Eastern District of California

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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, 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.

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.

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, 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.

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.

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.

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, 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.

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.

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.

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.

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.

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.

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, 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.

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.

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.

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.

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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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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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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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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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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Sacramento, Calif. — Vincent J. Doyle, 56, formerly of Elk Grove, California, was sentenced on Wednesday by United States District Judge Kimberly J. Mueller to 51 months in prison for mail fraud arising out of his embezzlement from his former employer of more than $2.5 million.  Doyle was also ordered to pay over $2.5 million in restitution.

According to court documents, Doyle was the Chief Financial Officer for a civil engineering firm located in Sacramento and El Dorado counties.  From 2001 until he retired from the firm in 2009, Doyle used his position to write unauthorized checks in small varied amounts from the firm’s bank accounts that totaled over $2.5 million.  In order to conceal his fraud, Doyle often entered false payee information into the firm’s checkbook register and opened a Post Office box to receive mail associated with his fraud.  According to court documents, the defendant used a great deal of the money to pay the expenses for an exotic dancer/prostitute, including plastic surgery.

This case is the product of an investigation by the Federal Bureau of Investigation.  The case was prosecuted by Assistant United States Attorney Lee S. Bickley.          

 

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SACRAMENTO, Calif. — The former operations manager of WECO Aerospace Systems Inc. was sentenced today for conspiracy to destroy aircraft or aircraft facilities, United States Attorney Benjamin B. Wagner announced.

United States District Judge John A. Mendez sentenced Jerry Edward Kuwata, 64, of Granite Bay, to one year in prison. WECO was a Federal Aviation Administration-certified repair business with facilities in Lincoln and Burbank, California. According to court documents, WECO was permitted by the FAA to repair certain types of aircraft parts, including starter generators and converters, used on various types of aircraft, including small helicopters used by tour companies and law enforcement agencies. WECO employees regularly failed to follow FAA regulations in repairing and overhauling the aircraft parts. In many cases, WECO did not even have equipment capable of performing required tests. WECO employees at both locations nonetheless performed repairs and returned parts to customers, falsely certifying that the parts had passed tests and had been repaired in accordance FAA standards. There have been no known instances in which a fraudulent WECO repair resulted in an aircraft accident. However, WECO customers who testified at the trial of WECO’s owner, William Hugh Weygandt, 65, of Granite Bay, consistently testified that once they learned of the fraudulent repairs, they removed all WECO-repaired parts from their aircraft due to safety concerns.

At sentencing, Judge Mendez noted that Kuwata never took action to notify the FAA of the fraud, and expressed concern for the potential safety risks posed by such conduct.

A federal jury found Weygandt guilty at trial of conspiracy to commit fraud involving aircraft parts repair. He was sentenced on July 8, 2014, to two and a half years in prison. Other former WECO executives Michael Dennis Maupin, of Arbuckle; and Anthony Vincent Zito, of Saugus, previously pleaded guilty to federal offenses in connection with the conspiracy and await sentencing.

This case is the product of an investigation by the Inspector General for the Department of Transportation and the Federal Bureau of Investigation, along with the Inspectors General of the Department of Homeland Security, and Department of Defense. Assistant U.S. Attorney Michele Beckwith is prosecuting the case.

 

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SACRAMENTO, Calif. —Keith Joseph Banning, 59, of Magalia, pleaded guilty today to receipt of child pornography, United States Attorney Benjamin B. Wagner announced.

According to court documents, an undercover investigation revealed that in June through August of 2012, an Internet user at Banning’s home address was using a peer-to-peer file-sharing network to share pictures and videos depicting the sexual exploitation of children, including a number of videos involving children under the age of 10. A search warrant executed at Banning’s home revealed that his computers contained hundreds of videos depicting the sexual abuse of children, and that at various times many of those videos were made available to others over the Internet through a file-sharing network.

This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney Matthew G. Morris is prosecuting the case.

Banning is scheduled to be sentenced on August 4, 2015, by United States District Judge John A. Mendez. Banning faces a possible sentence of five to 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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

 

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FRESNO, Calif. —Jose Mojarro Cruz, aka Shyboy, 28, of Bakersfield, pleaded guilty on Monday to conspiring to distribute and possess with intent to distribute methamphetamine and heroin, United States Attorney Benjamin B. Wagner announced.

According to court documents, from May 2013 through January 2014, Cruz regularly distributed methamphetamine and heroin to various drug dealers and users in Kern County.  In particular, Cruz admitted to distributing a combined total of more than 15 kilograms of methamphetamine. 

This case is the product of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by the 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 Judge Lawrence J. O'Neill on July 20, 2015. Cruz faces a maximum statutory penalty of life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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FRESNO, Calif. — James Giulio Davidson, 59, of Modesto, was sentenced today by United States District Judge Anthony W. Ishii to 18 months in federal prison and ordered to pay a $127,000 in restitution for theft of government benefits, United States Attorney Benjamin B. Wagner announced.

According to court documents, Davidson and his deceased wife and former co-defendant, Shirley Kay Davidson, stole more than $64,000 in Supplemental Security Income (SSI) benefits and $63,000 in In-Home Supportive Services (IHSS) from January 2003 to July 2010. Shirley Kay Davidson created a fake person named Sharon Guinn to act as her and James Davidson’s purported IHSS caretaker. James and Shirley Davidson regularly filled out false time cards for the purported work provided by Sharon Guinn and then cashed the IHSS wages sent to this fake person for their personal use and benefit. Further, James and Shirley Davidson failed to report this fraudulent source of income to the Social Security Administration during redetermination interviews for continued SSI benefits. Additionally, James and Shirley Davidson stated to the SSA that they separated in November 2007, when in fact they continued to live together, which increased the amount of SSI benefits they received.

This case was the product of an investigation by the Social Security Administration, Office of Inspector General and the Stanislaus County Community Services Agency. Assistant United States Attorneys Grant B. Rabenn and Michael Tierney prosecuted the case.

Docket #: 1:12-cr-168-AWI

FRESNO, Calif. — David Arreola, 29, of Michoacán, Mexico, was sentenced today to seven and a half years in prison for conspiring to manufacture, distribute and possess with intent to distribute marijuana grown on public land and possessing a firearm in furtherance of the conspiracy, U.S. Attorney Benjamin B. Wagner announced.

According to court documents, Arreola and his co-defendants, Hernan Cortez-Villaseñor, 40; Homero Pacheco-Rivera, 22; Alfonso Cornejo, 32; and Jose Luis García-Villa, 22, all of Michoacán, Mexico, conspired in the cultivation of approximately 8,876 marijuana plants in the Greenhorn Creek area of the Sequoia National Forest in Kern County. Arreola also admitted that he possessed a 9 millimeter semi-automatic handgun in furtherance of the conspiracy and was in possession of the weapon at the time of his apprehension at the grow site by law enforcement officers.

In sentencing Arreola, Senior U.S. District Judge Anthony W. Ishii also ordered Arreola to make restitution to the U.S. Forest Service of $3,300 for damage to the land and natural resources caused by the marijuana operation. According to court documents, the Greenhorn Creek site sustained extensive damage as a result of the operation. Native oak trees and other vegetation were cut down or otherwise killed to make room for the marijuana plants. The soil was tilled, and fertilizers and pesticides, including Fosfuro de Zinc, an illegal rat poison, were spread throughout the site. As noted in his plea agreement, Fosfuro de Zinc contains zinc phosphide, a highly toxic chemical that can sicken or kill human beings. When Arreola was apprehended, he was sick and had to be air-lifted out of the grow site. According to Arreola, several other growers had previously left the site, because they were sick.

Three of Arreola’s co-defendants previously entered guilty pleas and were sentenced. Cortez-Villaseñor was sentenced to 10 years in prison, and Cornejo and García-Villa were both sentenced to 3 years and 10 months in prison. Pacheco-Rivera is a fugitive. Upon completion of his prison sentence, Arreola, like his co-defendants, faces potential removal to Mexico.

This case is the product of an investigation by the U.S. Forest Service, the U.S. Drug Enforcement Administration, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the U.S. Environmental Protection Agency Criminal Investigation Division (EPA-CID), and the Kern County Sheriff’s Office. Assistant United States Attorney Karen Escobar prosecuted the case.

Docket #: 1:12-cr-184 AWI

SACRAMENTO, Calif. — Robert Anthony Guerena, 21, of Stockton, was sentenced today by United States District Judge Morrison C. England Jr. to 11 years and three months in prison for conspiring to distribute and to possess with intent to distribute methamphetamine, and possession with intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.

According to court documents, between August and September 2013, Guerena and co-defendant Robert Vargas 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. Over the course of the transactions, Guerena boasted that he had access to pound quantities of methamphetamine. 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.

Vargas is scheduled to be sentenced on May 14, 2015.

This case is 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 is prosecuting the case.

Docket #: 2:13-cr-326 MCE

SACRAMENTO, Calif. — Glen Edward Meyers, 57, of Shasta Lake, was sentenced on Wednesday by United States District Judge Kimberly J. Mueller to eight years in prison for conspiring to distribute marijuana and conspiracy to launder money, United States Attorney Benjamin B. Wagner announced.

According to court documents, Meyers conspired with others to manufacture and distribute marijuana that had been grown in California and shipped to Pennsylvania for sale. When Meyers was arrested in Shasta Lake in September 2013, federal agents discovered numerous guns at his house, approximately 20 pounds of processed marijuana packaged for resale, as well as cash, heat sealers, and other indicia of drug trafficking. At the time, there were three minor children living in the home. As part of the investigation, agents also discovered a warehouse at another location, which contained approximately 490 plants in various stages of growth.

The government ultimately seized and forfeited approximately $1 million in drug proceeds from various bank accounts and other assets that Meyers controlled.

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, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Drug Enforcement Administration, and the Pennsylvania, Washington County Drug Task Force. Assistant United States Attorney Michele Beckwith, Michael D. McCoy, and Kevin Khasigian prosecuted the case.

SACRAMENTO, Calif. — Edwin Ludwig IV, 34, currently an inmate in an Oklahoma state prison, pleaded guilty on Wednesday to one count of conspiracy to defraud the United States and two counts of filing false claims for federal tax refunds, United States Attorney Benjamin Wagner announced.

According to court documents, beginning in March 2011, Ludwig and three fellow inmates in the California Correctional Center in Susanville obtained personal identification information of other inmates at the correctional center. Ludwig then provided the information to co-defendants on the outside who prepared and filed false income tax returns with the Internal Revenue Service, claiming refunds to which the inmates were not entitled. False tax returns also were filed in some of the defendants’ own names. The defendants caused the false refund checks to be deposited to various bank accounts they controlled. According to the indictment, the investigation into the conspiracy began on January 11, 2012, when a correctional officer found some records behind Ludwig’s personal locker.

According to court documents, the refunds were used for personal expenditures, and included the purchase of prepaid debit cards, and adding money to inmates’ commissary accounts. In all, the conspiracy resulted in at least 247 false claims for income tax returns in tax years 2008 through 2011. Although the IRS stopped some of the refunds, approximately 138 fraudulent refunds totaling approximately $219,984 were issued.

This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation, the Federal Bureau of Investigation, and the Investigative Service Unit at the California Correctional Center. Assistant United States Attorney Sherry D. Hartel Haus is prosecuting the case.

Ludwig is scheduled to be sentenced by Judge Kimberly J. Mueller on July 8, 2015. On the conspiracy count, he faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. He faces additional a maximum sentence of five years in prison and a $250,000 fine on each false claims 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.

Docket #: 2:14-cr-043 KJM

SACRAMENTO, Calif. — A federal grand jury returned a 21-count indictment today against Abolghasseni “Abe” Alizadeh, 56, of Granite Bay, and Mary Sue Weaver, 62, of Roseville, charging them with various counts of mail, wire and bank fraud in connection with schemes to defraud lenders in large commercial real estate transactions between mid-2004 and April 2008, United States Attorney Benjamin B. Wagner announced.

According to court documents, Alizadeh, a property developer, was formerly the principal partner in Kobra Properties, a company that owned numerous commercial real estate properties in Northern California. Alizadeh also owned dozens of Jack in the Box, TGI Fridays, Sonic Burger, Qudoba Mexican Grills and other restaurants in the region. Although his assets at one point had an estimated value of $1 billion, Kobra and several other entities controlled by Alizadeh filed for bankruptcy in 2008. Weaver was an escrow officer with Placer Title Company. The indictment alleges that she and Alizadeh engaged in a scheme to get loans at inflated amounts on commercial and residential real estate. To carry out the scheme, Alizadeh allegedly would submit false information, including altered purchase contracts for million-dollar property purchases, to federally insured banks in order to make it appear that Alizadeh was purchasing the properties for a greater amount than the actual purchase price. According to court documents, Weaver assisted the fraud scheme in various ways including by taking the money belonging to other Placer County clients and temporarily moving the funds into accounts controlled by Alizadeh.

“Over the last five years, we have prosecuted over 300 mortgage fraud defendants,” said U.S. Attorney Wagner. “Although we are seven years removed from the financial crisis, the statute of limitations has not run on many offenses from that period. We will continue to investigate and to hold accountable those whose conduct defrauded others and helped precipitate a financial crisis that did so much harm to homeowners, investors and the financial system.”

Wade V. Walters, Special Agent-in-Charge for of the FDIC Office of Inspector General’s Office of Investigations stated: “The Federal Deposit Insurance Corporation (FDIC) Office of Inspector General is pleased to join the U.S. Attorney’s Office and our law enforcement colleagues in bringing about this indictment. Our office is particularly concerned about conduct that could affect the safety and soundness of FDIC-insured institutions. We are committed in our efforts to help ensure integrity in the financial services industry.”

This case is the product of an investigation by the Federal Bureau of Investigation, the Internal Revenue Service—Criminal Investigation, and the Federal Deposit Insurance Corporation Office of Inspector General. Assistant United States Attorneys Michael D. Anderson and Heiko P. Coppola are prosecuting the case.

If convicted, Alizadeh and Weaver face a maximum statutory penalty of 30 years in prison and a $1 million fine for each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are each presumed innocent until and unless proven guilty beyond a reasonable doubt.

Docket #: 2:15-cr-087-KJM

FRESNO, Calif. —Emilio Perez-Solis, 39, of Oakland, was sentenced today to three years and 10 months in prison, for conspiring to sell counterfeit CDs and DVDs, United States Attorney Benjamin B. Wagner announced.

According to court documents, Perez-Solis used a building in a rural area of Fresno as a distribution point for counterfeit CDs and counterfeit DVDs. From the building, Perez-Solis sold counterfeit CDs and DVDs, including movies that were only in theatrical release and not yet available on DVD. On Feb. 21, 2014, the building was searched and found to contain approximately 70,000 counterfeit music CDs and movie DVDs.

This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) with assistance from the Fresno County Sheriff’s Office. Assistant United States Attorneys Henry Z. Carbajal III and Patrick R. Delahunty prosecuted the case.

Docket #: 1:14-cr-042 LJO

FRESNO, Calif. — Christine Rose Caraway, 34, of Modesto, was sentenced by Senior United States District Judge Anthony W. Ishii to two and a half years in prison for conspiring to submit false claims to the IRS, United States Attorney Benjamin B. Wagner announced. Caraway was also ordered to pay over $60,000 in restitution to the IRS.

According to court documents, from December 2010 to May 2011, Caraway and her former spouse Heath Lee Roberson obtained personal identifying information from over 40 individuals. Caraway and Roberson then used this information to generate false tax returns and submitted them to the IRS. They funneled the tax refunds into accounts they controlled. Roberson was sentenced on July 21, 2014, to two years and nine months in prison.

This case was the product of an investigation by the Internal Revenue Service - Criminal Investigation. Assistant United States Attorney Michael G. Tierney prosecuted the case.

Docket #: 1:13-cr-342 AWI

FRESNO, Calif. —Toribio Cruz-Galvan (Cruz), 29, of Michoacán, Mexico, pleaded guilty today to conspiring to manufacture, distribute, and possess marijuana with intent to distribute, United States Attorney Benjamin B. Wagner announced.

According to court documents, Cruz was involved in the cultivation of 1,016 marijuana plants and processing of 51 pounds of dried marijuana in the Yucca Mountain area of the Sequoia National Park. The Yucca Mountain area is in an area generally known for its spring wildflower display. In addition to the growing marijuana plants, park rangers found processed marijuana, a shotgun, and ammunition for various firearms. The marijuana cultivation operation also caused significant damage to National Park land and natural resources. Fertilizer, rodenticide, propane tanks, and 300 pounds of trash were removed from the grow site. It is estimated that over one million gallons of water was diverted from a nearby spring to irrigate the marijuana plants.

Cruz remains detained as a flight risk and danger to the community and is scheduled for sentencing before U.S. District Judge Lawrence J. O’Neill on July 20, 2015. He faces a maximum statutory penalty of 20 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

This case was the product of an investigation by the National Park Service. Assistant United States Attorney Karen A. Escobar is prosecuting the case.

Docket #: 1:14-cr-225-LJO

FRESNO, Calif. —Mark Jeff Zeldes, 53, of Broomfield, Colorado, was sentenced today to three years and eight months in prison for a conspiracy in California to manufacture, distribute and possess with intent to distribute marijuana, United States Attorney Benjamin B. Wagner announced. Zeldes was also ordered to forfeit over 300 pieces of equipment used for the indoor cultivation of marijuana.

This sentence follows Zeldes’ guilty plea earlier this year. In sentencing Zeldes, Senior U.S. District Judge Anthony W. Ishii considered court documents which indicate that Zeldes was responsible for a large-scale marijuana cultivation and distribution operation with multiple indoor grow locations in Bakersfield, Newbury Park, and Northridge, California. Law enforcement officers seized 1,856 marijuana plants in connection with those operations.

Court records also indicate that, at the time of his arrest in Colorado, Zeldes had several locked and loaded firearms in his residence, as well as several rounds of ammunition, including an automatic weapon magazine capable of holding 100 rounds of ammunition. Following his arrest, Zeldes was brought before a U.S. Magistrate Judge in Denver, who ordered him detained as a flight risk and danger to the community. In ordering his detention, the court cited to Zeldes’ ongoing involvement in marijuana cultivation and distribution activities, including a $9 million contract with private investors to operate a marijuana grow.

This case was the product of an investigation by the U.S. Drug Enforcement Administration with assistance from the U.S. Marshals Service and Bakersfield Police Department. Assistant United States Attorney Karen Escobar prosecuted the case.

Docket #: 1:14-cr-077 AWI