Eastern District of California
Press releases recorded for this federal judicial district.
Tulare Man Sentenced for Weapon and Drug OffensesRead the Press Release
FRESNO, Calif. — Valentin Aispuro, 38, of Tulare, was sentenced today by United States District Judge Anthony W. Ishii to four years and three months in prison for possession with intent to distribute marijuana and possession of a firearm by a felon, United States Attorney Benjamin B. Wagner announced.
According to court documents, in January 2013, Tulare Police Department detectives obtained search warrants for two residences in Tulare believed to be used by Aispuro and co-defendant Imelda Martin for narcotics sales. During the search, officers found four firearms, 130 pounds of marijuana and cash. Aispuro was a convicted felon and not entitled to possess a firearm.
Both defendants pleaded guilty, and on March 3, 2014, Martin was sentenced to one year and eight months in prison for her role in the offense.
This case was the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Tulare Police Department. Assistant United States Attorney Michael S. Frye prosecuted the case.
Bakersfield Arrest Leads to 11-Year Prison Sentence for Methamphetamine TraffickingRead the Press Release
FRESNO, California – Raul Canchola Farias, 40, of Pacoima, was sentenced today by U.S. District Judge Anthony W. Ishii to 11 years and three months in prison for possession with intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.
According to court documents, Farias was arrested on November 5, 2013, after a California Highway Patrol officer stopped his vehicle on Highway 99 in Bakersfield and found over 21 pounds of methamphetamine secreted in the vehicle.
This case was the product of an investigation by the Drug Enforcement Administration and the California Highway Patrol. Assistant United States Attorney Brian K. Delaney prosecuted the case.
Stockton Woman Sentenced to over 5 Years in Prison for Criminal Tax Case and Money LaunderingRead the Press Release
SACRAMENTO, Calif. — Terrylyn McCain, 67, of Stockton, was sentenced today by United States District Judge Troy L. Nunley to five years and 10 months in prison for tax fraud, making false claims against the United States, and money laundering, United States Attorney Benjamin B. Wagner announced. In addition to the prison term, Judge Nunley ordered McCain to pay $156,373 in restitution, the amount she received early in her false refund scheme.
On March 13, 2015, after a five-day trial, a jury found McCain guilty of four counts of mail fraud for mailing false tax returns, four counts of making false claims against the United States by falsifying personal income tax returns for tax years 2005 to 2008, and three counts of money laundering for buying gold with proceeds of the fraud.
According to court documents and evidence introduced at trial, McCain mailed tax returns to the IRS and claimed that banks, tow truck companies, department stores, interior designers and even her gardener had withheld income due to her. To support her scheme, she utilized false documents that indicated significant tax withholdings, including 1099–OID forms that were purportedly issued by financial institutions such as the Bank of Stockton and national retailers such as Costco and Target. In reality, funds were never withheld, the 1099–OID forms were fraudulent, and McCain’s tax returns were falsely inflated by hundreds of thousands of dollars.
In total, McCain filed at least 12 fraudulent returns that sought nearly $3 million in tax refunds. In just one instance, early in the scheme, the IRS refunded $156,373 to McCain. Within the month, she had used the refund money to purchase approximately $62,000 in gold coins, forming the basis for the money laundering charges.
In sentencing McCain, Judge Nunley told the defendant, “You are a cheat, a liar … you stole from the government and others.”
This case is the product of an investigation by the Internal Revenue Service-Criminal Investigation. Assistant United States Attorneys William S. Wong and Kevin Khasigian are prosecuting the case.
Seven Sacramento Residents Indicted for Identity and Mail Theft SchemeRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 13-count indictment today against seven Sacramento residents, charging them with conspiracy, access device fraud, aggravated identity theft, and possession of stolen mail, United States Attorney Benjamin B. Wagner announced.
The indictment alleges that co-defendants Steven Khamkeuanekeo, 33, Kay Lee, 26, Chee Yang, 27, Frank Her, 36, Amy Her, 33, Lee Yang, 33, and Tou Her, 36, conspired to use unauthorized access devices at large retailers and stole victims’ identities through stolen mail.
According to the indictment, from July 2014 through April 2015, the conspirators obtained personal information from victims through various methods. The conspirators then used that information to create counterfeit access devices or otherwise used unauthorized access devices to obtain things of value in excess of $1,000. Part of the scheme involved using Target store account numbers to buy large amounts of electronics and other goods at Target locations throughout the Sacramento area. The indictment further alleges that one of the defendants, Frank Her, possessed device-making equipment with the intent to defraud.
In all, the indictment alleges that at least 500 counterfeit and unauthorized access devices were possessed, used, produced, or trafficked by members of the conspiracy, and over 2200 victims have been identified to date as having had their identities or mail compromised as a result of the conspiracy.
This case is the product of an investigation by the United States Postal Inspection Service. Assistant United States Attorney Matthew M. Yelovich is prosecuting the case.
If the defendants are convicted, they face maximum statutory penalties ranging from five to 15 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Foreign National Sentenced to 5 Years in Prison for Firearm Offense, Growing Marijuana in Mendocino National Forest, and Destruction of National LandsRead the Press Release
SACRAMENTO, Calif. — Ivan Espinoza Villafana, 25, a Mexican national, was sentenced today by United States District Judge Troy L. Nunley to five years in prison and restitution of $14,400 for possession of a firearm by an illegal alien, cultivation of marijuana, and depredation of public lands and resources, United States Attorney Benjamin B. Wagner announced.
According to court documents, on August 19, 2014, law enforcement officers entered a marijuana cultivation site near Ice Springs in the Mendocino National Forest in Glenn County where 732 marijuana plants were growing. After seeing law enforcement approach, Villafana fled. He was apprehended and arrested at the site. At the time of his arrest, Villafana had a loaded Smith & Wesson revolver tucked in his waistband. Officers also found a rifle in the camp area of the site. Villafana has been in custody since his arrest.
Marijuana cultivation at the site caused significant natural resource damage. Irrigation piping diverted water from a nearby stream to the marijuana plants, which require approximately 6-8 gallons of water per plant per day. Law enforcement also observed numerous bags of fertilizer and pesticides, which were used to grow marijuana. A U.S. Forest Service hydrologist who surveyed the site concluded that fertilizer and pesticides impact runoff into streams and would damage water quality and harm wildlife, as animals in the National Forest are likely to ingest the pesticides and fertilizers. Further, marijuana cultivators at the site cut and cleared trees and vegetation in the National Forest to make room for marijuana plants. Repairing and rehabilitating the damage to the National Forest from this cultivation will cost the United States between $14,400 and $73,500.
This case was the product of an investigation by the United States Forest Service, Glenn County Sheriff’s Office, and California Department of Fish and Wildlife. Assistant United States Attorney Christiaan Highsmith prosecuted the case.
Attorney General Recognizes District EmployeeRead the Press Release
SACRAMENTO, Calif. – Jacquelyn C. Strong, Administrative Officer of the U.S. Attorney’s Office in the Eastern District of California, was one of 160 members of the Department of Justice recognized by Attorney General Loretta Lynch, Deputy Attorney General Sally Quillian Yates, and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 31st Director’s Awards Ceremony today in Washington, D.C.
The Eastern District of California was one of 31 districts represented at the ceremony, which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
"Our honorees include career executives and supervisors; Assistant U.S. Attorneys and Special Assistant U.S. Attorneys; appellate attorneys and law enforcement officials; administrators, paralegals, and public affairs officers," said Attorney General Lynch. "These individuals, and so many others, have faced daunting and sometimes dangerous challenges. They have dedicated their leadership and their expertise, their time and their energy, to the service of their mission. And they have remained devoted, at all times, to the high ideals and deeply-held values that animate our country and our cause."
Jacquelyn C. Strong is recognized for her outstanding leadership of the Administrative Division over a particularly challenging year. During the 16-day government shutdown, Ms. Strong worked tirelessly to meet the needs of the attorneys who were still on duty while regularly communicating with the support staff, many of whom were furloughed, and maintaining their morale. When our long-time employee Joyce Dorsey unexpectedly died of the flu, Ms. Strong communicated the news with sensitivity, addressing the staff’s health concerns and attending to grieving employees and family. During the same year, Ms. Strong oversaw a major remodeling project in the Sacramento office, ensuring it did not disrupt office operations, worked to establish the new Bakersfield office, and hosted visits to the district by the Executive Office’s evaluation staff. Ms. Strong, who has served as Administrative Officer for 17 of her 34 years in the office, earned the highest marks during our recent office evaluation, which praised her staff’s “top notch customer service.”
United States Attorney Benjamin B. Wagner stated: “Jackie Strong has provided outstanding service to the Department of Justice for many years. She has deftly guided this office in budgetary, personnel and administrative matters through good times and bad, and has loaned her expertise to other districts. I am pleased that her leadership is being recognized nationally.”
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Shasta County Woman Sentenced to 5 Years in Prison for Interstate Trafficking of Marijuana and Money LaunderingRead the Press Release
SACRAMENTO, Calif. — Aimee Sharon Burgess, 36, of Shasta Lake, was sentenced today by United States District Judge Kimberly J. Mueller to five years in prison for conspiring to distribute marijuana and conspiracy to launder money, United States Attorney Benjamin B. Wagner announced.
According to court documents, Burgess conspired with others to manufacture and distribute marijuana that had been grown in California and shipped to Pennsylvania for sale. When federal agents searched the house that she shared with co-defendant, Glen Edward Meyers in September 2013, they discovered numerous guns, approximately 20 pounds of processed marijuana packaged for resale, as well as cash, heat sealers, and other indicia of drug trafficking. Although Burgess was initially released pending trial, her bail was revoked after she violated court orders by communicating with Meyers through surreptitious telephone calls while he was detained at the Sacramento County Jail. As part of the investigation, agents also discovered a warehouse at another location, which contained approximately 490 plants in various stages of growth.
This case was the product of an investigation by the Internal Revenue Service – Criminal Investigation and the Sacramento Valley Financial Crimes Task Force, with assistance from the Pennsylvania State Police, the Drug Enforcement Administration, and the Pennsylvania, Washington County Drug Task Force. Assistant United States Attorneys Michele Beckwith, Michael D. McCoy, and Kevin Khasigian prosecuted the case.
On April 22, 2015, Judge Mueller sentenced Meyers to more than eight years in prison in the same case.
Stockton Man Sentenced to over 17 Years in Prison for Drug Trafficking and Firearm OffensesRead the Press Release
SACRAMENTO, Calif. — Cedric Sewell, 52, of Stockton, was sentenced today by United States District Judge Troy L. Nunley to 17 years and seven months in prison for possession with intent to distribute heroin, possession with intent to distribute cocaine, possession of a firearm in furtherance of a drug trafficking offense, and being a felon in possession of a firearm, United States Attorney Benjamin B. Wagner announced.
According to court documents, on March 5, 2014, law enforcement officers conducted a probation search of Sewell’s residence and found a .38‑caliber revolver that was fully loaded with live rounds. The kitchen had been converted to a heroin manufacturing operation, and agents found five kilograms of heroin and 500 grams of cocaine. Also in the kitchen were strainers, digital scales, cutting agents, hundreds of baggies, a money counter, and other items used in drug manufacturing and distribution. An AR-15 assault rifle, several other firearms, a cache of ammunition, and approximately $67,000 was also found.
This case was the product of an investigation by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Alameda County Narcotics Taskforce, the San Bernardino Probation Department, and the San Joaquin District Attorney’s Office. Assistant United States Attorney Olusere Olowoyeye prosecuted the case.
Sacramento Woman Sentenced to over 24 Years in Prison for Sex Trafficking of MinorsRead the Press Release
SACRAMENTO, Calif. — Shanntaye Ebony Hicks, 25, of Sacramento, was sentenced today to 24 years and four months in prison for two counts of transportation of a minor with intent to engage in criminal sexual activity, United States Attorney Benjamin B. Wagner announced.
According to court documents, Hicks recruited at least four teenaged victims (aged between 13 and 17 years old) to engage in criminal sexual activity. Hicks posted advertisements soliciting customers to have sex with the teenaged victims, received telephone calls from customers and negotiated prices. She transported the teenaged victims to the customers, and collected money the customers gave the victims. Hicks targeted vulnerable minor victims, some of whom were runaways, befriended them, and induced them to engage in sex acts with strangers by providing them with drugs and alcohol. Hicks also brandished a handgun and used threats of violence to enforce the loyalty of her victims and to prevent them from fleeing from her control. She transported one of her teenaged victims to several cities in California and Nevada with the intent that the minor engage in sex acts for money.
U.S. Attorney Wagner stated: “The sentence imposed today appropriately reflects the very real and lasting harm the defendant inflicted upon her young victims. My office, together with our partners at the Innocence Lost task force, will continue to aggressively investigate and prosecute those engaging in the abuse and sexual exploitation of minors.”
“Perpetrators of these crimes can be male or female. Regardless, those who exploit children and manipulate these victims solely for financial gain will be dealt with to the fullest extent of the law," said Supervisory Special Agent Maria Johnson of the Sacramento field office of the FBI. "We are grateful for the continued partnership that exists among our agencies who are part of the FBI's Child Exploitation Task Force. These investigators are fully committed to identifying and investigating individuals who prey upon our children to end their criminal operations."
This case was the product of an investigation by the FBI’s Child Exploitation Task Force, Innocence Lost National Initiative, which combines special agents of the FBI and detectives of the Sacramento Police Department. Assistance during the investigation was also provided by the Bakersfield Police Department and the Las Vegas Metropolitan Police Department. Assistant United States Attorney Andre M. Espinosa prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Federal Employee Indicted for Receiving Child PornographyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment today against Eric Worrell, 57, of Rancho Cordova, charging him with receipt of child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, a thumb drive found in a hallway outside the offices of the federal Department of Transportation in Sacramento was turned over to investigators, who determined it belonged to Worrell. A forensic review of the thumb drive and Worrell’s work laptop found they contained hundreds of images of child erotica and child pornography.
This case is the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Department of Transportation’s Office of the Inspector General. Special Assistant United States Attorney Josh F. Sigal is prosecuting the case.
Worrell has remained in custody since his arrest on March 19, 2015. If convicted, Worrell 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.
Bakersfield Man Indicted on Federal Firearms ChargesRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Bryson LaPaul Blair, 29, of Bakersfield, charging him with possession of a firearm and ammunition after having been convicted of a felony and domestic violence misdemeanor, United States Attorney Benjamin B. Wagner announced.
According to court documents, during the execution of a search warrant at Blair’s residence, officers found a loaded Russian assault weapon under Blair’s bed and 145 rounds of ammunition. Blair was previously convicted in Kern County of a felony and a misdemeanor spousal abuse and was prohibited from possessing firearms and ammunition.
This case is the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Bakersfield Police Department. The case is part of Project Safe Neighborhoods (PSN), which is the U.S. Department of Justice’s primary initiative to combat gun crime and gang-related violence. Assistant United States Attorney Karen Escobar is prosecuting the case.
If convicted, Blair faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Man Sentenced for Marijuana Operation and Sparking the Nicolls Fire in Sequoia National ForestRead the Press Release
FRESNO, Calif. — Edgardo Fournier, aka Edgardo Fournier-Nigaglioni, 46, of Perris, was sentenced today to six years and 10 months in prison for his involvement in a large‑scale marijuana cultivation operation on federal land in Kern County and for his role in starting the Nicolls Fire, according to U.S. Attorney Benjamin B. Wagner.
In sentencing Fournier, U.S. District Judge Lawrence J. O’Neill ordered Fournier to pay $6,509,329 in restitution to the U.S. Forest Service.
According to court documents, from about April 1, 2014 to July 12, 2014, Fournier helped water and tend 2,090 marijuana plants at a grow site in the Smith Canyon area of the Sequoia National Forest in Kern County. He admitted that on July 11 and 12, he lit fires in the vicinity of the grow site within the boundaries of the federally designated Kiavah Wilderness Area. The fires converged and became known as the Nicolls Fire. The Nicolls Fire destroyed about 1,680 acres of public land causing over $6.5 million of damage. The fire did not damage the marijuana cultivation site, which also caused significant damage to the land and natural resources of the forest.
This case was the product of an investigation by the U.S. Forest Service, the U.S. Bureau of Land Management (BLM), and the Kern County Sheriff’s Office. Assistant United States Attorney Karen Escobar prosecuted the case.
Former Fresno Resident Pleads Guilty to Fraudulent Bonding Scheme Involving Government ContractsRead the Press Release
FRESNO, Calif. — Abel Martin Carreon, 57, formerly of Fresno, pleaded guilty today to one count of mail fraud and one count of aggravated identity theft in connection with a scheme involving surety bonds and government contracts, United States Attorney Benjamin B. Wagner announced
According to court documents, between April 2005 and May 2011, Carreon devised and executed a scheme to defraud the United States and private companies seeking to perform contracted work for the United States. Through his company Tripartite Escrow Corporation (TEC), he offered bonding services to prospective government contractors throughout the United States that included bid bonds to secure a bid on a government contract and performance and payment bonds to insure the work on a government contract.
Surety bonds are required for certain federal government contracts. If a contractor defaults, the surety bonds compensate the government for the financial loss incurred. To be acceptable under federal regulations the bonding company must pledge acceptable assets with a value equal to or exceeding the amount of each bond, and submit a sworn affidavit disclosing the identity of the surety and verifying the existence and acceptability of the assets under penalty of prosecution.
According to the plea agreement, the bond packages Carreon submitted contained false statements and fraudulent documents. He pledged as collateral common stock that did not exist, was substantially less than represented, or was pledged across multiple bonds without full disclosure. He used forged notary stamps and notary signatures and other forged signatures on the bond documents.
Once the false and fraudulent performance and payment bonds were accepted by the contracting government agency and work began under the contract, the government would make payments on the contract to the contractor, including Carreon’s bond premium. The United States and government contractors paid Carreon for false and fraudulent payment and performance bonds, which resulted in a loss of approximately $1,253,000.
Department of Interior, Office of Inspector General Special Agent-In-Charge, David House stated: “This guilty plea represents the Department of Interior's, Office of Inspector General's commitment to pursue fraud involving the Department’s programs and operations.”
“As evidenced by the guilty plea entered into today by Mr. Abel Carreon, we remain steadfast in our commitment to maintaining the integrity of projects funded through Federal Highway Administration programs,” said William Swallow, regional Special Agent-in-Charge of USDOT’s Office of Inspector General. “Working with our law enforcement and prosecutorial colleagues, we will continue to protect the taxpayers’ investment in our nation’s infrastructure from fraud, waste, abuse and violations of law.”
"We remain committed to fighting white collar crime affecting the United States and the General Services Administration," said U.S. General Services Administration Acting Inspector General Robert C. Erickson.
“The Department of Homeland Security (DHS), Office of Inspector General’s (OIG) highest priority is to ensure the integrity of the Department’s programs and operations. Today’s guilty plea by Abel Martin Carreon reaffirms the DHS OIG’s commitment to aggressively pursue, investigate, and hold accountable those who commit fraud against the Federal Emergency Management Agency. Such egregious violations will not be tolerated. The DHS OIG, our law enforcement partners, and the U.S. Attorney’s Office will continue to work tirelessly to bring justice to those who commit such fraud,” stated Roger T. Merchant, Special Agent-in-Charge, Los Angeles Field Office.
“America's Warfighters deserve the very best to perform their jobs and the taxpayers expect nothing less. Fraud committed by defense contractors not only takes away precious resources necessary for the protection of our brave solders, airman and marines, it also undermines the confidence of the American public who demand that tax dollars are used responsibly. This investigation should serve as a warning for those intent on defrauding the U.S. military and American public that the Defense Criminal Investigative Service (DCIS) and our law enforcement partners will pursue these crimes relentlessly,” said Chris Hendrickson, Special Agent in Charge, DCIS, Western Field Office.
This case is the product of an investigation by the U.S. Department of Transportation, Office of Inspector General; the Department of Interior, Office of Inspector General; the Department of Defense, Office of Inspector General; the U.S. Army, Criminal Investigation Division; the U.S. Air Force, Office of Special Investigations; the U.S. Department of Agriculture, Office of Inspector General; the Department of Homeland Security, Office of Inspector General; and the General Services Administration, Office of Inspector General. Assistant United States Attorney Henry Z. Carbajal III is prosecuting the case.
Carreon is scheduled to be sentenced on August 17, 2015, by United States District Judge Anthony W. Ishii. Carreon faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for mail fraud and a mandatory consecutive sentence of two years in prison for aggravated identity theft.
Facebook Predator Sentenced to 29 Years in Prison for Child Pornography and Sexual Extortion OffensesRead the Press Release
SACRAMENTO, Calif. — Jordan James Kirby, 23, of Paradise, was sentenced today by United States District Judge Garland E. Burrell Jr. to 29 years in prison for production of child pornography and enticement of a minor, United States Attorney Benjamin B. Wagner, FBI Special Agent in Charge Monica M. Miller, Butte County District Attorney Michael L. Ramsey, and Paradise Police Chief Gabriela F. Tazzari‑Dineen announced.
According to court documents, between 2011 and 2013, Kirby used various online identities on Facebook to solicit women and juvenile girls for lascivious and sexually explicit photographs, which he would then use them to extort them. Generally, Kirby’s initial posts stated that he was an agent for a modeling agency and offered thousands of dollars to girls for photographs of themselves in their underwear, bikinis, or various stages of undress. As an inducement, Kirby told the girls that he had come into a large amount of money, and sent pictures of himself holding a large wad of cash, or a large amount of cash spread on his computer. After receiving the desired photos, Kirby used the embarrassing pictures to extort or attempt to extort sex acts from victims. On March 6, 2015, Kirby pleaded guilty to two counts of enticement of a minor, three counts of attempted production of child pornography, and one count of attempted enticement of a minor. The victims were between the ages of 10 and 15.
U.S. Attorney Wagner said: “While always reprehensible, on-line exploitation and extortion of under-aged victims inflicts very real and lasting harm upon our community’s most vulnerable victims. We will continue to work together with our federal and local law enforcement partners to bring such predators to justice.”
“Kirby took unlawful and inappropriate pictures of multiple children, using social media as a platform for his crimes, and then extorted an threatened children to obtain more photographs. His is conduct is reprehensible,” said Supervisory Special Agent Monica M. Miller. “Kirby committed his crimes by exploiting the anonymity and distance of internet communications. This case highlights the need for family dialogue about the potential dangers of online interaction. Social media platforms present safety risks that are akin to any public space and all users should know the steps to take to report suspicious activity. In this case, prompt response from the victims’ parents enabled law enforcement to identify Kirby, ceasing his ability to continue to victimize others. We thank our law enforcement partners for the collaborative effort to identify Kirby and ensure that he faced justice for his crimes.”
District Attorney Michael L. Ramsey said: “I appreciate the collaborative work with both the local and federal agencies that resulted in taking a predator off of the streets for the next twenty-nine years.”
Chief Tazzari-Dineen said: “The Paradise Police Department considers the safety of all citizens to be a top priority and it is especially true of children. A predator of young children has been removed from our community. We appreciate the collaboration and assistance of the local FBI Office and the Butte County District Attorney’s Office with this investigation.”
This case was the product of an investigation by the Federal Bureau of Investigation, the Paradise Police Department and the Butte County District Attorney’s Office. Assistant U.S. Attorney Sherry Haus 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.
Butte County Man Is Sentenced for Heroin Distribution and Being A Felon in Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — United States Attorney Benjamin Wagner announced that Seth Michael Bertolini, 44, of Chico, was sentenced Thursday by U.S. District Judge Troy L. Nunley to six years and five months for being a felon in possession of a firearm and for drug trafficking. Bertolini was convicted on January 15, 2015.
This case was the product of an investigation by the Federal Bureau of Investigation, Chico Police Department, and the Butte County Interagency Narcotics Task. Assistant U.S. Attorney Michelle Rodriguez prosecuted the case.
On June 4, 2014, law enforcement in Chico stopped Bertolini for driving with his car’s radio system playing loudly. During the stop, Bertolini emerged from his car animated and agitated. He then turned and fled. After a foot pursuit, Bertolini was caught and found to possess on his person and in his car heroin that was packaged for distribution and a fully loaded Smith and Wesson .32-caliber revolver. During a later search of Bertolini's residence, Bertolini was found to possess additional heroin, trafficking paraphernalia, and another gun, a Ceska Zbrojovka, 7.62 mm, semi-automatic pistol.
Sacramento Attorney Pleads Guilty to Tax EvasionRead the Press Release
SACRAMENTO, Calif. — James Stewart Richards, 69, of West Sacramento, pleaded guilty today to tax evasion, United States Attorney Benjamin B. Wagner announced.
According to court documents, between 1994 and 2003, Richards, a member of the California and Hawaii bar organizations, owed federal income taxes totaling over $170,000, which he did not pay. Instead, he took steps to evade payment of some or all of the taxes he owed. He filed a false “Offer in Compromise” to the IRS that omitted bank accounts and six rental properties. He used a nominee bank account for his own assets. When alerted by the bank that the IRS was making inquiries about the nominee account, Richards called the bank and asked that they provide no records to the IRS. He also withdrew $100,000 from the account in cashier’s checks. Richards purchased a yacht that he registered and titled in nominee’s name in order to conceal the asset. Also, he made false statements about his assets to a bankruptcy court and to the IRS.
This case is the product of an investigation by the Internal Revenue Service-Criminal Investigation. Assistant United States Attorneys Audrey B. Hemesath and Nirav Desai are prosecuting the case.
Richards is scheduled to be sentenced on September 10, 2015, by United States District Judge Morrison C. England Jr. Richards faces a maximum penalty of five years in prison and a $100,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Bureau of Prisons Employee Charged with Sex Trafficking a MinorRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today against Charles Carstersen, 52, of Manteca, charging him with sex trafficking of a minor, United States Attorney Benjamin B. Wagner announced.
According to court documents, between February and March 2015, while Carstersen was employed at the Bureau of Prisons, he recruited a 16-year-old girl to engage in prostitution. He rented hotel rooms for her in the Sacramento area, helped her to post ads online, and bought her clothes. On May 11, 2015, Carstersen was arrested and has been in custody as a flight risk and a danger to the community.
This case is the product of an investigation by the Federal Bureau of Investigation’s Sacramento Child Exploitation Task Force of which the Sacramento Police Department is a member, the U.S. Department of Justice, Office of the Inspector General, and the Roseville Police Department. Assistant United States Attorney Michele Beckwith is prosecuting the case.
If convicted, Carstersen faces 10 years to life in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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.
Chico Man Charged with Filming Sexual Abuse of a ChildRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment today against Nathan Alexander Drury, 36, of Chico, charging him with nine counts of production of child pornography and one count of possession of child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, between January 2013 and December 2014, Drury filmed and photographed sexually explicit images of a prepubescent child. Drury also possessed additional images of children engaged in sexually explicit conduct.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Federal Bureau of Investigation, and the Chico Police Department. Assistant United States Attorney Brian A. Fogerty is prosecuting the case.
Drury has been in custody since he was arrested on March 23, 2015. He is scheduled to be arraigned today before U.S. Magistrate Judge Dale A. Drozd in Sacramento.
If convicted, each of the production of child pornography counts carries a maximum statutory penalty of 30 years in prison. If convicted of the possession of child pornography charge, Drury faces a maximum statutory penalty of 10 years in prison. Each charge in the indictment carries a potential fine of $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; 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 Finds Defendant Guilty in $11.25 Million Investor Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — A federal jury found Troy Stratos, 49, formerly of Los Angeles, guilty today of four counts of wire fraud and two counts of money laundering, in a scheme to defraud, United States Attorney Benjamin B. Wagner announced.
According to evidence presented at trial, beginning in December 2010 and continuing through February 2012, Stratos engaged in a scheme to defraud a financial manager in Pennsylvania of approximately $11,250,000. Tim Burns was in the market to buy Facebook stock, pre-IPO (initial public offering), for some of his clients in 2011. Stratos, who used the alias “Ken Dennis,” because his own name had numerous negative postings on the Internet, told Burns that he represented Carlos Slim, one of the wealthiest individuals in the world. Stratos claimed that Carlos Slim was in the process of purchasing a large block of Facebook shares, and Stratos offered to sell to Burns favorably priced Facebook shares that were in excess of what Carlos Slim was purchasing. Stratos also claimed to be connected with insiders at Facebook, including Mark Zuckerberg, and Facebook’s CFO. Stratos promised increasingly larger amounts of Facebook stock starting at approximately two million shares and up to 40 million shares. Based on the representations by Stratos, Burns sent three wire transfers totaling $11,250,000 to purchase the Facebook stock. The first wire transfer was sent to the client-trust account at Venable LLP, which was the law firm that Stratos had retained. The subsequent wire transfers were sent to bank accounts that Stratos controlled.
Throughout the scheme, Stratos assured Burns that the deal would close at any moment, often promising that the “papers” were about to be signed. Alternatively, Stratos offered to refund to Burns his deposit, even within a few days, but warned Burns that he would regret missing the opportunity to make money.
On December 20, 2011, the Federal Bureau of Investigation arrested Stratos in Los Angeles for a separate fraud scheme. Stratos, through text messages and a telephone call, continued to tell Burns that the deal was real and that he could refund Burns’s money. By this time, Stratos had spent nearly all of the $11.25 million.
The maximum statutory penalty for mail and wire fraud is 20 years in prison and a fine of up to twice the gain or loss from the fraud. The maximum statutory penalty for money laundering is 10 years in prison and a $10,000 fine or twice the value of the criminally derived property. 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.
Stratos is scheduled for trial for a separate scheme on October 5, 2015. According to the charges relating to the separate scheme, Stratos allegedly defrauded a woman of at least $7 million by convincing her that he would manage the proceeds of her divorce by investing them overseas where they would earn a high rate of return. These remaining charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Todd Pickles and Jared Dolan are prosecuting the case.
Tulare County District Attorney’s Investigator Receives Award for His Contribution to the Mission of the Department of JusticeRead the Press Release
FRESNO, Calif. — United States Attorney Benjamin B. Wagner is pleased to announce the 2014 winner of the Eastern District of California Law Enforcement Award for Outstanding Investigator in the Fresno Division. This award is one of four awards presented annually to a law enforcement agency and an officer in each of the Sacramento and Fresno divisions of the Eastern District of California to recognize outstanding collaboration between federal state and local law enforcement in addressing public safety issues in this region.
The 2014 Fresno Division’s Outstanding Law Enforcement Investigator Award goes to Dwayne Johnson of the Tulare County Office of the District Attorney’s Bureau of Investigations for his work with the San Joaquin Valley Mortgage Fraud Task Force (MFTF). In this capacity, Investigator Johnson has worked closely with the Fresno U.S. Attorney’s Office and its partner federal law enforcement agencies in leading several mortgage fraud-related investigations and prosecutions that have targeted large-scale fraud schemes, yielded significant guilty pleas and vindicated the rights of countless victims.
In May 2013, Investigator Johnson was the lead investigator in a fraudulent foreclosure rescue business case. On the basis of a single complaint, Johnson commenced a long-term investigation that ultimately uncovered a fraud scheme that victimized dozens of homeowners in numerous counties, many of whom eventually lost their houses in foreclosure. Johnson prepared and undertook the execution of several search warrants, reviewed thousands of pages of documents, conducted dozens of witness interviews and planned and executed various undercover operations. Juan Ramon Curiel and Santiago Palacios-Hernandez (Case No. 1:13-cr-188 LJO), pleaded guilty in December 2014 and admitted that they had caused more than $2.5 million in losses to more than 50 vulnerable homeowners and financial institutions.
"The financial crisis hit our communities particularly hard and over the past six years our office has taken a leading role in prosecuting those who engaged in mortgage fraud to enrich themselves while harming our economy and driving down the value of our neighborhoods," said U.S. Attorney Wagner. "Our success was only possible because of dedicated, hard-working law enforcement officers like Investigator Johnson. My office, the Eastern District, and Tulare County all owe a great debt to Investigator Johnson and his many skilled and dedicated colleagues in local law enforcement who do the heavy lifting in protecting our communities."
Earlier this year, three of the 2014 awards were presented to the Tehama County Sheriff’s Office and the Fresno County Sheriff’s Office for their outstanding work in cooperation with the U.S. Attorney’s Office. Last week the 2014 award for Outstanding Investigator in the Sacramento Division was presented to Sacramento Police Department’s Detective Derek Stigerts for his work investigating crimes involving the sex trafficking of minors.
Shafter Man Sentenced to over 17 Years in Prison for Methamphetamine TraffickingRead the Press Release
FRESNO, Calif. —Santos Acevedo Gutierrez, 41, of Shafter, was sentenced today by United States District Judge Lawrence J. O’Neil to 17 years and six months in prison and the forfeiture of $10,123 for possession with intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.
According to court documents, on April 30, 2014, law enforcement officers executed a search warrant at Gutierrez’s home in Shafter and seized approximately four pounds of methamphetamine as well as a digital scale, packaging materials and over $10,000 in United States Currency. Gutierrez was on federal supervised release after serving a prison sentence for a previous federal drug felony conviction at the time of the search.
“As this sentence makes clear, trafficking methamphetamine is a serious offense that will be punished with the fullest extent of the law,” said Michael Toms, resident agent in charge of HSI Bakersfield. “Left unchecked, this highly dangerous substance destroys lives and wreaks havoc on entire communities. HSI, together with its local law enforcement partners, is committed to using every tool and authority at its disposal to combat the menace posed by meth.”
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Kern County Sheriff’s Office. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
Former Bakersfield Real Estate Agent Sentenced for Mortgage Fraud SchemeRead the Press Release
FRESNO, Calif. — Arlene Jeanette Mojardin, 32, of Bakersfield, was sentenced today by United States District Judge Anthony W. Ishii to two years and six months in prison for conspiring to commit bank fraud, mail fraud, and wire fraud, in connection with a mortgage fraud scheme in Bakersfield, United States Attorney Benjamin B. Wagner announced.
According to court documents, from 2007 to 2010, Mojardin conspired with others to use straw buyers to purchase residential properties in Bakersfield. They paid straw buyers to purchase properties developed by Jara Brothers Investments (JBI) and Pershing Partners LLC and funded the purchases using loans they obtained based on false and fraudulent loan applications. The loan applications contained false statements concerning the straw buyers’ employment status, income, assets, intent to occupy the properties as their personal residences, and the source for the down payments for the purchase of the properties. The conspirators concealed from the lenders that the property developers funded some down payments. They submitted false supporting documentation to lenders such as false and altered bank account statements purporting to show that the straw buyers had high bank account balances, false verifications of the straw buyers’ bank account funds, false verifications of rent purporting to be from the straw buyers’ landlords, false pay stubs, and false verifications of employment.
Mojardin was a licensed real estate agent and handled many of the real estate transactions in furtherance of the conspiracy. She was also employed at relevant times at JBI, was a property buyer from Pershing Partners on at least two of the real estate transactions in the conspiracy, and obtained loans based on false and fraudulent information. Mojardin received proceeds from the conspiracy including payments for purchasing property as a nominee buyer and payments for acting as the real estate agent on many of the other transactions in the conspiracy. Mojardin admitted she caused lenders approximately $3,713,600 in losses due to her role in the conspiracy.
This case is the product of a joint investigation by the Internal Revenue Service - Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorneys Kirk E. Sherriff, Henry Z. Carbajal III, and Megan A. S. Richards are prosecuting the case.
Co-defendant Antonio Perez-Marcial was sentenced on May 12, 2014, to three years and 10 months in prison for his role in the conspiracy. Co-defendant Candace Gonzales previously pleaded guilty to conspiracy to commit bank fraud, mail fraud, and wire fraud, and her sentencing is set for June 8, 2015. Co-defendant Ricardo Salinas previously pleaded guilty to bank fraud, and his sentencing is set for June 29, 2015. Co-defendant Melissa Jara pleaded guilty to wire fraud and her sentencing is set for June 22, 2015. Co-defendants Eliseo and Sergio Jara previously pleaded guilty to conspiracy to commit bank fraud, mail fraud, and wire fraud, and their sentencing hearings are set for June 22, 2015. Co-defendants Lucia and Joseph Chavez previously pleaded guilty to conspiracy to commit bank fraud, mail fraud, and wire fraud and their sentencing hearings are set for July 20, 2015.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
Ripon Man Sentenced to 14 Years in Prison for Methamphetamine Trafficking ConspiracyRead the Press Release
SACRAMENTO, Calif. — Jamie Rangel, 27, of Ripon, was sentenced today by United States District Judge Garland E. Burrell Jr. to 14 years in prison for conspiring to distribute methamphetamine and for possessing methamphetamine with the intent to distribute, United States Attorney Benjamin B. Wagner announced. On May 1, 2015, Rangel’s co-defendant, Daniel Covarrubias, 23, of Ripon, was sentenced to eight years and five months in prison.
According to court documents, Rangel and Covarrubias were members of a methamphetamine distribution conspiracy in the city of Ripon. Over the course of two months, undercover agents purchased approximately 1.387 kilograms of methamphetamine from them. Rangel and Covarrubias were arrested in Modesto at the conclusion of the operation.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Ripon Police Department, the Stockton Police Department, and the San Joaquin Sheriff’s Office. Assistant United States Attorney Olusere Olowoyeye prosecuted the case.
Yuba City Woman Pleads Guilty to Defrauding Staffing Agency of More than $500,000Read the Press Release
SACRAMENTO, Calif. — Denise Wasicki, 40, of Yuba City, pleaded guilty today to two counts of mail fraud in a scheme to defraud a staffing agency out of more than $500,000 in an employee recruitment scheme for a fake business, United States Attorney Benjamin B. Wagner announced.
According to court documents, Wasicki operated a scheme to defraud a staffing agency. In June 2009, Wasicki was employed by a staffing and payroll services agency based in Hanover, Maryland to fill a temporary position at a hospital in Yuba City. When she was terminated by the hospital, Wasicki created a fictional company called Healthcare Quality Management Group (HQMG) that had a fictional client that was purportedly a medical office in Yuba City. Posing as “Jackie Stemmons,” Wasicki engaged the staffing agency to provide staff for the medical office and gave them her own name as the person who should be hired. Because Wasicki had been employed by the agency previously, they were able to expedite her hiring and ultimately placed her in an office manager position.
Between July 28, 2009, and May 12, 2010, Wasicki sent time cards and requests for expense reimbursements to the agency for herself and for an assistant office manager at the fictional medical office. As part of the scheme, Wasicki sent the agency fraudulent checks to reimburse it for payroll services it provided, all of which were drawn on fictitious accounts and all of which bounced. As a result of her actions, the agency sustained a loss of more than $500,000.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney André M. Espinosa is prosecuting the case.
Wasicki is scheduled to be sentenced by Chief U.S. District Judge Morrison C. England Jr. on August 6, 2015. The maximum statutory penalty for each violation of wire fraud is 20 years in prison and a $250,000 fine. 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.
Two Fresno County Men Indicted for Firearms ChargesRead the Press Release
FRESNO, Calif. — A federal grand jury has returned two separate indictments against two Fresno County men for being felons in possession of a firearm. United States Attorney Benjamin B. Wagner announced.
In the first case, Adrian Delgado 31, of Mendota, was charged with being a felon in possession of a firearm and possession of a firearm in a school zone. According to court documents, on March 17, 2015, officers from Mendota Police Department encountered Adrian Delgado near Mendota Elementary School. Officers found a loaded Taurus, .327-caliber handgun in Delgado’s waistband. Delgado said he had just come from his child’s school. Delgado has prior felony convictions.
In the second case, Steven Estrada, 29, of Fresno, was charged with being a felon in possession of a firearm. According to court documents, on April 23, 2015, Fresno Police Department officers responded to a report of an individual who had a gun behind an abandoned house. Officers arrived and encountered Estrada coming out of the garage behind an abandoned house. They located the gun that Estrada is charged with possessing in the garage. Estrada has prior felony convictions.
If convicted, Delgado faces up to 15 years in prison and a $500,000 fine, and Estrada faces up to 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. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
These cases are the product of investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Fresno 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. The cases are being prosecuted by Assistant U.S. Attorney Kimberly Sanchez.
Three Fresno Residents Indicted for Methamphetamine TraffickingRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Fresno residents Eduardo Fernandez, aka, Lalo, aka, Flavio Rios, 35; Miguel Medina, 62; and Alexis Antonio Alvarez Guzman, 19, charging them with conspiracy to distribute and possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.
According to court documents, in April 2015, Fernandez received a shipment of methamphetamine from Mexico with Medina’s assistance. Fernandez took it to a residence in Visalia where Guzman was located. When agents served a search warrant at the residence, they found 16 pounds of methamphetamine.
This case is the product of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation involving the Drug Enforcement Administration, Fresno Police Department, Madera Narcotic Enforcement Task Force, Visalia Police Department, Tulare County Sheriff’s Office, and California Highway Patrol. OCDETF is a program that facilitates joint investigative work by federal, state, and local law enforcement agencies. Assistant United States Attorney Kimberly A. Sanchez is prosecuting the case.
If convicted, Fernandez faces a maximum statutory penalty of life in prison and a $30 million fine. Medina and Guzman are facing a maximum penalty of 20 years in prison on each of two counts, and a $1 million fine on each of two counts. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Stockton Man Sentenced to 15 Years in Prison for Drug Trafficking and Firearm ChargesRead the Press Release
SACRAMENTO, Calif. — Robert Vargas, 29, of Stockton, was sentenced today by United States District Judge Morrison C. England Jr. to 15 years in prison for conspiring to distribute and to possess with intent to distribute methamphetamine, possession with intent to distribute MDMA, and possession of a firearm in furtherance of a drug trafficking crime, United States Attorney Benjamin B. Wagner announced.
According to court documents, between August and September 2013, Vargas and co-defendant Robert Guerena, 21, of Stockton, met with an undercover agent on four separate occasions to conduct methamphetamine transactions. Each of these meetings occurred in a Walmart parking lot in Stockton, and with each subsequent meeting, the amount of methamphetamine provided by the defendants to the undercover officer agent increased. On September 19, 2013, the defendants arrived at the Walmart parking lot intending to provide the undercover agent with two pounds of methamphetamine. Before the transaction was completed, both defendants were arrested. In all, the defendants provided the undercover agent with approximately 1.2 kilograms of pure methamphetamine.
A search warrant executed at Vargas’ residence recovered a Glock pistol, 25 grams Ecstasy (MDMA) pills (including packaging), multiple digital scales, multiple gun magazines (including a high capacity magazine), and two bullet proof vests.
On April 23, 2015, Guerena was sentenced to 11 years and three months in prison.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Stockton Police Department, and the San Joaquin Sheriff’s Office. Assistant United States Attorney Olusere Olowoyeye prosecuted the case.
Fresno Men Indicted on Methamphetamine Trafficking ChargesRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Fresno residents Armando Perez, 50, and Christian Sandoval, 22, charging them with conspiracy to distribute and possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.
According to court documents, on April 9, 2015, Perez provided an undercover officer with approximately one ounce of methamphetamine. On April 21, 2015, Perez provided the undercover officer with approximately one pound of methamphetamine. On May 7, 2015, Sandoval drove Perez to a meeting with an undercover officer, and Perez provided the officer with approximately 10 pounds of methamphetamine.
This case is the product of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation involving the Drug Enforcement Administration and Fresno County Sheriff’s Office. OCDETF is a program that facilitates joint investigative work by federal, state, and local law enforcement agencies. Assistant United States Attorney Kimberly A. Sanchez is prosecuting the case.
If convicted, Perez faces a maximum statutory penalty of life in prison and a $35 million fine. Sandoval is facing a maximum 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; each defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Chicago Man Sentenced to 10.5 Years in Prison for Sex Trafficking of Underage Girl in Sacramento AreaRead the Press Release
SACRAMENTO, Calif. — Marquist Piere Bradford, 29, of Chicago, was sentenced today to 10 and a half years in prison for sex trafficking of minors, U.S. Attorney Benjamin B. Wagner announced.
According to court documents, Bradford recruited a 15-year-old girl to travel from Fresno to Sacramento where she was used by Bradford as part of a prostitution business from January 19 through February 5, 2012. Bradford maintained an apartment in Rancho Cordova that he used as a base of operations for a prostitution business that spanned the Sacramento and Bay areas, as well as cities outside California. At least two of Bradford’s victims were under the age of 18. Bradford fled from Sacramento to the Chicago area after he became aware of law enforcement’s investigation of this case.
US Attorney Wagner stated: “The U.S. Attorney’s Office is committed to ensuring that the weakest and most vulnerable in our society receive the full protections to which they are entitled as Americans. Few are weaker and more vulnerable than the child victims of commercial sexual exploitation. This office is attacking the problem with federal, state and local law enforcement agencies. Since the beginning of 2011, 20 defendants have been sentenced in federal court for this offense with sentences ranging from five to 50 years in prison.”
“Exploiters like Bradford profit from trafficking vulnerable minors, using violence and threats to control the victims,” said Supervisory Special Agent Maria Johnson of the FBI's Sacramento field office. “The FBI and our task force partners are committed to recovering exploited minors and ensuring their traffickers face justice.”
Sacramento County Sheriff Scott Jones stated: “This resolution demonstrates the commitment of the Sacramento County Sheriff's Department in combatting human trafficking in our region, and the importance of ongoing collaborations between law enforcement agencies on all levels. Crimes involving human trafficking and the Internet occur in a dynamic environment that requires advanced investigative techniques. This case was an opportunity to stem the flow of crimes affecting human trafficking victims nationwide.”
This case was the product of an investigation by the Sacramento FBI Innocence Lost Task Force and the Sacramento County Sheriff’s Department. Assistant United States Attorney Matthew G. Morris prosecuted the case.
Attorney General Loretta E. Lynch Appoints U.S. Attorney Wagner to Co-chair White Collar/Fraud SubcommitteeRead the Press Release
SACRAMENTO, Calif. — The United States Attorney’s Office announced today that Attorney General Loretta E. Lynch has appointed U.S. Attorney Benjamin B. Wagner to serve as co-chair of the White Collar/Fraud Subcommittee of the United States Department of Justice’s Attorney General’s Advisory Committee (AGAC).
Created in 1973, the AGAC provides advice and counsel to the Attorney General and other senior leaders in the U.S. Department of Justice on policy, management and operational issues, helping to shape policies to accomplish the Department’s core mission of serving justice. The White Collar/Fraud Subcommittee reports to the AGAC and represents the voice of the 93 U.S. Attorneys in matters relating to white collar crime. U.S. Attorney Wagner’s co-chair on the White Collar/Fraud Subcommittee is Melinda Haag, the U.S. Attorney for the Northern District of California.
Wagner previously served for three years on the AGAC after being appointed by Attorney General Eric Holder in May 2010. Wagner continues to serve on several AGAC subcommittees, including those focusing on Civil Rights and Terrorism and National Security.
Sacramento Police Detective Receives Award for His Contribution to the Mission of the U.S. Attorney’s Office and the Department of JusticeRead the Press Release
SACRAMENTO, Calif. — United States Attorney Benjamin B. Wagner is pleased to announce the 2014 winner of the Eastern District of California Law Enforcement Award for Outstanding Investigator in the Sacramento Division. This award is one of four awards presented annually to a law enforcement agency and an officer in the Sacramento and Fresno divisions of the Eastern District of California to recognize outstanding collaboration between federal, state, and local law enforcement in addressing public safety issues in this region.
The winner of Sacramento Division’s Outstanding Investigator Award is Sacramento Police Detective Derek Stigerts for his work investigating crimes involving the sex trafficking of minors. Over the years, Detective Stigerts has worked on some of the most significant sex trafficking cases prosecuted by the U.S. Attorney’s Office. Two of those cases were brought against violent pimps Deandre Brown and Steven McKesson and resulted in lengthy federal prison sentences. Just last year, Detective Stigerts was instrumental in the conviction of Percy Love, a sex trafficker currently awaiting sentencing by the district court. None of those results would have been possible without Detective Stigerts’ dedication and expertise. He is a nationally recognized expert on sex trafficking crimes, and he frequently provides training to other law enforcement agencies. Even more important is Detective Stigerts’ unseen work with the victims of these crimes, helping them to reach the point where they can tell their stories and move forward with their lives.
U.S. Attorney Wagner stated: “It is my honor to recognize Derek Stigerts for the incredibly difficult and important work that he does. He brings some of our most dangerous criminals to justice, and he protects and assists some of the most vulnerable members of our community. It is because of Derek’s and his colleagues’ hard work that the Eastern District of California is seen as a national leader in the investigation and prosecution of the commercial exploitation of children. We thank him for his service.”
Earlier this year, two of the 2014 awards were presented to the Tehama County Sheriff’s Office and the Fresno County Sheriff’s office for their outstanding work in cooperation with the U.S. Attorney’s Office. The fourth and final award winner will be announced next week.
Defendant Sentenced to over a Year in Prison for Growing Marijuana and Destruction of the Plumas National ForestRead the Press Release
SACRAMENTO, Calif. — Alejandro Soto-Silva, 24, a Mexican national, was sentenced today by United States District Judge Kimberly J. Mueller to one year and six months in prison and restitution of $9,572 for growing marijuana and for depredation of public lands, United States Attorney Benjamin B. Wagner announced.
According to court documents, on July 30, 2014, a team of Plumas County Sheriff’s Office deputies and U.S. Forest Service agents raided a large marijuana cultivation site near the Soda Creek drainage on the Plumas National Forest. After entering the marijuana cultivation site, agents and deputies observed Soto-Silva nearby. Shortly after spotting Soto-Silva, deputies and agents arrested him in an area of the marijuana cultivation site used to process marijuana. Close to where they arrested Soto-Silva, law enforcement observed 30-40 pounds of processed marijuana in black plastic bags.
Law enforcement surveyed the marijuana cultivation site and counted 3,724 growing marijuana plants. They also documented habitat destruction to the Plumas National Forest caused by activities associated with marijuana cultivation, including trail building, forest clearing, irrigation, pesticide use, and extensive garbage throughout the cultivation site. Further, law enforcement observed water being diverted from forest waterways in order to cultivate marijuana. Rehabilitating and remediating the National Forest habitat injured by the marijuana cultivation will cost the U.S. Forest Service at least $9,572.
This case was the product of an investigation by the Plumas County Sheriff’s Office and the U.S. Forest Service. Assistant United States Attorney Christiaan Highsmith prosecuted the case.
Guilty Pleas in Bakersfield Drug Distribution RingRead the Press Release
FRESNO, Calif. —Arnoldo Delgado Garcia (Delgado), aka Fabricio Rene Delgado-Perea, 35, a Mexican national, pleaded guilty on Monday to conspiring to distribute and possess with intent to distribute methamphetamine and heroin, and in the same case Erik Gesus Rivera, 28, of Bakersfield, pleaded guilty to possession with intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.
According to court documents, from May 2013 through January 2014, Delgado and Rivera regularly distributed methamphetamine and heroin to various drug dealers and users in Kern County. During this time period, Delgado admitted that he distributed between 15 and 45 kilograms of methamphetamine and over 1,000 grams of a mixture or substance containing a detectable amount of heroin. Rivera admitted in his plea agreement that he was involved in the distribution of between 15 and 45 kilograms of methamphetamine, and on January 29, 2014, he was found to be in possession of over a pound of crystal methamphetamine and several ounces of heroin that were intended for distribution. According to the plea agreement, Delgado was the supplier for co-conspirator Jose Cruz, 28, of Bakersfield. On April 27, 2015, Cruz pleaded guilty to the conspiracy charge.
This case is the product of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Drug Enforcement Administration, Kern County Sheriff’s Office, and the Southern Tri-County High Intensity Drug Trafficking Area Task Force. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
Cruz is scheduled to be sentenced by United States District Judge Lawrence J. O'Neill on July 20, 2015. Delgado and Rivera are scheduled to be sentenced by Judge O'Neill on August 3, 2015. Cruz and Delgado face a maximum statutory penalty of life in prison and a $10 million fine. Rivera faces a maximum statutory penalty of 40 years in prison and a $5 million fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Tulare County Woman Arrested for Tax and Investment FraudRead the Press Release
FRESNO, Calif. — Marie E. Sherrill, 54, of Porterville, was arrested today on a 34‑count indictment charging her with wire fraud, money laundering, aiding the preparation of false tax returns, and corruptly interfering with the administration of the internal revenue laws, United States Attorney Benjamin B. Wagner announced.
According to court documents, Sherrill was a registered tax return preparer operating a bookkeeping and tax preparation business in Porterville under the name Sherrill Financial Services. Between January 2011 and December 2014, Sherrill allegedly prepared false tax returns for her clients containing false deductions to maximize their tax refunds, causing an alleged loss to the IRS of $255,901. She allegedly attempted to obstruct IRS audits of her tax-clients and prepared and filed tax returns using someone else’s electronic filing number.
The indictment also alleges that Sherrill used the intimate financial knowledge she gained about her various clients to identify potential victims she could lure into an investment fraud scheme. She allegedly told victims of this scheme that their money would be put into “pooled investments” with the money of other investors, to earn a high rate of return. The money was, in fact, never put into any investment, but was used instead to pay Sherrill’s personal expenses or to make lulling payments to earlier investors, to make them believe their money was earning a profit. The indictment alleges that as a result of this scheme, at least 17 investment victims were defrauded of at least $1.3 million.
This case is the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Mark J. McKeon is prosecuting the case.
If convicted, Sherrill faces a maximum statutory penalty of 20 years in prison on each count of wire fraud; 10 years in prison on each count of money laundering; and three years in prison on each tax charge. She also faces a $250,000 fine on each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Sacramento Man Sentenced to Two Years in Prison for Marriage Fraud SchemeRead the Press Release
SACRAMENTO, Calif. —Sippy Lal, 62, of Sacramento, was sentenced to two years in prison today for conspiring to induce aliens to illegally enter the United States for private financial gain, United States Attorney Benjamin B. Wagner announced.
According to court documents, from at least October 24, 2006, until January 10, 2012, Lal and co-defendants Mamta Sharma, 37, and Rani Singh-Lal, 30, both of Sacramento, were involved in an elaborate immigration-fraud scheme involving foreign nationals from India who paid to enter into sham engagements or marriages with locally recruited U.S. citizens in an effort to legalize their immigration status. The citizens recruited by Lal were paid thousands of dollars to fly to India, meet and take pictures with a purported spouse, and sometimes enter into actual marriages (albeit often using aliases). Thereafter, fraudulent petitions were filed with the United States seeking visas allowing the Indian citizens to enter and reside within the United States. On at least one occasion, after an alien entered the country on a fraudulent fiancé visa procured through the scheme, Lal paid a U.S. citizen to further participate by entering into a sham marriage with the alien in Sacramento.
Sharma used various aliases to pose as a U.S. citizen in five different petitions filed since 2008, despite the fact that she is not a U.S. citizen and despite the fact that she was married to Lal throughout that time period. Similarly, Singh-Lal posed as the petitioner in three different petitions, all filed with slight variations of her true name. According to court documents, over 25 fraudulent petitions were submitted to immigration authorities as a result of the conspiracy, and at least nine Indian nationals entered the United States and were, at least for some period of time, able to avoid detection.
“At U.S. Citizenship and Immigration Services, a team of three fraud officers looked into the allegations, and developed information to provide to Immigration and Customs Enforcement that helped to get an admission of guilt,” said District Director Mari Carmen Jordan.
“Marriage fraud is not a storyline for a Hollywood movie, it’s a federal crime, and unfortunately one that is all too common,” Tatum King, acting special agent in charge for ICE Homeland Security Investigations (HSI) in northern California. “As this case makes clear, HSI will aggressively target those who conspire to corrupt the integrity of America’s legal immigration system for personal profit, putting our nation’s security at risk in the process.”
Sharma and Singh-Lal previously pleaded guilty and were sentenced to of 24 months and 27 months in prison, respectively.
This case was the product of an investigation U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), United States Citizenship and Immigration Services – Fraud Detection and National Security Unit, and the California Department of Justice – Bureau of Investigation and Intelligence. Assistant United States Attorneys Michele Beckwith and Philip Ferrari prosecuted the case.
Two Plead Guilty to Sex Trafficking of a MinorRead the Press Release
FRESNO, Calif. — Fresno residents Michael Anthony Andrade, 34, and Javier Solis, 29, pleaded guilty today to sex trafficking of a minor, United States Attorney Benjamin B. Wagner announced.
According to court documents, Andrade and Solis forced two girls, ages 15 and 17, to prostitute themselves first in Fresno and then in San Luis Obispo. In addition, the 15‑year-old girl was taken to a tattoo parlor in Fresno where the defendants’ nicknames were tattooed on her, one name on each shoulder.
Court documents further reflect the 17-year-old, a runaway, spoke with Fresno Police officers on October 24, 2013, after her mother brought her home from San Luis Obispo. While being interviewed, she told officers about the 15-year-old who was still in San Luis Obispo under the control of the defendants as well as the motel where she was staying. In response, the San Luis Obispo Police Department was contacted, and officers were able to successfully remove her from that location.
Solis is scheduled to be sentenced on August 10, 2015, and Andrade is scheduled to be sentenced on August 17, 2015. Each faces a sentence of 10 years to life in prison and a $250,000 fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the Federal Bureau of Investigation, the Fresno Police Department, the San Luis Obispo Police Department and the San Luis Obispo District Attorney’s Office. Assistant United States Attorneys Michael Frye and Mia Giacomazzi are prosecuting the case.
Lodi Woman Sentenced to 7½ Years in Prison for Distributing MethamphetamineRead the Press Release
SACRAMENTO, Calif. — Peggy Babb, 55, of Lodi, was sentenced today by United States District Judge Troy L. Nunley to seven years and eight months in prison for distribution of methamphetamine and violating the terms of her supervised release, United States Attorney Benjamin B. Wagner announced.
According to court documents, on November 6, 2014, Babb sold approximately 118 grams of crystal methamphetamine to an individual working with law enforcement. She was arrested soon thereafter. At the time of her arrest, Babb was serving a term of supervised release following a nearly 10-year prison term for a federal drug trafficking felony she committed in 2003.
Judge Nunley sentenced Babb to 65 months in prison for methamphetamine distribution and 27 months in prison for violating the terms of her supervised release, which prohibited Babb from engaging in illegal conduct while under Court supervision. Babb has been in custody since her arrest.
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Lodi Police Department. Assistant United States Attorney Christiaan Highsmith prosecuted the case.
Six Defendants Convicted in Mortgage Fraud Scheme After 12-Day TrialRead the Press Release
SACRAMENTO, Calif. — After a 12–day trial, a federal jury today found six defendants guilty of all counts of wire fraud in connection with a mortgage fraud scheme, United States Attorney Benjamin B. Wagner announced.
Irina Markevich, 30, of Rio Linda; Anatoliy Markevich, 35, of Sacramento; and Marina Pukhkan, 53, of Rio Linda, were each convicted of two counts of wire fraud. Daniil Markevich, 38; his wife Svetlana Markevich, 38, both of Escondido; and Alex Markevich, 40, of Rio Linda, were each convicted on one count of wire fraud.
According to evidence presented at trial, between February 2007 and March 2008, the defendants each obtained home loans using fraudulent loan applications and related documents that contained false information about their income, assets, bank accounts, and intent to occupy the residences. The proceeds of the fraud scheme were derived from inflated purchase prices and payments for fake construction work that never in fact took place.
All together the defendants obtained over $5 million in home loans for six properties in Roseville, Sacramento, and West Sacramento, and then made only between three and six payments before letting the loans go into default. Although their loan applications claimed that they individually made approximately $190,000 to $426,000 per year, the defendants’ tax returns showed that they actually made only between about $3,000 and $22,000 in 2007, the year they purchased the homes.
Each of the properties purchased by the defendants was foreclosed upon within about one year of the purchase date. For acting as straw buyers in this mortgage fraud scheme, the defendants were collectively compensated hundreds of thousands of dollars and purchased such things as a Lincoln Navigator and a limousine with the proceeds. The total fraud proceeds to them, other family members, and other participants in the scheme was in excess of $700,000.
This case is the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. Assistant United States Attorney Christopher S. Hales and Special Assistant United States Attorney E. Kate Patchen are prosecuting the case.
All of the defendants are scheduled to be sentenced by United States District Judge John A. Mendez on August 11, 2015. Each defendant faces a maximum statutory penalty of 20 years in prison and a $250,000 fine on each count of conviction. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Stanislaus County Resident Arrested for Tax EvasionRead the Press Release
FRESNO, Calif. — Frank A. Bilan, 66, of Lodi, was arrested today on a three-count indictment charging him with one count of corrupt endeavor to obstruct and impede the administration of the internal revenue laws and two counts of failing to file tax returns, United States Attorney Benjamin B. Wagner announced.
According to court documents, Bilan, who formerly lived in Newman in Stanislaus County, earned income as a salaried engineer and through his engineering consulting business. However, Bilan did not timely file tax returns for tax years 2001 through 2009. When the IRS sent correspondence to Bilan regarding past due taxes, Bilan responded by submitting fictitious financial instruments titled “Money Order” or “Money Order Private Issue” in purported payment of his tax liabilities, attempting to file false purported income tax returns, and falsely reporting on an IRS form the discharge of monies owed by Bilan to the IRS. Bilan also failed to file income tax returns for tax years 2008 and 2009. The indictment alleges that between 2005 and 2009, Bilan received over $900,000 in income.
This case is the product of an investigation by the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Henry Z. Carbajal III is prosecuting the case.
If convicted of a corrupt endeavor to obstruct and impede the administration of the internal revenue laws, Bilan faces a maximum statutory penalty of three years in prison and a $250,000 fine. The maximum statutory penalty for willful failure to file a tax return is up to one year in prison and a $100,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Fugitive Sentenced to over 15 Years in Prison for Bank Fraud and Failure to AppearRead the Press Release
SACRAMENTO, Calif. — Niesha Nicole Jackson, 35, was sentenced today by United States District Judge Kimberly Mueller to 15 years and seven months in prison for bank fraud and failure to appear for sentencing, United States Attorney Benjamin B. Wagner announced. Jackson had failed to appear for sentencing on the bank fraud conviction in 2011 and had been living as a fugitive until April 2014.
On July 30, 2009, a federal grand jury indicted Jackson on one count of conspiracy to commit bank fraud and one count of bank fraud. According to court documents, Jackson was part of a credit card scheme that netted over one million dollars in losses to 37 banks in 2007 and 2008. Operating from California, the scheme’s organizers sent runners to Alabama, Arizona, Illinois, Indiana, Montana, New Mexico, Ohio, Oklahoma, and Texas to use prepaid credit cards at banks for cash advances. Although the cards only had small amounts of money available, the runners would tell the bank tellers to call a toll-free number that was controlled by Jackson or another co-conspirator. Jackson, posing as a card services representative, would mislead the bank employee into believing that there were thousands of dollars available on the card, and then would instruct the teller what buttons to press on the card terminal in order to make the transaction go through. After receiving the cash, the runner would keep a portion, and the rest of the fraudulently obtained funds would go to the organizers in the Sacramento area. Jackson pleaded guilty in March 2010, but then failed to appear at her sentencing.
While she was a fugitive, Jackson was featured on CNBC’s program “American Greed: The Fugitives” and labeled as the “Bank Robbing Babe.” In April 2014, after receiving information that Jackson was in Fairfield, the Pacific Southwest Regional Fugitive Task Force, composed of U.S. Marshals and state and local agencies, set up surveillance and arrested her at a hotel. When Jackson was arrested, she had in her possession jewelry, a Cartier wristwatch, five pairs of luxury-brand shoes, 27 luxury-brand purses, and a T-shirt with “BR Babe” printed on it.
At sentencing today, Jackson addressed the Court and said that she had panicked on the day of her sentencing, and while on the run, she knew that one day it “would all come to an end.” Judge Mueller commented that in 2011, she had been inclined to impose a 10‑year sentence on Jackson, but that today, a longer sentence was necessary to send a message to defendants who might think about absconding. The judge said that even if Jackson had panicked on the day of sentencing, “she had plenty of time to think about it.” Thus, the Court imposed an increased sentence of 12 and a half years for the bank fraud and an additional, consecutive three years and one month for the charge of failure to appear.
This case was the product of an investigation by the U.S. Secret Service and the Federal Bureau of Investigation with assistance from police and sheriff’s departments in several states. Seven other defendants have previously been convicted and sentenced for their roles in the conspiracy. Assistant United States Attorney Matthew D. Segal prosecuted the case.
Shafter Man Pleads Guilty to Cocaine SmugglingRead the Press Release
FRESNO, Calif. — A Shafter man pleaded guilty today to conspiring to import, distribute, and possess with intent to distribute 38 kilograms, or about 84 pounds, of cocaine, United States Attorney Benjamin B. Wagner announced.
Jimmy Gil, aka Joselin Jimelet Gil Sanchez, aka Joselin Gil, aka Gilberto Sanchez, 35, of Shafter, pleaded guilty to conspiring to smuggle cocaine with Jose Luis Montoya-Salazar, aka Rafael Salazar-Sanchez (Montoya), 42, of Mexico City, and Luis Ricardo Eslava-Corral (Eslava), 42, of Sinaloa, Mexico. As part of the plea agreement, Gil will forfeit $3.1 million in cash that drug agents seized during the investigation of the case.
According to court documents, Gil conspired with Eslava, the driver of a tractor trailer containing cocaine smuggled into the United States from Mexico at the Otay Mesa Port of Entry, to a location in Bakersfield. After Gil took possession of the tractor trailer, he and Montoya began unloading 18 one-kilogram packages of cocaine from a hidden compartment in the underside of the tractor trailer and placing the cocaine in Montoya’s vehicle. Gil and Montoya were arrested before they were able to unload 20 more kilograms of cocaine concealed in the tractor trailer. Follow-up investigation resulted in the seizure of $3,104,661 in cash hidden in an asphalt roller at another location in Bakersfield. The seized cocaine has a street value of over $3 million.
Gil is scheduled to appear for sentencing before U.S. District Judge Lawrence J. O’Neill in Fresno on July 27, 2015. Gil faces a mandatory minimum statutory penalty of 10 years in prison, a maximum statutory penalty of life in prison and a $10 million fine. Eslava previously entered a guilty plea and is scheduled for sentencing on May 11, 2015. Any sentence imposed 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 against Montoya are still pending and are only allegations; Montoya is presumed innocent until and unless proven guilty beyond a reasonable doubt. Montoya, if convicted, and Eslava 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 U.S. Drug Enforcement Administration, Southern Tri-County High Intensity Drug Trafficking Area (HIDTA) task force, Kern County Sheriff’s Office, Tulare County Sheriff’s Office, and Bakersfield Police Department. Assistant United States Attorney Karen Escobar is prosecuting the case.
Fresno Man Sentenced to 10 Years in Prison for Possessing Child PornographyRead the Press Release
FRESNO, Calif. — Daniel James Owen, 28, of Fresno, was sentenced today by United States District Judge Anthony W. Ishii to 10 years in prison for possessing child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, on December 23, 2012, Owen possessed eight separate images depicting minors engaged in sexually explicit conduct. The images also involved the portrayal of sadistic, masochistic, and other depictions of violence, and included depictions of pre-pubescent minors. Owen pleaded guilty to this charge on February 27, 2015. In light of a prior conviction, Owen faced a minimum statutory sentence of 10 years in prison.
This case was the product of an investigation by the Central California Internet Crimes Against Children Task force, specifically the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Fresno County Sheriff’s Office. Assistant United States Attorney Brian W. Enos prosecuted the case.
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 Fresno Police Department Detective and Fresno Marijuana Trafficker Sentenced to Federal Prison for Bribery ConspiracyRead the Press Release
FRESNO, Calif. — Derik Carson Kumagai, 41, of Fresno, was sentenced today by United States District Judge Anthony W. Ishii to two years in prison for conspiring to commit bribery, United States Attorney Benjamin B. Wagner announced. Kumagai was ordered to self-surrender on June 12 at 2:00 p.m. to begin serving his sentence.
In addition, co-defendant Saykham Somphoune, aka Oat, 41, also of Fresno, was sentenced to time served, which was 13 months in jail for his role in the bribery conspiracy. Both defendants were ordered to pay $13,962 in restitution.
According to court documents, beginning in April 2012, federal law enforcement agents were investigating a group of individuals that included Somphoune and one of his associates, for suspected cultivation and distribution of marijuana. In October and November 2013, Somphoune had a series of meetings with his associate, some of which were attended by Kumagai. At the time, Kumagai was a Fresno Police Department detective in the Vice and Intelligence Unit.
During these meetings, the associate was told that he was under federal investigation, but that in return for a bribe payment, Kumagai could close the investigation and arrange to have the associate designated as a confidential informant for the Fresno Police Department. On November 6, 2013, the associate paid Kumagai approximately $20,000 cash. A few hours later, the associate signed documents for the purported purpose of becoming a confidential informant for the Fresno Police Department. The defendants were arrested in March of 2014, and the associate never actually served as a confidential informant for the Fresno Police Department.
“Former detective Kumagai violated the trust given to him as a law enforcement officer,” said U.S. Attorney Wagner. “He will now spend time in federal prison for his corrupt conduct. It is an important mission of the U.S. Attorney’s Office to prosecute law enforcement officers and other public officials who abuse their official authority for their own personal gain. We will continue to work closely with our law enforcement partners to investigate and prosecute these cases.”
“Such criminal activity tarnishes the reputations of the men and women in law enforcement who are committed to upholding laws that keep citizens safe,” said Assistant Special Agent in Charge John Gliatta of the Sacramento field office of the Federal Bureau of Investigation. “We and our law enforcement partners are committed to the identification and investigation of any such activity to ensure that those who corruptly abuse public trust are held accountable for their criminal activity.”
“Former police officer Derik Kumagai participated in an elaborate bribery scheme in which he utilized his position as a law enforcement officer for personal gain. This type of behavior from a public servant is not only illegal, but also appalling,” stated DEA Acting Special Agent in Charge Bruce C. Balzano. “DEA will vigorously work to hold those accountable who abuse their position and violate the public trust.”
“The defendant’s conduct was reprehensible and a dishonor to those who took an oath to uphold the law and protect citizens,” said IRS Criminal Investigation Special Agent in Charge José M. Martinez. “Mr. Kumagai used his position for personal gain, betraying the community he swore to protect. IRS-CI will continue to investigate public corruption to ensure everyone plays by the same rules—regardless of job or position.”
This case was the product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Internal Revenue Service - Criminal Investigation. Assistant United States Attorneys Grant B. Rabenn and Kevin P. Rooney prosecuted the case.This case was the product of the Organized Crime Drug Enforcement Task Force (OCDETF), a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
Federal Inmate Pleads Guilty to Synthetic Drug Smuggling SchemeRead the Press Release
FRESNO, Calif. —Tracy McArthur Harris, aka Trey Harris, 42, a federal inmate who is serving an 11-year prison sentence for a cocaine conspiracy, pleaded guilty today to conspiring with his brother, James Steven Harris, aka Steve Harris, 44, of Loma Linda, to smuggle synthetic cannabinoids into Taft Correctional Institution, United States Attorney Benjamin B. Wagner announced.
According to court documents, from December 2012, through April 2013, while incarcerated at Taft Correctional Institution, Trey Harris conspired to obtain smokable synthetic cannabinoids from his brother 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.
Trey Harris is scheduled for sentencing on July 20, 2015, before Senior U.S. District Judge Anthony W. Ishii. He faces a maximum sentence 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.
Steve Harris is scheduled for a status conference on May 11, 2015, in federal court in Fresno. The charges against him are only allegations, and he is considered innocent unless and until proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Federal Bureau of Investigation and Taft Correctional Institution Investigations Department. Assistant United States Attorney Karen A. Escobar is prosecuting the case.
Law enforcement agencies have struggled to stem the tide of emerging smokable synthetic cannabinoids, substances that look like marijuana that are sprayed or mixed with a hallucinogenic chemical and often marketed and sold in smoke shops and convenience stores as “potpourri,” “incense,” or “spice.” The chemicals, typically imported from China, come in hundreds of varieties; new formulations appear constantly, with molecules subtly tweaked to try to avoid classification as a controlled substance. However, because they are chemically and pharmacologically similar to controlled substances, these chemicals are considered controlled substance analogues, which are illegal under federal law. Synthetic cannabinoid usage poses extreme health risks that have resulted in serious bodily injury or death. According to the American Association of Poison Control Centers, exposures to synthetic cannabinoids have spiked this year, with 2,252 exposures reported from January 1, 2015, through April 27, 2015.
Atwater Resident Pleads Guilty to Student Aid Fraud and Identity TheftRead the Press Release
FRESNO, Calif. — Sherise Lanelle Woolridge, 33, of Atwater, pleaded guilty today to mail fraud and aggravated identity theft for a scheme to obtain student aid grant funds and loans, United States Attorney Benjamin B. Wagner announced.
According to court documents, Woolridge participated in a scheme to defraud the United States Department of Education of student aid grants and loans. She submitted false financial aid applications to Axia College at the University of Phoenix and Capella University on behalf of students who did not intend to attend either school. She used stolen or wrongfully obtained personal identifying information for a person who did not know her identity would be used to apply for college financial aid. As a result of the scheme to defraud, more than $200,000 in grants and loans were disbursed.
This case is the product of an investigation by the U.S. Department of Education Office of Inspector General. United States Attorney Mark J. McKeon is prosecuting the case.
Woolridge is scheduled to be sentenced by United States District Judge Lawrence J. O'Neill on August 3, 2015. Woolridge faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for mail fraud, and a mandatory sentence of two years in prison for aggravated identity theft. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Reno Man Using Private Plane to Transport Marijuana Out of State Sentenced to Two Years in PrisonRead the Press Release
SACRAMENTO, Calif. —Kevin Dennis Golden, 39, of Reno, Nevada, was sentenced today to two years in prison for possession with the intent to distribute approximately 88 pounds of marijuana that he was attempting to fly in a private plane to Pennsylvania, United States Attorney Benjamin B. Wagner announced.
According to court documents, on December 14, 2012, law enforcement agents went to the Lincoln airport as part of an investigation into a suspicious Cessna airplane that had been making frequent flights from California to the Midwest and East Coast. They observed that the plane had landed and saw the pilot go into the pilot’s lounge. Approximately an hour later, a vehicle drove up to the airplane. Golden got out of the vehicle, removed three black suitcases and a backpack from the vehicle and placed them inside the airplane. Golden then drove to a nearby parking lot, parked, and walked back to the airplane. Agents approached the pilot of the plane and told him of their intent to perform a ramp check in accordance with Federal Aviation Administration regulations. While conducting the ramp check, the three suitcases were seen inside the small aircraft. After receiving consent to look inside the suitcases from Golden, the agents discovered multiple vacuum-sealed bags of marijuana. An additional bag of marijuana was found in the smaller backpack that also contained Golden’s identification. A total of 40 kilograms (88 pounds) of marijuana were taken out of the suitcases and backpack. Further evidence showed that Golden had taken two previous trips to Philadelphia, Pennsylvania in the aircraft to deliver marijuana.
U.S. Attorney Benjamin Wagner stated: “The use of private planes and small private airports to transport and distribute controlled substances is a known and continuing problem within the Eastern District of California. Persons involved in such activity should understand that they face prison, large fines, and, in appropriate cases, forfeiture of vehicles and aircraft used to engage in such activity.”
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), with the assistance of the Lincoln Police Department and the Placer County Sheriff’s Office.
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Government Moves to Dismiss Rim Fire IndictmentRead the Press Release
FRESNO, Calif. — The government has moved to dismiss the federal indictment against Keith Matthew Emerald, 33, of Columbia, California, United States Attorney Benjamin B. Wagner announced. The indictment alleged that Emerald had caused the Rim Fire, which burned approximately 250,000 acres of land, and that he had made a false statement to federal investigators regarding the origin of that fire.
In its motion to dismiss, filed today, the government advised the United States District Court that two witnesses had unexpectedly died in recent months, since the filing of the indictment last August. The government’s motion characterized one witness as critical to the case and stated that he had been expected to provide trial testimony regarding his discussions with Emerald shortly after Emerald had been rescued from the vicinity of the Rim Fire’s origin. That witness died in a workplace accident in February. The second witness was the helicopter pilot who first responded to the Rim Fire. That witness had been expected to testify about the initial response to the Rim Fire and the rescue of the defendant very close to the Rim Fire’s point of origin. That witness died in March of cardiac arrest. These witnesses’ prior statements are inadmissible hearsay and cannot be used as evidence at trial.
In its motion, the government stated that it had reassessed the case in light of the loss of this anticipated trial testimony and determined that without that testimony it was unlikely to prove the charges in the case beyond a reasonable doubt to the unanimous satisfaction of a trial jury. Accordingly, it was in the interests of justice to dismiss the case.
United States Attorney Wagner stated, “I appreciate the hard work done by the US Forest Service in investigating this case, and I understand that the government’s motion to dismiss will be frustrating to some. However, when circumstances change after indictment, and our judgment is that a case is no longer likely to be proven beyond a reasonable doubt, it is our obligation to the defendant and to the Court to dismiss that case.”
The United States Attorney also noted that the indictment contained only allegations; a defendant is always presumed innocent until and unless proven guilty beyond a reasonable doubt.
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Yuba City Police Officer and Resident Indicted on Cocaine Conspiracy and Bribery ChargesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment today against Gursharan Phagura, 39, and Harminder Phagura, 35, both residents of Yuba City, United States Attorney Benjamin B. Wagner announced.
According to court documents, Gursharan Phagura and Harminder are accused of conspiring to possess, with intent to distribute, cocaine, as well as accepting and facilitating bribes. The indictment alleges that Harminder Phagura used his authority as a police officer to gather sensitive information, which Gursharan Phagura transmitted to a third party, who was posing as a cocaine trafficker.
Gursharan Phagura is charged separately with possessing, with intent to distribute, cocaine in 2011.
Harminder Phagura and Gursharan Phagura were arrested on April 15, 2015. Harminder Phagura was released on a $100,000 bond. Gursharan Phagura is in pretrial custody.
This case was the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). The Federal Bureau of Investigation also provided resources to the investigation. The Yuba City Police Department has assisted in the investigation. Assistant United States Attorney Paul Hemesath is prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of 20 years in prison and a $1,000,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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Two Sacramento Area Methamphetamine Trafficking Cases Indicted TodayRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned two separate indictments today charging a total of six defendants with methamphetamine trafficking offenses, United States Attorney Benjamin B. Wagner announced.
In the first case, Jose Acosta, 34, Jorge Rios, 39, Jose Luis Aguilar, 49, Diego Velazquez, 29, and Feliciano Ochoa Reyes, 30, all Mexican nationals, were charged with conspiring to traffic methamphetamine and use of a communications facility (cellular telephone) in furtherance of a drug trafficking crime. According to court documents, between September 10, 2014, and April 16, 2015, the defendants were engaged in conspiracy to traffic methamphetamine in and around the Sacramento area. Docket # 2:15-cr-092 JAM
In the second case, Alex Velasquez Rangel, of Sacramento, was charged with distribution of methamphetamine between February 12, 2014, and April 22, 2014. Docket # 2:15-cr-093 GEB
Both cases were the product of an investigation by the Drug Enforcement Administration. Assistant United States Attorney Christiaan Highsmith is prosecuting both cases.
All defendants have been detained pending trial. If convicted, each defendant faces a maximum statutory penalty of 20 years in prison and a $1 million fine on the conspiracy charge and four years in prison and a $250,000 fine on the use of a communications facility in a furtherance of a drug trafficking offense 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; each defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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Portion of State Highway Route 140 Named in Honor of Rick Oules, Former Law Enforcement Coordinator for the U.S. Attorney’s OfficeRead the Press Release
SACRAMENTO, Calif. — Earlier today in Merced in the presence of his family and many friends and former colleagues, a ceremony was held in honor of Rick Oules, former Law Enforcement Coordinator for the United States Attorney’s Office for the Eastern District of California, that included the unveiling of the Rick K. Oules Memorial Highway sign. Pursuant to a bill introduced in the state legislature earlier this year by Senator Anthony Canella (Ceres), the portion of State Highway Route 140 from Arboleda Drive to Plainsburg Road in Merced County will now be known as the Rick K. Oules Memorial Highway.
Rick began his career in law enforcement in 1977 with the Merced County Sheriff’s Office, where he served as a Patrol Deputy, a Narcotics Detective, and a Patrol Sergeant. In 1987, he joined the California Department of Justice as a Special Agent and was assigned to the Bureau of Narcotic Enforcement, where he worked on and supervised a clandestine lab enforcement team resulting in the investigation and dismantling of approximately 300 methamphetamine laboratories. In 2005, he was appointed as the Director of the California Department of Justice’s Division of Law Enforcement, one of the largest state investigative law enforcement agencies in the United States. During his career with the State of California, Rick served as President of the California Narcotic Officers’ Association (CNOA), served on the CNOA Executive Board of Directors and the Executive Board of Directors of the California Peace Officers’ Association, and was appointed to the California Council on Criminal Justice.
In January of 2008, Rick joined the United States Attorney’s Office as our Law Enforcement Coordinator. As LEC, Rick represented our office and the United States Department of Justice as the primary point of contact for the 34 county sheriffs’ offices, more than 100 police departments, and multiple other state local and tribal law enforcement agencies that serve the Eastern District of California. He served as LEC with great distinction until his untimely death in 2011, after a courageous battle with lung cancer that was determined to be a result of his frequent long-term exposure to the chemicals and solvents found in the methamphetamine laboratories he dismantled over the course of his career.
“Rick Oules was a dedicated, skilled and effective lawman, who spent years making California a safer place to live,” said United States Attorney Benjamin B. Wagner. During the all too brief time that we were fortunate to have with him, he represented the U.S. Attorney’s Office with dignity and grace, and to great effect. We miss all the great work that he did, but we miss him more as a friend. We are so pleased to see the establishment of this memorial in his name.”
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