Eastern District of California
Press releases recorded for this federal judicial district.
Fresno Woman Pleads Guilty to Embezzling More Than $300,000 from Former Law Firm EmployerRead the Press Release
FRESNO, Calif. — Shelley Corkins, also known as Shelley Kimbrell, 38, of Fresno, pleaded guilty today to three counts of wire fraud in connection with her embezzlement of money from the law firm that formerly employed her, United States Attorney Benjamin B. Wagner announced.
According to the plea agreement, Corkins formerly was employed by a Fresno-based law firm as a bookkeeper and accounting department supervisor. Between January 2008 and May 2012, Corkins abused her access and authority to manage the law firm’s finances and embezzled the law firm’s money for her own personal use. Corkins used her company credit card to make personal purchases at various retail outlets, including clothing and toy stores, electronically transferred funds from the law firm’s bank accounts to her own, and embezzled the law firm’s petty cash. Corkins admitted that while employed with the law firm, she embezzled at least $317,000 of the law firm’s money.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Christopher Baker is prosecuting the case.
Corkins is scheduled to be sentenced by Senior U.S. District Judge Anthony W. Ishii on May 11, 2015. The maximum statutory penalty for each of the three counts of wire fraud is 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Taking Methamphetamine to Delivery Service Earns Modesto Man 46 Months in Federal Prison; Money Courier from Turlock Sentenced to 12 Months in Same CaseRead the Press Release
FRESNO, Calif. — Armando Mendoza, 21, a Modesto resident, was sentenced today by United States District Judge Lawrence J. O'Neill to 46 months in prison for possession of methamphetamine with the intent to distribute, and Guillermo Paredes, Jr., 26, a Modesto resident, was also sentenced today by Judge O’Neill to 12 months in custody for conspiracy to smuggle bulk cash, United States Attorney Benjamin B. Wagner announced.
According to court documents, Mendoza and Paredes were involved with methamphetamine trafficking from Modesto to Hawaii. On August 8, 2012, Mendoza took a package containing approximately 1 ½ pounds of methamphetamine to a shipping facility for delivery to Hawaii. Law enforcement intercepted that package. On August 16, 2012, Paredes and a companion were arrested at the Honolulu airport while waiting for a return flight to California. Paredes had about $42,000 cash concealed on his person and in his luggage while his companion had about $29,000 cash similarly concealed. Law enforcement seized that cash.
This case was the product of an investigation by the Drug Enforcement Administration, the Stanislaus Drug Enforcement Agency and the Modesto Police Department. Assistant United States Attorney Kevin Rooney prosecuted the case.
Remaining defendants Miguel Leontapia, Eduardo Leon, and Gilberto Leon are scheduled to be sentenced on March 2, 2015, before Judge O’Neill.
Sacramento Man Sentenced to Two Years for Conspiracy in Mortgage Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Joshua Clymer, 28, of San Francisco, was sentenced today to two years in prison for conspiracy to commit mail and wire fraud in connection with a mortgage fraud scheme, United States Attorney Benjamin B. Wagner announced. Clymer previously pleaded guilty pursuant to a plea agreement.
According to court documents and evidence presented at the trial of co-defendant Leonard Williams, from late 2006 into 2008, Clymer and Williams conspired to carry out a loan origination and property flipping mortgage fraud scheme using the companies Diamond Hill Financial and Bay Area Real Estate Holdings. To carry out the scheme, Clymer and Williams recruited underqualified buyers, including family and friends, to purchase homes with promises of cash back, no money down, and illusory equity in the homes. Clymer and others assisted these home buyers in securing loans with fraudulent loan applications that contained lies about the buyers’ employment, income, assets, and intent to occupy the homes as a primary residence. In most cases the loan applications falsely stated that the buyers worked at Diamond Hill Financial, a company associated with Clymer and Williams. Hundreds of thousands of dollars in home loans were issued as a result. The profit to Clymer and Williams varied from $5,000 to over $30,000 per transaction, with the two of them often splitting the proceeds.
Clymer’s sentencing marks the last of 14 defendants to be sentenced for mortgage fraud offenses in connection with this and related cases. Others who have already been convicted and sentenced include Garret Gililland (94 months), Leonard Williams (87 months), Niche Fortune (57 months), Kesha Haynie (46 months), Eric Clawson (37 months), Anthony Symmes (35 months), Carlos Chamorro (27 months), Shane Burreson (23 months), Christopher M. Chiavola (22 months), William E. Baker (18 months), Nicole Magpusao (535 days), Brandon Resendez (9 months), and Remy Heng (6 months home detention). Twelve of the defendants pleaded guilty, including Clymer. Juries have convicted the two defendants who went to trial, Haynie and Clymer’s coconspirator Leonard Williams.
This case is the product of an investigation by the Federal Bureau of Investigation; the Internal Revenue Service, Criminal Investigation; and the Butte County District Attorney’s Office’s Major Crimes Unit. Assistant United States Attorneys Christopher S. Hales and Audrey B. Hemesath prosecuted the case.Modesto Resident Pleads Guilty in Tax Fraud ConsipracyRead the Press Release
FRESNO, Calif. — Christine Rose Caraway, 34, of Modesto, pled guilty today to one count of conspiracy to defraud the United States, United States Attorney Benjamin B. Wagner announced.
According to court documents, from about December 2010 to May 2011, Caraway and her former spouse Heath Roberson obtained personal identifying information from over 40 individuals. Caraway then used this information to generate false tax returns seeking over $121,000 in tax refunds and submitted them to the IRS. Caraway and Roberson funneled the tax refunds into accounts they controlled.
This case is the product of an investigation by the Internal Revenue Service’s Criminal Investigation Division. Assistant United States Attorney Michael G. Tierney is prosecuting the case.
Roberson pled guilty in April 2014 to one count of conspiring to defraud the United States. In July 2014, he was sentenced to serve two years, nine months in prison and to pay over $66,000 in restitution to the IRS.
Caraway is in custody and is scheduled to be sentenced by Senior United States District Judge Anthony W. Ishii on April 20, 2015. She 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.
Modesto Man Pleads Guilty to Stealing $127,000 in Government BenefitsRead the Press Release
FRESNO, Calif. —James Giulio Davidson, 59, resident of Modesto, California, pleaded guilty today to conspiring to steal government benefits, United States Attorney Benjamin B. Wagner announced.
According to the plea agreement and court documents, Davidson and his deceased wife and former co-defendant, Shirley Kay Davidson, stole more than $64,000.00 in Supplemental Security Income (“SSI”) benefits and $63,000.00 in In-Home Supportive Services (“IHSS”) from approximately January 2003 to July 2010. Shirley Kay Davidson created a fake person named Sharon Guinn to act as her and James Davidson’s purported IHSS caretaker. James and Shirley Davidson regularly filled out false time cards for the purported work provided by Sharon Guinn and then cashed the IHSS wages sent to this fake person for their personal use and benefit. Further, James and Shirley Davidson failed to report this fraudulent source of income to the Social Security Administration (“SSA”) during redetermination interviews for continued SSI benefits. Additionally, James and Shirley Davidson stated to the SSA that they separated in November 2007 when in fact they continued to live together, which increased the amount of SSI benefits they received.
This case was the product of an investigation by the Social Security Administration, Office of Inspector General. Assistant United States Attorneys Grant B. Rabenn and Michael Tierney are prosecuting the case.
Davidson is scheduled to be sentenced by Judge Anthony W. Ishii on April 20, 2015. Davidson faces 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.Florida Man Sentenced to 5 Years Imprisonment for Structuring More Than $2.5 Million in Proceeds of Drug TraffickingRead the Press Release
FRESNO, Calif. — Chad Allen Riffle, 22, resident of Citrus Springs, Florida, was sentenced today by United States District Judge Lawrence J. O'Neill to 5 years in prison for structuring cash transactions, United States Attorney Benjamin B. Wagner announced.
According to court documents, Riffle and seven co-defendants opened and maintained bank accounts for the purpose of funneling cash proceeds of drug trafficking from Florida and other states back to California. Riffle made more than $2.5 million in cash deposits in amounts designed to avoid triggering financial institution reporting requirements.
This case is being brought as part of Operation Footprint, a nationwide law enforcement initiative led by the U.S. Attorney’s Offices, the Internal Revenue Service- Criminal Investigation, the Drug Enforcement Administration, and the United States Postal Inspection Service. Operation Footprint targets large drug trafficking organizations by identifying the transfer of drug proceeds through financial institutions, bulk cash smuggling and other forms of money transfers. Operation Footprint is focused on bringing criminal charges based on Bank Secrecy Act violations in addition to violations of the Controlled Substances Act and the Money Laundering Control Act.
This case is also 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. Assistant U.S. Attorneys Grant B. Rabenn, Patrick R. Delahunty, and Jeffrey Spivak are prosecuting the case.
Bakersfield Resident Sentenced to 5-year Prison Term for Growing Marijuana on Ecological ReserveRead the Press Release
FRESNO, Calif. — Cruz Soria, 29, of Bakersfield, California was sentenced today to 5 years in prison for conspiring to manufacture, distribute and possess with intent to distribute marijuana in the Fay Canyon area of the Canebrake Ecological Reserve, U.S. Attorney Benjamin B. Wagner announced. Soria was also ordered to pay $2,568.85 in restitution to the High Sierra Trail Volunteer Crew for the cost of cleaning up the grow site.
The Canebrake Ecological Reserve is located 10 miles east of Lake Isabella in northeastern Kern County. It was first inhabited in about 1000 B.C. by the Tubatulabel culture and is currently home to numerous rare and protected plants and animals, including the federally-protected golden and bald eagles and peregrine falcon, the federally-threatened California red-legged frog and Valley elderberry longhorn beetle, and the endangered Southwestern willow flycatcher.
Soria’s sentence follows his guilty plea last year. In pleading guilty, Soria acknowledged he was responsible for cultivating 454 marijuana plants in the ecological reserve. Law enforcement officers arrested Soria at the grow site and seized the plants, about twelve pounds of processed marijuana, and a firearm. The officers also found several highly toxic chemicals, including Fosfuro de Zinc or zinc phosphide, a rat poison illegal to use in the United States without a license, and Furadan, an insecticide banned by the EPA for usage on crops consumed by humans. Dead coyote, snakes and other animals were found at the grow site. Upon completion of his prison sentence, Soria will be supervised by the U.S. Probation Office for 4 more years.
This case is the product of an investigation by the U.S. Forest Service, U.S. Department of Homeland Security - Homeland Security Investigations (HSI), California Department of Fish and Game, and Kern County Sheriff’s Office. Assistant United States Attorney Karen Escobar prosecuted the case.Roseville Couple Plead Guilty to Loan Modification and Foreclosure Rescue Scam That Targeted Spanish-Speaking CommunityRead the Press Release
SACRAMENTO, Calif. —Martin Wayne Flanders, 50, formerly of Roseville, and Ligia Sandoval Spafford, 48, of Roseville, pleaded guilty today to mail fraud for their participation in a fraud scheme that targeted distressed homeowners, United States Attorney Benjamin B. Wagner announced.
According to court documents, between 2008 and 2010, Flanders charged clients advance fees in exchange for a number of financial services, including loan modifications, mortgage loan audits, credit repair, debt relief, bankruptcy filings, and a program to sell homes to “investors” with a rent-to-own option. Flanders and Sandoval marketed these services to economically distressed homeowners with particular emphasis on those who were Spanish-speakers. During a radio program aired twice weekly by a Bay Area Spanish-language Christian radio station, Radio Luz, Sandoval promoted the services she and Flanders offered. Flanders also advertised on a Spanish-language television station, Univision, and in Spanish-language magazines. About 98 percent of the defendants’ clients were of Hispanic descent, some of whom spoke little to no English. Sandoval speaks Spanish; Flanders does not.
Flanders and Sandoval made numerous false statements to investors as to the success of the programs being offered or refunds that would be available if the programs were not successful. “Ghost offers” – i.e., fictitious offers to purchase the victim’s property through short sale – and “skeleton bankruptcies” – i.e., sham bankruptcy petitions that were quickly dismissed by the bankruptcy court – were also used by Flanders or Sandoval to try to stall the foreclosure process. At least 25 to 30 individuals paid for services and did not receive them or did not receive refunds when the programs failed to deliver as promised. The total loss to the victims is at least $120,000. Some homeowners who were not able to obtain relief were foreclosed upon by their lenders.
“Flanders and Sandoval took advantage of victims with limited English proficiency, when those victims were most financially vulnerable,” said United States Attorney Wagner. “Predatory fraud schemes of this sort have been, and will continue to be, a prime focus of our efforts to prosecute mortgage fraud.”
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Todd A. Pickles is prosecuting the case.
Flanders has been detained since his arrest in October 2012. Sandoval is currently out of custody.
Flanders and Sandoval are scheduled to be sentenced by United States District Judge Troy L. Nunley on June 11, 2015. Flanders and Sandoval face 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.
Richmond Man Sentenced in Multi-Year Multi-State Bank Fraud and Identity Theft SchemeRead the Press Release
SACRAMENTO, Calif. — Reginald L. Thomas, 39, of Richmond was sentenced today by Chief United States District Judge Morrison C. England, Jr. to 45 months in prison for Conspiracy to Commit Bank Fraud and Aggravated Identity Theft, United States Attorney Benjamin B. Wagner announced.
According to evidence presented at a December trial, from March 2008 until July 2010, Thomas and co-conspirator Deshawn Ray conducted what was described as a multi-state “account takeover” scheme that targeted high-value accounts at several banks. Members of the conspiracy used the personal information of high-value account holders to open a joint account in the names of the high-value account holders and a co-conspirator. The defendants also changed the contact information for the high-value accounts so that the actual account holders would not receive notice of account activity. The defendants then transferred funds from the high-value accounts to the joint accounts and then to individual accounts held by a member of the conspiracy. Members of the conspiracy withdrew the proceeds of the fraudulent transfers in cash, cashiers’ checks or wire transfers before the transfers were noticed by the banks and reversed.
This case was the product of an investigation by the United States Secret Service, the Pinellas County (Florida) Sheriff’s Office, and the Walnut Creek (California) Police Department. Assistant United States Attorneys Matthew G. Morris and Brian A. Fogerty are prosecuting the case.
Co-defendant Damian Edgerson, 39, of Oakland, previously pled guilty to bank fraud. He was sentenced to serve 18 months in prison. Co-defendant Tiffany Tung, 26, of Oakland pled guilty to Accepting a Bribe as a Bank Employee. Tung is scheduled to be sentenced in May 2015. She faces a maximum statutory penalty of 1 year in prison and a $100,000 fine. Co-defendant Deshawn Ray is scheduled to appear before Chief Judge England on February 12, 2015 for a hearing on the schedule for sentencing. Ray faces a maximum statutory penalty of 30 years in prison and a $1,000,000 fine for his bank fraud convictions, and a mandatory 2 year consecutive prison term for his conviction for Aggravated Identity Theft. The actual sentences for both Tung and Ray 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.
Three Indictments for Methamphetamine TraffickingRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned three indictments today, separately charging three men with trafficking methamphetamine, United States Attorney Benjamin B. Wagner announced. Assistant United States Attorney Jason S. Hitt is prosecuting the cases.
Alejandro Ortiz-Salas, 37, a citizen of Mexico, is charged with three counts of distributing methamphetamine. According to court documents, Ortiz-Salas sold methamphetamine in the Sacramento area in 2004. After a criminal complaint was issued charging him with distribution, he fled from the Eastern District of California. He was apprehended in December 2014 near the border between Texas and Mexico and brought to Sacramento. This case is the product of an investigation by the Drug Enforcement Administration and the Yolo County Narcotics Enforcement Team. Docket #: 2:15-cr-026 GEB
The following two cases are the product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Glenn Interagency Narcotics Task Force, and the California Highway Patrol. Sergio Carrillo-Raygoza, 20, was charged with possessing with intent to distribute methamphetamine. According to court documents, on January 21, 2015, Carrillo-Raygoza was stopped by law enforcement in Glenn County for a traffic violation. Two pounds of methamphetamine was found in his vehicle. Docket #: 2:15-cr-024 KJM
Ulices Beltran, 21, was charged with possessing with intent to distribute methamphetamine. According to court documents, on January 21, 2015, a traffic stop of Beltran resulted in the seizure of two pounds of methamphetamine from his vehicle. Docket #: 2:15-cr-025 KJM
If convicted, all three defendants face a maximum statutory penalty of up to 20 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.Stockton Residents Indicted in Phony Tax Return SchemeRead the Press Release
FRESNO, Calif. — Two Stockton residents were indicted today for a conspiracy to fraudulently obtain tax refunds, United States Attorney Benjamin B. Wagner announced.
Vivian Marie Williams, 49, was charged with 44 counts of conspiracy, false claims to a government agency, identity theft, and aiding and assisting in the preparation of false and fraudulent tax returns. Darrell Lemont Morris, 43, was charged with one count of conspiracy.
According to the indictment, Williams was a tax preparer who operated out of her home using the business name Williams Financial Service. Between January 2010 and March 2011, Williams allegedly submitted tax returns for both legitimate clients and in the names of victims of identity theft. The tax returns for legitimate clients reported inflated business and wage income, which allowed the taxpayers to claim a higher tax refund as a result of the Earned Income Tax Credit and the Child Tax Credit. The tax returns for victims of identity theft were allegedly submitted without the knowledge of the taxpayers, and allowed Williams to collect tax refunds on their behalf. The indictment alleges that Morris conspired with Williams in the scheme to file tax returns on behalf of victims of identity theft, allowed Williams to use his bank accounts for the deposit of tax refunds, and then shared in the proceeds with Williams.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Mark J. McKeon is prosecuting the case.
If convicted, Williams faces a maximum statutory penalty of five years in prison and a $250,000 fine for each count of filing a false claim; 15 years in prison and a $250,000 fine for each count of identity theft; and three years in prison and a $250,000 fine for each count of aiding in the preparation of false tax returns. Williams and Morris each face a maximum statutory penalty of 15 years in prison and a $250,000 fine for conspiracy. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.Foreign National Pleads Guilty to Firearm Offense, Growing Marijuana in Mendocino National Forest, and Destruction of National Lands and ResourcesRead the Press Release
SACRAMENTO, Calif. — Ivan Espinoza Villafana, 25, a Mexican national, pleaded guilty today to possession of a firearm by an illegal alien, cultivation of marijuana, and depredation of public lands and resources, United States Attorney Benjamin B. Wagner announced.
According to court documents, on August 19, 2014, law enforcement officers entered a marijuana cultivation site near Ice Springs in the Mendocino National Forest in Glenn County where 732 marijuana plants were growing. Villafana was arrested at the site and had a Smith & Wesson revolver in his possession. Officers also found a rifle in the camp area of the site. Significant natural resource damage was observed at the site. Vegetation and trees had been cut and removed to improve growing conditions for the marijuana plants, water was diverted from a nearby stream to water the plants, and fertilizers and pesticides were found at the site which, based on the terrain, would likely have drained into waterways in the National Forest. It is estimated that repairing and rehabilitating the marijuana cultivation site at Ice Springs would cost at least $14,400.
This case is the product of an investigation by the United States Forest Service, Glenn County Sheriff’s Office, and California Department of Fish and Wildlife. Assistant United States Attorney Christiaan Highsmith is prosecuting the case.
Villafana is in custody and is scheduled to be sentenced by United States District Judge Troy L. Nunley on April 16, 2015. Villafana faces a maximum statutory penalty of 20 years in prison and a $1 million fine for the marijuana cultivation charge; 10 years in prison and a $250,000 fine for the possession of a firearm by an illegal alien charge; and 10 years in prison and a $250,000 fine for the depredation of public lands and resources charge. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Mexican National Pleads Guilty to Growing 3,724 Marijuana Plants in the Plumas National ForestRead the Press Release
SACRAMENTO, Calif. —Alejandro Soto-Silva, 22, a Mexican national, pleaded guilty today to cultivation of marijuana and depredation of public lands and resources, United States Attorney Benjamin B. Wagner announced.
According to court documents, on July 30, 2014, United States Forest Service agents and Plumas County Sheriff’s deputies entered a large marijuana cultivation site on the Plumas National Forest near the Soda Creek drainage. Officers located more than 3,700 marijuana plants at the site. Soto-Silva was arrested after attempting to flee. The marijuana cultivation caused significant damage to the land and natural resources of the Plumas National Forest. Law enforcement observed irrigation piping running from a water source to man-made reservoirs used to water the thousands of marijuana plants under cultivation. Rehabilitating and remediating the National Forest habitat injured by the marijuana cultivation will cost the U.S. Forest Service at least $9,500.
This case is the product of an investigation by the United States Forest Service and the Plumas County Sheriff’s Office. Assistant United States Attorney Christiaan Highsmith is prosecuting the case.
Soto-Silva is in custody. He is scheduled to be sentenced by United States District Judge Kimberly J. Mueller on April 15, 2015. Soto-Silva faces a maximum statutory penalty of 20 years in prison and a $1 million fine on the marijuana cultivation charge. He faces a maximum statutory penalty of 10 years and a $250,000 fine on the depredation of public lands and resources 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.
Fresno County Sheriff’s Office’s Contribution to the Mission of the U.S. Attorney’s Office and Department of Justice RecognizedRead the Press Release
FRESNO, Calif. — United States Attorney Benjamin B. Wagner is pleased to announce the 2014 winner of the Eastern District of California Law Enforcement Award for the Fresno Division’s Outstanding Law Enforcement Agency. This award is one of four awards presented annually to a law enforcement agency and an officer in each of the Sacramento and Fresno divisions of the Eastern District of California to recognize outstanding collaboration between federal state and local law enforcement in addressing public safety issues in this region. Other winners of the 2014 United States Attorney’s Office-Eastern District of California Law Enforcement Awards will be announced at a later date.
The winner of Fresno Division’s Outstanding Law Enforcement Agency Award is the Fresno County Sheriff’s Office for their invaluable contribution to an investigation into a major national drug trafficking organization that manufactured and sold synthetic drugs. Synthetic drugs, including synthetic cannabinoids, are illegal and unregulated, and can be highly dangerous. There have been numerous reports of consumers being seriously harmed or even dying as a result of ingesting synthetic cannabinoids.
U.S. Attorney Wagner stated: “Congratulations to the Fresno County Sheriff’s Office on being chosen for this award for their efforts to address an emerging public safety threat. Sheriff’s detectives recognized the significance of a seizure of 12 kilograms of synthetic cannabinoids and contacted federal authorities. The Fresno Sheriff’s Office partnered with federal agencies throughout the intensive long-term investigation that followed. As a result, we were able to identify key members of the organization and dismantle it.”
Narcotics detectives conducted several undercover purchases from head shops in the Fresno area that were distributing synthetic cannabinoids. They worked closely with federal law enforcement agents to investigate a network of persons and businesses that were producing the substances and selling them across the country. The Sheriff’s Office also participated in a nationwide takedown targeting synthetic drug traffickers in June 2013. That effort included multiple search warrants and the seizures of large quantities of illegal substances, cash, and assets.
The investigation focused on Victor Nottoli, who pleaded guilty in federal court here in Fresno in May of last year to conspiracy and causing at least 24 tons of misbranded synthetic cannabinoids to be introduced into interstate commerce. Over $6.4 million in cash and nearly $200,000 worth of other assets were seized. He is expected to be sentenced to federal prison in the near future.
In related cases arising from the investigation, four more persons were indicted on federal felonies in this district last year, and to date, five persons have pleaded guilty to federal felonies in the Southern District of Alabama, one has pleaded guilty in the Southern District of New York, and another has been indicted in the District of Arizona. More federal prosecutions are expected.Sacramento Man Sentenced to over 7 Years in Prison for A Mortgage Fraud Scheme in Chico and SacramentoRead the Press Release
SACRAMENTO, Calif. — Leonard E. Williams, 52, of Sacramento, was sentenced today to over seven years and three months in prison for conspiracy to commit mail and wire fraud and two counts of money laundering, in connection with a mortgage fraud scheme, United States Attorney Benjamin B. Wagner announced. Williams was found guilty on July 24, 2014, by a federal jury after a six–day trial.
At sentencing today, United States District Judge William B. Shubb stated that one of the factors he used in imposing the sentence was Williams' outburst in front of the jury during trial. On the last day of the trial, Williams began shouting at the jury about his case. Judge Shubb asked him to stop talking until the jury could be dismissed. Williams, nevertheless, continued yelling at the jury as they filed out. Today, Judge Shubb characterized the outburst as "unacceptable" and said that Williams had intended to cause a mistrial and mislead the jury about his defense.
According to evidence presented at trial, from late 2006 into 2008, Williams conspired with others to carry out a mortgage fraud scheme in the Chico and Sacramento areas using his companies Diamond Hill Financial and Bay Area Real Estate Holdings. The scheme resulted in the issuance of more than $2 million in home loans, with most of the buyers ultimately defaulting.
To carry out the scheme, Williams and his partner Joshua Clymer recruited underqualified buyers, including family and friends, to purchase homes with promises of cash back, no money down, and illusory equity in the homes. Williams and others assisted these home buyers in securing loans with fraudulent loan applications that contained lies about the buyers' employment, income, assets, and intent to occupy the homes as a primary residence. In most cases, at Williams' suggestion and encouragement, the loan applications falsely stated that the buyers worked at Diamond Hill Financial, and Williams himself maintained the charade by confirming this false information when lenders called to verify it.
The loan applications also listed false assets and were accompanied by various forged documents, which increased the amount of the loans to the buyers, which in turn increased the profits of the fraud to Williams, Clymer, and others. The profit to Williams and Clymer varied from $5,000 to over $30,000 per transaction, with the two of them often splitting the proceeds.
Prior to trial, Clymer pleaded guilty to conspiracy to commit mail and wire fraud and is scheduled to be sentenced on February 9, 2015.
This case is the product of an investigation by the Federal Bureau of Investigation; the Internal Revenue Service, Criminal Investigation; and the Butte County District Attorney's Office's Major Crimes Unit. Williams is the last of 14 defendants who have been convicted of mortgage fraud offenses in connection with this and related cases. Others who already been convicted and sentenced include William E. Baker, Shane Burreson, Christopher M. Chiavola, Carlos Chamorro, Eric Clawson, Niche Fortune, Garret Gililland, Kesha Haynie, Remy Heng, Nicole Magpusao, Brandon Resendez, and Anthony Symmes. Twelve of the defendants pleaded guilty. Juries have convicted the two defendants who went to trial, Williams and Haynie. Assistant United States Attorneys Christopher S. Hales and Audrey B. Hemesath prosecuted the case.Sacramento Defense Contractor Agrees to Pay $2 Million to Settle Allegations of Inflating CostsRead the Press Release
SACRAMENTO, Calif. — Composite Engineering Inc., a Sacramento-based subsidiary of Kratos Defense & Security Solutions that manufactures remote-controlled subscale aircraft for the U.S. military, has agreed to pay the United States $2 million to resolve allegations that it violated the False Claims Act by submitting inflated costs in connection with a 2007 contract, United States Attorney Benjamin Wagner announced today.
The contract at issue was a firm fixed-price contract modification for the procurement of spare parts to meet the requirements of the Air Force’s Subscale Aerial Target (AFSAT) program. The United States alleges that, in submitting its contract proposal, CEI knowingly or recklessly included significantly overstated materials costs and labor hours, resulting in a windfall to CEI. The False Claims Act allows the government to recover damages and penalties for the presentation of false claims for payment to the United States. By basing its contract price with the government on overstated materials and labor costs, CEI caused the United States to pay artificially inflated prices.
“In this era of shrinking budgets, it is particularly important to safeguard public coffers against the unnecessary expenditure of taxpayer funds,” said U.S. Attorney Wagner. “Ensuring the integrity of federal contracting programs is one of the objectives of this office’s Affirmative Civil Enforcement Unit, and results like this one help accomplish that objective.”
Deputy Inspector General for Investigations James B. Burch of the Department of Defense, Defense Criminal Investigative Service (DCIS) said: “Fraud directly impacts our armed services’ resources and capabilities. DCIS works closely with our federal investigative partners to identify and bring to justice those seeking to steal from the American taxpayers and harm our armed services. The results of this case will ensure troops can finish their jobs without the burden of shortages created by such opportunists.”
The settlement is the product of an investigation by DCIS, the Defense Contract Audit Agency, and the Air Force Office of Special Investigations. Assistant U.S. Attorney Colleen M. Kennedy prosecuted the case on behalf of the United States. The claims settled by this agreement are allegations only, and CEI denies liability.
Oakland Man Pleads Guilty to Counterfeit Media Scheme in FresnoRead the Press Release
FRESNO, Calif. — Emilio Perez-Solis, 39, of Oakland, pleaded guilty today to conspiring to commit criminal copyright infringement and traffic in counterfeit labels, documentation and packaging, United States Attorney Benjamin B. Wagner announced.
According to court documents, Perez-Solis used a building in a rural area of Fresno as a distribution point for counterfeit CDs and counterfeit DVDs. From the building, Perez-Solis sold counterfeit CDs and DVDs, including movies that were only in theatrical release and not yet available on DVD. On February 21, 2014, the building was searched and found to contain approximately 70,000 counterfeit music CDs and movie DVDs.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) with assistance from the Fresno County Sheriff’s Office. Assistant United States Attorneys Henry Z. Carbajal III and Patrick R. Delahunty are prosecuting the case.
Perez-Solis is currently in custody, and is scheduled to be sentenced by Judge Lawrence J. O'Neill on April 20, 2015. Perez-Solis faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Traffic Stop of Bakersfield Men Traveling in Stockton Yields to Seizure of over 600 Grams of HeroinRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a single-count indictment today against Hammurabi Hernandez, 47 and Jorge Medina, 25, both from Bakersfield, charging them with possession with intent to distribute at least 100 grams of heroin, United States Attorney Benjamin B. Wagner announced.
According to the criminal complaint, on December 31, 2014, a California Highway Patrol officer stopped the defendants’ vehicle in Stockton for traffic violations. During a subsequent search of the vehicle, officers found a backpack on the rear floorboard with a white plastic bag containing two smaller plastic bags that contained heroin. The gross weight of the packages containing the heroin was 1.37 pounds (621.42 grams).
This case is the product of an investigation by the California Highway Patrol, the San Joaquin Sheriff’s Office, the San Joaquin Metropolitan Narcotics Taskforce (METRO), the San Joaquin District Attorney’s Office, and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney Olusere Olowoyeye is prosecuting the case.
If convicted, Hernandez and Medina face a maximum statutory penalty of 40 years in prison and a $5 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Six Persons Indicted for Possessing over 60 Kilograms of CocaineRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Sonia Kim, Julius Caubat, Kamaljit Billen, Gurdeep Singh, June Chungil, and Justin Byun, charging them with conspiracy to distribute over five kilograms of cocaine and possession with intent to distribute cocaine, United States Attorney Benjamin B. Wagner announced.
According to court documents, law enforcement began investigating the defendants when a car rental company reported that 20 kilograms of cocaine had been found in the trunk of a rental car that had been returned on December 8, 2014, by Kim. Investigating officers learned that on December 21, 2014, Kim was present at a hotel in Yuba City with Byun, Chungil and Caubat. All the defendants were arrested by police after 60 kilograms of cocaine were transferred to Billen and Singh in the hotel parking lot.
This case is the product of an investigation by the Drug Enforcement Administration and the Sacramento County Sheriff Department’s High Intensity Drug Trafficking Area (HIDTA) Unit. Assistant United States Attorney Paul A. Hemesath 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.
Second Man Sentenced to over 3 Years in Prison for Growing More Than 5,000 Marijuana Plants in Lassen National ForestRead the Press Release
SACRAMENTO, Calif. — Daniel Gomez-Gonzalez, 32, of Mexico, was sentenced today by United States District Judge Troy L. Nunley to three years and one month in prison for growing marijuana in the Lassen National Forest, United States Attorney Benjamin B. Wagner announced.
According to court documents, on July 11, 2014, United States Forest Service agents and Tehama County Sheriff’s deputies raided a marijuana cultivation site near the North Fork Antelope Creek in Tehama County in Lassen National Forest. Law enforcement eradicated a total of 5,287 marijuana plants at the cultivation site. They also found a Remington shotgun, more than 1,000 pounds of trash and various types of fertilizers, insecticides, and animal poisons at the grow site. Gomez-Gonzalez was arrested on a forest trail west of the site. He told law enforcement that he was responsible for spraying, watering, and fertilizing the marijuana plants and that he expected to earn a portion of the profits generated from the marijuana grown at the site.
Co-defendant Eric Perez was arrested the same day in the marijuana cultivation site. Law enforcement had observed Perez watering marijuana plants. Perez pleaded guilty to manufacturing marijuana on October 16, 2014, and on January 15, 2015, Judge Nunley sentenced him to three years and one month in prison.
This case was the product of an investigation by the United States Forest Service and Tehama County Sheriff’s Office. Assistant United States Attorney Christiaan Highsmith prosecuted the case.
Sacramento Man Indicted for Drugs and Firearm OffensesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Hector Manuel Mendoza, 32, of Sacramento, charging him with possessing methamphetamine with intent to distribute and with being a felon in possession of a firearm, United States Attorney Benjamin B. Wagner announced.
According to court documents, on December 30, 2014, Mendoza possessed the methamphetamine and firearm in Sacramento County.
This case is the product of an investigation by the Federal Bureau of Investigation and the Sacramento Police Department. Assistant United States Attorney Jill Thomas is prosecuting the case.
If convicted, Mendoza faces a maximum statutory penalty of life in prison and a $10 million fine for the methamphetamine count and up to 10 years in prison for the firearm count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Fair Oaks Resident Sentenced to More Than 8 Years for Receipt of Child PornographyRead the Press Release
SACRAMENTO, Calif. — Aleksandar Randjelovich, 39, of Fair Oaks, was sentenced today by United States District Judge Troy L. Nunley to eight years and two months in prison for receipt of child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, law enforcement agents identified a computer operating out of Randjelovich’s residence offering files of child pornography through a file-sharing network. After executing a search warrant, agents found 1,276 videos and 3,690 images containing child pornography. In Randjelovich’s plea agreement entered on July 3, 2014, he admitted that he would download the files four to six times per week from about September 3, 2008 until October 12, 2012. The files included images of bondage and of toddlers being sexually molested by adults.
“The large volume of child pornography this defendant possessed make it clear he harbored a dangerous sexual interest in children and posed a threat to our community,” said Ray Greenlee, assistant special agent in charge for HSI Sacramento. “This lengthy prison term will prevent him from preying on children and continuing to perpetuate the cycle of victimization that occurs when child pornography is downloaded from the Internet.”
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Special Assistant United States Attorney Josh F. Sigal prosecuted the case.
Randjelovich was remanded into federal custody after today’s sentencing hearing.
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.
Washington Man Sentenced to over 4 Years in Prison for A Telemarketing Scam Targeting Elderly CitizensRead the Press Release
SACRAMENTO, Calif. —Joseph Nkunzi, 31, of Des Moines, Washington, was sentenced today by United States District Judge Kimberly J. Mueller to four years and three months in prison for his involvement in a telemarketing scheme that defrauded senior citizens of hundreds of thousands of dollars, United States Attorney Benjamin B. Wagner announced.
According to court documents, beginning in 2011, Nkunzi and others operated a scheme that involved calling senior citizens and telling them they had won a prize. They were told that in order to receive the prize, they first needed to pay taxes and fees. The victims would either mail checks to Nkunzi or would directly deposit checks into bank accounts that he established and controlled. The scam targeted victims throughout California, including residents of Woodland, Stockton, Bakersfield, and Dinuba. When federal agents searched Nkunzi’s home in Washington, they seized a Maserati and a Lexus. In total, the victims lost approximately $850,000 to the scam.
The case first came to the attention of the FBI in April 2013, when it received a referral from the Woodland Police Department regarding a 78-year-old victim of the scam. She had been called by “North American Prize Pool” and told that she had won $8.8 million, but first she had to send $182,000 to various accounts to pay for taxes and fees.
This case was the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation with assistance from the Woodland Police Department. Assistant United States Attorney Michele Beckwith prosecuted the case.
Visalia Woman Sentenced to over 3 Years in Prison for Filing False Tax Returns Using Stolen IdentitiesRead the Press Release
FRESNO, Calif. — United States District Judge Lawrence J. O’Neill sentenced Rebekah Root, 34, of Visalia, today to three years and nine months in prison for wire fraud, making a false claim for a tax refund, and aggravated identity theft, United States Attorney Benjamin B. Wagner announced.
According to court documents, in 2011, Root obtained tax documents that were stolen from an Internal Revenue Service office in Visalia. She used those tax documents to submit false tax returns on behalf of six taxpayers, without their knowledge or permission, and claimed approximately $50,000 in fraudulent tax refunds.
This case was the product of an investigation by the Treasury Inspector General for Tax Administration and IRS Criminal Investigation. Assistant United States Attorneys Patrick R. Delahunty and Grant B. Rabenn prosecuted the case.
Bakersfield Man Pleads Guilty to Shining Laser at Law Enforcement AircraftRead the Press Release
FRESNO, Calif. — Timothy Earl Wilson, 46, of Bakersfield, pleaded guilty today to aiming a laser pointer at an aircraft, United States Attorney Benjamin B. Wagner announced.
According to court documents, on March 2, 2014, Wilson pointed a powerful green laser two times at Air-1, a Kern County Sheriff’s Office helicopter while it was flying 500 feet above the ground. As a result of the laser strikes, the tactical flight officer experienced a feeling of pressure, throbbing, and irritation in his eyes that lasted 30 minutes and the flight crew was forced to divert attention away from its law enforcement responsibilities.
The federal statute that makes it a federal crime to knowingly aim the beam of a laser pointer at an aircraft was signed into law in 2012 by President Obama in response to increasing threats posed by laser illuminations of aircraft. Last year, there were 3,894 reported laser strikes in the United States, or 10.67 incidents per day.
Wilson is scheduled for sentencing on March 30, 2015, before Senior United States District Judge Anthony W. Ishii. Wilson faces a maximum penalty of five years in prison and a $250,000 fine, along with forfeiture of the seized lasers. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the Federal Bureau of Investigation, the Kern County Sheriff’s Office, and the Bakersfield Police Department. Assistant United States Attorney Karen A. Escobar is prosecuting the case.
Eureka Brothers Plead Guilty to Growing Marijuana in Shasta-Trinity National Forest and Destroying Public Lands and ResourcesRead the Press Release
SACRAMENTO, Calif. —Isidro Alcazar-Tapia, 25, and Arturo Alcazar-Tapia, 21, both of Eureka, pleaded guilty today to conspiracy to manufacture marijuana and depredation of public lands and resources, United States Attorney Benjamin B. Wagner announced.
According to court documents, Isidro and Arturo Alcazar-Tapia conspired to grow more than 20,000 marijuana plants at two sites in the Shasta-Trinity National Forest in Trinity County. The marijuana was packaged for distribution at a house in Eureka. On August 4, 2014, law enforcement executed a search warrant at the defendants’ home in Eureka and found 33 pounds of processed marijuana divided into one pound packages and more than $6,000 in cash. Agents located and destroyed approximately 7,980 marijuana plants at a cultivation site at Big French Creek, and located and destroyed approximately 13,642 marijuana plants at a site at Hobo Gulch Road. The marijuana cultivation caused significant damage to the land and natural resources of the forest that provides habitat for several threatened and endangered animal species.
At the Big French Creek site, agents observed hundreds of holes dug in the dirt containing soluble fertilizer, bags of trash, empty fertilizer bags, propane tanks, and water lines diverting water from a stream into the marijuana garden. Analysts estimate that cleaning the Big French Creek site will cost the U.S. Forest Service more than $4,000. Agents observed similar destruction at the Hobo Gulch Road site. Analysts estimate that cleaning the Hobo Gulch Road site will cost the U.S. Forest Service approximately $13,000.
This case is 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.
Isidro and Arturo Alcazar-Tapia are scheduled to be sentenced by Judge Garland E. Burrell Jr. on April 3, 2015. They face a possible sentence of five to 40 years in prison and a $5 million fine for the conspiracy charge. The sentence for the manufacture of marijuana charge is up to 20 years in prison and a $1 million fine. The sentence for depredation of public lands and resources charge is up to 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.Two Fresno Men Charged with Being Felons in Possession of A FirearmRead the Press Release
FRESNO, Calif. — Today, a federal grand jury in Fresno indicted two defendants in separate cases with being felons in possession of a firearm, United States Attorney Benjamin B. Wagner announced.
The cases were brought as part of the Project Safe Neighborhoods (PSN) federal initiative. PSN brings together federal, state and local law enforcement to combat gun and gang crime. At the core of PSN is increased federal prosecution to incapacitate chronic violent offenders as well as to communicate a credible deterrent threat to potential gun offenders.
According to the first indictment, police officers conducted a probation search of an apartment in Fresno where Alan Anthonee Amey, 23, was residing after receiving a report that Amey had two guns and was threating to shoot the reporting party. Officers found a loaded Glock 23 .40‑caliber semi-automatic handgun and a loaded Ruger P95 9mm handgun. Amey is prohibited from possessing a firearm after being convicted in Fresno County of domestic violence in 2010 and 2011. Assistant United States Attorney Laurel J. Montoya is prosecuting the case.
The second indictment alleges that on December 6, 2014, Ernie Michael Rodriguez, 39, of Fresno, was stopped by officers when he failed to stop at a stop sign. Officers searched the vehicle and found an AA Arms, model AP9, 9mm firearm. The firearm had a high capacity magazine that contained 26 rounds of live ammunition. The vehicle had been reported stolen the previous day. Rodriguez is prohibited from possessing a firearm. Assistant United States Attorney Kimberly A. Sanchez is prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The charges against defendants are only allegations and the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
These cases are the product of investigations by the Fresno Police Department.Stockton Man Pleads Guilty to Illegally Selling FirearmsRead the Press Release
SACRAMENTO, Calif. —Donovan Torres, 21, of Stockton, pleaded guilty today to illegally selling firearms, United States Attorney Benjamin B. Wagner announced.
According to court documents, on January 15, 2014, Donovan Torres participated in the illegal sale of three firearms to an undercover special agent working with the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives. Then, on January 31, 2014, Torres sold the agent a Masterpiece Arms MPA30, 9mm pistol for $1,350. And on February 13, 2014, Torres met with a second undercover ATF agent and sold him an Izhmash Saiga, .223‑caliber rifle for $1,600. These illegal gun sales all took place inside a residence in Stockton. Torres did not have a federal license to sell firearms.
This case is the product of an investigation by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Christiaan Highsmith is prosecuting the case.
Donovan Torres is scheduled to be sentenced by United States District Judge Morrison C. England Jr. April 9, 2015. He faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Sacramento Drug Dealer Sentenced to More Than 21 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — John Winton Harris, 31, of Sacramento, was sentenced today by United States District Judge Morrison C. England Jr. to 21 years and 10 months in prison for possessing more than 163 grams of crack cocaine, United States Attorney Benjamin B. Wagner announced.
According to evidence presented at trial, Sacramento police officers responded to a domestic violence complaint at an apartment complex in Sacramento. When the officers entered the apartment, they found Harris crouched in the kitchen area. He was moved to a different location in the apartment, and when officers found a large amount of cocaine base where he had been crouching in the kitchen, Harris attempted to flee. Harris claimed he did not live in the apartment, but officers found mail addressed to him at that address, as well as other personal items belonging to him in the apartment. Harris’s cellphone revealed photographs of Harris in the same apartment with a large amount of currency only days before, as well as text messages indicating he was involved in the distribution of cocaine base that very week.
The sentence imposed on Harris was based not just upon the circumstances of his offense, but also his substantial criminal history, which rendered him a career criminal under federal law. Another factor the court considered in imposing sentence was the finding that Harris obstructed justice by testifying falsely at a hearing held during his trial.
This case was the product of an investigation by the United States Drug Enforcement Administration and the Sacramento Police Department. Assistant United States Attorneys Todd Pickles and Chris Highsmith prosecuted the case.
Butte County Man Pleads Guilty to Drug Trafficking and Being A Felon in Possession of A FirearmRead the Press Release
SACRAMENTO, Calif. — Seth Michael Bertolini, 44, of Chico, pleaded guilty today to one count of being a felon in possession of a firearm and one count of drug trafficking, United States Attorney Benjamin Wagner announced.
This case is the product of an investigation by the Federal Bureau of Investigation, the Chico Police Department, and the Butte County Sheriff’s Office. Assistant U.S. Attorney Michelle Rodriguez is prosecuting the case.
According to court documents, on June 4, 2014, law enforcement officers in Chico stopped Bertolini for driving with his car’s radio system playing too loudly. Bertolini emerged from his car appearing animated and agitated and he initially squared off to fight before turning and fleeing. After a foot pursuit, officers arrested Bertolini and found over 35 grams of packaged heroin on his person and in his car and a fully loaded Smith and Wesson .32 caliber revolver. During a later search of Bertolini's residence, more heroin, trafficking paraphernalia, and another gun were found. Bertolini has suffered multiple prior felony convictions.
Bertolini is scheduled to be sentenced on April 16, 2015, by U.S. District Judge Troy L. Nunley. Bertolini faces a maximum sentence of 10 years in prison for the gun offense and up to 20 years in prison for the drug trafficking offense. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Sacramento Man Sentenced to over 13 Years in Prison for Sex Trafficking of a MinorRead the Press Release
SACRAMENTO, Calif. — Lonnell McCarter, 39, of Sacramento, was sentenced today by United States District Judge William B. Shubb to 13 years and one month in prison for participating in a sex trafficking venture that involved a child prostitute, United States Attorney Benjamin B. Wagner announced. After his release, McCarter will be subject to supervision for an additional twenty years.
According to court documents, in October 2010, McCarter took part in pimping a 13‑year-old child and an adult in the Sacramento area and also during a three-day trip from California to Reno, Nevada. During his involvement with the minor, McCarter took part in advertising the child for prostitution, purchased bus tickets for the minor to travel across state lines, and collected the money that the child and the adult prostitute received from customers in California and Nevada.
“Lonnell McCarter preyed upon and entrapped a 13-year-old girl in a lifestyle dominated by exploitation and abuse as she was sold for sex in both California and Nevada,” said Supervisory Special Agent Maria Johnson of the FBI’s Sacramento field office. “The FBI is committed to identifying, investigating, and arresting anyone who traffics a child. Our goal is to disrupt the cycle of coercion and violence by providing their victims a chance of a healthy and happy future.”
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Matthew Morris prosecuted the case.
Kern County Man Sentenced for Counterfeiting U.S. CurrencyRead the Press Release
FRESNO, Calif. — Alfonso Castellon, 41, of Bakersfield, was sentenced today to two and a half years in prison by Senior United States District Judge Anthony W. Ishii for counterfeiting U.S. currency and possessing images for counterfeiting purposes, United States Attorney Benjamin B. Wagner announced.
According to court documents, from January 2011 to March 2014, Castellon created counterfeit Federal Reserve Notes in $100 and other denominations. In March 2014, a search of his residence revealed sample images of $100 bills and computer equipment, printers, and ink associated with counterfeiting, along with a flash drive containing images of $100 bills. Castellon estimated he produced approximately 20 counterfeit $100 bills per week, or approximately $100,000 per year.
This case was the product of an investigation by the United States Secret Service, the Kern County Sheriff’s Office, and the Bakersfield Police Department. Assistant United States Attorney Michael G. Tierney prosecuted the case.
Fourth Man Enters Guilty Plea Relating to Large Sequoia National Forest Marijuana GrowRead the Press Release
FRESNO, Calif. — David Arreola Villareal, 29, of Michoacàn, Mexico, pleaded guilty today to conspiring to manufacture, distribute and possess with intent to distribute marijuana grown on public land and possessing a firearm in furtherance of the conspiracy, U.S. Attorney Benjamin B. Wagner announced.
According to the plea agreement, Arreola and co-defendants Hernan Cortez‑Villaseñor, 40, Homero Pacheco-Rivera, 22, Alfonso Cornejo, 32, and Jose Luis García-Villa, 22, also of Michoacàn, Mexico, conspired to grow approximately 8,876 marijuana plants in the Greenhorn Creek area of the Sequoia National Forest in Kern County. Arreola possessed a 9 millimeter semi-automatic handgun when he was arrested at the grow site.
In pleading guilty, Arreola also agreed to compensate the U.S. Forest Service for the extensive damage to the land and natural resources caused by the cultivation. Native oak trees and other vegetation were cut down or otherwise killed to make room for the marijuana plants. The soil was tilled, and fertilizers and pesticides, including Fosfuro de Zinc, an illegal rat poison, were spread throughout the site. Fosfuro de Zinc contains zinc phosphide, a highly toxic chemical that can sicken or kill human beings. When Arreola was apprehended, he was sick and had to be air-lifted out of the grow site. According to Arreola, several other growers had previously left the site, because they were sick.
Arreola is scheduled for sentencing on March 23, 2015, before Senior U.S. District Judge Anthony W. Ishii. He faces a maximum prison sentence of five years for the drug conspiracy and a mandatory consecutive prison term of five years for the gun 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.
Cortez-Villaseñor, Cornejo, and García-Villa previously entered guilty pleas. Cortez-Villaseñor was sentenced to a 10-year prison term, while Cornejo and García-Villa were both sentenced to prison terms of three years and 10 months. Pacheco-Rivera is a fugitive.This case is the product of an investigation by the U.S. Forest Service, the U.S. Drug Enforcement Administration, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the U.S. Environmental Protection Agency Criminal Investigation Division, and the Kern County Sheriff’s Office. Assistant United States Attorney Karen Escobar prosecuted the case.
Additional Charges in Ongoing National Guard Recruiting-Fraud InvestigationRead the Press Release
SACRAMENTO, Calif. — Steel A. Davis, 42, of Paradise, was arraigned today in federal court, charged with wire fraud in a scheme to obtain bonuses for purportedly referring individuals to enlist in the California National Guard, United States Attorney Benjamin B. Wagner announced. Davis pleaded not guilty to the charges.
According to court documents, the United States Army contracted with a company called Document and Packaging Broker Inc. (DOCUPAK) to administer the Guard Recruiting Assistance Program (G-RAP). Under G-RAP, members of the California National Guard served as Recruiting Assistants. If a Recruiting Assistant referred a potential Guard member to a recruiting office and that person ultimately enlisted, the Recruiting Assistant was eligible to receive monetary compensation disbursed by DOCUPAK.
According to the indictment, Davis, who was a recruiter with the California National Guard at the time, is alleged to have given recruits’ information to recruiting assistants, who would then file false claims with DOCUPAK that they had referred the recruits to join the Guard when, in fact, the recruits had joined on their own initiative. When the compensation was received, Davis is alleged to have then split the proceeds of the fraud with the recruiting assistants.
This case is the product of an ongoing investigation by the Army Criminal Investigative Command Major Procurement Fraud Unit, the Defense Criminal Investigative Service, and the Federal Bureau of Investigation. Assistant United States Attorney Matthew G. Morris is prosecuting the case.
If convicted, Davis faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
In May 2014, eight other National Guard soldiers were indicted in Sacramento and Fresno. Two of those defendants have pleaded guilty. The remaining cases are pending. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.Riverside County Man Pleads Guilty to Conspiracy to Grow Marijuana and Setting Fires in National ForestRead the Press Release
FRESNO, Calif. — Edgardo Fournier, aka Edgardo Fournier-Nigaglioni, 46, of Perris, pleaded guilty today to conspiring to manufacture, distribute and possess with intent to distribute marijuana, and setting timber afire in the Sequoia National Forest, U.S. Attorney Benjamin B. Wagner announced.
According to the guilty plea, from about April 1, 2014 to July 12, 2014, Fournier helped water and tend 2,090 marijuana plants at a grow site in the Smith Canyon area of the Sequoia National Forest in Kern County. He admitted that on July 11 and 12, he lit fires in the vicinity of the grow site within the boundaries of the federally designated Kiavah Wilderness Area. The fires converged and became known as the Nicolls Fire. The Nicolls Fire destroyed about 1,680 acres of public land causing over $6.5 million of damage. The fire did not damage the marijuana cultivation site, which also caused significant damage to the land and natural resources of the forest.
Fournier is scheduled for sentencing on March 30, 2015. He faces a prison term of between five and 40 years for the drug conspiracy and up to a $5 million fine. The arson charge carries a maximum penalty of five years in prison and $250,000 fine. The actual sentence, however, 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.
This case is the product of an investigation by the U.S. Forest Service, the U.S. Bureau of Land Management, and the Kern County Sheriff’s Office. Assistant United States Attorney Karen A. Escobar is prosecuting the case.
Jury Finds Sacramento Man Guilty of Sex TraffickingRead the Press Release
SACRAMENTO, Calif. — Late Tuesday evening, a federal jury found a Sacramento man guilty of five counts of sex trafficking related to five victims, United States Attorney Benjamin B. Wagner announced.
After an 11-day trial before U.S. District Judge Troy L. Nunley, Percy Love III, 32, was convicted of three counts of sex trafficking by force, fraud and coercion, one count of sex trafficking of a minor, and one count of attempted sex trafficking of a minor.
This case is the product of an investigation by the FBI’s Child Exploitation Task Force, a multijurisdictional task force composed of representatives from the FBI and the Sacramento Police Department, with assistance from the Sacramento County District Attorney’s Office. Assistant United States Attorneys Michele Beckwith and Jason Hitt are prosecuting the case. Assistant U.S. Attorney Kyle Reardon, formerly with this office, prosecuted the case pretrial.
According to evidence produced at trial, Love targeted vulnerable young women and underage girls to work as prostitutes for him since at least 2007. The testimony of witnesses at trial, including the victims, revealed a pattern of conduct where Love used charm to recruit and brute force to control the women and girls who worked for him.
According to court documents, on July 22, 2013, Sacramento police officers were called to a report of domestic violence and found Love asleep in the front seat of a car with a woman, whose sister had called in the report. The woman explained to officers that she was in a “working relationship” with Love. She claimed that Love had beaten her many times, and she had bruises and cigarette burns on her hand, arm and stomach. Love was arrested that night for domestic violence and possession of Ecstasy.
On September 12, 2013, a federal grand jury indicted Love, charging him with two counts of sex trafficking by force, fraud, or coercion. After further investigation revealed more victims, a superseding indictment was brought on March 13, 2014. Love has been in custody since his arrest and represented himself during trial.
Sentencing is scheduled for March 12, 2015, before Judge Nunley. Love faces 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.
Fresno Man Sentenced for Possession of Stolen MailRead the Press Release
FRESNO, Calif. — United States District Judge Lawrence J. O’Neill sentenced Bee Yang, 31, of Fresno, today to 20 months in prison for unlawful possession of stolen mail, United States Attorney Benjamin B. Wagner announced.
According to court documents, on January 5, 2012, Yang was in possession of stolen mail that included stolen checks totaling approximately $36,000 from at least 250 victims. Additionally, Yang was also in possession of items used to steal mail and chemicals that could be used to erase previously written checks so that the payee and amount of a check could be rewritten.
This case was the product of an investigation by the United States Postal Inspection Service. Assistant United States Attorney Patrick R. Delahunty prosecuted the case.
Fresno Man Pleads Guilty to Possession of Child PornographyRead the Press Release
FRESNO, Calif. — Shane Paul Young, 44, of Fresno, pleaded guilty today to one count of possession of child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, between February 2012 and October 2012, Young possessed more than 600 images of child pornography. Some of the images depicted prepubescent minors, and some were of violence or sadistic or masochistic conduct. He initially told investigators that he did not possess any child pornography, but later he conceded that he had been communicating with registered sex offenders and had saved images of child pornography on several DVDs that he had labeled “Turn in to DOJ.” He explained that he had intended to turn over the material to appropriate people at some time.
Young is scheduled to be sentenced by U.S. District Judge Lawrence J. O’Neill on March 30, 2015. Young faces 10 to 20 years in prison, a $250,000 fine, and a lifetime term of supervised release. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. Young has been in custody as a danger to the community and a flight risk since his initial federal court appearance on April 9, 2013.
This case is the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Fresno County Sheriff’s Office and the Central Valley Internet Crimes Against Children Task Force. Assistant United States Attorney David Gappa is prosecuting the case.
The case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. Click on the “resources” tab for information about Internet safety education.
Two Fresno Men Indicted for Firearm Possession After Being Convicted of A FelonyRead the Press Release
FRESNO, Calif. — A federal grand jury in Fresno returned two indictments yesterday charging two defendants with possessing a firearm after being convicted of a felony, United States Attorney Benjamin B. Wagner announced.
According to the first indictment, officers conducted a probation search at the residence of Kenneth Benton, 26, of Fresno, and found a loaded 9mm Luger firearm on a shelf next to a bag containing 13 rounds of ammunition. Benton was convicted of felonies in Fresno County Superior Court in 2007, 2008, and 2014, and is prohibited from possessing a firearm. This case is the product of an investigation by the Fresno Police Department’s Violent Crime Impact Team (VCIT).
According to the second indictment, officers conducted a probation search of the residence of Juan Carlos Negrete, 23, of Fresno, and found a loaded 40‑caliber semi‑automatic handgun. Negrete was convicted of felonies in Fresno County Superior Court in 2011 and 2012 and is prohibited from possessing a firearm. This case is the product of an investigation by the Multi-Agency Gang Enforcement Consortium (MAGEC).
If convicted, Benton and Negrete each face up to 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, 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. Assistant United States Attorney Laurel J. Montoya is prosecuting both cases.
Seven Defendants Sentenced Recently for Roles in Nationwide Foreclosure Rescue ScamRead the Press Release
SACRAMENTO, Calif. — Seven defendants were sentenced recently for a huge mortgage fraud scheme that was charged in 2008. A federal grand jury brought two indictments that charged 19 people in a fraud scheme that promised to help homeowners avoid foreclosure and repair their credit. Most defendants have pleaded guilty or have been convicted by juries. The leaders, brothers Charles Head and Jeremy Michael Head, have been sentenced to 35 years and 10 years in prison respectively.
On December 10, 2014, United States District Judge Kimberly J. Mueller sentenced Benjamin Budoff to four years in prison. Judge Mueller sentenced, Leonard Bernot to 18 months in prison on Monday; on Wednesday, sentenced Akemi Bottari, on to three years’ probation; and on Thursday, sentenced Omar Sandoval to four years and 10 months in prison and Lisa Vang to three years’ probation. On Friday, Judge Mueller sentenced Andrew Vu to six months in prison, to be followed by six months of home detention, and Sarah Mattson was sentenced to three months of home detention.
In November, Kou Yang was sentenced to four years in prison, Joshua Coffman was sentenced to 20 months in prison, Justin Wiley was sentenced to 18 months in prison, and Elham Assadi was sentenced to six months of home detention.
According to court documents, the Head brothers and their associates solicited homeowners facing foreclosure, promising them that they would help the homeowners avoid foreclosure and repair their credit. Instead, through misrepresentations, fraud and forgery, the defendants substituted straw buyers for the victim homeowners on the titles of properties without the homeowners’ knowledge. These straw buyers were often friends and family members of the defendants. Once the straw buyers were on title to the homes, the defendants applied for mortgages to extract the maximum available equity from the homes. The defendants then shared the proceeds of the ill-gotten equity and the “rent” that the victim homeowners paid them. Ultimately, the victim homeowners were left with no home, no equity, and with damaged credit ratings. Between January 2004 and March 2006, the scam netted more than $15 million in fraudulently obtained funds from scores of homeowners, many of whom were in California.This case is the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. Assistant United States Attorneys Michael D. Anderson and Matthew G. Morris are prosecuting the case.
To date, all but four of the 19 defendants have been sentenced: Charges were dismissed against one defendant, one defendant is scheduled to be sentenced in January 2015, and charges remain pending against two defendants.
This case was part of the President’s Financial Fraud Enforcement Task Force, established to wage an aggressive, coordinated effort to investigate and prosecute financial crimes. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes. For more information on the task force, please visit www.StopFraud.gov.
Reno Man Pleads Guilty to Possession of Marijuana with Intent to DistributeRead the Press Release
SACRAMENTO, Calif. —Kevin Dennis Golden, 39, of Reno, Nevada, pleaded guilty today to possession of marijuana with intent to distribute, United States Attorney Benjamin B. Wagner announced.
According to court documents, on December 14, 2012, law enforcement agents went to the Lincoln airport as part of an investigation into a suspicious Cessna airplane that had been making frequent flights from California to the Midwest and East Coast. After the plane landed, the pilot was seen going into the pilot’s lounge. Approximately an hour later, Golden drove up to the airplane and removed three black suitcases and a backpack from his vehicle and placed them inside the airplane. Golden then drove to a nearby parking lot, parked, and walked back to the airplane. When agents approached Golden at the plane, they obtained consent from Golden to look inside the suitcases. They discovered multiple vacuum-sealed bags of marijuana. An additional bag of marijuana was found in the smaller backpack that also contained Golden’s identification. A total of 40 kilograms (88 pounds) of marijuana were taken out of the suitcases and backpack.
“The use of private planes and small private airports to distribute controlled substances is a known and continuing problem within the Eastern District of California,” U.S. Attorney Benjamin Wagner stated. “Persons involved in such activity should understand that they face prison, large fines, and, in appropriate cases, forfeiture of vehicles and aircraft used to engage in such activity.”
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), with the assistance of the Lincoln Police Department and the Placer County Sheriff’s Office.
Golden is scheduled to be sentenced by United States District Judge Garland E. Burrell Jr. on March 27, 2015. Golden faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined by the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.- Iron Mountain Companies Agree to Pay $44.5 Million to Settle Alleged False Billing for Storing Government Documents and Data
Defendant in Extensive Marriage Fraud Scheme Pleads GuiltyRead the Press Release
SACRAMENTO, Calif. —Sippy Lal, 61, of Sacramento, pleaded guilty today to conspiring to induce aliens to illegally enter the United States for private financial gain, United States Attorney Benjamin B. Wagner announced.
According to court documents, Lal and his co-defendants Mamta Sharma and Rani Singh-Lal were involved in an elaborate immigration-fraud scheme involving foreign nationals from India who paid to enter into sham engagements or marriages with locally recruited U.S. citizens in an effort to legalize their immigration status. The citizens recruited by Lal were paid thousands of dollars to fly to India, meet and take pictures with a purported spouse, and sometimes enter into actual marriages (albeit often using aliases). Thereafter, fraudulent petitions were filed with the United States seeking visas allowing the Indian citizens to enter and reside within the United States. On at least one occasion, after an alien entered on a fraudulent fiancé visa procured through the scheme, Lal paid a U.S. citizen to further participate by entering into a sham marriage with the alien in Sacramento.
Co-defendant Sharma used various aliases to pose as a U.S. citizen in connection with five different petitions filed since 2008, despite the fact that she is not a U.S. citizen and despite the fact that she was married to Lal throughout that time period. Similarly, co-defendant Singh-Lal posed as the petitioner with respect to three different petitions, all filed with slight variations on her true name.
According to Lal’s plea agreement, well over 25 fraudulent petitions were submitted to immigration authorities as a result of the conspiracy, and at least nine Indian nationals entered the United States and were, at least for some period of time, able to avoid detection.
Co-defendants Sharma and Singh-Lal previously entered guilty pleas and were sentenced to terms of imprisonment of 24 months and 27 months, respectively.
Lal is scheduled to be sentenced by United States District Judge Garland E. Burrell Jr. on March 6, 2015. The plea agreement contemplates a sentence of two years. The actual sentence, however, will be determined at the discretion of the court at the hearing.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), United States Citizenship and Immigration Services – Fraud Detection and National Security Unit, and the California Department of Justice – Bureau of Investigation and Intelligence. Assistant United States Attorneys Michele Beckwith and Philip Ferrari are prosecuting the case.Clovis Man Convicted for Trafficking Child PornographyRead the Press Release
FRESNO, Calif. — Senior United States District Judge Anthony W. Ishii today found Todd Douglas Udall, 49, of Clovis, guilty of one count of attempted and actual distribution and receipt of child pornography, United States Attorney Benjamin B. Wagner announced. The guilty verdict came at the conclusion of a trial before Judge Ishii that began earlier this week.
According to a criminal complaint, Udall came to the attention of the Clovis Police Department when a 13-year-old girl disclosed that Udall had been sending her sexually themed electronic text messages. He sent messages to her cellphone and communicated with her through Facebook. Investigators obtained a warrant to search Udall’s residence, and they located a laptop computer, a desktop computer, and an external hard drive. When those items were reviewed, investigators discovered that Udall had been engaging in sexually explicit chat communications with dozens of people, many purporting to be minors, at various locations in and outside of the United States. Many of the chats discussed the receipt and distribution of images of child pornography as well as the desire to engage in sexual activities with children. Judge Ishii found, based on evidence introduced at the trial, that Udall had received and distributed numerous images of child pornography on dates from as early as February 2007 until just prior to the seizure of his computers on September 23, 2009. Udall has been in federal custody since his initial appearance in federal court on July 21, 2010, as both a danger to the community and a flight risk.
The court has scheduled a sentencing hearing for March 16, 2015, at 10:00 a.m. Udall faces a minimum prison term of five years with a maximum term of 20 years as well as a potential $250,000 fine and a lifetime term of supervised release. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was the result of an investigation by the Clovis Police Department. Assistant United States Attorneys David Gappa and Megan Richards prosecuted the case.
The case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. Click on the “resources” tab for information about Internet safety education.Three Men Indicted by A Federal Grand Jury for Conspiracy to Distribute over 10 Pounds of HeroinRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Julio Perez, 32; Rafael Legorreta, 34, both of Bakersfield; and Francisco Rivera, 29 of Palmdale, charging them with conspiracy to distribute heroin and possession with intent to distribute heroin, United States Attorney Benjamin B. Wagner announced.
According to court documents, on December 2, 2014, law enforcement officers conducted an authorized search of Perez’s home, and found Perez, Legorreta, and Rivera in the locked basement of the residence with approximately 12 lbs. of heroin, packaging material, zip lock bags, digital scales, metal strainers, a blender, drug paraphernalia, and other items.
This case was the product of an investigation by the Federal Bureau of Investigation and the Kern County Sheriff’s Office Gang Suppression Unit. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
If convicted, each defendant faces a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Solano County Violent Gang Safe Streets Task Force Efforts Result in Three Federal Indictments for Firearm ChargesRead the Press Release
SSACRAMENTO, Calif. — Michael Quesenberry, 26, of Sacramento; Ignacio Hernandez, 37, of Vallejo; and Rahson Woods, 35, of Vallejo, were charged today by a federal grand jury in separate indictments with being a felon in possession of a firearm, United States Attorney Benjamin B. Wagner announced.
Each defendant was found to be in possession of a firearm after having been convicted of one or more felonies. Hernandez was also charged with possession with intent to distribute methamphetamine.
If convicted, each defendant faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
These cases are the products of investigations by the Solano County Violent Gang Safe Streets Task Force, which includes the Federal Bureau of Investigation, the Solano County Sheriff’s Office, Vallejo Police Department, the California Highway Patrol, and the Solano County District Attorney’s Office. Assistant United States Attorney Olusere Olowoyeye is prosecuting the cases.
The Solano County Violent Gang Safe Streets Task Force is part of the FBI-sponsored Safe Streets Initiative that combines the efforts of federal, state, and local agencies in an effort to stop violent felons from endangering our communities.
Placerville Business Owner Sentenced for Filing False Tax ReturnsRead the Press Release
SACRAMENTO, Calif. — United States District Judge Morrison C. England Jr. sentenced Thomas W. Stringfellow, 55, of Placerville, today to 18 months in prison and ordered to pay $687,182 in restitution for willfully making false tax returns, United States Attorney Benjamin B. Wagner announced.
According to court documents, from 2006 through 2010, Stringfellow underreported his business income on tax returns by more than $1.1 million, and underreported his personal income on tax returns by more than $1 million. Stringfellow owned New Horizon Painting, and rather than depositing all of the business checks into the appropriate accounts, he cashed some of the checks and did not report those amounts as income. In total, Stringfellow’s underreporting of his business income and his personal income led to a tax loss of more than $687,000.
This case was the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Jean M. Hobler prosecuted the case.Lathrop Man Sentenced to over 8 Years in Prison for Methamphetamine TraffickingRead the Press Release
SACRAMENTO, Calif. — Jonathan Garcia, 24, of Lathrop, was sentenced today by United States District Judge Morrison C. England, Jr. to eight years and five months in prison for possession with the intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.
According to court documents, on May 7, 2013, Garcia drove to a residence in Manteca to deliver methamphetamine to a buyer. When he arrived, he was met by law enforcement officers who searched his car and found approximately 103 grams of 99% pure crystal methamphetamine in the center console and a loaded gun. During a subsequent search of Garcia’s residence, officers found an additional 110.8 grams of methamphetamine.
“As this lengthy sentence makes clear, trafficking methamphetamine is a serious offense that will be punished with the full weight of the law,” said Kim Wong, resident agent in charge HSI Stockton. “Left unchecked, this highly dangerous substance destroys lives and wreaks havoc on entire communities. HSI, together with its federal, state and local law enforcement partners, is committed to using every tool and authority at its disposal to combat the menace posed by meth.”
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Manteca Police Department. Assistant United States Attorney Christiaan Highsmith prosecuted the case.
Business Partners Plead Guilty to Running Multi-million Dollar Foreclosure Rescue Scam in Bakersfield, Visalia and SalinasRead the Press Release
FRESNO, Calif. — Juan Ramon Curiel, 36, of Visalia, pleaded guilty today to conspiracy to commit mail fraud and bankruptcy fraud in connection with a foreclosure rescue scheme he orchestrated, United States Attorney Benjamin B. Wagner announced. Curiel’s co-defendant and business partner, Santiago Palacios-Hernandez, 45, of Salinas, pleaded guilty to the same conspiracy charge last week.
According to court documents, Curiel and Palacios-Hernandez operated Star Reliable Mortgage, with offices in Bakersfield, Visalia and Salinas. Between August 2010 and October 2011, Curiel and Palacios-Hernandez conspired to defraud homeowners and lenders by offering clients a purported “loan elimination” program that would enable homeowners to own their homes “free and clear” of any loans or mortgages.
Curiel and Palacios-Hernandez charged clients upfront fees ranging from $2,500 up to $4,500 and additional monthly fees and told their clients to stop paying their mortgages. Curiel and Palacios-Hernandez filed various fraudulent documents at county recorders’ offices on behalf of the clients supposedly replacing the legitimate trustees with fictitious trusts affiliated with the defendants or documents that transferred the property to a bankruptcy debtor all in an effort to “cloud title” and halt or stall the foreclosure process. Because foreclosures were stalled, clients continued to pay the monthly fees to defendants believing that their services were legitimate and successful. Instead of owning their homes “free and clear,” however, many of the clients lost their homes in foreclosure.
Curiel and Palacios-Hernandez admitted in their plea agreements that their criminal conduct caused losses of more than $2.5 million. Curiel separately admitted in his plea agreement that he fraudulently filed bankruptcy for one of his clients.
This case is the product of an investigation by the Federal Bureau of Investigation and the Tulare County District Attorney’s Office. Assistant United States Attorneys Christopher Baker and Patrick Delahunty are prosecuting the case.
Curiel and Palacios-Hernandez are scheduled to be sentenced by U.S. District Judge Lawrence J. O’Neill on March 9, 2015, and February 23, 2015, respectively. The maximum statutory penalty they face for conspiracy to commit mail fraud is 30 years in prison and a $1 million fine. Curiel additionally faces a maximum statutory penalty of five years in prison and a $250,000 fine for the bankruptcy fraud conviction. The actual sentences, however, 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.
This announcement was done in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. For more information on the task force, please visit www.StopFraud.gov.
Auburn Man Sentenced to 18 Months in Prison for Lying to Obtain Workers’ Compensation FundsRead the Press Release
SACRAMENTO, Calif. — Bruce Lee Cearlock, 79, of Auburn, was sentenced today by United States District Judge Troy L. Nunley to 18 months in prison for making false statements to obtain federal employee’s compensation, United States Attorney Benjamin B. Wagner announced. Cearlock was also ordered to pay restitution of over $73,000.
This case was the product of an investigation by the Department of Defense, Defense Criminal Investigative Service (DCIS), Sacramento; the Naval Criminal Investigative Service (NCIS); and the United States Department of Labor – Office of the Inspector General. Assistant United States Attorney Jean M. Hobler prosecuted the case.
According to court documents, Cearlock received workers’ compensation benefits under the Federal Employees’ Compensation Act (FECA) for an injury that he suffered as a civilian employee for the U.S. Navy on August 26, 1987. When filing the periodic reports required by the Office of Workers’ Compensation Program (OWCP) to justify continued payments, between 2006 and 2008, Cearlock stated under penalty of perjury that he was neither self-employed nor involved in “any business enterprise.”
However, from at least 1999 until 2011, Cearlock was involved in operating “Fuse,” a bar in San Francisco, and ran various businesses prior to Fuse dating back to 1987. In his role in operating Fuse, Cearlock hired and fired employees, made decisions on capital expenditures, and interacted with private citizens and public officials as the owner of Fuse. In addition, during this time period, Cearlock was the president and secretary of a privately held corporation, Alleycorp Inc., whose sole purpose was to own the Fuse nightclub. Shares in Alleycorp were split equally between Cearlock and his wife. On the basis of his statements to OWCP that he was not involved in any business enterprise, and his continuing statements that he was incapable of earning wages due to his 1987 injury, Cearlock continued to receive federal disability benefits.