Eastern District of California
Press releases recorded for this federal judicial district.
Stockton Man Sentenced to 9 Years and 8 Months in Prison for Drug, Fraud, ID Theft and Firearms OffensesRead the Press Release
SACRAMENTO, Calif. — Dennis Joseph Machado, 44, of Stockton, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to nine years and eight months in prison for schemes to distribute methamphetamine and defraud banks in Sutter, Sacramento, and San Joaquin Counties using identities obtained from stolen mail, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Machado and co-defendant Breneth L. Chase, 46, also of Stockton, obtained U.S. mail and postal keys stolen during burglaries of post offices in Sutter and Sacramento Counties. They used stolen mail to manufacture checks and government identifications to cash the phony checks, apply for lines of credit, and make purchases at local department stores at the expense of local banks and credit unions. When he was arrested, Machado had in his possession various manufactured identifications and stolen personal and financial information for numerous residents of Sutter, San Joaquin, and Sacramento Counties. Machado also possessed a scanner magnetic strip writer to re-encode bank cards to tap into victims’ lines of credit. In addition, Machado had in his possession methamphetamine for purposes of distribution. At the time of his arrest on October 20, 2015, Machado — who had previous felony convictions — unlawfully possessed ammunition.
San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated, “Postal Inspectors worked closely with the U.S. Attorney’s Office and our partners in law enforcement to arrest and prosecute those individuals responsible for the post office burglaries, mail thefts and fraud schemes committed against the public by the defendants in this case.”
This case was the product of an investigation of the United States Postal Inspection Service, the California Highway Patrol, the Sutter County Sheriff's Office, the Stockton Police Department, and the Sutter Creek Police Department, with assistance from the Sacramento County Sheriff's Office. Assistant U.S. Attorney Michelle Rodriguez prosecuted the case.
On December 2, 2015, in a related case, Chase was sentenced to four years and nine months in prison. (2:15-cr-173 GEB)
Stockton Man Sentenced to 2.5 Years in Prison for Trafficking Counterfeit GoodsRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Garland E. Burrell Jr. sentenced Michael Hampton, 40, of Stockton, today to two and a half years in prison for trafficking in counterfeit goods, U.S. Attorney Phillip A. Talbert announced. Judge Burrell also ordered Hampton to pay $282,670 in restitution to Brand Security Corporation on behalf of the trademark holders.
On January 6, 2017, Hampton pleaded guilty to one count of trafficking in counterfeit goods. According to court documents, Michael Hampton imported counterfeit handbags, jackets, accessories, shoes, and jerseys from Asia and supplied them to resellers. Hampton rented storage units in Stockton and sold the counterfeit goods at the storage facility. The counterfeit goods included, Adidas, Chi, Coach, Gucci, Juicy Couture, Louis Vuitton bags, Majestic, Mitchell & Ness shirts and jerseys, New Era sporting goods, Nike shoes, Northface, and 47. In addition, Michael Hampton sold counterfeit Nike shoes on eBay.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Roger Yang prosecuted the case.
Manteca Man Sentenced to over 8 Years in Prison for Possession of MDMA with Intent to DistributeRead the Press Release
SACRAMENTO, Calif. — Catalin Kifan, 26, of Manteca, was sentenced today to eight years and one month in prison by U.S. District Judge Garland E. Burrell Jr., United States Attorney Phillip A. Talbert announced today. On August 26, 2016, Kifan pleaded guilty to possession of MDMA with intent to distribute.
According to the plea agreement, on April 21, 2015, federal agents searched Kifan’s residence in Manteca and found a variety of drugs, including 1.7 kilograms of cocaine, 608 grams of MDMA and lesser amounts of marijuana, bath salts, steroids, methamphetamine, adrenaline, and prescription pills. In March and April 2015, law enforcement seized two packages of MDMA destined for the Manteca residence, as well as one package of MDMA sent to his co-defendant’s residence in Las Vegas. A search of the Las Vegas residence resulted in the seizure of additional quantities of drugs, including MDMA and steroids.
This case was the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Southern Nevada Heroin Task Force (SNHTF), and the Manteca Police Department. Assistant U.S. Attorney Kevin Khasigian prosecuted the case.
Co-defendant Jason Matecki, 42, pleaded guilty on April 8, 2016, and is scheduled to be sentenced on April 14, 2017.
The investigation is part of the Organized Crime Drug Enforcement Task Force (OCDETF) that was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations.
Guilty Plea in Scheme to Defraud the State of California of $2.5 MillionRead the Press Release
SACRAMENTO, Calif. — Kyn K. Naope, 41, of Sherman Oaks, pleaded guilty today to conspiracy to commit mail fraud for a scheme that submitted fraudulent unemployment benefit claim forms to the California Employment Development Department (EDD) via the U.S. mail, United States Attorney Phillip A. Talbert announced.
According to court documents, between March 2008 and February 2011, Naope and others involved in the scheme registered fictitious employers, such as “Peco Media,” “Sona Entertainment,” and “Money Alley,” with the EDD and then recruited other individuals to pose as laid-off employees of those companies. These fake employees would then file for and collect unemployment insurance benefits based on the wages reported to EDD by the fictitious employers.
This case is the product of an investigation by the U.S. Department of Labor, Office of Inspector General and the California Employment Development Department-Criminal Investigations. Assistant U.S. Attorneys Jared C. Dolan and Matthew M. Yelovich are prosecuting the case.
The total amount of unemployment benefit checks cashed as a result of this scheme was at least $2.5 million. Naope is the seventh individual to be convicted for participating in this fraud scheme, which was charged across three separate cases. Andre Walters of Long Beach was convicted following a jury trial in August 2016 and is scheduled to be sentenced on May 4, 2017. Kenneth Kim Parks of Pomona and Long Beach was sentenced to five years in prison. Donye Marcell Mitchell Sr., of Los Angeles, was sentenced to four years in prison. Gregory Bart Martin of Lakewood was sentenced to 18 months of probation. Michael Ray Taylor Sr., of Fontana, was sentenced to three years in prison, and Michael Ray Taylor Jr., of El Monte, is scheduled to be sentenced on May 11, 2017.
Naope is scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on June 16, 2017. Naope faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Benicia Woman Pleads Guilty to Tax FraudRead the Press Release
SACRAMENTO, Calif. —Sherrell Davis, 43, of Benicia, pleaded guilty today to submitting false claims for tax refunds, U.S. Attorney Phillip A. Talbert announced.
According to court documents, from February 2011 through May 2013, Davis repeatedly engaged in tax fraud by submitting fraudulent claims for tax refunds in the names of other people to the Internal Revenue Service. The tax returns used fraudulent W-2 tax forms from purported employers that reflected false wages and false withholdings in order to generate tax refunds to which the people listed on the returns were not entitled. The refunds sought also included amounts for tax credits to which the taxpayers were not entitled, including the Earned Income Credit, the American Opportunity Credit, and the Making Work Pay Credit. Davis submitted or assisted in the presentation of fraudulent tax returns seeking a total over $350,000 in tax refunds, of which at least $210,320 were paid out by the IRS.
This case is the product of an investigation by IRS Criminal Investigation. Assistant United States Attorney Christopher S. Hales is prosecuting the case.
Davis is scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on June 16, 2017. Davis faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
San Francisco-Based Drug Trafficker Sentenced to over 13 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — Herman Keese, 57, of San Francisco, was sentenced on Thursday to 13 years and eight months in prison by U.S. District Judge Troy L. Nunley, United States Attorney Phillip A. Talbert announced today. Keese pleaded guilty to drug trafficking and money laundering charges on August 25, 2016.
According to court documents, between April 2007 and March 1, 2012, Keese distributed methamphetamine and PCP from San Francisco to Sacramento and to the East Coast. Keese also engaged in a conspiracy to launder the proceeds of the drug trafficking enterprise using a 97-cent store he owned in San Francisco.
“Today’s sentencing of Herman Keese should send a clear message to would-be criminals—you will be caught and prosecuted to the full extent of the law,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “Together with our partners at the U.S. Attorney’s Office, DEA, and ATF, we will hold those engaged in similar conduct fully accountable.”
According to the plea agreement, one of the methods Keese used to launder drug proceeds involved having his associates deposit money in various banks across the East Coast, which would later be withdrawn at various banks in California, some in the Eastern District of California (EDCA). On numerous occasions, Keese spoke with the undercover agents regarding a means to move his drug proceeds from the East Coast to California. He indicated that he needed a method by which he could move $150,000 per week from Philadelphia to California.
On May 11, 2011, Keese directed his associates to deposit $20,000 into a Philadelphia bank. The $20,000 was then withdrawn from a bank in Sacramento and transported to San Francisco. Keese also received a bulk cash shipment of $42,000 concealed in a stereo tuner.
Further analysis of Keese’s financial records revealed that between 2007 and October 2011, between $2 million and $3 million was deposited in various bank accounts while the reported income for the 97-cent store was approximately $355,742 for the same time period.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the IRS Criminal Investigation, the Drug Enforcement Administration, the California Highway Patrol, the Sacramento Police Department, and the Sacramento Sheriff’s Department. Assistant U.S. Attorneys Heiko P. Coppola and Kevin Khasigian prosecuted the case.
The investigation is part of the Organized Crime Drug Enforcement Task Force (OCDETF) that 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.
Atwater Penitentiary Cook Indicted for Conspiracy, Attempted Drug Distribution and Accepting a BribeRead the Press Release
FRESNO, Calif. — A three-count indictment was unsealed Thursday following the arrest of David G. Bruce II, 32, of Merced. Bruce is charged with conspiring to provide inmates with prohibited objects; attempting to possess marijuana and heroin with the intent to distribute; and taking a bribe as a public official, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Bruce was employed as a cook foreman at the Federal Bureau of Prisons’ United States Penitentiary Atwater (USP Atwater) in Merced County. Between May and December 2015, Bruce conspired with others to provide USP Atwater inmates with marijuana and heroin. In return, Bruce received $1,580 from associates of the inmates. On December 2015, Bruce attempted to possess marijuana and heroin.
This case is the product of an investigation by the Department of Justice Office of the Inspector General. Assistant U.S. Attorney Vincenza Rabenn is prosecuting the case.
If convicted, Bruce faces a maximum statutory penalty of 20 years in prison and a $1 million fine for possessing a controlled substance with intent to distribute. The maximum statutory penalty for conspiring to commit an offense against the United States is five years in prison and a $250,000 fine. The maximum statutory penalty for a public official taking a bribe is 15 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Vallejo Man Sentenced to over 3 Years in Prison for False Claims in Tax Refund SchemeRead the Press Release
SACRAMENTO, Calif. — United States District Judge John A. Mendez sentenced Kenneth Knockum, 48, of Vallejo, today to three years and 10 months in prison for three counts of filing false claims against the United States, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Knockum was scheduled to be sentenced on May 10, 2016. When he failed to appear, a no bail bench warrant was issued and he was arrested in Vallejo on March 14, 2017.
According to evidence presented at a three–day bench trial in January 2016, Knockum prepared and filed taxes on behalf of himself and others utilizing an OID tax fraud scheme. Knockum prepared and filed tax returns claiming massive amounts of a particular kind of investment interest income, known as Original Issue Discount income. He also claimed that large portions of such income were withheld by financial institutions and paid to the Internal Revenue Service. The returns sought large refunds of such income — one return requested a refund of over $1.4 million, and another made a claim for over $500,000. Through a complex process, Knockum generated false 1099-OIDs and other tax forms to support the claimed income and taxes and filed those documents utilizing an IRS electronic filing system that requires special software and is used primarily by financial institutions and brokerage firms. The IRS caught the majority of the false returns and declared the claims to be frivolous, though the agency did sustain losses of over $125,000 in fraudulent refunds that were actually issued.
This case was the product of an investigation by the IRS, Criminal Investigation. Assistant United States Attorney Roger Yang prosecuted the case.
Former Bakersfield Union Officer Pleads Guilty to EmbezzlementRead the Press Release
BAKERSFIELD, Calif. — Edward Padilla, 56, of Bakersfield, pleaded guilty today to embezzlement of union funds, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between September 2012 and December 31, 2014, while Padilla was the secretary-treasurer and business manager of the Bakersfield office of a construction workers’ union, he embezzled approximately $168,780 from the union. He did this by writing unearned salary checks, unauthorized sick leave payments, and paying for personal expenditures on his union credit cards. Padilla used a signature stamp for the union president’s signature on the unauthorized checks and concealed the checks from the president. As part of the plea agreement, Padilla has agreed to pay $168,780 in restitution to the union.
This case is the product of an investigation by the United States Department of Labor. Assistant United States Attorney Angela Scott is prosecuting the case.
Padilla is scheduled to be sentenced by Judge Lawrence J. O'Neill on July 10, 2017, at 10:00 a.m. Padilla faces a maximum statutory penalty of five years in prison and a $10,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Citrus Heights Woman Sentenced to 3 Years in Prison for Role in Mortgage Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Dianna Woods, 60, of Citrus Heights, was sentenced today by Senior U.S. District Judge William B. Shubb to three years in prison for four counts of making false statements on loan applications, U.S. Attorney Phillip A. Talbert announced.
According to evidence presented at her four-day trial in December 2016, Woods was a licensed real estate salesperson who worked at a company called VLD Realty, doing business as Trade House USA, in the Sacramento area. VLD built and sold houses in residential developments in Sacramento, Carmichael, and Copperopolis. As the housing market began to weaken from 2006 through 2008, VLD sought to sell the houses by offering money to buyers in the form of paying the down payment or giving the buyers money after the transaction, neither of which was disclosed to the lenders.
For her part, Woods purchased two houses based on the undisclosed kickbacks. Further, for the purpose of obtaining mortgage loans to purchase the properties, Woods also signed and submitted loan applications and other documents that contained false statements as to Woods’s income, employment, assets, the purpose of the property, the sales price, and whether the down payment was borrowed. Woods also assisted another buyer in making false statements to the lenders to get loans for the purchase of two properties in the housing developments and falsely verified his employment. The banks suffered nearly $2 million in losses with respect to fraudulent transactions in which Woods was involved.
This case was the product of an investigation by the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation. Assistant U.S. Attorneys Shelley Weger and Todd Pickles prosecuted the case.
Two Oklahoma Residents Plead Guilty to Susanville Prison Tax Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Edwin Forrest Ludwig III, 61, and Donald Loyde Harned, 72, both of Oklahoma, pleaded guilty today for their roles in a conspiracy to defraud the United States with false claims for federal tax refunds, U.S. Attorney Phillip A. Talbert announced.
According to court documents, beginning in 2011, Ludwig III, Harned, and five others operated a tax fraud scheme out of the California Correctional Center in Susanville. Four of the co-conspirators who were incarcerated at the correctional center obtained personal identification information of other inmates. Harned and other co‑defendants who were not incarcerated took this information and prepared and filed false income tax returns with the IRS, claiming refunds that they knew to be false and to which the inmates were not entitled. Ludwig III, not an inmate, assisted the scheme by depositing the fraudulently obtained refunds in bank accounts he opened and transferring the criminal proceeds to the prison accounts of the incarcerated co-defendants. Both Ludwig III and Harned received money in return for their participation in the scheme.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation, the Federal Bureau of Investigation, and the Investigative Unit at the California Correctional Center. Assistant U.S. Attorney Amy Schuller Hitchcock is prosecuting the case.
Ludwig III and Harned are scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on June 30, 2017. Both 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.
To date, four co-conspirators have pleaded guilty and been sentenced for their participation in this scheme, including Ludwig III’s son, Ludwig IV, who was sentenced to seven years in prison for his role in the scheme. The charges against one remaining co-defendant are pending. Those charges are only allegations, and that co-defendants is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Sutter County Women Found Guilty of Making False Statements to a Grand JuryRead the Press Release
SACRAMENTO, Calif. — Today, after a six-day trial, a federal jury found Harjit Kaur Johal, 50, and Jasvir Kaur, 47, guilty of making false declarations before a grand jury, U.S. Attorney Phillip A. Talbert announced.
According to evidence presented at trial, the defendants participated in a series of unemployment and disability fraud schemes in Yuba City. The organizers of the schemes were members of the Khan family and included Mohammad Nawaz Khan, Mohammad Adnan Khan, Mohammad Shahbaz Khan, and Mohammad Riaz Khan. The organizers set up a series of farm labor contracting businesses that purported to provide labor to harvest crops in Sutter and Yuba Counties. The organizers then sold fraudulent paystubs to other people, including the defendants, and reported false wages to the Employment Development Department. The purchasers of the paystubs would subsequently file for unemployment or disability benefits with the EDD based upon the fictitious wages. Because the amount of the benefits that the EDD pays is based upon the claimant’s prior earnings, the participants would pay the Khans to report high wages to the EDD.
In 2014, the defendants were subpoenaed to testify before a federal grand jury investigating the fraud scheme. During their testimony, when questioned about their wages, the defendants falsely stated under oath that they picked peaches for Ray Khan and that they did not commit fraud. Both defendants claimed they had picked peaches for Ray Khan for at least eight hours a day, six days a week, during the summer months of June through September. Both defendants also claimed that they worked on other tasks in the orchards for hours every day after picking peaches.
Testimony from individuals with knowledge of Ray Khan’s real employees established that he did not employ the defendants. Further, evidence presented at trial showed the defendants had reported chronic back and knee problems in prior disability claims with the EDD and were not capable of doing the physically intensive work required by peach picking. Finally, evidence at trial established that the defendants purchased paystubs from Ray Khan so that he would report falsely inflated wages to the EDD, which the defendants could then use to claim the maximum possible amount of unemployment benefits. Both defendants had participated in previous fraud schemes with other Khan family members and had already claimed benefits in excess of $30,000 each.
U.S. Attorney Talbert stated: “Before the defendants testified before the grand jury, they swore to tell the truth. Unfortunately, motivated by a desire to conceal their participation in the schemes, they lied. Anyone who fails to tell the truth under oath should be ready to face the consequences of their actions.”
“Today’s guilty verdicts send a powerful message that individuals who perjure themselves in federal proceedings will be held accountable. Jasvir Kaur and Harjit Johal lied under oath to a federal grand jury about their purchase of bogus wages they intended to use to file for Unemployment Insurance benefits. We will continue to work with our law enforcement partners to investigate these types of allegations,” said Abel Salinas, Special Agent in-Charge of the Los Angeles Regional Office of the United States Department of Labor, Office of Inspector General.
“The Employment Development Department works closely with our law enforcement partners to prosecute attempts to defraud the employer-funded Unemployment Insurance Program, including those who perjure themselves in federal court,” said Patrick W. Henning Jr., Director of the California EDD. “We're happy to see coordination with law enforcement helping to avert losses to a benefit program that is a lifeline for unemployed Californians.”
The defendants’ trial was the latest in a series of cases involving the Khan family fraud schemes. Over the course of these related conspiracies, the Khans reported wages for over 400 separate individuals that resulted in more than 2,000 fraudulent claims for unemployment and disability benefits. The fraud schemes defrauded the California Employment Development Department of more than $14 million. To date, 26 individuals have been convicted of various offenses related to the schemes.
These cases are the product of an investigation by the U.S. Department of Labor, Office of Inspector General; the Federal Bureau of Investigation; and the Employment Development Department-Criminal Investigations. Assistant United States Attorneys Jared C. Dolan and Jeremy J. Kelley are prosecuting the cases.
Johal and Kaur are scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on June 16, 2017. Each defendant face 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.
Chico Man Sentenced to 50 Years in Prison for Receipt, Distribution and Conspiracy to Produce Child PornographyRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Morrison C. England Jr. sentenced Jesse Davenport, aka Draco John Flama, 41, of Chico, today to 50 years in prison for conspiracy to sexually exploit a child, two counts of receipt of child pornography, and one count of distribution of child pornography, U.S. Attorney Phillip A. Talbert announced. Davenport was found guilty by a jury on October 3, 2016.
According to court documents and evidence presented at trial, in August 2013, Davenport conspired with a woman in Connecticut to produce a video of child pornography after meeting her in an online chat room that focused on bondage, domination, sadism, and masochism. At the time, Davenport was on parole and on an electronic ankle monitor for a prior offense. On September 5, 2013, during a parole search, Davenport’s parole officer found an internet-capable cellphone in Davenport’s possession. The officer seized a micro-SD card from the phone to search it for contraband. Several days later, Davenport cut off his electronic monitor and fled from parole. Davenport was arrested in Redding, California on September 12, 2013.
According to evidence presented at trial, a subsequent search of the seized micro-SD card revealed a video of a woman engaged in sexually explicit conduct with a child approximately two to three years old. Further investigation led to the woman in Connecticut who was later arrested. She testified at trial that when Davenport learned she babysat for a two-and-half-year-old girl, he requested that she record a sexually explicit video of the minor and send it to him. The Connecticut woman made the video following Davenport’s instructions and sent it to him two times. Davenport then distributed the video to another person. Court documents indicate that Davenport has prior convictions for sex offenses against minors.
U.S. Attorney Talbert said, “Children are the most vulnerable members of our society, and we must do everything we can to protect them from horrific crimes like those committed by this defendant. The sentence handed down today rightly punishes the defendant for his conduct and seeks to ensure that he will not be able to commit crimes against children in the future. My office is committed to protecting the public by continuing to prosecute crimes against children.”
This case was the product of an investigation by the Federal Bureau of Investigation, the Butte County District Attorney's Office, the Redding Police Department, and the California Department of Corrections and Rehabilitation. Assistant U.S. Attorney André M. Espinosa 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.
Bakersfield Man Charged with Multiple Counts of U.S. Postal Theft and Possession of 15 or More Credit CardsRead the Press Release
FRESNO, Calif. — A federal grand jury returned an eight-count indictment today against Jason Leroy Geiser, 36, of Bakersfield, charging him with conspiracy to possess stolen U.S. mail and to unlawfully possess 15 or more unauthorized access devices (credit or debit cards), and other related charges, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between October 1, 2016, and March 2, 2017, Geiser conspired with others to steal mail and to use information and access devices obtained from the stolen mail for their own monetary benefit.
This case is the product of an investigation by the United States Postal Inspection Service and the Bakersfield Police Department. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
If convicted, Geiser faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Mexican Citizen Pleads Guilty to Timeshare Resale Fraud ConspiracyRead the Press Release
SACRAMENTO, Calif. — Marco Antonio Ramirez Zuno, 32, of Cancun, Mexico, pleaded guilty today to conspiracy to commit wire fraud in relation to a timeshare resale fraud scheme, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between 2011 and 2012, Zuno and others conducted a timeshare resale fraud scheme based in Puerto Vallarta, Mexico. Sales agents including co‑defendant Juan Montalbo, aka John Monte, conducted sales meetings to convince prospective customers to purchase a timeshare vacation package marketed under the names Platinum Access Program or World Luxury Destinations. If customers had existing timeshare properties, Montalbo assured them that another company, Continental Resources, would arrange for their sale. When the customers returned from Mexico, they were contacted by co-defendant Wayne York, aka Tim Hamick or Michael Halston, who claimed to represent companies named Property Marketing Group or Eagle Market Solution and claiming that a bona fide purchaser had been found and was ready to purchase their existing timeshares. Others were contacted directly by York without first giving their information to Montalbo.
According to court documents, York and others would then extract a series of upfront payments from the victims, which York claimed were required to be wired to bank accounts in Mexico in order for the guaranteed sale to be completed. York and the others would falsely claim that a buyer for the timeshare had already been located and that all the prepaid fees wired to Mexico were being held in escrow and would be refunded to the victims as soon as the transaction was completed. After the victims wired the money to Mexico, York and the others would break off all contact with them. According to court documents, Ramirez Zuno managed the Mexican bank accounts used in the fraud, trained co-conspirators on how to conduct the fraud, and managed the disbursement of the proceeds of the fraud.
The charges against Montalbo and York are only allegations; those defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an ongoing investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Matthew G. Morris is prosecuting the case.
Ramirez Zuno has been in custody since his arrest on April 14, 2016, in Miami, Florida. Montalbo and York have been released on bond. Montalbo and York are next scheduled to appear in court on June 6, 2017, for a further status hearing on their cases.
Ramirez Zuno is scheduled to be sentenced by U.S. District Judge John A. Mendez on June 27, 2017. Ramirez Zuno faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Fresno Housing Authority Employee Pleads Guilty to Receiving Bribes from Applicants for Housing BenefitsRead the Press Release
FRESNO, Calif. — Aryca Danieyelle Williams, 38, of Fresno, pleaded guilty today to two counts of extortion under color of official right, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Williams was a Housing Program Coordinator at the Fresno Housing Authority from 2007 through 2013. The Fresno Housing Authority is a state agency responsible for administering federal housing benefits programs, such as the Section 8 housing choice voucher program. To obtain housing benefits, applicants must put their names in a lottery system, which is supposed to randomly award benefits to qualified applicants. As a Housing Program Coordinator, Williams was responsible for managing the files of housing assistance applicants. She solicited bribe payments from housing authority applicants and promised to switch their names with the names of individuals who had been legitimately selected to receive housing benefits. In switching the names, Williams enabled the applicants to bypass the lottery system and immediately qualify to receive housing benefits. The bribe payments received by Williams included a $1,150 payment to her landlord and a $500 payment to her utility company. In total, Williams received bribe payments from 10 to 12 housing applicants.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Grant Rabenn is prosecuting the case.
Williams is scheduled to be sentenced on June 19, 2017, at 10:00 a.m. before U.S. District Judge Dale A. Drozd. Williams faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Fresno County Residents Indicted for Synthetic Drug Smuggling SchemeRead the Press Release
FRESNO, Calif. — A federal grand jury returned an eight-count indictment on Thursday against Terry Ford, 37, and Dawn Peters, 35, both of Clovis, charging them with distributing synthetic drugs, conspiracy, and money laundering, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Ford and Peters possessed with intent to distribute Dibutylone HCI, a controlled substance, and Alpha-PHP, an analogue of a controlled substance. The indictment further alleges that Ford and Peters conspired to launder money internationally by wiring money to China to promote the distribution of controlled substances or analogues.
This case is the product of an investigation by the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Internal Revenue Service-Criminal Investigation, and the U.S. Postal Inspection Service. Assistant U.S. Attorney Vincenza Rabenn is prosecuting the case.
If convicted, the defendants face 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.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Former Yuba City Police Officer Sentenced to 18 Months in Prison for Federal Programs BriberyRead the Press Release
SACRAMENTO, Calif. — Harminder Phagura, 37, of Yuba City, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to 18 months in prison for one count of federal programs bribery in connection with a drug trafficking scheme, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Harminder Phagura worked as a police officer for the Yuba City Police Department, which receives grant funds from a Federal program. During the course of his crime, Phagura exchanged sensitive information gained from his official position for money. Co‑defendant Gursharan Phagura transmitted this police-only information to a government source, who was posing as a cocaine trafficker.
On July 29, 2014, federal agents observed Gursharan Phagura meet with Harminder Phagura in a Yuba City Police vehicle. At the same time, Gursharan Phagura and the government source were exchanging text messages regarding the state of police presence in the area. Agents then caused an alert to be transmitted on the Yuba City Police Department’s dispatch system. Within a few minutes, the government source received text messages indicating, in coded language, that law enforcement was in the area.
Over the course of several undercover operations, the government source paid a total of $6,000 for the information.
At sentencing, Judge Burrell characterized Phagura’s conduct as reprehensible and as a breach of the public trust.
U.S. Attorney Talbert said: “When a police officer violates the public trust, the community suffers. My office takes seriously any allegation of official misconduct. We hope that this prosecution makes clear that no one is above the law – especially those who have taken an oath to protect the community.”
Co-defendant Gursharan Phagura is charged with possessing with intent to distribute cocaine. The charges are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt. His next court date is March 31, 2017.
This case is the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) with assistance from the Federal Bureau of Investigation and the Yuba City Police Department. Assistant United States Attorney Paul Hemesath is prosecuting the case.
Sacramento Woman Sentenced to 5 Years and 11 Months in Prison for Bank Fraud, ID Theft and Possession of Stolen MailRead the Press Release
SACRAMENTO, Calif. — In three separate Sacramento area cases involving the theft of mail for the purpose of committing identity theft, one defendant was sentenced and three pleaded guilty today, U.S. Attorney Phillip A. Talbert announced.
San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated: “Postal Inspectors worked closely with the U.S. Attorney’s Office and our partners in law enforcement to arrest and prosecute those individuals responsible for thefts of mail and Identity theft crimes committed against the public.”
2:16-cr-045 MCE
U.S. District Judge Morrison C. England Jr. sentenced Michele Reyes Serrano, 35, of Sacramento, to five years and 11 months in prison for bank fraud and attempted bank fraud, aggravated identity theft, and possession of stolen U.S. mail. According to court documents, between June 1, 2015, and January 21, 2016, Serrano and her husband, co-defendant Raleigh Figueras, 35, obtained personal and financial information from stolen U.S. mail and used the stolen bank account numbers, credit cards, and checks to get money, goods, and services at the expense of the banks. Surveillance cameras caught the defendants cashing checks or making purchases at Sacramento-area Target and Wal‑Mart stores.
On January 21, 2016, agents found in the defendants’ residence stolen mail and stolen and counterfeit identification documents with the true identification information of a victim. Serrano admitted to stealing U.S. mail on a regular basis. Figueras pleaded guilty on February 9, 2017, and is scheduled to be sentenced on July 13, 2017.
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Orangevale residents Patricia Ann Anchondo, 38, and Angel Marie Galvin, 27, pleaded guilty today to bank fraud, aggravated identity theft, and possession of stolen U.S. mail. Anchondo additionally pleaded guilty to possession with intent to distribute methamphetamine. Anchondo is scheduled to be sentenced May 25, 2017, and Galvin is scheduled to be sentenced on May 18, 2017.
According to court documents, between March 23, 2016, and November 17, 2016, Anchondo and Galvin stole mail and used the personal and financial information of the mail theft victims to open credit card accounts and to take over existing bank accounts owned by the victims. When a search was conducted at the defendants’ residence, law enforcement agents found stolen U.S. mail, profiles of victims’ information, bank records for a church, and numerous identification documents of a victim. The defendants confessed that they stole mail from the church and used the church’s bank account number to make payments to other victim credit cards to keep the cards’ associated lines of credit active for further unauthorized transactions.
Galvin admitted she drove to various counties and stole U.S. mail in order to take over mail theft victims’ identities. Anchondo and Galvin each stated that they would apply for bank accounts and credit cards online to go shopping and to buy gift cards, which the two would then sell online. Anchondo additionally confessed to law enforcement that she possessed methamphetamine, and evidence found in her home and on her phone indicated that she also sold the drug.
2:17-cr-035 MCE, 2:16-cr-147 MCE
Shellby Moore, 29, of Sacramento, pleaded guilty today to aggravated identity theft and possession of methamphetamine. According to court documents, Moore and co-defendant Trevor Lichnock-Gembe, 28, of Sacramento, obtained stolen mail and used the personal information of victims to open checking and savings accounts and to obtain debit cards. After opening the accounts, the defendants used them to deposit stolen, counterfeit, and altered checks. Surveillance cameras at various locations showed the defendants opening accounts and making phony deposits at banks, making purchases with the fraudulent debit cards, and breaking into mail boxes at apartment complexes.
On April 20, 2016, law enforcement agents conducted a probation search where Moore lived with Lichnock-Gembe. Inside the residence, officers seized stolen property, stolen credit and debit cards, stolen identifications, passports, and stolen U.S. mail. Moore pleaded guilty to possessing methamphetamine on March 1, 2017, while housed as a federal inmate in the Nevada County Jail. Lichnock-Gembe has pleaded guilty to bank fraud, aggravated identity theft, and unlawful possession of five or more identification documents and is scheduled to be sentenced on April 6, 2017. Moore is scheduled to be sentenced on June 8, 2017.
These cases are the product of investigations by the United States Postal Inspection Service with assistance from the Sacramento County Probation Department, the Sacramento County Sheriff’s Office, and the Placer County Sheriff’s Office. The Postal Inspection Service conducted these investigations with assistance of its Narcotic and Economic Crimes Investigations Task Force (NECI). NECI is a partnership between local and federal law enforcement to combat theft and unlawful use of the U.S. Mail. The Placer County District Attorney’s Office and Sutter County Sheriff’s Office have each dedicated law enforcement personnel to the task force.
Assistant U.S. Attorney Michelle Rodriguez prosecuted each of these cases.
The statutory maximum penalties are 30 years in prison and a $1 million fine for bank fraud; two years in prison consecutive to any other sentence and a $250,000 fine for aggravated identity. theft; five years in prison and a $250,000 fine for possession of stolen U.S. mail, five to 40 years in prison and a $2 million fine for possession of methamphetamine with intent to distribute, and one year in prison and a $100,000 fine for possession of methamphetamine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Sacramento Nail Salon Arsonist Sentenced to 5 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — Paul La, 59, of Sacramento, was sentenced today by United States District Judge Morrison C. England Jr. to five years in prison, U.S. Attorney Phillip A. Talbert announced.
According to his plea agreement, in 2011, La set fire to his business, Golden Nails & Hair, located at 8335 Folsom Boulevard in Sacramento, using acetone as an accelerant. After burning down the business, La submitted fraudulent insurance claims based on purported losses from the fire.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Michael D. Anderson and Amanda H. Beck prosecuted the case.
Sacramento Man Sentenced to 10 Years in Prison for Transportation Across State Lines for Illegal Sexual ActivityRead the Press Release
SACRAMENTO, Calif. — Brandon Lamont Walton, 38, of Sacramento, was sentenced today by United States District Judge Morrison C. England Jr. to 10 years in prison for transportation for illegal sexual activity, United States Attorney Phillip A. Talbert announced.
According to court documents, in June 2013, Walton contacted an 18-year-old female using an online social networking website. Soon thereafter, they met in person, and he transported her from Washington state to California where he posted online advertisements that offered her for paid sexual services. In July of 2013, he transported her to New Mexico and Texas, where he continued that activity. In mid-July, the victim’s mother contacted police in Texas, and they helped to arrange the victim’s return to her mother. At an earlier sentencing hearing, the district court determined that the victim credibly testified that the defendant sexually assaulted her during the course of his crime.
This case was the product of an investigation by the Federal Bureau of Investigation’s Child Exploitation Task Force, which includes FBI agents and detectives from the Sacramento Police Department. Assistant United States Attorneys Michele Beckwith and Jason Hitt prosecuted the case.
Sacramento Area Drug Trafficker Sentenced to 34 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Morrison C. England Jr. sentenced Isreal “Puck” Washington, 43, of Sacramento, today to 34 years in prison for trafficking heroin, cocaine, cocaine base, and methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents and evidence presented in July 9, 2015, at a five-day trial, Washington and oversaw the distribution of thousands of doses of crack cocaine, heroin, methamphetamine, and cocaine between 2006 and 2013 in Sacramento. Washington used various businesses as a front to conceal and disguise his extensive drug trafficking and operated a large “crew” of gang members as his drug distribution organization. During an investigation in 2010 and 2011, one of Washington’s businesses, Wet Ways Auto Body and Paint Shop, was identified as a place where Washington and his associates conducted drug deals.
In 2012, an undercover operative bought heroin and methamphetamine from Washington’s organization. The drug traffickers operating under Washington included co‑defendants Deyonte Spears, 29, of Oakland, and Sacramento residents Tyrone Weathersby, 48; Anthony Joaquin Sanchez, 32; and Myron Meadows, 45. On May 21, 2013, DEA agents served search warrants at two Sacramento-area stash pads controlled by Washington. Agents seized a stolen firearm and more than three pounds of heroin at stash pads maintained by the group.
U.S. Attorney Talbert stated: “Washington oversaw an extensive drug trafficking operation for several years and is responsible for the distribution of large amounts of dangerous drugs into our community. That conduct has devastating effects on the lives of those who abuse such drugs, their family members, and the community as a whole. The sentence handed down today appropriately reflects the seriousness of Washington's crime and the harm he caused. I want to thank the DEA, the Sacramento County Sheriff’s Office, the Sacramento Police Department, the Vallejo Police Department, and the Sacramento County District Attorney’s Office, whose hard work made this prosecution possible.”
“Motivated by greed and power, Washington led a gang-affiliated drug trafficking ring concealing criminal activity through a variety of his businesses,” said DEA Special Agent in Charge John J. Martin. “This type of behavior terrorizes a community and rips at its sense of security. Washington’s 34-year sentence pays a debt to society that he clearly owes.”
Co‑defendant Spears was sentenced on July 16, 2015, to 10 years in prison; co‑defendant Weathersby was sentenced to 18 months in prison on October 24, 2014; co‑defendant Sanchez was sentenced on December 17, 2015, to five years and 10 months in prison; and co‑defendant Meadows was sentenced on September 10, 2015, to three years in prison.
This case was the product of an investigation by the Drug Enforcement Administration, the Sacramento County Sheriff’s Office, the Sacramento Police Department, the Vallejo Police Department, and the Sacramento County District Attorney’s Office. Assistant U.S. Attorneys Jason Hitt and Jill M. Thomas prosecuted the case.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) program that 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.
When prosecuted in federal court, drug traffickers typically receive much harsher sentences. In addition to the longer sentences imposed, unlike state court prisoners who are released early on parole, there is no early release on parole in the federal system.
Former Attorney and U.S. Marine Sentenced to 40 Years in Prison in Vallejo KidnappingRead the Press Release
SACRAMENTO, Calif. — Matthew Muller, 39, of South Lake Tahoe, was sentenced today to 40 years in prison by U.S. District Judge Troy L. Nunley, United States Attorney Phillip A. Talbert announced.
According to court documents, between 3:00 a.m. and 5:00 a.m. on March 23, 2015, in Vallejo, Muller broke into the Mare Island home of Aaron Quinn and Denise Huskins. Armed with a stun gun and a simulated firearm with a laser sight, Muller ordered the victims to lie still while he bound them, blindfolded them, and forced them to drink a sedative. Muller played the victims a prerecorded message, which threatened that any noncompliance would be punished by face cutting or electric shock. Muller then placed Ms. Huskins in the trunk of a car and drove her to his residence in South Lake Tahoe. Once there, Muller kept her under his complete control, at times bound and blindfolded. Muller sent Mr. Quinn two emails demanding ransom for a total of $17,000. Muller released Ms. Huskins on March 25, 2015 in Huntington Beach, with no ransom ever being paid.
During and after the kidnapping, Muller sent emails to a reporter in San Francisco that falsely claimed, among other things, that the kidnapping had been carried out by a group of elite criminals who were perfecting their kidnapping-for-ransom tactics.
The case remained unsolved until after June 8, 2015, when Dublin Police Services of the Alameda County Sheriff’s Department arrested Muller and searched his South Lake Tahoe residence. The officers had been investigating a home invasion burglary, which led them to Muller’s residence where they located and seized evidence related to the Vallejo kidnapping.
The FBI then conducted its own follow-up investigation and searches that included Muller’s South Lake Tahoe residence, a vehicle in Reno, two other residences, and Muller’s Vallejo storage locker. The storage locker, which contained aerial drones referred to in Muller’s email to the media, had been located by an officer of the Vallejo Police Department.
FBI analysis of Muller’s computers uncovered a sound recording that simulated people whispering to each other and a sound recording consistent with the instructions given to Mr. Quinn and Ms. Huskins. FBI analysts also discovered video recordings of Muller together with Ms. Huskins in his South Lake Tahoe residence. She was blindfolded and fully under Muller’s control. FBI analysts also discovered video recordings of Muller in his South Lake Tahoe residence arranging cameras in a bedroom, trying out their viewing angles, and then twice sexually assaulting the blindfolded Ms. Huskins.
In sentencing Muller, Judge Nunley referred to the defendant’s actions as heinous and held him responsible for his actions.
U.S. Attorney Talbert said, “The sentence imposed today reflects the egregiousness of Muller’s conduct in this case. Muller had advantages in life that most people only dream of, yet he used his considerable intelligence to plan and execute the physical assault and psychological torture of two innocent strangers. It is difficult to imagine the level of suffering that Muller inflicted on his victims. The sentence handed down today takes into account that suffering and strives to ensure that Muller will never again commit such crimes.”
U.S. Attorney Talbert also said, “This serious violent crime was solved because Alameda County authorities responded so effectively to the Dublin burglary and then provided the evidence necessary for the effective federal investigation and prosecution of this case. The quality of local and federal investigative work is reflected in Muller’s two criminal convictions in Alameda County and in the Eastern District of California. I am grateful for the outstanding cooperation between the FBI, the Alameda County Sheriff’s Department, the Alameda County District Attorney, and the Vallejo Police Department.”
This case was the product of an investigation by the FBI, the Dublin Police Services of the Alameda County Sheriff’s Department, and the Vallejo Police Department. Assistant U.S. Attorneys Matthew D. Segal and Heiko P. Coppola prosecuted the case.
Man Pleads Guilty to Marijuana Cultivation Operation on Federal LandRead the Press Release
FRESNO, Calif. — Carlos Piedra-Murillo (“Piedra”), 30, a native and citizen of Mexico, entered a guilty plea today to conspiring to manufacture, distribute, and possess with intent to distribute marijuana in connection with a large-scale cultivation operation located in the Domeland Wilderness area in Tulare County in the Sequoia National Forest, United States Attorney Phillip A. Talbert announced. In pleading guilty, Piedra also agreed to make restitution to the U.S. Forest Service for the damage to public land and natural resources, including a prehistoric Tubatulabal Native American archaeological site, caused by his cultivation activities.
According to court documents, Piedra conspired with Juan Carlos Lopez, 32, of Lake Elsinore, California, Rafael Torres-Armenta (“Torres”), 30, and Javier Garcia-Castaneda (“Garcia”), 38, all citizens of Mexico, to cultivate marijuana in the Domeland Wilderness. The Domeland Wilderness is a federally-designated wilderness area about 55 miles northeast of Bakersfield and is known for its many granite domes and unique geologic formations. Law enforcement officers located over 8,000 marijuana plants at that location and seized fifteen pounds of processed marijuana, a .22 caliber rifle, a pellet rifle, and numerous rounds of .22 caliber ammunition.
The marijuana cultivation operation caused extensive environmental damage. It covered about 10 acres and was within the burned area of the 2000 Manter Fire. Some of the new vegetation and trees that sprouted after the fire had been cut and trimmed to make room for the marijuana plants. Water was diverted from a tributary stream of Trout Creek that supports trout. Fertilizer and pesticides, including illegal zinc phosphide, a highly toxic rodenticide from Mexico, were found at the site. Large piles of trash were found near the campsite. The northernmost area of the operation caused extensive damage to a large prehistoric Tubatulabal archaeological site. Holes were dug in the middle of the archaeological site and artifacts were found scattered on the surface among the marijuana plants.
This case is the product of an investigation by the U.S. Forest Service, Bureau of Land Management, 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.
Piedra is scheduled for sentencing on June 5, 2017 in federal court in Fresno. Piedra faces faces a maximum statutory penalty of twenty years in prison and a $1,000,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges as to the co-defendants are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
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Los Angeles Man Convicted of Running Multimillion Dollar Foreclosure Rescue Scam in Bakersfield, Visalia and SalinasRead the Press Release
FRESNO, Calif. — After a four-day trial, a federal jury found Martin Calzada, 29, of Norwalk, guilty today of one count of conspiracy to commit mail fraud and eight counts of mail fraud affecting a financial institution, United States Attorney Phillip A. Talbert announced. The trial was held before United States Chief District Judge Lawrence J. O'Neill.
According to evidence presented at trial, Calzada conspired to defraud homeowners facing foreclosure. Calzada and other employees of Star Reliable Mortgage, which had offices in Bakersfield, Visalia, and Salinas, targeted distressed homeowners with a fraudulent “loan elimination” scheme. Between approximately August 2010 and October 2011, Star Reliable charged clients an upfront fee for its services – ranging from $2,500 up to $4,500 – as well as monthly fees, based on false promises that the clients could own their homes “free and clear” as a result of Star Reliable’s services. Clients paid hundreds of thousands of dollars to Star Reliable and at least $300,000 was transferred from Star Reliable into Calzada’s bank accounts. In furtherance of the scheme, Calzada and other employees at Star Reliable filed at county recorders’ offices fraudulent documents on behalf of the homeowner-clients, which purported to replace the legitimate property trustees with fictitious trusts affiliated with the defendant and Star Reliable, all in an effort to “cloud title” and halt or stall the foreclosure process. Additionally, Calzada, and other employees working at his direction told Star Reliable clients to stop paying their mortgages. They also falsely represented that Star Reliable clients had one million dollars in a U.S. government account that could be used to pay-off a homeowner’s mortgage.
According to court documents, instead of owning their homes “free and clear,” many of Star Reliable’s clients lost their homes in foreclosure. The scheme caused more than 100 homeowner-clients to pay approximately $875,000 to Star Reliable and lending institutions to lose more than $4 million.
This case is the product of an investigation by the Federal Bureau of Investigation and the Tulare County District Attorney’s Office. Assistant United States Attorneys Christopher D. Baker and Patrick J. Suter are prosecuting the case.
Calzada was remanded into custody following the announcement of the verdict. In a related case in December 2014, co-conspirators Juan Ramon Curiel, 38, of Visalia, and Santiago Palacios-Hernandez, 47, of Salinas, pleaded guilty to conspiracy to commit mail fraud. Curiel additionally pleaded guilty to one count of bankruptcy fraud. They are scheduled to be sentenced by Judge O’Neill on April 10, 2017.
Calzada is scheduled to be sentenced by Judge O'Neill on June 5, 2017. Calzada 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.
El Dorado Hills Man Pleads Guilty to Tax EvasionRead the Press Release
SACRAMENTO, Calif. — Kamyar Soltani, 47, of El Dorado Hills, pleaded guilty today to tax evasion, United States Attorney Phillip A. Talbert announced.
According to court documents, Soltani attempted to evade or defeat the assessment of his tax obligations for the tax years of 2005, 2006, and 2007. Soltani worked in the used car sales industry and was well-paid for his work. In each of the tax years in question, Soltani received income subject to taxation of between approximately $229,000 and $296,000, and failed to file timely income tax returns for the tax years of 2005 and 2006. He ultimately filed tax returns for all three tax years in March 2008, but those returns were false in that they only reported income of approximately $14,000 to $18,500 in each year. As a result of his conduct and tax filings, Soltani evaded $150,446 in federal income taxes, paid no taxes for those years, and in each year received tax refunds of over $2,000 by falsely claiming that he was entitled to an Earned Income Tax Credit. In entering his guilty plea, Soltani admitted he acted willfully to evade taxes, in part, through his filing of false tax returns and by receiving his income in the form of cash and through payments made to third parties.
This case was the product of an investigation by Internal Revenue Service, Criminal Investigation. Assistant United States Attorneys Nirav K. Desai and Christopher S. Hales are prosecuting the case.
Soltani is scheduled to be sentenced by Judge Garland E. Burrell Jr. on May 26, 2017. Soltani faces a maximum statutory penalty of five years in prison and a $100,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. Under the terms of his plea agreement, Soltani must pay just over $150,000 towards restitution prior to sentencing.
Sacramento Men Indicted for Firearm Trafficking OffensesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 24-count indictment today against Sacramento residents James Smallwood, 25, and John Smallwood, 45, charging them with firearm-trafficking offenses, U.S. Attorney Phillip A. Talbert announced.
According to court documents, James Smallwood and John Smallwood conspired to manufacture and sell firearms without a license. Over the course of eight transactions between September 28, 2016, and February 9, 2017, James Smallwood sold 20 firearms for $31,960. Seventeen of these firearms were homemade AR-15 style rifles and pistols, and seven of these homemade firearms were short-barreled rifles. John Smallwood manufactured the AR-15 style firearms and accompanied James Smallwood on one of the sales. On February 22, 2017, James Smallwood was apprehended while en route to sell 14 additional homemade AR-15 style short-barreled rifles for $28,000.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Owen Roth is prosecuting the case.
If convicted, both defendants face maximum statutory penalties of five years in prison and a $250,000 fine for the conspiracy count and for the count of unlawful manufacturing and dealing firearms and 10 years in prison and a $10,000 fine for each count of unlawful possession of short-barreled rifles. 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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Lodi Man Pleads Guilty to Distributing Child PornographyRead the Press Release
SACRAMENTO, Calif. — Jarod Perdichizzi, 30, of Lodi, pleaded guilty today to distribution of child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in July 2016, Perdichizzi used the Kik messenger service to chat online with someone who, unbeknownst to Perdichizzi, was an undercover federal agent. Perdichizzi sought information about how he could become sexually active with a minor female and also emailed images of minors engaged in sexually explicit conduct to the undercover agent. After executing a federal search warrant at Perdichizzi’s residence, agents found a thumb drive containing 88 images and nine videos of child pornography. Perdichizzi has been in custody since his arrest on July 28, 2016.
This case is the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Matthew D. Segal is prosecuting the case.
Perdichizzi is scheduled to be sentenced by U.S. District Judge John A. Mendez on June 13, 2017. Perdichizzi faces a mandatory minimum sentence of five years in prison and a maximum penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Fresno County Man Sentenced to 3 Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
FRESNO, Calif. — U.S. District Judge Lawrence J. O’Neil sentenced Gary Lee Ortiz, 42, of Auberry, today to three years and one month in prison for being a felon in possession of a handgun with an obliterated serial number, U.S. Attorney Phillip A. Talbert announced.
Ortiz was also ordered to pay $5,200 in restitution to the U.S. Forest Service for damaging public land and natural resources as a result of marijuana cultivation activities on and near his residence in the Mill Creek area of Auberry, California.
According to court documents, on June 8, 2015, law enforcement officers found a large marijuana cultivation operation in the Sierra National Forest adjacent to Ortiz’s property located about four and one half miles from Shaver Lake. During a follow-up investigation of Ortiz’s property, agents seized a total of four firearms. Three of the firearms were found in and around a trailer on Ortiz’s property, and one of the firearms was a Herbert Schmidt, model E 15, .22 LR caliber revolver with the serial number obliterated. At the time, Ortiz was a convicted felon on probation for carrying a concealed weapon in a vehicle.
Law enforcement officers eradicated 12,302 marijuana plants from public land and 444 marijuana plants from Ortiz’s property.
This case was the product of an investigation by the U.S. Forest Service, the Bureau of Alcohol, Tobacco Firearms and Explosives, the California Department of Fish and Wildlife, the Fresno County Sheriff’s Office, and the Fresno County Probation. Assistant U.S. Attorney Karen Escobar prosecuted the case.
Chico Man Sentenced to 10 Years in Prison for Transportation of Child PornographyRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Garland E. Burrell Jr. sentenced Mark McLeod Wygant, 46, of Chico, today to 10 years in prison for transportation of child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, from early 2011 to early 2012, Wygant surreptitiously filmed a child on numerous occasions using a hidden cellphone and hidden “spy cameras” that he had purchased for that purpose. He then transported those videos and photos from a location in Butte County to South Lake Tahoe, where he worked at the time as a South Lake Tahoe Fire Department captain. The charges do not relate to any conduct committed during the course of his interaction with the public during his job duties. Wygant has been in custody since his arrest on January 29, 2015.
This case was the product of an investigation by the Federal Bureau of Investigation and the South Lake Tahoe Police Department. Assistant U.S. Attorney Matthew G. Morris prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Rancho Cordova Man Found Guilty of Receipt of Child PornographyRead the Press Release
SACRAMENTO, Calif. — Today, after a one-day bench trial, U.S. District Judge Garland E. Burrell Jr. found Christopher Geanakos, 30, of Rancho Cordova, guilty of one count of receipt of child pornography, U.S. Attorney Phillip A. Talbert announced.
According to evidence presented at trial, law enforcement identified a computer at Geanakos’s residence offering images of child pornography through a file-sharing network. During the execution of a search warrant, law enforcement identified Geanakos’s desktop computer as the source for the online images. Law enforcement subsequently performed a forensic examination of this computer and confirmed that multiple images and movies depicting child pornography had been downloaded onto the computer between 2010 and 2013, including images that depicted infant and toddler victims.
This case is the product of an investigation by the Internet Crimes Against Children Task Force. Assistant U.S. Attorneys Audrey B. Hemesath and Shelley D. Weger are prosecuting the case.
Geanakos is scheduled to be sentenced by Judge Burrell on May 19, 2017. Geanakos faces a minimum of five years in prison and a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Two Plead Guilty to Marijuana Cultivation in Giant Sequoia National MonumentRead the Press Release
FRESNO, Calif. — Audencio Pineda-Gaona, 37, and Candelario Jimenez-Ramirez, aka Candelario Rodriguez-Jimenez, 55, both of Mexico, pleaded guilty today to conspiring to manufacture, distribute and possess with intent to distribute and manufacturing marijuana in the Sequoia National Forest, U.S. Attorney Phillip A. Talbert announced.
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, but the other men got away. 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 due to habitat loss. Agents also found harmful banned pesticides and large amounts of trash. In pleading guilty, the defendants agreed to pay $5,252 in restitution to the U.S. Forest for the damage caused by their marijuana cultivation activities.
This case is 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 U.S. Attorney Karen Escobar is prosecuting the case.
The defendants were previously ordered detained as a flight risk and danger to the community. The men are scheduled for sentencing on May 22, 2017. They face a maximum statutory penalty of 20 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Roseville Woman Sentenced to 9.5 Years in Prison for Mortgage Fraud Scheme and Identity TheftRead the Press Release
SACRAMENTO, Calif. — Senior U.S. District Judge Garland E. Burrell Jr. sentenced Alla Samchuk, 45, of Roseville, to nine and a half years in prison for a mortgage fraud scheme and obstruction of justice, U.S. Attorney Phillip A. Talbert announced.
A federal jury returned a verdict in August 2016 finding her guilty of six counts of bank fraud, six counts of making a false statement to a financial institution, one count of money laundering, and one count of aggravated identity theft.
According to the evidence presented at trial, from 2006 through 2008, Samchuk, a licensed real estate salesperson, orchestrated a mortgage fraud scheme involving three properties in the Sacramento area using straw buyers. Two of the houses were purchased so that Samchuk herself could occupy them. She lacked the ability to qualify for a loan, so she instead recruited straw buyers to apply for the loans in their names. Samchuk caused the submission of loan applications containing false representations of income, employment, assets, and a false indication that the straw buyers would occupy the homes as their primary residence.
A second objective of the scheme was to obtain HELOC (home equity line of credit) funds. According to evidence at trial, on two of the properties, Samchuk diverted or attempted to divert HELOC funds to her own benefit. Samchuk caused the HELOC loans to fund by submitting false statements and documents to the lender regarding the qualifications of the straw buyers.
The scheme involved two properties in Roseville and one in El Dorado Hills. In 2007, Samchuk filed an application for a HELOC on one of the properties without the straw buyer’s knowledge or consent. To obtain the HELOC, she forged the signature of the straw buyer on a short form deed of trust that she caused to be notarized and recorded. The stated purpose of the HELOC was home improvement, but once the line of credit was funded, Samchuk quickly diverted all of the funds to her own use, spending the proceeds on a Lexus and the repayment of a substantial personal debt.
Samchuk received a higher sentence because the district court found that she obstructed justice when she threatened a witness not to report the crime to federal authorities. The court found that Samchuk’s statements to the witness constituted a threat that Samchuk purposefully calculated to dissuade the witness from alerting law enforcement about the fraud.
This case was the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant U.S. Attorneys Audrey B. Hemesath and Andre M. Espinosa prosecuted the case.
Fairfield Man Pleads Guilty to Possessing Gun as a FelonRead the Press Release
SACRAMENTO, Calif. — Markell Darrell Davis, 30, of Fairfield, pleaded guilty today to being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on February 17, 2014, Davis was involved in a shooting in a residential neighborhood in Fairfield. Davis, a convicted felon who was prohibited by law from possessing a firearm, possessed and fired a .40-caliber Glock semi-automatic pistol, injuring a bystander.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fairfield Police Department. Assistant U.S. Attorney Brian A. Fogerty is prosecuting the case.
Davis is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on June 29, 2017. Davis faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Man Posing as a “Coyote” Sentenced to 6.5 Years in Prison for Scheme to Defraud Undocumented Immigrants and Their RelativesRead the Press Release
FRESNO, Calif. — Martin Carranza-Sanchez, 45, of Mexico, was sentenced today by U.S. District Judge Dale A. Drozd to a six years and six months in prison and three years of supervised release for conspiracy to commit wire fraud in a scheme to defraud Mexican citizens seeking to enter the U.S. without documentation and their relatives living in the United States, U.S. Attorney Phillip A. Talbert announced.
According to his plea agreement and other court documents, between January 2010 and January 21, 2016, Carranza-Sanchez posed as an undocumented immigrant smuggler (also known as a “coyote”) who falsely promised undocumented immigrants and their U.S.‑resident relatives that he would deliver the immigrants into the United States for a fee. Carranza-Sanchez directed the U.S. residents to wire the fee to various bank accounts in the Eastern District of California, which he and his co-conspirators ultimately collected.
Carranza-Sanchez, however, never intended to help the immigrants enter the United States without being detected. In fact, on multiple occasions, after the immigrants arrived at the Mexico location designated by Carranza-Sanchez, his co-conspirators detained them against their will until their relatives wired Carranza-Sanchez’s fee. Also, on multiple occasions, Carranza-Sanchez and his co-conspirators told the U.S. residents that the immigrants would be harmed if the U.S. residents did not pay immediately. In many instances, once the relatives wired the fee, Carranza-Sanchez instructed the immigrants to cross the border without him, at which point the immigrants were immediately apprehended by U.S. Border Patrol.
The investigation revealed that Carranza-Sanchez and his co-conspirators defrauded U.S. residents of approximately $95,000 as a result of their scheme. He was ordered today to repay that amount to the victims of his crimes.
U.S. Attorney Talbert stated, “While smuggling undocumented immigrants is a crime, falsely claiming to do so in order to obtain payments from relatives in the United States is also a crime—fraud. Carranza-Sanchez’s fraud scheme targeted the immigrants’ relatives living in the United States, and he exploited them further by threatening to harm the immigrants if the fee wasn’t paid immediately. This criminal conduct is unacceptable, and we will continue to investigate and prosecute those who engage in it.”
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Angela L. Scott prosecuted the case.
Merced County Man Admits Smuggling Cash from Marijuana Proceeds into MexicoRead the Press Release
FRESNO, Calif. — On Friday, February 17, 2017, Arnulfo Huerta-Cornejo, 32, of Delhi, pleaded guilty to conspiring to smuggle bulk cash, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between March 2014 and August 2015, Huerta-Cornejo was involved with the cultivation of marijuana on federal lands. During that time, he accumulated approximately $16,000 cash from the sale of marijuana, hid that cash in a vehicle, and arranged to have the cash smuggled into Mexico. Applicable federal regulations require reporting when $10,000 or more cash is taken out the United States.
This case is the product of an investigation by the U.S. Forest Service, the Madera County Sheriff’s Department and the Merced County Sheriff’s Department. Assistant U.S. Attorney Kevin Rooney is prosecuting the case.
Huerta-Cornejo is scheduled to be sentenced by U.S. District Judge Lawrence J. O'Neill on May 22, 2017. Huerta-Cornejo faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Roseville Man Sentenced to over 21 Years in Prison for Soliciting Minors for Sex Using Phone Chat ApplicationRead the Press Release
SACRAMENTO, Calif. — Jacob Anthony Mora, 33, of Roseville, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to 21 years and 10 months in prison and lifetime supervision upon release, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Mora used the online application, Kik Messenger, to encourage girls between the ages of 14 and 17 to send him sexually explicit photographs, engage in sexually explicit conversations, and to meet him to have sex. Mora would also send obscene images of himself to underage girls he met online. In some cases, Mora represented that he was younger than his actual age, claiming to be 19 years old, when exchanging messages with his victims. When arrested, Mora admitted that he had met four underage girls for sex, and that he liked chatting with minor girls since they were easy to get and naive.
This case was the product of an investigation by the Federal Bureau of Investigation and the Rocklin and Roseville Police Departments. Assistant U.S. Attorney Michael D. Anderson 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 U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Sacramento Gun Manufacturer Sentenced to Prison for Manufacturing and Assisting Others to Manufacture AR-15 RiflesRead the Press Release
SACRAMENTO, Calif. — Daniel Albert Crowninshield, 54, of Sacramento, was sentenced today to three years and five months in prison for unlawfully manufacturing and dealing in firearms and possession of an unregistered machinegun, U.S. Attorney Phillip A. Talbert announced.
In sentencing Crowninshield, U.S. District Judge Troy L. Nunley referred to his actions as a “brazen attempt to circumvent the law.” He was ordered to self-surrender on April 13, 2017.
U.S. Attorney Talbert stated: “The unregulated manufacture and sale of high-capacity firearms is a serious threat to public safety. We will continue to investigate and prosecute unlicensed gun dealers who circumvent the law.”
“If individuals neglect to follow federal firearms laws, ATF has the responsibility to investigate these activities because it is ATF's highest priority to safeguard the public it serves,” said Special Agent in Charge Jill A. Snyder. “ATF enforces the federal laws and rules governing the manufacturing of firearms. When ATF receives information on the illegal manufacture of firearms, it investigates and has the authority to promulgate rules and regulations to implement those laws. Daniel Crowninshield, aka Dr. Death, owned and operated a machine shop where he allowed customers with unknown backgrounds to use his machinery to unlawfully manufacture firearms for profit. That activity posed a very dangerous threat to the safety of our communities.”
According to court documents, Crowninshield, who was also known by his online moniker “Dr-Death,” operated an unlicensed firearms manufacturing business out of C&G Tool, a metal shop in North Sacramento. Using sophisticated computer-controlled machines, Crowninshield manufactured parts for AR-15s and other firearms.
Many individual firearm components are not subject to regulation by ATF and can be bought and sold without reporting the sales and without requiring a background check. One such part is a metal casting of an incomplete “lower receiver” called a “blank.” The blank can be converted into a lower receiver, which is the part of an AR‑15 that contains a trigger, firing pin, and other parts, to form a functioning firearm. Once the blank is milled into a completed lower receiver using a drill press or automated machine, it is considered a firearm and it is subject to federal regulation.
Generally, the manufacturing at C&G Tool would proceed as follows: prospective gun buyers would purchase an AR-15 blank and take it to C&G Tool where a skilled machinist would mill the blank into an AR-15 lower receiver. According to federal law, a person may manufacture a firearm for personal use without including a serial number on the firearm, provided that the firearm is not sold or transferred to another person. Otherwise, to manufacture a firearm requires a license from ATF, and a firearm that is transferred to another person must bear a serial number.
According to court documents, in order to create the pretext that C&G customers were building their own firearms, the skilled machinist would have the customer press a button or put his or her hands on a piece of machinery so that the customer could claim that the customer, rather than the machinist, made the firearm.
Crowninshield advertised his services on at least one online firearm enthusiast forum. This website mainly consists of forums where people ask and answer questions related to firearms. Using the moniker “Dr-Death,” he was a prolific poster on the website. Additionally, other members frequently posted about Dr-Death, including review of service provided and recommending that other users visit his shop.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the California Department of Justice’s Bureau of Firearms with the assistance of the Sacramento Police Department, the Sacramento County Sheriff’s Department, and California Highway Patrol. Assistant U.S. Attorneys Justin Lee and Matthew Yelovich prosecuted the case.
Crowninshield was one of several Sacramento-area individuals involved in manufacturing AR-15 style firearms. On December 9, 2016, in a related case, Emiliano Cortez-Garcia (2:13-cr-353-GEB) was sentenced to five years in prison for manufacturing AR-15 firearms and a concurrent six-year prison term for possession of an unregistered firearm and possession of a machinegun.
Auburn Man Indicted for Producing Child PornographyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Christopher Lee, 64, of Auburn, charging him with the production of child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Lee used a webcam to produce child pornography and share the video with an individual who lived in England.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Placer County Sheriff’s Department. Assistant U.S. Attorney Lee S. Bickley is prosecuting the case.
Lee has remained in custody since his arrest on February 6, 2017.
If convicted, Lee faces a maximum statutory penalty of 30 years in prison for each count and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Sierra Nevada Corporation Pays $14.9m to Settle Allegations of Improper Contract BillingsRead the Press Release
SACRAMENTO, Calif. — Sierra Nevada Corporation (SNC) has paid $14.9 million to resolve allegations that it violated the federal False Claims Act when it knowingly misclassified certain costs, resulting in inflated overhead rates paid to SNC pursuant to various government contracts, U.S. Attorney Phillip A. Talbert announced.
SNC is a Nevada corporation that provides services to agencies of the United States pursuant to various defense and space contracts. The improper charges resolved here resulted from SNC misclassifying certain direct contract costs and Manufacturing and Production Engineering costs as Independent Research and Development (IR&D) costs, and charging certain IR&D costs in the wrong cost accounting period. This improper characterization of costs artificially inflated General & Administrative overhead rates paid to SNC across its federal contracts and resulted in overcharging federal agencies. The government relies on contractors to accurately classify both the nature and timing of contract costs in order to properly calculate overhead rates and appropriately pay for work on government programs.
“This settlement illustrates our commitment to protect the integrity of federal procurement contracting,” said U.S. Attorney Phillip A. Talbert. “We will hold federal contractors to the highest standards of accuracy to ensure that federal agencies are not overcharged for products and services.”
“The integrity of our procurement systems is required by the American public, who demand that tax dollars are used responsibly,” said Chris Hendrickson, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), Western Field Office. “DCIS and our law enforcement partners are committed to protecting precious resources needed to support our soldiers, sailors, airmen and Marines.”
This case was handled by Assistant U.S. Attorney Catherine J. Swann, with assistance from the Defense Contract Management Agency, the Defense Contract Audit Agency, the National Aeronautics and Space Administration, and DCIS. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Sacramento Man Sentenced to 4 1/2 Years in Prison for Bank Fraud and Aggravated Identity TheftRead the Press Release
SACRAMENTO, Calif. — Yasir Mehmood, 45, of Sacramento, was sentenced on Tuesday by U.S. District Judge John A. Mendez to four years and six months in prison for bank fraud and aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Mehmood was an information technology professional who was hired in 2011 to fix the computer systems at a Marin County-based eyeglass retailer. Months later, long after his business relationship with the retailer ended, and without authorization, he accessed hundreds of the retailer’s customer records, which included credit and debit card numbers, associated security codes, and personal identification information (names, telephone numbers, addresses and email addresses). Mehmood used these customer records to purchase products and gift cards and to process fraudulent merchant transactions with payments transferred to bank accounts controlled by him. Mehmood also fraudulently registered websites and made false online job postings to capture personal and financial information of online purchasers and job seekers.
San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated, “We are working closely with the U.S. Attorney’s Office and our partners in law enforcement to arrest and prosecute those responsible for complex identity fraud schemes and to protect postal customer’s mail and personal information from theft.”
In 2013, while on pretrial release, Mehmood cut his ankle monitor and fled from authorities before being arrested by the Sacramento County Sheriff’s Department.
This case was the product of an investigation by the U.S. Postal Inspection Service with assistance from the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Sacramento County Sheriff’s Department. Assistant U.S. Attorney Jeffrey A. Spivak and Trial Attorney Manish Kumar from the Department of Justice’s Antitrust Division prosecuted the case.
Sacramento Man Found Guilty in Scheme to Defraud American Express and Account Holders NationwideRead the Press Release
SACRAMENTO, Calif. — After a four-day trial, a jury found Mihran Melkonyan, 36, of Sacramento, guilty on Tuesday of 24 counts of wire fraud and two counts of mail fraud related to a scheme to commit credit card fraud by operating phony online businesses, U.S. Attorney Phillip A. Talbert announced.
Co-defendant Ruslan Kirilyuk, 39, of Beverly Hills, failed to appear at trial, and a bench warrant was issued for his arrest. The charges against him are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt. On December 15, 2014, co‑defendant Rouslan Akhmerov, 42, of Studio City, pleaded guilty to one count of access device fraud for his participation in the scheme. He is set to be sentenced on March 21, 2017.
According to evidence presented at trial, between approximately October 5, 2011, and March 5, 2014, Melkonyan worked with Akhmerov and others in a credit card billing scheme that involved creating approximately 68 fraudulent online companies established with the sole purpose of fraudulently charging approximately 119,000 stolen credit card numbers. In total, the members of the scheme billed the stolen credit card numbers for over $3.4 million in unauthorized charges.
As established at trial, to create the fraudulent companies, the members of the scheme obtained over 200 stolen report cards from the San Juan Unified School District. Those report cards had student information on them such as names and social security numbers. Using that information, Melkonyan and others created fraudulent companies with names such as CVS Store, Walt Mart (sic), and Chevran (sic).
Melkonyan and others then opened merchant accounts with American Express using those names and false identities. Working with co-conspirators in Russia, Melkonyan and others used those merchant accounts to process American Express credit card charges for the fraudulent businesses.
Once American Express credited the businesses’ merchant accounts for the fake sales, Melkonyan and others transferred the money from the merchant accounts to bank accounts they controlled that had been opened in other people’s identities. In some cases, Melkonyan directed foreign students visiting the United States on J-1 student visas to open bank accounts. When the students left the United States, Melkonyan took over the bank accounts to use for collecting fraud proceeds.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Michael D. Anderson and Matthew M. Yelovich are prosecuting the case.
Melkonyan is scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on May 5, 2017. Melkonyan faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Manteca Man Pleads Guilty to Executing a Bank Fraud Scheme via Identity Theft and Stolen U.S. MailRead the Press Release
SACRAMENTO, Calif. — Matthew Gene Ballard, 38, of Manteca, pleaded guilty today to executing a bank fraud and identity theft scheme and to numerous violations of the terms of his supervised release from prison for a prior conviction, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Ballard had been released from federal prison on March 27, 2015, after serving three years in prison for similar offenses and was under the supervision of the U.S. Probation Office. Between July 2015 and April 2016, while on supervision, Ballard, working with others, obtained stolen U.S. Mail and stolen property and used the identification information and mail contents to make counterfeit identifications. Ballard used the identities to fraudulently open accounts, obtain lines of credit, and get cash and goods at the expense of banks and merchants. As part of his scheme, Ballard stole his own landlord’s identity and used unauthorized credit cards to pay for personal expenses, including doctor visit co-pays.
This case is the product of an investigation by the U.S. Postal Inspection Service with the assistance of the U.S. Probation Office. Assistant U.S. Attorney Michelle Rodriguez is prosecuting the cases.
Ballard is scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on April 28, 2017. Ballard faces the maximum statutory penalty of 30 years in prison for bank fraud, 20 years in prison for possession of counterfeit identification, and a mandatory two-year consecutive prison sentence for aggravated identity theft. For his violation of federal supervision terms, Ballard faces up to three years in prison consecutive to any other sentence. 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 Pleads Guilty to Executing a Bank Fraud Scheme via Identity Theft and Stolen U.S. MailRead the Press Release
SACRAMENTO, Calif. — Raleigh Rana Figueras, 35, of Sacramento, pleaded guilty today to bank fraud, aggravated identity theft, possession of stolen U.S. mail, and unlawful possession of five or more identification documents, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between June 2015 and January 2016, Figueras along with his wife, Michelle Reyes Serrano, 35, of Sacramento, and others obtained victim identities and financial information from stolen mail and other stolen property. They obtained personal and financial information and used it to pose as the identity theft victims and use their stolen bank accounts, access device numbers, and altered checks to get money, goods and services from banks and merchants. Figueras created counterfeit driver’s licenses on his computer.
This case is the product of an investigation by the U.S. Postal Inspection Service with the assistance of the Sacramento County Sheriff’s Department and the Sacramento County Probation Department. Assistant U.S. Attorneys Michelle Rodriguez and Rosanne L. Rust prosecuted the case.
On December 15, 2016, Serrano pleaded guilty to bank fraud, aggravated identity theft, and possession of stolen U.S. mail. She is scheduled to be sentenced on March 9, 2017.
U.S. District Judge Morrison E. England Jr. is scheduled to sentence Figueras on May 4, 2017. Figueras and Serrano each face up to 30 years in prison for bank fraud, five years in prison for possession of stolen U.S. Mail, and a mandatory two-year consecutive prison sentence for aggravated identity theft. Figueras additionally faces 15 years for possession of more than five identifications for use in the fraudulent scheme. 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.
Kaiser Permanente Pays $850,000 to Settle Allegations of Faulty Record KeepingRead the Press Release
FRESNO, Calif. — Kaiser Foundation Health System Inc. has paid $850,000 to settle allegations that a Kaiser Permanente pharmacy in Modesto violated the Controlled Substances Act (CSA) by improperly filling defective prescriptions and by failing to maintain accurate records, U.S. Attorney Phillip A. Talbert announced.
The settlement resolves allegations that a large percentage of prescriptions that the pharmacy filled were incomplete, lacking the patient and dosage information required by the CSA’s implementing regulations. Additionally, the settlement resolves allegations that the pharmacy failed to maintain accurate documentation of incoming and outgoing controlled substances. The investigation identified discrepancies in comparing the pharmacy’s purchase and dispensing records with the actual controlled substances on hand at the pharmacy. Kaiser cooperated with the investigation and has agreed to implement protocols to minimize the chance of future violations.
“One purpose of the CSA is to ensure that pharmacies maintain accurate records to minimize the chance of diversion of powerful and potentially addictive drugs, which wreak havoc on our communities and destroy lives,” U.S. Attorney Talbert said. “Large pharmacy chains and health care conglomerates like Kaiser dispense a high volume of controlled substances to customers and members. Strict compliance with the CSA’s recordkeeping provisions by these entities is imperative.”
“Health care providers and pharmacies that don’t fully comply with the CSA give the public the short end of the stick. DEA will hold entities dispensing controlled substances accountable for their actions to protect public health and safety,” stated DEA Special Agent in Charge John J. Martin.
This case was the product of an investigation by the Fresno DEA Diversion Group. Assistant U.S. Attorney Vincente A. Tennerelli represented the United States in this matter.
Bay Area Woman Sentenced to 9 Years in Federal Prison for Identity Theft Scheme to Steal State Disability BenefitsRead the Press Release
SACRAMENTO, Calif. — Jermila McCoy, 34, of Oakland, was sentenced today to nine years and two months in prison for charges related to a large identity theft scheme to defraud the State of California of disability insurance benefits, United States Attorney Phillip A. Talbert announced.
According to court documents, McCoy used stolen identities of individuals throughout California to file for disability benefits with the California Employment Development Department. She then caused those disability benefits claims to be certified using the stolen identities of doctors throughout the State of California. Many of the doctors whose identities were used do not certify any disability claims as part of their practice. For example, one physician was employed at a state prison and only treated inmates of that prison. After a claim was filed and certified, McCoy received the fraudulent disability benefits at addresses she controlled. Over 250 stolen identities were used to get fraudulent benefits as part of this scheme and the defendants took over $1.5 million of fraudulent benefits.
This case was the product of an investigation by the United States Postal Inspection Service, the U.S. Marshals Service, and the California Employment Development Department, Criminal Investigations. Assistant United States Attorney Jared C. Dolan prosecuted the case.
Turlock Attorney Pleads Guilty to Importation of SteroidsRead the Press Release
FRESNO, Calif. —Erik Harald Moje, 40, of Turlock, pleaded guilty today to the importation of anabolic steroids from China, U.S. Attorney Phillip A. Talbert announced.
Anabolic steroids are synthetically produced variants of the naturally occurring male hormone testosterone. They are regulated under the Controlled Substances Act as a Schedule III controlled substance and may not be possessed lawfully in the United States without a prescription.
According to court documents, between December 1, 2013, and September 1, 2015, Moje, a licensed attorney and professional bodybuilder, unlawfully purchased and obtained anabolic steroids from a supplier in China. Encrypted emails documented shipments and indicated that the purchase money would be deposited into the bank account for the Law Office of Eric Moje. He routed shipments of steroids through a UPS mail-forwarding service in New York, as well as private citizens in other parts of the country. In May 2015, agents intercepted a parcel containing one kilogram of steroids, which equates to 40,000 dosage units. In September 2015, the agents executed a search warrant at Moje’s residence. Behind a false wall in the garage, they found 538 10‑milliliter vials containing liquid anabolic steroids, which equates to 10,760 dosage units, and 17,700 steroid capsules, which equates to 17,700 dosage units. They also seized $29,925 in cash from the residence.
In pleading guilty, Moje agreed to the forfeiture of his residence in Turlock. The seized cash and a BMW were previously forfeited.
This case is the product of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The case was also part of Operation Cyber Juice, a nationwide initiative targeting domestic and international steroid trafficking organizations. Agencies involved in this investigation included the Drug Enforcement Administration, the U.S. Marshals Service, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the U.S. Postal Inspection Service, the Turlock Police Department and the Modesto Police Department. Assistant U.S. Attorneys Karen A. Escobar and Kevin C. Khasigian are prosecuting the case.
Moje is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on May 15, 2017. Moje faces a maximum statutory penalty of 10 years in prison and a $500,000 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.
Soper-Wheeler Company to Pay $1.7 Million in Settlement for Plumas National Forest FireRead the Press Release
SACRAMENTO, Calif. — Soper-Wheeler Company LLC has agreed to pay $1.7 million to settle a lawsuit brought by the United States for damages resulting from a 2009 wildfire that burned 307 acres of national forest land, U.S. Attorney Phillip A. Talbert announced today.
The fire, known as the “Silver Fire,” ignited on September 19, 2009, on a steep hillside along Silver Creek, near the community of Spanish Ranch. The lawsuit alleged that a chainsaw being used by Soper-Wheeler’s employees to clear a blockage in a water pipeline struck rocks, causing sparks that ignited dry vegetation. By the time the fire was suppressed, 307 acres of the Plumas National Forest had been burned.
Soper-Wheeler is a timber company that conducts logging operations throughout Northern California. It is based in Strawberry Valley, California. Soper-Wheeler had a Special Use Permit, which allowed it to use or occupy lands in the Plumas National Forest. Settlement documents filed with the court require payment of $1.7 million to resolve the lawsuit.
“We are very pleased with this settlement, which goes a long way toward compensating the public for the expense of fighting the fire and restoring these public lands,” U.S. Attorney Talbert said. “Those who use public lands in California must be vigilant. We will continue to aggressively pursue compensation from those who are responsible for wildfires that damage our precious national resources.”
“Burned areas frequently require some restoration work in order to return them to a resilient state. These settlement funds help us reach our ecological restoration goals in these areas,” said U.S. Forest Service Pacific Southwest Regional Forester Randy Moore.
In the last five years, the U.S. Attorney’s Office has secured settlements in 20 different cases involving wildfire damage to federal lands, with settlements valued at nearly $200 million.
This case was the product of an investigation by the U.S. Forest Service. Assistant U.S. Attorney Colleen M. Kennedy handled the case.
El Dorado County and Arizona Residents Indicted for Embezzling More Than $200,000 from Organic Food CompanyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a six-count indictment today against Jeffrey Scott Davis, 59, of Placerville, and Glen Michael Martinka, 67, of Phoenix, Arizona, charging them with conspiracy to commit mail fraud and mail fraud, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between December 2008 and April 2012, Davis and Martinka conspired to embezzle approximately $218,000 from an organic food company by submitting false invoices. Davis was the national sales manager for the company and Martinka was an employee and part owner of a vendor that marketed and sold the company’s products. Davis and Martinka had invoices made that charged the company for services that the vendor did not perform. Davis authorized the payment of the false invoices, and based on these false invoices, the company made checks payable to the vendor and mailed the checks to Martinka in Arizona. Martinka then split the fraudulently obtained money with Davis by mailing checks made payable to Davis.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Shelley D. Weger is prosecuting the case.
If convicted, Davis and Martinka face a maximum statutory penalty of 20 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.
Central Valley Serial Robber Sentenced to 20 Years in PrisonRead the Press Release
FRESNO, Calif. — On Wednesday, U.S. District Judge Dale A. Drozd sentenced Ronald Castanon, 21, of Pinedale, to 20 years in prison for three counts of interference with commerce by robbery, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Castanon robbed three businesses at gunpoint: the Valero gas station at 10480 California 41 Business Route in Madera on October 3, 2015; the Arco gas station at 4149 N. Clovis Avenue in Fresno on October 4, 2015; and the Yo-Town Yogurt shop at 29424 Auberry Road in Prather on October 4, 2015.
At the Yo-Town Yogurt shop, Castanon entered the store, pointed a silver, long-barreled revolver at the 16-year-old clerk and demanded money. On October 5, 2015, a Fresno County Sheriff’s deputy saw the Chevy Impala that had been involved in the robberies. After Castanon got into the vehicle and drove away, the deputy followed him for several minutes and saw him throw a gun out of the window, which was later recovered. Castanon continued for 130 miles was later arrested with the assistance of air support.
“Project Safe Neighborhoods is a program that spans nationwide. The program is committed to reducing gun and gang crime. ATF has been a part of Project Safe Neighborhood for several years,” said Special Agent in Charge Jill Snyder. “The successful results that stem from partnerships between law enforcement agencies, like the one seen in this case, help to make our streets a safer place.”
This case was the product of an investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Fresno County and Madera County Sheriffs’ Offices. This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state and local law enforcement to combat gun and gang crime. At the core of PSN is increased federal prosecution to incapacitate chronic violent offenders as well as to communicate a credible deterrent threat to potential gun offenders. Assistant U.S. Attorney Kimberly Sanchez prosecuted the case.