Eastern District of California

FRESNO, Calif. — Two Bakersfield residents were arrested today for their for their roles in a conspiracy to sell California driver’s licenses to unqualified drivers, U.S. Attorney McGregor W. Scott announced.

On March 15, 2018, a federal grand jury returned a 13-count indictment against Paramjit Singh Mangat, 54, and Javier Jesus Hernandez-Herrera, 54, charging them with criminal conspiracy, six counts of unlawful production of an identification document, and six counts of unlawful transfer of an identification document.

According to court documents, Mangat operated driving schools in Bakersfield that ostensibly provided training to those seeking to obtain driver licenses, including Akal Truck Driving School and Akal Driving School. When students had difficulty passing DMV examinations, in return for money, Mangat offered to assist them in obtaining fraudulently issued, yet official licenses through Mangat’s contact, Herrera, a DMV employee.

From approximately June 2012 through August 24, 2016, Mangat conspired with Herrera, a Licensing Registration Examiner at a DMV office in Bakersfield. In return for monetary payment, Herrera agreed to access the students’ DMV records and alter the records to reflect that the individual had passed DMV written and/or behind-the-wheel examinations, when, in fact, the individual had not passed one or more required DMV tests. Herrera’s alteration of the records resulted in the DMV issuing a California driver’s license and mailing it to that individual. The indictment also charges the unlawful production and transfer of six specific commercial licenses.

This case is the product of an investigation by the Department of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the California Department of Motor Vehicles, Investigations Division Office of Internal Affairs. Assistant U.S. Attorneys Henry Z. Carbajal III and David L. Gappa are prosecuting the case.

If convicted, Mangat and Herrera face a maximum statutory penalty of five years in prison and a $250,000 fine for the conspiracy charge and a maximum statutory penalty of 15 years in prison and a $250,000 fine for each of the charges of unlawful production and transfer of identification documents. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — Roger Shane John, 32, of Turlock, pleaded guilty today to aiming the beam of a laser pointer at a Stanislaus County Sheriff’s Department helicopter, U.S. Attorney McGregor W. Scott announced. 

According to court documents, on the evening of October 22, 2017, John struck a Stanislaus County Sheriff’s helicopter, Air 101, five to six times with a powerful green laser, causing visual interference of both the pilot and tactical flight officer and disrupting an air support response to a domestic violence call. The laser strikes occurred within the FAA‑designated laser-free zone of the Modesto Airport. In pleading guilty, John admitted he knew that shining a laser at an aircraft is illegal. An examination of John’s laser revealed that it emitted 85 milliwatts (mW) of power and is 17 times more powerful than what is legally permissible for handheld laser devices. The FDA, which regulates handheld laser devices, has found that such power emission is dangerous and can cause either temporary visual effects or an eye injury.

This case is the product of an investigation by the Federal Bureau of Investigation, Stanislaus County Sheriff’s Department, and Modesto Police Department. Assistant U.S. Attorney Karen Escobar is prosecuting the case.

John is scheduled for sentencing by U.S. District Judge Dale A. Drozd on June 11, 2018, in federal court in Fresno. He faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — Alfredo Cardenas-Suastegui (Cardenas), 57, of Michoacán, Mexico, was sentenced today to five years in prison for conspiring to manufacture, distribute and possess with intent to distribute marijuana in the Sequoia National Forest, U.S. Attorney McGregor W. Scott announced. U.S. District Judge Lawrence J. O’Neill also ordered Cardenas to pay $5,233 in restitution to the U.S. Forest Service for the damage to public land and natural resources.

Cardenas pleaded guilty on October 2, 2017. According to the plea agreement, for four months, Cardenas tended to 3,850 marijuana plants at an area known as the “Box 6” grow site in the Sequoia National Forest in Kern County. Co‑defendants Sair Maldonado-Soto, 22, and Coral Herrera, 21, both of Perris, Riverside County, supplied material, equipment, and personnel to Box 6 and to a grow site in the Lucas Creek drainage with a total of 10,396 marijuana plants for both sites. Maldonado-Soto and Herrera were also responsible for transporting Cardenas and co‑defendant Abel Toledo‑Villa, 35, of Michoacán, Mexico, away from the Box 6 grow site after it was raided. A rifle, ammunition, and processed marijuana were seized from the vehicle occupied by the four defendants as it drove away from the Box 6 grow site.

The marijuana cultivation operations at both sites caused extensive damage to the land and natural resources. Toxic pesticides and fertilizers, miles of plastic irrigation lines, and large amounts of trash were found at both sites. Native trees and vegetation were also removed to make room for the marijuana plants.

Maldonado-Soto was sentenced to three years and four months in prison, Herrera was sentenced to five years of probation, and Toledo-Villa was sentenced to five years in prison.

This case was the product of an investigation by the U.S. Forest Service, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) , Southern Tri-County High Intensity Drug Trafficking Area (HIDTA) task force, California Department of Justice’s Campaign Against Marijuana Planting (CAMP), California Department of Fish and Wildlife, Kern County Sheriff’s Office, Riverside County Sheriff’s Department, Fontana Police Department, and Victorville Police Department. Assistant United States Attorney Karen Escobar prosecuted the case.

SACRAMENTO, Calif. — U.S. District Judge Garland E. Burrell Jr. sentenced Koryun Hakobyan, 64, of Glendale, to two years in prison for his role as a straw buyer in a mortgage fraud scheme, U.S. Attorney McGregor W. Scott announced.

According to court documents, Hakobyan was recruited to act as a purchaser of a house in Carmichael. Hakobyan signed the loan application that was prepared for him, although he knew that the information in the application was false. Based on the false information about Hakobyan’s income, assets, employment and intent to occupy the house on July 3, 2007, the lender agreed to 100 percent financing and wired approximately $824,000 to buy the house.

Hakobyan never lived in the house, and instead, another person moved in. Two months after the purchase, Hakobyan applied for a $200,000 Home Equity Line of Credit based on a fraudulent application that misrepresented his length of ownership, his employer, gross monthly income and the outstanding loan balance. Once Hakobyan received the HELOC, he withdrew the money and transferred most of it to his daughter and son-in-law.

Because of Hakobyan’s fraudulent loan applications, banks lent more than a million dollars, and when he defaulted, the lenders lost approximately $580,000.

This case was the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant U.S. Attorney Lee S. Bickley prosecuted the case.

SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment today against Thomas Wayne Capenhurst, 33, of Dixon, and Robert Lee McGraw, 20, of Fairfield, charging both men with conspiracy, malicious use of explosive materials, and using a destructive device during a crime of violence, U.S. Attorney McGregor W. Scott announced. The indictment also charges McGraw with possessing an unregistered destructive device.

According to court documents, Capenhurst offered to pay McGraw and another man $10,000 each to place pipe bombs at his brother’s house in Suisun City. According to the complaint, Capenhurst gave McGraw three homemade pipe bombs and directed him to “try to knock the house down.”

The complaint alleges that on February 17, 2018, McGraw walked to the front door of a home on Blue Jay Drive in Suisun City, just before 1:00 a.m., and set one of the pipe bombs on the front porch. According to the complaint, McGraw lit the fuse, banged on the front door, and then ran. Afterwards, the pipe bomb detonated and blew the front door off its hinges. Law enforcement found pieces of metal shrapnel lodged in the home’s exterior walls, and windows broken nearby. Court documents state that a family of five was active inside the home, having just returned from a trip to the Bay Area.

This case is the product of an investigation by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Federal Bureau of Investigation’s Solano County Violent Crimes Task Force, and the Suisun City Police Department. Special assistance was provided by the Dixon Police Department, Fairfield Police Department, Vacaville Police Department, Vallejo Police Department, Benicia Police Department, the Solano County Sheriff’s Office, and the California Highway Patrol. 

If convicted of malicious use of explosive materials, Capenhurst and McGraw both face a penalty of not less than five years, and up to 20 years, in prison, and a $250,000 fine. If convicted of using a destructive device during a crime of violence, each defendant faces a penalty of not less than 30 years in prison, up to life, and a $250,000 fine. If convicted of conspiracy, Capenhurst and McGraw face a maximum penalty of five years in prison and a $250,000 fine. If convicted of possessing an unregistered destructive device, McGraw faces a maximum statutory penalty of 10 years in prison and a $10,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Julian Aispuro Jr., 33, of Los Angeles; Abel Gregory Castro, 29, of Torrance; and Tauri Dolores Valera, 32, of San Pedro, charging them with conspiring to distribute methamphetamine and heroin and possession with the intent to distribute both methamphetamine and heroin, U.S. Attorney McGregor W. Scott announced. Additionally, Castro and Valera were charged with possession of a firearm in furtherance of a drug trafficking offense.

According to court documents, Aispuro arranged to sell methamphetamine, black tar heroin, and china white heroin to two people, one of whom was an undercover officer. On February 21, 2018, Aispuro arrived at the prearranged meeting spot. Castro and Valera arrived separately with approximately 28.9 pounds of methamphetamine and 1.3 pounds of china white heroin in the trunk as well as a loaded .38-caliber Smith and Wesson revolver in plain view on the back seat.

This case is the product of an investigation by the Fresno Methamphetamine Task Force, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), California Department of Justice’s Special Investigation Team, California Highway Patrol, Fresno County Sheriff’s Office, and Tulare County Sheriff’s Office. Assistant U.S. Attorney Laurel J. Montoya is prosecuting the case.

If convicted, Aispuro faces a statutory penalty of a minimum of 10 years to life years in prison and a $10 million fine. If convicted, Castro and Valera face a statutory penalty of a minimum of 15 years to life years in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Jeremy Solima, 41, of Stockton, was sentenced Thursday by U.S. District Judge Morrison C. England Jr. to eight years and four months in prison for being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.

According to court documents, on July 22, 2017, officers conducted a probation search of Solima’s residence and found a stolen assault rifle, a pistol, six high‑capacity magazines, three gun barrels, six boxes of ammunition, gun scopes, and other miscellaneous gun pieces. He said he purchased the firearms from the dark web marketplace AlphaBay, and he intended to sell them in Stockton. Solima, who had been previously convicted of several felonies, was prohibited from possessing or selling firearms.

Dark web marketplaces are operated on computer networks designed to conceal the true Internet Protocol address of the computers accessing the network. Dark web marketplaces allow for payments to be made only in the form of digital currency, most commonly in Bitcoin. AlphaBay was shut down by law enforcement in July 2017.

This case is a product of the Project Safe Neighborhoods (PSN) initiative and joint investigations by the Stockton Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. PSN brings together federal, state and local law enforcement to combat gun and gang crime. PSN aims to incapacitate chronic violent offenders and deter potential gun offenders through increased federal prosecution. Assistant U.S. Attorney Cameron L. Desmond prosecuted the case.

SACRAMENTO, Calif. —Marc Christopher Turner, 44, of Sacramento, pleaded guilty today to receipt of child pornography, U.S. Attorney McGregor W. Scott announced.

According to court documents, law enforcement agents searched Turner’s apartment in September 2016. Review of Turner’s computer located 90 videos and 171 still images depicting the sexual abuse and exploitation of minors. At the time of the search, Turner was a registered sex offender based on a prior conviction in federal court in Sacramento for distributing child pornography.

This case was investigated by the Sacramento Internet Crimes Against Children (ICAC) Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant U.S. Attorney Matthew G. Morris is prosecuting the case.

Turner is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on May 31, 2018. Turner faces a maximum statutory penalty of 40 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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

SACRAMENTO, Calif. — Rafael Pahua Martinez, 41, a Mexican national residing in Orland, was sentenced Thursday by U.S. District Judge Morrison C. England Jr. to 21 years in prison for conspiring to distribute methamphetamine, U.S. Attorney McGregor W. Scott announced.

According to court documents, during a year-long investigation, Martinez, the principal target of that investigation, imported large quantities of methamphetamine from Southern California and then distributed them throughout the Eastern District of California and to other states.

 Between September 2014 and July 2015, two undercover agents made four purchases of methamphetamine from Martinez and his couriers. These purchases occurred in Shasta and Tehama counties and totaled less than one pound. In each case, the agent negotiated the price with Martinez, who then sent one of his employees to execute the transaction in a public parking lot.

On two other occasions, Martinez used couriers to take cash to Southern California and return to Tehama County with methamphetamine. The first of these deliveries was completed on June 6, 2015, and brought 14 kilograms of methamphetamine into the Eastern District of California. In the second delivery, completed on about June 14, 2015, Martinez paid $88,200 for 10 kilograms of methamphetamine, which his courier delivered into the district.

Law enforcement officers arrested Martinez on July 7, 2015, in Orland. They seized $49,500 from Martinez and his car. He had intended to use nearly all of this this money to purchase additional methamphetamine.

This case was the product of an investigation by the Drug Enforcement Administration, the California Highway Patrol, the Tehama Interagency Drug Enforcement (TIDE) Task Force, and the Shasta Interagency Narcotic Task Force. Assistant United States Attorneys Paul A. Hemesath and Amanda Beck prosecuted the case.

SACRAMENTO, Calif. —Derek Swede Godfrey, 48, formerly of Rocklin, pleaded guilty today to 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.

This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Matthew G. Morris is prosecuting the case.

Godfrey is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on June 7, 2018. Godfrey 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.

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. — Rojelio Martin, 36, of Tulare, pleaded guilty today to making false statements to a U.S. Probation Officer, U.S. Attorney McGregor W. Scott announced.

According to court documents, on May 20, 2013, Martin was sentenced to 33 months in prison and a three-year term of supervised release following his convictions on 10 counts of wire fraud. The convictions resulted from when Martin (then a licensed tax preparer) and codefendant Roberto Olivares fraudulently prepared personal tax returns for clients of “Success Income Tax Services,” a Tulare-based business Martin and Olivares formed and operated. The judgement against Martin required him to pay $44,860 in restitution.

Beginning in April 2017, Martin failed to make the court-ordered restitution payments. In support of his claim that his health-related absences from work prevented him from paying restitution, on or about December 13, 2017, Martin gave his supervising U.S. Probation Officer a fraudulent and forged letter from his doctor and a fraudulent statement of earnings.

This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant U.S. Attorney Christopher D. Baker is prosecuting the case.

Martin is scheduled to be sentenced by Chief U.S. District Judge Lawrence J. O’Neill on June 4, 2018. Martin faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. —Maria Victoria Perez-Vasquez, 32, a citizen of Mexico residing in Fresno, was sentenced today by Chief U.S. District Judge Lawrence J. O’Neill to 15 months in prison for conspiracy to transfer, possess, and sell false identification documents, U.S. Attorney McGregor W. Scott announced.

According to court documents, between June 2015 and June 2016, Perez-Vasquez conspired with others to sell fraudulent identification documents, including social security cards and alien registration receipt cards, to customers who placed orders and paid as much as $150 for a set of the fraudulent documents.

This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the California Department of Motor Vehicles, Investigations Division. Assistant U.S. Attorney Christopher D. Baker is prosecuting the case.

On June 16, 2016, Perez-Vasquez and five co-defendants, all citizens of Mexico, were arrested for the scheme. Four of the other co-defendants pleaded guilty and have been sentenced. Charges are pending against the remaining co-defendant, Fidel Vasquez-Velazquez, who is a fugitive following his failure to appear in court for a bond forfeiture hearing on August 22, 2016. The charges against him are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — Rosario Beltran-Leal, aka Jose Luis Aguilar, aka Dagoberto Suarez (Beltran), 44, of Sinaloa, Mexico, was sentenced today to four years and nine months in prison for conspiring to manufacture, distribute and possess with intent to distribute marijuana in the Giant Sequoia National Monument in Tulare County in the Sequoia National Forest, U.S. Attorney McGregor W. Scott announced.

According to court documents, on April 28, 2018, Beltran was found bringing over 31,000 marijuana seeds to a cultivation site in a remote area closed to the public in the Giant Sequoia National Monument. He was also in possession of a large quantity of food and cultivation supplies, including 100 hose connectors. In pleading guilty, Beltran acknowledged that he had delivered food supplies to marijuana growers in the same area in 2016. The irrigation system from the previous year was intact. Native vegetation and trees had also been trimmed to make room for the marijuana plants and water had been diverted from a tributary of Mill Creek.

This case was the product of an investigation by the U.S. Forest Service, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), California Department of Fish and Wildlife, and Tulare County Sheriff’s Office. Assistant U.S. Attorney Karen Escobar prosecuted the case.

FRESNO, Calif. — Raul Cardenas-Solis (Cardenas), 31, a citizen of Michoacán, Mexico, pleaded guilty today to conspiring to cultivate marijuana on public land, U.S. Attorney McGregor W. Scott announced.

According to court documents, Cardenas was found checking irrigation lines at a marijuana cultivation site in the North Meadow Creek area in Tulare County in the Sequoia National Forest. Law enforcement officers found 10,488 marijuana plants at the site where Cardenas resided. The cultivation operation caused extensive damage to the land and natural resources as a result of deforestation, pesticide and fertilizer use, the diversion of natural water sources, and trash disposal. Cardenas has agreed to pay $11,195 in restitution to the U.S. Forest Service to clean up the area damaged by the cultivation operation.

This case is the product of an investigation by the U.S. Forest Service with assistance from the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.

Cardenas is scheduled to be sentenced by Judge Dale A. Drozd on June 4, 2018. Cardenas faces a minimum statutory penalty of 10 years in prison, a maximum statutory penalty of life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — Seth Adam Depiano, 36, of Clovis, pleaded guilty today to mail fraud, wire fraud and money laundering in connection with a real estate investment Ponzi scheme, U.S. Attorney McGregor W. Scott announced.

According to court documents, Depiano operated a Ponzi scheme that lured real estate investors to give money to Depiano and the businesses he controlled, including The Rental Group, US Funding and Home Services LLC, and Draymond Homes. Depiano fraudulently promised investors that he would use their money to purchase residential properties and either manage the properties for rental income or arrange for them to be renovated and resold. In many cases, Depiano promoted the properties to investors with documents that falsely represented high occupancy rates. Depiano oftentimes had no authority to purchase or sell the properties and misled investors with fraudulent documents misrepresenting the properties’ ownership. Some of the properties Depiano marketed to investors did not even exist.

Depiano frequently used the investors’ money to pay his personal expenses, fund his gambling activities, and finance the settlement of the investors’ civil lawsuits against Depiano. He also paid investors purported rental income that, in fact, was money other investors gave to Depiano for investment purposes.

In his plea agreement, Depiano admitted to defrauding investors of approximately $24 million dollars and agreed to pay restitution to approximately 28 investors. Depiano also agreed to forfeit more than $700,000 seized from several bank accounts and cash, and a baseball card collection valued at more than $31,000.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Christopher D. Baker is prosecuting the case.

Depiano is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on May 29, 2018 at 1:30 p.m. Depiano faces a maximum statutory penalty of 20 years in prison for the mail fraud and wire fraud charges, ten years in prison for money laundering, 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. — On Wednesday, March 7, 2018, McGregor W. Scott was confirmed by the U.S. Senate to be the U.S. Attorney for the Eastern District of California. He was been nominated for the position by President Donald J. Trump.

Mr. Scott was sworn in as the Court-appointed U.S. Attorney on December 29, 2017. He returned to the position he held from 2003 to 2009 when he was appointed U.S. Attorney by President George W. Bush.

Mr. Scott received his B.A. from Santa Clara University in 1985 and his J.D. from Hastings College of the Law, University of California, in 1989. He served as a deputy district attorney from 1989 to 1997 in Contra Costa County, California, and served as the elected District Attorney of Shasta County, California, from 1997 to 2003. After completing his first term as U.S. Attorney, Mr. Scott practiced as a partner with the law firm of Orrick, Herrington, & Sutcliffe LLP, focusing on white collar criminal defense and corporate investigations. In addition, Mr. Scott retired in 2008 from the U.S. Army Reserve as a lieutenant colonel after 23 years of service.

The U.S. Attorney serves as the chief federal law enforcement officer for the Eastern District of California and is responsible for prosecuting federal criminal cases and representing the United States in civil litigation. The Eastern District covers 34 counties throughout the Central Valley and the Sierras, from the Oregon border in the north to the Los Angeles County line in the south. The office has 92 attorneys and 81 non-attorney staff with offices in Sacramento, Fresno, and Bakersfield.

“I am humbled and honored to be appointed by the president to lead the committed men and women in this outstanding office. I look forward to working with them and our law enforcement partners to keep our communities safe, to safeguard the Treasury, and to provide the United States with the highest quality legal representation in all the matters we handle,” U.S. Attorney Scott said.

SACRAMENTO, Calif. — A federal grand jury returned an 18-count indictment today against Shawn Darrell Wilson, 27, of Sacramento, charging him with dealing firearms without a license, possessing a firearm as a felon, and illegal possession of a machine gun, U.S. Attorney McGregor W. Scott announced.

According to court documents, Wilson 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 pistols, and handguns. In all, Wilson sold investigators 46 firearms, many of which lacked a serial number or other identifying markings. Wilson is prohibited from possessing firearms based on a prior felony conviction.

This case is 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. 

If convicted of dealing firearms without a license, Wilson faces a maximum penalty of five years in prison and a $250,000 fine. The maximum penalty for possessing a firearm as a felon and illegal possession of a machine gun is 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Kmart Corporation has paid $525,000 to resolve allegations that it violated the federal False Claims Act when it knowingly submitted claims for reimbursement to California’s Medi‑Cal program that were not supported by applicable diagnosis and documentation requirements, U.S. Attorney McGregor W. Scott announced today.

Kmart is an Illinois corporation that provides pharmacy services in several states with approximately a half dozen locations in California over the relevant time period. The Medi-Cal program is administered by the California Department of Health Care Services (DHCS) and relies on both federal and state funding to provide health care to millions of Californians, including those with low incomes and disabilities.

Medi-Cal utilizes a formulary list, commonly known as “Code 1” drugs, which designates certain restrictions for each listed drug, including restrictions pertaining to diagnoses. Medi-Cal will reimburse certain Code 1 drugs only for approved diagnoses, taking into account criteria such as the drug’s safety, efficacy, misuse potential, and cost. Pharmacies serve the critical gatekeeping function of confirming and certifying that these Code 1 drugs are dispensed for the approved diagnoses. Kmart may bill for drugs prescribed outside of the approved diagnoses only if it submits a request to DHCS that includes a justification for the non‑approved use. Today’s settlement resolves allegations that Kmart failed to confirm and document the requisite diagnoses, and in some instances dispensed drugs for non-approved diagnoses, then knowingly billed Medi-Cal for these prescriptions.

The allegations resolved by this settlement were first raised in a lawsuit filed against Kmart under the qui tam, or whistleblower, provisions of the False Claims Act by a pharmacist who worked as Pharmacist in Charge at a California Kmart location. The False Claims Act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery. The whistleblower in this matter will receive approximately $96,500 of the recovery proceeds.

This settlement is the result of a joint effort by the United States Attorney’s Office for the Eastern District of California and California’s Bureau of Medicaid Fraud and Elder Abuse. Assistant U.S. Attorney Catherine J. Swann handled the matter for the United States, with assistance from the Department of Health and Human Services, Office of Inspector General, and the Federal Bureau of Investigation. The claims settled by this agreement are allegations only, and there has been no determination of liability.

SACRAMENTO, Calif. — Ronald C. Simmons, 76, of Colusa, pleaded guilty on Tuesday to two misdemeanor counts: unlawful baiting and unlawful taking of a migratory game bird, in violation of the Migratory Bird Treaty Act. He was immediately sentenced by U.S. Magistrate Judge Edmund F. Brennan and ordered to pay a $7,500 fine.

According to court documents, on October 21, 2017, opening day of waterfowl season in the Sacramento Valley, Simmons and his invited guests shot and killed 16 wood ducks over a baited cornfield at Butte Creek Farms. Simmons, who managed a field on the Colusa County property, had previously rolled unharvested cornstalks and intentionally spread corn kernels onto the field as bait for wood ducks, a migratory bird, for the purpose of ensuring a successful waterfowl hunting season. Exposed and scattered corn kernels can lure and attract migratory birds. According to the Migratory Bird Treaty Act, it is unlawful to hunt migratory birds using bait.

This case was the product of an investigation by the U.S. Fish and Wildlife Service. Special Assistant U.S. Attorney Erica L. Anderson prosecuted the case.

FRESNO, Calif. — Sair Maldonado-Soto (Maldonado), 22, of Perris, was sentenced today to three years and four months in prison for conspiring to manufacture, distribute and possess with intent to distribute marijuana in connection with two separate large-scale marijuana cultivation operations in Kern County in the Sequoia National Forest, U.S. Attorney McGregor W. Scott announced. Maldonado was also ordered to pay $10,756.02 to the U.S. Forest Service for the damage to public land and natural resources caused by the marijuana cultivation activities.

In September, Maldonado pleaded guilty to the conspiracy after he and his girlfriend and co-defendant, Coral Herrera, 21, also of Perris, were linked to grow sites in the Lucas Creek drainage and an area known as the Box 6 site following a four-month investigation. The investigation revealed that they were supplying material, equipment, and personnel to the two grow sites, which consisted of 10,396 marijuana plants. They were also responsible for transporting co-defendants Abel Toledo-Villa, 34, and Alfredo Cardenas-Suastegui, 56, both of Mexico, away from the Box 6 grow site after it was searched.

The marijuana cultivation operations caused extensive damage to the land and natural resources. Highly toxic pesticides were found at both sites and at Maldonado’s residence in Perris. Many miles of plastic irrigation lines were spread throughout the sites. Native trees and vegetation were also removed to make room for the marijuana plants.

The remaining three defendants have pleaded guilty. Toledo-Villa has been sentenced to five years in prison. Herrera and Cardenas-Suastegui are scheduled for sentencing on January 22 and February 12, 2018. Cardenas-Suastegui faces a statutory mandatory minimum penalty of five years in prison and a maximum penalty of 40 years in prison, and a $5 million fine. Herrera faces a maximum penalty of 20 years in prison and a fine of $1 million. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

This case is the product of an investigation by the U.S. Forest Service, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Southern Tri-County High Intensity Drug Trafficking Area (HIDTA) Task Force, California Department of Justice’s Campaign Against Marijuana Planting (CAMP), California Department of Fish and Wildlife, Kern County Sheriff’s Office, Riverside County Sheriff’s Department, Fontana Police Department, and Victorville Police Department. Assistant U.S. Attorney Karen Escobar is prosecuting the case.

FRESNO, Calif. — Michael Vincent Alvarez, 32, of Fresno, pleaded guilty today to striking Air-1, a Fresno Police Department helicopter, with a green laser beam, U.S. Attorney McGregor W. Scott announced.

According to court documents, on October 22, 2017, Alvarez struck a Fresno Police helicopter several times with a powerful green laser. The laser caused visual interference of the Tactical Flight Officer and disrupted an air support response to a domestic violence call. Alvarez was driving a vehicle on Highway 99 when he allegedly pointed the laser at the helicopter and tracked and struck it. When ground units were called to apprehend Alvarez, he drove through the streets of Fresno at a high rate of speed, eluding officers for several miles until he crashed into the center divider at First Street and Floradora Avenue. Following the crash, Alvarez ran into a residential area, jumping several fences until he was arrested in a backyard. A green laser pointer that officers found inside the driver side door pocket of Alvarez’s vehicle had a danger warning on it.

Alvarez is scheduled for sentencing on May 21, 2018, before U.S. District Judge Dale A. Drozd. Alvarez is facing a five-year sentence and a fine of $250,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

This case is the product of an investigation by the Federal Bureau of Investigation and Fresno Police Department. Assistant U.S. Attorney Karen Escobar is prosecuting the case.

SACRAMENTO, Calif. — A federal grand jury returned a 16-count indictment today against Jesus Rodriguez, 22, and James Raymond Sykes, 23, both of Sacramento, charging them with dealing firearms without a license and conspiring to do the same, U.S. Attorney McGregor W. Scott announced. The indictment also charges Rodriguez with possessing an unregistered and unserialized short-barreled rifle, and distributing methamphetamine and cocaine.

According to court documents, Rodriguez met separately with an undercover agent and two confidential sources on 12 occasions between September 5, 2017, and December 6, 2017, and sold them a variety of firearms, including a short-barreled rifle with a 90-round drum magazine, several AR-15-type rifles and pistols, and handguns. Court records also state that Rodriguez sold the agent cocaine and methamphetamine. In all, Rodriguez sold the undercover agent 34 firearms, many of which lacked a serial number or other identifying markings. Court records state that Sykes was present at, and participated in, at least five of the firearms transactions.

This case is 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.

If convicted of dealing firearms without a license, the defendants face a maximum penalty of five years in prison and a $250,000 fine. The maximum penalty for possessing an unregistered short-barreled rifle or an unserialized firearm is 10 years in prison and a $10,000 fine. The penalty for distributing methamphetamine is not less than 10 years in prison, up to life, and a $10 million fine. The maximum penalty for distributing cocaine is 20 years in prison, and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against David Patrick Seilheimer, 50, of Sacramento, charging him with receiving child pornography and possessing child pornography, U.S. Attorney McGregor W. Scott announced.

According to court documents, between May 2015 and February 7, 2018, Seilheimer, using the internet, downloaded and shared child pornography videos and images. The images included prepubescent children engaged in sexual activity. 

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

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

This case was brought as part of Project Safe 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 three-count indictment today against Mark A. Richards, 48, of Sacramento, charging him with advertising and distributing child pornography, U.S. Attorney McGregor W. Scott announced.

According to court documents, in January 2018, Richards allegedly 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 is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Matthew G. Morris is prosecuting the case.

Richards has been in custody since his arrest on February 14, 2018. If convicted, Richards faces a maximum statutory penalty of 30 years in prison for advertising child pornography and 20 years in prison for each count of distributing child pornography, along with a $250,000 fine on each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

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 nine-count indictment today against Michael Paul Grisham Smith, 44, of Grass Valley, charging him with unlawful dealing and manufacturing in firearms and unlawful possession of unregistered 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 that have no serial number. The firearms vendor on the dark web was in fact an undercover law enforcement agent working for Homeland Security Investigations (HSI). 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 is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations. Assistant U.S. Attorneys Quinn Hochhalter and Justin Lee are prosecuting the case.

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

SACRAMENTO, Calif. — U.S. Attorney McGregor W. Scott announced sentences in two unrelated cases involving growing marijuana in national forests. In addition to the marijuana charges, both defendants were sentenced for depredation of federal property. Not only are the marijuana grow sites an illegal trespass, they cause significant environmental damage, through the use of harmful – and often banned – pesticides, as well as harm to natural rivers and streams, which the site’s operators divert to irrigate the marijuana crops.

In the first case, U.S. District Judge Kimberly J. Mueller sentenced Sebastian Martinez Arreola, 20, of Michoacán, Mexico, to 20 months in prison for manufacturing marijuana, conspiring to do the same, and depredation of federal property. According to court documents, Martinez Arreola and others were arrested by law enforcement on August 7, 2017, following a search of a marijuana-cultivation site in the Limedyke Mountain area of the Shasta-Trinity National Forest in Trinity County. At the site, they found approximately 2,500 marijuana plants and a .45‑caliber Ruger handgun.

This case was the product of an investigation by the United States Forest Service, Bureau of Land Management, the Trinity County Sheriff’s Office, the California Department of Fish and Wildlife, and the North State Marijuana Investigation Team. Assistant U.S. Attorney Richard Bender is prosecuting the case.

In the second case, Judge Mueller sentenced Pedro Sanchez Muniz, 39, native of Mexico, to two years in prison for conspiracy to manufacture at least 1,000 marijuana plants, as well as depredation of federal property. According to court documents, Sanchez Muniz was arrested by law enforcement officers at a marijuana cultivation site growing approximately 1,500 plants on the Mendocino National Forest in Tehama County. He was found tending to marijuana plants at the site.

This case was the product of an investigation by the U.S. Forest Service, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), California Department of Fish & Wildlife, and Tehama County Sheriff’s Office. Assistant U.S. Attorney James Conolly prosecuted the case.

FRESNO, Calif. — Linda Expose, 54, of Salida, appears in court today for an indictment charging her with mail fraud and fraud on the Social Security Administration, U.S. Attorney McGregor W. Scott announced.

According to court documents, Expose began receiving Social Security benefits in 1980 and concealed from the Social Security Administration her 19-year employment at a children’s hospital during which she received income under a family member’s social security number. To facilitate her continued receipt of Social Security benefits, Expose repeatedly misrepresented to the Social Security Administration that she had never used another social security number other than her assigned number, and filed multiple applications for Social Security benefits under both numbers to maximize her receipt of such benefits. Expose allegedly defrauded the Social Security Administration of approximately $190,000 in benefits she was ineligible to receive and would not have received had she truthfully reported to the Social Security Administration the income she earned from the hospital.

This case is the product of an investigation by the Social Security Administration’s Office of Inspector General. Assistant U.S. Attorney Christopher D. Baker is prosecuting the case.

If convicted, Expose faces a maximum statutory penalty of 20 years in prison for the mail fraud charge and five years in prison for each of the two counts of Social Security benefits fraud, and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. —Troy Franklin, 34, of Fresno, was sentenced today by Chief U.S. District Judge  Lawrence J. O'Neill to seven years and eight months in prison for being a felon in possession of a firearm and possession of an unregistered firearm, and Stephen Walker, 42, of Fresno, pleaded guilty to being an armed career criminal, U.S. Attorney McGregor W. Scott announced.

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According to court documents in the first case, Franklin, who is prohibited from possessing firearms due to a prior felony conviction, illegally purchased an AR-15 rifle with a barrel length of less than 16 inches. Police tried to conduct a traffic stop on the black Range Rover Franklin was driving after the purchase, and Franklin fled. He stopped the car and ran, and police found him hiding in a nearby apartment. They found the short-barreled rifle inside of a towel on the back passenger seat of the Range Rover. They also seized a Glock pistol Franklin left in the apartment where he had been hiding. This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI, California Department of Justice, California Highway Patrol Special Operations Unit, and the Fresno Police Department. Assistant U.S. Attorneys Jeffrey A. Spivak and Kimberly A. Sanchez prosecuted the case.

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According to court documents in the second case, Walker possessed a Jennings pistol and ammunition after having three prior felony convictions for infliction of corporal injury on a spouse or cohabitant. This case is the product of an investigation by the FBI and the Fresno Police Department. Assistant U.S. Attorneys Jeffrey A. Spivak and Ross Pearson are prosecuting the case.

Walker’s sentencing has been set for May 21, 2018, before Judge O’Neill. Walker faces a minimum of 15 years in prison and a maximum of life in prison, and up to 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 the product of Project SAFE Neighborhoods investigations. PSN is a nationwide strategy for using existing resources to most effectively combat violent crime in partnership with state, local and tribal law enforcement and the communities we serve.

SACRAMENTO, Calif. — Arsen Muhtarov, 39, of Sacramento, pleaded guilty to today to conspiracy to defraud the United States by filing fraudulent tax returns, U.S. Attorney McGregor W. Scott announced.

According to court documents, Aleksandr Kuzmenko, 34, of Loomis, was a tax preparer at VK Tax Services in Citrus Heights. Muhtarov conspired with Aleksandr Kuzmenko, Petr Kuzmenko, 39, of West Sacramento, and Valeriy Nikitchuk, 45, of Kent, Washington, to defraud the United States. Between February 2009 and November 2009, using stolen identification information and fictitious addresses, they filed approximately 90 fraudulent tax returns with the IRS that claimed the First Time Home Buyer Credits (FTHBC) on behalf of filers who were not entitled to the credit. The resulting fraudulent refunds were electronically deposited into bank accounts that the defendants controlled. The proceeds were then withdrawn and spent. The fraudulent claims totaled approximately $695,724, of which the IRS paid approximately $573,000.

Petr Kuzmenko was sentenced to six and a half years in prison and ordered to pay $573,332 in restitution to the IRS. Aleksandr Kuzmenko was sentenced to over two years in prison, and Valeriy Nikitchuk was sentenced to 10 months in prison.

Muhtarov is scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on June 1, 2018. Muhtarov faces a maximum statutory penalty of 10 years and prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

This case is the product of an investigation by the IRS Criminal Investigation. Assistant U.S. Attorney Michele Beckwith is prosecuting the case.

SACRAMENTO, Calif. — Eduardo Salinas-Garcia, 44, of Sonora, Mexico, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to 10 years in prison for conspiring to distribute heroin, U.S. Attorney McGregor W. Scott announced.

According to court documents, Salinas-Garcia led a 2015 conspiracy to distribute heroin in the Redding area. On March 27, 2015, law enforcement officers in Redding pulled over the car in which Salinas-Garcia was riding. They also pulled over the car behind his; that vehicle was being driven by one of Salinas-Garcia’s co-defendants and was carrying about 5.75 pounds of heroin in the trunk. Salinas-Garcia later confessed that he was a U.S. citizen living in Mexico and that he smuggled large quantities of heroin from the Los Angeles area to Redding. Salinas-Garcia said that he had intended to deliver this heroin to a dealer living in Redding. Further investigation showed that, for at least the seven months preceding his arrest, Salinas-Garcia and some of his co-defendants exchanged text messages related to drug trafficking with this dealer. The messages directed the dealer to deposit his drug sale proceeds in specific bank accounts in the United States and in Mexico. Salinas-Garcia personally provided the names of more than 10 banks and accounts to which the dealer should make his deposits.

This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Shasta Interagency Narcotics Task Force. Assistant U.S. Attorney Amanda Beck prosecuted the case.

Co-defendants Fernando Acosta, 40, and Jesus Nunez-Meza, 24, both of Perris, pleaded guilty to conspiracy to distribute heroin and were each sentenced to three years and 10 months in prison. Co-defendant Ramon Herrera, 65, of Santa Ana, has pleaded guilty to the same charge and is expected to be sentenced on March 16, 2018.

SACRAMENTO, Calif. — Paul Leland Johnson, 28, of San Jose, was sentenced today to three years and five months in prison for two counts of making false statements to investigators, U.S. Attorney McGregor W. Scott announced.

On May 23, 2017, a jury found that Johnson made false statements that were material in a U.S. Forest Service investigation of a fire that burned Johnson’s Forest Service truck. Johnson, a former Forest Service recreation employee, had checked out his duty truck in February 2012 and driven to a remote location in the Eldorado National Forest. While it was at that location, the Forest Service truck burned in a vehicle fire that spread to the surrounding wild land. Following the fire, Johnson made several statements to law enforcement and arson investigators about his actions in relationship to the fire. At trial, evidence proved beyond a reasonable doubt that some of Johnson’s statements to investigators were willfully false.

This case was the product of an investigation by the United States Forest Service, the U.S. Department of Agriculture Office of Inspector General, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the California Department of Forestry and Fire Protection. Assistant U.S. Attorneys Audrey B. Hemesath and Michael D. Anderson prosecuted the case.

SACRAMENTO, Calif. — A federal grand jury returned five indictments today against six additional defendants arrested as part of last week’s multi-agency coordinated series of searches and arrests throughout Northern California, U.S. Attorney McGregor W. Scott announced.

• Daisy Gonzalez, 32, of Termo in Lassen County, and Jose Trinidad Heredia Romero, a Mexican national, are charged with conspiracy to manufacture marijuana, the manufacture of marijuana, and possession with intent to distribute methamphetamine. Gonzalez is also charged with unlawful possession of a firearm.
• Asencion Jimenez, 38, of North Highlands, is charged with being a felon in possession of firearms.
• Stefanie Lavan, 65, Woodland, is charged with possession with intent to distribute methamphetamine.
• John Lemus, 31, of Woodland, is charged with being a felon in possession of a firearm;
• Carlos Martinez, 38, of Woodland, is charged with unlawful possession of a firearm, possession with intent to distribute cocaine, and possession of a firearm during and in furtherance of a drug-trafficking offense.
   

These new indictments arise from a multi-agency law enforcement investigation focused on Woodland, but which spread to multiple counties in Northern California and to two additional states. For more information, go to the website for the Eastern District of California.

If convicted, the defendants face statutory penalties of five to 40 years in prison for conspiracy to manufacture marijuana or the manufacture of marijuana and up to a $5 million fine; 10 years to life and up to a $10 million fine for possession with intent to distribute methamphetamine; up to 10 years in prison and a $250,000 fine for being a prohibited person in possession of a firearm; up to 20 years in prison and a $1 million fine for possession with intent to distribute cocaine, and up to five years in prison and a $250,000 fine for possession of firearms during and in furtherance of a drug trafficking crime. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

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

This case is 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.
These cases, and others unveiled in six indictments last week, are the product of an investigation by the FBI, California Department of Corrections and Rehabilitation (CDCR), Yolo County District Attorney, Woodland Police Department, and the California Highway Patrol. The following agencies provided substantial assistance: Colusa County Sheriff’s Office, Sacramento Police Department, Sacramento County Sheriff’s Office, West Sacramento Police Department, Yolo County Sheriff’s Office, Davis Police Department, Yuba City Police Department, Yuba County Sheriff’s Office, Sutter County Sheriff’s Office, Solano County Sheriff’s Office, Vacaville Police Department, the Correctional Intelligence Task Force (CITF), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the U.S. Postal Inspection Service, and the Drug Enforcement Administration (DEA).  Assistant U.S. Attorneys Owen Roth and Justin L. Lee are prosecuting the cases.

SACRAMENTO, Calif. — Latomba Bishop, 33 of Sacramento, was sentenced today to five years and 10 months in prison for a scheme to obtain mail through fraudulent vacation holds and mail forwarding requests and steal the identities of the mail theft victims, U.S. Attorney McGregor W. Scott announced. In addition, U.S. District Judge Troy L. Nunley ordered Bishop to pay $38,371 in restitution to the victims.

On November 30, 2017, Bishop pleaded guilty to mail fraud and aggravated identity theft in connection with the scheme.

According to court documents, Bishop and her co-defendants Joshua Yadon, 33, and Norman Thompson, 37, both of Sacramento, used stolen personal identifying information to fraudulently obtain credit cards, checks, and merchandise. To avoid detection, the conspirators would often request that the items be mailed to the victims’ real addresses but then would file false vacation holds and change of address forms with the United States Postal Service in order to divert the items into the conspirators’ possession.

San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated, “Postal Inspectors worked closely with the U.S. Attorney’s Office and our partners in law enforcement to arrest and prosecute those individuals responsible for the thefts of mail and financial crimes committed against the public.”

Thompson pleaded guilty to the conspiracy and on October 5, 2017, was sentenced to three years and 10 months in prison. Yadon also pleaded guilty and is scheduled to be sentenced on April 12, 2018. Yadon faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

This case is the product of an investigation by the U.S. Postal Inspection Service with assistance from the Davis Police Department, Sacramento County Probation, and the Woodland Police Department. Assistant U.S. Attorney Jeremy J. Kelley is prosecuting the case.

SACRAMENTO, Calif. — A federal grand jury returned a six-count indictment today against William Lamar Blessett, 38, of Sacramento, charging him with receipt and possession of child pornography, U.S. Attorney McGregor W. Scott announced.

According to court documents, a search of Blessett’s home revealed child pornography on at least six separate electronic devices, including a laptop, three smart phones, and two tablets.

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

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

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

 

SACRAMENTO, Calif. — A formerly licensed physician, Nicholas J. Capos Jr., 67, of Yuba City, was sentenced today by U.S. District Judge Morrison C. England Jr. to four years and four months in prison for selling prescriptions of controlled substances such as oxycodone and methadone, U.S. Attorney McGregor W. Scott announced.

“By prescribing medications to patients he never physically examined in amounts clearly intended for abuse and resale, Capos injected potent and potentially lethal drugs into the community, putting lives at risk,” said U.S. Attorney Scott. “The U.S. Attorney’s Office is committed to doing its part to combat the nation’s opioid crisis by devoting resources to cases like this and working with our law enforcement partners to end the unlawful distribution of these dangerous drugs.” 

“The public should have confidence that practicing physicians will adhere to the do‑no‑harm principle. Nicholas Capos did just the opposite when he prescribed oxycodone without legitimate medical purpose and outside the usual course of practice. This type of reckless behavior provides fuel to the fire of the opioid epidemic plaguing our nation,” stated DEA Special Agent in Charge John J. Martin.

According to court documents, between April 3, 2008, and October 30, 2012, Capos, who was then a licensed physician with a specialty in cardiology, knowingly and intentionally prescribed controlled substances without properly examining the patients and ignoring obvious signs that the patients were abusing or reselling the medications. He prescribed quantities far in excess of human tolerance and charged patients a “DEA Fee” of $100 per prescription, which is contrary to accepted medical practice. He is no longer licensed to practice medicine.

On May 5, 2016, Capos pleaded guilty to distribution and dispensation of oxycodone. According to the plea agreement, Capos prescribed 2,640 APAP/Hydrocodone 325/10 pills in 28 days for one patient (325 mg acetaminophen and 10 mg hydrocodone). At that rate, the patient

SACRAMENTO, Calif. — David Guevara-Pimentel, 24, of Elk Grove, was sentenced today to 10 years in prison for dealing firearms without a license, illegal possession of a machine gun, and distribution of methamphetamine, U.S. Attorney McGregor W. Scott announced.

According to court documents, between August 11, 2014, and April 29, 2015, on 19 separate occasions Guevara-Pimentel met with an undercover agent and sold him a variety of firearms, including a short-barreled shotgun, an unserialized AR-15-style rifle, and handguns. On many of these occasions, Guevara-Pimentel sold the agent methamphetamine, cocaine, or heroin. In all, Guevara-Pimentel sold the undercover agent 49 firearms, many of which lacked a serial number or other identifying markings. When he was arrested in January 2016, Guevara-Pimentel possessed a fully automatic machine gun.

This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the West Sacramento Police Department, and the Woodland Police Department. 

SACRAMENTO, Calif. —Denna Chambers, aka Denna Rice, 35, of Fairfield, pleaded guilty today to one count of conspiring to defraud the United States, United States Attorney McGregor Scott announced. Co-defendant, Starsheka Mixon, 34, of Pinole, previously pleaded guilty to the same charge on February 8, 2018. 

“The harm caused by these defendants goes beyond simply cheating the government,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “Stealing identities and filing false tax returns is a serious crime that has a devastating impact on the victims whose identities they stole to perpetrate this crime. CI will continue to investigate these crimes and hold those responsible fully accountable.”

According to court documents, between approximately January 2011 and June 2013, Chambers and Mixon 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, 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 were paid out by the IRS.

This case was the product of an investigation by IRS Criminal Investigation. Assistant United States Attorney Shelley D. Weger is prosecuting the case.

Chambers and Mixon are scheduled to be sentenced by Judge Morrison C. England, Jr. on May 24, 2018. Both Chambers and Mixon face a maximum statutory penalty of 10 years in prison, restitution, and a fine of $250,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

The continued effort by the IRS to combat identity theft and refund fraud has led to steep declines in tax-related identity theft.  The IRS, state tax agencies, and the tax industry have started their third filing season working as the Security Summit, a private-public sector partnership formed in 2015 to combat identity theft. Summit partners have put in place multiple behind-the-scenes safeguards that are helping protect the nation’s taxpayers.  Because the IRS and Summit partners have stepped up efforts to stop suspected fraudulent returns from entering tax processing systems, there continues to be a substantial decline in the number of taxpayers reporting that they are victims of identity theft.  In 2017, the IRS received 242,000 reports from taxpayers compared to 401,000 in 2016 and 677,000 victim reports in 2015. Overall, the number of identity theft victims has fallen nearly 65 percent between 2015 and 2017.

These efforts go hand-in-hand with the work done by IRS Criminal Investigation, where special agents continue working to bring identity thieves to justice across the nation.

SACRAMENTO, Calif. — A federal grand jury returned an indictment today against Stockton residents Arturo Napoles, 29; Raymond Morin, 31; and Raul Diaz, 23, charging them with unlawful dealing in firearms, U.S. Attorney McGregor W. Scott announced. Napoles was also charged with 19 counts of being a felon in possession of a firearm, five counts of possession of a machinegun, two counts of distribution of methamphetamine, and one count of distribution of cocaine.

U.S. Attorney McGregor W. Scott said, “The illegal manufacture and trafficking of firearms poses a serious threat to our communities. Because of this threat, the U.S. Attorney’s Office has prioritized the prosecution of these crimes, and through our partnership with the ATF and local law enforcement, we have managed to seize large amounts of contraband weapons and to bring those who inject them into the community to justice. We are committed to keeping our communities safe by continuing these partnerships and focusing on cases like the one indicted today.”

“At ATF we are committed to making all our communities a safe place,” said Special Agent in Charge Jill Snyder, San Francisco Field Division, Bureau of Alcohol, Tobacco, Firearms and Explosives. “Firearms trafficking is a dangerous activity. It results in guns ending up in the hands of criminals and gang members who engage in criminal activity regardless of whether that endangers lives. It only takes one round from one gun to end a life. Our efforts to combat gun related crime has spanned across the district. From 2016 to 2018, ATF agents seized 1,890 firearms within Stockton, Fresno and Sacramento areas. That is 1,890 that were involved in criminal activity and are now off the streets of our community.”

Stockton Police Chief Eric Jones stated: “The results of this investigation made Stockton a safer community. I’m committed to these types of operations and investigations with our Federal law enforcement partners because getting gang members, violent criminals, weapons, and narcotics off our streets is an on-going process to make Stockton the best it can be.”

According to court documents, between April 27, 2017, and February 1, 2018, Napoles allegedly sold approximately 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. Napoles is prohibited from possessing firearms and is not licensed to deal in firearms.

Between April 27, 2017, and November 29, 2017, Diaz allegedly manufactured and sold approximately 15 assault rifles. He manufactured the firearms in his garage from unfinished lower receivers. Diaz is not licensed to manufacture and deal in firearms.

Between June 1, 2017, and January 4, 2018, Morin allegedly sold eight firearms, including five assault rifles manufactured from unfinished lower receivers with no serial numbers. Morin is not licensed to deal in firearms.

This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Stockton Police Department. Assistant U.S. Attorney Cameron L. Desmond is prosecuting the case.

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

The following are summaries of some of the recent cases brought by the U.S. Attorney’s Office involving the illegal sale of firearms: 

On January 25, 2018, a grand jury indicted James Bowen with engaging in the business of dealing firearms without a license, possession of an unregistered firearm, and being a felon in possession of a firearm.  The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.  1:18-CR-0015-DAD

On December 12, 2017, Sharrod Gibbons was sentenced to over two years in prison for unlawful dealing in firearms.  2:15-CR-00158-JAM

On September 20, 2017, Jason Prom was sentenced to twelve years in prison for conspiring to deal firearms without a license, dealing firearms without a license, and being a felon in possession of a firearm.  2:16-CR-134-KJM

On September 8, 2017, Joseph Latu was sentenced to nine years in prison for unlawful dealing in firearms. 2:15-CR-00209-GEB

On September 7, 2017, Christopher Gonzales, Jake Phillip Jines, and Samuel Elijahsidney Scott were indicted for dealing firearms without a license. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.  2:17-CR-162-TLN.

On July 14, 2017, Charles Tucker was sentenced to five years in prison for unlawful dealing in firearms.  2:15-CR-00209-GEB

On May 25, 2017, a grand jury indicted Robert Guthrie, Prado Andres Corona, Marcos Hernandez, Joseph Quirarte and Orasio Fierro for conspiracy to engage in the business of dealing firearms without a license and other charges. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.                         1:17-CR-00135-LJO

On March 28, 2017, Alphonso Harris was sentenced to ten months in prison for unlawful dealing in firearms. 2:16-CR-00011-JAM

On December 9, 2016, Emiliano Cortez-Garcia, was sentenced to six years in prison for unlawful dealing in firearms, possession of a machinegun, and possession of an unregistered firearm. 2:13-CR-00353-GEB

On August 24, 2016, Felix Saldivar was sentenced to over four years in prison for unlawful dealing in firearms.  2:16-CR-00109-KJM

On May 2, 2016, Gerardo Barraza was sentenced to almost two years in prison for unlawful dealing in firearms. 2:14-CR-00040-WBS

On March 10, 2016, James Malcolm was sentenced to five years in prison for unlawful possession of a toxin, unlawful dealing in firearms, possession of a machinegun.                   2:14-CR-00158-TLN

On February 17, 2016, Daniel aka “Dr. Death” Crowninshield was sentenced to nearly three and a half years in prison for unlawful dealing in firearms and possession of an unregistered machinegun.  2:14-CR-00164-TLN

On February 17, 2016, Brandon Johnson was sentenced to ten years in prison for selling firearms without a license and distributing methamphetamine.  2:13-CR-036- KJM

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. —Ricky Lee Richardson, Jr., 41, of Stockton, pleaded guilty today to sex trafficking of a child, United States Attorney McGregor W. Scott announced. 

According to court documents, in November 2011, Richardson recruited a minor victim to engage in prostitution. Between December 2011 and March 2012, Richardson caused the then 16-year-old victim to engage in prostitution 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 United States Attorneys Brian A. Fogerty and Jill M. Thomas are prosecuting the case.

Richardson has been in custody since his arrest in April 2016.

Richardson is scheduled to be sentenced by Judge Troy L. Nunley on May 17, 2018. Richardson faces 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.

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. —Jason E. Mininger, 50, of Folsom, pleaded guilty today to wire fraud and money laundering, 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 $870,000 in losses to his clients. Mininger also created false investment account statements to conceal his embezzlement of his clients’ funds.

This case was the product of an investigation by the Federal Bureau of Investigation and Internal Revenue Services-Criminal Investigations. Assistant United States Attorney Todd A. Pickles is prosecuting the case.

Mininger is scheduled to be sentenced by Judge Troy L. Nunley on May 31, 2018. Mininger faces a maximum statutory penalty of 20 years in prison on the wire fraud count and 10 years in prison on the money laundering charge. He also faces a fine or $250,000 or twice the gross loss or gross 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. — Today U.S. Attorney McGregor W. Scott announced the arrest of 18 federal defendants on narcotics and weapons-related charges as part of a multi-agency law enforcement investigation into coordinated criminal activity in Woodland, California. The U.S. Attorney was joined in announcing the results of the operation by FBI Special Agent in Charge Sean Ragan, California Department of Corrections and Rehabilitation Secretary Scott Kernan, Woodland Chief of Police Luis Soler, Yolo County District Attorney Jeff Reisig, and Yolo County Sheriff Ed Prieto.

Early this morning, a coalition of local, state and federal law enforcement officers conducted 69 searches pursuant to federal warrants and parole or probation search conditions at various locations throughout Northern California. Officers arrested 18 individuals on charges alleged in six separate federal indictments and one federal criminal complaints that were unsealed today. Three additional, related criminal complaints were filed this week, one in the Eastern District of California, one in the Western District of Pennsylvania, and one in the District of Oregon.  In addition, local officials arrested more than 10 additional individuals on state charges as part of the operation. 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. 

Beginning in the spring of 2016, this investigation uncovered organized criminal activity in Woodland, California with ties to criminal organizations located in California’s jail and prison system. Although centered in Yolo County, the investigation revealed that at least 9 other California counties were negatively impacted by these criminal organizatons: Sacramento, Sutter, Colusa, Yuba, Del Norte, Solano, Fresno, Santa Clara, and Siskiyou. 

The investigation focused on intercepting communications of those involved in drug and firearms offenses – including cellphone communications, social media communications on Facebook and Instagram, and clandestine communications on Snapchat and other platforms. In several instances, these modes of communication were used to sell weapons and coordinate the sales of cocaine, methamphetamine, and prescription drugs. In some instances, it is alleged that prison inmates directed defendants outside the prisons to smuggle drugs into the prison or to sell and distribute narcotics outside the prison.

U.S. Attorney McGregor W. Scott stated, “Today’s operation is the result of a months-long endeavor involving federal, state, and local law enforcement agencies to disrupt coordinated criminal activity that, although centered in Yolo County, spread to several other Northern California counties. This operation demonstrates how federal law enforcement can join forces with our state and local partners to make our communities safer and stop illegal guns and drugs from flooding our streets.”

“The FBI is committed to joining forces with our state and local partners to effectively combat the gang and drug-related violence that plagues our communities,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “Our shared goal is stopping gang violence, getting drugs and weapons off the streets, and helping to bring justice to the victims of crimes committed in our communities. Today’s arrests demonstrate the strength of successful law enforcement collaboration and highlight our shared commitment to the public we serve.”

 “Our department is committed to putting a stop to illegal activities conducted by prison gangs in our neighborhoods, schools and communities to further their criminal organizations and instill fear in people,” said Secretary Scott Kernan, California Department of Corrections and Rehabilitation. “The success of this investigation demonstrates how effective our partnerships are with local, state, and federal agencies. When we work together, we effectively are able to target dangerous individuals in and out of prison. I am thankful and proud of the hard work that went into this operation.”

 “Over the last several years, many of the defendants who were arrested today and their associates have plagued Yolo County with their criminal activity.  This operation has helped to disable their organization at its most basic level and will hopefully have positive long term impacts on public safety,” said Yolo County District Attorney Jeff Reisig.

Operation Silent Night is the product of an investigation by the FBI, California Department of Corrections and Rehabilitation (CDCR), Yolo County District Attorney, Woodland Police Department, and the California Highway Patrol. The following agencies provided substantial assistance: Colusa County Sheriff’s Office, Sacramento Police Department, Sacramento County Sheriff’s Office, West Sacramento Police Department, Yolo County Sheriff’s Office, Davis Police Department, Yuba City Police Department, Yuba County Sheriff’s Office, Sutter County Sheriff’s Office, Solano County Sheriff’s Office, Vacaville Police Department, the Correctional Intelligence Task Force (CITF), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the U.S. Postal Inspection Service, and the Drug Enforcement Administration (DEA).  Assistant U.S. Attorneys Owen Roth and Justin L. Lee are prosecuting the cases.

The federal defendants and their charges are listed below. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

•      Aldo Arellano, 24, of Marysville, is charged with distribution of methamphetamine.

•      Raul Barajas, 21, of Woodland, is charged with conspiracy to possess with intent to distribute and to distribute controlled substances, and possession with intent to distribute methamphetamine.

•      Patrick Botello, 31, of Pelican Bay State Prison, is charged with conspiracy to possess with intent to distribute and to distribute methamphetamine and heroin and using a cellphone to facilitate a drug trafficking offense.

•      Israel Covarrubias, 25, of Woodland, is charged with conspiracy to possess with intent to distribute and to distribute controlled substances after having been convicted of a felony drug offense, possession with intent to distribute methamphetamine, distribution of methamphetamine, and using a cellphone to facilitate a drug trafficking offense.

•      Milton Escobedo, 28, of Woodland, is charged with conspiracy to possess with intent to distribute and to distribute controlled substances, distribution of cocaine, and using a cellphone to facilitate a drug trafficking offense.

•      Rachel Felix, 38, of Woodland, is charged with distribution of methamphetamine.

•      Ashley Habash, 28, of Marysville, is charged with conspiracy to possess with intent to distribute and to distribute methamphetamine and heroin and using a cellphone to facilitate a drug trafficking offense.

•      Edgar Jimenez, 19, of Sacramento, is charged with distribution of cocaine and using a cellphone to facilitate a drug trafficking offense.

•      Justin Johnson, 33, of Sacramento, is charged with possession with intent to distribute methamphetamine and being a felon in possession of a firearm.

•      Jose Madrigal-Vega, 31, Woodland, is charged with conspiracy to possess with intent to distribute and to distribute controlled substances, and distribution of methamphetamine.

•      Victor Magana, 24, of Woodland, is charged with conspiracy to possess with intent to distribute and to distribute controlled substances, possession with intent to distribute methamphetamine, distribution of methamphetamine, distribution of cocaine, and using a cellphone to facilitate a drug trafficking offense.

•      James Masterson, 28, of Newcastle, is charged with using a cellphone to facilitate a drug trafficking offense.

•      Brenda Miranda, 21, of Napa, is charged with conspiracy to possess with intent to distribute and to distribute methamphetamine and heroin and using a cellphone to facilitate a drug trafficking offense.

•      Reginald Pajimola, 23, of Marysville, is charged with possession with intent to distribute cocaine and using a cellphone to facilitate a drug trafficking offense.

•      Mercedez Silva-Sims, 21, of Colusa, is charged with conspiracy to possess with intent to distribute and to distribute methamphetamine and heroin and using a cellphone to facilitate a drug trafficking offense.

•      Joshua Sims, 24, of Colusa, is charged with conspiracy to possess with intent to distribute and to distribute methamphetamine and heroin, attempted distribution of methamphetamine, using a cellphone to facilitate a drug trafficking offense, and distribution of cocaine.

•      Erica Umbay, 42, of Woodland, is charged with being a felon in possession of a firearm.

•      Ricardo Villa, 39, of Pelican Bay State Prison, is charged with conspiracy to possess with intent to distribute and to distribute methamphetamine and heroin, and using a cellphone to facilitate a drug trafficking offense.

•      Trevor White, 27, of Sacramento, is charged with conspiracy to possess with intent to distribute and to distribute controlled substances and distribution of methamphetamine.

Two additional defendants are being charged in the District of Oregon and the Western District of Pennsylvania. The Yolo County District Attorney’s Office and the U.S. Attorney’s Office continue to review possible charges against additional potential defendants.

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

This case is 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. — On February 10, 2018, Jamal Shehadeh, 59, of Sacramento, pleaded guilty to two counts of arson to commit a felony in furtherance of a long-running arson and insurance fraud scheme and was sentenced by U.S. District Judge Morrison C. England Jr. to 30 years in prison, U.S. Attorney McGregor W. Scott announced.

“Jamal Shehadeh avoided prosecution for decades as he set fire after fire with complete disregard for the lives of anyone nearby including firefighters,” U.S. Attorney Scott stated. “Shehadeh’s time committing the violent crime of arson and insurance fraud for the purpose of enriching himself has come to an end thanks to the hard work of all the federal law enforcement agencies that investigated and assisted with this case, and the local Sacramento authorities who provided tremendous assistance.”

“Jamal Shehadeh intentionally set fires, which threatened the lives and safety of our community members. The FBI is proud to have partnered with the Sacramento Fire Department, Sacramento Metropolitan Fire District, and our federal partners to investigate the allegations against Shehadeh to ensure justice was served,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “The length of Shehadeh’s sentence highlights the seriousness of his admitted crimes and ensures he will not pose a threat to the community for decades.”

“Jamal Shehadeh was a serial arsonist who profited over and over again while concealing those profits through nominees and other means,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “The scheme netted Shehadeh and his co-defendants over $1.5 million in insurance proceeds while endangering members of the community. Those who line their pockets with profits from these schemes should know that IRS Criminal Investigation will continue to use our financial investigative expertise and work with our great law enforcement partners to bring them to justice.”

According to court documents, from at least December 2009 through September 2013, Jamal Shehadeh participated in an arson fraud scheme with co-defendants Saber Shehadeh and Brian Stone and others. The scheme involved seven fires at six different commercial building locations in Sacramento and Carmichael. The dates and locations of the fires, and the names of businesses at those locations, are as follows:

• 1007 E Street and 427 10th St., Sacramento — December 27, 2009
• George’s Auto Care, 511 Broadway, Sacramento — June 9, 2010
• Tru Value Market, 427 10th St., Sacramento — August 15, 2010
• Galaxy Sacramento, 6964 65th St., Sacramento — April 23, 2012
• Escape Therapy, 5725 Marconi Avenue, Carmichael — September 24, 2012
• Cobblestone Café, 910 University Avenue, Sacramento — October 15, 2012
• Golden Star Auto Supply, LLC, 2764 Fulton Avenue, Sacramento — June 16, 2013
   
  Jamal Shehadeh pleaded guilty to setting or causing to be set the fires at 910 University Avenue on October 15, 2012, and the fire at 2764 Fulton Avenue on June 16, 2013, for the purpose of carrying out insurance fraud. He also admitted to setting or causing to be set the fire on December 27, 2009, at 10th and E Streets in Sacramento, and the fire at 6964 65th Street in Sacramento on April 23, 2012, as a part of the arson and insurance fraud scheme.
  According to court documents, the scheme involved numerous forms of fraud, including false statements when acquiring insurance policies, causing damage by fire, and seeking funds from insurance companies using false statements about the cause of the fires, the property and tenant improvements purported to have been damaged in the fire, lost business income resulting from the fires, and the true nature of the entities involved in the demolition and clean-up, as well as the actual clean-up costs. In some cases, the participants used a company named Wolf & Associates Construction Inc. to pursue insurance claims for demolition and cleanup costs while concealing their relation to it, or used Wolf Construction as a front company purporting to do cleanup that was in fact performed by someone else. Jamal Shehadeh meanwhile controlled a bank account associated with Wolf Construction.
  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. Attorney Michael D. Anderson and Christopher S. Hales prosecuted the case.
  Defendant Jamal Shehadeh is in custody. Co-defendants Saber Shehadeh and Brian Stone are pending trial. The charges against Saber Shehadeh and Brian Stone are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — Timothy Ortiz, 47, of Waukegan, Illinois, was sentenced today to three years in prison for conspiring to ship misbranded synthetic drugs in interstate commerce with intent to defraud , U.S. Attorney McGregor W. Scott announced.

On August 14, 2017, Ortiz pleaded guilty. According to court documents, from December 2011 to October 2013, he, along with his co-defendants, Douglas Jason Way, 44, of Evanston, Illinois: Timothy New, 35, of Pensacola, Florida; and Natalie Middleton, 32, of Clovis, California, were involved in the importation of chemicals from China that were substantially similar in structure and pharmacological effect to a Schedule I controlled substance. Ortiz and his associates then diluted the chemicals with acetone and mixed it with dried plant material to produce a smokeable synthetic drug commonly known on the street as “spice.”  The drugs were packaged and falsely labeled to say that the contents were legal and were not intended for human consumption, when in fact they were illegal and were intended for human consumption.

Ortiz and his associates then shipped the drug from warehouses in Pensacola, Florida and Millbrae and Stockton, California to smoke shops, gas stations, and retail outlets throughout the United States. Ortiz, utilizing an alias of Michael Fitton, set up and managed the Millbrae processing lab after the synthetic drug company was purchased by the owner of multiple smoke shops in the Central Valley operating under the name of The Stuffed Pipe that sold the synthetic drugs.

According to the plea agreement, Ortiz and his co-defendants shipped at least 24 tons of misbranded smokeable synthetic cannabinoids that contained the synthetic drugs AM-2201 and XLR11 to smoke shops and retail outlets throughout the United States. They generated in excess of $33 million in sales. At the time of the illicit enterprise, AM-2201 was a schedule I controlled substance and XLR11 was a controlled substance analogue that was placed under schedule I as a controlled substance in May 2013.  In sentencing Ortiz, District Judge Dale A. Drozd also ordered Ortiz to forfeit $109,590, which Ortiz had derived from his four-month participation in the illegal operation.

This case is the product of an investigation by the Drug Enforcement Administration, Internal Revenue Service Criminal Investigation, and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), with assistance from the Food and Drug Administration and Fresno County Sheriff’s Office. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.

This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. As a result of this investigation, law enforcement agencies seized and forfeited over $6.6 million representing drug proceeds.

Co-defendant New previously entered a guilty plea to the fraudulent shipment of misbranded drugs and is currently serving a 30-month sentence. Middleton previously entered a guilty plea to money laundering, was sentenced to four months in prison, and is currently under supervised release for two years. Way has requested a jury trial, which is set for June 16, 2018. Way is charged with multiple controlled substance offenses, in addition to the misbranding charge, and faces a maximum penalty of 20 years in prison and a fine of $10 million. The charges against him are only allegations; Way is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — A federal jury found Donnie Phillips, 64, of Concord, and Gordon Miller, 60, of Clayton, guilty today of multiple methamphetamine-trafficking counts, U.S. Attorney McGregor W. Scott announced.

After a five-day trial, Phillips and Miller were found guilty of conspiracy to distribute methamphetamine. Phillips was also found guilty of eight counts of distribution and two counts of possession with intent to distribute methamphetamine. Miller was found guilty of two counts of distribution and two counts of possession with intent to distribute methamphetamine.

According to trial evidence, between June 2014 and February 2015, Phillips and Miller supplied methamphetamine to co-defendant Phyliss Mosher, 51, of Vallejo, who supplied it to an undercover agent. The drug deals took place in the counties of Solano, Contra Costa, Yolo, Shasta, and San Joaquin. On January 25, 2018, Mosher was sentenced to 15 years in prison after pleading guilty to the methamphetamine conspiracy on May 9, 2017.

This case is the product of an investigation by the Drug Enforcement Administration, El Dorado County Sheriff’s Office, the El Dorado County District Attorney’s Office, the California Highway Patrol, the Vallejo Police Department, and the California Department of Corrections and Rehabilitation. Assistant U.S. Attorneys Jason Hitt and Jill Thomas are prosecuting the case.

Phillips and Miller are scheduled to be sentenced on May 15, 2018, by U.S. District Judge John A. Mendez. Each defendant faces a mandatory minimum of 20 years in prison, a maximum statutory penalty of life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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

SACRAMENTO, Calif. — Lee Loomis, aka Lawrence Leland Loomis, 60, of Granite Bay, was sentenced today by U.S. District Judge John A. Mendez to 12 years in prison for schemes that caused millions of dollars in losses to more than 183 investors, U.S. Attorney McGregor W. Scott announced.

On January 29, 2016, Loomis pleaded guilty to wire fraud. According to court documents, from 2006 through 2008, Loomis was president of Loomis Wealth Solutions, a business operating in California, Illinois, Washington and elsewhere. Through seminars and face-to-face meetings, he induced individuals to invest money in the Naras Funds, which he claimed were liquid savings account-like investments that yielded a 12 percent annual return. He also claimed the investment was secured by a third party that was using the money to make loans secured by residential properties.

In fact, Loomis and his co‑defendants used the funds to pay for ongoing business expenses and to pay previous investors. Loomis took in more than $10 million in investor funds as part of the Naras scheme. He also took in money through other means, including a mortgage fraud scheme. At the time law enforcement executed search warrants at the business, only $4,313 was left in investor accounts.

“Loomis Wealth Solutions was built on a foundation of lies and deceit,” stated U.S. Attorney McGregor W. Scott. “The sentence imposed today helps to ensure that Loomis won’t again be in a position to cause financial harm to others, and represents some measure of justice for the many victims who were lured into trusting Loomis with their hard-earned money.”

 “The FBI is committed to working with its partners to ensure people who defraud the American people—often devastating their financial future in the process—face justice,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “Dozens of investors who trusted Lee Loomis suffered significant financial losses. Many of these victims withdrew funds from retirement accounts accrued over the course of decades, forcing then to restart the process of preparing for retirement.”

“Lee Loomis was the leader and architect of a scheme that resulted in millions of dollars of losses to dozens of families,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “He lied to investors, stole their hard earned savings and spent it within months of receipt. His conduct led to ruined credit and home foreclosures. While this sentence cannot reverse the damage caused by Loomis and his co-defendants, it highlights the ongoing commitment of IRS-CI to hold accountable those involved in these types of crimes.”

This case was the product of an investigation by the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigation, the United States Securities and Exchange Commission, and the California Bureau of Real Estate. Assistant U.S. Attorneys Paul Hemesath and Jared Dolan prosecuted the case.

Loomis has been in custody since September 14, 2012. Co-defendants John Hagener, 79, of Granite Bay; Joseph Gekko, 47, of Yorba Linda; Dawn C. Powers, 45, of Lincoln; and Peter Woodard, 47, of Ventura, have previously pleaded guilty and are scheduled to be sentenced on March 13, 2018.

FRESNO, Calif. — Marie E. Sherrill, 57, of Porterville, was sentenced today by U.S. District Judge Dale A. Drozd to four years in prison for wire fraud and tax fraud, U.S. Attorney McGregor W. Scott announced. She was also ordered to pay more than $1.3 million in restitution to the fraud victims and $255,900 to the IRS.

According to court documents, Sherrill was a registered tax return preparer operating a bookkeeping and tax preparation business in Porterville under the name Sherrill Financial Services. Between January 2011 and December 2014, Sherrill prepared false tax returns for her clients containing false deductions to maximize their tax refunds, which caused a loss to the IRS of approximately $255,900.

Sherrill also used the intimate financial knowledge she gained from the clients of her bookkeeping and tax preparation business to identify victims she could lure into an investment fraud scheme. She told victims of this scheme that their money would be put into “pooled investments” with the money of other investors to earn a high rate of return. The money was, in fact, never put into any investment, but was used instead to pay Sherrill’s personal expenses or to make lulling payments to earlier investors in order to make them believe their money was earning a profit. As a result of this scheme, the victims were defrauded of at least $1.3 million.

This case was the product of an investigation by the Federal Bureau of Investigation and Internal Revenue Service, Criminal Investigation. Assistant U.S. Attorney Mark J. McKeon is prosecuting the case.

FRESNO, Calif. — James Gonzales-Gay, 35, of Sanger, was sentenced today by Chief U.S. District Judge Lawrence J. O'Neill to 12 years and six months in prison for assaulting a mail carrier with the intent to commit robbery, and being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.

According to court documents, on September 15, 2017, a mail carrier delivering mail in the area of Maple and Huntington, in Fresno, felt someone jump onto the bumper of his mail delivery truck. Gonzales-Gay appeared at the driver’s door, pulled the mail carrier from the truck, and began driving it away. After Gonzales-Gay drove the mail truck a short distance, the carrier was able to catch up to the truck and disable it. Gonzales-Gay elbowed the mail carrier in the face while struggling over control of the vehicle. After taking the keys from the ignition, the carrier was able to escape. Gonzales-Gay was soon thereafter stopped by law enforcement officers, who found parts of a Taurus handgun on Gonzales-Gay’s person. Gonzales-Gay is prohibited by law from possessing a firearm.

This case was the product of an investigation by the U.S. Postal Inspection Service and the Fresno Police Department. Assistant U.S. Attorney Laurel J. Montoya prosecuted the case.

SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Jason Solomon, 42, of Stockton, charging him with distribution of child pornography and possession of child pornography, U.S. Attorney McGregor W. Scott announced.

According to court documents, in July 2016, Solomon distributed images of children engaged in sexually explicit conduct. On January 9, 2018, Solomon also possessed a video depicting a child engaged in sexually explicit conduct. Solomon has been in custody since his arrest on January 9, 2018.

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

If convicted of distribution of child pornography, Solomon faces a mandatory minimum sentence of five years in prison and a maximum statutory penalty of 20 years in prison and a $250,000 fine. The possession of child pornography count carries a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case was brought as part of Project Safe 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. — After an eight-day trial, a federal jury found Steel A. Davis, 45, of Chico, guilty today of all eight counts of wire fraud in a scheme to obtain bonuses for referring individuals to enlist in the California National Guard, U.S. Attorney McGregor W. Scott announced.

According to court documents and evidence presented at trial, the United States Army contracted with a company called Document and Packaging Broker Inc. (DOCUPAK) to administer the Guard Recruiting Assistance Program (G-RAP). Under G-RAP, members of the California National Guard served as Recruiting Assistants. If a Recruiting Assistant referred a potential Guard member to a recruiting office and that person ultimately enlisted, the Recruiting Assistant was eligible to receive a $1,000 payment when a person enlisted and a second $1,000 payment when the recruit left for boot camp.

According to court documents and evidence presented at trial, Davis was a recruiter with the California National Guard and was ineligible to participate in the G-RAP program. Davis, however, realizing the potential to make money through G-RAP, gave recruits’ information to his co‑conspirators who had signed up to be Recruiting Assistants. The RAs would then file false claims with DOCUPAK that they had referred the recruits to join the Guard when, in fact, the recruits had joined on their own initiative. When the compensation was received, Davis split the proceeds of the fraud with the Recruiting Assistants.

This case is the product of an investigation by the Army Criminal Investigative Command Major Procurement Fraud Unit, the Defense Criminal Investigative Service, and the Federal Bureau of Investigation. Assistant U.S. Attorneys Matthew G. Morris and Katherine T. Lydon prosecuting the case.

Davis is scheduled to be sentenced on May 10, 2018, before U.S. District Judge Troy L. Nunley. Davis 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.

Other National Guard members and recruiters have been charged in similar schemes in the Eastern District of California. The following defendants have been convicted:

• 2:14-cr-153 TLN — Brian Kaps, 44, of Chico, pleaded guilty on November 21, 2014, to one count of wire fraud. He is scheduled to be sentenced on February 22, 2018.
• 2:14-cr-152 TLN — Sarah Nattress, 30, of Paradise, pleaded guilty on October 23, 2014, to one count of wire fraud. She is scheduled to be sentenced on February 22, 2018.
• 1:14-cr-107 DAD — Leonardo Pesta, 49, of Mountain View, pleaded guilty on July 27, 2015, to one count of wire fraud and was sentenced to two years of probation.
• 1:14-cr-108-LJO — Nicholas Huerta, 36, of Fresno, pleaded guilty on September 14, 2015, to one count of wire fraud and was sentenced to four years of probation.
• 2:14-cr-151 JAM — Richard C. Sihner, 55, of Elk Grove, was convicted on January 22, 2016, of 18 counts of wire fraud and one count of making false statements following a seven-day jury trial and was sentenced to 30 months in prison.
• 1:14-cr-106 DAD — Joaquin Cuenca, 40, of San Diego, was convicted on February 1, 2016, of three counts of wire fraud and one count of making false statements following a seven-day jury trial. He was sentenced to six months in prison.
• 1:14-cr-109-LJO — Jimmy D. Maldonado, 37, and Mayra L. Maldonado, 31, both of Fresno, were each convicted by a jury on January 29, 2018, of three counts of wire fraud after a four-day trial. They are scheduled to be sentenced on April 23, 2018.
• 2:18-cr-12 TLN — Jason M. Hair, of Paradise, pleaded guilty on January 18, 2018, to one count of wire fraud and one count of making false statements. He is scheduled to be sentenced on April 12, 2018.

SACRAMENTO, Calif. — A claims representative for the Social Security Administration in Sacramento, was found guilty today in federal court for conspiring to commit immigration fraud and falsifying government records, U.S. Attorney McGregor W. Scott announced.

After four days of trial, a jury convicted Nelli Kesoyan, 45, of Rancho Cordova, of one count of conspiring to make false statements in a matter related to naturalization and citizenship and to obstruct, impede, or influence a pending agency proceeding, and one count of falsifying government records. The trial was held before U.S. District Judge Garland E. Burrell Jr.

According to evidence presented at trial, in January 2014, Kesoyan conspired with others to make false statements in Vanik Movsesyan’s application for naturalization, submitted to U.S. Citizenship and Immigration Services (USCIS). Kesoyan’s co-conspirators included her husband, Grigor Kesoyan and Movsesyan, both of whom pleaded guilty for their roles in the conspiracy.

Kesoyan and her co-conspirators agreed to make false statements under oath to USCIS regarding Movsesyan’s residence. Kesoyan used her position with SSA to repeatedly access Movsesyan’s SSA file and create fraudulent letters to support Movsesyan’s naturalization application. When a USCIS immigration officer continued to question whether Movsesyan actually lived in Sacramento (in fact he lived in Burbank, California), the conspirators began creating and submitting additional false documents to support the lies. Kesoyan again used her job at SSA to, access Movsesyan’s SSA file and create yet another fraudulent letter in September 2014, submitted in support of the lies to USCIS. Kesoyan also had another individual, who could not read or write in English, notarize an affidavit written in English that claimed Movsesyan lived at his house in Sacramento; this affidavit was also submitted to USCIS.

As the evidence at trial showed, Kesoyan engaged in additional misconduct. When USCIS’s Fraud Detection and National Security officers conducted a November 17, 2014, site visit at Movsesyan’s purported Sacramento residence, Kesoyan got on the phone with the actual resident and directed him to lie to USCIS officers. Concerned that the resident was not saying what he was supposed to say, Kesoyan also sent her husband, Grigor Kesoyan, and another individual to the residence to make statements to USCIS officers.

This case is the product of an investigation by the Social Security Administration’s Office of Inspector General, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Internal Revenue Service Criminal Investigation, and the Federal Bureau of Investigation. Assistant U.S. Attorneys Nirav K. Desai and Jeremy J. Kelley are prosecuting the case.

After the verdict, Kesoyan was taken into custody. Movsesyan and Grigor Kesoyan previously pleaded guilty to the conspiracy. On March 3, 2017, Grigor Kesoyan was sentenced to time served and two years of supervised release.

Nelli Kesoyan and Movsesyan are scheduled to be sentenced by Judge Burrell on April 27, 2018. Kesoyan 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.