Eastern District of California
Press releases recorded for this federal judicial district.
Foreign National Indicted for Growing 3,724 Marijuana Plants in the Plumas National ForestRead the Press Release
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.
25 Pounds of Methamphetamine Discovered in Vehicle’s Hidden CompartmentRead the Press Release
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.
North Highlands Woman Pleads Guilty to Aggravated Identity Theft, Bank Fraud, and Possession of Stolen U.S. MailRead the Press Release
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.
Sanger Man Charged with Stealing Batteries from U.S. Mail TrucksRead the Press Release
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.
Google Tip Leads to 30-Year Prison SentenceRead the Press Release
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.
Drug Courier Found in Fresno County with over 8 Pounds of Heroin SentencedRead the Press Release
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.
Tracy Woman Sentenced for Embezzling from Health Plan of San Joaquin and Agilent TechnologiesRead the Press Release
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.
Recent Child Exploitation Cases: 3 Indictments, One Guilty Plea and One 14-Year SentenceRead the Press Release
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 MinorA 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.
Granite Bay Man Indicted on Charges of Wire Fraud and Money LaunderingRead the Press Release
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.
Citrus Heights Resident Sentenced to Prison for Credit Card Fraud and Manufacturing MarijuanaRead the Press Release
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.
U.S. Department of Justice Awards City of Stockton A $414,923 Grant to Continue Funding A County-Wide Firearms Reduction ConsortiumRead the Press Release
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.Two Foreign Nationals Indicted for Growing 5,287 Marijuana Plants in the Lassen National ForestRead the Press Release
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.
Former Director of Yosemite National Park Child Care Center Charged with EmbezzlementRead the Press Release
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.
$13.6 Million Forfeiture Settlement in Tobacco Industry Tax Evasion CaseRead the Press Release
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.
Tuolumne County Man Sentenced to 19 Years and 7 Months in Prison for Sexual Exploitation of MinorsRead the Press Release
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.
Orangevale Man Sentenced for Child Pornography CrimeRead the Press Release
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.
Madera Man Sentenced TO 11 Years AND 3 Months IN Prison for Child PornographyRead the Press Release
FRESNO, Calif. — United States District Judge Lawrence J. O’Neill sentenced Aaron Lewis Gaudinier, 50, of Madera, to 11 years and three months in prison, to be followed by 15 years of supervised release, for receipt and distribution of child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, between December 14, 2011, and February 4, 2012, Gaudinier received and distributed more than 600 images of minors engaged in sexually explicit conduct. Some images were of prepubescent minors and some depicted violence. Gaudinier has been detained as a danger to the community and flight risk since his initial appearance on February 15, 2012; he pleaded guilty on May 5, 2014.
“Those who trade child pornography over the Internet and use peer-to-peer file sharing technology, mistakenly believe cyberspace shields them from detection by law enforcement,” said Nick Annan, acting special agent in charge for Homeland Security Investigations in San Francisco. “However, as this sentence makes clear, those who use the Internet to exploit children should be on notice, HSI, in collaboration with its state and local partners, is using every tool at its disposal to identify these online predators and bring them to justice - whether they are around the block or around the world.”
This case is the result of an investigation by the Central California Internet Crimes Against Children Task Force, specifically the Madera and Fresno County Sheriff’s Offices, the Tulare Police Department, and the Fresno office of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney David Gappa prosecuted the case.
It 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.
Guilty Plea in Madera County Marijuana GrowRead the Press Release
FRESNO, Calif. —Sokhang Nguon, 22, of Fresno, pleaded guilty today to cultivating marijuana, United States Attorney Benjamin B. Wagner announced.
According to court documents, Nguon and three others were arrested on August 16, 2012, when state and federal agents searched a rural property in Chowchilla. More than 2,000 marijuana plants and several firearms were seized.
Nguon’s three co-defendants have pleaded guilty and have already been sentenced: Youn Yen was sentenced to seven and a half years in prison; Mayo Martinez Murillo was sentenced to five years in prison; and Thorn Meas was sentenced to three years in prison.
This case is the product of an investigation by the Drug Enforcement Administration and the Madera Narcotics Enforcement Team (MADNET). Assistant United States Attorney Kevin Rooney is prosecuting the case.
Nguon has been in custody since his arrest and is scheduled to be sentenced by Judge Anthony W. Ishii on November 10, 2014. Nguon faces a mandatory minimum sentence of five years in prison and a maximum statutory penalty of 40 years in prison and 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.
Fresno Man Sentenced to Prison for Conspiring to Sell Counterfeit DVD Movies and Other MediaRead the Press Release
FRESNO, Calif. — Senior United States District Judge Anthony W. Ishii sentenced Jose Antonio Hernandez, 42, of Fresno, today to three years and four months in prison, for manufacturing and trafficking counterfeit CDs and DVDs, United States Attorney Benjamin B. Wagner announced.
On May 19, 2014, Hernandez pleaded guilty to conspiracy to commit criminal copyright infringement and traffic in counterfeit labels and counterfeit documentation and packaging.
According to court documents, from July to September 18, 2012, Hernandez was involved in an extensive scheme with other co-conspirators to store and distribute thousands of counterfeit DVD movies and audio CDs. Hernandez sold counterfeit movie DVDs and CDs, including some movies that had not yet been commercially distributed. Hernandez also admitted to manufacturing counterfeit DVD movies.
“As this sentence makes clear, Hernandez and criminals like him are a direct threat to the entertainment industry and to all of the hardworking people involved in the industry,” said Nick Annan, acting special agent in charge of HSI San Francisco. “Those involved in intellectual property theft don’t invest in product development; they don’t put a premium on product quality or safety. All they do is get rich at someone else’s expense. Intellectual property thieves should be aware that HSI and our law enforcement partners will use every available tool to keep them from profiting from the theft of others’ products, creativity, ideas and hard work.”
This case is the product of an extensive investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorneys Henry Z. Carbajal III and Patrick R. Delahunty are prosecuting the case.
Fresno Man Pleads Guilty to Shining Laser at CHP PlaneRead the Press Release
FRESNO, Calif. — Andrew Zarate, 20, of Fresno, pleaded guilty today to aiming a laser pointer at a California Highway Patrol airplane, Air 43, announced U.S. Attorney Benjamin B. Wagner and Monica Miller, Special Agent in Charge of the FBI’s Sacramento field office.
According to court documents, Air 43 was struck up to 50 times by a powerful green laser pointer. As a result, the pilot suffered temporary blindness and Air 43 was forced to break away from a burglary in progress at a Fresno middle school.
Zarate is scheduled to be sentenced before U.S. District Judge Lawrence J. O’Neill on November 3, 2014. Both men face a maximum prison term of five years and a fine of up to $250,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
In June, David Walter Fee, 22, of Fresno, pleaded guilty to the same offense and is scheduled to be sentenced on August 25, 2014.
This case was the product of an investigation by the FBI’s Fresno Office, California Highway Patrol, and Fresno Police Department. Assistant U.S. Attorneys Karen A. Escobar and Michael G. Tierney are prosecuting the case.
Former Managing Member of Financial Group Pleads Guilty to Defrauding Investors of at Least $1.7 MillionRead the Press Release
FRESNO, Calif. — Bonnie Lynn Recinos, aka Bonnie Farr, 54, of Mesa, Ariz., pleaded guilty today to conspiracy to commit mail and wire fraud, United States Attorney Benjamin B. Wagner announced.
According to court documents, from April 2006 until August 2009, Recinos and others solicited individuals to invest in various business and real estate projects, promising them a return of 3 to 5 percent. She assured the investors that their investment was secured with the assets of Farr and Associates and Farr Financial Group, of which she claimed to be “the managing member.”
The conspirators sent fraudulent statements showing the progress of the investments and the purported amounts of interest earned to date. Periodic payments were made to investors using money received from new investors. This was done to lure in new investors, to reassure existing investors their money was secure, and to keep investors from reporting to law enforcement.As a result of the scheme, Recinos obtained at least $1.7 million from investors, but instead of investing it, she used the money for her own business and personal expenses.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Henry Z. Carbajal III and Megan A. S. Richards are prosecuting the case.
Recinos is scheduled to be sentenced by United States District Judge Anthony W. Ishii on January 5, 2015. The maximum statutory penalty for conspiracy to commit mail and wire fraud is 20 years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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 is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. For more information on the task force, please visit www.StopFraud.gov.Vallejo Man Indicted on Firearms ChargesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment today, charging Tiandre Cook, 24, of Vallejo, with being a felon in possession of a firearm, United States Attorney Benjamin B. Wagner announced.
According to court documents, Cook was arrested on July 12, 2014, and was found to be in possession of a Glock .357-caliber pistol, which had a round chambered and a 22 round high capacity magazine inserted. Cook is a previously convicted felon. He has been in custody since his arrest. His is scheduled to be arraigned on August 15, 2014 before Magistrate Judge Edmund F. Brennan.
This case is the product of an investigation by the FBI and the Vallejo Police Department. Assistant United States Attorney Olusere Olowoyeye is prosecuting the cases.
If convicted, Cook faces a maximum statutory sentence 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.
Vagos Outlaw Motorcycle Gang Investigation Leads to Four Drug Trafficking IndictmentsRead the Press Release
SACRAMENTO, Calif. — Members and associates of the Vagos Outlaw Motorcycle Gang have been indicted today for drug trafficking offenses in an ongoing FBI probe, United States Attorney Benjamin B. Wagner announced.
The first indictment charges James Cline, 43, of Rio Linda; Leonard Walter, 37, of Sacramento; Michael Wright, 45, of Sacramento, with conspiracy to distribute and possess with intent to distribute methamphetamine and distribution of methamphetamine.
Three separate indictments charge Sacramento residents Richard Cardenas, 49; Quentin Stallings, 35; and David Homan, 50, with distribution of methamphetamine.
According to court documents, this investigation targeted three Sacramento-area chapters of the Vagos Outlaw Motorcycle Gang (OMG). The Vagos are a motorcycle club that began in the late 1960s in California that has since evolved into one of the largest OMGs in the Western United States. They have nearly 600 members in 24 chapters located in Arizona, California, Hawaii, Nevada, Oregon, and Utah. They also have chapters in Mexico. The gang uses an organized hierarchy that includes a national president, vice president, sergeant at arms, secretary, and treasurer. The regional chapters also have the same structure in place as the national chapter. The chapters report to the national leadership and have mandated meetings and events and monthly dues.
This investigation confirmed that the Sacramento-area Vagos are involved in illegal activities. Such activities include distributing methamphetamine, purchasing illegal weapons, and handling stolen motorcycles. During this investigation, FBI used confidential sources and undercover agents to make multiple purchases of methamphetamine from Vagos members and their associates in the Sacramento area. The FBI investigation is ongoing even after this initial phase of charges.
This case was the product of an investigation by the FBI, California Department of Corrections and Rehabilitation, the West Sacramento Police Department, Placer County Sheriff’s Office, and the Sacramento Police Department. Assistant United States Attorney Jason Hitt is prosecuting the case.
Defendants Cline, Walter, Wright, and Cardenas were each ordered detained during earlier court hearings. Defendants Stallings and Homan are considered fugitives.
If convicted, Cline, Walter, and Wright face a mandatory minimum of 10 years in prison and a maximum statutory penalty of life in prison and a $10 million fine. If convicted, Cardenas, Stallings, and Homan each face a mandatory minimum of five years in prison and a maximum of 40 years in prison with a fine of up to $5 million. 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; each defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Tuolumne County Man Indicted for Starting Rim FireRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment today, charging Keith Matthew Emerald, 32, of Columbia, with starting a fire that eventually burned more than 250,000 acres, including large areas in the Stanislaus National Forest and Yosemite National Park, United States Attorney Benjamin B. Wagner and U.S. Forest Service Pacific Southwest Regional Forester Randy Moore announced. The Rim Fire, which burned for nine weeks, was the largest fire in the Sierra Nevada Mountains in recorded history.
The indictment charges that on August 17, 2013, Emerald kindled a fire in the Stanislaus National Forest and allowed the fire to spread beyond his control. At the time of the fire, temporary fire restrictions were in place that prohibited fires. In addition, Emerald is charged with lying to a federal agent when he told them that he did not set the fire.
According to court documents, Emerald was rescued by helicopter from the extremely remote Clavey River Canyon area of the Stanislaus National Forest near the origin of the Rim Fire about an hour after the fire was reported. Emerald was carrying bow hunting equipment with him and advised authorities that he had been on a solo hunting trip.
U.S. Attorney Wagner stated: “The Rim Fire was one of the largest in California history and caused tremendous economic and environmental harm. While those harms cannot be undone, today we have brought criminal charges relating to the cause of that fire. I want to commend the Forest Service agents for their diligent and extensive investigation.”
“The impacts of the Rim Fire on our public lands will continue for years to come,” said U.S. Forest Service Pacific Southwest Regional Forester Randy Moore. “This devastating fire caused risk to firefighters, citizens and private property, and over 125 million dollars were spent in fire suppression costs on this beautiful and popular landscape. We’re still dealing with hazardous trees and erosion.”
“The cooperative work of the criminal investigators from the U.S. Forest Service, Tuolumne County District Attorney's Office, and prosecutors from the U.S. Attorney's Office that lead to the indictment is commendable,” said Scott Harris, U.S. Forest Service special agent in charge of the Pacific Southwest Region. “Through this investigative partnership and support from the community, we have discovered the origin, cause and identified a suspect for the massive Rim Fire.”
This case is the product of an investigation by the U.S. Forest Service with assistance from the Tuolumne County District Attorney’s Office. Assistant United States Attorneys Kevin P. Rooney and Melanie L. Alsworth are prosecuting the case.
Emerald is expected to appear soon in federal court in Fresno. If convicted of setting timber afire or false statements to a government agency, Emerald faces a maximum statutory penalty of five years in prison and a $250,000 fine for each count. Leaving a fire unattended and violating a fire restriction order each carry a maximum penalty of six months in prison and a $5,000 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 Men Indicted for Methamphetamine Distribution ConspiracyRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today charging Jose Nicolas Olivas Zazueta, 32, and Jorge Hernandez, 34, both of Fresno, with conspiracy to distribute methamphetamine and possession with the intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.
According to court documents, in July 2014 members of law enforcement became aware that Hernandez was involved in methamphetamine sales and were able to set up a purchase through confidential sources for $5,000 per pound. On August 2, 2014, Hernandez and Zazueta brought five pounds of methamphetamine to a parking lot on East Kings Canyon Road in Fresno where they were arrested.
This case is the product of an investigation by the United States Drug Enforcement Administration and the Federal Bureau of Investigation. Assistant United States Attorney Michael S. Frye is prosecuting the case.
If convicted, the defendants 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.
Manteca Woman Pleads Guilty to Filing False Claims for RefundsRead the Press Release
SACRAMENTO, Calif. — Esther Lynne Robertson, 57, of Manteca pleaded guilty today to filing false claims for federal tax refunds, United States Attorney Benjamin B. Wagner announced.
According to the plea agreement, in 2008, Robertson’s tax preparer suggested a way to get money from the government by claiming large refunds based on fictitious Form 1099-OID withholdings. Because of that suggestion, Robertson filed two false federal income tax returns: one for tax year 2005 claiming a $90,538 refund, and one for 2007 claiming a $313,248 refund. Based on the false statements, the IRS sent Robertson a check for $313,248. In February 2009, the IRS discovered the error and issued a levy to Robertson’s bank for the balance in the bank account. In September 2011, Robertson filed a false lien against the property of the IRS commissioner.
“Filing of false claims to the IRS to inflate your tax refund is a crime taken very seriously by IRS-CI,” said José M. Martínez, Special Agent in Charge, IRS-Criminal Investigation. “This is not your typical false claims case against the government; it exceeded most salaries of hard-working, tax-abiding citizens. IRS-CI will partner with the other divisions within IRS to collect the funds stolen by Robertson.”
This case is the product of an investigation by IRS-Criminal Investigation and the Treasury Inspector General for Tax Administration (TIGTA). It is being prosecuted by Trial Attorney Ignacio Perez de la Cruz of the Justice Department’s Tax Division and Assistant U.S. Attorney Matthew Segal in the Eastern District of California.
Robertson is scheduled to be sentenced over a year from now on September 23, 2015, by United States District Judge Kimberley J. Mueller. Robertson faces a maximum of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Rancho Cordova Executive Pleads Guilty to Securities FraudRead the Press Release
SACRAMENTO, Calif. —Matthew Sarad, 40, of Bakersfield, pleaded guilty today to securities fraud, United States Attorney Benjamin B. Wagner announced.
According to court documents, Sarad lived in Folsom and was the founder and chief executive officer of Rancho Cordova-based Telomolecular Corporation. It purported to be a biotechnology startup company and claimed to have developed nanoparticle technology that could eradicate cancer and treat other age-related diseases. Between November 2005 and July 2008, Sarad solicited investors nationwide, offering them stock in Telomolecular. In selling the Telomolecular stock, Sarad made untrue statements, such as telling investors that the company believed its cancer curing products would complete clinical trials, obtain requisite government approval, make it to the market in less than three years, and had a deep management team that had experience taking companies public. Sarad collected about $6.5 million from more than 300 investors.
In addition, according to court documents, between January 2009 and December 2009, Sarad owned Folsom-based Sun Nanosystems. It purported to install solar energy systems for residential and commercial customers. It claimed to have developed nanoparticle technology that vastly increased the efficiency of solar panels. In selling the solar panels, Sarad falsely told customers and prospective customers that Sun Nanosystems worked with state-of-the-art proprietary technology that could increase the efficiency of conventional solar panels by as much as 50 percent. He claimed that Sun Nanosystems had a great deal of experience installing solar panels and had satisfied past customers. Sarad collected approximately $300,000 from customers but failed to complete installation of any solar panels.
This case is the product of an extensive investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Lee Bickley and Chris Hales and Special Assistant United States Attorney David Ward are prosecuting the case.
Sarad is scheduled to be sentenced by Judge Kimberly J. Mueller on November 19, 2014. Sarad faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Stockton Man Sentenced to 10 Years in Prison for Drug and Gun ChargesRead the Press Release
SACRAMENTO, Calif. — Erik Moreno, 19, of Stockton, was sentenced today by United States District Judge Lawrence K. Karlton to 10 years in prison for distributing methamphetamine in a case resulting from the Operation Gideon IV investigation, United States Attorney Benjamin B. Wagner announced.
Operation Gideon IV was an ATF surge that targeted violent criminals in an effort to dismantle criminal organizations operating in Stockton. Experienced undercover ATF special agents from throughout the U.S. were deployed with local ATF agents and Stockton police officers to conduct covert investigations into some of the most violent criminals in Stockton and surrounding areas. Operation Gideon IV ran from January to April 19, 2013, charging 55 individuals and seizing 84 firearms.
“This lengthy prison sentence will remove a dangerous criminal who has plagued our neighborhoods by selling drugs,” stated Special Agent in Charge Joseph M. Riehl of the Bureau of Alcohol, Tobacco, Firearms and Explosives. “The success of this investigation is attributed to the excellent undercover work that was conducted and the solid partnership between ATF, the Stockton Police Department, and the United States Attorney’s Office.”
According to court documents, law enforcement conducted an extensive investigation into the drug and gun dealing activities of Moreno and his co-defendants, Luis Magana and Juvenal Junez. On March 11, 2013, Moreno and Magana met an undercover ATF agent at the Kmart parking lot at 2181 East Mariposa Road in Stockton. During the meeting, Moreno sold the undercover agent approximately one-quarter pound of methamphetamine for $2,200. During a second meeting, on March 22, 2013, Moreno met an undercover ATF agent at the same parking lot and sold the undercover agent approximately one-quarter pound of methamphetamine for $1,920 and a HI-Point semi-automatic pistol for $350.
In April 2014, Judge Karlton sentenced Luis Magana to 10 years in prison and sentenced Juvenal Junez to four years and nine months in prison.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Christiaan Highsmith prosecuted the case.
Modesto Man Arrested for Defrauding Real Estate InvestorsRead the Press Release
FRESNO, Calif. — Xue Heu, 37, of Modesto, was arrested this morning following an indictment by a federal grand jury charging him with wire fraud in connection with a fraudulent real estate investment scheme, United States Attorney Benjamin B. Wagner announced.
According to the indictment, between August 2007 and October 2013, Heu solicited individuals to invest in real estate businesses that purchased and sold real estate. Heu claimed to be an officer of Liquid Assets & Land Investments Inc. and Capital Land Investments LLC. In furtherance of the scheme and to persuade the investors that the investment opportunities were legitimate, Heu gave investors fraudulent documents, such as forged and fictitious grant deeds, fraudulent HUD-1 settlement statements, and portfolio listings of properties he claimed he intended to purchase, including properties that had already been sold and were no longer available to purchase.
The indictment alleges that Heu did not use the investors’ money to purchase the properties as promised, and instead, he directed the money to his own accounts and used the money for other purposes. As a result of his conduct, Heu allegedly defrauded investors of more than $360,000.
This case is the product of an investigation by the Federal Bureau of Investigation and the Stanislaus County District Attorney’s Office. Assistant United States Attorney Christopher Baker is prosecuting the case.
If convicted of the charges, Heu faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each of the eight counts of wire fraud. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Repeat Marijuana Grower Pleads Guilty to 2013 GrowRead the Press Release
FRESNO, Calif. —Phloch Ouk, 46, of San Jose, pleaded guilty today to growing 50 or more marijuana plants, United States Attorney Benjamin B. Wagner announced.
According to court documents, Ouk was arrested on Aug. 1, 2013, in Fresno County. He was one of about 60 people found on a rural parcel of land on E. Kings Canyon Road where approximately 31,500 marijuana plants were being grown. At that time, Ouk claimed he was growing 99 marijuana plants for personal medicinal purposes. In his guilty plea today, Ouk admitted growing marijuana in 2013 and also admitted that in 2012 law enforcement agents had contacted him at a different Fresno County marijuana cultivation site and advised him that marijuana cultivation was prohibited by federal law.
This case is the product of an investigation by the Drug Enforcement Administration and the Fresno County Sheriff’s Department. Assistant United States Attorney Kevin Rooney is prosecuting the case.
Ouk is scheduled to be sentenced by United States District Judge Anthony W. Ishii on Nov. 10, 2014. Ouk faces a maximum statutory penalty of 20 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Mother and Son Sentenced to Federal Prison for Trying to Sell More Than 50 Pounds of Crystal MethamphetamineRead the Press Release
FRESNO, Calif. — United States District Judge Lawrence J. O’Neill sentenced Patricia Renteria, 40, and her son Steve Renteria, 21, both of Cathedral City, to five years and 10 months in prison, to be followed by three years of supervised release, for conspiring to possess and distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.
According to court documents, Steve Renteria began negotiating to sell 50 pounds of methamphetamine to a source in Fresno. Patricia and Steven along with Patricia’s 17 year old son, came to Fresno in April 2013 to meet with the source, and deliver the methamphetamine. After meeting with the source Patricia and Steve were taken into custody and more than 50 pounds of crystal methamphetamine that testing determined to be 99.3 percent pure was seized from Steve Renteria’s vehicle.
This case was the product of an investigation by the Fresno Methamphetamine Task Force, which is made up of agents from the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), California Highway Patrol, California Department of Justice, Fresno Police Department, and the Fresno County Sheriff’s Office. Assistant United States Attorney Laurel J. Montoya prosecuted the case.
Kern County Man Sentenced for Laser Strike on Sheriff’s HelicopterRead the Press Release
FRESNO, Calif. — Senior United States District Anthony W. Ishii sentenced Brett Lee Scott, 26, of Buttonwillow, to one year and nine months in prison, to be followed by three years of supervised release, for aiming a laser pointer at a law enforcement aircraft, United States Attorney Benjamin B. Wagner announced.
According to court documents, Scott used two different laser pointers to strike Air-1, a Kern County Sheriff’s Office helicopter, over a six-month period. Scott explained his actions by stating that he was bored. The lasers emitted powerful green or purple beams. As a result, the pilots of Air-1 suffered flash blindness that lasted a few minutes, causing disorientation. The pilots were ultimately able to pinpoint the origin of the beams and, with the help of patrol deputies, identified Scott as a suspect. Both laser pointers in this case exceeded the legal power emission limit. One of the lasers was 17 times more powerful than what is legally permissible.
“This is a truly senseless crime, and a very serious one,” said U.S. Attorney Wagner. “Defendants like Mr. Scott, who thoughtlessly point lasers at an aircraft for their short-sighted amusement, put lives at risk and create the very real possibility that a needless tragedy will occur. My office will continue to prosecute these cases vigorously and will work with the FBI and our local law enforcement partners to send the message that this behavior will not be tolerated.”
“Boredom is no excuse for pointing a laser at an aircraft. Scott’s sentence reinforces our message to the public: This activity is a violation of federal law and is a serious risk to public safety,” said Special Agent in Charge Monica M. Miller of the Sacramento FBI. “Scott may have been located and arrested, but stopping such reckless activity is the only way to ensure public safety. Everyone is encouraged to discuss the risks of this activity with their families. Please report anyone shining a laser at an aircraft to 911 immediately.”
According to the FAA, there were 3,960 reports of people shining lasers at aircraft in the United States in 2013. In the 34-county Eastern District of California, 94 laser strikes were reported, with the Fresno Yosemite International Airport and Bakersfield Meadows Field Airport reporting the most. Law enforcement and emergency transport helicopters are particularly vulnerable, since they typically fly at lower altitudes. Their convex-shaped windows also cause greater refraction and visual interference when the beam of a laser strikes. Night-vision goggles can also amplify the beam and pose a greater threat of visual interference. Earlier this year, as a result of the increasing threat of laser strikes on aircraft, the FBI in Sacramento, along with several other cities in the United States that have reported a large number of laser incidents, launched a public awareness campaign regarding the issue and offered a $10,000 reward for information that leads to the arrest of a laser offender. Since the launch of the public awareness campaign, the FBI reports a nationwide decrease in the number of laser incidents. However, the number of laser incidents in the Eastern District has increased.
The case against Scott was the result of a joint investigation conducted by the FBI and Kern County Sheriff’s Office. Assistant U.S. Attorney Karen A. Escobar prosecuted the case.
Brothers Sentenced for Possession of Firearms Found at A Fresno County Marijuana CultivationRead the Press Release
FRESNO, Calif. — Rudy Alberto Gonzalez Rocha, 29, and his brother, Eloy Damian Gonzalez Rocha, 33, both of Jalisco, Mexico, were sentenced today in federal court for being aliens in possession of firearms seized from a marijuana cultivation site, U.S. Attorney Benjamin B. Wagner announced.
Rudy Gonzalez was sentenced to three years and one month in prison and Eloy Gonzalez was sentenced to two and a half years in prison. They are subject to deportation to Mexico upon completion of their sentence. Earlier this year, the Gonzalez brothers entered guilty pleas to being illegal aliens in possession of three firearms, one of which was reported stolen from Arkansas and another having an obliterated serial number. The guns were found during the execution of a narcotics search warrant at the men’s leased residence in Dunlap.
According to court documents, at the beginning of this year, Fresno County Sheriff deputies had been dispatched to the property to investigate several calls about people coming and going to and from the property, which had a strong odor of marijuana. Deputies seized 260 marijuana plants, more than 200 pounds of processed marijuana, and $17,120 in cash, along with the firearms. The defendants have agreed to the forfeiture of the money and guns. In addition to imposing sentence, Senior U.S. District Judge Anthony W. Ishii also ordered the forfeiture of the cash and firearms.
“The firearms seized from these defendants are a further testament to the fact that the criminal organizations involved in illegal marijuana cultivation operations have no qualms about using violence against those who get in their way,” said Mike Prado, resident agent in charge of HSI Fresno. “This case is also an important reminder about the important role federal and local collaboration plays in combatting this public safety threat and ensuring that those responsible are brought to justice.”
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and Fresno County Sheriff’s Office, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Assistant U.S. Attorney Karen A. Escobar prosecuted the case.
Sacramento Man Indicted for Sharing Child Pornography FilesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment Thursday, charging Michael Bailey, 59, of Sacramento, with receipt and distribution of child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, law enforcement officers conducting an undercover investigation into online child pornography being shared over peer-to-peer networks located an Internet user in Sacramento making child pornography available for download. When officers executed a search warrant at Bailey’s home, a computer containing the pornographic videos was recovered.
This case is the product of an investigation by the Federal Bureau of Investigation and the Sacramento Valley Internet Crimes Against Children Task Force. Assistant United States Attorney Matthew G. Morris is prosecuting the case.
Bailey was arrested on July 22, 2014, and has been in custody since then. He is scheduled to be arraigned on August 6, 2014.
If convicted, Bailey faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. A conviction for receipt or distribution of child pornography carries a mandatory minimum sentence of five years in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative 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.
Father and Son Charged with Defrauding Foster FarmsRead the Press Release
FRESNO, Calif. — Surjit Toor, 59, and his son Raju Toor, 34, both of Hilmar, were arraigned in Fresno today for a scheme that defrauded Foster Farms of more than $46,000, United States Attorney Benjamin B. Wagner announced.
A federal grand jury returned an indictment on Thursday, charging the defendants with conspiracy to commit mail fraud and one count of mail fraud for a scheme that billed Foster Farms for work that was never performed. The defendants pleaded not guilty and were released on their own recognizance.
According to court documents, Surjit Toor was a maintenance manager at the Foster Farms processing plant in Livingston, and Raju Toor operated a construction company called Mid State Mechanical (Mid State). Surjit Toor was responsible for hiring third party contractors to work at the plant when needed. The indictment alleges that Raju Toor would submit fraudulent invoices to Foster Farms, and Surjit Toor would approve them in order to cause Foster Farms to pay for work that was never performed.
On February 22, 2012, Surjit Toor caused Foster Farms to send a purchase order to Mid State requesting that Mid State construct a 110-foot inspection catwalk at the Foster Farms processing plant. Raju Toor then sent Foster Farms an invoice for more than $20,000, which Surjit Toor approved. However, an in-house maintenance team had already constructed the catwalk a month earlier. The defendants also received payment for a fraudulent ammonia vessel project involving the modification of a large metal tank designed to hold ammonia, which is part of the plant’s refrigeration system. Surjit Toor caused Foster Farms to send a purchase order to Mid State for this project, and although Raju Toor did not perform any work, he sent an invoice, and Surjit Toor approved payment.
In March 2012, Foster Farms mailed a check to Raju Toor that included payment for the catwalk and ammonia vessel projects. Raju Toor transferred the majority of the funds back to his father.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Grant B. Rabenn and Special Assistant United States Attorney Brian A. Fogerty are prosecuting the case.
If convicted, Surjit Toor and Raju Toor face a maximum statutory penalty of 20 years in prison and a $250,000 fine on each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Roseville Financial Advisor Sentenced to 46 Months in Prison for Stealing from Her ClientsRead the Press Release
SACRAMENTO, Calif. — Michelle Lee Kern, 36, of Sacramento, was sentenced today by United States District Judge Morrison C. England Jr. to 46 months in prison and ordered to pay $642,625 in restitution for financial advisor fraud, United States Attorney Benjamin B. Wagner announced.
According to court documents, Kern worked as a licensed financial advisor at Ameriprise Financial Services Inc. in Roseville between 2009 and December 2012. While working as a financial advisor, Kern stole $642,625 from approximately 20 clients by making wire transfers from client accounts to Kern’s own bank accounts and credit cards. Kern also forged client signatures on checks. According to victim statements read in court, Kern’s theft made it difficult for some victims to retire, support disabled children, and pay for college.
“Kern abused her role as a trusted, licensed financial advisor to defraud her clients for personal gain. Her actions clearly demonstrated disregard for the perilous financial situation her clients ultimately faced when they became victims of the fraud,” said Special Agent in Charge Monica M. Miller of the Sacramento division of the Federal Bureau of Investigation. “Investigation and prosecution of financial fraud is a top priority for the FBI, particularly such that is committed by those entrusted to safeguard funds.”
While awaiting sentencing in this case, Kern was charged in Placer County with embezzling from her church. That case is pending, and Kern is presumed innocent of those charges, unless and until proven guilty.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Michael D. Anderson prosecuted the case.
Kern was ordered to turn herself in to the Bureau of Prisons on September 11, 2014, to begin serving her sentence.
Placerville Man Pleads Guilty to Filing False Tax ReturnsRead the Press Release
SACRAMENTO, Calif. —Thomas W. Stringfellow, 55, of Placerville, pleaded guilty today to two counts of willfully making false tax returns, United States Attorney Benjamin B. Wagner announced.
According to court documents, from 2006 through 2010, Stringfellow underreported his business income on tax returns by more than $1.1 million, and underreported his personal income on tax returns by more than $1 million. Stringfellow owned New Horizon Painting, and rather than depositing all of the business checks into the appropriate accounts, he cashed some of the checks and did not report those amounts as income. In total, Stringfellow’s underreporting of his business income and his personal income led to a tax loss of more than $687,000.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Jean M. Hobler is prosecuting the case.
Stringfellow is scheduled to be sentenced by Judge Morrison C. England Jr. on December 18, 2014. Stringfellow faces a maximum statutory penalty of three years in prison and a $250,000 fine on each count. 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.
Indictment for Marijuana Cultivation in Sierra National ForestRead the Press Release
FRESNO, Calif. — A federal grand jury returned a five-count indictment today against Jose Antonio Reyna-Chavez (Reyna), 18, of Michoacàn, Mexico, charging him with conspiring to manufacture, distribute, and possess with intent to distribute marijuana, manufacturing marijuana, possessing marijuana with intent to distribute, damaging public land and natural resources, and avoiding immigration officers, United States Attorney Benjamin B. Wagner announced.
According to court documents, Reyna was involved in the cultivation of 1,539 marijuana plants in the Blue Canyon area of the Sierra National Forest in Fresno County when he attempted to flee from law enforcement officers. The cultivation operation was within three miles of a public campground and about seven miles from Shaver Lake. The marijuana cultivation caused significant damage to the land and natural resources of the forest. Six large helicopter net loads of material and debris, including fertilizer, propane tanks, and poisons, were removed from the grow site.
This case is the product of an investigation by the U.S. Forest Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Fresno County Sheriff’s Office. Assistant United States Attorney Karen A. Escobar is prosecuting the case.
Reyna has been ordered detained pending trial and is scheduled for arraignment and plea on the indictment on August 6, 2014.
If convicted of the more serious drug offenses, Reyna faces a minimum statutory penalty of 10 years in prison, a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Fresno Women Including A Mother and Daughter Indicted for Trafficking MethamphetamineRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment charging Marisela Rico-Tzintzun, 38, her daughter Vanessa Garcia, 23, and friend Brenda Ruiz-Tovar, 26, all of Fresno, with conspiring to distribute and possess with the intent to distribute methamphetamine, distributing methamphetamine, and possessing methamphetamine with the intent to distribute, United States Attorney Benjamin B. Wagner announced.
According to court documents, the three had been working together since April 2013 to sell methamphetamine in the Fresno area. On September 4, 2013, the three sold approximately one pound of methamphetamine, and on April 7, 2014, Rico-Tzintzun sold approximately one ounce. On July 17, 2014, a search warrant for Rico-Tzintun’s residence was issued and nearly two pounds of methamphetamine was found there.
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 Marijuana Investigation Team that is composed of officers from the Drug Enforcement Administration, California Department of Justice, and the Fresno County Sheriff’s Office. Assistant United States Attorney Laurel J. Montoya is prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of 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.
Former Folsom Swim Coach Sentenced to 12 Years in Prison for Attempted Enticement of A MinorRead the Press Release
SACRAMENTO, Calif. — Eric Johnston, 23, of Folsom, was sentenced today by United States District Judge Morrison C. England Jr. to 12 years in prison, to be followed by 20 years of supervised release, for attempted enticement of a minor, United States Attorney Benjamin B. Wagner announced.
According to the plea agreements filed in the case, Johnston arranged to meet what he thought to be a 13-year-old at a hotel. Johnston was arrested when he arrived at the designated meeting. Following his arrest, Johnston allowed law enforcement to assume his identity and they then sent a message to Nicholas Perry telling him that he was at the hotel. Perry arrived approximately 45 minutes later and was arrested. Both defendants have been in federal custody since their arrest.
Subsequent investigation identified a minor with whom Johnston was engaged in a sexual relationship. Johnston was sentenced in Sacramento Superior Court based on that conduct to two years in prison to be served concurrently with his federal sentence. The Sacramento case number is 12F04917.
Perry is scheduled to be sentenced by Judge England on April 3, 2014. He faces a statutory penalty of 10 years to life in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was investigated by the Sacramento Internet Crimes Against Children (ICAC) Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant United States Attorney Kyle Reardon is prosecuting the case.
Former California News Helicopter Pilot Pleads Guilty to ID TheftRead the Press Release
SACRAMENTO, Calif. — John Michael Dial, 58, of Skaneateles, New York, pleaded guilty today to aggravated identity theft, United States Attorney Benjamin B. Wagner announced.
According to court documents, Dial used the names of actual persons to commit violations of federal law such as false statements to the FAA and forgery of a U.S. passport.
According to the plea agreement, from December 16, 2009, to August 4, 2010, Dial was hired as a television news helicopter pilot and operated news helicopters in the Bay Area without a pilot’s license. On one occasion, flight records from Dial’s employer show him operating a news helicopter in the Eastern District of California.
In June 2011, in order to work for an air ambulance service in Susanville, Dial provided numerous false identification documents and knowingly and willfully made material false statements about his true identity. These statements concerned matters within the jurisdiction of the FAA, and were relevant because they prevented the FAA from knowing the true identity of a pilot operating an aircraft within the United States. Had the FAA known Dial’s true identity, it would have known that Dial had previously been convicted of making false statements to the FAA regarding his medical certificate and student pilot certificate. From July 3, 2011, to November 7, 2011, Dial operated a helicopter approximately 63 times, without having a valid pilot certificate.
On March 15, 2012, Dial was hired under his real name to work as a television news helicopter pilot in Sacramento. Dial submitted a fraudulent FAA Temporary Airman Certificate under his real name, and an FAA Medical Second Class Certificate under his real name. Dial flew for the television station two times without having a valid pilot certificate.
According to the plea agreement, Dial used the identity of a former co-worker to gain employment with an air ambulance service in New York. Dial also created a fraudulent United States passport using that person’s identity.
On April 8, 2012, Dial was stopped by a Cascade, Idaho police officer and gave police a fraudulent Vermont driver’s license. He was cited for driving without a license and told to not drive his vehicle. Shortly thereafter, Dial was observed driving away from the scene. When Dial was stopped again, police learned that his true name was likely John M. Dial and that he had two outstanding felony warrants in the state of Washington.
During a Mirandized statement, Dial admitted that his name was John Michael Dial, and that he obtained the Vermont driver’s license approximately 12 years ago by providing fictitious information. He said that he did this in order to avoid apprehension for the two outstanding felony warrants. During a search of Dial’s vehicle, two wallets were located. In one wallet was information relating to John M. Dial, including a California driver’s license; in the other wallet were documents relating to the identity theft victim and second fraudulent Vermont driver’s license.
This case is the product of an investigation by the U.S. Department of Transportation, Office of Inspector General, the United States Secret Service, and the Federal Bureau of Investigation with the assistance of the Cascade, Idaho, and McCall, Idaho Police Departments. Assistant United States Attorney Kyle Reardon is prosecuting the case.
Dial is scheduled to be sentenced by United States District Judge Morrison C. England Jr. on August 14, 2014. Dial faces a mandatory statutory penalty of two years in prison and a $250,000 fine.
Toxic Marijuana Operation in Sequoia National Forest Results in 46-Month Prison SentenceRead the Press Release
FRESNO, Calif. — Jose Luis Garcia Villa (Garcia), 22, of Michoacàn, Mexico, has been sentenced to three years and 10 months in prison for his involvement in a toxic marijuana cultivation operation in the Sequoia National Forest, according to U.S. Attorney Benjamin B. Wagner. Garcia was also ordered to pay $3,328 in restitution to the U.S. Forest Service for damage sustained to public land and natural resources as a result of the cultivation operation.
According to court documents, Garcia conspired to cultivate 8,876 marijuana plants near the Greenhorn Creek Trail in the Sequoia National Forest in Kern County. Native oak trees and other vegetation were cut down to make room for the marijuana planted there. The soil was tilled, and fertilizers and pesticides, including a highly toxic and illegal rat poison from Mexico called Fosfuro de Zinc or zinc phosphide, were spread throughout the site. Exposure to zinc phosphide can cause a variety of ailments, including vomiting, burning sensations, abdominal pain, unconsciousness, and lack of muscle control. If ingested, a small quantity can be fatal to humans. Garcia is subject to deportation after he serves his sentence.
This case was the product of an investigation by the U.S. Forest Service, the U.S. Drug Enforcement Administration, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), U.S. Environmental Protection Agency Criminal Investigation Division (EPA-CID), and the Kern County Sheriff’s Office. Assistant United States Attorney Karen Escobar prosecuted this case.
Kern County Resident Pleads Guilty in Fraudulent Tax Refund SchemeRead the Press Release
FRESNO, Calif. — Federico Garcia Garcia, 45, of Arvin, pleaded guilty today to two counts of filing false claims with the U.S. Internal Revenue Service in connection with a scheme to obtain tax refunds, United States Attorney Benjamin B. Wagner announced.
According to his plea agreement, between October 2007 and December 2008, Garcia caused 147 false federal income tax returns to be submitted to the IRS in the names of third parties, in a scheme to obtain tax refund checks. The tax returns were submitted to the IRS with fabricated Form W-2s containing false wage and withholding information. Due to the scheme, approximately $308,317 was fraudulently claimed in federal tax refunds, and the IRS paid out approximately $79,932.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant U.S. Attorney Kirk Sherriff is prosecuting the case.
Garcia is scheduled to be sentenced on November 24, 2014, by United States District Judge Anthony W. Ishii. Garcia faces a maximum statutory penalty of five years in prison and a $250,000 fine on each count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Fresno Man Sentenced to Seven Years in Prison for Receipt of Child PornographyRead the Press Release
FRESNO, Calif. — Senior United States District Judge Anthony W. Ishii sentenced Roy Palomera, 24, of Fresno, to seven years in prison, to be followed by 18 years of supervised release, for receipt of child pornography, United States Attorney Benjamin B. Wagner announced. Palomera was ordered to pay $5,000 in restitution to one victim whose images he possessed.
According to court documents, investigators determined that Palomera was making child pornography available through a file-sharing program. When a search warrant was executed at his residence on August 30, 2012, his computer contained numerous images of minors being sexually abused. Some of the victims were prepubescent, and several images depicted violence, bondage, or other sadistic or masochistic conduct.
“This sentence should serve as a sobering reminder of the consequences facing those who sexually exploit defenseless children,” said Nick Annan, acting special agent in charge for Homeland Security Investigations San Francisco. “This defendant was among 14 individuals arrested in the Fresno area as part of Operation Sunflower, a nationwide enforcement action led by Homeland Security Investigations targeting Internet child predators. The reality is, every time a photo or a video of an innocent child being sexually exploited is viewed, that victim is violated again. That is why we owe it to all of the children identified in these cases to work tirelessly to see that all perpetrators involved in any form of child exploitation are brought to justice.”
This case was the result of an investigation by the Fresno office of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Fresno 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 to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. Click on the “resources” tab for information about Internet safety education.
Two Men Indicted for Marijuana Cultivation in Lassen National ForestRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Carlos Cortez, 29, and Ismael Rameriz, 24, charging them with conspiracy to distribute marijuana and manufacture of marijuana, United States Attorney Benjamin B. Wagner announced.
According to court documents, in June 2014, during an aerial flight, deputies of the Tehama County Sheriff’s Office saw a large marijuana cultivation site near North Fork Antelope Creek, in Tehama County In the Lassen National Forest.
On July 11, 2014, a multiagency taskforce searched the marijuana cultivation site. Before they entered the site, agents saw Cortez and Rameriz watering marijuana plants. When agents entered, Cortez and Rameriz fled, but were quickly captured. A total of 6,636 marijuana plants were seized and destroyed at the cultivation site.
This case was the product of an investigation by the Tehama County Sheriff’s Office, the United States Forest Service, and California Department of Fish and Wildlife. Assistant United States Attorney Olusere Olowoyeye is prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of five 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 County Residents Indicted for Tax Refund Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an eight-count indictment today against Sergey Shchirskiy, 38, of Carmichael, and Vladislav Atamanyuk, 27, of Rancho Cordova, charging them with conspiracy to defraud the United States and aggravated identity theft, United States Attorney Benjamin B. Wagner announced.
According to court documents, the defendants conspired to file multiple fraudulent tax returns using other people’s identities. The returns falsely claimed refunds based on fraudulently reported income and the Earned Income Tax Credit. The defendants caused the fraudulent refunds to be directly deposited into bank accounts that they controlled.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorney Michele Beckwith is prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of 10 years in prison for the conspiracy, and a mandatory two years in prison for identity theft, as well as 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.
Nicolls Fire Investigation Leads to Charges for Marijuana CultivatorRead the Press Release
FRESNO, Calif. — A federal grand jury returned a five-count indictment today against Edgardo Fournier, aka Edgardo Fournier-Nigaglioni, 45, of Perris, charging him with conspiring to manufacture, distribute, and possess with intent to distribute marijuana, manufacturing marijuana, possessing marijuana with intent to distribute, damaging public land and natural resources, and setting timber afire, announced United States Attorney Benjamin B. Wagner and Forest Service Special Agent in Charge of the Pacific Southwest Region Scott Harris.
According to court documents, on July 11, 2014, Fournier was involved in the cultivation of 2,090 of marijuana plants in the Smith Canyon area of the Sequoia National Forest. He started several fires while leaving the marijuana cultivation site. The fire, which became known as the Nicolls Fire, was located in the Scodie Mountains, within the federally designated Kiavah Wilderness Area. The fire damaged about 1,680 acres of public land and will cost taxpayers millions of dollars.
When Forest Service agents went to the cultivation site, they eradicated 2,090 marijuana plants and seized rounds of ammunition. The marijuana cultivation operation caused significant damage to the land and natural resources of the forest.
This case was the product of an investigation by the U.S. Forest Service, United States Bureau of Land Management, and Kern County Sheriff’s Office. Assistant United States Attorney Karen A. Escobar is prosecuting the case.
Fournier is in custody as a flight risk and danger to the community and is scheduled for arraignment on July 28, 2014.
If convicted of the drug offenses, Fournier faces a statutory penalty of 10 years to life in prison and a $10 million fine. For damaging public lands and resources, Fournier faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. For causing the Nicolls Fire, Fournier faces a maximum statutory penalty of five years in prison and a fine of $250,000. 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.
Jury Finds Sacramento Man Guilty of Conspiracy and Money Laundering in Mortgage Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — After a six–day trial in a mortgage fraud case, a federal jury found Leonard E. Williams, 52, of Sacramento, guilty today of conspiracy to commit mail and wire fraud and two counts of money laundering, United States Attorney Benjamin B. Wagner announced. The trial was held before United States District Judge William B. Shubb.
According to evidence presented at trial, from late 2006 into 2008, Williams conspired with others to carry out a mortgage fraud scheme in the Chico and Sacramento areas using his companies Diamond Hill Financial and Bay Area Real Estate Holdings. The scheme resulted in the issuance of more than $2 million in home loans, with most of the buyers ultimately defaulting.
To carry out the scheme, Williams and his partner Joshua Clymer recruited underqualified buyers, including family and friends, to purchase homes with promises of cash back, no money down, and illusory equity in the homes. Williams and his co-conspirators assisted these home buyers in securing loans with fraudulent loan applications that contained lies about the buyers’ employment, income, assets, and intent to occupy the homes as a primary residence. In most cases, at Williams’ suggestion and encouragement, the loan applications falsely stated that the buyers worked at Diamond Hill Financial, and Williams himself maintained the charade by confirming this false information when lenders called to verify it.
The loan applications also listed false assets and were accompanied by various forged documents, including altered bank statements, fake W-2s, fake paystubs, and false gift letters and affidavits. Williams and his coconspirators also misled lenders about the true purchase price of the homes by fraudulently indicating down payments were made when in fact they were not, and giving cash back to buyers outside of escrow, without disclosing these facts to the lenders. These lies had the effect of increasing the amount of the loans to the buyers, which in turn increased the profits of the fraud to Williams, Clymer, and others. The profit to Williams and Clymer varied from $5,000 to over $30,000 per transaction, with the two of them often splitting the proceeds.
“Fraud like that committed by Williams and his co-conspirators was an unnecessary contributor to the financial crisis that had such a serious impact on our country, and our communities in Northern California in particular,” said United States Attorney Wagner. “Even though the flood of foreclosures resulting from that crisis has started to subside, this conviction is evidence of the continuing commitment by my office and our federal and local law enforcement partners to hold accountable those who sought to profit by engaging in mortgage fraud.”
“Victims of mortgage fraud may include the banks that loan the money, but also include all homeowners and would-be homeowners who end up paying for this type of fraud,” said José M. Martínez, Special Agent in Charge, IRS-Criminal Investigation. “IRS-CI is committed to pursuing those who line their pockets with profits from these schemes.”
Judge Shubb remanded Williams into custody pending sentencing. Prior to trial, co-defendant Joshua Clymer pleaded guilty to conspiracy to commit mail and wire fraud and awaits sentencing.
This case is the product of an investigation by the Federal Bureau of Investigation, Internal Revenue Service, Criminal Investigations, and the Butte County District Attorney’s Office’s Major Crimes Unit. Williams is the last of 14 defendants who have been convicted of mortgage fraud offenses in connection with this and related cases. Others who already been convicted and sentenced include William E. Baker, Shane Burreson, Christopher M. Chiavola, Carlos Chamorro, Eric Clawson, Niche Fortune, Garret Gililland, Kesha Haynie, Remy Heng, Nicole Magpusao, Brandon Resendez, and Anthony Symmes. Twelve of the defendants pleaded guilty. Juries have convicted the two defendants who went to trial, Williams and Haynie. Assistant United States Attorneys Christopher S. Hales and Audrey B. Hemesath are prosecuting the case.
Williams is scheduled to be sentenced by Judge Shubb on October 27, 2014. Williams faces a maximum statutory penalty of 20 years in prison for conspiracy to commit mail and wire fraud, and 10 years in prison and a $250,000 fine for each count of money laundering. 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.
Chicago Man Pleads Guilty to Sex Trafficking Offense with Underage Girl in Sacramento AreaRead the Press Release
SACRAMENTO, Calif. —Marquist Piere Bradford, 28, of Chicago, pleaded guilty today to sex trafficking of children by force, United States Attorney Benjamin B. Wagner announced.
According to court documents, in early 2012 Bradford recruited a 15-year-old girl to travel from Fresno to Sacramento where she was used by Bradford as part of a prostitution business from January 19 through February 5, 2012. According to court documents, Bradford maintained an apartment in Rancho Cordova, which he used as a base of operations for a prostitution business that spanned the Sacramento and Bay areas, as well as cities outside California. At least two of Bradford’s victims were under the age of 18. Bradford fled from Sacramento to the Chicago area after law enforcement recovered the victim in this case.
This case was the product of an investigation by the Sacramento County Sheriff’s Office and the Sacramento FBI Innocence Lost Task Force. Assistant United States Attorney Matthew G. Morris is prosecuting the case.
Bradford has remained in custody since his arrest in Springfield, Ill. in April 2012. He is scheduled to be sentenced by United States District Judge Morrison C. England, Jr. on October 23, 2014. Bradford faces a maximum statutory penalty of life 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.
San Jose Man Sentenced for A Copyright Infringement ConspiracyRead the Press Release
SACRAMENTO, Calif. — United States District Judge Kimberly J. Mueller sentenced Otto Godinez-Sales, 22, of San Jose, today to four years in prison for conspiracy to commit criminal copyright infringement, United States Attorney Benjamin B. Wagner announced.
According to court documents, Godinez-Sales maintained a number of warehouses in the San Jose area where he sold CDs and DVDs containing counterfeit music and movies. The music and movies on the CDs and DVDs were protected under United States copyright laws. In many instances, the copyrighted movies being trafficked by the defendants were still in theatrical release and not yet available for purchase in the home DVD market. Co-defendants Francisco Martinez-Cruz, 34, of Orland, and Soledad Garcia-Venegas, 32, of Orland, were customers at his San Jose warehouses, and they would transport the CDs and DVDs to sell at the Gonzalez Flea Market in Glenn County and the Marysville Flea Market in Yuba County. Over the course of the conspiracy, Martinez-Cruz and Garcia-Venegas were responsible for trafficking approximately 25,000 CDs or DVDs containing counterfeit copyrighted works. Martinez-Cruz was sentenced to 21 months in prison, and Garcia-Venegas was sentenced to 18 months in prison.
“This case is a testament to the success of multi-jurisdictional investigations and task force partnerships. A thorough investigation through collaboration revealed Godinez-Sales’ role in this scheme and identified his network of warehouse facilities. His criminal enterprise distributed thousands of counterfeit CDs and DVDs that were sold to unsuspecting customers throughout Northern California,” said Special Agent in Charge Monica M. Miller of the Federal Bureau of Investigation’s Sacramento division. “Consumers are urged to question the authenticity of all high-demand products offered at significantly reduced prices. As in this case, such goods were counterfeit items produced by criminal enterprises who benefited from trusting consumer who were misled to believing the products were legitimate.”
This case is the product of an investigation by the Federal Bureau of Investigation and the Sacramento Valley Hi-Tech Crimes Task Force, which combines the efforts of 32 local, state, and federal law enforcement agencies in the Eastern District of California. Assisting in this case were the Sacramento Intellectual Property Rights Task Force, Rapid Enforcement Allied Computer Team of San Jose, Sacramento County Sheriff’s Office, Marysville Police Department, Glenn County Sheriff’s Office, and the Glenn County District Attorney’s Office. Assistant United States Attorney Matthew G. Morris is prosecuting the case.