Eastern District of California
Press releases recorded for this federal judicial district.
Elk Grove Man Sentenced to More Than 4 Years for $2.5 Million Embezzlement SchemeRead the Press Release
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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Former Operations Manager of Weco Repair Station Sentenced for Recklessly Endangering AircraftRead the Press Release
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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Butte County Man Pleads Guilty to Child Pornography OffenseRead the Press Release
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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Bakersfield Man Pleads Guilty in Drug Distribution RingRead the Press Release
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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Modesto Man Sentenced to 18 Months in Prison for Stealing $127,000 in Social Security BenefitsRead the Press Release
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
Fourth Defendant Sentenced for Marijuana Cultivation Operation in Sequoia National ForestRead the Press Release
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
Stockton Man Sentenced to over 11 Years in Prison for Methamphetamine Trafficking ConspiracyRead the Press Release
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
Redding Man Sentenced to 8 Years in Prison for Interstate Trafficking of Marijuana and Money LaunderingRead the Press Release
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.
Prison Tax Fraud Ringleader Pleads Guilty to Filing False Claims for Federal Tax ReturnsRead the Press Release
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
Northern California Developer and Escrow Agent Indicted in Multimillion Dollar Commercial Loan FraudRead the Press Release
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
Oakland Man Sentenced for Counterfeit Media Scheme in FresnoRead the Press Release
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
Modesto Woman Sentenced for Tax Fraud ConspiracyRead the Press Release
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
Guilty Plea in Sequoia National Park Marijuana Cultivation ConspiracyRead the Press Release
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
Coloradan Sentenced for California Marijuana ConspiracyRead the Press Release
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
- Order Denying Sierra Pacific's Motion
Judge Issues Ruling Denying Sierra Pacific’s Motion to Set Aside the Settlement in the Moonlight Fire CaseRead the Press Release
SACRAMENTO, Calif. — United States District Judge William B. Shubb issued a detailed, 63-page order today denying Sierra Pacific Industries’ motion to set aside the settlement of the Moonlight Fire case and emphatically rejecting each and every allegation by Sierra Pacific’s counsel that there was fraud on the court.
After an exhaustive review of the law and the record of this case, Judge Shubb concluded that the defendants “have failed to identify even a single instance of fraud on the court, certainly none on the part of any attorney for the government. They repeatedly argue that fraud on the court can be found by considering the totality of the allegations. Here, the whole can be no greater than the sum of its parts. Stripped of all its bluster, defendants’ motion is wholly devoid of any substance.” [Order at page 63.]
“I have repeatedly stated that a full examination of the actual record in this case would demonstrate that the misconduct claims made by the attorneys for Sierra Pacific were bogus, and I am very gratified by the Court’s thorough and thoughtful ruling,” said United States Attorney Benjamin B. Wagner. “Sierra Pacific’s reckless accusations have been broadcast in open court and in numerous media stories throughout the country. It is not an inconsequential thing to besmirch the integrity of dedicated public servants. Assistant United States Attorneys David Shelledy and Kelli Taylor provided skilled representation to the United States in holding the Sierra Pacific defendants responsible for the incredible damage they caused, and they provided that representation in accordance with the high ethical standards regularly demanded of Department of Justice employees. I am thankful for their service, and proud to be their colleague.”
The Moonlight Fire ignited on September 3, 2007, on private forest land in Plumas County, California, and raged for more than two weeks, consuming about 65,000 acres of land, including more than 46,000 acres of federal public lands. A jury trial in the case before U.S. District Judge Kimberly J. Mueller had been scheduled to begin on July 9, 2012 in Sacramento, but the parties entered into a settlement shortly before trial. At an estimated value of at least $122,500,000, the settlement was the largest recovery ever received by the United States for damages caused by a forest fire. In October 2014, Sierra Pacific filed a motion to set aside the judgment for damages resulting from the Moonlight Fire, claiming there had been a fraud on the court.
In rejecting each and every claim by Sierra Pacific’s attorneys, Judge Shubb noted that they were aware of almost all of the facts, which they now claim show fraud-on-the-court before they decided to settle the case. As the Court put it, “defendants made the calculated decision on the eve of trial to settle the case knowing everything that they now claim amounts to fraud on the court.” [Order at page 27.] Moreover, regardless of when the facts became known, the Court found that each of Sierra Pacific’s claims was without merit.
As to arguments that an Assistant U.S. Attorney facilitated perjury by an investigator in a deposition when he testified about what the defendants characterized as a “white flag” near the origin location, the Judge ruled that “[w]hen the record is examined there is no substance whatsoever to defendants’ contention.” [Order at page 34.] As to defendants’ suggestion that the removal of former Assistant U.S. Attorney Robert Wright from the Moonlight Fire case in early 2010 “tends to show” some sort of fraudulent intent by the government, Judge Shubb wrote, “[i]t neither shows nor suggests any such thing.” [Order at page 61.] As to claims relating to a state fund administered by CalFire, Judge Shubb observed that the defendants do not even allege the federal government had the documents at issue, and the state audit report revealing details of the fund did not even exist prior to the settlement of the Moonlight Fire case.
Judge Shubb noted that the defendants “have been represented by numerous high‑priced attorneys throughout this litigation,” and he chided some of those attorneys several times in the order for reckless or disingenuous arguments. He noted in a footnote that the attorneys “may be playing loose with their characterizations of the deposition testimony” that they cited. [Order at page 37, fn 10.] The court described another defense claim as “misleading” [Order at page 48], and stated that he was concerned “that defendants would so flippantly” make one representation to the court in arguing this motion, when it argued precisely the opposite to the court during the pre-settlement litigation of this case. [Order at pages 58-59.]
In its brief filed in February, the Government outlined instances in which the defendants’ attorneys manipulated the excerpts of record to support defense claims of witness perjury by excising portions of deposition transcripts that contradicted these claims.
Docket #: 2:09-cv-2445
Three Indicted for Methamphetamine TraffickingRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an 11-count indictment today against Donnie Phillips, 56, of Concord; Gordon Miller, 57, of Clayton; and Phyliss Mosher, 51, of Vallejo, charging them with conspiracy to distribute methamphetamine and related methamphetamine trafficking charges, United States Attorney Benjamin B. Wagner announced.
According to court documents, between June 2014 and February 2015, Mosher sold large amounts of methamphetamine to an undercover agent. Phillips and Miller supplied the methamphetamine to Mosher. Transactions took place in the counties of Solano, Contra Costa, Yolo, Shasta, and San Joaquin.
This case is the product of an investigation by the Drug Enforcement Administration, the Vallejo Police Department, and the El Dorado County Sheriff’s Office as part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
If convicted, each defendant faces a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Stockton Loan Officer Charged with Mortgage FraudRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a six-count indictment today against Mark F. Friend, 60, of Stockton, charging him with six counts of bank fraud relating to a mortgage fraud scheme, United States Attorney Benjamin B. Wagner announced.
According to the indictment, in 2005 and 2006 while working for National City Mortgage, then a division of National City Bank, in Stockton, Friend arranged loans for borrowers that contained numerous falsehoods. He submitted false loan applications and other documents, and he made down payments on behalf of borrowers who did not have enough money, and then was repaid out of escrow after the loans were funded. The loss to National City Bank was approximately $1.5 million.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys John K. Vincent and Christiaan H. Highsmith are prosecuting the case.
If convicted, Friend faces a maximum statutory penalty of 30 years in prison and a $1 million fine for each count of bank fraud. 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.
Bakersfield Man Charged with Possession with Intent to Distribute 12 Kilograms of CocaineRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a single-count indictment today against Jonathan Arturo Alvarez, 25, of Bakersfield, charging him with possession with intent to distribute cocaine, United States Attorney Benjamin B. Wagner announced.
According to court documents, on April 2, 2015, a California Highway Patrol officer conducted a traffic stop of the vehicle driven by Alvarez in Siskiyou County. A subsequent search of the vehicle led to the recovery of 12 kilograms of cocaine.
This case was the product of an investigation by the California Highway Patrol and the Drug Enforcement Administration. Assistant United States Attorney Olusere Olowoyeye is prosecuting the case.
If convicted, Alvarez faces a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Winters Man Sentenced to 13 Years in Prison for Child Pornography OffenseRead the Press Release
SACRAMENTO, Calif. — Michael Rea, 26, of Winters, was sentenced today by United States District Judge John A. Mendez to 13 years and one month in prison for receiving child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, Rea is a registered sex offender with a history of repeatedly failing to update his registration information. In September 2013, Rea was on probation for a prior conviction for failing to register as required by California’s sex offender registration laws. Agents of the Sacramento Sexual Assault Felony Enforcement (SAFE) Taskforce and the Federal Bureau of Investigation found Rea living with a child at a location where he was not registered to live. A search of his belongings found a DVD containing six movies of children being sexually abused. Rea has been in custody since his arrest.
The SAFE Team is a multi-jurisdictional task force created with grant funding from the California State Office of Emergency Services. The SAFE Task Force is composed of members from the Sacramento County Sheriff’s Office, the Sacramento Police Department, the Sacramento County Probation Department, and the U.S. Marshals Service, and receives support from the California Department of Corrections and Rehabilitation. Assistant United States Attorney Matthew G. Morris 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.justice.gov/psc. Click on the “resources” tab for information about Internet safety.
Docket #: 2:13-cr-397 JAM
Federal Tax Enforcement Is A Focus of Prosecutions in the First Quarter of 2015Read the Press Release
SACRAMENTO, Calif. — With the annual tax filing deadline approaching tomorrow on April 15, United States Attorney Benjamin B. Wagner noted that his office had taken a number of criminal enforcement actions in recent months in the Eastern District of California. The U.S. Attorney’s Office works with the Internal Revenue Service – Criminal Investigation and other law enforcement partners to enforce federal tax laws.
“This is an appropriate time of year to remind those few individuals who set out to cheat or evade their tax obligations that such conduct can result in prosecution,” said U.S. Attorney Wagner. “Every year some deliberately fail to file required returns or file false and fraudulent returns in order to evade the assessment and payment of tax due. It is the obligation of this office to pursue and prosecute them for their criminal conduct.”
“All Americans have a duty and responsibility to pay taxes. In today’s economic environment, it’s more important than ever that the American people feel confident that everyone is playing by the rules and paying the taxes they owe,” said José M. Martinez, IRS ‑ Criminal Investigation Special Agent in Charge of the Oakland Field Office. “Those Americans who file accurate, honest and timely returns can be assured that the government will hold accountable those who don’t. The IRS Criminal Investigation Division, together with the Department of Justice, will investigate and prosecute those who violate our tax system.”Eastern District of California indictments so far in 2015 have included:
(The charges in an indictment are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.)United States v. Clint D. Bonderer et al. — According to the indictment, Bonderer, 38, of Stockton, and Slavic Khudoy, 35, of Loomis conspired to submit false claims that included false statements about the taxpayers’ income, filing status, and address, and fraudulently claimed credits. Between 2010 and 2012, they submitted 842 fraudulent tax returns, requesting more than $600,000 in refunds in the names of other people. In most cases, they kept the refunds for themselves. (2:15-cr-28)
United States v. Lejohn Windom Sr. et al. — According to the indictment, Sacramento residents Windom Sr., 52; Lejohn Windon Jr., 22; Tracy Hartway, 30; and Audrey Johnson, 48, filed 682 income tax returns, requesting nearly $2 million in fraudulent refunds. They used stolen IDs requesting tax refunds and forged the names of the taxpayers to make the fraudulent refund checks payable to themselves. (2:15-cr-29)
United States v. Emilio Lara — According to the indictment, Lara, 48, of American Canyon, owned and operated two income tax preparation services in Solano County. He was charged in a 38‑count indictment with preparing fraudulent income tax returns for clients. From 2009 to 2012, Lara helped clients claim false itemized deductions such as medical and dental expenses, charitable contributions, and unreimbursed employee expenses ranging from $740 to $19,093, for a total of $462,392. (2:15-cr-39)
United States v. Linda J. Miller — According to the indictment, Miller, 62, of Benicia, was charged with filing a false tax return. (2:15-cr-66)
United States v. Vivian Williams et al. — According to the indictment, Williams, 49, a tax preparer who operated out of her home in Stockton, was charged with 44 counts of conspiracy, false claims to a government agency, identity theft, and aiding and assisting in the preparation of false and fraudulent tax returns. Darrell Lemont Morris, 43, of Stockton, was charged with one count of conspiracy. Between January 2010 and March 2011, Williams submitted tax returns for clients reporting false income allowing the taxpayers to claim a higher tax refund as a result of the Earned Income Tax Credit and the Child Tax Credit. She filed tax returns for other taxpayers without their knowledge and collected their tax refunds. Morris allowed Williams to use his bank accounts for the deposit of tax refunds, and then shared in the proceeds with Williams. (1:15-cr-28)
United States v. Yolanda Castro — According to the indictment, Castro, 45, a 20-year employee of the IRS in Fresno, was charged with 10 counts of tax fraud and making false statements to a government agency. Between 2007 and 2013, she prepared and filed false federal income tax returns for herself, her family members and others in which she fraudulently claimed tax deductions and credits. On her own 2008 tax return, Castro claimed a credit for education expenses that she did not incur and provided phony textbook receipts to support the claim. Likewise, in tax returns she prepared for herself and others, Castro claimed child care expenses that had not been incurred. (1:15-cr-50)
United States v. Elaina S. Norris — According to the indictment, seasonal tax examiner Norris, 34, of Fresno, was charged with assisting a relative in filing a tax return that falsely claimed two individuals as dependents using the personal information she obtained through her employment at the IRS Service Center. She is also charged with falsely claiming a dependent on two of her personal tax returns, resulting in the receipt of tax credits and deductions that she was not authorized to receive. (1:15-cr-072)
United States v. Brandon Adam Eidson — According to the indictment, Eidson, 34, of Turlock, operated a hydroponics equipment and supply business and is charged with three counts of filing false tax forms, one count of drug distribution, and one count of structuring cash transactions. Between 2008 and 2010, he underreported his gross receipts by over $1.2 million. (1:15-cr-85)
Other actions so far this year:
On January 20, 2015, Rebekah Root, 34, of Visalia, was sentenced to three years and nine months in prison for wire fraud, making a false claim for a tax refund, and aggravated identity theft. According to court documents, in 2011, Root obtained tax documents that were stolen from an IRS office in Visalia. She used those tax documents to submit false tax returns on behalf of six taxpayers, without their knowledge or permission, and claimed approximately $50,000 in fraudulent tax refunds. (1:13-cr-376)
On January 20, 2015, Federico Garcia Garcia, 46, of Arvin, was sentenced to two years in prison for filing false claims with the IRS in a scheme to obtain tax refunds. He was also ordered pay $79,932 in restitution to the IRS. According to his plea agreement, between October 2007 and December 2008, Garcia caused 147 false federal income tax returns to be submitted to the IRS in the names of third parties with fabricated W-2s that contained false wage and withholding information. Garcia made fraudulent claims for approximately $308,317 in federal tax refunds in the scheme, and the IRS paid out approximately $79,932. (1:13-cr-233)
On February 9, 2015, Christine Rose Caraway, 34, of Modesto, pleaded guilty to one count of conspiracy to defraud the United States. According to court documents, from about December 2010 to May 2011, Caraway and her former spouse Heath Roberson obtained personal identifying information from over 40 individuals. Caraway used this information to generate false tax returns seeking over $121,000 in tax refunds and submitted them to the IRS. Roberson pleaded guilty in April 2014 and was sentenced to two years and nine months in prison and to pay over $66,000 in restitution to the IRS. Sentencing for Caraway is set for April 20, 2015. (1:13-cr-171)
On March 13, 2015, a jury convicted Terrylyn McCain, 67, of Stockton, of a scheme to defraud the United States by filing false tax returns and buying gold with the proceeds of the fraud. According to evidence presented at trial, McCain filed at least 12 fraudulent returns that sought nearly $3 million in tax refunds. In one instance, early in the scheme, the IRS refunded $156,373 to McCain. Within the month, she had used the refund money to purchase approximately $62,000 in gold coins. Sentencing for McCain is set for June 4, 2015. (2:12-cr-144)
More criminal tax investigations are underway.
Two Defendants Plead Guilty in Bakersfield Mortgage Fraud SchemeRead the Press Release
FRESNO, Calif. — Lucia Chavez, 37, and her husband Joseph Chavez, 41, both of Bakersfield, pleaded guilty today to conspiracy to commit bank fraud, mail fraud, and wire fraud, in connection with a mortgage fraud scheme in Bakersfield, U.S. Attorney Benjamin B. Wagner announced. As part of their plea agreements, Lucia Chavez agreed to a personal forfeiture money judgment of $1,624,450, and Joseph Chavez agreed to a personal forfeiture money judgment of $3,092,000.
According to court documents, Lucia Chavez and Joseph Chavez conspired with seven co-defendants from 2007 to 2010 to use straw buyers to purchase residential properties in Bakersfield developed by Pershing Partners LLC, owned by Lucia Chavez, and Jara Brothers Investments (JBI), owned by her brothers, co-defendants Eliseo Jara and Sergio Jara. The conspirators paid straw buyers to purchase the properties from JBI and Pershing Partners, and funded the purchases using loans they obtained for the straw buyers from lenders based on false and fraudulent loan applications. The loan applications the conspirators submitted to lenders frequently contained false statements concerning the straw buyers’ employment status, income, assets, intent to occupy the properties as their personal residences, and source of down payments for the purchase of the properties. The conspirators concealed from the lenders that they funded certain of the straw buyers’ down payments. The conspirators also 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 straw buyers’ landlords, false pay stubs, and false verifications of employment.
This case is the product of an 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.
The court set a sentencing hearing for the Chavez defendants on July 20, 2015. The maximum sentence for the conspiracy charge is 30 years in prison and a $1 million fine. The actual sentence will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The other seven co-defendants all previously pleaded guilty in this case. Co-defendant Antonio Perez-Marcial was sentenced on May 12, 2014 to 3 years and 10 months in prison for his role in the conspiracy. Co-defendants Eliseo Jara, Sergio Jara, Arlene Mojardin, and Candace Gonzales each pleaded guilty to conspiracy to commit bank fraud, mail fraud, and wire fraud, and are scheduled to be sentenced on the following dates: May 18, 2015 (Arlene Mojardin), June 8, 2015 (Candace Gonzales), and June 22, 2015 (Eliseo Jara and Sergio Jara). Co-defendant Melissa Jara pleaded guilty to wire fraud and is to be sentenced on June 22, 2015. Co-defendant Ricardo Salinas previously pleaded guilty to bank fraud, and his sentencing is set for June 29, 2015.
Docket #: 1:12-cr-213 AWI
Last Two Defendants Sentenced in Bakersfield Mortgage Fraud SchemeRead the Press Release
FRESNO, Calif. — Evelyn Brigget Sanchez, 32, and Darling Arlette Montalvo, 34, both of Bakersfield, were sentenced today to two years in prison each for their involvement in a mortgage fraud scheme that ran from October 2005 to May 2007, United States Attorney Benjamin B. Wagner announced. Sanchez and Montalvo were convicted at trial of conspiracy to commit mail fraud, wire fraud, and bank fraud. Sanchez was also convicted of 11 counts of mail fraud, and Montalvo was also convicted of 10 counts of mail fraud and one count of money laundering.
According to court documents, between October 2005 and May 2007, Sanchez and Montalvo conspired with co-defendants Eric Hernandez, Monica Hernandez, and Patricia King to defraud mortgage lenders by submitting false loan applications and fraudulent supporting documentation, causing the lenders to fund mortgage loans for the defendants’ benefit on the basis of false and misleading information. During this time, Eric Hernandez and Evelyn Sanchez were employed at mortgage brokerages in Bakersfield. The defendants submitted loan applications to lenders that included material misstatements concerning the borrowers’ income, assets, and employment, and false statements concerning the borrowers’ intent to reside in the properties as owner-occupiers, among other false statements. The defendants also fabricated false supporting documentation and submitted it to lenders in support of the loan applications.
The court also ordered the defendants to pay forfeiture money judgments to the United States in the amounts of $1,412,100 for Sanchez and $1,017,100 for Montalvo. The court set a further hearing on June 22, 2015 to determine the restitution amounts owed to victims of the crime.
Eric Hernandez, Monica Hernandez, and Patricia King previously pleaded guilty and were sentenced for their roles in the scheme. Eric Hernandez was sentenced on Sept. 16, 2013, to 10 years and 10 months in prison. King was sentenced on April 23, 2012, to three years and one month in prison. Monica Hernandez was sentenced on January 5, 2015, to one year in prison.
This case is the product of an investigation by the Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorneys Kirk Sherriff and Henry Carbajal III prosecuted the case.
Docket #: 1:10-cr-249 AWI
Former Real Estate Agent Pleads Guilty in Connection with Investment Fraud SchemeRead the Press Release
FRESNO, Calif. — Kenneth Manuel Martin, 66, formerly of Modesto, pleaded guilty today to one count of wire fraud in connection with a Guatemalan real estate investment scheme, United States Attorney Benjamin B. Wagner announced.
Between a date unknown and August 2008, Martin induced individuals to give him money by saying that he would cause the money to be used to fund mortgage loans to borrowers in Guatemala so borrowers could purchase homes in that country. Among several false representations, Martin represented that his company would provide a real estate attorney in Guatemala who would be able to protect investor funds and would hold a grant deed in favor of the investors secured by Guatemalan real estate. He also represented that his company would provide investors who invested in his Guatemalan real estate venture a high interest rate of return and consistent monthly interest payments. Martin provided investors with conflicting explanations concerning the lack of consistent interest payments and his failure to return the investment principal of investors who requested such a return. As a result of Martin’s conduct, investors lost approximately $258,000.
This case is the product of an investigation by the Federal Bureau of Investigation and the Social Security Administration, Office of Inspector General. Assistant United States Attorneys Henry Z. Carbajal III and Grant B. Rabenn are prosecuting the case.
Martin is scheduled to appear before Senior U.S. District Judge Anthony W. Ishii on July 21, 2015, for an evidentiary hearing on sentencing issues. The maximum statutory penalty for a violation of wire fraud is 20 years in prison. The actual sentence will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Docket #: 1:11-cr-219 AWI
Mexican National Sentenced to over 12 Years in Prison for Aggravated ID Theft and Drug and Firearms OffensesRead the Press Release
SACRAMENTO, Calif. — A Mexican national was sentenced today to 12 years and one month in prison for possessing methamphetamine with intent to distribute, unlawfully possessing a firearm, and aggravated identity theft arising from false statements he made in an application for a U.S. passport, United States Attorney Benjamin B. Wagner and U.S. Department of State, Diplomatic Security Service Special Agent-In-Charge David Zebley announced.
According to court documents, Eliecer Reyes Huerta, 31, had been removed from the United States in 2006 and lacked lawful immigration status to be in the United States. On July 30, 2012, Huerta submitted an application for a U.S. passport to a passport acceptance officer in Vallejo. In the application, Huerta provided a false name belonging to a real person, a false birthdate, and a false birthplace in Puerto Rico. Huerta presented a birth certificate issued for the ID theft victim and a California driver’s license bearing Huerta’s photograph and the victim’s name and birthdate. Agents searched Huerta’s residence in Vallejo and found baggies containing methamphetamine, cocaine, and marijuana; two digital scales, miscellaneous supplies and substances that may be used in the manufacture of controlled substances. In Huerta’s bedroom closet, agents found a 9 mm semi-automatic Sig Sauer Model P226 handgun. Next to the firearm was a Sig Sauer handgun magazine loaded with seven rounds of 9 mm ammunition. Two children were living in the home at the time of the search.
“Individuals who use false or stolen identities are often engaged in other dangerous criminal activities and are a threat to the citizens of the United States," said David Zebley, Special Agent-In-Charge of the Diplomatic Security Service's San Francisco Field Office. “The Diplomatic Security Service is committed to investigating and pursuing anyone who applies for or obtains a United States passport using false documents, particularly when a U.S. Citizen's identity is stolen.”
This case was the product of an investigation by the U.S. State Department’s Diplomatic Security Service with assistance from the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the California Department of Motor Vehicles. Assistant United States Attorney Nirav Desai prosecuted the case.
Docket #: 2:13-cr-408-GEB
Federal Jury Finds Colorado Man Guilty of Kidnapping a Toddler and Producing Child PornographyRead the Press Release
WASHINGTON – After a four-day jury trial, a Colorado man was convicted by a federal jury of kidnapping and producing child pornography involving two toddlers, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Benjamin B. Wagner announced.
Shawn McCormack, 31, of Colorado Springs, Colorado, was found guilty of four counts of sexual exploitation of a child and two counts of kidnapping.
US Attorney Wagner stated, “Determined, skillful and cooperative investigative efforts by multiple agencies across the continent led law enforcement to this defendant’s door. We are gratified by today’s verdict, which we hope will provide a measure of justice to the victims, and serve as a warning to those who would seek to harm the most vulnerable among us.”
“Child pornography, when it’s released on the Internet, lives on forever,” said Michael Toms, resident agent in charge for HSI Bakersfield. “It haunts the innocent children whose abuse is depicted in the images, and brings unspeakable pain to their parents and families, knowing that untold strangers are exploiting their worst experiences for their own perverse pleasure. HSI will continue to work closely with its law enforcement partners across the country and around the globe to ensure that those who sexually exploit our children are brought to justice.”
According to evidence presented at trial, McCormack, feigning to be a friend, traveled to a couple’s residence in Bakersfield, California, and stayed as an overnight guest on multiple occasions. During several of the overnight stays, in the middle of the night, McCormack snuck the couple’s toddler out of the house and recorded his sexual abuse of the toddler in a nearby motel, outdoors and in his truck. McCormack then returned the toddler to the house before the parents awoke. The evidence demonstrated that McCormack distributed the images and videos of his abuse to others online, including an undercover officer with the Toronto Police Services.
According to the evidence presented at trial, Homeland Security Investigations agents in Boston found images and recordings distributed by McCormack on a separate defendant’s computer in Massachusetts. The agents were able to identify the date, time and hotel room where one of the videos had been produced. When agents visited that hotel, they learned that McCormack had rented that hotel room on the night when the recording was created. During the investigation, agents uncovered evidence that McCormack had recorded his abuse of both of the couple’s children.
McCormack is scheduled to be sentenced by Senior U.S. District Judge Anthony W. Ishii on July 27, 2015. McCormack faces a possible sentence of 15 to 30 years in prison for each count of production of child pornography, and 20 years to life in prison for each count of kidnapping. The 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.
This case is the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) field offices in Bakersfield, California; Colorado Springs, Colorado; and Boston, Massachusetts, the Bakersfield Police Department, the Colorado Springs Police Department, and the Toronto Police Services. Trial Attorney Maureen C. Cain of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorneys Patrick R. Delahunty and Megan A.S. Richards of the Eastern District of California prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Docket #: 1:11-cr-324-AWI
Former Fresno Police Department Deputy Chief and Six Others Indicted for Drug TraffickingRead the Press Release
FRESNO, Calif. — A federal grand jury indicted former Fresno deputy police chief Keith Foster and six others today, charging them with a variety of drug trafficking offenses, United States Attorney Benjamin B. Wagner announced.
In addition to Keith Foster, 51, the indictment includes charges against Randy Flowers, 48; Iran Dennis “Denny” Foster, 44; Rafael Guzman, 41; Jennifer Donabedian, 35; and Sarah Ybarra, 37, all of Fresno; and Ricky Reynolds, 30, of Shasta Lake. All defendants are scheduled to be arraigned on the indictment at 1:30 p.m. on Friday, April 10, 2015.
The indictment charges Keith Foster with participating in three separate conspiracies to distribute different controlled substances over the course of the past year. Keith Foster is charged with conspiring with Randy Flowers to distribute oxycodone. They are charged individually in four separate counts to distribute, or possess with the intent to distribute oxycodone. Flowers is further charged with being a felon in possession of three firearms.
Keith Foster and Rafael Guzman are charged with conspiring to distribute heroin. Keith Foster is also charged with conspiring with Reynolds, Donabedian, Ybarra and Denny Foster to distribute marijuana. Reynolds is separately charged with manufacturing marijuana, and both Reynolds and Denny Foster are charged individually in various counts alleging distribution of marijuana. Denny Foster is also charged with being a felon in possession of a firearm. Each defendant is charged in at least one count with using a cellphone in furtherance of a drug trafficking offense. Finally, Denny Foster and Guzman are charged with conspiring to distribute methamphetamine, cocaine and heroin.
This case is the product of an investigation by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives. U.S. Attorney Wagner expressed his appreciation for the hard work done by the FBI and ATF investigators in the course of the investigation. Assistant United States Attorneys Melanie L. Alsworth and Dawrence W. Rice are prosecuting the case.
If convicted, the defendants face a statutory maximum penalty of 20 years in prison and a $1 million fine for the counts charging controlled substances other than or in addition to marijuana, a maximum of five years in prison and a $250,000 fine for the marijuana-only trafficking offenses, four years in prison and a $250,000 fine for using a cellphone to facilitate the commission of a felony, and a maximum penalty of 10 years in prison and a $250,000 fine for being a felon in possession of a firearm. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Vallejo Man Arrested for Falsely Claiming More Than $3 Million in Tax RefundsRead the Press Release
SACRAMENTO, Calif. — Federal agents arrested Kenneth Knockum, 46, today at his home in Vallejo, United States Attorney Benjamin B. Wagner announced. A federal grand jury returned a three-count indictment on April 24, 2014, charging Knockum with making false claims for tax refunds on federal income tax returns.
According to the indictment, in 2009, Knockum filed three tax returns claiming fictitious income that he did not receive, withholdings that he did not make and refunds to which he was not entitled. One return was filed electronically for tax year 2008 claiming a refund of $522,786. Two returns were submitted to different IRS locations for the tax year 2007, both claiming a $1,435,813 refund.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation with assistance from the Vallejo Police Department. Assistant United States Attorney Sherry Hartel Haus is prosecuting the case.
If convicted, Knockum faces a statutory penalty of up to five years in prison and a $250,000 fine on each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
United States Attorney and California Attorney General Partner Present the Second in A Series of Awareness Trainings on Labor TraffickingRead the Press Release
SACRAMENTO, Calif. — Today, a training aimed at combatting the serious crime of labor trafficking was held, organized by U.S. Attorney Benjamin B. Wagner in partnership with California Attorney General Kamala Harris. This training, held at the Attorney General’s offices in Sacramento, was the second in a series of awareness trainings focused on forced labor and labor-related human trafficking. The first training was held in Fresno on October 24, 2014, and additional trainings are planned throughout the district and California.
U.S. Attorney Wagner stated: “Labor trafficking can be an invisible crime, because it so often goes unreported. The federal and state laws that forbid the practice have no effect when law enforcement is unaware of the violations that occur. Our goal is to train government workers, who may visit various worksites for other purposes, to recognize the signs of forced labor and to be aware of how to report it.”
“Human trafficking is the world's fastest growing criminal enterprise,” said Special Assistant Attorney General Jeff Tsai. “Labor trafficking is the most prevalent form, but it is still under-reported and under-investigated. Training our first responders and government agencies to recognize the signs of labor trafficking is an important step in helping victims and going after the traffickers. Attorney General Harris has made fighting human trafficking a priority and is proud to partner with U.S. Attorney Wagner to provide this critical training.”
The training was attended by federal, state, and local workers who visit worksites as part of their duties, including employees from the U.S. Department of Labor, the U.S. Equal Employment Opportunity Commission, California’s Employment Development Department, Department of Industrial Relations, Department of Fair Employment and Housing, Department of Alcoholic Beverage Control, Agricultural Labor Relations Board, Contractors State Licensing Board, and representatives from El Dorado County and Yolo County, and the cities of Rancho Cordova, Folsom, and Elk Grove.
Speakers from the FBI, ICE’s Homeland Security Investigations, the U.S. Department of Labor’s Office of Inspector General, and California’s Department of Industrial Relations described key indicators of labor trafficking and how to report the crime. Speakers from the International Rescue Committee presented information about labor trafficking from the trafficking survivor’s perspective, and representatives of Opening Doors Inc. led an interactive discussion of the signs of labor trafficking.
Raymond D. Greenlee, the assistant special agent in charge of Homeland Security Investigations who oversees Sacramento Homeland Security Investigations stated: “Human trafficking, including forced labor trafficking, amounts to modern day slavery and represents one of the most deplorable crimes HSI investigates. Sadly, the egregious exploitation of workers by unscrupulous individuals and businesses occurs more frequently in the Central Valley than many people realize. Our hope is that by vigorously enforcing trafficking laws and raising public awareness, we can reduce the level of exploitation and bring those responsible to justice.”
If you or anyone you know is a victim of labor trafficking, you may call the National Human Trafficking Resource Center at any time at 1 (888) 373-7888. You may also text “HELP” or “INFO” to 233733, or visit www.traffickingresourcecenter.org. You may also use these resources to report suspected human trafficking.
San Jose Woman Pleads Guilty to Heroin ConspiracyRead the Press Release
FRESNO, Calif. — Ana Lilia Angulo, 30, of San Jose, pleaded guilty today to conspiring to distribute and possess with intent to distribute nine pounds of heroin, United States Attorney Benjamin B. Wagner announced.
According to court documents, on April 23, 2013, Angulo was stopped for a traffic violation while driving a vehicle northbound on I5 near Highway 198 by Fresno County Sheriff detectives. During the stop, detectives became suspicious that Angulo was involved in transporting drugs and found several packages of heroin weighing nine pounds behind the arm rest panel of the rear passenger seat near where Angulo’s infant child was sitting in a car seat.
This case was the product of an investigation by the U.S. Drug Enforcement Administration and Fresno County Sheriff’s Office. Assistant United States Attorney Karen Escobar is prosecuting the case.
Angulo is scheduled to be sentenced by United States District Judge Lawrence J. O'Neill on August 18, 2014. Angulo faces a statutory penalty of 10 years to 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.
Reno Residents Plead Guilty to Unlawfully Possessing Counterfeit Currency and over 1,000 Access Devices in Angels CampRead the Press Release
SACRAMENTO, Calif. —William Theodore Lewis, 50, and Lori Marie Dahl, 50, a married couple of Reno, Nevada, pleaded guilty today to possessing counterfeit U.S. currency and counterfeit or unauthorized access devices, United States Attorney Benjamin B. Wagner announced.
According to court documents, on May 14, 2013, the Angels Camp Police Department received a call from a Save Mart employee, reporting that a man had attempted to pass a counterfeit $20 bill. The chief of the department responded to the scene, identified a man matching the description the caller gave, and arrested Lewis. A search of Lewis’s person produced three additional counterfeit $20 bills.
After Lewis’s arrest, law enforcement searched the hotel were Lewis and Dahl were staying and the stolen rental vehicle they had driven from Reno. Law enforcement found evidence of counterfeiting activity including wholly and partially printed counterfeit U.S. currency in various denominations, a printer, and various solvents and equipment associated with the manufacture of counterfeit currency. Law enforcement personnel also found evidence of access device fraud and identity theft in Lewis and Dahl’s room at the motel and in the vehicle. They possessed over 1,000 unauthorized or counterfeit access devices such as credit, debit, and prepaid cards. Additionally, law enforcement found access device-making equipment including blank plastic cards, seals, and hologram stickers, and a card printer to be used for printing credit cards. They also possessed several lists with personal identifiers and information of many individuals.
This case is the product of an investigation by the United States Secret Service and the Angels Camp Police Department. Assistant United States Attorney Nirav Desai is prosecuting the case.
Both Lewis and Dahl remain in custody and are scheduled to be sentenced by Judge Kimberly J. Mueller on December 10, 2014. Lewis and Dahl each face a maximum statutory penalty of 25 years in prison, a $250,000 fine, and five years of supervised release. 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.
Rancho Cordova Man Indicted for Passport and Immigration FraudRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment today against Satnam Singh, 54, of Rancho Cordova, charging him with passport fraud, unlawful procurement of naturalization and citizenship, making a false statement under oath in a matter relating to naturalization and citizenship, and use of a fraudulently obtained naturalization certificate, United States Attorney Benjamin B. Wagner announced.
According to court documents, Satnam Singh immigrated to the United States from India in the 1980s and naturalized as a United States citizen in 1996. However, in 1993, Satnam Singh filed an application for asylum under a fake identity “Rupinder Singh,” and also was naturalized under that second, false identity in 2012. Also in 2012, Satnam Singh successfully filed an application for a U.S. Passport in the false name “Rupinder Singh,” using the naturalization certificate issued to Rupinder Singh as proof of U.S. citizenship; He traveled internationally using the Rupinder Singh passport at least twice in 2013.
This case is the product of an investigation by the U.S. Department of State, Diplomatic Security Service. Assistant U.S. Attorney Nirav Desai is prosecuting the case.
Singh was released on a $150,000 bond and will be arraigned on the indictment on December 10, 2014.
If convicted, Singh faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Prison Inmate Sentenced for Conspiracy to Smuggle Contraband into the Taft Correctional InstitutionRead the Press Release
FRESNO, Calif. —Gerardo Alvarez-Montanez, 32, an inmate at the Taft Federal Correctional Institution, was sentenced by United States District Judge Anthony W. Ishii today to five years in prison for conspiracy to provide and possess contraband in prison, United States Attorney Benjamin B. Wagner announced.
According to court documents, between November 2013 and February 27, 2014, Alvarez-Montanez recruited and then conspired with correctional officer Ramon Cano 28, of Bakersfield, to smuggle cellphones, cash, alcohol and controlled substances into the prison in return for cash.
This case is the product of an investigation by the Federal Bureau of Investigation and the U.S. Department of Justice Office of the Inspector General. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
On August 25, 2014, Cano pleaded guilty today to conspiring to provide and possess contraband in prison. He is scheduled to be sentenced on December 15, 2014. He faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Modesto Man Pleads Guilty in Tax Fraud ConspiracyRead the Press Release
FRESNO, Calif. — Heath Lee Roberson, 39, of Modesto, pleaded guilty on Monday to conspiring to defraud the United States, United States Attorney Benjamin B. Wagner announced.
According to court documents, from about December 2010 to May 2011, Roberson and his former spouse obtained personal identifying information from more than 40 individuals. After this information was used to generate false tax returns, Roberson and his former spouse funneled the tax refunds into accounts they controlled. The false tax returns sought over $121,000 in tax refunds.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Michael G. Tierney is prosecuting the case.
Roberson is currently in custody and is scheduled to be sentenced by United States District Judge Anthony W. Ishii on July 7, 2014. He faces a maximum penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Marysville Man Sentenced for Racially Motivated Assault on White Man and African-American WomanRead the Press Release
SACRAMENTO, Calif. — Perry Sylvester Jackson, 28, of Marysville, was sentenced today by U.S. District Judge John A. Mendez to five years and 10 months in prison for violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act for his role in a 2011 racially motivated attack on a white man and an African-American woman, United States Attorney Benjamin B. Wagner announced. Jackson, who previously pleaded guilty on Dec. 17, 2013, was also ordered to serve three years of supervised release following his prison sentence and to pay $175 in restitution. Jackson is the second of three defendants to be sentenced in the case.
According to court documents, on April 18, 2011, around 10:45 p.m., a white man and an African-American woman parked their car at a convenience store in Marysville. Shortly afterward, Jackson, Billy James Hammett, 30, of Marysville, and Anthony Merrell Tyler, 33, of Olivehurst, initiated an unprovoked attack on the man and woman based on race. Jackson punched the male victim twice in the head through the open passenger window. Co-defendant Hammett kicked the woman in the chest, and Tyler smashed the car’s windshield with a crowbar. As the attack continued, the woman managed to take refuge inside the convenience store, and the three assailants then beat the male victim in the parking lot. He sustained abrasions on his right forearm and knees, while the woman suffered bruising to her chest.
On March 25, 2014, Hammett, was sentenced to seven years and three months in prison in connection with the incident. Parole has been abolished in the federal system, and defendants are required by law to serve at least 85 percent of the prison sentence.
Tyler is scheduled for sentencing on July 8, 2014. He faces a statutory maximum sentence of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the FBI. The case is being prosecuted by U.S. Attorney Wagner and Trial Attorney Chiraag Bains of the Civil Rights Division.
Federal Court Marijuana Prosecution UpdateRead the Press Release
FRESNO, Calif. — One defendant was sentenced and one pleaded guilty today in two separate cases involving marijuana cultivation operations in Fresno and Kern Counties, according to U.S. Attorney Benjamin B. Wagner.
1,429 Marijuana Plants Seized from Squaw Valley Grow (1:12-cr-352 AWI)
United States District Judge Anthony W. Ishii sentenced Bounhome Singharath, 63, of Las Vegas, to two years in prison. On March 10, 2014, Singharath pleaded guilty and acknowledged that law enforcement officers had found 1,429 marijuana plants at a grow site on Ripple Lane in Squaw Valley in eastern Fresno County. Singharath was leaving the grow site in knee-high rubber boots and camouflage pants when he encountered the officers. Singharath said he is a resident of Las Vegas and had been living at the grow site for approximately two months for the purpose of growing marijuana. This case was the product of an investigation by the U.S. Drug Enforcement Administration (DEA) and Fresno County Sheriff’s Office.9,746 Marijuana Plants, 2 Firearms, Illegal Pesticides Seized in Sequoia National Forest Grow (1:12-cr-221 LJO)
Marcelina Botello Charles, 46, of Murrieta, Calif. pleaded guilty to conspiring to manufacture, distribute and possess with intent to distribute 9,749 marijuana plants at a grow site in the Lilly Canyon area of the Sequoia National Forest. She also pleaded guilty to distributing illegal pesticides, in violation of the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) and agreed to make restitution to the U.S. Forest Service for damage caused by the marijuana cultivation operation.According to court documents, the public land sustained extensive damage as a result of the marijuana cultivation activities there. Native oak trees and other vegetation were killed or cut down to make room for the marijuana plants. The soil was tilled, and fertilizers, pesticides, and rodenticides were spread throughout the site. Cans of a common Mexican rat poison, Fosfuro de Zinc and “Ratone: fosfuro de zinc,” and a Mexican insecticide, “QúFuran,” were found at both the cultivation site and the residence where Charles temporarily resided in Bakersfield, after she was found delivering supplies to the marijuana cultivation operation. In addition to the pesticides, two handguns and numerous items relating to marijuana cultivation were seized.
Botello Charles is scheduled for sentencing on August 11, 2014, by United States District Judge Lawrence J. O’Neill. The drug conspiracy carries a maximum prison term of 20 years in prison and a $4 million fine. The FIFRA violation carries a maximum penalty of one year in prison and a maximum fine of $25,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the U.S. Forest Service, DEA, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), U.S. Environmental Protection Agency Criminal Investigation Division (EPA-CID), and the Kern County Sheriff’s Department.
Assistant United States Attorney Karen Escobar is prosecuting both cases.
Canadian Woman Pleads Guilty to Conspiracy to Distribute Approximately 20 Kilograms of CocaineRead the Press Release
FRESNO, Calif. —Heather Lynn Necheff, 47, of Regina, Saskatchewan Canada, pleaded guilty yesterday to conspiracy to distribute and possess to distribute cocaine, United States Attorney Benjamin B. Wagner announced.
According to court documents, on December 17, 2013, Necheff’s vehicle was stopped for a traffic violation by a California Highway Patrol officer in Kern County in the Buttonwillow area. The officer obtained permission to search the vehicle and found approximately 20 kilograms of cocaine wrapped in individual duct-taped packages inside a suitcase. Necheff admitted that she was transporting the cocaine from Los Angeles to Seattle for eventual importation into Canada.
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the California Highway Patrol. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
Necheff is scheduled to be sentenced by Judge Lawrence J. O'Neill on July 21, 2014. Necheff faces a maximum statutory penalty of 20 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Australian Investigation Leads to Alturas Man; Sentenced Today to Nearly 20 Years in Prison for Child PornographyRead the Press Release
SACRAMENTO, Calif. — Michael Elliot Papac, 47, of Alturas, was sentenced today by United States District Judge John A. Mendez to 19 years and seven months in prison to be followed by a lifetime of serviced release for receipt and distribution of child pornography, United States Attorney Benjamin B. Wagner announced.
This case was the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) with assistance from the Modoc County Sheriff’s Office and the Queensland Police Service in Australia. Assistant United States Attorney Josh F. Sigal prosecuted the case.
According to court documents, Papac was arrested on February 14, 2014, following a referral by the Queensland Police Service in Australia regarding the potential sexual abuse of a minor. A covert Internet investigator in Queensland come into contact with Papac on a Russian website known for being a source of child pornography. back to Papac in Alturas. Papac had posted photos of a sleeping 8-year-old girl with her pajama top unbuttoned. He discussed his plan to sedate and molest her while she slept and to take and distribute photographs of the molestation. With the assistance of Australian police, HSI agents were able to trace Papac’s email to his residence in Alturas and arrest him before he was able to act on his plan. In addition, on at least three separate occasions between February 7, 2014, and February 10, 2014, he sent and received child pornography.
Papac pleaded guilty to the charges on June 24, 2014. He had been convicted in 2005 in Modoc County for lewd acts with a minor and had served six years in prison.
At sentencing, Judge Mendez noted that Papac “learned nothing” from his prior state prison term and explained that the defendant has “created and continues to create a danger to the public,” and that but for the “terrific” work of law enforcement, “further damage was not done” to the victim.
“This case shows the extraordinary level of collaboration among law enforcement agencies around the globe to combat the online sexual exploitation of children,” said Tatum King, acting special agent in charge of HSI San Francisco. “While the initial lead was uncovered on the other side of the world, owing to remarkable international cooperation and astute detective work, HSI special agents were able to locate this young girl and rescue her. For that, we’re indebted to the efforts of the Queensland Police Service and, closer to home, to the Modoc County Sheriff’s Department.”
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.
Tehama County Sheriff’s Office’s Contribution to the Mission of the U.S. Attorney’s Office and Department of Justice RecognizedRead the Press Release
RED BLUFF, Calif. — United States Attorney Benjamin B. Wagner is pleased to announce that the Tehama County Sheriff’s Office is the 2014 winner of the Eastern District of California Law Enforcement Award for Outstanding Law Enforcement Agency in the Sacramento Division. This award is one of four awards presented annually to a law enforcement agency in the Eastern District of California’s Sacramento and Fresno divisions to recognize outstanding collaboration between federal, state and local law enforcement in addressing public safety issues in this region.
The Tehama County Sheriff’s Office is receiving the Sacramento Division’s Outstanding Law Enforcement Agency Award for its critical efforts in keeping the peace this past summer when tensions arose at the Rolling Hills Casino, operated by the Paskenta Band of Nomlaki Indians, a federally recognized tribe within the Eastern District. The Paskenta tribe was embroiled in an intra-tribal dispute that led to the creation of rival security forces. These armed security forces engaged in a stand-off at the site of the tribe’s casino in Corning that lasted almost two weeks while members of the general public were on site, and in harm’s way. During the extended stand-off, the Tehama County Sheriff’s office almost single-handedly kept the peace with personnel who were on site around the clock. The Sheriff’s Office maintained open lines of communication with all parties to the dispute and were in constant contact with partner agencies in the state and federal government. The Sheriff’s Office respected the sovereignty of the tribe and never attempted to take a side in the dispute. Deputies treated all involved with civility and respect, and deserve credit for avoiding what could have been a tragic situation.
“The Tehama County Sheriff’s Office is truly deserving of recognition and our thanks for keeping the peace at Rolling Hills,” said U.S. Attorney Wagner. “The members of the Office, including Sheriff Dave Hencratt, Lieutenant David Greer, Assistant Sheriff Phillip Johnston, and all of the deputies who served during this tense time exhibited all of the best qualities that law enforcement can aspire to. They were brave, tireless, and respectful, and they showed an absolute commitment to doing everything possible to avoid physical harm to our citizens. It is our privilege to work alongside them in serving our District.”Three Indicted on Firearms ChargesRead the Press Release
FRESNO, Calif. — A federal grand jury has returned separate indictments today against three individuals who have previously been convicted of a felony, charging each with federal firearm offenses, United States Attorney Benjamin B. Wagner announced.
Dionicio Ramirez 28, of Fresno, was charged with one count of being a felon in possession of handgun and one count of being a felon in possession of ammunition. According to court documents, on March 24, 2015, Ramirez shot at an occupied vehicle and then drove away in his truck. When officers stopped Ramirez, he threw a Springfield Armory magazine loaded with 9mm ammunition out of the window, and a loaded 9mm handgun was found inside the truck. A 9mm casing was found at the scene of the shooting.
James Ernest Johnson, 26, of Fresno, was charged with three counts of being a felon in possession of a firearm. According to court documents, on three occasions between June 2014 and March 26, 2015, during traffic stops, police found a loaded firearm and narcotics hidden in a vehicle that Johnson was driving.
Jose Cuellar, 37, of Mexico, was charged with being a felon in possession of a loaded shotgun. According to court documents, on March 23, 2015, Fresno Police Department officers encountered Cuellar and saw the stock of a shotgun sticking out of the waistband of his pants. Cuellar reached for the firearm, and after a struggle, officers gained control of the firearm and arrested him.
These cases are the product of investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the United States Marshal’s Service (USMS), the Fresno Police Department, the California Highway Patrol, and the Fresno County Sheriff’s Office. The cases are part of Project Safe Neighborhoods, which is a joint initiative to combat gang and gun violence. Assistant U.S. Attorney Kimberly Sanchez is prosecuting the cases.
If convicted, Ramirez faces 15 years to life in prison and a $250,000 fine on each count, Johnson faces up to 10 years in prison a $250,000 fine on each of the three counts, and Jose Cuellar 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 statutory factors and the Federal Sentencing Guidelines. The charges are allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Stockton Man Sentenced to over 7 Years in Prison on Federal Firearm ChargesRead the Press Release
SACRAMENTO, Calif. — Austin Reed, 42, of Stockton, was sentenced today by United States District Judge Morrison C. England Jr. to seven years and eight months in prison for being a felon in possession of a firearm, United States Attorney Benjamin B. Wagner announced.
According to court documents, on November 16, 2012, officers attempted to make contact with Reed in Stockton. Reed ran from the officers and while in flight, threw an assault-style firearm from his person. The officers recovered the firearm, a 9mm pistol, with 25 live rounds in an extended magazine.
“This sentencing demonstrates ATF’s efforts in pursuing convicted felons and seizing firearms, and ultimately preventing impending violent acts from occurring in our neighborhoods,” stated Joseph M. Riehl Special Agent in Charge. “ATF and our partners will not surrender to those who are a threat to our communities and cannot lawfully possess a firearm.”
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms, & Explosives, the Stockton Police Department, and the San Joaquin District Attorney’s Office. Assistant United States Attorney Olusere Olowoyeye prosecuted the case.
Sacramento Man Pleads Guilty to Possession of Child PornographyRead the Press Release
SACRAMENTO, Calif. — Four days before a trial was set to begin, Robert M. Schaefer, 68, of Sacramento, pleaded guilty today to possession of child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, from 2001 to 2010, Schaefer uploaded thousands of images of children being sexually exploited, including children under 10, to various file‑sharing websites. He would surf the Internet looking for people seeking particular types of photos, which he would then share from his extensive collection. His computers were seized once by the Sacramento Police Department in 2006, but Schaefer rebuilt his pornography collection and began collecting and sharing the materials again. The FBI seized his computers again on 2010 after the German Federal Police provided a tip that Schaefer had recently been uploading child pornography to a file-sharing site there.
This case is the product of an investigation by the Federal Bureau of Investigation, the Sacramento Internet Crimes against Children Task Force, and the Sacramento Police Department. Assistant United States Attorneys Matthew G. Morris and Brian A. Fogerty are prosecuting the case.
Schaefer is scheduled to be sentenced by Judge Morrison C. England Jr. on June 25, 2015. Schaefer faces a maximum statutory penalty of 10 years in prison and a $250,000 fine on each of the two counts. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Department of Justice and U.S. Attorney’s Office Mark the Fifth Anniversary of the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention ActRead the Press Release
SACRAMENTO, Calif. — On Thursday, April 2, the United States Attorney’s Office, in partnership with the United States Department of Justice, the Matthew Shepard Foundation, the Napa Valley Criminal Justice Training Center, the Central California Intelligence Center, and the Sacramento State Pride Center participated in events commemorating the 5th anniversary of the passage of the landmark Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act.
In the morning, the U.S. Attorney’s Office hosted local law enforcement representatives at the Central California Intelligence Center (CCIC) in McClellan Park. The four-hour Hate Crimes Prevention Act training featured instruction on federal and state hate crimes statutes, with particular emphasis on the importance of accurate reporting of hate crimes. The program featured several special guest speakers, including Judy Shepard, mother of Matthew Shepard (after whom the statute was named), U.S. Attorney Benjamin Wagner, and representatives from the Civil Rights Division of the U.S. Department of Justice and the Federal Bureau of Investigation. The training is part of the Civil Rights Division’s nationwide effort to provide training on the Hate Crimes Prevention Act to local law enforcement entities.
Later this evening, Judy Shepard, U.S. Attorney Wagner and others will address members of the community at a commemoration of the Act’s anniversary held at California State University Sacramento. Among other things, the event will focus on the history of the Shepard Byrd Hate Crimes Prevention Act, and current federal, state and local enforcement efforts to combat hate crimes.
“The Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act is a critical tool in our ongoing fight against invidious bias motivated violence. The Civil Rights Division is committed to working with our U.S. Attorney partners, local law enforcement, and community members to increase awareness about the Act and to continue our robust enforcement efforts. This training in Sacramento is the first of five regional trainings and community events that we will co-host around the country to mark the fifth anniversary of the Act's passage. Our hope is that these events will lead to greater collaboration between the community and law enforcement, more effective strategies to combat hate crimes, and enhanced public safety.”
“The five year anniversary of the Hate Crimes Prevention Act is an occasion to both celebrate the passage of this critical legislation and the significant enforcement actions that have already occurred, and to dedicate ourselves to the work necessary to enforce the Act even more effectively going forward,” said U.S. Attorney Wagner. “Our local law enforcement partners are dedicated to confronting this issue, and the training that my office is providing to them is part of a nationwide effort by the Department of Justice to increase our collective ability to investigate and prosecute hate crimes. We owe a great debt to the Shepard family for their unceasing efforts in support of this cause, and I am particularly grateful for their presence and participation in our efforts in Sacramento.”Mrs. Shepard, who will speak to the victim’s perspective on hate crimes, said: “On the long road to passing this law, Dennis and I always kept in mind the true purpose, which was to not only see that justice is done for hate crime victims and their loved ones, but more importantly to educate the public about the sheer size of this problem and the community about the exact ways it can protect them. Trainings like these are vital to ensure the Act delivers its full potential.”
The Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act enables the Justice Department to prosecute crimes motivated by race, color, religion and national origin without having to show that the victim was engaged in a federally protected activity. The Shepard-Byrd Act also empowers the department to prosecute crimes committed because of a person’s sexual orientation, gender identity, gender or disability as hate crimes.
In 1998, Matthew Shepard — a 21-year-old student at the University of Wyoming — was robbed, tortured, tied to a fence along a country road and left to die by two men who offered him a ride home from a local bar. The investigation into Matthew Shepard’s death found strong evidence that his attackers targeted him because he was gay.
That same year, James Byrd Jr. — a 49-year-old African-American man living in Jasper, Texas — accepted a ride home from three men. They drove him to the remote edge of town where they beat him severely, tied him by the ankles to the back of a pickup truck, and dragged him to his death. The three men responsible for his killing were well-known white supremacists.
While the men responsible for the Shepard and Byrd killings were ultimately convicted of murder, none of them was prosecuted for committing a hate crime. At the time these murders were committed, neither Wyoming nor Texas had a hate crimes law, and existing federal hate crimes protections did not include violent acts based on the victim’s sexual orientation and only covered racial violence against those engaged in a federally protected activity, such as voting or attending school.
Modesto Man Pleads Guilty to Defrauding Real Estate InvestorsRead the Press Release
FRESNO, Calif. — Xue Heu, 38, of Modesto, pleaded guilty today to two counts of wire fraud in connection with a fraudulent real estate investment scheme, United States Attorney Benjamin B. Wagner announced.
According to court documents, between August 2007 and October 2013, Heu solicited individuals to invest in real estate businesses that purchased and sold real estate. Heu claimed to be an officer of Liquid Assets & Land Investments Inc. and Capital Land Investments LLC. In furtherance of the scheme and to persuade the investors that the investment opportunities were legitimate, Heu gave investors fraudulent documents, such as forged and fictitious grant deeds, fraudulent HUD-1 settlement statements, and portfolio listings of properties he claimed he intended to purchase, including properties that had already been sold and were no longer available to purchase. In his plea agreement, Heu admitted to defrauding investors of approximately $412,896.
This case is the product of an investigation by the Federal Bureau of Investigation and the Stanislaus County District Attorney’s Office. Assistant United States Attorney Christopher Baker is prosecuting the case.
Heu is scheduled to be sentenced by U.S. District Judge Lawrence J. O’Neill on June 8, 2015. The maximum statutory penalty for each of the two counts of wire fraud is 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.
Galt Man Sentenced to over 17 Years in Prison for Production of Child PornographyRead the Press Release
SACRAMENTO, Calif. — Tyler Jordan, 32, of Galt, was sentenced today by United States District Judge Garland E. Burrell Jr. to 17 and a half years in prison and a life-term of supervised release for production of child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, Jordan offered files of child pornography for download on a file-trading website. Law enforcement downloaded 60 child pornography files from him. During a subsequent search of Jordan’s computer, law enforcement found over 20,000 images and videos that showed minors engaged in sexually explicit conduct. Jordan admitted to inappropriately touching two children, both of whom were under the age of 12, and taking sexually explicit pictures of them.
This case was investigated by the Sacramento Internet Crimes Against Children (ICAC) Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant United States Attorney Justin Lee 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.Ten Men Indicted for Trafficking Counterfeit Media in Central ValleyRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment Thursday against 10 defendants, charging them with conspiracy to commit criminal copyright infringement and related crimes, and trafficking in counterfeit labels, documentation and packaging, United States Attorney Benjamin B. Wagner announced.
The defendants charged in the indictment are: Victor Flores Fuentes, 38; Edgar Hipatl Rodriguez, 25; Angel Gomez, 34; Ramiro Mendes, 34; Efrain Lozada Rosas, 33; Antonio Morales, 31; Enrique Aguilar, 25; and Eric Ivanez, 21, all of San Jose; Jesus Cuevas Lopez, 24, of southern California; and Cornelio Rojas, 50, of Ceres.
According to court documents, on March 13, 2015, warehouse and office space used by the defendants were found to contain tens of thousands of counterfeit music CDs and movie DVDs. The counterfeit materials included movie titles that were in theatrical release and not yet available for legitimate sale on DVD. The defendants distributed the counterfeit CDs and DVDs for resale in Atwater, Modesto, Stockton, Turlock, and throughout California.
This case is the product of an investigation by the Sacramento Intellectual Property Rights Task Force composed of the Federal Bureau of Investigation and the Sacramento County Sheriff’s Office. Assistant United States Attorney Henry Z. Carbajal III is prosecuting the case.
Cornelio Rojas is in custody and is scheduled to be arraigned in Fresno on Monday, March 30, 2015. The remaining defendants are in custody in San Jose and are expected to make their initial appearance in court in Fresno in the next few weeks.
If convicted, the defendants face a maximum statutory penalty of five years in prison and a $250,000 fine for the conspiracy and trafficking in counterfeit labels charges. 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.
Jury Convicts Modesto Man for Production of Child Pornography and Attempted Sex Trafficking of A MinorRead the Press Release
FRESNO, Calif. — After a five–day trial, a federal jury found Ricky Davis, 36, of Modesto, guilty late Wednesday afternoon of production of child pornography and attempted sex trafficking of a minor, United States Attorney Benjamin B. Wagner announced. The trial was held before United States District Judge Anthony W. Ishii.
According to evidence presented at trial, in September 2011 Davis invited a 13-year-old minor to his home for the ostensible purpose of giving her a tattoo. After her arrival, Davis instead took sexually explicit photographs of her and posted them online within an advertisement for prostitution. Davis also provided the minor’s contact information to someone responding to this advertisement. An analysis of digital evidence revealed the photographs to have been on Davis’s cellphone and computer, and metadata from the pictures established that they were taken from a cellphone matching the make and model of defendant’s phone. After the presentation of evidence, the jury deliberated for less than three hours before reaching its verdict.
This case is the product of an investigation by the Federal Bureau of Investigation, the Sacramento Police Department, and the California Highway Patrol, all members of the FBI’s Sacramento-based Child Exploitation Task Force, as well as the South San Francisco Police Department and California Department of Corrections and Rehabilitation. Assistant United States Attorneys Brian W. Enos and Alyson A. Berg are prosecuting the case.
Davis has been in custody since his arrest on January 26, 2012, and is scheduled to be sentenced by Judge Ishii on June 22, 2015. Davis faces a maximum statutory penalty of 30 years in prison for the production of child pornography count and a maximum statutory penalty of life in prison for the attempted sex trafficking count, as well as a $250,000 fine for each count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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 US Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to prosecute those who sexually exploit children and to identify victims. For more information about PSC, visit www.usdoj.gov/psc.
Fresno and Bakersfield Men Indicted for Laser Strikes on Law Enforcement HelicoptersRead the Press Release
FRESNO, Calif. — A federal grand jury returned two separate indictments Thursday, charging one defendant with a laser strike of a police helicopter in Fresno, and one with a laser strike of a sheriff’s helicopter in Bakersfield, United States Attorney Benjamin B. Wagner announced.
Laser Strikes of Fresno PD Helicopter
Johnny Alexander Quenga, 28, of Fresno, was charged with interfering with the safe operation of Air 1, a Fresno Police Department helicopter, and aiming the beam of a green laser at the aircraft. According to court documents, on March 5, 2015, Air 1 was repeatedly struck by a powerful green laser attached to an airsoft rifle that was seized from Quenga’s residence. As a result, it is alleged the airmen experienced various vision difficulties. Quenga is scheduled for arraignment on the indictment today at 1:00 p.m.Laser Strikes of Kern County Sheriff’s Helicopter
According to court documents, on September 12, 2014, Barry Lee Bowser Jr., 51, of Bakersfield, aimed the beam of a green laser at Air-1, a Kern County Sheriff’s helicopter while it was providing support to ground units responding to a man armed with a gun. The mission was diverted when the cockpit of Air-1 was illuminated by a bright green laser. It is alleged that the illumination caused the pilot to experience vision difficulties. Bowser fled from Bakersfield following the incident last September and was recently arrested in San Luis Obispo. Bowser is scheduled for arraignment on the indictment on March 30, 2015. He was ordered detained as a flight risk.The case against Quenga is the product of an investigation by the Federal Bureau of Investigation and the Fresno Police Department. The case against Bowser is the product of an investigation by the FBI, Kern County Sheriff’s Office, and the Bakersfield Police Department. Assistant U.S. Attorney Karen A. Escobar is prosecuting both cases.
Quenga faces up to 20 years in prison and a fine of up to $250,000 if convicted of interfering with the safe operation of an aircraft, and five years in prison and a fine of up to $250,000 if convicted of aiming the beam of a laser pointer at an aircraft. Bowser faces a prison term of five years and a fine of up to $250,000. Any sentence imposed on either defendant, 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; both defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Reports of laser attacks have increased dramatically in recent years as powerful laser devices have become more affordable and widely available to the public. In 2014, the Federal Aviation Administration (FAA) received 3,894 reports of incidents involving laser strikes on aircraft. In the Eastern District of California, which encompasses 34 counties in the eastern portion of California, there were 150 reported incidents, with the majority in Bakersfield, Fresno, and Modesto. Lasers can completely incapacitate pilots who are trying to fly safely to their destination, endangering their crew members, passengers and people on the ground.
Thousands of laser attacks go unreported every year. If you have information about a lasing incident, or see someone pointing a laser at an aircraft, call your local FBI field office or dial 911.
Fresno Woman Pleads Guilty to Bomb Threat Hoax at Fresno City CollegeRead the Press Release
FRESNO, Calif. —Judy Gutierrez, 22, of Fresno, pleaded guilty today to violating federal law by making a false bomb threat (false information and hoax), United States Attorney Benjamin B. Wagner announced.
According to court documents, on January 22, 2014, Judy Gutierrez emailed a bomb threat to her biology professor at Fresno City College resulting in classes in the science building being cancelled for the day. The science building was evacuated and searched, but no bomb was found by police.
This case is the product of an investigation by the Federal Bureau of Investigation and the State Center Community College District Police Department. Assistant United States Attorney Duce Rice is prosecuting the case.
Gutierrez is scheduled to be sentenced by United States District Judge Anthony W. Ishii on July 27, 2015. Gutierrez faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Sacramento Men Indicted for Methamphetamine TraffickingRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a five-count indictment today against Lagranger Jones, 36, and Lamonte DeShannon Rush, 45, both of Sacramento, charging them with conspiracy to distribute methamphetamine and methamphetamine distribution, United States Attorney Benjamin B. Wagner announced.
According to court documents, between October 2014 and February 2015, Jones and Rush sold methamphetamine during controlled purchases conducted by DEA Special Agents in the Sacramento area. Court documents allege that Jones has a lengthy criminal history.
This case was the product of an investigation by the Drug Enforcement Administration and the Sacramento Police Department. Assistant United States Attorney Jason Hitt is prosecuting the case.
Jones was arrested by federal agents on March 9, 2015. He was ordered detained pending trial on the same day. Rush remains at large.
If convicted of the most serious charge in the indictment, both defendants face a maximum statutory penalty of life in prison, a mandatory minimum of 10 years in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.