Eastern District of California

BAKERSFIELD, Calif. — Ten defendants were indicted by a federal grand jury today following a multi-agency operation in Bakersfield on Tuesday, U.S. Attorney Phillip A. Talbert announced.

After a 10-month investigation that began in March 2017, more than 35 members and associates of the West Side Crips (WSC), a local criminal street gang, were arrested this week on federal and state charges including burglary, illegal gun possession, drug sales, and murder. State and federal law enforcement teams also executed more than 30 residential search warrants.

The alleged crimes presented in the federal and state cases include weapons violations, unlawful possession of a firearm, assault with a deadly weapon, robbery, money laundering, methamphetamine sales, crack cocaine sales, opiate sales, attempted murder and murder. The affidavit supporting the criminal complaint also details WSC members’ plan to shoot into a crowd of approximately 200 people, including rival gang members, at a local park in early October 2017. Their plan was thwarted by law enforcement as a result of this investigation.

These Bakersfield residents were indicted today: Tommie Thomas, 35, charged with distribution of methamphetamine; William Thomas, 35, charged with distribution of crack cocaine; Danny Willis, 33, charged with being a felon in possession of a firearm; Gary Pierson, 36, charged with being a felon in possession of a firearm; Ladaireus Jones, 24, charged with being a felon in possession of a firearm; Bernard Warren, 18, charged with being a felon in possession of a firearm; Manuel Cruz III, 37, charged with conspiracy to possess with intent to distribute marijuana and conspiracy to interfere with commerce by threats or violence; Luis Fernandez, 26, charged with distribution of methamphetamine; Myron Dewberry, 44, charged with being a felon in possession of a firearm; and Bryshanique Allen, 21, charged with money laundering.

U.S. Attorney Talbert stated: “This operation is another example of how my office has worked closely with our state, local and federal law enforcement partners to combat violent criminal street gangs and their associates. As part of our Project Safe Neighborhood initiative, we are committed to collaborating with these partners to hold accountable those who make our communities unsafe.”

Bakersfield Police Chief Lyle Martin stated, “This gang has victimized our city through a system of murder and intimidation. We are using the resources of our city, county, state and federal authorities to stop senseless acts of gun violence that are traumatizing and killing our city’s children. This is the enforcement piece to the department’s community-wide approach to addressing gang violence.”

“Violent gangs threaten the safety and well-being of entire communities, blighting the neighborhoods they dwell in and placing lives of innocent bystanders at risk,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “The FBI is committed to working with our law enforcement partners to identify, disrupt, and dismantle gangs to protect the public. We also rely on our community relationships in the effort to remove violent gangs from neighborhoods to ensure our region and families have an opportunity to thrive.”

“My office remains dedicated to working with all law enforcement agencies to successfully solve and prosecute the perpetrators of these violent crimes,” said Kern County District Attorney Lisa Green.

“This violent gang has killed innocent people and escalated violence in our Bakersfield neighborhoods. The successful takedown shows that when local, state and federal law enforcement authorities work together to combat violence, we can improve our communities. We are committed to making our neighborhoods safer by prosecuting street gangs to the fullest extent of the law,” said California Attorney General Xavier Becerra.

This case is the product of an investigation by the Federal Bureau of Investigation, California Department of Justice, California Highway Patrol, Bakersfield Police Department, and Kern County District Attorney’s Office. Assistant U.S. Attorneys Angela Scott and Vincenza Rabenn are prosecuting the case.

More than 300 law enforcement personnel from over 20 law enforcement agencies participated in the operation. In addition to the investigating agencies, the following agencies participated in the arrests and searches: Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), United States Marshals Service, U.S. National Guard, California Department of Corrections and Rehabilitation, California Department of Justice Bureau of Firearms, Fresno Methamphetamine Task Force (FMTF), Merced Area Gang Narcotic Enforcement Team (MAGNET), Madera Narcotic Enforcement Team (MADNET), Tulare Area Regional Gang Enforcement Team (TARGET), Kern County Probation Department, Kern County Sheriff’s Department, Kings County Sheriff’s Office, Tulare County Sheriff’s Office, and Coalinga Police Department.

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

If convicted of distribution of methamphetamine, the defendants face a statutory sentence of 10 years to life in prison and a $10 million fine. The maximum statutory penalty for distribution of crack cocaine is 20 years in prison and a $1 million fine. The maximum statutory penalty for being a felon in possession of a firearm is 10 years in prison and a $250,000 fine. The maximum statutory penalty for conspiracy to possess with intent to distribute marijuana is five years in prison and a $250,000 fine. The maximum statutory penalty for conspiracy to interfere with commerce by threats or violence is 20 years in prison and a $250,000 fine. The maximum statutory penalty for conspiracy to commit money laundering is 20 years in prison and a $500,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Helaman Hansen, 65, of Elk Grove, was sentenced today to 20 years in prison by U.S. District Judge Morrison C. England Jr. for operating an elaborate adult-adoption fraud scheme that targeted undocumented aliens, U.S. Attorney Phillip A. Talbert announced. Judge England also ordered Hansen to pay $576,264 in restitution.

On May 9, 2017, after an 11-day trial, a federal jury found Hansen guilty of 12 counts of mail fraud, three counts of wire fraud, and two counts of encouraging and inducing illegal immigration for private financial gain.

U.S. Attorney Talbert stated: “The sentence today acknowledges the vast number of people victimized by the defendant. He preyed upon hundreds of people who wanted to find a pathway to American citizenship and exploited their hopes and dreams for his own financial gain. The defendant’s lies and false promises caused many to part with substantial amounts of money, and in some instances, a lifetime’s worth of savings. I want to thank our federal partners at ICE’s Homeland Security Investigations and the FBI for their hard work in bringing the defendant justice.”

“Today’s decision should send a clear message to anyone who chooses to take advantage of innocent victims who are only trying to make a better life for themselves,” said Ryan L. Spradlin, special agent in charge of HSI San Francisco. “HSI continues to work closely with our law enforcement partners to seek out and arrest opportunistic swindlers who misrepresent our nation’s immigration laws for their own personal gain.”

“The FBI is committed to identifying and investigating fraud, especially when such crimes prey upon the most vulnerable people in our community. Legitimate pathways to citizenship for undocumented immigrants exist but adult adoption is not one of them. Unfortunately, Hansen knowingly accepted funds for adult adoption processes despite being informed that such would not aid his victims with obtaining citizenship,” said Special Agent in Charge Sean Ragan of the Federal Bureau of Investigation’s Sacramento Field Office.

According to evidence presented at trial, between October 2012 and January 2016, Hansen and others used various entities such as Americans Helping America (AHA) to sell memberships in what he called a “Migration Program.” A central feature of the program was the fraudulent claim that immigrant adults could achieve U.S. citizenship by being legally adopted by an American citizen and completing a list of additional tasks. At first, memberships were sold for an annual fee of $150, but that fee grew and eventually was as high as $10,000.

Although some victims completed the adoption stage of the “Migration Program,” not one person obtained citizenship. As early as October 2012, Hansen had been informed by the U.S. Citizenship and Immigration Services that aliens adopted after their 16th birthday could not obtain citizenship in the manner Hansen was promoting. Despite that notification, Hansen and others acting at his direction induced approximately 500 victims to pay more than $1 million to join the fraudulent program.

This case was the product of an investigation by the Federal Bureau of Investigation and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorneys André M. Espinosa and Katherine T. Lydon prosecuted the case.

SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Glenn Everett Waltman, 56, of Valley Springs, charging him with possessing methamphetamine and marijuana with intent to distribute, and possessing a firearm as a felon, United States Attorney Phillip A. Talbert announced.

According to court documents, on November 28, 2017, law enforcement officers stopped the vehicle Waltman was driving and found approximately 1.5 pounds of crystal methamphetamine, 13 pounds of marijuana, and a loaded .40 caliber pistol. As a previously convicted felon, Waltman is prohibited from possessing a firearm.

This case is the product of an investigation by the Shasta Interagency Narcotics Task Force, the Anderson Police Department, and the U.S. Drug Enforcement Administration.

If convicted of the methamphetamine charge, Waltman faces a mandatory minimum penalty of 20 years in prison, and a maximum penalty of life in prison and a $20 million fine. If convicted of the marijuana or firearms charges, Waltman faces a maximum penalty of 10 years in prison. 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 several variables. These charges are only allegations; the defendant is presumed innocent until proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Tion Makeise Foster, 22, of Point Arena, pleaded guilty today to sex trafficking of a minor, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Foster and co-defendant Monica Merlin Morales, 26, also of Point Arena, transported a 16‑year-old female victim to various places in the Eastern District of California and the San Francisco Bay Area in August 2016 so that she could engage in commercial sex acts for their financial benefit. They allegedly conspired to traffic her again in November and December that same year.

This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the Yuba County Sheriff’s Office. Assistant U.S. Attorney Michele Beckwith is prosecuting the case.

Foster is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on April 18, 2018. Foster 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.

Charges are pending against Morales. The charges against her are only allegations; she 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. — Emma Carter-Alexander, 66, of Vallejo, was sentenced today by United States District Judge John A. Mendez to one year in prison and ordered to pay $298,168.20 in restitution for converting public money to her own use, United States Attorney Phillip A. Talbert announced.

According to court documents, since the death of Carter-Alexander’s mother in 1993, Carter-Alexander has been collecting her mother’s Social Security disability benefits for her own use. To facilitate this fraud, Carter-Alexander filed yearly representative payee statements falsely indicating that she was using the funds for her mother’s well-being, even though her mother was deceased. Over the course of 23 years, Carter-Alexander converted $298,168.20 in public money to her own use. 

This case was the product of an investigation by the Social Security Administration, Office of the Inspector General. Assistant United States Attorney Jeremy J. Kelley prosecuted the case.

BAKERSFIELD, Calif. — Today, the Federal Bureau of Investigation, the Bakersfield Police Department, the United States Attorney’s Office, the California Department of Justice, the California Highway Patrol, and the Kern County District Attorney’s Office announced the result of a multi-agency operation in Bakersfield that resulted in the arrest of more than 35 members and associates of the West Side Crips (WSC), a local criminal street gang on federal and state charges including burglary, illegal gun possession, drug sales, and murder. State and federal law enforcement teams also executed more than 30 residential search warrants.

The arrests are a result of a 10-month investigation that began in March 2017. Federal agents drafted a 200-page affidavit in support of federal complaints and search warrants that details several WSC members’ alleged crimes. The alleged crimes presented in the federal and state cases include weapons violations, unlawful possession of a firearm, assault with a deadly weapon, robbery, money laundering, methamphetamine sales, crack cocaine sales, opiate sales, attempted murder and murder. The affidavit also details WSC members’ plan to shoot into a crowd of approximately 200 people, including rival gang members, at a local park in early October 2017. Their plan was thwarted by law enforcement as a result of this investigation. A listing of the individuals arrested and the specific charges they face is attached to this release. The charges brought today are allegations — all defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

U.S. Attorney Talbert stated: “This operation is another example of how my office has worked closely with our state, local and federal law enforcement partners to combat violent criminal street gangs and their associates. As part of our Project Safe Neighborhood initiative, we are committed to collaborating with these partners to hold accountable those who make our communities unsafe.”

Bakersfield Police Chief Lyle Martin stated, “This gang has victimized our city through a system of murder and intimidation. We are using the resources of our city, county, state and federal authorities to stop senseless acts of gun violence that are traumatizing and killing our city’s children. This is the enforcement piece to the department’s community-wide approach to addressing gang violence. “

“Violent gangs threaten the safety and well-being of entire communities, blighting the neighborhoods they dwell in and placing lives of innocent bystanders at risk, “ said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “The FBI is committed to working with our law enforcement partners to identify, disrupt, and dismantle gangs to protect the public. We also rely on our community relationships in the effort to remove violent gangs from neighborhoods to ensure our region and families have an opportunity to thrive.”

“My office remains dedicated to working with all law enforcement agencies to successfully solve and prosecute the perpetrators of these violent crimes, “ said Kern County District Attorney Lisa Green.

"This violent gang has killed innocent people and escalated violence in our Bakersfield neighborhoods. Today's successful takedown shows that when local, state and federal law enforcement authorities work together to combat violence, we can improve our communities. We are committed to making our neighborhoods safer by prosecuting street gangs to the fullest extent of the law," said California Attorney General Xavier Becerra.

This case is the product of an investigation by the Federal Bureau of Investigation, California Department of Justice, California Highway Patrol, Bakersfield Police Department, and Kern County District Attorney’s Office. Assistant United States Attorneys Angela Scott and Vincenza Rabenn are prosecuting the case.

More than 300 law enforcement personnel from over 20 law enforcement agencies participated in today’s operation. In addition to the investigating agencies the following agencies participated in today’s arrests and searches: Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), United States Marshals Service, U.S. National Guard, California Department of Corrections and Rehabilitation, California Department of Justice Bureau of Firearms, Fresno Methamphetamine Task Force (FMTF), Merced Area Gang Narcotic Enforcement Team (MAGNET), Madera Narcotic Enforcement Team (MADNET), Tulare Area Regional Gang Enforcement Team (TARGET), Kern County Probation Department, Kern County Sheriff’s Department, Kings County Sheriff’s Office, Tulare County Sheriff’s Office, and Coalinga Police Department.

Federal defendants are as follows and are all residents of Bakersfield:

Tommie Thomas, 35, distribution of methamphetamine; William Thomas, 35, distribution of crack cocaine; Danny Willis, 33, felon in possession of a firearm; Gary Pierson, 36, felon in possession of a firearm; Ladaireus Jones, 24, felon in possession of a firearm; Bernard Warren, 18, felon in possession of a firearm; Manuel Cruz III, 37, conspiracy to possess with intent to distribute marijuana; Luis Fernandez, 26, distribution of methamphetamine; Myron Dewberry, 44, felon in possession of a firearm; and Bryshanique Allen, 21, money laundering.

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

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

BAKERSFIELD, Calif. — Today, the Federal Bureau of Investigation, the Bakersfield Police Department, the United States Attorney’s Office, the California Department of Justice, the California Highway Patrol, and the Kern County District Attorney’s Office announced the result of a multi-agency operation in Bakersfield that resulted in the arrest of more than 35 members and associates of the West Side Crips (WSC), a local criminal street gang on federal and state charges including burglary, illegal gun possession, drug sales, and murder. State and federal law enforcement teams also executed more than 30 residential search warrants.

The arrests are a result of a 10-month investigation that began in March 2017. Federal agents drafted a 200-page affidavit in support of federal complaints and search warrants that details several WSC members’ alleged crimes. The alleged crimes presented in the federal and state cases include weapons violations, unlawful possession of a firearm, assault with a deadly weapon, robbery, money laundering, methamphetamine sales, crack cocaine sales, opiate sales, attempted murder and murder. The affidavit also details WSC members’ plan to shoot into a crowd of approximately 200 people, including rival gang members, at a local park in early October 2017. Their plan was thwarted by law enforcement as a result of this investigation. A listing of the individuals arrested and the specific charges they face is attached to this release. The charges brought today are allegations — all defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

U.S. Attorney Talbert stated: “This operation is another example of how my office has worked closely with our state, local and federal law enforcement partners to combat violent criminal street gangs and their associates. As part of our Project Safe Neighborhood initiative, we are committed to collaborating with these partners to hold accountable those who make our communities unsafe.”

Bakersfield Police Chief Lyle Martin stated, “This gang has victimized our city through a system of murder and intimidation. We are using the resources of our city, county, state and federal authorities to stop senseless acts of gun violence that are traumatizing and killing our city’s children. This is the enforcement piece to the department’s community-wide approach to addressing gang violence. “

“Violent gangs threaten the safety and well-being of entire communities, blighting the neighborhoods they dwell in and placing lives of innocent bystanders at risk, “ said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “The FBI is committed to working with our law enforcement partners to identify, disrupt, and dismantle gangs to protect the public. We also rely on our community relationships in the effort to remove violent gangs from neighborhoods to ensure our region and families have an opportunity to thrive.”

“My office remains dedicated to working with all law enforcement agencies to successfully solve and prosecute the perpetrators of these violent crimes, “ said Kern County District Attorney Lisa Green.

"This violent gang has killed innocent people and escalated violence in our Bakersfield neighborhoods. Today's successful takedown shows that when local, state and federal law enforcement authorities work together to combat violence, we can improve our communities. We are committed to making our neighborhoods safer by prosecuting street gangs to the fullest extent of the law," said California Attorney General Xavier Becerra.

This case is the product of an investigation by the Federal Bureau of Investigation, California Department of Justice, California Highway Patrol, Bakersfield Police Department, and Kern County District Attorney’s Office. Assistant United States Attorneys Angela Scott and Vincenza Rabenn are prosecuting the case.

More than 300 law enforcement personnel from over 20 law enforcement agencies participated in today’s operation. In addition to the investigating agencies the following agencies participated in today’s arrests and searches: Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), United States Marshals Service, U.S. National Guard, California Department of Corrections and Rehabilitation, California Department of Justice Bureau of Firearms, Fresno Methamphetamine Task Force (FMTF), Merced Area Gang Narcotic Enforcement Team (MAGNET), Madera Narcotic Enforcement Team (MADNET), Tulare Area Regional Gang Enforcement Team (TARGET), Kern County Probation Department, Kern County Sheriff’s Department, Kings County Sheriff’s Office, Tulare County Sheriff’s Office, and Coalinga Police Department.

Federal defendants are as follows and are all residents of Bakersfield:

Tommie Thomas, 35, distribution of methamphetamine; William Thomas, 35, distribution of crack cocaine; Danny Willis, 33, felon in possession of a firearm; Gary Pierson, 36, felon in possession of a firearm; Ladaireus Jones, 24, felon in possession of a firearm; Bernard Warren, 18, felon in possession of a firearm; Manuel Cruz III, 37, conspiracy to possess with intent to distribute marijuana; Luis Fernandez, 26, distribution of methamphetamine; Myron Dewberry, 44, felon in possession of a firearm; and Bryshanique Allen, 21, money laundering.

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

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

FRESNO, Calif. — Fresno residents Brandi Marshall, 41, and Daniel Barrios Jr., 37, pleaded guilty today to conspiracy to commit wire fraud and bank fraud and conspiracy to launder money in connection with their embezzlement of money from a Fresno business, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Marshall was employed as the company’s bookkeeper between October 2014 and March 2016 and was responsible for, among other things, receiving and depositing checks from customers to pay their invoices. During that time, she and Barrios misappropriated more than 100 checks and fraudulently deposited them into Barrios’s personal bank account. Marshall and Barrios used money derived from the fraudulently deposited checks for personal purchases, including more than $35,000 to purchase and accessorize a 2016 Ford Mustang GT, and more than $25,000 to purchase a 2012 Dodge Challenger. Marshall created fictitious entries in the company’s computer accounting application to attempt to conceal the embezzlement. Together, Marshall and Barrios embezzled more than $1 million dollars.

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.

Marshall and Barrios are scheduled to be sentenced by U.S. District Judge Dale A. Drozd on March 12, 2018, and March 19, 2018, respectively. They face a maximum statutory penalty of 30 years in prison and a $1 million fine for conspiracy to commit wire fraud and bank fraud, and an additional 10 years in prison and $250,000 fine for conspiracy to launder money. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — Richard Anthony Matlock, 30, of Ceres, was sentenced today by Chief U.S. District Judge Lawrence J. O’Neill to 15 years in prison for distributing child pornography, U.S. Attorney Phillip A. Talbert announced.

“Downloading and distributing sexually explicit images and videos of young children not only creates lifelong scars for victims, but also creates a demand for the continuous production of the disturbing material,” said Ryan L. Spradlin, special agent in charge for HSI San Francisco. “HSI will continue to work tirelessly with our law enforcement partners to target criminals who prey on the most vulnerable members of society.”

According to court documents, between November 5, 2015, and September 22, 2016, in Stanislaus County, Matlock was found to have distributed through his cellphone between 300 and 600 images of minors engaged in sexually explicit conduct. The images also involved the portrayal of sadistic, masochistic, and other depictions of violence, and included depictions of pre-pubescent minors. According to court documents, Matlock has a prior conviction in the Stanislaus County Superior Court on April 9, 2015, for possession of child pornography.

This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Brian W. Enos prosecuted the case.

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

SACRAMENTO, Calif. — Earnest Marshall Badman, 31, of Marysville, was sentenced today to two years in prison by U.S. District Judge Garland E. Burrell Jr. for aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.

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 thefts of mail and Identity theft crimes committed against the public.”

According to court documents, in January and February of 2016, Badman executed a scheme to defraud banks by using credit cards and checks and identification documents of others obtained from stolen mail and burglaries.

On February 9, 2016, Badman was arrested after a high speed chase in a stolen vehicle in Colusa County. The vehicle pursuit ended in the backyard of an Arbuckle home. Badman attempted to flee on foot but was arrested. At the time of his arrest, Badman possessed burglary tools, credit cards in the names of others, and stolen mail. He possessed the mail and identity information of over 40 victims and over 15 different credit cards for fraudulent use.

This case was the product of an investigation of the U.S. Postal Inspection Service with assistance from the Yuba County Sheriff's Office, California Highway Patrol, Butte County Sheriff’s Office, and the Yuba County Probation Department. Assistant U.S. Attorney Michelle Rodriguez prosecuted the case.

SACRAMENTO, Calif. — A federal grand jury returned a sealed three-count indictment last week, against Cameron Fox, 34, of Rocklin, charging him with online enticement of a minor for sexual purposes, production of child pornography, and possession of child pornography, U.S. Attorney Phillip A. Talbert announced. The indictment was unsealed after Fox’s arrest on December 5, 2017. Fox was arraigned on Tuesday and he pleaded not guilty.

According to court documents, it is alleged that Fox enticed a minor to meet with him to engage in sexual activity, and that he produced child pornography of that same minor on at least one occasion. It is also alleged that Fox possessed other child pornography. Fox’s next court date is January 4, 2018.

This case is the product of an investigation by the Federal Bureau of Investigation and the Marin County Sheriff’s Office. Assistant U.S. Attorney Rosanne Rust is prosecuting the case.

If convicted, Fox faces a maximum statutory penalty of life 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.justice.gov/psc. Click on the “resources” tab for information about Internet safety.

SACRAMENTO, Calif. — Earlier today, a federal jury found two men guilty in a bank fraud scheme that sought to fraudulently eliminate home mortgages and then profit on the subsequent home sales, U.S. Attorney Phillip A. Talbert announced.

George B. Larsen, 56, formerly of San Rafael, was found guilty of conspiracy and four counts of bank fraud. Larry Todt, 65, formerly of Malibu, was found guilty of conspiracy and one count of bank fraud.

According to court documents, between April 22, 2010, and November 18, 2011, Larsen and Todt were members of a conspiracy that ran a “mortgage elimination program” purporting to help distressed homeowners avoid foreclosure.  The conspirators fraudulently altered the chain of title on residential properties, sold the properties, and received the sales proceeds.

As a requirement for participation in the “mortgage elimination program,” the conspirators enrolled homeowners as members in a Nevada City-based church named Shon-te-East-a, Walks With Spirit, or its successor entity Pillow Foundation. The conspirators indicated to the homeowners these entities would offer protection against the banks.

Larsen and Todt each ran branches of the mortgage elimination program, recruiting homeowners into the scheme, marshalling the necessary recorded documents, and guiding the homes through sale. Once the homeowner enrolled with Shon-te-East-a or Pillow Foundation, Larsen and Todt would have a sham deed of trust created and recorded, giving the impression that the homeowner had refinanced the mortgage loan with a new lender. In reality, the new lender was a fake entity controlled by the conspirators, and the homeowner owed no money to the purported new lender.

The next step in the process was also a recorded document. The conspirators caused a fake deed of reconveyance to be recorded, giving the appearance that the true mortgage loan had been discharged and that the true lienholder no longer had a security interest in the home.

With title appearing to be clear, the conspirators caused the sale of the home, with the proceeds split between the co-conspirators and the homeowners.

In total, 37 properties were sold through the Shon-te-East-a conspiracy. The conspirators recorded fraudulent documents on an additional approximately 100 homes, but were unable to sell these before the scheme unraveled.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Audrey B. Hemesath and Todd A. Pickles are prosecuting the case.

Three other co-defendants have previously entered guilty pleas. On April 21, 2017, Remus A. Kirkpatrick, formerly of Oceanside, pleaded guilty to one count of falsely making writings of lending associations. On May 26, 2017, Michael Romano, of Benicia, pleaded guilty to conspiracy, and on July 14, 2017, Laura Pezzi, of Roseville, pleaded guilty to falsely making writings of lending associations. They are scheduled to be sentenced on February 23, 2018.     Co-defendants John Michael DiChiara, of Penn Valley, and James Castle, of Santa Rosa, are still awaiting trial. The charges against DiChiara and Castle are only allegations:  both defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.

In related cases, on September 4, 2015, Tisha Trites and Todd Smith, both of San Diego, pleaded guilty to related charges before U.S. District Judge Garland E. Burrell, Jr. They are scheduled to be sentenced on February 9, 2018.

Larsen and Todt are scheduled to be sentenced by U.S. District Judge Garland E. Burrell, Jr. on March 16, 2018, at which time they each face a maximum penalty of five years in prison and a $250,000 fine. The maximum penalty for bank fraud is 30 years and a $1 million fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — Jason Sebastian Sparks, 29, of Oroville, was sentenced today by U.S. District Judge John A. Mendez to 14 years in prison, followed by 15 years of supervised release, for receipt of child pornography, U.S. Attorney Phillip A. Talbert announced.

U.S. Attorney Talbert stated: “This sentence sends a strong message to those who try to remain anonymous while committing child exploitation crimes on the Internet that no matter what techniques they use, they risk being caught and prosecuted. Law enforcement is continually developing new ways to detect such criminals and bring them to justice. My office is committed to protecting the most vulnerable members of our society and to working with our state, local, and federal law enforcement partners to prosecute those involved with the exploitation of children.”

“Victims of child pornography aren’t just pixels on a screen,” said Sean Ragan, Special Agent in Charge of the FBI Sacramento Field Office. “They are real children subject to horrific abuse. The internet may provide users with a veil of anonymity, but the FBI and our partners will overcome challenges to track down offenders and bring justice to innocent victims.”

According to court documents, this case arose from an FBI undercover investigation into Playpen, a highly sophisticated, hidden website dedicated to the advertisement and distribution of child pornography that operated on the Tor network from August 2014 until March 2015. The Tor network offers users anonymity by concealing the actual Internet Protocol (IP) address of its users. In February 2015, the FBI seized the computer server hosting Playpen from a webhosting facility in North Carolina. Pursuant to a federal court order in the Eastern District of Virginia, the website operated under FBI supervision for a two-week period, during which the FBI collected information to identify users of Playpen.

Playpen had more than 150,000 members who created and viewed tens of thousands of postings related to the sexual abuse of children. Images and videos shared through the site were highly categorized according to victim age and gender, as well as the type of sexual abuse depicted in the various images. The site also included discussion forums that included tips for grooming children and avoiding detection by law enforcement.

During its investigation, the FBI determined that a user connected to an IP address operating at Sparks’ Oroville residence had accessed Playpen for approximately three hours and 13 minutes over a two-day period in March 2015. Investigators subsequently searched Sparks’ residence and seized a computer that Sparks used to download child pornography from the Tor network. In a statement to investigators, Sparks admitted to accessing Playpen and to using the Tor network to download child pornography. Sparks also admitted that he had previously sexually abused an approximately six-year-old child on five occasions.

As a result of the FBI’s operation, at least 350 U.S.-based individuals have been arrested nationwide, 25 producers of child pornography have been prosecuted, 51 alleged hands-on abusers have been prosecuted and 55 American children who were subjected to sexual abuse have been identified or rescued.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Shelley Weger is prosecuting the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

SACRAMENTO, Calif. — Three indictments have been unsealed, charging several DMV employees and others for their roles in a conspiracy to sell California Class A commercial driver’s licenses (CDL) to unqualified drivers, U.S. Attorney Phillip A. Talbert announced. These indictments are related to three earlier indictments stemming from the same investigation.

U.S. v. Jagpal Singh, et al., 2:17-cr-210 MCE

On November 16, 2017, five Southern California residents were charged in a 43-count indictment. According to court documents, Jagpal “Paul” Singh, 59; Jagdish Singh, 55; Tajinder Singh, 34; and Parminder Singh, 27, allegedly paid bribes to DMV employees to access and alter records in the DMV’s database in Sacramento. Records were allegedly altered to show that applicants for CDLs had passed the required tests when, in truth, they had not done so, and in some cases had not even taken the tests. In so doing, this caused the DMV to issue permits and completed CDLs despite the applicants not having taken or passed those tests. Jagdish Singh and Tajinder Singh are also alleged to have conspired with co‑defendant Shawana Denise Harris, 47, who worked at the Rancho Cucamonga DMV Office, paying her to get commercial permits for applicants without them having to take or pass the written CDL test. On November 2, 2017, Kari Scattaglia and Lisa Terraciano pleaded guilty for their roles in the conspiracy. (case number 2:17-cr-187 GEB).

United States v. Mahboob, 2:17-cr-213 TLN

On November 16, 2017, Rahim Mahboob, 66, of Los Angeles, was charged in a 13-count indictment alleging that he conspired with Terraciano, paying her to alter DMV records to incorrectly indicate that applicants had passed written exams for CDLs when, in fact, they had not taken or passed those exams. These fraudulent entries in the DMV’s database caused the DMV to issue permits and ultimately CDLs to Mahboob’s clients.

United States v. Lima, et al., 2:17-cr-212 JAM

On November 16, 2017, two Stockton residents were charged in an 11-count indictment. According to court documents, Ruvila “Ruby” Lima, 49, and Poya “Sameer” Khanjan, 26, conspired with Juan Arturo Arroyo Gomez and Donald E. Freeman Jr. (charged in case number 2:17-cr-207 MCE) to acquire commercial driving permits for individuals who had not taken or passed the written exam. Freeman, a DMV employee in the Tracy DMV office, allegedly accessed the DMV database without authorization to alter DMV records to fraudulently show that the tests were passed. Freeman and Arroyo are scheduled to appear on December 13, 2017 for initial appearance and waiver of indictment, and to plead guilty to the information charging them with conspiracy to commit bribery, identity fraud, and unauthorized access to a computer, on December 14, 2017 at 10:00 a.m. before the Honorable Morrison C. England, Jr.

Additionally, on November 17, 2017, Aaron Gilliam, 50, of Los Angeles, pleaded guilty to conspiring to commit bribery, identity fraud, and unauthorized access of a computer (case number 2:17-cr-200 GEB). According to court documents, Gilliam was a DMV employee at the North Hollywood Office and accepted bribes in exchange for altering DMV records to provide permits for commercial driver’s licenses for applicants who had not taken or passed the necessary examinations.

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

If convicted, the defendants each faces a maximum statutory penalty of five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

The charges as to the defendants who have not pleaded guilty are only allegations; these defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — Marci Jessie Ramirez, 46, of Fresno, pleaded guilty today to mail fraud and aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between July 2013 and October 2015, Ramirez misappropriated other peoples’ personal identifying information, which she acquired in some cases from client intake forms she accessed through her former employer, and used that information to fraudulently open bank accounts at federally insured financial institutions. Ramirez obtained and deposited counterfeit or altered checks into these bank accounts and ultimately withdrew cash or used funds from the deposits for personal purchases. Ramirez also illicitly used other peoples’ credit card information to purchase items for her personal benefit. For instance, according to Ramirez’s plea agreement, she purchased a $5,000 duo reverse transfer printer using one of her victim’s credit card account information.

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

Ramirez is scheduled to be sentenced by Chief U.S. District Judge Lawrence J. O’Neill on March 5, 2018. Ramirez faces a maximum statutory penalty of 20 years in prison for mail fraud and an additional mandatory two-year term in prison for aggravated identity theft, 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. — Two Woodland residents pleaded guilty today to a scheme to steal identities from mail obtained by fraudulent vacation holds and mail forwarding requests filed online, U.S. Attorney Phillip A. Talbert announced.

Latomba Bishop, 32, pleaded guilty to mail fraud and aggravated identity theft, and Joshua Yadon, 34, pleaded guilty to conspiracy to obtain mail by fraud.

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 thefts of mail and identity theft crimes committed against the public.”

According to court documents, Bishop, Yadon, and Norman Thompson, 36, of Sacramento, conspired to obtain credit cards, checks, and merchandise in victims’ names and then diverted these items from the victims’ true addresses to the conspirators’ addresses using fraudulent vacation holds and mail forwarding requests filed online with the U.S. Postal Service. The defendants were captured on video using fraudulently obtained credit cards at various retailers in the Sacramento area.

For her part, Bishop made a $1,000 online purchase of shoes using a victim’s compromised online merchant account. When the victim reported the fraud and the shipment was canceled, Bishop called the company, posing as the victim, and demanded she be reimbursed for the purchase. Bishop directed the company to mail checks to Bishop’s own address.

According to the plea agreements, on April 19, 2017, Yadon and Bishop bought over $1,000 in merchandise at a home improvement store using a credit card obtained through the scheme.

This case is the product of an investigation by the United States 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.

On October 5, 2017, co-defendant Thompson was sentenced by U.S. District Judge Troy L. Nunley to three years and 10 months in prison after pleading guilty to conspiring to obtain mail by fraud. He was ordered to pay $38,086 in restitution to victims of the scheme.

Yadon and Bishop are scheduled to be sentenced by Judge Nunley on February 15, 2018. Yadon faces a maximum statutory penalty of five years in prison and a $250,000 fine. Bishop faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — Cardiovascular Consultants Heart Center (CVC Heart Center), a cardiology clinic with offices in Fresno and Clovis, and its shareholder physicians — Dr. Kevin Boran, Dr. Michael Gen, Dr. Rohit Sundrani, Dr. Donald Gregory, and Dr. William Hanks — will pay $1.2 million to resolve federal and state False Claims Act allegations that they improperly performed and billed federal and state health care programs for medically unnecessary cardiovascular diagnostic procedures, U.S. Attorney Phillip A. Talbert announced.

The settlement resolves allegations that between January 1, 2010, and December 31, 2015, CVC Heart Center submitted claims for cardiovascular nuclear imaging (nuclear stress tests) that were not medically necessary or reasonable. It is alleged that the CVC physicians automatically scheduled patients for nuclear stress tests on an annual basis without seeing the patients beforehand to confirm that the procedure was necessary. A nuclear stress test is an expensive procedure that exposes patients to a significant amount of radiation through the injection of radioactive dyes, as well as to the risk of invasive procedures based on false positive results. This risk is only justified if the nuclear stress test is medically necessary. A Centers for Medicare & Medicaid Services (CMS) Local Coverage Determination prohibited the use of nuclear stress tests as a screening procedure.

This case was pursued by Assistant U.S. Attorney Edward Baker through a coordinated effort with the Department of Health and Human Services Office of Inspector General and Office of General Counsel, the Federal Bureau of Investigation, and the California Department of Justice, Bureau of Medi-Cal Fraud and Elder Abuse.

The claims settled by this agreement are allegations only, and there has been no determination of liability.

SACRAMENTO, Calif. — Simone Aguilar, 45, of Vallejo, was sentenced today to seven years and three months in prison by U.S. District Judge Garland E. Burrell Jr. for a scheme to buy multiple vehicles using stolen identities, U.S. Attorney Phillip A. Talbert announced.

On October 7, 2016, Aguilar pleaded guilty to possession of device-making equipment and aggravated identity theft. On September 1, 2015, co-defendant Gurpinder Sandhu, 49, formerly of Vallejo, pleaded guilty; on March 4, 2016, he was sentenced to nine years in prison.

According to court documents, in September 2014 law enforcement agents began investigating reports of numerous vehicles being fraudulently purchased with stolen identities from car dealerships throughout the Northern and Eastern Districts of California. The investigation led to the residence of Aguilar and Sandhu, where law enforcement found three of the fraudulently obtained vehicles: a 2014 Nissan Rogue, a 2014 Dodge Challenger, and a Harley Davidson motorcycle.

Inside the residence, law enforcement agents found many counterfeit items, including credit cards and California driver’s licenses. Law enforcement agents also found device-making equipment to manufacture these counterfeit items. This equipment included an embossing machine, cameras, printers, scanners, materials and chemicals used to produce identification cards, state seals, and a blue backdrop on the wall to imitate a California Department of Motor Vehicles background for photo IDs. Agents also found documents containing the names of real people, such as rental agreements, Comcast bills and sales receipts.

Based on the fraudulent documents found in the apartment, law enforcement agents identified at least 50 victims of identity theft. Aguilar and Sandhu used these identities to fraudulently purchase vehicles from car dealerships and retail goods from commercial stores such as Macy’s.

Aguilar and Sandhu succeeded in getting at least seven vehicles in this manner. In addition to the three vehicles named above, Sandhu fraudulently obtained a 2013 Yamaha motorcycle, a 2010 Chevrolet Corvette, a 2013 Dodge Challenger and a 2013 Dodge Charger.

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 Highway Patrol. Assistant U.S. Attorney Matthew D. Segal prosecuted the case.

FRESNO, Calif. — A federal jury in Fresno today found Adam Alan Henry, 39, of Turlock, guilty of conspiring to sexually exploit a minor and receipt or distribution of child pornography, U.S. Attorney Phillip A. Talbert announced.

According to court documents and evidence produced at trial, from May 2012 until September 19, 2013, Henry conspired with another person to create video and still images of a minor engaged in sexually explicit conduct. From 2007 through September 2013, Henry used a file-sharing program to receive child pornography.

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

The court has scheduled a sentencing hearing for March 5, 2018, at which time Henry faces maximum possible punishments of 15-30 years in prison for the conspiracy to sexually exploit a minor charge and 5-20 years in prison for the receipt of child pornography charge. For both charges there is a possible lifetime term of supervised release, a mandatory $100 penalty assessment, and a possible $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. — Billee Vang, 26, and Dang Vue, 27, both of Sacramento, pleaded guilty today to a fraud scheme that involved manufacturing postal service locks and keys in order to steal U.S. Mail, steal identities and defraud financial institutions, U.S. Attorney Phillip A. Talbert announced.

Vang and Vue each pleaded guilty to bank fraud, aggravated identity theft, theft of stolen U.S. mail, stealing and reproducing postal service locks and keys, and unlawful possession of at least five identification documents for fraudulent purposes.

According to court documents, between January 13, 2017, and May 12, 2017, Vang and Vue stole mail throughout Sacramento and Placer Counties, including neighborhoods in Roseville, Elk Grove, and Sacramento. As part of their criminal scheme, Vang and Vue stole Postal Service locks and used them to reverse engineer counterfeit keys to facilitate theft of mail from neighborhood mailbox units.

Vang and Vue used the stolen mail, including checks and identification documents, to take over victim bank and credit accounts. Additionally, Vang and Vue used and attempted to use access devices, credit card convenience checks, and personal checks that had been stolen from postal customers to conduct unauthorized transactions at the expense of federally insured financial institutions.

This case is the product of investigation by the U.S. Postal Inspection Service with assistance from the Elk Grove Police Department, the Sacramento County Sheriff’s Office, and the Roseville Police Department. Assistant U.S. Attorney Michelle Rodriguez is prosecuting this case.

Vang and Vue are scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on February 16, 2018. Each defendant faces up to 30 years in prison for the bank fraud convictions, a mandatory consecutive two years in prison for aggravated identity theft. They also face up to five years in prison for theft of U.S. Mail, 10 years in prison for stealing and reproducing postal service locks and keys, and 15 years in prison for possessing over five identity documents for purposes of fraud.

SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today against Rodney Flucas, 49, of Stockton, charging him with transportation of a minor in interstate commerce with intent to engage in criminal sexual conduct, U.S. Attorney Phillip A. Talbert announced.

According to the indictment and a criminal complaint, Flucas is licensed in the states of Georgia, Oregon, and California to teach deaf and hard-of-hearing students. On March 22, 2017, his California license was suspended.

In 2014, Flucas moved himself and numerous family members from Georgia to Klamath Falls, Oregon. According to the criminal complaint, once in Oregon, Flucas allegedly began sexually abusing a 15-year-old minor. Eventually, in 2015, Flucas moved to Stockton, California, and took the then 16-year-old victim there too, and allegedly continued to sexually abuse her in California.

This case is the product of an investigation by the FBI, the Stockton Police Department and the San Joaquin County District Attorney’s Office. Assistant U.S. Attorneys Nirav Desai and Jeremy Kelley are prosecuting the case.

If convicted, Flucas faces a statutory minimum sentence of 10 years to a maximum of life 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.

FRESNO, Calif. —Jose Manuel Sanchez-Zapien (Sanchez), 38, a citizen of Mexico and resident of Dos Palos, pleaded guilty today to conspiring to manufacture marijuana and manufacturing marijuana in the Sequoia National Forest, U.S. Attorney Phillip A. Talbert announced.

According to court documents, on June 13, 2017, Sanchez was found at a drop point in the Slick Rock Creek drainage delivering supplies to growers at a marijuana cultivation site in Alder Creek in the Sequoia National Forest. The drop point has been used numerous times in the past as a supply drop point for marijuana growers to access marijuana grow sites in the Slick Rock Creek drainage. Law enforcement officers found over 20,952 marijuana plants at the Alder Creek site. According to the plea agreement, approximately three acres were almost completely stripped of vegetation and the ground was terraced to accommodate the marijuana plants. Large amounts of ammonium nitrate and other fertilizers were found at the site. Insecticide containers and other trash were scattered throughout the site.

Sanchez is scheduled for sentencing on February 5, 2018, by U.S. District Judge Dale A. Drozd. Sanchez faces a minimum statutory penalty of 10 years and up to life in prison and a $10 million fine. In pleading guilty, Sanchez also agreed to pay restitution to the U.S. Forest Service for damage to public land and natural resources caused by the cultivation operation. 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.

A superseding indictment filed in this case alleges that co-defendant Maximiliano Farias-Martinez (Farias), 48, also a citizen of Mexico and resident of Stevinson, California, supervised Sanchez and others associated with the grow site. Farias’ next court appearance is on November 27. He has entered a plea of not guilty to the charges. The charges, as to Farias, are only allegations, and he is presumed innocent until and unless proven guilty beyond a reasonable doubt.

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), the California Department of Fish and Wildlife and the Social Security Administration, Office of the Inspector General. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.

FRESNO, Calif. — Robert Farrace, 53, of Modesto, was convicted today of three counts of wire fraud in connection with a fraudulent short-sale scheme, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Farrace, an attorney specializing in real estate law and the current President of the Stanislaus County Bar Association, owned two properties in Modesto with substantial mortgage loans. By early 2010, Farrace was in default and received foreclosure notices for the two properties. In order to keep the properties and avoid foreclosure, Farrace formed an entity called “Dignitas LLC” to purchase the properties. Farrace controlled Dignitas, but listed a friend’s name on the paperwork as a nominal manager because he knew the bank would not sell the property to a related party. Farrace then submitted short sale offers to the bank that serviced the loans on both properties listing Dignitas and the nominee manager as the purchaser. Farrace misrepresented his relationship to Dignitas to induce the bank to approve the short sale. Because the servicing bank did not know of the true relationship, it went forward and completed one of the short sales. The short sale on the second party was stopped after law enforcement informed the bank of Farrace’s scheme. 

This case is the product of an investigation by the Federal Housing Finance Agency–Office of Inspector General, the Federal Bureau of Investigation, and the Stanislaus County District Attorney’s Office. Assistant U.S. Attorneys Michael G. Tierney and Shelley D. Weger are prosecuting the case.

Farrace is scheduled to be sentenced on February 12, 2018, by U.S. District Judge Lawrence J. O’Neill. Farrace 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.

SACRAMENTO, Calif. — Donald Burton, 51, of Vallejo, was sentenced today to a year in prison and a $10,000 fine for his part in a bribery scheme involving city contracts, U.S. Attorney Phillip A. Talbert announced.

“When public officials take bribes, they put their greed ahead of the interests of the people they serve,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “Donald Burton abused his position as a landscape manager in the City of Vallejo by seeking kickbacks in exchange for steering contacts to a private company. The FBI is committed to investigating public corruption. With the help of private citizens who take a stand against corrupt behavior, the FBI will continue to protect the integrity of government at all levels.”

Burton pleaded guilty on August 1, 2017. According to court documents, Burton was previously employed in the Public Works Engineering Division of the City of Vallejo as the landscape manager. In that position, Burton regularly contracted with local landscape companies to provide services for Vallejo. The City of Vallejo received substantial federal funding, including over $500,000 in Community Development Block Grants from the U.S. Department of Housing and Urban Development.

In the Spring of 2017, Burton solicited a bribe from the owner of a company that provides maintenance services, requesting a 10 percent kickback in exchange for steering contracts to that company. The business owner complained to the Federal Bureau of Investigation and assisted in the investigation by meeting with Burton in an undercover capacity. During those meetings, Burton directed that additional days of work be added to contracted jobs so that Burton and the owner could divide up the profit. Burton stated that the excess amount in the contracts would generally add up to $5,000, and that Burton would take $2,000.

According to the plea agreement, the business owner provided the written contracts that inflated the number of days required to do a job from 10 days to 15, and Burton approved and signed the contracts. On June 7, 2017, the business owner met with Burton and gave him the $2,000 bribe payment. Burton was arrested after taking the payment.

This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Jared C. Dolan prosecuted the case.

FRESNO, Calif. — Raymond Mireles Jr., 45, of Lamont, was sentenced on Monday by U.S. District Judge Lawrence J. O’Neill to 15 years and three months in prison, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Mireles admitted to conspiring with codefendant Marlene Isabel Medina and others to distribute crystal methamphetamine to various drug dealers and users in Kern County and elsewhere. Mireles admitted that he distributed and possessed with intent to distribute over 500 grams of crystal methamphetamine.

This case is the product of an investigation by the FBI Violent Crime Task Force, which includes officers of the Bakersfield Police Department. Assistant U.S. Attorney Brian K. Delaney is prosecuting the case.

FRESNO, Calif. — James Gonzales-Gay, 35, of Sanger, pleaded guilty today to assaulting a mail carrier with the intent to commit robbery and being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert 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 is the product of an investigation by the U.S. Postal Inspection Service and the Fresno Police Department. Assistant U.S. Attorney Laurel J. Montoya is prosecuting the case.

Gonzales-Gay is scheduled to be sentenced by Judge Lawrence J. O’Neill on February 5, 2018. Gonzales-Gay faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — Della Ornelas, 49, and Randall Ruff, 53, both of Fresno, were sentenced today by United States District Judge Dale A. Drozd to six months in prison for aiding others in the preparation of false tax returns, and making their own fraudulent tax returns as an employee of the United States, U.S. Attorney Phillip A. Talbert announced. They both were also ordered to serve six months in home confinement and to pay full restitution to the Internal Revenue Service.

According to court documents, Della Ornelas, 49, and Randall Ruff, 53, both of Fresno, are a married couple and were longtime employees of the Internal Revenue Service in Fresno. Between 2005 and 2013, they filed false tax returns for family and friends that added dependents, generating large tax refunds that were diverted into bank accounts they controlled sometimes without the knowledge of the taxpayer. They also filed false tax returns for themselves, fraudulently adding dependents that they were not entitled to claim. Over a seven‑year period, Ornelas defrauded the United States of approximately $76,897, and Ruff defrauded the United States of approximately $53,227.

This case was the product of an investigation by the Treasury Inspector General for Tax Administration and the Internal Revenue Service-Criminal Investigation. Assistant U.S. Attorney Mark J. McKeon is prosecuting the case.

FRESNO, Calif. — U.S. District Judge Anthony W. Ishii sentenced former Fresno deputy police chief Keith Foster, 53, today to four years in prison for drug trafficking activity with family and friends, U.S. Attorney Phillip A. Talbert announced.

Keith Foster resigned from his position on April 3, 2015, one week after his arrest. On May 23, 2017, a federal jury in Fresno found Foster guilty of conspiracy to distribute and possess with intent to distribute heroin and conspiracy to distribute and possess with intent to distribute marijuana. Co-defendant Ricky Reynolds was sentenced today to 24 months of probation and six months of home detention.

“Earlier this year, a jury found Keith Foster guilty of violating the very laws he was sworn to enforce. By conspiring with others to distribute illegal drugs, Foster breached the trust that the community placed in him as deputy chief of the Fresno Police Department and invited the danger and violence associated with such activity into our neighborhoods,” said U.S. Attorney Talbert.

“Like other law enforcement officers we have convicted for similar crimes in this district, Foster abused his position of trust for his own financial gain,” U.S. Attorney Talbert continued. “Given that the abuse of methamphetamine, opioids, and other drugs causes such immense harm to our community, we will zealously prosecute those in such positions who put profit over duty. I am grateful for the hard work of the ATF and the FBI, together with the full cooperation of Fresno Police Chief Jerry Dyer, in bringing Foster to justice. My office is committed to working with our law enforcement partners to investigate and prosecute public corruption to the fullest extent of the law.”

“Our mission at ATF is to protect the public from violent criminals and criminal organizations,” said Assistant Special Agent in Charge Brice McCracken, San Francisco Field Division, Bureau of Alcohol, Tobacco, Firearms and Explosives. “In the pursuit of our commitment to the public, ATF special agents, alongside our partners at the FBI, followed evidence of a drug trafficking conspiracy that was occurring within the community. That investigation led directly to the former Deputy Police Chief of Fresno Keith Foster. Keith Foster’s actions jeopardized public safety and violated the trust of the citizens of Fresno he swore to protect. Today he faces the consequences for breaking that trust. However, his actions are not indicative of the Fresno Police Department and they will not deter ATF’s partnership with the department.”

“The American people expect law enforcement officers to obey the laws they are sworn to uphold, protect the public, and to serve as role models for their communities,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “Keith Foster abused the power and reputation of his position as deputy chief by engaging in drug trafficking, a crime that invites violence into the community he swore to protect and serve. Public corruption is an important and top criminal priority for the FBI, and we are grateful to those who bring allegations of public corruption to our attention.”

According to evidence presented at trial, between July 19, 2014, and March 26, 2015, Keith Foster conspired with his nephew Iran Dennis “Denny” Foster, 46, of Fresno, to obtain marijuana from Ricky Reynolds, 50, of Shasta Lake. Denny Foster regularly traveled to Reynolds’ residence to purchase marijuana. On one of these trips, Denny Foster was stopped by the California Highway Patrol in Merced County and arrested for possessing six pounds of marijuana in the trunk of his car. When he was arrested, his passenger called Keith Foster and Foster said that he “could have provided cover” for Denny Foster if he had known about the trip ahead of time. He also said he would call his “narc guys.”

Also according to evidence presented at trial, between December 23, 2014, and February 2, 2015, Foster conspired with co-defendant Rafael Guzman, 43, of Fresno, to obtain heroin for another person.

This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation. Assistant United States Attorneys Melanie L. Alsworth and Dawrence W. Rice Jr. are prosecuting the case.

Six others pleaded guilty before trial to various offenses related to the drug trafficking conspiracy. On July 10, 2017, Randy Flowers, 51, was sentenced to two years and nine months in prison, on August 14, 2017, Denny Foster, 46, was sentenced to a year and a half in prison. On October 11, 2016, Rafael Guzman, 43, of Fresno was sentenced to three years and four months in prison. Jennifer Donabedian, 37, of Fresno, pleaded guilty to concealing a felony and served 12 months’ probation. Sarah Ybarra, 39, of Fresno, pleaded guilty to conspiracy to distribute marijuana and served one year in prison.

SACRAMENTO, Calif. —Arthur Change Menefee, 46, of Stockton, was sentenced today by U.S. District Judge Morrison C. England Jr. to three years in prison and ordered to pay over $5 million in restitution, United States Attorney Phillip A. Talbert announced.

According to court documents, Menefee was a licensed real estate agent who aided unqualified buyers in obtaining loans to purchase properties. Some of the properties were sold by co‑defendant Aleksandr Kovalev, who offered kickbacks to the buyers that were not disclosed to the lenders. Menefee assisted the buyers in preparing loan applications that included false information, and used fictitious companies he created to generate false information about the buyers’ employment and income to support the fraudulent loan applications. At least 23 properties were involved in Menefee’s mortgage fraud scheme, with substantial losses to the lenders.

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 Todd A. Pickles is prosecuting the case.

To date, co-defendants Aleksandr Kovalev, Jannice Riddick, Florence Francisco, Adil Qayyum, Elsie Pamela Fuller, and Leona Yeargin have pleaded guilty and been sentenced. Two other defendants, Valeriy Vasilevitsky, charged in United States v. Vasilevitsky, 2:12-cr-344 KJM, and Ruth Willis, charged in United States v. Willis, 2:13-cr-00228 MCE, have also pleaded guilty and been sentenced with respect to their involvement in the scheme.

FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Michael Vincent Alvarez, 32, of Fresno, charging him with aiming the beam of a laser pointer at a Fresno Police Department helicopter, U.S. Attorney Phillip A. Talbert announced.

According to court documents, it is alleged that on October 22, 2017, just after midnight, 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.

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.

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

THREE DEFENDANTS CONVICTED ON ALL COUNTS FOR MORTGAGE FRAUD SCHEME INVOLVING 14 PROPERTIES

SACRAMENTO, Calif. — A federal jury in Sacramento convicted three Northern California residents today of crimes relating to their involvement in a mortgage fraud scheme, U.S. Attorney Phillip A. Talbert announced.

After a seven-day trial, the jury found Surjit Singh, 71, of Dublin, and his son, Rajeshwar Singh, 43, of Pleasanton, each guilty of four counts of mail fraud, four counts of bank fraud, and four counts of false statements on loan and credit applications. Anita Sharma, 55, of Gilroy, was found guilty of two counts of mail fraud, two counts of bank fraud, and two counts of false statements on loan and credit applications.

“Today’s verdict is yet another step in the efforts taken by this office and our partners at the FBI to bring to account those whose fraudulent activities contributed to the financial decline which had such a tremendous impact on our communities,” said U.S. Attorney Talbert. “We are gratified by the verdict and thankful for the hard work and dedication of our investigative partners.”

“One of the FBI’s top priorities is to combat major white-collar crimes such as mortgage fraud,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “Mortgage fraud has negatively impacted entire communities in our region by artificially influencing home values and threatening the investments of lawful buyers. To ensure a bright future for our region, identification and investigation of mortgage fraud schemes is imperative. We will continue to investigate such crimes to both deter would-be fraudsters from acting and ensure those who commit fraud face justice.”

According to court documents, in 2006 and 2007, Surjit Singh recruited individuals with good credit to act as straw buyers for residential properties owned by his family members and associates. Rajeshwar Singh, a licensed real estate agent, assisted in the scheme by submitting loan applications for the straw buyers. Anita Sharma, a dental assistant at the time, was one of the straw buyers. Because Sharma and the other straw buyers could not afford the homes based on their true incomes, the Singhs submitted fraudulent loan applications and supporting material to lending institutions that included false statements about the straw buyers’ income, employment, liabilities, and intent to occupy the homes as their primary residences.

At least 14 properties were involved in the scheme. Anita Sharma alone purchased five homes in San Jose, San Ramon, Elk Grove, Sacramento, and Modesto. Other straw buyers purchased or refinanced properties in Stockton, Modesto, Patterson, Lathrop and Tracy. All of these homes were ultimately either foreclosed upon or sold in a short sale where the bank lets homeowners sell their homes for less than is owed on the mortgage.

Sharma was paid for her involvement in the scheme. Rajeshwar Singh received financial benefits through broker commissions for the transactions and as the seller of seven of the properties. He also continued to occupy the San Ramon property at a time when Anita Sharma should have been living there. Surjit Singh benefitted through payments out of escrow directed to shell companies, such as SJR Investments and BK Investments, associated with his daughter and significant other, whose initials are SJR and BK respectively. These payments were purportedly for contracting services, which did not occur. He also benefitted through rental payments made to him and his significant other by the renters of the homes, as the straw buyers were not living in the homes. In addition, many of his family members received money by selling properties and had money directed to them out of escrow. According to court documents and evidence produced at trial, the defendants were responsible for the origination of more than $9.3 million in fraudulently procured residential mortgage loans.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Lee S. Bickley and Kelli L. Taylor are prosecuting the case.

The defendants are scheduled for sentencing on January 26, 2018. They face a maximum penalty of 30 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The court remanded Surjit Singh into custody.

FRESNO, Calif. — Edgar Alexander Gomez, 42, of Bakersfield, was sentenced today by Chief U.S. District Judge Lawrence J. O'Neill to two years and one day in prison for conspiracy to commit bank fraud and aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.

Gomez also was ordered to pay restitution for damage he caused to U.S. Postal Service facilities in connection with his criminal scheme. He pleaded guilty on May 31, 2016.

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 thefts of mail and Identity theft crimes committed against the public.”

According to court documents, between July and September 2012, Gomez stole identity documents from the U.S. Mail, such as driver’s licenses, social security cards, and credit and debit cards. On several occasions, he attempted to open bank accounts at federally insured financial institutions using the identities of people whose mail he had stolen. In connection with one of these attempts to fraudulently open bank accounts, Gomez attempted to negotiate a check after forging the payee’s signature.

This case was the product of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorneys Christopher D. Baker and Megan Richards prosecuted the case.

Co-defendant Jennifer Barthel, 37, also of Bakersfield, previously was sentenced to time-served for her role in the conspiracy. Co-defendant Augustine Castro Salazar, 48, also of Bakersfield, previously pleaded guilty to theft of U.S. mail, admitting that he and Gomez on five occasions in August 2012 broke open and stole mail from mail boxes at several U.S. Postal Service facilities in Bakersfield. Salazar is awaiting sentencing.

SACRAMENTO, Calif. — Kari Scattaglia, 39, of Newhall, and Lisa Terraciano, 51, of North Hollywood, pleaded guilty today to their roles in a conspiracy to sell Class A commercial driver’s licenses without the buyer having to take or pass the required tests, U.S. Attorney Phillip A. Talbert announced.

On October 18, 2017, Scattaglia and Terraciano were charged with conspiracy to commit bribery, identity fraud, and unauthorized access of a computer.

“The United States Attorney’s Office, together with its partners at the California Department of Motor Vehicles, the FBI, and ICE’s Homeland Security Investigations, is committed to investigating and prosecuting crimes such as these that violate the public trust and pose a risk to public safety,” stated U.S. Attorney Talbert.

“Homeland Security Investigations will continue to work with our partners to prevent document and benefit fraud schemes, especially when these schemes threaten the welfare of innocent people. The safety of the citizens of California is our paramount concern,” said Ryan L. Spradlin, Special Agent in Charge of U.S. Immigration Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), San Francisco.

According to court documents, since April 2007, Scattaglia worked as a manager, assistant manager, and a Licensing-Registration Examiner (LRE) at the Arleta DMV and the Granada Hills Driver License Processing Center. Terraciano worked for the DMV since June 2005 and was a Motor Vehicle Representative (MVR) in the Winnetka DMV office from 2014 through 2017. Among other things, Scattaglia and Terraciano were responsible for processing applications for California commercial driver’s licenses (CDLs). A CDL is required to operate tractor-trailer trucks on California and interstate highways, including, in some cases, transporting hazardous materials.

In exchange for the payment of money, Scattaglia and Terraciano each accessed the DMV’s database in Sacramento to alter the records of applicants to fraudulently show that the applicants had passed the required written tests when, in truth, the applicants had not passed the tests or, at times, even taken the written tests. In so doing, this caused the DMV to issue permits to those drivers as well as issue completed CDLs upon the applicants’ passing the behind-the-wheel driving tests. In addition, Scattaglia also accessed the DMV database to fraudulently alter applicants’ records to show that the applicants had passed the driving tests despite the applicants not having taken or passed those tests.

Based upon evidence obtained through the investigation, it was determined that Terraciano caused no less than 148 fraudulent CDLs, including permits, to be issued and that Scattaglia caused no less than 68 fraudulent CDLs, including permits, to be issued.

This case is the product of an investigation by the California Department of Motor Vehicles, Office of Internal Affairs, the Federal Bureau of Investigation, and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorneys Todd A. Pickles and Rosanne L. Rust are prosecuting the case.

This case is related to the charges in United States v. Klem, 2:15-cr-139 GEB, United States v. Singh, 2:15-cr-146 GEB, and United States v. Kimura, et al., 2:15-cr-161 GEB. Defendants Emma Klem and Kulwinder Dosangh Singh have pleaded guilty and await sentencing. Defendant Andrew Kimura pleaded guilty and was sentenced to three years and 10 months in prison. The remaining defendants in 2:15-cr-161 GEB are set for trial in April 2018; the charges against them are only allegations, and they are presumed innocent until and unless proven guilty beyond a reasonable doubt.

Scattaglia and Terraciano face 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.

SACRAMENTO, Calif. —Steven Vernon Roland, 44, formerly of Sacramento, pleaded guilty today to receipt of child pornography, United States Attorney Phillip A. Talbert announced. 

According to court documents, between December 28, 2013 and March 19, 2014, Roland knowingly received over 28,000 images and 50 videos depicting child pornography.  Roland was identified by law enforcement during an undercover investigation targeting use of peer-to-peer file sharing networks.

This case was the product of an investigation by the Sacramento Internet Crimes Against Children (ICAC) Task Force. Assistant United States Attorney Amy Schuller Hitchcock is prosecuting the case.

Roland is scheduled to be sentenced by Judge Garland E. Burrell, Jr. on January 19, 2018. Roland faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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

SACRAMENTO, Calif. — Raleigh Rana Figueras, 36, of Sacramento, was sentenced today by U.S. District Judge Morrison C. England Jr. for his role in a fraud and identity theft scheme, U.S. Attorney Phillip A. Talbert announced.

On February 9, 2017, Figueras pleaded guilty to bank fraud, aggravated identity theft, possession of stolen U.S. mail, and unlawful possession of five or more identification documents.

On March 16, 2017, Judge England sentenced Figueras’ estranged spouse, Michele Reyes Serrano, 35, also of Sacramento, to five years and 11 months in prison for bank fraud, aggravated identity theft, and possession of stolen U.S. mail.

According to court documents, between June 2015 and January 2016, Figueras, Serrano, and others obtained victim identities and financial information from stolen mail and other stolen property. They obtained personal and financial information and used it to pose as the identity theft victims and use their stolen bank accounts, access device numbers, and altered checks to get money, goods and services from banks and merchants. Figueras created counterfeit driver’s licenses on his computer. Surveillance cameras caught the defendants cashing checks or making purchases at Sacramento-area Target and Wal‑Mart stores.

This case was the product of an investigation by the U.S. Postal Inspection Service with the assistance of the Sacramento County Sheriff’s Department and the Sacramento County Probation Department. Assistant U.S. Attorneys Michelle Rodriguez and Rosanne L. Rust prosecuted the case.

The Postal Inspection Service conducted these investigations with assistance of its Narcotic and Economic Crimes Investigations Task Force (NECI). NECI is a partnership between local and federal law enforcement to combat theft and unlawful use of the U.S. Mail. The Placer County District Attorney’s Office and Sutter County Sheriff’s Office have each dedicated law enforcement personnel to the task force.

SACRAMENTO, Calif. — Emilio Marquez Barba, 39, of Sacramento, was sentenced today by U.S. District Judge Troy L. Nunley to 17 and a half years in prison for conspiring to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Barba was the leader and organizer of an attempted deal to sell 15 pounds worth of methamphetamine for $210,000 to undercover agents. When agents executed a search warrant on Barba’s residence, they found additional methamphetamine, cocaine packaged for distribution, marijuana, and a pipe bomb. Other weapons were found in connection with the co-conspirators. On July 20, 2017, Barba pleaded guilty to conspiring to distribute methamphetamine.

This case is the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Mountain and Valley Marijuana Investigation Team (MAVMIT). Assistant U.S. Attorney Todd A. Pickles is prosecuting the case.

Barba’s three co-defendants pleaded guilty in this case. Gabriel Vargas-Guerrero was sentenced to seven years in prison, Mario Lopez-Ayala was sentenced to five years and three months in prison, and Jose Jaime Diaz is set for sentencing on December 7, 2017, at 9:30 a.m.

FRESNO, Calif. — Carlos Gerrardo Blanco, 27, of Bakersfield, was sentenced yesterday by United States Chief District Judge Lawrence J. O'Neill to ten years in prison for conspiring to distribute methamphetamine, United States Attorney Phillip A. Talbert announced.

According to court documents, between November 2014 through December 2015, Blanco distributed and conspired with others to distribute methamphetamine to various drug dealers and users in Kern County and Las Cruces, New Mexico. During this time period, Blanco and the other defendants charged in this case admitted that they distributed over 1.5 kilograms of methamphetamine.

Based on wiretap evidence obtained in this case, investigators identified Salvador Morales, 28, and Jose Alejandro Jacobo, 25, both of Bakersfield, as the principal suppliers of methamphetamine to Blanco. Blanco was identified as the leader of a Bakersfield distribution organization that included Justin Alan Rivera, 22, Henry Polin Morales III, 22, and Josefina Blanco (Blanco’s wife), 25, all of Bakersfield. On May 6, 2015, Blanco purchased approximately five pounds of crystal methamphetamine in the Los Angeles area that he intended to sell with the help of Morales III, Josefina Blanco, and Rivera. DEA agents seized the drugs before they could be transported via bus to Las Cruces, New Mexico.   

On September 26, 2016, Salvador Morales was sentenced to over six years in prison; on March 13, 2017, Jacobo was sentenced to over seven years in prison; on August 14, 2017, Rivera was sentenced to five years in prison, and on September 25, 2017, Henry Morales III was sentenced to over seven years in prison. Josefina Blanco is scheduled to be sentenced on November 13, 2017, by Chief Judge Lawrence J. O'Neill.

This case was the product of an investigation by the Drug Enforcement Administration and Task Force Officers from the Kern County Probation Office. Assistant United States Attorney Brian K. Delaney prosecuted the case.

FRESNO, Calif. —Mario Alvarez-Muniz, 49, a citizen of Mexico and former resident of Taft, entered a guilty plea today to conspiring to distribute and possess with intent to distribute heroin, cocaine, and methamphetamine, United States Attorney Phillip A. Talbert announced. 

According to court documents, in December 2016, Alvarez-Muniz delivered two pounds of methamphetamine during an undercover operation, but subsequently left the United States for Mexico.  He returned to the United States and in May of 2017, orchestrated a shipment of six kilograms of heroin and eleven kilograms of cocaine from Bakersfield to Chicago.  The drugs were intercepted by law enforcement and the defendant was ultimately arrested.   

Alvarez-Muniz was previously detained as a flight risk and danger to the community and is scheduled for sentencing on January 22, 2018.  Alvarez-Muniz faces a mandatory minimum statutory penalty of 10 years in prison and a maximum penalty of life in prison, along with 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.

Darrell Leon Jennings, 49, a codefendant in the case, is currently a fugitive.

This case was the product of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation by the U.S. Drug Enforcement Administration, California Highway Patrol, Bakersfield Police Department, and Kern County Probation Office. The OCDETF Program is the centerpiece of the United States Attorney General's drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and related criminal enterprises. Assistant United States Attorney Karen Escobar is prosecuting the case.

SACRAMENTO, Calif. — Karapet Damaryan, 66, of Tujunga, CA, was sentenced today by United States District Judge Garland E. Burrell, Jr. to three years in prison for aggravated identity theft and bank fraud, United States Attorney Phillip A. Talbert announced.

According to court documents, in May 2013, Damaryan assumed the identity of an innocent victim in order to take over the victim’s bank account. Posing as the victim, Damaryan fraudulently wired $141,395 out of the account to a gold coin and bullion store, where he and his co-defendant Garik Voskanyan attempted to use the stolen funds to purchase nearly 100 one-ounce gold coins. The fraud was detected when the victim checked his bank account on the day the fraudulent wire was attempted. Damaryan and Voskanyan were arrested outside the gold store when they arrived to pick up the coins.

This case was the product of an investigation by the United States Secret Service. Assistant United States Attorneys Matthew G. Morris and Amy Schuller Hitchcock prosecuted the case.

Co-defendant Voskanyan pleaded guilty to one count of bank fraud and was sentenced on September 15, 2017, to 15 months in prison for his role in the offense.

SACRAMENTO, Calif. — Jason Matecki, 46, of Manteca, was sentenced today by U.S. District Judge Garland E. Burrell, Jr. to six years and three months in prison for possession with the intent to distribute MDMA, U.S. Attorney Phillip A. Talbert announced.

MDMA, more commonly known as “Ecstasy,” is a Schedule 1 Controlled Substance.  According to the plea agreement, in March and April 2015, law enforcement seized two packages of MDMA destined for Matecki’s residence in Manteca, as well as one package of MDMA sent to Matecki’s condominium in Las Vegas. On April 21, 2015, federal agents searched both of Mateki’s residences. At his residence in Manteca, agents found a variety of drugs, including 1.7 kilograms of cocaine, 608 grams of MDMA and lesser amounts of marijuana, bath salts, steroids, methamphetamine, adrenaline, and prescription pills. A search of the Las Vegas residence resulted in the seizure of additional quantities of drugs, including MDMA. Matecki admitted to importing the MDMA from overseas and using the “dark web” to sell MDMA and cocaine. Mateki’s sentence was based, in part, on his possession of both MDMA and cocaine. 

This case was the product of an investigation by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Southern Nevada Heroin Task Force (SNHTF), and Manteca Police Department. Assistant U.S. Attorney Kevin Khasigian prosecuted the case.

On March 31, 2017, Matecki’s co-defendant Catalin Kifan, 26, was sentenced to over eight years in prison after pleading guilty to possessing MDMA with intent to distribute.

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

SACRAMENTO, Calif. — A federal grand jury returned a nine-count indictment today against Gustavo Araujo Lerma, 62, and his wife Maria Eva Velez, 64, both of Sacramento, United States Attorney Phillip A. Talbert announced. Araujo is charged with aggravated identity theft, passport fraud, conspiracy to commit unlawful procurement of naturalization and citizenship, and five counts of voting by an alien. Velez is charged with conspiring to commit unlawful procurement of citizenship and unlawful procurement of citizenship.

According to court documents, Araujo committed passport fraud by applying for U.S. passports in the assumed identity of “Hiram Enrique Velez,” a now deceased U.S. citizen whose identity Araujo fraudulently used for over 25 years. Araujo allegedly used the false identity to commit various other offenses, including conspiring to obtain legal permanent resident status and ultimately U.S. citizenship for Velez, his wife. Although he and Velez had previously married in Mexico, they married again in Los Angeles in 1992 using Araujo’s fraudulent U.S. citizen identity, which allowed Velez to illegally obtain status as the purported wife of a U.S. citizen. Araujo also committed illegal alien voting by using the identity of Hiram Velez in numerous federal, state and local elections, including the five charged in the indictment. Araujo’s false representations concerning his citizenship in connection with his voting activity forms the basis for the aggravated identity theft count alleged in the indictment. 

This case was the product of an investigation by the U.S. Department of State, Diplomatic Security Service. Assistant U.S. Attorney Katherine T. Lydon is prosecuting the case.

Araujo's initial appearance on a criminal complaint was on October 16, 2017, and he will be arraigned on the indictment on October 30 2017.

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

SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Shane Kainoa Kelly, 45, of Tracy, charging him with attempted online coercion of a minor to engage in sexual activity and the commission of an offense involving a minor while required to register as a sex offender, United States Attorney Phillip A. Talbert announced. 

According to court documents, Kelly responded to a personal advertisement on Backpage.com and began conversing with an individual he believed to be 15 years old via text. Kelly discussed sexual activity with the individual, sent her multiple photographs and arranged to meet her when her mother was purportedly not at home. Unbeknownst to Kelly, the individual with whom he conversed was actually a law enforcement agent.  

This case was the product of an investigation by U.S. Immigration Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Manteca Police Department Investigations Division, and San Joaquin County Sheriff’s Office. Assistant United States Attorney Amy Schuller Hitchcock is prosecuting the case.

If convicted, Kelly faces a mandatory statutory minimum of 20 years in prison and a maximum of life 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.

SACRAMENTO, Calif. — Nathan Hoffman, 57, of Los Angeles, was sentenced today by United States District Judge John A. Mendez to four years in prison for conspiring to manufacture and distribute marijuana, United States Attorney Phillip A. Talbert announced.

As part of his plea agreement, Hoffman agreed to forfeit his license to practice law in California and was ordered to surrender to the U.S. Marshals in Los Angeles on December 7, 2017, to begin service of his sentence. 

According to court documents, Hoffman conspired with Yan Ebyam and others to develop two industrial-sized marijuana cultivation sites in Sutter County and Sacramento. As part of the plea agreement, Hoffman admitted that he and his co-conspirators sought to make profits from the illegal distribution of large amounts of marijuana. Much of the marijuana grown in Northern California from this conspiracy was distributed by Hung C. Nguyen. Nguyen, who pleaded guilty on January 10, 2017, operated two Southern California marijuana stores: the Canna Clinic of Garden Grove and the South Bay Canna Clinic in Torrance. Sentencing for Nguyen is currently set for November 7, 2017, before Judge Mendez. Ebyam pleaded guilty on July 1, 2014, and was sentenced by Judge Mendez to 72 months in prison on January 24, 2017. Two remaining co-defendants, Steve Marcus and Brook Murphy, both pleaded guilty and are set to be sentenced on November 28, 2017.

The cases began when federal and state agents executed seven federal search warrants in Sacramento, Sutter, and Tehama Counties on June 21, 2011. Two of these warrants were executed at the sites of large, commercial greenhouses located at the Jopson Ranch in Rio Oso and at the Cal-Nevada Wholesale Florist in Sacramento. Law enforcement officers seized over 5,000 marijuana plants in all stages of growth from these two locations: approximately 2,168 plants at Jopson Ranch and approximately 3,305 plants at Cal-Nevada Florist. Two leaders arrested at the grow sites, Ebyam and Aimee Sisco, admitted their involvement in the marijuana cultivation business. Sisco pleaded guilty to conspiring to manufacture marijuana and was sentenced to approximately three years in prison in 2015. Subsequent investigation and search warrants uncovered the link to Hoffman, Nguyen, and others.

These cases are part of investigations into industrial-scale marijuana cultivation conspiracies operating within the Eastern District of California. A total of 16 defendants were charged in three separate indictments for crimes relating to marijuana cultivation (United States v. Hoffman et al., 2:15-cr-234 JAM, and United States v. Yan Ebyam et al., 2:11-cr-275-JAM and 2:11-cr-276-JAM). All defendants have now pleaded guilty to participation in the conspiracies, and most have been sentenced to prison.

These cases are the product of an investigation by the Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation, the Sutter County Sheriff’s Department, and the California Bureau of Narcotic Enforcement. It 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. Assistant U.S. Attorneys Jason Hitt, Todd A. Pickles, and Samuel Wong are prosecuting the cases.

FRESNO, Calif. —Franklyn Collier Jones, 55, of Fresno, pleaded guilty yesterday to health care fraud, United States Attorney Phillip A. Talbert announced. 

According to court documents, Jones practiced podiatry in Fresno. Between 2010 and 2015, Jones billed Medicare for surgical procedures called avulsions and matrixectomies that he did not perform. He only performed routine foot care on the patients, such as clipping of toenails. 

This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Mark J. McKeon is prosecuting the case.

Jones is scheduled to be sentenced by Judge Lawrence J. O'Neill on January 16, 2018. Jones faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — After collecting and destroying 900,000 pounds—450 tons—of unused prescription drugs last April, the U.S. Drug Enforcement Administration is continuing its efforts to take back unused, unwanted and expired prescription medications. The DEA invites the public to bring their potentially dangerous, unwanted medicines to one of nearly 5,000 collection sites around the country that are manned by more than 4,000 of DEA’s tribal and local law enforcement partners.

The public can find a nearby collection site by visiting www.DEATakeBack.com or by calling 800-882-9539. This service is free of charge, with no questions asked.

“The abuse of opioids and prescription drugs is at an all-time high in our country, and the effect is devastating, not only on the users, but on their families, friends, and communities,” U.S. Attorney Talbert stated. “Young people are particularly at risk, as they can gain easy access to unused and addictive prescription drugs inside the home. I strongly encourage everyone to take advantage of this safe and easy way to dispose of unused prescription drugs.”

“America is in the midst of a prescription drug crisis and the home medicine cabinet is a major source. Let’s work together to help put an end to this epidemic by cleaning out that cabinet and disposing of unwanted medication at a take back location,” stated DEA Special Agent in Charge John J. Martin.

Overdoses from prescription opioids are the driving factor in the 15-year increase in opioid overdose deaths. The removal from homes of unwanted prescription pills that can be abused, stolen or resold is an easy way to help fight the epidemic of substance abuse and addiction.

According to the DEA, in the previous 13 take-back events, approximately 8.1 million pounds or 4,050 tons of unused medication were collected by DEA and its partners.

FRESNO, Calif. — A federal grand jury returned a single-count indictment on October 19, 2017, against Luvell Ronell Blinks, age 34, of Bakersfield, charging him with being a previously convicted felon in possession of a firearm, United States Attorney Phillip A. Talbert announced. 

According to court documents, on September 25, 2017, Bakersfield police officers attempted to stop the vehicle Blinks was driving when he took off at a high rate of speed.  Following a vehicle pursuit and a subsequent foot chase, Blinks was apprehended and found in possession of a loaded .357 caliber Smith and Wesson Revolver.

This case was the product of an investigation by the Bakersfield Police Department, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Bureau of Alcohol, Tobacco and Firearms. Assistant United States Attorney Brian K. Delaney is prosecuting the case.

If convicted, defendant 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.

FRESNO, Calif. — A federal grand jury returned a one-count indictment yesterday against Juhun Merrell Brown, 42, of Sacramento, charging him with escaping from custody, United States Attorney Phillip A. Talbert announced. 

According to court documents, Brown was sentenced to federal prison for distributing methamphetamine in 2014. In January 2017, Brown was transferred to the federal halfway house facility in Fresno as part of his sentence. On March 13, 2017, officials found that he failed to return to the facility as required. Brown was subsequently arrested and appeared in court on October 5, 2017, and he appeared for arraignment on the indictment today. 

This case was the product of an investigation by the United States Marshals Service. Assistant United States Attorney Laurel J. Montoya is prosecuting the case.

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

FRESNO, Calif. — A federal grand jury returned a five-count indictment today against Nancy Lopez Perez, 42, of Lemoore, California, charging her with two counts of distributing methamphetamine and three counts of being a felon in possession of firearms, United States Attorney Phillip A. Talbert announced.

According to court documents, Perez obtained and delivered multiple pounds of methamphetamine and five firearms, including an assault rifle, during three separate undercover transactions. Perez is prohibited by law from possessing firearms.

This case was the product of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by the Federal Bureau of Investigation (FBI), Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the Kings County Narcotic Task Force. Assistant United States Attorney Karen A. Escobar is prosecuting the case. The mission of the OCDETF Program is to reduce the supply of illegal drugs in the United States and diminish the violence and other criminal activity associated with the drug trade. To accomplish this mission, OCDETF combines the resources and expertise of its federal law enforcement agency members, including the FBI and ATF.

If convicted of the drug offenses, Perez faces a mandatory minimum statutory penalty of ten years in prison, a maximum statutory penalty of life in prison and a $10 million fine.  If convicted of the firearms offenses, Perez faces a maximum statutory penalty of ten 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.

FRESNO, Calif. — On October 12, 2017, a federal grand jury returned a six-count indictment against John Ballard, 55, and Judy (Calderon) Ballard, 54, of Atwater and Sherry Herbert, 54, and Andrea Todd, 53, of Fresno, charging them with conspiracy, wire fraud and bank fraud in connection with a fraudulent short-sale scheme, United States Attorney Phillip A. Talbert announced.

According to the court documents, Ballard and Calderon were both licensed real estate salespersons and they owned a home in Atwater, which was their primary residence. When the couple defaulted on a loan on the property, they asked permission to short-sell the property to Herbert and Todd, but had no intention of actually transferring the property to them. They used a series of false and fraudulent representations to obtain approval from banks to conduct this transaction and caused these financial institutions to approve the charge-off of funds and the financing for the short-sale.

Herbert and Todd were arraigned today before U.S. Magistrate Erica P. Grosjean. Ballard and Calderon's arraignments are currently set for November 29, 2017, before U.S. Magistrate Judge Stanley A. Boone.

This case is the product of an investigation by the Merced County District Attorney’s Office and the Federal Bureau of Investigation. Assistant United States Attorneys Michael G. Tierney and Christopher D. Baker are prosecuting the case.

If any of the four defendants are convicted, they face a maximum statutory penalty of 30 years in prison and a $1,000,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory sentencing 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. — On Tuesday, approximately 300 students and community members gathered to watch a movie telling the story of one of the deadliest hate crimes in recent U.S. history. The screening, which was held at the Harper Alumni Center on the Sacramento State University campus, was followed by a discussion between representatives from law enforcement agencies and community leaders, U.S. Attorney Phillip A. Talbert announced.

The acclaimed film, “Waking in Oak Creek,” tells the empowering story of how the community of Oak Creek, Wisconsin, responded when six worshipers at a Sikh Temple were killed by a white supremacist during prayer services in 2012. The entire community and law enforcement worked together to overcome tragedy and stand up to hate.

U.S. Attorney Talbert stated: “In the aftermath of the deadly attack on the Sikh Gurdwara in Oak Creek, Wisconsin, the entire community rallied together to turn tragedy into an opportunity to unite against hate. The community found positive and inclusive ways to commemorate the victims, which included Sikh worshippers as well as law enforcement officers, and to raise awareness about hate crimes, particularly those directed at Sikhs. I am proud that my office could host a screening of the film that documents that community’s inspiring response to hate and facilitate a discussion about how our community can work together to prevent these crimes from happening in our district.”

The U.S. Attorney’s Office organized this event in partnership with the FBI; the Sacramento Sikh and Muslim Communities; Sikh Temple Sacramento; the Tarbiya Institute; the Interfaith Council of Greater Sacramento; United Sikhs; Sacramento State University, including the College of Health and Human Services, College of Social Sciences and Interdisciplinary Studies, Division of Criminal Justice, Department of Sociology, and the University Police Department; Sacramento Police Department; Sacramento County Sheriff’s Office; and the Sacramento County District Attorney’s Office.

After the screening of the 33-minute film, U.S. Attorney Talbert moderated a panel discussion where law enforcement officials and Sikh and Muslim community leaders offered their perspectives on identifying opportunities and strategies to collaborate in the fight against hate. The panel members were FBI Assistant Special Agent in Charge Susan Ferensic, Sikh Community leader and filmmaker AJ Singh, Imam and Founder of the Tarbiya Institute Dr. Mohamed Abdul-Azeez, Sacramento Police Chief Daniel Hahn, Sacramento County Sheriff Scott Jones, and Sacramento County District Attorney Anne Marie Schubert.

The panel discussion was followed by a lively and collaborative question and answer session that gave attendees the opportunity to engage with panelists and have their voices heard on this important issue.

Earlier, U.S. Attorney Talbert hosted similar screening of the film and panel discussions with local community and law enforcement leaders at California State University, Bakersfield and California State University, Fresno. 

 “Waking in Oak Creek” was produced in conjunction with the U.S. Department of Justice Community Oriented Policing Services (COPS) Office as part of the Not In Our Town: Working Together for Safe, Inclusive Communities Initiative.