Eastern District of California

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.

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.

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.

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.

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, 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.

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.

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.

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.

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.

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.

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.

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.

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.

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, 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.

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.

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.

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.

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, 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.

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.

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, 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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Nikko Adolfo Perez, 26, of Atwater, charging him with one count of sexual exploitation of children, one count of coercion or enticement of a minor, and one count of receipt of child pornography, U.S. Attorney McGregor W. Scott announced.

According to court documents, Perez, using the Instagram screen name captainamerica272018, victimized two boys, ages 8 and 10, in Utah by coercing them into creating and then sending to him images of them engaged in sexually explicit conduct. Perez offered to pay the boys with Google Play credits if they engaged in requested sexual acts or poses. When one of the victims said he would “call 911,” Perez threatened to disseminate images of the victims engaged in sexually explicit conduct. He also threatened to harm family members of the victims. Perez used Omegle, Instagram, Snapchat, Kik, and other social media apps.

This case is the product of an investigation by the Salt Lake City Police Department and the Federal Bureau of Investigation offices in Salt Lake City and Fresno. Assistant U.S. Attorney David Gappa is prosecuting the case.

If convicted, Perez faces a mandatory minimum term of 15 years and a maximum of 30 years in prison for the sexual exploitation count, a mandatory minimum of 10 years to a maximum of life in prison for the coercion and enticement count, and five to 20 years in prison for the count of receipt of child pornography. For all counts there is a potential $250,000 fine and a lifetime term of supervised release. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

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

SACRAMENTO, Calif. — A superseding indictment was unsealed today, adding four defendants and additional charges to a case involving an illegal gambling business operating in Sacramento and elsewhere in California, U.S. Attorney McGregor W. Scott announced.

Yaniv Gohar, 35, of Berkeley; Orel Gohar, 28, of San Francisco; and Eran Buhbut 33, of Oakland were indicted in December 2017, charged with conducting an illegal gambling business. According to court documents, from September 2015 through November 2017, Yaniv Gohar, Orel Gohar, and Buhbut operated a gambling business that installed and maintained video slot machines at smoke shops and convenience stores throughout Northern California, including in Sacramento, in violation of California laws prohibiting such machines.

The superseding indictment adds four new defendants and several new charges, including two different money laundering conspiracies, two counts of witness tampering, one count of making false statements to the grand jury, and two counts of failure to appear. According to the superseding indictment, Orel Gohar conspired to launder the proceeds of the gambling business with Atir Dadon, 34, of Sherman Oaks, and Bar Shani, 26, of San Francisco. To do so, the three allegedly engaged in coded conversations referring to financial transactions as an exchange of bottles or records and exchanged cash for checks from a company controlled by Dadon and Shani to make Orel Gohar’s income appear legitimate. Yaniv Gohar and Orel Gohar are also charged with conspiring to launder proceeds with Adam Atari, 34, of Sherman Oaks. Atari allegedly used multiple companies under his control to send checks and electronic bank transfers to Yaniv Gohar in exchange for Yaniv Gohar and Orel Gohar paying his San Francisco area employees in cash that was derived from the gambling business.

Atari is also charged with two counts of witness tampering for allegedly attempting to corruptly persuade two of his employees to lie to the FBI about issues related to the money laundering investigation. Raz Razla, 48, of Sherman Oaks, is charged with making false statements to the grand jury for his statements that he only learned of the charges against Yaniv Gohar in February 2018, when in fact he allegedly knew of those charges in December 2017. Finally, Yaniv Gohar and Orel Gohar are charged with failing to appear at court hearings in January 2018 after having been released from custody after their arraignment on the original indictment.

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

Yaniv Gohar and Orel Gohar fled the United States upon their release in December 2017 and remain at large. Atari was arrested on September 1, 2018, at Los Angeles International Airport, and has been detained pending his appearance in Sacramento. Shani was arrested in San Francisco Monday and ordered detained pending his appearance in Sacramento. Dadon and Razla have their initial court appearances today in Los Angeles.

If convicted, Yaniv Gohar, Orel Gohar, and Buhbut face a maximum statutory penalty of five years in prison and a $250,000 fine for the gambling offense. For the money laundering conspiracies, Dadon, Shani, Yaniv Gohar, Orel Gohar, and Atari face a statutory maximum of 20 years in prison and a fine of up to $500,000, or twice the value of the monetary instrument or funds involved, whichever is greater. For each count of witness tampering, Atari faces a statutory maximum of 20 years in prison and a fine of up to $250,000. Finally, Raz Razla faces a statutory maximum of five years in prison and a $250,000 fine for the false declarations before a grand jury charge, and Yaniv Gohar and Orel Gohar face the same maximum penalties for their respective failures to appear. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Damanpreet Singh, 33, of Los Angeles, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to two years in prison for conspiring to commit bribery, identity fraud and unauthorized access of a computer, U.S. Attorney McGregor W. Scott announced. 

According to court documents, between April 2016 and July 2017, Singh conspired with two DMV employees, Lisa Terraciano and Aaron Gilliam, who, in exchange for bribe payments, would alter DMV records to fraudulently show that individuals had passed DMV tests needed to obtain commercial licenses, which the applicants had not taken or passed. At least 60 individuals’ DMV records were fraudulently updated as a result of Damanpreet Singh’s conspiracy with the DMV employees.  Singh received approximately $90,000 for his role in the conspiracy, some of which he in turn paid to the corrupt DMV employees.

Terraciano and Gilliam have pleaded guilty to conspiring to commit bribery, identity fraud and unauthorized access of a computer and are scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on October 5, 2018.

This case is part of a series of ongoing investigations by the California Department of Motor Vehicles, Office of Internal Affairs, the Federal Bureau of Investigation, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Department of Transportation, Office of Inspector General. Assistant U.S. Attorneys Todd A. Pickles and Rosanne L. Rust are prosecuting the cases. 

FRESNO, Calif. — A federal grand jury in Fresno returned a five-count indictment Thursday against 16 members and associates of La Mara Salvatrucha (MS-13), Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney McGregor W. Scott for the Eastern District of California announced.

The defendants are charged with assault with a dangerous weapon in aid of racketeering (two counts); conspiracy to distribute and possess with intent to distribute methamphetamine, cocaine, and marijuana; and being an alien in possession of a firearm (two counts). The defendants are:

• Denis Barrera-Palma, 24, of Mendota, charged with assault with a dangerous weapon (a pipe) and drug conspiracy;
• Mario Alexander Garcia, 31, of Mendota, charged with drug conspiracy;
• Francisco Lizano, 24, of Mendota, charged with drug conspiracy and alien in possession of a firearm;
• Jefferson Guevara, 19, of Los Angeles, charged with drug conspiracy;
• Ever Membreno, 18, of Mendota, charged with drug conspiracy;
• Edgar Torres-Amador, 21, of Mendota, charged with assault with a dangerous weapon (a pipe);
• Lorenzo Amador, 20, of Mendota, charged with assault with a dangerous weapon (a stabbing instrument) and drug conspiracy;
• Jose Wilson Navarette-Mendez, 21, of Mendota, charged with drug conspiracy;
• Denis Alfaro-Torres, 22, of Mendota, charged with drug conspiracy;
• Santos Bonilla, 26, of Mendota, charged with drug conspiracy;
• Henry Bonilla, 18, of Mendota, charged with drug conspiracy;
• Marvin Villegas-Segovia, 21, of Mendota, charged with drug conspiracy;
• Christian Hidalgo, 21, of Mendota, charged with drug conspiracy;
• Brenda Yajaria Morales, 25 of Mendota, charged with drug conspiracy and alien in possession of a firearm;
• Claudia Lizaola, 39, of San Bernardino, charged with drug conspiracy; and
• Oscar Reyes, 29, of Mendota, charged with drug conspiracy.

According to court documents, the defendants were members of MS-13 operating in Mendota and Los Angeles. MS-13 is a violent criminal street gang that engages in racketeering activity, including murder, kidnapping, extortion, and drug trafficking. Its members span the nation and are active internationally as well. The charges allege that in May 2018, Denis Barrera-Palma and Edgar Torres-Amador assaulted another individual with a dangerous weapon in furtherance of MS-13 and in order to gain entrance to, or maintain or increase their status within, MS-13. They further allege that in August 2018, Lorenzo Amador assaulted another individual with a dangerous weapon in furtherance of MS-13 and in order to gain entrance to, or maintain or increase his status within, MS-13. The charges also allege that all defendants, except Amador-Torres, engaged in a conspiracy to distribute and possess with intent to distribute methamphetamine, cocaine and marijuana.

These charges follow initial charges filed via complaint in August 2018, after which most of the defendants were arrested on August 30. As set forth in the complaint, MS-13 allegedly engaged in street level drug sales to fund the gang’s various criminal activities. The gang allegedly would acquire drugs, parse them out among members with a directive that they sell the drugs within a certain period of time and return all proceeds to the gang. Those proceeds would then allegedly be used for a variety of purposes, including funding trips to obtain drugs or commit acts of violence, putting money on the books of incarcerated MS-13 members, sending money to MS-13 members in El Salvador, and obtaining more narcotics to sell. Among the alleged assaults gang members engaged in were the May 2018 pipe attack in front of an elementary school in Mendota and an August 12 stabbing in Mendota. Both events involved MS‑13 members assaulting individuals believed to be members of a rival gang to MS-13.

A number of the defendants are also facing charges in Fresno County Superior Court, including Denis Barrera-Palma and Ever Membreno, who are charged with conspiracy to commit murder with a gang enhancement.

The investigation was conducted by the California Department of Justice and California Highway Patrol Special Operations Unit, the Multi-Agency Gang Enforcement Consortium (MAGEC), the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the Fresno County District Attorney’s Office, the Fresno County Sheriff’s Office, and the California Department of Corrections and Rehabilitation Special Services Unit (SSU). The CHP Special Operations Unit is a collaborative investigative effort between the California Department of Justice and California Highway Patrol that provides statewide enforcement to combat violent career criminals, gangs, and organized crime groups, along with intrastate drug traffickers. Trial Attorney Marianne Shelvey of the U.S. Department of Justice’s Organized Crime and Gang Section, along with Assistant U.S. Attorneys Ross Pearson, Angela Scott, Kathleen Servatius and Kimberly Sanchez are prosecuting this and related cases. Senior Fresno County Deputy District Attorney Dennis Lewis is prosecuting related cases in Fresno County Superior Court.

All defendants, except Lorenzo Amador are in custody. Amador is at large and a warrant for his arrest is outstanding. The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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.

SACRAMENTO, Calif. —Zaid Bader Jacob, 49, of West Sacramento, pleaded guilty today to receipt of child pornography, U.S. Attorney McGregor W. Scott announced.

According to court documents, between January and April 2015, Jacob used a computer to receive files depicting child pornography. Jacob was identified by law enforcement after they identified an IP address at Jacob’s residence that was making child pornography available over the internet via a peer-to-peer file sharing program.

This case is the product of an investigation by the Federal Bureau of Investigation and the Sacramento Internet Crimes Against Children (ICAC) Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant U.S. Attorney Shelley D. Weger is prosecuting the case.

Jacob is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on November 29, 2018. Jacob faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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

SACRAMENTO, Calif. — Denna Chambers, aka Denna Rice, 36, of Sacramento, formerly of Fairfield, was sentenced today by U.S. District Judge Morrison C. England Jr. to three years and one month in prison for a stolen identity tax refund fraud scheme, U.S. Attorney McGregor W. Scott announced.

According to court documents, between approximately January 2011 and June 2013, Chambers and co-defendant Starsheka Mixon, 35, of Pinole, conspired together and with others to fraudulently obtain tax refunds by filing false tax returns in the names of other people with the Internal Revenue Service. The tax returns included false statements about the taxpayers’ income, dependents, and occupations in order to obtain refunds and tax credits to which the taxpayers were not entitled, including the Earned Income Credit and the Additional Child Tax Credit. Some of the fraudulent tax returns used the name and personal information of individuals without their knowledge or consent.

The fraudulently obtained refunds were typically placed on prepaid debit cards controlled by Chambers, Mixon, or their associates. In their respective plea agreements in February 2018, Chambers and Mixon both admitted that in all, approximately 174 false federal income tax returns were filed seeking over $880,000 in tax refunds, of which approximately $477,348 was paid out by the IRS.

Judge England also ordered Chambers to serve two years of supervised release.  She was ordered to self-surrender on November 29, 2018, to begin serving her sentence.  Co-defendant Mixon was previously sentenced on August 9, 2018, to three years and one month in prison. 

This case was the product of an investigation by IRS Criminal Investigation. Assistant U.S. Attorney Shelley D. Weger prosecuted the case.

For 2018, the IRS, the states, and the private-sector tax industry are working together to identify and apply safeguards to better protect taxpayers and fight identity theft. You can find identity theft prevention and detection tips as well as victim assistance at:  https://www.irs.gov/identity-theft-fraud-scams/identity-protection.

SACRAMENTO, Calif. — Mark A. Richards, 49, of Sacramento, was sentenced today by U.S. District Judge Morrison C. England Jr. to 17 years and six months in prison to be followed by 10 years of supervised release for advertising child pornography, U.S. Attorney McGregor W. Scott announced.

According to court documents, in January 2018, Richards made child pornography available over a peer-to-peer file sharing network and provided passwords to undercover officers who asked him for access to his files. On two occasions, January 7, 2018, and January 11, 2018, those undercover officers in locations outside California obtained child pornography from Richards.

This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Matthew G. Morris prosecuted the case.

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

SACRAMENTO, Calif. — As part of the U.S. Attorney’s Office for the Eastern District of California’s strategy to reduce violent crime by focusing on firearms prosecutions, U.S. Attorney McGregor W. Scott announced the following cases involving illegal firearms offenses.

Kenneth Bryant, 27, of Sacramento, pleaded guilty today to dealing firearms without a license and illegally possessing a machine gun. According to court documents, Bryant met with an undercover agent and two confidential sources on 17 occasions between September 12, 2017, and December 8, 2017, and sold them a variety of firearms, including a fully automatic machine gun, several AR-15-type rifles and pistol, and handguns. In all, Bryant sold investigators 46 firearms, many of which lacked a serial number or other identifying markings. He is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on January 3, 2019.

Christopher Alexander Kemp, 29, of Sacramento, was sentenced today by U.S. District Judge Morrison C. England Jr., to seven years in prison for possessing a firearm as a felon. In April 2018, Kemp pleaded guilty to two counts of possessing a firearm as a felon.

These two cases are the product of an investigation by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, with special assistance from the Sacramento Police Department and the Sacramento County District Attorney’s Office’s Gangs, Hate Crimes, and Narcotics unit. 

John Allan Trotter, 36, of Sacramento, pleaded guilty today to possession of a firearm in furtherance of a drug trafficking offense. According to court documents, Trotter was arrested after leading Sacramento County Sheriff’s detectives on a high speed chase. Trotter crashed his car and ran from law enforcement officers before being apprehended. Trotter had a loaded gun, methamphetamine, and a scale in his car at the time of the crash. Trotter is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on January 10, 2019. This case is the product of an investigation by the Sacramento County Sheriff’s Department, the Sacramento County District Attorney’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Quinn Hochhalter is prosecuting the case.

Christopher Dyer, 34, of Rancho Cordova, pleaded guilty today to being a felon in possession of a gun. According to court documents, on May 3, 2018, sheriff’s deputies pulled alongside a pickup truck in which Christopher Dyer was the passenger. As soon as Dyer saw the deputies, he took a handgun from his lap and placed it in the back seat.  The deputies recovered a Glock 23 handgun with seven live rounds in the magazine during a subsequent search. A records check revealed that the gun was stolen. Dyer is a previously convicted felon and is prohibited from possessing a firearm. Dyer is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on December 13, 2018. This case is the product of an investigation by Bureau of Alcohol, Tobacco, Firearms and Explosives, the Sacramento County District Attorney’s Office, the Sacramento County Sheriff’s Office, and the Rancho Cordova Police Department. Assistant U.S. Attorney David Spencer is prosecuting the case.

A federal grand jury returned a one-count indictment today against Dustin Joseph Albini, 35, of West Sacramento, charging him with being a felon in possession of a firearm. In May of this year, Albini was charged in a separate indictment (2:18-cr-101 JAM) with assaulting a Bureau of Land Management law enforcement officer who was in the course of performing his official duties on July 8, 2015, in Modoc County. That case is pending. The current indictment charges Albini with possessing two firearms, a loaded .45-caliber Colt MK IV handgun and a loaded .40-caliber Glock 27 handgun. This case is the product of an investigation by the Federal Bureau of Investigation and the Sacramento County Sheriff’s Office. Assistant U.S. Attorneys Philip Ferrari and Matthew Thuesen are prosecuting the case.

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

The maximum statutory penalty for being a felon in possession of a firearm or for illegal possession of a machine gun is 10 years in prison and a $250,000 fine. The maximum statutory penalty for dealing firearms without a license is five years in prison and a $250,000 fine. The statutory penalty for possession of a firearm in furtherance of a drug trafficking offense is a mandatory minimum of five years in prison and a maximum of up to life in prison and a fine of up to $250,000.

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.

SACRAMENTO, Calif. — Claudia Humphrey, 62, of American Canyon, pleaded guilty today to theft of public money and falsifying records in a federal investigation, U.S. Attorney McGregor W. Scott announced.

According to court documents, Humphrey was the executive director of LIFT3 Support Group Inc., a non-profit organization in Fairfield that offered transitional shelter assistance and other services to victims of sexual assault, domestic violence, and dating violence, primarily serving residents in Solano County. Humphrey, through LIFT3, sought and received federal grants from the Department of Justice, Office on Violence Against Women (OVW) in 2011 and 2012. Humphrey caused to be transferred over $270,000 in grant money that was to be used only for assisting victims of domestic violence into her own bank accounts, and she used over $50,000 of the funds on personal expenses such as travel, shopping, and payments to her family members, among other things.

According to court documents, between October 2014 and August 2015, in an effort to conceal her embezzlement of federal funds, Humphrey obstructed the efforts of the OVW audit of LIFT3. Humphrey falsified purchase documents showing that computers were purchased, and she altered and falsified expense ledgers and time sheets.

This case is the product of an investigation by the Department of Justice Office of the Inspector General. Assistant United States Attorney Todd A. Pickles is prosecuting the case.

Humphrey is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on January 3, 2019 at 9:30 a.m. Humphrey faces a maximum statutory penalty of 10 years in prison for theft of public money, and 20 years in prison for falsifying a record in a federal investigation. Additionally, Humphrey faces a fine of $250,000 or twice the gross loss or gain. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — The U.S. Attorney’s Office has teamed up with the Drug Enforcement Administration, the Sierra Sacramento Valley Medical Society, the Sacramento County Opioid Coalition, the U.S. Department of Health and Human Services, and Sacramento State University, to host a daylong conference focused on finding and implementing solutions to the opioid and narcotics epidemic.

U.S. Attorney Scott stated: “Today’s Opioid Awareness Summit brings educators, treatment professionals and law enforcement together to address one of the most urgent law enforcement and public health challenges facing our country today. Law enforcement’s efforts to remove illicit drugs from our streets are insufficient on their own; we need the help of all our partners. This summit highlights the our office’s ongoing commitment to working together to erase the menace of drug addiction and overdose deaths from our communities and to ensure a brighter future for all Americans.”

“DEA is committed to ending the opioid crisis occurring in our communities and preventing prescription drug misuse,” said DEA Assistant Administrator John Martin. “This summit presents a unique opportunity for government agencies and community partners to come together to discuss solutions to this complex issue and work together to reduce the illegal use and sale of opioids across the country.”

“The Sierra Sacramento Valley Medical Society provides ongoing safe prescribing education to physicians, encourages complimentary methods of pain management as appropriate, and works proactively to increase access to naloxone. We are proud to sponsor and participate in the important educational event,” said Aileen E Wetzel, CEO, SSVMS.

Sacramento State’s Pharmacist in Charge Janet Dumonchelle stated: “Sac State is proud to be part of this historic collaborative effort to educate and to call to action our Sacramento community and government partners in combating this epidemic. We will not be able to solve this epidemic today, but we can solve it together.”

 “The opioid epidemic is a serious and challenging public health problem,” said Dr. Olivia Kasirye, Sacramento County Public Health Officer. “In 2016 when Sacramento County faced a crisis with counterfeit fentanyl pills being sold on the street, it took a collaborative effort including Public Health, the hospitals and medical community, law enforcement and service providers to end that crisis; we need to sustain that collaborative effort as a community to turn the tide on the opioid epidemic.”

Wednesday’s agenda focuses on three aspects: law enforcement efforts, treatment, and prevention solutions. During the first part of the day, the U.S. Attorney and Drug Enforcement Administration officials will discuss national and local trends, U.S. Department of Justice policy, and current enforcement efforts aimed at reducing the illegal use and sale of opioids in our communities.

Drawing on his extensive experience as a Special Agent with the Drug Enforcement Administration, and more recently his service as the Assistant Administrator of the Diversion Control Division of the DEA, John Martin will outline the scope of the national opioid epidemic, with particular attention to heroin, fentanyl and other synthetic opioids. He will discuss in detail the DEA’s coordinated law enforcement response to the crisis, including both clandestine and diverted opioid supply chains and other DEA efforts.

During the second half of the day, physicians will discuss safer prescribing practices, complementary pain management techniques, and medication-assisted treatment programs. Industry experts will cover best practices for the treatment and prevention of opioid abuse. Edward Heidig, Regional Director, U.S. Department of Health and Human Services will speak about the U.S. Health and Human Services’ policy priorities in the area of opioid abuse and prevention.

FRESNO, Calif. — U.S. District Judge Dale A. Drozd sentenced Adam Alan Henry, 39, of Turlock, today to 20 years in prison to be followed by 15 years of supervised release, for child exploitation offenses, U.S. Attorney McGregor W. Scott announced.

During the supervised release, Henry will be required to register as a sex offender, and his access to minors, the internet, and computers will be restricted. He was also ordered to pay $2,500 and $500 in restitution to two victims whose images Henry obtained.

On November 17, 2017, a federal jury in Fresno found Henry guilty of conspiring to sexually exploit a minor and receiving child pornography. According to court documents and evidence produced at trial, from May 2012 until September 19, 2013, Henry conspired with another person to create video and still images of a minor engaged in sexually explicit conduct. From 2007 through September 2013, Henry used a file-sharing program to receive child pornography.

This case was the product of an investigation by the Ceres Police Department with assistance from Federal Bureau of Investigation. Assistant U.S. Attorneys David L. Gappa and Ross Pearson prosecuted the case.

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

SACRAMENTO, Calif. — Shonda Mayshack, 42, of Sacramento, pleaded guilty today to theft of government property, U.S. Attorney McGregor W. Scott announced.

According to court documents, in April 2000, the Social Security Administration (SSA) began paying disability benefits to Mayshack’s grandmother. When the grandmother died in May 2001, Mayshack did not report it to SSA, and SSA continued to mail benefit checks to the grandmother’s address where Mayshack lived. Between May 2001 and February 2017, Mayshack stole approximately $247,933 of her grandmother’s Social Security benefits for her own use, knowing that she was not entitled to the benefits. For example, she fraudulently endorsed her grandmother’s signature on the back of benefit checks and cashed or deposited them into her own bank account. She also called SSA and posed as her grandmother to update her address so that SSA would continue sending the benefits.

This case is the product of an investigation by the Office of the Inspector General Social Security Administration. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.

Mayshack is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on November 26, 2018. Mayshack 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.

SACRAMENTO, Calif. —Ricky Lee Richardson Jr., 42, of Stockton, was sentenced today my U.S. District Judge Troy L. Nunley to 11 years and three months in prison for sex trafficking of a child, U.S. Attorney McGregor W. Scott announced.

According to court documents, in November 2011, Richardson recruited a minor victim to engage in sex acts for money. Between December 2011 and March 2012, Richardson caused the then 16-year-old victim to engage in commercial sex acts in Stockton and elsewhere in Northern California. Richardson arranged for photos to be taken of the victim and he posted prostitution advertisements on the internet that contained nude photos of the victim. Richardson drove the victim to motels and gave her false identification cards that she used to rent rooms for the prostitution activity. Richardson took the money that the victim obtained from that activity.

This case was the product of an investigation by the Federal Bureau of Investigation with assistance from the Stockton Police Department. Assistant U.S. Attorney Brian A. Fogerty prosecuted the case.

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

SACRAMENTO, Calif. —Toni Teresi, 75, of Sacramento, pleaded guilty today to theft of government property, U.S. Attorney McGregor W. Scott announced.

According to court documents, Teresi’s mother received divorced-spouse Social Security benefits following the ex-husband’s death in 1963. Teresi and her mother held a joint bank account where the Social Security Administration (SSA) deposited the mother’s monthly benefits. The mother was entitled to these benefits until her death on February 24, 1987. Teresi did not report her mother’s death to SSA, and SSA continued to deposit the mother’s benefit funds to the joint account from February 1987 to March 2014. Over this 27-year period, SSA paid approximately $247,236 to the joint account. During this period, Teresi stole the Social Security benefits for her own use, knowing that she was not entitled to the benefits.

This case is the product of an investigation by the Office of the Inspector General, Social Security Administration. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.

Teresi is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on December 13, 2018. Teresi 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.

FRESNO, Calif. — U.S. Attorney McGregor W. Scott is pleased to announce two winners of the Eastern District of California Law Enforcement Awards, recognizing the outstanding professionalism and dedicated public service of our local and state law enforcement partners. These awards, presented annually to a law enforcement agency and an officer in each of the Sacramento and Fresno divisions of the Eastern District of California, recognize outstanding collaboration between federal, state, and local law enforcement in addressing public safety issues in this region.

The winner of the Fresno division’s Outstanding Investigator Award is Detective Robert Pair of the Bakersfield Police Department for his outstanding work as case agent for Operation Blind Mice, a multi-agency investigation into Bakersfield’s West Side Crips gang.  Detective Pair was instrumental in obtaining federal indictments against 11 West Side Crips members or associates as well as state charges against approximately 30 individuals for crimes ranging from burglary to murder.  He helped draft wire applications, monitored wires, and conducted associated investigations.  As a member of the Bakersfield Police Department’s gang squad, Detective Pair brought an extensive knowledge of the West Side Crips gang to the investigation that the other investigators relied upon repeatedly.

The winner of the Fresno division’s Outstanding Law Enforcement Agency Award is the Fresno County District Attorney’s Office for its contributions to law enforcement in the Central Valley.  In recent years, that office and the U.S. Attorney’s Office have worked together closely as partners to tackle the violent gang problem in Fresno County, including MS-13, as well as on other major cases and outreach efforts.  Not only is the Fresno County District Attorney’s Office a reliable partner in Project Safe Neighborhood, a national program to reduce violent crime, it has been an effective partner in investigating and prosecuting child pornography and sexual exploitation cases.

U.S. Attorney Scott stated, “Both winners of this year’s award have demonstrated a deep commitment to collaborating with our office and other federal, state and local partners to work toward the mutual goal of public safety. Detective Pair’s tireless work has made Bakersfield a safer place for its residents. The open lines of communication between our office and the District Attorney’s Office have ensured that our violent-crime fighting efforts are maximized.  We are grateful to their continued partnership in our joint effort to make Fresno County a safer place to live.”