Eastern District of California

FRESNO, Calif. — Robert Wallace Smith, 39, of Lemoore, was sentenced today by United States District Judge Dale A. Drozd to 20 years in prison, to be followed by 20 years of supervised release for receipt and distribution of child pornography, Acting United States Attorney Phillip A. Talbert announced.

On May 27, 2016, a federal jury found Smith guilty after a four-day trial. According to evidence presented at trial, Smith first came to the attention of law enforcement after he made child pornography available for distribution online using a file-sharing program. On December 23, 2011, agents executed a federal search warrant at Smith’s residence and seized his laptop computer, which contained a collection of 388 videos and pictures of children being sexually abused.

At trial, Smith took the stand, denying that he had any knowledge of the content on the computer. At the sentencing hearing, Judge Drozd found that Smith had obstructed justice by offering false testimony at his trial.

This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorneys Megan A. S. Richards and John R. Edwards are prosecuting the case.

Smith has been in custody since his trial in May 2016.

SACRAMENTO, Calif. — U.S. District Judge Garland E. Burrell Jr. sentenced Michael Bailey, 61, of Sacramento, to 12 years and seven months in prison for receipt of child pornography, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, between March 2014 and July 2014, law enforcement officers conducting an undercover investigation into online child pornography being shared over peer-to-peer networks located an internet user in Sacramento making child pornography available for download. When officers executed a search warrant at Bailey’s home, they found a computer containing numerous images and videos depicting the sexual exploitation of children and making those files available to others over the internet. On May 20, 2016, Bailey pleaded guilty and has been in custody since his arrest on July 22, 2014.

This case was the product of an investigation by the Federal Bureau of Investigation and the Sacramento Valley Internet Crimes Against Children Task Force (ICAC), a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant United States Attorney Matthew G. Morris prosecuted the case.

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

SACRAMENTO, Calif. — Joshua Landon Klipp, 34, of Chico, was sentenced today to 25 years in prison for one count of production of child pornography and one count of receipt of child pornography, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, on September 13, 2013, Klipp brought his cellphone for repairs to a Chico repair service. Before beginning repair work, the technician tested the cellphone and observed numerous images of suspected child pornography. The technician contacted the Chico Police Department. Officers obtained a warrant and searched the phone, finding numerous images of suspected child pornography.

Further investigation revealed that between May 13, 2013, and July 10, 2013, Klipp persuaded a minor to engage in sexually explicit conduct for the purpose of producing images of those acts and for the purpose of transmitting live visual depictions of that conduct. Klipp received these images from the minor as well as other images through the internet between March 20, 2013, and September 18, 2013.

On March 11, 2016, Klipp pleaded guilty to the charges. According to the factual basis in the plea agreement, Klipp was required to register as a sex offender under California Penal Code Section 290 after being convicted of sex offenses involving a minor in 2009 in Butte County.

This case was the product of an investigation by the Federal Bureau of Investigation, the Chico Police Department, and the California Department of Corrections and Rehabilitation. Assistant United States 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.

FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Juan Carlos Lopez, 32, of Lake Elsinore; Rafael Torres-Armenta (Torres), 32; Javier Garcia-Castaneda (Garcia), 38; Carlos Piedra-Murillo (Piedra), 29, all natives and citizens of Mexico, charging them with conspiring to cultivate marijuana with intent to distribute, cultivating marijuana, and damaging public land and natural resources in connection with a large-scale marijuana cultivation operation in the Domeland Wilderness area in the Sequoia National Forest, Acting United States Attorney Phillip A. Talbert announced.

According to the indictment, between May 1, 2016, and August 26, 2016, Lopez, Torres, Garcia, and Piedra conspired to grow marijuana in a large cultivation operation in the Sequoia National Forest. The cultivation sites contained over 8,000 marijuana plants and were located in the Domeland Wilderness, a federally designated wilderness area about 55 miles northeast of Bakersfield known for its many granite domes and unique geologic formations.

According to court documents, the marijuana cultivation operation caused extensive damage to the land and natural resources. It covered approximately 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 were found at the site. Large piles of trash were found near the campsite.

This case is the product of an investigation by the U.S. Forest Service, the Bureau of Land Management, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the California Department of Fish and Wildlife. Assistant United States Attorney Karen Escobar is prosecuting the case.

Lopez is scheduled for arraignment on the indictment on September 8, 2016, in federal court in Fresno. Torres, Garcia, and Piedra are scheduled for arraignment on September 12, 2016.

If convicted of the drug offenses as charged in counts one through three, Lopez faces a mandatory minimum statutory penalty of five years and a maximum statutory penalty of 40 years in prison and a $5 million fine. If convicted of the charged drug offenses, Torres, Garcia, and Piedra face a maximum penalty of 20 years in prison and a fine of up to $1 million. If convicted of the environmental crime, the men face 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 defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Trevor Kintaro Lichnock-Gembe, 28, of Fair Oaks, pleaded guilty today to bank fraud, aggravated identity theft, and unlawful possession of identification documents of others, Acting United States Attorney Phillip A. Talbert announced.

According to court documents, between June 14, 2105, and June 1, 2016, Lichnock-Gembe and co-defendant Shellby L. Moore, 29, of Sacramento, stole mail and obtained other stolen property containing personal and financial information of victims from residential and vehicle burglaries in Placer County, Sacramento County, and El Dorado County. Lichnock-Gembe and Moore used stolen mail and victim identification and financial information to alter and manufacture checks that were cashed at the expense of local banks and credit unions. Lichnock-Gembe possessed over five different stolen victim identifications, and he and Moore opened bank accounts using the stolen personal and financial information in order to deposit stolen checks and withdraw cash. Lichnock-Gembe was arrested on June 1, 2016, while fleeing a Sacramento apartment complex at which he had just stolen mail.

This case is the product of an investigation of the United States Postal Inspection Service, with assistance from the Sacramento County Sheriff’s Office and the Placer County Sheriff's Office. Assistant United States Attorney Michelle Rodriguez is prosecuting the case.

Lichnock-Gembe is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on December 1, 2016. Lichnock-Gembe faces up to 30 years for bank fraud conviction and up to 15 additional years for the false documents conviction. Lichnock-Gembe will receive two additional consecutive years in prison for his use of another's identity to commit the bank fraud offenses. 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.

Moore is scheduled for a status conference on October 6, 2016, before Judge England. The charges against her are only allegations; she is presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — Cristopher Santiago Sanchez-Becerra, 32, of Stockton, pleaded guilty today to conspiracy to commit mail fraud and admitted that he staged car accidents in a scheme to defraud insurance companies, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, from at least October 2011 until August 2014, Sanchez-Becerra conspired with at least six other individuals to stage dozens of car accidents and submit false claims seeking compensation for the damage caused by the staged accidents. Commonly, the defendants would also offer to repair the recruited individual’s vehicle at automobile repair shops that Sanchez-Becerra or a co-defendant owned, usually with less-than-complete repair work, for a fee less than the payment from an insurance company. In all, Sanchez-Becerra caused at least $210,000 in false insurance claims to be paid as a result of the conspiracy to defraud.

In each staged accident, Sanchez-Becerra and other defendants utilized two or three vehicles and caused about $5,000 to $10,000 in damage to each vehicle. After each staged collision, the defendants submitted a similar cover story to an insurer that concealed the true cause of the accident. The cover story would commonly use aliases, false identities, and false addresses when describing the defendants. The defendants also commonly used different vehicles in the staged collisions. They were able to do this by obtaining many different vehicles and using false identities to both register the vehicles with the Department of Motor Vehicles and obtain insurance policies for the vehicles. The defendants operated in this manner to avoid scrutiny by an insurer that reviewed the false claims regarding a staged accident.

The indictment further alleges that Sanchez-Becerra and other defendants were able to repeat the scheme in dozens of crashes by recruiting other individuals to participate in the staged collisions. These individuals would allow their vehicles to be damaged and submit their own claim for damages. In many instances, false claims were submitted to the recruited individual’s insurance company.

“Fraud schemes like the one uncovered in this case are growing at an alarming rate, and unfortunately it’s consumers who ultimately pay the price,” said Ryan Spradlin, special agent in charge for HSI San Francisco. “As this probe makes clear, HSI is committed to working with its law enforcement partners to target those who seek to game the system for their own enrichment and ensure they’re held accountable for their crimes.”

“California is ground zero for auto insurance fraud,” said Insurance Commissioner Dave Jones. “Sanchez-Becerra's million-dollar conspiracy to rip-off insurers victimizes California consumers who end up paying for auto fraud losses through higher insurance premiums.”

This case is the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the California Department of Insurance, Fraud Division. Assistant United States Attorneys Patrick R. Delahunty and Henry Z. Carbajal III are prosecuting the case.

Sanchez-Becerra is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on November 28, 2016. Sanchez-Becerra 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.

Charges are pending against co-defendants Juan Ortiz Rivas, 39, of Ceres; Oscar Diaz Landa, 46, of San Jose; Victor Hugo Soriano-Villafan, 26, of Modesto; Liobigildo Vargas, 46, of Turlock; Juan Marquez Cadenas, 30, of Patterson; and Alfonso Apu, 47, of Modesto. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Marcus Cooper, 33, of Vallejo, was sentenced today by United States District Judge John A. Mendez to five years and five months in prison for submission of false claims to the Internal Revenue Service, aggravated identity theft, and possession of stolen mail, Acting United States Attorney Phillip A. Talbert announced.

According to court documents, Cooper and his co-defendants, Leticia Roque and Tiana Naples, conspired to submit a total of at least 60 false tax returns to the Internal Revenue Service in early 2012, requesting more than $200,000 in fraudulent tax refunds in other peoples’ names. The defendants obtained more than $102,000 in tax refund checks that were mailed to their address in Vallejo. When law enforcement agents searched the residence, a substantial volume of stolen United States mail was found in the house.

On February 9, 2016, Roque was sentenced by Judge Mendez to serve two years and six months in prison for her role in the conspiracy to submit false claims and aggravated identity theft.

On July 19, 2016, Naples was sentenced by Judge Mendez to serve 10 months of home detention for her role in the conspiracy to submit false claims.

This case was the product of an investigation by the United States Postal Inspection Service and the Internal Revenue Service – Criminal Investigation. Assistant United States Attorney Matthew G. Morris prosecuted the case.

FRESNO, Calif. — After an eight-day trial in Fresno, a federal jury found Roger Cha, 30, of Atwater, guilty today of one count of possession of child pornography, Acting United States Attorney Phillip A. Talbert announced.

According to evidence presented at trial, on April 18, 2012, federal agents served a search warrant at Cha’s residence in Atwater to search for evidence of child pornography. Cha admitted to agents during the search that any child pornography found on the computer belonged to him, describing details of what they would find. A later forensics examination of the computer confirmed his admissions. The child pornography found on the computer included videos of children as young as four years old.

This case is the product of an investigation by the U.S. Secret Service, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Fresno County Sheriff’s Office, and the Fresno Internet Crimes Against Children (ICAC) task force. ICAC is a federally and state-funded task force with agents from federal, state, and local agencies. The Fresno ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant United States Attorneys Mark J. McKeon and Jeffrey A. Spivak are prosecuting the case.

Cha is scheduled to be sentenced by United States District Judge Anthony W. Ishii on December 12, 2016. Cha faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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

FRESNO, Calif. — Today, after a three-day trial, a federal jury found Kenneth William Kirkland, 48, of California City, guilty of being a felon in possession of firearms, being a felon in possession of a destructive device, being a felon in possession of explosives, and possession of a destructive device not registered in the National Firearms Registry, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents and evidence produced at trial, on October 11, 2015, officers from the California City Police Department executed a search warrant at Kirkland’s house and found a 5.56-caliber assault rifle that was loaded with a high-capacity magazine and one round in the chamber and a 7.62 x 54R-caliber rifle. When officers discovered detonators in a yellow metal container, they requested the assistance of the Kern County Sheriff’s bomb squad.

In addition to the detonators, several sticks of dynamite were found and a partially constructed improvised explosive device (IED) was found in a shoebox under Kirkland’s bed. Electrical components in a separate shoebox were also found. It was later determined that with either the insertion of batteries into a battery pack or the connecting of its wires directly to a battery, the partially constructed improvised explosive device could be readily assembled into a fully functional IED.

According to the indictment, on June 17, 1993, Kirkland was convicted in Kern County of burglary and was prohibited from possessing firearms or ammunition.

This case is the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the California City Police Department, and the Kern County Sheriff’s Office. Assistant U.S. Attorneys Angela L. Scott and Christopher Baker are prosecuting the case.

Kirkland is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on December 5, 2016. Kirkland faces a maximum statutory sentence of 10 years in prison and a $250,000 fine for being a felon in possession of firearms or a destructive device, and a maximum of 10 years in prison and a $10,000 fine for possession of a firearm not registered in the National Firearms Registry. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — A federal grand jury returned a seven-count indictment today against Gary Lee Ortiz, 41, of Auberry, charging him in connection with a large-scale marijuana cultivation operation located near Mill Creek in Fresno County in the Sierra National Forest Acting United States Attorney Phillip A. Talbert announced.

Ortiz was charged with conspiring to manufacture, distribute and possess with the intent to distribute marijuana, with manufacture of marijuana, possession of marijuana with intent to distribute, maintaining a drug-involved premises, with damaging public land and natural resources, being a felon in possession of a firearm, and possessing a firearm with an obliterated serial number.

According to court documents, Ortiz oversaw a large marijuana cultivation operation on property where he resided in Auberry and also on public land nearby in the Sierra National Forest. The cultivation sites contained over 12,746 marijuana plants and were in close proximity to Shaver Lake and other recreational areas. Law enforcement officers eradicated the plants and seized four firearms from the property where Ortiz resided. At the time, Ortiz was prohibited from possessing a firearm.

The marijuana cultivation operation caused extensive damage to the land and natural resources. The marijuana plants were irrigated by water that had been diverted from Mill Creek. Mill Creek flows into the San Joaquin River above Millerton Lake’s Friant Dam, which is a major water supply for the San Joaquin Valley. In addition to the marijuana, law enforcement officers removed over 2,000 pounds of irrigation hose, fertilizers, and trash from the cultivation sites.

This case is 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 Fresno County Probation. Assistant United States Attorney Karen Escobar is prosecuting the case.

Ortiz was ordered detained and is scheduled for arraignment on September 9, 2016, in federal court in Fresno. If convicted of the drug offenses as charged in counts one through three, Ortiz faces a mandatory minimum statutory penalty of 10 years and a maximum statutory penalty of life in prison and a $10 million fine as to each count. If convicted of the environmental crime, Ortiz faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. If convicted of being a felon in possession of a firearm, Ortiz faces a maximum statutory penalty of 10 years in prison. If convicted of possessing a firearm with an obliterated serial number, Ortiz faces a maximum statutory penalty of five years in prison. As to both firearms offenses, he also faces a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Troy David Stratos, 50, formerly of Los Angeles pleaded guilty today to 11 counts of wire and mail fraud, two counts of money laundering, and one count of obstruction of justice, Acting U.S. Attorney Phillip A. Talbert announced.

According to the factual basis read in court today, between August 2005 and September 2007, Stratos devised and executed a scheme to defraud the victim of money and property. He told her that he was wealthy and successful, and that, among other things, he had made substantial money from oil investments. Stratos promised that he would help manage the victim’s portion of the proceeds from her recent divorce, including real property in her name and cash assets. Stratos told her that she needed to create a trust allowing Stratos to have access and control over her assets and the trust.

According to court documents, Stratos falsely represented that he would invest the divorce proceeds overseas, including in Dubai and in the United Arab Emirates, where the proceeds would earn a high rate of return. Stratos also falsely represented that he would pay for her expenses from his own money because her money was purportedly invested overseas.

Stratos admitted today that he never invested any money overseas as he promised. Instead, he diverted substantial sums of money from the trust for his own personal use. He also used portions of the money to pay the woman=s expenses, misrepresenting to her that he was spending his own money to pay for her expenses.

With respect to two money laundering counts, on January 2, 2007, and on January 26, 2007, Stratos withdrew $25,000 from Granite TN Trust Bank of America account in Granite Bay, California. The money was proceeds from his scheme to defraud the victim, and Stratos knew that these were proceeds of the fraud.

Further, with respect to the obstruction of justice count, between February 2007 and April 2007, Stratos was informed of a grand jury subpoena that his bookkeeper had received requiring the production of various financial records relating to Stratos, including documents relating to Stratos’ spending the victim’s money in casinos in Las Vegas. Stratos instructed the bookkeeper to not provide some of the records. In April 2010, the FBI executed a search warrant for a storage locker maintained by Stratos and located the records covered by the grand jury subpoena that were withheld at the direction of Stratos.

Stratos was arrested on December 20, 2011, and has been in custody since that time. On May 19, 2015, a federal jury in Sacramento found Stratos guilty of four counts of wire fraud and two counts of money laundering, in a separate scheme to defraud a financial manager in Pennsylvania of approximately $11,250,000.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Todd Pickles and Jared Dolan are prosecuting the case.

Stratos is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on all counts of conviction — from today’s guilty plea and the jury trial — on November 17, 2016. The maximum statutory penalty for mail and wire fraud is 20 years in prison and a fine of up to twice the gain or loss from the fraud for each count. The maximum statutory penalty for money laundering is 10 years in prison and a $10,000 fine or twice the value of the criminally derived property, and the maximum statutory penalty for obstruction of justice is 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. - A Pollock Pines woman, who owned a tax return preparation business, and two of her employees pleaded guilty to charges related to filing more than 250 false claims for refund, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division and Acting U.S. Attorney Phillip A. Talbert for the Eastern District of California.

Teresa Marty, 56, the owner of Advanced Financial Services (AFS), a Placerville tax return preparation business, pleaded guilty today to conspiring to file false claims for refund and conspiring to defraud the Internal Revenue Service (IRS). On August 24, Pamela Harris, Marty’s office manager, and Rebecca Bandera-Marty, a California certified tax return preparer, pleaded guilty to one count of conspiring to file false claims. Marty, Harris and Bandera-Marty were indicted in June 2013 along with two other co-defendants, Charles and Victoria Tingler. The Tinglers, who were clients, pleaded guilty to filing false claims in the spring of 2015 and will be sentenced in November.

“Income tax returns are not a vehicle to siphon public funds for personal benefit,” said Principal Deputy Assistant Attorney General Ciraolo. “Those individuals, like Teresa Marty, Pamela Harris and Rebecca Bandera-Marty, who promote and facilitate these types of refund fraud schemes should know that the department, along with its partners in law enforcement, are committed to investigating and prosecuting such abuses.”

Marty, Harris and Bandera-Marty admitted that they conspired to file false individual income tax returns claiming more than $60 million in false federal income tax refunds. Marty and Harris recruited clients by falsely representing that the clients could legally receive sizable tax refunds by filing tax returns with IRS Forms 1099-OID. AFS prepared false Forms 1099-OID that reported an amount equal to the clients’ debts as income and the same amount as income tax withheld, resulting in significant income tax refunds to which the clients were not entitled. The scheme included clients from 26 states and caused the IRS to pay out over 40 tax refunds, totaling more than $9 million. The IRS listed the use of false Forms 1099-OID on its website as one of the “dirty dozen” tax schemes for the years 2009 through 2014.

Marty also admitted that she and the Tinglers, with the help of Harris, filed multimillion dollar liens against government officials, including three IRS employees involved in the collection of taxes the defendants owed the IRS as a result of participating in the scheme. Marty filed $84 million liens against the then Acting U.S. Attorney for the Eastern District of California and a former Department of Justice Tax Division attorney involved in filing suit to permanently enjoin Marty and AFS from preparing tax returns. The liens that were filed with the California Secretary of State unlawfully disclosed personal identification information of the government employees. Harris and Marty also engaged a commercial collection agency to collect one of the three false liens that Charles Tingler filed against an IRS revenue officer for $500,000.

“From her office in the Sierra Foothills, Marty traveled around the country to promote a preposterous theory that taxpayers could somehow use IRS forms to claim refunds based on their own private debts,” said Acting U.S. Attorney Talbert. “As Marty, Harris, Bandera-Marty and others have now admitted, this was just a criminal scheme to make false claims to loot the U.S. Treasury. I’m proud of the government employees who worked diligently to put an end to this even after criminal schemers retaliated against them personally.”

“The defendants used their knowledge to exploit vulnerabilities in the tax system,” said Special Agent in Charge Michael T. Batdorf for IRS-Criminal Investigation. “Marty and her co-defendants recruited clients for their tax fraud scheme by falsely representing that they could eliminate their debts and legally receive sizable tax refunds by submitting tax returns with IRS Forms 1099-OID. Taxpayers should not be taken in by false descriptions of the law or misrepresentations of the facts. As the old adage goes - if it sounds too good to be true, it probably is.”

“Tax preparers who file false returns with the IRS are not only violating the law and stealing from taxpayers, but violating the trust placed in them by their clients,” said Special Agent in Charge Rod Ammari for the Treasury Inspector General for Tax Administration. “When these same tax preparers then file fraudulent and illegal liens against IRS employees, with the intent to intimidate them from doing their jobs, their actions are doubly heinous.”

Clients of AFS have been prosecuted in Arizona, Colorado, Florida, Georgia, Missouri, Oregon and Washington for filing the false claims for refund prepared by Marty and AFS.

Marty is scheduled to be sentenced on January 4, 2017. She faces a maximum sentence of 15 years in prison, a term of supervised release and monetary penalties. Bandera-Marty is scheduled to be sentenced on November 16, 2016, and Harris is scheduled to be sentenced on January 4, 2017. They each face a maximum sentence of 10 years in prison, a term of supervised release and monetary penalties.

Principal Deputy Assistant Attorney General Ciraolo and Acting U.S. Attorney Talbert commended special agents of IRS Criminal Investigation and Treasury Inspector General for Tax Administration, who conducted the investigation and Trial Attorneys Erin S. Mellen and Andrea A. Kafka of the Tax Division and Assistant U.S. Attorney Matthew D. Segal, who prosecuted the case.

FRESNO, Calif. — Travis Ryan Keene, 36, of Washington state, was sentenced on August 29, 2016, by United States District Judge Lawrence J. O'Neill to seven and a half years in prison to be served consecutively to a previous sentence from Washington state of three years and seven months in prison for being a felon in possession of a firearm, Acting United States Attorney Phillip A. Talbert announced.

According to court documents, on March 24, 2015, at approximately 5:15 p.m., Deputy U.S. Marshals observed Keene pumping gas at a local truck stop in Tehachapi, California. Deputies had a valid outstanding warrant for Keene’s arrest from Washington, but when they attempted to arrest him, he immediately sped off in a vehicle striking two USMS vehicles. Deputies gave chase for approximately 15 miles at high speeds through various side roads and into the hills of Tehachapi. Keene finally stopped at a residence and fled the vehicle on foot carrying a Ruger .357-caliber revolver. Deputies pursued Keene into the backyard of the residence, ordered him to the ground, and took him into custody without further incident. Deputies located the firearm as well as an additional 92 rounds of ammunition within close proximity to where deputies arrested Keene.

In sentencing Keene, Judge O’Neill stated that the length of the sentence was due in large part to the reckless and dangerous behavior of Keene, which could have resulted in the injury or death of federal law enforcement officers or innocent civilians. Judge O’Neill stated that such behavior must be severely punished.

This case was the product of an investigation by the United States Marshals Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Brian K. Delaney prosecuted the case.

SACRAMENTO, Calif. — Briant Benson, 59, of El Dorado Hills, pleaded guilty today to tax evasion, Acting United States Attorney Phillip A. Talbert announced.

According to court documents, during the years 2004 through 2006, Benson failed to file tax returns or pay any personal income tax to the Internal Revenue Service, despite receiving at least $2 million dollars in income as the President and CEO of multiple medical device companies. Further, Benson used corporate funds to support his lavish lifestyle. He used corporate funds to purchase multimillion dollar homes, buy hundreds of thousands of dollars in jewelry and furniture, and pay for lavish travel accommodations such as luxury hotels, private jets, and limousines. Benson also used corporate funds to pay over half a million dollars in gambling debt. Nevertheless, when confronted by IRS officers, Benson denied using corporate funds for his personal use.

Benson’s failure to report his personal income and pay taxes due and owing on that income resulted in a tax loss of at least $249,000.

“In today’s economic environment, it is more important than ever that the American people feel that everyone is playing by the rules and paying the taxes they owe,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “Mr. Benson concealed his true income from the IRS and rather than paying his taxes, he paid for multimillion dollar homes, private jets, limousines and luxury hotel stays. The prosecution of individuals who intentionally conceal income and evade taxes is vital in maintaining public confidence in our tax system.”

This case is the product of an investigation by the IRS Criminal Investigation. Assistant United States Attorneys Matthew D. Segal and Amy Schuller Hitchcock are prosecuting the case.

Benson is scheduled for sentencing on December 2, 2016, by U.S. District Judge Garland E. Burrell Jr. Benson faces a maximum statutory sentence 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.

SACRAMENTO, Calif. — Michael Ray Robertson, 64, of Redding, was sentenced today by United States District Judge Morrison C. England Jr. to 11 years and three months in prison for distribution of child pornography, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, between June 2012 and November 2012, undercover investigators located a computer in the Redding area making child pornography available over a peer-to-peer file sharing service. Agents executed a search warrant at Robertson’s residence and located a computer containing numerous images and videos depicting the sexual exploitation of children and making those files available to others over the internet. On March 24, 2016, Robertson pleaded guilty to distribution of child pornography.

This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) as part of “Operation Sunflower,” which was a nationwide investigation targeting purveyors of child pornography that began in 2012. The name is based on a case in which a sunflower-shaped highway road sign identified in online images led to the rescue of an 11-year-old girl in Kansas. Assistant United States Attorney Matthew G. Morris prosecuted the case.

“Operation Sunflower resulted in more than two dozen arrests in northern California alone and HSI’s tireless work to identify child predators and rescue their unwitting victims are ongoing,” said Ryan L. Spradlin, the special agent in charge who oversees HSI’s investigative efforts throughout northern California. “Bringing the perpetrators of these crimes to justice not only furthers public safety, we believe it also sends a powerful message to those who sexually exploit children online that cyberspace affords no refuge from detection.”

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

FRESNO, Calif. —Samuel Prieto Gonzales, 37, of Fresno, was sentenced today to two years in federal prison for counterfeiting U.S. currency, Acting United States Attorney Phillip Talbert announced.

According to court documents, on May 2, 2016, Gonzales pleaded guilty to one count of counterfeiting United States Obligations for creating counterfeit $10, $50, and $100 bills in March 2014 and attempting to pass those bills in Madera County in March 2014. 

Gonzales previously absconded from a drug treatment program while under pretrial supervision in this matter, and he is currently in custody.     

This case was the product of an investigation by the U.S. Secret Service. Assistant United States Attorney Grant B. Rabenn prosecuted the case.

SACRAMENTO, Calif. — Daniel Allen Coats, 34, of Turlock, was sentenced today by United States District Judge Garland E. Burrell Jr. to one and a half years in prison and ordered to pay $8,938 in restitution for his role in a conspiracy to defraud the United States by filing false claims for federal tax refunds, Acting United States Attorney Phillip A. Talbert announced.

According to court documents, beginning in 2011, Coats and three fellow inmates in the California Correctional Center in Susanville obtained the personal identification information of other inmates and provided it to co-defendants outside the prison. The co‑defendants then used that information to prepare and file false income tax returns with the Internal Revenue Service, claiming refunds to which the inmates were not entitled. Coats also filed three false tax returns in his own name.

In all, the conspiracy resulted in at least 247 false claims for income tax returns in the tax years 2008 through 2011. Although the IRS stopped some of these refunds, approximately 138 fraudulent refunds totaling approximately $219,984 were issued.

“Prison refund fraud schemes are a priority for Special Agents at IRS Criminal Investigation,” said Cindy S. Chen, Acting Special Agent in Charge, IRS Criminal Investigation. “Today’s sentence of Daniel Coats is an example of our hard work in combating tax fraud and assuring to the public that those who commit tax fraud are prosecuted to the fullest extent.”

This case was the product of an investigation by the IRS, Criminal Investigation, the Federal Bureau of Investigation, and the Investigative Services Unit at the California Correctional Center. Assistant United States Attorney Amy Schuller Hitchcock prosecuted the case.

On July 8, 2015, co-defendant Edwin Ludwig IV was sentenced to seven years in prison for his role in the scheme. On July 29, 2016, Judy Ruth Mullin was sentenced to 21 months in prison for her participation. One other defendant has pleaded guilty and is set for sentencing later this month. The charges against the remaining three co-defendants are pending. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — After a four-day trial, a federal jury found Anthony Lester, 52, of Fresno, guilty today of two counts of mail fraud and five counts of money laundering in connection with his embezzlement of $300,000 from a Fresno business, Acting U.S. Attorney Phillip A. Talbert announced.

According to evidence at trial, between August 2010 and January 2012, Lester embezzled and stole money from his former employer. While an employee at Century Builders and Highlands Energy Services (the Companies) he held supervising positions in the accounting department, including Chief Financial Officer. In those capacities, Lester had responsibilities regarding management of the Companies’ finances and financial transactions and had access to and control over some of the Companies’ checking accounts and credit cards. Lester used this access to defraud the Companies.

According to court documents, Lester transferred money from one of the Companies’ checking accounts into what purported to be the Companies’ PayPal account. Then he transferred the money to one of his own personal PayPal accounts. Additionally, he transferred money from two of the Companies’ credit cards to his personal PayPal account. Thereafter, he attempted launder the proceeds of his fraudulent scheme and conceal his embezzlement by transferring money from his personal PayPal account to his personal bank accounts. None of these transactions were authorized by the Companies, and none were for legitimate business purposes of the Companies. In total, Lester embezzled approximately $300,000 from his former employer.

This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Fresno Police Department. Assistant United States Attorneys Patrick R. Delahunty and Patrick J. Suter are prosecuting the case.

“Financial crimes like this don’t just line the pockets of ethically challenged businessmen, they also pose a threat to the continuing growth and vitality of our economy,” said Acting U.S. Attorney Talbert. “We are particularly grateful for the tenacious work of our law enforcement partners in Homeland Security Investigations and the Fresno Police Department in cutting through the defendant’s elaborate efforts to conceal this complex white collar fraud.”

“The greed of lawbreakers like this can negatively impact many people and cause local businesses to suffer unrecoverable losses of money, jobs and more,” said Ryan L. Spradlin, special agent in charge of HSI San Francisco. “HSI will continue to work closely with our law enforcement partners in targeting these devious criminals.”

Lester is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on November 14, 2016. Lester faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for mail fraud and a maximum penalty of 20 years in prison and a $500,000 fine for money laundering (or twice the value of the property involved, whichever is greater). The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — Gregory J. Chmielewski, 46, of West Bend, Wisconsin, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to three years and five months in prison for mail fraud in connection with his misappropriation of funds from his insurance business into his own personal accounts for his personal use, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, between September 2003 and September 2007, Chmielewski defrauded his clients and their employees in a workers’ compensation coverage scheme. During this time period, Chmielewski set up a professional employer organization called Independent Management Resources (IMR), later operating under the name Management Resources Group (MRG), which he operated from Healdsburg until relocating to Roseville in 2006.

He solicited an Indian tribe to partner with him to provide employee insurance coverage and other employee services at a reduced cost. Chmielewski marketed the insurance coverage to California employers as a low-cost alternative to workers’ compensation coverage, and he claimed that it was modeled after the California workers’ compensation statutes except that claims were made and adjudicated under the Tribe’s sovereign system. Because of the low rates, Chmielewski was successful in obtaining employers as clients.

Chmielewski diverted and misappropriated millions of dollars from MRG accounts for his personal use. He caused over $7.3 million to be paid out of MRG’s accounts to other unrelated companies that he controlled. Eventually, the company experienced serious cash flow problems and was forced to cease operations, leaving approximately 117 injured workers with approximately $1.8 million in unpaid claims.

Acting U.S. Attorney Talbert stated: “Many of the victims harmed in this scheme were companies in California’s construction industry, whose employees worked as roofers, general laborers, and other jobs where injuries can occur. The defendant’s actions left many injured workers without the benefits they expected and deserved. Our office is committed to prosecuting large-scale schemes such as this that hurt employers and workers alike.”

“While Chmielewski lined his pockets with the money he stole from California employers, he left injured workers without the workers’ compensation benefits and medical treatment they needed and deserved,” said Insurance Commissioner Dave Jones. “Thanks to the hard work of our investigators at the Department of Insurance and our law enforcement partners in the U.S. Attorney’s Office, Chmielewski’s crimes were exposed, and he has been brought to justice.”

“The license to operate a business is not a license to steal from those whom you are hired to protect,” said Cindy S. Chen, Acting Special Agent in Charge, IRS Criminal Investigation. “The misconduct of Chmielewski harmed those that needed his help during a time they were very vulnerable. Today’s sentence demonstrates IRS Criminal Investigation’s determination to combat financial fraud in all types of schemes.”

San Francisco 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 on this investigation and will continue to vigorously protect the public against complex fraud schemes and the criminal misuse of the U.S. Mail.”

This case was the product of an investigation by the United States Postal Inspection Service; the Internal Revenue Service, Criminal Investigation; and the California Department of Insurance. Assistant U.S. Attorneys Heiko P. Coppola and André Espinosa prosecuted the case.

SACRAMENTO, Calif. — Lejohn Windom Sr., 53, of Sacramento, pleaded guilty today to mail fraud, conspiracy to submit false claims, and aggravated identity theft, Acting United States Attorney Phillip A. Talbert announced.

According to court documents, between 2010 and 2013, Windom and his co‑conspirators filed 682 income tax returns, requesting nearly $2 million in fraudulent refunds. Of those returns, more than $1.1 million in fraudulent refunds were paid. The defendant and others used stolen identities to request the tax refunds and then forged the names of the taxpayers to make the fraudulent refund checks payable to themselves.

This case is the product of an investigation by the Internal Revenue Service – Criminal Investigation and the United States Postal Inspection Service. Assistant U.S. Attorney Matthew G. Morris is prosecuting the case.

Co-defendants Tracy Hartway and Audrey Johnson are scheduled for a status hearing on September 1, 2016. Co-defendant Lejohn Windom Jr. is scheduled for a status hearing on December 1, 2016. The charges as to the co-defendants are only allegations; those defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

Windom Sr. is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on November 10, 2016. Windom faces a maximum statutory penalty of 20 years in prison for mail fraud, 10 years in prison for conspiracy to submit false claims, and a mandatory sentence of two consecutive years in prison for aggravated identity theft. He also faces a maximum $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Leroy Donovan Combs, 75, of Fresno, charging him with failure to surrender for service of sentence, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents and trial testimony, Combs participated in a tax refund scheme claiming more than $33 million in false tax refunds. Following a three-week trial, Combs was convicted of one count of filing a false claim against the United States.

On March 7, 2016, Combs was sentenced to three years and nine months in prison. He was required to self‑surrender to begin serving that sentence on August 11, 2016, but failed to do so. On August 15, 2016, the U.S. Marshals Service arrested Combs.

This case is the product of an investigation by the U.S. Marshals Service. Assistant United States Attorneys Grant B. Rabenn and Henry Z. Carbajal III are prosecuting the case.

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

SACRAMENTO, Calif. — Babulal Bera, 83, of La Palma, was sentenced today to 12 months and a day in prison for making excessive campaign contributions and making campaign contributions in the name of another. Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting United States Attorney Phillip A. Talbert made the announcement.

According to court documents, in 2010 and 2012, Bera’s son was a candidate for a seat in the United States Congress representing District 3 (2010) and District 7 (2012) from the state of California. With respect to both elections, the defendant made the maximum allowable individual contributions to his son’s campaign, and he also solicited friends, family members and acquaintances to make contributions, which he then reimbursed with his own funds. Bera did this to make contributions to his son’s campaign in excess of the contribution limits established by federal law. With respect to the 2010 and 2012 elections, the government has identified over 130 improper campaign contributions totaling over $260,000 and involving approximately 90 contributors living in multiple states.

In imposing the sentence recommended by the government, the Court balanced the serious nature of Bera’s offense with the defendant’s advanced age and associated health issues. The Court said the defendant’s conduct was “calculated,” and “cuts to the heart of the integrity we expect of elections.”

“The District Court gave thorough and thoughtful consideration to the arguments of both parties in imposing sentence,” said Acting U.S. Attorney Talbert. “That sentence, which is significant given this defendant’s age, sends a clear message that campaign finance crimes are serious offenses that will result in real consequences.”

“Mr. Babulal Bera knew the law when it came to campaign contributions, but he tried to beat the system using straw donors,” said Monica Miller, Special Agent in Charge of the FBI Sacramento Field Office. “His sentence demonstrates the U.S. Government takes these crimes seriously and will spare no effort to defend the integrity of the electoral process which is the foundation of American democracy.”

This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys John K. Vincent and Philip A. Ferrari, and Department of Justice Public Integrity Section Trial Attorney Richard Evans prosecuted the case.

SACRAMENTO, Calif. — Slavic Khudoy, 37, of Loomis, was sentenced today by U.S. District Court Judge Kimberly J. Mueller to 10 months in prison for a fraudulent tax refund scheme, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, between 2010 and 2012, Khudoy and Clint D. Bonderer, 38, of Stockton, submitted income tax returns to the IRS for others that contained false information about the taxpayers’ income, filing status, and address, and fraudulently claimed credits that the taxpayers were not entitled to receive. Bonderer and Khudoy submitted 842 fraudulent tax returns, requesting more than $600,000 in refunds in the names of other people. In most cases, they kept the refunds for themselves. Khudoy pleaded guilty on April 13, 2016.

On March 10, 2016, Bonderer was sentenced to three years in prison for conspiring to submit false claims.

This case was the product of an investigation by the Internal Revenue Service-Criminal Investigation. Assistant U.S. Attorney Matthew G. Morris prosecuted the case.

SACRAMENTO, Calif. — On Monday, after a six–day trial, a federal jury found Andre Antonio Walters, 36, of Long Beach, guilty of four counts of mail fraud, Acting United States Attorney Phillip A. Talbert announced. The trial was held before United States District Judge Troy L. Nunley.

According to evidence presented at trial, Walters was a “manager” in a scheme to defraud the State of California of unemployment benefits from approximately 2008 to 2011. The scheme involved registering fictitious businesses with the state, listing “employees” as having earned wages at those fictitious businesses when in fact they had never worked there, and then filing for unemployment benefits on behalf of those “employees.” Walters recruited people to pose as these “employees,” managed their unemployment claims once filed, and split the resulting unemployment benefits checks that were mailed out of West Sacramento. According to the indictment, the scheme resulted in at least $5 million in fraudulently obtained unemployment benefits being disbursed by the state.

Acting U.S. Attorney Phillip A. Talbert stated: “The funds set aside for unemployment insurance are intended to benefit hard-working Californians who have earned the right to receive those benefits. Fraud schemes that damage and deplete the fund undermine the benefit system and cheat those that the funds are intended to protect. We will continue to investigate and stop fraud schemes such as this that harm California workers.”

“Andre Walters conspired to defraud the California Employment Development Department of over $5 million. Walters and his co-conspirators stole money that was intended for American workers in need of relief from the financial effects of unemployment. We will continue to work with our law enforcement partners to safeguard the Unemployment Insurance system from those who exploit benefit programs,” stated Abel Salinas, Special Agent-in-Charge of the Los Angeles Regional Office of the U.S. Department of Labor, Office of Inspector General.

This case is the product of an investigation by the United States Department of Labor, Office of Inspector General and the California Employment Development Department. Assistant United States Attorneys Jared C. Dolan and Matthew M. Yelovich are prosecuting the case.

Walters is the sixth individual to be convicted for participating in this fraud scheme. Kenneth Kim Parks, 54, of Pomona, and of Long Beach, was sentenced to five years in prison. Gregory Bart Martin, 35, of Lakewood, was sentenced to 18 months of probation, Michael Ray Taylor Sr., 51, of Fontana, was sentenced to three years in prison; and Michael Ray Taylor Jr., 31, of El Monte, is scheduled to be sentenced on November 17, 2016.

Walters is scheduled to be sentenced by Judge Nunley on November 3, 2016. Walters faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count of conviction. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — Jonathan Cornelius Bourne, 59, of Mammoth Lakes, pleaded guilty today to unauthorized transportation of archeological resources and unauthorized excavation, removal, damage, or defacement of archeological resources, Acting U.S. Attorney Phillip A. Talbert announced.

On September 17, 2015, a federal grand jury returned an indictment against Bourne, charging him with violations of the Archeological Resources Protection Act. Bourne had been collecting artifacts and archeological resources since 1994. He documented each item and has voluntarily turned over to the government an estimated 20,000 archeological items that he had collected from public lands. Bourne has agreed to pay $249,372 in restitution to the United States.

According to the plea agreement, on October 14, 2010, Bourne altered a small prehistoric site, cremation site, and burial cairns in the Humboldt-Toiyabe National Forest in Nevada. He removed glass trade beads and transported them to his home in Mammoth. On January 10, 2011, Bourne altered a large prehistoric site in Death Valley National Park and removed a tool made from a bighorn sheep horn and three incised stone tablets, which were found in Bourne’s home.

This case is the product of an investigation by the United States Forest Service, the National Park Service, and the Bureau of Land Management. Assistant United States Attorney Laurel J. Montoya is prosecuting the case.

Bourne is scheduled to be sentenced on November 7, 2016, by U.S. District Court Judge Lawrence J. O’Neill. Bourne faces a maximum statutory penalty of two years in prison and a $20,000 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, Calif. — U.S. District Judge Dale A. Drozd sentenced Kimberly English, 53, of Fresno, today to 15 months in prison and ordered her to pay $33,780 in restitution to the IRS for filing a fraudulent tax return by an employee of the United States and making an opportunity for a person to defraud the United States, Acting United States Attorney Phillip A. Talbert announced.

According to court documents and evidence at trial, English was an employee of the IRS in Fresno when she prepared and filed her own fraudulent tax returns for tax years 2011 and 2012. She also prepared and filed tax returns for others, including her daughter and her daughter’s boyfriend for the same tax years. The returns identified in court included fraudulent claims for false deductions and credits, such as the number of dependents and eligibility for the child tax credit. The false returns allowed English and other taxpayers to obtain undue tax refunds or improperly reduce their tax liabilities.

“When IRS employees file fraudulent tax returns, the public’s confidence in the IRS is eroded. This unethical and criminal behavior by an IRS employee with knowledge of the system will never be tolerated and will be investigated and prosecuted to the fullest extent of the law,” stated Special Agent in Charge Rod Ammari of the Treasury Inspector General for Tax Administration.

Judge Drozd ordered English to begin serving her sentence on September 21, 2016.

This case was the product of an investigation by the Treasury Inspector General for Tax Administration and the Tax Division of the Department of Justice. Assistant United States Attorneys Patrick R. Delahunty and Angela L. Scott prosecuted the case.

SACRAMENTO, Calif. — Dennis Joseph Machado, 44, of Stockton, pleaded guilty today to numerous federal felony offenses arising out of illicit conduct in Sutter, Sacramento, and San Joaquin Counties, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, Machado and co-defendant Breneth L. Chase, 44, also of Stockton, obtained U.S. mail and postal keys stolen during burglaries of post offices in Sutter and Sacramento Counties. They used stolen U.S. Mail to manufacture checks and government identifications to cash phony checks, apply for lines of credit, and make purchases at local department stores at the expense of local banks and credit unions. Machado admitted that he possessed over five different manufactured identifications and that he possessed stolen personal and financial information for numerous residents of Sutter, San Joaquin, and Sacramento Counties. In addition, Machado pleaded guilty to possessing methamphetamine for purposes of distribution and unlawful possession of ammunition.

This case is the product of an investigation of the United States Postal Inspection Service, 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 United States Attorney Michelle Rodriguez is prosecuting the case.

On December 2, 2015, Chase was sentenced to four years and nine months in prison. Machado is scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on October 20, 2016. Machado faces a minimum of five years in prison for illicit drug distribution, up to 10 years in prison for his unlawful ammunition possession, up to 30 years for his bank fraud conviction, and up to 15 additional years for the false documents conviction. Machado will receive two additional consecutive years in prison for aggravated identity theft. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — Marci Jessie Ramirez, 45, of Fresno, was arrested today on a nine-count indictment returned by a federal grand jury on Thursday, charging her with bank fraud, mail fraud, aggravated identity theft and fraudulent possession of access device-making equipment, Acting United States Attorney Phillip A. Talbert announced.

According to the indictment, between July 31, 2013, and October 31, 2015, Ramirez misappropriated other peoples’ personal identifying information, which she acquired, in some cases, from client-intake forms she accessed through her former employer and used that information to fraudulently open bank accounts at federally insured financial institutions. Ramirez obtained and deposited counterfeit or altered checks into these bank accounts and ultimately withdrew cash from these deposits or used funds from the deposits for personal purchases. Ramirez also illicitly used other peoples’ credit card information to purchase items for her personal benefit.

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

If convicted, Ramirez faces a maximum statutory penalty of 30 years in prison for each bank fraud count, 20 years in prison for each mail fraud count, and 15 years in prison for each possession of access device-making equipment count, as well as a mandatory two‑year prison term for each aggravated identity theft count, and a $250,000 fine for each of the nine counts charged. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Andrew Kimura, 31, of Sacramento, was sentenced today by U.S. District Court Judge Garland E. Burrell Jr. to three years and 10 months in prison and a $7,500 fine for participating in a bribery conspiracy that licensed unqualified drivers, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, in approximately June 2011, Kimura was a Licensing Registration Examiner who worked in the DMV’s office in Sacramento. He processed applications for Class A and Class B commercial and Class C non‑commercial driver’s licenses.

Kimura conspired with others to obtain Class A CDLs for individuals who had not taken or passed the necessary DMV examinations in return for the payment of money to employees of the DMV, and to produce identification documents without lawful authority. Co-defendants who owned and operated truck driving schools acted as brokers to assist individuals in obtaining driver’s licenses. They paid money to Kimura to access the DMV’s computer database and alter individuals’ electronic DMV records to fraudulently and incorrectly indicate that applicants had passed examinations for Class C licenses, had passed the written examination for Class A CDLs, or had fulfilled the requirements for a Class A or Class B CDL renewal. These incorrect and fraudulent entries in the DMV database caused the DMV to issue licenses to unqualified individuals.

Acting U.S. Attorney Talbert stated: “California and every other state requires drivers to prove they have a basic understanding of the rules of the road and an ability to safely operate a vehicle. Kimura violated the public’s trust for his own personal gain when he circumvented this process and gave unqualified people licenses to drive on the nation’s roads and highways. We remain committed to working with our federal and state law enforcement partners to prosecute such fraud.”

“The California Department of Motor Vehicles (DMV) takes fraud and illegal activity very seriously and is not tolerated. This case is just one example of the extraordinary work performed by DMV Investigations to ensure the safety of the motoring public,” said DMV Director Jean Shiomoto. "One of our priorities is to continually look at new ways to safeguard against fraud.”

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

Charges are pending against co-defendants Pavitar Dosangh “Peter” Singh, 59, of Turlock, Mangal Gill, 56, of San Ramon, and Robert Turchin, 66, of Salinas. A status conference is scheduled for them on September 23, 2016. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.

On August 11, 2015, DMV employee Emma Klem, 46, of Salinas and truck driving school owner Kulwinder Dosanjh “Sodhi” Singh pleaded guilty. Both are scheduled for a status conference in February 2017.

SACRAMENTO, Calif. — Ahmed Pervez Aarianpur, 36, of Dubai, United Arab Emirates, pleaded guilty today to bribing a public official of the United States, Acting U.S. Attorney Phillip A. Talbert announced.

On September 11, 2014, a federal grand jury in Sacramento indicted Aarianpur for violating federal bribery laws, and a sealed warrant for his arrest was issued. Aarianpur was arrested on October 3, 2014, in Prague, Czech Republic. Aarianpur was extradited and flown to the United States on Friday, July 20, 2016.

According court documents, between July 2014 and September 2014, Aarianpur offered to pay a $90,000 bribe to a U.S. Air Force contracting officer stationed at Travis Air Force Base in order to secure a $1.4 million government contract for electronic door locks. By the terms of the contracts, the locks would need to be shipped to Travis Air Force Base for inspection. If the goods passed inspection, the military would then ship the goods to Afghanistan. Aarianpur operated primarily out of Dubai but met with undercover operatives in Prague, Czech Republic, to make an initial payment on the $90,000 bribe.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Michael M. Beckwith is prosecuting the case.

Aarianpur is scheduled to be sentenced on November 3, 2016, by U.S. District Judge Morrison C. England Jr. Aarianpur faces a maximum statutory penalty of 15 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — David James Lira, 39, of Roseville, was sentenced today by United States District Court Judge Garland E. Burrell Jr. to three years in prison for robbing five banks in Northern California, Acting U.S. Attorney Phillip A. Talbert announced. Lira was ordered to pay full restitution to the banks he robbed.

Between December 2015 and January 2016, Lira – using various disguises including coats, fake beards, hats, and glasses – robbed the Umpqua Bank at 1801 Douglas Blvd. in Roseville; the Wells Fargo Bank at 3456 McHenry Avenue in Modesto; the Wells Fargo Bank at 4400 Tassajara Road in Dublin; the U.S. Bank at 2111 Oroville Dam Blvd. in Oroville; and the U.S. Bank at 2175 W. Grant Line Road in Tracy. For some of his robberies, Lira obtained rental cars to vary his getaway vehicles. In total, Lira stole over $31,000.

Lira also attempted to rob the Bank of the West at 1112 Galleria Blvd. in Roseville, and the Delta Bank at 2711 McHenry Avenue in Modesto.

This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the police departments of Roseville, Tracy, Oroville, and Modesto; and the Alameda County Sheriff's Department. Assistant U.S. Attorney Michelle Rodriguez prosecuted the case.

FRESNO, Calif. — Abudullah Almashwali, 31, a Yemeni national residing in Brooklyn, New York, and Chaudhry Ahmad Farooq, 24, a Pakistani national residing in Brooklyn, New York, were indicted today on charges of distributing heroin and cocaine, and conspiracy, Acting United States Attorney Phillip A. Talbert announced. Almashwali and Farooq were arrested on August 2, 2016 in Brooklyn, New York, and are awaiting transfer to the Eastern District of California.

According to court documents, Almashwali and Farooq, using the vendor names “Area51” and “DarkApollo,” were large-scale heroin and cocaine distributors on the dark web marketplace AlphaBay. Dark web marketplaces are operated on computer networks designed to conceal the true Internet Protocol (IP) address of the computers accessing the network. Dark web marketplaces allow for payments to be made only in the form of digital currency, most commonly Bitcoin. While not inherently illegal, digital currency is used by dark web marketplaces because online transactions in digital currency can be completed without a third-party payment processor and are therefore perceived to be more anonymous and less vulnerable to law enforcement scrutiny.

According to the complaint, Almashwali and Farooq accepted orders for heroin and cocaine on AlphaBay, and then mailed the narcotics from post offices in New York to customers throughout the United States. They received payment in Bitcoin. In May 2016, law enforcement made two undercover purchases of heroin from “Area51,” which were delivered to a post office box in the Eastern District of California. Postal records revealed that Almashwali purchased the postage for the two heroin parcels mailed to law enforcement, and that Farooq was involved in other mailings. Law enforcement agents were also able to determine that the encrypted email address used by “Area51” and “DarkApollo” was associated with actual Twitter, Instagram, and Facebook accounts used by Farooq.

This case is a product of an investigation by the Central California Darknet Strike Force, an inter-agency task force dedicated to combating the use of dark web marketplaces and digital currency to distribute narcotics and launder money. The lead agency on this case was the Drug Enforcement Administration, with assistance provided by 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 United States Attorneys Grant B. Rabenn and Jeffrey Spivak are prosecuting the case.

Additionally, 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.

If convicted, Almashwali and Farooq 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.

SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Salvador Guzman-Juarez, 28, of Mexico; Dolores Castorena, 75, of Los Angeles; Pedro Nolasco-Sanchez, 36, of Mexico; Fidel Nolasco-Sanchez, 32, of Mexico; Zenon Nolasco-Sanchez, 32, of Mexico; and Juan Nolasco-Sanchez, 27, of Mexico, charging them for conspiracy to cultivate marijuana and marijuana cultivation in the Shasta-Trinity National Forest, Acting United States Attorney Phillip A. Talbert announced.

According to court documents, between June 1, 2016, and July 8, 2016, the defendants were involved in the cultivation of 10,293 marijuana plants at a site along Big French Creek in Shasta-Trinity National Forest. The defendants were arrested on July 8, 2016. In addition to the cultivation charges, the defendants are charged with committing depredation of federal lands and resources. Salvador Guzman-Juarez, Pedro Nolasco-Sanchez, Fidel Nolasco-Sanchez, Zenon Nolasco-Sanchez, and Juan Nolasco-Sanchez are in custody. Dolores Castorena has been released on bail pending trial.

This case is the product of an investigation by the U.S. Forest Service, the Trinity County Sheriff’s Department, the North State Marijuana Investigations Team, the California National Guard CAMP Team, and the California Department of Fish and Wildlife. Assistant United States Attorney Owen Roth is prosecuting the case.

If convicted, the defendants each face a maximum statutory penalty of five years in prison and a $500,000 fine for the cultivation offenses and up to 10 years in prison and a fine of up to $250,000 for the depredation of public lands and resources offense. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment today against Francisco Barcellos-Ramirez, 34, of Mexico, charging him with conspiring to manufacture and manufacturing marijuana, damaging public lands, and harming a police canine, Acting United States Attorney Phillip A. Talbert announced.

According to court documents, between April 30, 2016, and July 21, 2016, Barcellos-Ramirez conspired to cultivate marijuana in the Shasta-Trinity National Forest, near the town of Wildwood. He was arrested on July 21, 2016, when law enforcement searched the marijuana-cultivation site that contained over 1,600 marijuana plants. During the arrest, Barcellos-Ramirez stabbed a police dog several times in the neck and face. The dog had to be transported by helicopter to Redding for emergency medical care but survived.

This case is the product of an investigation by the United States Forest Service, the Trinity County Sheriff’s Office, and the California Department of Fish and Wildlife.

If convicted of the drug offenses, Barcellos-Ramirez faces a mandatory minimum penalty of 10 years in prison, and a maximum penalty of life in prison and a $10 million fine. The remaining crimes carry 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 several variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Juan Carlos Maldonado, 21, of Sacramento, was indicted today for the armed robbery of a U.S. Postal Service letter carrier in Rancho Cordova, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, on June 21, 2016, Maldonado and others obtained a sport utility vehicle, removed its plates, stalked a U.S. letter carrier, and then robbed the carrier at gunpoint in a Rancho Cordova neighborhood. During the robbery, Maldonado and his associates raided the postal truck, stealing property of the United States and over 800 items of U.S. Mail. Following the robbery, they rifled through the stolen mail for personal identification and financial information, which Maldonado used and provided to others for use, to defraud financial institutions. Maldonado is charged with one count of robbery of a U.S. mail carrier, four counts of bank fraud, one count of aggravated identity theft, and two counts of possessing robbery proceeds.

On June 30, 2016, Maldonado was arrested by the El Dorado County Sheriff’s Office at the Red Hawk Casino while attempting to access proceeds from credit cards stolen during the June 21, 2016 robbery.

San Francisco Division Inspector in Charge Rafael Nunez stated: “Working with the U.S. Attorney's Office and our partners in law enforcement, Postal Inspectors arrested this individual for the armed robbery of a U.S. Postal Service Letter Carrier. Protecting postal employees from harm is the U.S. Postal Inspection Service's top priority.”

This case is the product of an investigation by the United States Postal Inspection Service and the United States Postal Inspection Service’s Narcotic and Economic Crimes Investigations Task Force (NECI) with assistance from the El Dorado County Sheriff’s Office, the El Dorado County District Attorney’s Office, and the Rancho Cordova Police Department. NECI is a partnership between local and federal law enforcement to combat theft and unlawful use of the U.S. Mail. The Placer County District Attorney’s Office and Sutter County Sheriff’s Office have each dedicated law enforcement personnel to the task force. Assistant United States Attorney Michelle Rodriguez is prosecuting the case.

If convicted, Maldonado faces a maximum statutory penalty of up to 30 years in prison and a $1 million fine for the bank fraud, a mandatory two years in prison consecutive to any other term for the aggravated identity theft, and up to 10 years in prison and a $1 million fine for robbery of a U.S. mail carrier and possession of robbery proceeds. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Jarod Perdichizzi, 29, of Lodi, charging him with distribution of child pornography, Acting United States Attorney Phillip A. Talbert announced.

According to court documents, Perdichizzi used the Kik messenger service to chat online about having sexual contact with a minor female. He then emailed photos of minors engaged in sexually explicit conduct to an undercover federal agent. After executing a federal search warrant at Perdichizzi’s residence, agents found a thumb drive containing hundreds of images 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). Special Assistant United States Attorney Josh F. Sigal is prosecuting the case.

If convicted, Perdichizzi faces 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 defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

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

SACRAMENTO, Calif. — A federal grand jury returned two separate indictments today, charging marijuana cultivation in the Shasta-Trinity National Forest and the Lassen National Forest, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents in the first case, Clemente Lopez, 31, a Mexican national, was arrested by law enforcement officers on July 26, 2016, during a search of a marijuana-cultivation site in the Shasta-Trinity National Forest, near the town of Wildwood. The site contained over 9,800 marijuana plants. During the arrest, another suspect fled the scene after stabbing a Trinity County Sheriff’s Department K-9 in the neck. The K-9 survived.

This case is the product of an investigation by the U.S. Forest Service and the Trinity County Sheriff’s Department. Assistant U.S. Attorney James Conolly is prosecuting the case.

According to court documents in the second case, on July 25, 2016, Jose Madrigal, 67, and Cesar Mendoza-Madrigal, 44, were arrested at a marijuana cultivation site containing approximately 6,900 marijuana plants in the Lassen National Forest, near Judd Creek. In addition to the cultivation charges, both defendants were charged with committing depredation of federal land and resources.

This case is the product of an investigation by the U.S. Forest Service, the Department of Fish and Wildlife, the Tehama County Sheriff’s Office, and the Tehama Interagency Drug Enforcement task force. Assistant U.S. Attorney Owen Roth is prosecuting the case.

If convicted, the Lopez faces a maximum statutory penalty of 20 years in prison and a $1 million fine for each count. If convicted, Madrigal and Mendoza-Madrigal face a statutory maximum of five years in prison and a fine of up to $500,000 for the cultivation offenses and up to 10 years in prison and a fine of up to $250,000 for the depredation of public lands and resources offense. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. —Jarrail Lamont Smith, 24, of Cleveland, Ohio, was sentenced today by United States District Judge Troy L. Nunley to 15 years in prison on two counts of interstate transportation of a minor for the purpose of prostitution, Acting United States Attorney Phillip A. Talbert announced.

According to court documents, in August 2015, Smith traveled from Cleveland to California with two minor victims with the expectation that they would engage in commercial sex acts with others for his benefit. Once they arrived in Northern California, he directed them to post advertisements for sexual services online. The investigation revealed multiple advertisements posted in the Bay Area and Sacramento that featured photographs of both victims. After receiving a tip that one of the minors was being trafficked at a motel in Sacramento, the FBI’s Child Exploitation Task Force initiated a sting operation to recover her. The operation was successful, and agents found the other minor victim in the same hotel room. One of the minors had two black eyes when the task force located her.

“Sex trafficking of minors is a horrendous crime, and we will not sit idle while criminals take advantage of our nation’s youth,” said FBI Assistant Special Agent in Charge Manuel Alvarez. “This case highlights the commitment of our FBI Child Exploitation Task Force partners to combat this crime problem.”

This case was the product of an investigation by the FBI’s Child Exploitation Task Force, which is made up of FBI agents and detectives from the Sacramento Police Department and Roseville Police Department. Assistant United States Attorneys Michele Beckwith and Nirav Desai prosecuted the case.

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

SACRAMENTO, Calif. — After a four-day trial, a jury in Sacramento found a Roseville woman guilty today in a mortgage fraud scheme involving three properties, Acting U.S. Attorney Phillip A. Talbert announced.

Alla Samchuk, 45, was found 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. After the verdict, U.S. District Court Judge Garland E. Burrell Jr. ordered Samchuk taken into custody.

According to court documents, 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.

This case is 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 are prosecuting the case.

Sentencing is set for October 21, 2016. Samchuk faces a maximum of 30 years in prison for each count of bank fraud and false statements to a financial institution, 10 years in prison for money laundering, and two years in prison for aggravated identity theft. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — Larry Landseadal, 45, of Clovis, was sentenced today by United States District Judge Lawrence J. O'Neill to more than two and a half years in prison for counterfeiting U.S. currency and possessing unauthorized access devices for use in identity theft, Acting United States Attorney Phillip A. Talbert announced.

According to court documents, Landseadal possessed the personal information of approximately 260 individuals, including their names, social security numbers, and other personal identifying information. Landseadal used the information to open credit card accounts in victims’ names and to purchase goods.  Landseadal also unlawfully produced and possessed counterfeit U.S. currency in denominations up to $100.

This case is the product of an investigation by the United States Secret Service, the Clovis Police Department, and the Fresno Police Department. Assistant United States Attorney Henry Z. Carbajal III prosecuted the case.

SACRAMENTO, Calif. — Satnam Singh, 56, of Rancho Cordova, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to six months in prison, to be followed by three years of supervised release, and a $2,000 fine for making a false statement in an application for a United States passport, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, Singh immigrated to the United States from India in the 1980s and ultimately naturalized as a United States citizen in that identity in 1996. Meanwhile, in 1993, Singh filed a fraudulent application for asylum in the entirely fake identity of “Rupinder Singh,” and in 2012, he naturalized in that second, fake identity. He successfully applied for a U.S. passport for the false identity and traveled internationally using the Rupinder Singh passport at least twice in 2013. In his plea agreement, Singh admitted that he created the Rupinder Singh identity in order to avoid child support obligations.

This case was the product of an investigation by the U.S. State Department’s Diplomatic Security Service (DSS). Assistant U.S. Attorney Nirav Desai prosecuted the case.

“DSS will continue to aggressively protect our borders by safeguarding the integrity of our travel documents,” said David Zebley, Special Agent In-Charge of U.S. State Department’s Diplomatic Security Service, San Francisco Field Office. Diplomatic Security is firmly committed to working with the U.S. Attorney’s Office and other law enforcement agencies around the world to investigative allegations of passport and visa fraud and bring those who committed these crimes to justice.”

At today’s sentencing hearing, Judge Burrell said that this was a serious crime and the sentence was needed to promote respect for the law and provide a deterrent. Judge Burrell ordered Singh to surrender to serve his sentence on October 14, 2016.

SACRAMENTO, Calif. — Judy Ruth Mullin, 27, of Nevada City, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to 21 months in prison and ordered to pay $219,984 in restitution for her role in a conspiracy to defraud the United States with false claims for federal tax refunds, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, beginning in 2011, Mullin and six co-defendants operated a tax fraud scheme out of the California Correctional Center in Susanville. Four co‑defendants incarcerated at the correctional center obtained personal identification information of other inmates. This information was then provided to Mullin and other co‑defendants located outside the prison, who prepared and filed false income tax returns with the Internal Revenue Service, claiming refunds that they knew to be false and to which the inmates were not entitled. Mullin opened a bank account in which to deposit the fraudulently obtained refunds and transferred the wrongfully obtained refunds to the prison accounts of the incarcerated co-defendants. Mullin also personally received money in return for her participation in the scheme.

In all, the conspiracy resulted in at least 247 false claims for income tax returns in tax years 2008 through 2011. Although the IRS stopped some of these refunds, approximately 138 fraudulent refunds totaling approximately $219,984 were issued.

“Ms. Mullin and her co-defendants attempted to steal hundreds of thousands of dollars from the government by filing income tax returns claiming refunds to which the inmates were not entitled,” said Special Agent in Charge Michael T. Batdorf, IRS Criminal Investigation. “Ms. Mullin then transferred the false refunds to the prison accounts of the incarcerated co-defendants. The object of these schemes is to defraud the government and the American taxpaying public. IRS-CI will continue to identify and investigate those involved in these types of schemes.”

This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation, the Federal Bureau of Investigation, and the Investigative Services Unit at the California Correctional Center. Assistant United States Attorney Amy Schuller Hitchcock is prosecuting the case.

On July 8, 2015, Edwin Ludwig the IV was sentenced to seven years in prison for his role in the scheme. Two other co-defendants have pleaded guilty and are set for sentencing in August 2016. The charges against the remaining three co-defendants are pending. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — On Thursday, a federal grand jury in Fresno returned two indictments, charging five Mexican nationals with separate conspiracies to grow marijuana in national forest land, Acting United States Attorney Phillip A. Talbert announced.

In the first indictment, a federal grand jury charged Merced County residents David Villa Corrales, 34; Teodoro Anaya Garcia, 30; and Gerardo Anaya Garcia, 34, with conspiring to cultivate, distribute and possess with intent to distribute marijuana, cultivating marijuana, and damaging public lands and natural resources. According to court documents, the defendants were linked to the cultivation sites after a six-month investigation into a large‑scale cultivation operation in the Carter Creek and Chowchilla Mountain areas of the Sierra National Forest in Madera and Mariposa Counties. The defendants were supplying material, equipment, and personnel to the grow sites, which consisted of approximately 10,000 plants. The marijuana cultivation operation caused extensive damage to the land and natural resources.

This case is the product of an investigation by the United States Forest Service, the Bureau of Land Management, the California Highway Patrol, the California Department of Fish and Wildlife, the California Department of Justice’s CAMP, the California Air National Guard, the Mariposa County Sheriff’s Department, the Madera County Sheriff’s Department, the Merced County Sheriff’s Department, and the Merced County Narcotics Task Force.

In the second indictment, a federal grand jury charged Cutler residents Domingo Aquino Altamirano, 27, and Isis Ali Maldonado-Salinas, 23, with conspiring to cultivate, distribute and possess with intent to distribute marijuana, cultivating marijuana, and damaging public lands and natural resources. According to court documents, the defendants participate in growing over 1,700 marijuana plants within Sequoia National Park on the eastern slopes of Shepherd Peak. They were arrested on Sunday July 17, 2016. This case is the product of an investigation by the Sequoia National Park.

Assistant United States Attorneys Kevin P. Rooney and Daniel J. Griffin are prosecuting the cases.

If convicted of the most serious drug offenses, David Corrales and Teodoro Anaya Garcia face a mandatory minimum statutory penalty of five years, a maximum of 40 years in prison and a $5 million fine, and Gerardo Anaya Garcia faces a maximum statutory penalty of 20 years in prison and a $1 million fine. If convicted of the drug offenses, Altamirano and Maldonado-Salinas face a maximum statutory penalty of 20 years in prison and a $1 million fine. The environmental crime carries a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

BAKERSFIELD, Calif. — A federal grand jury returned a one-count indictment Thursday against Jose Soto, 35, of Lamont, charging him with possession with intent to distribute methamphetamine, Acting United States Attorney Phillip A. Talbert announced. Soto was arrested today at his home on those charges.

According to court documents, on May 5, 2016, Soto possessed over 50 grams of actual methamphetamine and over 500 grams of a mixture and substance containing a detectable amount of methamphetamine, which he possessed for sale at his residence in Lamont.

This case was the product of an investigation by the Drug Enforcement Administration and the Kern County Probation Department. Assistant United States Attorney Angela Scott is prosecuting the case.

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

SACRAMENTO, Calif. —Joseph Daniel Ryan, 21, of Elk Grove, was sentenced today to two years and eight months in prison for bank fraud and aggravated identity theft in the execution of a fraud scheme, Acting United States Attorney Phillip A. Talbert announced.

Ryan is the last of three defendants to be sentenced for this scheme that used stolen identities of Elk Grove postal customers to apply for debit and credit cards and obtain cash, goods, and services. Ryan pleaded guilty to the charges on March 11, 2016.

According to court documents, between October 1, 2014, and February 12, 2015, Ryan and Elk Grove residents Leonard A. Velasco, 24, and Keri Southwood, 22, were involved in a scheme to steal U.S. mail by damaging or destroying U.S. letter boxes and neighborhood cluster boxes. The defendants used the stolen mail to gather financial and personal identification information for purposes of fraud.

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

Robert M. Lehner, Chief of Police for the City of Elk Grove stated: “We would like to thank the US Postal Inspectors’ Office, and the US Attorney's Office, for vigorously prosecuting the individuals involved in the mail theft cases from Elk Grove. Hopefully, the arrests and sentencing of these three suspects will send a clear message to others that these types of crimes will not be tolerated in our community.”

According to court documents, Ryan and his co-defendants possessed stolen U.S. mail of over 1,000 victims and over 30 credit cards in victims’ names. As a result of the destruction of postal receptacles, customers suffered the loss of mail and mail services and the Postal Service suffered loss as well.

All three defendants pleaded guilty. On March 18, 2016, Velasco was sentenced to two years and six months in prison. On August 25, 2015, Southwood was also sentenced to two years and six months in prison. Each defendant was ordered to pay full restitution to all victims, including $6,526 to the U.S. Postal Service for repairs to U.S. Postal Service receptacles.

This case was the product of an investigation by the United States Postal Inspection Service and the Elk Grove Police Department with assistance from the United States Postal Inspection Service’s 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 United States Attorney Michelle Rodriguez prosecuted the case.

SACRAMENTO, Calif. — Jason S. Wymer, 44, of Citrus Heights, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to 30 years in prison, to be followed by 25 years of supervised release for sexual exploitation of children, Acting U.S. Attorney Phillip A. Talbert announced.

On June 24, 2016, co-defendant Stormy M. Avers, 36, of Placerville, was sentenced on to 20 years in prison for sexual exploitation of children.

According to court documents, the case began when a parent accidentally texted a photo of her eight-year-old to a wrong number who turned out to be Wymer. Thinking he received the picture from a child, Wymer responded and began a dialog. The parent brought the cellphone to the FBI, and an undercover employee, pretending to be an eight-year-old child, continued the dialog with Wymer, whom investigators were subsequently able to locate.

Upon his arrest, law enforcement found photos of Wymer and Avers molesting a child, who was approximately three years old, in order to create child pornography. Avers had custody and control of the child at the time. On April 8, 2016, in his plea agreement, Wymer admitted to this conduct, and also to a separate instance of sexual exploitation of a four-year-old child in August of 2011. On March 25, 2016, Avers pleaded guilty to sexual exploitation of children.

“This case highlights the power of concerned citizens,” said Assistant Special Agent in Charge Manuel Alvarez of the Federal Bureau of Investigation Sacramento field office.  “By immediately contacting the FBI, a parent provided valuable information that ultimately led to the identification of three individuals who abused toddlers to produce child pornography.  We encourage the public to preserve any communication with a suspected predator and immediately reach out to law enforcement for help.  Doing so protects your child and may stop sexual abuse of other children.”

A third defendant, Jolene Davis, 40, of Stockton, is charged with having participated with Wymer in the sexual exploitation of a child of whom she had control or custody. Davis is scheduled to appear for a status conference before Judge Burrell on August 12, 2016. The charges against Davis are only allegations; she is presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case is the product of an investigation by the Federal Bureau of Investigation and the Sacramento Internet Crimes against Children (ICAC) Task Force. ICAC is a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant United States Attorney Matthew G. Morris prosecuted the case.

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

SACRAMENTO, Calif. — A federal grand jury returned two indictments today, charging two residents of Mexico with separate conspiracies to grow marijuana in national forest land, Acting United States Attorney Phillip A. Talbert announced.

In a two-count indictment, Antonio Guadalupe Lopez-Garcia, 57, was charged with conspiracy to cultivate marijuana and cultivating marijuana. According to court documents, on July 11, 2016, Lopez-Garcia was arrested while working at a marijuana cultivation site growing approximately 8,000 plants in the Shasta-Trinity National Forest near Screwdriver Creek. This case is the product of an investigation by the U.S. Forest Service, the California Department of Fish & Wildlife, and the Shasta County Sheriff’s Office. #2:16-cr-143 GEB

In a separate two-count indictment, Pedro Madriz Rodrigues, 25, was charged with conspiracy to cultivate marijuana and cultivating marijuana. According to court documents, on July 15, 2016, Rodrigues was arrested at a marijuana cultivation site in Klamath National Forest in Siskiyou County near Cody Creek. The site contained approximately 6,700 plants. This case is the product of an investigation by the U.S. Forest Service, the California Department of Fish & Wildlife, and the North State Marijuana Investigation Taskforce.
2:16-cr-144 MCE

Both defendants are in custody. Assistant United States Attorney James Conolly is prosecuting both cases.

If convicted, each defendant faces a maximum statutory penalty of 20 years in prison and a $1 million fine for each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — U.S. District Court Judge Troy L. Nunley sentenced Stacy Miranda Phillips, 29, of Montague, today to two years in prison and ordered her to pay $2,163 in restitution to the U.S. Postal Service for aggravated ID theft related to her participation in a bank fraud and identity theft scheme, Acting United States Attorney Phillip A. Talbert announced.

According to court documents, between September and December of 2015, Phillips worked with others in Siskiyou County to execute a scheme to steal from banks and merchants in the Siskiyou County. Phillips admitted that as part of her scheme she stole U.S. Mail and other personal property of local residents. Phillips and her associates targeted certain victims, postal customers, and mail receptacles utilized by those victims. Phillips used the checks, credit or debit cards, account numbers, names, PINs, and signatures found in the stolen mail to obtain cash and purchase items. Phillips also attempted to open a line of credit in the name of a Weed, California victim. Phillips stole mail from the following Siskiyou County Post Offices: Hornbrook, Grenada, and Montague.

This case was the product of an investigation by the United States Postal Inspection Service, the Siskiyou County Sheriff's Department, and the Yreka Police Department. Assistant United States Attorney Michelle Rodriguez prosecuted the case.

FRESNO, Calif. — Three related indictments were returned today charging 17 Fresno residents with firearms and drug trafficking offenses, Acting U.S. Attorney Phillip A. Talbert announced.

On July 19, 2016, after a yearlong investigation, law enforcement agents served over 20 search warrants in the Fresno area and arrested the majority of the defendants indicted today. During the searches, agents seized approximately $42,500 in cash.

According to the first indictment, between February 1, 2016, and July 21, 2016, Christopher Martinez Sr., 45; Randy Seja, 24; Felix Gago, 40; and Christopher Martinez Jr., 23, conspired to distribute and possess with intent to distribute methamphetamine.

In the second indictment, Gilberto Zarate, 34; Jorge Calestino Alvarez-Arias, 27; Marco Mosqueda, 27; Frances Reyna, 55; Gabriel Galvan, 27; Rafael Delatorre, 32; Jose Delatorre, 22; Alfonso Esparza, 38; and Gabriel Esparza, 37 were charged with conspiracy to distribute and possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of a methamphetamine. Zarate and Alfonso Esparza, and Gabriel Esparza are additionally charged with being felons in possession of firearms. According to the indictment, the conspiracy ran between April 1, 2015, and July 22, 2016.

The third indictment adds defendant Cecilio Alaniz, 26, and Christopher Valdez, 35, to an indictment that originally charged Jesse Mendoza, 36, and Roxana Dodier, 23. Today’s second superseding indictment charges the four defendants with conspiracy to distribute and possess with intent to distribute methamphetamine, and distribution of and possession with intent to distribute methamphetamine. Mendoza is additionally charged with dealing firearms without a license, possessing and selling stolen firearms, and distribution and possession with the intent to distribute hydrocodone and heroin.

These cases are the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) , the Federal Bureau of Investigation, the U.S. Marshals Service, the Fresno Police Department, the Fresno County Sheriff’s Office, the Mult-Agency Gang Enforcement Consortium (MAGEC), the California Highway Patrol, the California Department of Corrections and Rehabilitation- Division of Adult Parole, the Fresno County Probation, and the Fresno County District Attorney’s Office. Assistant United States Attorneys Melanie L. Alsworth and Kimberly A. Sanchez are prosecuting the cases.

The cases were 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.

If convicted, the defendants face sentences ranging from four years to life in prison and fines of up to $10 million. 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.

Two other defendants have been charged in connection with this investigation. On December 3, 2015, Spencer Meindersee was indicted for conspiracy to commit murder in aid of racketeering and carrying a firearm during and in relation to a crime of violence. He is awaiting trial. The charges are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt. On July 18, 2016, Mariano Polanco was sentenced to three years and five months in prison for being a felon in possession of a firearm.

This investigation is part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state and local law enforcement to combat gun and gang crime. At the core of PSN is increased federal prosecution to incapacitate chronic violent offenders as well as to communicate a credible deterrent threat to potential gun offenders.

SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Stephen J. Dougan Esq., 57, of Granite Bay, charging him with two counts of assisting in the preparation of a false tax document and corruptly endeavoring to impede the due administration of the Internal Revenue Laws, Acting United States Attorney Phillip A. Talbert announced.

According to court documents, Dougan substantially underreported his income to his tax preparers in 2006 and 2007 and claimed certain business expenses to which he was not entitled, all to reduce his tax burden in those years. During an Internal Revenue Service audit of his 2006 tax return, Dougan provided his audit representatives with documents that underrepresented his gross income in 2006 in order to substantiate certain entries on his Schedule C for that year.

This case is the product of an investigation by the Internal Revenue Service-Criminal Investigation. Assistant United States Attorneys Michael M. Beckwith and Matthew M. Yelovich are prosecuting the case.

If convicted, Dougan faces a maximum statutory penalty of three years in prison and a fine of up to $100,000, or twice the value of the gross gain or loss from the tax violation, for each count of conviction. 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.