Eastern District of California

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.

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.

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.

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.

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.

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.

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.

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.

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.

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, 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.

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.

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.

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.

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.

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.

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.

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.

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.

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, 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.

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.

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.

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.

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.

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 LJO

Kern 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 AWI

For 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.

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.

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, 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.

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.

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.

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.

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."

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.

SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Mexican national Alejandro Soto-Silva, 21, 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 July 30, 2014, United States Forest Service agents and Plumas County Sheriff’s deputies entered a large marijuana cultivation site on the Plumas National Forest near the Soda Creek drainage. Officers located more than 3,700 marijuana plants at the site. Soto-Silva was arrested after attempting to flee from approaching law enforcement. He is in custody. The marijuana cultivation caused significant damage to the land and natural resources of the Plumas National Forest. Law enforcement observed irrigation piping running from a water source to man-made reservoirs used to water the thousands of marijuana plants under cultivation. The cultivation site sits within an area that provides habitat for several threatened or endangered animals, including Delta smelt, Chinook salmon, and the California red-legged frog.

This case is the product of an investigation by the United States Forest Service and the Plumas County Sheriff’s Office. Assistant United States Attorney Christiaan Highsmith is prosecuting the case.

If convicted, Soto-Silva 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.

FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Mario Farias Pineda, 22, of Calistoga, charging him with possession of methamphetamine with intent to distribute it, United States Attorney Benjamin B. Wagner announced.

According to court documents, Pineda was driving northbound on California State Highway 99 when he was pulled over by Fresno County Sheriff’s deputies for talking on his cellphone. The deputies obtained permission to search his vehicle and found approximately 25 pounds of methamphetamine in a hidden compartment behind the rear passenger seat.

This case is the product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Fresno County Sheriff’s Office. Assistant United States Attorney Michael Frye is prosecuting the case.

If convicted, Pineda faces a statutory penalty of at least 10 years and up 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 defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Elise Elizabeth Perez, 42, of North Highlands, pleaded guilty today to four counts of bank fraud, one count of aggravated identity theft, and two counts of possession of stolen mail, United States Attorney Benjamin B. Wagner announced.

According to court documents, Perez admitted to using stolen IDs and checks to buy merchandise and make deposits into her own account. On April 20 and April 21, Perez used the driver’s license and checks stolen from one victim to make purchases. On May 7 and May 8, she deposited two forged checks into her own bank account. On May 30, 2014, a search warrant was executed at Perez’s residence and law enforcement found many items of stolen property, U.S. mail, and personal financial identification information of others.
This case is the product of an investigation by the Sacramento Office of the United States Postal Inspection Service with assistance from the Sacramento County Sheriff's Office. Assistant United States Attorney Michelle Rodriguez is prosecuting the case.

San Francisco Division Inspector in Charge Rafael Nunez of the United States Postal Inspection Service stated: “We are working closely with the U.S. Attorney's Office and our partners in law enforcement to ensure the U.S. Mail system is not used to facilitate criminal activity.”

Perez is scheduled to be sentenced by United States District Judge Lawrence K. Karlton on November 4, 2014. She faces up to 30 years in prison for bank fraud, up to five years in prison for possession of stolen mail, and a consecutive mandatory minimum sentence of two years in prison 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.

FRESNO, Calif. — Rene Garcia, 47, of Sanger, will be arraigned in federal court today, charged with stealing government property, United States Attorney Benjamin B. Wagner announced.

According to the indictment, on 12 separate occasions between September 2012 and March 2013, Garcia stole vehicle batteries from U.S. Postal Service mail trucks parked at the U.S. Post Office in Selma. In total, Garcia stole approximately 51 batteries.

This case is the product of an investigation by the U.S. Postal Inspection Service. Assistant United States Attorney Christopher Baker is prosecuting the case.

If convicted of the charges, Garcia faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — United States District Judge Lawrence J. O’Neill sentenced Alan Kendrick, 47, of Escalon, to 30 years in prison, to be followed by a lifetime term of supervised release, for his conviction of one count of receiving and distributing child pornography, United States Attorney Benjamin B. Wagner announced.

According to a criminal complaint, Google reported to the National Center for Missing & Exploited Children (NCMEC) that on December 10, 2013, six images of suspected child pornography were associated with a Google account. NCMEC referred the matter to law enforcement, and a detective with the Ceres Police Department discovered that the Google account had been accessed from residences in Modesto and Escalon. Kendrick was a registered sex offender on GPS location monitoring, and GPS records confirmed that he was at the residences when the accounts had been accessed. He admitted in a plea agreement that between June and December 2013, he received and distributed images of child pornography and also admitted that he had engaged in a pattern of abuse or exploitation of a minor.

“This case is another example of the successful partnership among the corporate, nonprofit, and law enforcement community,” said Supervisory Special Agent Todd Irinaga of the Sacramento FBI’s Modesto office. “The report of Kendrick’s illicit activity, even though he was still on parole, was immediately routed to the Sacramento Valley High Tech Crimes Task Force. The team, in conjunction with California Department of Corrections and Rehabilitation and with significant assistance from the Ceres Police Department’s High Tech Crime unit, investigated this horrible crime and ensured successful prosecution of Kendrick for his crime that victimized innocent children.”

At Kendrick’s first initial appearance in federal court on March 11, 2014, he was ordered detained as a danger to the community and a flight risk. He pleaded guilty on May 27, 2014.

This case was the result of an investigation by the Ceres Police Department and the Modesto FBI Office with assistance from the California Department of Corrections and Rehabilitation Division of Adult Parole Operations. Assistant United States Attorney David Gappa prosecuted the case.

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

FRESNO, Calif. —Ana Lilia Angulo, aka Ana Lilia Ochoa Angulo, 30, of San Jose, was sentenced today to three years and five months in prison, to be followed by five years of supervised release, for conspiring to distribute and to possess with intent to distribute 8.8 pounds of heroin, United States Attorney Benjamin B. Wagner announced.

According to court documents, Fresno County sheriff detectives stopped Angulo for a traffic violation while she was driving a vehicle northbound on Interstate 5. During the stop, the detectives found several packages of heroin weighing 8.8 pounds behind the arm rest panel of the rear passenger seat near where Angulo’s infant child was sitting in a car seat. The heroin had a wholesale value of approximately $88,000 to $96,000. Angulo admitted that she was paid $2,500 per trip to transport the drug and that she was on her third trip.

This case was the product of an investigation by the U.S. Drug Enforcement Administration and the Fresno County Sheriff’s Office. Assistant United States Attorney Karen Escobar prosecuted the case.

SACRAMENTO, Calif. — Shanika Brewer, 35, of Tracy, was sentenced today by Chief United States District Judge Morrison C. England Jr. to two and a half years in prison for wire fraud and embezzlement from a health care program, United States Attorney Benjamin B. Wagner announced. Judge England ordered her to begin her sentence on October 23, 2014. He ordered her to pay $1,248,770 in restitution.

According to court documents, from 2008 until 2011, Brewer worked in the accounts payable department of a Walnut Creek company called Agilent Technologies Inc. Brewer entered false information into the company’s accounting system that caused other departments to issue checks to vendors who provided personal goods and services to Brewer. Brewer took the checks home and mailed them out to pay her student loans, mortgage payments, and home improvements. She also used company funds to pay for her children’s school tuition and to deposit into her personal bank account. Brewer caused more than $1 million worth of checks to be issued for her own benefit.

In December 2012, Brewer was hired by Health Plan of San Joaquin, a publicly sponsored managed care plan administering state-funded Medi-Cal benefits for over 250,000 residents in San Joaquin and Stanislaus Counties. As the assistant controller, Brewer began manufacturing false invoices upon which she forged the signatures of other employees. After submitting the invoices, she obtained checks that she took home to use for her own benefit. Brewer caused approximately $100,000 in losses and expenses to Health Plan.

“Shanika Brewer embezzled from two employers, including a health care program, to fund a lavish lifestyle well beyond her means,” said U.S. Attorney Wagner. “Her conviction and this sentence are the result of excellent cooperation between San Joaquin County and the FBI.”

“Brewer abused her position as a trusted employee to craft an elaborate scheme to embezzle over $800,000 over the course of five years. The money was used to support a lifestyle for her and her family that was well beyond her legitimate earnings,” says Special Agent in Charge Monica Miller of the Sacramento Field office of the Federal Bureau of Investigation.

San Joaquin County District Attorney James P. Willett stated: “In this case, a County employee abused the trust we placed in her. As the County auditor was identifying red flags in the false invoices Brewer submitted, Brewer’s credit card company, First Premier Bank of South Dakota, alerted us that County checks were paying Brewer’s personal credit card bill. San Joaquin County District Attorney’s investigators on the case identified similar embezzlement from her immediate past employer. This federal prosecution followed, and we are gratified for the immediate response of the FBI and the US Attorney’s Office in coordination with our investigation of this multi-jurisdictional case.”

This case was the product of an investigation by the San Joaquin County District Attorney Investigations Bureau, IMPACT Unit and the Federal Bureau of Investigation. Assistant United States Attorney Jean M. Hobler prosecuted the case. The Financial Litigation Unit of the U.S. Attorney’s Office is taking action to recover funds for Brewer’s victims.

This case was done in connection with the President’s Financial Fraud Enforcement Task Force, 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. For more information on the task force, please visit www.StopFraud.gov.

SACRAMENTO, Calif. — United States Attorney Benjamin B. Wagner announces the following three indictments, a guilty plea, and a sentencing in cases involving the exploitation of children.

Sacramento Man Indicted for Production of Child Pornography and Enticement of a Minor

George Hristovski, 55, of Sacramento, was indicted today for attempted production of child pornography and attempted enticement of a minor. According to court documents, Hristovski posted an online advertisement seeking a mother who was willing to introduce him to their daughter for the purpose of having sex with the girl. He was arrested on August 4, 2014, after making explicit demands for pornographic images of a 13-year-old girl that he believed he was communicating with, and for attempting to arrange a meeting with the girl for the purpose of having sex with her.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Kyle Reardon and Michele M. Beckwith are prosecuting the case. If convicted, Hristovski faces 10 years to life in prison and a $250,000 fine.

Paradise Man Indicted for Production of Child Pornography and Enticement of a Minor

A federal grand jury returned a 10-count indictment today against Jordan James Kirby, 22, of Paradise, charging him with production of child pornography and enticement of a minor. This case is the product of an investigation by the Federal Bureau of Investigation and the Paradise Police Department. Assistant U.S. Attorneys Kyle Reardon and Sherry Haus are prosecuting the case.

Sacramento Man Indicted for Possessing Child Pornography

A federal grand jury returned an indictment today against Christopher Raymond Smithson, 34, of Sacramento, charging him with possession of child pornography. According to court documents, in June 2014, Smithson possessed visual depictions of minors engaged in sexually explicit conduct. Titles of the visual depictions referred to children as young as four years old. If convicted, Smithson faces a maximum statutory penalty of 10 years in prison and a $250,000 fine.

This case is the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Special Assistant U.S. Attorney Josh F. Sigal is prosecuting the case.

The charges in the above indictments are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

Sacramento Pimp Pleads Guilty to Sex Trafficking of a Minor (No. 2:13-cr-030 JAM)

On Tuesday, August 12, 2014, Keon Jamar Nunnelly, 30, of Sacramento, pleaded guilty to sex trafficking of a minor. According to court documents, Nunnelly posted online prostitution ads for a 16-year-old girl in Sacramento and Anaheim. He managed the victim by providing directions on when and where she should work, transporting her to hotels, and providing protection and security. The defendant knew that she was a minor and would be caused to engage in commercial sex acts. Nunnelly is scheduled to be sentenced by U.S. District Judge John A. Mendez on November 18, 2014. Nunnelly faces a maximum statutory penalty of not less than 10 years and up to life in prison and a $250,000 fine.

This case is the product of an investigation by the Federal Bureau of Investigation’s Innocence Lost Task Force. Assistant U.S. Attorney Kyle Reardon is prosecuting the case.

Any sentence in these cases 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.

Antelope Man Sentenced for Receiving Child Pornography (No. 2:12-CR-0417 TLN)

On Thursday, August 7, 2014, U.S. District Judge Troy L. Nunley sentenced Gerald Ratulowski, 69, of Antelope, to 14 years in prison for receiving child pornography. According to court documents, between June 2012, and September 2012, Ratulowski shared files of child pornography through an Internet file-sharing service. Several thousand images and videos of child pornography were found in his computer, including images of sadistic and masochistic conduct.

This case was the product of an investigation by the Sacramento Internet Crimes Against Children Task Force. Assistant U.S. Attorney Kyle Reardon prosecuted the case.

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 U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.

SACRAMENTO, Calif. - A federal grand jury indicted Brent Lee Newbold, 57, of Granite Bay, California, charging him wire fraud and money laundering, United States Attorney Benjamin B. Wagner announced today.

According to court documents, the defendant engaged in a fraud scheme centered on a business called Holy Cow.  Holy Cow produced a “green” cleaning product, which it marketed to stores such as WalMart, ACE Hardware, and Bed, Bath & Beyond.  Newbold was the former Chief Executive Officer of Holy Cow.  

The indictment alleges that to raise money from investors, Newbold made a variety of misrepresentations about the financial health of the company, including misrepresentations about the company’s debt levels and how invested funds would be used.  Contrary to his representations, Newbold regularly used investor funds to pay himself, his wife, his mortgage, and previous investors.  Ultimately, Newbold enticed one corporate investor, Spence Enterprises, and at least 14 other individual investors to give him money in connection with Holy Cow.  In December 2007, based on Newbold’s misrepresentations and false promises, Spence Enterprises bought Holy Cow.  Spence Enterprises believed it was buying a financially stable company when, in fact, it was not.

The indictment further alleges that after Spence Enterprises began funding Holy Cow to promote its growth, Newbold, without authorization, diverted approximately $1,000,000 of money from Holy Cow corporate accounts to himself, his wife, his mortgage company, and his previous lenders and investors.  After Newbold was confronted by Spence Enterprises about improperly diverting company money, Newbold opened a secret account at American River Bank.  The American River Bank Account was held in the name of Holy Cow, Inc., but Newbold was the sole signatory on the account, and the account statements were sent to his personal residence.  Newbold used the American River Bank Account to receive funds from undisclosed individual investors in Holy Cow. 

Finally, the indictment alleges that between July 2008 and January 2010, Newbold solicited approximately 14 individual investors.   Newbold represented to these investors that he was authorized to act on behalf of Holy Cow; he owned Holy Cow; he owned the majority of Holy Cow stock; Holy Cow was financially sound, stable and profitable; he could bind and obligate Holy Cow; and/or that investor money would be used for business purposes, such as working capital, fulfilling an order, or buying new product.  Contrary to his representations, Holy Cow was not financially stable.  In fact, Holy Cow had high debt levels as a result of the defendant’s investment fraud scheme and was not profitable.  Contrary to his representations, Newbold had no authority to bind or obligate Holy Cow, he did not own the company, and Newbold did not use all investor money for business purposes.  In some cases, Newbold provided individual investors with false Holy Cow stock certificates, false Holy Cow purchase order reports, and/or corporate promissory notes that falsely purported to bind Holy Cow and identified Newbold as an “Authorized Agent” of Holy Cow.  Contrary to his representations, Newbold regularly used investor money for personal purposes, including paying off prior lenders, paying down his mortgage, and paying himself and his wife.   By December 2009, Spence Enterprises put Holy Cow into bankruptcy as a result of the unauthorized and undisclosed debt Newbold was taking on in connection with Holy Cow.  The gross loss amount in this case exceeds three million dollars. 

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 Michael M. Beckwith is prosecuting the case.

With respect to the wire fraud, if convicted, the defendant faces a maximum sentence of 20 years in prison, a $250,000 fine, and a 3-year term of supervised release for each count of conviction.  With respect to the money laundering, the defendant faces a maximum sentence of 10 years in prison, a $250,000 fine, and a 3-year term of supervised release for each count of conviction.  The actual sentence, if convicted, will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.

The charges are only allegations and the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — — Oganes Serobyan, 41, a resident of Citrus Heights, California, was sentenced today by United States District Judge Troy L. Nunley to over four years in prison for wire fraud and manufacturing marijuana, United States Attorney Benjamin B. Wagner announced.

According to court documents, Serobyan established a sham business, Link & Work Holdings LLC, which purported to sell “e-books” online, but which, in fact, provided no goods or services.  Between November 2010 and May 2011, the company unlawfully made tens of thousands of unauthorized charges on American Express credit cards, which were ultimately credited to Link & Work Holdings’ bank account.  Bank surveillance footage showed the defendant making cash withdrawals from this account.  Over 26,000 American Express account numbers were unlawfully charged during the scheme, with approximately $392,000 in fraudulent charges.  When officers searched Serobyan’s home, they discovered an active marijuana grow on his property with plants in various stages of growth, in addition to dozens of one-gram vials of hashish oil.

Judge Nunley sentenced Serobyan to a total term of imprisonment of 51 months, and also ordered him to pay restitution to American Express in the amount of $392,519.21. 

This case was the product of an investigation by the United States Secret Service and the Sacramento Valley Financial Crimes Task Force. Assistant United States Attorney Michele Beckwith prosecuted the case.

The court ordered the defendant to surrender to the Bureau of Prisons on September 25, 2014. 

SACRAMENTO, Calif. — The Bureau of Justice Assistance, an agency of the United States Department of Justice, awarded an Edward Byrne Memorial Justice Assistance Grant (JAG) to the City of Stockton to prevent and control crime, United States Attorney Benjamin B. Wagner announced today.

The 2014 JAG grant award of $414,923 will fund the fourth year of the Firearms Reduction Consortium. The Consortium is a collaborative effort between San Joaquin County and the City of Stockton to reduce firearm violence.

The prevalence of illegal firearms within the City of Stockton, as well as throughout San Joaquin County, is a significant contributor to the increase in violent crime in the region. Efforts to combat violent crime will be coordinated between the Stockton Police Department, the San Joaquin County Sheriff's Office and the San Joaquin County Probation Department, and will include: • Special enforcement missions to be conducted four times each year; • Retention of an expert in firearms to provide ballistics identification services for guns and bullet casings recovered from crime scenes and during the enforcement missions; • The assignment by the District Attorney's Office of a prosecutor knowledgeable of the laws related to gun crimes; and
• Funding of additional computer software enhancements and staff training.

For more information about this grant, contact the Office of Justice Program's Office of Communications at (202) 307-0703.

The assistance provided by this grant complements an ongoing effort by the U.S. Department of Justice, including the U.S. Attorney's Office, FBI, ATF, DEA, and the U.S. Marshals Service, to work closely with the Stockton Police Department, San Joaquin County Sheriff, the District Attorney, and other agencies to reduce violent crime in the Stockton area.

SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Eric Gilberto Perez, 23, of Guatemala, and Daniel Gomez-Gonzalez, 32, of Mexico, charging them with conspiracy to manufacture marijuana and manufacture of marijuana, United States Attorney Benjamin B. Wagner announced.

According to court documents, on July 11, 2014, United States Forest Service agents and Tehama County Sheriff’s deputies raided a marijuana cultivation site near the North Fork Antelope Creek in Tehama County in the Lassen National Forest. Both defendants were arrested after attempting to flee from the cultivation site.  Law enforcement counted and eradicated a total of 5,287 marijuana plants from the cultivation site. The defendants are in custody.

This case was the product of an investigation by the United States Forest Service and the Tehama County Sheriff’s Office. Assistant United States Attorney Christiaan Highsmith is prosecuting the case.

If convicted, both Perez and Gomez-Gonzalez face a maximum statutory penalty of 20 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — Charity Brocchini, 40, of Sonora, has been charged with embezzling more than $42,000 from the Yosemite National Park Child Care Center, United States Attorney Benjamin B. Wagner announced. On Thursday, August 7, 2014, a federal grand jury in Fresno returned an indictment charging her with two counts of wire fraud and one count of embezzlement concerning program receiving federal funds.

According to the indictment, between 2005 and 2009, Brocchini was the director of the Yosemite National Park Child Care Center (YNPCCC) and the Yosemite Child Care Center, a nonprofit organization operating child care facilities in Yosemite Valley and El Portal. The indictment alleges that Brocchini embezzled $42,608 by paying herself extra paychecks, and using the YNPCCC’s funds to write checks to herself, pay her personal car and insurance payments, pay her outstanding debts and credit cards, and make personal purchases at retail stores.

This case is the product of an investigation by the National Park Service Investigative Services Branch and the United Sates Department of Health and Human Services Office of Inspector General. Assistant United States Attorney Mark J. McKeon is prosecuting the case.

Ivan Negroni, Special Agent in Charge for the U.S. Department of Health and Human Services San Francisco region state: “We will continue to work with the U.S. Attorney to root out all forms of waste, fraud and abuse in federal grant programs.”

If convicted, Brocchini faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — House of Oxford Inc., of New Jersey, and its officers agreed to forfeit to the United States more than $13.6 million in cash, property, jewelry, artwork, and luxury automobiles that were acquired with proceeds of the sale of tobacco products in California in a manner that evaded the payment of the required state excise tax, announced United States Attorney Benjamin B. Wagner and the Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Joseph M. Riehl.

California imposes an excise tax, which is set annually, on non-cigarette tobacco products known as “other tobacco products” (OTP). The 2014-15 rate is 28.95 percent. California law defines OTP as all forms of cigars, smoking tobacco, chewing tobacco, snuff, and any other items made of or containing at least 50 percent tobacco. A large percentage of the proceeds of the excise tax are used to fund California’s early childhood development program, First 5 California.

According to court documents filed in the civil settlement, House of Oxford helped other companies evade the California OTP excise tax by (1) shipping OTP to California, but falsely billing the sales to other states, (2) shipping OTP to states located near California knowing that it would be shipped into California without the tax being paid, and (3) by shipping to addresses in California that were not licensed to receive tobacco by the California Board of Equalization.

“Today’s forfeiture is the latest result of the collaborative effort of federal and state investigators and prosecutors into systematic tax evasion in the distribution of tobacco products in California,” said U.S. Attorney Wagner. “We have obtained criminal convictions of 23 persons in this effort. The $13.6 million forfeiture announced today, one of the largest civil forfeitures ever in this district, serves as a further warning to anyone who would be tempted to defraud the State of California.”

 “ATF is working diligently to investigate and disrupt tobacco traffickers. These investigations are arduous and require a long-term commitment from members of our task force and prosecution team,” stated ATF Special Agent in Charge Riehl.

“This recovering of tax dollars lost to the underground economy is crucial to leveling the playing field for California businesses. Tax fraud hurts all Californians, especially those who rely on the vital programs these taxes fund,” said Board of Equalization Chairman Jerome E. Horton.

This case is the product of a series of investigations by a specialized task force composed of the U.S. Attorney’s Office, the California Board of Equalization, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the California Attorney General’s office. For the last several years, these offices have supported a task force dedicated to combating the systemic problem of tobacco excise tax evasion in California. The BOE estimates the state will lose approximately $87.8 million in excise taxes for 2014 due to untaxed distributions of non-cigarette tobacco products. This is down from the BOE’s 2007 estimate of $94 million in annual losses, thanks in part to the enforcement efforts of this task force. Assistant United States Attorneys Michael D. Anderson and Kevin Khasigian prosecuted the case.

FRESNO, Calif. —Senior United States District Judge Anthony W. Ishii sentenced Curtis Benjamin Hults, 63, of Twain Harte, to 19 years and seven months in prison, to be followed by a lifetime term of supervised release, for four counts of sexual exploitation of a minor and one count of receipt of child pornography, United States Attorney Benjamin B. Wagner announced.

Hults admitted in a plea agreement that between May 1, 2008, and October 8, 2012, he created images of four different minors engaging in sexually explicit conduct, stored them on a digital camera, and then transferred them to a computer. Hults also downloaded from the Internet more than 600 images of minors engaged in sexually explicit conduct, some of whom were prepubescent and some of the images depicted violence.

Hults has been in custody as a danger to the community and flight risk since his initial court appearance on October 17, 2013. He pleaded guilty on June 23, 2014.

This case was the result of an investigation by the FBI, the Visalia Police Department, the Tulare County District Attorney’s Office, and the Tuolumne County Sheriff’s Office. Assistant United States Attorney David Gappa prosecuted the case.

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

SACRAMENTO, Calif. — Anthony Nail, 26, of Orangevale, was sentenced on Friday by United States District Judge Garland E. Burrell Jr. to five years and 10 months in prison for receipt and distribution of child pornography, United States Attorney Benjamin B. Wagner announced.

According to court documents, between December 2011 and April 2012, Nail used a file sharing program to download and share child pornography over the Internet.  Nail has been in custody since he pleaded guilty on March 21, 2014.

This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Matthew G. Morris prosecuted the case.

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