Eastern District of California
Press releases recorded for this federal judicial district.
Fresno Man Sentenced to 10 Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
FRESNO, Calif. — United States District Judge Lawrence J. O’Neill sentenced Stephen Stinson, 45, of Fresno, today to 10 years in prison for being a convicted felon in possession of a firearm, United States Attorney Benjamin B. Wagner announced.
According to court documents, on January 22, 2014, police officers stopped Stinson for driving while using a cellphone. The officers noticed a large blade protruding from under the driver’s seat and saw a knife on the passenger’s seat. Officers discovered that Stinson had no driver’s license, was on probation and had a warrant for his arrest. During a search of the car, officers found a sawed-off shot gun and ammunition. Stinson had two prior felony convictions and was prohibited from possessing a firearm.
“Every time we seize a single firearm from a convicted felon, we prevent impending violent acts from occurring in our neighborhoods,” stated ATF Acting Special Agent in Charge Eric D. Harden. “ATF and our partners will not surrender to those who are a threat to our communities and cannot lawfully possess a firearm.”
This case is a product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fresno Police Department. The case is part of Project Safe Neighborhoods, which is a joint initiative to combat gang and gun violence. Assistant U.S. Attorneys Kimberly Sanchez and Patrick R. Delahunty prosecuted the case.
Fresno Man Pleads Guilty to Sex Trafficking of a MinorRead the Press Release
FRESNO, Calif. —Tryvell Powell, 34, of Fresno, pleaded guilty today to sex trafficking of a minor, United States Attorney Benjamin B. Wagner announced.
According to the plea agreement, Powell communicated with a 16-year-old girl on Facebook and persuaded her to leave Modesto where she was living and travel to Fresno. She then engaged in sex acts with strangers at Powell’s request for his monetary benefit.
According to court documents, a relative of the girl reported seeing pictures of the teen in an online advertisement for prostitution. Fresno detectives used the advertisements to contact the girl and to arrest Powell.
This case is the product of an investigation by the Federal Bureau of Investigation and the Fresno Police Department. Assistant United States Attorney Michael Frye is prosecuting the case.
Powell is scheduled to be sentenced on October 19, 2015, in federal court in Fresno by United States District Court Judge Lawrence J. O’Neill. Powell faces a minimum of 10 years to life in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
California Army National Guard Member Pleads Guilty to Charges of Recruiting FraudRead the Press Release
FRESNO, Calif. — Leonardo Pesta, 47, of Mountain View, pleaded guilty today to one count of wire fraud stemming from a fraud scheme involving recruiting bonuses, United States Attorney Benjamin B. Wagner announced.
According to court documents, the United States Army contracted with Document and Packaging Broker Inc. (DOCUPAK) to administer the Guard Recruiting Assistance Program (G-RAP). Under G-RAP, members of the California National Guard served as Recruiting Assistants. If a Recruiting Assistant referred a potential Guard member to a recruiting office and that person ultimately enlisted, the Recruiting Assistant was eligible to receive monetary compensation disbursed by DOCUPAK.
Pesta served in the California National Guard as a recruiter. In that position, he had access to names of recruits who had not been referred by any Recruiting Assistant. Pesta pleaded guilty to taking part in a scheme to cause DOCUPAK to issue unearned recruiting compensation by falsely claiming that various enlistees had been referred to recruiting offices by the Recruiting Assistants that participated in the scheme with Pesta, when in fact they had not.
This case is the product of an ongoing investigation by the Army Criminal Investigative Command Major Procurement Fraud Unit, the Defense Criminal Investigative Service, and the Federal Bureau of Investigation. Assistant United States Attorney Michael G. Tierney is prosecuting the case.
Pesta is scheduled to be sentenced by United States District Court Judge Lawrence J. O’Neill on October 19, 2015. He 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.
Six other National Guard members were also indicted in May 2014 in Fresno and Sacramento. Brian Kaps, 40, of Chico, pleaded guilty on November 21, 2014 to one count of wire fraud. Sarah Nattress, 27, of Paradise, pleaded guilty on October 23, 2014, to one count of wire fraud. The charges against the rest of the defendants are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Stockton Oncologist Pays $736,000 to Resolve False Claims Act AllegationsRead the Press Release
SACRAMENTO, Calif. — A Stockton oncologist has paid the United States $736,000 to settle allegations that he improperly billed Medicare, Medicaid, and Tricare for certain chemotherapy drugs purchased from an unlicensed foreign pharmaceutical distributor, United States Attorney Benjamin B. Wagner announced today.
The United States alleged that, over a two-year period ending in May 2011, Dr. Neelesh Bangalore billed and received reimbursement from Medicare, Medicaid, and Tricare for such drugs in violation of the federal False Claims Act. Bangalore purchased chemotherapy drugs from Warwick Healthcare Solutions Inc., also known as Richards Pharma (Warwick), a former United Kingdom-based drug distributer that did not have a license to distribute drugs in the United States. Bangalore administered certain of these medications to his patients, billing several federal healthcare programs, including Medicare. One medication he purchased from Warwick was Altuzan, a drug not approved by the FDA. In addition, the FDA tested a batch of Altuzan that Bangalore had purchased from Warwick and determined that it was counterfeit and lacked the active ingredient bevacizumab.
“Investigating healthcare related fraud allegations is one of our office’s top priorities,” said U.S. Attorney Wagner. “Particularly in cases where Medicare and Medicaid beneficiaries receive compromised care or ineffective medication, these investigations serve a dual purpose of protecting the public and recovering federal funds.”
“Patients—especially those battling cancer and other life-threatening illnesses—should be able to trust that their physicians only use medicines approved by the FDA, medicines proven to be safe and effective,” said Special Agent in Charge Ivan Negroni of the U.S. Department of Health and Human Services Office of Inspector General. “Our agency will continue to pursue health care providers that ignore requirements designed to protect patient health and federal health care programs.”
“For drugs that enter the U.S. from outside the FDA-regulated distribution system, there is no guarantee that the drug is safe and effective for patients to use,” said Lisa L. Malinowski, Special Agent in Charge of the FDA Office of Criminal Investigations’ Los Angeles Field Office. “We will continue to work to protect the health of patients who rely on prescription drugs and to ensure the safety and effectiveness of those drugs.”
This case was investigated by the U.S. Department of Health and Human Services Office of Inspector General, the FDA’s Office of Criminal Investigations, the Defense Criminal Investigative Service, and the Defense Health Agency. Assistant United States Attorneys Vincente A. Tennerelli and Kurt A. Didier represented the United States in this matter. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Indictment Returned for Marijuana Cultivation on Chowchilla MountainRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Juan Pedro Jimenez, 39, of Ensenada, Mexico, charging him with conspiring to manufacture, distribute and possess with intent to distribute, manufacturing, and possessing with intent to distribute marijuana in connection with a large-scale cultivation operation in a national forest, United States Attorney Benjamin B. Wagner announced. Jimenez was also charged with damaging public land and natural resources as a result of the marijuana cultivation activities.
According to court documents, on July 8, 2015, Jimenez was found at the cultivation site on Chowchilla Mountain in the Sierra National Forest in Mariposa County. Agents removed 6,919 marijuana plants from the site and found fertilizer, trash, water lines, propane tanks, and other harmful material. The cultivation activities caused extensive damage to the land and natural resources. Native trees and plants were cut down and steep hillsides were terraced to plant the marijuana. Water was diverted from a nearby creek to irrigate the plants.
This case is the product of an investigation by the U.S. Forest Service and Mariposa County Sheriff’s Office. Assistant United States Attorney Karen Escobar is prosecuting the case.
Jimenez was ordered detained pretrial and is scheduled for arraignment on the indictment on July 24, 2015, in federal court in Fresno. If convicted of the drug offenses, he faces a mandatory minimum statutory penalty of five years and a maximum statutory penalty of 40 years in prison and a $5 million fine for each count. If convicted of the environmental crime, Jimenez faces 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 defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Rocklin Man Pleads Guilty to Child Pornography OffenseRead the Press Release
SACRAMENTO, Calif. — Paul Ross Pacini, 46, of Rocklin, pleaded guilty today to receipt of child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, an undercover investigation revealed that in June through August of 2013, Pacini used a peer-to-peer file-sharing network to share more than 300 files of pictures and videos depicting the sexual exploitation of children, including videos involving children under the age of 10. A search warrant executed at Pacini’s home revealed that his computers contained more than 2,500 images and more than 900 videos depicting the sexual abuse of children, and that at various times many of those videos were made available to others over the Internet through a file-sharing network.
This case is the product of an investigation by the Sacramento County Sheriff’s Department's Internet Crimes Against Children Task Force. Assistant United States Attorney André M. Espinosa is prosecuting the case.
Pacini is scheduled to be sentenced on October 7, 2015, by United States District Judge Kimberly J. Mueller. Pacini faces a possible sentence of five to 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Former Postal Inspector Pleads Guilty to Possession of Stolen Mail and Marijuana TraffickingRead the Press Release
SAN JOSE, Calif. — A supervisory postal inspector working at the San Jose Processing and Distribution Center pleaded guilty today to possession of stolen U.S. mail and possession with intent to distribute marijuana, United States Attorney Benjamin B. Wagner announced.
On June 26, 2014, following an investigation and the execution of a search warrant at his house and office, Quan Pham Howard, 53, of Saratoga, California, was arrested and charged with theft of mail.
According to his plea agreement, Howard admitted that between late 2010 and June 25, 2014, he unlawfully opened and stole United States mail containing , among other things, quantities of prescription drugs. Further, he admitted possessing a variety of items that had been stolen from the mail distribution center including: a gun scope, a silver bar, jewelry, coins, gift cards, a gun silencer, a Rolex watch and other items. Howard is also charged with possessing over eight kilograms of marijuana with the intent to distribute. During this period, to conceal his theft and trafficking, Howard falsified postal records and disabled a surveillance camera at the distribution center.
Howard also admitted that he attempted to obstruct justice when he became aware of the investigation. On July 2, 2014, Howard contacted a former USPS employee whom he had supervised and attempted to influence the employee’s testimony with instructions regarding what to remember about Howard's prior supervision. In addition, Howard repeatedly contacted one of his former supervisors at the San Jose Postal Inspection Service Office, attempting to get her to support his false explanation for his possession of stolen property.
U.S. Attorney Wagner stated: “When those who are supposed to enforce the law exploit it, they go beyond merely violating the law and damage the trust between law enforcement and the communities we are sworn to protect. We will continue our efforts to nurture that trust by working with our law enforcement partners to vigorously investigate and prosecute such cases.”
U.S. Postal Service Office of Inspector General, Special Inquiries Division, Area Special Agent in Charge Curtis Lembke stated: “This criminal behavior within the Postal Service is not tolerated. The overwhelming majority of Postal Service employees who serve the public are honest, hardworking, and trustworthy individuals who would never consider engaging in any type of criminal behavior.”
This case is the product of an investigation by the United States Postal Service Office of Inspector General. Assistant United States Attorney Michelle Rodriguez, of the Eastern District of California, is prosecuting the case. Because his role as a postal inspector involved Howard in the investigation of cases in the Northern District of California, the U.S. Attorney’s office for the Northern District was recused from this case, which is proceeding in the United States District Court in San Jose.
Howard is scheduled to be sentenced on November 18, 2015, by United States District Judge Lucy H. Koh. Howard faces a maximum statutory penalty of five years in prison and a $250,000 fine for each count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Nevada City Woman Pleads Guilty to Marijuana Cultivation and Structuring Currency Transactions on First Day of TrialRead the Press Release
SACRAMENTO, Calif. — Patricia Jane Albright, 64, of Nevada City, pleaded guilty on Monday to conspiring to manufacture marijuana, manufacturing marijuana, and structuring currency transactions to evade federal reporting requirements, United States Attorney Benjamin B. Wagner announced.
On September 18, 2014, Albright’s son and co-conspirator, Jordan Wirtz, pleaded guilty to federal firearms charges. On February 26, 2015, the Honorable Troy L. Nunley sentenced Wirtz to five years in prison.
According to court documents, between 2008 and September 2010, Albright and others worked together to manufacture marijuana on two properties she owned near Nevada City and Georgetown. Marijuana from Albright’s operation was regularly shipped out of state under fake names and addresses. At the time of her arrest on September 28, 2010, investigators found marijuana plants, cash, processed marijuana, and two firearms.
When Albright purchased the property near Georgetown in 2008 for growing marijuana, she structured 21 cash transactions at six different financial institutions over three days so she could avoid federal reporting requirements related to cash deposits.
Albright is scheduled to be sentenced by Judge Nunley on December 3, 2015. The plea agreement contemplates a sentence of five years and five months in prison. The actual sentence, however, will be determined at the discretion of the court at the hearing.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation; the U.S. Drug Enforcement Administration; the California Department of Justice; and the sheriff’s offices of Nevada County, Placer County, and El Dorado County. Assistant United States Attorney Michael M. Beckwith is prosecuting the case.
During the course of the investigation which involved the execution of 16 search warrants in three different counties, law enforcement seized over 4,100 marijuana plants, over 200 pounds of processed marijuana, and numerous firearms. A number of the defendants were armed at the time of their arrest, and several of the defendants had prior felony convictions for narcotics offenses. One defendant was arrested in a marijuana grow with a firearm while on pretrial release from an earlier arrest. He was facing charges for manufacturing marijuana in Southern California in 2009. Documents and items found at a number of the search locations show hundreds of thousands of dollars in financial transactions, and the interstate shipment of cash and narcotics.
Bakersfield Man Indicted for Laser Strikes on Police Helicopter and Possessing 7 BombsRead the Press Release
FRESNO, Calif. — Earlier today an indictment was unsealed charging Pablo Cesar Sahagun, 26, of Bakersfield, in connection with laser strikes of a police helicopter and possessing seven bombs, United States Attorney Benjamin B. Wagner announced. The indictment was returned by a federal grand jury on July 16, 2015.
Sahagun was charged with aiming the beam of a green laser pointer at Air-1, a Kern County Sheriff’s Office helicopter. According to court documents, the laser pointer was key‑activated and was labeled a Laser 301, a device which purports to have strong burning capabilities. Sahagun was also found to be in possession of seven CO2 cartridge or cricket bombs. Cricket bombs are improvised explosive devices which can kill or seriously injure people.
Reports of laser attacks have increased dramatically in recent years as powerful laser devices have become more affordable and widely available to the public. In 2014, the Federal Aviation Administration received 3,894 reports of incidents of laser strikes on aircraft. In the Eastern District of California, there were 150 reported incidents last year, with the majority in Bakersfield, Fresno, and Modesto. Lasers can incapacitate pilots, endangering their crew members, passengers and people on the ground.
This case being investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Kern County Sheriff’s Office, and Bakersfield Police Department. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
Sahagun is scheduled for an initial appearance on the indictment today before U.S. Magistrate Judge Jennifer L. Thurston in Bakersfield. He faces a prison term of five years and a fine of up to $250,000, if convicted of aiming the beam of a laser pointer at an aircraft. If convicted of the bomb charge, Sahagun faces an additional 10 years in prison and a fine of up to $10,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If you have information about a lasing incident, or see someone pointing a laser at an aircraft, call your local FBI field office or dial 911.
Three Appear in Federal Court on Firearms ChargesRead the Press Release
FRESNO, Calif. — Juan Valenzuela, 34, and Ernie Rodriguez, 39, both of Fresno, and Anthony Rodriguez, 32, of Modesto, appeared before U.S. District Judge Lawrence J. O’Neill today on federal firearms charges, United States Attorney Benjamin B. Wagner announced.
Valenzuela was sentenced to three years in prison for possessing a firearm after a conviction for a domestic violence misdemeanor. Judge O’Neill commented on the Valenzuela’s lengthy history of domestic violence offenses, and said that the he was lucky in this case that no one was harmed by the bullets discharged from his gun. 1:14-cr-131-LJO
Ernie Rodriguez, 39, pleaded guilty to being a felon in possession of a firearm. His sentencing is set for October 13, 2015. 1:15-cr-008-LJO
Anthony Rodriguez was sentenced to four years in prison for being a felon in possession of a firearm and ammunition. 1:15-cr-035-LJO
U.S. Attorney Wagner stated: “Any time a firearm is taken out of the hands of a criminal, our neighborhoods are safer. As seen in these cases, Project Safe Neighborhood brings together federal and local law enforcement to combat gun and gang crime. Increased federal prosecution seeks to incapacitate chronic violent offenders and communicates a credible deterrent threat to potential gun offenders.”
“ATF’s primary mission is to reduce violent crime and in doing so protect the citizens of our communities,” said Acting Special Agent in Charge, Eric D. Harden. “We will continue to aggressively pursue these repeat offenders with our law enforcement partners and remove dangerous weapons from their grasp and hold them accountable for their crimes.”
These cases resulted from investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Federal Bureau of Investigation, the Fresno Police Department, the Modesto Police Department, and the Mendota Police Department. The cases are part of Project Safe Neighborhoods, which is a joint initiative to combat gang and gun violence. Assistant U.S. Attorney Kimberly Sanchez is prosecuting Juan Valenzuela and Ernie Rodriguez. Assistant U.S. Attorney Vincenza Rabenn prosecuted Anthony Rodriguez.
Rodriguez faces up to 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.
Modesto Man Sentenced to 25 Years in Prison for Production of Child Pornography and Attempted Sex Trafficking of a MinorRead the Press Release
FRESNO, Calif. — Ricky Davis, 36, of Modesto was sentenced today to 25 years in prison by United States District Judge Anthony W. Ishii, United States Attorney Benjamin B. Wagner announced. On March 25, 2015, Davis was found guilty pursuant to a five-day jury trial on separate counts of production of child pornography, as well as the attempted sex trafficking of a minor.
According to evidence presented at trial, in September 2011 Davis invited a 13-year-old minor to his home for the ostensible purpose of giving her a tattoo. After her arrival, Davis instead took sexually explicit photographs of her and posted them online within an advertisement for prostitution. Davis also provided the minor’s contact information to someone responding to this advertisement. An analysis of digital evidence revealed the photographs to have been on Davis’s cellphone and computer, and metadata from the pictures established that they were taken from a cellphone matching the make and model of Davis’s phone.
U.S. Attorney Wagner stated: “Targeting children for sexual exploitation is disturbing and unacceptable. The U.S. Attorney’s office is committed to combating these crimes and guarding the safety and well-being of every child.”
This case was the product of an investigation by the Federal Bureau of Investigation, the Sacramento Police Department, and the California Highway Patrol, all members of the FBI’s Sacramento-based Child Exploitation Task Force, as well as the South San Francisco Police Department and California Department of Corrections and Rehabilitation. Assistant United States Attorneys Brian W. Enos and Alyson A. Berg 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.
Modesto Man Sentenced for 2 Schemes that Defrauded Investors of over $1 MillionRead the Press Release
FRESNO, Calif. — Xue Heu, 38, of Modesto, was sentenced today to five years and three months in prison, to be followed by three years of supervised release, for investment fraud schemes in Fresno and Texas, United States Attorney Benjamin B. Wagner announced.
United States District Judge Lawrence J. O’Neill also ordered Heu to pay $1,166,366 in restitution to victims of the two fraud schemes.
According to court documents, between August 2007 and October 2013, Heu solicited individuals to invest in real estate businesses that purchased and sold real estate. Heu claimed to be an officer of Liquid Assets & Land Investments Inc. and Capital Land Investments LLC. In furtherance of the scheme and to persuade the investors that the investment opportunities were legitimate, Heu gave investors fraudulent documents, such as forged and fictitious grant deeds, fraudulent HUD-1 settlement statements, and portfolio listings of properties he claimed he intended to purchase, including properties that had already been sold and were no longer available to purchase. In his plea agreement, Heu admitted to defrauding investors of approximately $412,896.
According to court documents, between October 1, 2013, and December 31, 2013, Heu and others executed a second scheme to defraud real estate investors. Heu, using the alias “Michael Chan,” purported to be a representative of the Troubled Asset Relief Program (TARP) and an authorized seller of property that had been foreclosed on by the United States government. Heu and a co-defendant lured investors into placing funds into escrow accounts established by another co-defendant and then converted the money to their own use. In his plea agreement, Heu admitted he was responsible for a loss to victims of $762,897. This case was originally charged in the Western District of Texas, San Antonio Division, and was transferred to the Eastern District of California for Heu’s guilty plea and sentencing.
These cases were the product of investigations by the Federal Bureau of Investigation in Modesto, California and San Antonio, Texas and the Stanislaus County District Attorney’s Office. Assistant United States Attorney Henry Z. Carbajal III prosecuted the cases.
Modesto Man Pleads Guilty in Multistate Conspiracy to Sell Counterfeit Erectile-Dysfunction DrugsRead the Press Release
FRESNO, Calif. —Anthony Pollino, 37, of Modesto, pleaded guilty today to one count of trafficking in counterfeit goods, United States Attorney Benjamin B. Wagner announced.
According to court documents, Pollino, along with several co-defendants, 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.” Pollino admitted that the value of the counterfeit products attributable to him as over $350,000.
This case is 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.
Pollino is in custody and is scheduled to be sentenced by Senior United States District Judge Anthony W. Ishii on October 5, 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.
Los Angeles County Man Arrested for Participation in $2.5 Million Unemployment Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Kyn K. Naope, 39, of Sherman Oaks, was arrested today for participating in an unemployment fraud scheme with losses of over $2.5 million United States Attorney Benjamin B. Wagner announced.
A six-count indictment, returned by a federal grand jury earlier this month, alleges that between January 2008 and March 2011, Naope and others involved in the scheme registered fictitious employers with the California Employment Development Department (EDD) and then recruited other individuals to pose as laid-off employees of those companies. These fake employees would then file for and collect unemployment insurance benefits based on the wages reported to EDD by the fictitious employers.
This is the third indictment brought as part of this investigation. A separately pending 20-count indictment charged Kenneth Parks, Michael Taylor Sr., and three others with involvement in the fraud scheme. Parks pleaded guilty and was sentenced to five years in prison, while Taylor pleaded guilty and is awaiting sentencing. (2:12‑cr-375 TLN). Another indictment charged Donye Marcel Mitchell Sr. for his involvement in the fraud scheme, and he was sentenced to four years in prison (2:11-cr-085 GEB).
These cases are the product of an investigation by the United States Department of Labor, Office of Inspector General and California EDD – Criminal Investigations Division. Assistant United States Attorney Jared C. Dolan is prosecuting the case.
If convicted, Naope 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.
Federal Inmate Sentenced for Synthetic Drug Smuggling SchemeRead the Press Release
FRESNO, Calif. —Tracy McArthur Harris, aka Trey Harris, 42, a federal inmate, was sentenced today to one year in prison to be served consecutively to his current 11-year sentence for conspiring to smuggle half an ounce of synthetic cannabinoids into Taft Correctional Institution, United States Attorney Benjamin B. Wagner announced.
Harris’s sentence follows his guilty plea in May. According to court documents, from December 2012, through April 2013, while incarcerated at Taft Correctional Institution on a previous drug trafficking conviction, Trey Harris conspired to obtain smokable synthetic cannabinoids from his brother James Steven Harris, aka Steve Harris, 44, of Loma Linda, during visits. Some of the drugs, which were seized by prison authorities during the conspiracy, tested positive for XLR11, then a controlled substance analogue. In May 2013, DEA classified XLR11 as a Schedule I controlled substance following reports by the Centers for Disease Control that XLR11 not only produces hallucinogenic effects but causes kidney damage.
“Our office fully supports investigative efforts to address the continuing problem of inmate drug use and drug smuggling in Federal Bureau of Prisons (BOP) institutions,” United States Attorney Wagner said. “The harm of drugs in a prison setting cannot be ignored. Drugs not only interfere with prison officials’ ability to provide a safe and secure environment for inmates and staff but inhibit the rehabilitative potential of inmates with drug problems.”
Steve Harris is scheduled for a status conference on July 27 in federal court in Fresno. The charges against him are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Federal Bureau of Investigation and Taft Correctional Institution Special Investigative Supervisor’s Office. Assistant United States Attorney Karen A. Escobar is prosecuting the case.
Lodi Man Sentenced to 9 Years in Prison for Methamphetamine TraffickingRead the Press Release
SACRAMENTO, Calif. — Jose Millan, 51, of Lodi, was sentenced today by United States District Judge Garland E. Burrell Jr. to nine years in prison for possessing almost 10 pounds of methamphetamine with the intent to distribute it, United States Attorney Benjamin B. Wagner announced.
According to court documents, in May of 2014, Millan told a confidential informant that he knew people who received regularly scheduled deliveries of methamphetamine from Mexico, and that multiple pounds of methamphetamine were being stored in Lodi. Later that month, officers saw Millan and a co-defendant walk into Millan’s garage and depart shortly afterward carrying an ice chest, which they loaded into the trunk of a car. They drove the car to the parking lot of a restaurant in Lodi, where the confidential informant had arranged to meet Millan. Officers arrested Millan and the co-defendant without incident. In the ice chest in Millan’s car, officers found 4.4 kilograms of methamphetamine.
“Today’s prison sentence is a reminder of the serious consequences drug traffickers face for trying to bring illicit drugs into our communities,” said Ray Greenlee, assistant special agent in charge for HSI Sacramento. “ICE remains committed to dismantling the international drug trade while ensuring that those who are involved don’t benefit financially.”
This case was the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Lodi Police Department. Special Assistant United States Attorney Josh F. Sigal prosecuted the case.
Millan remains in federal custody. His co-defendant, Miguel Rodriguez, is scheduled to be sentenced on July 31, 2015, in Sacramento before Judge Burrell.
Bakersfield Man Charged with Manufacturing Hashish Oil in His HomeRead the Press Release
BAKERSFIELD, Calif. — Following the arrest earlier today of August Davison, 26, of Bakersfield, an indictment has been unsealed charging him with maintaining a drug-involved premises, conspiracy, and manufacturing and distributing marijuana in the form of hashish oil, United States Attorney Benjamin B. Wagner announced.
According to court documents, from approximately January 2014 to April 2015, Davison manufactured hashish oil, a concentrated form of marijuana, in a tetrahydrocannabinol (THC) extraction laboratory at his residence using a potentially combustible method. Separately, at a local Bakersfield business, Davison grew marijuana plants from which he manufactured some of the hashish oil that he made. Davison distributed the hashish oil in Kern County.
This case is the product of an investigation by the Drug Enforcement Administration, the Bakersfield Police Department, the Kern County Sheriff’s Office and personnel from the DEA’s Western Regional Lab. Assistant United States Attorney Angela Scott is prosecuting the case.
If convicted, Davison faces a maximum statutory penalty of 20 years in prison and a $500,000 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.
THC extraction laboratories are a public safety hazard and have resulted in numerous explosions and injuries. According to the California Drug Endangered Children Training and Advocacy Center (DEC-TAC), from December 2010 until April 6, 2015, 441 THC extraction laboratories were located in California; 291 in 2014 and 53 during the first three months of 2015. DEC-TAC reports children were present at 72 THC extractions laboratories found during this 4.5-year period, resulting in the injury of 12 and the death of three children. Further, during this same time frame, DEC-TAC reports 140 adults were injured and 41 adults died as a result of THC extraction laboratory explosions.
Sacramento Resident Charged with Credit Card Fraud and Identity TheftRead the Press Release
SACRAMENTO, Calif. — On Wednesday, a federal grand jury returned an indictment against Abdul Mannan, 32, of Sacramento, charging him with four counts of bank fraud and one count of aggravated identity theft, United States Attorney Benjamin B. Wagner announced.
According to court documents, Mannan allegedly used stolen identity information of others to obtain credit cards, and used them to obtain cash, goods and services. On July 1, 2015, federal agents executed a search warrant at his residence and recovered evidence that Mannan possessed personal and financial information for over 25 different named victims and more than 25 different credit card accounts. Mannan's alleged conduct has caused a reported loss to financial institutions of over $70,000. Mannan obtained access to lines of credit exceeding $500,000.
This case is the product of an investigation of the United States Postal Inspection Service and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), with the assistance of the Sacramento Police Department. Assistant United States Attorney Michelle Rodriguez is prosecuting the case.
If convicted, Mannan faces up to 30 years in prison for each bank fraud charge and two consecutive years in prison for aggravated identity theft. 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.
Merced County Traffic Stop Leads to Indictment for Interstate Transportation of over 40 Pounds of CocaineRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Martha Patricia Pio, 37, of Tacoma, Washington, charging her with conspiracy to distribute and to possess with intent to distribute cocaine and possession with the intent to distribute cocaine, United States Attorney Benjamin B. Wagner announced.
According to court documents, on July 1, 2015, Pio was stopped by a California Highway Patrol officer while driving northbound on Highway 99. During a subsequent search of her vehicle, officers located a hidden compartment containing 17‑brick‑shaped packages of cocaine weighing a total of approximately 18.5 kilograms, or about 40.7 pounds.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the California Highway Patrol. Assistant United States Attorney Michael Frye is prosecuting the case.
If convicted, Pio faces a maximum statutory penalty of 40 years in prison and a $5 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Foreign National Indicted for Passport Fraud and Use of False Social Security Number to Obtain Unemployment BenefitsRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Marco Antonio Lara-Gomez, 27, of Suisun City, charging him with making a false statement in an application for a U.S. passport and use of a false Social Security number, United States Attorney Benjamin B. Wagner announced.
According to court documents, Lara-Gomez is a Mexican national who fraudulently applied for a U.S. passport in 2007, using an identity theft victim’s name and birth certificate in connection with the application. Lara-Gomez received a passport and used it to travel to and from Mexico. Additionally, Lara-Gomez used the same victim’s identity, including his social security number, to apply for, and receive unemployment insurance benefits between 2010 and 2014.
This case is the product of an investigation by the U.S. Department of State’s Diplomatic Security Service and California’s Employment Development Department, with Assistance from the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney Nirav Desai is prosecuting the case.
If convicted, Lara-Gomez faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Final Defendant Sentenced to over 3 Years in Prison for Role in Husband’s Massive Foreclosure Rescue ScamRead the Press Release
SACRAMENTO, Calif. — Tamara Tikal, 45, of Rio Vista, was sentenced today by United States District Judge Troy L. Nunley to three years and nine months in prison for her conviction for conspiring to commit mail fraud in relation to a foreclosure rescue scam, United States Attorney Benjamin B. Wagner announced. Tamara Tikal was also ordered to pay $3,671,000 in restitution to victims of the offense.
Tamara Tikal’s husband Alan Tikal was convicted following a bench trial and sentenced to 24 years in prison. Tamara Tikal pleaded guilty to the conspiracy in August 2014, as did co-defendant Ray Kornfeld, who was sentenced to five years in prison.
According to her plea agreement, between January 2010 and August 2013, Alan Tikal was the principal behind a business known as KATN, which targeted distressed homeowners experiencing difficulties making their existing monthly mortgage payments. Many of the victims did not speak English. Alan Tikal promised to reduce their outstanding mortgage debt by 75 percent, falsely claiming he was a registered private banker with access to an enormous line of credit and the ability to pay off homeowners’ mortgage debts in full. Homeowners were told that in return for various fees and payments, their existing loan obligations would be extinguished, and the homeowners would then owe new loans to Tikal in an amount equaling 25 percent of their original obligation. In reliance upon these misrepresentations, many of these homeowners stopped making payments on their existing mortgage loans and lost their homes to foreclosure as a result.
Tamara Tikal filled a variety of roles in the business, including paying the salaries of various employees, serving as a notary for various documents utilized in furtherance of the scheme, and opening and maintaining post-office boxes and bank accounts that received homeowner payments. She also communicated with individual homeowners, assuring them of the legitimacy of the program.
In fact, the Tikals never made any payments to financial institutions on behalf of homeowners in satisfaction of their pre-existing mortgage debt obligations; the money for the purported “loan” payments were simply spent by the Tikals and their associates for personal use; and there was not a single instance in which a homeowner’s debt was paid, forgiven or otherwise extinguished as a result of the mortgage relief program. In all, more than 1,000 homeowners in California and other states were convinced to participate in the program. As a result of their participation, many homeowners became delinquent on their loans and ultimately had their homes foreclosed upon. Those homeowners paid more than $5,800,000 in fees and monthly payments into the program. Of that, more than $2,500,000 was paid into accounts controlled by the Tikals.
This case was a joint prosecution by the United States Attorney’s Office for the Eastern District of California and the California Attorney General’s Office. It is the product of extensive investigation by the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), Internal Revenue Service - Criminal Investigation, the California Department of Justice, and the Stanislaus County District Attorney’s Office. Assistant United States Attorney Philip Ferrari and California Deputy Attorney General Maggy Krell prosecuted the case.
Guilty Verdicts on All Counts in Mortgage Fraud Scheme for 4 Sacramento Area ResidentsRead the Press Release
SACRAMENTO, Calif. — Today, after a three-week jury trial, a federal jury found Olga Palamarchuk, 45, of Rancho Cordova; Pyotr Bondaruk, 44, of Sacramento; Vera Zhiry, 35, of Sacramento; and Peter Kuzmenko, 37, of West Sacramento, guilty of conspiracy to commit mail fraud, related to a mortgage fraud conspiracy. Palamarchuk and Bondaruk were also found guilty of making false statements to a financial institution and money laundering. Zhiry was also found guilty of money laundering.
According to evidence presented at trial, Palamarchuk, a loan officer at Capital Mortgage Lending Inc., recruited Bondaruk to purchase two houses using 100 percent financing and to refinance and obtain a home equity line of credit on one of the houses. In order to qualify for the loans, Palamarchuk and Bondaruk submitted fraudulent loan applications to lenders, falsely stating Bondaruk’s employment, income, assets, and intent to occupy the homes as his primary residence.
In addition, the defendants fraudulently inflated the value of the properties and diverted the excess funds to themselves. For example, Peter Kuzmenko received $32,378 in seller’s proceeds for landscaping and pool work his company Pete’s Pool Service purportedly performed on a house that didn’t have a pool. Similarly, Zhiry received $100,000 to pay off a purported debt owed by the sellers that the sellers denied existed, and Zhiry provided $40,000 of that money back to Olga Palamarchuk.
In February, Peter Kuzmenko was found guilty in a separate mortgage fraud scheme in this district. (2:11-cr-210-JAM) He is currently in custody.
This case is the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant United States Attorneys Lee S. Bickley and Heiko P. Coppola are prosecuting the case.
The defendants’ sentencing is set for October 1, 2015, before United States District Judge Troy L. Nunley. The defendants face a maximum statutory penalty of 30 years in prison for conspiracy to commit mail fraud and making false statements to a financial institution, 10 years in prison for money laundering, 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.
Two Chiropractors Arrested for Roles in Health Care Fraud Scheme Connected to Clinics in Bakersfield, Visalia and FresnoRead the Press Release
FRESNO, Calif. — Following arrests made earlier today, a federal indictment was unsealed charging three defendants with conspiracy to commit health care fraud and 15 counts of health care fraud, United States Attorney Benjamin B. Wagner announced.
Chiropractor Bahar Gharib-Danesh, 38, of Woodland Hills, was arrested in Los Angeles; Chiropractor Na Young Eoh, 41, of Bakersfield, was arrested in Bakersfield; and clinical psychologist John Terrence, 72, of Marina Del Rey, is expected to voluntarily appear before the U.S. District Court in Fresno within the next 30 days.
“Identifying and prosecuting fraud in the provision of health care services is a priority for this office,” said U.S. Attorney Wagner. “We will continue to work with our federal and state partners in pursuing dishonest health care providers who plunder public and private health care insurance plans for their own gain.”
According to the indictment returned on July 2, 2015, Gharib-Danesh was a chiropractor and the manager of Pain Relief Health Centers (PRHC). PRHC was headquartered in Los Angeles, and had clinics in Bakersfield, Visalia and Fresno, as well as in Los Angeles County. Eoh was also a chiropractor, and was the treating physician for PRHC’s Kern County workers’ compensation claims. Terrence was a clinical psychologist who saw patients from the Bakersfield clinic.
According to the indictment, PRHC recruited patients who were workers claiming to have an injury. In treating the patients, Gharib-Danesh instructed her staff to add as many injured body parts for treatment as possible to generate higher billings. The treatment plan generally included shock wave therapy, electro stimulation therapy, myo-facial release/massage, physical therapy, chiropractic manipulation, compound creams, and psychological evaluation. Nearly every patient was scheduled for the same treatments, and the maximum amount of treatments allowed by law was generally billed to the insurance company. Eoh operated out of the Bakersfield Clinic, the Visalia Clinic, and the Fresno Clinic and would sign the treatment plans and referral forms.
If the claim of injury was denied by the insurance company, a lien would be filed, and the claims would either be litigated before the California Workers’ Compensation Appeals Board or be settled by negotiations through the parties. Lien settlements for less than the full amount of the claim were acceptable because of the high volume of patients recruited and by the large amount of medical fees generated.
The indictment further alleges that Gharib-Danesh directed Eoh to refer all patients who came into the clinic to Terrence for a psychological evaluation, regardless of the injury the patient reported. Terrence submitted bills and reports for each patient that were virtually identical. He also allegedly fraudulently billed for patients at a rate higher than legally allowed. According to the indictment, Terrence provided each patient with approximately 20.8 hours of psychological evaluations in a single day. On one day, Terrence billed a total of 291.2 hours for treating 14 patients. In one period of two weeks, Terrence billed over a thousand hours treating patients and writing reports. Between 2005 and 2012, Terrence submitted claims for psychological services in workers’ compensation cases totaling in excess of $5.6 million.
This case is the product of an investigation by the Federal Bureau of Investigation, the California Department of Insurance, and the Kern County District Attorney’s Office. Assistant United States Attorneys Mark J. McKeon and Patrick R. Delahunty are prosecuting the case.
If convicted, each defendant faces a maximum statutory penalty of 20 years in prison and a $250,000 fine on each count of the indictment. 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.
Redding Man Pleads Guilty to Falsely Certifying More than 570 Oxygen Cylinders for Reuse, Including Reuse in AircraftRead the Press Release
SACRAMENTO, Calif. — Danniel A. Hoose, 49, of Redding, pleaded guilty today to one count of falsely certifying more than 570 oxygen cylinders for reuse, including reuse in aircraft, United States Attorney Benjamin B. Wagner announced.
According to court documents, Hoose owned and operated Shasta Fire Equipment Inc. (Shasta) in Redding and held a Department of Transportation (DOT)-issued permit to test oxygen and other gas-containing cylinders and to certify those cylinders for reuse for various purposes, including in aircraft. Acting on an anonymous complaint, investigators discovered that between March 2013 and June 2013, Hoose was personally responsible for performing all cylinder tests at Shasta, even though Hoose’s DOT certification to perform such tests had expired nearly a year earlier. Investigators also found that Shasta’s re-qualification equipment was in disrepair, and that Shasta’s test procedures, test accuracy, and test records failed to satisfy regulatory requirements.
According to documents filed in federal court today, Hoose admitted that he falsely certified more than 570 cylinders for reuse after conducting incomplete or, in some cases, no tests on those cylinders. Hoose also admitted that approximately 58 oxygen cylinders that he improperly tested or did not test were returned to service and installed in aircraft.
All of the cylinders were recovered and re-tested during the investigation.
This case is the product of an investigation by the U.S. Department of Transportation, Office of Inspector General. Assistant United States Attorney André M. Espinosa is prosecuting the case.
Hoose is scheduled to appear before U.S. District Judge Troy L. Nunley on September 10, 2015, for sentencing. The maximum statutory penalty for a making and using a materially false writing concerning an aircraft part, which relates to the aviation quality of a part installed in an aircraft, is 15 years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Jury Finds Sacramento Area Drug Trafficker Guilty on All CountsRead the Press Release
SACRAMENTO, Calif. — Today, after a five-day trial, a federal jury found Isreal “Puck” Washington, 41, of Sacramento, guilty of all 10 counts in the indictment for trafficking heroin, cocaine, cocaine base, and methamphetamine, United States Attorney Benjamin B. Wagner announced.
“Under the Smart on Crime initiative, the U.S. Department of Justice has refocused its narcotics prosecution efforts against the most significant and dangerous offenders.” U.S. Attorney Wagner stated. “Washington is one of those persons. This marks the end of his drug empire.”
This case is the product of an investigation by the Drug Enforcement Administration, the Sacramento County Sheriff’s Office, the Sacramento Police Department, the Vallejo Police Department, and the Sacramento County District Attorney’s Office.
According to court documents and evidence presented at trial, in 2010, Washington distributed large amounts of cocaine base, cocaine, and heroin in the Sacramento area. Washington used various businesses as a front to conceal and disguise his extensive drug trafficking and operated a large “crew” of gang members as his drug distribution organization. During an investigation in 2010 and 2011, one of Washington’s businesses, Wet Ways Auto Body and Paint Shop, was identified as a place where Washington and his associates conducted drug deals.
In 2012, an undercover operative bought heroin and methamphetamine from Washington’s organization. The drug traffickers operating under Washington included co-defendants Deyonte Spears, 27, of Oakland, and Sacramento residents Tyrone Weathersby, 47; Anthony Sanchez, 31; and Myron Meadows, 44. On May 21, 2013, the DEA served search warrants at two Sacramento-area stash pads controlled by Washington. Agents seized a stolen firearm and more than three pounds of heroin at stash pads maintained by the group.
Charges are pending in a separate indictment against Washington that stems from a 2011 homicide investigation. When deputies executed a search warrant at Washington’s residence, they discovered three semi-automatic pistols, including one with a high-capacity magazine. The indictment alleges that Washington is prohibited from possessing firearms because of four prior felony convictions for drug trafficking and assault with a deadly weapon. A status conference for that case will be set in the near future. (Docket # 2:13-cr-207 MCE)
Washington is scheduled to be sentenced on October 1, 2015, by United States District Judge Morrison C. England Jr. Washington’s co-defendants have all previously pleaded guilty. Co‑defendant Spears is scheduled to be sentenced on July 16, 2015; co‑defendant Weathersby was sentenced to 18 months in prison on October 24, 2014; co‑defendant Sanchez is scheduled to be sentenced on September 10, 2015, and co‑defendant Meadows is scheduled to be sentenced on August 13, 2015. Because of his criminal history, Washington faces a mandatory minimum sentence of 20 years in prison on each of counts two and eight. On the remaining counts, Washington faces maximum statutory penalties of up to life in prison and statutory mandatory minimum sentences of 10 years. the other defendants also face sentences of at least 10 years in prison on the counts to which they have pleaded guilty. 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 part of an Organized Crime Drug Enforcement Task Force (OCDETF) program that 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.
When prosecuted in federal court, drug traffickers typically receive much harsher sentences. In addition to the longer sentences imposed, unlike state court prisoners who are released early on parole, there is no early release on parole in the federal system.
Central Valley Drug Trafficking Group IndictedRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 22-count indictment Thursday against 13 defendants from Sacramento, Delano (Kern Co.) and Phoenix, Arizona, charging them with illegally trafficking large amounts of methamphetamine, heroin, cocaine, and marijuana, United States Attorney Benjamin B. Wagner announced.
The defendants named in the indictment are:
Jose Manuel Valdez Torres, 39, fugitive, of Delano/Phoenix;
Roberto Gomez Jr., 25, of Antelope;
Leonel Valdez Ayon, aka Leonel Valdez Gonzalez, 27, of Delano;
Leobardo Martinez-Carranza, 22, of Delano;
Edgar Eduardo Herrera, 21, fugitive, of Delano;
Enrique Alonso Valdez Yanez, 38, fugitive, of Mexico;
Jason Duane Rogers, 43, of Citrus Heights;
Shannon Anthony Armstrong, 40, of El Dorado Hills;
Bradley Gene Ward, 36, of Carmichael;
David Andrews Uhrig, 44, of Orangevale;
William James Welch, 53, of Citrus Heights;
Michael William McGibbon, 39, of Citrus Heights, and
Jesus Hunberto Zurita Sicairos, 26, of Phoenix, Arizona.According to court documents, an investigation indicated that Valdez Torres was arranging to smuggle multi-kilogram quantities of methamphetamine, heroin, and cocaine from Mexico into the United States. Once here, the drugs were stored at stash houses in Delano, Sacramento, and Phoenix. The drugs were then sold in ounce and pound quantities to various distributors. On June 24-26, 2015, in a coordinated law enforcement operation, search warrants for 11 residences were executed (three in Delano, eight in the Sacramento area, and one in Phoenix) and 10 individuals were arrested. Over 50 pounds of methamphetamine, a kilogram of heroin, smaller amounts of cocaine and marijuana, and over $275,000 in cash were seized. Numerous firearms were also seized. Gomez, Ward and Welch are each charged with illegal possession of firearms.
This case is the product of an investigation by the U.S. Drug Enforcement Administration Kern County Sheriff’s Office, the Central Valley HIDTA, the Sacramento Sheriff’s Office, the Folsom Police Department, the Citrus Heights Police Department the Arizona HIDTA Initiative, the Maricopa County Drug Suppression Task Force, the Maricopa County Sheriff's Office, the police departments of Tempe, Phoenix, Surprise, and Buckeye, the US Border Patrol, the Phoenix DO Enforcement Group, and the Maricopa County Sheriff's Office Tactical Operations Unit. Assistant United States Attorney Christopher Highsmith is prosecuting the case.
All defendants are named in the first count of the indictment which charges conspiracy to distribute, and to possess with the intent to distribute, methamphetamine, heroin, and cocaine. If convicted on this count, they each face a statutory maximum penalty of life in prison and a $5 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was investigated and prosecuted under Organized Crime Drug Enforcement Task Force (OCDETF) Program. The OCDETF Program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Prison Tax Fraud Ringleader Sentenced to 7 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — Edwin Ludwig IV, 34, currently an inmate in an Oklahoma state prison, was sentenced today to seven years in prison for conspiring to defraud the United States and for filing false claims for federal tax refunds, United States Attorney Benjamin B. Wagner announced. Ludwig was ordered to pay over $219,000 in restitution.
According to court documents, beginning in March 2011, Ludwig and three fellow inmates in the California Correctional Center in Susanville obtained personal identification information of other inmates at the correctional center. Ludwig then provided the information to co-defendants on the outside who prepared and filed false income tax returns with the Internal Revenue Service, claiming refunds to which the inmates were not entitled. False tax returns also were filed in some of the defendants’ own names. The defendants caused the false refund checks to be deposited to various bank accounts they controlled. According to the indictment, the investigation into the conspiracy began on January 11, 2012, when a correctional officer found some records behind Ludwig’s personal locker.
According to court documents, the refunds were used for personal expenditures, and included the purchase of prepaid debit cards, and adding money to inmates’ commissary accounts. At sentencing, Ludwig stated that some of the proceeds had been used to purchase drugs. In all, the conspiracy resulted in at least 247 false claims for income tax returns in tax years 2008 through 2011. Although the IRS stopped some of the refunds, approximately 138 fraudulent refunds totaling approximately $219,984 were issued.
Charges against six co-defendants are pending. A status conference for them is scheduled for September 2, 2015. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation, the Federal Bureau of Investigation, and the Investigative Service Unit at the California Correctional Center. Assistant United States Attorney Sherry D. Hartel Haus is prosecuting the case.
Federal and Local Law Enforcement Execute Search Warrants at Large Scale Commercial Marijuana Cultivation Facilities on Tribal LandsRead the Press Release
SACRAMENTO, Calif. — Earlier today, special agents with the Bureau of Indian Affairs (BIA) and the Drug Enforcement Administration (DEA), assisted by other federal and state agencies and the Modoc County Sheriff’s Office, conducted a search of two large-scale marijuana cultivation facilities located on federally recognized tribal lands at the Alturas Indian Rancheria and the XL Ranch in Modoc County, United States Attorney Benjamin B. Wagner announced. At both sites, law enforcement seized a total of at least 12,000 marijuana plants and over 100 pounds of processed marijuana. Other than contraband marijuana and items of evidentiary value, no tribal property was seized, and no federal charges are pending.
The search warrants are part of an ongoing investigation relating to the financing and management of the commercial marijuana-cultivation projects. The search warrant affidavits were unsealed today. While it is generally the policy of the U.S. Attorney’s Office to decline commenting upon ongoing investigations, exceptions are sometimes made when a matter has received substantial publicity and there is a need to inform the community regarding law enforcement actions taken in furtherance of particular public interests. The marijuana grows in question have received substantial attention in Modoc County, as has the U.S. Department of Justice’s guidance relating to marijuana cultivation on tribal lands.
The cultivation facility at the Alturas Indian Rancheria was located within the tribe’s former Event Center, within approximately 100 yards of the tribe’s publicly operated gaming facility, the Desert Rose Casino. The facility on the XL Ranch was immediately adjacent to Highway 395 and the banks of the Pit River, and it consisted of 40 newly constructed greenhouse structures, each of which was capable of accommodating approximately 1,000 marijuana plants, and an additional gable-roofed structure that boosted the square footage of roof-covered structures by another 50 percent. Both of the grow operations, which appear to have been operating in conjunction with each other, were well in excess of the locally enacted marijuana cultivation limits applicable to county land. The volume of marijuana that the XL facility alone was capable of producing, estimated at approximately 40,000-60,000 plants, far exceeds any prior known commercial marijuana grow operation anywhere within the 34-county Eastern District. According to tribal representatives, all of the marijuana cultivated at both facilities was intended to be distributed off tribal lands at various unidentified locations. As indicated in the search warrant affidavits, the investigation to date indicates both operations may have been financed by a third-party foreign national.
The United States Attorney’s Office follows Department of Justice guidelines in exercising its prosecutorial discretion and evaluating the need for investigative and enforcement action with respect to potential violations of federal law. The investigation of the cultivation facilities searched today indicates that both are commercial marijuana cultivation projects operated with the intent to transport large quantities of marijuana off tribal lands for distribution at various locations yet to be identified by the tribes. These facts raise multiple federal enforcement concerns, including the diversion of marijuana to places where it is not authorized and potential threats to public safety, both of which are listed priorities in Department of Justice guidelines. These concerns are only heightened when the activity occurring off tribal lands is not subject to effective state or local regulation.
Consistent with Department of Justice guidelines and the federal government’s trust relationship with recognized tribes, the U.S. Attorney’s Office consulted with members and representatives of both tribes on multiple occasions before today’s action. The U.S. Attorney’s Office reminded the tribes that the cultivation of marijuana is illegal under federal law and that anyone engaging in such activity did so at the risk of enforcement action. The U.S. Attorney’s Office also expressed concern that large-scale commercial marijuana grows on tribal lands have the potential to introduce quantities of marijuana in a manner that violates federal law, is not consistent with California’s Compassionate Use Act, and undermines locally enacted marijuana regulations. The U.S. Attorney’s Office stated that this potential was a concern for local law enforcement throughout the Eastern District and potentially warranted federal action. search warrant (1.63 MB)
Sacramento Man Sentenced to 5 Years in Prison for Receiving Child PornographyRead the Press Release
SACRAMENTO, Calif. — Humberto Lozano III, 27, 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. Lozano was ordered to begin serving his sentence on September 2, 2015. On release, he will be required to register as a sex offender.
According to court documents, in March 2013, America Online shut down Lozano’s email account because it had been used to distribute child pornography. AOL reported the account to law enforcement. When law enforcement obtained a search warrant for the email account, a total of 1360 images and 21 videos of child pornography were found. After his account was shut down, Lozano opened an new email account, this time at Yahoo!. He used that account to solicit images of child pornography. Between March 11, 2013, and July 1, 2013, approximately 1,300 images and 30 videos of child pornography were received. Investigators recovered a hard drive in Lozano’s possession and applied computer forensic tools to recover 4,000 deleted images of child pornography and child erotica.
According to the plea agreement, a child was rescued as a result of this investigation. One of the 4,000 deleted images still contained location data. It was of a child subject to sexual abuse in the Netherlands. That information was passed to Dutch law enforcement, who used it to find the child and rescue her from ongoing abuse.
In sentencing, Judge Mueller stated: “They are real victims even if there is no physical contact. There is ongoing trauma by virtue of knowing that the images are out there.”
This case was the product of FBI Child Exploitation Task Force/Innocent Images National Initiative in partnership with the Sacramento Sheriff's Office Internet Crimes Against Children Task Force. Assistant United States Attorney Matthew D. Segal 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.
Modesto Man Pleads Guilty to Stealing More Than $316,000 of Government Property from the Tracy DLA DepotRead the Press Release
SACRAMENTO, Calif. — Eric M. Shaffer, 42, of Modesto, pleaded guilty Tuesday to three counts of theft of government property for taking Department of Defense property worth more than $316,000, United States Attorney Benjamin B. Wagner announced.
Shaffer was an employee at the Department of Defense (DoD) Logistics Agency, San Joaquin Distribution Center, in Tracy, (Tracy DLA Depot). Shaffer regularly came into contact with new goods delivered by venders to the DoD and the United States General Services Administration that were stored at the Tracy DLA Depot before being shipped to military bases in the Pacific Ocean region and elsewhere.
According to court documents, between February 27, 2011, and January 3, 2015, Shaffer sold more than 620 items of stolen government property through approximately 325 auctions on a popular online auction website. He also completed more than 40 private sales of stolen government property to customers who paid Shaffer via an online payment system. Shaffer’s scheme generated approximately $238,000 in illicit revenue. The approximate replacement value of the property exceeds $316,000. Among other items, Shaffer admitted to stealing a GE Video Borescope kit, valued at $10,674; three Cisco TelePresence 8-inch LCD Touch Panels, total value of $4,700; and four Cisco Ethernet switches and a Panasonic Memory Card Drive with a replacement value of $5,000.
This case is the product of an investigation by the General Services Administration, Office of Inspector General; the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and the Department of Defense, Defense Criminal Investigative Service. Assistant United States Attorney André M. Espinosa is prosecuting the case.
Shaffer is scheduled to appear before U.S. District Judge John A. Mendez on October 6, 2015, for sentencing. The maximum statutory penalty for a violation of theft of government property is 10 years in prison. The actual sentence will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Jury Finds Bakersfield Man Guilty of Laser Strikes on Kern County Sheriff’s HelicopterRead the Press Release
FRESNO, Calif. — After a two-day trial, Barry Lee Bowser Jr., 52, of Bakersfield, was found guilty today of one count of aiming the beam of a laser pointer at an aircraft, United States Attorney Benjamin B. Wagner announced.
According to court documents, on September 12, 2014, Bowser aimed the beam of a green laser at Air-1, a Kern County Sheriff’s helicopter while it was providing support to ground units responding to a man armed with a gun. The helicopter was struck two times by a powerful green laser from a distance of about 1/8 mile. The beam of the laser appeared to track the helicopter, which was flying at about 400 to 500 feet above the ground. The helicopter’s mission was diverted near the approach to Meadows Field Airport because of the laser strike. The pilot experienced flash blindness and eye discomfort and pain that lasted several hours.
According to evidence presented at trial, the officers pinpointed the source of the laser to a commercial property and motorhome surrounded by a chain link fence on Sillect Avenue in Bakersfield. Bowser, who was residing in the motorhome, admitted to the officers that he had just placed new batteries in the laser and was testing its capabilities.
This case is the product of an investigation by the FBI, Kern County Sheriff’s Office, and the Bakersfield Police Department. Assistant U.S. Attorney Karen A. Escobar and Special Assistant U.S. Attorney Bayleigh Pettigrew are prosecuting the case.
Bowser is scheduled to be sentence by United States District Judge Lawrence J. O’Neil on September 28, 2015. Bowser faces a maximum penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Reports of laser attacks have increased dramatically in recent years as powerful laser devices have become more affordable and widely available to the public. In 2014, the Federal Aviation Administration (FAA) received 3,894 reports of incidents involving laser strikes on aircraft. In the Eastern District of California, which encompasses 34 counties in the eastern portion of California, there were 150 reported laser incidents, with Bakersfield and Fresno leading in the number of reported incidents. Lasers can completely incapacitate pilots who are trying to fly safely to their destination, endangering their crew members, passengers and people on the ground.
####
Third Co-conspirator Pleads Guilty to Smuggling Cocaine Seized in BakersfieldRead the Press Release
FRESNO, Calif. — Jose Luis Montoya-Salazar, aka Rafael Salazar-Sanchez (Montoya), 42, of Mexico City, pleaded guilty today to conspiring with Jimmy Gil, 35, of Shafter, 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. Montoya also agreed to the forfeiture of over $3.1 million in cash that drug agents seized during the investigation of the case.
In pleading guilty, Montoya admitted that he had conspired with Eslava and Gil to smuggle the cocaine into the United States from Mexico at the Otay Mesa Port of Entry. The cocaine was off-loaded in Bakersfield, where Gil and Montoya took possession of the drug. Follow-up investigation resulted in the seizure of $3,104,661 in cash, representing drug proceeds, hidden in an asphalt roller at another location in Bakersfield. The seized cocaine has a street value of over $3 million.
Montoya is scheduled to appear for sentencing before U.S. District Judge Lawrence J. O’Neill in Fresno on September 21, 2015. He faces a mandatory minimum statutory penalty of 10 years in prison, a maximum statutory penalty of life in prison and a $10 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. Eslava and Gil previously pleaded guilty and are scheduled for sentencing on July 20 and July 27, respectively. Eslava and Montoya are subject to removal to Mexico after serving any prison sentence imposed.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Drug Enforcement Administration, the Southern Tri-County High Intensity Drug Trafficking Area (HIDTA) task force, the Kern County Sheriff’s Office, the Tulare County Sheriff’s Office, and the Bakersfield Police Department. Assistant United States Attorney Karen Escobar is prosecuting the case.
Credit Manipulator Sentenced to Two Years in Prison for Mail FraudRead the Press Release
SACRAMENTO, Calif. — United States District Judge William B. Shubb sentenced Ricky Lamont Flemings, 31, of Antelope, to two years in prison for two counts of mail fraud, United States Attorney Benjamin B. Wagner announced.
According to court documents, Flemings engaged in a long-running scheme to deceive Experian and the other credit reporting agencies by exploiting provisions in the Fair Credit Reporting Act (FCRA), a statute intended to provide consumer protections to individuals. From 2005 until November 12, 2009, Flemings engaged Experian on multiple occasions and falsely reported that he was the victim of identity theft. During that period, Flemings demanded that Experian remove derogatory and other entries from his credit report. However, as he well knew, many of those entries were proper and were the result of his having sought credit or purchased items on credit.
In total, as a result of Flemings’s false statements, Experian blocked 162 inquiries and 40 trade lines from his credit report. Once those trade lines and inquiries were blocked, Flemings then sought further extensions of credit, relying on the fact that creditors would be unable to access the fraudulently blocked entries. As a result, Flemings appeared to be a better credit risk than he actually was.
For instance, between July 9, 2009, and September 5, 2009, Flemings received financing from Schools Financial Credit Union (SFCU), a federally insured credit union, to refinance a 2005 Lincoln Navigator and to purchase a 2006 Monterey boat. The loans were approved after SFCU examined a credit report that did not include fraudulently blocked entries. After receiving credit for the Lincoln and boat, Flemings contacted Experian and reported that the entries on his credit report related to these two items were fraudulent and should be removed.
This case was the product of an investigation by the United States Secret Service and the Placer County Sheriff’s Office. Assistant United States Attorney André M. Espinosa prosecuted the case.
Seven Indicted for $3 Million Mortgage Fraud ConspiracyRead the Press Release
FRESNO, Calif. — A federal grand jury returned a 15-count indictment on Thursday against seven individuals, charging them with conspiracy to commit mail fraud and bank fraud, mail fraud and aiding and abetting, and making false statements to a bank in a mortgage fraud scheme, United States Attorney Benjamin B. Wagner announced.
Jyoteshna Karan, 43, and Praveen Singh, 36, were arrested this morning at their home in Modesto. Mahendra Prasad, 53, was arrested this morning at his home in Fremont. The remaining defendants each received a summons to appear for arraignment: Phul Singh, 79; and Sunita Singh, 60, both of Modesto, Nani Isaac, 69, of Ceres, and Martin Bahrami, 42, of Turlock.
According to court documents, the defendants conspired to defraud mortgage lending companies and financial institutions by making false statements on loan applications and short-sale applications in order to obtain properties under their names and the names of others. The false statements included statements relating to the defendants’ employment, their familial relationship, income, and their intent to occupy the home as their primary residence.
According to the indictment, the conspiracy encompassed at least 25 properties from Sacramento to Modesto. As a result of the scheme, lenders lost in excess of $3 million.
“The Federal Deposit Insurance Corporation Office of Inspector General is pleased to join the United States Attorney for the Eastern District of California and our law enforcement colleagues in announcing these indictments” said Wade Walters, Special Agent in Charge for the FDIC’s Office of Inspector General. “We are committed to our partnerships with others in federal, state, and local law enforcement organizations as we address mortgage fraud cases throughout the country. The American people need to be assured that their government is working to ensure integrity in the financial services and housing industries and that those involved in criminal misconduct that undermines that integrity will be held accountable.”
“The partnership between the Stanislaus County District Attorney’s Office, federal agencies and the U.S. Attorney’s Office allows us to investigate the most complex real estate fraud cases at the local level and yet prosecute at the federal level to ensure full accountability. This is a true benefit to the community,” said Stanislaus County District Attorney Birgit Fladager.
“The short sale process is intended to assist legitimately distressed homeowners,” said Leslie DeMarco, Special Agent in Charge, Federal Housing Finance Agency Office of Inspector General. “Our investigation disclosed that Karan and others allegedly manipulated the process for their personal gain. FHFA-OIG is committed to ensuring that real estate professionals maintain the highest ethical standards, which in turn will protect taxpayers.”
“Early this morning, SIGTARP agents and our law enforcement partners arrested or served summons on seven individuals who stand charged with operating a fraud scheme that cost financial institutions, including multiple TARP banks, millions of dollars in losses,” said Christy Romero, Special Inspector General for TARP. “The seven allegedly conspired to falsify information on mortgage loan and short-sale applications submitted to multiple financial institutions in order to obtain properties across Eastern California. SIGTARP and our law enforcement partners will aggressively investigate allegations of fraud perpetrated at the expense of taxpayers’ TARP bank investments and bring accountability to those who engage in these schemes.”
This case is the product of an investigation by the Stanislaus County District Attorney’s Office, the Federal Bureau of Investigation, the Federal Housing Finance Agency Office of Inspector General, the Federal Deposit Insurance Corporation Office of Inspector General, and the Office of the Special Inspector General for the Troubled Asset Relief Program. Assistant United States Attorneys Mark E. Cullers and Patrick Delahunty are prosecuting the case.
Jyoteshna Karan and Praveen Singh are scheduled to appear for arraignment in U.S. District Court in Fresno, on Friday, June 26, 2015, at 1:30 p.m. before U.S. Magistrate Judge Gary Austin. Phul Singh, Sunita Singh, Nani Isaac and Martin Bahrami are scheduled to appear for arraignment in U.S. District Court in Fresno, on Wednesday, July 1, 2015, at 1:30 p.m. before U.S. Magistrate Judge Gary Austin. Mahendra Prasad is scheduled to appear in U.S. District Court in San Jose on June 26, 2015, for arraignment.
If convicted, each defendant faces a maximum statutory penalty of 30 years in prison and a $1 million fine per 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.
Four Central Valley Men Indicted on Cocaine Trafficking ChargesRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Raymond Slaton, 43, of Merced; Sidney Allen, 48, of Merced; Donnell Mays, 39, of Turlock; and Omar Lopez, 22, of Turlock, charging them with federal drug trafficking offenses United States Attorney Benjamin B. Wagner announced.
According to court documents, on May 20, 2015, Mays and Lopez went to Allen’s residence where they delivered a half kilogram of cocaine to Allen and Slaton. Mays and Lopez then left the residence in a car in possession of another half kilogram of cocaine. As law enforcement officers attempted to stop Lopez’s car for a vehicle code violation, Lopez failed to yield. While Mays and Lopez were pursued by patrol units from the Merced Police Department, a bag containing the half kilogram of cocaine was thrown from their car. After a high‑speed chase, Mays and Lopez were arrested.
This case is the product of an investigation by the Drug Enforcement Administration, the California Department of Justice, the Merced Police Department, the California Highway Patrol, the Merced Gang Task Force, and the Merced Narcotic Task Force. Assistant United States Attorneys Kimberly A. Sanchez and Daniel Griffin are prosecuting the case.
If convicted, Slaton, Mays and Allen face a maximum statutory penalty of life in prison, a mandatory minimum of 10 years in prison, and a $10 million fine. Lopez faces a maximum statutory penalty of 20 years in prison and a $1 million fine.
Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Man Stopped for Talking on Cellphone Sentenced to 10 Years in PrisonRead the Press Release
FRESNO, Calif. — Mario Farias Pineda, 23, was sentenced today by United States District Judge Lawrence J. O’Neill to 10 years in prison for possession with intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.
According to court documents, Pineda was driving northbound on California State Highway 99 when he was pulled over by Fresno County Sheriff’s deputies for talking on his cellphone. The deputies obtained permission to search his vehicle and found approximately 25 pounds of methamphetamine in a hidden compartment behind the rear passenger seat.
This case was the product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration and the Fresno County Sheriff’s Office. Assistant United States Attorney Michael Frye prosecuted the case.
Ceres Man Sentenced to over 7 Years in Prison for Receiving Child PornographyRead the Press Release
FRESNO, Calif. — George Esle Pires, 56, of Ceres, was sentenced today by United States District Judge Anthony W. Ishii to seven years and three months in prison for receiving child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, between November 2006 and November 2012, Pires received images of minors engaged in sexually explicit conduct.
This case was the product of an investigation by the Federal Bureau of Investigation and the Ceres Police Department. Assistant United States Attorneys Grant B. Rabenn and Jeffrey Spivak 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.
Businessman Sentenced for Bakersfield Drug OperationRead the Press Release
FRESNO, Calif. — Joseph Nolan, 59, a Malibu businessman and Ventura County resident, was sentenced today to 18 months in prison, to be followed by three years of supervised release, for conspiring to manufacture, distribute, and possess with intent to distribute marijuana cultivated at a warehouse that he owned in Bakersfield, according to U.S. Attorney Benjamin B. Wagner.
According to the plea agreement and other court documents, Nolan set up a sophisticated indoor marijuana cultivation operation in a light industrial area in Bakersfield using K&N Manufacturing, his stone cutting business, as a front. Nolan used the accounts of another business, Cross Creek Building Center in Malibu, to pay the growers and cover the costs of electricity, supplies, and equipment. The Bakersfield marijuana operation supplied marijuana to the Blue Banana, a marijuana storefront and cultivation operation in Northridge that was shut down by the City of Los Angeles for failure to comply with local law. The Bakersfield marijuana operation was disrupted when law enforcement officers obtained and executed a search warrant there. During the search, officers seized 1,161 marijuana plants and 55 pounds of processed marijuana valued at over $4.8 million, along with thousands of dollars of marijuana cultivation equipment. In sentencing Nolan, Senior U.S. District Judge Anthony W. Ishii ordered the forfeiture of over 300 pieces of equipment used for the indoor cultivation of marijuana.
Nolan was the last of six defendants to be sentenced in connection with the marijuana operation. Mark Jeff Zeldes, 53, of Broomfield, Colorado, was sentenced last month to three years and eight months in prison for his involvement in the drug conspiracy. Joseph Taylor, 55, of Thousand Oaks, California, was sentenced to three years and one month in prison. Mark McGrath, 53, of Bakersfield, was sentenced to two years and two months in prison. Dustin York, 37, of Newbury, California, was sentenced to one year and 10 months in prison. Jeremy Dunn, 22, of Thousand Oaks, was sentenced to one year and three months in prison.
The case was the product of an investigation conducted by the Drug Enforcement Administration, the Bakersfield Police Department, the Kern County Sheriff’s Office, and the Southern Tri-County High Intensity Drug Trafficking Area (HIDTA) Task Force. Assistant U.S. Attorney Karen Escobar prosecuted the case.
US Attorney Wagner’s Remarks on the Shooting Incident in Charleston, South CarolinaRead the Press Release
SACRAMENTO, Calif. Yesterday, United States Attorney Benjamin B. Wagner sent the following remarks to various community members:
This afternoon I participated in a national conference call with other U.S. Attorneys about yesterday’s horrific shooting at the Emanuel AME Church in Charleston. The call was led by Vanita Gupta, the Acting Assistant Attorney General for the Civil Rights Division, and Bill Nettles, the U.S. Attorney in South Carolina.
As you know, a suspect is in custody. The U.S. Department of Justice has opened a federal hate crime investigation into the shooting, in addition to the murder investigation being pursued by local authorities. The FBI and ATF are working closely with local law enforcement agencies in both investigations.
There should be no doubt that this shooting was an act of domestic terrorism. Protecting Americans from the threat of terrorism of all types is the top priority of the U.S. Department of Justice. We and our federal law enforcement partners are committed to doing all we can to prevent, respond to, and prosecute such crimes.
The Attorney General [Loretta Lynch] has stated, and I agree, that there is no place for acts like these in our country or in civilized society.
Tulare County Man Charged with Committing More Mail Theft Crimes While Pending Trial in Mail Theft CaseRead the Press Release
FRESNO, Calif. — A federal grand jury returned a superseding indictment today alleging that Shannon Lester Sorrells, 36, of Dinuba, committed bank fraud and aggravated identity theft while awaiting trial for the original indictment, United States Attorney Benjamin B. Wagner announced.
According to the indictment, in May and June 2014, Sorrells stole three neighborhood delivery collection box units containing United States mail in Visalia. On July 3, 2014, a federal grand jury charged him with three counts of theft of government property and three counts of theft of U.S. Mail. Sorrells was released on his own recognizance, and trial was scheduled for August 4, 2015.
The superseding indictment returned today alleges that between December 2014 and February 2015, Sorrells obtained United States mail containing personal identification and financial information, including checks, of victims without their knowledge. He opened bank accounts in victims’ names and altered the checks and deposited them into the accounts. At times when committing the fraud, Sorrells presented himself as one of the victims whose identities he stole. Sorrells has been in custody since March 5, 2015.
This case is the product of an investigation by the United States Postal Inspection Service and the Visalia Police Department. Assistant United States Attorneys Megan A. S. Richards and Jeffrey Spivak are prosecuting the case.
If convicted, Sorrells faces a maximum statutory penalty of 30 years in prison and a $1 million fine on the bank fraud charges, five years in prison and a $250,000 fine for theft of mail, and a mandatory two-year consecutive sentence for the aggravated identity theft 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.
Sacramento Men Indicted for Trafficking Methamphetamine and CocaineRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment today against Sacramento residents Benjamin Macias, 37, and Sergio Ambriz, 26, charging them with conspiracy to distribute cocaine, distributing cocaine, and distributing methamphetamine, United States Attorney Benjamin B. Wagner announced. Macias is also charged with possessing a firearm in furtherance of a drug trafficking crime and being a felon in possession of firearm.
According to court documents, in 2014 and 2015, Macias supplied Ambriz with cocaine and Ambriz sold the cocaine to an undercover agent in Sacramento and El Dorado Counties. Ambriz also sold the undercover agent methamphetamine. When Macias was arrested, a Ruger 9mm pistol was found in his vehicle.
This case is the product of an investigation by the Drug Enforcement Administration. Assistant United States Attorney Michael McCoy is prosecuting the case.
If convicted, Macias faces a maximum statutory sentence of 40 years in prison and a $5 million fine. Ambriz faces a maximum statutory sentence of life in prison and an $8 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.
Modesto Real Estate Attorney Indicted on Fraud Charges in a Short Sale SchemeRead the Press Release
FRESNO, Calif. — Robert Farrace, 51, of Modesto, was indicted today on three counts of wire fraud in connection with a fraudulent short-sale scheme, United States Attorney Benjamin B. Wagner announced.
According to the indictment, Farrace was an attorney specializing in real estate transactions. He owned two investment properties in Modesto with substantial mortgage loans. In early 2010, he received foreclosure notices for the two properties. Farrace then created an entity called “Dignitas LLC” that he controlled but used a friend’s name as the company’s registered agent to conceal his control. Through Dignitas, Farrace submitted short sale offers to the bank that serviced the loans on both properties. During the process, Farrace misrepresented his relationship with Dignitas, and because the servicing bank did not know of the true relationship, it went forward and completed one of the short sales. The other sale was stopped by law enforcement and the bank.
This case is the product of an investigation by the Federal Housing Finance Agency–Office of Inspector General, the Federal Bureau of Investigation, and the Stanislaus County District Attorney’s Office. Assistant United States Attorney Michael G. Tierney is prosecuting the case.
If convicted, Farrace 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 sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Mexican Nationals Indicted for Forest Marijuana Cultivation OperationRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Antonio Garcia-Villa (Garcia), 46, and Uriel Silva-Garcia (Silva), both Mexican nationals, charging them with conspiring to manufacture, distribute and possess with intent to distribute, manufacturing, and possessing with intent to distribute marijuana in connection with a large-scale cultivation operation in the Sequoia National Forest, United States Attorney Benjamin B. Wagner announced. The men were also charged with damaging public land and natural resources as a result of cultivating marijuana near Little Poso Creek, which drains into the Kern National Wildlife Refuge.
According to court documents, Garcia and Silva were found at the cultivation site in May 2015. Agents removed 8,596 marijuana plants from the site, along with pesticides, fertilizer, trash, water lines, and equipment. The cultivation activities caused extensive damage to the land and natural resources. Native trees and plants were cut down and steep hillsides were terraced to plant the marijuana.
This case is the product of an investigation by the U.S. Forest Service, Kern County Sheriff’s Office, and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney Karen Escobar is prosecuting the case.
Garcia and Silva are in custody and are scheduled for arraignment on the indictment on June 24, 2015, in federal court in Fresno. If convicted of the drug offenses, the men face a statutory penalty of 10 years to life in prison and a $10 million fine. If convicted of the environmental crime, the men face a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Marijuana Cultivator Indicted for Growing Marijuana in Mendocino National Forest and Environmental DestructionRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Pablo Barreto-Cruz, 40, of Michoacán, Mexico, charging him with marijuana cultivation and depredation of public lands and resources, United States Attorney Benjamin B. Wagner announced.
According to court documents, law enforcement conducted a month-long investigation of a suspected drop point for a marijuana grow in the Mendocino National Forest in Glenn County. On May 12, agents encountered Barreto-Cruz on a remote Forest Service road near the suspected drop point. Close by, investigators discovered nearly 3,000 marijuana plants and a camp area.
A Forest Service fisheries biologist estimated that the resource damage, rehabilitation, and repair of the site would cost far more than $1,000. The report concluded that the marijuana grow represented a threat to water quality and aquatic resources due to their use of fertilizer and pesticides that will likely reach water in the wet winter months. Further, the report noted that the chemicals at the site include labeled fertilizers, labeled rodenticides and unlabeled pink powder believed to be a toxic pesticide (carbofuran).
This case is the product of an investigation by the U.S. Forest Service and the Glenn County Sheriff’s Office. Assistant United States Attorney Christiaan Highsmith is prosecuting the case.
If convicted, Barreto-Cruz faces a minimum statutory penalty of five years in prison, a maximum statutory penalty of 40 years in prison and a $5 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Four Defendants Indicted in Drug Trafficking Ring That Shipped Methamphetamine and Marijuana to Hawaii and New YorkRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an 11-count indictment today against Epati Malauulu, 40, of Suisun City; John Ortiz, 43, of Vallejo; Algernon Tamasoa, 26, of Sacramento; and Francisco Poloai, 43, of Dixon, charging them with conspiracy to distribute methamphetamine, attempted distribution of methamphetamine, distribution of marijuana, and use of a communications facility to facilitate a drug trafficking crime, United States Attorney Benjamin B. Wagner announced.
According to court documents, beginning in August 2014 and continuing to June 4, 2015, the defendants were involved in shipping packages of methamphetamine from Vallejo and elsewhere to Honolulu, Hawaii, using the U.S. Postal Service and FedEx. On at least four occasions, investigators in Hawaii seized packages containing approximately 12 pounds of methamphetamine. On a separate occasion, investigators seized a package containing one pound of marijuana destined for Brooklyn, New York. On June 4, 2015, Malauulu, Ortiz, Tamasoa, and Poloai were arrested. Malauulu, Ortiz, and Tamasoa are in custody.
This case is the product of an investigation by the Drug Enforcement Administration, the Federal Bureau of Investigation, the U.S. Postal Inspection Service, the IRS-Criminal Investigation, the Solano County Sheriff’s Office, the Fairfield Police Department, the Vallejo Police Department, and the Contra Costa County Sheriff’s Office. Assistant United States Attorney Christiaan Highsmith is prosecuting the case.
The investigation is part of an Organized Crime Drug Enforcement Task Force (OCDETF) that was established in 1982. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
If convicted, Malauulu, Ortiz, and Tamasoa each face a maximum statutory penalty of life in prison and a $10 million fine. If convicted, Poloai faces a maximum statutory penalty of 20 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Fair Oaks Man Found Guilty of Mortgage Fraud After 5-Day TrialRead the Press Release
SACRAMENTO, Calif. — Today, after a five-day trial, a federal jury found Sacramento area loan broker and real estate agent, Anthony Salcedo, 34, of Fair Oaks, guilty of one count of conspiracy to commit mail fraud and four counts of mail fraud for his involvement in a mortgage fraud scheme, United States Attorney Benjamin B. Wagner announced.
According to court documents and evidence produced at trial, Anthony Salcedo worked in the real estate industry beginning in 2000, was licensed as a real estate agent in 2004 and as a mortgage broker in 2006, and worked for two different mortgage lenders for five years. When selling his personal properties in 2005 and 2006, Salcedo worked with licensed mortgage broker Sean McClendon, 49, of Fair Oaks, and Anthony Williams, 47, previously of Memphis, Tennessee, to find buyers. As an incentive to complete the sales transactions, Salcedo paid kickbacks to the buyers and to McClendon outside of escrow. The payments were never disclosed to the lenders as part of the purchase and sale agreements, and the buyers’ income and assets were falsified in order to qualify for the loans.
Ultimately, substantial sums were exchanged outside of escrow as part of this scheme, equaling in one instance as much as 16 percent of the total purchase price of the property. The exchange of money outside of escrow reduces the fair market value of a property to below what is reflected in the contract price and impacts the appraised value of a home. At least two of the buyers declared bankruptcy and lost not only their investment properties, purchased by way of the scheme, but their own homes. In all, approximately $2.6 million in fraudulently obtained loans were involved in the scheme, while Salcedo and his family got out from under their $1.6 million in mortgage debt at a time when Salcedo knew the real estate market was slowing down.
“Much of the mortgage fraud that was so common in this region during the 2005-2008 timeframe was associated with dishonest real estate and mortgage financing professionals such as Anthony Salcedo and his co-defendants in this case,” said U.S. Attorney Wagner. “Accordingly, in our continuing effort to restore integrity and confidence to the residential real estate market, we have focused our enforcement efforts on identifying and prosecuting those professionals and the persons who aided and benefited from major mortgage fraud schemes.”
“To those involved in committing mortgage fraud, today’s verdict should send a clear message that this type of activity will have criminal consequences,” said Andrew J. Toth, Acting Special Agent in Charge, IRS-Criminal Investigation. “This is a case about dishonesty and collusion fueled by greed. While this verdict cannot reverse the damage caused by the defendants, it highlights the ongoing commitment of IRS-CI and our law enforcement partners to hold accountable those involved in these types of crimes.”
Co-defendant Sean McClendon pleaded guilty on October 12, 2013, and is awaiting sentencing. Co-defendant Anthony Williams pleaded guilty, was sentenced to two years and nine months in prison, and is currently serving that sentence.
Salcedo is scheduled to be sentenced on September 10, 2015, by Chief United States District Judge Morrison C. England Jr. The maximum statutory penalty for mail fraud and the related conspiracy is 30 years in prison, a $1 million fine, or both. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the Internal Revenue Service‑Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorneys Jean M. Hobler and Marilee L. Miller are prosecuting the case.
Sacramento Man Transporting 19 Pounds of Methamphetamine Through Fresno County Pleads GuiltyRead the Press Release
FRESNO, Calif. —Wenceslao Cruz Ochoa, 35, of Sacramento, pleaded guilty today to possession with intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.
According to court documents, Ochoa was driving northbound on Interstate 5 when he was stopped for driving too closely to another vehicle. During the stop, the deputy’s canine alerted to the presence of a controlled substance. Ochoa’s vehicle was search and 19 pounds of methamphetamine was found in a suitcase.
This case is the product of an investigation by the Drug Enforcement Administration and the Fresno County Sheriff’s Department. Assistant United States Attorney Michael Frye is prosecuting the case.
Ochoa is scheduled to be sentenced by United States District Judge Lawrence J. O'Neill on September 14, 2015. Ochoa faces a maximum statutory penalty of 20 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Sacramento Man Charged with Attempting to Produce Child PornographyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment against Robert Charles Chavez, 29, of Sacramento, on Thursday, June 11, 2015, charging him with one count of attempted production of child pornography and three counts of receiving child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, in January 2014, Chavez offered to pay a person approximately $66 if that person would sexually abuse a child and allow him to watch the abuse via webcam. In addition, between March 2, 2015, and March 18, 2015, Chavez used the Internet to download images of prepubescent children engaged in sexually explicit conduct. Chavez is scheduled to be arraigned today at 2:00 p.m. before U.S. Magistrate Judge Kendall J. Newman.
This case was investigated by the Sacramento Internet Crimes Against Children (ICAC) Task Force, a federally and state-funded task force managed by the Sacramento County Sheriff’s Office with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant U.S. Attorney Brian A. Fogerty is prosecuting the case.
If convicted of attempted production of child pornography, Chavez faces a maximum statutory penalty of 30 years in prison and a $250,000 fine. If convicted of receipt of child pornography, he faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Jury Returns Guilty Verdicts for Former Sacramento County Sheriff’s Deputy and Federal Firearms Licensee in Firearm Straw-Buyer SchemeRead the Press Release
SACRAMENTO, Calif. — After a nine-day trial, a federal jury returned guilty verdicts for two defendants in a firearm straw-buyer scheme involving firearms that are not on California’s roster of approved handguns, United States Attorney Benjamin B. Wagner announced.
Former Sacramento County Sheriff’s Deputy Ryan McGowan, 33, of Elk Grove, was found guilty of one count of engaging in the business of dealing in firearms without a license and one count of conspiracy to make a false statement in federal firearms records. Federal Firearms Licensee Robert Snellings, 63, of Rancho Murieta, was found guilty of five counts of conspiracy to make false statements in federal firearms records.
Under state law, California has an approved roster of firearms that may be sold to the public. A Federal Firearms Licensee is required to make sure any handgun sold is on the approved roster. There is an exemption, however, for peace officers to purchase certain firearms known as “off-roster” firearms. Peace officers who own off-roster firearms may sell them in a private sale, as long as it is brokered by a Federal Firearms Licensee. They may not, however, use these private sales to conduct a business whose principal objective is livelihood and profit through the repetitive purchase and resale of firearms.
Because off-roster firearms cannot be purchased directly by the general public, they command high prices. According to evidence produced at trial, McGowan used his position as a sheriff’s deputy to purchase off-roster guns at the retail price, and then he resold them at an inflated price on the private market in California. From 2008 to 2011, McGowan purchased 41 handguns, many of them high-caliber guns, and sold 25 of them within a year after purchase. Thirty-three of the guns were purchased through Snellings Firearms, which was owned by co-defendant Snellings. Some of those weapons were then transferred back to Snellings personally, thereby allowing Snellings to own the weapons himself or sell them to the public.
“When law enforcement officers misuse their badges to funnel dangerous weapons to the highest bidder, they compromise the safety of the public. By putting personal profit ahead of public safety, they undermine the very essence of their duty,” said U.S. Attorney Wagner. “I want to specifically thank the Sacramento Sheriff’s Office, the Sacramento Police Department, the Sacramento County District Attorney’s Office, and other regional law enforcement agencies for their partnership in the course of this investigation.”
Both defendants were found guilty of conspiracies to make false statements in federal firearms records. In order to circumvent the restrictions on purchasing off-roster firearms, they falsely stated on the ATF Form 4473 that a police officer was the actual purchaser when buying the off-roster handgun when the actual purchaser was intended to be a non-officer who was not permitted to buy the off-roster handgun. Therefore, McGowan and other police officers were acting as a straw purchasers who then transferred the handguns to the real purchasers within a short period of time.
“The individuals who unlawfully sell firearms and falsify official firearm transaction records are in violation of the federal firearms laws and should be held accountable,” stated Acting Special Agent in Charge Eric D. Harden. “One of ATF’s top priorities is to aggressively investigate those suspects who are illegally trafficking in firearms that may ultimately end up as crime guns.”
After pleading guilty on August 28, 2012, to one count engaging in the business of dealing in firearms without a license, co-defendant Thomas Lu, 42, of Elk Grove, is scheduled for sentencing on July 9, 2015. According to court documents, Lu was a Sacramento County Sheriff’s deputy who obtained 27 off‑roster firearms and sold 23 of them, 18 of which were sold within one year.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the active involvement of the Sacramento Sheriff’s Office and the Sacramento Police Department. The Roseville Police Department and other law enforcement agencies assisted. Assistant United States Attorneys William S. Wong and Michael D. Anderson are prosecuting the case.
The defendants are scheduled to be sentenced on August 27, 2015. The maximum statutory penalty for each of the conspiracy charges is five years in prison, a $250,000 fine, and a term of supervised release. The maximum penalty for the charge of engaging in the business of dealing firearms without a license is 10 years in prison, a $250,000 fine, and a term of supervised release. The actual sentences 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 Head of Real Estate Investment Firm Sentenced to 8 Years in Prison for the Sale of Unregistered SecuritiesRead the Press Release
SACRAMENTO, Calif. — Akbar Bhamani, 61, of Carmichael, was sentenced today by United States District Judge Troy L. Nunley to eight years in prison for two counts of selling unregistered securities, United States Attorney Benjamin B. Wagner announced. Bhamani was sentenced to 49 months on count one and 48 months on count two, to be served consecutively.
According to court documents, Bhamani was the founder and chief executive officer of Heaven Investments Holding Corporation (HIHC), a Sacramento company that was family-owned and operated. From February 2007 through August 2008, Bhamani and his employees solicited investors to participate in its investment programs, including the Tenants in Common (TIC) program. The TIC program was to use investor money to develop four properties, including a hotel in Oakland. HIHC sold fractionalized ownership interests to investors in each of the properties. These fractionalized interests qualified as securities, which defendant never registered with the SEC. Investors in HIHC lost between $2.5 million and $7 million.
During the sentencing hearing, a number of letters from investors who collectively lost millions of dollars were read describing the devastating impact of their losses, including in some cases, the loss of retirement money and life savings. In sentencing Bhamani, Judge Nunley commented that the defendant’s sole focus was on marketing and revenue, noting that he continued to misrepresent the profitability of the company to investors just months before filing for bankruptcy on behalf of the company in August 2008. Judge Nunley ordered the defendant to pay restitution, the amount of which will be determined at a later proceeding.
This case was the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Michele Beckwith prosecuted the case. The remaining defendants have pleaded guilty and await sentencing.