Eastern District of California
Press releases recorded for this federal judicial district.
Madera Man Sentenced to 8 Years in Prison for Distributing Child PornographyRead the Press Release
FRESNO, Calif. — Ernest Garza Reyes, 32, of Madera, was sentenced today by United States District Judge Anthony W. Ishii to eight years in prison for distributing child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, from July 2, 2011, through December 1, 2011, Reyes sent and received over 200 email messages that contained over 2,800 images depicting minors engaged in sexually explicit conduct. The images also involved the portrayal of sadistic and masochistic violence, and included depictions of prepubescent minors. Reyes was charged with receiving or distributing child pornography on May 9, 2013, and pleaded guilty to this charge on September 8, 2014.
This case was the product of an investigation by the Central California Internet Crimes Against Children Task force, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Fresno County Sheriff’s Office. Assistant United States Attorney Brian W. Enos prosecuted the case.
“Today’s sentencing is another victory in the fight against the sexual exploitation of children,” said Ray Greenlee, assistant special agent in charge for HSI Sacramento. “Homeland Security Investigations works tirelessly with its law enforcement counterparts, including the Fresno County Sheriff’s Department, to identify those who prey on innocent children and hold them accountable for their actions.”
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Rancho Cucamonga Man Indicted for Committing Sexual Abuse of a Minor in Yosemite National ParkRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Marcus Anthony Maluhia Araiza Jr., 18, of Rancho Cucamonga, charging him with aggravated sexual abuse of a child and abusive sexual contact with a child under 12 years of age, United States Attorney Benjamin B. Wagner announced.
According to allegations in a criminal complaint previously filed against Araiza, during the early morning hours of August 26, 2015, National Park Service rangers responded to a call that an 11-year-old boy was molested while in a restroom at Camp Curry in Yosemite National Park. The boy reported being in the restroom when an unknown man grabbed him and touched his genitals. The boy was able to escape from the bathroom get to his mother. Flyers posted in Curry Village led to Araiza’s arrest later that morning.
This case is the product of an investigation by the National Park Service. Assistant United States Attorney Michael S. Frye is prosecuting the case.
If convicted, Araiza faces a statutory penalty of up to life in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
New Charges and Defendants Added in Superseding Indictment for Credit Card SchemeRead the Press Release
SACRAMENTO, Calif. — A superseding indictment has been unsealed that charges three defendants for participating a large-scale scheme to defraud over 119,000 credit card account holders by making false charges on their accounts, United States Attorney Benjamin B. Wagner announced.
The original indictment was returned on March 20, 2014, and charged Mihran Melkonyan, 35, of Sacramento, and Rouslan Akhmerov, 41, of Los Angeles, with 23 counts of wire fraud and mail fraud. Akhmerov pleaded guilty to credit card fraud on December 15, 2014, and is awaiting sentencing.
The superseding indictment charges Melkonyan and adds defendants Ruslan Kirilyuk, 37, of Los Angeles, and Aleksandr Maslov, 34, of Sacramento, to the indictment, charging all three defendants with 24 counts of wire fraud and two counts of mail fraud. Kirilyuk is also charged with one count of aggravated identity theft. Melkonyan has been in custody since his arrest on April 15, 2015. Maslov was arrested on Tuesday and released on bond. Kirilyuk has yet to appear, and there is a warrant for his arrest.
According to court documents, between October 5, 2011, and March 5, 2014, the defendants participated in a scheme to obtain money from credit card holders, credit card companies, and third-party credit card payment processors by charging individuals’ credit cards without their permission or knowledge for goods and services that were not provided.
The defendants created at least 70 fictitious businesses for the purpose of billing stolen credit cards, using names that sounded legitimate such as 24 Quick Stop, Best Box, Chevran, Marshall Store, Stop Shop Market, Walt Mart, and Whole Store. In some cases, the fictitious businesses had Internet domain names and email addresses associated with them that were used to create the appearance of a legitimate business. Some of these fictitious businesses were established in the names of unknowing victims; for example, the defendants obtained stolen or misappropriated copies of student transcripts from a Sacramento-area high school and used the students’ identities to establish the fictitious businesses.
According to the superseding indictment, the defendants obtained information for credit card accounts and processed a large number of small payments from different credit cards in a relatively short period of time. The credit card providers such as American Express and third-party payment processors such as PayPal credited the businesses’ accounts based on the processed credit card transactions for the purported sales.
As part of the scheme, the defendants opened multiple bank accounts that they controlled using the identity theft victims. These accounts were linked directly to the businesses’ merchant accounts with credit card providers and third-party credit card payment processors. The defendants transferred money from the businesses’ merchant accounts to the bank accounts of the victims, and then withdrew cash from these accounts through ATM withdrawals, using debit cards and other means.
This case is the product of an investigation by the Federal Bureau of Investigation and the United States Secret Service. Assistant United States Attorneys Michael D. Anderson and Matthew M. Yelovich are prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count of wire and mail fraud. Kirilyuk faces an additional two years in prison consecutive to any other penalty if convicted on the aggravated identity theft count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Granite Bay Man Pleads Guilty in Scheme That Defrauded Investors in “Green” Cleaning Product CompanyRead the Press Release
SACRAMENTO, Calif. — Brent Lee Newbold, 58, of Granite Bay, pleaded guilty today to wire fraud and agreed to submit to a restitution order of at least $2.9 million, United States Attorney Benjamin B. Wagner announced.
Newbold was employed as chief executive officer of Holy Cow, a Rocklin-based business that produced a “green” cleaning product, marketed to stores such as Wal‑Mart, ACE Hardware, and Bed, Bath & Beyond.
According to court documents, between October 2007 and January 2010, Newbold engaged in a scheme to defraud investors and lenders. He made a variety of misrepresentations to investors about the financial health of the company, including the company’s debt levels and how invested funds would be used. In fact, Holy Cow bore a significant amount of debt, and Newbold continued to assume additional debt related to Holy Cow. Newbold used investor funds for nonbusiness purposes, diverting it to himself and his wife, paying his mortgage, and paying previous investors.
Based on Newbold’s claims, a corporate investor, Spence Enterprises, invested $2 million in Holy Cow. According to the plea agreement, Newbold, without authorization, diverted over $950,000 from Holy Cow corporate accounts to himself, his wife, his mortgage company, and his previous lenders and investors. Over $550,000 of that money had been invested by Spence Enterprises. When Spence Enterprises learned of Newbold’s diversion of money, they reprimanded him and told him to repay the money.
After he was confronted by Spence Enterprises, Newbold opened a secret account at American River Bank in the name of Holy Cow Inc. Newbold was the sole signatory on the account, and the account statements were sent to Newbold’s residence. Newbold used the bank account to receive funds from undisclosed individual investors in Holy Cow.
Between July 2008 and January 2010, Newbold solicited over 10 individual investors. Newbold falsely claimed that he was authorized to act on behalf of Holy Cow; that he owned Holy Cow; he owned the majority of Holy Cow stock; Holy Cow was financially sound, stable and profitable. In some cases, Newbold provided his individual investors with false Holy Cow stock certificates, false Holy Cow purchase order reports, and corporate promissory notes.
By December 2009, Spence Enterprises put Holy Cow into bankruptcy as a result of the unauthorized and undisclosed debt Newbold was taking on in connection with Holy Cow. The gross loss amount in this case is over $2.9 million.
“The defendant raised money from investors through misrepresentations and false promises,” said Thomas McMahon, Acting Special Agent in Charge, IRS Criminal Investigation. “Then, without authorization, the defendant diverted approximately $1 million to himself, his wife, his mortgage company, and his previous lenders and investors. This chain of events led the company into bankruptcy. Those who line their pockets with profits from these schemes should know they will not go undetected and will be held accountable.”
This case is the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Michael M. Beckwith is prosecuting the case.
Newbold is scheduled to be sentenced on December 3, 2015, by United States District Judge Morrison C. England Jr. Newbold faces a maximum sentence of 20 years in prison, a $250,000 fine, and a three-year term of supervised release. The actual sentence will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Fresno Podiatrist Indicted for Health Care FraudRead the Press Release
FRESNO, Calif. — A federal grand jury returned a 20-count indictment today against Franklyn Collier Jones, 52, of Fresno, charging him with health care fraud and making false statements relating to a health care matter, United States Attorney Benjamin B. Wagner announced.
According to court documents, Jones practiced podiatry in Fresno. Between 2010 and 2015, Jones allegedly billed Medicare for surgical procedures called avulsions and matrixectomies that he did not perform. In fact, Jones allegedly performed only routine foot care on the patients, such as clipping of toe nails. Jones allegedly billed more than $141,000 for these surgical procedures during this time period.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Mark J. McKeon and Patrick R. Delahunty are prosecuting the case.
If convicted, Jones faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for each count of health care fraud; and 5 years in prison and a $250,000 fine for each count of making a false statement. 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.
Clovis Man Indicted for Producing Fraudulent California Driver’s Licences and Counterfeiting MoneyRead the Press Release
FRESNO, Calif. — A federal grand jury returned a six-count indictment today against Larry Landseadal, 46, of Clovis, charging him with production of false identification documents, possession of false identification documents, possession of document-making implements, possession of 15 or more fraudulent counterfeit access devices, counterfeiting United States currency and possession of images for counterfeiting United States currency, United States Attorney Benjamin B. Wagner announced.
According to court documents, Landseadal possessed over 260 profiles of individuals, including their names, social security numbers, and other personal identifying information. He also produced false California driver’s licenses and possessed both counterfeit United States currency and images used to counterfeit United States currency.
This case is the product of an investigation by the United States Secret Service, the Clovis Police Department, and the Fresno Police Department. Assistant United States Attorney Mia A. Giacomazzi is prosecuting the case.
If convicted, Landseadal faces a maximum statutory penalty of 30 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.
Former Fresno Bank Manager and Her Boyfriend Arrested, Charged with Bank FraudRead the Press Release
FRESNO, Calif. — Former bank manager Sylvia Ochoa, 33, and Shanne Leavell, 23, both of Orange Cove, were arrested today for an embezzlement scheme that defrauded the Bank of America of over $600,000, United States Attorney Benjamin B. Wagner announced.
A federal grand jury returned a six-count indictment on August 27, 2015, against them, charging Ochoa with conspiracy to commit bank fraud, bank fraud, and embezzlement by a bank manager, and charging Leavell with conspiracy to commit bank fraud and bank fraud.
According to court documents, Ochoa was the branch manager at Bank of America on East Tulare Street in Fresno. Between March 2013 and October 2013, Ochoa and Leavell conspired to defraud the bank. Contrary to the bank requirements, Ochoa prevented other bank employees from counting the cash in the vault. She entered the vault after hours and removed cash to spend on personal expenses. Ochoa also made fraudulent credits and transfers into accounts over which she controlled at Bank of America, including two accounts she opened in the name of her boyfriend, Leavell. Ochoa and Leavell then withdrew and spent the money Ochoa stole from the vault and fraudulently deposited into Leavell’s accounts on personal expenses and items, including the purchase of a truck, gambling at casinos, and buying expensive hand bags. In total, Ochoa and Leavell defrauded and embezzled from Bank of America over $600,000.
This case is the product of an investigation by the Federal Bureau of Investigation and the Fresno Police Department. Assistant United States Attorney Mia A. Giacomazzi is prosecuting the case.
If convicted, Ochoa and Leavell face a maximum statutory penalty of 30 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Vallejo Man Pleads Guilty to Possessing Credit Card Making Equipment and Aggravated Identity TheftRead the Press Release
SACRAMENTO, Calif. — Gurpinder Sandhu, 47, of Vallejo, pleaded guilty today to possession of credit card making equipment and aggravated identity theft, United States Attorney Benjamin B. Wagner announced.
According to court documents, between July 2013 and September 2014 Sandhu and Simone Aguilar, 42, of Vallejo, used stolen identification information to manufacture credit cards and IDs. They used the stolen IDs and credit cards to obtain goods and credit from car dealerships and retail stores. Sandhu fraudulently obtained a 2014 Nissan Rogue, a 2014 Dodge Challenger a 2014 Harley Davidson motorcycle, a 2013 Yamaha motorcycle, a 2010 Chevrolet Corvette, a 2013 Dodge Challenger and a 2013 Dodge Charger.
According to the plea agreement, , law enforcement agents found many counterfeit items in Sandhu’s residence, including credit cards and California driver’s licenses. Agents also found equipment used to manufacture these counterfeit items such as an embossing machine, cameras, printers, scanners, material and chemicals used to produce identification cards, state seals, and a blue backdrop on the wall to imitate a California Department of Motor Vehicles ID photo background. Agents also found documents containing the names of real people, such as rental agreements, Comcast bills and sales receipts. Based on the fraudulent documents found in the residence, at least 50 victims have been identified.
“Identity theft poses a significant vulnerability and often wreaks havoc on the lives of innocent victims,” said Tatum King, acting special agent in charge for HSI San Francisco. “Today’s guilty plea sends a clear message that HSI and our law enforcement partners will work tirelessly to identify those responsible for such schemes and hold them accountable for the harm they cause.”
This case is the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the California Highway Patrol. Special Assistant United States Attorney Josh F. Sigal is prosecuting the case.
Sandhu is in federal custody. He is scheduled to be sentenced by U.S. District Judge John A. Mendez on December 8, 2015. Sandhu faces a maximum statutory penalty of 15 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Aguilar is charged with conspiracy, possession of counterfeit credit cards, possession of credit card making equipment, passing fraudulent checks, and aggravated identity theft. She remains in custody with a status conference set for October 27, 2015. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Elk Grove Woman Pleads Guilty to Bank Fraud and Identity TheftRead the Press Release
SACRAMENTO, Calif. — Keri S. Southwood, 21, of Elk Grove, pleaded guilty today to one count of bank fraud and one count of aggravated identity theft, United States Attorney Benjamin B. Wagner announced.
According to court documents, between October 1, 2014, and February 12, 2015, in Elk Grove and other places in Sacramento County, Southwood and co-defendants Leonard A. Velasco, 23, and Joseph D. Ryan, 20, both of Elk Grove, frequently damaged or destroyed U.S. Postal letter boxes and stole U.S. Mail. After cataloguing the stolen mail, the defendants targeted certain postal customers in order to return to the mail receptacles to steal the replacement credit or debit cards mailed to the postal customers. The defendants also used ID information found in the stolen mail to apply for credit cards and had the cards sent to an address they controlled. Posing as the victims, the defendants used the credit or debit cards, PINs, and victims’ names to get money, goods and services.
According to court documents, Southwood and her co-defendants possessed stolen U.S. Mail of over 1,000 victims and over 30 credit cards in victims’ names. As a result of the destruction of postal receptacles, customers suffered the loss of mail and mail services and the Postal Service suffered the loss of over $30,000.
This case is the product of an investigation by the United States Postal Inspection Service and the Elk Grove Police Department. Assistant United States Attorney Michelle Rodriguez is prosecuting the case.
Southwood is scheduled to be sentenced by United States District Judge John A. Mendez on December 8, 2015. Co-defendant Velasco pleaded guilty on August 25, 2015, to bank fraud and aggravated identity theft and is scheduled to be sentenced on December 15, 2015. Both Velasco and Southwood face up to 30 years in prison for the bank fraud conviction and two years in prison for the aggravated identity theft conviction. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Ryan is scheduled for status hearing before Judge Mendez on September 15, 2015. The charges are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Nevada County Man Sentenced to Nearly 30 Years in Prison for Wounding Two Law Enforcement Officers in Gun BattleRead the Press Release
Brent Douglas Cole, 61, was sentenced to 29 years and seven months in prison today for an assault on law enforcement officers by U.S. District Judge Garland E. Burrell Jr., announced U.S. Attorney Benjamin B. Wagner for the Eastern District of California.
On Feb. 11, 2015, after a three-day trial, a federal jury found Cole guilty of assaulting a federal officer with a deadly weapon that inflicted bodily injury, assaulting a person assisting a federal officer with a deadly weapon that inflicted bodily injury and discharging a firearm during a crime of violence.
According to evidence presented at trial, on June 14, 2014, a Bureau of Land Management (BLM) ranger stopped Cole while he was driving a vehicle on a closed dirt road on BLM land near the South Yuba River campground. The ranger gave Cole a warning and allowed him to leave without issuing him a citation. The ranger continued up the dirt road and discovered a makeshift campsite with two motorcycles – one of which had been reported stolen and the other with expired tags. The ranger requested the California Highway Patrol’s (CHP) help to impound the motorcycles.
While the ranger and a CHP officer were preparing to move the two motorcycles, Cole emerged from the brush surrounding the campsite and announced that he was coming to get his things. The ranger asked Cole if he was armed and when Cole replied that he was, the ranger reached for his handcuffs. Cole said he would not allow the ranger to place the handcuffs on him. Cole then drew a Taurus .44-caliber revolver from the right side of his waist, pointed the weapon at the ranger and fired multiple rounds. One round struck the Ranger in the left shoulder. In response to Cole’s actions, the ranger and the CHP officer returned fire. Cole fired multiple rounds at the CHP officer and one bullet struck the officer in the right leg. Cole was struck several times by law enforcement.
After expending his ammunition and being shot multiple times, Cole gave up and was arrested. Cole, the BLM ranger and the CHP officer received medical attention and all survived their wounds.
“The defendant has repeatedly demonstrated that he lacks remorse and has no respect for the law,” said Judge Burrell in the sentencing. “…He has a stunning lack of regard for anyone other than himself.”
“The men and women in law enforcement who serve our communities risk their lives every day they report to work,” said U.S. Attorney Wagner. “The BLM ranger and CHP officer who were shot in this case were doing nothing more than carrying out routine duties. We are gratified with today’s sentence, we appreciate the assistance and cooperation of the Nevada County District Attorney’s Office and we will continue to make prosecuting those who put officers at risk a top priority for our office. More than anything, we are thankful that their injuries were not more severe and that the incident did not result in a loss of life.”
“I thank the Department of Justice, Office of the U.S. Attorney and the many jurisdictions at the federal, state and local level who worked together to successfully prosecute this case,” said California State Director Jim Kenna for BLM. “On behalf of the BLM, thank you to all the brave men and women who risk their lives, backing each other up to protect America’s public lands and the people who visit them.”
“This case is illustrative of the risk law enforcement officers face on a daily basis” said Special Agent in Charge Monica M. Miller of the Sacramento’s Field Office for the FBI. “Cole violently assaulted both a Bureau of Land Management officer and the CHP officer who was assisting him in his lawful duties. Cole will now have decades to consider his willful disregard for the officer’s duty to uphold the law. The FBI stands ready to investigate such violent crimes against federal officers and thank our law enforcement partners for their collaboration.”
“Every day, our officers go to work not knowing what dangers they may face,” said Commissioner Joe Farrow for CHP. “This case demonstrated not only the challenges and dangers, but also the cooperation and teamwork among agencies that protect the people of California. On behalf of the CHP, I would like to express my appreciation to U.S. District Judge Burrell for his deliberations in pronouncing the nearly 30-year sentence.”
This case was the product of an investigation by the Bureau of Land Management, the Federal Bureau of Investigation, the California Highway Patrol, the Nevada County Sheriff’s Office and the Nevada County District Attorney’s Office. Former Assistant U.S. Attorney Michael D. McCoy and Assistant U.S. Attorney Heiko Coppola prosecuted the case.
Nevada County Man Sentenced to Nearly 30 Years in Prison for Wounding Two Law Enforcement Officers in Gun BattleRead the Press Release
SACRAMENTO, Calif. — United States District Judge Garland E. Burrell Jr. sentenced Brent Douglas Cole, 61, to 29 years and seven months in prison today for an assault on law enforcement officers, United States Attorney Benjamin B. Wagner announced.
On February 11, 2015, after a three-day trial, a federal jury found Cole guilty of assaulting a federal officer with a deadly weapon that inflicted bodily injury, assaulting a person assisting a federal officer with a deadly weapon that inflicted bodily injury, and discharging a firearm during a crime of violence.
According to evidence presented at trial, on June 14, 2014, a Bureau of Land Management (BLM) ranger stopped Cole while he was driving a vehicle on a closed dirt road on BLM land near the South Yuba River campground. The ranger gave Cole a warning and allowed him to leave without issuing him a citation. The ranger continued up the dirt road and discovered a makeshift campsite with two motorcycles — one of which had been reported stolen, and the other with expired tags. The ranger requested the California Highway Patrol’s help to impound the motorcycles.
While the ranger and a CHP officer were preparing to move the two motorcycles, Cole emerged from the brush surrounding the campsite and announced that he was coming to get his things. The ranger asked Cole if he was armed, and when Cole replied that he was, the ranger reached for his handcuffs. Cole said he would not allow the ranger to place the handcuffs on him. Cole then drew a Taurus .44-caliber revolver from the right side of his waist, pointed the weapon at the ranger and fired multiple rounds. One round struck the Ranger in the left shoulder. In response to Cole’s actions, the ranger and the CHP officer returned fire. Cole fired multiple rounds at the CHP officer and one bullet struck the officer in the right leg. Cole was struck several times by law enforcement.
After expending his ammunition and being shot multiple times, Cole gave up and was arrested. Cole, the BLM ranger, and the CHP officer received medical attention, and all survived their wounds.
In sentencing, Judge Burrell stated: “The defendant has repeatedly demonstrated that he lacks remorse and has no respect for the law. … He has a stunning lack of regard for anyone other than himself.”
“The men and women in law enforcement who serve our communities risk their lives every day they report to work,” said U.S. Attorney Wagner. “The BLM ranger and CHP officer who were shot in this case were doing nothing more than carrying out routine duties. We are gratified with today’s sentence, we appreciate the assistance and cooperation of the Nevada County District Attorney’s Office, and we will continue to make prosecuting those who put officers at risk a top priority for our office. More than anything, we are thankful that their injuries were not more severe, and that the incident did not result in a loss of life.”
“I thank the Department of Justice, Office of the United States Attorney and the many jurisdictions at the federal, state and local level who worked together to successfully prosecute this case," said BLM California State Director Jim Kenna. “On behalf of the BLM, thank you to all the brave men and women who risk their lives, backing each other up to protect America’s public lands and the people who visit them.”
“This case is illustrative of the risk law enforcement officers face on a daily basis. Cole violently assaulted both a Bureau of Land Management officer and the CHP officer who was assisting him in his lawful duties. Cole will now have decades to consider his willful disregard for the officer’s duty to uphold the law,” said Special Agent in Charge Monica M. Miller of the Federal Bureau of Investigation’s Sacramento field office. “The FBI stands ready to investigate such violent crimes against federal officers and thank our law enforcement partners for their collaboration.”
“Every day, our officers go to work not knowing what dangers they may face. This case demonstrated not only the challenges and dangers, but also the cooperation and teamwork among agencies that protect the people of California,” California Highway Patrol Commissioner Joe Farrow said. “On behalf of the CHP, I would like to express my appreciation to United States District Judge Burrell for his deliberations in pronouncing the nearly 30-year sentence.”
This case was the product of an investigation by the Bureau of Land Management, the Federal Bureau of Investigation, the California Highway Patrol, the Nevada County Sheriff’s Office, and the Nevada County District Attorney’s Office. Former Assistant U.S. Attorney Michael D. McCoy and Assistant U.S. Attorney Heiko Coppola prosecuted the case.
Former Rancho Cordova Executive Sentenced to 4 Years in Prison for Securities FraudRead the Press Release
SACRAMENTO, Calif. —Matthew Sarad, 42, of Bakersfield, was sentenced today to four years in prison for securities fraud, United States Attorney Benjamin B. Wagner announced.
According to court documents, Sarad lived in Folsom and was the founder and chief executive officer of Rancho Cordova-based Telomolecular Corporation. It purported to be a biotechnology startup company and claimed to have developed nanoparticle technology that could eradicate cancer and treat other age-related diseases. Between November 2005 and July 2008, Sarad solicited investors nationwide, offering them stock in Telomolecular. In selling the Telomolecular stock, Sarad made untrue statements, such as telling investors that the company believed its cancer curing products would complete clinical trials, obtain requisite government approval and make it to the market in less than three years. He also claimed Telomolecular had a deep management team with experience taking companies public. Sarad collected about $6.7 million from approximately 400 investors. Telomolecular never developed a marketable cancer-curing product, never conducted any clinical trials, never had a deep management team with experience taking companies public, and never went public.
Between January 2009 and December 2009, Sarad also owned a Folsom-based company called Sun Nanosystems. It purported to install solar energy systems for residential and commercial customers. It claimed to have developed nanoparticle technology that vastly increased the efficiency of solar panels. In selling the solar panels, Sarad falsely claimed that Sun Nanosystems worked with state-of-the-art proprietary technology that could increase the efficiency of conventional solar panels by as much as 50 percent. He claimed that Sun Nanosystems had a great deal of experience installing solar panels and had satisfied past customers. Sarad collected approximately $300,000 from customers but failed to complete installation of any solar panels.
In sentencing, United States District Judge Kimberly J. Mueller found that Sarad had engaged in a “pattern of purveying false information” and that a “significant sentence is warranted.”
“The FBI is committed to identifying and investigating corporate fraud cases and encourage those who have information about such illegal activity, wherever it may be found, to come forward,” said Supervisory Special Agent David Hanzal of the FBI's Sacramento field office. “Approximately 400 people fell victim to Sarad’s inaccurate claims and false promises regarding his company’s investment opportunities and products, resulting in significant and unacceptable losses.”
This case was the product of an extensive investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Lee S. Bickley and Christopher Hales prosecuted the case.
Quest Diagnostics Pays the United States $1.79 Million to Resolve False Claims Act AllegationsRead the Press Release
SACRAMENTO, Calif. — Quest Diagnostics Inc. and Quest Diagnostics Clinical Laboratories Inc. (collectively “Quest Diagnostics”) have paid the United States $1,79 million to settle claims that it violated the False Claims Act, United States Attorney Benjamin B. Wagner announced today.
This settlement resolves allegations that Quest Diagnostics submitted duplicative claims to Medicare for certain venipuncture services and diagnostic tests and certain panel tests and select components of those panels. The United States alleged that these payments violated the False Claims Act.
“We are committed to fighting fraud and abuse to help preserve scarce Medicare funds for those who need it the most, the sick and the elderly.” said U.S. Attorney Wagner.
The settlement announced today resolves a lawsuit filed in the Eastern District of California under the qui tam, or whistleblower, provisions of the False Claims Act. These provisions allow private citizens to bring civil actions on behalf of the United States and share in any recovery. The whistleblower in this case will receive $358,000 of the recovery proceeds.
This case was investigated by the United States Attorney’s Office for the Eastern District of California. Assistant United States Attorney Catherine Swann handled the matter for the United States. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Anderson Couple Pleads Guilty to Offenses Related to Marijuana CultivationRead the Press Release
SACRAMENTO, Calif. — Anderson residents John Wesley Lane, 35, and Kelsey Ann Lane, 28, pleaded guilty today to charges related to marijuana cultivation and distribution, United States Attorney Benjamin B. Wagner announced. John Lane pleaded guilty to possession with intent to distribute at least 50 kilograms of marijuana, and Kelsey Lane pleaded guilty to concealment of a felony.
According to court documents, on December 13, 2012, law enforcement agents executed federal search warrants at three properties owned, leased, or associated with John and Kelsey Lane: a warehouse in Anderson, the Lanes’ residence, and the California Patients Collective marijuana dispensary in Redding.
From the marijuana manufacturing operation inside the Anderson warehouse, agents seized approximately 2,700 mature marijuana plants, 1,300 marijuana clones, and approximately 40 kilograms of processed marijuana. Agents seized approximately 130 pounds of processed marijuana, numerous firearms, and $51,860 from the couple’s home, and nearly 200 marijuana plants, processed marijuana, concentrated cannabis, edible marijuana, and $4,673 from the marijuana dispensary.
Federal search warrants were again executed in May 2013, after law enforcement learned the Lanes were continuing to grow marijuana. During the execution of the search warrants, agents seized 2,329 mature marijuana plants and 1,724 clones at the warehouse.
The defendants are scheduled to be sentenced by U.S. District Judge John A. Mendez on February 16, 2016. John Lane faces a maximum sentence of 10 years in prison and Kelsey Lane faces up to three years in prison. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the North State Marijuana Investigation Team, the Siskiyou County Narcotics Task Force, the Drug Enforcement Administration, the Bureau of Land Management, the Alcoholic Beverage Control, Shasta County Sheriff's Office, Trinity County Sheriff’s Office, Shasta Interagency Narcotic Task Force, the California Department of Justice, and the FBI. Assistant U.S. Attorney Justin Lee is prosecuting the case.
Three Stockton Residents Arrested for Credit Card Fraud and Identity Theft Scheme, 6 Others Remain at LargeRead the Press Release
SACRAMENTO, Calif. — Three of nine defendants were arrested today for participating in a credit card fraud conspiracy aimed at Target REDcard account holders across the United States and involving hundreds of fraudulent transactions and at least 1,000 victims, United States Attorney Benjamin B. Wagner announced.
A 12-count indictment, unsealed today, charges nine defendants with conspiracy, credit card fraud, aggravated identity theft, and illegal possession of credit card-making equipment. The indictment alleges that Stockton residents Boon B. Khoonsrivong, 38; Thongchone Vongdeng, 35; Daisy Sysengrat, 29; Vuthiya Tim, 30; Meghan Paradis, 31; Sequoia Valverde, 32; Amber Collins, 30; Somaly Siv, 29; and Jaffrey Brown, 31, conspired to make and use unauthorized credit cards at large retailers, relying on fraudulently obtained victims’ identities. Today, law enforcement agents arrested Vongdeng, and Brown, in Stockton. Agents arrested Siv in Reno, Nevada. The other six defendants remain at large.
According to the indictment, between March 2014 and September 2014, the nine conspirators obtained personal information from victims through various methods. The conspirators then used that information to create unauthorized credit card accounts and used those cards and accounts to obtain things of value in excess of $1,000. Part of the scheme involved using unauthorized Target REDcard account numbers to buy large amounts of electronics, prepaid gift cards, and other goods at Target locations throughout the Sacramento area, northern California, and elsewhere. The indictment further alleges that one of the defendants, Boone B. Khoonsrivong, possessed device-making equipment with the intent to defraud and engaged in aggravated identity theft.
In all, the indictment alleges that more than 300 counterfeit and unauthorized credit card account numbers were created, used, or sold by members of the conspiracy, and over 1,000 victims have been identified as having had their identities compromised as a result of the conspiracy.
This case is the product of an investigation by the United States Postal Inspection Service and the Stockton Police Department. Assistant United States Attorneys André M. Espinosa and Rosanne L. Rust are prosecuting the case.
If the defendants are convicted, they face maximum statutory penalties ranging from five to 15 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Tehachapi Doctor Pleads Guilty to Defrauding Patients and Insurers by Implanting IUDs That Were Not Approved by the FDARead the Press Release
FRESNO, Calif. — Dr. Paul S. Singh, 55, of Tehachapi, pleaded guilty today to mail fraud for a scheme to defraud his patients and their insurers by implanting and billing for unapproved intrauterine devices (IUDs), United States Attorney Benjamin B. Wagner announced.
Singh, a medical doctor licensed to practice in California, had an office in Tehachapi. He provided obstetric and gynecological services to women, including providing forms of birth control. One form of birth control he provided were IUDs, which the Food and Drug Administration (FDA) regulates. The FDA has approved only one IUD that uses copper as its active ingredient, the ParaGard T-380A, which was sold only by its manufacturer and not available on third-party websites. The insertion of a non-FDA-approved copper IUD risks a patient’s safety. It can result in an increased risk of pelvic inflammatory disease, ectopic pregnancy, hysterectomy, and other serious complications.
According to court documents, Singh bought unapproved IUDs on the Internet but fraudulently billed his patients and their insurers as if he had inserted FDA-approved IUDs, all without the permission or consent of his patients,
According to court documents, Singh was sent multiple bulletins and newsletters warning against the use of unapproved IUDs. He was also warned that products sold by online pharmacies were not identical to the ParaGard T-380A and had not been approved as safe and effective by the FDA. In spite of the warnings, Singh purchased unapproved IUDs from online retailers and implanted them in numerous patients without their consent, between April 2008 and June 2012.
In August 2010, agents from the FDA confronted Singh about his history of implanting unapproved IUDs. During the meeting, Singh agreed to stop implanting them in his patients. Agents later conducted a search warrant of Singh’s office in 2012 and learned that he had continued to implant unapproved IUDs in his patients.
Singh failed to advise his patients of the risks of unapproved IUDs or of the fact that one had been implanted in them. According to the plea agreement, many of Singh’s patients later complained to him and other doctors about medical complications they associated with Singh’s insertion of the IUD. In multiple instances, Singh responded to such complaints by re-inserting the IUD rather than removing it. Some patients ultimately had to switch doctors in order to have the IUD removed.
Singh profited from the implanting unapproved IUDs by billing his patients and their insurers for the higher cost of approved IUDs, which was false and fraudulent.
United States Attorney Wagner stated: “Doctors who take shortcuts by utilizing unapproved medical devices willingly put their own financial interests ahead of their obligation to care for the health of their patients. My office is increasing its focus on health care fraud cases, and those who benefit while disregarding the health of patients will be first in line for investigation and prosecution.”
“Medical doctors have a special responsibility to make the best choices for their patients. When they ignore that responsibility and use unapproved medical devices, they put patients’ safety and health at risk,” said Special Agent in Charge Lisa L. Malinowski, FDA Office of Criminal Investigations’ Los Angeles Field Office. “Our office will continue its work to ensure that doctors and other healthcare professionals understand the consequences of using medical products that have not been approved by the FDA.”
This case is the product of an investigation by the Food and Drug Administration, Office of Criminal Investigations. Assistant United States Attorneys Patrick R. Delahunty and Kirk E. Sherriff are prosecuting the case.
Singh is scheduled to be sentenced by United States District Judge Anthony W. Ishii on November 23, 2015. Singh faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Kern County Man Pleads Guilty to Tax Fraud SchemeRead the Press Release
FRESNO, Calif. — Ramon Gomez Garcia, 44, of Arvin, pleaded guilty today to conspiracy to defraud the United States in connection with a scheme to submit hundreds of false federal tax returns in the names of third parties, United States Attorney Benjamin B. Wagner announced. His co-conspirator, Ramon Duran Gallardo, 56, of Planada, pleaded guilty to the same offense on August 12, 2015.
According to court documents, Garcia and Gallardo agreed with others to defraud the United States Internal Revenue Service (IRS) by submitting false federal income tax returns in the names of third parties. The conspirators submitted the returns with false IRS Form W-2s showing fraudulent wages and withholdings. On the basis of these false tax returns and W-2s, the conspirators fraudulently claimed tax refunds in the names of the purported taxpayers. The conspirators caused over 500 false tax returns to be filed, and Garcia and Gallardo each admitted to causing over $100,000 in false claims to the IRS.
This case was the product of an investigation by Internal Revenue Service – Criminal Investigation. Assistant United States Attorneys Megan A. S. Richards and Kirk Sherriff are prosecuting the case.
Garcia is scheduled to be sentenced on November 23, 2015, and Gallardo is scheduled to be sentenced on November 16, 2015, by United States District Judge Lawrence J. O'Neill. Garcia and Gallardo face a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Fresno Man Sentenced to over 11 Years in Prison for Sex Trafficking of a MinorRead the Press Release
FRESNO, Calif. — Javier Solis, 29, of Fresno, was sentenced today by United States District Judge Anthony W. Ishii to 11 years and nine months in prison for sex trafficking of a minor, United States Attorney Benjamin B. Wagner announced. On August 17, 2015, co‑defendant Michael Anthony Andrade, 34, was sentenced to 12 years and seven months in prison.
According to court documents, Andrade and Solis forced two girls, ages 15 and 17, perform sex acts for money first in Fresno and then in San Luis Obispo. In addition, the 15‑year-old girl was taken to a tattoo parlor in Fresno where the defendants’ nicknames were tattooed on her, one name on each shoulder.
Court documents further reflect the 17-year-old, a runaway, spoke with Fresno Police officers on October 24, 2013, after her mother brought her home from San Luis Obispo. While being interviewed, she told officers about the 15-year-old who was still in San Luis Obispo under the control of the defendants as well as the motel where she was staying. In response, the San Luis Obispo Police Department was contacted, and officers were able to successfully remove her from that location.
“The public should be outraged that men like Solis and Andrade market and 'rent' teens to others for profit and to the detriment of their young victims,” said Supervisory Special Agent Robert Guyton form the Fresno resident agency of the FBI's Sacramento field office. “We are thankful for our collaborative relationship with the Fresno Police Department and other law enforcement partners. Working together, we can recover victims and ensure their exploiters face justice.”
San Luis Obispo County District Attorney Dan Dow, who prosecuted the case before it was filed in federal court, commented: “Collaboration, such as occurred here between federal, state, and local agencies, is the key to stopping human trafficking networks. We are pleased with the guilty pleas and the message that this tough sentence sends to anyone involved in sex trafficking of minors. We will continue to be vigilant to seek out and take down the perpetrators of human trafficking by using the collaboration of our anti-human trafficking task force.”
This case was the product of an investigation by the Federal Bureau of Investigation, the Fresno Police Department, the San Luis Obispo Police Department and the San Luis Obispo District Attorney’s Office. Assistant United States Attorneys Michael Frye and Mia Giacomazzi prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Three Indicted for Supplying Unqualified Armed Guards to IRS Facilities in FresnoRead the Press Release
FRESNO, Calif. — A federal grand jury returned a 42-count indictment on Thursday against Scott L. Carlton, 46, of Visalia; Robert J. Bejarano, 46, of Kingsburg; and Matthew L. Cocola, 44, of Fresno, charging each defendant with conspiracy to defraud the government with respect to claims and false statements, United States Attorney Benjamin B. Wagner announced.
According to court documents, the IRS’s Fresno campus serves as national center for processing federal tax returns. Carlton and Bejarano were employees of E&A Protective Services, which had the government contract to supply 24-hour-a-day armed security guards to the IRS’s Fresno campus. Cocola was a certified firearms instructor doing business as Security Solutions of California & The Praetorian Diversified Institute in Clovis. When it became apparent that many of the guards could not achieve the firearms shooting score required under the contract, the indictment alleges that Carlton, Bejarano and Cocola conspired to falsify scores and supply unqualified guards to the IRS facilities. Over a three-year period, E&A was paid over $2 million on fraudulent invoices submitted to the IRS for security guards who were not qualified to work under that contract.
This case is the product of an investigation by the Treasury Inspector General for Tax Administration (TIGTA). Assistant United States Attorney Mark J. McKeon is prosecuting the case.
If convicted, each defendant faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for conspiracy defraud the government with respect to claims, and five years in prison and a $250,000 fine on each count of false statements. 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; each defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Stockton Man Charged with Fraud in Auto Engine ScamRead the Press Release
SACRAMENTO, Calif. — Stockton resident John Steven Keplinger, 56, was charged today with five counts of mail fraud in connection with an auto parts scam, United States Attorney Benjamin B. Wagner announced.
According to court documents, from 2010 to 2014, Keplinger carried out a fraud scheme by purporting to sell used auto engines from Japan, but failing to provide customers what he promised. Over 300 paying customers across 44 states and the District of Columbia were defrauded. Keplinger used three companies and websites to carry out the fraud scheme: Rising Sun Engines Inc. (www.risingsunengines.com), Shop 4 Engines LP (shop‑4‑engines.com), and Your Parts Manager (yourpartsmanager.com). Most of the time, Keplinger’s customers paid by check sent via UPS. After Keplinger accepted payment, he either sent no engine at all or sent the customer a defective engine obtained in the United States, often from a junkyard. United States Customs and Border Protection records indicate that Keplinger had stopped importing engines in 2007. The total estimated loss from Keplinger’s fraud is approximately $470,000.
This case is the product of an investigation by the Federal Bureau of Investigation and the United States Postal Inspection Service, with assistance from the San Joaquin County District Attorney’s Office and the California Bureau of Automotive Repair. Assistant United States Attorney Christopher S. Hales is prosecuting the case.
Keplinger is currently in state custody in San Joaquin County.
If convicted, Keplinger faces a maximum statutory penalty of 20 years in prison and a $250,000 fine on each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Marijuana Cultivators Indicted for Growing Marijuana in the Shasta-Trinity National ForestRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a five-count indictment Thursday against Jesus Gonzalez-Alvizo, 25, and Reimundo Arriaga-Arriaga, 37, residents of Mexico, charging them with conspiracy to manufacture marijuana, manufacture of marijuana, possession of firearms in furtherance of a drug trafficking crime, and depredation of public lands and resources, United States Attorney Benjamin B. Wagner announced.
According to court documents, on August 6, 2015, federal and state law enforcement authorities searched a marijuana cultivation site near Tedoc Gap in the Shasta-Trinity National Forest in Tehama County where they found approximately 4,838 marijuana plants growing. Gonzalez‑Alvizo and Arriaga-Arriaga were found at the site and were carrying handguns. They were arrested and are in custody pending trial.
A scientific expert who evaluated the marijuana cultivation site noted extensive resource damage at the site. The expert noted that chemical pesticides at the site included Carbofuran, a highly toxic chemical that is extremely dangerous to humans and to aquatic and terrestrial life, and which is banned in the United States.
This case is the product of an investigation by the U.S. Forest Service, the North State Marijuana Investigation Team (NSMIT), the Bureau of Land Management, and the Tehama County Sheriff’s Office. Assistant United States Attorney Christiaan Highsmith is prosecuting the case.
If convicted, Gonzalez-Alvizo and Arriaga-Arriaga face a maximum statutory penalty of 20 years in prison and a $10 million fine on the conspiracy and manufacture of marijuana charges. They face a maximum statutory penalty of life in prison and a $250,000 fine on the possession of a firearm in furtherance of a drug trafficking charge. And they face up to 10 years in prison and a $250,000 fine on the depredation of public lands and resources charge. 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.
Veterans Affairs Official Pleads Guilty to Accepting Gifts in Relation to His Job DutiesRead the Press Release
SACRAMENTO, Calif. —Anthony Castaneda, 45, resident of Oakdale, pled guilty today before Judge Morrison C. England Jr. to Receipt of a Gratuity by a Public Official, United States Attorney Benjamin B. Wagner announced.
According to court documents, while working as a contracting official at the Department of Veterans Affairs, Castaneda was in a position to influence the award of construction contracts at VA facilities, including the VA hospital at the former Mather Field in Sacramento. In 2010, a construction contractor provided Castaneda with a prepaid vacation package at a theme park worth approximately $2,243.56. Castaneda and his family traveled to the theme park for five days in October 2010. At the time that he accepted that gift, Castaneda was in a position to influence the award of construction contracts by making recommendations about which contractors should be given VA business. Court records also show that Castaneda received a second vacation package from the same contractor, worth approximately $1,439, in 2008.
The contractor in question has been charged separately in federal court in San Jose: United States v. Herrera, case number 5:14-cr-219.
This case was the product of an investigation by the Veterans Affairs Office of Inspector General and the Federal Bureau of Investigation. Assistant United States Attorney Matthew G. Morris is prosecuting the case.
Castaneda faces a maximum statutory penalty of two 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. A conviction can also result in Castaneda being debarred from being awarded government procurement contracts in the future for up to five years.
###
Sacramento Man Sentenced to More Than Eleven Years in Prison for Child Pornography OffenseRead the Press Release
SACRAMENTO, Calif. —Robert M. Schaefer, 68, of Sacramento, was sentenced today by Chief United States District Judge Morrison C. England Jr. to eleven years and four months in prison for two counts of possession of child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, from 2001 to 2010, Schaefer uploaded thousands of images of children being sexually exploited, including children under 10, to various file‑sharing websites. He would surf the Internet looking for people seeking particular types of photos, which he would then supply from his extensive collection. His computers were seized once by the Sacramento Police Department in 2006, but Schaefer rebuilt his pornography collection and began collecting and sharing the materials again. The FBI seized his computers again on 2010 after the German Federal Police provided a tip that Schaefer had recently been uploading child pornography to a file-sharing site in Germany.
In sentencing the defendant, Chief Judge England noted that the volume of the defendant’s collection of child pornography was “astronomical” and that he had served as a niche supplier of child pornography to people seeking particular types of images from all over the world. Because of these facts, Chief Judge England ordered that the defendant serve ten years, the maximum allowable under the law, for his offense of possessing child pornography in 2010, to be followed consecutively by 16 additional months for his offense of possessing child pornography in 2006, for a total sentence of 136 months in prison. Upon release from prison, the defendant will be required to spend the remainder of his life under the supervision of a United States probation officer, and will be required to register as a sex offender.
This case is the product of an investigation by the Federal Bureau of Investigation, the Sacramento Internet Crimes against Children Task Force, and the Sacramento Police Department. Assistant United States Attorneys Matthew G. Morris and Brian A. Fogerty are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
####
Sacramento Man Sentenced to 5 YEARS in Prison for Receiving Child PornographyRead the Press Release
SACRAMENTO, Calif. — Troy Lee Vickers, 49, of Sacramento, was sentenced today by United States District Judge Kimberly J. Mueller to five years in prison for receiving child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, Vickers knowingly used peer-to-peer computer software to download at least 200 child pornography videos from the Internet. Most of the videos recorded the sexual abuse of prepubescent children, some of whom appeared as young as six years old. Some of the videos involved sadistic and masochistic conduct.
This case was the product of an investigation by the Federal Bureau of Investigation and the Sacramento County Sheriff’s Department. Assistant United States Attorneys Matthew G. Morris and Amanda Beck prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Sex Trafficker of Teen Girls Sentenced to over 12 Years in PrisonRead the Press Release
FRESNO, Calif. — Michael Anthony Andrade, 34, of Fresno, was sentenced today by Senior United States District Judge Anthony W. Ishii to 12 years and seven months in prison for sex trafficking of a minor, United States Attorney Benjamin B. Wagner announced. Andrade’s co-defendant Javier Solis is scheduled to be sentenced August 24, 2015.
According to court documents, Andrade and Solis forced two girls, ages 15 and 17, to perform sex acts for money first in Fresno and then in San Luis Obispo. In addition, the 15‑year-old girl was taken to a tattoo parlor in Fresno where the defendants’ nicknames were tattooed on her, one name on each shoulder.
Court documents further reflect the 17-year-old, a runaway, spoke with Fresno Police officers on October 24, 2013, after her mother brought her home from San Luis Obispo. While being interviewed, she told officers about the 15-year-old who was still in San Luis Obispo under the control of the defendants as well as the motel where she was staying. In response, the San Luis Obispo Police Department was contacted, and officers were able to successfully remove her from that location.
“Collaboration, such as occurred here between federal, state, and local agencies, is the key to stopping human trafficking networks. We are pleased with the guilty pleas and the message that this tough sentence sends to anyone involved in sex trafficking of minors. We will continue to be vigilant to seek out and take down the perpetrators of human trafficking by using the collaboration of our anti-human trafficking task force,” stated Dan Dow, San Luis Obispo County District Attorney.
This case is the product of an investigation by the Federal Bureau of Investigation, the Fresno Police Department, the San Luis Obispo Police Department and the San Luis Obispo District Attorney’s Office. Assistant United States Attorneys Michael Frye and Mia Giacomazzi are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
El Dorado Hills Man Pleads Guilty to Embezzling More Than $400,000 from Former EmployerRead the Press Release
SACRAMENTO, Calif. —Jeffrey Lamson, 51, resident of El Dorado Hills, pleaded guilty today before United States District Judge John A. Mendez, to 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 located 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.
This case is 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.
Lamson is currently out of custody, and scheduled to be sentenced by Judge John A. Mendez on November 24, 2015. Lamson faces a maximum statutory penalty of 20 years in prison and a $250,000 fine or twice the gain or loss caused by the fraud. 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.
####
Sierra National Forest Marijuana Cultivators IndictedRead the Press Release
FRESNO, Calif. — A federal grand jury returned an indictment today against Francisco Javier Gomez-Rodriguez, 37, Alejandro Ramirez-Rojo, aka Alejandro Ramires, 30, and Humberto Ceballos-Rangel, 37, all citizens of Mexico, and Anthony Isaac Santibanez, 19, of Woodlake, Calif., charging them in connection with their involvement in a large marijuana cultivation in the Sierra National Forest in Madera County, United States Attorney Benjamin B. Wagner announced.
The men were each charged with conspiracy, manufacturing marijuana, distributing marijuana, possessing marijuana with intent to distribute, and damaging public land and natural resources. According to court documents, Ceballos-Rangel was found at a campsite within the marijuana cultivation site, where agents found 5,904 marijuana plants and a loaded firearm. Gomez-Rodriguez, Ramirez-Rojo, and Santibanez were found a short time later approaching the grow site in a vehicle previously identified as a load vehicle used for the delivery of supplies to the grow site. A .22 caliber rifle was also found in the load vehicle, along with .40 caliber rounds of ammunition.
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. A large quantity of trash was also found in trash pits and throughout the site.
This case is the product of an investigation by the U.S. Forest Service, 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.
All but Santibanez have been ordered detained pending trial. The defendants are scheduled to appear in federal court on August 14, 2015, for arraignment on the indictment.
If convicted the defendants face, as to each drug count, a maximum penalty of up to 20 years in prison and up to a $1 million fine. As to the environmental charge, the defendants face a maximum penalty of 10 years in prison and a fine of up to $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; each defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Nevada Man Pleads Guilty to Aggravated Identity TheftRead the Press Release
SACRAMENTO, Calif. —Glenn Litton, 47, of Carson City, Nevada, pleaded guilty today to aggravated identity theft arising from false statements he made in an application for a United States Passport, United States Attorney Benjamin B. Wagner announced.
According to court documents, on November 19, 2014, Litton submitted an application for a U.S. passport to a passport acceptance officer in Sacramento. In the application, Litton presented a number of false statements, including a false name, birthdate, and Social Security number that belonged to a real individual. Litton also presented a birth certificate, a debit card, and employment ID card all bearing the false name that he used in the passport application. As a result of the application, Litton was issued a U.S. passport in a false name.
This case is the product of an investigation by the U.S. State Department’s Diplomatic Security Service with assistance from the Federal Bureau of Investigation, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Nevada Department of Motor Vehicles. Assistant United States Attorney Shelley D. Weger is prosecuting the case.
Litton remains in custody awaiting sentencing. He is scheduled to be sentenced by Judge Morrison C. England Jr. on November 12, 2015 at 9:00 a.m. Litton faces a statutory penalty of two years in prison and up to a maximum $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Arrests Target Methamphetamine Trafficking from Bakersfield to Oil Fields in North DakotaRead the Press Release
SACRAMENTO, Calif. — U. S. Attorney Benjamin B. Wagner, Acting U. S. Attorney Christopher C. Myers (District of North Dakota), North Dakota Attorney General Wayne Stenehjem, Special Agent in Charge Richard Thornton (Minneapolis FBI), Special Agent in Charge Monica M. Miller (Sacramento FBI) and Bakersfield Chief of Police Greg Williamson announced indictments of 22 individuals in western North Dakota and seven defendants in Bakersfield on drug trafficking charges.
The indictments are a result of an investigation by the North Dakota-based Bakken Organized Crime Strike Force, which was formed to address organized crime arising from the oil boom in the Bakken region in North Dakota.
According to court documents, from June 2014 until June 2015, defendants in Bakersfield and Minot, North Dakota conspired to bring methamphetamine and heroin from Bakersfield and distribute it in Minot. The seven defendants charged in the Eastern District of California were all arrested in the Bakersfield area by FBI agents and Bakersfield police officers Tuesday morning.
Acting U.S. Attorney Chris Myers stated: “The Strike Force was designed to work as one unit to identify, target and dismantle criminal organizations working in the Bakken and reach beyond the borders of North Dakota to ensure the entire criminal organization is brought to justice. After only a few months we are seeing the efficiency, strength and extended reach provided by the Strike Force model. The results here are exactly what we hoped for when we designed the Strike Force.”
U.S. Attorney Benjamin Wagner remarked: “Cross-jurisdictional cooperation is essential for effective narcotics enforcement. We are grateful to the U.S. Attorney’s Office for the District of North Dakota for its leadership in this case, and to our state and federal law enforcement colleagues in both states for their professionalism and assistance.”
Greg Williamson, Chief of Police, Bakersfield stated: “The Bakersfield Police Department is proud to have been a part of this investigation. Criminals pay no attention to jurisdictional lines, and when a criminal enterprise crosses several states, it can quickly exceed the resources of local agencies. That’s when the capabilities of the federal authorities become invaluable in making a difference in our city’s streets and neighborhoods. We are happy to have had this opportunity to work with our law enforcement partners in North Dakota and the Federal Bureau of Investigation. We are looking forward to assisting the United States Attorney’s office in North Dakota in following through and seeing justice done in this matter.”
Two indictments charge seven Bakersfield residents in the Eastern District of California as follows:
Ricardo Cruz Gomez Jr., 23, conspiracy, distribution of methamphetamine;
Marquiz Demitric Tucker, 44, conspiracy, possession with the intent to distribute methamphetamine, racketeering;
Labrea Leshawn Davis, 29, possession with the intent to distribute methamphetamine, racketeering;
Robin Lee, 25, possession with the intent to distribute methamphetamine, racketeering;
Nina Johnson, 35, possession with the intent to distribute methamphetamine, racketeering; (Docket # 1:15-cr-209 LJO); and
Michael Muniz, 43, and Ruben Valdez Jr., 37, conspiracy to distribute methamphetamine and distribution of methamphetamine.
(Docket # 1:15-cr-211 LJO)Assistant United States Attorney Brian Delaney of the Bakersfield office is prosecuting these cases in the Eastern District of California.
If convicted, the defendants face a statutory penalty of 10 years to life in prison and a $10,000,000 fine for the conspiracy, up to 20 years in prison and a $1 million fine for possession with the intent to distribute methamphetamine, and up to five years in prison and a $250,000 fine for racketeering. 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.
The indictment unsealed on Tuesday in North Dakota charges the following 22 defendants with trafficking methamphetamine and heroin, firearms offenses and money laundering:
Ronnie Ray Taylor, 43, Bakersfield;
Terrance Darshay Lynn Peterson, aka Turtle, 42, Minot, North Dakota;
Victor Murillo, aka Vic, 32, Bakersfield;
Debra Meladore Davis, 49, Minot;
Bryan Keith Davis, 48, Minot;
Regina Rose Lehman, 43, Minot;
Michael John Gietl, 43, Minot;
Robert Raymond Althaus, 44, Minot;
Peggy Lee St. Claire, 53, Minot;
Jade Marie Backman, 33, Minot;
Jody Lee Deharty, 25, Minot;
Ricky Dean Strahan, 56, Minot;
Gerald Wayne Osby Jr., 22, Minot;
James Alex Locklear, 27, Minot;
Alyssa Jo Schlienz, 21, Minot;
Audra Dezzari Harris, 39, Minot;
Gilbert Eugene Graim Jr., 21, Bakersfield;
Teoshalashanae M. Songcuan, 24, Bakersfield;
Deandre Trayvon Peterson, 24, Minot;
Jimmy Dale Price, 42, Minot;
Miranda Leigh Grant, 30, Minot;
Rodney Lee Jackson, 49, Carson, California.
Assistant United States Attorney Rick Volk is prosecuting these cases for the District of North Dakota.
These cases are being investigated by the Federal Bureau of Investigation, the Kern County Violent Crime and Gang Task Force, North Dakota Bureau of Criminal Investigation, Bakersfield Police Department, Minot Police Department, Ward County Sheriff’s Office, Ward County Narcotics Task Force, Drug Enforcement Administration, Metro Area Narcotics Task Force, North Dakota Highway Patrol, and United States Border Patrol, with assistance from the Kern County Probation Department.
Two Plead Guilty in Scheme to Bribe DMV Employees to Issue Commercial Driver’s Licenses; Four More ChargedRead the Press Release
SACRAMENTO, Calif. — Two defendants, including a DMV employee, pleaded guilty today to their roles in a conspiracy to sell Class A commercial driver’s licenses (CDLs) without the buyer having to take or pass the required tests, announced United States Attorney Benjamin B. Wagner; Tatum King, Acting Special Agent in Charge for Homeland Security Investigations (HSI) San Francisco; FBI Special Agent in Charge Monica M. Miller; and Frank Alvarez, Chief of Investigations Division, California Department of Motor Vehicles. Four more persons, including two other DMV employees, were charged in a 17‑count indictment unsealed Friday.
According to court documents, between June 2011 and March 2015, three owners of truck driving schools acted as brokers who accepted money from individuals who wanted Class A CDL without having to take and pass the required written and behind-the-wheel driving tests. The brokers used the money to bribe DMV employees to access the DMV’s computer database to submit false information that the individuals had passed the tests. This resulted in the DMV issuing official driver’s licenses to individuals who were not qualified to receive such licenses.
Emma Klem, 45, of Salinas, a DMV employee who worked in a Salinas DMV branch, and trucking school owner Kulwinder Dosanjh Singh, aka Sodhi Singh, 58, of Turlock, were charged earlier in separate criminal pleadings and entered guilty pleas this morning to conspiracy to commit bribery and to commit identity fraud. The indictment, returned Thursday and unsealed Friday, charges trucking school owners Pavitar Dosangh Singh, aka Peter Singh, 55, of Sacramento; and Mangal Gill, 55, of San Ramon; and DMV examiners Andrew Kimura, 30, of Sacramento; and Robert Turchin, 65, of Salinas, with conspiracy, bribery, and fraud in connection with identification documents. The indictment specifically references the involvement of Klem and Sodhi Singh.
“Public corruption is always a high priority for the U.S. Department of Justice, but our mission is particularly crucial when the conduct not only violates the public trust, but endangers public safety,” said U.S. Attorney Wagner. “We depend on the Department of Motor Vehicles to keep the roads of this state safe, and individuals who undermine that function for personal gain must not expect leniency from the justice system. I am pleased that DMV Investigations worked so closely with FBI, HSI, and my office to expose and prosecute this conduct.”
“These investigations and the criminal charges they produced send a very clear and loud message that the Department of Motor Vehicles takes fraud and illegal activity very seriously, and it is absolutely not tolerated,” stated Frank Alvarez, Chief Investigator, California Department of Motor Vehicles. “DMV has already taken action and cancelled or revoked a number of licenses that appear to have been obtained through fraudulent means. The department will continue to work with our federal partners to ensure that justice is served.”
“Public corruption undermines the integrity of government, compromises safety, and damages our trust in public officials and employees,” said Special Agent in Charge Monica M. Miller of the FBI Sacramento field office. “The FBI is grateful for the collaboration of the California DMV and HSI during this complex, multi-year investigation. We are committed to working with our federal and state partners to identify and investigate public corruption at any level and urge the public to contact us with any information regarding corruption in government.”
“This scheme enabled unqualified drivers to obtain licenses to operate all types of commercial vehicles,” said Tatum King, acting special agent in charge for HSI San Francisco. “The implications of putting untrained drivers behind the wheel in such cases is frankly chilling. HSI will continue to work closely with its federal and state law enforcement partners to target schemes like this that serve to enrich the perpetrators at the expense of the public’s safety.”
In order to obtain a Class A CDL to operate a commercial truck, such as an 18-wheel cargo truck, applicants must pass both a written test, which is offered in many DMV locations including Sacramento, and a behind-the-wheel test that is offered in a limited number of DMV locations including Salinas. The charges announced today are the result of investigations conducted by the Federal Bureau of Investigation, Homeland Security Investigations (HSI), and DMV Investigations which originated separately, but which combined in the course of the investigation.
The indictment charges three conspiracies. The first began in approximately June 2011 and involved Kimura, Peter Singh, and Gill, who conspired with Klem and Sodhi Singh to obtain Class A CDLs for individuals who had not taken or passed the necessary DMV examinations in return for the payment of money to employees of the DMV (bribery), and to produce identification documents without lawful authority (ID fraud). The indictment alleges that Kimura was a Licensing Registration Examiner who worked in the DMV’s office in Sacramento. He processed applications for Class A and Class B commercial and Class C non‑commercial driver’s licenses. Peter Singh owned and operated a truck driving school in Sacramento and acted as a broker to assist individuals in obtaining Class A, Class B, and Class C driver’s licenses. Gill owned and operated trucking schools in Fremont, Lathrop, Fresno, and Salinas and acted as a broker to assist individuals in obtaining Class A, Class B, or Class C licenses. Sodhi Singh owned and operated a truck-driving school in Turlock and also acted as a broker to assist individuals in obtaining Class A, Class B, and Class C licenses. Klem was a Motor Vehicle Representative who worked in the DMV’s office in Salinas. Part of her job duties included processing applications for Class A, Class B, and Class C licenses.
The second alleged conspiracy to commit bribery and ID fraud involved Gill, Klem, and DMV employee Robert Turchin, who was a Licensing-Registration Examiner working at the DMV facility in Salinas. According to the indictment, from July 2012 until April 2015, Gill acted as a broker for individuals who desired to obtain Class A or Class B CDLs without taking the requisite DMV examinations. He paid Turchin and Klem and other DMV employees to alter DMV records so that Class A and Class B CDLs would be issued to individuals who were not qualified to receive such licenses.
According to the indictment, the third conspiracy began in April 2013 and continued until July 2015 in Sacramento. It is alleged that Peter Singh paid money to Kimura to access the DMV’s computer database and alter individuals’ electronic DMV records to fraudulently and incorrectly indicate that applicants had passed examinations for Class C licenses, had passed the written examination for Class A CDLs, or had fulfilled the requirements for a Class A or Class B CDL renewal. These incorrect and fraudulent entries in the DMV database caused the DMV to issue licenses to unqualified individuals.
As part of the guilty pleas entered this morning, Sodhi Singh admitted accepting money to bribe DMV employees to obtain CDLs for individuals, and DMV employee Emma Klem admitting changing DMV data to indicate that those individuals had passed behind-the-wheel tests, when in fact they had never appeared to take the test.
Court documents indicate that the number of CDLs issued as a result of the scheme could number over 100. The investigation is continuing. DMV has already cancelled or revoked a number of licenses that appear to have been fraudulently procured, and will be reviewing the evidence to determine what additional actions may be appropriate.
These cases are the product of investigations by the Federal Bureau of Investigation, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the California Department of Motor Vehicles’ Investigations Division, Office of Internal Affairs. Assistant United States Attorneys Todd Pickles and Rosanne L. Rust are prosecuting the cases.
Klem and Sodhi Singh are scheduled to be sentenced on November 17, 2015. They face a maximum statutory penalty of five years in prison and a $250,000 fine for each count. 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.
Peter Singh and Andrew Kimura were arraigned on August 7, 2015, and entered pleas of not guilty. Turchin and Gill are scheduled to be arraigned on Friday, August 14, 2015. If convicted, the defendants face a maximum statutory penalty of five years in prison and a $250,000 fine for each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Jury Convicts Roseville Man of 5 Counts of Wire Fraud in Mortgage Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — After a six–day trial, a federal jury found Erik Hermann Green, 33, of Roseville, guilty today of five counts of wire fraud in a mortgage fraud scheme, United States Attorney Benjamin B. Wagner announced. The trial was held before United States District Judge Troy L. Nunley.
According to evidence presented at trial, Green was part of a large-scale mortgage fraud scheme to defraud the New Century Mortgage Company by submitting false documentation about employment, income and assets, including fraudulent loan applications and other altered bank documents. Around November of 2006, when Green submitted his fraudulent loan applications to obtain a loan for $820,000, he was a licensed real estate sales person and managed approximately 15 loan officers. As part of the scheme, Green received a check for $100,000 that was funneled through a shell company at the close of escrow. Green used the funds for personal expenses.
This case is the product of an investigation by the Internal Revenue Service – Criminal Investigation and the Alameda County District Attorney’s Office. Assistant United States Attorney Michael D. Anderson and Special Assistant United States Attorney Josh F. Sigal are prosecuting the case.
On September 19, 2013, co-defendant Stephen Pirt pleaded guilty to wire fraud and is awaiting sentencing on September 24, 2015. Green is scheduled to be sentenced by Judge Nunley on November 19, 2015. Green faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Southern California Man Enters Guilty Plea in Connection with Prison “Spice” Smuggling SchemeRead the Press Release
FRESNO, Calif. — James Steven Harris, aka Steve Harris, 45, of Loma Linda, pleaded guilty today in connection with his involvement in smuggling smokable synthetic cannabinoids into prison, United States Attorney Benjamin B. Wagner announced.
Steve Harris pleaded guilty to two counts of making false statements on Federal Bureau of Prisons (BOP) visitor forms that he was not in possession of contraband, knowing that he was in possession of “spice,” a smokable synthetic cannabinoid containing XLR11. Steve Harris acknowledged that on one occasion he successfully smuggled 15.5 grams of XLR11 into the federal prison at Taft for his brother Tracy McArthur Harris, aka Trey Harris, 42, an inmate, and later attempted to smuggle 34.3 grams of XLR11, along with four packages of rolling papers, into the prison.
Synthetic cannabinoids, commonly known as “spice” or “K2,” refer to a family of substances that act on the brain in a manner similar to delta-9 THC, the main psychoactive constituent of cannabis. According to the American Association of Poison Control Centers, the effects of synthetic cannabinoid usage can be life-threatening and can include: severe agitation and anxiety; fast, racing heartbeat; nausea and vomiting; muscle spasms, seizures, and tremors; psychotic episodes; and suicidal and thoughts or actions.
Steve Harris is scheduled for sentencing on October 26, 2015, before Senior U.S. District Judge Anthony W. Ishii. He faces a maximum statutory penalty of five years in prison and a $250,000 fine, as to each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Tracy Harris was subject to a prison disciplinary proceeding which added more time to his current 11-year prison term. He was also sentenced last month by Judge Ishii to a consecutive one year prison term for his involvement in obtaining the smokable synthetic cannabinoids from his brother.
This case is the product of an investigation by the Federal Bureau of Investigation and the Special Investigative Supervisor’s Office of Taft Correctional Institution. Assistant United States Attorney Karen A. Escobar is prosecuting the case.
Sierra National Forest Marijuana Cultivator Pleads GuiltyRead the Press Release
FRESNO, Calif. —Jose Antonio Reyna-Chavez (Reyna), 19, from Michoacán, Mexico, pleaded guilty today to conspiring to manufacture, distribute, and possess with intent to distribute marijuana and possessing a firearm in furtherance of a drug trafficking crime, United States Attorney Benjamin B. Wagner announced.
According to court documents, Reyna was involved in the cultivation of 1,539 marijuana plants in the Blue Canyon area of the Sierra National Forest in Fresno County when he attempted to flee from law enforcement officers. The cultivation operation was within three miles of a public campground and about seven miles from Shaver Lake. At the site, law enforcement officers found marijuana plants, processed marijuana, a digital scale, an AK-47 style assault rifle with a loaded high-capacity magazine, and a 12 gauge pump action shotgun. The marijuana cultivation operation also caused significant damage to the land and natural resources of the forest. Six large helicopter net loads of material and debris, including fertilizer, propane tanks, and poisons, were removed from the grow site. Reyna has agreed to pay $10,000 to the U.S. Forest Service to compensate it for the cleanup costs.
This case is the product of an investigation by the U.S. Forest Service, the California National Guard, and Fresno County Sheriff’s Office with assistance from the California Department of Fish and Wildlife. Assistant United States Attorney Karen A. Escobar is prosecuting the case.
Reyna was previously detained as a flight risk and danger to the community and is scheduled for sentencing on October 26, 2015. He faces 20 years in prison and a fine of $1 million for the drug conspiracy and a mandatory minimum consecutive five year term up to life in prison for the gun charge. 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.
Founder of Delta Homes and Lending Inc. Pleads Guilty to Mortgage Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Moctezuma Tovar, 46, of Sacramento, and Sandra Hermosillo, 53, of Woodland, pleaded guilty today to conspiring to commit wire fraud in connection with a mortgage fraud scheme, United States Attorney Benjamin B. Wagner announced.
According to court documents, Tovar was the founder and president of Delta Homes and Lending Inc., a Sacramento-based real estate and mortgage lending company. Delta Homes opened one office in 2003 and eventually had five offices in Sacramento and Woodland. As the president of Delta Homes, Tovar managed the day-to-day operations of the company and prepared and submitted residential home loan applications on behalf of Delta Homes’ clients. Hermosillo was a loan officer at the Woodland office and was also responsible for submitting residential home loan applications on clients’ behalf.
Between October 2004 and May 2007, both Tovar and Hermosillo conspired with others to obtain home loans from mortgage lenders based upon false and fraudulent loan applications and supporting documents that falsely represented the borrowers’ assets and income, liabilities and debts, and employment status. They provided money to the borrowers in order to inflate their bank account balances. Once the loans were secured, the borrowers returned the money to the defendants. The aggregate sales price of the homes involved in the conspiracy was in excess of $10 million. As a result of the conspiracy, mortgage lenders and others suffered losses of at least $4 million.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Jean M. Hobler and Brian A. Fogerty and Special Assistant United States Attorney Christine O’Neill are prosecuting the case.
Tovar and Hermosillo are scheduled to be sentenced by Senior United States District Judge William B. Shubb on December 7, 2015, along with co-defendants, Manuel Herrera, 35, of Sacramento, and Jun Michael Dirain, 42, of Antelope, who have already pleaded guilty in this case. Each defendant faces a maximum statutory penalty of 30 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Co-defendants and licensed real estate agents Jaime Mayorga, 36, and Ruben Rodriguez, 38, both of Sacramento, as well as Christian Parada Renteria, 39, of Woodland, formerly a loan officer, have a trial date of September 22, 2015. The charges against Mayorga, Rodriguez and Parada Renteria are only allegations; these defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Marijuana Cultivation Operation in the Shasta-Trinity National Forest Results in Federal Prison SentenceRead the Press Release
SACRAMENTO, Calif. — Isidro Alcazar-Tapia, 26, of Eureka, was sentenced today to seven years and three months in prison and ordered to pay $17,000 in restitution for conspiring to manufacture and possess with intent to distribute marijuana and for depredation of public lands and resources, United States Attorney Benjamin B. Wagner announced.
According to court documents, Isidro Alcazar-Tapia and his brother, Arturo Alcazar-Tapia, 31, of Eureka, conspired to grow more than 20,000 marijuana plants at two sites in the Shasta-Trinity National Forest in Trinity County. The marijuana was packaged for distribution at a house in Eureka. On August 4, 2014, law enforcement executed a search warrant at the defendants’ home in Eureka and found 33 pounds of processed marijuana divided into one pound packages and more than $6,000 in cash. At a cultivation site at Big French Creek, agents located and destroyed approximately 7,980 marijuana plants and arrested co‑defendant Ricky Martin Huerta, 21, of Eureka. At a site at Hobo Gulch Road, agents located and destroyed approximately 13,642 marijuana plants. Both grow sites are in the Shasta-Trinity National Forest. The marijuana cultivation caused significant damage to the land and natural resources of the forest that provides habitat for several threatened and endangered animal species.
At the Big French Creek site, agents observed hundreds of holes dug in the dirt containing soluble fertilizer, bags of trash, empty fertilizer bags, propane tanks, and water lines diverting water from a stream into the marijuana garden. Analysts estimate that cleaning the Big French Creek site will cost the U.S. Forest Service more than $4,000. Agents observed similar destruction at the Hobo Gulch Road site. Analysts estimate that cleaning the Hobo Gulch Road site will cost the U.S. Forest Service approximately $13,000.
All three defendants pleaded guilty in January 2015. On June 16, 2015, Judge Garland E. Burrell Jr. sentenced Ricky Martin Huerta to two years and eight months in prison. Arturo Alcazar-Tapia is scheduled to be sentenced on October 23, 2015.
This case is the product of an investigation by the United States Forest Service, the Humboldt County Drug Task Force, North State Marijuana Team, and the Trinity County Sheriff’s Office. Assistant United States Attorney Christiaan Highsmith is prosecuting the case.
Two Men Indicted for Growing Marijuana in Sequoia National ForestRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Macedonio Madrigal-Herrera (Madrigal), 44, and Ezequiel Armas-Ortiz (Armas), 49, both of Mexico, charging them with conspiring to cultivate, distribute and possess with intent to distribute marijuana; cultivating and possessing with intent to distribute marijuana; and damaging public land and natural resources as a result of the large-scale marijuana cultivation operation, United States Attorney Benjamin B. Wagner announced.
According to court documents, on July 30, 2015, Madrigal and Armas were found at the cultivation site in the Brush Creek drainage in the Sequoia National Forest in Tulare County during the execution of a federal search warrant. Agents removed 2,719 marijuana plants from the site and found toxic chemicals, fertilizer, and trash strewn throughout. The cultivation activities caused extensive damage to the land and natural resources. 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.
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 Tulare County Sheriff’s Office. Assistant United States Attorney Karen Escobar is prosecuting the case.
Armas and Madrigal were previously ordered detained as a flight risk and danger to the community and are scheduled for arraignment on the indictment on August 12, 2015, in federal court in Fresno. If convicted of the drug offenses, they face a maximum statutory penalty of 20 years in prison and a $1 million fine as to each count. If convicted of the environmental crime, the defendants face a maximum statutory penalty of 10 years in prison, a $250,000 fine, and restitution. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Sequoia National Park Marijuana Cultivation Operation Results in Federal Prison SentenceRead the Press Release
FRESNO, Calif. — Toribio Cruz-Galvan (Cruz), 30, of Turicato, Michoacán, Mexico, was sentenced today to two years in prison for conspiring to manufacture, distribute, and possess with intent to distribute marijuana, United States Attorney Benjamin B. Wagner announced.
His sentence follows his guilty plea earlier this year. According to court documents, Cruz was involved in the cultivation of 1,016 marijuana plants and processing 51 pounds of dried marijuana in the Yucca Mountain area of the Sequoia National Park. Although he was not found at the cultivation site, Cruz was linked to the grow site through his fingerprints, which were found on equipment and materials located in the grow site, as well as a supply vehicle intercepted several days before the discovery of the grow site.
The Yucca Mountain area is generally known for its spring wildflower display. In addition to the marijuana plants, park rangers found processed marijuana, a shotgun, ammunition for various firearms, and a digital scale at the cultivation site. The operation caused significant damage to National Park land and natural resources. Fertilizer, rodenticide, propane tanks, and 300 pounds of trash were removed from the grow site. It is estimated that over one million gallons of water was diverted from a nearby spring to irrigate the marijuana plants.
This case was the product of an investigation by the National Park Service. Assistant United States Attorney Karen A. Escobar prosecuted the case.
Fresno Man Sentenced for Extensive Fraudulent Bonding Scheme and Aggravated Identity TheftRead the Press Release
FRESNO, Calif. — Abel Martin Carreon, 57, of Fresno, was sentenced today by Senior United States District Judge Anthony W. Ishii to five years and five months in prison for one count of mail fraud and one count of aggravated identity theft, United States Attorney Benjamin B. Wagner announced. Carreon was also ordered to pay $1,253,000 in restitution.
According to court documents, between April 2005 and May 2011, Carreon carried out a scheme to defraud the United States and private companies seeking to perform contracted work for the United States. Through his company Tripartite Escrow Corporation (TEC), he offered bonding services to prospective government contractors throughout the United States that included bid bonds to secure a bid on a government contract and performance and payment bonds to insure the work on a government contract.
Surety bonds are required for certain federal government contracts. If a contractor defaults, the surety bonds compensate the government for the financial loss incurred. To be acceptable under federal regulations the bonding company must pledge acceptable assets with a value equal to or exceeding the amount of each bond, and submit a sworn affidavit disclosing the identity of the surety and verifying the existence and acceptability of the assets under penalty of prosecution.
According to the plea agreement, the bond packages Carreon submitted contained false statements and fraudulent documents. He pledged as collateral common stock that did not exist, was worth substantially less than represented, or was pledged across multiple bonds without full disclosure. He used forged notary stamps and notary signatures and other forged signatures on the bond documents.
Once the false and fraudulent performance and payment bonds were accepted by the contracting government agency and work began under the contract, the government would make payments on the contract to the contractor, including Carreon’s bond premium. The United States and government contractors paid Carreon for false and fraudulent payment and performance bonds, which resulted in a loss of approximately $1,250,000.
"As evidenced by the sentence handed down against Able Carreon, the Department of Transportation Office of Inspector General (DOT OIG) remains steadfast in its commitment to maintaining the integrity of the Nation’s transportation infrastructure programs," said William Swallow, regional Special Agent-In-Charge, DOT OIG. "Working with our law enforcement and prosecutorial colleagues, we will continue to protect the taxpayers’ investment in our nation’s infrastructure from fraud, waste, abuse and violations of law.”
“Today’s sentencing of Abel Martin Carreon reaffirms the Department of Homeland Security (DHS), Office of Inspector General’s (OIG) commitment to aggressively pursue, investigate, and hold accountable those who commit fraud against DHS and the Federal Emergency Management Agency. Protecting the integrity of DHS programs and operations remains one of the highest priorities of DHS OIG. We would like to thank our law enforcement partners and the U.S. Attorney’s Office for their outstanding efforts in this matter.” Roger T. Merchant, Special Agent in Charge, DHS OIG, Los Angeles Field Office.
This case was the product of an investigation by the U.S. Department of Transportation, Office of Inspector General; the U.S. Department of the Interior, Office of Inspector General; the U.S. Department of Defense, Office of Inspector General; the U.S. Army, Criminal Investigation Command; the U.S. Air Force, Office of Special Investigations; the Defense Criminal Investigative Service; the U.S. Department of Agriculture, Office of Inspector General; the Department of Homeland Security, Office of Inspector General; and the U.S. General Services Administration, Office of Inspector General. Assistant United States Attorney Henry Z. Carbajal III prosecuted the case.
Final Defendant Pleads Guilty in Multistate Conspiracy to Sell over $1 Million in Counterfeit Erectile-Dysfunction DrugsRead the Press Release
FRESNO, Calif. —John Derek Gitmed, 53, of Los Angeles, pleaded guilty today to one count of trafficking in counterfeit goods, United States Attorney Benjamin B. Wagner announced.
According to court documents, Gitmed, along with his ex-wife, Holly Gitmed, 39, of Riverbank, his daughter Felicia Gitmed, 24, of Los Angeles, and his nephew Anthony Pollino, 37, of Los Angeles, conspired to obtain counterfeit copies of the erectile-dysfunction drugs Viagra®, Cialis®, and Levitra®, along with their packaging, and sell them to consumers throughout California and in the Las Vegas, Nevada area. The defendants assured buyers their products were genuine, when they were actually cheaply made foreign copies of the drugs. The defendants operated as a business, calling their operation the “California Confidence Company.” Gitmed admitted that the value of the counterfeit products attributable to him as over $1.2 million.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Michael G. Tierney and Henry Z. Carbajal III are prosecuting the case.
Gitmed is in custody and is scheduled to be sentenced by Senior United States District Judge Anthony W. Ishii on October 19, 2015. He faces a maximum statutory penalty of 20 years in prison and a $5 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Each of Gitmed’s co-defendants previously pleaded guilty to one count of trafficking in counterfeit goods. Holly Gitmed pleaded guilty on June 8, 2015, and is scheduled to be sentenced on August 24, 2015. Felicia Gitmed pleaded guilty on June 22, 2015, and is scheduled to be sentenced on January 25, 2016. Anthony Pollino pleaded guilty on July 20, 2015 and is scheduled to be sentenced on October 5, 2015.
Atwater Woman Sentenced for Student Aid Fraud and Identity TheftRead the Press Release
FRESNO, Calif. — Sherise Lanelle Woolridge, 33, of Atwater, was sentenced today for mail fraud and aggravated identity theft for her role in a student aid fraud scheme, United States Attorney Benjamin B. Wagner announced. United States District Judge Lawrence J. O’Neill sentenced her to four and a half years in prison and ordered her to pay $347,732 in restitution.
According to court documents, Woolridge participated in a scheme to defraud the United States Department of Education of student aid grants and loans. She submitted false financial aid applications to Axia College at the University of Phoenix and Capella University on behalf of students who did not intend to attend either school. She also used stolen or wrongfully obtained personal identifying information of another person to apply for college financial aid. As a result of the scheme to defraud, more than $370,000 in grants and loans were disbursed.
Federal student aid exists so that individuals can pursue and make their dream of a higher education a reality. It is not, as Ms. Woolridge just found out, a personal slush fund,” said Natalie Forbort, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Western Regional Office. “I’m proud of the work of OIG special agents and our law enforcement colleagues for holding Ms. Woolridge accountable for her criminal actions. Her sentence should serve as a warning to anyone who intentionally steals or misappropriates Federal student aid dollars: you will be caught and prosecuted to the fullest extent of the law.”
This case is the result of the U.S. Department of Education Office of Inspector General’s criminal investigations aimed at shutting down fraudulent schemes that seek to exploit federal student aid programs. The U.S. Postal Inspection Service assisted in the investigation. United States Attorney Mark J. McKeon is prosecuting the case.
Las Vegas Man Sentenced to 17.5 Years in Prison for Interstate Transportation of a 16-Year-Old for SexRead the Press Release
SACRAMENTO, Calif. — Donald J. Peel, 64, of Las Vegas, Nevada, was sentenced today by United States District Judge Garland E. Burrell Jr. to 17 and a half years in prison for transportation of a minor with the intent to engage in unlawful sexual activity, United States Attorney Benjamin B. Wagner announced.
In sentencing, Judge Burrell stated, “I cannot turn a blind eye to the nature and circumstances of the offense: they are despicable. … He is a danger to society who remains undeterred even after countless run-ins with the law.”
According to court documents and evidence presented during the jury trial, Peel took a 16-year-old girl from Las Vegas and moved her through five western states before he was arrested in Weed, California on March 19, 2014, where law enforcement found him with the minor. During the trip, Peel purchased and gave the 16-year-old illicit drugs, even administering methamphetamine to her intravenously, then had sex with the victim, sometimes multiple times a day, for all or most of the entirety of the trip. Needles used by the defendant to inject his victim with methamphetamine were found in his vehicle and introduced as evidence at trial.
Evidence at trial showed that Peel took extensive steps during the trip to isolate his victim and make her entirely dependent upon him, to conceal her age, and to conceal their identities, as he moved her through Nevada, Arizona, California, Oregon and Washington in a vehicle in which her door would not open. When she was found by law enforcement, she was famished and dirty. During the trial, the Peel’s Las Vegas girlfriend testified that Peel wanted to “clean up” the victim to prostitute her. Peel’s girlfriend also testified that Peel had attempted to marry her so that she would not be able to testify against him at trial.
This case was the product of an investigation by the Federal Bureau of Investigation, the California Highway Patrol, the Weed Police Department, Siskiyou Juvenile Probation Department, and the Franklin County Sheriff’s Office in Washington. Assistant United States Attorneys Michael M. Beckwith, Sherry D. Haus, and Matthew G. Morris prosecuted the case.
Loomis Man and Corporation Plead Guilty to Conducting an Illegal Gambling BusinessRead the Press Release
SACRAMENTO, Calif. — Capital Sweepstakes Systems Inc., a corporation headquartered in Loomis, and Kevin Freels, 41, of Loomis, pleaded guilty today to conducting an illegal gambling business related to Internet sweepstakes cafés, United States Attorney Benjamin B. Wagner announced. As part of its plea agreement, Capital Sweepstakes agreed to forfeit over $1.5 million in profits generated through its illegal gambling business. These funds were previously seized by the United States in a related proceeding.[1]
“California and the federal government have enacted laws intended to regulate the gambling industry and protect the public,” said U.S. Attorney Wagner. “Today’s pleas are the result of Capital Sweepstakes’ attempt to avoid those laws while building a sprawling and lucrative enterprise based upon a purported sweepstakes game that was in fact the functional equivalent of a slot machine.”
“As exemplified by the elaborate and illegal fictions used by Capital Sweepstakes Systems, the FBI will investigate efforts to subvert lawful gambling regulations,” said Special Agent in Charge Monica Miller of the FBI’s Sacramento field office. “Thanks to a strong partnership between the FBI, the Internal Revenue Service – Criminal Investigation, and the California Bureau of Gambling Control, we were able to stop this criminal activity and deter others from circumventing the law.”
“Capital Sweepstakes profited by targeting low-income communities, misrepresenting their unregulated slot-machine style operations as legal enterprises and creating magnets for crime,” said Attorney General Kamala D. Harris. “My office is dedicated to combatting and dismantling illegal gambling operations statewide. I thank our Gambling Task Force and the Bureau of Gambling Control for their investigative work.”
According to court documents, from January 2013 to September 2014, Capital Sweepstakes provided software and hardware systems for Internet sweepstakes cafés throughout California. Freels had an office at the Capital Sweepstakes headquarters, was the president of the software company that provided the sweepstakes software, and received a significant portion of the revenues generated by Capital Sweepstakes. Freels assisted in overseeing operations and financial dealings at Capital Sweepstakes.
At Internet sweepstakes cafés, customers purchased sweepstakes entries, which were often loaded onto plastic cards with magnetic strips. The customers could then swipe the cards at specially programmed computer terminals inside the cafes and play a variety of gambling-themed games, with names such as Hot Luck Keno, Tropical Treasures, Dreamcatcher, Lucky Puppy, and Luck of the Irish. These games looked and sounded like casino-styled slot machines, and the results of the games revealed whether or not the customer “won” the sweepstakes. Customers were eligible to win cash prizes from the sweepstakes, which were paid at the location of play. The sweepstakes results were not actually dependent upon the outcome of the games, but were predetermined through the Capital Sweepstakes software. Capital Sweepstakes would later send an invoice to the location to receive a previously agreed upon percentage of its profits. Capital Sweepstakes was able to do this because it tracked the sweepstakes activity on its servers remotely. This type of online gaming was conducted entirely outside the state gambling regulatory scheme. In a decision issued last month, the California Supreme Court confirmed that such games are illegal.[2]
Many Internet sweepstakes cafés in Sacramento, West Sacramento, and Stockton used Capital Sweepstakes software. Based on bank records, Capital Sweepstakes also had operations in other states, including Hawaii and Texas.
This case is the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation. Agents from the California Bureau of Gambling Control also provided assistance. Assistant United States Attorneys Jared Dolan, Christopher Hales, and Kevin Khasigian are prosecuting the case.
As part of a parallel civil settlement with the California Attorney General’s Office, Capital Sweepstakes Systems entered into a stipulated judgment of $700,000.
Kevin Freels and Capital Sweepstakes Systems Inc. are scheduled to be sentenced by Chief United States District Judge Morrison C. England Jr. on November 5, 2015. Capital Sweepstakes faces a maximum statutory penalty of five years’ probation and a $500,000 fine. Freels faces a maximum statutory penalty of 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.
[1] 2:14-mc-00134-MCE
[2] People ex rel. Green v. Grewal, 61 Cal. 4th 544 (2015)
After Arrest in Visalia Motel, Pismo Beach Man Indicted for Manufacturing Counterfeit CurrencyRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Kenneth Dwayne Choate, 51, of Pismo Beach, charging him with manufacturing counterfeit U.S. currency, United States Attorney Benjamin B. Wagner announced. Choate was ordered detained by Judge Stanley A. Boone on July 23, 2015, after being arrested on a federal criminal complaint.
According to court documents, on May 31, 2015, a vendor at the Visalia Swap Meet reported to law enforcement that someone was passing counterfeit money. The investigation led to Choate, who had a motel room in Visalia. Officers obtained a search warrant for the room, and contacted Choate and a co-conspirator at the front door of the room. A search was conducted and officers found more than $30,000 in counterfeit bills, multiple printers, numerous boxes of drafting paper, and printing and cutting supplies.
This case is the product of an investigation by the U.S. Secret Service, with assistance from the Tulare County Sheriff’s Office. Assistant U.S. Attorney Grant B. Rabenn and Special Assistant U.S. Attorney Katherine A. Plante are prosecuting the case.
If convicted, Choate faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Sutter County Brothers Sentenced to Prison for Marijuana CultivationRead the Press Release
SACRAMENTO, Calif. — Thomas Jopson, 66, and David Jopson, 64, of Rio Oso, were sentenced today by United States District Judge John A. Mendez to one year in prison for conspiring to cultivate marijuana, United States Attorney Benjamin B. Wagner announced.
The Jopsons were ordered to surrender to the United States Marshals Service to begin serving their sentences on September 24, 2015.
According to court documents, on June 21, 2011, federal and state agents executed seven federal search warrants in Sacramento, Sutter, and Tehama Counties. Two of these warrants were executed at the sites of large, commercial greenhouses at the Jopson Ranch in Rio Oso and at Cal-Nevada Wholesale Florist in Sacramento. Law enforcement officers seized over 5,000 marijuana plants including approximately 2,168 marijuana plants at the Jopson Ranch. Two leaders arrested at the grow sites, Yan Ebyam and Aimee Sisco, admitted their involvement in the marijuana cultivation business. While in clear violation of federal law, the Jopson Ranch Grow attempted to use California medical marijuana law to cloak their business activities. A total of 12 defendants were later indicted for crimes relating to their marijuana cultivation in this, and a related case currently pending in the Eastern District of California.
The enforcement action taken against these commercial marijuana manufacturing operations was consistent with U.S. Department of Justice policy to prosecute persons who are in the commercial business of cultivating, selling, or distributing marijuana, and those who knowingly facilitate such activities.
Last week, Judge Mendez sentenced Aimee Sisco, 34, of Redding, to 38 months in prison after she pleaded guilty to conspiring to cultivate marijuana with the Jopsons and others.
On July 1, 2014, Ebyam pleaded guilty to conspiring to cultivate marijuana in this case, and the related case of United States v. Ebyam, et al. (2:11-CR-276 JAM). His sentencing is set for October 27, 2015.
This case was the product of an investigation by the Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation, the Sutter County Sheriff’s Department, and the California Bureau of Narcotic Enforcement. It 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.
Sacramento Man Pleads Guilty to Tax Preparation FraudRead the Press Release
SACRAMENTO, Calif. —William Glenn Green, 48, of Sacramento, pleaded guilty today to 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 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 $492,000.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Christopher S. Hales is prosecuting the case.
Green is scheduled to be sentenced by United States District Judge Kimberly J. Mueller on October 14, 2015. Green faces a maximum statutory penalty of three years in prison and a $100,000 fine, and can also be ordered to pay restitution to the Internal Revenue Service. 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 Sierra Army Depot Employee Sentenced for Stealing Military EquipmentRead the Press Release
SACRAMENTO, Calif. — Tony Herrin, 36, resident of Reno, Nevada, was sentenced today by United States District Judge Kimberly J. Mueller to two years and nine months in prison and restitution of $411,333 for theft of government property, United States Attorney Benjamin B. Wagner announced.
According to court documents, Herrin worked as a civilian employee at the Sierra Army Depot (SIAD) in Herlong. As part of his job responsibilities, Herrin received, catalogued, and inventoried military equipment returned from Iraq and Afghanistan. Herrin worked in the same building as co-worker Devon Biggs, who pleaded guilty and was sentenced to 16 months in prison in a related case. While working at SIAD, Herrin and Biggs stole numerous items of sophisticated military equipment. Herrin played a role in stealing 10 Taser devices, three Vectronix target acquisition systems (total value $221,787), six military grade flashlights (total value $11,267), and 25 thermal imaging sights. The total value of all these items is approximately $411,000. On at least two occasions, Herrin and Biggs met with potential buyers for the military equipment.
This case was the product of investigation by the Law Enforcement Division of the United States Army, Naval Criminal Investigative Service, and the Federal Bureau of Investigation. Assistant United States Attorneys Jean Hobler and Christiaan Highsmith prosecuted the case.
Folsom Naval Reservist Is Sentenced After Pleading Guilty to Unauthorized Removal and Retention of Classified MaterialsRead the Press Release
SACRAMENTO, Calif. — Bryan H. Nishimura, 50, of Folsom, pleaded guilty today to unauthorized removal and retention of classified materials, United States Attorney Benjamin B. Wagner announced.
U.S. Magistrate Judge Kendall J. Newman immediately sentenced Nishimura to two years of probation, a $7,500 fine, and forfeiture of personal media containing classified materials. Nishimura was further ordered to surrender any currently held security clearance and to never again seek such a clearance.
According to court documents, Nishimura was a Naval reservist deployed in Afghanistan in 2007 and 2008. In his role as a Regional Engineer for the U.S. military in Afghanistan, Nishimura had access to classified briefings and digital records that could only be retained and viewed on authorized government computers. Nishimura, however, caused the materials to be downloaded and stored on his personal, unclassified electronic devices and storage media. He carried such classified materials on his unauthorized media when he traveled off-base in Afghanistan and, ultimately, carried those materials back to the United States at the end of his deployment. In the United States, Nishimura continued to maintain the information on unclassified systems in unauthorized locations, and copied the materials onto at least one additional unauthorized and unclassified system.
Nishimura’s actions came to light in early 2012, when he admitted to Naval personnel that he had handled classified materials inappropriately. Nishimura later admitted that, following his statement to Naval personnel, he destroyed a large quantity of classified materials he had maintained in his home. Despite that, when the Federal Bureau of Investigation searched Nishimura’s home in May 2012, agents recovered numerous classified materials in digital and hard copy forms. The investigation did not reveal evidence that Nishimura intended to distribute classified information to unauthorized personnel.
This case was the product of an investigation by the Naval Criminal Investigative Service (NCIS) and the Federal Bureau of Investigation. Assistant United States Attorney Jean M. Hobler prosecuted the case.
Stockton Man Sentenced to One and a Half Years in Prison for Trafficking in Counterfeit GoodsRead the Press Release
SACRAMENTO, Calif. — United States District Judge William B. Shubb sentenced Joe L. Regalado, 41, of Stockton, to one and one half years in prison for trafficking in counterfeit goods, United States Attorney Benjamin B. Wagner announced.
According to court documents, over a nearly two-year period, Regalado trafficked in goods bearing counterfeit trademarked insignia. When he was arrested in December 2011, Regalado was selling counterfeit college sports jerseys, Major League Baseball jerseys and hats, National Basketball Association jerseys, National Football League jerseys and caps, National Hockey League jerseys, and counterfeit clothing bearing trademarks from Chanel, Prada, Juicy Couture, Louis Vuitton, Christian Audigier, Polo, True Religion, Coach, Burberry, Gucci, and Nike. As part of his sentence, Regalado was ordered to pay over $111,000 in restitution to sports teams whose logos were on the goods that he was caught selling, and to forfeit ownership of two cars and a garage full of counterfeit goods that were recovered by the FBI when they searched his house.
This case was the product of an investigation by the Sacramento High Tech Crimes Task Force, which includes representatives from state and federal law enforcement agencies including the Sacramento County Sheriff’s Office and the Federal Bureau of Investigation. Assistant United States Attorney Matthew Morris prosecuted the case.
Kern County Man Sentenced to 5 Years in Prison for Cocaine SmugglingRead the Press Release
FRESNO, Calif. —Jimmy Gil, aka Joselin Jimelet Gil Sanchez, aka Joselin Gil, aka Gilberto Sanchez, 35, of Shafter, was sentenced today to five years in prison for conspiring with Jose Luis Montoya-Salazar, (Montoya), 42, of Mexico City, and Luis Ricardo Eslava-Corral (Eslava), 42, of Sinaloa, Mexico, to import, distribute, and possess with intent to distribute 38 kilograms, or about 84 pounds, of cocaine, United States Attorney Benjamin B. Wagner announced. In a separate civil proceeding, U.S. District Judge Lawrence J. O’Neill ordered the forfeiture of $3,104,661 in cash that agents seized during the investigation of the criminal case.
Gil’s sentence follows his guilty plea in May 2015. In pleading guilty, Gil admitted that he had conspired with Eslava, the driver of a tractor trailer containing cocaine smuggled into the United States from Mexico at the Otay Mesa Port of Entry, to a location in Bakersfield. After Gil took possession of the tractor trailer, he and Montoya began unloading 18 one-kilogram packages of cocaine from a hidden compartment in the underside of the trailer and placing the cocaine in Montoya’s vehicle. Gil and Montoya were arrested before they were able to unload 20 more kilograms of cocaine concealed in the trailer. Follow-up investigation resulted in the seizure of $3,104,661 in cash hidden in an asphalt roller at the residence of an associate of Gil. The seized cocaine has a street value of over $3 million.
“Through our joint enforcement efforts, we’ve dismantled a criminal organization that posed a serious public safety threat, as evidenced by the amount of cocaine seized,” said Michael Toms, resident agent in charge for Homeland Security Investigations (HSI) Bakersfield. “As this sentence demonstrates, HSI is working closely with its law enforcement partners to prevent these dangerous and addictive drugs from reaching our streets and ensure the perpetrators of such attempts are brought to justice.”
“This investigation began with a tremendous amount of inter-agency coordination and finished with good old fashioned police work. The forfeiture of $3.1 million has dealt a substantial blow to this criminal organization and these illicit proceeds will be put back into communities through local law enforcement efforts,” stated DEA Acting Special Agent in Charge Bruce C. Balzano.
Eslava and Montoya previously pleaded guilty. On July 20, 2015, Eslava was sentenced to two years and eight months in prison. Montoya is scheduled to be sentenced on September 21, 2015.
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), U.S. Drug Enforcement Administration, Southern Tri-County High Intensity Drug Trafficking Area (HIDTA) task force, Kern County Sheriff’s Office, Tulare County Sheriff’s Office, and Bakersfield Police Department. Assistant United States Attorney Karen Escobar prosecuted the criminal case against Gil. Assistant United States Attorney Kevin Khasigian handled the civil forfeiture proceeding.
Kern County Man Sentenced to 15 Years in Prison for Child Pornography OffensesRead the Press Release
FRESNO, Calif. — Thomas Bettis, 54, of Tehachapi, was sentenced today by United States District Judge Anthony W. Ishii to 15 years in prison for receiving and distributing child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, between January and March 2013, Bettis received and distributed more than 600 images and video files depicting minors engaged in sexually explicit conduct as attachments to email messages. The illicit files also involved the portrayal of sadistic, masochistic, and other depictions of violence, and included depictions of pre-pubescent minors. Bettis was charged with receiving and distributing child pornography on September 4, 2014, and pleaded guilty to this charge on January 12, 2015.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Brian W. Enos is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.