Eastern District of California
Press releases recorded for this federal judicial district.
Drug Transporter Arrested in Kern County SentencedRead the Press Release
FRESNO, Calif. — Enrique Reynosa, 37, was sentenced today to four years and nine months in prison, to be followed by three years of supervised release, for possessing methamphetamine and cocaine with intent to distribute, United States Attorney Benjamin B. Wagner announced. Senior U.S. District Judge Anthony W. Ishii also ordered the forfeiture of the Silverado pickup truck that Reynosa used to transport the drugs and $1,510 in cash.
According to court documents, on January 15, 2013, a CHP officer stopped Reynosa on Highway 99, south of State Route 119, for a traffic violation. The officer asked for and received verbal and written consent from Reynosa to search the vehicle. During the search, the officer found six pounds of methamphetamine, eight pounds of cocaine inside a speaker box. A drug detecting canine alerted to Reynosa’s right front pocket and led to the discovery of the cash.
This case was the product of an investigation by the U.S. Drug Enforcement Administration and California Highway Patrol. Assistant United States Attorney Karen Escobar prosecuted the case.
Crisp & Cole Co-defendant Julie Farmer Sentenced to Three Years in PrisonRead the Press Release
FRESNO, Calif. — United States District Judge Lawrence J. O’Neill sentenced Julie Dianne Farmer, 46, of Bakersfield, today to three years in prison, to be followed by five years of supervised release, for her involvement in an extensive mortgage fraud scheme that ran from January 2004 to September 2007, United States Attorney Benjamin B. Wagner announced. Judge O’Neill ordered her to pay $2,914,331 in restitution and to forfeit $15 million. Judge O’Neill also found that Farmer obstructed justice by testifying falsely at trial, and that she supervised other participants in the conspiracy.
On April 22, 2014, a federal jury found Farmer guilty of conspiracy to commit mail fraud, wire fraud and bank fraud, and two counts each of mail fraud and wire fraud.
“Today’s sentencing is the result of a culture of greed and opportunism that saturated a Bakersfield real estate company,” said U.S. Attorney Wagner. “The owners of the company have been held accountable with lengthy prison sentences, but they could not have accomplished their crimes without the knowing and willing help of many within their organization. The fraud committed at Crisp & Cole and by other professionals prosecuted in our district made a bad financial climate even worse for our communities. The U.S. Attorney’s Office remains committed to uncovering and prosecuting fraud and abuse in all facets of the housing market.”
“As we discovered during the course of a multi-year investigation, Farmer, the chief operations officer of Crisp & Cole, conspired with David Crisp, Carl Cole, and others to intentionally defraud financial institutions of money and property for personal enrichment,” said Supervisory Special Agent Jose Moreno of the Sacramento FBI’s Bakersfield resident agency. “Such crimes are not victimless. The conspirators’ greed ultimately caused irreparable damage to the Bakersfield community that sentences or restitution cannot fully repair.”
According to the evidence at trial, Farmer was Crisp & Cole Real Estate’s (CCRE) chief operations officer and managed CCRE’s business operations and business accounts. Together with co-defendants David Crisp and Carl Cole, Farmer oversaw and managed a conspiracy to defraud residential lenders. They used straw purchasers to acquire properties at inflated prices with funds borrowed from lenders, often using 100 percent financing and based on false and fraudulent loan applications. The conspirators frequently resold the properties from one straw buyer to another, each time at an inflated, higher price in order to extract the purported increased “equity” from the property for their benefit. Ultimately, most of the properties were foreclosed upon after the defendants failed to make the mortgage payments when due.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Kirk Sherriff, Henry Carbajal III, and Christopher Baker are prosecuting the case.
Farmer was the only defendant who took her case to trial. Her co-defendants pleaded guilty for their roles in the scheme, and most have been sentenced. Carl Cole and David Crisp were each sentenced to 17 years and seven months in prison. Caleb Cole was sentenced to five months in prison, and Jennifer Crisp was sentenced to five years’ probation. Jayson Peter Costa was sentenced to six and a half years in prison. Michael Angelo Munoz received a sentence of two years in prison, and Jeriel Salinas received a 19-month sentence. Sneha Mohammadi is scheduled to be sentenced November 14, 2014. Robinson Nguyen has completed his 27-month sentence.
Five related cases were brought in 2009 and 2010 against five defendants who pleaded guilty to charges relating to this scheme. Jerald Allen Teixeira is scheduled to be sentenced on February 9, 2015. The sentences for the other defendants are as follows: Megan Balod – 36 months’ probation; Christopher Lance Stovall – one year in prison; Kevin Patrick Sluga – 20 months in prison; and Leslie Sluga – three years’ probation.
This case was investigated and prosecuted in coordination 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 is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. For more information on the task force, please visit www.StopFraud.gov.
Washington State Man Sentenced to 15 Months in Prison for Failing to Register as A Sex OffenderRead the Press Release
SACRAMENTO, Calif. — Deveron Lyons, 24, of Rodeo, was sentenced today by United States District Judge Troy L. Nunley to 15 months in prison for failing to register as a sex offender, United States Attorney Benjamin B. Wagner announced.
According to court documents, as of June 2007, under the Sex Offender Registration and Notification Act (SORNA), Lyons was required to register as a sex offender in Washington State and to register as a sex offender whenever he moved to a new state. In late 2012, Lyons moved to California, but he did not register as a sex offender with California authorities. On February 1, 2013, Lyons encountered a Napa County Sheriff’s Deputy, who told Lyons to register as a sex offender. Lyons still did not register as a sex offender in California. For a time, he lived in Vallejo, California. More than one year later, on March 12, 2014, Lyons was indicted for failing to register as a sex offender. One week later, Lyons registered as a sex offender with California authorities.
This case was the product of an investigation by the United States Marshals Service. Assistant United States Attorney Christiaan Highsmith prosecuted the case.Sacramento Man Sentenced to 10 Years in Prison for Enticement of a MinorRead the Press Release
SACRAMENTO, Calif. — Nicholas Perry, 37, of Sacramento, was sentenced today by United States District Judge Morrison C. England Jr. to 10 years in prison, to be followed by a lifetime of supervised release, for attempted enticement of a minor, United States Attorney Benjamin B. Wagner announced.
According to court documents, in 2012, an undercover detective with the Sacramento Internet Crimes Against Children (ICAC) Task Force began communicating with Perry and offered to introduce Perry to a minor girl. Perry agreed to meet a fictional father and daughter in order to have sex with the daughter. When Perry arrived at the meeting place, he was arrested.
This case was investigated by the Sacramento Internet Crimes Against Children (ICAC) Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant United States Attorney Kyle Reardon prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Mammoth Lakes Man Sentenced to over 15 Years in Prison for Enticement of A MinorRead the Press Release
SACRAMENTO, Calif. — Gene Wayne Harris, 42, of Mammoth Lakes, was sentenced today by United States District Judge Morrison C. England Jr. to 15 years, and eight months in prison, to be followed by a lifetime of supervised release, for attempted enticement of a minor, United States Attorney Benjamin B. Wagner announced.
According to court documents, on March 1, 2013, a woman from Mammoth Lakes received an unsolicited Facebook friend request from Harris. Before accepting the request, she looked up Harris and learned that he was a registered sex offender, having previously been convicted in Inyo County of sexual battery. At law enforcement’s direction, she responded to Harris through Facebook and an Internet-based text messaging service, and told him that she was only 14 years old. Harris acknowledged the statement that she was 14, commenting that her Facebook post says she is older. Harris also told her he could get in trouble if anyone found out they were talking.
Law enforcement assumed control of the woman’s account. During this time, Harris’s communications turned sexual, including requests by Harris for sexually explicit pictures of her. Plans were made for a meeting and on March 8, 2013, Harris checked in to a Mammoth motel and waited for the purported 14-year-old girl to arrive. While waiting, Harris communicated through text with law enforcement (posing as the girl), texting at one point that he could “get in trouble for what I am about to do, but it is worth it.” Law enforcement sent Harris a text while he was at the motel asking him to get something to drink and a candy bar. Harris was arrested while walking back to the motel from a convenience store with the drink and candy bar. Located in the motel room were condoms and alcohol.
At sentencing, Judge England said that the sentence imposed would “serve to protect the public from future conduct” by the defendant, and “be a deterrent for others who engage in this type of conduct.”
This case was the product of an investigation by the Federal Bureau of Investigation, the Mono County District Attorney’s Office, and the Mammoth Lakes Police Department. Assistance was also provided by the Mono County Sheriff’s Department. Assistant United States Attorney Kyle Reardon prosecuted the case.Mono County Woman Sentenced for Embezzlement from Bridgeport BankRead the Press Release
SACRAMENTO, Calif. — Roxanna Foley, 53, of Bridgeport, was sentenced today by United States District Judge Kimberly J. Mueller to 30 months in prison for embezzlement by a bank employee and ordered to pay $315,000 in restitution, United States Attorney Benjamin B. Wagner announced.
Foley worked at Eastern Sierra Community Bank (ECSB) in Bridgeport. According to the plea agreement, starting in November 2011, bank officials noticed discrepancies with the Bridgeport branch of ESCB. On March 19, 2012, managers from the bank made an unannounced visit to Foley’s branch to investigate a suspicious $90,000 transaction. After a review of the local bank’s records, officials identified $90,000 in misplaced funds, as well as $6,000 missing from Foley’s teller drawer.
During the surprise inspection, Foley admitted to taking over $300,000 from the bank. A later review of the ECSB’s accounts uncovered $322,000 in missing funds, as well as multiple electronic transactions moving money between accounts made by Foley. Official also learned that Foley had been circumventing normal banking procedures at ECSB, including single-handedly taking over all counting and auditing of ECSB accounts when dual-counting procedures were required.
At sentencing, Judge Mueller found that the loss in this case was “significant,” and that Foley “succumbed to the temptation” of having access to such funds. In sentencing Foley, Judge Mueller sought to punish Foley for her conduct and stated that a “period of time in a federal facility will serve as a deterrent” to Foley and others.
This case was the product of an investigation by the Mono County District Attorney’s Office, the Mono County Sheriff’s Office, and the Federal Bureau of Investigation. Assistant United States Attorney Kyle Reardon prosecuted the case.Fresno Fugitive Apprehended by Marshals, Faces Tax Fraud ChargesRead the Press Release
FRESNO, Calif. — Gaylene Lynette Bolanos, 56, of Fresno, was apprehended Tuesday by the United States Marshals Service in Fresno, United States Attorney Benjamin B. Wagner announced.
Bolanos was indicted by a federal grand jury in September 2013 with seven other defendants for claiming more than $32 million in fraudulent tax refunds. Throughout the court proceedings, Bolanos has filed documents with the court claiming that she does not accept the authority of the United States government.
After her arraignment in October 2013, the court ordered Bolanos released from custody on a $5,000 bond and ordered to report on a regular basis to the Pretrial Services Office. In August 2014, Bolanos failed to report to Pretrial Services. She was ordered to appear for a bail review hearing on August 28, 2014, but failed to appear and did not respond to Pretrial Services’ attempts to contact her. As a result, the court issued a warrant for her arrest. After searching for Bolanos for several weeks, the United States Marshals Service was able to locate and arrest Bolanos in Fresno.
Bolanos appeared before United States Magistrate Judge Barbara A. McAuliffe today and was ordered detained as a flight risk.
This case is the product of an investigation by the Internal Revenue Service – Criminal Investigation. Assistant United States Attorneys Grant B. Rabenn and Megan A. S. Richards are prosecuting the case.
The charges against Bolanos are only allegations; she is presumed innocent until and unless proven guilty beyond a reasonable doubt. If convicted, Bolanos faces 10 years in prison for the conspiracy charge and five years in prison on each false claims charge. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Marysville Man Sentenced to over 14 Years in Prison and Tehama Man Pleads GuiltyRead the Press Release
SACRAMENTO, Calif. — John Franklin Bye, 45, of Marysville, was sentenced Tuesday by United States District Judge John A. Mendez to 14 years and seven months in prison for distribution of child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, in 2013, the Nevada County Sheriff’s Office received a tip from the National Center for Missing and Exploited Children (NCMEC) that Bye had been trading images of child pornography through email. Law enforcement obtained a state search warrant for the contents of Bye’s emails and found multiple attachments of minors engaged in sexually explicit conduct.
This case was the product of an investigation by the FBI and the Sacramento Internet Crimes Against Children (ICAC) Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking.
Tehama Man Pleads Guilty
Robert Anthony Bonnot, 54, of Gerber, pleaded guilty Tuesday to production of child pornography. According to court documents, in 2010, on at least six separate occasions, Bonnot produced child pornography of a minor child and broadcast it through his web camera to New Zealand. In January 2011, New Zealand officials notified the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) that videos of Bonnot’s activities had been discovered. A forensic examination of his computer identified 426 images and five videos of child pornography. An additional 172 images of child pornography were found on a CD created by Bonnot.
Bonnot has been in custody in the Sacramento County Jail since March 2011. He is scheduled to be sentenced by United States District Judge John A. Mendez on January 20, 2015. Bonnot faces a statutory penalty of 15 to 30 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney Kyle Reardon prosecuted both cases.
These cases were 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.
Jury Finds Dixon Man Guilty of Mortgage Fraud After TrialRead the Press Release
SACRAMENTO, Calif. — A federal jury today found Hubert Rotteveel, 52, of Dixon, guilty of one count of mail fraud affecting a financial institution relating to his role in a mortgage fraud scheme, United States Attorney Benjamin B. Wagner announced.
According to evidence produced at trial, Rotteveel acted as a real estate salesperson for 13 properties in Dixon that were purchased by just two buyers. Rotteveel inflated the values of the properties and worked with loan officers to provide false information to lenders about the income and liabilities of the buyers to induce the lenders to fund loans for the properties. Rotteveel made the down payments on the homes, including two that he owned and sold, and got that money (and usually more) back from the lenders at closing. For most of the transactions, when the sales closed, the escrow officer distributed funds to a bank account in the name of Windmill Properties, a company owned by Rotteveel, without disclosing these payments to the lenders. All 13 properties were used as rentals, with Rotteveel collecting the rents through Windmill Properties. Rotteveel netted over $300,000 through the sales in just seven months. According to the indictment, the lenders lost more than $3 million when all 13 properties underwent foreclosure.
Rotteveel’s conviction marked the third mortgage fraud conviction following trial in the past four weeks in the Eastern District. Anna Kuzmenko was convicted following a jury trial on August 29, 2014, and Alan David Tikal was convicted following a bench trial on September 15, 2014.
U.S. Attorney Wagner stated: “Hubert Rotteveel manipulated every aspect of the real estate process for his personal gain. As so often occurs in these cases, the result was losses to the financial institutions and neighborhoods burdened with foreclosed properties. We are grateful for the diligence, professionalism and cooperation that we have received from the FBI, the IRS, and all of our law enforcement partners in prosecuting these cases.”
“The defendant induced lenders to fund loans under false pretenses and then diverted a portion of the loan proceeds to himself,” said José M. Martínez, Special Agent in Charge, IRS-Criminal Investigation. “Each of the homes purchased during the course of the scheme was foreclosed upon. The impact of this type of fraud on homeowners and communities is devastating. IRS-CI is committed to pursuing those who line their pockets with profits from these schemes.”
“Rotteveel’s personal greed replaced the integrity maintained by licensed real estate agents. He intentionally defrauded the mortgage industry, artificially inflating home prices and facilitating loans that were destined for bankruptcy for personal gain,” said Assistant Special Agent in Charge John Gliatta of the Sacramento FBI. “Our FBI agents are committed to working with our investigative partners, such as the IRS and others, to identify and investigate individuals who erroneously believe such schemes have no victims and have no effect on the region’s economy.”
This case is the product of an investigation by the Internal Revenue Service - Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorneys Jean M. Hobler and Justin L. Lee are prosecuting the case.
Rotteveel is set to be sentenced before Senior United States District Judge William B. Shubb on December 15, 2014, at 9:30 a.m. Rotteveel faces a maximum statutory penalty of 30 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.
Previously Deported Mexican National Pleads Guilty to Aggravated ID Theft and Drug and Firearms OffensesRead the Press Release
SACRAMENTO, Calif. — Eliecer Reyes Huerta, 31, a Mexican national residing in Vallejo, pleaded guilty today to possessing methamphetamine with intent to distribute, unlawfully possessing a firearm, and aggravated identity theft arising from false statements he made in an application for a U.S. passport, United States Attorney Benjamin B. Wagner and U.S. Department of State, Diplomatic Security Service Special Agent-In-Charge David Zebley announced.
According to court documents, Huerta is a removable alien who was previously removed from the United States in 2006 and lacks lawful immigration status to be in the United States.
On July 30, 2012, Huerta submitted an application for a U.S. passport to a passport acceptance officer in Vallejo. In the application, Huerta provided a false name belonging to a real person, a false birthdate, and a false birthplace in Puerto Rico. Huerta presented a birth certificate issued for the ID theft victim and a California driver’s license bearing Huerta’s photograph and the victim’s name and birthdate.
On January 9, 2014, law enforcement agents executed search warrants at Huerta’s residence in Vallejo that he had used as his for his 2012 passport application and his California driver’s license.
During the search of the residence, agents found baggies containing methamphetamine, cocaine, and marijuana; two digital scales and substances that may be used in the manufacture of controlled substances; a respirator/breathing device, miscellaneous supplies such as plastic bags, rubber bands, rubber gloves, sheets of paper, and a notebook consisting of “pay-owe” sheets or ledgers. In Huerta’s bedroom closet, agents found a 9 mm semi‑automatic Sig Sauer Model P226 handgun. Next to the firearm was a Sig Sauer handgun magazine or clip loaded with seven rounds of 9 mm ammunition. There were two children living in the home.
This case is the product of an investigation by the U.S. State Department’s Diplomatic Security Service with assistance from the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and California Department of Motor Vehicles. Assistant United States Attorney Nirav Desai is prosecuting the case.
Huerta remains in custody awaiting sentencing. He is scheduled to be sentenced by Judge Burrell on December 12, 2014. Huerta faces the following possible maximum sentences: for aggravated identity theft — two years and a $250,000 fine; for the methamphetamine-related offense — five to 40 years in prison and a $5 million fine; for the firearms offense — 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Foreign National Indicted for Possessing Firearm and Growing Marijuana in Mendocino National ForesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment today against Ivan Espinoza Villafana, 24, of Mexico, charging him with conspiracy to manufacture marijuana, manufacture of marijuana, possession of a firearm by an illegal alien, and depredation of public lands and resources, United States Attorney Benjamin B. Wagner announced.
According to court documents, on August 19, 2014, law enforcement officers entered a marijuana cultivation site near Ice Springs in the Mendocino National Forest in Glenn County. Villafana was arrested at the site and had a Smith & Wesson revolver in his possession. Officers also found a rifle in the camp area of the site. Significant natural resource damage was observed at the site. Vegetation and trees had been cut and removed to improve growing conditions for the marijuana plants, water was diverted from a nearby stream to water the plants, and fertilizers and pesticides were found at the site which, based on the terrain, would likely have drained into waterways in the National Forest.
This case is the product of an investigation by the U.S. Forest Service, the Glenn County Sheriff’s Office, and the California Department of Fish and Game. Assistant United States Attorney Christiaan Highsmith is prosecuting the case.
If convicted, Villafana faces a maximum statutory penalty of 20 years in prison and a $1 million fine for the conspiracy and marijuana manufacturing charges, and 10 years in prison and a $250,000 fine for the other charges. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Federal Inmate Indicted for Assaulting Correctional OfficerRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a single-count indictment today against Mexican national Cresencio Ochoa-Tovali, 46, charging him with assaulting a federal correctional officer, United States Attorney Benjamin B. Wagner announced.
According to court documents, on July 27, 2014, Ochoa-Tovali, an inmate at the Federal Correctional Institution in Herlong, California, was walking in the recreation yard with a group of inmates when a fight broke out in a different part of the facility. After being alerted to the fight, a correctional officer ordered the group of inmates, including Ochoa‑Tovali, to sit on the ground. The inmates complied. The correctional officer approached Ochoa-Tovali, who suddenly stood up and struck the officer.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Christiaan Highsmith is prosecuting the case.
If convicted, Ochoa-Tovali faces a maximum statutory penalty of eight years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Two Bakersfield Drug Trafficking Cases SentencedRead the Press Release
FRESNO, Calif. — Two sentences for drug trafficking were handed down on Monday for cases originating in Bakersfield, United States Attorney Benjamin B. Wagner announced.
Martin Barragan, 39, of Bakersfield, was sentenced by United States District Judge Lawrence J. O'Neill to four years in prison for using an interstate facility to aid racketeering. According to court documents, from June 1, 2012, to November 30, 2012, Barragan conspired with others to cultivate and distribute more than 900 marijuana plants. Barragan used a cellphone to manage his marijuana grow operation and business.
Marco Antonio Granados, 21 of Fontana, was sentenced by United States District Judge Anthony W. Ishii to four years and one month in prison for conspiring to distribute and possess with intent to distribute over 500 grams of methamphetamine. According to court documents, on October 16, 2013, Granados and his cousin met with a confidential informant in a parking lot on Weedpatch Highway in Bakersfield to negotiate the sale of 30 pounds of methamphetamine. When Granados and his cousin showed the informant a large cardboard box filled with methamphetamine in the cargo area of their vehicle, law enforcement personnel arrested them. Officers searched the vehicle and recovered 31 individually wrapped and “food saver” sealed packages of methamphetamine.
Both cases were the product of investigations by the Drug Enforcement Administration and the Kern County Sheriff’s Office. Assistant United States Attorney Brian K. Delaney prosecuted the cases.
Woman Sentenced for Growing Marijuana in Sequoia National Forest and Damaging Public LandsRead the Press Release
FRESNO, Calif. — Marcelina Botello Charles, aka Marcelina Botello Arias (Botello), 46, of Hemet, was sentenced today to four years and two months in prison for her involvement in a marijuana cultivation operation that had adverse environmental impacts on public lands, U.S. Attorney Benjamin B. Wagner announced.
On May 19, 2014, Botello pleaded guilty to conspiring to manufacture, distribute and possess with intent to distribute 9,746 marijuana plants grown in the Lilly Canyon area of the Sequoia National Forest and distributing Ratone: Fosfuro de Zinc, an illegal rodenticide, and QúFuran, an illegal insecticide, in violation of the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA).
According to court documents, Botello and a companion delivered the illegal pesticides and other materials to the forest cultivation site. The cultivation operation caused extensive environmental damage. Native oak trees and other vegetation were killed or cut down to make room for the marijuana plants. The soil was tilled and fertilizers, pesticides, and rodenticides were spread throughout the site. Cans of rat poison and insecticide were found at both the cultivation site and a residence Botello rented in Bakersfield. During the execution of a search warrant, agents also found marijuana seeds, other items associated with the cultivation operation, and $2,634 in cash.
Ratone: Forsfuro de Zinc contains zinc phosphide, an inorganic rodenticide that is highly toxic to mammals and fish. A single swallow of zinc phosphide could be fatal to a small child. Zinc phosphide can be expected to persist in soil for approximately two weeks. When it breaks down in soil it can release phosphine gas.
QúFuran contains carbofuran, a highly toxic insecticide. In granular form, a single grain will kill a bird; for humans, one quarter of a teaspoon is a sufficient dose to be fatal. It is also a powerful endocrine disrupter. Effective December 31, 2009, EPA cancelled all food tolerances for carbofuran.
“Illegal marijuana cultivation plagues our pristine national forests,” said Scott Harris, U.S. Forest Service Special Agent in Charge. “Those involved in this criminal activity place the community and their natural resources in danger. U.S. Forest Service Law Enforcement and our partners are committed to deterring, investigating, and prosecuting individuals and organizations that would exploit our public lands for such purposes.”
“Increasingly, dangerous, unregistered pesticides are being encountered by law enforcement officers who investigate illegal marijuana grows,” said Jay M. Green, Special Agent-in-Charge of EPA’s criminal enforcement program in California. “Through their indiscriminate application, these unregistered pesticides pollute our lands and waters, create a significant safety risk to humans and animals, and present a mounting cleanup expense for taxpayers. Today’s sentence demonstrates the government’s commitment to hold accountable those individuals who traffic unregistered pesticides onto our public lands.”
Upon completion of her prison sentence, Botello will be on supervised release for five years. She was also ordered to pay $4,294 in restitution to the U.S. Forest Service to cover the cost of cleaning up the grow site. Earlier this year, Botello’s co-defendant, Julio Cesar Villanueva Cornejo was sentenced to six years in prison for his involvement in the conspiracy.
This case was the product of an investigation by the U.S. Forest Service, U.S. Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the U.S. Environmental Protection Agency Criminal Investigation Division (EPA-CID), and the Kern County Sheriff’s Office. Assistant United States Attorney Karen Escobar prosecuted the case.
Visalia Woman Pleads Guilty to Fraud and Identity Theft for Filing False Tax Returns Using Stolen IdentitiesRead the Press Release
FRESNO, Calif. —Rebekah Root, 33, of Visalia, pleaded guilty today to 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.
San Francisco Field Division Special Agent-in-Charge Rod Ammari for the Office of Investigations, Treasury Inspector General for Tax Administration stated: “When individuals steal information from the Internal Revenue Service and use that information to further identity theft, victims are left picking up the pieces from the financial problems they are left with due to the crimes committed. The Treasury Inspector General for Tax Administration is committed to pursuing individuals that use the IRS to further their identity theft schemes.”
This case is the product of an investigation by the Treasury Inspector General for Tax Administration and the Internal Revenue Service Criminal Investigation. Assistant United States Attorneys Grant B. Rabenn and Patrick R. Delahunty are prosecuting the case.
Root is scheduled to be sentenced by United States District Judge Lawrence J. O'Neill on January 20, 2015. Root faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for wire fraud, five years in prison and a $250,000 fine for making a false claim for a tax refund, and a mandatory minimum penalty of two years in prison to be served consecutively with any other charged offenses 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.
Two Sentenced and One Pleads Guilty in Child Exploitation CasesRead the Press Release
FRESNO, Calif. — Today in federal court in Fresno, one man was sentenced to nearly 22 years in prison for producing child pornography, one was sentenced to 10 years in prison for receiving and distributing child pornography, and a third man pleaded guilty to receiving and distributing child pornography, United States Attorney Benjamin B. Wagner announced.
Fresno Man Sentenced to Nearly 22 Years in Prison for Producing Child Pornography (1:12-cr-236 LJO)
Benjamin Ruiz, 29, of Fresno, was sentenced today by U.S. District Judge Lawrence J. O'Neill to 21 years and 10 months in prison for producing child pornography.
According to court documents, in July 2012, Fresno law enforcement received a lead from the Concord Police Department that indicated Ruiz had been producing child pornography in Fresno in September 2010. A grand jury returned an indictment against Ruiz charging him with the above crime on August 2, 2012. He has been in federal custody and pleaded guilty to producing child pornography on June 3, 2014.
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Fresno County Sheriff’s Office, and the Concord Police Department. Assistant United States Attorney Brian W. Enos prosecuted the case.
“While there is no way to undo the despicable crimes committed against these innocent and vulnerable children, it is a relief that the defendants found guilty of these crimes will no longer be in a position to carry out their criminal acts,” said Ray Greenlee, assistant special agent in charge for HSI San Francisco. “HSI will continue to work tirelessly with its federal and local law enforcement partners to seek justice for the young victims in these cases, who will bear the emotional and physical scars of these crimes for the rest of their lives.”
Former Kern County Man Sentenced to 10 Years in Prison (Case #: 1:13-cr-146 AWI)
Senior United States District Judge Anthony W. Ishii sentenced former Kern County resident Robert Aron Sprenkle, 36, to 10 years 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 court documents, between September 29, 2012, and November 4, 2012, Sprenkle received and distributed images of child pornography via the Internet. On May 16, 2013, he was arrested in Clearwater, Florida where he had relocated. This case is the result of an investigation by the United States Marshals Service with assistance from the Clearwater Police Department and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney David Gappa prosecuted the case.
Fresno Man Pleads Guilty to Child Pornography Offense (Case #: 1:12-cr-403 LJO)
In a separate case, Bradley Allen Vaine, 28, of Fresno, pleaded guilty to two counts of receipt and distribution of child pornography. According to court documents, on October 25 and 27, 2012, Vaine received and distributed images of child pornography via the Internet He has been in custody as a danger to the community and a flight risk since his arrest on November 6, 2012. He is scheduled to be sentenced on December 8, 2014, by U.S. District Judge Lawrence J. O’Neil. The plea agreement contemplates a sentence of 25 years in prison and a lifetime term of supervised release. The actual sentence, however, will be determined at the discretion of the court at the hearing. Assistant U.S. Attorney David Gappa is prosecuting the case.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.
All three cases were brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. Click on the “resources” tab for information about Internet safety education.
Leader of Multi-Million Dollar Foreclosure Rescue Scheme ConvictedRead the Press Release
SACRAMENTO, Calif. — After a one-day bench trial on stipulated facts, United States District Judge Troy L. Nunley found Alan Tikal, guilty today of 11 counts of mail fraud and one count of money laundering, United States Attorney Benjamin B. Wagner and California Attorney General Kamala D. Harris announced.
According to evidence presented at trial, between January 7, 2010, and August 20, 2013, Tikal 46, of Brentwood, in Contra Costa County, California, operated a business known as KATN. Tikal and his associates targeted homeowners experiencing difficulties making their monthly mortgage payments, many of whom did not speak English, and promised them that their outstanding mortgage debt would be reduced by 75 percent, falsely claiming he was a registered private banker with access to an enormous line of credit and the ability to pay off homeowners’ mortgages in full. Tikal told homeowners that in return for various fees and payments, their existing loans would be paid in full, and the homeowners would then owe new loans to Tikal that would be only 25 percent of the original loan.
In fact, there was not a single instance in which a homeowner’s debt was paid, forgiven or otherwise extinguished as a result of the mortgage relief program. All of the purported “loan” payments paid to Tikal were simply spent by himself, his family and his associates for personal use. Tikal and his associates convinced more than 1,000 homeowners in California and other states to participate in the program. Relying on the misrepresentations made by Tikal, many of these homeowners stopped making payments on their existing mortgages and lost their homes to foreclosure. Those homeowners paid more than $5,800,000 in fees and monthly payments into the program. Of that, more than $2,500,000 was paid into accounts controlled by Tikal and his family.
“The financial crisis that hit our communities so hard made it very difficult for many of our citizens to make ends meet,” said U.S. Attorney Wagner. “Alan Tikal cynically took advantage of their desperation for his own profit, stealing payments meant to preserve family homes. We are gratified by the Court’s guilty verdict.”
“As California recovers from the foreclosure crisis, financial scams continue to target vulnerable homeowners,” said California Attorney General Kamala D. Harris. “These predators robbed innocent families of their life savings and their piece of the American dream. I congratulate our California Mortgage Fraud Strike Force and the U.S. Department of Justice for their fine work in bringing these individuals to justice.” “Tikal exploited the financial crisis by setting out to hurt others and profit from that hurt, and he accomplished his mission through his crime,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “Homeowners struggling to keep their heads above water paid Tikal thinking they were getting their mortgages modified, foregoing the chance to obtain a real mortgage modification through HAMP, the TARP housing program. Even after SIGTARP agents arrested Tikal, from his jail cell, Tikal continued to run the scheme that stole $5.8 million from homeowners and fraudulently stalled foreclosure proceedings by TARP banks. SIGTARP stands united with our partners like U.S. Attorney Ben Wagner, his team of prosecutors, and Maggy Krell, the terrific prosecutor from the California Attorney General’s office.”
“The defendant preyed on struggling and trusting homeowners”, said José M. Martínez, Special Agent in Charge, IRS-Criminal Investigation. “The impact on homeowners and communities is devastating. While the conviction cannot reverse the damage caused by this defendant, it highlights the ongoing commitment of IRS-CI to hold accountable those involved in these types of crimes.”
This case is a joint prosecution by the United States Attorney’s Office for the Eastern District of California and the California Attorney General’s Office. It is the product of investigation by the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), Internal Revenue Service - Criminal Investigation, the California Department of Justice, and the Stanislaus County District Attorney’s Office. Assistant United States Attorney Philip Ferrari and California Deputy Attorney General Maggy Krell are prosecuting the case.
Co-defendants Tamara Tikal and Ray Kornfeld have previously pleaded guilty and are awaiting sentencing.
Tikal, who has been incarcerated pending these charges since his arrest in September of 2012, is scheduled to be sentenced by Judge Nunley on December 11, 2014. Tikal faces a maximum statutory penalty of 30 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.
Final Defendant Sentenced in Scheme to Use Fresno Trucking Front to Smuggle Cocaine into CanadaRead the Press Release
FRESNO, Calif. — Canadian citizen Armitdeep Mann, 33, of Toronto, Canada, was sentenced today to five years and one month in prison by United States District Judge Anthony W. Ishii for conspiracy to distribute and possess with the intent to distribute cocaine, United States Attorney Benjamin B. Wagner announced.
According to court documents, between July 1, 2012, and September 21, 2012, Mann and others conspired to smuggle cocaine into Canada by concealing it in legitimate cargo. On September 21, 2012, agents followed one of Mann’s co-conspirators as he went to Los Angeles to deliver eight kilograms of cocaine. Law enforcement seized that cocaine and arrested Mann and additional defendants. A search warrant at the Los Angeles residence where authorities believed the eight kilograms of cocaine had been stored resulted in the seizure of an additional 40 kilograms of cocaine. Mann has been held in custody without bail since his arrest.
On April 7, 2014, co-conspirator Manjot Nanner, 32, of Fresno, was sentenced to one year and 10 months in prison, and on June 2, 2014, co-conspirator Vincent Rivaz-Felix, 29, of Los Angeles, was sentenced to four years and three months in prison for the conspiracy.
This case was the product of an investigation by the Organized Crime Drug Enforcement Task Force, the Drug Enforcement Administration, Fresno Police Department, and the Fontana and Vernon Police Departments. Assistant United States Attorney Kevin Rooney prosecuted the case.
This case was 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.
Bay Area Resident Pleads Guilty to Tax EvasionRead the Press Release
FRESNO, Calif. — Bay Area resident William James Kennedy, 68, pleaded guilty today to making and subscribing a false tax return, United States Attorney Benjamin B. Wagner announced.
According to court documents, Kennedy sent tax returns to the Fresno IRS office in 2002, 2003, 2004 and 2005, in which he underreported his taxable income. Kennedy, as a financial advisor, touted a variety of tax avoidance schemes, such as the use of corporation “soles” (a corporate form that enables religious leaders to hold property and conduct business for the religious entity) and debt elimination programs, to his clients in order to allow them to avoid paying income taxes. For his financial services, Kennedy was compensated by his clients but failed to properly report that income on his tax returns. In 2002, he claimed an improper charitable deduction to an entity that was one of his own corporation soles. As a result of Kennedy’s conduct, the United States incurred a tax loss of approximately $627,000. As part of his plea agreement, Kennedy will pay restitution to the IRS in this amount.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Mark J. McKeon is prosecuting the case.
Kennedy is scheduled to be sentenced by United States District Judge Anthony W. Ishii on November 24, 2014. Kennedy faces a maximum statutory penalty of three years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Bakersfield Man Pleads Guilty in Methamphetamine CaseRead the Press Release
FRESNO, Calif. —Dimas Mazon, 29, of Bakersfield, pleaded guilty today to conspiring to distribute and possess with the intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.
According to court documents, on October 23, 2012, Mazon arranged a one-pound methamphetamine sale. Mazon also admitted that the conspiracy involved approximately 444 grams of pure methamphetamine.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Southern Tri-County HIDTA Task Force and the Bakersfield Police Department. Assistant United States Attorney Kevin Rooney is prosecuting the case.
Mazon is detained and being held without bail. He is scheduled to be sentenced on December 13, 2014, by United States District Judge Lawrence J. O'Neill. Mazon faces a possible maximum sentence 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.
Bakersfield Drug Dealer Sentenced to over 11 Years in PrisonRead the Press Release
FRESNO, Calif. —Gamaliel Salas-Mendoza, aka Rene Salas-Mendoza (Salas), 38, an undocumented alien from Mexico, was sentenced today to 11 years and eight months in prison for conspiring with his cousin Miguel Sanchez-Mendoza, 46, to distribute and to possess with the intent to distribute methamphetamine, heroin, and cocaine, United States Attorney Benjamin B. Wagner announced. United States District Judge Anthony W. Ishii also ordered Salas to register as a drug offender.
Salas was sentenced following his guilty plea in June. According to court documents, Salas and his cousin maintained a stash house in Bakersfield from where law enforcement officers seized seven pounds of methamphetamine, one and a half pounds of cocaine, and a half‑pound of heroin, all packaged for sale. In addition to the drugs, officers found and seized digital scales, precursor chemicals used in the manufacture of methamphetamine, and $9,483 in cash. The cash has been forfeited as proceeds of drug trafficking.
Sanchez pleaded guilty and was sentenced on April 28, 2014, to eight years in prison. Both men are subject to deportation following completion of their sentences.
This case is the product of an investigation by the U.S. Drug Enforcement Administration, Kern County Sheriff’s Office Narcotics Enforcement Team, Kern County Sheriff’s Office Major Violators Unit, and the California Multijurisdictional Methamphetamine Enforcement Team. Assistant United States Attorney Karen Escobar prosecuted the case.
30, 20 and 10 Year Sentences Handed Down for $37 Million Ponzi SchemeRead the Press Release
SACRAMENTO, Calif. — Three Sacramento-area residents were sentenced today for their roles in the Diversified Management Consultants Ponzi scheme, United States Attorney Benjamin B. Wagner announced. Christopher Jackson, 46, of Elk Grove, was sentenced to 30 years in prison; Michael Bolden, 60, of Sacramento, was sentenced to 20 years in prison; and Victor Alvarado, 53, of Sacramento, was sentenced to 10 years in prison.
United States District Judge Troy L. Nunley sentenced each defendant during a daylong hearing in which he heard from many defrauded investors and an FBI forensic accountant. At the end of the day, the court determined that three remaining co-defendants will be sentenced at a later date. After hearing from victims, Judge Nunley characterized the scheme as outright greed saying, “When you had an opportunity to stop, even when it involved your own family members, you didn’t. This is one of the worst fraud schemes I have ever seen.”
According to court documents, between 2003 and 2009, Diversified Management Consultants (DMC) purported to help people invest money in real estate development and save their homes from foreclosure. In reality, DMC was an investment fraud scheme that defrauded at least 240 people out of approximately $36,950,000. The defendants ran various investment clubs under the DMC umbrella. They induced people to invest their ordinary savings, tax-deferred retirement savings, and the proceeds of cash-out residential loan refinancing. They told investors that their money would be used for purchasing property and building structures for a real estate venture. In fact, victim money went to pay other investors’ bogus returns on investment and to pay for the defendants’ personal expenses, including luxury lifestyle expenditures. Even as DMC was failing, Bolden urged his subordinate club presidents to recruit still more investors to “keep the lights on” by using new funds to pay returns to earlier investors.
Bolden was the president of DMC and pleaded guilty to one count of wire fraud. This was not Bolden’s first federal fraud conviction. In 1994, Bolden was sentenced to 21 months in prison for conspiracy, loan fraud, and securities fraud in connection with an earlier investment fraud scheme.
Jackson was the president of Genesis Innovations. The only defendant to go to trial, a jury convicted him of six counts of wire fraud. The evidence at trial established that out of the $10 million he took from 80 investors, Jackson invested no more than about $2.5 million in developing real estate. He used the rest to pay false returns to other investors and to live in a way that he himself compared to an entertainment or sports star. Jackson used the Genesis Innovations account to obtain a Lamborghini, a Rolls Royce, a BMW, and a Range Rover. He employed a personal chef and a bodyguard who at times carried Jackson’s cash for him in a metal briefcase. Jackson took an entourage of guests on annual trips to Las Vegas where they joined him at the finest hotels and restaurants. He used over $1 million from his investment club account to go shopping, buy jewelry, and to landscape his house.
Alvarado was the president of Equishare. Alvarado pleaded guilty to one count of conspiracy and one count of making false statements. Alvarado was the one who found a way for DMC to have access to victims’ tax-deferred retirement accounts through a third-party self-directed IRA administrator. When interviewed by the FBI about his involvement in DMC, Alvarado lied.
Garry Bradford, 65, of Sacramento, was the president of Millenium Capital Group. Bradford pleaded guilty to four counts of wire fraud. He used victim money for Ponzi payments and also for gambling at area casinos. His sentencing is set for September 18, 2014. Nicholo Arceo, 41, of Sacramento, was the president of Envision. He pleaded guilty to conspiracy. His sentencing is set for October 2, 2014. Erica Arceo, 46, of Sacramento, was an in‑house attorney at DMC. She pleaded guilty to conspiracy and is no longer eligible to practice law. Her sentencing is set for September 18, 2014.
“Bolden, Jackson and their co-defendants cruelly took advantage of their victims, extracting from many of them a lifetime of hard-earned savings,” said U.S. Attorney Wagner. “They may have destroyed his victims’ dreams of financial security in retirement, but their own retirement in federal prison will be considerably worse.” U.S. Attorney Wagner cited the outstanding work of FBI Special Agent Richard Snodgrass as critical to dismantling the complex investment fraud scheme, which required the analysis of dozens of bank accounts and interviews of scores of victims of other witnesses.
“This egregious crime siphoned funds from investors to support the criminals’ lavish lifestyles and keep the Ponzi scheme afloat instead of fulfilling the promise of substantial return on their investments. As this case demonstrates, potential investors must carefully research both the investment and the people who are soliciting funds prior to investing in any opportunity. If it sounds too good to be true, many times it is,” said Assistant Special Agent in Charge John Gliatta of the FBI’s Sacramento division. “The FBI is committed to identifying and investigating those who abuse trust to commit large-scale fraud to ensure that such criminals will face justice.”
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Matthew D. Segal and Jared C. Dolan prosecuted the case.
This case was done in connection with the President’s Financial Fraud Enforcement Task Force that was established 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.
Two More Guilty Pleas Entered in Vallejo-Based Drug Trafficking IndictmentsRead the Press Release
SACRAMENTO, Calif. — Andre Cawthorne, 40, of Vallejo, and Eileen Knight, 43, of Los Angeles, entered guilty pleas to drug trafficking charges arising out of a wide-ranging investigation into the distribution MDMA, popularly known as the drug “Ecstasy,” crack cocaine, heroin, Oxycodone, and marijuana in the Vallejo area, United States Attorney Benjamin B. Wagner announced.
According to court documents, the DEA-led investigation uncovered a network of drug distributors working in the “Crest” neighborhood of Vallejo along with individuals transporting large quantities of drugs outside of California to realize a larger profit. A number of the participants, including Major Norton and Gaylord Franklin, performed as rappers under the entertainment label known as “Thizz Entertainment.” In many of songs by artists on the Thizz Entertainment label, the lyrics glorify and promote the use and distribution of MDMA pills. In April 2012, agents arrested a total of 25 individuals in Vallejo, Stockton, Fairfield, Oakland, Los Angeles, New York, and Oklahoma City. During the investigation, agents seized approximately 45,000 MDMA pills, four pounds of crack cocaine, two pounds of heroin, and $200,000 in suspected drug proceeds. Agents also forfeited 230 acres of property valued at approximately $1 million as part of the investigation. Agents also seized a 2010 Audi A6 with an estimated value of $60,000.
Cawthorne and Knight are scheduled to be sentenced on December 11, 2014. Cawthorne faces a maximum statutory sentence of four years in prison and a $250,000 fine. Knight face a maximum statutory penalty of 20 years in prison and a $1 million fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Other defendants indicted in this investigation have recently entered guilty pleas:
Michael Lott, 50, pleaded guilty to conspiracy to distribute MDMA and crack cocaine;
Major Norton, 39, pleaded guilty to conspiracy to distribute MDMA;
Gaylord Franklin, 34, pleaded guilty to conspiracy to distribute MDMA;
Dante Barbarin, 43, pleaded guilty to using a phone to facilitate drug dealing;
Clifford Bullock, 37, pleaded guilty to conspiracy to distribute marijuana;
Ung Duong, 48, pleaded guilty to conspiracy to distribute MDMA;
Phat Nguyen, 43, pleaded guilty to conspiracy to distribute MDMA;
Narco McFarland, 46, pleaded guilty to using a phone to facilitate drug trafficking;
Damian Peterson, 37 pleaded guilty to using a phone to facilitate drug trafficking; and
Mikel Brown, 51 pleaded guilty to using a phone to facilitate drug trafficking.This case is the product of an investigation by the DEA Sacramento District Office, the Vallejo Police Department, El Dorado County Sheriff’s Office, and the Sacramento FBI Safe Streets Task Force. Assistant United States Attorney Jason Hitt is prosecuting the two related cases. It was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multilevel 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.
U.S. Attorney General Recognizes District ProsecutorsRead the Press Release
WASHINGTON – Assistant United States Attorneys Jean M. Hobler and Lee S. Bickley of the U.S. Attorney’s Office in the Eastern District of California were two of 243 members of the Department of Justice nationwide recognized by Attorney General Eric Holder and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 30th annual Director’s Awards Ceremony today in Washington D.C.
The Eastern District of California is one of 44 federal districts represented at the ceremony, which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building. The awards recognize outstanding achievements by employees of the U.S. Attorney’s Offices.
In his prepared remarks to awardees, Attorney General Holder said, “Locally, nationally, and internationally, you represent the very best that this Department has to offer. Your work embodies our ongoing commitment — not merely to win cases, but to do justice; to protect our fellow citizens from crime, violence, and terrorism; to empower the most vulnerable among us; and to uphold the rule of law.”
EOUSA Director Monty Wilkinson echoed those sentiments, saying to the recipients, “You have persevered, and remained focused and motivated — achieving remarkable results in work that makes a difference in the lives of citizens across our great country. The vast scope of your collective accomplishments is nothing short of exceptional.”
Jean Hobler and Lee Bickley each received the Director’s Award for Superior Performance by an Assistant United States Attorney for their outstanding work in prosecuting Anthony Vassallo’s Ponzi scheme that was one of the largest in the district’s history. Vassallo took in over $80 million of investor funds and lost over $40 million of those funds. They were assigned this case after the departure of the initiating Assistant United States Attorney and the reassignment or retirement of all the original case agents. Nevertheless, Assistant United States Attorneys Hobler and Bickley and new agents prepared for trial in this case involving dozens of feeder investment funds and over 400 individual victims. In May 2012, Bickley successfully moved to have Vassallo’s pretrial release revoked, three years after he was charged, to the great relief of Vassallo’s victims. Hobler led the plea negotiations, which were protracted and complex. Shortly before trial, and four years after he was charged, with his third defense attorney and having fought every suggestion he had committed a crime, on February 1, 2013, Vassallo pleaded guilty. On June 21, 2013, Vassallo was sentenced to 16 years in prison and was later ordered to pay over $43 million in restitution to his victims. Co-conspirator Kenneth Kenitzer pleaded guilty in a related case and on February 14, 2014, was sentenced to six years in prison.
“Prosecuting complex financial crimes has been a priority for this office, and it is a job we have been doing well,” said U.S. Attorney Wagner. “As the Attorney General recognized today, Jean Hobler and Lee Bickley have done outstanding work, both in the prosecution of a huge Ponzi scheme and in their handling of many other cases in this district. Their colleagues in this office are proud of them.”
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Guilty Plea in Telemarketing Scam That Targeted Elderly in Woodland, Stockton, Bakersfield, and DinubaRead the Press Release
SACRAMENTO, Calif. —Wladimir Rocha, 35, a Cape Verde national and resident of Winchester, Virginia, pleaded guilty today to one count of mail fraud, in connection with a telemarketing scam that tricked people into sending him money in order to receive cash prizes, United States Attorney Benjamin B. Wagner announced.
According to court documents, the scam targeted elderly victims who believed the money they sent to the defendants would be used to pre-pay taxes and fees on winnings from a sweepstakes or lottery. As part of the scam, Rocha opened different post office boxes in Virginia to receive victim money. The scam targeted victims throughout California, including residents of Woodland, Stockton, Bakersfield, and Dinuba. Co-defendant Joseph Nkunzi pleaded guilty on September 2, 2014, and is scheduled to be sentenced on November 19, 2014.
This case is the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Michele Beckwith is prosecuting the case.
Rocha is scheduled to be sentenced by United States District Judge Kimberly J. Mueller on December 3, 2014. Rocha faces a maximum statutory penalty of thirty years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Two Child Exploitation Cases: Modesto Man Sentenced and Madera Man Pleads GuiltyRead the Press Release
FRESNO, Calif. — One defendant was sentenced and one pleaded guilty today in separate child exploitation cases, United States Attorney Benjamin B. Wagner announced.
In the first case, Senior United States District Judge Anthony W. Ishii sentenced William John Cornelius, 49, of Modesto, to six years and six months in prison, to be followed by 15 years of supervised release, for his conviction for possession of child pornography. According to court documents, between December 8, 2012, and January 11, 2013, Cornelius knowingly possessed more than 600 images of child pornography. Some of the images depicted prepubescent minors and other images depicted violence or sadistic or masochistic conduct. He was also ordered to pay $3,000 to the National Center for Missing & Exploited Children in Alexandria, Virginia. This case was the result of an investigation by the Ceres Police Department.
In the second case, Ernest Garza Reyes, 31 of Madera, pleaded guilty before Judge Ishii to two counts of receiving child pornography. Between July 2, 2011, and November 13, 2011, he knowingly received or distributed images of child pornography using a computer connected to the Internet. A sentencing hearing has been scheduled for November 17, 2014, at 10:00 a.m. At that time Reyes faces a maximum potential sentence, for each count, of 20 years in prison, a $250,000 fine, and a lifetime term of supervised release. The actual sentence, however, will be determined by the court after considering the federal sentencing guidelines and a number of statutory factors. This case is the result of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Sheriff’s Offices of Madera and Fresno Counties.
Assistant United States Attorney David Gappa prosecuted both cases. They were brought as part of Project Safe Childhood (PSC), 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 and prosecute those who sexually exploit children, and to rescue victims. For more information about PSC, please visit www.justice.gov/psc. Click on the “resources” tab for information about Internet safety education.
Fresno Man Sentenced for Marijuana Cultivation That Diverted Water from the San Joaquin RiverRead the Press Release
FRESNO, Calif. — United States District Judge Anthony W. Ishii sentenced Sam Kounhavong, aka Inpong Kounhavong, 52, of Fresno, today to two years in prison, to be followed by three years of supervised release, for his involvement in a large-scale marijuana cultivation operation in Stanislaus County that was irrigated by water diverted from the San Joaquin River, U.S. Attorney Benjamin B. Wagner announced. Judge Ishii also ordered Kounhavong to register as a drug offender.
In March 2014, Kounhavong pleaded guilty to conspiring to cultivate 907 marijuana plants grown in Newman. Water from the San Joaquin River had been diverted to irrigate the marijuana plants. At the grow site, agents found a firearm, respirators, motion detectors, chemicals, fertilizers, makeshift tents on plywood platforms, some elevated, a guard dog, and a sign that said: “‘Hey You’ ‘Yeah You’ Keep Out.”
The case was the product of an investigation by the DEA and Stanislaus Drug Enforcement Agency, a multi-agency drug task force in Modesto. Assistant United States Attorney Karen A. Escobar prosecuted the case.
Bakersfield Men Sentenced for Damaging Oil Field FacilitiesRead the Press Release
FRESNO, Calif. — Derek A. Brown, 33, and Bryan T. Schaub, 22, both of Bakersfield, were sentenced today to two years in prison and ordered to pay $240,084 in restitution for conspiring to damage energy facilities, United States Attorney Benjamin B. Wagner announced.
According to court documents, in 2011 and 2012, Brown and Schaub stole electronic equipment from the oil field facilities of Chevron, Occidental, Seneca Western Minerals Corporation, Aera Energy, and Berry Petroleum. Among the equipment they stole were programmable logic controllers that electronically control the opening and closing of valves in the oil fields. The theft of a programmable logic controller creates the risk of an oil spill or loss of production if not detected and remedied in time. The total loss of equipment by the oil companies exceeded $200,000.
“Brown and Schaub’s thefts resulted in significant losses in excess of the value of the equipment which was stolen and without any regard for the risk to consumers and the community. Removal of these highly technical controllers resulted in material losses and had the potential to negatively impact both production and prevention of oil spills,” said Special Agent in Charge Monica M. Miller of the FBI’s Sacramento division. “We are thankful for the Kern County Sheriff’s Department for their continued partnership and assistance with the investigation of this matter, the first of its kind in the region.”
This case was the product of an investigation by the Federal Bureau of Investigation and the Kern County Sheriff’s Office. Assistant United States Attorneys Duce Rice and Michael Tierney prosecuted the case.
U.S. Department of Justice Awards Fresno Police Department A $500,000 Grant to Combat Gang Violence and Gun CrimesRead the Press Release
FRESNO, Calif. — The Bureau of Justice Assistance, an agency of the United States Department of Justice, has announced a grant to the Fresno Police Department to fund Project Safe Neighborhoods, a violent gang and gun crime reduction program, United States Attorney Benjamin B. Wagner announced today.
“The Attorney General of the United States has directed this office and other federal law enforcement agencies to work together with our state and local partners to protect vulnerable communities from violent gangs and gun crimes through a multitrack approach," said U.S. Attorney Wagner. “That approach includes vigorous, proactive enforcement, but also engagement with communities to enhance prevention and stronger re-entry efforts to reduce recidivism. This grant will help do all of those things in the Calwa area of Fresno.”
Chief Dyer with the Fresno Police Department stated: "The PSN grant will further enable us to reduce violence in our neighborhoods and keep our community safer through strong partnerships with our federal, state and local criminal justice partners."
The grant will be used to fund the law enforcement personnel of the Multi Agency Gang Enforcement Consortium (M.A.G.E.C.) partners. The Fresno Police Department, the Fresno County Sheriff’s Department and the Fresno County District Attorney’s Office will conduct investigations of gang-related violence using the intelligence information and the analysis of crime data. M.A.G.E.C. will refer violent crime cases to the U.S. Attorney’s Office and the Fresno County District Attorney’s Office for prosecution.
The grant will also cover the costs of a team of professors and graduate assistants from the California State University, Fresno’s Department of Criminology. They will analyze gun and gang crime and intelligence data to promptly identify emerging crime hot spots. They will use highly advanced computer mapping software and programs that produce simplified maps that can be used for effective decision making.
Due to County jail funding limitations, it is common for gun/gang offenders to be rapidly released from the local facility, at times after a few hours from arrest. Now, three beds in the Fresno County jail will be dedicated to PSN gun/gang offenders.
The grant will also support a public service announcement campaign, which will be launched in newspapers, television, radio, Internet, billboards and on public transportation.
Friends of Calwa- Nature & Nurture. Project funds will be used to fund program staff and the purchase of project related equipment for community beautification (such as shovels, paint, and brushes), youth stipends for enrolled participants, community engagement meetings, facility fees, trainers, field trips (camping trip; zoo), and other project expenses. The program will be conducted within Calwa target area in community centers, churches, schools, parks and affected gang neighborhoods.
The California Governor’s Office of Emergency Services (Cal OES) will be responsible for financial oversight of all grant related activities, and it will be managed by the Fresno Police Department Grants Management Unit.
Visalia Man Indicted for Sexual Exploitation of A MinorRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment today charging Steven Christopher Montes, 25, of Visalia, with three counts of sexual exploitation of minors, United States Attorney Benjamin B. Wagner announced.
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 Kings County District Attorney’s Office. Assistant United States Attorney Brian W. Enos is prosecuting the case.
According to court documents, from November 2013 through August 2014 and while serving as a band teacher at Riverdale High School, Montes knowingly and surreptitiously took sexually explicit videos of minors on campus.
If convicted, Montes faces a possible sentence of 15 to 30 years in prison for each count charged. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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.
Tehachapi Man Indicted on Child Pornography ChargesRead the Press Release
FRESNO, Calif. — A federal grand jury returned an indictment today against Thomas Bettis, 53, of Tehachapi, charging him with two counts of receipt and distribution of child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, between October 2011 and March 2013, Bettis downloaded and distributed graphic images of child pornography. In order to trade and obtain more images of child pornography, Bettis communicated with at least two individuals—one of whom was an undercover law enforcement officer.
This case is the product of two separate investigations by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Federal Bureau of Investigation. Assistant United States Attorney David L. Gappa and Special Assistant United States Attorney Brian A. Fogerty are prosecuting the case.
Bettis was arrested on August 27, 2014, and he has been ordered detained as a danger to the community. His next court date is September 10, 2014, at 1:30 p.m. before a magistrate judge.
For each count, Bettis faces a prison sentence of between five and 20 years, a potential $250,000 fine, and a lifetime term of supervised release. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Men Arrested in Bakersfield Indicted for Cocaine SmugglingRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Jimmy Gil, 34, of Shafter, Jose Luis Montoya-Salazar, (Montoya), 42, of Mexico City, and Luis Ricardo Eslava-Corral (Eslava), 42, of Sinaloa, Mexico, charging them with conspiring to import, distribute, and possess with intent to distribute cocaine, United States Attorney Benjamin B. Wagner announced. Montoya was also charged with being an alien found in the United States after two prior deportations.
According to court documents, on August 19, 2014, Customs and Border Protection officers at the Otay Mesa, California Port of Entry discovered cocaine in a hidden compartment in the floor of a trailer that was being driven by Eslava. Federal agents were called in and began following the truck. The truck made stops in San Diego and San Clemente and on August 20, 2014, continued driving toward Bakersfield. Gil met the truck at a site south of Bakersfield and took possession of the tractor trailer. Gil and Montoya began unloading 18 one-kilogram packages of cocaine from the compartment in the floor of the trailer and placed the packages in Montoya’s vehicle. Gil and Montoya were arrested before they were able to unload the remaining packages of cocaine. Follow-up investigation resulted in the seizure of over $3.1 million in cash hidden in an asphalt roller at another location in Bakersfield. Thirty-eight kilograms of cocaine were seized with an estimated street value of over $3 million.
This case was the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Drug Enforcement Administration, the Southern Tri-County High Intensity Drug Trafficking Area (HIDTA) task force, Kern County Sheriff’s Office, Tulare County Sheriff’s Office, and Bakersfield Police Department. Assistant United States Attorney Karen Escobar is prosecuting the case.
The defendants are scheduled to be arraigned on September 8, 2014. If convicted of the drug conspiracy, they face 10 years to life in prison and a $10 million fine. Montoya also faces a maximum prison term of two years and a fine of $250,000, if convicted of being a deported alien found in the United States. 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. If convicted, Eslava and Montoya are subject to deportation to Mexico after serving any prison sentence imposed.
Foreign National Indicted for Growing Nearly 10,000 Marijuana Plants in the Trinity Alps WildernessRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Mexican national Horacio Sierra Campos, 25, charging him with conspiracy to cultivate marijuana, cultivation of marijuana, and depredation of public lands and resources, United States Attorney Benjamin B. Wagner announced.
According to court documents, on August 7, 2014, United States Forest Service agents and Trinity County Sheriff’s deputies entered a large marijuana cultivation site in the Hobo Gulch area of the Trinity Alps Wilderness, which is National Forest land. Officers located approximately 9,998 marijuana plants and 835 pounds of processed marijuana at the site. Sierra Campos was arrested at the marijuana cultivation site and is in custody. The marijuana cultivation caused significant damage to the land and natural resources of the Trinity Alps Wilderness. Law enforcement observed pesticides, insecticides, hundreds of pounds of trash, and irrigation piping diverting water from a nearby stream to the thousands of marijuana plants under cultivation.
This case is the product of an investigation by the United States Forest Service and the Trinity County Sheriff’s Office. Assistant United States Attorney Christiaan Highsmith is prosecuting the case.
If convicted, Sierra Campos faces a maximum statutory penalty of 20 years in prison and a $1 million fine for the marijuana cultivation charges and 10 years in prison and a $250,000 fine for the depredation of public lands and resources charge. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
35 Year Prison Sentence for Nationwide Foreclosure Rescue ScamRead the Press Release
SACRAMENTO, Calif. — Charles Head, 40, of Pittsburgh, Pennsylvania, (formerly of Los Angeles and Orange County), was sentenced today by United States District Judge Kimberly J. Mueller to 35 years in prison, United States Attorney Benjamin Wagner announced. A hearing to determine the amount of restitution has been set for November 22, 2014.
In sentencing, Judge Mueller noted that Charles Head had “created and implemented a very cynical scheme” and that Head’s life has “shown an inability to respect the law.”
In 2013, Head was convicted in two jury trials of two conspiracies to commit mail fraud in connection with nationwide “foreclosure rescue” scams. He was also convicted of seven counts of mail fraud. According to evidence presented at trial and at his sentencing hearing, Head was the CEO of a group of brokerage and financial companies in Orange County and Los Angeles County: Head Financial Services, Creative Loans, and others.
In 2008, a federal grand jury indicted Head and 16 other defendants in two cases, charging them with conspiracy to commit mail fraud, mail fraud, and other charges related to the Head Financial Services equity skimming schemes. The evidence at trial established that the defendants solicited homeowners facing foreclosure, promising to help the homeowners avoid foreclosure and repair their credit. Instead, through misrepresentations, fraud, and forgery, the defendants led the victims to complete transactions that 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, or were solicited on the Internet. 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.
Initially, Head focused his scam on distressed homeowners in California before expanding throughout the United States. In the course of the schemes, between January 2004 and June 2006, the defendants obtained over $90 million in fraudulent loans, caused estimated losses of over $50 million, and stole title to over 300 homes.
Head and his brother Jeremy Michael Head, 34, of Huntington Beach, were convicted in May 2013 following a nearly four-week trial. A second trial was held in December 2013 that lasted five weeks. Head and two other defendants were convicted.
U.S. Attorney Wagner said: "This defendant purposely targeted the financially vulnerable during their time of greatest distress with promises of help. Then he tricked them into handing over their most valuable asset, their home. When victims in one scheme grew scarce, he opened up a new scheme drawing in victims from across the country. Few economic crimes are more reprehensible. No sentence will undo the damage wrought by Charles Head and his fellow scammers, but today’s sentence brings a measure of justice for their victims.”
“In large fraud schemes like the one devised by Charles Head, we can’t forget about the individual homeowners who comprised the more than $50 million in losses,” said Monica Miller, Special Agent in Charge of the Sacramento division of the FBI. “Today’s sentencing ends an investigation that has been ongoing for more than 10 years and brings some closure to the innocent people who were victimized by Head’s callous scheme.”
“The defendant preyed on struggling and trusting homeowners, literally stealing the American Dream out from under them, with no remorse,” said José M. Martínez, Special Agent in Charge, IRS-Criminal Investigation. “Today’s sentencing signifies the continued effort by the IRS, FBI and U.S. Attorney’s Office to investigate and prosecute those who commit mortgage fraud. IRS-CI is committed to pursuing those who line their pockets with profits from these schemes.”
This case is the product of an investigation by the Internal Revenue Service‑Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorneys Michael D. Anderson and Matthew Morris are prosecuting the case.
Sixteen other defendants have also been convicted in the two related cases and are awaiting sentencing:
Elham Assadi, aka Elham Assadi Jouzani, aka Ely Assadi, 34, of Irvine, California;
Leonard Bernot, 54, of Laguna Hills, California;
Akemi Bottari, 32, of Los Angeles, California;
Keith Brotemarkle, 46, of Johnstown, Pennsylvania;
Benjamin Budoff, 47, Colorado Springs, Colorado;
Joshua Coffman, 34, of North Hollywood, California;
John Corcoran, aka Jack Corcoran, 56, of Anaheim, California;
Jeremy Michael Head, 34, Huntington Beach, California;
Sarah Mattson, 31, of Phoenix, Arizona;
Domonic McCarns, 40, of Irvine, California;
Omar Sandoval, 36, of Rancho Cucamonga, California;
Xochitl Sandoval, 33, of Rancho Cucamonga, California;
Lisa Vang, 28, of Westminster, California;
Andrew Vu, 43, of Santa Ana, California;
Justin Wiley, 32, of Irvine, California, and
Kou Yang, 36, of Corona, California.In addition, defendant Ahn Nguyen is pending trial and defendant Domonic McCarns is awaiting a second trial on additional charges related to these offenses. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was part of 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.
Washington Man Pleads Guilty to Telemarketing Fraud Scam Targeting Elderly CitizensRead the Press Release
SACRAMENTO, Calif. —Joseph Nkunzi, 31, of Des Moines, Washington, pleaded guilty today to conspiracy to commit mail fraud in connection with a telemarketing scam that tricked people into sending him money in order to receive cash prizes, United States Attorney Benjamin B. Wagner announced.
According to court documents, beginning in 2011, Nkunzi worked with others to defraud senior citizens of thousands of dollars in a telemarketing scheme. The FBI received a referral from the Woodland Police Department in April 2013, 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 in order to receive the prize, she had to send $182,000 to various accounts to pay for taxes and fees.
During the course of the scheme, the victims would either mail checks to Nkunzi or would directly deposit checks into bank accounts that he established and controlled. Nkunzi subsequently withdrew the money or transferred it to other accounts. When federal agents searched Nkunzi’s home in Washington, they seized a Maserati and a Lexus. The scam targeted victims throughout California, including residents of Woodland, Stockton, Bakersfield, and Dinuba. In total, the victims lost approximately $850,000 to the scam.
This case is the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Michele Beckwith is prosecuting the case.
Nkunzi is scheduled to be sentenced by United States District Judge Kimberly J. Mueller on November 19, 2014. The plea agreement contemplates a sentence of four years and three months in prison. The actual sentence, however, will be determined at the discretion of the court at the sentencing hearing.
Four Family Members Charged in Multistate Conspiracy to Sell Counterfeit Erectile-Dysfunction DrugsRead the Press Release
FRESNO, Calif. — Four family members have been charged with conspiring to traffic in counterfeit erectile dysfunction drugs, United States Attorney Benjamin B. Wagner announced.
On August 28, 2014, a federal grand jury in Fresno returned an indictment charging Holly Gitmed, 38, of Riverbank in Stanislaus County, her ex-husband John Gitmed, 52, of Los Angeles; his daughter Felicia Gitmed, 23, of Los Angeles; and his nephew Anthony Pollino Jr., 36, of Los Angeles, with a conspiracy to traffic in counterfeit goods and commit mail fraud and with trafficking in counterfeit goods.
According to court documents, between February 9, 2012, and February 27, 2014, the defendants ran a business called the “California Confidence Company” that bought counterfeit copies of the erectile-dysfunction drugs Viagra®, Cialis®, and Levitra®, along with genuine looking packaging from foreign suppliers and middlemen, including suppliers based in China. They posted online advertisements and sold the counterfeit drugs to consumers throughout California, in the Las Vegas area, and in other states. The defendants advertised the sale of “genuine” erectile dysfunction drugs, and sold the drugs in person or shipped them to customers who responded to the advertisements.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Michael G. Tierney is prosecuting the case.
If convicted, the defendants each face a maximum statutory penalty of 10 years in prison and a $2 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Sacramento Woman Found Guilty in Mortgage Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — After a nine-day trial, a federal jury found Anna Sorokina Kuzmenko, 33, of Sacramento, guilty today of two counts of wire fraud in a mortgage fraud scheme, United States Attorney Benjamin B. Wagner announced. The trial was held before United States District Judge John A. Mendez.
According to court documents and evidence presented at trial, in February of 2007 Kuzmenko served as a straw buyer for a house in Carmichael. She applied for two loans to finance the entire purchase, and falsely represented that she was an orthodontist making $36,000 per month, had $42,000 in her bank account, was a United States citizen, and would live in the house she was purchasing. In fact, evidence at trial showed that Kuzmenko was not an orthodontist, declared only $13,000 in income for 2006 and none for 2007, had little to no money in her bank account, was not a citizen, and never lived in the house she purchased.
The evidence also showed that although the bank was told the sales price was $1 million, the seller had agreed to receive only approximately $800,000 from the transaction and to give the remaining money back to the scheme participants. Bank records showed that Kuzmenko’s husband and other family members received almost $177,000 through the scheme. Additionally, two of Kuzmenko’s family members received approximately $25,000 in commission payments based on the fraudulently procured loans. Kuzmenko defaulted on the mortgages for the Carmichael house in September 2007 and the property was foreclosed upon by April 7, 2008.
"Mortgage fraud cases can be very challenging, but this office has developed considerable expertise in prosecuting them,” stated U.S. Attorney Wagner. “We are pleased that the jury held Ms. Kuzmenko accountable for her crime, and we will continue our efforts to hold accountable those who enriched themselves through fraud, and who contributed to the financial meltdown that hit our communities so hard."
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 Lee S. Bickley and Todd A. Pickles are prosecuting the case.
Kuzmenko is scheduled to be sentenced by Judge Mendez on December 9, 2014. She faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Six Sacramento-Area Residents Indicted for Trafficking in Methamphetamine and HeroinRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 17-count indictment today against Kenneth Tam, 53; Gerald Osborne, 56; Sherlynn Charles, 52; Marco Antonio Borja, 38; Adalberto Valenzuela-Ruiz, 30; and Nelson Gutierrez, 26, charging them with conspiracy to distribute and to possess with the intent to distribute methamphetamine and heroin, and possession and distribution of methamphetamine and heroin, United States Attorney Benjamin B. Wagner announced.
According to court documents, in January 2014, a seven-month investigation began after law enforcement received reports that Tam was trafficking large amounts of methamphetamine and heroin throughout Sacramento, Yolo, and El Dorado Counties. Tam acquired large amounts of methamphetamine from Borja, Valenzuela-Ruiz, and Gutierrez, as well as heroin from other sources, and used sub-dealers, including Osborne and Charles, to distribute those drugs on his behalf. Through controlled purchases, searches, and other law enforcement activity, investigators seized over nine pounds of methamphetamine and nearly two pounds of heroin.
This case is the product of an investigation by the Drug Enforcement Administration. Assistant United States Attorney Michael D. McCoy is prosecuting the case.
If convicted, Kenneth Tam and Gerald Osborne face sentences of 20 years to life in prison and a $20 million fine. The four remaining defendants each face 10 years to 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.
Indictment for Growing over 22,000 Marijuana Plants in Lassen National ForestRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment today charging Mexican national Christian Rubio with conspiracy to cultivate marijuana, cultivation of marijuana, and depredation of public lands and resources, U.S. Attorney Benjamin B. Wagner announced.
According to court documents, on August 14, 2014, law enforcement agents entered a marijuana cultivation site in the Lassen National Forest and located more than 22,000 marijuana plants and over one ton of processed marijuana. Rubio was arrested after at the site. The marijuana cultivation caused significant damage to the land and natural resources of the Lassen National Forest.
This case is the product of an investigation by the U.S. Forest Service and the Tehama County Sheriff’s Office. Assistant U.S. Attorney Olusere Olowoyeye is prosecuting the case.
The sentence for the conspiracy charge is five to 40 years in prison and a $5 million fine. The sentence for the manufacture of marijuana charges is up to 20 years in prison and a $1 million fine. The sentence for depredation of public lands and resources charge is up to 10 years in prison and a $250,000 fine. 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.
Four Indicted for Cultivation in Shasta-Trinity National ForestRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment today, charging four defendants with conspiracy to cultivate marijuana, cultivation of marijuana, and depredation of public lands and resources, U.S. Attorney Benjamin B. Wagner announced.
According to court documents, Arturo Alcazar-Tapia, 30; Isidro Alcazar-Tapia, 25; Victor Manuel Alvarez-Contreras, 19; and Ricky Martin Huerta, 20, all of Eureka, conspired together to grow marijuana at two sites in the Shasta-Trinity National Forest in Trinity County. The marijuana was then packaged for distribution at a house in Eureka.
According to court documents, on August 4, 2014, agents executed a search warrant at the defendants’ home in Eureka. They found 33 pounds of processed marijuana divided into one‑pound packages and more than $6,000 in cash. The next two days the agents searched two marijuana cultivation sites in the Shasta-Trinity National Forest: one near Big French Creek and one near Hobo Gulch Road. Approximately 7,980 marijuana plants were eradicated from the first site and 13,642 marijuana plants at the next. The marijuana cultivation caused significant damage to the land and natural resources of the National Forest, an area that provides habitat for several threatened and endangered animal species.
This case is the product of an investigation by the U.S. Forest Service, the Humboldt County Drug Task Force, North State Marijuana Team, and the Trinity County Sheriff’s Office. Assistant U.S. Attorney Christiaan Highsmith is prosecuting the case.
The sentence for the conspiracy charge is five to 40 years in prison and a $5 million fine. The sentence for the manufacture of marijuana charges is up to 20 years in prison and a $1 million fine. The sentence for depredation of public lands and resources charge is up to 10 years in prison and a $250,000 fine. 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.
Former Assistant Manager at Yosemite Area Hotel Indicted for Wire Fraud, Aggravated Identity Theft, and TheftRead the Press Release
FRESNO, Calif. — A federal grand jury returned a six-count indictment today against Jason Wilson, 34, formerly of Yosemite, charging him with wire fraud, aggravated identity theft, and taking property from Yosemite Lodge, in Yosemite National Park, United States Attorney Benjamin B. Wagner announced.
According to court documents, between October 2011 and December 2012, Wilson manipulated approximately 50 reservations, and took approximately $87,800 in funds to which he was not entitled while assistant manager at Yosemite Lodge, a privately owned hotel located in Yosemite National Park.
According to the indictment, when guests of the lodge checked out after paying for their stay, Wilson would cause the lodge to refund the charges sometimes fabricating reasons for the refund, such as there were mice or bed bugs in the room. Rather than credit the guest’s credit card, however, Wilson directed the credit to his own personal debit card or his wife’s. In other transactions, Wilson reversed a “did not appear” charge if a guest did not cancel the reservation and did not appear for the reservation. After the guest’s credit card was charged for the non-appearance, Wilson reversed the charge, but had the credit deposited into his own account and not the guest’s.
This case is the product of an investigation by National Park Service’s Investigative Services Branch. Assistant United States Attorney Mia A. Giacomazzi is prosecuting the case.
If convicted of aggravated identity theft, Wilson faces a mandatory sentence of two years in prison. If convicted of wire fraud or theft in a special territory, Wilson faces five to 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, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Four Plead Guilty to Child Exploitation Offenses in FresnoRead the Press Release
FRESNO, Calif. — Four men have pleaded guilty to child exploitation offenses in separate cases in federal court this week, U.S. Attorney Benjamin B. Wagner announced.
Las Vegas Attorney Admitted He Traveled to Bakersfield to Find Minor Victims
Charles Max Pollock, 43, of Las Vegas, pleaded guilty today to two counts of travel with intent to engage in illicit sexual conduct. In August 2013, he made two trips from Las Vegas to Bakersfield and rented a hotel room. He encouraged minors to engage in sexually explicit conduct and engaged in at least one illegal sexual act with one minor victim. Pollock is licensed to practice law in Nevada and California. He is scheduled to be sentenced on November 17, 2014, by U.S. District Judge Lawrence J. O’Neill. Pollock faces a maximum sentence of 30 years in prison, a $250,000 fine, and a lifetime term of supervised release.This case is the product of an investigation by the Federal Bureau of Investigation and the Bakersfield Police Department. Assistant U.S. Attorney David Gappa is prosecuting the case. Case 1:14-cr-139 LJO
Defendant Arrested in Mexico After Anonymous Tip
Michael David Wilson, 30, of Delano, pleaded guilty today to one count of receipt and distribution of child pornography. An indictment against Wilson was filed on July 25, 2013, and a warrant was issued for his arrest. He is a U.S. citizen and was featured on an Immigration and Customs Enforcement (ICE) Operation Predator App as wanted for the outstanding warrant. Someone in Mexico provided an anonymous tip that Wilson had been living in Mexicali, Mexico. He was arrested in Mexicali on April 2, 2014, and turned over by Mexican immigration authorities to Homeland Security Investigation agents in Calexico. He is scheduled to be sentenced on December 1, 2014, by Senior U.S. District Judge Anthony W. Ishii. Wilson faces a maximum sentence of 20 years prison, a $250,000 fine, and a lifetime term of supervised release.This case is the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney David Gappa is prosecuting the case. Case 1:13-cr-00293 AWI
Fresno Man Pleads Guilty to Receiving and Distributing Child Pornography
Mathew Shawn Broadway, 31, of Fresno, pleaded guilty today to one count of receipt and distribution of child pornography. Several of the more than 600 images depicted prepubescent minors. He is scheduled to be sentenced by Judge O’Neill on November 17, 2014. Broadway faces up to 20 years in prison, with a mandatory minimum sentence of five years, a $250,000 fine, and up to a lifetime of supervised release. This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Central Valley Internet Crimes Against Children taskforce. Assistant U.S. Attorneys Megan A. S. Richards and Christopher D. Baker are prosecuting the case. Case 1:13-cr-268 LJOKern County Man Pleads Guilty to Possessing Child Pornography
Richard Leroy James, 50, of Caliente, pleaded guilty on Monday to one count of possession of child pornography. He admitted that he had received the images via the Internet. Several of the more than 600 images depicted prepubescent minors. James is scheduled to be sentenced on November 3, 2014, before Judge Ishii. James faces a maximum sentence of 20 years in prison, a $250,000 fine, and a lifetime term of supervised release. Assistant U.S. Attorney David Gappa is prosecuting the case. Case 1:13-cr-348 AWIFor each case, the actual sentence will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
These cases were 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.U.S. Citizen Extradited from the Netherlands Sentenced to 35 Years in Prison for Sexual Exploitation of A MinorRead the Press Release
FRESNO, Calif. — A U.S. citizen living in Amsterdam, Netherlands, was sentenced today to serve 35 years in prison for sexually exploiting a minor living in California and producing images of that abuse.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Benjamin B. Wagner for the Eastern District of California and Acting Assistant Director in Charge Timothy Gallagher of the FBI’s Washington Field Office made the announcement.
Christopher David Robinette, 44, pleaded guilty on April 21, 2014, to eight counts of sexual exploitation of a minor and one count of transporting a minor in interstate or foreign commerce for purposes of engaging in criminal sexual activity. According to court documents, between September 2004 and August 2006, Robinette traveled to Fresno, California, to sexually exploit a minor and produce digital still and video images of the abuse. The sexual abuse took place in California, including the Fresno area, as well as in Nevada, Mexico and Costa Rica. Robinette’s crimes were detected shortly after he uploaded images of child pornography, including images he produced, to a Microsoft SkyDrive account. Robinette was extradited from the Netherlands to face charges in the Eastern District of California.
At sentencing before Senior U.S. District Judge Anthony W. Ishii of the Eastern District of California, Robinette was ordered to serve a lifetime term of supervised release, during which his access to computers, the Internet and minors will be restricted, and he will be obligated to register as a sex offender.
“Protecting the most vulnerable Americans is a national Department of Justice priority,” said U.S. Attorney Wagner. “None are as vulnerable as our children, and this office will continue to pursue those who abuse and exploit them even if that pursuit takes us to other continents. The harshest penalties are reserved for the most severe criminal conduct, and Mr. Robinette’s conduct fully warranted the lengthy prison sentence imposed today.”
“Robinette’s sentence ensures that he cannot victimize another child, but no sentence can erase the crimes that have occurred or restore his victim’s stolen innocence. No child should ever be victimized by such abuse and exploitation,” said Special Agent in Charge Monica M. Miller of the FBI’s Sacramento Field Office. “We thank all of our law enforcement partners including the Fresno Police Department, a member of the Fresno Child Exploitation Task Force, for their assistance with this investigation and continued partnership.”This case was investigated by the FBI’s Washington Field Office, FBI’s Sacramento Division, and FBI in The Hague, Netherlands, with assistance from the Korps Landelijke Politie Diensten (Dutch National Police), the Amsterdam Amstelland Police Department (Amsterdam local police); and the Fresno Police Department. The National Center for Missing & Exploited Children assisted in coordinating information for a law enforcement response. The case was prosecuted by Trial Attorney Maureen Cain of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney David Gappa of the Eastern District of California.
The U.S. Department of Justice’s Office of International Affairs and CEOS, as well as the Dutch Ministry of Security and Justice, assisted in coordinating Robinette’s extradition to Fresno. The U.S. Marshals Service returned Robinette to Fresno, and he has been detained as a flight risk and danger to the community since his initial court appearance on December 26, 2012.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Kern County Man Sentenced for Conspiracy to Distribute 17 Pounds of MethamphetamineRead the Press Release
FRESNO, Calif. —Jorge Guevara, 35, of Arvin, was sentenced today by United States District Judge Lawrence J. O'Neill to six years and eight months in prison for a conspiracy to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.
According to court documents, Guevara attempted to sell 17 pounds of methamphetamine to an undercover Kern County Sheriff’s Deputy. On June 26, 2013, Guevara and co-defendant Jerardo Villareal met with the undercover deputy in the parking lot of a fast food restaurant in Bakersfield to complete the sale of drugs. Upon their arrest, 17 pounds of methamphetamine was found hidden in the vehicle that the defendants were driving.
On May 30, 2014, Villareal pleaded guilty to the conspiracy to distribute and possess methamphetamine with the intent to distribute. He is scheduled to be sentenced on September 22, 2014. He faces a sentence of five to 40 years in prison and up to a $5 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.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Kern County Sheriff’s Department and the Southern Tri-County High Intensity Drug Trafficking Area Task Force. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
Fresno Woman Sentenced to Prison for Stealing More Than $113,000 in Social Security BenefitsRead the Press Release
\FRESNO, Calif. — Ernedina Madrigal, 78, of Fresno, aka Mary Louise Madrigal, was sentenced today by Senior U.S. District Judge Anthony W. Ishii to 10 months in prison, to be followed by three years of supervised release, for stealing money from the Social Security Administration, United States Attorney Benjamin B. Wagner announced. Madrigal also was ordered to pay $113,435 in restitution to the Social Security Administration.
According to court documents, in September 1996, Madrigal, using a fraudulently obtained social security number in her sister’s name, applied for and began receiving social security benefits. At that time, Madrigal already had applied for and was receiving social security benefits under her own name and legitimate social security number. Over a 16-year period, Madrigal unlawfully received approximately $113,000 in social security benefits under the illicit social security number.
This case was the product of an investigation by the Social Security Administration, Office of Inspector General. Assistant U.S. Attorneys Christopher Baker and Patrick Delahunty prosecuted the case.
Correctional Officer Pleads Guilty to Conspiracy to Smuggle Heroin, Methamphetamine and Other Contraband into Taft Correctional InstitutionRead the Press Release
FRESNO, Calif. — Correctional officer Ramon Cano, 28, of Bakersfield, pleaded guilty today to a conspiracy to provide and possess contraband in prison, United States Attorney Benjamin B. Wagner announced.
According to court documents, between November 2013 and February 27, 2014, while working at the Taft Federal Correctional Institution, Cano conspired with inmate Gerardo Alvarez-Montanez, 32, to smuggle cellphones, cash, alcohol and controlled substances into the federal prison in return for cash.
Cano is scheduled to be sentenced by United States District Judge Anthony W. Ishii on December 15, 2014. On June 23, 2014, Montanez pleaded guilty to a conspiracy to provide and possess contraband in prison. He is scheduled to be sentenced on September 15, 2014.
Both defendants face 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.
This case is the product of an investigation by the Federal Bureau of Investigation and the U.S. Department of Justice Office of the Inspector General. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
Bakersfield Marijuana Store Worker Pleads GuiltyRead the Press Release
FRESNO, Calif. —Gustavo Angel Salinas, 26, of Bakersfield, pleaded guilty today to conspiring to manufacture, to distribute, and to possess with the intent to distribute marijuana, United States Attorney Benjamin B. Wagner announced today.
According to court documents and proceedings, Salinas worked as a “bud-tender” for ANP Collective in Bakersfield. The store came to the attention of Bakersfield police officers when they responded to an unrelated complaint. The officers found evidence of an indoor marijuana cultivation operation and DEA agents responded with a search warrant. During the search, agents seized 170 marijuana plants, 25 pounds of processed marijuana, a 12 gauge shotgun, and $68,173 in cash.
Salinas is scheduled to be sentenced by United States District Judge Anthony W. Ishii on November 3, 2014. Salinas faces a maximum term of 20 years in prison and a fine of up to $1 million. 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. Salinas was previously ordered and remains detained pending sentencing.
The case was investigated by the U.S. Drug Enforcement Administration and the Bakersfield Police Department. Assistant United States Attorney Karen A. Escobar is prosecuting this case.
Visalia Man Indicted for Sex Trafficking of MinorsRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Tyrell Richmond, 31, of Visalia, charging him with three counts of sex trafficking of a minor by force, fraud and coercion, and one count of being a felon in possession of a firearm, United States Attorney Benjamin B. Wagner announced.
According to the criminal complaint, on June 21, 2014, FBI’s Fresno Child Exploitation Task Force and members of the Fresno Police Department’s Vice Unit conducted undercover operations targeting prostitutes who appeared to be underage. During the investigation, they detained three 16-year-old girls, all of whom were runaways, at a motel in Fresno. Further investigation revealed that Richmond had prostituted the girls for about one week, first in Visalia and then in Fresno. The girls were required to turn over to Richmond all money they earned and were not permitted to leave the motel room, other than to get ice.
Richmond is also charged with possession of a firearm by a felon. According to the indictment, he has three prior felony convictions.
This case is the product of an investigation by the Federal Bureau of Investigation, the Visalia Police Department, and the Fresno Police Department. Assistant United States Attorney Michael Frye is prosecuting the case.
Richmond is currently in federal custody. If convicted, he faces a minimum of 15 years and up to life in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Stockton Woman Sentenced to over 4 Years in Prison for Credit Application Fraud, Aggravated Identity Theft and Firearm ChargesRead the Press Release
SACRAMENTO, Calif. — Alisha Terese Rodriguez, 36, of Stockton, was sentenced on Thursday to four and a half years in prison for credit application fraud, identity theft, and for being a felon in possession of a firearm, United States Attorney Benjamin B. Wagner announced. U.S. District Court Judge Kimberly J. Mueller ordered Rodriguez to pay $60,010 in restitution.
This case was the product of an investigation by the Stockton Office of the United States Postal Inspection Service. Assistant United States Attorney Michelle Rodriguez prosecuted the case.
According to court documents, Rodriguez used stolen identity and credit information of victims to obtain unauthorized lines of credit. Subsequently, Rodriguez added her name to the unauthorized victim accounts and obtained credit cards to access the lines of credit. Rodriguez charged over $60,000 to the unauthorized lines of credit. She sustained the unauthorized lines of credit by paying monthly bills for the lines of credit with funds from other victims’ bank accounts. On May 9, 2013, federal search warrants were executed on Rodriguez's residence, her parents' residence, and her vehicles. Law enforcement found a loaded .40-caliber stolen pistol in Rodriguez’s handbag. Law enforcement recovered evidence that Rodriguez possessed personal and financial information for more than 300 victims.
Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service, San Francisco Division stated: “We work closely with the U.S. Attorney’s Office and our partners in law enforcement to arrest and prosecute those who use the mail to engage in complex fraud schemes. With the support of local law enforcement and the U.S. Attorney’s Office, Postal Inspectors are focusing investigative efforts on these critical investigations."
Oregon Couple Indicted for Trafficking Methamphetamine and CocaineRead the Press Release
FRESNO, Calif. — Lucio Cruz-Sanchez, 35, resident of Portland, Oregon and his wife Jamie Lyne Sanchez 23, of Gresham, Oregon, were charged today with conspiracy to distribute and possession with intent to distribute methamphetamine and cocaine and with possession with intent to distribute methamphetamine and cocaine, United States Attorney Benjamin B. Wagner announced.
The defendants were arrested on August 7, 2014, by a California Highway Patrol officer on northbound I-5 near the Buttonwillow exit. They possessed over 40 pounds of methamphetamine and over two pounds of cocaine and $2,233 cash.
This case is the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the California Highway Patrol. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
If convicted, Lucio Cruz-Sanchez faces a sentence of 10 years to life in prison, and Jamie Lyne Sanchez faces a sentence of five to 40 years in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.