Eastern District of California
Press releases recorded for this federal judicial district.
Fairfield Man Charged with Attempted Sexual Exploitation of a MinorRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Donald Threatt, 67, of Fairfield, charging him with attempted online enticement of a minor, attempted sexual exploitation of a minor, and the commission of an offense involving a minor while required to register as a sex offender, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Threatt responded to a Craigslist advertisement and began conversing with an individual he believed to be 15 years old through the KIK messenger service. Threatt discussed sexual activity with the individual and arranged to meet the individual at her home after her mother had left for the weekend. Threatt also suggested to the individual that they take photos and a video of the planned sexual activity. Unbeknownst to Threatt, the individual with whom he conversed was actually a law enforcement agent. Threatt was arrested when he drove to the house where the meeting with the minor was to occur.
This case is the product of an investigation by the Air Force Office of Special Investigations and the Federal Bureau of Investigation. Assistant U.S. Attorneys Jeremy J. Kelley and Jill M. Thomas are prosecuting the case.
If convicted, Threatt faces a mandatory minimum of 25 years in prison and a maximum statutory penalty of life in prison as well as a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Former Deputy Police Chief Found Guilty of Conspiring to Distribute Heroin and MarijuanaRead the Press Release
FRESNO, Calif. — A federal jury in Fresno today found former Fresno deputy police chief Keith Foster, 53, guilty of conspiracy to distribute and possess with intent to distribute heroin and conspiracy to distribute and possess with intent to distribute marijuana, U.S. Attorney Phillip A. Talbert announced.
U.S. Attorney Talbert stated: “When a police officer misuses his official position to commit crimes for personal profit, it is the ultimate betrayal of public trust. The betrayal is only compounded when the officer involved is in a leadership position in the police department. By conspiring with others to traffic heroin and marijuana, Keith Foster not only disgraced the office he held, he put the community he was sworn to protect in danger. Although the jury was not able to reach verdicts on the additional counts relating to Foster’s alleged involvement in trafficking oxycodone, we are grateful for their hard work and the guilty verdicts they returned. My office is committed to rooting out corruption and prosecuting those who use their official position to commit crimes that endanger the community. We are proud to have worked alongside the ATF and FBI, with the full cooperation of the Fresno Police Department, in bringing Foster to justice.”
“The actions of Keith Foster and his co-defendants in this case jeopardized public safety and violated the trust of the citizens of Fresno he swore to protect,” said Special Agent in Charge Jill A. Snyder, San Francisco Field Division, Bureau of Alcohol, Tobacco, Firearms and Explosives. “During this investigation, ATF and FBI agents followed evidence of a drug trafficking conspiracy. That evidence led directly to the former deputy police chief of Fresno. Foster’s criminal activity will not deter ATF’s ongoing partnership with the Fresno Police Department to fight violent crime in the City of Fresno.”
“The FBI will continue to work closely with our law enforcement partners, investigating any allegation of criminal activity within the law enforcement community. The community must be served by those who obey the laws they are sworn to uphold and fulfill the oath of office,” said Special Agent in Charge Monica M. Miller of the FBI’s Sacramento field office. “Public trust is essential to the success of the work that men and women in law enforcement do daily. Foster’s illegal acts have negatively impacted public perception of the men and women of the Fresno Police Department who proudly put their lives on the line every day to serve the Fresno community.”
According to evidence presented at trial, between July 19, 2014, and March 26, 2015, Keith Foster conspired with his nephew Iran Dennis “Denny” Foster, 46, of Fresno, to obtain marijuana from Ricky Reynolds, 50, of Shasta Lake. Denny Foster regularly traveled to Reynolds’ residence to purchase marijuana. On one of these trips, Denny Foster was stopped by the California Highway Patrol in Merced County and arrested for possessing six pounds of marijuana in the trunk of his car. When he was arrested, his passenger called Keith Foster and Foster said that he “could have provided cover” for Denny Foster if he had known about the trip ahead of time. He also said he would call his “narc guys.”
Also according to evidence presented at trial, between December 23, 2014, and February 2, 2015, Foster conspired with co-defendant Rafael Guzman, 43, of Fresno, to obtain heroin for another person.
Keith Foster resigned from his position on April 3, 2015, one week after his arrest.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation. Assistant United States Attorneys Melanie L. Alsworth and Dawrence W. Rice Jr. are prosecuting the case.
Six others pleaded guilty before trial to various offenses related to the drug trafficking conspiracy. Randy Flowers and Denny Foster are scheduled to be sentenced on July 10, 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.
Keith Foster is scheduled to be sentenced on October 10, 2017, by U.S. District Judge Anthony W. Ishii. Foster faces a statutory maximum penalty of 20 years in prison and a $1 million fine for the count relating to heroin, and a maximum of five years in prison and a $250,000 fine for the marijuana trafficking offense. 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.
One Pleads Guilty and Two Are Sentenced for Marijuana-Growing Operations in the Sequoia National ForestRead the Press Release
FRESNO, Calif. — One defendant pleaded guilty and two others were sentenced today for their involvement in large-scale marijuana cultivation operations in the Sequoia National Forest, U.S. Attorney Phillip A. Talbert announced.
Guilty Plea to Cultivation Conspiracy in National Forest
(1:16-cr-106 LJO)Abel Toledo-Villa, 35, of Mexico, pleaded guilty to conspiring to manufacture, distribute and possess with intent to distribute 3,850 plants found in the Sequoia National Forest in Kern County. In pleading guilty, Toledo acknowledged that he had left the area after law enforcement agents entered the grow site. He was later found in a vehicle that contained about 8.5 pounds of processed marijuana, fertilizer, a rifle, and 106 rounds of ammunition. He agreed to pay $5,233 in restitution to the U.S. Forest Service for the damage he caused to public land and natural resources.
Toledo-Villa is scheduled for sentencing on August 14, 2017, before Chief U.S. District Judge Lawrence J. O’Neill. Toledo-Villa faces a mandatory minimum penalty of five years in prison and a maximum of 40 years in prison for the drug conspiracy, and up to a $5 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the U.S. Forest Service, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) , the Southern Tri‑County High Intensity Drug Trafficking Area (HIDTA) task force, the California Department of Justice’s Campaign Against Marijuana Planting (CAMP), the California Department of Fish and Wildlife, the Kern County Sheriff’s Office, the Riverside County Sheriff’s Department, the Fontana Police Department, and the Victorville Police Department.
Sentencing in Giant Sequoia National Monument Cultivation Operation
(1:16-cr-156 DAD)Following their guilty pleas earlier this year, Audencio Pineda-Gaona, 37, and Candelario Jimenez-Ramirez, aka Candelario Rodriguez-Jimenez, 55, both of Mexico, were each sentenced to two and a half years in prison for conspiring to cultivate, distribute and possess with intent to distribute marijuana grown on forest land in the Giant Sequoia National Monument in Tulare County. They were each also ordered to pay $5,252 in restitution to the U.S. Forest Service to cover the cost of cleaning up the grow site.
According to court documents, the defendants and several other men were found trimming marijuana buds in the grow site in the Giant Sequoia National Monument in Tulare County. As the agents approached, the men fled. The defendants were apprehended, and agents found 5,707 marijuana plants and 200 pounds of processed marijuana. They also found a large box of 9 mm ammunition, a holster and a shoulder rig for a 9 mm handgun.
The marijuana cultivation operation caused extensive damage to the land and natural resources. Native trees and shrubs had been cut down to make room for the marijuana plants. Water had been diverted from a tributary stream of the Kern River, which supports Kern River rainbow trout, a “Species of Special Concern” in the state of California.. Agents also found harmful banned pesticides and large amounts of trash.
This case was the product of an investigation by the U.S. Forest Service, the California Department of Justice’s Campaign Against Marijuana Planting (CAMP), the California Department of Fish and Wildlife, and the Tulare County Sheriff’s Office.
Assistant United States Attorney Karen Escobar is prosecuting both cases.
Bakersfield Man Admits to Splitting up over $4.2M in Cash Deposits to Avoid Reporting RequirementsRead the Press Release
FRESNO, Calif. — Ramsey Jeries Farraj, 42, of Bakersfield, pleaded guilty today to conspiring with his former business partner, Majed Bashir “Mike” Akroush, 49, to structure $4,204,965 obtained from the sale of smokable synthetic drugs, U.S. Attorney Phillip A. Talbert announced.
Smokable synthetic cannabinoids are commonly known as K-2 or spice. They are sometimes marketed as incense or potpourri but contain powerful hallucinogenic chemicals. Consumption of smokable synthetic cannabinoids can lead to illness or even death.
In pleading guilty, Farraj acknowledged that he and co-defendant Akroush sold synthetic cannabinoids through their online businesses Blue Whale and World of Incense. They deposited over $4.2 million in proceeds in amounts under $10,000 into various bank accounts they maintained in order to avoid filing a currency transaction report, or CTR, that is required for amounts over $10,000. In pleading guilty, Farraj agreed to forfeit over $5 million seized from various bank accounts, seven properties, a 1962 Chevrolet Impala, one Rolex watch, and the domain name and websites used to conduct the illicit drug sales.
The case is part of a nationwide synthetic drug takedown in connection with Project Synergy Phase III that targeted the synthetic designer drug industry, including wholesalers, money launderers, and other criminal facilitators. In connection with this case, federal law enforcement officers arrested and charged Farraj, along with Akroush, Haitham Eid Habash, aka Eddie Habash, 54, of Hawthorne, and Zaid Elodat, 30, of Lawndale, and executed 12 search warrants in Bakersfield and the Los Angeles area.
Farraj is scheduled for sentencing on August 14, 2017, before U.S. District Judge Dale A. Drozd. Farraj faces a maximum statutory penalty of five years in prison and a fine of up to twice the gross gain obtained by him. 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.
Elodat previously pleaded guilty and is scheduled for sentencing later this year. The charges against Akroush and Habash are pending. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the U.S. Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation, and the California Highway Patrol, with assistance from the Federal Bureau of Investigation, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); the U.S. Postal Inspection Service, the California Department of Motor Vehicles, the Kern County Probation Department, the Kern County Sheriff’s Office, the Bakersfield Police Department, and the Los Angeles County Sheriff’s Office. Assistant United States Attorneys Karen A. Escobar, Grant B. Rabenn, and Jeffrey A. Spivak are prosecuting the case.
This case was also designated an Organized Crime Drug Enforcement Task Force (OCDETF) case. The OCDETF program was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
U.S. Attorney’s Office Presents over $1.8M Forfeited from Synthetic Drug Case to Fresno County Sheriff’s OfficeRead the Press Release
FRESNO, Calif. — The U.S. Attorney’s Office has distributed to the Fresno County Sheriff’s Office $1,813,575 of forfeited drug proceeds seized in connection with the investigation of a synthetic drug trafficking organization, U.S. Attorney Phillip A. Talbert announced.
On May 15, 2014, Victor Anthony Nottoli, 51, of Hillsborough, pleaded guilty to conspiring to defraud the United States by interfering with the lawful governmental regulatory and enforcement functions of the FDA and DEA. He also pleaded guilty to causing at least 24 tons of misbranded smokable synthetic cannabinoids (SSC) to be introduced into interstate commerce. In pleading guilty, Nottoli specifically agreed to forfeit more than $6.5 million of drug proceeds: $6,488,000 in cash and $191,000 in other assets, including a 2013 Ford F350 pickup truck and a 2014 Airstream travel trailer. He is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on March 26, 2018.
“The Asset Forfeiture Program literally takes the profits out of crime and distributes them fairly, effectively, and with tremendous benefit to the American people,” stated U.S. Attorney Talbert. “On behalf of the U.S. Department of Justice, I am pleased to return a portion of the forfeited funds in this case to the Fresno County Sheriff’s Office for their outstanding cooperation and investigative work in this synthetic marijuana trafficking case.”
Fresno County Sheriff Margaret Mims stated: “This case is a great example of the results that can be achieved when local and Federal law enforcement agencies partner to impact organized crime. The proceeds will be used in accordance with equitable sharing guidelines to combat illegal drug activity in our region.”
“Buyer beware,” said Michael T. Batdorf, Special Agent in Charge, IRS-CI. “Victor Nottoli sold harmful smokable synthetic cannabinoids throughout the country and profited tremendously from the illegal sales of these synthetic drugs. Working with our law enforcement partners we were able to dismantle this sizable drug organization and share the forfeited assets with several local agencies. We are honored that the Fresno County Sheriff’s Office can put this money to good use for their department.”
Drug Enforcement Administration Special Agent in Charge John J. Martin stated: “Strong partnerships build stronger communities. This investigation exemplifies how the Department of Justice’s equitable sharing program successfully takes the profit out of crime and benefits public safety. The proceeds seized from this criminal organization and distributed to law enforcement will help insure Fresno County is a safer place to live.”
“Local law enforcement partnerships are critical to achieving the overall public safety mission,” said Ryan L. Spradlin, special agent in charge of HSI San Francisco. “Today’s presentation is clear evidence of how our partnerships are impacting public safety around the country. Together, we will continue our unwavering commitment to keep Americans safe.”
According to court documents, between April 1, 2011, and June 26, 2013, Nottoli and his co-conspirators generated at least $33 million by manufacturing and distributing the SSC products, commonly known as K2 or spice, to distributors and retail outlets throughout the U.S. and from his six smoke shops in Fresno, Visalia and Bakersfield. The misbranded drugs were intended for human consumption and were fraudulently packaged as herbal incense or potpourri. They were sold without the labeling necessary to protect the user and required by law including: the place of business of the manufacturer, packer, or distributor; an accurate statement of the contents; adequate directions for use; warnings against use by children or where its use may be dangerous to health; warning against unsafe dosage; or methods or duration of administration or application.
These funds were made available through the U.S. Department of Treasury - Executive Office for Asset Forfeiture and the U.S. Department of Justice’s equitable sharing program.
The Treasury Executive Office for Asset Forfeiture (TEOAF) administers the Treasury Forfeiture Fund (TFF). The mission of the TFF is to affirmatively influence the consistent and strategic use of asset forfeiture by participating agencies to disrupt and dismantle criminal enterprises. TEOAF, through the provision of leadership, guidance, and stewardship, works to maximize the impact of forfeitures performed by the participating federal agencies.
The U.S. Department of Justice’s equitable sharing program is designed to enhance cooperation among federal, state, and local law enforcement agencies through the sharing of proceeds resulting from federal forfeitures. State and local law enforcement agencies generally receive equitable sharing revenues by participating directly with DOJ agencies in joint investigations leading to the seizure or forfeiture of property. The amount shared with state and local law enforcement agencies is based on the degree of the agencies’ participation in the case.
This case is the product of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by the DEA, IRS-CI, and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), with assistance from the Office of Criminal Investigations of the Food and Drug Administration (FDA) and the Fresno County Sheriff’s Office, which initiated the case. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case and Assistant U.S. Attorney Jeffrey A. Spivak is handling the forfeiture of assets.
Stockton Woman Sentenced to 5 Years in Prison for Aiding and Abetting Receipt of Child PornographyRead the Press Release
SACRAMENTO, Calif. — Jolene Davis, 41, of Stockton, was sentenced today to five years in prison for her role in the sexual exploitation of a child of whom she had custody, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on August 13, 2011, Davis met with co-defendant Jason S. Wymer, 45, of Citrus Heights, and permitted him to sexually exploit a child for whom she was caring. Wymer photographed that act.
Wymer pleaded guilty to this conduct and also admitted to a separate instance of sexual exploitation of a four-year-old child with co‑defendant Stormy M. Avers, 37, of Placerville. On July 29, 2016, Wymer was sentenced to 30 years in prison for sexual exploitation of minors. On June 24, 2016, Avers was sentenced to 20 years in prison.
This case was the product of an investigation by the Federal Bureau of Investigation and the Sacramento Internet Crimes against Children (ICAC) Task Force. ICAC is 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 United States Attorney Matthew G. Morris prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Sacramento Man Sentenced to 10 Years in Prison for Sex Trafficking a MinorRead the Press Release
SACRAMENTO, Calif. — Zargham Bukhari, 22, of Sacramento, was sentenced today by United States District Judge Garland E. Burrell Jr. to 10 years in prison for sex trafficking a minor, United States Attorney Phillip A. Talbert announced.
According to court documents, between February and April of 2014, Bukhari transported a 14-year-old victim to various motels and other locations in and around Sacramento to have sex with men for money. Bukhari would then take the money from the victim. Bukhari also gave the victim methamphetamine while he trafficked her.
This case was the product of an investigation by the Federal Bureau of Investigation Child Exploitation Task Force, a multijurisdictional task force composed of representatives from the FBI and the Sacramento Police Department. Assistant U.S. Attorney Michele Beckwith is prosecuted 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.
“Dino the Casino” of Los Angeles Pleads Guilty to Operating Statewide Illegal Gambling Business and Distributing CocaineRead the Press Release
SACRAMENTO, Calif. — Nive Hagay, 31, of Los Angeles, pleaded guilty today to conducting an illegal gambling business and distributing cocaine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, starting in 2008 until November 2016, Hagay, who also went by the name “Dino the Casino,” installed and maintained video slot machines in smoke shops, convenience stores and other small businesses from Bakersfield to Sacramento. Hagay then laundered the proceeds from the illegal gambling business through clothing companies in Los Angeles, as well as by making large purchases with the cash proceeds, such as a $202,000 cash transaction for a 2014 Audi R8.
Finally, on October 15, 2016, at a smoke shop in Sacramento, Hagay sold approximately one ounce of a mixture that tested positively for cocaine. The sale was recorded, and in the video, Hagay is seen pulling the bag of the substance from his pocket and taking the resulting money. In the recording, he discusses the quality of the cocaine, describes where he got it and offers to get more and of higher quality in the future.
As a part of his plea agreement, Hagay has agreed to forfeit assets acquired from proceeds of the illegal gambling business, including a 2010 Aston Martin Rapide, a 2016 Mercedes Benz AMG GT, several Ducati motorcycles, hundreds of thousands of dollars in cash seized from his home, the illegal slot machines, and various bank accounts.
This case is the product of an investigation by the Federal Bureau of Investigation and the California Department of Justice – Bureau of Gambling Control. Assistant United States Attorney Matthew M. Yelovich is prosecuting the case.
Hagay is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on August 24, 2017. Hagay faces a maximum statutory penalty of five years in prison and a $250,000 fine for the illegal gambling offense and 20 years in prison and a $1 million fine for the cocaine distribution charge. 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.
Stockton Woman Sentenced to over 3 Years in Prison in Credit Card Fraud and Identity Theft SchemeRead the Press Release
SACRAMENTO, Calif. — Sequoia Valverde, 33, of Stockton, was sentenced today by U.S. District Judge Troy L. Nunley to three years and one month in prison for conspiracy to commit credit card fraud in connection with a scheme aimed at Target REDcard account holders across the United States, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between March 2014 and September 2014, Valverde and eight co-conspirators operated a scheme to make and use unauthorized access devices, primarily Target department store’s REDcard. Valverde and others stole victims’ personal identification information through various methods and used that information to create REDcard accounts and manufacture credit cards with magnetic strips. They used the credit cards to buy large amounts of electronics, prepaid gift cards, and other goods at Target locations throughout the Sacramento area, Northern California, and elsewhere. During the conspiracy, Valverde personally conducted at least 69 fraudulent transactions using the account information of at least 32 victims.
In all, more than 300 counterfeit and unauthorized access devices were created and over 1,000 victims have been identified to date as having had their identities compromised as a result of the conspiracy. The conspiracy resulted in more than $248,000 in losses. Six of Valverde’s eight co-defendants have pleaded guilty and await sentencing.
This case is the product of an investigation by the United States Postal Inspection Service and the Stockton Police Department. Assistant United States Attorneys André M. Espinosa and Rosanne L. Rust are prosecuting the case.
Sacramento Man Sentenced to Nearly 3 Years in Prison for Failing to Register as a Sex OffenderRead the Press Release
SACRAMENTO, Calif. — Timothy Donald Fialdini, 52, of Sacramento, was sentenced today by U.S. District Judge Morrison C. England Jr. to two years and 11 months in prison, followed by three years of supervised release, for failure to register as a sex offender, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in August 2015, Fialdini moved to Sacramento from the state of Nevada and intentionally did not register as a sex offender under the Sex Offender Registration and Notification Act (SORNA) as was required based on his multiple convictions in Nevada for open and gross lewdness. Among the convictions, in 2009, Fialdini was convicted of committing sexual battery upon a female victim and an intentional sex act in public.
On November 30, 2015, Fialdini indecently exposed himself to an adult female in Sacramento. On March 8, 2016, Fialdini was arrested in a Sacramento County park by deputy U.S. Marshals with the assistance of state and local law enforcement.
This case was the product of an investigation by the U.S. Marshals Service and the Sacramento County Sheriff’s Sex Assault Felony Enforcement (SAFE) Team. The SAFE Team is a multi-agency task force operating in Northern California that monitors sex offenders and conducts investigations regarding sex offender registration violations. Assistant U.S. Attorney Michelle Rodriguez prosecuted the case.
Former EDD Employee Arrested for Unemployment Benefits Fraud and Identity Theft SchemeRead the Press Release
SACRAMENTO, Calif. — An 18-count indictment was unsealed today after two of five defendants were arrested today for unemployment benefits fraud and an identity theft scheme, U.S. Attorney Phillip A. Talbert announced.
The indictment charges Pamela Emanuel, 57, of San Jose; Gregory Lee, 55, of Antioch; Russell White III, 35, of Turlock; Brittany Maunakea, 27, of Turlock; and Sergio Reyna, 24, of Stockton with conspiracy to commit mail fraud and 16 counts of mail fraud. Emanuel and Lee are also charged with separate counts of aggravated identity theft. Emanuel and Reyna were arrested today and are scheduled to be arraigned at 2:00 p.m. today.
According to court documents, between April 13, 2013, and July 14, 2016, the defendants conspired to execute a scheme to defraud the state of California. Emanuel worked as a tax compliance representative for the California Employment Development Department. She used her position to access the personal identifying information of workers throughout California and gave that information to other members of the conspiracy who filed fraudulent unemployment claims in the names of the unknowing victims. When Emanuel contacted EDD to pose as a laid-off employee, she used a Virtual Private Network designed to mask her IP address in an attempt to hide her identity. When the defendants filed claims with EDD, they usually provided the name of a fake business as the claimant’s last employer. As a result, the victim’s true employer was not immediately notified that a claim was filed.
The scheme resulted in the conspirators receiving over $800,000 in fraudulent unemployment benefits and over 250 stolen identities.
This case is the product of an investigation by the United States Department of Labor, Office of Inspector General, the Federal Bureau of Investigation and the California Employment Development Department – Investigations Division. Assistant U.S. Attorney Jared C. Dolan is prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count. Emanuel and Lee also face statutory mandatory minimum penalty of two years in prison for aggravated identity theft, which would run consecutive to any other sentence imposed. 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.
Former Kern County Sheriff’s Deputies Plead Guilty to Marijuana TraffickingRead the Press Release
FRESNO, Calif. — Logan August, 30, of Bakersfield, and Derrick Penney, 34, of Star, Idaho, former deputies with the Kern County Sheriff’s Office, pleaded guilty today to conspiracy to distribute and possess with the intent to distribute marijuana, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between June 2014 and October 2014, while sworn peace officers working with the Kern County Sheriff’s Office (KCSO), August and Penney abused their positions of trust and authority by conspiring with former Bakersfield Police Department detective Patrick Mara and an individual who previously worked as a confidential informant for August, and others, to steal marijuana from a KCSO storage unit and sell it for unlawful personal gain. The marijuana had previously been seized during investigations into marijuana grown on public and private lands. Once August and Penney obtained the marijuana from the storage unit, they had it processed (trimmed) into approximately eight pounds of usable marijuana. August then delivered it to his former confidential informant, who sold it and provided August with part of the proceeds from those sales. August then shared the proceeds with Penney and Mara. August and Penney received approximately $1,200 each from the sale of this marijuana.
Additionally, according to August’s plea agreement and other court documents, between March 2014 and December 2014, while a sworn peace officer assigned to the KCSO Major Vendor Narcotics Unit, August routinely participated in law enforcement marijuana eradication operations on public and private lands. During this time, August abused his position of trust and authority as a KCSO deputy by conspiring with a former confidential informant to take marijuana plants and processed marijuana from these law enforcement marijuana eradication operations and sell that marijuana for unlawful personal gain. On 10 separate occasions between March 2014 and December 2014, August wrongfully took marijuana from a law enforcement eradication operation for personal gain. August distributed to his former confidential informant the equivalent of 25 pounds of usable marijuana wrongfully taken from these law enforcement eradication operations. August received $15,000 from the sale of this marijuana.
August and Penney have agreed to forfeit the proceeds of the marijuana trafficking.
This case is the product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Bakersfield Police Department. The Kern County Sheriff’s Office fully cooperated in this investigation. Assistant U.S. Attorneys Angela Scott and Brian Delaney are prosecuting the case.
August and Penney are scheduled to be sentenced by Judge Lawrence J. O'Neill on August 7, 2017. They face a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Modesto-Area Dermatologist Indicted for Health Care FraudRead the Press Release
FRESNO, Calif. — A federal grand jury returned an eight-count indictment today against Basil Hantash, 44, of Hughson, charging him with health care fraud, United States Attorney Phillip A. Talbert announced.
According to court documents, Hantash is a dermatologist and the medical director of Advanced Skin Institute (ASI) in Turlock. From 2011 through April 2016, Hantash submitted claims to private insurance companies requesting payment for performing acne surgeries. In fact, it is alleged that staff at ASI had performed only cosmetic procedures known as microdermabrasions, or chemical peels. Two insurers, Anthem Blue Cross and Blue Shield of California, paid ASI a total of approximately $220,000 during that time for claimed acne surgeries.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Michael G. Tierney is prosecuting the case.
If convicted, Hantash faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for each count of health care fraud. 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.
Caught with 10,000 Marijuana Seeds, Man Indicted for Conspiring to Plant Marijuana in Giant Sequoia National MonumentRead the Press Release
FRESNO, Calif. — A federal grand jury returned a single-count indictment today against Rosario Beltran-Leal (Beltran), 43, a Mexican citizen residing in Delano, charging him with conspiring to manufacture, distribute and possess with intent to distribute and manufacturing marijuana in the federally designated Giant Sequoia National Monument in Tulare County in the Sequoia National Forest, United States Attorney Phillip A. Talbert announced.
According to court documents, Beltran was found delivering 10,000 marijuana seeds at a drop point in a marijuana cultivation site in a remote area closed to the public in the Giant Sequoia National Monument. He was also in possession of a large quantity of food and marijuana cultivation supplies.
This case is the product of an investigation by the U.S. Forest Service, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the California Department of Fish and Wildlife, and the Tulare County Sheriff’s Office. Assistant United States Attorney Karen Escobar is prosecuting the case.
Beltran is scheduled for arraignment on the indictment on May 17, 2017, in federal court in Fresno. If convicted, Beltran 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.
Elk Grove Man Found Guilty in $1M Adult-Adoption Immigration Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Helaman Hansen, 64, of Elk Grove, was found guilty today by a federal jury for operating an elaborate adult-adoption fraud scheme that targeted undocumented aliens, U.S. Attorney Phillip A. Talbert announced.
After an 11-day trial, the jury found Hansen guilty of 12 counts of mail fraud, three counts of wire fraud, and two counts of encouraging and inducing illegal immigration for private financial gain.
According to evidence presented at trial, between October 2012 and January 2016, Hansen and others used various entities such as Americans Helping America (AHA) to sell memberships in what he called a “Migration Program.” A central feature of the program was the fraudulent claim that immigrant adults could achieve U.S. citizenship by being legally adopted by an American citizen and completing a list of additional tasks. At first, memberships were sold for an annual fee of $150, but that fee gradually grew and eventually was as high as $10,000.
According to evidence presented at trial, although some victims completed the adoption stage of the “Migration Program,” not one person obtained citizenship. As early as October 2012, Hansen had been informed by the U.S. Citizenship and Immigration Services that aliens adopted after their 16th birthdays could not obtain citizenship in the manner Hansen was promoting. Despite that notification, Hansen and others acting at his direction induced approximately 500 victims to pay more than $1 million to join the fraudulent program.
This case is the product of an investigation by the Federal Bureau of Investigation and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorneys André M. Espinosa and Katherine T. Lydon are prosecuting the case.
Hansen is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on August 3, 2017. Hansen faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count of mail fraud and wire fraud. He faces up to 10 years in prison and a $250,000 fine for each count of encouraging and inducing illegal immigration for private financial gain. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Military Policeman from Lemoore Naval Air Station Sentenced to 15 Years in Prison for Child PornographyRead the Press Release
FRESNO, Calif. —Michael Brandon Kiper, 32, of Lemoore, was sentenced today by U.S. District Judge Anthony W. Ishii to 15 years in prison for two counts of receiving child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Kiper, who had been assigned duties as a military policeman at the Lemoore Naval Air Station in California, and while on temporary assignments in Nevada and in Bahrain, used accounts on Kik Messenger, Instagram, and Facebook to solicit sexually explicit images of numerous minor females throughout the United States and Canada. Kiper used an alias and claimed to be an agent for a modeling agency. Once he convinced minor females to send him at least one sexually explicit image of themselves, he threatened to post those images to social media sites unless the victims produced and transmitted additional sexually explicit images. One minor female told her mother about her communications with Kiper, and they contacted law enforcement.
This case was the result of an investigation by a multitude of law enforcement agencies, spearheaded by the Naval Criminal Investigative Service, the Upper Perk (Pennsylvania) Police Department, and the Paoli (Indiana) Police Department. Forensic analysis of evidence was conducted by the Kings County District Attorney’s Office, which is part of the Central California Internet Crimes Against Children Task Force. Assistant U.S. Attorney Brian Enos prosecuted this 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.
Stockton Men Indicted for Trafficking Heroin Near a School ZoneRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Stockton residents James Moore Jr., 42, and Calvin Daniels, 50, charging both men with distributing heroin near a school zone and conspiring to distribute heroin, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Moore and Daniels conspired, together and with others, to distribute heroin in San Joaquin County in 2017. Court documents further allege that Moore and Daniels distributed heroin near public elementary schools in Stockton on at least two occasions. Specifically, Moore is alleged to have distributed heroin within 1,000 feet of the John Marshall Elementary School on Lever Boulevard in Stockton in April 2017, while Daniels is alleged to have distributed heroin within 1,000 feet of the Rio Calaveras Elementary School on East Bianchi Road in Stockton in February 2017.
This case is the product of an investigation by the FBI’s Stockton Safe Streets Task Force, the Reno Safe Streets Task Force, and the Stockton Police Department with special assistance from the San Joaquin County District Attorney’s Office. Assistant United States Attorney Jason Hitt is prosecuting the case.
If convicted of distributing heroin near a school zone, Moore faces a maximum statutory penalty of life in prison and a $16 million fine, while Daniels faces a maximum statutory penalty of 80 years in prison and a $10 million fine. If convicted of conspiracy to distribute heroin, both men face a maximum statutory penalty of 40 years in prison and a $5 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.
Sequoia National Forest Marijuana Cultivator IndictedRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Alan Fernando Gomez-Paniagua, 25, a citizen of Mexico residing in Delano, charging him with conspiring to cultivate, distribute, and possess with intent to distribute marijuana, cultivating marijuana, damaging public land and natural resources, and being an alien in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Gomez-Paniagua was connected to a marijuana cultivation site in the McFarland Creek area in the Sequoia National Forest. At the grow site, officers found over 15,000 marijuana plants, over 1,000 marijuana seedlings, and a loaded short‑barreled shotgun with a pistol grip.
The marijuana cultivation activities caused extensive damage to the environment. Numerous oak trees had been cut down and the hillside was terraced to make room for the marijuana plants. Pesticide containers and trash were strewn throughout the site.
This case is the product of an investigation by the U.S. Forest Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Southern Tri-County Central Valley California High Intensity Drug Trafficking Area (HIDTA) Task Force, the California Department of Fish and Wildlife, the Kern County Sheriff’s Office, and the California Multijurisdictional Methamphetamine Enforcement Team (CalMMET), a task force administered by the Kern County Sheriff’s Office. Assistant United States Attorney Karen A. Escobar is prosecuting the case.
Gomez-Paniagua is scheduled to be arraigned in federal court in Fresno on May 8, 2017. If convicted of the most serious offenses, the drug charges, Gomez-Paniagua faces a mandatory minimum prison term of 10 years and a maximum term of life, 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 defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Davis Man Found Guilty of Distribution and Possession of Child PornographyRead the Press Release
SACRAMENTO, Calif. C A federal jury found Alexander Nathan Norris, 28, of Davis, guilty of distribution and possession of material involving the sexual exploitation of minors, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between December 27, 2010, and April 12, 2011, law enforcement agents noticed an individual sharing child pornography over the internet using a peer-to-peer filing sharing software. One of the IP addresses the individual was using was registered to an apartment in Davis where three female UC Davis students lived. All three denied accessing or distributing child pornography. With the residents’ permission, the agents used a computer program and a directional antenna to find the individual involved in the file sharing. This led to Norris, who lived nearby in the same apartment complex and had gained unauthorized access to the students’ password‑protected network.
At the time of his arrest on April 12, 2011, Norris had child pornography on his computer, including files that he had distributed to law enforcement approximately four days earlier.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Matthew G. Morris and Shelley D. Weger are prosecuting the case.
Norris is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on August 2, 2017. Norris faces a mandatory minimum of five years in prison and a statutory maximum of 20 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.
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.
Modesto Man Pleads Guilty to Assaulting Fresno Social Security GuardRead the Press Release
FRESNO, Calif. — Matthew Faron Blair, 33, of Modesto, pleaded guilty today to forcibly assaulting a federal 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.
This case is the product of an investigation by the Federal Protective Services with assistance from the Social Security Administration, Office of the Inspector General; the California Department of Corrections and Rehabilitation, Division of Adult Parole Operations; and the Stockton Police Department. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
Blair is scheduled for sentencing before Chief U.S. District Judge Lawrence J. O’Neill on June 5, 2017. Blair faces a maximum sentence of 20 years in prison, a $250,000 fine, and restitution. 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.
Two Elk Grove Residents Plead Guilty to Trafficking in Counterfeit DVDsRead the Press Release
SACRAMENTO, Calif. —Xavier L. Johnson, 36, formerly of Elk Grove, and Kristin M. Caldwell, 35, of Elk Grove, pleaded guilty today to trafficking in counterfeit goods, United States Attorney Phillip A. Talbert announced.
According to court documents, between April 2008 and August 2011, the defendants imported counterfeit DVDs containing children’s movies from manufacturers in China and sold them over the internet. During that time period, they ordered at least 43,589 counterfeit DVDs from a supplier in China. According to court documents, when advertising the movies on their websites and in marketing emails, the defendants made false representations to consumers, including that the DVDs were in “limited supply” or “currently out of print” when in fact the defendants had a virtually limitless supply of counterfeit DVDs. The activity charged in the indictment occurred after the defendants had received multiple letters from government agencies telling them that shipments of DVDs were being seized at the border because they were counterfeit.
This case is the product of an investigation by the United States Postal Inspection Service and the Federal Bureau of Investigation. Assistant United States Attorney Matthew G. Morris is prosecuting the case.
Johnson and Caldwell are scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on August 4, 2017. Both defendants face a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Sacramento Man Sentenced and Stockton Man Pleads Guilty in Separate Fraudulent Tax Refund CasesRead the Press Release
SACRAMENTO, Calif. — Today United States District Judge Troy L. Nunley sentenced a Sacramento man to two years in prison and a Stockton man pleaded guilty in two separate cases of conspiracy to submit false claims against the United States, U.S. Attorney Phillip A. Talbert announced.
“Identity theft schemes harm everyone, especially those which defraud the United States government and members of our community,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “Mr. Windon Jr., his co-conspirators and others like them, who create these elaborate schemes have no purpose other than to mislead others and defraud the IRS. IRS Criminal Investigation remains committed to combatting refund schemes such as this and will continue to devote resources to bring those responsible for such harm to justice.”
San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service, which worked with IRS CI in the Windom case, stated, “Postal Inspectors worked closely with the U.S. Attorney’s Office and our partners in law enforcement to arrest and prosecute those individuals responsible for fraud schemes committed against the public.”
United States v. Windom, et al., 2:15-cr-29
Lejohn Windon Jr., 24, of Sacramento, was sentenced to two years in prison. He is the fourth defendant to be sentenced in this case. According to court documents, Windon and his co‑conspirators Lejohn Windom Sr., Audrey Johnson, and Tracy Hartway submitted at least 682 tax returns to the IRS requesting a total of $1,989,803 in refunds. The IRS mailed at least $1,188,972 in refunds based on those fraudulent claims. In many cases, the defendants submitted the fraudulent tax returns without the knowledge or permission of the taxpayers whose names appeared on the returns. When the conspirators received the tax refund checks, they would forge the signatures of the taxpayers and cash the refund checks for themselves.
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On January 5, 2017, Lejohn Windom Sr. was sentenced by Judge Nunley to seven years and 10 months in prison and ordered to pay $1.1 million in restitution to the IRS;
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On February 9, 2017, Audrey Johnson was sentenced by Judge Nunley to 16 months in prison and ordered to pay $213,725 in restitution;
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On February 26, 2017, Tracy Hartway was sentenced to 28 months in prison and ordered to pay $142,069 in restitution.
This case was the product of a joint investigation by the IRS Criminal Investigation and the United States Postal Inspection Service.
United States v. Grady et al., 2:15-cr-204
Christopher M. Grady, 35, of Stockton, pleaded guilty to conspiracy to submit false claims against the United States and aggravated identity theft. According to court documents, Grady and others submitted tax returns to the IRS that falsely claimed that the persons named on the returns were entitled to tax refunds. Grady obtained the names, social security numbers, and other personal identifying information of various individuals and used that information, often without the knowledge of those people, to submit the tax returns in their names. Altogether, they submitted at least 1,367 false tax returns, requesting approximately $962,853 in tax refunds.
Charges are pending against Grady’s three co-defendants. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the IRS Criminal Investigation.
Assistant United States Attorney Matthew G. Morris is prosecuting both cases.
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Gold River Immigration Services Business Owner Sentenced to 2 Years in Prison for ID TheftRead the Press Release
SACRAMENTO, Calif. — Ilie Zdragat, 30, of Sacramento, was sentenced today by U.S. District Judge Troy L. Nunley to two years in prison for aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Zdragat was the founder and director of Immigration Visa Services Organization (IVSO) that helped clients with asylum and citizenship applications, deportation proceedings and other matters related to immigration. Between April 4, 2012, and September 28, 2012, Zdragat executed a fraud scheme by submitting fraudulent income tax returns through Turbo Tax to the IRS.
According to the plea agreement, on September 28, 2012, Zdragat and another individual electronically filed a false 2011 income tax return for an individual and two dependents using the names and personal information of three former IVSO clients. The victims did not give Zdragat permission to file a tax return on their behalf. The tax return sought a refund of $6,200. Zdragat used a physical address in San Francisco unconnected to him to disguise his involvement in the scheme. The IRS did not process the fraudulent tax return.
This case was the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Heiko P. Coppola prosecuted the case.
Tax Preparation Business Owner Sentenced to 10 Years in PrisonRead the Press Release
SACRAMENTO, Calif. – A Pollock Pines woman who owned a tax return preparation business was sentenced to serve 120 months in prison today for conspiring to file more than 250 false refund claims, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Phillip A. Talbert for the Eastern District of California.
According to documents filed with the court, Teresa Marty, 57, was the owner of Advanced Financial Services (AFS), a Placerville tax return preparation business. Marty conspired with her office manager, Pamela Harris and Rebecca Bandera-Marty to file fraudulent federal tax returns claiming more than $60 million in refunds. Marty and Harris recruited clients by falsely representing that the clients could legally receive large refunds by filing tax returns using IRS Forms 1099-OID. AFS prepared false Forms 1099-OID that reported the clients’ debts as income and the same amount as income tax withheld, resulting in significant claims for refund to which the clients were not entitled. The scheme included clients from 26 states and caused the IRS to pay out over 40 tax refunds, totaling more than $9 million. The IRS listed the use of false Forms 1099-OID on its website as one of the “dirty dozen” tax schemes for the years 2009 through 2014.
Marty, Harris and Bandera-Marty were indicted in June 2013 along with two clients, Charles and Victoria Tingler. Thereafter, Marty and the Tinglers, with the help of Harris, filed fraudulent multimillion dollar liens against government officials, including three IRS employees involved in the collection of taxes the Tinglers owed the IRS as a result of the scheme. Marty filed $84 million liens against the then Acting U.S. Attorney for the Eastern District of California and a former Department of Justice Tax Division attorney involved in filing suit to permanently enjoin Marty and AFS from preparing tax returns. The liens filed with the California Secretary of State unlawfully disclosed personal identification information of the government employees. Harris and Marty also hired a collection agency to enforce a $500,000 false lien that Charles Tingler filed against an IRS revenue officer.
“Today’s sentence sends a strong message: preparers like Teresa Marty who file fraudulent returns will be actively investigated and prosecuted, and face jail and significant penalties,” said Acting Deputy Assistant Attorney General Goldberg. “And efforts by such individuals to intimidate and harass the federal attorneys and agents working these cases will be thwarted and in fact result in the imposition of a higher sentence.”
“Teresa Marty recruited many individuals to participate in a scheme that she claimed to have ‘perfected’ from co-defendant Harris, who traveled to help her recruit clients, to her daughter-in-law, Bandera-Marty, who churned out fraudulent tax return forms. She used her qualifications as an IRS Enrolled Agent and California licensed tax preparer to market her scheme to clients,” U.S. Attorney Talbert stated. “When the IRS shut down her business, she retaliated by filing liens against those who were assigned to stop her fraud. At least 20 clients of Marty and Advanced Financial Services have been prosecuted throughout the country for fraudulent returns during this scheme. Today’s sentences reflect the gravity of the offenses and should deter others from violating the tax laws.”
In addition to the term of prison imposed, Marty was ordered to serve two years of supervised release and to pay $9,500,492 in restitution to the IRS.
Clients of AFS have been prosecuted in Arizona, Colorado, Florida, Georgia, Missouri, Oregon and Washington for filing false claims for refund that Marty and AFS prepared.
Clients of AFS have been prosecuted in Arizona, Colorado, Florida, Georgia, Missouri, Oregon and Washington for filing false claims for refund that Marty and AFS prepared.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Talbert commended special agents of IRS-Criminal Investigation and Treasury Inspector General for Tax Administration (TIGTA), who conducted the investigation, and Trial Attorneys Erin S. Mellen and Andrea A. Kafka of the Tax Division and Assistant U.S. Attorney Matthew D. Segal, who prosecuted the case.
Tax Preparation Business Owner Sentenced to 10 Years in PrisonRead the Press Release
A Pollock Pines, California woman who owned a tax return preparation business was sentenced to serve 120 months in prison today for conspiring to file more than 250 false refund claims, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Phillip A. Talbert for the Eastern District of California.
According to documents filed with the court, Teresa Marty, 57, was the owner of Advanced Financial Services (AFS), a Placerville, California tax return preparation business. Marty conspired with her office manager, Pamela Harris and Rebecca Bandera-Marty to file fraudulent federal tax returns claiming more than $60 million in refunds. Marty and Harris recruited clients by falsely representing that the clients could legally receive large refunds by filing tax returns using Internal Revenue Service (IRS) Forms 1099-OID. AFS prepared false Forms 1099-OID that reported the clients’ debts as income and the same amount as income tax withheld, resulting in significant claims for refund to which the clients were not entitled. The scheme included clients from 26 states and caused the IRS to pay out over 40 tax refunds, totaling more than $9 million. The IRS listed the use of false Forms 1099-OID on its website as one of the “dirty dozen” tax schemes for the years 2009 through 2014.
Marty, Harris and Bandera-Marty were indicted in June 2013 along with two clients, Charles and Victoria Tingler. Thereafter, Marty and the Tinglers, with the help of Harris, filed fraudulent multi-million dollar liens against government officials, including three IRS employees involved in the collection of taxes the Tinglers owed the IRS as a result of the scheme. Marty filed $84 million liens against the then Acting U.S. Attorney for the Eastern District of California and a former Department of Justice Tax Division attorney involved in filing suit to permanently enjoin Marty and AFS from preparing tax returns. The liens filed with the California Secretary of State unlawfully disclosed personal identification information of the government employees. Harris and Marty also hired a collection agency to enforce a $500,000 false lien that Charles Tingler filed against an IRS revenue officer.
“Today’s sentence sends a strong message: preparers like Teresa Marty who file fraudulent returns will be actively investigated and prosecuted, and face jail and significant penalties,” said Acting Deputy Assistant Attorney General Goldberg. “And efforts by such individuals to intimidate and harass the federal attorneys and agents working these cases will be thwarted and in fact result in the imposition of a higher sentence.”
In addition to the term of prison imposed, Marty was ordered to serve two years of supervised release and to pay restitution to the IRS in the amount of $9,500,492.83.
Clients of AFS have been prosecuted in Arizona, Colorado, Florida, Georgia, Missouri, Oregon and Washington for filing false claims for refund that Marty and AFS prepared.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Talbert commended special agents of IRS-Criminal Investigation and Treasury Inspector General for Tax Administration (TIGTA), who conducted the investigation, and Trial Attorneys Erin S. Mellen and Andrea A. Kafka of the Tax Division and Assistant U.S. Attorney Matthew D. Segal, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Methamphetamine Trafficker Sentenced to 20 Years in Prison for Trafficking Drugs to HawaiiRead the Press Release
SACRAMENTO, Calif. — Epati Malauulu, 42, of Suisun City, was sentenced today by U.S. District Judge Kimberly J. Mueller to 20 years in prison for conspiracy to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Malauulu operated a methamphetamine distribution business that purchased high quality crystal methamphetamine in Northern California and distributed it in Hawaii where it sold at a large profit. Between August 2014 and June 2015, Malauulu was responsible for mailing over 15 pounds of methamphetamine to Oahu.
The investigation began in Hawaii and eventually identified Malauulu as the out-of-state methamphetamine supplier. Co-defendants John Ortiz, 45, of Vallejo; Algernon Tamasoa, 28, of Sacramento; and Francisco Poloai, 45, of Dixon, were also charged in the conspiracy in the Eastern District of California. Ultimately, the investigation led to 44 defendants being charged in the District of Hawaii and four being charged in the Northern District of California (San Francisco).
This case is the product of an investigation by 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 prosecuted the Sacramento case.
Co-defendants Ortiz and Tamasoa have pleaded guilty to charges stemming from the methamphetamine trafficking activity. Poloai 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 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.
Manteca Man Sentenced to over 11 Years in Prison for Transportation of Child PornographyRead the Press Release
SACRAMENTO, Calif. —U.S. District Judge Kimberly J. Mueller sentenced Michael Tamblin, 52, of Manteca, to 11 years and three months in prison today for transporting child pornography.
According to court documents, in September and October of 2015, Tamblin surreptitiously filmed a minor child on numerous occasions using a hidden camera. Once Tamblin had those images, he transported them on a USB drive to his place of employment. On February 8, 2017, Tamblin pleaded guilty to transporting child pornography.
Tamblin was a technician at the Lawrence Livermore National Laboratory (LLNL), which is a secured federal laboratory owned by the United States Department of Energy. All internet searches on the LLNL network are recorded and periodically audited. A routine review of internet searches on Tamblin’s computer revealed potentially inappropriate activity. Further investigation led law enforcement officers to obtain search warrants for Tamblin’s residence and vehicles where they found evidence of Tamblin’s crimes. Tamblin has remained in custody since his arrest on February 19, 2016.
This case was the product of an investigation by the Federal Bureau of Investigation and the Department of Energy, Office of Inspector General. Assistant United States Attorneys Rosanne Rust and Roger Yang 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.
Walgreen Co. Pays $9.86M to Settle Allegations of Improper Medi Cal BillingsRead the Press Release
SACRAMENTO, Calif. — United States Attorney Phillip A. Talbert announced today that Walgreen Co. (Walgreens) has paid $9.86 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.
Walgreens is one of the largest drugstore chains in the United States, operating approximately 630 stores in California. The company is headquartered in Deerfield, Illinois. 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. Walgreens may bill for drugs prescribed outside of the approved diagnoses, but it must submit a request to DHCS that includes a justification for the non‑approved use. Today’s settlement resolves allegations that Walgreens 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 two lawsuits filed against Walgreens under the qui tam, or whistleblower, provisions of the False Claims Act by a former Walgreens pharmacist and a former pharmacy technician. The Act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery. The whistleblowers in this matter will collectively receive approximately $2.3 million of the recovery proceeds.
“This settlement illustrates our commitment to protect the integrity of California’s Medi‑Cal program,” said U.S. Attorney Talbert. “Regulations like those at issue here protect both critical funding and beneficiaries served. My office will continue working to ensure that pharmacies comply with these regulations.”
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 United States 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.
Jury Convicts Federal Inmate of Assaulting Fellow Inmate in Lassen County PrisonRead the Press Release
SACRAMENTO, Calif. — A federal jury today found an inmate at the Federal Correctional Institution at Herlong guilty of an assault on another inmate that resulted in serious bodily injury, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on May 25, 2015, Willie James McNeal, 60, attacked another inmate at FCI Herlong, causing multiple fractures of the bones in his face. The victim required two surgeries, and experienced extreme pain, as well as disfigurement and impairment of his nasal and breathing functions. Two surveillance videos documented the assault. The videos showed that McNeal, after speaking briefly with the victim, punched him near his right eye. McNeal continued to punch the victim multiple times in the forehead before tossing the inmate onto the concrete floor.
This case is the product of an investigation by the Federal Bureau of Investigation and the Bureau of Prisons.
U.S. District Judge Garland E. Burrell Jr. is scheduled to sentence McNeal on July 14, 2017. McNeal faces a maximum statutory penalty of up to an additional 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.
Vallejo Man Sentenced to 7 Years in Prison After Facebook Reported Distribution of Child PornographyRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Garland E Burrell Jr. sentenced Robert Patton McGee, 53, of Vallejo, today to seven years in prison for distributing child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Facebook reported to the National Center for Missing and Exploited Children (NCMEC) that someone had uploaded suspected images of child pornography to a Facebook profile. The investigation of these profiles led law enforcement to execute a search warrant at McGee’s residence in June 2014. When interviewed by law enforcement officers, McGee admitted to sending and receiving child pornography through Facebook and email. Analysis of Facebook and email addresses used by McGee showed that between November 10, 2011, and May 9, 2014, McGee distributed thousands of images and videos containing child pornography.
This case was investigated by the Sacramento Internet Crimes Against Children (ICAC) Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant U.S. Attorney Jeremy J. Kelley 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.
Second Defendant Pleads Guilty to Distributing Heroin and Cocaine on Dark Web Marketplace AlphabayRead the Press Release
FRESNO, Calif. — Abudullah Almashwali, 31, a Yemeni national formerly residing in Brooklyn, New York, pleaded guilty today to distribution of heroin and cocaine, and conspiracy, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Almashwali and co-defendant Chaudhry Ahmad Farooq, 24, a Pakistani national residing in Brooklyn, New York, using the vendor names “Area51” and “DarkApollo,” were large-scale heroin and cocaine distributors on the dark web marketplace AlphaBay. Dark web marketplaces are operated on computer networks designed to conceal the true Internet Protocol (IP) address of the computers accessing the network. Dark web marketplaces allow for payments to be made only in the form of digital currency, most commonly Bitcoin. While not inherently illegal, digital currency is used by dark web marketplaces because online transactions in digital currency can be completed without a third-party payment processor and are therefore perceived to be more anonymous and less vulnerable to law enforcement scrutiny.
According to the criminal complaint, Almashwali and Farooq accepted orders for heroin and cocaine on AlphaBay, and then mailed the narcotics from post offices in New York to customers throughout the United States. They received payment in Bitcoin. In May 2016, law enforcement made two undercover purchases of heroin from “Area51,” which were delivered to a post office box in the Eastern District of California. Postal records revealed that Almashwali purchased the postage for the two heroin parcels mailed to law enforcement, and that Farooq was involved in other mailings. Law enforcement agents were also able to determine that the encrypted email address used by “Area51” and “DarkApollo” was associated with actual Twitter, Instagram, and Facebook accounts used by Farooq.
On January 17, 2017, Farooq pleaded guilty to conspiring to traffic heroin. According to the plea agreement, Farooq admitted to selling 636.5 grams of heroin on the dark web marketplace Alpha Bay in exchange for $145,807 in Bitcoin.
This case is a product of an investigation by the Drug Enforcement Administration, with assistance provided by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the IRS Criminal Investigation, and the U.S. Postal Inspection Service. Assistant U.S. Attorneys Grant B. Rabenn and Ross Pearson are prosecuting the case.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
U.S. District Judge Dale A. Drozd is scheduled to sentence Almashwali on July 24, 2017, at 1:30 p.m. and Farooq on May 15, 2017. Almashwali and Farooq 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.
South Sacramento Man Indicted for Attempted Online Enticement of a Minor for Sexual PurposesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a single-count indictment today against Dilesh Sharma, of Sacramento, charging him with attempted online enticement of a minor for sexual purposes, U.S. Attorney Phillip A. Talbert announced.
This case is the product of an investigation by the Federal Bureau of Investigation and the FBI Child Exploitation Task Force. Assistant United States Attorneys Rosanne Rust and Jill M. Thomas are prosecuting the case.
If convicted, Sharma faces a mandatory minimum sentence of 10 years in prison and a maximum statutory penalty of life in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charge is only allegation; 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 Central Valley Defendants Indicted for Tax FraudRead the Press Release
SACRAMENTO, Calif. — In recent weeks, the U.S. Attorney’s Office, working with IRS Criminal Investigation and the Inspector General for Tax Administration, charged three cases of tax fraud, U.S. Attorney Phillip A. Talbert announced.
“Every person in this country is obligated to abide by our tax laws,” said U.S. Attorney Talbert. “It hurts everyone who follows those rules when people submit fraudulent returns and claim taxpayer money to which they aren’t entitled. This is doubly true when IRS employees use their knowledge of the system to cheat it and enrich themselves. It is vital that everyone meets their responsibilities to pay taxes and that they have confidence in the government agencies that enforce those rules. That is why my office is committed to prosecuting cases like those announced here today.”
“We want everyone who files a tax return to take advantage of the deductions and credits to which they are entitled by law,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “However, no one is entitled to defraud the United States and the American taxpayers. The charges filed against these defendants should send a clear message that those involved in these types of schemes will be held accountable. IRS Criminal Investigation is the only law enforcement agency charged with enforcing the American tax laws. We are proud to have such a committed partnership with the U.S. Attorney’s Office to uphold our mission.”
Cases involving IRS employees are investigated jointly by the Inspector General for Tax Administration (TIGTA) and IRS Criminal Investigation. Rod Ammari, Special Agent-in-Charge of TIGTA’s San Francisco Field Division stated: “It is very important that the American taxpayers have confidence in the IRS and its functions. When IRS employees use their insider knowledge to file fraudulent tax returns, we are committed to prosecuting these individuals to the fullest extent of the law. IRS employees committing tax fraud cannot be tolerated.”
1:17-cr-090 LJO — On April 6, 2017, Marcela Heredia, 43, of Fresno, was charged with seven counts of wire fraud, aggravated identity theft, and making a false tax return. According to the indictment, Heredia worked as a tax examiner for the IRS in Fresno. Between January 9, 2009, and February 4, 2014, Heredia also worked overnight shifts at the Transitional Living Center (TLC) in Fresno. The TLC was a residential home for young adults, many of whom were former foster children who had reached the age of majority. TLC offered life skills and career training for its residents. While working there, Heredia offered to help the residents prepare their tax returns, and residents turned over their personal information to her. Instead of completing the returns as agreed, Heredia would tell the individuals that they did not make enough money to file a tax return. She then filed tax returns on their behalf without their knowledge and directed the IRS to electronically transfer the refund to her personal account. Heredia did not notify the taxpayer of the refund and did not distribute any of the refund to them. In the tax returns she submitted, she claimed more than $20,000 in tax refunds. In addition to this scheme, Heredia also filed a false tax return for herself for the 2011 tax year. She claimed a dependent for that year that she said was her disabled niece, when in fact the person she listed was not her dependent, was not her niece, and was not disabled.
This case is the product of an investigation by the U.S. Department of the Treasury Inspector General for Tax Administration and IRS Criminal Investigation. Assistant U.S. Attorney Megan A.S. Richards is prosecuting this case.
1:17-cr-083 DAD — Pamela Pringle, 57, of Fresno, was indicted on April 6, 2017, charged with four counts of making an opportunity for a person to defraud the United States and three counts of filing a false tax return. According to the indictment, Pringle worked for the IRS as a lead contact representative responsible for responding to taxpayers’ inquiries and making adjustments to taxpayers’ accounts. Between January 2011 and April 2011, Pringle increased individuals’ tax refunds on four separate tax returns by claiming deductions for expenses that the taxpayer had not incurred. In addition, Pringle claimed unauthorized and excessive business expenses related to her photography activity, in spite of being informed by the IRS that her photography work was a hobby and not a business. As a result of her fraudulent filings, Pringle claimed and received tax deductions and credits to which she was not entitled.
This case is the product of an investigation by the U.S. Department of the Treasury Inspector General for Tax Administration and IRS Criminal Investigation. Assistant U.S. Attorney Vincenza Rabenn is prosecuting the case.
1:17-cr-081 DAD — On March 30, 2017, a grand jury returned an indictment charging Leticia Bedolla, of Porterville, with 16 counts of aiding and assisting in the preparation of a false tax return. According to court documents, Bedolla operated Leticia Tax Service in Porterville. Between April 2008 and April 18, 2011, Bedolla prepared and filed many tax returns with the IRS, knowing that the returns contained false statements. Bedolla would fabricate amounts of deductions, expenses and tax credits without informing her customers. Bedolla submitted the returns to the IRS, causing her customers to claim tax deductions and credits to which they were not entitled and the IRS to either pay out excessive refunds or to not collect the tax due and owing. Her conduct resulted in a tax loss to the IRS of $100,000.
This case is the product of an investigation by the IRS Criminal Investigation. Assistant U.S. Attorney Henry Z. Carbajal III is prosecuting the case.
If convicted, Heredia faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for wire fraud, a mandatory minimum of two years in prison to be served consecutive to any other sentence for aggravated identity theft, and three years in prison and a $250,000 fine for making a false tax return. If convicted, Pringle faces a maximum statutory penalty of three years in prison and a $250,000 fine for filing a fraudulent tax return and five years in prison and a $250,000 fine for making an opportunity for a person to defraud the United States. If convicted, Bedolla faces a maximum statutory penalty of five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Ponzi Scheme Manager Sentenced to over 4 Years in Prison for Scheme That Stole over $1.5M from Victims in Visalia and ElsewhereRead the Press Release
FRESNO, Calif. — Bonnie Lynn Recinos, 56, of Mesa, Arizona, was sentenced Monday by United States District Judge Dale A. Drozd to four years and seven months in prison and was ordered to pay over $1.5 million in restitution for conspiracy to commit mail and wire fraud in connection with an investment fraud scheme, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between April 2006 and August 2009, Recinos, who was doing business as Farr and Associates and Farr Financial Group, conspired with others to defraud investors of money. In most instances, Recinos offered individuals an opportunity to purportedly invest in a real estate project. Recinos told investors that the company was an investment group for business and real estate in Arizona, that their investment was secured by Farr assets, and that they would typically earn 3 –5 percent interest per month. As a result of Recinos’ false representations, investors gave money to invest in the purported real estate projects. However, instead of investing the money, Recinos used it for her own business and personal expenses.
As part of the conspiracy, Recinos would periodically have statements sent to the investors showing the purported progress of their investments and the interest earned to date. Recinos would also use investors’ money to pay interest amounts owed to other investors. Both the statements and the periodic payments lulled the investors into believing that their investments were legitimate, brought in new investors, and helped to avoid detection by law enforcement. Investors lost more than $1.5 million as a result of the fraud scheme.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Henry Z. Carbajal III and Megan A. S. Richards prosecuted the case.
Six Indicted for Defrauding Solano County Energy Company Involving over $2.2M in Total LossRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 25-count indictment on April 6, 2017, charging six defendants in connection with their various roles in defrauding an energy generation company of over $2.2 million, United States Attorney Phillip A. Talbert announced. The indictment was unsealed today, and all six defendants were arraigned today on the indictment.
The defendants have been charged as follows:
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Timothy Chapin, 38, formerly of Lathrop, is charged with three counts of conspiracy to commit mail or wire fraud, five counts of mail fraud, 14 counts of wire fraud, and three counts of conspiracy to commit money laundering.
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Manuel Agueros, 37, formerly of Lathrop, and Dodge City, Kansas, is charged with two counts of conspiracy to commit mail or wire fraud, three counts of mail fraud, 11 counts of wire fraud, and two counts of conspiracy to commit money laundering.
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Jeffrey Reilley, 53, of Ripon, is charged with one count of conspiracy to commit mail and wire fraud and six counts of wire fraud.
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Paul Fournier, 34, of Scottsdale, Arizona, is charged with one count of conspiracy to commit mail and wire fraud, three counts of mail fraud, eight counts of wire fraud, and one count of conspiracy to commit money laundering.
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Jorge Eguiluz, 46, of Stockton, is charged with one count of conspiracy to commit wire fraud, three counts of wire fraud, and one count of conspiracy to commit money laundering.
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Robert Lautenslager, 38, of Castro Valley, is charged with one count of conspiracy to commit mail and wire fraud, two counts of mail fraud, three counts of wire fraud, and one count of conspiracy to commit money laundering.
According to the indictment, Chapin, Reilley, and Agueros all worked for a Florida-based energy generation company that operated wind farms in the Solano County town of Birds Landing in California. Chapin, a senior business technician, and supervisors Reilley and Agueros executed a scheme that caused the generation of purchase orders for parts and services not actually needed at the wind farms. Those purchase orders were sent to three Arizona-based shell companies that had been set up by Fournier; the shell companies had no facilities and provided no actual products or services. The shell companies then submitted fraudulent invoices to the energy generation company for undelivered products and unperformed services, and were paid on those invoices in an amount just under $2 million. Also according to the indictment, Chapin, Agueros, and Eguiluz engaged in a similar scheme using a company called “J. Eguiluz Labor Service LLC” as the shell company to submit fraudulent invoices and be paid on those invoices. Further still, Chapin and Lautenslager engaged in a similar scheme using a shell company set up by Lautenslager to submit fraudulent invoices and be paid on those invoices.
This case is the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation. Assistant United States Attorney Nirav Desai is prosecuting the case.
If convicted, each defendant faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The money laundering charges are subject to fines of up to $500,000 or twice the value of the property involved in the money laundering transactions. 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.
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Elk Grove Man Charged with Producing Child PornographyRead the Press Release
SACRAMENTO, Calif. — Alexander Jordan Miller, 21, of Elk Grove, was arrested on Friday, charged with production of child pornography and possession of child pornography, U.S. Attorney Phillip A. Talbert announced. Miller is scheduled to be arraigned today before U.S. Magistrate Judge Edmund F. Brennan.
A six-count indictment, unsealed after his arrest, was returned by a federal grand jury on April 6, 2017. According to court documents, between March 2015 and September 2015, Miller obtained nude images of children between the ages of 11 and 15 years old, then threatened to distribute those images if the victims did not produce and provide him with sexually explicit videos. In addition, Miller also possessed other images of child pornography.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Brian A. Fogerty is prosecuting the case.
If convicted, each count of child pornography production carries a minimum statutory penalty of 15 years in prison and a maximum penalty of 30 years in prison. If convicted of the possession of child pornography charge, Miller faces a maximum statutory penalty of 10 years in prison. Each charge in the indictment carries a potential fine of $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Bakersfield Man Sentenced to 15 Years in Prison for Hate CrimeRead the Press Release
BAKERSFIELD, Calif. — U.S. District Judge Dale A. Drozd sentenced a Bakersfield man to 15 years in prison today for federal hate crimes for firing a shotgun while yelling racist slurs at a Latino man, Acting Assistant Attorney General of the Civil Rights Division, Thomas Wheeler, and U.S. Attorney Phillip A. Talbert announced.
Justin Cole Whittington, 25, was convicted in December 2016 of interfering with a person’s housing rights because of his race, color, or national origin by use of force or threat of force; use of a firearm during a crime of violence; and making a false statement to a special agent of the FBI. Whittington had earlier pleaded guilty to unlawful possession of a prohibited firearm in connection to the same crime.
Judge Drozd also ordered Whittington to pay $2,000 in restitution to the victim and called the defendant’s actions: “Reprehensible conduct that’s had a significant impact on [the victim’s family] — outrageous, repugnant criminal conduct. He obstructed justice, he lied, he did everything he could to escape responsibility.”
According to court documents, on December 19, 2012, the victim, a Latino man, was standing in his front yard with his wife and son when a car drove past slowly and came to a stop in front of his neighbor’s house. The victim thought this was unusual and paid close attention to the car. Whittington, whom the victim had never seen before, got out of the front passenger seat of the car holding a sawed-off shotgun. Whittington used profanity and shouted a racial epithet as he fired one round toward the victim from about 15 yards away, and yelled that the victim should move out of Oildale. Whittington got back into the car and it drove away. Shortly thereafter, the shotgun was fired from the car at a nearby convenience store owned by a man of Middle Eastern descent. The blast left a large hole in the store’s glass door, and circles of missing paint on the metal gate in front of the store.
According to evidence presented at trial, the victim was able to describe Whittington and the car to Kern County Sheriff’s deputies, and they found Whittington nearby standing outside the car. The deputies recovered a sawed-off shotgun in the trunk of Whittington’s Crown Victoria, which was parked near the car identified by the victim.
Whittington was also found guilty of making false statements to an FBI agent when he falsely claimed that on the evening of the incident, he had been paid by someone to keep the sawed-off shotgun in the trunk of his car.
According to court documents and evidence presented at trial, the victim and his family no longer felt safe in their home, and as soon as they had the financial means to do so, they moved from the neighborhood.
“Hate violence has no place in our society. It harms individuals and entire communities by threatening their sense of security and freedom,” said Acting Assistant Attorney General Wheeler. “In this case, Whittington fired a shotgun at the victim, terrorizing him and his family, because of his Latino ethnicity. The Justice Department will continue to vigorously prosecute hate crimes so that all people, no matter the color of their skin, their country of origin, or how they worship, can live their lives freely and without fear.”
U.S. Attorney Talbert stated: “The sentence handed down today reflects the seriousness of hate crimes such as this, which cause not only the victims but entire communities to feel vulnerable and unsafe. Our district is one that is rich in diversity, and my office is committed to investigating and prosecuting those who violate community members’ civil rights through acts of hate and intimidation.”
“The FBI works closely with our law enforcement partners to ensure thorough investigation of allegations of hate crimes in the communities we serve and protect,” said Special Agent in Charge Monica M. Miller of the Federal Bureau of Investigation Sacramento field office. “Whittington’s threats and intimidation of his neighbors were despicable acts and not reflective of the America we all want to live in.”
Kern County Sheriff Donny Youngblood stated: “The Kern County Sheriff's Office will continue to work with our federal partners in investigating all hate crimes. I realize that these type of crimes reverberate through a community and cause fear to our community members. Violation of people’s civil rights impact all of us and will not be tolerated.”
This case was the product of an investigation by the Federal Bureau of Investigation and the Kern County Sheriff’s Office. Assistant U.S. Attorney Brian K. Delaney prosecuted the case with the assistance of Trial Attorney Samantha Trepel of the Justice Department’s Civil Rights Division.
Bakersfield Man Sentenced to 15 Years in Prison for Hate CrimeRead the Press Release
U.S. District Judge Dale A. Drozd sentenced a Bakersfield man to 15 years in prison for federal hate crimes for firing a shotgun while yelling racist slurs at a Latino man, Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division, and U.S. Attorney Phillip A. Talbert of the Eastern District of California announced.
Justin Cole Whittington, 25, was convicted in December 2016 of interfering with a person’s housing rights because of race, color, or national origin by use of force or threat of force; use of a firearm during a crime of violence; and making a false statement to a special agent of the FBI. Whittington had earlier pleaded guilty to unlawful possession of a prohibited firearm in connection to the same crime.
“Hate violence has no place in our society. It harms individuals and entire communities by threatening their sense of security and freedom,” said Acting Assistant Attorney General Wheeler. “In this case, Whittington fired a shotgun at the victim, terrorizing him and his family, because of his Latino ethnicity. The Justice Department will continue to vigorously prosecute hate crimes so that all people, no matter the color of their skin, their country of origin, or how they worship, can live their lives freely and without fear.”
“The sentence handed down today reflects the seriousness of hate crimes such as this, which cause not only the victims but entire communities to feel vulnerable and unsafe,” said U.S. Attorney Talbert. “Our district is one that is rich in diversity, and my office is committed to investigating and prosecuting those who violate community members’ civil rights through acts of hate and intimidation.”
“The FBI works closely with our law enforcement partners to ensure thorough investigation of allegations of hate crimes in the communities we serve and protect,” said Special Agent in Charge Monica M. Miller of the Federal Bureau of Investigation Sacramento field office. “Whittington’s threats and intimidation of his neighbors were despicable acts and not reflective of the America we all want to live in.”
“The Kern County Sheriff's Office will continue to work with our federal partners in investigating all hate crimes,” said Kern County Sheriff Donny Youngblood. ”I realize that these type of crimes reverberate through a community and cause fear to our community members. Violation of people’s civil rights impact all of us and will not be tolerated.’
According to evidence presented in court, on December 19, 2012, the victim, a Latino man, was standing in his front yard with his wife and son when a car drove past slowly and came to a stop in front of his neighbor’s house. The victim thought this was unusual and paid close attention to the car. Whittington, whom the victim had never seen before, got out of the front passenger seat of the car holding a sawed-off shotgun. Whittington used profanity and shouted a racial epithet as he fired one round toward the victim from about 15 yards away, and yelled that the victim should move out of Oildale. Whittington got back into the car and it drove away. Shortly thereafter, the shotgun was fired from the car at a nearby convenience store owned by a man of Middle Eastern descent. The blast left a large hole in the store’s glass door, and circles of missing paint on the metal gate in front of the store. The victim was able to describe Whittington and the car to Kern County Sheriff’s deputies, and they found Whittington nearby standing outside the car. The deputies recovered a sawed-off shotgun in the trunk of Whittington’s Crown Victoria, which was parked near the car identified by the victim. Subsequently, Whittington made false statements to an FBI agent when questioned about the sawed-off shotgun.
Following these crimes, the victim and his family no longer felt safe in their home, and as soon as they had the financial means to do so, they moved from the neighborhood.
This case was the product of an investigation by the Federal Bureau of Investigation and the Kern County Sheriff’s Office. Assistant U.S. Attorney Brian K. Delaney of the Eastern District of California and Trial Attorney Samantha Trepel of the Civil Rights Division’s Criminal Section prosecuted the case.
Roseville Woman Pleads Guilty to Fraud Scheme Using Stolen MailRead the Press Release
SACRAMENTO, Calif. — Ashley Nicole Leyba, aka Ashley Nicole Schlichting, 27, of Roseville, pleaded guilty today to bank fraud, aggravated identity theft, and possession of stolen mail, United States Attorney Phillip A. Talbert announced.
According to court documents, between September 15, 2016 and February 3, 2017, carried out an identity theft scheme in order to defraud banks and credit unions. She obtained stolen mail from victims and opened credit card accounts and lines of credit using the financial and identification information found in the stolen mail. Leyba created notebooks, which she labeled “THINK BIG” and “STAY OUT,” to organize the names, addresses and personal information of the mail theft victims.
According to the plea agreement, Leyba used the credit cards to purchase goods at Wal‑Marts in Sacramento and Rocklin, Kohls in Citrus Heights, Foot Locker in Roseville, Lowes in Rancho Cordova, and other stores in Sacramento and Placer counties. Leyba was depicted in surveillance images during several of these fraudulent transactions.
Leyba was arrested on February 13, 2017. In her plea agreement, she admits that while in custody, she instructed associates to destroy stolen identification and financial information that she had in her residence. One associate was arrested for driving while intoxicated, and during an inventory search of the vehicle, some of the stolen mail was recovered before being destroyed according to Leyba’s instruction.
This case is the product of an investigation of the United States Postal Inspection Service with assistance from the Sacramento County Sheriff’s Office, Sacramento County Probation Office, and the Citrus Heights Police Department.
Leyba is scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on June 23, 2017. Leyba faces up to 30 years in prison for bank fraud, a mandatory two years in prison for aggravated identity theft, and five years in prison for possession of stolen U.S. Mail.
Madera Man Convicted for Tax EvasionRead the Press Release
FRESNO, Calif. — Today, after a four-day trial, a federal jury found Jeffrey G. Vincent, 66, of Madera, guilty of five counts of evading income taxes, United States Attorney Phillip A. Talbert announced.
According to evidence presented at trial, since 1991, Vincent operated a Fresno-based engineering company called Veco Technologies, organized as Stafford Group Limited Partnership, for which Vincent was general partner. Vincent has not filed an individual income tax return since 1989, despite earning significant income from Stafford Group, including close to $500,000 between 2007 and 2010. Two federal tax liens were filed on Vincent’s assets in 1993 and 2000 when he failed to pay assessments made for tax delinquencies in earlier years. Vincent signed tax returns for Stafford Group in which he falsely represented that he does not have a social security number. Vincent also funneled his income through various trusts and other entities.
“Today’s guilty verdict of Mr. Vincent sends a clear message to those who claim that there is no legal requirement to pay federal income taxes. All taxpayers are required to follow the law and the law requires accurate reporting and timely payment of any tax due and owing,” said Michael T. Batdorf, Special Agent in Charge IRS Criminal Investigation.
This case is the product of an investigation by the Internal Revenue Service Criminal Investigation. Assistant U.S. Attorneys Christopher D. Baker and Kirk E. Sherriff are prosecuting the case.
Vincent was remanded into custody following the announcement of the verdict. He is scheduled to be sentenced by U.S. District Judge Lawrence J. O’Neill on July 24, 2017. Vincent faces a maximum statutory penalty of 25 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.
Three Central Valley Residents Appear in Court for Federal Passport OffensesRead the Press Release
FRESNO, Calif. — U.S. Attorney Phillip A. Talbert and David Zebley, Special Agent in Charge, U.S. State Department Diplomatic Security Service, announced today the recent prosecution of five separate passport fraud offenses. According to court documents, the defendants possessed United States passports for themselves or for others that were produced without lawful authority. Three of those defendants appeared in court today before U.S. Magistrate Stanley Boone in Fresno.
Docket # 1:17-cr-017
Rafael Antonio Guilarte Rojas, 39, of Bakersfield, was arraigned today. He is charged with possessing an identification document with intent to defraud the United States. He is alleged to have possessed a California driver’s license in a false name when Diplomatic Security Special Agents encountered him on January 5, 2017, while investigating the passport application he submitted in the same false name.
Docket # 1:17-cr-016
Luis Alberto Hecht Rojas, 33, of Bakersfield, was also arraigned today. He is charged with possessing an identification document with intent to defraud the United States. He is alleged to have possessed a California driver’s license in a false name when Diplomatic Security Special Agents encountered him on January 5, 2017, while investigating the passport application he submitted in the same false name.
Docket # 1:17-cr-046
Maria Cruz Lopez, 42, of Bakersfield, pleaded guilty today to possessing a false United States identification document. She possessed a United States passport issued to her in her identity, but with another person’s photograph on it on August 13, 2012. United States Magistrate Judge Stanley A. Boone sentenced Lopez to two years of probation, a $1,500 fine, and 60 hours of community service.
Docket # 1:16-cr-161
Luis Garcia Jauregui, 53, of Bakersfield, is charged with possessing a false United States identification document. He is alleged to have possessed a United States passport issued to him in a false name when Diplomatic Security Special Agents encountered him on November 19, 2015, while investigating the passport application he submitted in the same false name. On February 24, 2017, a warrant was issued for his arrest.
Docket # 1:16-cr-160
On February 2, 2017, Carolina Garcia Velazquez, 41, of Fresno, was convicted of possessing a false United States identification document. She possessed a United States passport that had been issued to her in a false name when Diplomatic Security Special Agents encountered her during the course of her false passport investigation. U.S. Magistrate Judge Stanley Boone sentenced her to two years of probation, a $2,000 fine, and 100 hours of community service.
The defendants still facing charges face a maximum statutory penalty of one year in prison and a maximum statutory fine of $100,000 if convicted. 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.
These cases are the product of an investigation by the Diplomatic Security Service. Assistant U.S. Attorney Megan S. Richards is prosecuting the cases.
Romanian Business Owner Sentenced to 13 Years in Prison for Bribery of a Public OfficialRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Troy L. Nunley sentenced Dumitru Martin, 55, of Romania, today to 13 years in prison for conspiracy to commit bribery and bribery of a public official, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Martin owned and operated a Romanian company called Polaris M. Holdings. Co-defendants Anamaria Cruceru, 49; Constantin Schiller, 63; and Marcelle Banaga, 41, all of Romania, were employees of Polaris. Between June 2014 and December 2015, Martin, Cruceru, Schiller, and Banaga conspired with each other to bribe a high-level United States Air Force (USAF) contracting officer in an effort to win multiple multimillion-dollar contracts for Polaris. The defendants offered to pay the contracting officer a bribe, which they called a “commission,” equal to 10 percent of the amount of any contract awarded. The defendants also suggested that the contracting officer use a fictitious consulting contract and other commercial contracts and documents to conceal payment of the bribe.
In July 2015, the defendants caused Polaris to submit a bid to the USAF to supply storage containers to the Mihail Kogalniceanu Air Base in Romania. The contract was valued at over $10 million. In September 2015, Martin traveled to Travis Air Force Base in Fairfield, California to sign the documents relating to the bid as well the fictitious contracts meant to conceal various bribe payments totaling just over $1 million. Thereafter, as part of the conspiracy, the defendants caused Polaris to wire $100,000 from Romania to a bank account in the United States as the initial bribe payment to the USAF contracting officer. Unbeknownst to the defendants, the USAF contracting officer was working with federal law enforcement, and there was no contract to be awarded to Polaris.
U.S. Attorney Talbert said: “The Eastern District of California has many military and other government facilities that obligate taxpayer money in the course of negotiating high-dollar contracts. The sentence imposed today acknowledges the importance of rooting out corruption and protecting the integrity of the contracting process. My office is committed to investigating and prosecuting those who attempt to bribe public officials or who engage in other acts of public corruption that undermine the public’s confidence in the integrity of the government.”
Judge Nunley said at sentencing that, “bribery is not a victimless crime.” He went on to note that bribery creates a “pay-to-play environment” in which people feel “they can’t participate if they do it the right way.”
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Michael Beckwith and Todd Pickles are prosecuting the case.
Banaga, Schiller and Cruceru pleaded guilty to conspiracy to commit bribery. They are scheduled to be sentenced by Judge Nunley on May 11, 2017. They each face a maximum statutory penalty of five years in prison. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Fair Oaks Man Sentenced to Nearly 5 Years in Prison for Opening Bank Accounts Using IDs Stolen from U.S. MailRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Morrison C. England Jr. sentenced Trevor Kintaro Lichnock-Gembe, 29, of Fair Oaks, today to four years and 10 months in prison for bank fraud, aggravated identity theft, and unlawful possession of identification documents of others, United States Attorney Phillip A. Talbert announced.
According to court documents, between June 14, 2015, and June 1, 2016, Lichnock-Gembe and co-defendant Shellby L. Moore, 29, of Sacramento, stole mail and obtained other stolen property containing personal and financial information of victims from residential and vehicle burglaries in Placer County, Sacramento County, and El Dorado County. Lichnock-Gembe and Moore used stolen mail and victim identification and financial information to alter and manufacture checks that were cashed at the expense of local banks and credit unions. Lichnock-Gembe possessed over five different stolen victim identifications, and he and Moore opened bank accounts using the stolen personal and financial information in order to deposit stolen checks and withdraw cash. Lichnock-Gembe was arrested on June 1, 2016, while leaving a Sacramento apartment complex at which he had just stolen mail.
San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated, “Postal Inspectors worked closely with the U.S. Attorney’s Office and our partners in law enforcement to arrest and prosecute those individuals responsible for thefts of mail and identity theft crimes committed against the public.”
This case is the product of an investigation of the United States Postal Inspection Service with assistance from the Sacramento County Sheriff’s Office. Assistant United States Attorney Michelle Rodriguez is prosecuting the case.
On March 13, 2017, Moore pleaded guilty to aggravated ID theft and using methamphetamine while in federal custody. She is scheduled for sentencing on June 8, 2017, before Judge England. Moore 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.
Jury Finds Sacramento Man Guilty of Filing False Tax ReturnsRead the Press Release
SACRAMENTO, Calif. — A jury found Omar Kabiljagic, 46, of Sacramento, guilty today of two counts of filing false claims with the United States, U.S. Attorney Phillip A. Talbert announced.
According to evidence presented at trial, in 2008 and 2009, Kabiljagic submitted a series of tax returns to the Internal Revenue Service which contained false information and fraudulently claimed millions of dollars in refunds. In each of these returns, Kabiljagic falsely claimed to have received large amounts of interest income, ranging from to $149,859 to $1,229,000, and then falsely claimed that all of the interest had been withheld by the payers. The returns requested refunds of the allegedly withheld tax. In reality, Kabiljagic had not received the interest and nothing had been withheld. Kabiljagic received repeated warnings from the IRS that his claims were frivolous, but continued to file false claims.
Kabiljagic also helped his co-defendant, Suvada Mahmutovic, 67, prepare and submit similar false claims. One of her false claims resulted in a fraudulent refund of more than $263,000, which the defendants deposited and cashed. At least some of the proceeds appear to have been wired overseas. Mamhutovic pleaded guilty to one count of filing false claims on March 3, 2017.
“Today’s guilty verdict of Mr. Kabiljagic once again shows the severe nature of fraudulent schemes perpetrated by those that wish to make a quick dollar from the U.S. government,” said Michael T. Batdorf, Special Agent in Charge IRS Criminal Investigation. “With the upcoming filing deadline of April 18, 2017, I want to remind all taxpayers that filing fraudulent tax returns is a crime with serious consequences.”
This case is the product of an investigation by the IRS Criminal Investigation. Assistant U.S. Attorneys Matthew G. Morris and Amy Schuller Hitchcock are prosecuting the case.
U.S. District Judge Garland E. Burrell Jr. is scheduled to sentence Kabiljagic on June 23, 2017 and Mahmutovic on May 19, 2017. The defendants face a maximum statutory penalty of five years in prison on each count, a $250,000 fine and restitution to the IRS. 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 Gang Member Sentenced to 9 Years in Prison for Illegal Firearm PossessionRead the Press Release
FRESNO, Calif. — Tremayne Beard, 34, of Fresno, was sentenced on Monday by U.S. District Judge Lawrence J. O'Neill to nine years in prison for being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on the evening of December 5, 2016, and continuing into the early hours of December 6, 2016, the defendant was at a party at the Fresno Fairgrounds. Fresno police officers were assigned to patrol the event after a recent surge in gang violence in Fresno. When shots were fired, officers observed Beard leaving the Fairgrounds parking lot at a high rate of speed. Police officers followed Beard’s vehicle, and he ultimately crashed into a parked car and a retaining wall. As he got out of his car and fled into a neighboring backyard, a witness saw him throw something. Beard was subsequently arrested and police found a .45‑caliber handgun where the witness indicated something had been thrown. Numerous shell casings were found in the area where Beard had been parked at the Fairgrounds, including a .45‑caliber casing that matched bullets in the gun found by the police. A partial .45‑caliber bullet was also found lodged in a vehicle parked near the Fairgrounds. Beard has multiple prior convictions, and he was identified as a gang member by the Fresno police.
“This case highlights how the prosecution of firearms offenses helps to protect the community,” said U.S. Attorney Talbert. “The defendant’s conduct on the night of the offense put several lives in dangers, and I am grateful for the cooperative work among our law enforcement partners to hold him accountable for his crimes. My office is committed to prosecuting cases such as these, which have a direct impact on the communities we serve.”
“The Bureau of Alcohol, Tobacco, Firearms and Explosives, or ATF, has the country’s only crime gun-tracing facility,” said Special Agent in Charge Jill Snyder. “The mission of ATF’s National Tracing Center is to conduct firearms tracing that will provide investigative leads for federal, state, local and foreign law enforcement agencies. In this case, the capabilities of ATF’s National Tracing Center provided information on the firearm used to investigators. ATF works closely with our partners in law enforcement to prosecute felons who illegally possess firearms and engage in acts of violence. This case is an example of how agencies can work together to help make our neighborhoods a safer place.”
Fresno Chief of Police Jerry Dyer stated, “Removing Tremayne Beard from our community will have a tremendous positive impact on the safety of our neighborhoods.”
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Fresno Police Department, the California Department of Justice, and the California Highway Patrol. The case was a part of Project Safe Neighborhoods, which is a joint initiative to combat gang and gun violence. Assistant U.S. Attorney Kimberly A. Sanchez prosecuted the case.
Three Plead Guilty to Marijuana Cultivation Operation at Prehistoric Native American SiteRead the Press Release
FRESNO, Calif. — Juan Carlos Lopez, 32, of Lake Elsinore; Rafael Torres-Armenta (Torres), 30; and Javier Garcia-Castaneda (Garcia), 38, both of Michoacán, Mexico, pleaded guilty today to conspiring to manufacture, distribute and possess with intent to distribute marijuana in connection with a large-scale cultivation operation on public land in Tulare County in the Sequoia National Forest., United States Attorney Phillip A. Talbert announced. In pleading guilty, the men also agreed to make restitution to the U.S. Forest Service for the damage to public land and natural resources caused by their cultivation activities.
According to court documents, the men conspired with each other and co-defendant Carlos Piedra‑Murillo (Piedra), 30, of Mexico, to cultivate marijuana at a prehistoric Tübatulabal Native American archaeological site in the Domeland Wilderness area. The Domeland Wilderness is a federally designated wilderness area that is located about 55 miles northeast of Bakersfield. Law enforcement officers eradicated over 8,000 marijuana plants from this and another site and seized 17 pounds of processed marijuana, a .22-caliber rifle, a pellet rifle, and numerous rounds of .22‑caliber ammunition. Piedra pleaded guilty to the conspiracy charge last month.
The marijuana cultivation operation caused extensive environmental damage to about 10 acres of public land. The area was located 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. Fertilizer and pesticides, including illegal zinc phosphide from Mexico were found at the site. Large piles of trash were also found near the campsite. The northernmost area of the operation caused extensive damage to a large prehistoric Tübatulabal 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, the Bureau of Land Management, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the California Department of Fish and Wildlife. Assistant United States Attorney Karen Escobar is prosecuting the case.
Lopez, Torres, and Garcia are scheduled for sentencing on June 26, 2017, by U.S. District Judge Lawrence J. O’Neill. Piedra is scheduled for sentencing on June 5, 2017. Lopez faces a mandatory prison sentence of five years in prison and a maximum term of 40 years in prison and a $5 million fine. The other men 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. Piedra, Torres, and Garcia are subject to deportation to Mexico following the completion of any prison sentence imposed.
Guilty Plea in Marijuana Cultivation Operation in Sequoia National ForestRead the Press Release
FRESNO, Calif. —Juan Penaloza-Ramirez, aka Juan Penaloza-Herrera, aka Juan Penaloza (Penaloza), 46, of Michoacán, Mexico, residing in Taft, California, pleaded guilty today to conspiring to manufacture, distribute and possess with intent to distribute marijuana grown at three separate marijuana cultivation sites in the Sequoia National Forest, U.S. Attorney Phillip A. Talbert announced. In pleading guilty, Penaloza agreed to pay $10,198 to the U.S. Forest Service for the damage to public land and natural resources caused by the cultivation activities.
According to court documents, Penaloza employed growers, deliverymen, and others to cultivate marijuana at Fay Creek, Brush Creek, and The Needles in the Sequoia National Forest in Tulare and Kern Counties. Every winter, Penaloza traveled to Mexico to recruit people to grow marijuana on public lands in the United States.
At the Fay Creek cultivation site, springs were dammed and diverted to irrigate the marijuana plants and large amounts of trash were scattered throughout the site, including in a flowing stream. Law enforcement officers seized 3,151 marijuana plants from this location. In pleading guilty, Penaloza agreed to the forfeiture of firearms and ammunition seized during a search of his home.
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 that supports trout. The officers also found toxic pesticides from Mexico 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 had been derived from a spring that drains into the Upper Kern River.
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 Justice’s Campaign Against Marijuana Planting (CAMP), and the Kern County Sheriff’s Office. Assistant United States Attorney Karen Escobar is prosecuting the case.
Penaloza is scheduled for sentencing before U.S. District Judge Dale A. Drozd on June 19, 2017. Penaloza faces a mandatory minimum statutory penalty of five years in prison and 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.
Co-defendant Russell Lee Riggs, 68, of Weldon, California is scheduled for a status conference on May 8, 2017. The charges against Riggs are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Fresno CEO Sentenced to a Year in Prison for Embezzling over $500,000 from Pension PlanRead the Press Release
FRESNO, Calif. — U.S. District Judge Dale A. Drozd sentenced Mary Williams, 70, of Fresno, today to one year in prison for embezzling from a pension plan, U.S. Attorney Phillip A. Talbert announced. Judge Drozd ordered Williams to pay $509,405 in restitution to the Pension Benefit Guaranty Corporation (PBGC).
According to court documents, Williams was the Chief Executive Officer of Aeroplate Corporation, an engineering and contracting firm in Fresno. From June 2011 to November 2016, Williams embezzled approximately $509,000 from a pension plan that Aeroplate established for its employees. One of the fund’s assets was a set of real estate parcels in Fresno that at one point was appraised at over $900,000 in value. Williams pleaded guilty to the embezzlement on January 17, 2017.
Under federal law, assets that belong to pension plans can only be used to fund the plan, which must pay future benefits to employees, and not the business that started the plan.
According to the plea agreement, Williams and the company used the properties to raise money for the company. Eventually, the company was unable to repay its loans, and the properties were foreclosed on. The fund became insolvent because it did not have enough money to pay expected benefit claims. However, the plan’s benefits are federally insured by the Pension Benefit Guaranty Corporation, which protects employees from losing their benefits when their plans are insolvent.
This case was the product of an investigation by the U.S. Department of Labor’s Employee Benefit Security Administration. Assistant U.S. Attorney Michael G. Tierney prosecuted the case.
Former Fresno Bank of America Manager Pleads Guilty to Embezzling at Least $100,000 from BankRead the Press Release
FRESNO, Calif. —Sylvia Ochoa, 34, of Fresno, pleaded guilty today to embezzlement by a bank employee, United States Attorney Phillip A. Talbert announced.
According to court documents, Ochoa was the manager of a Bank of America branch on Tulare Street in downtown Fresno. On multiple occasions in 2013, Ochoa entered the bank vault after other employees had left for the day and removed cash without authorization. Ochoa used the money to purchase items for herself and her boyfriend, including designer handbags and a truck that she purchased for $24,000 in cash. Ochoa also caused Bank of America to electronically credit accounts that she set up. For example, Ochoa transferred at least $69,000 of Bank of America’s money into her boyfriend’s bank account. Ochoa admitted that she embezzled at least $100,000 from Bank of America during this time.
This case was the product of an investigation by the Federal Bureau of Investigation and the Fresno Police Department. Assistant United States Attorney Michael G. Tierney is prosecuting the case.
Ochoa is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on July 11, 2017. Ochoa faces a maximum statutory penalty of 30 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Bakersfield Car Dealership Owners Plead Guilty to Felonies Involving the Failure to File Required IRS FormsRead the Press Release
FRESNO, Calif. — Ramiro Catano, 51, and his brother Tereso Catano Casas, 49, both of Bakersfield, pleaded guilty today to felonies involving the failure to file IRS forms required for cash transactions over $10,000, United States Attorney Phillip A. Talbert announced.
According to court documents, the defendants co-owned Catano’s Auto Sales and Repair in Bakersfield. Their auto dealership was required by federal law to file a form, called a Form 8300, on any cash transaction from a single customer that exceeded $10,000 in a one-year period. On April 2, 2013, an undercover federal agent purchased a vehicle for $12,000 cash from the dealership and requested that the dealership not file a Form 8300 on the transaction. The undercover agent also stated to Ramiro Catano that the cash used to purchase the vehicle was from the sale of cocaine. Following the sale, the defendants did not file a Form 8300 on the transaction. Then, on July 26, 2013, an undercover federal agent purchased a vehicle for $16,000 cash from the dealership. As with the earlier transaction, the undercover agent requested that the dealership not file a Form 8300 on the transaction, and the defendants did not do so.
Ramiro Catano pleaded guilty to conspiring to not file a Form 8300, and Tereso Catano Casas pleaded guilty to misprision of (or failing to report) a felony because he knew that not filing a Form 8300 was a felony, but he failed to report the crime to the proper authorities.
This case is the product of an investigation by the IRS Criminal Investigation, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Bakersfield Police Department. Assistant United States Attorneys Grant Rabenn and Jeffrey A. Spivak are prosecuting the case.
As part of the plea agreement, the defendants have agreed to pay a $28,000 forfeiture money judgment.
The defendants are scheduled to be sentenced on July 10, 2017, at 10:00 a.m. before U.S. District Judge Dale A. Drozd. Ramiro Catano faces a maximum statutory penalty of five years in prison and a $250,000 fine. Tereso Catano Casas faces a maximum statutory penalty of three years in prison and a $250,000 fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.