Eastern District of California
Press releases recorded for this federal judicial district.
Grand Jury Indicts Herlong Prisoner for Assaulting Another PrisonerRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today against Willie James McNeal, 59, a prisoner at the Federal Correctional Institution located in Herlong, California, United States Attorney Benjamin B. Wagner announced.
According to the indictment, McNeal assaulted another prisoner who suffered serious bodily injury as a result.
This case was the product of an investigation by the Federal Bureau of Investigation and Bureau of Prisons. Assistant United States Attorney Amanda Beck is prosecuting the case.
If convicted, McNeal faces a maximum statutory penalty of up to an additional 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Los Angeles Man Charged with Running Multi-million Dollar Foreclosure Rescue Scam in Visalia and SalinasRead the Press Release
FRESNO, Calif. — Martin Calzada, 28, of Los Angeles, was arraigned today in Fresno, charged in connection with a scheme to defraud homeowners facing foreclosure, United States Attorney Benjamin B. Wagner announced.
On December 31, 2015, a federal grand jury returned an indictment against Calzada, charging with conspiracy to commit mail fraud and mail fraud. In court today, Calzada entered a plea of not guilty. His next court date is a status conference and is set for March 21, 2016.
According to court documents, between August 2010 and October 2011, Calzada, and other employees of Star Reliable Mortgage, which had offices in Bakersfield, Visalia, and Salinas, targeted distressed homeowners with a fraudulent “loan elimination” scheme. Star Reliable charged clients an upfront fee — ranging from $2,500 to $4,500 — as well as monthly fees, based on false promises that the clients could own their homes “free and clear” as a result of Star Reliable’s services. In furtherance of the scheme, Calzada and other employees filed at county recorders’ offices fraudulent documents on behalf of the homeowner-clients that purported to replace the legitimate property trustees with fictitious trusts affiliated with Calzada and Star Reliable, all in an effort to “cloud title” and halt or stall the foreclosure process. Additionally, Calzada, and other employees working at his direction, told clients to stop paying their mortgages. They also falsely represented that each client had one million dollars in a U.S. government account that could be used to pay off a homeowner’s mortgage.
Instead of owning their homes “free and clear,” many of Star Reliable’s clients lost their homes in foreclosure. The scheme caused more than 100 homeowner-clients to pay approximately $875,000 to Star Reliable and lending institutions to lose more than $4 million. At least $270,000 of the money paid to Star Reliable by homeowner-clients was funneled back to Calzada.
This case is the product of an investigation by the Federal Bureau of Investigation and the Tulare County District Attorney’s Office. Assistant United States Attorney Patrick R. Delahunty is prosecuting the case.
If convicted, Calzada faces a maximum statutory penalty of 30 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
United States Attorney Benjamin B. Wagner’s Statement on the Passing of Former U.S. Marshal Jerry EnomotoRead the Press Release
United States Attorney Benjamin B. Wagner released the following statement today on the passing of Retired U.S. Marshal and prominent civil rights leader Jerry Enomoto:
“With the passing of Retired U.S. Marshal Jerry Enomoto, this region has lost a courageous advocate for social justice and equal opportunity. Despite living through one of the most shameful times in our history, as one of the thousands of Japanese-Americans interned during World War II, Jerry’s life was not defined by the adversity he faced, but by his advocacy for civil rights and peaceful progress.
Jerry dedicating his life to the service of others, earning many ‘firsts,’ including being the first Asian American to receive a presidential appointment to the Office of United States Marshal. It was in this role that I first worked with Jerry, and I had the pleasure of collaborating with him often over the years on a variety of civil rights issues. In 2002, Jerry retired from his post as U.S. Marshal, but he continued to serve the Sacramento region through his chairmanship of the U.S. Attorney’s Greater Sacramento Hate Crimes Task Force, and his work as co-chair, along with his wife Dorothy, of the annual Martin Luther King Jr. Celebration Event.
Jerry was one of Sacramento’s most honorable citizens, and his enduring legacy is in the countless lives he touched, and the next generation of civil rights leaders he helped to inspire.”
Two Men Sentenced to Prison Marijuana Cultivation Operation that Damaged Sequoia National ForestRead the Press Release
FRESNO, Calif. — Senior United States District Judge Anthony Antonio W. Ishii sentenced Antonio Garcia-Villa (Garcia), 46, to seven years in prison and Uriel Silva-Garcia (Silva), 24, to six years and six months in prison for conspiring to manufacture, distribute and possess with intent to distribute marijuana and possessing firearms in furtherance of a large-scale cultivation operation near Little Poso Creek in the Sequoia National Forest, United States Attorney Benjamin B. Wagner announced.
Both men pleaded guilty last fall. According to court documents, the defendants were paid to tend more than about 8,500 marijuana plants found at the grow site. To facilitate the cultivation activities, they possessed a loaded rifle and handgun. The cultivation activities caused extensive damage to the public land and natural resources. Native trees and plants were cut down and steep hillsides were terraced to plant the marijuana. Pesticides, including Malathion, fertilizer, water lines, trash, clothing and camping equipment were scattered throughout the site. Judge Ishii ordered the men to pay $4,267 in restitution to the U.S. Forest Service to cover the cost of cleaning up the site. Both defendants are from Michoacan, Mexico.
This case is the product of an investigation by the U.S. Forest Service, Kern County Sheriff’s Office, and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney Karen Escobar prosecuted the case.
Sierra National Forest Marijuana Cultivator Pleads GuiltyRead the Press Release
FRESNO, Calif. — Humberto Ceballos-Rangel (Ceballos), 37, of Mexico, pleaded guilty today in connection with his involvement in a large marijuana cultivation operation found by law enforcement last summer in the Sierra National Forest in Madera County, United States Attorney Benjamin B. Wagner announced.
Ceballos pleaded guilty to one count of conspiracy to manufacture, to distribute, and to possess with the intent to distribute 50 or more marijuana plants. According to court documents, Ceballos and his co-conspirators caused significant damage to public land and natural resources. Ceballos was found at a campsite within a marijuana cultivation site with 5,904 marijuana plants. A firearm and ammunition were recovered from a vehicle associated with the cultivation operation. The cultivation operation caused significant harm to the environmental landscape. Native vegetation was cut to accommodate the marijuana plants, foot trails, and cooking and sleeping areas. Water was also diverted from a nearby creek to irrigate the marijuana plants. Agents found and removed from the site insecticide, propane tanks, and a large quantity of trash and hose line. Ceballos has agreed to make restitution to the U.S. Forest Service for the costs of cleaning up the site.
The charges against Ceballos’ co-defendants, Francisco Javier Gomez-Rodriguez, 38, Alejandro Ramirez-Rojo, aka Alejandro Ramires, 31, also citizens of Mexico, and Anthony Isaac Santibanez, 20, of Woodlake, California, remain pending. These charges are only allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
Ceballos is scheduled for sentencing before U.S. District Judge Lawrence J. O’Neill on April 18, 2016. He faces a maximum penalty of 20 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the U.S. Forest Service, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), California Department of Justice’s Campaign Against Marijuana Planting (CAMP), California Department of Fish and Wildlife, and Madera County Narcotic Enforcement Team (MADNET). Assistant United States Attorney Karen A. Escobar is prosecuting the case.
Fresno Man Sentenced for Striking Police Helicopter with Powerful LaserRead the Press Release
FRESNO, Calif. — Johnny Alexander Quenga, 29, of Fresno, was sentenced today to six months in prison, to be followed by three years of supervised release for aiming the beam of a laser pointer at Air 1, a Fresno Police helicopter, United States Attorney Benjamin B. Wagner announced.
According to court documents, Quenga repeatedly struck Air 1 with a powerful green laser attached to an airsoft rifle. As a result, the airmen experienced visual interference, flash blindness, after-imaging, a persistent headache lasting several hours, and dizziness. On October 26, 2015, Quenga pleaded guilty to aiming a laser pointer at an aircraft.
“Our continued partnership with the Fresno Police Department helps us address laser strikes in the area in an effort to protect both law enforcement and the public from the significant danger this activity presents,” said Supervisory Special Agent Robert Guyton of the Fresno resident agency of the FBI’s Sacramento Field Office. “We encourage the public to immediately report any individual who shines a laser on aircraft or motor vehicles to stop this dangerous behavior.”
Two Fresno police officers, who were responding to calls to assist in the investigation of the laser incident, collided with a civilian motorist at a busy intersection in northeast Fresno. The officers and civilian were seriously hurt or suffered significant property damage as a result of the accident, which Quenga was monitoring via a police scanner application on his iPhone.
According to the Federal Aviation Administration (FAA), reports of laser attacks have increased dramatically in recent years as powerful laser devices have become more affordable and widely available to the public. In 2015, the FAA received 7,702 reports of incidents involving laser strikes on aircraft in the United States. In the Eastern District of California, which encompasses 34 counties in the eastern portion of California, there were 214 reported incidents in 2015, with the majority in Fresno. Lasers can completely incapacitate pilots who are trying to fly safely to their destination, endangering their crew members, passengers and people on the ground.
The case against Quenga was investigated by the Federal Bureau of Investigation and the Fresno Police Department. Assistant U.S. Attorney Karen A. Escobar prosecuted the case.
Final Two Defendants Plead Guilty to Marijuana Cultivation Scheme in Sacramento and Elk Grove ResidencesRead the Press Release
SACRAMENTO, Calif. —Jun Mou Peng, 42, and Shihong Chen, 50, both of Elk Grove, pleaded guilty today to manufacturing marijuana inside homes in Elk Grove and Sacramento, United States Attorney Benjamin B. Wagner announced.
According to court documents, from April 2012 to January 2013, law enforcement observed Peng and Chen and others traveling between five residences in Elk Grove and Sacramento. On January 30, 2013, investigators executed search warrants, and found sophisticated marijuana grows inside each residence. Agents seized 417 growing marijuana plants and processed marijuana at 8270 Cliffcrest Way; 152 growing marijuana plants, multiple kilograms of processed marijuana, and $4,240 in U.S. currency at 9761 McKenna Drive; 251 growing marijuana plants at 8108 Gwerder Court; 282 growing marijuana plants and nearly 10 kilograms of processed marijuana at 3713 45th Avenue; and inside 8646 Everidge Court, agents found 867 growing marijuana plants, approximately 31 kilograms of cultivated marijuana, and $7,070 in U.S. currency.
Peng and Chen are scheduled to be sentenced on March 30, 2016, by United States District Judge Kimberly J. Mueller. Each faces a maximum statutory penalty of 20 years in prison and a $1 million fine. Co-defendant Zhiqiang Liu pleaded guilty to manufacturing marijuana on December 16, 2015. He is scheduled to be sentenced on March 9, 2016. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
On September 30, 2015, co-defendant Huanhao Chen pleaded guilty to concealing a felony, and on December 17, 2015, he was sentenced to one year of probation. On October 28, 2015, co-defendant Qinghong Li pleaded guilty to conspiracy to manufacture marijuana and manufacturing marijuana, and she was sentenced to one year in prison.
This case is the product of an investigation by the Drug Enforcement Administration and the Elk Grove Police Department. Assistant United States Attorney Christiaan Highsmith is prosecuting the case.
Two Vallejo Residents Plead Guilty to Multimillion Dollar Mortgage and Foreclosure Rescue Fraud SchemeRead the Press Release
SACRAMENTO, Calif. —Zalathiel Aguila, 42, and Omar Anabo, 53, both of Vallejo, pleaded guilty today to conspiracy to make false statements on loan applications, United States Attorney Benjamin B. Wagner announced.
According to court documents, between October 2004 and May 2007, Aguila and Anabo operated Vallejo‑based Capital Access LLC, an entity targeting homeowners facing foreclosure. The defendants’ “Keep Your Home” program purported to be a temporary rescue plan whereby “qualified investors” took over the mortgages while the homeowners paid rent and worked on rebuilding their credit. The defendants convinced homeowners to sign over title to their homes, which were then sold to straw buyers. The straw buyers obtained loans under fraudulent pretenses by claiming on loan applications that, for example, they intended to occupy the homes as primary residences and that no part of the down payment for the purchase was borrowed. In fact, Capital Access provided the down payment amounts, and the straw buyers never intended to live in the properties. The defendants stripped the equity from the homes and used it to pay the operating expenses of Capital Access, additional fraudulent home purchases, monthly housing payments on the homes for a limited period of time, and personal expenses.
Many of the distressed homeowners were never told that they were permanently signing over title to their homes to Capital Access. Victim homeowners suffered substantial financial hardship; they lost their homes and were forced to move.
In all, the scheme caused the fraudulent sale of at least $27 million in home properties, involving at least 69 properties across California, and at least $23.99 million in fraudulently obtained property loans. Lenders lost at least $10.47 million as a result.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Matthew M. Yelovich is prosecuting the case.
Aguila and Anabo are scheduled to be sentenced by United States District Judge Garland E. Burrell Jr. on April 1, 2016. Both defendants face a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former El Dorado Hills Man Pleads Guilty in Scheme That Misappropriated Millions of DollarsRead the Press Release
SACRAMENTO, Calif. — Gregory J. Chmielewski, 46, of West Bend, Wisconsin, pleaded guilty today to two counts of mail fraud for a scheme where he transferred business funds to his own personal use, United States Attorney Benjamin B. Wagner announced.
According to his plea agreement, Chmielewski set up a professional employer organization called Independent Management Resources (IMR). He solicited an Indian tribe to partner with him and 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 workers’ compensation coverage. Because of the low rates, Chmielewski was successful in obtaining employer clients. Chmielewski then began diverting and misappropriating millions of dollars from IMR accounts for his personal use. 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.
This case is 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 Andre’ Espinosa are prosecuting the case.
Chmielewski is scheduled to be sentenced on April 1, 2016, by U.S. District Judge Garland E. Burrell Jr. Chmielewski faces a maximum statutory penalty of 20 years in prison and a $250,000 fine or up to twice the gain or loss from the offense. The actual sentence will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
San Joaquin County Man Charged with Trafficking in Counterfeit Sports Apparel and Other Counterfeit GoodsRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Seyyed Ali Noori, 48, of Mountain House, charging him with trafficking and attempted trafficking in counterfeit goods, United States Attorney Benjamin B. Wagner announced.
According to court documents, Noori owned and operated Goldstar Wholesale LLC, a wholesale and retail business selling apparel, accessories and other goods. Noori he stored Goldstar’s inventory in a warehouse in Tracy and sold Goldstar’s goods from the warehouse and also from a reserved space at the Galt Flea Market. Court documents allege that in December 2013, Noori intentionally trafficked and attempted to traffic in goods that had counterfeit trademarks belonging to the Oakland Raiders, the San Francisco 49ers, the San Francisco Giants, and Monster Energy.
This case is the product of an investigation by the Sacramento Intellectual Property Rights Task Force. Department of Justice Trial Attorneys Aaron Cooper and Timothy Flowers are prosecuting the case, with assistance from Assistant U.S. Attorney Shelley D. Weger.
If convicted, Noori faces a maximum statutory penalty of 20 years in prison and a $4 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Sacramento Man Indicted for Terrorism OffenseRead the Press Release
SACRAMENTO, Calif. — A Sacramento grand jury returned an indictment today charging Aws Mohammed Younis Al-Jayab, 23, of Sacramento, with one count of making a false statement involving international terrorism, Assistant Attorney General for National Security John P. Carlin and United States Attorney Benjamin B. Wagner announced.
Al-Jayab is in custody and is scheduled for arraignment on January 22, 2016, at 2:00 PM in courtroom 25 before U.S. Magistrate Judge Kendall J. Newman. Al-Jayab was arrested by criminal complaint on Jan. 7, 2016.
According to the indictment, on Oct. 6, 2014, Al-Jayab was interviewed by U.S. Citizenship and Immigration Services and indicated that he had not ever: been a member of any rebel group or militia; provided material support for any person or group engaged in terrorist activity; and been a member of a group, or assisted in a group, which used or threatened the use of weapons against others. Al-Jayab also allegedly stated during the interview that he had traveled to Turkey in late 2013 and early 2014 to visit his grandmother. The indictment alleges that all of the aforementioned statements are false.
If convicted, Al-Jayab faces a maximum statutory penalty of eight 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 is the product of an investigation by the Federal Bureau of Investigation and the Sacramento Joint Terrorism Task Force (JTTF), a team of federal, state, and local law enforcement agents and officers investigating domestic and international terrorism. Assistant United States Attorney Jill Thomas and Trial Attorney Andrew Sigler of the National Security Division’s Counterterrorism Section are prosecuting the case. The investigation is ongoing.
California Man Indicted for Terrorism OffenseRead the Press Release
A grand jury in Sacramento, California, returned an indictment today charging Aws Mohammed Younis Al-Jayab, 23, of Sacramento, with one count of making a false statement involving international terrorism, Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Benjamin B. Wagner of the Eastern District of California announced.
Al-Jayab is in custody and is scheduled for arraignment on Jan. 22, 2016, at 2:00 PM PST before U.S. Magistrate Judge Kendall J. Newman of the Eastern District of California. He was arrested by criminal complaint on Jan. 7, 2016.
According to the indictment, on Oct. 6, 2014, Al-Jayab was interviewed by U.S. Citizenship and Immigration Services and indicated that he had not ever: been a member of any rebel group or militia; provided material support for any person or group engaged in terrorist activity; and been a member of a group, or assisted in a group, which used or threatened the use of weapons against others. Al-Jayab also allegedly stated during the interview that he had traveled to Turkey in late 2013 and early 2014 to visit his grandmother. The indictment alleges that all of the aforementioned statements are false.
If convicted, Al-Jayab faces a maximum statutory penalty of eight 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 is the product of an investigation by the FBI and the Sacramento Joint Terrorism Task Force (JTTF). The case is being prosecuted by Assistant U.S. Attorney Jill Thomas of the Eastern District of California and Trial Attorney Andrew Sigler of the National Security Division’s Counterterrorism Section. The investigation is ongoing.
Al-Jayab Indictment
Modesto Man Sentenced to Prison for Stealing More Than $316,000 of Government Property from the Tracy DLA DepotRead the Press Release
SACRAMENTO, Calif. — Eric M. Shaffer, 42, of Modesto, was sentenced today by United States District Judge John A. Mendez to one year and a day in prison for theft of Department of Defense property worth more than $316,000, United States Attorney Benjamin B. Wagner announced.
According to court documents, Shaffer was an employee at the Department of Defense Logistics Agency, San Joaquin Distribution Center, in Tracy, (Tracy DLA Depot). Shaffer regularly had access to new goods delivered by venders that were stored at the Tracy DLA Depot before being shipped to military bases in the Pacific Ocean region and elsewhere.
Between February 2011, and January 2015, Shaffer stole from the Tracy DLA Depot at least 660 items of government property and resold them in approximately 365 transactions, including 325 auctions on a popular online auction website. Shaffer’s scheme generated approximately $238,000 in illicit revenue. The approximate replacement value of the property Shaffer stole and resold exceeded $316,000. In addition to the prison sentence today, Judge Mendez ordered Shaffer to pay $316,557 in restitution.
This case was the product of an investigation by the General Services Administration, Office of Inspector General; the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and the Department of Defense, Defense Criminal Investigative Service. Assistant U.S. Attorney André M. Espinosa prosecuted the case.
Three Sentenced in Bakersfield Heroin Trafficking ConspiracyRead the Press Release
FRESNO, Calif. — Three defendants have been sentenced by United States District Judge Anthony W. Ishii for a conspiracy to distribute heroin, United States Attorney Benjamin B. Wagner announced.
On Monday, Rafael Legorreta, 34, of Bakersfield, was sentenced to nine years and five months in prison, and Francisco Rivera, 29 of Palmdale, was sentenced to seven years in prison. On January 4, 2016, Julio Perez, 32, of Bakersfield, was sentenced to 10 years in prison.
According to court documents, on December 2, 2014, members of Kern County Sheriff’s Gang Suppression Unit conducted a probationary search of the home of Julio Perez. Perez, Legorreta, and Rivera were located in the locked basement of the residence with approximately 10 lbs. of heroin, together with packaging material, zip lock bags, digital scales, metal strainers, a blender, and drug paraphernalia, among other items. All three defendants appeared to have heroin residue on their hands and clothing, and all three subsequently admitted to their involvement in the conspiracy.
This case was the product of an investigation by the Federal Bureau of Investigation and the Kern County Sheriff’s Gang Suppression Unit. Assistant United States Attorney Brian K. Delaney prosecuted the case.
Sacramento Dentist Pleads Guilty to Billing for Unnecessary or Unperformed Dental WorkRead the Press Release
SACRAMENTO, Calif. — David M. Lewis, 62, of Sacramento, pleaded guilty today to health care fraud for his role in a scheme to defraud the health care benefit program used by United Parcel Service (UPS) employees, United States Attorney Benjamin B. Wagner announced.
According to court documents, beginning in late 2008 or early 2009, Lewis, a dentist practicing in Sacramento, began targeting UPS employees for dental treatment because their health care plan under the Northern California General Teamsters Security Fund provided 100 percent coverage without any annual limits. Lewis offered cash and other incentives to UPS patients for receiving dental treatment or for recruiting other UPS employees to receive such treatment.
In some instances, Lewis caused claims to be submitted to Delta Health Systems, which administered the UPS health care plan, that falsely billed the plan for work that was never performed. In many other instances, Lewis performed unnecessary dental work on UPS employees, including root canals, and claims were submitted to Delta for payment for these unnecessary services.
Lewis created false narratives for dental work that was not performed or created false statements about purported pre-existing dental conditions to justify the work performed. In some instances, Lewis drilled into teeth to install temporary filings and instructed his assistants to take X-rays of the temporary filings. Lewis then submitted claims to Delta with X-rays of the temporary fillings, falsely claiming that the X‑rays depicted tooth decay justifying further restorative procedures.
The total loss associated with Lewis’s health care fraud may be as high as $1 million.
An employee at Lewis’s dental practice, Nichol Ramirez aka Nichol Lomack, previously pleaded guilty to one count of health care fraud for her part in the fraud scheme. (2:14-cr-056 MCE)
These cases are the product of an investigation by the U.S. Department of Labor, Office of Inspector General-Office of Labor Racketeering and Fraud Investigations and the U.S. Department of Labor, Employee Benefits Security Administration, with assistance from the California Dental Board and the California Attorney General’s Office. Assistant United States Attorney Todd A. Pickles is prosecuting the cases.
Lewis is scheduled to be sentenced by United States District Judge Morrison C. England Jr. on March 31, 2016, and Lomack is scheduled to be sentenced on September 1, 2016. Both Lewis and Lomack face a maximum statutory penalty of 10 years in prison and a fine of $250,000 or twice the gross loss or gain of the scheme. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Modesto Man Sentenced in Two Mortgage Fraud SchemesRead the Press Release
FRESNO, Calif. — Tony Huy Havens, 42, of Modesto, was sentenced Monday by United States District Judge Lawrence J. O'Neill to three years and five months in prison for his role in two mortgage fraud schemes, United States Attorney Benjamin B. Wagner announced.
Havens had earlier pleaded guilty to committing mail fraud and wire fraud in the two schemes, which were charged in separate criminal cases.
According to the indictment in the first scheme, Havens devised an “advance fee” scheme that targeted victims in at least eight states who were seeking multi-million dollar loans for large construction projects that were in danger of foreclosure. Havens provided the victims with fraudulent documents that showed a third-party lender was prepared to make a loan to the victim. On Havens' instructions, the victims wire-transferred money into a bank account controlled by Havens to pay in advance certain costs associated with the loans. No loans were ever made. In total, Havens represented that he could arrange at least $1.1 billion in financing for at least 15 victim borrowers, and collected at least $248,750 by wire transfers from these victim borrowers.
According to the indictment in the second scheme, Havens arranged to purchase a single family residence in Modesto using two relatives as straw buyers. He obtained a loan in the name of the straw buyers that exceeded the actual selling price of the property, and arranged to have a portion of the purchase price sent back to him, which he used as the down payment for the purchase.
The cases were the product of investigations by the Federal Bureau of Investigation, the Stanislaus County District Attorney's Office, and the Federal Housing Financing Agency, Office of Inspector General. Assistant United States Attorneys Mark J. McKeon and Mia Giacomazzi prosecuted the cases.
Havens was ordered to self-surrender to begin serving his sentence on April 4, 2016.
IRS Employee Pleads Guilty to Tax FraudRead the Press Release
FRESNO, Calif. — Yolanda Castro, 48, an employee of the U.S. Internal Revenue Service in Fresno, pleaded guilty today to aiding and assisting in the preparation of a false tax return, United States Attorney Benjamin B. Wagner announced.
According to court documents, Castro was employed by the IRS for approximately 20 years, including as a tax examiner and contact representative. Between 2007 and 2013, she prepared and filed false federal income tax returns for herself, her family members and others in which she fraudulently claimed tax deductions and credits. For instance, on her own 2008 tax return, Castro claimed a credit for education expenses that she did not incur, and provided the IRS phony textbook receipts to support the claim. Likewise, in tax returns she prepared for herself and others, Castro claimed child care expenses that had not been incurred.
This case is the product of an investigation by the U.S. Department of the Treasury Inspector General for Tax Administration and the IRS‑Criminal Investigation. Assistant United States Attorney Mark J. McKeon is prosecuting the case.
Castro is scheduled to be sentenced by Judge Dale A. Drozd on April 4, 2016. Castro faces a maximum statutory penalty of three years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Fresno Woman Sentenced to Prison for Embezzling over Half a Million Dollars from Law FirmRead the Press Release
FRESNO, Calif. — Shelley Corkins, aka Shelley Kimbrell, 39, of Fresno, was sentenced Monday by Senior United States District Judge Anthony W. Ishii to two years and three months in prison for three counts of wire fraud in connection with a scheme to embezzle more than $585,000 from the law firm that formerly employed her, United States Attorney Benjamin B. Wagner announced.
According to court documents, Corkins was employed by a Fresno-based law firm as a bookkeeper and accounting department supervisor. Between January 2008 and May 2012, Corkins abused her access and authority to manage the law firm’s finances and embezzled the law firm’s money for her own personal use. Corkins used her company credit card to make personal purchases at various retail outlets, including clothing and toy stores, electronically transferred funds from the law firm’s bank accounts to her own, and embezzled the law firm’s petty cash. Corkins pleaded guilty to three counts of wire fraud on February 10, 2015.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Henry Z. Carbajal III and Christopher D. Baker prosecuted the case.
Bakersfield Man Pleads Guilty to Laser Strikes on Sheriff HelicopterRead the Press Release
FRESNO, Calif. —Pablo Cesar Sahagun, 26, of Bakersfield, pleaded guilty today to aiming the beam of a laser pointer at a Kern County Sheriff’s helicopter, United States Attorney Benjamin B. Wagner announced.
In pleading guilty, Sahagun acknowledged that on February 26, 2015, he repeatedly struck and tracked a Kern County Sheriff’s Office helicopter, Air-1, with the beam of a green laser pointer. According to court documents, the laser pointer was key activated and labeled as a Laser 301, a device that purports to emit a one-watt laser beam, which is 2,000 times more powerful than what is legally permissible for a laser pointer.
Reports of laser attacks on aircraft have increased dramatically in recent years as powerful laser devices have become more affordable and widely available to the public. From 2011 to 2015, there have been over 23,000 laser illumination incidents in the United States reported to the Federal Aviation Administration (FAA). In 2015, in the Eastern District of California, which encompasses 34 counties in the eastern portion of California, there were 213 reported laser incidents. Lasers can completely incapacitate pilots who are trying to fly safely to their destinations, endangering their crew members, passengers and people on the ground.
Sahagun is scheduled for sentencing before U.S. District Judge Dale A. Drozd on April 4, 2016. Sahagun faces a maximum prison term of five years and a fine of up to $250,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The case against Sahagun was investigated by the Federal Bureau of Investigation, the Kern County Sheriff’s Office, and Bakersfield Police Department. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
If you have information about a lasing incident, or see someone pointing a laser at an aircraft, call your local FBI field office or dial 911.
Sacramento Man Arrested for Terrorism OffenseRead the Press Release
SACRAMENTO, Calif. — A Sacramento resident was arrested today on a federal charge of making a false statement involving international terrorism. Aws Mohammed Younis Al-Jayab, 23, is charged in a criminal complaint that was unsealed today in the U.S. District Court for the Eastern District of California following his arrest. He is in custody and will be making an initial appearance Friday in federal court in Sacramento at 2:00 PM.
The arrest was announced by Assistant Attorney General for National Security John P. Carlin, United States Attorney Benjamin B. Wagner of the Eastern District of California, and Special Agent in Charge Monica M. Miller of the FBI’s Sacramento Division.
“Aws Mohammed Younis Al-Jayab allegedly traveled overseas to fight alongside terrorist organizations and lied to U.S. authorities about his activities,” said Assistant Attorney General Carlin. “The National Security Division’s highest priority is protecting the nation from terrorism, and we will continue to hold accountable those who seek to join or aid the cause of terrorism, whether at home or abroad.”
“According to the allegations in the complaint, the defendant traveled to Syria to take up arms with terrorist organizations and concealed that conduct from immigration authorities,” said U.S. Attorney Wagner. “While he represented a potential safety threat, there is no indication that he planned any acts of terrorism in this country. I commend the FBI’s Joint Terrorism Task Force for their dedicated work on this matter.”
“In today’s complex terrorism environment, our Joint Terrorism Task Force plays an important role in combating the threat of terrorism. The collaboration is stronger than ever and essential to protect our communities from harm,” said Special Agent in Charge Monica M. Miller of the Federal Bureau of Investigation Sacramento Field Office. “The public plays an equal, if not more important, role in protecting the community. We encourage those who encounter individuals who express an intent to do harm or claim allegiance to a terrorist group—whether in person or online—to voice their concerns to law enforcement.”
According to the complaint, Al-Jayab is a Palestinian born in Iraq, who emigrated from Syria to the United States as a refugee in October 2012. Between October 2012 and November 2013, while living in Arizona and Wisconsin, he communicated over social media with numerous other individuals about his intent to return to Syria to fight for terrorist organizations. In those communications, according to the complaint, Al-Jayab discussed his previous experience with firearms and with fighting against the regime in Syria. On Nov. 9, 2013, he flew from Chicago to Turkey, and then traveled to Syria. Between November 2013 and January 2014, Al-Jayab allegedly reported on social media that he was in Syria fighting with various terrorist organizations, including Ansar al-Islam, a designated foreign terrorist organization since 2004. He returned to the United States on Jan. 23, 2014, and settled in Sacramento.
The complaint alleges that on October 6, 2014, Al-Jayab was interviewed by U.S. Citizenship and Immigration Services and responded in the negative to numerous questions, including whether he had ever been a member of any rebel group or militia; whether he had ever provided material support for any person or group engaged in terrorist activity; and whether he had ever been a member of a group, or assisted in a group, which used or threatened the use of weapons against others. Al-Jayab also allegedly stated during the interview that he had traveled to Turkey in late 2013 and early 2014 to visit his grandmother. The complaint alleges that all of those answers were materially false.
If convicted, Al-Jayab faces a maximum statutory penalty of eight 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 is the product of an investigation by the Federal Bureau of Investigation and the Sacramento Joint Terrorism Task Force (JTTF), a team of federal, state, and local law enforcement agents and officers investigating domestic and international terrorism. Assistant United States Attorney Jill Thomas and Trial Attorney Andrew Sigler of the National Security Division’s Counterterrorism Section are prosecuting the case. The investigation is ongoing.
California Man Arrested for Making False Statements in a Terrorism InvestigationRead the Press Release
A Sacramento, California, resident was arrested today on a federal charge of making a false statement involving international terrorism. Aws Mohammed Younis Al-Jayab, 23, is charged in a complaint that was unsealed today in the U.S. District Court of the Eastern District of California following his arrest. He will have his initial appearance tomorrow at 2:00 p.m. PST in Sacramento.
The arrest was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Benjamin B. Wagner of the Eastern District of California and Special Agent in Charge Monica M. Miller of the FBI’s Sacramento Division.
“Aws Mohammed Younis Al-Jayab allegedly traveled overseas to fight alongside terrorist organizations and lied to U.S. authorities about his activities,” said Assistant Attorney General Carlin. “The National Security Division’s highest priority is protecting the nation from terrorism, and we will continue to hold accountable those who seek to join or aid the cause of terrorism, whether at home or abroad.”
“According to the allegations in the complaint, the defendant traveled to Syria to take up arms with terrorist organizations and concealed that conduct from immigration authorities,” said U.S. Attorney Wagner. “While he represented a potential safety threat, there is no indication that he planned any acts of terrorism in this country. I commend the FBI’s Joint Terrorism Task Force for their dedicated work on this matter.”
“In today’s complex terrorism environment, our Joint Terrorism Task Force plays an important role in combating the threat of terrorism. The collaboration is stronger than ever and essential to protect our communities from harm,” said Special Agent in Charge Miller. “The public plays an equal, if not more important, role in protecting the community. We encourage those who encounter individuals who express an intent to do harm or claim allegiance to a terrorist group – whether in person or online – to voice their concerns to law enforcement.”
According to the complaint, Al-Jayab is a Palestinian born in Iraq, who came to the United States as an Iraqi refugee in October 2012. Between October 2012 and November 2013, while living in Arizona and Wisconsin, he communicated over social media with numerous other individuals about his intent to return to Syria to fight for terrorist organizations. In those communications, according to the complaint, Al-Jayab discussed his previous experience with firearms and with fighting against the regime in Syria. On Nov. 9, 2013, he flew from Chicago to Turkey, and then traveled to Syria. Between November 2013 and January 2014, Al-Jayab allegedly reported on social media that he was in Syria fighting with various terrorist organizations, including Ansar al-Islam, a designated foreign terrorist organization since 2004. He returned to the United States on Jan. 23, 2014, and settled in Sacramento.
The complaint alleges that on Oct. 6, 2014, Al-Jayab was interviewed by U.S. Citizenship and Immigration Services and responded in the negative to numerous questions, including whether he had ever been a member of any rebel group or militia; whether he had ever provided material support for any person or group engaged in terrorist activity; and whether he had ever been a member of a group, or assisted in a group, which used or threatened the use of weapons against others. Al-Jayab also allegedly stated during the interview that he had traveled to Turkey in late 2013 and early 2014 to visit his grandmother. The complaint alleges that all of those answers were materially false.
If convicted, Al-Jayab faces a maximum statutory penalty of eight years in prison and a $250,000 fine. Any potential sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal history, if any, the defendant’s role in the offense and the characteristics of the violation.
The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The ongoing investigation is being conducted by the FBI’s Joint Terrorism Task Force. The case is being prosecuted by Assistant U.S. Attorney Jill Thomas of the Eastern District of California and Trial Attorney Andrew Sigler of the National Security Division’s Counterterrorism Section.
Al-Jayab Complaint (Has Been Unsealed)
Bakersfield Man Sentenced to 9 Years in Prison for Possessing Methamphetamine for DistributionRead the Press Release
FRESNO, Calif. — Jesus Manuel Peraza Ruiz, 56, of Bakersfield, was sentenced Monday by United States District Judge Lawrence J. O'Neill to nine years in prison for possessing methamphetamine with the intent to distribute, United States Attorney Benjamin B. Wagner announced.
According to court documents, a vehicle driven by Peraza Ruiz was stopped in Kern County, and a narcotics detection K-9 alerted to six packages of methamphetamine inside a hidden compartment. The methamphetamine weighed 5.8 pounds and the Drug Enforcement Administration laboratory determined it was 98.8 percent pure.
This case was the product of an investigation by the Drug Enforcement Administration, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Bakersfield Police Department, the Kern County Sheriff’s Office, and the Kern County Probation Department. Assistant United States Attorney Laurel J. Montoya prosecuted the case.
Peraza Ruiz’s co-defendants were previously sentenced by Judge O’Neill: Baltazar Garcia was sentenced to 10 years in prison, Adam Vega was sentenced to eight years in prison, and Robert Canchola was sentenced to five years and 10 months in prison.
San Joaquin County Farmer Pleads Guilty to Assault on a Federal OfficerRead the Press Release
SACRAMENTO, Calif. — Andrew J. Watkins, 48, of Linden, pleaded guilty today before U.S. Magistrate Judge Edmund F. Brennan to a misdemeanor assault on a federal officer, United States Attorney Benjamin B. Wagner announced.
According to court documents, on February 27, 2012, Watkins pointed a semi‑automatic pistol at a United States Fish and Wildlife special agent while the agent was performing a field inspection for possible violation of the Endangered Species Act on fenced farmland owned by the Watkins family. Watkins continued to point the pistol at the agent even after the agent identified himself as a federal agent. The situation was diffused with the arrival of Watkins’ brother.
“We will prosecute persons who attempt to interfere with or intimidate federal law enforcement agents in the performance of their duties,” said U.S. Attorney Wagner.
Watkins is scheduled to be sentenced on March 21, 2016. The plea agreement contemplates a sentence of four years of probation, a fine between $10,000 and $25,000, and the condition that the defendant is prohibited from possessing any firearm outside his residence. The actual sentence, however, will be determined at the discretion of the court at the sentencing hearing.
This case is the product of an investigation by the U.S. Fish and Wildlife Service. Assistant U.S. Attorneys Richard Bender and Samuel Wong are prosecuting the case.
Modesto Pair Indicted for Selling Large-Caliber FirearmsRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Orlando Rangel, 31, and George Boone, 38, both of Modesto, charging them with being a felon in possession of a firearm, United States Attorney Benjamin B. Wagner announced. In addition, Rangel was charged with possession of a stolen firearm.
According to court documents, agents learned that Boone and Rangel, previously convicted felons, were selling a .50‑caliber rifle. Over the course of several days in November and December 2015, undercover agents purchased the .50-caliber rifle, which was equipped with a scope and bipod. Rangel admitted that he had stolen the firearm.
This case is the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Modesto Police Department. Assistant United States Attorney Michael Frye is prosecuting the case.
If convicted, the defendants 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.
Stockton Woman Charged with Half Million Dollar Unemployment FraudRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an 11-count indictment today against Deborah Hollimon, 39, last known residences of Stockton, California and West Memphis, Arkansas, charging her with unemployment fraud and aggravated identity theft, United States Attorney Benjamin B. Wagner announced.
According to court documents, between September 2012 and September 2015, Hollimon operated a “fictitious employer” scheme. Hollimon created employers with the California Employment Development Department (EDD) that were entirely fictitious and did not conduct any business. Hollimon then caused the submission of information to the EDD falsely indicating that various persons, including herself and various unwitting victims of identity theft, were employed by the fictitious entities. Hollimon subsequently filed unemployment claims in her own name and the names of the fake laid-off employees. The fraudulent unemployment insurance benefits were usually mailed to an address controlled by Hollimon. In this way, Hollimon collected over $550,000 in fraudulent unemployment insurance benefits.
This case is the product of an investigation by the Department of Labor, Office of Inspector General, the California Employment Development Department – Investigations Division, and the U.S. Postal Inspection Service. Assistant United States Attorney Jared C. Dolan is prosecuting the case.
Hollimon’s current whereabouts are unknown. Anyone with information on her whereabouts should call (415) 625-2685.
If convicted, Hollimon faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. She also faces a mandatory minimum two years in prison for aggravated identity theft, which would run consecutive to any other sentence imposed. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Texas Man Indicted for Unemployment Insurance Fraud Perpetrated Through Misused Identities and Undocumented WorkersRead the Press Release
FRESNO, Calif. — Fernando Alanis, 52, of Rio Grande City, Texas and Parlier, California, was arrested yesterday pursuant to an indictment charging him in connection with an unemployment insurance fraud scheme, United States Attorney Benjamin B. Wagner announced. On November 19, 2015, a federal grand jury returned a 20-count indictment against Alanis charging him with mail fraud.
According to court documents, Alanis was a supervisor with a farm labor contractor located in Sanger, California. Alanis would arrange for the hiring of laborers and would supervise forepersons or “crew bosses” who would oversee laborers in fruit packing houses and agricultural fields. Alanis would employ undocumented workers by having the laborers work under the identities of Alanis’ relatives and acquaintances who were authorized to work in the United States. The wages earned by the undocumented laborers would be reported to the California Employment Development Department as wages earned by the identities arranged by Alanis, and not by the actual workers who earned the wages. After the seasonal agricultural employment was over, Alanis provided documentation to the individuals whose identities were used to enable them to file unemployment insurance claims for work they never performed and wages they did not earn. The individuals whose identities were used would pay Alanis for the information to enable the unemployment insurance claims, or would otherwise share those stolen benefits with Alanis.
This case was the product of an investigation by the Department of Labor, Office of Inspector General, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the California Employment Development Department, Investigation Division. Assistant United States Attorney Henry Z. Carbajal III is prosecuting the case.
If convicted, Alanis faces a maximum statutory penalty of twenty 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.
Rancho Cordova Woman Charged with Falsifying Social Security RecordsRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment on Thursday, December 17, 2015, against Nelli Kesoyan, 43, of Rancho Cordova, charging her with making false entries and reports, United States Attorney Benjamin B. Wagner announced.
According to court documents, Kesoyan was employed by the Social Security Administration as a claims representative. On October 10, 2014, she made false entries in Social Security Administration records in order to deceive and mislead United States officials conducting naturalization proceedings for another individual.
The indictment was unsealed on Monday, and Kesoyan was arraigned Monday afternoon. She pleaded not guilty. A status conference was set for January 26, 2016, at 09:15 AM in Courtroom 6 before United States District Judge John A. Mendez.
This case is the product of an investigation by the Social Security Administration Office of the Inspector General, the Federal Bureau of Investigation, and the Internal Revenue Service-Criminal Investigation. Assistant United States Attorneys Jeremy Kelley and Jared Dolan are prosecuting the case.
If convicted, Kesoyan faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Visalia & Simi Valley Men Sentenced to Federal Prison for Possessing Child PornographyRead the Press Release
FRESNO, Calif. — United States Attorney Benjamin B. Wagner announced that on Monday, December 21, 2015, United States District Judge Lawrence J. O’Neill sentenced two defendants for child exploitation offenses.
In the first case, Steven Christopher Montes, 26, of Visalia, was sentenced to seven years in prison, to be followed by a 10-year term of supervised release, for possessing sexually explicit videos of minors. According to court documents, from November 2013 through August 2014 and while serving as a band teacher at Riverdale High School, Montes knowingly and surreptitiously took sexually explicit videos of minors on campus. Montes obtained the videos by directing student band members to remove all of their street clothes, including under garments, when changing into band or color guard uniforms inside a particular storage room where he had secretly set up a laptop computer to record them. In sentencing, Judge O’Neill stated that Montes’s conduct was “particularly reprehensible because of [his] position as an employee of the high school.”
This case was the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Fresno County Sheriff’s Office and the Kings County District Attorney Investigators’ Office. Assistant U.S. Attorneys Brian W. Enos and Vincente A. Tennerelli prosecuted the case.
In the second case, Alexander Kastler, 28, of Simi Valley, was sentenced to eight years and eight months in prison for possession of child pornography. According to court documents, Kastler, who has a previous conviction for possession of child pornography and was residing at a sober-living facility in Kern County, was found in possession of a cellphone and tablet computer that contained thousands of images of child pornography.
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Michael G. Tierney prosecuted the case.
U.S. Attorney Joins Community Leaders at Two Weekend Events to Remember Victims in San Bernardino and Stand Against HateRead the Press Release
SACRAMENTO, Calif. — United States Attorney Benjamin B. Wagner joined community leaders at two events this weekend designed to promote unity and peace in the wake of the mass shooting in San Bernardino.
On Friday, December 18, 2015, U.S. Attorney Wagner participated in a panel held by the Tarbiya Institute in Rocklin. “Rising to the Challenge: An Urgent Community Dialogue” was an opportunity for Muslim community members to express their concerns and to learn how best to respond to challenging situations. U.S. Attorney Wagner described the government’s response to the increase in incidents of vandalism, threats and property damage directed at Muslim organizations and individuals.
On Saturday, U.S. Attorney Wagner joined other officials and a diverse assembly of community and faith leaders at the “Unity & Peace Rally in Support of San Bernardino and Against Hate” held at the Capitol in Sacramento. In the aftermath of the San Bernardino shooting, hundreds gathered at the Capitol steps to show their support for the victims to denounce ant-Muslim bigotry, and to pray for peace and unity.
“In the face of a terrorist attack, we should demonstrate unity as Americans, not division. We should embrace our tradition of tolerance and religious pluralism, not turn on our neighbors,” said U.S. Attorney Wagner. “One of the most important functions of the U.S. Department of Justice is to protect the rights of religious minorities. In the wake of terrorist incidents in Europe and here in California, there has been an increase in reports of threats, harassment and other incidents of attempted intimidation of members of American Muslim communities. Targeting others for violence or intimidation because of their religious affiliation is itself an act of terrorism, and we will not hesitate to prosecute those who engage in such conduct.”
Recently DOJ’s Head of the Civil Rights Division Vanita Gupta delivered remarks at the White House’s convening of “Celebrating and Protecting America’s Tradition of Religious Pluralism.” For a link to the text of her remarks click here.
Alleged Killer Extradited to Michoacán, MexicoRead the Press Release
FRESNO, Calif. — On Tuesday, December 15, 2015, Jesús Flores Buenrostro, 36, of California, was ordered to be extradited to Mexico where he is wanted to stand trial for the alleged 2007 killing of a man in Sahuayo de Morales, Michoacán, United States Attorney Benjamin B. Wagner announced.
According to the extradition request submitted by Mexico, Jesús Flores Buenrostro is charged with homicide after allegedly shooting a man on April 30, 2007. According to witness statements, Jesús Flores Buenrostro and some companions went to a square in the town where a fight had broken out earlier in the evening. When they arrived at the square, Jesús Flores Buenrostro and his companions encountered a group of men. Jesús Flores Buenrostro loaded a firearm and fired two shots at the group of men. The victim was struck twice by the shots and died of his wounds. Jesús Flores Buenrostro, an American citizen, fled to the United States.
The United States Marshals Service arrested Jesús Flores Buenrostro in Kern County in July 2015. On December 15, 2015, following federal court proceedings in Fresno, the court certified his extraditability to Mexico.
“Just as we ask Mexico’s cooperation in extraditing those who violate our laws, that country seeks ours in extraditing those who violate their laws,” said United States Attorney Wagner. “We have a mutual interest in ensuring that neither country is a safe haven for those fleeing justice in the other.”
This case was handled by Assistant U.S. Attorney Daniel Griffin of the Eastern District of California, the Office of International Affairs in the Justice Department’s Criminal Division, and the U.S. Marshals Service.
U.S. Attorney Announces New Fresno Office ChiefRead the Press Release
FRESNO, Calif. — United States Attorney Benjamin B. Wagner announced today the appointment of Kirk Sherriff as the new chief for the U.S. Attorney’s Office in Fresno. Sherriff’s appointment follows the departure of long-time Fresno chief Mark Cullers who has been appointed by the Governor to serve as a Judge of the Superior Court for Fresno County.
Cullers, a Sacramento native, has served as chief of the U.S. Attorney's Office, Eastern District of California, Fresno Division since 2003. Prior to that he served as deputy chief from 1997 to 2003 and as an Assistant U.S. Attorney from 1988 to 1997. Cullers was an associate attorney at Kronick, Moskovitz, Tiedemann and Girard from 1986 to 1988. He earned his Juris Doctor degree from the George Washington University Law School and a Bachelor of Arts Degree from the University of California, Los Angeles. As chief of the office, Cullers mentored many Assistant United States Attorneys, established a tone of collaboration and team spirit and was an outstanding representative of the office throughout the greater Fresno region.
Assistant United States Attorney Kirk Sherriff has worked in the Fresno office since 2002. He initially served for five years in the civil division and joined the criminal division in 2007. Sherriff has handled many of the most complex and high-profile cases in the office and has been the White Collar Unit chief for the last three years. In particular, he has overseen and personally litigated multiple large-scale mortgage fraud prosecutions, which arose out of the financial crisis that so severely impacted California’s Central Valley. As unit Chief, Sherriff oversaw tremendous growth in the office’s white collar practice, and served as a mentor to many new prosecutors. Before joining our office, Sherriff spent six years with a major international law firm in New York and Paris. He is a cum laude graduate of both Columbia University and Harvard Law School.
The Fresno office is responsible for federal criminal prosecution and civil litigation in an 11-county area from Modesto to the Los Angeles County line. It handles federal cases from these counties: Calaveras, Fresno, Inyo, Kern, Kings, Madera, Mariposa, Merced, Stanislaus, Tulare, and Tuolumne.
Washington Man Charged with Sending Death ThreatsRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today against Scott Anthony Orton, 57, of Puyallup, Washington, charging him with transmitting interstate threats, United States Attorney Benjamin B. Wagner announced.
According to court documents, Orton posted several threatening statements on a popular news website in which he expressed his intent to travel to Placerville, California to kill the target of the threats who was an officer of StemExpress.
According to the indictment, on July 16, 2015, among other threats, Orton wrote, “The management of StemExpress should be taken by force and killed in the streets today. Kill StemExpress employees. I'll pay you for it.”
“Terrorizing others through threats of violence, whether communicated in person or through media websites, is cruel, dangerous and disruptive, and is also a federal crime,” said U.S. Attorney Wagner. “Those who seek to terrorize others online should not assume that they will be protected by the anonymity of the Internet. We will identify and prosecute them.”
“The FBI will identify and investigate threats and those who solicit violence on the Internet,” said Special Agent in Charge Monica M. Miller of the Federal Bureau of Investigation’s Sacramento field office. “While we all have a right to state our opinions, anonymously terrorizing others with threats of significant harm will not be tolerated.”
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Brian A. Fogerty is prosecuting the case.
Orton is scheduled to be arraigned before United States Magistrate Judge Kendall J. Newman on December 29, 2015, at 2:00 p.m.
If convicted, Orton faces a maximum statutory penalty of 5 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.
U.S. Attorney Wagner Announces Selection of Sacramento for Phase II Anti Trafficking Coordination Team (ACTeam)Read the Press Release
SACRAMENTO, Calif. — Today, United States Attorney Benjamin B. Wagner announced the selection of Sacramento in the Eastern District of California as one of only six locations from across the United States designated to form new federal task forces as part of the Anti-Trafficking Coordination Team (ACTeam) Initiative, an interagency federal law enforcement initiative aimed at streamlining the investigation and prosecution of federal human trafficking offenses.
U.S. Attorney Wagner’s announcement follows the joint announcement of Attorney General Loretta E. Lynch, Secretary of Homeland Security Jeh Johnson, and Secretary of Labor Thomas E. Perez earlier today designating the following cities as Phase II ACTeam sites: Cleveland, Ohio; Minneapolis, Minnesota; Newark, New Jersey; Portland, Maine; Portland, Oregon; and Sacramento, California. Sacramento was selected based on the commitment to identifying, investigating and prosecuting forced labor, international sex trafficking, and adult sex trafficking; the prevalence or suspected prevalence of these types of trafficking in the Sacramento area; and levels of cooperation among various law enforcement agencies and the US Attorney’s Office to combat human trafficking.
U.S. Attorney Wagner stated: “Consistent with the direction provided by the Attorney General, the investigation and prosecution of all forms of human trafficking is a top priority for our office. We are proud of our outstanding record of prosecuting various child exploitation offenses, and we are committed to continuing and enhancing our critical work in the identification and prosecution of offenses related to forced labor, international sex trafficking, and adult sex trafficking. I am pleased by our selection as an ACTeam location, which reflects the hard work we’ve already done in this area and will assist us in doing even more.”
ACTeams are aimed at developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking, and sex trafficking of adults by force, fraud, and coercion, complementing Project Safe Childhood and related efforts aimed at combating child sexual exploitation, including child sex trafficking. ACTeams bring together federal prosecutors and federal agents from multiple federal investigative agencies to develop and implement proactive anti-trafficking case identification, investigation, and prosecution strategies in close coordination with one another and with national anti-trafficking subject matter experts. Over the next two years, teams are expected to develop high-impact federal investigations and prosecutions, dismantle human-trafficking networks, vindicate the rights of human-trafficking victims and bring traffickers to justice. The new EDCA team will consist of personnel from Federal Bureau of Investigation, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the U.S. Department of Labor.
During Phase I of the ACTeam Initiative, Phase I Pilot ACTeams were convened in Atlanta, Georgia; El Paso, Texas; Kansas City, Missouri; Los Angeles, California; Memphis, Tennessee; and Miami, Florida. Phase I proved highly successful, with ACTeam Districts collectively increasing prosecutions by 119 percent, compared to 35 percent nationwide during the same two-year period.
Based on the outstanding results of Phase I, Attorney General Lynch, Secretary of Homeland Security Johnson, and Secretary of Labor Perez launched Phase II on June 25, 2015, by soliciting joint applications from United States Attorneys’ Offices and their federal law enforcement partners nationwide.
The locations for Phase II were selected by unanimous consensus of the Federal Enforcement Working Group after a rigorous, competitive and nationwide selection process. The group includes subject matter experts from the Department of Justice (including the Civil Rights Division’s Human Trafficking Prosecution Unit, the Executive Office of U.S. Attorneys and the FBI’s Civil Rights Unit); the Department of Homeland Security (including ICE and Homeland Security Investigations’ Human Smuggling and Trafficking Unit); and the Department of Labor (including the Office of the Inspector General and the Wage and Hour Division).
The Attorney General has declared efforts to bring human traffickers to justice and to restore the lives of human trafficking survivors be among the highest priorities of the Department of Justice.
The Eastern District of California has an accomplished history of prosecuting cases involving the sex trafficking of minors. Recent developments in such cases include: On December 14, 2015, Tyrell Richmond, 33, of Visalia, pleaded guilty to sex trafficking of a minor. On September 10, 2015, a federal grand jury in Sacramento charged Jeremy Ray Warren, 22, of Vallejo, and Alyssa Tegan Brulez, 22, of Vacaville, with sex trafficking of children, and brought a separate indictment charging Jarrail Lamont Smith, 23, of Cleveland, Ohio, with transportation of minors with intent to engage in prostitution. On August 24, 2015, Javier Solis, 30, of Fresno, was sentenced to 11 years and nine months in prison for sex trafficking of a minor. On August 18, 2015, Michael Anthony Andrade, 35, of Fresno, was sentenced to 12 years and seven months in prison for sex trafficking of a minor.
Six Bakersfield Residents Indicted for Conspiracy to Distribute MethamphetamineRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Carlos Gerardo Blanco, 25; Salvador Morales, 26; Jose Alejandro Jacobo, 23; Josefina Blanco, 23; Justin Alan Rivera, 20; and Henry Polin Morales III, 20 all residents of Bakersfield, charging them with conspiracy to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.
According to court documents, from November 1, 2014, to December 9, 2015, the defendants conspired to distribute pound quantities of methamphetamine in and outside the Bakersfield area.
This case is the product of an investigation by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Kern County Sheriff’s Office, the Bakersfield Police Department, and the California Highway Patrol. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
If convicted, Carlos Gerardo Blanco, Salvador Morales, and Jacobo face a maximum statutory penalty of life in prison and a $10 million fine. If convicted, Josefina Blanco, Rivera, and Henry Polin Morales III face a maximum statutory penalty of 40 years in prison and a $5 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Modesto Man Indicted for Being a Felon in Possession of a Firearm and AmmunitionRead the Press Release
FRESNO, Calif. — A federal grand jury returned an indictment today charging Javier Haro, 34, of Modesto, with being a felon in possession of a firearm and ammunition, United States Attorney Benjamin B. Wagner announced.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Modesto Police Department. Assistant United States Attorney Daniel Griffin is prosecuting the case.
According to court documents, on July 27, 2015, Haro was in possession of a Glock 9 mm handgun, a Smith and Wesson 9 mm handgun and 9 mm ammunition. The indictment alleges that Haro has prior felony convictions.
If convicted, Haro faces a maximum statutory penalty for each count of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state and local law enforcement to combat gun and gang crime. At the core of PSN is increased federal prosecution to incapacitate chronic violent offenders as well as to communicate a credible deterrent threat to potential gun offenders.
Four Romanian Nationals Charged in Bribery SchemeRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Dumitru Martin, 55, a Romanian citizen residing in Long Island, New York, and Anamaria Cruceru, 48; Constantin Schiller, 62; and Marcelle Banaga, 40, all of whom reside in Romania, charging them with conspiracy to commit bribery and with bribery of a public official, United States Attorney Benjamin B. Wagner announced.
According to court documents, Martin owns and operates a Romanian company called Polaris M. Holdings (Polaris), and Cruceru, Schiller, and Banaga are employees. From October 2014 through December 2015, Martin, Cruceru, Schiller, and Banaga conspired with each other to bribe a United States Air Force (USAF) contracting officer in connection with the awarding of multimillion dollar contracts to Polaris. The defendants offered to pay the contracting officer a bribe, which they called a “commission,” equal to 10 percent of the amount of the contract. The defendants also suggested that the contracting officer use a fictitious consulting contract and other commercial contracts and documents to conceal payment of the bribe.
In July 2015, the defendants caused Polaris to submit a bid to the USAF to supply storage containers to the Mihail Koglaniceanu Air Base in Romania. In September 2015, Martin traveled to Travis Air Force Base in Fairfield, California to sign the documents relating to the bid as well the fictitious contracts meant to conceal the bribe payment. Thereafter, as part of the conspiracy, the defendants caused a $100,000 wire transfer from Romania to a bank account in the United States as payment to the USAF contracting officer. Unbeknownst to the defendants, the USAF contracting officer was working with federal law enforcement and there was no contract to be awarded to Polaris.
“Attacking corruption and collusion in federal contracting is important both to ensure the integrity of federal programs and to protect taxpayer dollars,” U.S. Attorney Wagner said. “Working with the FBI and our other law enforcement partners, we will continue to root out and prosecute those who attempt to corruptly influence federal contracting officials.”
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Michael Beckwith and Todd Pickles are prosecuting the case.
Martin was arrested and is currently in custody in Sacramento. The remaining defendants reside in Romania, and the U.S. Department of Justice will initiate requests for their extradition.
If convicted, the defendants each face a maximum statutory penalty of five years in prison on the conspiracy charges and 15 years in prison for the bribery count, as well as a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Deputy U.S. Marshal Pleads Guilty to Yuba City Armed Robbery of Marijuana DealersRead the Press Release
SACRAMENTO, Calif. — One defendant pleaded guilty today and two are sentenced for a plot that brought three Florida men to Yuba City where they robbed marijuana traffickers at gunpoint, United States Attorney Benjamin B. Wagner announced.
Clorenzo Griffin, 38, of Fort Lauderdale, Florida, pleaded guilty today to conspiring to commit a robbery. As part of this plea agreement, he admitted that he planned, financed, and participated in the robbery of marijuana from drug dealers. As also stated in his plea agreement, Griffin is a deputy U.S. Marshal from Florida.
Griffin’s co-conspirators had earlier entered guilty pleas in the case and have now been sentenced. Last week, United States District Judge Kimberly J. Mueller sentenced Andre Jamison, 40, of Miami, Florida, to seven years and three months in prison and, today, Judge Mueller sentenced crew member Rodney Rackley, 24, of Miami, Florida, to six years in prison. In sentencing Jamison and Rackley, Judge Mueller noted that the brandishing of firearms in connection with the robbery was extremely serious criminal conduct.
According to court documents, on October 11, 2014, a CHP officer in Sutter County attempted to stop a speeding Jeep Patriot. The three defendants eventually abandoned the vehicle in a parking lot on Starr Drive and fled on foot. The defendants were subsequently taken into custody with the assistance of the Sutter County Sheriff’s deputies. At the time of his arrest, Griffin possessed a loaded .40-caliber firearm. Court documents further indicate that before fleeing from the CHP, Griffin, Rackley and Jamison wearing police ballistic vests, had brandished firearms in order to rob three individuals of approximately 24 pounds of marijuana. The robbery took place in the parking lot of a hotel off State Route 99 in Yuba City.
This case is the product of an investigation by the Drug Enforcement Administration, the California Highway Patrol, Sutter County Sheriff’s Office, Yuba City Police Department, and the Sutter County District Attorney’s Office. Assistant United States Attorney Jason Hitt is prosecuting the case.
Griffin’s sentencing date is set for March 9, 2016. The plea agreement contemplates a sentence range of 10 to 12 years in prison. The actual sentence, however, will be determined at the discretion of the court at the hearing.
Five from Fresno Sentenced for Firearms ChargesRead the Press Release
FRESNO, Calif. — On Monday, United States District Judge Lawrence J. O’Neill sentenced five Fresno residents for violations of federal firearm laws, United States Attorney Benjamin B. Wagner announced.
The defendants previously pleaded guilty in five separate cases. The cases were the product of investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, and the Fresno Police Department. The investigations are part of Project Safe Neighborhoods, which is a joint initiative to combat gang and gun violence. Assistant U.S. Attorney Kimberly Sanchez prosecuted the cases.
Richard Diaz, 27, was sentenced to four years and nine months in prison for being a felon in possession of a firearm.
Jose Munoz Ramirez, 25, was sentenced to time served (six months in prison) for being a felon in possession of a firearm.
Ernie Rodriguez, 39, was sentenced to six years and six months in prison for being a felon in possession of a firearm.
Javier Lamadrid, 33, was sentenced to three years and 10 months in prison for being a felon in possession of a firearm.
Andrew Cortez, 33, was sentenced to 10 years in prison for possession of a firearm in a school zone.
“ATF, in partnership with the FBI, the Fresno Police Department and the United States Attorney’s Office, continues to target armed criminals in an effort to help rid the community of its most violent offenders,” said ATF Special Agent in Charge Jill A. Snyder.
“The FBI is committed to working with the Safe Streets Task Force and Project Safe Neighborhoods to identify and investigate those who present a significant threat to the safety of our community,” said Supervisory Special Agent Robert Guyton of the Fresno Resident Agency of the Sacramento FBI. “We thank the ATF and Fresno Police Department for their continued partnership in the effort to reduce violent crime in Fresno.”
“Removing violent and armed criminals from our community is our top priority. Thanks to Project Safe Neighborhoods and our partnership with the U.S. Attorney's Office, these defendants will not be allowed to victimize members of our community for many years,” said Fresno Police Chief Jerry Dyer.
Three Bakersfield Residents Sentenced on Monday for Drug Trafficking OffensesRead the Press Release
FRESNO, Calif. — Three Bakersfield men were sentenced in two separate cases on Monday by United States District Judge Lawrence J. O'Neill for conspiracies to traffic marijuana and methamphetamine, United States Attorney Benjamin B. Wagner announced.
In the first case, Baltazar Castenada Garcia, 25, was sentenced to 10 years and one month in prison for conspiring to possess methamphetamine and conspiring to cultivate and distribute marijuana. According to court documents, Garcia grew marijuana for distribution at his residence in Bakersfield and at a second Bakersfield residence. Additionally, Garcia sold methamphetamine with the assistance of his co-defendants, using a residence in Arvin to store and package controlled substances for distribution.
This case was the product of an investigation by the Drug Enforcement Administration, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Bakersfield Police Department, Kern County Sheriff’s Office, and Kern County Probation Department. Assistant United States Attorney Laurel J. Montoya prosecuted the case.
In the second case, Guillermo Magallanes, 36, who pleaded guilty to conspiracy to distribute methamphetamine, received a sentence of seven years in prison, and Pasqual Gonzales Magallanes, 44, who pleaded guilty to distribution of methamphetamine, received a sentence of 10 years and one month in prison.
According to court documents, these defendants conspired with Juan Lascano Jr., 32, of Bakersfield, to distribute pound quantities of methamphetamine in the Bakersfield area. Judge O’Neill also ordered the forfeiture of $31,242, a 2014 Lexus IS250 F Sport and a 2012 Acura TL sedan as proceeds of the illegal drug trafficking activity. On October 19, 2015, co-defendant Lascano was sentenced to 10 years in prison for his role in the case.
This case was the product of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Kern County Sheriff’s Office, and the Bakersfield Police Department. Assistant United States Attorney Brian Delaney prosecuted the case.
El Dorado Hills Man Sentenced to 2.5 Years in Prison for Embezzling More Than $400,000 from EmployerRead the Press Release
SACRAMENTO, Calif. —Jeffrey Lamson, 51, of El Dorado Hills, was sentenced today to two years and six months in prison for wire fraud in connection with a scheme to embezzle money from his former employer, United States Attorney Benjamin B. Wagner announced.
According to court documents, from at least 2009 through 2011, Lamson embezzled over $400,000 from a company in Placer and Sacramento Counties while he served that company as controller. Lamson used company funds to make unauthorized payments to himself and others and made payments to a fictitious vendor, controlled by Lamson, for services that were never performed. Lamson was ordered to pay over $400,000 in restitution for his fraudulent conduct.
Lamson was sentenced by United States District Court Judge John A. Mendez. During sentencing, Judge Mendez observed, “You are a contradiction. You work hard, you seem to be intelligent. I don’t understand why you did what you did. It’s puzzling to me.”
This case was the product of an investigation by the Internal Revenue Service-Criminal Investigation and its Financial Crimes Task Force. Assistant United States Attorneys Shelley D. Weger and Jean M. Hobler are prosecuting the case.
Visalia Man Pleads Guilty to Sex TraffickingRead the Press Release
FRESNO, Calif. — Tyrell Richmond, 33, of Visalia, pleaded guilty today to sex trafficking a minor, United States Attorney Benjamin B. Wagner announced.
According to court documents, on June 21, 2014, FBI’s Fresno Child Exploitation Task Force and members of the Fresno Police Department’s Vice Unit conducted undercover operations targeting prostitutes who appeared to be underage. During the investigation, they detained three 16-year-old girls, all of whom were runaways, at a motel in Fresno. Further investigation revealed that Richmond had prostituted the girls for about one week, first in Visalia and then in Fresno. Richmond collected all of the money received by the girls, and did not permit them to leave their motel rooms, other than to get ice.
Richmond is scheduled to be sentenced on March 28, 2016. He faces a sentence of between 10 years and life in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the Federal Bureau of Investigation, the Visalia Police Department, and the Fresno Police Department. Assistant United States Attorney Michael Frye is prosecuting the case.
Two-Year Prison Sentence for Marijuana Cultivation in Sequoia National ForestRead the Press Release
FRESNO, Calif. —Ezequiel Armas-Ortiz (Armas), 49, of Michoacán, Mexico, was sentenced today to two years in prison by U.S. District Judge Lawrence J. O’Neill for conspiring to manufacture, distribute and possess with intent to distribute, manufacturing, and possessing with intent to distribute marijuana in connection with a large-scale cultivation operation on public land, United States Attorney Benjamin B. Wagner announced.
According to court documents, Armas and co-defendant Macedonio Madrigal-Herrera (Madrigal), 44, also of Mexico, were responsible for watering 2,719 marijuana plants in the Brush Creek drainage of in the Sequoia National Forest in Tulare County. The marijuana cultivation activities caused extensive damage to the public land and natural resources. Zinc phosphide, a toxic pesticide from Mexico, was found at the site, along with fertilizer and trash. Trees and plants, newly generated following the 2002 McNally Fire, were cut down to make room for the marijuana. Water was diverted from a nearby stream that supports trout. Armas was also ordered to pay $4,200 in restitution to the U.S. Forest Service for the damage caused by his wrongful conduct.
Armas pleaded guilty on October 19, 2015. Madrigal is scheduled for a status conference in federal court in Fresno on January 19, 2016. The charges against him are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the U.S. Forest Service, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the California National Guard, California Department of Fish and Wildlife, and the Tulare County Sheriff’s Office. Assistant United States Attorney Karen Escobar is prosecuting the case.
Hanford Man Pleads Guilty to Stealing over $100,000 from Lemoore Naval Air Station AutoportRead the Press Release
FRESNO, Calif. — Christopher Michael Whitacre, 50, of Hanford, pleaded guilty today to theft in a special maritime or territorial jurisdiction, United States Attorney Benjamin B. Wagner announced.
According to court documents, between January 1, 2011, and July 31, 2013, Whitacre, who was a supervisor at an auto service center at the Naval Air Station in Lemoore, stole approximately $111,900 in cash from the center. Whitacre stole the cash incrementally by accepting money from customers who purchased gasoline at the gas pump but then entering a lower amount for the transaction and pocketing the difference. He changed the dates or amounts of gasoline delivered to the center to cover up the discrepancy between the actual amount of gasoline that was sold and the amount of gasoline purported to be sold through cash register transaction records.
This case is the product of an investigation by the Navy Criminal Investigation Service. Assistant United States Attorney Mia A. Giacomazzi is prosecuting the case.
Whitacre is scheduled to be sentenced by United States District Judge Dale A. Drozd on May 16, 2016. Whitacre faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Fresno Woman Pleads Guilty to Conspiring to Structure More Than $100,000 in Proceeds of Drug TraffickingRead the Press Release
FRESNO, Calif. — Aseel Al-Saber, 24, of Fresno, pleaded guilty today to one count of conspiring to structure cash transactions, United States Attorney Benjamin B. Wagner announced.
According to court documents, Al-Saber and seven co-defendants opened and maintained bank accounts for the purpose of funneling cash proceeds of marijuana that had been shipped from Fresno and other cities in California and sold in Florida and other states. Al-Saber’s bank account was used to deposit and withdraw more than $72,000 of marijuana trafficking proceeds in amounts of $10,000 or less to prevent Currency Transaction Reports from being filed by the banks, which are prepared for any transaction over $10,000 in cash. In addition, Al-Saber recruited two other individuals to have more than $30,000 in proceeds of marijuana trafficking funneled through their respective bank accounts. In total, members of the conspiracy structured transactions involving more than $7.5 million in drug trafficking proceeds.
This case is being brought as part of Operation Footprint, a nationwide law enforcement initiative led by the U.S. Attorney’s Offices, the Internal Revenue Service- Criminal Investigation, the Drug Enforcement Administration, and the United States Postal Inspection Service. Operation Footprint targets large drug trafficking organizations by identifying the transfer of drug proceeds through financial institutions, bulk cash smuggling and other forms of money transfers. Operation Footprint is focused on bringing criminal charges based on Bank Secrecy Act violations in addition to violations of the Controlled Substances Act and the Money Laundering Control Act.
This case is also the product of the Organized Crime Drug Enforcement Task Force (OCDETF), a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies. Assistant U.S. Attorneys Grant B. Rabenn, Patrick R. Delahunty, and Jeffrey Spivak are prosecuting the case.
On February 11, 2015, Chad Riffle, 23, of Citrus Springs, Florida, was sentenced to five years in prison after pleading guilty to the structuring conspiracy. Jeremy Michael Murphy, 26, of Monroe, Ohio; Peter Capodieci, 24, of Crystal River, Florida; Miguel Gonzalez, 32, of Fresno; and Bree Benson, 21, of Citrus Springs, Florida, have pleaded guilty to conspiring to structure financial transactions and are awaiting sentencing.
Charges remain pending against Brandon Michael Thomas, 25, of Fresno, and. Ashley Starling Thomas, 28, of Lake Charles, Louisiana. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Al-Saber is scheduled to be sentenced by United States District Judge Lawrence J. O’Neill on March 28, 2016 at 8:30 a.m. The maximum statutory penalty for conspiracy to structure is five years in prison and a $250,000 fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Four Modesto Residents Indicted on Drug Conspiracy ChargesRead the Press Release
FRESNO, Calif. — A federal grand jury returned a 13-count indictment today against Juan Carranza, 23; Jose Carranza-Pompa, 57; Lorenzo Carranza-Pompa, 48; and Maria Carranza, 44, all of Modesto, charging them with a conspiracy to distribute and possess with intent to distribute cocaine, heroin, and methamphetamine; distribution of cocaine; distribution of methamphetamine; distribution of heroin; and possession with intent to distribute heroin, United States Attorney Benjamin B. Wagner announced.
According to the indictment, from February 9, 2014, to December 2, 2015, the defendants conspired to distribute cocaine, heroin, and methamphetamine in Modesto. Each defendant is alleged to have sold narcotics on multiple occasions throughout that time period. The defendants were arrested on December 2, 2015, in Modesto.
This case is the product of an investigation by the Modesto Police Department Gang Unit, the Modesto Narcotics Enforcement Team, the Stockton Police Department, the Ceres Police Department, the Stanislaus Drug Enforcement Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorneys Melanie Alsworth and Daniel Griffin are prosecuting the case.
If convicted, Juan Carranza, Jose Carranza-Pompa and Lorenzo Carranza-Pompa face a statutory penalty of five to 40 years in prison, and a $5 million fine. Maria Carranza faces a maximum statutory penalty of 20 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Sacramento Man Sentenced to 20 Months in Prison for Tax Preparation FraudRead the Press Release
SACRAMENTO, Calif. — William G. Green, 49, of Sacramento, was sentenced today by United States District Judge Kimberly J. Mueller to 20 months in prison and ordered to pay restitution to the IRS for assisting in the preparation of false tax returns, United States Attorney Benjamin B. Wagner announced.
According to court documents, while Green prepared tax returns at a Sacramento business called “Will the Tax Man” from 2007 to at least April 2011, he knowingly placed false information on his clients’ returns to increase their refunds or reduce their taxes owed. The false information that Green added included false charitable contributions in large round numbers to charities like Goodwill Industries, AMVETS, and United Cerebral Palsy, and other deductions and credits related to education and business expenses. The false deductions and credits were not based on information provided by Green’s clients, and Green typically did not inform his clients that these false deductions and credits had been added. Green’s conduct resulted in a total tax loss of approximately $482,000.
This case was the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Christopher S. Hales prosecuted the case. Trainer
Eastern District of California U.S. Attorney’s Office Collects over $121 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2015Read the Press Release
SACRAMENTO, Calif. — United States Attorney Benjamin B. Wagner announced today that the U.S. Attorney’s Office for the Eastern District of California collected over $121 million in civil and criminal actions, including forfeitures, in Fiscal Year 2015, which ended on September 30, 2015. Over $65 million was collected in criminal and civil actions handled solely by the U.S. Attorney’s Office for the Eastern District of California, including over $5.57 million in criminal actions and over $59.69 million in civil actions.
Additionally, the office worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $34.7 million in cases pursued jointly with these offices, almost all in civil actions. Collections in civil and criminal cases handled by the office, not including forfeitures, therefore totaled over $99.9 million.
Additionally, the U.S. Attorney’s office in the Eastern District of California, working with partner agencies and divisions, collected over $21 million in asset forfeiture actions in FY 2015. Total civil and criminal collections including forfeitures, therefore, exceeded $121 million. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Attorney General Loretta E. Lynch announced on December 3, 2015, that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year ending September 30, 2015. The more than $23.1 billion in collections in FY 2015 represents more than seven and a half times the approximately $2.93 billion of the Justice Department’s combined appropriations for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
"The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources, and protecting the American people from exploitation and abuse,” said Attorney General Loretta Lynch. “The collections we are announcing today demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver. I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work.”
“This past year was the second-highest in the history of this office in terms of total collections for the taxpayer,” said U.S. Attorney Wagner. “Every year, attorneys in this office recover far more than it costs to operate the office, while stripping criminals and wrongdoers of ill-gotten gains, proceeds of fraud or false claims, and securing restitution for victims.”
Major recoveries by the U.S. Attorney’s Office for the Eastern District of California in civil cases this year included a $44 million settlement with the Iron Mountain records management company and a $2 million settlement with Composite Engineering Inc., both False Claims Act cases relating to pricing and costs in federal contracts. Quest Diagnostics paid $1.79 million to settle claims that it violated the False Claims Act by submitting duplicative claims to Medicare for certain venipuncture services and diagnostic tests and certain panel tests. In two cases alleging that doctors improperly billed Medicare for drugs they administered that were not approved by the FDA, the doctors paid a total of $1.3 million. Sierra Pacific Industries paid $6 million in installment payments required under the terms of its settlement agreement in a large wildfire case that damaged National Forest lands, which was resolved in 2012.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Two Sentenced in Fresno-Area Identity Theft Ring Involving over 250 victims and $1.2 million in Attempted FraudRead the Press Release
FRESNO, Calif. — Two Fresno residents, Daniel Miranda, 26, and Roberto Martinez Jr., 34, were sentenced today for conspiring to commit mail fraud, bank fraud, and wire fraud, and for aggravated identity theft, United States Attorney Benjamin B. Wagner announced. Miranda was sentenced by Senior United States District Judge Anthony W. Ishii to seven years and 10 months in prison, and Martinez was sentenced to three years in prison.
According to court documents, from about June 2012 to January 2014, Miranda and Martinez, along with co-conspirators Lilliana Gonzales and Viririana Hernandez, obtained personal information from victims through various methods. Without the victims’ permission, they opened credit card accounts in the victims’ names or added themselves as “authorized users” of the victims’ existing accounts. The conspirators then used the accounts to buy goods and services at locations throughout the Fresno area, as well as in Modesto and in Riverside County.
In total, the four conspirators misused the personal information of approximately 250 victims and attempted fraudulent credit card charges of over $1.2 million.
San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated “we are working closely with the U.S. Attorney’s Office and our partners in law enforcement to arrest and prosecute those responsible for complex Identity Fraud Schemes and to protect postal customer’s mail and personal information from theft.”
This case is the product of an investigation by the United States Postal Inspection Service, the Treasury Inspector General for Tax Administration, and the Fresno Police Department. Assistant United States Attorney Michael G. Tierney is prosecuting the case.
Hernandez previously pleaded guilty to conspiracy and aggravated ID theft, and was sentenced to four and a half years in prison on November 2, 2015. Gonzales previously pleaded guilty to conspiracy and aggravated ID theft, and is scheduled to be sentenced on January 11, 2016. She faces a maximum statutory penalty of 30 years in prison and a $1 million fine on the conspiracy charge, and an additional two years 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.
Three Plead Guilty, One Is Sentenced for Extensive Counterfeit Media Conspiracy in Central ValleyRead the Press Release
FRESNO, Calif. — Efrain Lozada Rosas, 34, and Victor Flores Fuentes, 39, both of San Jose, and Jesus Cuevas Lopez, 25, of Southern California, pleaded guilty today before U.S. District Judge Lawrence J. O’Neill to conspiring to commit criminal copyright infringement and commit related crimes, United States Attorney Benjamin B. Wagner announced. Another co-defendant, Edgar Hipatl Rodriguez, 36, of San Jose, was sentenced today by Judge O’Neill to two years and three months in prison for his role in the counterfeit media conspiracy.
According to court documents, on March 13, 2015, warehouse and office space used by the defendants were found to contain tens of thousands of counterfeit music CDs and movie DVDs. The counterfeit materials included movie titles that were in theatrical release and not yet available for legitimate sale on DVD. The counterfeit CDs and DVDs were distributed by the defendants for resale in Atwater, Modesto, Stockton, Turlock, and throughout California.
This case is the product of an investigation by the Sacramento Intellectual Property Rights Task Force composed of the Federal Bureau of Investigation and the Sacramento County Sheriff’s Office. Assistant United States Attorney Henry Z. Carbajal III is prosecuting the case.
Ten defendants were indicted in March 2015 in connection with the counterfeit media operation. Eight of the defendants have pleaded guilty to various charges. Two remaining defendants, Miguel Angel Gomez Rebolledo, 35, and Antonio Morales, 32, of San Jose, are scheduled for trial in March 2016. The charges against these remaining two defendants are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Rosas, Fuentes and Cuevas Lopez are scheduled to be sentenced by Judge O'Neill on April 4, 2016. They face a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Modesto Man Sentenced to 2 Years in Prison for Filing False Tax Returns Seeking More Than $620,000 in RefundsRead the Press Release
FRESNO, Calif. — United States District Judge Lawrence J. O’Neil sentenced Mark Threet, 52, of Modesto, today to two years in prison for making a false claim for a tax refund, United States Attorney Benjamin B. Wagner announced.
According to court documents, Threet filed more than 850 false tax returns for himself and others for the tax years 2008 to 2010. Each return included false statements regarding income, tax credits, and refund amounts. In sum, the returns claimed more than $620,000 for these false tax refunds. He received approximately $270,000, and has been ordered to pay restitution.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Patrick R. Delahunty is prosecuting the case.