Eastern District of California

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.

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.

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.

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.

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, 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.

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.

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.

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.

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.

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.

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.

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, 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.

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, 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.

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.

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.

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.

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.

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, 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, 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.

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.

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.

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.

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.

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.

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.

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.

SACRAMENTO, 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.

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.

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.

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.

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.

SACRAMENTO, Calif. — Keon Jamar Nunnelly, 30, of Sacramento, was sentenced today by United States District Judge John A. Mendez to 10 years and five months in prison, to be followed by a 10-year period of supervised release where he is required to register as a sex offender, for sex trafficking of a minor, United States Attorney Benjamin B. Wagner announced.

According to court documents, from January 13, 2013, until June 17, 2013, Nunnelly caused a 16-year-old girl to engage in commercial sex acts in Sacramento and Anaheim. He provided directions on when and where she should work, transported her to customers, and provided security. Nunnelly and two co-defendants rented hotel rooms to be used for prostitution and placed ads with the victim’s picture on the Internet.

This case was the product of an investigation by the Federal Bureau of Investigation’s Sacramento Child Exploitation Task Force, the Anaheim Police Department, and the Orange County District Attorney’s Office. The task force works to identify and recover minors involved in the commercial sex trade and to investigate and prosecute those who profit from that trade. Assistant United States Attorney Christiaan Highsmith prosecuted the case.

On August 12, 2014, Nunnelly pleaded guilty to sex trafficking of a minor by force fraud and coercion. Co-defendants Kia Moore, 30, and Sharon King, 31, pleaded guilty to concealing a felony and were sentenced earlier this year to time served.

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

SACRAMENTO, Calif. —Cresencio Ochoa-Tovali, 46, of Mexico, pleaded guilty today to assaulting a federal correctional officer, United States Attorney Benjamin B. Wagner announced.

According to court documents, on July 27, 2014, a fight broke out between inmates in the recreational yard at the Federal Bureau of Prisons Correctional Institution in Herlong, California. Ochoa-Tovali, an inmate, was in the recreation yard at that time. A correctional officer entered the yard in an attempt to control the situation and ordered the inmates to sit or crouch on the ground. All inmates complied, including Ochoa-Tovali, who was facing a small group of inmates approximately 10 to 15 yards away. The correctional officer heard Ochoa-Tovali shouting names at the small group of inmates and approached Ochoa-Tovali. Suddenly, Ochoa-Tovali jumped up from his crouching position and struck the officer’s face.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Christiaan Highsmith is prosecuting the case.

Ochoa-Tovali is scheduled to be sentenced by United States District Judge John A. Mendez on March 24, 2015. Ochoa-Tovali faces a maximum statutory penalty of eight 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.

FRESNO, Calif. – Miguel Marquez, 29, of Bakersfield, pleaded guilty today before U.S. District Judge Lawrence J. O’Neill to conspiring to distribute and possess with intent to distribute 4.5 kilograms of methamphetamine, United States Attorney Benjamin B. Wagner announced.

According to court documents, on October 22, 2014, agents arrested Luis Alfonso Mendivil Jr., 23, of Riverside, and Jonathen Leyva, 28, of Rialto after Mendivil and Leyva drove to Marquez’s residence from the Los Angeles area to deliver a shipment of crystal methamphetamine. Agents seized $30,630 from Mendivil and Leyva’s vehicle and approximately 2.6 kilograms of crystal methamphetamine and a firearm from inside Marquez’s home. At a nearby location, officers seized a stolen fully loaded machine pistol, approximately 1.9 kilograms of crystal methamphetamine and a scale. Marquez admitted that the seized methamphetamine, the stolen firearm, and drug paraphernalia were all his and that he possessed the methamphetamine with the intent to distribute to others.

Mendivil and Leyva both previously pleaded guilty to use of an interstate facility to aid racketeering. Earlier this month Leyva and Mendivil were each sentenced to five years in prison. All three defendants agreed to the criminal forfeiture of the $30,600 in seized currency as proceeds of their illegal drug activity.

Marquez is scheduled to be sentenced on March 9, 2015. Marquez faces a statutory penalty faces of not less than 10 years and up 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.

This case is the product of an investigation by the Kern County High Intensity Drug Task Force (HIDTA). Assistant United States Attorney Brian Delaney is prosecuting the case.

SACRAMENTO, Calif. — Orion Douglas Memmott, 75, formerly of Willows, was sentenced today by United States District Judge Kimberly J. Mueller to 18 months in prison for attempted tax evasion and subscribing to a false tax document, United States Attorney Benjamin B. Wagner announced.

According to testimony presented at trial, Memmott, a Stanford Law School graduate and tax attorney, stole hundreds of thousands of dollars from investors and law firm clients to spend on his own expenses, including failed day trading, travel, and personal trainers. Some of this money was removed from a client’s medical trust, leaving her destitute and homeless. Memmott concealed the embezzled money through the use of nominee accounts and false statements to investors, clients, and the IRS. Memmott also concealed his real estate holdings and rental income from IRS collection agents who were seeking to collect more than $650,000 in unpaid taxes for tax years 1993-1999.

“For years, Mr. Memmott acted as if his law license placed him beyond the reach of the law,” said U.S. Attorney Wagner. “Today, in sentencing Mr. Memmott to prison, the Court made clear that attorneys who commit crimes should not expect special treatment.”

“Mr. Memmott misused his position and defrauded friends, clients and the government out of hundreds of thousands of dollars,” said IRS-Criminal Investigation Acting Special Agent in Charge Thomas McMahon. “Attorneys are trusted with the confidence of others and are expected to uphold the law and pursue justice with integrity. Those who intentionally cheat by not paying their taxes should know that they will not go undetected and will be held accountable.”

This case was the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorneys Michael D. Anderson and Kevin Khasigian prosecuted the case.

FRESNO, Calif. — Chad Allen Riffle, 22, of Citrus Springs, Florida, pleaded guilty today to one count of conspiring to structure cash transactions, United States Attorney Benjamin B. Wagner announced.

According to the plea agreement and 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 the cash deposits in amounts of $10,000 or less to attempt to prevent Currency Transaction Reports from being filed by the banks on his cash deposits. Currency Transaction Reports are prepared by banks for any transaction involving more than $10,000 in cash. These reports are filed with the Department of Treasury and are made available to law enforcement.

Riffle also waived his interest in numerous assets seized by law enforcement, including a Land Rover, two Bentleys, two Mercedes Benzes, and a 30-foot motorboat.

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.

Riffle is scheduled to be sentenced by United States District Judge Lawrence J. O'Neill on March 9, 2015. The maximum statutory penalty for conspiracy to structure is 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.

FRESNO, Calif. — Baltazar Rodriguez was sentenced to 46 months in prison and Jose Cisneros Garcia was sentenced to eight months in prison today for their involvement in separate large-scale marijuana cultivation operations, U.S. Attorney Benjamin B. Wagner announced.

Sentencing in Terra Bella Cultivation Operation (1:12-cr-318 LJO)

Following his guilty plea in October, Baltazar Rodriguez, 45, of Terra Bella, was sentenced to three years and 10 months in prison for conspiring to cultivate, distribute and possess with intent to distribute marijuana grown on an agricultural parcel in Terra Bella. According to court records, law enforcement officers seized 1,313 marijuana plants from 39.6 acres of farm land in Terra Bella where Rodriguez resided with his family. Inside Rodriguez’s residence, officers found a loaded, unregistered revolver in Baltazar Rodriguez’s bedroom, a digital scale commonly used to weigh controlled substances, and documents showing wire transfers of cash to Mexico.

Rodriguez; his son, Jose Guadalupe Rodriguez, 20; Carlos Adan Lupian-Lua, 26; Jose Guadalupe Zavala-Ramos, 34; Juan Carlos Perez-Gonzales, 45, all of Michoacàn, Mexico; and Hector Quintero-Mercado, 36, of Jalisco, Mexico; were originally charged with narcotics and immigration offenses and entered guilty pleas. Baltazar Rodriguez was the last of these defendants to be sentenced. A defendant in a related case, Martin Rojas-Cuamba, 46, of Escondido, also previously pleaded guilty in a separate case to smuggling bulk cash derived from the Terra Bella operation. Rojas-Cuamba’s sentencing is set for January 20, 2015. Upon completion of his prison sentence, Baltazar Rodriguez is subject to deportation to Mexico.

This case was the product of an investigation by the U.S. Forest Service, the U.S. Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the sheriff’s offices of Tulare, Kern, San Luis Obispo, and Ventura Counties, and the Escondido Police Department.

Sentencing in Modesto Cultivation Operation (1:11-cr-339 AWI)

Jose Cisneros Garcia, (Cisneros), 55, of Modesto, was sentenced to eight months in prison for smuggling bulk cash derived from a marijuana cultivation operation on two residential parcels in Modesto that Cisneros owned. In sentencing Cisneros, Senior U.S. District Judge Anthony W. Ishii considered evidence that the cultivation operation involved 549 marijuana plants weighing over 3,000 pounds. Agents of the DEA and Stanislaus Drug Enforcement Agency, a multi-agency drug task force in Modesto, conducted the investigation and seized not only marijuana but an assault weapon with 124 rounds of ammunition from an open detached garage at one of the two residential properties.

Assistant United States Attorney Karen Escobar is handling the above prosecutions.

FRESNO, Calif. —Donald Lancer, 47, of Saskatchewan, Canada, pleaded guilty today to conspiracy to distribute and possess to distribute cocaine, United States Attorney Benjamin B. Wagner announced.

According to court documents, on December 17, 2013, Heather Lynn Necheff, 47, of Regina, Saskatchewan Canada, was stopped for a traffic violation by a California Highway Patrol officer in Kern County in the Buttonwillow area. While conducting a search of her vehicle, officers found approximately 20 kilograms of cocaine wrapped in duct taped packages inside a suitcase. Necheff said she was transporting the suitcase from Los Angeles to Seattle to be given to Donald Lancer. Necheff agreed to assist law enforcement by continuing on to Seattle to deliver the suitcase. To eliminate the risk of losing the suspected drugs, agents replaced them with 20 kilograms of “sham” cocaine. On December 19, 2013, under agents’ supervision, Necheff delivered the suitcase to Lancer. Lancer was subsequently stopped while driving a semi-truck in Seattle, Washington. Officers found the suitcase delivered by Necheff. Lancer admitted that he believed it contained narcotics and that he received it from another person who transported it to him from Southern California.

According to his plea agreement, Lancer also admitted that he had earlier agreed with an individual in Canada to become a commercial truck driver and to comingle narcotics within legitimate commercial loads. Lancer stated that on this particular trip he was paid by individual in Canada to pick up narcotics in Seattle and drive them into Canada. Lancer said this was the third time that he was to transport what he knew to be narcotics into Canada from the United States and that although he never opened the items that he commingled with his legitimate loads, he knew the packages contained narcotics.

This case is the product of an investigation by the Drug Enforcement Administration and the California Highway Patrol. Assistant United States Attorney Brian K. Delaney is prosecuting the case.

Necheff pleaded guilty on April 29, 2014, to the conspiracy and on July 21, 2014, was sentenced to 13 months in prison.

Lancer is scheduled to be sentenced by United States District Judge Lawrence J. O'Neill on March 2, 2015. Lancer faces a maximum statutory penalty of 20 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — Vincent Deleon, 33, of Bakersfield, pleaded guilty today before U.S. District Judge Lawrence J. O’Neill to being a previously convicted felon in possession of a firearm, United States Attorney Benjamin B. Wagner announced.

On November 6, 2013, the FBI’s Violent Crime Task Force received information that Deleon, who was wanted on two Kern County felony warrants, was in an apartment on Monterey Street in Bakersfield. Task force agents set up surveillance and when Deleon came out of the residence, they identified themselves and told him to stop. Deleon immediately fled from the agents and in his flight, threw a Smith & Wesson 9 mm pistol over a fence. Agents were able to apprehend Deleon and also recover the firearm from the adjacent property.

This case is the product of a joint investigation by members of the Violent Crime Task Force, which include the Kern County Sheriff’s Department, the Kern County Probation Office and the FBI. Assistant United States Attorney Brian K. Delaney is prosecuting the case.

Deleon is scheduled to be sentenced by Judge O’Neill on March 9, 2015. He faces a maximum statutory penalty of 10 years 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.

SACRAMENTO, Calif. — After a three–day trial, a jury today found Deshawn A. Ray, 42, of Vallejo, guilty of one count of conspiracy to commit bank fraud, two counts of bank fraud, and one count of aggravated identity theft, United States Attorney Benjamin B. Wagner announced. The trial was held before Chief United States District Judge Morrison C. England Jr.

According to evidence presented at trial, from March 2008 until July 2010, Ray and his primary co-conspirator Reginald L. Thomas, 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 is 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.

After the verdict, Ray was taken into custody by the United States Marshals Service.

Ray is scheduled to be sentenced by Judge England on March 12, 2015. Ray faces a maximum statutory penalty of 30 years in prison and a $1 million fine on each of the bank fraud charges, and a mandatory two-year consecutive prison term for the conviction for aggravated identity theft. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

Co-defendant Damian Edgerson, 39, of Oakland, pleaded guilty to bank fraud and was sentenced to 18 months in prison. Reginald Thomas, 39, of Richmond, pleaded guilty to conspiracy to commit bank fraud and aggravated identity theft and is scheduled to be sentenced on December 18, 2014. He faces a maximum statutory penalty of 30 years in prison, a $1 million fine, and a mandatory two-year consecutive sentence for aggravated identity theft. Tiffany Tung, 26, of Oakland pleaded guilty to accepting a bribe as a bank employee. Tung is scheduled for a status hearing on her sentencing on December 18, 2014. She faces a maximum statutory penalty of one year in prison and a $100,000 fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — The Regents of the University of California agreed to pay the United States $499,700 to resolve civil allegations under the False Claims Act that the University of California at Davis submitted false and misleading statements in connection with obtaining grants from the Department of Energy (DOE) and the National Science Foundation (NSF), United States Attorney Benjamin B. Wagner announced today.

This settlement resolves claims that U.C. Davis: (1) failed to disclose the duplicative and overlapping nature of the university’s research associated with a DOE grant, an NSF grant, and a previous federal grant; (2) failed to accurately describe the research that had been funded by the NSF grant and the previous federal grant; (3) failed to disclose that the NSF grant and the previous federal grant were funding or had funded certain specific research tasks being funded with DOE grant monies; and (4) in progress reports and renewal applications submitted to the DOE, listed accomplishments achieved under the NSF grant and the previous federal grant, along with reporting accomplishments achieved under the DOE grant. The United States contends that these false and misleading statements caused the DOE and NSF to approve duplicative grant funding that these agencies would not have otherwise been awarded.

As part of the settlement, U.C. Davis has also agreed to take steps to prevent these events from reoccurring by supplementing its current research training program for undergraduate, graduate, and post-doctorate students with an hour-long module covering time and effort reporting, reasonableness of costs and other aspects of federal grants for a three-year period beginning in January.

“This settlement sends a clear message that recipients of federally funded grants must strictly adhere to the regulations applicable to those grants and fully and fairly disclose the information called for under these grants,” stated Benjamin B. Wagner, United States Attorney for the Eastern District of California. “Recipients who fail to do so risk significant financial consequences.”

"The Department of Energy aims to fund innovative and transformative scientific research, but not research simultaneously funded by other Federal agencies,” said Gregory H. Friedman, Inspector General, U.S. Department of Energy. “This civil settlement should help deter such misconduct. Our Special Agents will tirelessly investigate any allegations of abuse that affect the integrity of the grant underwriting process."

“When more than one federal agency funds the same research, the integrity of the grant making process is undermined and scarce research dollars are diverted from other potentially valuable innovation,” said Allison Lerner, Inspector General, National Science Foundation. “This settlement agreement sends a strong signal that failure to disclose duplicative funding will not be tolerated.”

This case was the result of an investigation by the DOE Office of the Inspector General, and the NSF Office of the Inspector General, along with the United States Attorney’s Office for the Eastern District of California. Assistant United States Attorney Catherine Swann handled the matter for the United States. The claims settled by this agreement are allegations only, and there has been no determination of liability.

SACRAMENTO, Calif. —Cedric Sewell, 51, of Stockton, pleaded guilty today to possession with intent to distribute heroin, possession with intent to distribute cocaine, possession of a firearm in furtherance of a drug trafficking offense, and being a felon in possession of a firearm, United States Attorney Benjamin B. Wagner announced.

According to court documents, on March 5, 2014, law enforcement officers conducted a probation search of Cedric Sewell’s residence in Stockton. Agents found a .38‑caliber revolver that was fully loaded with live rounds. The kitchen had been converted to a heroin manufacturing operation, including strainers, digital scales, cutting agents, and hundreds of baggies. Agents also found five kilograms of heroin, 500 grams of cocaine, a money counter, and other items used in drug manufacturing and distribution. Several other firearms (including an AR-15 assault rifle), a cache of ammunition, and approximately $67,000 was also found.

This case is the product of an investigation by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Alameda County Narcotics Taskforce, the San Bernardino Probation Department, and the San Joaquin District Attorney’s Office. Assistant United States Attorney Olusere Olowoyeye is prosecuting the case.

Sewell is scheduled to be sentenced by United States District Judge Troy L. Nunley on April 30, 2015. Sewell faces a maximum statutory penalty of life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. – Anthony Merrell Tyler, 34, of Yuba City, was sentenced today by U.S. District Judge John A. Mendez to serve 46 months in prison for violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act. The crime involved a racially motivated attack by Tyler and two co-defendants, Billy Hammett, 30, and Perry Jackson, 29, on a white man and an African-American woman in Marysville in 2011. In addition to his term of incarceration, Tyler was ordered to serve three years of supervised release upon his release from prison and to pay $175 in restitution.

According to documents filed with the court, around 10:45 p.m. on April 18, 2011, a white man and an African-American woman parked their car at a convenience store in Marysville. Shortly afterward, the three defendants attacked the man and woman because of their race. Jackson punched him twice in the head through the open passenger window. At the same time, Hammett opened the driver-side door and kicked the woman in the chest. Seconds later, Tyler smashed the car’s windshield with a crowbar, sending shattered glass into the passenger compartment. As the attack continued, the woman managed to take refuge inside the convenience store, and the man struggled to get away. All three assailants then descended upon the male victim and began attacking him in the parking lot. He sustained abrasions on his right forearm and knees, while the woman suffered bruising to her chest. None of the defendants knew the victims.

In today’s hearing, and during Hammett and Jackson’s proceedings, Judge Mendez considered the defendants’ backgrounds and criminal histories. Tyler has the words “white pride” tattooed down the backs of his arms and a swastika on his left upper arm. He has previously acknowledged being a member of the Yuba County Peckerwoods, a local white supremacist group. Hammett, who has a tattoo of the words “white power” across his abdomen, was sentenced on March 25, 2014, to 87 months in prison. He was previously convicted for the unprovoked assault on a 72-year-old African-American man. Jackson, who has the words “white power” tattooed in block letters down his shins, was sentenced on April 29, 2014, to 70 months in prison. Tyler entered his guilty plea on March 11, 2014.

“These three defendants targeted the victims because of their race,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “This type of attack causes harm not only to the immediate victims, but tears at the fabric of our communities and society itself. The department will continue to vigorously prosecute such acts of racial violence.”

“Racially motivated violence not only threatens the harmony of our diverse communities, it undermines the principle of equality under law, which is a foundation of our society,” said U.S. Attorney Benjamin B. Wagner for the Eastern District of California. “For these reasons, prosecuting hate crimes will continue to be one of our highest priorities.”

“No person should be victimized by another, let alone suffer an unprovoked, violent attack at the hands of a group motivated solely by hatred and prejudice,”  said Special Agent in Charge Monica M. Miller of the Sacramento FBI.  “Such bias-motivated crimes should be an unfortunate mark of the past; however, the FBI will thoroughly investigate such allegations to ensure justice is served.”

This case was investigated by the FBI, with assistance from the Yuba County Sheriff’s Office and the Yuba County District Attorney’s Office. The case was prosecuted by U.S. Attorney Wagner and Trial Attorney Chiraag Bains of the Justice Department’s Civil Rights Division.

FRESNO, Calif. — Miguel Leontapia, 33, and Gilberto Chavez Leon, age 29, both Delhi residents, pleaded guilty Monday to conduct relating to a scheme to send methamphetamine to Hawaii, United States Attorney Benjamin B. Wagner announced. Leontapia pleaded guilty to possession of methamphetamine with the intent to distribute and Leon pled guilty to conspiracy to bulk smuggle cash.

According to court documents, in August 2012, Leontapia and his co-defendants obtained approximately three pounds of methamphetamine that they attempted to ship to Hawaii. Instead, law enforcement seized it. Leon admitted that in August 2012, he and a co‑conspirator traveled from Stanislaus County to Hawaii where they obtained approximately $67,000 cash. Leon and the other person then attempted to take that cash, concealed on their persons and in their luggage, onto a flight to Oakland from Honolulu.

This case is 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 is prosecuting the case.

This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.

Leontapia and Leon are scheduled to be sentenced by United States District Judge Lawrence J. O'Neill on March 2, 2015. Leontapia faces a maximum statutory penalty of life in prison and a $10 million fine. Leon faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — United States District Judge Lawrence J. O’Neill today sentenced Bradley Allen Vaine, 28, of Fresno, to 25 years in prison, to be followed by a lifetime term of supervised release, for receiving and distributing child pornography, United States Attorney Benjamin B. Wagner announced.

According to the plea agreement, on October 25 and 27, 2012, Vaine received and distributed images of child pornography over the Internet. He transmitted 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 has been detained as a danger to the community and a flight risk since his arrest on November 6, 2012.

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

“Individuals involved in receiving and distributing child pornography cause severe and lasting damage to their vulnerable victims,” said Michael J. Toms, the acting assistant special agent in charge who oversees HSI Fresno.  “Fortunately, the lengthy sentence imposed today virtually assures that no additional children will be harmed by this defendant.”

This case was brought as part of Operation Sunflower, an international enforcement action, which ran from November 1 through December 7, 2012, spearheaded by HSI and aimed at rescuing victims and targeting individuals who own, trade, and produce child pornography. Operation Sunflower commemorated the one-year anniversary of a Kansas preteen victim who was located based upon a sunflower-shaped highway sign in the background of a picture. The prosecution was also 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

FRESNO, Calif. — United States District Judge Lawrence J. O’Neill today sentenced Kevin Ray Adams, 25, of Riverbank, to eight years and one month in prison, to be followed by 15 years of supervised release, for receiving and distributing child pornography, United States Attorney Benjamin B. Wagner announced.

According to the plea agreement, between August 3, 2012, and February 9, 2014, Adams received and distributed images of child pornography over the Internet. The defendant transmitted 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 has been detained as a danger to the community and a flight risk since his initial court appearance on July 7, 2014.

The case was the product of an investigation by the Federal Bureau of Investigation with assistance from the Riverbank and Ceres Police Departments. Assistant United States Attorney David Gappa 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.