Eastern District of California

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.

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.

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, 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, 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.

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.

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.

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.

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, 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.

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.

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.

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.

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.

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.

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.

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.

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, 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.

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.

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.

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.

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, 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.

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.

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.

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.

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, 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.

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, 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.

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.

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.

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.

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.

SAN JOSE, Calif. — A federal grand jury in San Jose returned a three-count indictment against Quan Pham Howard, 51, of San Jose, charging him with possession of stolen U.S. mail, delay and destruction of U.S. mail, and possession with intent to distribute marijuana, United States Attorney Benjamin B. Wagner announced.

According to court documents, Howard was a Supervisory Postal Inspector working at the San Jose Processing and Distribution Center. On June 26, 2014, following an investigation and the execution of a search warrant at his house and office, Howard was arrested and charged with theft of mail.

According to the indictment, between April 9, 2012, and June 25, 2014, Howard unlawfully opened and secreted United States mail intended for various victims and including, among other things, quantities of prescription drugs.  The indictment charges him with possessing a variety of items that had been stolen from the mail distribution center including: a gun scope, a silver bar, jewelry, coins, gift cards, a gun silencer, a Rolex watch and other items.  Howard is also charged with possessing over 8 kilograms of marijuana with the intent to distribute.

This case is being tried in San Jose by the Eastern District of California. It is the product of an investigation by the United States Postal Service Office of Inspector General. Assistant United States Attorney Michelle Rodriguez is prosecuting the case.

Howard is scheduled for arraignment on August 1, 2014. If convicted, Howard faces a maximum statutory penalty of five years in prison and a $250,000 fine for 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 defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — After a three–day trial, a federal jury found John Winton Harris, 31, of Sacramento, guilty today of one count of possession of at least 29 grams of cocaine base, commonly referred to as crack cocaine or rock cocaine, United States Attorney Benjamin B. Wagner announced. The trial was held before United States District Judge Morrison C. England Jr.

According to evidence presented at trial, Sacramento police officers responded to a domestic violence complaint at an apartment complex in Sacramento. When the officers entered the apartment, they found Harris crouched in the kitchen area. He was moved to a different location in the apartment, and when officers found a large amount of cocaine base where he had been crouching in the kitchen, Harris attempted to flee. Harris claimed he did not live in the apartment, but officers found mail addressed to him at that address, as well as other personal items belonging to him in the apartment. Harris’s cellphone revealed photographs of Harris in the same apartment with a large amount of currency only days before, as well as text messages indicating he was involved in the distribution of cocaine base that very week.

This case is the product of an investigation by the United States Drug Enforcement Administration and the Sacramento Police Department. Assistant United States Attorneys Todd Pickles and Chris Highsmith are prosecuting the case.

Harris remains in custody pending sentencing.

Harris is scheduled to be sentenced by Judge England on October 23, 2014. Harris faces 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, Calif. — Israel Garrido-Hernandez, 24, of Fresno, was sentenced Monday by United States District Judge Lawrence J. O'Neill to four years and nine months in prison for possession of methamphetamine with intent to distribute and possession of document-making implements, United States Attorney Benjamin B. Wagner announced.

According to court documents, in April 2013, Garrido-Hernandez possessed with the intent to distribute methamphetamine. Between January and April 2013, he possessed equipment to make false documents that appeared to be made under the authority of the United States, such as false legal permanent resident cards (“green cards”) and false Social-Security cards.

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

FRESNO, Calif. — Former IRS employee Viririana Hernandez, 30, was arrested this morning at her mother’s home in Parlier, charged with an identity theft conspiracy that used information stolen from the files of other IRS employees, United States Attorney Benjamin B. Wagner announced.

Co-defendants Roberto Martinez, 33, and Lilliana Gonzalez, 32, both of Fresno, were also arrested at their residence this morning. All three defendants were arraigned today and entered pleas of not guilty. Martinez was released from custody with electronic monitoring. Hernandez and Gonzalez remain in custody and have a detention hearing on Thursday, July 24, 2014. Arraignment for a fourth defendant, Daniel Miranda, 25, has not yet been scheduled.

On July 18, 2014, a federal grand jury in Fresno returned a 23-count indictment, charging the defendants with conspiracy, bank and wire fraud, and aggravated identity theft. Miranda was also charged with mail fraud.

According to the indictment, from June 2012 to January 2014, the four conspirators obtained personal information from victims through various methods. Hernandez worked for the IRS since 2006 and had access to the personal information of IRS workers. Several of the victims are current or former IRS workers. Without the victims’ permission, they opened credit card accounts in the victims’ names or added themselves as “authorized users” of the victims’ existing accounts. The conspirators then used the accounts to buy goods and services at locations throughout the Fresno area, as well as in Modesto and Riverside County. In total, it is alleged that the four conspirators misused the personal information of approximately 160 victims and attempted fraudulent credit card charges of more than $1.2 million.

San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated: “We are working closely with the U.S. Attorney’s Office and our partners in law enforcement to arrest and prosecute those responsible for using mail delivery for a fraud scheme.”

Treasury Inspector General for Tax Administration San Francisco Field Division Special Agent-in-Charge Rod Ammari stated: “Identity theft is a nationwide crisis that places a heavy burden on the victim and creates chaos in the victims’ lives. When an IRS employee is involved in stealing information through their employment at the IRS and facilitating identity theft rings, it will not be tolerated and the Treasury Inspector General for Tax Administration will use all its power and resources to ensure these criminals are brought to justice.”

This case is the product of an investigation by the United States Postal Inspection Service, the Treasury Inspector General for Tax Administration, and the Fresno Police Department. Assistant United States Attorney Michael G. Tierney is prosecuting the case.

If the defendants are convicted, they each face a maximum statutory penalty of 30 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 sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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

FRESNO, Calif. — Heath Lee Roberson, 39, of Modesto, was sentenced today to two years and nine months in prison by Senior United States District Judge Anthony W. Ishii, for conspiring to submit false claims to the IRS, United States Attorney Benjamin B. Wagner announced. Roberson was also ordered to pay over $66,322 in restitution to the IRS.

According to court documents, from December 2010 to May 2011, Roberson and a co-defendant obtained personal identifying information from more than 40 individuals, used the information to generate false tax returns and submitted them to the IRS. Any tax refunds that they received were deposited into accounts the defendants controlled.

This case was the product of an investigation by the Internal Revenue Service Criminal Investigation. Assistant United States Attorney Michael G. Tierney prosecuted the case.

FRESNO, Calif. — Kwan Yong Choi, 72, of Fresno, was sentenced today by United States District Judge Anthony W. Ishii to three years in prison for money laundering, United States Attorney Benjamin B. Wagner announced. Choi was also ordered to pay $2.1 million in restitution to 13 victims of his investment fraud scheme here in the United States.

On June 10, 2006, Choi was arrested in Fresno based on an extradition order from the Republic of Korea for a fraud scheme he had perpetrated there. Choi waived extradition and was returned to Korea in June 26, 2006, where he served four years in prison for fraud, marriage fraud and visa fraud. On May 27, 2010, a federal grand jury in Fresno returned a six-count indictment against Choi charging him with money laundering related to a fraud scheme that targeted elderly Korean nationals living in the United States. Federal agents escorted Choi back to Fresno after he finished serving his sentence in South Korea.

“The reality that this fraudster faces a lengthy term in federal prison should provide a measure of consolation for the defendant’s victims, some of whom lost their life saving as a result of his scams,” said Nick Annan, acting special agent in charge for Homeland Security Investigations San Francisco. “Today’s sentencing is particularly gratifying, given that it’s the culmination of seven years of intensive investigation carried out on two continents.”

According to court documents, in 2002, Choi, formerly of Daejeon City, South Korea, began marketing an investment scheme whereby investors could invest money into his company, Sun Min Trading Inc. Choi told investors that the company bought souvenirs and sold them to the White House. He claimed that the venture would make 30 percent profit with 10 percent going to a purported charity named “International Christian Mission Center,” and 20 percent going to investors every quarter. He specifically targeted persons of Korean descent and marketed investment opportunities to potential clients in California and elsewhere by making various false representations, including that the “International Christian Mission Center” was an extension of the CIA, that he was an ordained minister, that he had a history of investment successes, and that the investments were secure.

Instead of investing the money as promised, Choi spent the funds on his own personal and business expenses, including payments for homes, cars, and credit card bills. He lulled investors into thinking that their investments were making a return by sending false account statements, sending payments, or giving excuses as to why payments were delayed. As a result of the scheme, investors lost more than $2 million.

This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Fresno-based HSI special agents received substantial assistance from HSI’s attaché office in Seoul as well as from the Republic of Korea’s Ministry of Justice. Assistant United States Attorneys Mark E. Cullers and Heather M. Jones prosecuted the case.

FRESNO, Calif. —Enrique Reynosa, 37, pleaded guilty today to possessing with intent to distribute methamphetamine and cocaine, according to United States Attorney Benjamin B. Wagner.

According to court documents, Reynosa was stopped on Highway 99, south of State Route 119, for a traffic violation. Six pounds of methamphetamine, eight pounds of cocaine, and $1,510 were found inside the car after Reynosa provided consent to search the vehicle. As part of the guilty plea, Reynosa agreed to forfeit the 2008 Chevrolet Silverado 150 Crew Cab he was driving and $1,510 in cash seized during the vehicle stop.

Reynosa is scheduled for sentencing on September 29, 2014, before Senior U.S. District Judge Anthony W. Ishii. Reynosa faces 10 years to life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

This case is the product of an investigation by the U.S. Drug Enforcement Administration and the California Highway Patrol. Assistant United States Attorney Karen A. Escobar is prosecuting the case.

FRESNO, Calif. — Two men were sentenced today for their convictions in separate child exploitation cases, United States Attorney Benjamin B. Wagner announced.

Case 1:12-cr-383-AWI
Senior United States District Judge Anthony W. Ishii sentenced Luis Alfredo Espinoza, 24, of Riverdale, to nine years in prison, to be followed by 15 years of supervised release, for receipt and distribution of child pornography.

According to court documents, investigators determined that Espinoza was making child pornography available through a file-sharing program. When a search warrant was executed at his residence on November 5, 2012, his computer contained at least 191 still images and 260 video images of minors being sexually abused. Some of the victims were under five years old, and several images depicted violence, bondage, or other sadistic or masochistic conduct. Espinoza admitted that he had used different file-sharing programs to access child pornography for many years. While Espinoza is on supervised release, his access to minors, computers, and the Internet will be restricted. He has been in custody since he pleaded guilty on April 28, 2014.

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).

Case 1:14-cr-053-LJO
United States District Judge Lawrence J. O’Neill sentenced Lorenzo Hernandez Martinez, 37, of Bishop, to 18 months in prison, to be followed by 36 months of supervised release, for attempted transfer of obscene material to a minor.

According to court documents, Martinez communicated through Facebook chats from mid-October 2013 through February 2014 with someone whom he believed to a 14 year-old female in Oregon. Martinez quickly turned the communications in a sexual direction, and he repeatedly transmitted explicit images. In fact, Martinez was communicating with an undercover detective in Corvallis, Oregon. The Corvallis Police Department worked with the Bishop Police Department and the Bakersfield FBI office to identify Martinez. When a search warrant was executed at his residence on March 11, 2014, agents seized a cellphone that contained communications with the undercover detective in Oregon as well as sexually explicit images that Martinez said he had transmitted to minors, including a minor female in China. Because he has resided in the United States without legal authorization for the past 18 years, Martinez also agreed not to challenge his removal from the United States.

Assistant United States Attorney David Gappa prosecuted both cases. They have been 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.

BAKERSFIELD, Calif. — Miguel Antonio Ruiz Jaramillo, 67, of Bakersfield, was sentenced today by United States District Judge Lawrence J. O’Neill to one year in federal prison and was ordered to pay $91,527 in unpaid federal taxes, U.S. Attorney Benjamin B. Wagner announced. Jaramillo was also ordered to perform 600 hours of community service.

According to court documents, from January 2010 through July 2012, Jaramillo cashed more than fifty checks in amounts of $10,000 or less at Valley Republic Bank located in Bakersfield, totaling more than $420,000. Jaramillo had the checks cashed in this manner to prevent, or attempt to prevent, the bank from filing a Currency Transaction Report on those transactions. He did not want a CTR filed because for the years 2010 and 2011, he did not declare the structured cash transactions as income on his federal tax returns.

This case is the product of an investigation by the Internal Revenue Service-Criminal Investigation and the Bakersfield Police Department under the auspices of the Central California Financial Crimes Task Force (CCFCTF), which is dedicated to investigating and prosecuting money laundering and Bank Secrecy Act crimes in the San Joaquin Valley. CCFCTF is composed of special agents from the Internal Revenue Service, Criminal Investigations (IRS-CI), Homeland Security Investigations (HSI), the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the Bakersfield Police Department, and the Fresno Police Department. Assistant United States Attorneys Grant B. Rabenn and Patrick Delahunty prosecuted the case.

Jaramillo was ordered to self-surrender in sixty days.

FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Manuel Riviera-Felix, a.k.a. Felipe Garcia, 26, , Edi Vega Bustamante, 21, and Juan Angel Lopez, 32,  charging all three with conspiracy to distribute and possess with intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced .  Riviera-Felix and Bustamante are also charged separately in two counts with distribution of methamphetamine and Lopez alone is charged in a separate count with possession with intent to distribute methamphetamine.  All three defendants are residents of Bakersfield, CA.

According to court documents, the three men conspired to distribute over 500 grams of methamphetamine.

This case was the product of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by: the Drug Enforcement Administration, the Kern County Sheriff’s Office, the Bakersfield Police Department, the Department of Homeland Security Investigations and the Southern Tri-County High Intensity Drug Trafficking Area Task Force. Assistant United States Attorney Brian K. Delaney is prosecuting the case.

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

SACRAMENTO, Calif. — Dignity Health, California’s largest hospital provider and the country’s fifth largest health system, has agreed to pay the United States $1.55 million to settle claims of deficiencies regarding the handling of controlled substances at its hospitals and clinics, United States Attorney Benjamin Wagner announced today.  Dignity Health will pay $1,250,000 immediately, and the remaining $300,000 will be deferred pending Dignity Health’s compliance over the next two years with a detailed action plan.

The payment and action plan resolve the United States’ claims that Dignity Health facilities in the Sacramento area failed to properly record hundreds of transactions involving controlled substances in violation of the Controlled Substances Act (CSA) and its implementing regulations, and had insufficient compliance procedures and controls regarding the distribution of controlled substances.  The action plan agreed to by Dignity Health is designed to advance the health system’s ability to meet its record-keeping requirements and its ability to detect and prevent diversion in its prescription drug-dispensing operations. 

The DEA commenced its investigation of Dignity Health following reported losses of over 20,000 tablets of hydrocodone from the outpatient pharmacy at St. Joseph’s Medical Center in Stockton, CA in late 2010 and 2011.  A 2011 audit conducted by the DEA at the pharmacy revealed significant shortages of a number of the controlled substances evaluated, including most strengths of hydrocodone, a Schedule III opioid analgesic narcotic sold in tablet form.  Hydrocodone is highly addictive and often diverted to the black market from legitimate sources.  The DEA’s subsequent investigation revealed that several Dignity Health locations were failing to keep accurate records under the laws designed to safeguard the public against diversion of the most abused classes of legally manufactured and prescribed drugs. 

Since the DEA’s investigation, Dignity Health executive leadership has worked cooperatively with the DEA and the U.S. Attorney’s Office to develop a detailed action plan to address the identified deficiencies in Dignity Health’s handling of controlled substances by instituting an overhauled CSA compliance regime.  Components of the action plan include: annual external audits of CSA compliance, with results to be reported to the DEA; keyless entry systems installed at Dignity Health locations to monitor and restrict access to areas containing controlled substances; increased physical counts and inventories of controlled substances to quickly identify discrepancies; monthly certifications that record-keeping requirements are met; and annual CSA compliance training for Dignity Health employees who handle controlled substances.

“The abuse of hydrocodone and other painkillers has become an epidemic,” said United States Attorney Wagner.  “The CSA created a ‘closed system’ of controlled substance distribution so the DEA can better monitor the movement of prescription drugs to end users.  This system reduces the opportunity for diversion of drugs that can have a useful and legitimate medical purpose for those lawfully consuming them.  Unfortunately, however, if hospitals and pharmacies are lax in their record-keeping or supervision of their drug-dispensing operations, opportunities arise for the diversion of powerful drugs to unintended users who may be injured by them.  We will continue to work with our law enforcement partners to investigate and prosecute these cases.”

“Healthcare providers have an obligation to protect public health.  Keeping accurate records and restricting access to controlled substances are key in fulfilling that responsibility,” stated DEA Special Agent in Charge Jay Fitzpatrick.  “This significant civil penalty underscores DEA’s commitment in the fight against prescription drug abuse by holding companies accountable, regardless of their size.”

Assistant United States Attorney Colleen M. Kennedy prosecuted the case.

FRESNO, Calif. — A federal grand jury returned a two-count indictment today against two San Francisco residents, charging them with conspiracy and marijuana cultivation, United States Attorney Benjamin B. Wagner announced.

According to court documents, Jimmy Gong Yan Lee, 54, and Wei Jin Huang, 53, were discovered cultivating approximately 2,500 marijuana plants in two dwellings in the town of Mariposa in Mariposa County. On April 14, 2014, Mariposa County Sheriff’s Deputies executed a search warrant and discovered 874 marijuana plants in one building that was devoted entirely to the cultivation of marijuana. A large generator was supplying power to the second building, a house where the bottom level and garage had been dedicated to solely growing marijuana. Lee and Huang were arrested as they exited this residence.

This case is the product of an investigation by the Mariposa County Sheriff’s Office. Assistant United States Attorney Kathleen A. Servatius is prosecuting the case.

If convicted, Lee and Huang 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.

SACRAMENTO, Calif. — Phillip J. Colwell, 54, of Sacramento, was sentenced today by United States District Judge Troy L. Nunley to 30 years in prison for producing child pornography, transmitting obscene matter to a minor, and using a cellphone to entice a minor to engage in unlawful sexual conduct, United States Attorney Benjamin B. Wagner announced.

Colwell pleaded guilty in April 2012. According to the guilty plea, Colwell engaged in a series of cellphone text conversations with a 14-year-old Sacramento boy to whom he sent sexually explicit images and with whom he sought to engage in sexual conduct. Colwell encouraged him to produce sexually explicit images of himself to send to Colwell. In July 2011, Colwell engaged in sex acts with a 16-year-old Sacramento boy, and took sexually explicit photos of him. Colwell then uploaded the photos to a website in order to promote the commercial sex trafficking of the boy.

In sentencing Colwell to 30 years, Judge Nunley stated “You are a predator. You prey on young boys.”

This case was the product of an investigation by the FBI’s Sacramento-based Innocence Lost Task Force, the Sacramento Police Department, and the Sacramento County District Attorney’s office. Assistant United States Attorney Matthew G. Morris prosecuted the case.

“Our agents and fellow Innocence Lost Task Force members bravely face the challenge of identifying and investigating individuals who seek to exploit a child’s innocence.  In this case, Colwell used a mobile phone and the internet to lure and exploit children,”  said Special Agent in Charge Monica M. Miller of the Sacramento division of the Federal Bureau of Investigation. “Colwell’s sentencing is an opportunity to remind all parents and guardians to monitor the text and online activity of each child and to reach out to law enforcement for help immediately if predatory activity is discovered or suspected. “

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

SACRAMENTO, Calif. — Richard Lee Gray, 57, of Foresthill, was sentenced today by United States District Judge Troy L. Nunley to one year in prison for destroying U.S. Post Office letter boxes, being a felon in possession of ammunition, and possessing over 15 unauthorized access devices with intent to commit fraud, United States Attorney Benjamin B. Wagner announced. Judge Nunley ordered Gray to pay $10,333 in restitution to the United States Postal Service.

This case was the product of an investigation by the United States Postal Inspection Service and the Placer County Sheriff's Office, with the assistance of the United States Forest Service. Assistant United States Attorney Michelle Rodriguez is prosecuting the case.

According to court documents, between January 2013 and April 2013, Gray pried open more than 20 post office letter boxes in the Placer County towns of Colfax, Auburn, and Foresthill. On April 2, 2013, a federal search warrant was executed at Gray's residence. In the house and in his car, officers found mail stolen from more than 108 victims. Gray also possessed burglary tools, pry bars, and ammunition.

SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today against a Seattle man who was serving a federal prison sentence in the Federal Correctional Institution Herlong in Lassen County, United States Attorney Benjamin B. Wagner announced.

Roderick Earl Vanga, 32, is charged with escape from custody. According to court documents, Vanga was serving a seven-year sentence for a drug offense when he escaped on April 5, 2013. He was apprehended on February 23, 2014, in Seattle and remains in custody.

This case is the product of an investigation by the U.S. Marshals Service, the King County (Wash.) District Attorney’s Office, and the police departments of Seattle and Renton. Assistant United States Attorney William Wong is prosecuting the case.

If convicted, Vanga faces 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.