Eastern District of California
Press releases recorded for this federal judicial district.
Merced County Residents Indicted for Marijuana Cultivation Operation in Sequoia National ForestRead the Press Release
FRESNO, Calif. — On June 22, 2017, Jose Manuel Sanchez-Zapien (Sanchez), 37, a native and citizen of Michoacán, Mexico, residing in Dos Palos, was charged in an indictment with conspiring to manufacture marijuana and damaging public lands and natural resources. Today, a federal grand jury additionally charged him with manufacturing marijuana, and added co-defendant Maximiliano Farias-Martinez (Farias), 48, of Stevinson. Farias is charged with conspiring to manufacture marijuana, manufacturing marijuana, and damaging public lands and natural resources, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Sanchez was found in April and June of this year at a drop point delivering supplies to growers at a marijuana cultivation site in the Slick Rock Creek drainage 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 grow sites in the Slick Rock Creek drainage. Law enforcement officers found over 20,952 marijuana plants at the Alder Creek site supplied by Sanchez. Follow-up investigation revealed that Farias supervised Sanchez and others associated with the grow site.
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 Office of Investigations of Social Security Administration, Drug Enforcement Administration, the California Department of Fish and Wildlife, and the Merced Area Gang and Narcotics Enforcement Team (MAGNET). Assistant United States Attorney Karen A. Escobar is prosecuting the case.
If convicted of the drug offenses, Farias and Sanchez face 10 years to life in prison, and up to a $10 million fine for each count. If convicted of the environmental crime, Farias and Sanchez face a maximum statutory penalty of 10 years in prison and a fine of up to $250,000 and restitution to the U.S. Forest Service. 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.
AlphaBay, the Largest Online “Dark Market,” Shut DownRead the Press Release
SACRAMENTO, Calif. — The Justice Department today announced the seizure of the largest criminal marketplace on the internet, AlphaBay, which operated for over two years on the dark web and was used to sell deadly illegal drugs, stolen and fraudulent identification documents and access devices, counterfeit goods, malware and other computer hacking tools, firearms, and toxic chemicals throughout the world. The international operation to seize AlphaBay’s infrastructure was led by the United States and involved cooperation and efforts by law enforcement authorities in Thailand, the Netherlands, Lithuania, Canada, the United Kingdom, and France, as well as the European law enforcement agency Europol.
On July 5, Alexandre Cazes aka Alpha02 and Admin, age 25, a Canadian citizen residing in Thailand, was arrested by Thai authorities on behalf of the United States for his role as the creator and administrator of AlphaBay. On July 12, Cazes apparently took his own life while in custody in Thailand. Cazes was charged in an indictment (1:17-cr-144-LJO), filed in the Eastern District of California on June 1, with one count of conspiracy to engage in racketeering, one count of conspiracy to distribute narcotics, six counts of distribution of narcotics, one count of conspiracy to commit identity theft, four counts of unlawful transfer of false identification documents, one count of conspiracy to commit access device fraud, one count of trafficking in device making equipment, and one count of money laundering conspiracy. Law enforcement authorities in the United States worked with numerous foreign partners to freeze and preserve millions of dollars’ worth of cryptocurrencies that were the subject of forfeiture counts in the indictment, and that represent the proceeds of the AlphaBay organization’s illegal activities.
On July 19, the U.S. Attorney’s Office for the Eastern District of California filed a civil forfeiture complaint against Alexandre Cazes and his wife’s assets located throughout the world, including in Thailand, Cyprus, Lichtenstein, and Antigua & Barbuda. Cazes and his wife amassed numerous high value assets, including luxury vehicles, residences and a hotel in Thailand. Cazes also possessed millions of dollars in cryptocurrency, which has been seized by the FBI and the Drug Enforcement Administration (DEA).
According to publicly available information on AlphaBay prior to its takedown, one AlphaBay staff member claimed that it serviced over 200,000 users and 40,000 vendors. Around the time of takedown, there were over 250,000 listings for illegal drugs and toxic chemicals on AlphaBay, and over 100,000 listings for stolen and fraudulent identification documents and access devices, counterfeit goods, malware and other computer hacking tools, firearms, and fraudulent services. Comparatively, the Silk Road dark web marketplace, which was seized by law enforcement in November 2013, had reportedly approximately 14,000 listings for illicit goods and services at the time of seizure and was the largest dark web marketplace at the time.
“This is likely one of the most important criminal investigations of the year – taking down the largest dark net marketplace in history,” said Attorney General Jeff Sessions. “Make no mistake, the forces of law and justice face a new challenge from the criminals and transnational criminal organizations who think they can commit their crimes with impunity using the dark net. The dark net is not a place to hide. The Department will continue to find, arrest, prosecute, convict, and incarcerate criminals, drug traffickers and their enablers wherever they are. We will use every tool we have to stop criminals from exploiting vulnerable people and sending so many Americans to an early grave. I believe that because of this operation, the American people are safer – safer from the threat of identity fraud and malware, and safer from deadly drugs.”
“Transnational organized crime poses a serious threat to our national and economic security,” said Acting Director Andrew McCabe of the FBI. “Whether they operate in broad daylight or on the dark net, we will never stop working to find and stop these criminal syndicates. We want to thank our international partners and those at the Department of Justice, the DEA and the IRS-CI for their hard work in demonstrating what we can do when we stand together.”
“The so-called anonymity of the dark web is illusory,” said Acting Administrator Chuck Rosenberg of the DEA. “We will find and prosecute drug traffickers who set up shop there, and this case is a great example of our commitment to doing exactly that. More to come.”
“The seizure and shut-down of the AlphaBay criminal marketplace and the indictment and arrest of its founder should send a clear message,” said Eastern District of California U.S. Attorney Phillip A. Talbert. “If you choose to become involved in administering a site like AlphaBay on the dark web, or decide to use it to engage in criminal transactions, you will have federal law enforcement and United States Attorney offices from every District and State across the nation pursuing you. We are thankful for the invaluable assistance we received from our partners in the Criminal Division’s Computer Crime and Intellectual Property Section, and I particularly want to recognize the incredible skill and dedication displayed by the FBI and the DEA in turning the lights on in the dark web and shutting down the world’s largest black market.”
“AlphaBay was the world’s largest underground marketplace of the dark net, providing an avenue for criminals to conduct business anonymously and without repercussions,” said Chief Don Fort of IRS-CI. “Working with our law enforcement partners—both domestically and abroad—IRS-CI used its unique financial and cyber expertise to help shine a bright light on the accounts and customers of this shadowy black marketplace, and we intend to continue pursuing these kinds of criminals no matter where they hide.”
“This ranks as one of the most successful coordinated takedowns against cybercrime in recent years,” said Europol Executive Director Rob Wainwright. “Concerted action by law enforcement authorities in the United States and Europe, with the support of Europol, has delivered a massive blow to the underground criminal economy and sends a clear message that the dark web is not a safe area for criminals. I pay tribute to the excellent work of the United States and European authorities for the imaginative and resourceful way they combined their efforts in this case.”
AlphaBay operated as a hidden service on the “Tor” network, and utilized cryptocurrencies including Bitcoin, Monero and Ethereum in order to hide the locations of its underlying servers and the identities of its administrators, moderators, and users. Based on law enforcement’s investigation of AlphaBay, authorities believe the site was also used to launder hundreds of millions of dollars deriving from illegal transactions on the website.
An investigation conducted by FBI Atlanta and the U.S. Attorney’s Office in the Northern District of Georgia identified an AlphaBay staffer living in the United States. That investigation is ongoing.
The investigation into AlphaBay revealed that numerous vendors sold fentanyl and heroin, and there have been multiple overdose deaths across the country attributed to purchases on the site.
According to a complaint affidavit filed in the District of South Carolina against Theodore Vitality Khleborod and Ana Milena Barrero, an investigation into an overdose death on February 16, 2017, in Portland, Oregon, involving U-47700, a synthetic opioid, revealed that the drugs were purchased on AlphaBay from Khelborod and Barrero. According to another complaint affidavit filed in the Middle District of Florida against Jeremy Achey, an investigation into a fentanyl overdose death in Orange County, Florida, on February 27, 2017, revealed that the lethal substance was purchased on AlphaBay from Achey.
Charges contained in an indictment and/or complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This operation to seize the AlphaBay site coincides with efforts by Dutch law enforcement to investigate and take down the Hansa Market, another prominent dark web market. Like AlphaBay, Hansa Market was used to facilitate the sale of illegal drugs, toxic chemicals, malware, counterfeit identification documents, and illegal services. The administrators of Hansa Market, along with its thousands of vendors and users, also attempted to mask their identities to avoid prosecution through the use of Tor and digital currency. Further information on the operation against the Hansa Market can be obtained from Dutch authorities.
The operation to seize AlphaBay’s servers was announced by Attorney General Jeff Sessions; Deputy Attorney General Rod Rosenstein; Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; U.S. Attorney Phillip A. Talbert for the Eastern District of California; Acting Director Andrew G. McCabe of the FBI; Acting Administrator Chuck Rosenberg of the DEA and Europol Executive Director Robert Mark Wainwright.
The case is being investigated by the FBI including FBI Sacramento Field Office and DEA, with substantial assistance from the IRS-CI. U.S. Immigration and Customs Enforcement’s Homeland Security Investigations also assisted in the investigation. The case against Cazes was prosecuted by Assistant U.S. Attorneys Paul A. Hemesath and Grant B. Rabenn of the U.S. Attorney’s Office for the Eastern District of California, and Trial Attorneys Louisa K. Marion and C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section. Assistant U.S. Attorney Kevin C. Khasigian of the Eastern District of California handled the asset forfeiture. Substantial assistance was provided by the Department of Justice’s Office of International Affairs and Special Operations Division. Additionally, the following foreign law enforcement agencies provided substantial assistance in the operation to seize AlphaBay’s infrastructure: Royal Thai Police, Dutch National Police, Lithuanian Criminal Police Bureau (LCPB), Royal Canadian Mounted Police, United Kingdom’s National Crime Agency, Europol, and French National Police.
AlphaBay, the Largest Online 'Dark Market,' Shut DownRead the Press Release
The Justice Department today announced the seizure of the largest criminal marketplace on the Internet, AlphaBay, which operated for over two years on the dark web and was used to sell deadly illegal drugs, stolen and fraudulent identification documents and access devices, counterfeit goods, malware and other computer hacking tools, firearms, and toxic chemicals throughout the world. The international operation to seize AlphaBay’s infrastructure was led by the United States and involved cooperation and efforts by law enforcement authorities in Thailand, the Netherlands, Lithuania, Canada, the United Kingdom, and France, as well as the European law enforcement agency Europol.
On July 5, Alexandre Cazes aka Alpha02 and Admin, 25, a Canadian citizen residing in Thailand, was arrested by Thai authorities on behalf of the United States for his role as the creator and administrator of AlphaBay. On July 12, Cazes apparently took his own life while in custody in Thailand. Cazes was charged in an indictment (1:17-CR-00144-LJO), filed in the Eastern District of California on June 1, with one count of conspiracy to engage in racketeering, one count of conspiracy to distribute narcotics, six counts of distribution of narcotics, one count of conspiracy to commit identity theft, four counts of unlawful transfer of false identification documents, one count of conspiracy to commit access device fraud, one count of trafficking in device making equipment, and one count of money laundering conspiracy. Law enforcement authorities in the United States worked with numerous foreign partners to freeze and preserve millions of dollars’ worth of cryptocurrencies that were the subject of forfeiture counts in the indictment, and that represent the proceeds of the AlphaBay organization’s illegal activities.
On July 19, the U.S. Attorney’s Office for the Eastern District of California filed a civil forfeiture complaint against Alexandre Cazes and his wife's assets located throughout the world, including in Thailand, Cyprus, Lichtenstein, and Antigua & Barbuda. Cazes and his wife amassed numerous high value assets, including luxury vehicles, residences and a hotel in Thailand. Cazes also possessed millions of dollars in cryptocurrency, which has been seized by the FBI and the Drug Enforcement Administration (DEA).
According to publicly available information on AlphaBay prior to its takedown, one AlphaBay staff member claimed that it serviced over 200,000 users and 40,000 vendors. Around the time of takedown, there were over 250,000 listings for illegal drugs and toxic chemicals on AlphaBay, and over 100,000 listings for stolen and fraudulent identification documents and access devices, counterfeit goods, malware and other computer hacking tools, firearms and fraudulent services. Comparatively, the Silk Road dark web marketplace, which was seized by law enforcement in November 2013, had reportedly approximately 14,000 listings for illicit goods and services at the time of seizure and was the largest dark web marketplace at the time.
“This is likely one of the most important criminal investigations of the year – taking down the largest dark net marketplace in history,” said Attorney General Jeff Sessions. “Make no mistake, the forces of law and justice face a new challenge from the criminals and transnational criminal organizations who think they can commit their crimes with impunity using the dark net. The dark net is not a place to hide. The Department will continue to find, arrest, prosecute, convict, and incarcerate criminals, drug traffickers and their enablers wherever they are. We will use every tool we have to stop criminals from exploiting vulnerable people and sending so many Americans to an early grave. I believe that because of this operation, the American people are safer – safer from the threat of identity fraud and malware, and safer from deadly drugs.”
“Transnational organized crime poses a serious threat to our national and economic security,” said Acting Director Andrew McCabe of the FBI. “Whether they operate in broad daylight or on the dark net, we will never stop working to find and stop these criminal syndicates. We want to thank our international partners and those at the Department of Justice, the DEA and the IRS-CI for their hard work in demonstrating what we can do when we stand together.”
“The so-called anonymity of the dark web is illusory,” said Acting Administrator Chuck Rosenberg of the DEA. “We will find and prosecute drug traffickers who set up shop there, and this case is a great example of our commitment to doing exactly that. More to come.”
“AlphaBay was the world’s largest underground marketplace of the dark net, providing an avenue for criminals to conduct business anonymously and without repercussions,” said Chief Don Fort of IRS-CI. “Working with our law enforcement partners – both domestically and abroad – IRS-CI used its unique financial and cyber expertise to help shine a bright light on the accounts and customers of this shadowy black marketplace, and we intend to continue pursuing these kinds of criminals no matter where they hide.”
“This ranks as one of the most successful coordinated takedowns against cybercrime in recent years,” said Executive Director Rob Wainwright of Europol. “Concerted action by law enforcement authorities in the United States and Europe, with the support of Europol, has delivered a massive blow to the underground criminal economy and sends a clear message that the dark web is not a safe area for criminals. I pay tribute to the excellent work of the United States and European authorities for the imaginative and resourceful way they combined their efforts in this case.”
AlphaBay operated as a hidden service on the “Tor” network, and utilized cryptocurrencies including Bitcoin, Monero and Ethereum in order to hide the locations of its underlying servers and the identities of its administrators, moderators, and users. Based on law enforcement’s investigation of AlphaBay, authorities believe the site was also used to launder hundreds of millions of dollars deriving from illegal transactions on the website.
An investigation conducted by FBI Atlanta and the U.S. Attorney’s Office in the Northern District of Georgia identified an AlphaBay staffer living in the United States. That investigation is ongoing.
The investigation into AlphaBay revealed that numerous vendors sold fentanyl and heroin, and there have been multiple overdose deaths across the country attributed to purchases on the site.
According to a complaint affidavit filed in the District of South Carolina against Theodore Vitality Khleborod and Ana Milena Barrero, an investigation into an overdose death on February 16, in Portland, Oregon, involving U-47700, a synthetic opioid, revealed that the drugs were purchased on AlphaBay from Khelborod and Barrero. According to another complaint affidavit filed in the Middle District of Florida against Jeremy Achey, an investigation into a fentanyl overdose death in Orange County, Florida, on February 27, revealed that the lethal substance was purchased on AlphaBay from Achey.
Charges contained in an indictment and/or complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This operation to seize the AlphaBay site coincides with efforts by Dutch law enforcement to investigate and take down the Hansa Market, another prominent dark web market. Like AlphaBay, Hansa Market was used to facilitate the sale of illegal drugs, toxic chemicals, malware, counterfeit identification documents, and illegal services. The administrators of Hansa Market, along with its thousands of vendors and users, also attempted to mask their identities to avoid prosecution through the use of Tor and digital currency. Further information on the operation against the Hansa Market can be obtained from Dutch authorities.
The operation to seize AlphaBay’s servers was announced by Attorney General Jeff Sessions; Deputy Attorney General Rod Rosenstein; Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; U.S. Attorney Phillip A. Talbert for the Eastern District of California; Acting Director Andrew G. McCabe of the FBI, Acting Administrator Chuck Rosenberg of the DEA and Europol Executive Director Robert Mark Wainwright.
The case is being investigated by the FBI including FBI Sacramento Field Office and DEA, with substantial assistance from the IRS-CI. U.S. Immigration and Customs Enforcement’s Homeland Security Investigations also assisted in the investigation. The case against Cazes was prosecuted by Assistant U.S. Attorneys Paul A. Hemesath and Grant B. Rabenn of the U.S. Attorney’s Office for the Eastern District of California, and Trial Attorneys Louisa K. Marion and C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section. Substantial assistance was provided by the Department of Justice’s Office of International Affairs and Special Operations Division. Additionally, the following foreign law enforcement agencies provided substantial assistance in the operation to seize AlphaBay’s infrastructure: Royal Thai Police, Dutch National Police, Lithuanian Criminal Police Bureau (LCPB), Royal Canadian Mounted Police, United Kingdom’s National Crime Agency, Europol, and French National Police.
Stockton Woman Sentenced to 3 Years in Prison for Bank Fraud, Mail Fraud and Aggravated Identity TheftRead the Press Release
SACRAMENTO, Calif. — Patricia Ramona Vasquez, 37, of Stockton, was sentenced today to three years in prison and ordered to pay $30,971 in restitution by U.S. District Judge Morrison C. England Jr. for bank fraud, aggravated identity theft, and mail fraud, 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 work closely with the U.S. Attorney’s Office and our partners in law enforcement to arrest and prosecute those individuals responsible for mail fraud and identity theft crimes committed against the public.”
According to court documents, between February 3, 2016, and July 7, 2016, Vasquez targeted a woman with the same last name and obtained her mail to obtain documents and information to steal her identity. Vasquez created an email address for her new identity. On April 4, 2016, Vasquez entered a DMV branch in Sacramento and claimed her California driver’s license was lost or stolen. In doing so, Vasquez obtained a genuine driver’s license with her own picture and the identity theft victim’s personal identifying information. On April 15, 2016, Vasquez used the false identity to purchase a Nissan Altima from an auto dealership in Stockton. At the victim’s and creditors’ expense, Vasquez obtained a car loan from Well Fargo Bank for $16,703. On May 20, 2016, Vasquez opened accounts at Golden 1 Credit Union in Stockton using her phony California driver’s license number, the victim’s SSN, date of birth, true residence address, and signature. After opening the credit union accounts, Vasquez deposited stolen and altered checks to obtain cash.
This case was the product of an investigation by the United States Postal Inspection Service, with the assistance of the Stockton Police Department. Assistant United States Attorney Michelle Rodriguez prosecuted the case.
Ninth Circuit Denies Challenge to $122.5M Settlement for 2007 Moonlight FireRead the Press Release
SACRAMENTO, Calif. — In a unanimous opinion, the U.S. Court of Appeals for the Ninth Circuit today affirmed the denial of relief from judgment for Sierra Pacific Industries and the other defendants held responsible for the Moonlight Fire in a settlement they entered with the United States five years ago.[1]
U.S. Attorney Phillip A. Talbert said, “We are gratified but not surprised by today’s decision, which helps make an important point this fire season. When negligent logging operations cause massive forest fires, this Office will respond with exactly the kind of tenacious, professional advocacy shown by Assistant U.S. Attorneys David Shelledy, Kelli Taylor and the rest of the team. Consistent with the best traditions of the U.S. Department of Justice, our office will continue to hold the careless to account.”
The fire started on Labor Day 2007 and burned over 46,000 acres of the Plumas and Lassen National Forests before it could be extinguished. In a complaint filed in 2010, the United States alleged that the fire started and escaped due to the neglect by Sierra Pacific and one of its contractors in operating bulldozers on a remote logging site on a “red flag” warning day. The contractor’s employees abandoned the job site to get a soda and cellphone soon after completing work, without inspecting the area to ensure they had not started a fire, as required by company policy and state law. The same contractor started two other fires the same summer working on other projects for Sierra Pacific. Sierra Pacific knew the contractor had started one of those fires yet took no action to ensure fire safety.
After litigation commenced, the contractor formally admitted that the fire started in its work area where no one but its employees was seen all day. Sierra Pacific, however, engaged in extensive litigation in an effort to avoid responsibility.
In 2012, the district court in Sacramento ruled that Sierra Pacific could present at trial some of its claims that the government engaged in fraud in attributing blame for the fire. However, in July 2012, Sierra Pacific and the other defendants averted trial by entering a settlement.
In exchange for dismissal of the United States’ complaint, the defendants agreed to pay a total of $55 million in cash. Sierra Pacific’s share of the settlement was $47 million and a conveyance of 22,500 acres of undeveloped land for incorporation into the National Forest System.
With a total value of at least $122.5 million, the settlement is the largest ever received by the United States for damages caused by a forest fire. All of the settlement payments are now complete. Land transfers totaling more than 12,000 acres have been completed with the remainder ongoing.
In the settlement agreement, Sierra Pacific and the other defendants specifically agreed to release all claims—known or unknown. Nonetheless, in October 2014, they filed a motion for relief from judgment, seeking to back out of the settlement based on allegations of fraud. Almost all accusations in the motion repeated the baseless claims made by Sierra Pacific in litigation before the settlement.
In April 2015, U.S. District Judge William B. Shubb issued a detailed 63-page order denying the motion and emphatically rejecting every allegation by Sierra Pacific’s counsel that there was fraud on the court.[2] After an exhaustive review of the law and the record, Judge Shubb concluded that the defendants “failed to identify even a single instance of fraud on the court, certainly none on the part of any attorney for the government. They repeatedly argue that fraud on the court can be found by considering the totality of the allegations. . . . Stripped of all its bluster, defendants’ motion is wholly devoid of any substance.” This is the order affirmed today by the court of appeals.
In a unanimous, 34-page opinion the Ninth Circuit ruled that “[a]fter voluntarily settling this case and asking the district court to enter judgment based on that settlement,” the defendants’ allegations of newly discovered fraud failed to meet the high showing required for relief from judgment. The court ruled that all accusations of fraud discovered before the settlement were legally insufficient — whether those accusations were true or not — because Sierra Pacific and the other defendants “voluntarily settled instead of going to trial.” The settlement agreement also precluded all accusations that the defendants claimed to have discovered after settlement, the court explained, because under the express terms of the settlement agreement, the defendants “bound themselves not to seek future relief, even for fraud on the court.” And finally, the court ruled that even if the settlement terms did not bar relief, “we conclude [those accusations] do not constitute fraud on the court.”
The court specifically rejected Sierra Pacific’s claim that an Assistant U.S. Attorney encouraged perjury by telling a federal investigator the government’s lawyers considered Sierra Pacific’s core scandal claim (that a white flag at the fire investigation scene marked the initial, “concealed” point of origin) to be “a non-issue.” The court explained that this comment was “merely an opinion about the relative importance of an element of the case; . . . not an instruction to commit perjury.”
Despite Sierra Pacific’s inflammatory accusations against the Assistant U.S. Attorneys representing the government in this case, not one of the number of federal judges to have issued rulings before and after settlement have sustained any of those accusations.
[1] The case is United States v. Sierra Pacific Industries, et al., Ninth Circuit No. 15-15799.
[2] United States v. Sierra Pacific Industries, et al., No. 2:09-02445 (E.D. Cal. April 17, 2015).
CVS Pharmacy Inc. Pays $5M to Settle Alleged Violations of the Controlled Substance ActRead the Press Release
SACRAMENTO, Calif. — CVS Pharmacy Inc. has paid $5 million to resolve federal Controlled Substances Act (CSA) allegations that its pharmacies in the Eastern District of California failed to keep and maintain accurate records of Schedule II, III, IV, and V controlled substances, U.S. Attorney Phillip A. Talbert and Drug Enforcement Administration Special Agent in Charge John J. Martin announced today.
Drugs, substances, and certain chemicals used to make drugs are classified into five distinct categories or schedules depending upon the drug’s acceptable medical use and the drug’s abuse or dependency potential.
In addition to the settlement payment, CVS has agreed to an administrative compliance plan with the DEA. The payment and plan resolve the United States’ allegations that during the period from April 30, 2011, through April 30, 2013, CVS pharmacies failed to provide effective controls and procedures to guard against diversion when CVS failed to: record the amount received and the date received of Schedule II drugs on DEA-222 Forms; maintain DEA-222 Forms and keep them separate from other records; record the date of acquisition of controlled substances in Schedules II through V; maintain invoices for drugs in Schedules III through V and keep the records separate from non-controlled substance records; and conduct a biennial inventory on one specific day.
“The Department of Justice is committed to fighting prescription drug abuse, including the alarming rise of prescription opioid abuse that is plaguing the country,” U.S. Attorney Talbert stated. “National retailers that distribute massive amounts of controlled substances have a responsibility to comply with recordkeeping regulations because these regulations are specifically designed to prevent dangerous drugs from being diverted into the community and abused.”
“The nation is in the midst of an opioid crisis and all entities that distribute controlled substances must hold the frontline. Regulatory compliance and accurate recordkeeping are key in a pharmacy’s ability to prevent prescription drug diversion,” stated DEA Special Agent in Charge Martin.
Under the settlement reached July 5, 2017, CVS acknowledges that its DEA-registered pharmacies were and are required to comply with the CSA, and that nine CVS pharmacies in the Eastern District of California failed to fulfill these recordkeeping obligations in a manner fully consistent with CVS’s responsibilities under the CSA. The settlement and compliance plan cover the 168 CVS pharmacies that operated in the Eastern District of California from April 30, 2011, through April 30, 2013.
The allegations resolved by this settlement were uncovered during a DEA investigation that began in 2012 after CVS self-reported thefts and losses of hydrocodone, a Schedule III drug at the time, at five of its Sacramento-area pharmacies. Under the CSA, DEA-registered pharmacies are obligated to report any thefts or significant losses of controlled substances to DEA.
To address the issues uncovered by this investigation, CVS made improvements to its pharmacies in the Eastern District of California by, among other things, instituting annual CSA compliance training of its pharmacy staff, increasing loss prevention oversight, and excluding controlled substances prescriptions from the volume metric that can impact pharmacy staff compensation.
Assistant U.S. Attorneys M. Anderson Berry and Kurt Didier handled the case with assistance from diversion investigators at DEA’s Sacramento field office.
Madera County Arrest Leads to 2-Year Prison Sentence for Alien in Possession of FirearmRead the Press Release
FRESNO, Calif. — Antonio Soria-Arellano (Soria), 44, a citizen of Mexico, was sentenced today to two years in prison for being an alien in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on February 23, 2017, Soria, an alien, was in possession of a Remington 870 Express, 12-gauge shotgun. According to the criminal complaint, law enforcement officers found Soria at an indoor marijuana cultivation operation in a residence in Madera County. Soria was the sole occupant of the residence and was in possession of the loaded shotgun and ammunition. On April 17, 2017, Soria pleaded guilty to being an alien in possession of a firearm.
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Madera County Sheriff’s Office, and the Merced County District Attorney’s Office. Assistant U.S. Attorney Karen A. Escobar prosecuted the case.
Fresno Man Sentenced for Illegal Firearms PossessionRead the Press Release
FRESNO, Calif. — U.S. District Judge Anthony W. Ishii sentenced Randy Flowers, 51, of Fresno, to two years and nine months in prison for being a felon in possession of firearms, U.S. Attorney Phillip A. Talbert announced.
Flowers is one of seven defendants, including former Fresno deputy police chief Keith Foster, charged in a multi-count indictment returned on April 9, 2015. Flowers entered a guilty plea on April 4, 2017, to Count 10 of the indictment, charging him with being a felon in possession of a firearm. Five of Flowers’ co-defendants entered guilty pleas and have either been sentenced or are awaiting sentencing, Keith Foster proceeded to trial, and on May 23, 2017, a jury found him guilty of conspiracy to distribute and possess with intent to distribute heroin and conspiracy to distribute and possess with intent to distribute marijuana. He is scheduled to be sentenced on October 10, 2017.
According to court documents, Flowers was arrested on March 26, 2015, after a brief meeting at his home with Keith Foster. Flowers was found to be in possession of a .357-caliber Smith & Wesson revolver, a .45-caliber pistol, and a Remington .30-06 caliber rifle. Having previously been convicted of two felonies, Flowers was prohibited from possessing firearms.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation. Assistant U.S. Attorneys Melanie L. Alsworth and Dawrence W. Rice Jr. are prosecuting the case.
Five co-defendants have pleaded guilty to various offenses related to the drug trafficking conspiracy. Denny Foster is scheduled to be sentenced on August 14, 2017. Ricky Reynolds is scheduled to be sentenced on September 11, 2017. 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.
Former Stockton Resident Pleads Guilty in Phony Tax Return SchemeRead the Press Release
FRESNO, Calif. — Darrell Lemont Morris, 46, formerly of Stockton, and currently a resident of Houston, Texas, pleaded guilty today to conspiracy to submit false claims, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between January 2010 and March 2011, Morris conspired with co-defendant Vivian Marie Williams, of Stockton, to defraud the United States by filing false and fraudulent tax returns. Williams prepared tax returns out of her home in Stockton for legitimate clients, but most of the tax returns she prepared were in the names of victims of identity theft. These individuals did not know Williams, did not authorize her to file a tax return on their behalf, and did not receive the refund. Morris allowed Williams to use his bank accounts to deposit the tax refunds and then shared in the proceeds with her. During the scheme, Morris admitted he submitted false claims to the IRS for at least $25,945.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant U.S. Attorney Mark J. McKeon is prosecuting the case.
Co-defendant Williams was sentenced on October 17, 2016, to four months and 25 days in custody and ordered to pay restitution to the Internal Revenue Service.
Morris is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on January 8, 2018. Morris 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.
Wal-Mart Pays $1.65M to Settle False Claims Act Allegations of Improper Medi Cal BillingsRead the Press Release
SACRAMENTO, Calif. — Wal-Mart Stores Inc. has paid $1.65 million to resolve allegations that it violated the federal False Claims Act when it knowingly submitted claims for reimbursement to California’s Medi‑Cal program that were not supported by applicable diagnosis and documentation requirements, U.S. Attorney Phillip A. Talbert announced today.
“These Medi-Cal regulations are essential to protect both patients and limited heath care funding,” said U.S. Attorney Talbert. “My office will continue to hold pharmacies accountable when they fail to comply with regulations like these.”
Walmart, headquartered in Bentonville, Arkansas, operates over 290 retail stores in California; approximately 283 of these locations have pharmacies. The Medi-Cal program is administered by the California Department of Health Care Services (DHCS) and relies on both federal and state funding to provide health care to millions of Californians, including those with low incomes and disabilities.
Medi-Cal utilizes a formulary list, commonly known as “Code 1” drugs, which designates certain restrictions for each listed drug, including restrictions pertaining to diagnoses. Medi-Cal will reimburse certain Code 1 drugs only for approved diagnoses, taking into account criteria such as the drug’s safety, efficacy, misuse potential, and cost. Pharmacies serve the critical gatekeeping function of confirming and certifying that these Code 1 drugs are dispensed for the approved diagnoses. Walmart may bill for drugs prescribed outside of the approved diagnoses only if it submits a request to DHCS that includes a justification for the non‑approved use. Today’s settlement resolves allegations that Walmart failed to confirm and document the requisite diagnoses, and in some instances dispensed drugs for non-approved diagnoses, then knowingly billed Medi-Cal for these prescriptions.
The allegations resolved by this settlement were first raised in a lawsuit filed against Walmart under the qui tam, or whistleblower, provisions of the False Claims Act by a pharmacist who has worked at Walmart locations in the greater Sacramento area. The False Claims Act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery. The whistleblower in this matter will receive approximately $264,000 of the recovery proceeds.
This settlement is the result of a joint effort by the United States Attorney’s Office for the Eastern District of California and California’s Bureau of Medicaid Fraud and Elder Abuse. Assistant U.S. Attorney Catherine J. Swann handled the matter for the United States, with assistance from the Department of Health and Human Services, Office of Inspector General, and the Federal Bureau of Investigation. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Sutter County Women Sentenced to 2 Years in Prison for Making False Statements to the Grand JuryRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Garland E. Burrell Jr. sentenced Harjit Kaur Johal, 50, and Jasvir Kaur, 47, each to two years in prison for making false declarations before a grand jury, U.S. Attorney Phillip A. Talbert announced.
According to evidence presented at trial in March 2017, the defendants participated in a series of unemployment and disability fraud schemes in Yuba City. The organizers of the schemes were members of the Khan family and included Mohammad Nawaz Khan, Mohammad Adnan Khan, Mohammad Shahbaz Khan, and Mohammad Riaz Khan. The organizers set up a series of farm labor contracting businesses that purported to provide labor to harvest crops in Sutter and Yuba Counties. The organizers then sold fraudulent paystubs to other people, including the defendants, and reported false wages to the Employment Development Department. The purchasers of the paystubs would subsequently file for unemployment or disability benefits with the EDD based upon the fictitious wages. Because the amount of the benefits that the EDD pays is based upon the claimant’s prior earnings, the participants would pay the Khans to report high wages to the EDD.
In 2014, the defendants were subpoenaed to testify before a federal grand jury investigating the fraud scheme. During their testimony, when questioned about their wages, the defendants falsely stated under oath that they picked peaches for Ray Khan and that they did not commit fraud. Both defendants claimed they had picked peaches for Ray Khan for at least eight hours a day, six days a week, during the summer months of June through September. Both defendants also claimed that they worked on other tasks in the orchards for hours every day after picking peaches.
Testimony from individuals with knowledge of Ray Khan’s real employees established that he did not employ the defendants. Further, evidence presented at trial showed the defendants had reported chronic back and knee problems in prior disability claims with the EDD and were not capable of doing the physically intensive work required by peach picking. Finally, evidence at trial established that the defendants purchased paystubs from Ray Khan so that he would report falsely inflated wages to the EDD, which the defendants could then use to claim the maximum possible amount of unemployment benefits. Both defendants had participated in previous fraud schemes with other Khan family members and had already claimed benefits in excess of $30,000 each.
This case is part of a series of cases involving the Khan family’s fraud schemes. Over the course of these related conspiracies, the Khans reported wages for over 400 separate individuals that resulted in more than 2,000 fraudulent claims for unemployment and disability benefits. The fraud schemes defrauded the California Employment Development Department of more than $14 million. To date, 26 individuals have been convicted of various offenses related to the schemes.
This case was the product of an investigation by the U.S. Department of Labor, Office of Inspector General; the Federal Bureau of Investigation; and the Employment Development Department-Criminal Investigations. Assistant U.S. Attorneys Jared C. Dolan and Jeremy J. Kelley prosecuted the case.
Fresno County Man Arrested for Running $20 Million Ponzi SchemeRead the Press Release
FRESNO, Calif. — Seth Adam Depiano, 36, of Clovis, was arrested yesterday in Las Vegas and is charged in a criminal complaint with mail fraud, wire fraud and money laundering, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Depiano operated a Ponzi scheme that lured real estate investors into giving to him and the businesses he controlled — including The Rental Group, U.S. Funding and Home Services LLC, and Draymond Homes — more than $20 million. Depiano fraudulently promised investors that he would use their money to purchase residential properties and either manage the properties for rental income or arrange for them to be renovated and resold.
According to court documents, in many cases, Depiano promoted the properties to investors with documents that falsely represented high occupancy rates. He oftentimes had no authority to purchase or sell the properties and misled investors with fraudulent documents misrepresenting the properties’ ownership. Some of the properties Depiano marketed to investors did not even exist. Depiano paid investors purported rental income that, in fact, was money other investors had given him for investment purposes.
This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the U.S. Attorney’s Office for the District of Nevada. Assistant U.S. Attorney Christopher D. Baker is prosecuting the case.
If convicted, Depiano faces a maximum statutory penalty of 20 years in prison for the mail fraud and wire fraud charges, 10 years in prison for money laundering, and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Sacramento Woman Pleads Guilty to Possessing Stolen MailRead the Press Release
SACRAMENTO, Calif. — Channin Renee Dickens, 30, of Sacramento, pleaded guilty today to possessing stolen mail, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between September 15, 2016, and February 20, 2017, Dickens possessed mail that had been stolen from an authorized U.S. Mail receptacle. Dickens, along with Ashley Nicole Leyba, 27, of Sacramento, and others, carried out a scheme to defraud banks by using identity information and financial documents obtained from stolen U.S. Mail to apply for lines of credit and open accounts in the names of others. Dickens would use the cards to purchase merchandise and services.
On February 13, 2017, Leyba was arrested, and in April 7, 2017, pleaded guilty to bank fraud, aggravated identity theft, and possession of stolen mail. In Leyba’s plea agreement, she admits that while in custody, she instructed Dickens to destroy stolen identification and financial information that she had in her residence. However, some of the stolen mail was recovered in Dickens’ car before she could destroy it.
This case is the product of an investigation of the U.S. Postal Inspection Service, with assistance from the California Highway Patrol, the Sacramento County Sheriff’s Office, the Sacramento County Probation Office, and the Citrus Heights Police Department.
Dickens is scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on September 15, 2017. Dickens faces up to five years in prison. Leyba is scheduled to be sentenced by Judge Burrell on July 28, 2017. Leyba faces up to 30 years in prison for bank fraud, a mandatory sentence of two years in prison for aggravated identity theft, and five years in prison for possession of stolen U.S. Mail.
Sacramento Man Sentenced to 20 Years in Prison for Sexual Exploitation of ChildrenRead the Press Release
SACRAMENTO, Calif. — Alexander Antonio Rojas, 58, of Sacramento, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to 20 years in prison for distribution of child pornography, U.S. Attorney Phillip A. Talbert announced.
U.S. Attorney Talbert stated: “Today’s sentence is necessary to protect the public from further crimes by this defendant. He used his relative wealth and privilege in this country to exploit impoverished people overseas. It is our goal to ensure that this defendant never harms another child.”
“This case sends a clear message to those who seek, consume, and distribute child pornography,” said Acting Special Agent in Charge Voviette Morgan of the FBI Sacramento field office. “This investigation reminds those who are considering committing similar crimes that the FBI continues to collaborate with our international and task force partners to ensure the exploitation of vulnerable children is investigated and prosecuted to the full extent of the law.”
According to court documents, between August 5, 2013, and April 5, 2014, Rojas offered to pay money to individuals living in the Philippines and other Southeast Asian countries to produce photographs and videos of minor children engaged in sexually explicit conduct. In some instances, Rojas sought images of children as young as nine years old.
This case was the product of an investigation by the Federal Bureau of Investigation with assistance from the Sacramento Internet Crimes Against Children (ICAC) Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant U.S. Attorney Matthew G. Morris prosecuted the case.
Rojas has been in custody since his arrest on June 13, 2014.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Sacramento Man Indicted for Credit Card Fraud, Stolen Mail, and Being a Felon in Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Ahmad Nassar, 30, of Sacramento, charging him with access device fraud, possessing stolen mail, and being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on May 10, 2017, Nassar possessed numerous unauthorized or counterfeit credit and debit cards, a loaded firearm not registered to him, and stolen U.S. mail. Nassar allegedly conducted unauthorized transactions using credit and debit card accounts opened in others’ names.
This case is the product of an investigation by the Federal Bureau of Investigation and the Sacramento County Department of Human Assistance. Assistant U.S. Attorney Matthew M. Yelovich is prosecuting the case.
If convicted, Nassar faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for the access device fraud and firearms counts, and a maximum statutory penalty of five years in prison and a $250,000 fine for the stolen mail count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Heroin and Methamphetamine Drug Trafficking Organization Dismantled in BakersfieldRead the Press Release
FRESNO, Calif. — A federal grand jury in Fresno indicted eight defendants today for their participation in a methamphetamine and heroin distribution conspiracy. U.S. Attorney Phillip A. Talbert and Special Agent in Charge John J. Martin of the Drug Enforcement Administration’s San Francisco Division made the announcement. The indictment charges Jose Luis Zambrano, 33; Juan Carlos Lopez, 28; Ruben Mojarro, 42; Adalberto Jacobo, 36; all of Bakersfield; Joel Melendez, aka Leonel Rodriguez, 33; Edgar Omar Rodriguez Parra, aka Jesus Burgos Luna, 36; and Alex Castro Portillo, 29, all Mexican nationals; and Manuel Teodoro Aros, 42, of Santa Maria; with conspiracy to distribute and possess with intent to distribute methamphetamine and heroin. Zambrano, Jacobo, Portillo, Parra, and Aros were also charged with other drug trafficking offenses, and Zambrano and Lopez were charged with firearm offenses. According to court documents, Zambrano was the head of a drug trafficking organization that from March 1, 2016, through June 16, 2017, imported and distributed large amounts of methamphetamine and heroin to the Bakersfield area and other locations. In order to intimidate others, protect their narcotics and cash, and enforce drug debts, some members of the organization carried firearms and wore protective body armor. On June 23, 2017, arrest and search warrants targeting the organization were executed and resulted in the seizure of narcotics. Zambrano, Lopez, Mojarro, Aros, and Jacobo, were arrested and remain in custody. Joel Melendez, Edgar Omar Rodriguez Parra, and Alex Castro Portillo are fugitives. This case is the product of an investigation by the Drug Enforcement Administration, the California Highway Patrol, and the Bakersfield Police Department with assistance from Kern County Probation Department, Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Internal Revenue Service, Criminal Investigation. Assistant U.S. Attorney Brian K. Delaney is prosecuting the case. If convicted, all defendants face a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Fugitive Joel Melendez, aka Leonel Rodriguez fugitive Alex Castro Portillo, 29 fugitive Edgar Omar Rodriguez Parra, aka Jesus Burgos LunaTwo Sentenced for Growing Marijuana at Prehistoric Site in the Sequoia National ForestRead the Press Release
FRESNO, Calif. — Chief U.S. District Judge Lawrence J. O’Neill sentenced two men today for conspiring to manufacture, distribute and possess with intent to distribute marijuana in connection with a large-scale cultivation operation that impacted a prehistoric site, U.S. Attorney Phillip A. Talbert announced.
Juan Carlos Lopez, 32, of Flagstaff, Arizona was sentenced to five years in prison, and Javier Garcia-Castaneda (Garcia), 38, of Michoacán, Mexico, was sentenced to three years and one month in prison. Lopez was ordered to pay $5,930 in restitution, and Garcia was ordered to pay $5,233 in restitution to the U.S. Forest Service for the damage to public land and natural resources caused by their cultivation activities.
The sentences were imposed following their guilty pleas in April. According to court documents, the men conspired with each other and Rafael Torres-Armenta (Torres), 30; and Carlos Piedra-Murillo (Piedra), 30, both of Michoacán, Mexico, to cultivate marijuana in the Domeland Wilderness. The Domeland Wilderness is a federally designated wilderness area about 55 miles northeast of Bakersfield and is known for its many granite domes and unique geologic formations. Law enforcement officers seized over 8,000 marijuana plants, 17 pounds of processed marijuana, a .22‑caliber rifle, a pellet rifle, and hundreds of rounds of .22‑caliber ammunition.
Piedra previously pleaded guilty to the conspiracy and was sentenced earlier this month to serve two years and one month in prison. Torres previously pleaded guilty and will be sentenced on July 10, 2017.
The marijuana cultivation operation caused extensive environmental damage. It covered about 10 acres and was within the burned area of the 2000 Manter Fire. Some of the new vegetation and trees that sprouted after the fire had been cut and trimmed to make room for the marijuana plants. Water was diverted from a tributary stream of Trout Creek, a major tributary to the Kern River. Fertilizer and pesticides, including illegal carbofuran and zinc phosphide, highly toxic pesticides from Mexico, were found at the site. Large piles of trash were found near the campsite. The moving of soil to accommodate a basin around each marijuana plant caused extensive damage to a large prehistoric Tűbatulabal archaeological site. Holes were dug in the middle of the archaeological site and artifacts were found scattered on the surface among the marijuana plants.
This case is the product of an investigation by the U.S. Forest Service, Bureau of Land Management, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and California Department of Fish and Wildlife. Assistant United States Attorney Karen Escobar prosecuted the case.
Two Bakersfield Men Plead Guilty to Conspiracy to Distribute MethamphetamineRead the Press Release
FRESNO, Calif. — Carlos Gerardo Blanco, 27, and Henry Polin Morales III, 21, both of Bakersfield, pleaded guilty today to conspiracy to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between November 2014 and December 2015, Blanco conspired with Morales and others to distribute methamphetamine to various drug dealers and users in Kern County and Las Cruces, New Mexico. Blanco and Morales admit they distributed between 1.5 kilograms and 4.5 kilograms of methamphetamine.
According to the plea agreement, on May 6, 2015, Blanco purchased approximately five pounds of crystal methamphetamine in the Los Angeles metropolitan area that he intended to distribute for profit with the help of Morales and other co-conspirators. Agents seized the crystal methamphetamine from Blanco, Morales, and another convicted co-conspirator, Justin Rivera, 22, of Bakersfield, as they attempted to transport the narcotics on a commercial bus bound for Las Cruces, New Mexico.
This case is the product of an investigation by the Drug Enforcement Administration and task force officers from Kern County Probation. Assistant U.S. Attorney Brian K. Delaney is prosecuting the case.
Salvador Morales was earlier convicted in this matter and was sentenced on September 26, 2016, to six years and three months in prison. Jose Alejandro Jacobo, 25, of Bakersfield, was convicted in this matter and sentenced on March 13, 2017, to seven years and eight months in prison. Two other defendants have pleaded guilty to this conspiracy and are awaiting sentencing — Justin Rivera and Carlos Blanco’s wife Josefina Blanco, 25, a Mexican national.
Blanco and Morales are scheduled to be sentenced by U.S. District Judge Lawrence J. O’Neill on October 16, 2017. Blanco faces a maximum statutory penalty of life in prison and a $10 million fine. Morales faces a maximum statutory penalty of 40 years in prison and a $5 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.
Modesto Man Sentenced to over 8 Years in Prison for Assaulting a Fresno Social Security GuardRead the Press Release
FRESNO, Calif. — Matthew Faron Blair, 33, of Modesto, was sentenced today to eight years and nine months in prison for forcibly assaulting a federal government contract security guard assigned to protect the Social Security Administration office in downtown Fresno, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on October 14, 2014, Blair went to the Social Security Administration office in Fresno to attempt to collect Supplemental Security Income (SSI) benefits. When advised that his benefits had stopped but could be renewed by completing additional paperwork, Blair became agitated and a security guard was called to escort him out of the office. As he was being escorted out of the office, Blair physically assaulted the guard. As a result of the assault, the guard suffered injury to the head and mouth, which required medical treatment.
In sentencing the defendant, Chief U.S. District Judge Lawrence J. O’Neill considered Blair’s lengthy criminal history.
This case was the product of an investigation by Federal Protective Services of the U.S. Department of Homeland Security. The Social Security Administration, Office of the Inspector General, California Department of Corrections and Rehabilitation, Division of Adult Parole Operations, and Stockton Police Department assisted in the investigation. Assistant United States Attorney Karen A. Escobar is prosecuting the case.
Kern County Man Pleads Guilty to Distributing over 30 Pounds of Methamphetamine in Tulare CountyRead the Press Release
FRESNO, Calif. — Daniel Rios, 33, of Kern County, pleaded guilty today to conspiracy to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between March 1, 2016, and June 29, 2016, Rios conspired with others in Earlimart to distribute methamphetamine. On June 14, 2016, he distributed approximately 14.7 kilograms of methamphetamine to a co-conspirator. When law enforcement agents arrested Rios and other co-conspirators, they seized approximately 14.7 kilograms of methamphetamine, three firearms, multiple magazines and ammunition, and over $16,000 in cash.
This case was the product of an investigation by the Drug Enforcement Administration, the Kern County Sheriff’s Office, the Tulare County Sheriff’s Office, the Southern Tri-County Task Force of the Central Valley High Intensity Drug Trafficking Area (HIDTA), the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the California Department of Motor Vehicles Investigations, the Kern County Probation Department, and the California Highway Patrol. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
Rios is scheduled to be sentenced by U.S. District Judge Lawrence J. O'Neill on December 18, 2017. Rios faces a maximum statutory penalty of life in prison and a $5 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Fresno Resident Sentenced for Manufacturing and Selling Fraudulent Identification DocumentsRead the Press Release
FRESNO, Calif. — Angelica Moreno Velasquez, 32, of Fresno, was sentenced today by Chief U.S. District Judge Lawrence J. O’Neill to 15 months in prison for conspiracy to produce, transfer, possess, and sell false identification documents, U.S. Attorney Phillip A. Talbert announced. Moreno Velasquez was remanded into custody today after the sentence was imposed.
According to court documents, between June 2015 and June 2016, Moreno Velasquez conspired with others to sell fraudulent identification documents, including social security cards and alien registration receipt cards, to customers who placed orders and paid as much as $150 for a set of the fraudulent documents.
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the California Department of Motor Vehicles, Investigations Division. Assistant U.S. Attorney Christopher D. Baker is prosecuting the case.
On June 16, 2016, Moreno Velasquez and five co-defendants were arrested for the scheme. In December 2016, Francisco Javier Hidalgo-Flores was sentenced to 15 months in prison; Veronica Rosales-Capitaine was sentenced to 14 months in prison; and Lizet Amairani Ramirez-Zazueta was sentenced to time served.
Charges are pending against the remaining co‑defendants and trial is scheduled to commence on December 5, 2017. The charges are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Bakersfield Woman Pleads Guilty to Drug ConspiracyRead the Press Release
FRESNO, Calif. — Crystal Ferguson, 37, of Bakersfield, pleaded guilty today to conspiracy to distribute and possess with the intent to distribute cocaine base, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between June 1, 2016, and November 1, 2016, Ferguson distributed approximately 79.8 grams of cocaine base and approximately 28.6 grams of cocaine.
This case is the product of an investigation by the FBI Violent Crime Task Force, which includes the Bakersfield Police Department. Assistant U.S. Attorney Brian K. Delaney is prosecuting the case.
Ferguson is scheduled to be sentenced by U.S. District Judge Lawrence J. O'Neill on October 16, 2017. Ferguson faces a maximum statutory penalty of 40 years in prison and a $5 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.
Bakersfield Man Sentenced in Scheme to Defraud Bakersfield Pipe and Supply Inc.Read the Press Release
SACRAMENTO, Calif. — Kye Aaron Dunbar, 30, of Bakersfield, was sentenced today by U.S. District Judge Dale A. Drozd to three years and 10 months in prison and ordered to pay $287,945 in restitution for conspiring to defraud Bakersfield Pipe and Supply Inc. (BPS), U.S. Attorney Phillip A. Talbert announced.
According to court documents, between March 17, 2014, and October 22, 2014, Kye Dunbar, his wife Lynnsi Dunbar, and Daniel Harte conspired to defraud BPS, which is headquartered in Bakersfield, by creating false invoices for payment. Lynnsi Dunbar was an employee of BPS who, with the help of Kye Dunbar and Daniel Harte, created a fictitious trucking company in the name of Harte Trucking. Harte Trucking existed in name only and was created by the defendants for the sole purpose of submitting fraudulent invoices to BPS for payment for services never performed. As a result of this conspiracy, the defendants were able to defraud BPS out of $287,000.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
Lynnsi Dunbar pleaded guilty and is scheduled to be sentenced on January 8, 2018. Harte is scheduled to go to trial on November 7, 2017. The charges against Harte are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Bakersfield Man Sentenced for Unlawful Possession of FirearmsRead the Press Release
FRESNO, Calif. — Martin Patino Jr, 25, of Bakersfield, was sentenced today by U.S. District Judge Lawrence J. O’Neill to five years and 11 months in prison for two counts of being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
Patino pleaded guilty on January 30, 2017. According to court documents, on December 22, 2015, while law enforcement officers were preparing to execute a search warrant at Patino’s residence, they observed Patino exit the residence and walk over to an older model truck that had its front engine compartment hood open. Later, officers searched the truck and found a Black Rock Island Armory, .45‑caliber M1911 A1 handgun with an extended magazine under a sheet in the engine compartment. They also found an additional .45‑caliber handgun magazine at the property. Patino admitted that he was a previously convicted felon and that the firearm and ammunition were his.
On February 12, 2016, law enforcement agents executed a federal search warrant at Patino’s residence and found a Ruger LCP .380 handgun, which was later determined to be stolen, inside a safe in the bedroom. They also found in the safe a 50-round box of Winchester 32 auto 71 grain ammunition and a Ruger brand magazine containing four rounds of ammunition.
According to the plea agreement, Patino admitted that he used or possessed these firearms in connection with the commission of a conspiracy to distribute methamphetamine.
This case was the product of an investigation by the FBI Violent Crime Task Force, which includes the Bakersfield Police Department. Assistant U.S. Attorney Brian K. Delaney prosecuted the case.
Fairfield Man Sentenced to over 15 Years in Prison for Sex Trafficking a MinorRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Garland E. Burrell Jr. sentenced Michael Anthony Holmes, 25, of Fairfield, today to 15 years and eight months in prison for sex trafficking a minor, U.S. Attorney Phillip A. Talbert announced.
According to court documents, from July 16, 2014, until September 4, 2015, Holmes recruited a 15-year-old runaway girl to engage in commercial sex acts with men for his financial benefit. Holmes transported her to multiple locations and collected the money that she earned. In July 2014, police officers found the girl and returned her to her mother. Nonetheless, Holmes continued to pressure the victim work for him, even while he was incarcerated on other charges. He wrote to her from jail and threatened that “there would be consequences” if she did not continue to make money for him.
This case was the product of an investigation by the FBI Solano County Violent Crime Task Force composed of the Federal Bureau of Investigation, the California Highway Patrol, the Solano County Sheriff's Office, the Fairfield Police Department and the Vallejo Police Department. Assistant U.S. Attorney Michele Beckwith prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Sacramento Woman Sentenced to over 4 Years in Prison for Aggravated ID Theft and Using Methamphetamine While in CustodyRead the Press Release
SACRAMENTO, Calif. — Shellby Leeanna Moore, 30, of Sacramento, was sentenced today by U.S. District Judge Morrison C. England Jr. to four years and two months in prison for aggravated identity theft and possession of methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, while Moore was in custody with charges pending for identity theft, she obtained and used methamphetamine. On March 16, 2017, Moore pleaded guilty to stealing identities of Sacramento County residents and possessing methamphetamine.
According to court documents, Moore and co-defendant Trevor Lichnock-Gembe, 29, of Sacramento, obtained stolen mail and used the personal information of victims to open checking and savings accounts and to obtain debit cards. After opening the accounts, the defendants used them to deposit stolen, counterfeit, and altered checks. Surveillance cameras at various locations showed the defendants opening accounts and making phony deposits at banks, making purchases with the fraudulent debit cards, and breaking into mail boxes at apartment complexes.
On April 20, 2016, law enforcement agents conducted a probation search where Moore lived with Lichnock-Gembe. Inside the residence, officers seized stolen property, stolen credit and debit cards, stolen identifications, passports, and stolen U.S. mail.
On April 6, 2017, Judge England sentenced co-defendant Lichnock-Gembe to four years and 10 months in prison for bank fraud, aggravated identity theft, and unlawful possession of identification documents. The attempted loss exceeded $126,879, and both defendants were ordered to pay restitution for the actual loss of $71,960. The defendants stole mail from over 700 different victims in the greater Sacramento Metropolitan area.
This case was the product of an investigation by the United States Postal Inspection Service with assistance from the Sacramento County Sheriff’s Office. Assistant U.S. Attorney Michelle Rodriguez prosecuted the cases.
Merced County Resident Indicted for Conspiracy to Grow Marijuana in Sequoia National ForestRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Jose Manuel Sanchez-Zapien (Sanchez), 37, a native and citizen of Michoacán, Mexico, residing in Dos Palos, charging him with conspiring to manufacture marijuana and damaging public lands and natural resources, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Sanchez was found in April and June of this year at a drop point delivering supplies to growers at a marijuana cultivation site in the Slick Rock Creek drainage 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 grow sites in the Slick Rock Creek drainage.
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.
If convicted of the drug conspiracy, Sanchez faces a minimum statutory penalty of 10 years in prison and a maximum statutory penalty of life in prison, along with a $10 million fine. If convicted of the environmental crime, Sanchez faces a maximum statutory penalty of 10 years in prison and a fine of up to $250,000. Sanchez is also liable for restitution to the U.S. Forest Service for damages stemming from the marijuana cultivation activities. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Elk Grove Man Arrested for Sex Trafficking of a ChildRead the Press Release
SACRAMENTO, Calif. — An Elk Grove man was arrested today on charges of sex trafficking of a child, U.S. Attorney Phillip A. Talbert announced.
On June 8, 2017, a federal grand jury in Sacramento returned a sealed indictment against Abdul Basier Hashimi, 25, charging him with one count of sex trafficking of children. The indictment was unsealed today after Hashimi’s arrest.
According to court documents, between August 2014 and November 2014, Hashimi recruited, harbored, transported, and advertised a minor victim, knowing that the minor would be caused to engage in prostitution.
This case is the product of an investigation by the Federal Bureau of Investigation and the Sacramento Police Department. Assistant U.S. Attorney Brian A. Fogerty is prosecuting the case.
If convicted, Hashimi faces a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison, and up to 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.
Three Sacramento Residents Charged in Scheme to Steal Mail Using Fraudulent Vacation Holds and Address ChangesRead the Press Release
SACRAMENTO, Calif. — On Thursday, June 16, 2017, a grand jury brought an eight-count indictment against Sacramento residents Latomba Bishop, 32; Joshua Yadon, 33, and Norman Thompson, 36, charging them with conspiracy to obtain mail by fraud, access device fraud, mail fraud, and aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Thompson, Bishop, and Yadon used stolen personal identifying information to fraudulently obtain credit cards, checks, and merchandise. To avoid detection, the conspirators would often request that the items be mailed to the victims’ real addresses but then filed false vacation holds and change of address forms with the United States Postal Service in order to divert the items into the conspirators’ possession.
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.
If convicted, Thompson and Yadon face a maximum statutory penalty of five years in prison and a $250,000 fine. If convicted of the mail fraud, Bishop faces a maximum statutory penalty of 20 years in prison and a $250,000 fine, and if convicted of the aggravated identity theft, she faces a mandatory two-year prison sentence consecutive to any other sentence. 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.
Bakersfield Man Indicted on Child Pornography ChargesRead the Press Release
FRESNO, Calif. — On Thursday, June 15, 2017, a grand jury returned a two-count indictment against Augustine Amon Reyes, 31, of Bakersfield, charging him with receipt and possession of child pornography, U.S. Attorney Phillip A. Talbert announced.
According to the indictment, between October and November 2016, Reyes, through the use of a cellphone and a micro SD memory card, received and possessed over 80 sexually explicit images of prepubescent minors being sexually abused.
This case is the product of an investigation by the Bakersfield Office of the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the California Department of Corrections and Rehabilitation with assistance from the U.S. Marshals Service. Assistant U.S. Attorney Brian W. Enos is prosecuting the case.
If convicted, Reyes faces a penalty of 15 to 40 years in prison and a $250,000 fine for the receipt of child pornography charge, as well as 10 to 20 years in prison for possession of child pornography. 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.
Taft Resident Sentenced to over 7 Years in Prison for Running Marijuana Cultivation Operations in the Sequoia National ForestRead the Press Release
FRESNO, Calif. — U.S. District Judge Dale A. Drozd sentenced Juan Penaloza-Ramirez (Penaloza), 46, a native and citizen of Michoacán, Mexico, residing in Taft, today to seven years and three months in prison for conspiring to manufacture, distribute and possess with intent to distribute marijuana that was grown at three separate marijuana cultivation sites in the Sequoia National Forest, U.S. Attorney Phillip A. Talbert announced.
In sentencing Penaloza, Judge Drozd ordered the forfeiture of the seized cash, firearms and ammunition seized during the investigation, and he ordered Penaloza to pay $10,198 in restitution to the U.S. Forest Service for the damage to public land and natural resources caused by his cultivation activities.
Penaloza’s sentence follows his guilty plea earlier this year. According to court documents, Penaloza employed growers, deliverymen, and others to cultivate marijuana in Tulare and Kern Counties in the Sequoia National Forest. The grow sites were located at Fay Creek and Brush Creek, tributaries of the Kern River, and the Needles, a series of massive granite rock formations near the North Fork of the Kern River. Every winter, Penaloza traveled to Mexico to recruit people to grow marijuana on public lands in the United States.
At the Fay Creek grow site, law enforcement officers seized 3,151 marijuana plants. Springs were dammed and diverted to irrigate the marijuana plants and large amounts of trash were scattered throughout, including in a flowing stream.
The Brush Creek grow site contained 2,719 marijuana plants. To make room for the marijuana plants, the growers had eradicated new vegetation and trees that sprouted after the 2002 McNally Fire. Law enforcement officers found large piles of trash stuffed between boulders and buried along a stream. The officers also found toxic pesticides and fertilizers spread throughout the 10-acre site.
The Needles grow site contained 2,608 marijuana plants. In addition to the presence of toxic chemicals and waste, officers found that the water source for the marijuana plants was a spring that drains into the Upper Kern River.
Law enforcement officers also seized marijuana cultivation equipment and supplies, over $7,000 in cash, 16 firearms and over 2,000 rounds of ammunition during follow-up searches of the residences of Penaloza and co-defendant Russell Lee Riggs, 69, of Weldon, another supplier to the Fay Creek site. Riggs pleaded guilty last week and is scheduled for sentencing on September 11, 2017.
This case is the product of an investigation by the U.S. Forest Service, the U.S. Drug Enforcement Administration (DEA), the Bureau of Land Management, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Southern Tri-County High Intensity Drug Trafficking Area (HIDTA) task force, the California Department of Justice’s Campaign Against Marijuana Planting (CAMP), and the Kern County Sheriff’s Office. Assistant United States Attorney Karen Escobar is prosecuting the case.
Credit Unions in the Eastern District of California Among Clients Defrauded by Debt Collection CompanyRead the Press Release
SACRAMENTO, Calif. — Charles V. Stanley Jr., 63, of Southern California, was arrested on Wednesday in Los Angeles on a 15-count indictment returned by a federal grand jury in Sacramento charging him with conspiracy to commit bank fraud, mail fraud and wire fraud, as well as separate counts of bank fraud, wire fraud and mail fraud, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Stanley was the owner and operator of a debt collection company called Creditor Specialty Service, Inc. (CSS) located in Acton, California and with agents throughout California and elsewhere. Various financial institutions and other companies contracted with CSS to collect debts. At Stanley’s direction, CSS employees collected money from the debtors but underreported the amounts they actually collected. Stanley diverted some of the unreported proceeds for his own personal spending and to pay other clients to whom CSS owed money. Stanley also continued to collect money from debtors of one financial institution even after that institution terminated its contract with CSS. Stanley also caused CSS to file lawsuits or settle with debtors without client authorization. It is alleged that because of Stanley’s conspiracies and schemes, CSS’s clients and debtors lost several millions of dollars.
Credit Unions based in Folsom, Sacramento and Bakersfield contracted with CSS to collect debts from some of its customers.
This case is 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.
If convicted, Stanley faces a maximum statutory penalty of 30 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Sacramento Man Sentenced to over 7 Years in Prison for Mortgage Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Troy L. Nunley sentenced Sergey Shchirskiy, 41, of Sacramento, to seven years and 10 months in prison for his participation in two mortgage fraud schemes and one tax fraud scheme, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Shchirskiy pleaded guilty to one count of wire fraud in each of the two mortgage fraud cases, as well as one count of conspiracy to defraud the United States and one count of aggravated identity theft in the third tax fraud case.
According to the plea agreement, Shchirskiy was a loan processor in one mortgage fraud scheme (2:11-cr-514). Between April 2007 and November 2007, the co-conspirators used straw buyers to buy properties and then take out Home Equity Lines of Credit on the houses using fraudulent documents and statements. Shchirskiy helped to create the fraudulent supporting documents. All of the properties were foreclosed on, resulting in at least $1.5 million in losses to lenders.
According to the plea agreement in the second mortgage fraud scheme (2:12-cr-060), in April 2007, Shchirskiy recruited straw buyers to purchase a houses based on fraudulent loan applications. The applications gave false information about the buyer’s employment, income, assets, and intention to occupy the properties. The properties were foreclosed upon and resulted in a loss of more than $1.2 million to lenders.
According to the plea agreement in the tax fraud scheme (2:14-cr-198), between March 2011 and April 2011, Shchirskiy conspired with others to obtain false tax refunds by submitting fraudulent claims using the identities of various individuals, at least eight of which were stolen. Shchirskiy claimed Earned Income Tax Credit based on false claims of employment from California’s In-Home Supportive Services program. Shchirskiy and his co-conspirators made approximately 80 attempts to file fraudulent tax returns, attempting to receive $661,286 in fraudulent returns from the Internal Revenue Service. The IRS ultimately issued approximately $88,728 in fraudulent refunds.
These cases were the product of investigations by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant U.S. Attorneys Heiko Coppola and Michele Beckwith prosecuted the cases.
Long Beach Man Sentenced to 6 Years in Prison for $5M Unemployment Benefits Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Troy L. Nunley sentenced Andre Antonio Walters, 37, of Long Beach, today to six years and one month in prison and a $15,000 fine for four counts of mail fraud for his role in a significant unemployment benefit fraud scheme, U.S. Attorney Phillip A. Talbert announced.
According to evidence presented at trial in August 2016, Walters was a “manager” in a scheme to defraud the State of California of unemployment benefits from approximately 2008 to 2011. The scheme involved registering fictitious businesses with the state, listing “employees” as having earned wages at those fictitious businesses when in fact they had never worked there, and then filing for unemployment benefits on behalf of those “employees.” Walters recruited people to pose as these “employees,” managed their unemployment claims once filed, and split the resulting unemployment benefits checks that were mailed out of West Sacramento. According to the indictment, the scheme resulted in at least $5 million in fraudulently obtained unemployment benefits being disbursed by the state.
U.S. Attorney Talbert stated: “The funds set aside for unemployment insurance and disability insurance are intended to benefit Californians who have earned the right to receive those benefits. Fraud schemes that damage and deplete the fund undermine the benefit system and cheat those whom the funds are intended to protect. We will continue to work with our law enforcement partners to investigate and stop fraud schemes like this that harm California workers.”
“Andre Walters and Michael Taylor Jr., who was sentenced last week, created several fictitious employers and then used the names of approximately 500 nonexistent employees to collect more than $5 million in unemployment insurance benefits intended to provide relief to unemployed workers. We will continue to work with our state and federal law enforcement partners to preserve the integrity of all Department of Labor enforcement programs,” said Abel Salinas, Special Agent in Charge, Los Angeles Region, U.S. Department of Labor, Office of Inspector General.
“Today’s sentencing sends a loud, clear message: we will not tolerate those who engage in unemployment benefits fraud,” said Patrick W. Henning, Director of the Employment Development Department (EDD). “We’re proud to team up with the U.S. Attorney’s Office and the U.S. Department of Labor, Office of Inspector General to stop these criminals. We all share a common commitment: to ensure unemployment benefits go to the unemployed who need the assistance — not to thieves who believe they are above the law.”
This case was the product of an investigation by the U.S. Department of Labor, Office of Inspector General and the California Employment Development Department. Assistant U.S. Attorneys Jared C. Dolan and Matthew M. Yelovich prosecuted the case.
Walters is the sixth defendant to be sentenced for participating in this fraud scheme. Kenneth Kim Parks, 54, of Pomona, and of Long Beach, was sentenced to five years in prison. Gregory Bart Martin, 36, of Lakewood, was sentenced to 18 months of probation, Michael Ray Taylor Sr., 52, of Fontana, was sentenced to three years in prison; and Michael Ray Taylor Jr., 32, of El Monte, was sentenced to 15 months in prison.
Kern County Men Charged in Drug Trafficking ConspiracyRead the Press Release
FRESNO, Calif. — A federal grand jury returned an indictment today against two Kern County residents, charging them in a conspiracy to distribute heroin, cocaine, and methamphetamine, U.S. Attorney Phillip A. Talbert announced.
Mario Alvarez-Muniz, 49, a citizen of Mexico, residing in Taft, and Darrell Leon Jennings, 49, of Bakersfield, were charged with conspiring to distribute heroin, cocaine and methamphetamine and possession with intent to distribute heroin and cocaine. Alvarez-Muniz was also charged with distributing methamphetamine.
According to court documents, Alvarez-Muniz, a self-employed tow truck driver, obtained heroin, cocaine, and methamphetamine from Mexico for distribution here. Jennings is a self-employed truck driver who assisted Alvarez-Muniz in transporting heroin and cocaine to Bakersfield for shipment to Chicago. Alvarez-Muniz was arrested in Bakersfield after delivering two pounds of methamphetamine during an undercover drug transaction and orchestrating a shipment of six kilograms of heroin and 11 kilograms of cocaine seized from Jennings’ truck.
This case is the product of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by the U.S. Drug Enforcement Administration, the California Highway Patrol, the Bakersfield Police Department, and the Kern County Probation Office. The OCDETF Program was established in 1982 and 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 money laundering organizations and related criminal enterprises. Assistant U.S. Attorneys Karen Escobar and Jeffrey Spivak are prosecuting the case.
If convicted, Alvarez-Muniz and Jennings face 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. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Kern County Man Pleads Guilty to Marijuana Cultivation Operation in Sequoia National ForestRead the Press Release
FRESNO, Calif. — Russell Lee Riggs, 69, of Weldon, pleaded guilty today to conspiring to manufacture, distribute and possess with intent to distribute marijuana grown in the Sequoia National Forest, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Riggs delivered supplies and material to a marijuana cultivation site containing over 3,000 marijuana plants in the Fay Creek drainage in Kern County in the Sequoia National Forest. He also received processed marijuana from growers at the site. Springs were dammed and diverted to irrigate the marijuana plants and large amounts of trash were scattered throughout, including in a flowing stream. Law enforcement officers also seized marijuana cultivation equipment and supplies, 16 firearms and over 2,000 rounds of ammunition at the site and during follow-up searches of Riggs’ residence and that of co‑defendant Juan Penaloza-Ramirez, 46, a citizen of Mexico.
Fay Creek supports a variety of ecosystems and resources, including riparian habitat supporting trout, wildflowers and grasses, and willow, alder and cottonwood trees. Fay Creek also serves as the primary drinking water source for many wildlife in the area.
In pleading guilty, Riggs agreed to pay $1,719 to the U.S. Forest Service for the damage to public land and natural resources caused by the cultivation activities. He also agreed to the forfeiture of the seized firearms and ammunition.
Riggs is scheduled for sentencing before U.S. District Judge Dale A. Drozd on September 11, 2017. Penaloza-Ramirez previously pleaded guilty and is scheduled for sentencing on June 19, 2017. Both men face a mandatory minimum statutory penalty of five years in prison and a maximum statutory penalty of 40 years in prison, along with a $5 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the U.S. Forest Service, the U.S. Drug Enforcement Administration, the Bureau of Land Management, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Southern Tri-County High Intensity Drug Trafficking Area (HIDTA) task force, the California Department of Fish and Wildlife, the California Department of Justice’s Campaign Against Marijuana Planting (CAMP), and the Kern County Sheriff’s Office. Assistant United States Attorney Karen Escobar is prosecuting the case.
Southern California Man Indicted for Trafficking FentanylRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Eduardo Zavala Lopez, 26, of Sylmar, charging him with possessing fentanyl with the intent to distribute, United States Attorney Phillip A. Talbert announced.
According to court documents, an undercover officer negotiated with Lopez and a source in Mexico to purchase China white heroin for $34,000 per kilogram. Lopez said the heroin was “synthesized.” Lopez traveled to Kingsburg where he met with the undercover officer. Ultimately, two kilograms were found hidden in the left rear passenger door and law enforcement later determined that the substance was a mixture of fentanyl and ketamine.
Fentanyl is a potent and highly toxic synthetic opioid that poses a significant health risks including death.
This case is the product of an investigation by the Fresno Methamphetamine Task Force and the Fresno Area Surveillance Team, made up of officers from the Fresno Police Department, the Fresno County Sheriff’s Department, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the California Highway Patrol, and the Kings County Sheriff’s Department. Assistant United States Attorney Laurel J. Montoya is prosecuting the case.
If convicted, Lopez faces a maximum statutory penalty of 20 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Red Bluff Woman Pleads Guilty to Bank Fraud, Identity Theft and Possession of Stolen U.S. MailRead the Press Release
SACRAMENTO, Calif. — Crystal Candiece Cooper, 35, pleaded guilty on Tuesday to executing a bank fraud scheme with contents of stolen U.S. Mail, aggravated identity theft, and possession of stolen U.S. Mail, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between December 19, 2015 and March 27, 2017, Cooper and others operated an identity theft scheme. Cooper obtained financial and identity information, checks, credit cards and bank cards from stolen U.S. mail and used them to get cash, goods, and services. Cooper targeted postal customers in Red Bluff.
One victim had applied for federal social security benefits and expected to receive a debit card in the mail to access the money. Instead, Cooper obtained the mail stolen from the victim and found the victim’s debit card and other identifying information. Cooper was able to activate the card and set a PIN to give her access to the funds. She made four separate cash withdrawals using the bank card.
When Cooper was arrested by federal agents on March 27, 2017, Cooper possessed more stolen mail and identity information such as Social Security numbers, dates of birth, and driver’s license numbers for residents of Tehama and Shasta Counties.
This case is the product of an investigation by the United States Postal Inspection Service with assistance from the Tehama County Sheriff’s Department and the Red Bluff Police Department. Assistant United States Attorney Michelle Rodriguez is prosecuting the case.
Cooper is scheduled to be sentenced on September 12, 2017, by U.S. District Judge John A. Mendez. Cooper faces a maximum statutory penalty of up to 30 years in prison and a $1 million fine for the bank fraud conviction, a mandatory two years in prison consecutive to any other term and a $250,000 fine for the aggravated identity theft, and five years in prison and a $250,000 fine for possession of stolen mail. 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.
Methamphetamine Trafficker Sentenced to 8 Years in Prison for Trafficking Drugs and Guns to HawaiiRead the Press Release
SACRAMENTO, Calif. — Algernon Tamasoa, 28, of Sacramento, was sentenced today by U.S. District Judge Kimberly J. Mueller to eight years in prison for his participation in a methamphetamine trafficking organization and for selling dangerous assault rifles, U.S. Attorney Phillip A. Talbert announced.
On January 11, 2017, Tamasoa pleaded guilty to conspiracy to distribute methamphetamine and dealing firearms without a license.
According to court documents, Tamasoa conspired with co-defendant Epati Malauulu, 42, of Suisun City, and others to purchase high quality methamphetamine in California and ship it into Hawaii where it sold at a large profit on Oahu, an area hit particularly hard by the crystal methamphetamine epidemic.
Co-defendants John Ortiz, 44, of Vallejo; and Francisco Poloai, 45, of Dixon, were also charged in the drug conspiracy in the Eastern District of California. Ultimately, the drug investigation led to 44 defendants being charged in the District of Hawaii and four being charged in the Northern District of California (San Francisco).
According to court documents, between February 6, 2015, and May 27, 2015, Tamasoa sold 11 assault rifles to an undercover agent. Several of the rifles had high-capacity magazines. Tamasoa provided ammunition in addition to the firearm in the first four firearm sales. These assault weapons shoot high-velocity bullets that go through the bulletproof vests that most law enforcement officers wear. They also can go through walls and doors in an urban setting. Two of the assault rifles were manufactured by unlicensed gun makers and lacked serial numbers, making them untraceable.
On April 26, 2017, Malauulu was sentenced to 20 years in prison, and on May 17, 2017, Ortiz was sentenced to 10 years in prison for the methamphetamine trafficking activity. Poloai, the sole remaining defendant in the drug trafficking case, is scheduled for trial on September 25, 2017. The charges against Poloai are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Drug Enforcement Administration, the Federal Bureau of Investigation, the U.S. Postal Inspection Service, the Solano County Multi-Jurisdictional Methamphetamine Enforcement Team, the Solano County Sheriff’s Office, the Fairfield Police Department, the Vallejo Police Department, the San Francisco Police Department, the Honolulu Police Department, and others. Assistant United States Attorney Richard Bender is prosecuting the Sacramento case.
This case is the product of an investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
Guilty Plea in Armed Robbery of Mail Carrier in Rancho CordovaRead the Press Release
SACRAMENTO, Calif. — Juan Carlos Maldonado, 22, pleaded guilty today to the armed robbery of a U.S. mail carrier, participation in a bank fraud scheme, and aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on June 21, 2016, Maldonado and others used a sport utility vehicle with its plates removed and followed a U.S. letter carrier in a Rancho Cordova neighborhood. They pulled alongside the postal truck and when the carrier stepped out to deliver mail, Maldonado wielded a pistol at the carrier and robbed him at gunpoint. During the robbery, Maldonado and his associates raided the postal truck, stealing over 800 items of U.S. Mail. Following the robbery, they rifled through the stolen mail for personal identification and financial information, which Maldonado used and provided to others for use to defraud financial institutions.
On June 30, 2016, Maldonado was arrested by the El Dorado County Sheriff’s Office at the Red Hawk Casino while attempting to access proceeds from credit cards stolen during the June 21, 2016 robbery.
San Francisco Division Inspector in Charge Rafael Nunez stated: “Working with the U.S. Attorney’s Office and our partners in law enforcement, Postal Inspectors arrested this individual for the armed robbery of a U.S. Postal Service Letter Carrier. Protecting postal employees from harm is the U.S. Postal Inspection Service’s top priority.”
This case is the product of an investigation by the United States Postal Inspection Service and the United States Postal Inspection Service’s Narcotic and Economic Crimes Investigations Task Force (NECI) with assistance from the El Dorado County Sheriff’s Office, the El Dorado County District Attorney’s Office, and the Rancho Cordova Police Department. 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. Assistant United States Attorney Michelle Rodriguez is prosecuting the case.
Maldonado is scheduled to be sentenced by U.S. District Judge John A. Mendez on September 12, 2017. Maldonado faces a maximum statutory penalty of up to 30 years in prison and a $1 million fine for bank fraud, a mandatory two years in prison consecutive to any other term for aggravated identity theft, and up to 10 years in prison and a $250,000 fine for robbery of a U.S. mail carrier. 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.
Man Sentenced to 2 Years in Prison for Marijuana Cultivation at Native American Archaeological Site in Sequoia National ForestRead the Press Release
FRESNO, Calif. — Carlos Piedra-Murillo (Piedra), 30, a citizen of Mexico, was sentenced today to two years and one month in prison for conspiring to manufacture, distribute and possess with intent to distribute marijuana in connection with a large-scale cultivation operation that impacted a prehistoric site, U.S. Attorney Phillip A. Talbert announced. Piedra was also ordered to pay $5,233 to the U.S. Forest Service to cover the cost to repair damage to the land and natural resources.
According to court documents, between May 1, 2016, and August 26, 2016, Piedra conspired with Juan Carlos Lopez, 32, of Lake Elsinore; Rafael Torres-Armenta (Torres), 30, and Javier Garcia-Castaneda (Garcia), 38, both citizens of Mexico, to cultivate marijuana in the Domeland Wilderness in the Sequoia National Forest. The Domeland Wilderness is a federally designated wilderness area about 55 miles northeast of Bakersfield and is known for its many granite domes and unique geologic formations. Law enforcement officers located over 8,000 marijuana plants at that location and seized 15 pounds of processed marijuana, a .22‑caliber rifle, a pellet rifle, and numerous rounds of .22‑caliber ammunition.
The marijuana cultivation operation caused extensive environmental damage. It covered about 10 acres and was within the burned area of the 2000 Manter Fire. Some of the new vegetation and trees that sprouted after the fire had been cut and trimmed to make room for the marijuana plants. Water was diverted from a tributary stream of Trout Creek, a major tributary to the Kern River. Fertilizer and pesticides, including illegal carbofuran and zinc phosphide, highly toxic pesticides from Mexico, were found at the site. Large piles of trash were found near the campsite. The moving of soil to accommodate a basin around each marijuana plant caused extensive damage to a large prehistoric Tűbatulabal archaeological site. Holes were dug in the middle of the archaeological site and artifacts were found scattered on the surface among the marijuana plants.
This case is the product of an investigation by the U.S. Forest Service, Bureau of Land Management, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the California Department of Fish and Wildlife. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
Torres, Lopez, and Garcia have also pleaded guilty and are scheduled for sentencing on June 26, 2017. They face a maximum statutory penalty of 20 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.
Man Sentenced to Two Years and One Month for Marijuana Cultivation at Native American Archaeological Site in the Sequoia National ForestRead the Press Release
FRESNO, Calif. — Carlos Piedra-Murillo (Piedra), 30, a citizen of Mexico, was sentenced today to two years and one month in prison for conspiring to manufacture, distribute and possess with intent to distribute marijuana in connection with a large-scale cultivation operation that impacted a prehistoric site, U.S. Attorney Phillip A. Talbert announced. Piedra was also ordered to pay $5,233 to the U.S. Forest Service to cover the cost to repair damage to the land and natural resources.
According to court documents, between May 1, 2016, and August 26, 2016, Piedra conspired with Juan Carlos Lopez, 32, of Lake Elsinore; Rafael Torres-Armenta (Torres), 30, and Javier Garcia-Castaneda (Garcia), 38, both citizens of Mexico, to cultivate marijuana in the Domeland Wilderness in the Sequoia National Forest. The Domeland Wilderness is a federally designated wilderness area about 55 miles northeast of Bakersfield and is known for its many granite domes and unique geologic formations. Law enforcement officers located over 8,000 marijuana plants at that location and seized 15 pounds of processed marijuana, a .22‑caliber rifle, a pellet rifle, and numerous rounds of .22‑caliber ammunition.
The marijuana cultivation operation caused extensive environmental damage. It covered about 10 acres and was within the burned area of the 2000 Manter Fire. Some of the new vegetation and trees that sprouted after the fire had been cut and trimmed to make room for the marijuana plants. Water was diverted from a tributary stream of Trout Creek, a major tributary to the Kern River. Fertilizer and pesticides, including illegal carbofuran and zinc phosphide, highly toxic pesticides from Mexico, were found at the site. Large piles of trash were found near the campsite. The moving of soil to accommodate a basin around each marijuana plant caused extensive damage to a large prehistoric Tűbatulabal archaeological site. Holes were dug in the middle of the archaeological site and artifacts were found scattered on the surface among the marijuana plants.
This case is the product of an investigation by the U.S. Forest Service, Bureau of Land Management, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the California Department of Fish and Wildlife. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
Torres, Lopez, and Garcia have also pleaded guilty and are scheduled for sentencing on June 26, 2017. They face a maximum statutory penalty of 20 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.
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Former Bakersfield Marijuana Store Owner Sentenced to Five Years in PrisonRead the Press Release
FRESNO, Calif. — Raymond Arthur Gentile, 56, of Las Vegas, Nevada, was sentenced to five years in prison by U.S. District Judge Dale A. Drozd for conspiring to manufacture, distribute and possess with intent to distribute marijuana, manufacturing marijuana, possessing marijuana with intent to distribute, and two counts of making false statements during firearms transactions, U.S. Attorney Phillip A. Talbert announced.
According to evidence presented at trial in July 2016, from 2009 to 2012, Gentile was the owner and operator of ANP, a marijuana storefront, in Bakersfield. When agents executed a federal search warrant, they seized 170 marijuana plants, over 24 pounds of processed marijuana, over $68,000 in cash, and a loaded shotgun. The testimony at trial established that Gentile made $25,000 to $30,000 a month in gross proceeds. Agents found the marijuana plants growing in two separate grow rooms within the store and sales receipts indicated 40 to 50 sales to customers each day. In addition, the evidence showed that Gentile made false statements on a Firearms Transaction Record, ATF Form 4473, in order to purchase two Glock firearms. One of the firearms was seized from ANP during the investigation of this case.
Under federal law, marijuana is a controlled substance without any legitimate medical purpose. The city of Bakersfield, where Gentile’s marijuana store was located, has prohibited the operation of marijuana dispensaries within its limits. Prior to sentencing, Judge Drozd found that even under California law, Gentile was not in compliance.
The case was the product of an investigation by the Drug Enforcement Administration with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the California Highway Patrol and the Bakersfield Police Department. Assistant United States Attorneys Karen A. Escobar and Melanie L. Alsworth prosecuted the case.
Former Bakersfield Marijuana Store Owner Sentenced to Five YearsRead the Press Release
FRESNO, Calif. — Raymond Arthur Gentile, 56, of Las Vegas, Nevada, was sentenced to five years in prison by U.S. District Judge Dale A. Drozd for conspiring to manufacture, distribute and possess with intent to distribute marijuana, manufacturing marijuana, possessing marijuana with intent to distribute, and two counts of making false statements during firearms transactions, U.S. Attorney Phillip A. Talbert announced.
According to evidence presented at trial in July 2016, from 2009 to 2012, Gentile was the owner and operator of ANP, a marijuana storefront, in Bakersfield. When agents executed a federal search warrant, they seized 170 marijuana plants, over 24 pounds of processed marijuana, over $68,000 in cash, and a loaded shotgun. The testimony at trial established that Gentile made $25,000 to $30,000 a month in gross proceeds. Agents found the marijuana plants growing in two separate grow rooms within the store and sales receipts indicated 40 to 50 sales to customers each day. In addition, the evidence showed that Gentile made false statements on a Firearms Transaction Record, ATF Form 4473, in order to purchase two Glock firearms. One of the firearms was seized from ANP during the investigation of this case.
Under federal law, marijuana is a controlled substance without any legitimate medical purpose. The city of Bakersfield, where Gentile’s marijuana store was located, has prohibited the operation of marijuana dispensaries within its limits. Prior to sentencing, Judge Drozd found that even under California law Gentile was not in compliance.
The case was initiated by the Drug Enforcement Administration (DEA) following a report to Bakersfield Police Department regarding an assault that allegedly occurred at Gentile’s business. In sentencing the defendant, the judge found that the defendant used threats of violence in connection with the sale of marijuana.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), California Highway Patrol and Bakersfield Police Department assisted in the DEA investigation. Assistant United States Attorneys Karen A. Escobar and Melanie L. Alsworth prosecuted the case.
Fresno Man Charged with Sexual Exploitation of Children Through Musical.Ly, Kik, and other AppsRead the Press Release
FRESNO, Calif. — On Thursday, a federal grand jury returned a six-count indictment against Jacob Eric Blanco, 25, of Fresno, charging him with five counts of sexual exploitation of children and one count of distributing child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Blanco is alleged to have used apps on his phone and computer, including Musical.ly and KIK, to target and communicate with girls under the age of 12 for the purpose of having the girls create and transmit images of themselves engaged in sexually explicit conduct. Blanco came to the attention of law enforcement after the parents of a six-year-old girl in Nassau County, New York stated to local police that someone using the app Musical.ly, alleged to be Blanco, had solicited sexually explicit images of the girl. Investigators are actively attempting to identify additional victims.
This case is the product of an investigation by the Central California Internet Crimes Against Children Task Force. Assistant U.S. Attorney David Gappa is prosecuting the case.
If convicted, Blanco faces a mandatory minimum of 15 years in prison and a maximum of 30 years in prison for each sexual exploitation count and 5–20 years in prison for the one count of distribution of child pornography. For all counts there is a potential $250,000 fine and lifetime supervised release. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Senator Dianne Feinstein Honors Mariposa County Sheriff’s Deputy with the Congressional Badge of BraveryRead the Press Release
FRESNO, Calif. — Senator Dianne Feinstein today awarded the Law Enforcement Congressional Badge of Bravery to Mariposa County Sheriff’s Deputy Rudy Mirelez who exhibited exceptional courage in saving and protecting others and whose heroic actions were above and beyond the call of duty.
U.S. Attorney Phillip A. Talbert and Mariposa County Sheriff Doug Binnewies attended the presentation today in Fresno at the Doubletree Hotel.
“Deputy Rudy Mirelez is a worthy recipient of the Law Enforcement Congressional Badge of Bravery,” said U.S. Attorney Talbert. “It is an honor for the U.S. Attorney’s office to support the nomination of Deputy Mirelez. He now joins the ranks of law enforcement officers across the nation who stood in the front lines to fight against crime and violence.”
Sheriff Binnewies stated: “It is a privilege to count Deputy Rudy Mirelez as a partner in our mission to protect the people of Mariposa County. He fearlessly responded when his fellow deputy was in danger. We will never know how many lives he may have saved by his courageous actions that day. I congratulate him on this well-deserved honor. His bravery will always be remembered and will serve as an inspiration to us all.”
Every day, federal, state, and local law enforcement officers engage in exceptional acts of bravery while in the line of duty. Often, such acts place the officers involved at personal risk of injury or result in their sustaining a physical injury. To honor these acts of bravery, Congress passed the Law Enforcement Congressional Badge of Bravery Act of 2008, creating the Federal Law Enforcement Congressional Badge of Bravery and the State and Local Law Enforcement Congressional Badge of Bravery. The act establishes an award to honor exceptional acts of bravery in the line of duty by federal, state, and local law enforcement officers. The medals are awarded annually by the U.S. Attorney General and are presented by the recipients' Congressional representatives.
On Thursday morning, October 1, 2015 at 5:44 a.m. veteran Mariposa County Sheriff’s Deputy Rudy Mirelez logged on early for duty, At approximately 6:01 a.m., Deputy Mirelez and Deputy Justin Sponhaltz heard radio traffic from another deputy involved in a vehicle pursuit heading in their direction. The pursuing deputy indicated that the suspect vehicle passed him traveling at speeds of 90 miles per hour. As the suspect vehicle approached their location, Deputy Sponhaltz pulled onto State Route 49 to prepare to support the pursuing deputy. The fleeing vehicle was approaching Deputy Sponholtz’ position at an extremely high rate of speed. The suspect vehicle then appeared to lose control and or intentionally collided into Deputy Sponhaltz’ patrol vehicle. This collision forced Deputy Sponhalz’ vehicle off of the highway up an embankment. The suspect vehicle was rendered disabled and spun to a stop in the middle of the lane.
Witnessing the collision, Deputy Mirelez pulled to a stop between Deputy Sponhaltz’ vehicle and the suspect vehicle in an attempt to protect the life of his partner. Deputy Mirelez exited his vehicle and was confronted by a 35-year-old man armed with a pistol. After a brief verbal exchange, ordering the driver to drop the pistol, gunfire erupted between the suspect and Deputy Mirelez. During the firefight, Deputy Mirelez sustained a direct gunshot wound to the face from the suspect’s .45-caliber gun. This traumatic injury caused Deputy Mirelez to fall to his knees. Knowing his partner and the community was in danger, Deputy Mirelez got back up and continued to engage the suspect with fire. Deputy Mirelez was then struck in the upper torso. The bullet passed above his ballistic vest panels and caused critical internal injuries.
Deputy Mirelez was able to keep the suspect engaged until his fellow deputies, Deputy Sheriff Tim Lemmons and Deputy Sheriff Michael King contacted and apprehend the suspect.
Sustaining life-threatening injuries, Deputy Mirelez was flown to a trauma hospital in Modesto where a surgery team was waiting. Less than 24 hours after this incident, Deputy Mirelez, barely alert, began asking about his partners. Due to the significant and critical injuries sustained, Deputy Mirelez was not able to speak and was unable to move without excruciating pain. Fighting through his pain, he asked for paper and a pen and wrote “Sponholtz.” He then held his hand up showing the number four, the universal law enforcement code for Code 4, meaning “no further assistance needed.” Throughout his recovery, Deputy Mirelez would focus more on healing those around him than his own being.
Less than 30 days after being shot twice Deputy Mirelez spoke to the Mariposa County Board of Supervisors and community. Appearing in public, with his wife and family, with his facial injuries and protruding medical devices that held his jaw in place, he spoke about healing the community, thankfulness and his desire to get back to work protecting and serving the people of Mariposa County. Five months after having received multiple life-threatening injuries and having undergone multiple surgeries, Deputy Rudy Mirelez remains strong for his family and peers.
The investigation into the shooting, revealed the suspect was a well-trained U.S. combat veteran who served three tours in Iraq. The suspect, reportedly was “on a mission” to kill an unsuspecting Mariposa County resident unrelated to this event. Due to the courageous actions of Deputy Mirelez, at least one, and possibly many citizens’ lives were saved that morning.
Go to www.bja.gov/CBOB to learn more about the Law Enforcement Congressional Badge of Bravery.
Former Congressional Candidate Pleads Guilty to Making False Statements to Federal AgentsRead the Press Release
SACRAMENTO, Calif. — Karen Mathews Davis, 68, of Lodi, pleaded guilty today to making false statements to federal agents during the course of a criminal investigation into the mailing of threatening letters, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between December 23, 2013, and February 12, 2015, Davis falsely claimed to federal law enforcement agents that she had received two letters in the mail from unknown individuals threatening her with death. At the time she received the letters, she was running for a U.S. Congressional seat. Davis provided information to federal law enforcement agents about three individuals who she suggested could have mailed the two threatening letters. In actuality, Davis wrote both letters, placing the first in her own mailbox and mailing herself the second.
This case is the product of an investigation by the U.S. Department of Treasury Inspector General for Tax Administration and the Federal Bureau of Investigation. Assistant United States Attorney Heiko P. Coppola is prosecuting the case.
Davis is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on September 28, 2017. Davis faces a maximum statutory penalty of five years in prison. 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.
Antelope Man Pleads Guilty to Selling Counterfeit Airbags OnlineRead the Press Release
SACRAMENTO, Calif. — Vitaliy Fedorchuk, 28, of Antelope, pleaded guilty today to five counts of mail fraud for an international scheme to sell counterfeit airbags via eBay and other internet sales sites, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between June 23, 2014, and July 27, 2016, Fedorchuk offered for sale airbag modules, covers, and manufacturer emblems at his eBay online store, redbarnautoparts. Fedorchuk falsely advertised that the counterfeit airbags were original equipment from major automobile manufacturers such as Honda, Fiat, Chrysler, Nissan, Toyota, GMC and Ford. During the scheme, Fedorchuk sold hundreds of counterfeit airbags and obtained more than $95,000.
According to the plea agreement, all airbag parts Fedorchuk sold through his online store were counterfeit. Each identified automobile manufacturer informed law enforcement that the specific airbag items (including covers and emblems) are not sold individually. The items are sold as part of an airbag assembly to authorized dealers. Additionally, due to the significance and importance of airbag functionality and potential for loss of life or injury, such new airbag items are not sold on eBay and must be purchased through an authorized dealer. The authentic airbag covers and modules contain distinctive manufacturer markings that include the date of production. All airbag related items sold by Fedorchuk failed to contain such distinctive markings.
This case is the product of an investigation of the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Michelle Rodriguez is prosecuting the case.
Fedorchuk is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on October 4, 2017. Fedorchuk faces up to 20 years in prison and a $250,000 fine for each count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Fourteen Federal Defendants Indicted for Drugs and Firearms OffensesRead the Press Release
FRESNO, Calif. — Following a multi-agency investigation in Merced County that focused on crimes of violence, drug sales, and illegal firearms possession, 14 federal defendants were indicted on Thursday for drug trafficking and firearms offenses, U.S. Attorney Phillip A. Talbert announced.
According to the criminal complaint, in December 2016, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives and other federal, state and local law enforcement agencies began targeting gang members associated with Sureno criminal street gangs in Merced County. Information leading to the arrests was gathered using undercover buys of firearms and narcotics, surveillance and other investigative tools. On May 10, 2017, nearly 500 federal, state and local law enforcement personnel executed search warrants and arrested more than 50 criminal street gang members.
Most defendants face state charges. The following were arrested on federal charges and indicted by a federal grand jury on Thursday:
Robert James Guthrie, 22, of Atwater, is charged with conspiracy to distribute and possess with intent to distribute methamphetamine, distribution of methamphetamine, possession with intent to distribute methamphetamine, distribution of cocaine, conspiracy to engage in the business of dealing firearms without a license, and possession of an unregistered firearm.
Andres Corona Prado, 28, of Hughson, is charged with conspiracy to distribute and possess with intent to distribute methamphetamine, distribution of methamphetamine, possession with intent to distribute methamphetamine, conspiracy to engage in the business of dealing firearms without a license, and being an illegal alien in possession of a firearm.
Joseph Quirarte, 21, of Atwater, is charged with conspiracy to distribute and possess with intent to distribute methamphetamine, distribution of methamphetamine, and conspiracy to engage in the business of dealing firearms without a license.
Francisco Salgado, 25, of Stevinson, is charged with conspiracy to distribute and possess with intent to distribute methamphetamine, distribution of methamphetamine, possession with intent to distribute methamphetamine, attempted possession with intent to distribute methamphetamine, and being a felon in possession of a firearm.
Marcos Hernandez, 33, of Winton, is charged with conspiracy to distribute and possess with intent to distribute methamphetamine, distribution of methamphetamine, possession with intent to distribute methamphetamine, conspiracy to engage in the business of dealing firearms without a license, and being a felon in possession of a firearm.
Raul Zamudio Hurtado Jr., 34, of Oakdale, is charged with conspiracy to distribute and possess with intent to distribute methamphetamine, distribution of methamphetamine, and possession with intent to distribute methamphetamine.
Orasio Fierro, 25, of Winton, is charged with distribution of cocaine, conspiracy to engage in the business of dealing firearms without a license, being a felon in possession of a firearm, and possession of an unregistered firearm.
Jose Rodriguez 34, of Atwater, is charged with conspiracy to distribute and possess with intent to distribute methamphetamine, distribution of methamphetamine, and distribution of cocaine.
Zeb Stevens, 37, of Atwater, is charged with being a felon in possession of a firearm.
Vincent Michael Williams, 28 of Atwater, is charged with being a felon in possession of a firearm.
Abraham Sigala, 20, of Atwater, is charged with conspiracy to distribute and possess with intent to distribute methamphetamine and distribution of methamphetamine.
Daniel Garcia, 21, Atwater, is charged with conspiracy to distribute and possess with intent to distribute methamphetamine, distribution of methamphetamine, and possession with intent to distribute methamphetamine.
Carlos Arauza-Parga, 26, of Atwater, is charged with conspiracy to distribute and possess with intent to distribute methamphetamine, distribution of methamphetamine, and possession with intent to distribute methamphetamine.
Joshua Lacey, 35, of Atwater, is charged with possession of an unregistered firearm.
This case was the product of an investigation by the FBI, ATF, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Merced Area Gang and Narcotic Enforcement Team (MAGNET), and the California Department of Justice/California Highway Patrol, Special Operations Unit (CA DOJ/CHP SOU). Assistant U.S. Attorneys Kimberly A. Sanchez and Ross Pearson are prosecuting the case.
If convicted, of the conspiracy to distribute methamphetamine, the maximum statutory penalty is 10 years in prison and a $10 million fine. The statutory penalty for distribution of methamphetamine is a minimum of 10 years in prison to a maximum of life in prison and a $10 million fine. The maximum penalty for distribution of cocaine is 20 years in prison and a $1 million fine. The maximum penalty for conspiracy to engage in the business of dealing firearms without a license is five years in prison and a $250,000 fine. The maximum penalty for possession of an unregistered firearm is 10 years in prison and a $250,000 fine. The maximum penalty for being a felon in possession of a firearm or being an illegal alien in possession of a firearm is 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Sacramento Man Charged with Production and Distribution of Child PornographyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a superseding indictment today against Mark Corum, 60, of Sacramento, adding four counts of production of child pornography to the original indictment brought in December 2016, which charged him with one count of distribution of child pornography, United States Attorney Phillip A. Talbert announced.
According to court documents, Corum engaged in conversations with various Skype users in the Philippines in which he instructed the other parties to perform sexual acts on children while he watched on live webcam. Corum sent the persons located in the Philippines payments via money transmittal services in exchange for them performing the sexual acts he requested on the children and transmitting the images to him via webcam. In addition, on June 23, 2016, Corum transmitted images of prepubescent children engaged in sexually explicit conduct to another person via the internet.
This case was investigated by the Sacramento Internet Crimes Against Children (ICAC) Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant U.S. Attorney Katherine T. Lydon is prosecuting the case.
If convicted, Corum faces a maximum statutory penalty of 20 years in prison on the distribution of child pornography count and maximum statutory penalties of 30 years in prison on each of the four production of child pornography counts, as well as a maximum statutory fine of $250,000 on each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.