Eastern District of California
Press releases recorded for this federal judicial district.
Modesto Man Pleads Guilty to Producing Child PornographyRead the Press Release
SACRAMENTO, Calif. — Danny M. Shatswell Jr., 44, of Modesto, pleaded guilty today to producing visual depictions of a minor engaged in sexually explicit conduct, United States Attorney Benjamin B. Wagner announced.
According to court documents, Shatswell used a webcam to produce sexually explicit images of a minor. The minor victim reported to law enforcement that Shatswell was abusing her. When they searched his electronic storage devices and equipment they recovered sexually explicit images that Shatswell produced of his victim in 2010 and 2011.
This case is the product of an investigation by the Modesto Police Department, the Federal Bureau of Investigation, and the Sacramento County Sheriff's Office’s High Tech Crimes Task Force. Assistant U.S. Attorney Michelle Rodriguez is prosecuting the case.
Shatswell is scheduled to be sentenced on June 4, 2015, by U.S. District Judge Troy L. Nunley. Shatswell faces a sentence of 15 years to life in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Delano Couple Indicted in Unemployment Insurance SchemeRead the Press Release
FRESNO, Calif. — United States Attorney Benjamin B. Wagner announced today the unsealing of a 10-count indictment following the arrest of Raul Oropeza Lopez, 47, and Ana Maria Oropeza, 41, both of Delano. The Oropezas are charged in the indictment with mail fraud and conspiracy to commit mail fraud in connection with a scheme to submit fraudulent claims for unemployment benefits.
According to court documents, Raul Oropeza Lopez obtained social security numbers, names, and other personal identifying information of U.S. citizens and legal residents and then used the information to provide undocumented workers with false identities so they could work in the United States as farm laborers. Then, when the workers were laid off at the end of the growing season, Oropeza and his wife allegedly filed fraudulent unemployment insurance claims in the names of the assumed identities, relying on the work performed by the undocumented workers to claim unemployment insurance benefits for the Oropezas’ benefit. Over a period of six years, Oropeza and his wife submitted more than 520 fraudulent unemployment insurance claims on behalf of over 70 individuals, collecting more than $1.8 million.
This case is the product of a joint investigation by the U.S. Department of Labor, Office of Inspector General; U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Social Security Administration, Office of Inspector General; the Bureau of Alcohol, Tobacco, Firearms and Explosives; United States Postal Inspection Service; and the California Employment Development Department, Criminal Investigations Division. Assistant United States Attorney Mark J. McKeon is prosecuting the case.
Both defendants were released on bond. Their next court appearance is before Magistrate Judge Sheila K. Oberto on May 4, 2015.
If convicted, each defendant faces a maximum statutory penalty of 20 years in prison and a $250,000 fine on each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.Three Defendants Plead Guilty in Bakersfield Mortgage Fraud SchemeRead the Press Release
FRESNO, Calif. — Three members of the same family entered guilty pleas today in connection with a $5.6 million mortgage fraud scheme in Bakersfield, U.S. Attorney Benjamin B. Wagner announced.
Bakersfield residents Eliseo Jara Jr., 35, and his brother, Sergio Jara, 33, pleaded guilty to conspiracy to commit bank fraud, mail fraud, and wire fraud. Sergio Jara’s wife, Melissa Jara, 34, pleaded guilty to wire fraud.
According to court documents, from 2007 to 2010, the Jara brothers conspired with others to use straw buyers to purchase residential properties in Bakersfield developed by Jara Brothers Investments (JBI) and Pershing Partners LLC. 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 based on false and fraudulent loan applications. Melissa Jara admitted to causing false loan applications and supporting documents to be submitted to a lender in order for a straw buyer to finance the purchase of a property from an LLC that she owned and controlled.
As part of their plea agreements, each defendant agreed to forfeit their interests in six properties in Bakersfield, a 2007 Lexus, and approximately $110,419 seized from a bank account. Additionally, Eliseo Jara agreed to a personal forfeiture money judgment of $5,664,250. Sergio Jara agreed to a personal forfeiture money judgment of $4,743,500. Melissa Jara agreed to a personal forfeiture money judgment of $534,750. Melissa Jara also agreed to deposit $100,000 with the Court toward her victim restitution obligation prior to her sentencing hearing.
This case is the product of a joint investigation by the Internal Revenue Service‑Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorneys Kirk E. Sherriff, Henry Z. Carbajal III, and Megan A. S. Richards are prosecuting the case.
The maximum sentence for the conspiracy charge and the wire fraud 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.
Four co-defendants have previously pleaded guilty. Antonio Perez-Marcial was sentenced on May 12, 2014 to 46 months in prison. Arlene Mojardin is scheduled to be sentenced on May 18, 2015. Candace Gonzales is scheduled to be sentenced on June 8, 2015. Ricardo Salinas is set for sentencing on June 29, 2015. The indictment charges two additional defendants, who are set to proceed to trial on April 28, 2015, before Judge Ishii. The charges as to these defendants are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Taft Man Sentenced to 10 Years in Prison for Possession with Intent to Distribute Methamphetamine and HeroinRead the Press Release
FRESNO, Calif. — David Edward Hampton Jr., 34, of Taft, was sentenced today by United States District Judge Lawrence J. O’Neil to 10 years and one month in prison for possession with intent to distribute methamphetamine and heroin, United States Attorney Benjamin B. Wagner announced.
According to court documents, in February 2014, agents learned that Hampton had mailed a package to Rapid City, South Dakota from Taft. It was believed that the package was destined for one of Hampton’s methamphetamine distributors. The package was intercepted and found to contain approximately 444 grams of methamphetamine. On March 24, 2014, Hampton mailed another package from Taft to South Dakota, which was also seized and found to contain approximately 167 grams of methamphetamine.
On March 25, 2014, a federal search warrant was executed on Hampton’s residence and agents found approximately 459 grams of methamphetamine and 16 grams of heroin. Hampton admitted that the narcotics seized from his residence were his and that he intended to distribute them for profit.
This case was the product of an investigation by the Violent Crime Task Force which includes the Bakersfield Police Department, the Kern County Sheriff’s Office, the Kern County Probation Office, and the Federal Bureau of Investigation. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
Fresno Woman Pleads Guilty to Embezzling Money from Vocational CollegeRead the Press Release
FRESNO, Calif. —Sandi Marie Hollifield, 49, of Fresno, pleaded guilty today to theft from a program receiving federal funds, United States Attorney Benjamin B. Wagner announced.
According to court documents, Hollifield worked under contract at Galen College, a now-defunct vocational college in Fresno, as a bookkeeper. Beginning in September 2008, Hollifield embezzled money from Galen College by creating false invoices for supplies and charging Galen College for those supplies. These charges caused Galen College to issue checks paying the false invoices to Hollifield under the name of her fictitious business, “Total Business Forms.” Between September 15, 2008, and April 13, 2010, Hollifield deposited Galen College checks made payable to Total Business Forms totaling approximately $85,448.
This case is the product of an investigation by the Department of Education, Office of Inspector General and the Federal Bureau of Investigation. Assistant United States Attorney Henry Z. Carbajal III is prosecuting the case.
Hollifield is scheduled to be sentenced by United States District Judge Lawrence J. O'Neill on June 15, 2015. Hollifield faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Federal Jury Finds Stockton Woman Guilty on All Counts in Criminal Tax CaseRead the Press Release
SACRAMENTO, Calif. — Terrylyn McCain, 67, of Stockton, was found guilty today by a federal jury of a scheme to defraud the United States by filing false tax returns and buying gold with the proceeds of the fraud, United States Attorney Benjamin B. Wagner announced.
The jury found McCain guilty of four counts of mail fraud in the fraud scheme for mailing false tax returns, four counts of making false claims against the United States by falsifying personal income tax returns for tax years 2005 to 2008, and three counts of money laundering for buying gold with proceeds of the fraud. After a five-day trial, the jury deliberated less than two hours.
According to court documents and evidence introduced at trial, McCain mailed tax returns to the IRS and claimed that banks, tow truck companies, department stores, interior designers and even her gardener had withheld income due to her. To support her scheme, she utilized false documents that indicated significant tax withholdings, including 1099–OID forms that were purportedly issued by financial institutions such as Bank of Stockton and national retailers such as Costco and Target. In reality, funds were never withheld, the 1099–OID forms were fraudulent, and McCain’s tax returns were falsely inflated by hundreds of thousands of dollars.
In total, McCain filed at least 12 fraudulent returns that sought nearly $3 million in tax refunds. In just one instance, early in the scheme, the IRS refunded $156,373 to McCain. Within the month, she had used the refund money to purchase approximately $62,000 in gold coins, forming the basis for the money laundering charges.
According to documents and evidence introduced at trial, the IRS attempted to collect the money it mistakenly paid McCain in response to one of her fraudulent tax returns. The trial evidence revealed that McCain refused to return the mistaken payment, going so far as to fraudulently prepare a counterfeit cashier’s check using an IRS payment voucher to satisfy her tax debt.
U.S. Attorney Wagner said: “As millions of Americans prepare to file their tax returns in the coming weeks, the jury’s swift guilty verdict on all counts in this case is a reminder that these few who attempt to cheat their country should expect little sympathy from federal law enforcement or from the citizens who are called to serve their civic duty as jurors.”
This case is the product of an investigation by the Internal Revenue Service-Criminal Investigation. Assistant United States Attorneys William S. Wong and Kevin Khasigian are prosecuting the case.
McCain is scheduled to be sentenced by United States District Judge Troy L. Nunley on June 4, 2015. She was ordered detained in custody pending sentencing. She faces a maximum sentence of 20 years in prison for the mail fraud counts, five years in prison for the false claims against the United States counts, and 20 years in prison for the money laundering 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.
Attorney General Eric Holder Announces Selection of Stockton as A Pilot Site for National Initiative for Building Community Trust and JusticeRead the Press Release
SACRAMENTO, Calif. — As part of the Department of Justice’s ongoing commitment to strengthening the relationship between law enforcement and the communities they serve and protect, Attorney General Eric Holder announced that Stockton, California has been selected as one of only six cities to serve as a pilot site for the National Initiative for Building Community Trust and Justice.
United States Attorney Benjamin Wagner was present in Washington D.C. with the Attorney General when the formal announcement of Stockton’s selection was made earlier today. This $4.75 million national initiative will seek to assess the police-community relationship in each of the six pilot sites, as well as develop a detailed site-specific plan that will enhance procedural justice, reduce bias and support reconciliation. The other five pilot sites are Birmingham, Alabama; Ft. Worth, Texas; Gary, Indiana; Minneapolis, Minnesota; and Pittsburgh, Pennsylvania.
Stockton’s selection was based in part on its size, crime rates, and demographics. However, a critical element in its selection was the Stockton Police Department's willingness to openly participate in this initiative.
Stockton’s City Manager Kurt Wilson said, “Chief Eric Jones is one of the most respected law enforcement leaders in the country. He has been fully engaged locally, statewide, and nationally. We are thankful for his leadership, and by his team joining this initiative, we feel it will boost these leading edge efforts because some of his evidence-based strategies that are already underway fit into this model.”
“The Department of Justice is committed to using innovative strategies to enhance procedural justice, reduce bias and support reconciliation in communities where trust has been eroded,” said Attorney General Holder. “By helping to develop programs that serve their own diverse experiences and environments, these selected cities will serve on the leading edge of our effort to confront pressing issues in communities around the country.”
“I am grateful for Stockton’s enthusiastic participation in this initiative,” said U.S. Attorney Wagner. “Recent events across the country highlight the profound consequences where there is a lack of trust between law enforcement and the communities it serves. Stockton is committed to building and maintaining trust with its community, and ensuring that the difficulties experienced elsewhere do not occur here. Through this initiative, Stockton will set examples that can be used throughout our District.”
“The Stockton Police Department places a high value on building strong relationships with our citizens, and many recent efforts have been undertaken in the City of Stockton to build community trust,” said Chief Eric Jones. “I am proud of the men and women of the Stockton Police Department because they have all helped us to be successful with our Ceasefire Crime-Fighting Strategy and our Police Legitimacy and Procedural Justice Training and application.”
Attorney General Holder also announced that the Department of Justice is providing additional training and technical assistance to police departments and communities that are not pilot sites. Through the Office of Justice Program’s Diagnostic Center (www.OJPDiagnosticCenter.org), police departments and community groups can request training, peer mentoring, expert consultation and other types of assistance on implicit bias, procedural justice and racial reconciliation. Additionally, the initiative launched a new online clearinghouse that includes up-to-date information about what works to build trust between citizens and law enforcement. The clearinghouse can be found at www.trustandjustice.org.
The Justice Department established the National Initiative for Building Community Trust and Justice as part President Obama’s groundbreaking launch of the My Brother’s Keeper initiative, which seeks to create opportunities for all young people in this country—regardless of their background—to improve their lives and reach their full potential.
The three-year grant has been awarded to a consortium of national law enforcement experts from John Jay College of Criminal Justice, Yale Law School, the Center for Policing Equity at UCLA, and the Urban Institute. The initiative is guided by a board of advisors that includes national leaders from law enforcement, academia and faith-based groups, as well as community stakeholders and civil rights advocates. In a holistic approach, the initiative simultaneously addresses the tenets of procedural justice, reducing implicit bias and facilitating racial reconciliation. The initiative complements and is advised by other Justice Department components such as the Office of Justice Programs, the Office of Community Oriented Policing Services, the Office on Violence Against Women, the Civil Rights Division and the Community Relations Service.Sentence and Guilty Plea in Cases Involving Theft of Military Equipment Returned from Iraq and AfghanistanRead the Press Release
SACRAMENTO, Calif. — One defendant pleaded guilty and another was sentenced today in two related cases involving the theft of military equipment that was being inventoried at the U.S. Army base in Herlong, California, United States Attorney Benjamin B. Wagner announced.
Tony Herrin, 36, of Reno, Nevada, pleaded guilty today to theft of government property, and Devon Biggs, 38, formerly of Reno, Nevada, was sentenced today by U.S. District Judge Kimberly J. Mueller to 16 months in prison and restitution of $200,000 for the theft of government property.
According to court documents, Herrin and Biggs worked as civilian employees at the Sierra Army Depot (SIAD) in Herlong. As part of their job responsibilities, Biggs and Herrin received, catalogued, and inventoried military equipment returned from Iraq and Afghanistan. Biggs and Herrin worked in the same building, and the two stole numerous items of sophisticated military equipment. Specifically, Herrin played a role in stealing 10 Taser devices, three Vectronix systems used to detect targets (total value $221,787), six military grade flashlights (total value $11,267), and 25 thermal imaging sights. The total value of all these items is approximately $411,000.
Biggs also stole numerous items of sensitive military equipment: machine gun components, night vision goggles, laser GHOST Illumination technology, and low-light video recording equipment.
These cases are the product of investigations by the Law Enforcement Division of the United States Army, Naval Criminal Investigative Service, and the Federal Bureau of Investigation. Assistant United States Attorneys Jean Hobler and Christiaan Highsmith are prosecuting the cases.
Herrin is scheduled to be sentenced by United States District Judge Kimberly J. Mueller on May 27, 2015. Herrin faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.El Dorado Hills Man Indicted for Embezzling More Than $400,000 from Former EmployerRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Jeffrey Lamson, 51, of El Dorado Hills, charging him with wire fraud, United States Attorney Benjamin B. Wagner announced.
According to court documents, from at least 2009 through 2011, Lamson embezzled over $400,000 from a company located in Placer and Sacramento Counties while he served that company as controller. Lamson used company funds to make unauthorized payments to himself and others and made payments to a fictitious vendor, controlled by Lamson, for services that were never performed.
This case is the product of an investigation by the Internal Revenue Service‑Criminal Investigation. Assistant United States Attorneys Shelley D. Weger and Jean M. Hobler are prosecuting the case.
If convicted, Lamson faces a maximum statutory penalty of 20 years in prison and a fine of $250,000 or twice the gain or loss caused by the 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.
Guilty Plea in Bakersfield Mortgage Fraud SchemeRead the Press Release
FRESNO, Calif. — Arlene Jeanette Mojardin, 32, 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.
According to court documents, from 2007 to 2010, Mojardin conspired with others to use straw buyers to purchase residential properties in Bakersfield. They paid straw buyers to purchase properties developed by Jara Brothers Investments (JBI) and Pershing Partners LLC and funded the purchases using loans they obtained based on false and fraudulent loan applications. The loan applications contained false statements concerning the straw buyers’ employment status, income, assets, intent to occupy the properties as their personal residences, and source of down payments for the purchase of the properties. The conspirators concealed from the lenders that the property developers funded some 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 a 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.
Mojardin was a licensed real estate agent and handled many of the real estate transactions in furtherance of the conspiracy. She was also employed at relevant times at JBI, was a property buyer from Pershing Partners on at least two of the real estate transactions in the conspiracy, and obtained loans based on false and fraudulent information. Mojardin received proceeds from the conspiracy including payments for purchasing property as a nominee buyer and payments for acting as the real estate agent on many of the other transactions in the conspiracy. Mojardin admitted she caused lenders approximately $3,713,600 in losses due to her role in the conspiracy.
This case is the product of 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.
Mojardin is scheduled to be sentenced on May 18, 2015, by Senior United States District Judge Anthony W. Ishii. 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.
Co-defendant Antonio Perez-Marcial was sentenced on May 12, 2014, to 46 months in prison for his role in the conspiracy. Co-defendant Candace Gonzales previously pleaded guilty to conspiracy to commit bank fraud, mail fraud, and wire fraud, and her sentencing is set for June 8, 2015. Co-defendant Ricardo Salinas previously pleaded guilty to bank fraud, and his sentencing is set for June 29, 2015. The indictment charges five additional defendants, who are set to proceed to trial on April 28, 2015, before Judge Ishii. The charges as to these defendants are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Fresno Pharmacy Agrees to Pay $1 Million in Civil Penalties to Resolve Controlled Substances Act ClaimsRead the Press Release
FRESNO, Calif. — Cedar Pharmacy has agreed to pay $1 million to settle claims that it failed to properly record hundreds of transactions involving controlled substances, failed to maintain complete and accurate records, and failed to follow prescription issuance guidelines in violation of the Controlled Substances Act (CSA), United States Attorney Benjamin Wagner announced today.
An audit and investigation of Cedar Pharmacy began in April 2013 when a drug offender on probation was found to be in possession of approximately $9,000 in cash and 34 prescription receipts with different patient names and addresses. All of the prescription receipts were from Cedar Pharmacy. The prescriptions, which were primarily for oxycodone, had been written by Dr. Jose Luis Flores who surrendered his medical license on April 16, 2014, following an investigation by the Medical Board of California. Cedar Pharmacy disclosed that the prescriptions had been filled a month earlier for a man who had paid in cash and had brought in 30 different driver’s licenses.
Cedar Pharmacy has also agreed to comply with a detailed action plan developed by the U.S. Attorney’s Office and the Drug Enforcement Administration. Per the action plan, employees who handle controlled substances must immediately complete a training program that addresses methods of detecting and preventing diversion as well as the requirements of federal law that a prescription may not be filled when a pharmacist has reason to know that it was issued for other than a legitimate medical purpose or by a practitioner acting outside the usual course of professional practice.
Should Cedar Pharmacy successfully complete the terms of the action plan and have no material violations, the United States will reduce the amount ultimately paid in settlement. The payment and action plan resolve the United States’ claims that Cedar Pharmacy violated the CSA.
“The abuse of prescription painkillers has become epidemic,” said United States Attorney Wagner. “The Controlled Substances Act is a tool to assist the DEA with better monitoring the movement of prescription drugs to end users. When pharmacies are lax in their record keeping or supervision of their drug-dispensing operations as required by the CSA, opportunities arise for the diversion of powerful drugs to unintended users who may be injured by them. Our office will continue to work with our law enforcement partners to investigate these cases and enforce federal law.”
“This significant civil penalty demonstrates our commitment to preventing the diversion of these substances by holding those accountable who are responsible for their distribution. The public can report illicit pharmaceutical activities online at www.DEAdiversion.usdoj.gov,” stated DEA Acting Special Agent in Charge Bruce C. Balzano. “The successful outcome of this investigation represents cooperation between DEA, the Clovis Police Department, Fresno County Sheriff’s Office, Kings County Sheriff’s Office and the California State Board of Pharmacy.”
Assistant United States Attorney Marilee L. Miller prosecuted the case.
Escondido Resident Sentenced for Bulk Cash SmugglingRead the Press Release
FRESNO, Calif. — Martin Rojas-Cuamba (Rojas), 46, of Escondido, was sentenced today to 364 days in custody for smuggling cash proceeds from the cultivation of marijuana in Tulare, Kern, and San Diego Counties, U.S. Attorney Benjamin B. Wagner announced. U.S. District Judge Lawrence J. O’Neill also ordered the forfeiture of $53,750 in drug proceeds that was seized from Rojas’ residence.
According to court documents, Rojas intended to smuggle $88,950 in cash from the United States to Mexico to evade the currency transaction reporting requirement. Rojas was connected to several marijuana cultivation operations on agricultural lands in Terra Bella and Bakersfield. During a search of his residence, law enforcement officers seized $53,750 in cash. During a search of the cultivation operation in Terra Bella, law enforcement officers also seized records showing wire transfers of money to Mexico from Rojas’ address in Escondido.
This case was the product of an investigation by the U.S. Forest Service, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Drug Enforcement Administration, the Tulare County Sheriff’s Office, the Kern County Sheriff’s Office, the Ventura County Sheriff’s Office, the San Luis Obispo County Sheriff’s Office, and the Escondido Police Department. Assistant United States Attorney Karen Escobar prosecuted the case.
Bakersfield Man Sentenced to over 14 Years in Prison for His Conviction in A Large Methamphetamine ConspiracyRead the Press Release
Fresno, California –Miguel Marquez, 30, of Bakersfield, was sentenced today to 14 years and eight months in prison for conspiracy to distribute and possess with intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced. U.S. District Judge Lawrence J. O’Neill also ordered Marquez to forfeit over $30,000.
According to court documents, an investigation indicated that on October 22, 2014, Marquez would be receiving a shipment of crystal methamphetamine from his source of supply. On that day, task force agents set up surveillance at Marquez’s residence. Agents observed Marquez meet with two individuals who drove to Marquez’s residence from the Los Angeles area to deliver the suspected narcotics. Agents arrested Marquez and the two individuals identified as Luis Alfonso Mendivil, 23, of Riverside, and Jonathen Leyva, 28, of Rialto. Subsequent searches resulted in the seizure of $30,630 from Mendivil and Leyva’s vehicle, approximately 2.6 kilograms of crystal methamphetamine from inside Marquez’s home, and a firearm. In addition to the crystal meth seized from Marquez’s residence, officers also located a stash location just outside of Marquez’s home where officers seized a stolen loaded machine pistol and approximately 1.9 kilograms of additional crystal methamphetamine.
Mendivil and Leyva pleaded guilty to use of an interstate facility to aid racketeering, and were sentenced to five years in prison.
This case is the product of an investigation by the Drug Enforcement Administration and the Kern County Sheriff’s Office. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
Bakersfield Man Sentenced to 5 Years and 9 Months in Prison for Being A Felon in Possession of A FirearmRead the Press Release
FRESNO, Calif. –Vincent Deleon, 32, of Bakersfield, was sentenced today by United States District Court Judge Lawrence J. O’Neil to five years and nine months in prison for possession of a firearm by a previously convicted felon, United States Attorney Benjamin B. Wagner announced.
On November 6, 2013, the FBI’s Violent Crime Task Force received information that Deleon, who was wanted on two Kern County felony warrants, was in an apartment on Monterey Street in Bakersfield. Task force agents set up surveillance and when Deleon came out of the residence, they identified themselves and told him to stop. Deleon immediately fled from the agents and in his flight, threw a Smith & Wesson 9 mm pistol over a fence. Agents arrested Deleon and found the firearm at the adjacent property.
This case was the product of an investigation by the Violent Crime Task Force, which includes Federal Bureau of Investigation, the Kern County Sheriff’s Office, and the Kern County Probation Office. Assistant U.S. Attorney Brian K. Delaney prosecuted the case.
Convicted Sacramento Businessman Ordered to Pay over $108 Million in Restitution for Decade-Long SchemeRead the Press Release
SACRAMENTO, Calif. — On Thursday, a federal judge ordered Deepal Wannakuwatte, 64, of Sacramento, to pay $108,199,425 in restitution to victims of his long-running fraud scheme, United States Attorney Benjamin B. Wagner announced today. This ruling concludes the federal criminal prosecution; civil proceedings in the United States Bankruptcy Court are ongoing.
On November 13, 2014, United States District Judge Troy L. Nunley sentenced Wannakuwatte to 20 years in prison and ordered him to forfeit multiple properties, vehicles, business interests, and bank accounts totaling at least $3.5 million to be used to provide restitution to victims.
According to court documents, from 2002 to 2014, Wannakuwatte convinced nearly 200 victims, including individuals, corporate entities, and financial institutions, to invest in a number of business opportunities by misrepresenting the financial worth of himself and his companies. Ultimately, Wannakuwatte obtained well over $230 million from his victims, some of which was returned to victims as illusory profit payments. Contrary to his representations, Wannakuwatte used much of the money he obtained to pay himself and his family, make lulling payments to participants in his fraudulent investment schemes, and pay outstanding debts unrelated to his false representations.
“Today’s order brings to an end the criminal proceedings against Mr. Wannakuwatte, who operated the largest Ponzi scheme in Sacramento history,” said U.S. Attorney Wagner. “The agony of his victims, however, continues. While Mr. Wannakuwatte contemplates his situation from behind prison walls in the coming years, my office will continue to try to identify and liquidate ill-gotten gains that rightfully belong to his victims.”
This case was 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, Office of Investigations. Assistant United States Attorneys Michael M. Beckwith and Kevin C. Khasigian prosecuted the case.
Six Defendants Indicted on Federal Firearms ChargesRead the Press Release
FRESNO, Calif. — A federal grand jury has returned separate indictments against Mikkey Santos, 18; Tyrone Smith, 19; Javier Lamadrid, 33; Humberto Garcia, 23; and Michael Johnson, 35, all of Fresno; and Samuel Zaragoza-Villanueva, 37, of Mexico, for violating federal firearm laws, United States Attorney Benjamin B. Wagner announced today.
The indictments resulted from joint investigations by the Fresno Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Department of Homeland Security/Homeland Security Investigations (HSI), and the Federal Bureau of Investigation (FBI). The cases are part of Project Safe Neighborhoods, which is a joint initiative to combat gang and gun violence. The cases are being prosecuted by Assistant U.S. Attorney Kimberly Sanchez.
Samuel Zaragoza-Villanueva was charged with being an alien in possession of ammunition. According to court documents, on February 26, 2015, members of the Multi-Agency Gang Enforcement Consortium (MAGEC) conducted a search at the defendant’s residence and seized ammunition. The government alleges that the defendant is a citizen and native of Mexico, and is unlawfully present in the United States.Mikkey Santos was charged with possession of an unregistered firearm. According to court documents, on February 12, 2015, Fresno Police Department officers served a search warrant at the defendant’s apartment in Fresno. An unregistered rifle, with a barrel length of less than 16 inches and an overall length less than 26 inches, was recovered during the search.
Tyrone Smith was charged with being a felon in possession of a firearm. According to court documents, on February 16, 2015, Fresno Police Department officers attempted to stop a vehicle in which the defendant was a passenger. The vehicle fled at high speed and officers pursued it. The defendant threw a handgun out of the window during the pursuit, and was ultimately apprehended.
Javier LaMadrid was charged with being a felon in possession of a firearm. According to court documents, on February 4, 2015 Fresno Police Department officers made a traffic stop on a vehicle in which the defendant was a passenger. A small child and another adult female were also in the car. Police found a loaded handgun between the passenger-side door and the passenger seat where the defendant was seated.Humberto Garcia was charged with being a felon in possession of a firearm. According to court documents, on February 21, 2015, the defendant was in possession of a shotgun. The defendant has multiple prior felony convictions.
Michael Johnson was charged with being a felon in possession of a firearm. According to court documents, on February 19, 2015, the defendant was in possession of a Glock, .40 caliber firearm. The defendant has multiple prior felony convictions.
“ATF remains committed to working with Fresno Police Department and our other federal partners to combat gun violence and remove violent offenders from the streets of Fresno,” said Joseph M. Riehl, Special Agent in Charge of the ATF San Francisco Field Division. “Project Safe Neighborhoods is one way that ATF agents are working to remove guns from the hands of convicted felons and violent criminals.”
If convicted, the defendants face up to 10 years imprisonment, a $250,000 fine (except for Santos, who faces up to a $10,000 fine), and 3 years of supervised release. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.Jury Convicts Major Tobacco Distributor in $16 Million Excise Tax Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — After a seven–day trial, a federal jury found Moo Hoon “Steve” Kim, 54, resident of Cypress, Calif., guilty today of mail fraud, United States Attorney Benjamin B. Wagner announced. The trial was held before United States District Judge William B. Shubb.
Between 2006 and 2009, Kim was responsible for bringing over $35 million in untaxed other tobacco products (“OTP”) into the State of California. OTP is any tobacco product other than cigarettes, and consists primarily of cigars, chewing tobacco, and leaf tobacco.
The evidence at trial showed that Kim went to great lengths to conceal his OTP purchases from the State. He used front companies, set up by others at his direction, to disguise his illegal purchases and subsequent sales of untaxed OTP from out-of-state sources. These companies included KS Wholesale located in Vernon, Calif., and Cheap Cig Distributor located in Paramount, Calif. Kim also used another front company as a retail outlet for some of the untaxed OTP that he sold through his company, Jobber’s Wholesale. That business was Discounted Tobacco located in Long Beach, Calif. As a result of Kim’s scheme, the State of California was defrauded of over $16 million in excise taxes. A large percentage of the proceeds of the excise tax are used to fund California’s early childhood development program, First 5 California.
This case is the product of investigations by a specialized task force comprising the U.S. Attorney’s Office, the California Attorney General’s office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the California State Board of Equalization. For the last several years, these offices have supported a task force dedicated to combating the systemic problem of tobacco excise tax evasion in California. In 2007, the BOE estimated that the state lost approximately $90 million in unstamped tobacco excise taxes to contraband distributors, and approximately $120 million in excise taxes for taxed stamped tobacco like cigarettes. Because California has a relatively high tobacco excise tax rate, it is a frequent target for contraband tobacco smugglers and tax evaders. Assistant United States Attorney Michael D. Anderson and U.S. D.O.J. Antitrust Division Trial Attorney Richard A. Powers, designated as a Special Assistant United States Attorney, prosecuted the case.
“The fraudulent importation and sale of untaxed tobacco punishes honest merchants who play by the rules, and it deprives the State of California of needed tax revenue,” said U.S. Attorney Wagner. “We are gratified by the jury’s verdict, as the conviction of Steve Kim is a significant milestone in our ongoing partnership with the State of California and the ATF to put an end to this practice.”
“ATF works diligently to investigate and disrupt tobacco traffickers. These investigations are arduous and require a long-term commitment from members of our task force and prosecution team,” stated ATF Special Agent in Charge, Joseph M. Riehl. “Today’s guilty verdict is a win for law enforcement, the state of California, and our community.”
“Today’s verdict is a significant win in our battle against the underground economy,” said Board of Equalization Chairman Jerome E. Horton. “It reinforces the need for continued, persistent, and intelligent prosecution of these types of crimes."
Kim is scheduled to be sentenced by Judge Shubb on June 1, 2015. Kim faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Alan Tikal Sentenced to 24 Years in Prison for Leading Massive Foreclosure Rescue ScamRead the Press Release
SACRAMENTO, Calif. — Alan David Tikal, 46, formerly of Brentwood, Calif., was sentenced today by United States District Judge Troy L. Nunley to 24 years in prison for his convictions on eleven counts of mail fraud and one count of mail fraud relating to a foreclosure rescue scam, United States Attorney Benjamin B. Wagner announced. Tikal was convicted following a bench trial before Judge Nunley on September 15, 2014.
According to evidence presented at trial, between January 7, 2010, and August 20, 2013, Tikal was the principal behind a business known as KATN, which targeted distressed homeowners experiencing difficulties making their existing monthly mortgage payments. Many of the victims did not speak English. Tikal promised to reduce their outstanding mortgage debt by 75%, falsely claiming he was a registered private banker with access to an enormous line of credit and the ability to pay off homeowners’ mortgage debts in full. Tikal told homeowners that in return for various fees and payments, their existing loan obligations would be extinguished, and the homeowners would then owe new loans to Tikal in an amount equaling 25% of their original obligation. In reliance upon misrepresentations made by Tikal, many of these homeowners stopped making payments on their existing mortgage loans and lost their homes to foreclosure as a result.
In fact, Tikal never made any payments to financial institutions on behalf of homeowners in satisfaction of their pre-existing mortgage debt obligations; the purported “loan” payments paid to Tikal were simply spent by himself, his family and his associates for personal use; and there was not a single instance in which a homeowner’s debt was paid, forgiven or otherwise extinguished as a result of the mortgage relief program. In all, Tikal and his associated convinced more than 1,000 homeowners in California and other states to participate in the program. As a result of their participation, many homeowners became delinquent on their loans and ultimately had their homes foreclosed upon. Those homeowners paid more than $5,800,000 in fees and monthly payments into the program. Of that, more than at least $2,500,000 was paid into accounts controlled by Tikal and/or his family.
In sentencing Tikal, Judge Nunley referenced the victims who, as a result of their participation in Tikal’s scam, “can’t reside in houses they had, in some instances, spent their entire lives trying to pay off.” Judge Nunley called Tikal “the mastermind behind this whole scheme,” and said Tikal was deserving of the sentence he was receiving.
“The financial crisis that hit our communities so hard made it very difficult for a lot of people to make ends meet,“ said U.S. Attorney Wagner. “Alan Tikal cynically took advantage of the desperation those people felt for his own profit, stealing payments meant to preserve family homes. Although we cannot undo the harm Tikal inflicted, today’s sentence provides a measure of justice.”
“Alan Tikal’s actions were illegal and will not be tolerated in California. He and his partners defrauded hundreds of hard-working Californians who were fighting to keep their homes during our state’s foreclosure crisis,” Attorney General Harris said. “This predatory scheme robbed families of their life savings and in many cases, their homes. I thank our California Mortgage Fraud Strike Force and the U.S. Department of Justice for their work to bring these individuals to justice.”
“The defendant preyed on desperate homeowners who were caught up in the financial melt-down and looking for ways to stay in their homes”, said José M. Martínez, Special Agent in Charge, IRS-Criminal Investigation. “Rather than making payments to the banks, the defendants pocketed the money. Tikal lived a lavish lifestyle with new cars, chartered private airplane flights and a $5,000 suit. While this sentence cannot reverse the damage caused by Mr. Tikal and his co-defendants, it highlights the ongoing commitment of IRS-CI to hold accountable those involved in these types of crimes.”
“Justice was served today when Tikal was sentenced to 24 years in federal prison for defrauding struggling homeowners out of millions of dollars, sending their homes into foreclosure, and destroying their lives,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “Tikal’s silver tongue and gilded promises enticed victims, many of whom weren’t fluent in English and were simply holding out hope of saving their homes from foreclosure, yet Tikal’s words were nothing more than lies and gibberish that he masqueraded as financial sophistication. Tikal’s arrogance was supreme; he named his scheme ‘KATN Trust,’ short for ‘Kicking Ass, Taking Names,’ and even after being charged and locked-up, he continued to operate the scam from his jail cell with the help of co-conspirators. Today’s sentence is a warning to anyone either considering or engaged in a scheme to defraud struggling homeowners and a reminder of the seriousness and moral reprehensibility of their crime. SIGTARP stands united with our law enforcement partners to bring swift justice to perpetrators of fraud related to TARP.”
This case is a joint prosecution by the United States Attorney’s Office for the Eastern District of California and the California Attorney General’s Office. It is the product of extensive investigation by the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), Internal Revenue Service - Criminal Investigation, the California Department of Justice, and the Stanislaus County District Attorney’s Office. Assistant United States Attorney Philip Ferrari and California Deputy Attorney General Maggy Krell are prosecuting the case.
A hearing on restitution has been scheduled for March 26, 2016. Co-defendant Ray Kornfeld was previously sentenced to a term of imprisonment of 5 years. Co-defendant Tamara Tikal previously entered a guilty plea and is scheduled to be sentenced by Judge Nunley on April 23, 2015.Ninth Defendant Sentenced in Elk Grove Mortgage Fraud CaseRead the Press Release
SACRAMENTO, Calif. — Dana Faulkner, 48, resident of Oakland, CA, was sentenced today by United States District Judge John A. Mendez to one year in prison for conspiring to commit mail fraud and make false statements in loan applications, United States Attorney Benjamin B. Wagner announced. In addition, Faulkner was ordered to pay over $3 million in restitution to defrauded financial institutions.
Faulkner is the ninth defendant to be sentenced as the result of a large scale mortgage fraud scheme operating out of the Elk Grove headquarters of Liberty Real Estate & Investment Company and Liberty Mortgage Company. Hoda Samuel, the owner and principal operator of both companies, was convicted after a jury trial in January of 2013, and is currently serving a ten year prison sentence.
According to Faulkner’s plea agreement, and to the evidence presented at Samuel’s trial, in 2006 and 2007 the defendants participated in a scheme to defraud whereby misrepresentations were made to various financial institutions to convince them to finance the purchase of residential properties. Loan applications prepared by Liberty Mortgage Company misrepresented borrowers’ abilities to pay back loans, by overstating and/or falsifying employment, income and assets. In addition, the defendants drafted purchase contracts making offers significantly above what the sellers were asking for their properties. The excess amounts were paid back to the purchasers at escrow, disguised as payments for fictional repairs and remodeling to the properties. In many cases, these kickbacks were falsely described as payments to render the properties compliant with the Americans with Disabilities Act. Although the indictment identified 30 such fraudulent residential real estate transactions, the evidence at trial was that the fraud at Liberty was pervasive.
Although she was unlicensed, defendant Faulkner acted as both a real estate agent and loan officer as a Liberty employee. She recruited people to serves as buyers, sometimes of more than one property. She convinced the buyers that they could qualify for home loans, and added that they would receive cash payments at the close of transactions to help cover mortgage payments and pay off other bills. She filled out fraudulent loan applications, and she helped to arrange for the disguised kickback payments to be made to her clients.Almost all of the 30 properties listed in the indictment went into foreclosure, resulting in a loss of over $5 million to financial institutions.
"Mortgage fraud is an incredibly destructive crime that leaves many victims in its wake," said José M. Martínez, Special Agent in Charge, IRS-Criminal Investigation. "The defendant played a significant role in a scheme that hurt so many people and affected so many of our communities. IRS-CI is committed to pursuing those who line their pockets with profits from these schemes."
“Faulkner made false promises and statements to benefit from a scheme that left ruin in its wake,” said Special Agent in Charge Monica M. Miller of the FBI’s Sacramento field office. “These sorts of schemes damaged neighborhoods and the regional economy, flooding the market with foreclosed homes. The FBI will continue to work with its law enforcement partners to ensure such crimes do not go unpunished.”
This case was the product of an investigation by the Internal Revenue Service – Criminal Investigations, and the Federal Bureau of Investigation. Assistant United States Attorneys Philip Ferrari and Todd Pickles prosecuted the case.
Federal Jury Convicts Roseville Woman for Her Role in A Bank Fraud and Identity Theft SchemeRead the Press Release
SACRAMENTO, Calif. — On Monday evening, a federal jury found Rachel Siders, 39, of Roseville, guilty of bank fraud, making a false loan application, and committing aggravated identity theft, United States Attorney Benjamin B. Wagner announced. Siders’ week-long trial was held before United States District Judge John A. Mendez.
According to evidence presented at trial, in 2008 Siders and co-defendant Theo Adams applied for a home equity line of credit in the name of Adams’ relative on an underwater property owned by Adams in Roseville. As part of the false loan application, Siders and Adams submitted false tax returns for the relative with significantly inflated income. Siders and Adams also submitted mortgage application documents with forged signatures. Siders, a notary public at the time of the crime, falsely notarized the loan application documents, which were sent to Washington Mutual Bank as part of the mortgage application. Washington Mutual Bank relied upon the falsely notarized documents and the false tax returns in deciding to provide a $250,000 line of credit. Siders received $170,000 of the proceeds and Adams received the rest. They made minimal payments on the line of credit and the loan defaulted. Siders’ counts of conviction all relate to this transaction. The jury was unable to reach a verdict on counts relating to a second charged transaction.
This case was the product of an investigation by the Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorneys Matthew D. Segal, Christiaan H. Highsmith, and Michele Beckwith are prosecuting the case.
Siders is scheduled to be sentenced by Judge Mendez on June 9, 2015. She faces a maximum statutory penalty of 30 years in prison and a $1,000,000 fine on the bank fraud charge, 30 years in prison and a $1,000,000 fine on the false loan application charge, and two years in prison and a $250,000 fine on the aggravated identity theft charge. 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. Theo Adams pleaded guilty on September 3, 2013, and has yet to be sentenced.
Sacramento Man Sentenced to 41 Months in Prison for Structuring Financial TransactionsRead the Press Release
Leonid Yakovlev Withdrew In Cash the Proceeds of a Credit Card Fraud Scheme
SACRAMENTO, Calif. — Leonid “Leo” Yakovlev, 43, of Sacramento, was sentenced today by Senior United States District Judge William B. Shubb to 41 months in prison for structuring financial transactions to avoid bank reporting requirements, United States Attorney Benjamin B. Wagner announced.
According to court documents, between April 2008 and August 2008, Yakovlev permitted the use of his bank account in a fraudulent credit card scheme in which thousands of American Express customers were charged fees ranging from $11 to $100, purportedly for “business services” provided by an entity called “24Hour.” During that period, Yakovlev controlled a bank account in the name of 24 Hour Corp. As a result of the fraudulent scheme, nearly $1 million was deposited in Yakovlev’s bank account. Yakovlev withdrew a total of approximately $230,000 from the account by making multiple cash withdrawals in smaller amounts in an effort to ensure the bank would not file mandatory currency transaction reports for the withdrawals.
When sentencing Yakovlev, Judge Shubb observed that Yakovlev was “responsible for misappropriating the identities of approximately 20,000 individuals. Every time one of those individuals got charged for something they didn’t do, they were violated. You caused that. You understood it was wrong because you carefully made your withdrawals” to avoid the reporting requirements.
“The defendant structured his transactions to hide the true source of his money,” said José M. Martínez, Special Agent in Charge, IRS-Criminal Investigation. “Currency report information filed by banks and financial institutions provides a paper trail, or roadmap, for investigations involving financial crimes. IRS-CI will continue to pursue individuals who deliberately break up cash transactions to avoid the filing of CTRs and to conceal their illegal acts.”
This case was the product of an investigation by the Internal Revenue Service – Criminal Investigation. Assistant United States Attorneys Jean M. Hobler and Brian A. Fogerty prosecuted the case.Patterson Man Convicted of Fraudulent Short Sale Scheme Sentenced to Prison and Ordered to Forfeit HouseRead the Press Release
FRESNO, Calif. — Agustin Simon, 53, of Patterson, was sentenced today by U.S. District Judge Lawrence J. O’Neill to 15 months in prison for conspiring to commit bank fraud, United States Attorney Benjamin B. Wagner announced. Simon also was ordered to pay restitution to financial institutions in the amount of $421,372 and to forfeit to the United States all rights, title and interest he had in a Patterson home that was the subject of his fraud scheme.
According to court documents, beginning in or around March 2010, Simon, with the assistance of his real estate agent, undertook a short-sale of Simon’s home in Patterson, California, to the real estate agent’s son. Simon submitted to Tri Counties Bank and Freddie Mac false and fraudulent short-sale applications, and caused these financial institutions to approve the charge-off of funds for the short-sale of Simon’s home. In these applications, Simon did not disclose that he provided the buyer with the full purchase price of the home ($355,000). Simon also made false statements to the lenders regarding his hidden agreement with the buyer that Simon would regain ownership of his home following the short-sale, and also misrepresented his ownership of other real estate and assets.
Simon’s real estate agent, Minerva Sanchez, 48, of Freemont, was charged in a separate indictment for her role in the scheme. On February 17, 2015, Sanchez was sentenced by Senior U.S. District Judge Anthony W. Ishii to 21 months in prison.
“Agustin Simon and his real estate agent, Minerva Sanchez, acted together to willfully exploit and abuse the short sale process, which was designed to assist legitimately distressed homeowners,” said Leslie DeMarco, Special Agent in Charge, Federal Housing Finance Agency Office of Inspector General. “Such selfish acts of fraud will not go undetected or unpunished. Our office, along with our law enforcement partners, is committed to protecting taxpayers, and thus the integrity of the short sale process, and ensuring that real estate professionals maintain the highest ethical standards.”
This case was the product of an investigation by the Federal Housing Finance Agency-Office of Inspector General and the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Christopher Baker prosecuted the case.Three Bakersfield Men Indicted for Conspiracy to Distribute MethamphetamineRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment Thursday against Bakersfield residents Guillermo Magallanes, 36; Pasqual Gonzales Magallanes, 44; and Juan Lascano Jr, 32, charging them with conspiracy to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.
According to court documents, the three men conspired to distribute methamphetamine in the Bakersfield area. In addition to the criminal charges the United States is seeking the forfeiture of $31,242 in United States Currency, a 2014 Lexus IS250 F Sport, and a 2012 Acura TL sedan as proceeds of the illegal drug trafficking activity.
This case is the product of an investigation by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Kern County Sheriff’s Office, and the Bakersfield Police Department. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
If convicted, the defendants face 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.
IRS Employee Arrested on Indictment for Tax FraudRead the Press Release
FRESNO, Calif. — Yolanda Castro, 45, a Fresno employee of the U.S. Internal Revenue Service, was arrested today following her indictment by a federal grand jury on February 26, 2015, on 10 counts of tax fraud and making false statements to a government agency, United States Attorney Benjamin B. Wagner announced.
According to the indictment, Castro has been employed by the IRS for approximately 20 years, including as a tax examiner and contact representative. 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. For instance, on her own 2008 tax return, Castro claimed a credit for education expenses that she did not incur, and provided the IRS 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.
This case is the product of an investigation by the U.S. Department of the Treasury Inspector General for Tax Administration and the IRS‑Criminal Investigation. Assistant United States Attorneys Christopher Baker and Mark McKeon are prosecuting the case.
If convicted, Castro face a maximum statutory penalty of three years in prison and a $100,000 fine for each of the six counts of aiding in the preparation of a false tax return, five years in prison and a $10,000 fine for each of the two counts of making a false return by a U.S. employee, and five years in prison and a $250,000 fine for each of the two counts of making false statements to a government agency. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Four Indicted in Modesto Prescription Drug RingRead the Press Release
FRESNO, Calif. —United States Attorney Benjamin B. Wagner announced today the unsealing of an indictment, returned by the grand jury February 19, 2015, charging Christina Antonia Martinez, 27; Lance Aaron Wilson, 30; and Mona Alicia Chavarin, 43, all of Modesto; and Lenele Maria Nunez, 31, of Hughson, with conspiring to distribute oxycodone and hydrocodone and possession of the same substances on two occasions.
Oxycodone (street names “Hillbilly Heroin,” “Kicker,” “OC,” “Ox,” “Oxy,” “Perc,” or “Roxy”) and hydrocodone (street names “Hydro,” “Norco,” or “Vikes”) are classified under federal law as Schedule II controlled substances although hydrocodone, until October 6, 2014 was previously a Schedule III controlled substance. Both substances, when legally prescribed for a legitimate medical purpose, are used for the relief of mild to moderate pain and can be habit forming. However, they are commonly unlawfully abused as recreational drugs and sold illegally.According to court documents, as early as December 1, 2013 and until January 13, 2015, the defendants conspired to unlawfully distribute oxycodone and hydrocodone. Nunez was an office manager at a Modesto pain management clinic and stole blank prescriptions from the clinic. Nunez provided these prescriptions to Martinez knowing that Martinez would enter false information on them, resulting in fraudulent prescriptions for large quantities of highly addictive, frequently diverted prescription drugs, including oxycodone and hydrocodone. Martinez and Wilson would provide these prescriptions to Chavarin, a pharmacy technician employed at a Modesto pharmacy. Nunez would verify the prescriptions to the pharmacy and Chavarin would provide the filled prescriptions of oxycodone or hydrocodone, or cause others to provide them, to Martinez and Wilson. Martinez and Wilson would distribute the unlawfully obtained oxycodone and hydrocodone to individuals for whom it had not been prescribed.
This case was the product of an investigation by the Modesto Police Department and the involvement of the Drug Enforcement Administration. Assistant United States Attorney Kathleen A. Servatius is prosecuting the case.
Martinez, Nunez, and Chavarin were arrested yesterday on the federal charges and appeared today in the United States District Court in Fresno for their first appearance. Nunez and Chavarin were ordered released from custody. Martinez will have a detention hearing tomorrow at 1:30. All defendants have a status conference on May 18 at 1:00 p.m.
If convicted, all defendants face a maximum statutory penalty of twenty years in prison and a $ 1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Court Sentences Prison Inmate to 8 Years Incarceration for Assault Against Another Prison InmateRead the Press Release
SACRAMENTO, Calif. — Thomas Roullier, 34, a former resident of Spokane, Washington, and an inmate at the Federal Correctional Institution at Herlong, California, ("FCI Herlong") was sentenced today by United States District Judge Kimberly J. Mueller to 8 years in prison for an assault resulting in serious bodily injury to another prison inmate, United States Attorney Benjamin B. Wagner announced. The Court also ordered the payment of $15,040.34 in restitution to reimburse the United States Bureau of Prisons for expenses incurred in providing medical treatment, transportation, and other services to the victim of the assault.
According to court documents, on April 26, 2012, Roullier, a Norteno gang member, committed the assault on the victim inmate, a Bulldog gang member, in a recreation area in the Special Housing Unit (SHU) within FCI Herlong. At the time of the assault, Roullier was one of four handcuffed prisoners (2 Norteno and 2 Bulldog gang members) who had just been escorted into the recreation area. The prison guard first removed the handcuffs from the two Norteno gang members. Before the guard could remove the handcuffs from the two Bulldog gang members, Roullier assaulted and severely beat the handcuffed victim. Within a very short time thereafter, a sufficient number of guards responded, entered the locked recreation area, and secured Roullier.
The victim suffered serious bodily injury, including displaced fractured bones in the face near his left cheek/sinus and a non-displaced fractured bone at the bottom of his left eye socket. The victim suffered extreme pain, trauma, bruises, headaches, and difficulty opening his mouth. The victim's fractured and sunken cheekbone near his left cheek/sinus had to be repaired by a physician specialist, who performed facial surgery to lift up the broken and sunken area of the victim's face."Judge Mueller's sentence of an additional eight years for the assault of another inmate sends a strong message that such crimes will not be tolerated,” said Acting FCI Herlong Warden G.J. Bissett. “Sentencing in cases that involve inmate on inmate assaults have a significant effect on the safe and orderly running of correctional facilities. The sentences imposed in the cases prosecuted by the United States Attorney's Office have helped to decrease the amount of inmate assaults that take place in a correctional environment, especially here at FCI Herlong."
This case was the product of an investigation by the United States Bureau of Prisons and the Federal Bureau of Investigation.Sacramento Woman Charged with Eight Counts of Bank FraudRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an eight-count indictment today against Gabriela Carter, 43, resident of Sacramento, charging her with bank fraud, United States Attorney Benjamin B. Wagner announced.
According to court documents, from 2007 through 2008, Carter repeatedly submitted fraudulent loan applications to federally insured financial institutions to obtain real estate loans that her clients were not qualified to receive. In many instances, Carter falsely represented her clients’ income and generated false W-2s and paystubs for various shell companies that did not, in fact, employ them. Many of Carter’s clients were low-income immigrants who did not speak English and were unaware of the false representations.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Michele Beckwith is prosecuting the case.
If convicted, Carter faces a maximum statutory penalty of thirty years in prison and a $1,000,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Sacramento Man Sentenced for Credit Card FraudRead the Press Release
SACRAMENTO, Calif. —Oneal Damar Hamilton, 36, currently a resident of Pasadena, was sentenced today by United States District Judge Troy L. Nunley to 40 months in prison for credit card fraud, United States Attorney Benjamin B. Wagner announced.
According to court documents, Hamilton would purchase unauthorized and fraudulent credit cards from a source outside the United States. Through fraud and deception, the foreign source would induce a credit card company to send cards in Hamilton’s name to a residence in Sacramento where Hamilton would receive them. Hamilton would then use the unauthorized cards to take cash advances from local banks and to purchase merchandise from Sacramento area retailers until the cards were shut down for fraud. Before his arrest, Hamilton obtained approximately $162,000 in cash and merchandise over approximately 9 months between 2012 and 2013.
This case was the product of an investigation by the United States Secret Service. Assistant United States Attorney Matthew G. Morris prosecuted the case.
Former Mill Superintendent for Shasta County Gold Mine Sentenced for Environmental CrimesRead the Press Release
SACRAMENTO, Calif. — Kiedock Kim, age 60, resident of Biggs, California, was sentenced today by United States District Judge Troy L. Nunley to six months in prison, and ordered to pay $107,160 in restitution based on two convictions for depredation of United States property and negligent discharge of a pollutant to a water of the United States, United States Attorney Benjamin B. Wagner announced.
According to court documents, Kim was the mill superintendent for the French Gulch Mine in Shasta County. As part of the mining operation, gold ore was brought from deep underground to the surface, transported to the mine mill and crushed, mixed with water to create slurry, and mixed again with foaming agents to cause the gold to separate from the remaining slurry. The gold was then removed, and the resulting waste from the mining operation — tailings, slurry, and wastewater — contained arsenic and lead.
In February 2007, a California Central Valley Regional Water Quality Control Board inspector advised the mine operators, including Kim, that the discharge of these pollutants was prohibited without a permit under the National Pollution Discharge Elimination System (NPDES). The French Gulch Mine did not have a NPDES permit, and Kim repeatedly represented to the inspector that the water treatment system used at the mine was a closed circuit, meaning there were no discharges from the water treatment system, and the mine and mill operations reused the wastewater after it had been treated.
In fact, the mine was generating more liquid wastes than the treatment system could handle, and on many occasions the system was not functioning properly causing the mine operators to discharge the liquid wastes into abandoned mines, an improvised leach field, a waste rock area, or on the county road surrounding the mine. Much of the discharges were on BLM land and resulted in hazardous levels of arsenic and lead contaminating the BLM property. The BLM conducted a study and determined that the cost to remove the contaminants and restore the property is $107,160.
In addition, the mine improperly disposed of its mine waste rock, which contained high arsenic and lead concentrations, by using it to resurface the county road leading to the mine, which is on BLM land. Even though the mine was later forced to remove the waste rock, its conduct constitutes depredation of United States property.
According to the plea agreement, Kim ordered the construction of a substandard pipe system to remove contaminated liquid wastes from the mill to an abandoned mine on BLM property. On June 24, 2006, the pipe system broke, and during a period of six to eight hours, spilled up to 10 tons of mine tailings into Scorpion Gulch Creek, which eventually leads into the Whiskeytown National Recreation Area reservoir. The spilled mine tailings travelled about seven miles from the mine to the Whiskeytown reservoir, which empties into the Sacramento River.
“EPA is committed to protecting human health along with our natural resources,” said Jay M. Green, Special Agent-in-Charge of EPA’s criminal enforcement program in California. “The defendant not only discharged potentially lethal byproducts from mining operations, he tried to hide it from investigators. Today’s sentence demonstrates that if companies and their managers skirt environmental laws, EPA and its partners will hold them accountable.”
This case is the product of an investigation by the United States Environmental Protection Agency, Criminal Investigation Division, with assistance from the Bureau of Land Management; the National Park Service, and the California Central Valley Regional Water Quality Control Board.
Shafter Man Convicted of Possession with Intent to Distribute Four Pounds of MethamphetamineRead the Press Release
FRESNO, Calif. — United States Attorney Benjamin B. Wagner announced today that Santos Acevedo Gutierrez, 41, resident of Shafter, pleaded guilty yesterday to possession with attempt to distribute methamphetamine and agreed to the forfeiture of over $10,123.
According to court documents, on April 30, 2014 Kern County Sheriff Deputies executed a search warrant at Gutierrez’s home in Shafter, CA and seized approximately four pounds of methamphetamine as well as a digital scale, packaging materials and over $10,000 in United States Currency.
Gutierrez is scheduled to be sentenced by United States District Judge Lawrence J. O'Neill on May 18, 2015 at 8:30 AM. Gutierrez faces a maximum penalty of life in prison and a $10,000,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables
This case was the product of the work of the Kern County Sheriff’s Office, and the Department of Homeland Security Investigations. Assistant United States Attorney Brian K. Delaney is prosecuting the case.Manteca Oncologist Agrees to Pay $550,000 to Resolve False Claims Act AllegationsRead the Press Release
SACRAMENTO, Calif - United States Attorney Benjamin B. Wagner announced today that Prabhjit S. Purewal, M.D., a Manteca based oncologist, agreed to pay the United States $550,000 to settle allegations that he defrauded Medicare, Tricare and Medicaid by billing these public insurers for chemotherapy drugs the US Food and Drug Administration had not approved for use in the United States. Dr. Purewal has paid the United States $400,000 to date.
The settlement resolves the United States’ contentions that Dr. Purewal had, over a two year period ending in May 2011, purchased chemotherapy drugs from Warwick Healthcare Solutions, Inc., also known as Richard’s Pharma (“Warwick”), administered the drugs to his patients, and improperly sought and received reimbursement for the drugs from Medicare and other public insurers. Warwick, a former United Kingdom based drug distributer, did not have a license to distribute drugs in the United States, and many of the drugs Dr. Purewal purchased from Warwick were not FDA approved. The FDA regulates pharmaceuticals in the US to ensure the drugs are safe and effective. The United States contended that by claiming and receiving reimbursement from Medicare, Tricare, and Medicaid for these drugs, Dr. Purewal violated the federal False Claims Act.
“Investigating healthcare related fraud allegations is one of our District’s top priorities,” said U.S. Attorney Wagner. “My office works closely with our federal and state partners to ensure that our publicly funded healthcare insurers reimburse practitioners only for approved services and medicines.”
“Patients -- especially those battling cancer and other life-threatening illnesses -- should be able to trust that their physicians only use medicines approved by the FDA, medicines proven to be safe and effective,” said Special Agent in Charge Ivan Negroni of the U.S. Department of Health and Human Services Office of Inspector General. “Our agency will continue to pursue health care providers that ignore requirements designed to protect patient health and federal health care programs.”
“Ensuring that patients receive FDA-approved prescription drugs from the legitimate supply chain is an FDA priority,” said Lisa Malinowski, Special Agent in Charge of the FDA’s Office of Criminal Investigations. “For drugs that enter the U.S. from outside that protected system, there is no guarantee that the drug is FDA-approved, not counterfeit, or otherwise lacks safety or effectiveness. We will continue to work to protect the health of patients who rely on prescription drugs and to ensure the safety and effectiveness of those drugs.”
The case was investigated by the United States Office of Inspector General of the US Department of Health and Human Services, the FDA’s Office of Criminal Investigations and the US Defense Health Agency. Assistant United States Attorney Kurt A. Didier prosecuted the case.
Former Correctional Guard Sentenced for Conspiracy to Smuggle Heroin, Methamphetamine and Other Contraband into the Taft Correctional FacilityRead the Press Release
FRESNO, Calif. — Ramon Cano, 28, a former correctional officer at the Taft Federal Correctional Facility was sentenced by United States District Court Judge Anthony W. Ishii yesterday to 30 months in prison for conspiracy to provide and possess contraband in prison in violation of 18 U.S.C. §§ 371 and 201(b)(1), United States Attorney Benjamin B. Wagner announced.
According to court documents, Cano admitted that between November 2013 and February 27, 2014, he conspired with Gerardo Alvarez-Montanez, 32, an inmate at the Taft Federal Correctional Facility to smuggle cell phones, cash, alcohol and controlled substances into the prison in return for the payment of cash.
In sentencing Cano, Judge Ishii stated that Cano abused his position of trust and compromised the integrity and safety of the Taft Federal Correctional Institution. Judge Ishii went on to state that a correctional officer must be held to a high standard of conduct and failure to uphold this conduct can seriously endanger all those within the confines of that prison. Ramon Cano abused that trust and his acts warranted the sentence imposed.
“Cano’s criminal activity of introducing contraband into the prison placed fellow correctional officers and inmates they supervised at risk,” said FBI Assistant Special Agent in Charge John Gliatta. “Those who abuse trusted roles for personal gain threaten the safety and security of the institutions neighboring communities. Such actions also threaten the reputation and safety of all corrections personnel.”
On September 2, 2014, Gerardo Alvarez-Montanez was sentenced by Judge Ishii to 60 months in prison for conspiring with Cano to provide and possess contraband in prison.
This case was 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.Bakersfield Man Convicted of Attempting to Distribute Five Pounds of MethamphetamineRead the Press Release
FRESNO, Calif. — United States Attorney Benjamin B. Wagner announced today that Edwin Rigoberto Mayorga-Fajardo, 42, resident of Bakersfield, pleaded guilty yesterday to possession with attempt to distribute methamphetamine
According to court documents, on April 8, 2014, Mayorga-Fajardo attempted to distribute five pounds of methamphetamine to a government informant. When law enforcement officers attempted to stop the defendant’s vehicle he sped off and a high speed car chase ensued. While attempting to flee, the defendant was observed throwing packages of methamphetamine from the vehicle. Eventually the defendant was stopped and arrested and approximately four pounds of methamphetamine was recovered.
Mayorga-Fajardo is scheduled to be sentenced by United States District Judge Lawrence J. O'Neill on May 18, 2015 at 8:30 AM. Mayorga-Fajardo faces a maximum penalty of 20 years in prison and a $1,000,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was the product of the work of the Department of Homeland Security, the 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.
Former Fresno Police Department Detective and Fresno Marijuana Trafficker Plead Guilty to Bribery ConspiracyRead the Press Release
FRESNO, Calif. —Derik Carson Kumagai, 41, and Saykham Somphoune a/k/a, “Oat,” 41, both residents of Fresno, pleaded guilty today to conspiring to commit bribery, United States Attorney Benjamin B. Wagner announced.
According to the defendants’ plea agreements and other court documents, beginning in April of 2012, federal law enforcement was investigating a group of individuals, including defendant Somphoune and one of his associates, for suspected cultivation and distribution of marijuana. In October and November of 2013, defendant Somphuone had a series of meetings with his associate, some of which were attended by defendant Kumagai. At the time, Kumagai was a Fresno Police Department Detective. During these meetings, the associate was told that he was under federal investigation, but that in return for a bribe payment, defendant Kumagai could close the investigation and arrange to have the associate designated as a confidential informant for the Fresno Police Department. On November 6, 2013, the associate paid Kumagai approximately $20,000 cash. A few hours later, the associate signed documents for the purported purpose of becoming a confidential informant for the Fresno Police Department. The defendants were arrested in March of 2014, and the associate never actually served as a confidential informant for the Fresno Police Department.
“The defendants attempted to take advantage of the trust placed in law enforcement officers for their personal gain,” said U.S. Attorney Wagner. “Law enforcement officers who accept bribes put the public and other law enforcement officers in danger.”
“There is absolutely no room for such egregious misconduct in law enforcement,” said Special Agent in Charge Monica M. Miller of the Sacramento FBI. “Individuals who commit such crimes undermine public trust and betray the other fine officers who serve the public honestly and with the highest degree of integrity, while risking their lives daily to protect their communities.”
DEA Acting Special Agent in Charge Bruce C. Balzano stated, "The DEA will diligently work with our law enforcement counterparts to hold those accountable who tarnish the badge by engaging in criminal behavior."
"Mr. Kumagai took an oath to uphold the law and protect citizens,” said IRS Criminal Investigation Special Agent in Charge José M. Martinez. “Instead, he used his position for personal gain and betrayed the community he swore to protect. IRS-CI will continue to investigate public corruption to ensure everyone plays by the same rules—regardless of job or position.”
This case was the product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Internal Revenue Service, Criminal Investigation. Fresno Police Chief Jerry Dyer and the Fresno Police Department cooperated with federal law enforcement throughout the investigation. Assistant United States Attorneys Grant B. Rabenn and Kevin P. Rooney are prosecuting the case.
Kumagai and Somphoune are scheduled to be sentenced by Judge Anthony W. Ishii on May 4, 2015. Kumagai and Somphoune face a maximum statutory penalty of 5 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 the Organized Crime Drug Enforcement Task Force (OCDETF), a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
Court Imposes $1.8 Million Restitution Order Against Three Defendants in Merced County Unlawful Asbestos Abatement CaseRead the Press Release
FRESNO, Calif. —Defendants, Joseph Cuellar, age 74, a resident of Fresno, California; Patrick Bowman, age 48 of Los Banos, California; and Rudolph Buendia, age 52 of Planada, California, were ordered today to pay a total of $1,801,832.50 in restitution to 65 victims exposed to airborne asbestos as a result of defendants' unlawful asbestos abatement at Building 325 at the former Castle Air Force Base in Atwater, California, United States Attorney Benjamin B. Wagner announced. The order, which was a result of the defendants’ prior convictions for knowingly violating the asbestos work practice standards of the National Emissions Standards for Hazardous Air Pollutants, was part of a written ruling issued by United States District Judge Lawrence J. O’Neill. All three defendants previously entered guilty pleas and all had been sentenced to terms of imprisonment of between 24 and 27 months.
The 65 victims referenced in the order made claims for restitution for the costs of medical monitoring necessary for the early detection of asbestos-related illnesses that might arise as a result of their exposure to airborne asbestos caused by defendants' unlawful asbestos abatement crimes.
According to court documents, Firm Build, Inc., performed the demolition and renovation work to convert the former Castle Air Force Base's motor pool at Building 325 into an automotive mechanic training center. Bowman was Firm Build's president, Cuellar was its administrative manager, and Buendia was its construction project site manager. The prosecution stemmed from defendants' unlawful asbestos abatement during the demolition and renovation of Building 325 during September 2005 through January 31, 2006. During the renovation at Building 325, Firm Build, Inc., directed its employees and high school students from the Workplace Learning Academy to remove and dispose of asbestos containing insulation on pipe and on other facility components without utilizing proper protective equipment or taking protective measures. Bowman was also the Vice-Principal in charge of the Workplace Learning Academy.
This case is the result of an investigation by the Merced County District Attorney's Office, the San Joaquin Valley Unified Air Pollution Control District, and the United States Environmental Protection Agency.
“There is no safe level of exposure to asbestos,” said Jay Green, Special Agent-in-Charge of EPA’s criminal enforcement program in California. “By directing student workers to illegally remove demolition debris containing asbestos, knowing the students had neither the training nor the proper safety equipment, the defendants in this case exposed the students and other workers at the job site, and their respective families to dangerous and potentially deadly carcinogens, and jeopardized all of their futures. Today's sentence sends a strong message that EPA and its partner agencies will continue to protect those vulnerable to environmental crimes by vigorously prosecuting criminals who place profit ahead of public health.”
Assistant United States Attorneys Samuel Wong and Melanie Alsworth prosecuted the case.
District Judge O'Neill previously ordered Cuellar to self-surrender for service of his sentence on March 9, 2015.Bank Robber Sentenced to 188 Months ImprisonmentRead the Press Release
FRESNO, Calif. — Fausto Arthur Cruz Hernandez, 44, resident of Mexico, was sentenced today by United States District Judge Lawrence J. O'Neill to over 15 years in prison for bank robbery and for violating a previously imposed term of federal supervised release, United States Attorney Benjamin B. Wagner announced.
According to court documents, on July 22, 2014, the defendant robbed the Bank of the West at 7062 N. First Street in Fresno. The defendant presented a note to a teller that said, “I want $50,000,” and “This is a robbery.” The defendant demanded, “hundreds only.” The teller gave him the hundred dollar bills in her drawer, and he asked what else she had. She said she had nothing else and attempted to push the alarm button. The defendant saw what she was doing and said, “don’t push the button, put your hands up.” The defendant showed her what the teller recognized as a black handgun, and told all of the tellers to “get on the floor.” They did and the defendant left the bank.
Due to prior felony convictions, the defendant qualified as a career criminal, which results in enhanced penalties under federal law. In sentencing the defendant, Judge O’Neill recognized the need to protect the community from the defendant’s violent behavior.
"We are thankful for the Fresno Police Department's collaborative efforts and for the assistance that was received from the public. Together, we ensured an armed and dangerous criminal faced justice," said Supervisory Special Agent Jacqueline Neumann of the Sacramento FBI's Fresno Resident Agency. "The public is not powerless and can fight crime by providing information to identify individuals who put their communities at significant risk.”
This case was the product of an investigation by the Federal Bureau of Investigation and the Fresno Police Department. Assistant United States Attorney Kimberly A. Sanchez prosecuted the case. The case is part of the Project Safe Neighborhoods (PSN) initiative which is a coordinated effort between federal, state and local law enforcement authorities aiming to make our community safer by targeting firearm offenses.
The defendant is currently in custody and will remain there throughout the remainder of his sentence.Roseville Man Sentenced to 84 Months for Possession of Child PornographyRead the Press Release
SACRAMENTO, Calif. — Daniel Harrison McGrath, 60, resident of Roseville, California, was sentenced today by United States District Judge Garland E. Burrell, Jr. to 7 years in prison for possession of child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, during an unrelated investigation, McGrath told investigating officers that he had images of child pornography on his computer. A subsequent search identified more than 3,000 images and videos of child pornography on McGrath’s computer and on multiple CDs created by McGrath. Some of the images showed prepubescent children, sadistic and masochistic conduct, and infants.
This case was the product of an investigation by the City of Roseville Police Department, the Sacramento County Sheriff’s Department, and the Federal Bureau of Investigation. Assistant United States Attorneys Todd A. Pickles and Kyle Reardon 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.
Two Indicted for Laser Strikes on Law Enforcement AircraftRead the Press Release
FRESNO, Calif. — A federal grand jury returned two indictments today against Jose Javier Rosas, 62, resident of Bakersfield, Calif., and Jeremy Scott Danielson, 34, of Clovis, Calif., charging them with crimes relating to laser strikes of law enforcement aircraft, United States Attorney Benjamin B. Wagner announced.
Reports of laser attacks have increased dramatically in recent years as powerful laser devices have become more affordable and widely available to the public. Lasers can completely incapacitate pilots who are trying to fly safely to their destination, endangering their crew members, passengers and people on the ground.
Lasing of Kern County Sheriff Helicopter
Rosas was charged with aiming a laser pointer at Air-1, a Kern County Sheriff’s Office helicopter. According to court records, Air-1 was struck last month during the evening hours by a powerful green laser. As a result, the pilot experienced glare, flash blindness, significant loss of night vision, watering eyes, and eye pain and was forced to disengage from a robbery investigation.
Rosas was charged with the laser offense following an investigation conducted by the Federal Bureau of Investigation (FBI), Homeland Security Investigations of Immigration and Customs Enforcement, and Kern County Sheriff’s Office.
Lasing of CHP Aircraft
Danielson was charged with interfering with the safe operation of a California Highway Patrol (CHP) aircraft, Air 43, and aiming a laser pointer at it. According to court records, Air 43 was struck in August and September of last year by a powerful green laser pointer seized from Danielson. The second incident involved up to 23 laser strikes and occurred while Air 43 was taking off from the Fresno Yosemite International Airport during a critical phase of flight. As a result, the pilot and tactical flight officer suffered flash blindness and watering eyes.
The case was investigated by the FBI, CHP, Clovis and Fresno Police Departments.
Assistant U.S. Attorney Karen A. Escobar is prosecuting both cases.
Danielson is scheduled for arraignment on the indictment on February 23, 2015. Rosas is scheduled for arraignment on the indictment on February 27, 2015. They both face a maximum prison term of five years and a fine of up to $250,000, if convicted of aiming the beam of a laser pointer at an aircraft. Danielson faces an additional prison term of twenty years and a fine of up to $250,000, if convicted of interfering with the safe operation of an aircraft.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
Lone Pine Man Indicted for Taking Archaeological Artifacts from Public Lands in Inyo CountyRead the Press Release
FRESNO, Calif. — A federal grand jury returned a six-count indictment today against Norman Starks, 76, a resident of Lone Pine, California, charging him with unauthorized removal of archaeological resources, depredation of government property, and possession of stolen government property, United States Attorney Benjamin B. Wagner announced.
According to court documents, the defendant damaged, altered, and removed Native American archaeological resources without authorization, from federal lands. These included Native American burial cairns and other cultural artifacts, such as beads and fragments of ceramic pots, which were more than 100 years old. The artifacts were located in the Lone Pine area of Inyo County on public lands administered by the Bureau of Land Management. In addition, the indictment charges the defendant with possessing stolen property that included prehistoric Native American incised stone tablets, which had been taken from government lands.
This case was the product of an investigation by the Bureau of Land Management and the National Park Service. Assistant United States Attorney Megan A. S. Richards is prosecuting the case.
If convicted of theft of stolen government property or depredation of government property, STARKS faces a maximum statutory penalty of ten years in prison and a $100,000 fine. For each count of removal of archaeological resources, STARKS faces a maximum statutory penalty of two years in prison and a $100,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Archeological resources are protected under the Archaeological Resources Protection Act (ARPA). Federal land managers, such as Bureau of Land Management and National Park Service, are responsible for the protection of natural and cultural resources located on public lands.
Las Vegas Man Sentenced to Five Years in Prison for Role in Multi-Million Dollar Mortgage Relief ScamRead the Press Release
SACRAMENTO, Calif. — Ray Jan Kornfeld, 59, resident of Las Vegas, NV, was sentenced today by United States District Judge Troy L. Nunley to 5 years in prison for his role in a large-scale mortgage fraud scheme, United States Attorney Benjamin B. Wagner and California Attorney General Kamala D. Harris jointly announced. Kornfeld was also ordered to pay over $3 million in restitution to victims of the scheme.
According to court documents, between January 7, 2010, and August 20, 2013, Co-defendant Alan David Tikal was the principal behind a business known as KATN, which targeted distressed homeowners throughout California and the nation, many of whom did not speak English. Members of the scheme promised to reduce victims’ outstanding mortgage debt by 75%, falsely claiming Tikal was a registered private banker with access to an enormous line of credit and the ability to pay off homeowners’ mortgage debts in full. Homeowners were told that in return for various fees and payments, their existing loan obligations would be extinguished, and the homeowners would then owe new loans to KATN in an amount equaling 25% of their original obligation. In reliance upon misrepresentations made by Tikal and others, homeowners stopped making payments on their existing mortgage loans and many lost their homes to foreclosure as a result.
In fact, the defendants never satisfied the home owners’ mortgage debt and merely pocketed the money received through the scheme, which consisted of more than $5,800,000 in fees and monthly payments. Over 1,000 homeowners were victimized.
Judge Nunley found that Kornfeld joined the conspiracy in September of 2010. Kornfeld corresponded frequently with victims, reminding them to make their payments, and assuring them the program would be successful even after Alan Tikal was indicted by State and Federal authorities for his role in the scheme. Moreover, after promising federal authorities on November 27, 2012 that he would contact and advise the victims to make alternative plans to address their mortgage debt, Kornfeld instead continued to collect payments and file bankruptcy documents to further the scheme.
“Kornfeld falsely promised these victims, many of whom didn’t speak English as their first language, that he could save their homes from foreclosure and reduce their mortgage debt by 75 percent if the homeowners agreed to pay him fees and regular ‘loan’ payments instead of making their monthly mortgage payments,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “Despite having the opportunity to stop his crime, Kornfeld kept the elaborate fraud going, frequently corresponding with victims, reminding them to pay up, while assuring them the operation would be successful. Many victims subsequently lost their homes to foreclosure. The scam also exploited bankruptcy law as a way to illegally halt foreclosure proceedings by mortgage lenders, including TARP recipients. SIGTARP and our law enforcement partners will ensure that perpetrators of fraud related to TARP are brought to justice for their crimes.”
This case is a joint prosecution by the United States Attorney’s Office for the Eastern District of California and the California Attorney General’s Office. It is the product of extensive investigation by the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), Internal Revenue Service - Criminal Investigation, the California Department of Justice, and the Stanislaus County District Attorney’s Office. Assistant United States Attorney Philip Ferrari and Deputy Attorney General Maggy Krell are prosecuting the case.
Co-defendant Alan Tikal was convicted following a bench trial and is scheduled to be sentenced by Judge Nunley on March 5, 2015. Co-defendant Tamara Tikal previously entered a guilty plea and is awaiting sentencing.Grizzly Flat Man Sentenced to over 12 Years for Receipt and Distribution of Child PornographyRead the Press Release
SACRAMENTO, Calif. —Nicholas Robert Bowen, 63, resident of Grizzly Flat, California, was sentenced today by United States District Judge Troy L. Nunley to 12 and one-half years in prison for possession of child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, Bowen and a female companion were arrested by Davis Police officers after the female was caught exposing herself to 10-12 year old boys while Bowen filmed the encounters using a spy camera built into his glasses. A subsequent search of Bowen’s phone and his computer, including in a folder called “boys,” discovered over 600 images and videos of minors engaged in sexually explicit conduct. In sentencing Bowen, Judge Nunley commented that the offense conduct was “egregious,” and that Bowen was an “active individual” in the offense. Judge Nunley further noted that Bowen’s actions have had a “huge impact” and potentially “ruined” the childhoods of the victims in this case.
Charges remain pending against Bowen in Yolo County Superior Court.
This case is the product of an investigation by the Davis Police Department, the Yolo County District Attorney’s Office, the Sacramento Internet Crimes Against Children (ICAC) Task Force. ICAC is 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 Todd A. Pickles and Kyle Reardon prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Fresno Man Indicted for Possessing Ecstasy for SaleRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Bryan Austin Frembling, 20, resident of Fresno, charging him with possessing MDMA (“Ecstasy”), with intent to distribute, United States Attorney Benjamin B. Wagner announced.
According to court documents, Frembling ordered the ecstasy from the internet. It was delivered from Canada to a post office box in another individual’s name. Frembling was arrested on January 5, 2015 as he picked up the package of drugs from the post office.
This case was the product of an investigation by the Homeland Security Investigations, U.S. Postal Service, and Fresno Police Department. Assistant United States Attorney Kathleen A. Servatius is prosecuting the case.
Frembling has been released on bail pending the disposition of the charges and will appear in court to be arraigned on the indictment on February 24, 2015.
If convicted, Frembling faces a maximum statutory penalty of twenty years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
U.S. Attorney Attending the White House Summit on Countering Violent ExtremismRead the Press Release
SACRAMENTO, Calif. – United States Attorney Benjamin Wagner is pleased to be in attendance at a Summit on Countering Violent Extremism being hosted by the White House today in Washington, D.C. The Summit will highlight domestic and international efforts to prevent violent extremists and their supporters from radicalizing, recruiting, or inspiring individuals or groups in the United States and abroad to commit acts of violence, efforts made even more imperative in light of recent, tragic attacks in Ottawa, Sydney, Paris, and Copenhagen. It is expected that Summit participants will include President Barack Obama, Vice-President Joe Biden, Secretary of State John Kerry, Attorney General Eric Holder, and many others deeply involved in the efforts to prevent such acts of violence.
Individual United States Attorney Offices play a role in these efforts, as a critical part of President Obama’s national strategy to prevent violent extremism domestically focuses on partnering on a local level with social service providers, religious leaders, community members and law enforcement agencies to address violent extremism as part of the broader mandate of providing public safety and crime prevention in each of our communities. A focus of the Summit, and of efforts by U.S. Attorneys, is developing ways to empower local communities by raising awareness and providing them with useful information so that they are better equipped to protect young people from the lure of radicalization.
“Protecting our citizens and our communities means more than simply finding effective ways to respond to terrorist incidents,” said U.S. Attorney Wagner. “It requires working hand-in-hand with people of all faiths to help further our understanding and ability to identify and address the various factors that can lead to radicalization and violence. I am honored to participate in this Summit, and I look forward to working with the people of our community at home to carry out this very important work.”
Additional information concerning efforts to prevent violent extremism can be found in an editorial by President Obama, published in today’s edition of the Los Angeles Times.
Fair Oaks Man Sentenced for Child Pornography CrimeRead the Press Release
SACRAMENTO, Calif. — Orest Shaynyuk, 22, resident of Fair Oaks, was sentenced yesterday by United States District Judge John A. Mendez to 57 months in prison for Possession of Child Pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, in July 2013, Shaynyuk was found with a cell phone containing multiple videos and photos of minors engaged in sexually explicit conduct, including two between the ages of 12 and 15. The cell phone also contained communications between Shaynyuk and various underage females with the purpose of enticing the underage females into sex. Shaynyuk solicited and received photographs of females that he knew to be minors engaging in sex acts, and made some of the images and videos of the minors himself using his cell phone camera. Shaynyuk used internet messaging programs to communicate with underage females and in some cases send them naked pictures of himself, and admitted to having sexual contact with numerous different underage females. Shaynyuk has been in custody since his arrest on July 10, 2013.
This case was the product of an investigation by the Federal Bureau of Investigation and the Sacramento County Sheriff’s Department. Assistant United States Attorneys Christopher S. Hales and Kyle Reardon 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. 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.
Real Estate Agent Sentenced to Prison for Fraudulent Short Sale SchemeRead the Press Release
FRESNO, Calif. —Minerva Sanchez, 48, of Fremont, was sentenced today by Senior U.S. District Judge Anthony W. Ishii to 21 months in prison for conspiring to commit bank fraud, United States Attorney Benjamin B. Wagner announced. Sanchez also was ordered to pay restitution to financial institutions in the amount of $421,372.
According to court documents, Sanchez was a licensed real estate agent who, beginning in or around March 2010, represented the seller of a home in Patterson, California. Sanchez recommended that the seller undertake a short-sale of his home using Sanchez’s son as the straw buyer. The seller, acting on Sanchez’s advice, submitted to Tri Counties Bank and Freddie Mac false and fraudulent short-sale applications, and caused these financial institutions to approve the charge-off of funds for the short-sale of the seller’s home.
With Sanchez’s knowledge, the seller provided the straw buyer with the full purchase price of the home ($355,000). Sanchez provided the seller with a “hardship letter” for him to use in connection with the short-sale application, which misrepresented the seller’s inability to make his monthly mortgage payments. In fact, Sanchez knew that the seller could make his monthly mortgage payments with proceeds from a pending sale of other real property he owned.
Sanchez, along with the seller and straw buyer, made other misrepresentations to the financial institutions in connection with the short-sale, including false statements that the transaction was “arm’s length,” and false statements concerning the parties’ hidden agreement that the seller would provide the straw buyer with the purchase money for the short-sale and ultimately regain ownership of his home following the short-sale. In her plea agreement, Sanchez admitted that her criminal conduct caused the financial institutions to lose more than $316,000.
This case was the product of an investigation by the Federal Housing Finance Agency-Office of Inspector General and the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Christopher Baker prosecuted the case.
On June 10, 2013, the seller of the Patterson property, Agustin Simon, 52, of Gustine, pleaded guilty to conspiring to commit bank fraud in connection with this scheme. He is scheduled to be sentenced on February 23, 2015, before U.S. District Judge Lawrence J. O’Neill.
North Highlands Woman Receives 2 Years and 8 Months in Federal Prison for Agravated Identity Theft, Bank Fraud, and Possession of Stolen U.S. MailRead the Press Release
SACRAMENTO, Calif. — Elise Elizabeth Perez, 42, of North Highlands, California, was sentenced today by United States District Court Judge John A. Mendez to a total term of 32 months in prison for her convictions on four counts of bank fraud, a single count of aggravated identity theft, and two counts of possession of stolen U.S. Mail, United States Attorney Benjamin B. Wagner announced.
This case was investigated by the Sacramento Office of the United States Postal Inspection Service. The Sacramento County Sheriff's Office also assisted in the investigation. Assistant United States Attorney Michelle Rodriguez is prosecuting the case.
According to court documents, from April 2014 through May 2014, Perez executed a plan to steal from federally insured financial institutions. Perez executed her scheme by obtaining identification and financial information stolen U.S. Mail and other sources. Perez used that information to pose as victims, take over victims' bank accounts, write checks drawn on those accounts, and obtain cash and goods at the expense of various financial institutions. Perez pleaded guilty on August 19, 2014.Perez was remanded into federal custody after imposition of her sentence.
Third Defendant Pleads Guilty to Growing Marijuana Plants in the Shasta-Trinity National ForestRead the Press Release
SACRAMENTO, Calif. — Ricky Martin Huerta, 20, resident of Eureka, pleaded guilty today to manufacturing marijuana, United States Attorney Benjamin B. Wagner announced.
According to court documents, on May 30, 2014, aerial surveillance observed a large marijuana cultivation operation near Big French Creek on the Shasta-Trinity National Forest. On August 5, 2014, authorities raided the Big French Creek site. They located an active marijuana cultivation operation and counted a total of 7,980 growing marijuana plants. Authorities observed defendant Huerta walking from the marijuana garden toward a marijuana processing area. After spotting law enforcement, Huerta ran away down a hill and was apprehended.
This case was the product of an investigation by the United States Forest Service, the Humboldt County Drug Task Force, North State Marijuana Team, and the Trinity County Sheriff’s Office. Assistant United States Attorney Christiaan Highsmith is prosecuting the case.
On January 16, 2015, co-defendants Isidro Alcazar-Tapia and Arturo Alcazar-Tapia pleaded guilty to conspiracy to manufacture marijuana and to depredation of public lands and resources. Both are in custody. A fourth co-defendant, Victor Manuel Alvarez-Contreras, is at large.
Huerta is scheduled to be sentenced by Judge Garland E. Burrell, Jr. on May 1, 2015. Huerta faces a maximum statutory penalty of 20 years in prison and a $1,000,000 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.
Four Convicted for Roles in Multi-Million Dollar Mortgage Fraud Scheme in Federal Court TrialRead the Press Release
SACRAMENTO, Calif. — After a 21-day trial, a federal jury found Nadia Kuzmenko, 35, resident of Loomis, Peter Kuzmenko, 36, resident of Sacramento, Edward Shevtsov, 51, resident of Sacramento, and Aaron New, 39, resident of Sacramento, guilty of multiple counts of mail and wire fraud associated with their involvement in a mortgage fraud scheme that cost financial institutions approximately $16 million, United States Attorney Benjamin B. Wagner announced today.
Peter Kuzmenko, Edward Shevtsov, and Aaron New were also found guilty of money laundering associated with the scheme. Nadia Kuzmenko was also found guilty of witness tampering.
According to evidence presented at trial, from late 2006 through 2007, the defendants engaged in a mortgage fraud scheme involving over 30 properties in the Sacramento area. The defendants were responsible for securing more than $26 million in residential mortgage loans on over 30 homes purchased through straw buyers. Records introduced at trial showed each of these defendants personally received hundreds of thousands or millions of dollars.
Nadia Kuzmenko was a licensed real estate sales person who, along with her sister Vera Kuzmenko, created fraudulent loan applications on behalf of the straw buyers. The loan applications contained materially false information as to the straw buyers’ income, employment, assets, and intent to occupy the residences. The loan paperwork also hid from lenders millions in dollars of payments that went to the defendants. With respect to the witness tampering count, the evidence showed that after she learned the FBI was investigating her, Nadia Kuzmenko told various witnesses to lie to the FBI and blame a dead woman for the fraud.
Aaron New was a licensed real estate broker who submitted the fraudulent loan applications to lending institutions and convinced home sellers to sign off on fraudulent invoices to divert money out of escrow and to the defendants. New also served as a straw buyer himself.
Peter Kuzmenko and Edward Shevtsov recruited straw buyers and helped create fraudulent loan paperwork. They also controlled shell accounts in which millions of dollars were diverted out of escrow based on fraudulent invoices and false representations made to lenders. Peter Kuzmenko was also a straw buyer himself.
“The defendants convicted today were important players in a network of fraudsters responsible for millions of dollars in losses associated with dozens of inflated property sales using multiple straw buyers,” said U.S. Attorney Benjamin B. Wagner. “As the guilty verdicts in this case demonstrate, mortgage fraudsters who believe they can escape accountability for their crime by blaming others and offering false alibis are mistaken. Our enforcement efforts in this area are far from done.”
“While today’s verdict is a victory for justice it does not change the fact that these individuals victimized their community and severely damaged the regional economy with their multi-million dollar fraud scheme,” said Assistant Special Agent in Charge John Gliatta for the FBI’s Sacramento field office. “As in this case, the FBI will vigorously investigate large, complex financial fraud to ensure those who are victimizing the community are brought to justice.”
“Mortgage fraud is an incredibly destructive crime that leaves many victims in its wake”, said José M. Martínez, Special Agent in Charge, IRS-Criminal Investigation. “The impact on homeowners and communities is devastating. While this verdict cannot reverse the damage caused by these defendants, it highlights the ongoing commitment of IRS-CI to hold accountable those involved in these types of crimes.”
The case is the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant U.S. Attorneys Lee S. Bickley and Michael D. Anderson and Special U.S. Attorney David J. Ward are prosecuting the case.
The defendants are scheduled to be sentenced by Judge John A. Mendez on May 26, 2015. Each defendant faces a maximum statutory penalty of 20 years on each of their counts of conviction for wire and mail fraud. Nadia Kuzmenko faces an additional 20 years for witness tampering. Peter Kuzmenko, Edward Shevtsov, and Aaron New face up to 20 years on each of the counts of conviction for money laundering. Co-defendants Vera Kuzmenko and Rachel Siders are still awaiting trial.
Chico Man Indicted for Sexual Exploitation of MinorsRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a six-count indictment today against Mark McLeod Wygant, 44, resident of Chico, charging him with Sexual Exploitation and Attempted Sexual Exploitation of Minors, United States Attorney Benjamin B. Wagner announced.
According to court documents, from early 2011 to early 2012, Wygant surreptitiously filmed a child on numerous occasions using a hidden cellular telephone and hidden “spy cameras” that he had purchased for that purpose.
This case was the product of an investigation by the Federal Bureau of Investigation and the South Lake Tahoe Police Department. Assistant United States Attorney Matthew G. Morris is prosecuting the case.
Wygant has been in custody since his arrest on January 29, 2015, by agents of the Federal Bureau of Investigation. He is scheduled to be arraigned on February 13, 2015, before Judge Carolyn K. Delaney.
If convicted, Wygant faces a maximum statutory penalty of 30 years in prison and a $250,000 fine per count. Any count of conviction would carry a mandatory minimum sentence of 15 years in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Man Who Shot and Wounded Two Law Enforcement Officers in Nevada County Convicted in Federal Court TrialRead the Press Release
SACRAMENTO, Calif. — After a three-day trial, a federal jury found Brent Douglas Cole, age 61, resident of Nevada County, guilty of assault on a federal officer with a deadly weapon which inflicted bodily injury; assault on a person assisting a federal officer with a deadly weapon which inflicted bodily injury; and discharge of a firearm during and in relation to a crime of violence, United States Attorney Benjamin B. Wagner announced. The trial was held before United States District Judge Garland E. Burrell, Jr.
According to evidence presented at trial, on June 14, 2014, a Bureau of Land Management (BLM) Ranger stopped Cole after he observed him driving his vehicle down a brushed-in trail near the South Yuba River campground in Nevada County. After advising Cole that he could not drive on the trail, the BLM Ranger allowed Cole to leave without issuing him a citation. After Cole departed, the BLM Ranger traveled up the brushed-in trail and discovered a campsite in a small clearing. Located within the campsite, among other items, were two motorcycles, one of which had previously been reported stolen and the other had expired registration tags. The BLM Ranger decided to impound both motorcycles, and subsequently contacted the California Highway Patrol (CHP) to request their assistance.
A short time later, a CHP Officer arrived at the site to assist the BLM Ranger. While both officers were working in the campsite, Cole emerged from the brush surrounding the campsite and announced that he was coming to get his things. The BLM Ranger asked Cole if he was armed, and when Cole replied that he was, the BLM Ranger removed his handcuffs. Cole said he would not allow the BLM Ranger to place the handcuffs on him. He then drew a Taurus .44 caliber revolver from the right side of his waist, pointed the weapon at the BLM Ranger and fired multiple rounds. One round struck the BLM Ranger in the left shoulder. In response to Cole’s actions, both the BLM Ranger and the CHP Officer returned fire. Cole turned the weapon upon the CHP Officer and fired multiple rounds. One of the bullets struck the CHP Officer in the right leg. Cole was struck several times by law enforcement.
After expending his ammunition, and being shot multiple times, Cole told law enforcement he gave up. The two officers handcuffed Cole, called for assistance, and then rendered medical aid to Cole while waiting for fire and medical emergency services to arrive. Cole, the BLM Ranger, and the CHP Officer received medical attention and all survived their wounds.
“Protecting members of law enforcement who protect our communities is one of this office’s most important priorities,” said U.S. Attorney Wagner. “Violence directed at law enforcement officials who are lawfully performing their duties is unacceptable. As a result of the verdict today Mr. Cole is looking at many years in prison. We are grateful for the investigative assistance of our federal and state law enforcement partners, and we thank the Nevada County District Attorney’s Office for its essential assistance and cooperation.”
“Assaulting a federal officer and any officer assisting them in their lawful duties is intolerable,” said Assistant Special Agent in Charge Manuel Alvarez of the Federal Bureau of Investigation’s Sacramento field office. “The FBI will thoroughly investigate such egregious and violent crimes to ensure that the perpetrators face justice for the criminal acts they have committed.”
“This violent event underscores the potential dangers BLM officers face every day as we safeguard the public and natural resources,” said Kynan Barrios, BLM California Special Agent In-Charge. “We appreciate the strong support from all of our law enforcement partners, especially the California Highway Patrol and Nevada County Sheriff’s Department whose actions prevented this incident from ending in greater tragedy.”
“On behalf of the CHP, I wish to extend our appreciation to the Nevada County Sheriff’s Office, the Nevada County District Attorney’s Office, the Federal Bureau of Investigation, the Bureau of Land Management, and the members of the prosecution team and jury,” said CHP Commissioner Joe Farrow. “Officers across the nation face difficult challenges everyday working towards protecting the people in our communities. The fluent partnership between local, state, and federal agencies allowed for this case to be appropriately adjudicated.”
This case was the product of a collaborative state and federal investigation involving the Bureau of Land Management, the Federal Bureau of Investigation, the California Highway Patrol, Nevada County Sheriff’s Office, and the Nevada County District Attorney’s Office. Assistant United States Attorneys Michael D. McCoy and Heiko Coppola are prosecuting the case.
Cole is scheduled to be sentenced by Judge Burrell on May 1, 2015. Cole faces a maximum statutory penalty of 20 years on each of his first two counts of conviction. He faces a term of up to 10 years on the third, which must be served consecutively to any sentence he receives on the first two counts. He also faces a fine of up to $750,000. 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.