Trump Administration the nationwide violent crime rate began to decline. The nationwide violent crime rate decreased by approximately 1 percent in 2017, while the nationwide homicide rate decreased by nearly 1.5 percent.
- The preliminary information we have for 2018 gives us reason for optimism that our efforts are continuing to pay off. Public data from 60 major cities show that violent crime was down by nearly 5 percent in those cities in the first six months of 2018 compared to the same period a year ago.
- In the city of Fresno, one area in which PSN partnerships are strong, statistics from the Fresno Police Department show a decline in violent crime, including murders and shootings since 2017. As of September 3, 2018, in the city of Fresno, there is a 34 percent reduction in murders, a 24 percent reduction in gang-related murders, a 29 percent reduction in shootings, a 27 percent reduction in gang-related shootings, and a 12 percent reduction in robberies.
These enforcement actions and partnerships are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. Learn more about Project Safe Neighborhoods.
Former Air Force Senior Airman Found Guilty of Making a Fraudulent Demand Against the United StatesRead the Press Release
SACRAMENTO, Calif. — After a two-day trial, a federal jury found Alyssa L. Gervais, 25, of Lincoln, guilty today of making a fraudulent demand against the United States, a misdemeanor, U.S. Attorney McGregor W. Scott announced.
According to evidence presented at trial, Gervais was a Senior Airman at Beale Air Force Base until her separation from the Air Force on January 10, 2019. During her three years in the Air Force, Gervais worked in the finance section at Beale Air Force Base. After her separation, in February 2018, Gervais filed a travel reimbursement request in the form of a “travel voucher” seeking reimbursement for post-separation travel from Beale Air Force Base to her home of record in Indiana. In the travel voucher, Gervais claimed that she, her husband, and their toddler son drove two vehicles over the course of eight days and over 2,000 miles. Gervais’s claimed expenses amounted to approximately $773. The finance section later discovered that Gervais and her family never took the trip and were in California the whole time. Gervais later confessed to investigators that she attempted to defraud the government by submitting a false travel voucher.
At trial, Gervais recanted her confession and instead testified that she lawfully submitted the travel voucher in an attempt to obtain a monetary advance for a trip to Indiana that the family planned to take in the future. Witnesses from the finance department contradicted this story by testifying that a request for an advance would have required a completely different form and procedure, and Gervais knew this because she had worked in the very department that processed travel vouchers and advances.
This case is the product of an investigation by Beale Air Force Base’s Security Forces Investigations Unit. Special Assistant U.S. Attorneys Eric Chang and Robert Artuz are prosecuting the case.
Gervais is scheduled to be sentenced by U.S. Magistrate Judge Kendall J. Newman on January 9, 2018. Gervais faces a maximum statutory penalty of one year in prison and a $100,000 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.
Two Armed Defendants Charged in Connection with Marijuana Manufacturing Grow Site in Mendocino National ForestRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment today against Gregorio Moreno-Valencia, 26, and Alexandro Ayala-Acosta, 45, charging them in connection with a marijuana grow operation in the Mendocino National Forest in Tehama County, possession of firearms in furtherance of drug trafficking crimes, and the depredation of United States property, U.S. Attorney McGregor W. Scott announced.
According to court documents, law enforcement personnel arrested both defendants on August 27, 2018. Moreno-Valencia was armed with a Colt .22 caliber semi-automatic pistol and Ayala-Acosta was armed with a Mossberg short-barrel 12 gauge pump shotgun.
This case is the product of an investigation by the U.S. Forest Service, Tehama County Sheriff’s Department, California Department of Fish & Wildlife, California National Guard, and California Department of Justice.
If convicted of the marijuana counts, each defendant faces a mandatory minimum penalty of 10 years up to a maximum of life in prison and a $10 million fine. The maximum penalty for possession of a firearm in furtherance of drug trafficking crimes is a mandatory consecutive five years to life in prison and a fine of $250,000. The maximum penalty for possession of a short-barrel shotgun in furtherance of drug trafficking crimes is a mandatory consecutive 10 years to life sentence and a fine of $250,000. If convicted of depredation against United States property, each defendant faces a maximum 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Three Mexican Nationals Indicted for Trafficking Methamphetamine and Heroin in Tehama CountyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an eight-count indictment today against Miguel Alverez Cervantes, 53, Maria Cervantes-Echevarria, 34, and Marta Jiminez Lopez, 26, all Mexican nationals living in Los Molinos, charging them with conspiracy to distribute methamphetamine and possessing methamphetamine and heroin for distribution, U.S. Attorney McGregor W. Scott announced. The indictment also charges Cervantes-Echevarria and Lopez with possessing a firearm in furtherance of a drug-trafficking crime.
According to court documents, Maria Cervantes-Echevarria and Marta Lopez used their home in Los Molinos as a stash location for narcotics, firearms, and cash. Court records allege that in January 2018, the two women delivered a spare tire to a third party that was later found to contain approximately 22 pounds of methamphetamine. In addition, an undercover agent purchased over three pounds of methamphetamine from Miguel Cervantes during three controlled buys in August and September 2018. When agents searched Cervantes-Echevarria and Lopez’s home on September 17, 2018, they found three handguns and over $44,000 in cash in the master bedroom. Agents found over 34 pounds of methamphetamine, three pounds of heroin, and an AR-15-style rifle elsewhere on the property.
This case is the product of an investigation by the Drug Enforcement Administration, the Bureau of Land Management, the Tehama Interagency Drug Enforcement (TIDE) task force, the Shasta Interagency Narcotics Task Force (SINTF), and the Siskiyou Unified Major Investigations Team (SUMIT), with special assistance from the Federal Bureau of Investigation and the California Highway Patrol.
If convicted of the conspiracy charge or any of the narcotics charges, each defendant faces a mandatory minimum penalty of 10 years in prison, and a maximum penalty of life in prison and a $10 million fine. If convicted of possessing a firearm in furtherance of a drug‑trafficking crime, Cervantes-Echevarria and Lopez each face a mandatory five-year term in prison, which would run consecutive to any other sentence imposed in this case. Any sentence would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account several variables. These charges are only allegations; the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Sacramento Man Sentenced to Six Years in Prison for Fraud in Connection with Arson SchemeRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Morrison C. England Jr. sentenced Brian J. Stone, 60, of Sacramento, to six years in prison and to pay over $243,000 in restitution and a $12,500 fine for his convictions on 13 counts of wire and mail fraud, U.S. Attorney McGregor W. Scott announced. After sentencing, Stone was remanded into custody.
Stone was formerly a California attorney but was disbarred in 2001. According to evidence presented at a four-day trial and at sentencing, Stone participated with co-defendant Jamal Shehadeh in a multiyear fraud scheme involving several fraudulent fire insurance claims in the Sacramento area that spanned from 2009 through 2013, often utilizing his legal skills in the process. Jamal Shehadeh separately pleaded guilty to arson and admitted to setting or causing to be set fires as a part of the fraud scheme. Among other things, Stone assisted Shehadeh with insurance claims after fires at 511 Broadway in June 2010, 5725 Marconi Avenue in September 2012, and at 2764 Fulton Avenue in June 2013.
In late 2012, co-defendant Jamal Shehadeh had rented space at that location in the name of a supposed auto parts supply business. Stone had been helping Shehadeh unsuccessfully fight an eviction action during the months prior to the fire. On the night the eviction took effect, the fire occurred at 2764 Fulton, and the supposed auto parts business later filed an insurance claim with State Farm. While helping with the insurance claim, Stone recruited a local contractor to create a fake invoice and lie to State Farm regarding debris removal work performed after the fire. In a series of emails, Stone directed the local contractor to keep 10 percent of the money that they would get from State Farm from this fraud, and send the other 90 percent to Stone in a cashier’s check.
The scheme was uncovered when the local contractor reported it to State Farm. The FBI later executed search warrants of Stone’s office and email account, finding copies of documents outlining the fraud.
This case is the product of an investigation by the Federal Bureau of Investigation and IRS Criminal Investigation, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Sacramento Fire Department; the Sacramento Metropolitan Fire Department; and the Sacramento Sheriff’s Department. Assistant U.S. Attorneys Michael D. Anderson and Christopher S. Hales are prosecuting the case.
Two other defendants were charged in the case. Jamal Shehadeh pleaded guilty to two counts of arson to commit a felony on February 10, 2018, and was sentenced to 30 years in prison. Saber Shehadeh was convicted of three counts of mail fraud on June 4, 2018, after a seven-day jury trial, and is scheduled to be sentenced on October 18, 2018.
Mexican National Indicted for Growing Marijuana in Shasta Trinity National ForestRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Gilberto Garcia-Garcia, 26, of Mexico, charging him with conspiring to manufacture and manufacturing at least 1,000 marijuana plants and depredation of public lands and resources, U.S. Attorney McGregor W. Scott announced.
According to court documents, law enforcement officers who were conducting aerial surveillance spotted two large marijuana cultivation sites near the Big French Creek Road in the Shasta-Trinity National Forest, in Trinity County. Law enforcement hiked into the area and observed Garcia-Garcia and another man for approximately 50 minutes as they tended marijuana plants and harvested marijuana. The two men fled when they saw the officers; only Garcia-Garcia was apprehended. Officers counted 11,223 marijuana plants at the cultivation site. The plants were covered in a white powder that appeared to be carbofuran, an insecticide that is highly toxic to both humans and wildlife.
This case is the product of an investigation by the Bureau of Land Management, California Department of Fish and Wildlife, and Trinity County Sheriff’s Department. Assistant U.S. Attorney David W. Spencer is prosecuting the case.
If convicted, Garcia-Garcia faces a mandatory minimum of 10 years in prison and a maximum statutory penalty of life in prison and a $10 million fine for each of the marijuana cultivation counts. He faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for the depredation of public lands and resources 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 Sacramento Area Youth Gymnastics Coach Sentenced to over 8 Years in Prison for Possessing Child PornographyRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Morrison C. England Jr. sentenced Derek Swede Godfrey, 49, formerly of Rocklin, to eight years and one month in prison for possession of child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, in October 5, 2006, law enforcement agents executed a search warrant at Godfrey’s home in Rocklin. On his computer, agents located more than 400 videos and 5,000 still images depicting the sexual abuse and exploitation of minors. The day after, Godfrey, a youth gymnastics coach, left the United States for the Netherlands where he had dual-citizenship. On January 25, 2007, a grand jury in Sacramento indicted Godfrey, charging him with one count of possession of child pornography.
In 2012, Godfrey was located in Perth, Australia, where he was once again found to be coaching children’s gymnastics. At that time, Australian authorities arrested Godfrey on charges unrelated to the charges in the United States. In April 2016, Australian authorities agreed to extradite Godfrey to the United States to face the charges pending in Sacramento.
In sentencing Godfrey, Judge England observed that he was particularly troubled by the fact that Godfrey had fled the United States after his crime was detected in 2007, and that Godfrey had been caught with child pornography in Australia in 2012 while his charges in the United States were pending.
This case was the product of an investigation by Homeland Security Investigations. 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.
Sacramento Man Pleads Guilty to Obstruction of Justice and PerjuryRead the Press Release
SACRAMENTO, Calif. —Joseph Woloszyn, 32, of Sacramento, pleaded guilty today to one count of obstruction of justice and four counts of perjury, U.S. Attorney McGregor W. Scott announced.
According to court documents, on June 28, 2017, Woloszyn provided false testimony under oath at an evidentiary hearing in the case of United States v. M.W., 2:13-cr-067-KJM. Woloszyn testified on behalf of the defendant and provided false statements related to his gang tattoos, nickname, phone number, and contacts with the defendant. Prior to his testimony, during a recorded jail call, Woloszyn told the defendant “When they come to me, good luck.” Woloszyn further assured the defendant, “I’m going to stay solid all the way through, regardless.”
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Cameron L. Desmond is prosecuting the case.
Woloszyn is scheduled to be sentenced by U.S. District Judge John A. Mendez on January 15, 2019. Woloszyn faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Turlock Man Sentenced to over 8 Years in Prison for Receipt and Distribution of Child PornographyRead the Press Release
FRESNO, Calif. — Gary Gene Bishop, 43, of Turlock, was sentenced today by U.S. District Judge Dale A. Drozd to eight years and four months in prison, to be followed by 10 years of supervised release for receiving and distributing child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, between July 27, 2016 and August 22, 2016, in Stanislaus County, Bishop was found to have received and distributed through the internet over 100 videos and 5,000 image files of minors engaged in sexually explicit conduct. The images also involved the portrayal of sadistic, masochistic, and other depictions of violence, and included depictions of pre-pubescent minors.
This case was the product of an investigation by Homeland Security Investigations and the Turlock Police Department. Assistant U.S. Attorney Brian W. Enos prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Recent Prosecutions of Firearm and Gang-Related Offenses in Fresno Area 9-24-18Read the Press Release
FRESNO, Calif. — As part the U.S. Attorney’s Office for the Eastern District of California’s strategy to reduce violent crime, U.S. Attorney McGregor W. Scott announced the following cases involving illegal firearms and gang-related offenses.
On Monday U.S. District Judge Dale A. Drozd sentenced Darrell Maxey, 22, to 10 years in prison and Anthony Windfield, 33, to seven years and three months in prison for conspiring to murder a rival gang member. According to court documents, Maxey and Windfield were members or associates of the Dog Pound Gang (DPG). Windfield also was sentenced to a concurrent term of prison for conspiracy to commit credit card fraud and ordered to pay over $25,000 in restitution. This case is the product of an investigation by the California DOJ’s Bureau of Investigation Special Operations Unit, the Fresno Police Department, and the FBI. Assistant U.S. Attorneys Kimberly Sanchez, Jeffrey Spivak and Christopher Baker are prosecuting the case.
Randy Seja, 26, of Fresno, was sentenced Monday by Judge Drozd to 10 years in prison for conspiracy to distribute and possess with intent to distribute methamphetamine. Christopher Martinez Jr. 25, of Fresno, pleaded guilty to conspiring to distribute methamphetamine According to court documents Seja and Martinez were members of the Bulldog criminal street gang and ranking members of the associated Malos Hechos Motorcycle gang. Martinez is scheduled to be sentenced on December 10, 2018. This case is the product of an investigation by ATF, DEA, Homeland Security Investigations (HSI), FBI, the U.S. Marshals Service, the Fresno Police Department, the Fresno County Sheriff’s Office, the Mult-Agency Gang Enforcement Consortium (MAGEC), the California Highway Patrol, the California Department of Corrections and Rehabilitation- Division of Adult Parole, the Fresno County Probation, and the Fresno County District Attorney’s Office. Assistant U.S. Attorneys Melanie L. Alsworth and Kimberly A. Sanchez are prosecuting the case.
Kwesi Jamar Coker, 26, of Fresno, was sentenced Monday by Chief U.S. District Judge Lawrence J. O’Neill to four years and two months in prison for being a felon in possession of a firearm. According to court documents, on October 5, 2016, Coker was arrested after a car chase by law enforcement officers. A firearm was found in the car with the fingerprints of Coker and co-defendant Bryan Washington on it. Both have prior felony convictions and are prohibited from possessing a firearm. This case was the product of an investigation by ATF and the Fresno Police Department. Assistant U.S. Attorney Kimberly A. Sanchez prosecuted the case.
Robert James Guthrie, 23, of Atwater, pleaded guilty Monday to conspiracy to distribute and possess with intent to distribute methamphetamine and conspiracy to engage in the business of selling firearms without a license. According to court documents, Guthrie was a member of the A-town Locs. Between January 13 and May 10, 2017, he engaged in 13 transactions in which he sold 26 firearms, a silencer, over 1.3 kilograms of methamphetamine, and 44 grams of cocaine. Agents seized a pound of methamphetamine from his residence. Guthrie is scheduled to be sentenced by Judge O’Neill on December 10, 2018. This case is the product of an investigation by the FBI, ATF, HSI, the Merced Area Gang and Narcotic Enforcement Team (MAGNET), and the California DOJ California Highway Patrol Special Operations Unit. Assistant U.S. Attorneys Kimberly A. Sanchez and Ross Pearson are prosecuting the case.
Terry McGruder, 30, of Fresno, pleaded guilty Monday to being a felon in possession of a firearm. According to court documents, on January 3, 2017, McGruder possessed a firearm that he threw onto the roof of a hotel as he was running from police. He was prohibited from possessing a fire arm because of his prior felony convictions. McGruder is scheduled to be sentenced by Judge Drozd on December 17, 2018. This case was the product of an investigation by the Fresno County Sheriff’s Office and the FBI. Assistant U.S. Attorney Kimberly A. Sanchez is prosecuting the case.
Daniel Casares, 35, of Fresno, pleaded guilty Monday to being a felon in possession of a firearm. According to court documents, on April 13, 2017, Casares was in possession of a firearm. As a previously convicted felon, he is prohibited from possessing a firearm. He is scheduled to be sentenced by Judge O’Neill on December 17, 2018. This case is the product of an investigation by the Fresno County Sheriff’s Office and Homeland Security Investigations. Assistant U.S. Attorney Kimberly A. Sanchez is prosecuting the case.
Dionne Singleton, 41, of Fresno, pleaded guilty Monday to being a felon in possession of a firearm, possession of a firearm in a school zone, and distribution of crack cocaine. On October 10, 2016, Singleton possessed a handgun as well as a 30-round magazine loaded with 28 rounds of ammunition less than 500 feet from a school zone. Singleton has prior felony convictions for infliction of corporal injury on a spouse or cohabitant and shooting at an inhabited dwelling, and is prohibited from possessing a firearm. He is scheduled to be sentenced by Judge Drozd on December 10, 2018. This case is the product of an investigation by ATF, the FBI, the Fresno Police Department, MAGEC, the California Department of Corrections and Rehabilitation, the Fresno County District Attorney’s Office, and the California DOJ California Highway Patrol Special Operations Unit. Assistant U.S. Attorney Kimberly A. Sanchez is prosecuting the case.
The Organized Crime Drug Enforcement Task Force (OCDETF) was involved in the investigation of many of these cases. 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.
These cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
Mexican National Residing in Modesto Is Sentenced to 17.5 Years in Prison for Methamphetamine TraffickingRead the Press Release
SACRAMENTO, Calif. — Feliciano Ochoa Reyes, 34, of Mexico and Modesto, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to 17 and a half years in prison for conspiring to distribute methamphetamine, U.S. Attorney McGregor W. Scott announced.
According to court documents, Reyes supplied methamphetamine to various distributors in the Sacramento and Modesto areas between 2014 and 2015. Reyes was arrested on March 29, 2015, after law enforcement officers watched one of his employees receive a delivery of 15 kilograms of methamphetamine at a Modesto stash house. The methamphetamine delivery was worth approximately $50,000. When agents searched the property, they found a laboratory for converting liquid methamphetamine to crystal methamphetamine and more than $23,000 in cash. On December 3, 2014, officers pulled over the car of a Reyes customer who had just received four kilograms of methamphetamine from Reyes.
This case was the product of an investigation by the Drug Enforcement Administration, the Central Valley High Intensity Drug Trafficking Area, and the California Multi-Jurisdictional Methamphetamine Enforcement Team. Assistant U.S. Attorney Amanda Beck prosecuted the case.
Co-defendants Jose Acosta and Jorge Rios have each been sentenced to 87 months in prison. Co-defendant Jose Luis Aguilar was sentenced to 48 months in prison. Co-defendant Luis Garcia Barreto was sentenced to 47 months in prison. Co-defendant Diego Velasquez was sentenced to 30 months in prison. Juan Antonio Mendoza Meraz was sentenced in a related case to 56 months in prison. Charges are pending against the final co-defendant, Jose Vasquez. The charges against him are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Member of Nevada City-Based Conspiracy Sentenced to over 7 Years in Prison for Multi-Million Dollar Bank and Title Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Larry Allen Todt, 66, formerly of Malibu, was sentenced to over seven years in prison and ordered to pay over $3,000,000 in restitution for his role in a fraudulent mortgage elimination scheme, U.S. Attorney McGregor W. Scott announced.
On December 6, 2017, Todt was convicted following trial on one count of conspiracy and one count of bank fraud.
According to court documents, between April 22, 2010, and November 18, 2011, Todt was a member of a conspiracy that ran a mortgage elimination program purporting to help distressed homeowners avoid foreclosure. The conspirators fraudulently altered the chain of title on residential properties, sold the properties, and received the sales proceeds.
As a requirement for participation in the “mortgage elimination program,” the conspirators enrolled homeowners as members in a Nevada City-based church named Shon-te-East-a, Walks With Spirit, or its successor entity, Pillow Foundation. The conspirators indicated to the homeowners that these entities would offer protection against the banks.
Todt ran a branch of the mortgage elimination program, recruiting homeowners into the scheme, marshalling the necessary recorded documents, and guiding the sale of the homes. Once the homeowner enrolled with Shon-te-East-a or Pillow Foundation, Todt would have a sham deed of trust created and recorded, giving the impression that the homeowner had refinanced the mortgage loan with a new lender. In reality, the new lender was a fake entity controlled by the conspirators, and the homeowner owed no money to the purported new lender.
The next step in the process was also a recorded document. The conspirators caused a fake deed of reconveyance to be recorded, giving the appearance that the true mortgage loan had been discharged and that the true lienholder no longer had a security interest in the home.
With title appearing to be clear, the conspirators caused the sale of the home with the proceeds split between the co-conspirators and the homeowners.
In total, 37 properties were sold through the Shon-te-East-a conspiracy. The conspirators recorded fraudulent documents on an additional approximately 100 homes, but were unable to sell these before the scheme unraveled.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Audrey B. Hemesath and Todd A. Pickles are prosecuting the case.
One co-defendant, George B. Larson, formerly of San Rafael, was convicted at trial along with Todt and sentenced to 121 months in prison. One other co-defendant, Michael Romano, of Benicia, was sentenced to 37 months in prison following his guilty plea. Remus A. Kirkpatrick, formerly of Oceanside, and Laura Pezzi, of Roseville have previously pleaded guilty. Tisha Trites and Todd Smith, both of San Diego, pleaded guilty in related cases. All are awaiting sentencing.
Co-defendants John Michael DiChiara, of Penn Valley, and James Castle, of Santa Rosa, are awaiting trial. The charges against DiChiara and Castle are only allegations; both defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
Grass Valley Man Sentenced to 5 Years in Prison for Unlawfully Manufacturing Ghost Guns and Selling Them on Dark WebRead the Press Release
SACRAMENTO, Calif. — Michael Paul Grisham Smith, 44, of Grass Valley, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to five years in prison for unlawful manufacturing and dealing in firearms, U.S. Attorney McGregor W. Scott announced.
According to court documents, Smith contacted a firearms vendor on the dark web seeking to sell AR-15-style “ghost” guns. Firearms without serial numbers are sometimes referred to as ghost guns. The firearms vendor was in fact an undercover agent. Between December 1, 2017, and February 15, 2018, Smith manufactured and sold eight AR‑15‑style firearms without serial numbers to the undercover agent in exchange for payment in bitcoin.
This case was the product of an investigation by Homeland Security Investigations. Assistant U.S. Attorneys Quinn Hochhalter and Justin Lee are prosecuting the case.
Stockton Man Sentenced to over Four Years in Prison for Unemployment Benefits Fraud and Identity Theft SchemeRead the Press Release
SACRAMENTO, Calif. — Sergio Doriante Sanchez Reyna, 25, of Stockton, was sentenced today by U.S. District Judge Morrison C. England Jr. to four years and three months in prison and ordered to pay $436,091 in restitution for his role in a scheme to defraud the State of California by filing false unemployment insurance claims, U.S. Attorney McGregor W. Scott announced.
“Sergio Reyna conspired with others in an unemployment insurance (UI) fraud scheme targeted at the California Employment Development Department (EDD). Reyna facilitated the scheme by receiving EDD documents and obtaining debit cards issued in the names of identity theft victims to fraudulently obtain the UI benefits. We will continue to work with our federal and state law enforcement partners to safeguard the UI system from those who exploit these benefit programs,” said Abel Salinas, Special Agent-in-Charge, Los Angeles Region, U.S. Department of Labor Office of Inspector General.
“This scheme exploited a fund designed to support people in California in a time of need, stealing money from a vital fund,” said Special Agent in Charge Sean Ragan of the Sacramento Field Office. “The FBI is committed to working with our state and federal partners to uncover fraud committed by government employees who exploit their trusted positions and damage the reputation of their fellow government employees who serve the public.”
According to court documents, between December 12, 2014, and July 14, 2016, Reyna conspired with others to defraud the state of California. Pamela Emanuel, 57, of San Jose, worked as a tax compliance representative for the California Employment Development Department. She allegedly used her position to access the personal identifying information of workers throughout California, and she and her co-conspirators used that information to file fraudulent unemployment claims in the names of the unknowing victims.
The conspirators took several steps to avoid detection. In some instances, they used a Virtual Private Network designed to mask their IP addresses when making online filings. When the defendants filed claims with EDD, they usually provided the name of a fake business as the claimant’s last employer. As a result, the victim’s true employer was not immediately notified that a claim was filed.
Reyna participated in the scheme by receiving and facilitating EDD documents at two Stockton addresses associated or controlled by him and using at least 18 EDD debit cards issued in the names of identity-theft victims to withdraw the fraudulently obtained benefits. In total, the conspirators filed at least 269 false claims seeking over $2.5 million in fraudulent benefits. EDD’s actual overpayment was approximately $887,199.
This case is the product of an investigation by the U.S. Department of Labor Office of Inspector General, the Federal Bureau of Investigation and the California Employment Development Department, Investigations Division. Assistant U.S. Attorney Amy Schuller Hitchcock is prosecuting the case.
On August 16, 2018, Brittany Maunakea, 29 of Manteca, was sentenced to two and a half years in prison. Gregory Lee, 56, of Antioch, has pleaded guilty and is scheduled to be sentenced on December 13, 2018. The charges against Emanuel and Russell White III, 35, of Turlock, are pending; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Recent Prosecutions of Firearm and Gang-Related Offenses in Fresno AreaRead the Press Release
FRESNO, Calif. — As part the U.S. Attorney’s Office for the Eastern District of California’s strategy to reduce violent crime, U.S. Attorney McGregor W. Scott announced the following cases involving illegal firearms and gang-related offenses.
A federal grand jury returned a one-count indictment on September 6, 2018, against Miguel Rodriguez, 37, of Fresno, charging him with being a felon in possession of a firearm. According to court documents, on July 17, 2018, Rodriguez was found to be in possession of a .357 revolver in Reedley. Rodriguez had multiple previous felony convictions, and is prohibited from possessing a firearm. This case is the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Reedley Police Department. Assistant U.S. Attorney Mark J. McKeon is prosecuting the case. The charges against Rodriguez are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Nicholas Delt, 35, of Fresno, pleaded guilty Monday to being a felon in possession of a firearm and possession of a firearm after incurring a misdemeanor domestic violence conviction. According to court documents, police officers attempted to stop Delt while he was driving with an expired registration. Delt failed to stop, drove for approximately half a mile, then got out of the vehicle and ran on foot. When officers caught Delt, they found a loaded handgun with a high capacity magazine in his waistband. Delt has previously been convicted of second degree burglary, a felony, and inflicting corporal injury on a spouse or cohabitant, a misdemeanor. He is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on January 7, 2019. This case is the product of an investigation by the Fresno Police Department and the FBI. Assistant U.S. Attorney Ross Pearson is prosecuting the case.
Juan Briceno, 37, of Fresno, was sentenced Monday by Judge Drozd to five years in prison for distribution of a controlled substance. On June 18, 2018, Briceno pleaded guilty to the charges. Briceno was arrested along with several other defendants as part of a long-term, multi-agency investigation into a Fresno-area street gangs. According to court documents, between February 14, 2017, and December 2, 2017, Briceno sold a confidential informant 141 grams of methamphetamine and 129 grams of cocaine. This case was investigated by the ATF, DEA, HSI, FBI, USMS, Fresno Police Department, Fresno County Sheriff’s Office, the Multi Agency Gang Enforcement Consortium (MAGEC), California Highway Patrol, California Department of Corrections and Rehabilitation–Division of Adult Parole, Fresno County Probation, the United States Attorney’s Office, and the Fresno County District Attorney’s Office. The arrests and search warrants were conducted as part of a joint investigation of the Organized Crime and Drug Enforcement Task Force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. Assistant U.S. Attorneys Melanie Alsworth and Kimberly A. Sanchez prosecuted the case.
Cecilio Alaniz Jr., 28, of Fresno, was sentenced Monday by Judge Drozd to six years and six months in prison for conspiring to distribute and possess with intent to distribute a controlled substance. On June 25, 2018, Alaniz pleaded guilty to the charge. Alaniz was charged along with several other defendants following a multi-agency enforcement operation focused on illegal firearms trafficking and drug trafficking offenses. Others named in that case are pending trial and are presumed innocent until and unless proven guilty beyond a reasonable doubt. According to court documents, between April 1 and November 11, 2015, Alaniz conspired with Jesse Mendoza to distribute methamphetamine. Alaniz provided methamphetamine to Mendoza, and on October 21, 2015, Mendoza sold a pound of methamphetamine to an undercover agent. This case was investigated by the ATF, DEA, HSI, Fresno Police Department, Fresno County Sheriff’s Office, the Multi Agency Gang Enforcement Consortium (MAGEC), and the Fresno County District Attorney’s Office. The arrests and search warrants in the case were conducted as part of an investigation of the Organized Crime and Drug Enforcement Task Force. Assistant U.S. Attorneys Melanie Alsworth and Kimberly A. Sanchez prosecuted the case.
The maximum statutory penalty for being a felon in possession of a firearm is 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
These cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
New York Resident and New Jersey Corporation Sentenced in $14 Million Conspiracy to Commit Tobacco Excise Tax FraudRead the Press Release
SACRAMENTO, Calif. — The corporate officer of the House of Oxford Inc., a New Jersey corporation, Alex Goldman, 43, of Great Neck, New York, was sentenced today to three years in prison, for conspiracy to commit tobacco excise tax fraud, U.S. Attorney McGregor W. Scott announced.
In addition, House of Oxford was sentenced to two years of probation where it will be subject to search and required to have financial records monitored. Additionally, House of Oxford and Alex Goldman agreed to the civil forfeiture of approximately $14 million in assets that represented the proceeds of the fraud scheme including cash, various investments, vehicles, artwork and jewelry.
According to court documents, House of Oxford conspired with multiple individuals and other business entities operating in California to provide tens of millions of dollars in untaxed other tobacco products (OTP) to businesses with the knowledge that the OTP would be sold illegally in the state of California. In total, House of Oxford and Goldman, defrauded the State of California out of approximately $14 million in tobacco excise tax revenue.
A large percentage of the proceeds of the excise tax are used to fund California’s early childhood development program, First 5 California. As a result of this case, approximately $14 million in forfeited assets were returned to the State of California through the U.S. Department of Justice’s remission program.
“This case is the result of a highly successful collaborative effort involving federal and state investigators and prosecutors, working side-by-side,” said U.S. Attorney Scott. “The judgment handed down today should serve as a warning to those who consider stealing from the public. We will work hard to recover those funds and ensure that those responsible are held accountable.”
“This partnership has helped California recover approximately $14 million,” said California Department of Tax and Fee Administration (CDTFA) Director Nick Maduros. “The CDTFA, in collaboration with law enforcement, is committed to recovering revenue lost to tax evasion and fraud in order to help fund the vital public services on which Californians rely.”
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives along with the former California State Board of Equalization, now the California Department of Tax and Fee Administration. Assistant U.S. Attorneys Michael D. Anderson and Rosanne L. Rust prosecuted the case.
Jury Convicts Stockton Special Education Teacher on Charges Related to Long-Term Sexual Abuse of MinorsRead the Press Release
SACRAMENTO, Calif. — A federal jury has found Rodney Flucas, 49, of Stockton, guilty of transportation of minors with intent to engage in criminal sexual activity and one count of transporting an adult daughter across state lines with intent to engage in incest, U.S. Attorney McGregor W. Scott announced.
“Cases like these are difficult to investigate. We must ask the victims to relive trauma and face a person they would rather forget. Rodney Flucas underestimated the strength and grace of his victims, and we thank them for their courage,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “We are grateful for opportunities to investigate crimes against minors-often in concert with local, state, and federal partners — to ensure those who exploit their naiveté and innocence face justice.”
According to court documents and evidence produced at trial, Flucas engaged in long‑term, concurrent sexual abuse of three of his daughters and two others, all of whom were minors when he began abusing them. The abuse came to light in February 2017 when his teenaged daughter tried to commit suicide by driving into a lamppost hoping that her death would lead to the discovery of the abuse. She was transported to the hospital where she disclosed the abuse to authorities. After this, five other victims began disclosing the sexual abuse Flucas inflicted on them since they were children. They made such disclosures despite Flucas’s aggressive campaign to get them to lie to child protection authorities and the police, and despite the family mantra Flucas had programmed into minors in his home from a young age: “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.
According to evidence produced at trial, Flucas began abusing four of his victims when the family lived in Valdosta, Georgia around the year 2000. He owned or controlled upward of four houses on the same street in Valdosta where his wife, ex-wife, other partners and 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, but closed its investigation. In August 2014, Flucas moved his family to Americus, Georgia where he continued to sexually abuse some of his children. He began working as a teacher of the deaf and hard of hearing but was fired after one month amidst sexual abuse allegations.
By September 2014, Flucas moved the family, including four of his victims, to Klamath Falls, Oregon and continued the abuse. Once in Oregon, Flucas also began sexually abusing a 15‑year-old girl, who had befriended Flucas’s daughter at school. That girl moved into Flucas’s home, and Flucas 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 family to Stockton. He moved his victims, including the then-pregnant family friend, and continued to sexually abuse them in California until the car crash that brought the allegations to light.
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.
According to evidence presented at trial, in addition to his ties to Georgia, Oregon, and California, Flucas has ties to or has lived in Baltimore, Maryland, Washington, D.C., and Harrisburg, Pennsylvania; he has a current Pennsylvania driver’s license and testified at trial he has a home there and travels there often. Additionally, Flucas has fathered at least 23 children, including three who were the subject of this trial, by numerous women. Also presented at trial was evidence that Flucas had visited a website that provided information about the statute of limitations for rape in the state of Texas.
This case is the product of an investigation by the Federal Bureau of Investigation, which originated from an investigation by the Stockton Police Department. Assistant U.S. Attorneys Nirav Desai and Jeremy Kelley are prosecuting the case. The defendant is also the subject of charges filed by the San Joaquin County District Attorney’s Office, as a result of the Stockton Police Department’s separate investigation.
Flucas is scheduled to be sentenced before U.S. District Judge Kimberly J. Mueller on December 17, 2018. Flucas faces a statutory mandatory minimum sentence of 20 years in prison and up to a maximum of life in prison and a $250,000 fine for the count of transportation minors with intent to engage in criminal sexual activity. On June 26, a separate jury had found Flucas guilty of one count of attempted witness tampering, and he faces up to 20 years in prison and a $250,000 fine for that 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.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Former Elementary School Teacher Charged with Attempted Enticement of a Minor and Viewing Child PornographyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Andrew Stephen Lund, 36, of Vallejo, charging him with attempted online enticement of a minor to engage in sexual activity and accessing child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, in April 2018, Lund, attempted to persuade, induce, and entice a minor to engage in sexual activity. Between April 2016 and April 2018, Lund also accessed and viewed child pornography. Until his resignation in April 2018, Lund was an elementary school teacher in Vallejo.
This case was the product of an investigation by Homeland Security Investigations and Silicon Valley Internet Crimes Against Children Task Force. Assistant U.S. Attorney Amy Schuller Hitchcock is prosecuting the case.
Anyone with relevant information in this case is urged to call the Homeland Security Investigations Tip Line: 866-DHS-2-ICE.
If convicted, Lund faces a mandatory statutory minimum of 10 years in prison and a maximum of life in prison, as well as a fine up to $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the 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.
Foreign National Sentenced to Two Years in Prison for Conspiring to Bribe a Public OfficialRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Troy L. Nunley sentenced Constantin Schiller, 65, of Romania, today to two years in prison for conspiracy to commit bribery, U.S. Attorney McGregor W. Scott announced.
According to court documents, Schiller and co-defendants Anamaria Cruceru, 51, and Marcelle Banaga, 43, also of Romania, were employees of a Romanian company, Polaris M. Holdings, owned and operated by co-defendant Dumitru Martin, 57, of Romania. Between June 2014 and December 2015, the defendants conspired with each other to bribe a high-level United States Air Force contracting officer in an effort to win multiple multimillion-dollar contracts for Polaris. The defendants offered to pay the contracting officer a bribe, which they called a “commission,” equal to 10 percent of the amount of any contract awarded. The defendants also suggested that the contracting officer use a fictitious consulting contract and other commercial contracts and documents to conceal payment of the bribe.
In July 2015, the defendants caused Polaris to submit a bid to the USAF to supply storage containers to the Mihail Kogalniceanu Air Base in Romania. The contract was valued at over $10 million. In September 2015, Martin traveled to Travis Air Force Base in Fairfield, California to sign the documents relating to the bid as well the fictitious contracts meant to conceal various bribe payments totaling just over $1 million. Thereafter, as part of the conspiracy, the defendants caused Polaris to wire $100,000 from Romania to a bank account in the United States as the initial bribe payment to the USAF contracting officer. Unbeknownst to the defendants, the USAF contracting officer was working with federal law enforcement, and there was no contract to be awarded to Polaris.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Michael Beckwith and Todd Pickles are prosecuting the case.
On April 6, 2017, Martin was sentenced to 13 years in prison. Banaga and Cruceru have pleaded guilty to conspiracy to commit bribery and are scheduled to be sentenced by Judge Nunley on November 8, 2018, and November 15, 2018, respectively. They each face a maximum statutory penalty of five years in prison. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.