Eastern District of California

SACRAMENTO, Calif. —Joshua Clymer, 28, currently of San Francisco, pleaded guilty today to conspiracy to commit mail and wire fraud in connection with a mortgage fraud scheme, United States Attorney Benjamin B. Wagner announced.

According to court documents, from approximately October 2006 through August 2008, Clymer participated in a mortgage fraud scheme involving multiple properties in the Sacramento area. As a part of the scheme, Clymer and a business partner used several fraudulent tactics to help buyers secure home loans from lenders, including inflating the buyer’s income, providing false employment histories, falsifying gifts made to the buyers, and giving undisclosed cash back to some buyers outside of escrow. Buyers of the properties later defaulted on their loans, leading to foreclosure sales, and in one instance a loan modification. The estimated loss associated with Clymer as a result of these activities is approximately $352,000.

This case was the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation. Assistant United States Attorneys Christopher S. Hales and Audrey Hemesath are prosecuting the case.

Clymer is scheduled to be sentenced by Judge William B. Shubb on September 22, 2014. Clymer faces a maximum statutory penalty of 30 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — Barry Rhodes, 28, of Stockton, was sentenced today by United States District Judge Morrison C. England Jr. to over 7 years and three months in prison for being a felon in possession of a firearm, United States Attorney Benjamin B. Wagner announced.

According to court documents, on March 9, 2013, in the city of Stockton, an officer pulled over Rhodes’s 1999 Buick Regal for an expired vehicle registration. Rhodes was unable to provide his driver’s license. The officer discovered that Rhodes had a suspended license, two outstanding arrest warrants, and was on active searchable probation. A search of the vehicle uncovered a 9 mm Sig Sauer semi-automatic handgun and a 15-round magazine with 12 live rounds of ammunition inside. Rhodes has five felony convictions since 2004.

This case is the product of an investigation by the Stockton Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Olusere Olowoyeye prosecuted the case.

“Today’s sentencing demonstrates our continued effort to apprehend violent offenders and to keep our citizens and our streets safe,” said Bureau of Alcohol, Tobacco, Firearms and Explosives, Special Agent in Charge, Joseph M. Riehl. “Our expertise in firearms investigations is a valuable asset we bring to the program as we continue our fight against violent crime with our partners.”

This case is the product of “Operation Gideon IV,” an ATF initiative targeting violent criminals and 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 violent criminals in Stockton and surrounding areas. As a result of this partnership, 52 defendants were charged federally, and 19 others were charged in state prosecutions. The operation also resulted in the collective seizure of 84 firearms, 36 pounds of methamphetamine, and 21 pounds of marijuana.

SACRAMENTO, Calif. — Stockton residents Rudy A. Trujillo, 35, and Regina L. Perea, 34, pleaded guilty today to three counts each of aggravated identification theft related to the fraudulent use of identification documents of others, United States Attorney Benjamin B. Wagner announced.

This case is the product of an investigation by the Stockton office of the United States Postal Inspection Service and the San Joaquin County Sheriff's Office with assistance from the Stockton and San Jose police departments, the Placer County Sheriff's Office, and the Delta Regional Auto Theft Task Force. Assistant United States Attorney Michelle Rodriguez is prosecuting the case.

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 all those responsible for stealing U.S. Mail and using the contents of stolen U.S. Mail in furtherance of fraud and identity theft crimes."

According to court documents, Trujillo and Perea possessed hundreds of pieces of stolen U.S. mail, along with hundreds of stolen checks, credit cards and identification documents at their Stockton residence. During the January 21, 2014, search of their residence, law enforcement recovered the stolen mail and found evidence indicating that the defendants were altering checks, and manufacturing credit cards. During the search, Trujillo and Perea successfully fled from law enforcement, and a high-speed chase ensued through Stockton residential streets. On March 7, 2014, Trujillo and Perea were arrested in San Jose. Upon arrest, the defendants were driving a stolen vehicle with stolen license plates and were again in possession of a large quantity of stolen U.S. mail, checks, credit cards, and identification documents. Perea had assumed the identity of at least two additional female victims while she and Trujillo were on the run from law enforcement.

Trujillo and Perea are scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on August 7, 2014. They face a mandatory minimum sentence of 24 months for each of the three aggravated identity theft convictions. 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. — Victor Anthony Nottoli, 51, of Hillsborough, Calif., pleaded guilty today to one count of conspiracy to defraud the United States and one count of causing at least 24 tons of misbranded smokable synthetic cannabinoids (SSC) to be introduced into interstate commerce. Four defendants arrested last week for manufacturing and distributing SSC were indicted today. The guilty plea and the indictments were announced by United States Attorney Benjamin B. Wagner; Jeffrey J. Fitzpatrick, Special Agent in Charge of the San Francisco Field Division of the U.S. Drug Enforcement Administration; Jose Martinez, Special Agent in Charge of the Oakland Field Office, Internal Revenue Service, Criminal Investigation; and Clark E. Settles, Special Agent in Charge of the San Francisco Field Office of the U.S. Immigration and Customs Enforcement’s, Homeland Security Investigations.

Nottoli pleaded guilty to one count of conspiracy to defraud the United States by interfering with the lawful governmental regulatory and enforcement functions of the FDA and DEA. According to court documents, between April 1, 2011, and June 26, 2013, Nottoli generated more than $20 million by distributing the SSC products commonly known as K2 or spice in retail outlets throughout the U.S. and from his six smoke shops doing business under the name “The Stuffed Pipe,” and located at 5135 W. Shaw Ave., Fresno; 2377 E. Shaw Ave., Fresno; 7273 N. Blackstone Ave., Fresno; 516 E. Olive Ave., Fresno; 1318 S. Mooney Ave., Visalia; and 3719 Wilson Rd., Bakersfield. In 2012, Nottoli bought a Florida company that manufactured and distributed SSC products and brought the production and distribution operations to a warehouse in Millbrae, Calif. Then in January 18, 2013, Nottoli leased a warehouse in Stockton and began manufacturing and distributing SSC products from that location.

According to court documents, Nottoli and his co-conspirators manufactured and distributed SSC products containing hallucinogenic chemical compounds AM‑2201 and XLR11. They referred to the SSC products as herbal incense, spice, botanicals, and potpourri and marketed them under names such as “Bizarro,” “Posh,” “Sonic Zero,” “Headhunter,” “Neutronium,” and “Orgazmo.” The products were labeled, “Not for Human Consumption.”

As charged in count two, Nottoli pleaded guilty to causing misbranded SSC products or drugs to be introduced into interstate commerce. According to court documents, between August 1, 2012, and June 26, 2013, twenty-four tons of misbranded drugs intended for human consumption were packaged and sold without the labeling required by law and necessary to protect the user such as: the place of business of the manufacturer, packer, or distributor; an accurate statement of the contents; adequate directions for use; warnings against use by children or where its use may be dangerous to health; warning against unsafe dosage; or methods or duration of administration or application.

In pleading guilty, Nottoli specifically agreed to the forfeiture of more than $6.6 million of drug proceeds: $6,488,000 in cash and $191,000 in other assets, including a truck and an Airstream Trailer.

Also today, a federal grand jury indicted Douglas Jason Way, 41, of Evanston, Ill.; Timothy Ortiz, 43, of Waukegan, Ill.; Timothy New, 31, of Pensacola, Fla.; and Natalie Middleton, 28, of Clovis, Calif., for their roles in Nottoli’s synthetic drug enterprise. The indictment charges Way, Ortiz, and New with conspiring to manufacture and distribute synthetic cannabinoids and with manufacturing, distributing, and attempting to possess with intent to distribute SSC products. Middleton, along with Way, Ortiz, and New, are also charged with causing the introduction of misbranded drugs into interstate commerce. Middleton individually was charged with engaging in a monetary transaction in property derived from drug trafficking to buy a time share in Lake Tahoe, Nevada.

“The use of synthetic or designer drugs has increased dramatically among teenagers and young adults. Although synthetic cannabinoids are marketed as ‘legal’ alternatives to marijuana, they are not only illegal but can be extremely harmful,” U.S. Attorney Wagner said. “We are committed to working with our law enforcement partners to shut down the manufacturers and distributors who reap tremendous profits without regard for the law or public safety.”

If convicted of the drug charges, Way, Ortiz, New, and Middleton face a maximum statutory penalty of 20 years in prison and a $1 million fine or twice the gain. The maximum statutory penalty for money laundering is 10 years in prison and a $250,000 fine. The FDA mislabeling charge carries a maximum penalty of three years in prison and a $10,000 fine or twice the gross gain. Any sentence imposed would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

Way, Ortiz, and Middleton are scheduled for arraignment on May 21, 2014, in Fresno. New was ordered detained by a U.S. Magistrate Judge in Dallas, and is awaiting transportation to federal court in Fresno.

Today’s guilty plea and indictment follows on the heels of last week’s nationwide synthetic drug takedown in connection with Project Synergy Phase II. Project Synergy is a law enforcement initiative coordinated by the DEA that brings together federal, state, local, and international law enforcement resources to target the dangerous global synthetic designer drug industry.

President Obama signed the Synthetic Drug Abuse Prevention Act into law in 2012, making 26 types of synthetic cannabinoids, including AM-2201, Schedule I drugs under the Controlled Substance Act. Last May, DEA placed XLR11 in Schedule I after the Centers for Disease Control and Prevention found that acute kidney injury is associated with XLR11.

This case is the product of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by the DEA, IRS-CI, and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), with assistance from the Office of Criminal Investigations of the Food and Drug Administration (FDA) and the Fresno County Sheriff’s Office. Assistant United States Attorney Karen A. Escobar is prosecuting the case and Assistant United States Attorney Heather Mardel Jones is handling the forfeiture of assets.

SACRAMENTO, Calif. — United States Attorney Benjamin B. Wagner announced that this week, in the Eastern District of California, two defendants were sentenced, three defendants pleaded guilty and one defendant was indicted for child pornography offenses. These cases were brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse.

Jason Garrett Duran Sentenced to 20 Years in Prison, 2:12-cr-371 TLN
Jason Garrett Duran, 44, formerly of Bishop, was sentenced on Thursday by United States District Judge Troy L. Nunley to 20 years in prison for possession of child pornography. Duran was convicted by the State of California in June 2002 of a felony involving the aggravated sexual abuse, sexual abuse, or abusive sexual contact involving a minor and received a 10-year sentence for that crime. Approximately three months after being paroled, Duran began acquiring a collection of child pornography and engaging in sexually explicit online chats. FBI agents conducted a parole search of his Sacramento apartment on October 10, 2012, and found approximately 375 images and one video of child pornography on his computer and a removable thumb drive.

At sentencing, Judge Nunley stated, “Child pornography is not a victimless crime.” He told Duran that he was “a person who committed one of the most horrendous and atrocious crimes a person could commit against the most vulnerable members of our community – our children.”

This case was the product of an investigation by the District of Columbia Metropolitan Police Department, and the FBI’s Washington DC and Sacramento field offices.

Erik David McKinney Sentenced to 5 Years, 2:13-cr-035 JAM
Erik David McKinney, 28, of Oroville, was sentenced on Tuesday, May 13, 2014, by United States District Judge John A. Mendez to five years in prison for receipt and distribution of child pornography, to be followed by a 20-year term of supervised release. McKinney is also required to register under the federal Sex Offender Registration and Notification Act (SORNA). In October 2012, agents identified a computer at McKinney’s residence that was offering files of child pornography over the Internet and obtained a search warrant. On his computers agents found 10 videos and 617 images of child pornography some showing the sadistic and masochistic abuse of prepubescent boys and girls and the abuse of toddlers. This case was the product of an investigation by the FBI and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).

Larry Steven Occhipinti Jr. Indicted
A federal grand jury indicted Larry Steven Occhipinti, 38, of Red Bluff, on Thursday, charging him with receipt of child pornography. The indictment alleges that between May 31, 2012, and April 29, 2014, Occhipinti downloaded child pornography through the Internet. Occhipinti was arrested on May 1, 2014, and made his initial appearance in Sacramento the next day. On May 9, 2014, he was ordered released into the custody of his parent, and placed on electronic monitoring. He was also ordered to not access the Internet, and to have no contact with children. He is scheduled for arraignment on May 16, 2014. This case was the product of an investigation by HSI.

If convicted, Occhipinti faces a sentence of five to 20 years in prison, a fine of up to $250,000, and a term of five years to life of supervised release. The charges are only allegations and the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

Keith Richard Hill Pleads Guilty, 2:12-cr-420 TLN
Keith Richard Hill, 33, of Sacramento, pleaded guilty on Thursday to possession of child pornography. In October 2011, agents identified a computer at Hill’s residence offering child pornography through the Internet. Among the files being offered were videos of prepubescent girls engaged in sexually explicit conduct. During a search of his residence, agents found two computers with approximately 60 videos of child pornography. Hill is scheduled to be sentenced by Judge Troy L. Nunley on July 31, 2014. He faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. This case was the product of an investigation by the Sacramento Internet Crimes Against Children Task Force.

John Franklin Bye Pleads Guilty, 2:14-cr-034 JAM
John Franklin Bye, 45, of Marysville, pleaded guilty on Tuesday, May 13, 2014, to distribution of child pornography. In the summer of 2013, the Nevada County Sheriff’s Department received a tip from the National Center for Missing and Exploited Children (NCMEC) that Bye had sent an email that contained child pornography. Law enforcement obtained a state search warrant for the contents of Bye’s emails and found a “Saved” folder and a “Sent” folder that contained emails with multiple attachments showing child pornography, including images of prepubescent children and images of sadistic and masochistic conduct. Bye is scheduled to be sentenced by Judge John A. Mendez on August 26, 2014, and faces a sentence of five to 20 years in prison and a fine up to $250,000. This case was the product of an investigation by the Federal Bureau of Investigation.

Jason Michael Carlsen Pleads Guilty; 2:14-CR-066 JAM
Jason Michael Carlsen, 41, of Citrus Heights, pleaded guilty on Tuesday, May 13, 2014, to distribution of child pornography. A person in Kentucky received a series of text messages with several pictures of child pornography and reported it to Kentucky State Police who determined that the sender of the messages lived in Citrus Heights. Citrus Height Police Department investigated and a forensic examination of Carlsen’s phone located more than 600 images and videos of child pornography. Also located on the phone were email folders titled “Sent”, “Drafts”, “Inbox” and “Uncategorized” that contained numerous emails with child pornography videos attachments that had been sent to various other email accounts. Carlsen is scheduled to be sentenced by Judge John A. Mendez on August 26, 2014, and faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. This case was the product of an investigation by the Citrus Heights Police Department, Kentucky State Police, and the Sacramento Internet Crimes Against Children Task Force.

Any sentences 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.

Assistant United States Attorney Kyle Reardon is the prosecutor for all of the foregoing cases.

The Sacramento Internet Crimes Against Children (ICAC) Task Force is 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.

Project Safe Childhood is led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section. It 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, visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.

FRESNO, Calif. — In three separate cases, defendants convicted of carrying out mortgage fraud schemes in Fresno and Bakersfield were sentenced to prison today, United States Attorney Benjamin B. Wagner announced.

Randy Lee Wilkins, 48, of Gilroy, was sentenced to four years and nine months in prison for carrying out a mortgage fraud scheme in Fresno. Wilkins was also ordered to pay $736,965 in restitution. A federal jury found Wilkins guilty in January 2014 of one count of conspiracy to commit wire fraud and bank fraud, three counts of bank fraud, and three counts of wire fraud. The court found that Wilkins obstructed justice by testifying falsely at trial, and also found that he directed other conspirators in carrying out the scheme. According to court documents and evidence presented at trial, between April 2006 and May 2007, Wilkins had applications for three home loans submitted in a co-conspirator’s name that contained false statements concerning the co-conspirator’s income, assets, liabilities, and intent to occupy the properties as his personal residence. Wilkins also received kickbacks funded by loan origination fees and other charges. Wilkins has been in custody since the verdict was returned in January.

Antonio Perez-Marcial, 41, of Bakersfield, was sentenced to three years and 10 months in prison for conspiracy to commit bank fraud, mail fraud, and wire fraud in connection with a mortgage fraud scheme in Bakersfield. Perez-Marcial was also ordered to pay $3,455,250 in restitution. From 2007 to 2010, Perez-Marcial conspired with others to use straw buyers to purchase residential properties in Bakersfield. The loan applications the conspirators submitted to lenders frequently contained false statements concerning the straw buyers’ employment status, income, assets, intent to occupy the properties as their personal residences, and source of down payments for the purchase of the properties. They also submitted false supporting documentation to lenders such as false bank account statements, rent verifications, pay stubs, and employment verifications.

Jeriel Salinas, 32, of Bakersfield, was sentenced to 19 months in prison and ordered to pay $1,488,762 in restitution for charges stemming from his involvement in an extensive Bakersfield mortgage fraud scheme that ran from January 2004 to September 2007. Salinas was a real estate agent at Crisp & Cole Real Estate (CCRE). According to court documents, the scheme defrauded mortgage companies and federally insured financial institutions by using straw buyers to acquire properties with funds borrowed from lenders based on false and fraudulent loan applications. The properties were nominally owned by the straw buyers, but were controlled by CCRE and held for the benefit of CCRE. According to his plea agreement, Salinas acted as a straw buyer for CCRE and knowingly made misstatements and omitted information in loan applications he submitted to lenders. Salinas also served as a real estate agent on other transactions in the scheme.

Seven other defendants have been sentenced in the CCRE scheme: David Crisp and Carl Cole were each sentenced to 17 years and seven months in prison. Jayson Peter Costa was sentenced to six years and six months in prison. Michael Munoz was sentenced to two years in prison. Caleb Cole was sentenced to five months in prison. Jennifer Crisp was sentenced to five years of probation. Robinson Nguyen has completed his 27-month sentence. Two remaining defendants, Julie Farmer and Sneha Mohammadi, are scheduled to be sentenced on July 14, 2014.

In 2009 and 2010, five cases related to the CCRE scheme were brought against five defendants. All have pleaded guilty to the charges and two of those defendants are scheduled to be sentenced on May 27, 2014: Kevin Patrick Sluga and Leslie Sluga. Three are scheduled to be sentenced on June 2, 2014: Jerald Allen Teixeira, Megan Balod, and Christopher Lance Stovall.

The Wilkins and Salinas cases were the product of investigations by the Federal Bureau of Investigation. The Perez-Marcial case is the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service - Criminal Investigation. Assistant United States Attorneys Kirk E. Sherriff and Grant B. Rabenn prosecuted the Wilkins case. The Perez-Marcial case was prosecuted by Assistant U.S. Attorneys Kirk E. Sherriff and Henry Z. Carbajal III. The Salinas case was prosecuted by Assistant U.S. Attorneys Kirk E. Sherriff, Henry Z. Carbajal III, and Christopher D. Baker.

FRESNO, Calif. — Today, United States District Judge Lawrence J. O'Neill sentenced Jennifer Lorraine Coleman, 24, of Clovis, to two years in prison, to be followed by three years of supervised release, for aiming a laser pointer at a law enforcement aircraft, and Brett Lee Scott, 26, of Bakersfield, entered a guilty plea to the same crime, United States Attorney Benjamin B. Wagner announced.

Coleman and her boyfriend, Sergio Patrick Rodriguez, 26, of Clovis, were both convicted by a federal jury after a three–day trial in Fresno in December 2013.

“Coleman and Rodriguez demonstrated outrageous and willful disregard for the safety of aviators, Air George’s patients, and the public,” said Special Agent in Charge Monica M. Miller of the Sacramento FBI. “The FBI and our state and local law enforcement partners are committed to locating, identifying, and arresting individuals who intentionally shine lasers at aircraft aloft, recklessly jeopardizing the safety of the communities we serve.”

According to evidence presented at trial, Coleman and Rodriguez used a high‑powered green laser pointer to repeatedly strike the cockpit of a Fresno Police helicopter, Air 1, during a clear summer night in 2012. Air 1 had responded to the apartment complex where Coleman and Rodriguez lived near the Fresno Yosemite International Airport, to investigate the report of laser strikes on Air George, an emergency transport helicopter for Children’s Hospital of Central California. The laser pointer that Coleman and Rodriguez used was 13 times more powerful than the permissible power emission level for hand-held laser devices. The crew members of both Air 1 and Air George testified that the laser strikes caused significant visual interference.

In imposing sentence, Judge O’Neill considered the opinion of Dr. Leon McLin, a Senior Research Optometrist for the Air Force Research Laboratory who testified at trial, that the laser pointer that Coleman used was an instrument capable of inflicting serious bodily injury and, indirectly, death due to a high potential for crash caused by visual interference.

Judge O'Neill found the high‑powered laser pointer was a dangerous weapon, and referring to the potential for a crash resulting from the pilots’ impaired vision stated, "I physically shudder to think of what could have happened."

The Coleman case was the product of an investigation by the Federal Bureau of Investigation, with assistance from the Clovis and Fresno Police Departments, Federal Aviation Administration, and the National Institute of Standards and Technology of the U.S. Department of Commerce. Assistant United States Attorneys Karen A. Escobar and Michael G. Tierney prosecuted the case.

In a separate laser case, Scott pleaded guilty to aiming a laser pointer at a Kern County Sheriff helicopter, also known as Air-1. Scott acknowledged that he used two different laser pointers to strike Air-1 over a six-month period. The lasers emitted powerful green and purple laser 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.

Sentencing for Scott is set for July 21, 2014. He faces a maximum statutory penalty of five years in prison and a $250,000 fine for aiming a laser pointer at Air-1. 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.

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 is prosecuting this case.

According to the FAA, there were 3,960 reports of people shining lasers at aircraft in the United States in 2013. In the Eastern District of California, which encompasses 34 counties in the eastern portion of California, reported 94 laser strikes, with the largest number of laser incidents reported by the Fresno Yosemite International Airport and Bakersfield Meadows Field Airport. 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 decrease in the number of laser incidents.

FRESNO, Calif. — Noe Alvarez Ramirez, 28, of Michoacàn, Mexico, was sentenced today to two years and nine months in prison, and Rudy Alberto Gonzalez Rocha, 28, and his brother, Eloy Damian Gonzalez Rocha, 32, both of Jalisco, Mexico, entered guilty pleas to being aliens in possession of firearms seized from a marijuana cultivation site, according to U.S. Attorney Benjamin B. Wagner.

7,302 Marijuana Plants Seized from Sequoia National Forest (No. 1:13-cr-172 AWI)
Alvarez was sentenced following his guilty plea in March to conspiring to manufacture, distribute, and possess with intent to distribute marijuana grown in the Gibboney Canyon area of the Sequoia National Forest in Kern County. The area is also within the federally designated Domeland Wilderness area. According to court documents, U.S. Forest Service agents seized 7,302 marijuana plants from the site and found 5,000 marijuana plant stalks consistent with a prior harvest in 2012. During the execution of a federal search warrant at the site, agents found Alvarez sleeping in a tent. Alvarez was also ordered to pay $2,675 in restitution to the U.S. Forest Service caused by the negative environmental impact of the cultivation. Trash and fertilizer bags were scattered about the area and the ground was terraced after native vegetation, including oak trees, was cut down to make room for the marijuana plants. Trash also was found in the waterway of Gibboney Creek. Alvarez is subject to potential deportation to Mexico after he serves any prison sentence.

This case was investigated by the U.S. Forest Service, U.S. Drug Enforcement Administration, California Department of Fish and Wildlife, and the Kern County Sheriff’s Office.

Firearms Seized from Fresno County Grow (1:14-cr-39 AWI)
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, Calif. 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.

This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Fresno County Sheriff’s Office, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives.

The Gonzalez brothers are scheduled for sentencing on August 4, 2014. They face a maximum prison term of 10 years and a $250,000 fine. Their actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

Assistant U.S. Attorney Karen A. Escobar is prosecuting the above cases.

SACRAMENTO, Calif. — Thanks to the efforts of federal and local law enforcement working together, over the course of the past week three federal indictments have been brought against Sacramento defendants Jose Manuel Hernandez, Michael Rojas Jr., and Gabriel Reyes Hernandez, charging each of them with illegal possession of firearms. This announcement was made by United States Attorney Benjamin B. Wagner, Bureau of Alcohol, Tobacco, Firearms and Explosives, Special Agent in Charge Joseph M. Riehl, and Sacramento Police Chief Sam Somers.

The Project Safe Neighborhoods initiative (PSN) brings together federal, state and local law enforcement to combat gun and gang crime. At the core of PSN is increased federal prosecution to incapacitate chronic violent offenders as well as to communicate a credible deterrent threat to potential gun offenders.

Jose Manuel Hernandez, 30, was charged with possessing a firearm after previously being convicted of a felony, and in addition with possessing with intent to distribute methamphetamine, cultivating marijuana, and possessing with intent to distribute marijuana.(Docket # 2:14-cr-122 JAM)  Michael Rojas Jr., 24, was charged with being a felon in possession of a firearm. (Docket # 2:14-cr-134 JAM)  Gabriel Reyes Hernandez, 27, was charged with being a felon in possession of a .40 caliber Glock 23 pistol with an obliterated serial number. (Docket # 2:14-cr-129 JAM)

These cases are the product of investigations by the Sacramento Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorneys Michael McCoy and Justin Lee are prosecuting the cases.

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

SACRAMENTO, Calif. — Deepal Wannakuwatte, 63, of Sacramento, pleaded guilty today to one count of wire fraud in furtherance of a long-running and large-scale fraud scheme, announced United States Attorney Benjamin B. Wagner, Special Agent in Charge Monica M. Miller of the FBI’s Sacramento Field Office, Jose M. Martinez Special Agent in Charge for the IRS-Criminal Investigation (IRS-CI) and Wade V. Walters Special Agent in Charge of the Federal Deposit Insurance Corporation (FDIC) Office of Inspector General (OIG).

Under the terms of his plea agreement, the government will recommend that United States District Judge Troy L. Nunley sentence Wannakuwatte to 20 years in prison, the maximum punishment allowable for the offense to which he pleaded guilty. In addition, the agreement requires Wannakuwatte to forfeit multiple properties, vehicles, business interests, and bank accounts to be used to provide restitution to victims.

According to the plea agreement, from 2002 to 2014, Wannakuwatte convinced more than 100 victims, including individuals, corporate entities, and financial institutions, to invest in a number of business opportunities by misrepresenting the financial worth of himself and his companies. Wannakuwatte’s companies, IMG and Relyaid, were involved in the international manufacture, shipment, and distribution of latex gloves. He falsely claimed that these companies did tens of millions of dollars in business with federal agencies every year, most notably the Department of Veterans Affairs. In 2013, Wannakuwatte claimed to have more than $125 million in VA contracts alone. In fact, while he did have a contract with the VA, it was worth up to only $25,000 a year.

In all, Wannakuwatte ultimately obtained well over $150 million from his victims. Contrary to his representations, Wannakuwatte used much of the money he obtained to pay himself and his family, make lulling payments to participants in his fraudulent investment schemes, and pay outstanding debts unrelated to his false representations.

“Mr. Wannakuwatte’s guilty plea brings to an end to one of the longest running, most extensive, and most damaging fraud schemes our region ever has seen,” said U.S. Attorney Wagner. “We are still calculating the total damage resulting from his scheme, but he caused well over $50 million in losses, and the total losses could be closer to $100 million. Together with the FBI and the IRS, our office moved swiftly to ensure not only that he would be held accountable for this crime, but also that we could take all steps possible to return remaining funds to his victims. The very substantial sentence that he is likely to receive should send a clear message that my office will continue to prosecute financial crimes like this one vigorously.”

“Wannakuwatte’s financial empire collapsed because it was based on fraud and deceit. Unfortunately, he left a trail of victims — individuals, businesses, government agencies, venture funds, and other lenders — who suffered significant losses,” said Special Agent in Charge Monica M. Miller of the Sacramento FBI. “The FBI is committed to working with our agency partners to aggressively pursue those who betray the trust of the public for personal gain.”

“This was not your average Ponzi scheme,” said José M. Martínez, Special Agent in Charge, IRS-Criminal Investigation. “The fraud involved hundreds of millions of dollars and more than 100 victims including individuals, corporate entities and financial institutions. The defendant conned investors through the use of false documents, inflated tax returns, and convincing lies. IRS-CI will continue to work closely with our law enforcement partners to aggressively pursue fraud schemes such as these.”

“The Federal Deposit Insurance Corporation (FDIC) Office of Inspector General (OIG) is pleased to have joined the Department of Justice and our law enforcement colleagues in conducting this investigation,” stated FDIC OIG Special Agent in Charge Wade V. Walters. “We are especially concerned when individuals like Mr. Wannakuwatte defraud our nation’s financial institutions. We are firmly committed to joint efforts such as this one in the interest of ensuring integrity in individual institutions and the financial system as a whole.”

Wannakuwatte used a variety of false and fraudulent means to back up his claims of financial success. For example, Wannakuwatte regularly provided investors with inflated financial statements that supported his claims that he had more than $100 million in sales with the VA. He also regularly provided victims with false corporate ledgers from IMG and Relyaid. Some ledgers falsely showed tens of millions of dollars in accounts receivable from the VA. Other ledgers falsely showed tens of millions of dollars in glove inventory.

Wannakuwatte also provided his victims with personal and corporate tax returns. Wannakuwatte actually reported and paid taxes on returns that falsely overstated his annual personal income and the annual gross receipts and sales for IMG. He used these returns to establish his financial credibility with financial institutions and individual investors.

On at least two occasions, Wannakuwatte set up fake conference calls between himself, a victim, and a person whom he directed to act as a VA representative. The conference calls were to convince victims of the value of the VA contracts and the relationship Wannakuwatte claimed to have with the VA.

Wannakuwatte’s plea agreement contains multiple provisions designed to return as much investor money as possible. He must disclose the existence of any assets or property that he obtained as the result of his scheme, and forfeit his interest in 16 properties, four vehicles, multiple bank accounts, insurance policies, business interests, and any tax refunds to which he may be entitled. Wannakuwatte’s properties are in Hawaii, Oregon, and in the counties of Sacramento, Yolo, and Yuba. They include his residence, vacation homes, and commercial properties. In addition, Wannakuwatte agreed to file for personal bankruptcy, and to file bankruptcy petitions on behalf of any business in which he may have an interest. These filings must be done by the end of May 2014 and should give creditor victims a forum to pursue claims against him.

This case is the product of an investigation by the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigation, and the Federal Deposit Insurance Corporation, Office of Inspector General, Office of Investigations. Assistant United States Attorneys Michael Beckwith and Kevin Khasigian are prosecuting the case.

Wannakuwatte is scheduled to be sentenced by Judge Nunley on July 24, 2014. The plea agreement is subject to the approval of Judge Nunley. If the agreement is accepted, Wannakuwatte’s actual sentence will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. —Mark Jeff Zeldes, 52, of Broomfield, Colo., appeared today in federal court in Fresno to face charges contained in an indictment of cultivating and distributing marijuana, United States Attorney Benjamin B. Wagner announced.

According to court documents, between June 1, 2009, and March 9, 2010, Zeldes was responsible for a large-scale marijuana cultivation and distribution operation with multiple indoor grow locations in Bakersfield, Newbury Park, and Northridge, Calif. After being questioned by law enforcement agents in California, Zeldes relocated to Colorado where he continued to engage in marijuana cultivation and interstate distribution activities.

Following his arrest on April 8, 2014, Zeldes was brought before a U.S. Magistrate Judge in Denver, who ordered him detained as a flight risk and danger to the community. Zeldes remains in custody and is next scheduled to appear in court in Fresno for a status conference on June 23, 2014.

If convicted, Zeldes faces a 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 defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case is the product of an investigation by the U.S. Drug Enforcement Administration with assistance from the U.S. Marshal Service and Bakersfield Police Department. Assistant United States Attorney Karen Escobar is prosecuting the case.

FRESNO, Calif. — Douglas Jason Way, 41, of Evanston, Ill.; Timothy Ortiz, 43, of Waukegan, Ill.; and Natalie Middleton, 28, of Clovis, Calif., have been arrested as part of a nationwide law enforcement effort to combat the threat of synthetic drugs. The arrests were announced by United States Attorney Benjamin B. Wagner; Jeffrey J. Fitzpatrick, Special Agent in Charge of the San Francisco Field Division of the U.S. Drug Enforcement Administration; Jose Martinez, Special Agent in Charge of the Oakland Field Office, Internal Revenue Service, Criminal Investigation; and Clark E. Settles, Special Agent in Charge of the San Francisco Field Office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.

The defendants were charged in a federal criminal complaint with conspiracy to traffic synthetic cannabinoids, commonly known as “spice,” “K2,” or “herbal incense.” They were also charged with causing the introduction of misbranded drugs into interstate commerce. Middleton, individually, was charged with money laundering the proceeds of drug trafficking. According to the complaint, the conspiracy involved the manufacture and distribution of at least 11 tons of smokable synthetic cannabinoids that contained the synthetic drugs AM-2201, JWH-018, and XLR11 to smoke shops and retail outlets throughout the United States and generated in excess of $20 million in illicit income. Manufactured by companies called Zencense and Zenbio, the drugs were processed in warehouses in Millbrae and Stockton, Calif. and marketed under the brand names of Bizarro, Posh, Sonic Zero, Headhunter, Neutronium, and Orgazmo. They were distributed to The Stuffed Pipe smoke shops in Central Valley, as well as to other retail establishments in 47 other states.

Public health and law enforcement agencies have seen the emergence of synthetic drug use. State and local public health departments note that synthetic cannabinoids can cause serious adverse health effects, including agitation, anxiety, nausea, vomiting, tachycardia, elevated blood pressure, tremor, seizures, hallucinations, and paranoid behavior. According to the American Association of Poison Control Centers, poison centers throughout the United States received 5,230 calls about exposures to these drugs in 2012 and 2,656 calls about exposures in 2013. Synthetic cannabinoids are not regulated as drugs for human consumption, and are often marketed as “legal” substances and sometimes labeled as “herbal incense” or “potpourri.” To address this emerging challenge, President Obama signed the Synthetic Drug Abuse Prevention Act into law in 2012, classifying 26 types of synthetic cannabinoids, including AM-2201, as Schedule I drugs under the Controlled Substance Act. DEA placed JWH-018 in Schedule I in 2011 and placed XLR11 in Schedule I last year.

This case was the product of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by the DEA, IRS, and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), with assistance from the Food and Drug Administration and the Fresno County Sheriff’s Department. The OCDETF program was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, OCDETF is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. This OCDETF investigation was also part of a nationwide law enforcement effort coordinated by the DEA’s Special Operations Division.

This enforcement action called Project Synergy began January 2014 and culminated this morning in 29 states. Project Synergy involves more than 45 DEA offices serving nearly 200 search warrants. As of today, more than 150 individuals have been arrested and federal, state and local law enforcement authorities have seized hundreds of thousands of individually packaged, ready-to-sell synthetic drugs as well as hundreds of kilograms of raw synthetic products to make thousands more. Additionally, more than $20 million in cash and assets were seized. These numbers are expected to grow as investigations continue.

The three Eastern District of California defendants were arrested in other districts. They will make their initial in the district where they were arrested, and a court date in the Eastern District of California has not yet been set.

If convicted of the drug charges, Way, Ortiz, and Middleton face a maximum statutory penalty of 20 years in prison and a $1 million fine. The FDA mislabeling charge carries a maximum statutory penalty of three years in prison and a fine of $10,000. Middleton also faces a maximum statutory penalty of 20 years in prison and a $250,000 fine if convicted of the money laundering charge. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

Assistant United States Attorney Karen A. Escobar is prosecuting the case, and Assistant United States Attorney Heather Mardel Jones is handling the forfeiture of assets.

FRESNO, Calif. — The last defendants in a series of large cases targeting the Nuestra Familia prison gang were sentenced in U.S. District Court this week, U.S. Attorney Benjamin B. Wagner announced. In total, 37 defendants were sentenced to federal prison, 18 of them to 10 years or more in prison. One defendant was sentenced to probation. They were sentenced for drug trafficking offenses committed to advance the Nuestra Familia gang.

On Monday, May 5, 2014, Jose Velez, 32, of Delano, was sentenced to 30 years in prison; Felipe Ramirez, 34, of Visalia, was sentenced to 28 years in prison; Christopher Medrano, 33, of Hanford, was sentenced to 12 years and seven months in prison; Raymond Avalos, 31, of Hanford, was sentenced to 20 years in prison; and Calixtro Israel Sanchez, 26, of Hanford, was sentenced to 12 years and seven months in prison.

On April 28, 2014, Shawn Michael Cameron, 38, of Hanford, was sentenced to 32 years in prison; Jonathan Mojarro, 24 of Hanford, was sentenced to 13 years in prison. On April 23, 2014, Richard Salas, 28, of Hanford, was sentenced to 20 years in prison. The federal charges were dismissed for four defendants in favor of significant state sentences.

All of the defendants in this case pleaded guilty to the charges and did not go to trial. They were members or associates of the Nuestra Familia (NF), a violent Hispanic prison gang based within the California prison system whose members exert control over street‑level Norteño gang members engaged in drug trafficking and violent crime throughout the Central Valley.

According to court documents, during 2009 and 2010, the NF trafficked in methamphetamine, distributing the drugs and collecting debts in Kings, Tulare, Kern, Stanislaus, Merced, Madera, and Fresno Counties. The NF obtained large shipments of methamphetamine from Mexico and distributed it among NF regiments throughout California and elsewhere. Some of the profits of the trafficking funded NF members in prison in order to maintain the NF’s power structure within the prison system.
“Numerous federal, state and local law enforcement agencies in this region came together to take on one of the most dangerous gangs in California,” said U.S. Attorney Wagner. “Our work is not done, but many of the most powerful members of the Nuestra Familia will be spending many years in federal prison in places far removed from the Central Valley.”

“Organized prison gangs and other criminals who traffic drugs are responsible for increased violence in our communities,” stated Bureau of Alcohol, Tobacco, Firearms and Explosives, Special Agent in Charge Joseph M. Riehl. “This investigation is a prime example of teamwork and superior collaboration among many law enforcement agencies with a successful investigative conclusion and prosecution.”

“Today’s significant sentences demonstrate the success multi-agency Organized Crime Drug Enforcement Task Forces have in achieving the common goal in reducing violence and drug trafficking by taking offenders off the streets,” said Special Agent in Charge Monica M. Miller of the Sacramento FBI. “The FBI is committed to ongoing unified collaboration with our partners to identify, disrupt, and dismantle violent gangs who pose a threat to safety and quality of life in our communities.”

“This investigation was an example of how successful we can be when local, state and federal agencies work together to investigate, arrest, and prosecute this level of criminal enterprise that penetrates our communities. We are very vigilant to make sure that when they attempt to take a hold in our communities in the future, we will be just as aggressive in the investigation and their arrest and prosecution," stated Carlos Mestas, Chief of Police, Hanford Police Department.

This case was the product of an extensive series of Organized Crime and Drug Enforcement Task Force (OCDETF) investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the FBI; Kings County Narcotic Task Force; the California Department of Justice; and the California Department of Corrections and Rehabilitation. Numerous local law enforcement agencies played key roles in the investigations, including the Police Departments of Hanford, Lemoore, Visalia, Los Banos, and Corcoran, the Kings County Sheriff’s Office, the California Highway Patrol, and the U.S. Marshals Service. Assistant United States Attorneys Kimberly A. Sanchez, Kathleen A. Servatius, and Melanie L. Alsworth prosecuted the case.

This was one of a series of NF cases prosecuted in the Eastern District of California. In two other cases completed in US District Court in Fresno in 2013, seven NF associates were each sentenced to between 10 and nearly 16 years for drug trafficking offenses. In the Sacramento division of the Eastern District, three more cases have resulted in additional prison sentences for NF leaders and associates. At least 16 people were sentenced to 10 years or more in the Sacramento federal cases. See attachments for more information.

FRESNO, Calif. — Two men pleaded guilty to offenses involving material related to the sexual exploitation of minors in separate cases in federal court today, United States Attorney Benjamin B. Wagner announced.

Aaron Lewis Gaudinier, 50, of Madera, pleaded guilty before United States District Judge Lawrence J. O’Neill to one count of receipt and distribution of child pornography. According to a plea agreement, on dates between December 14, 2011, and February 4, 2012, Gaudinier knowingly received and distributed more than 600 images of minors engaged in sexually explicit conduct. Some of the images were of prepubescent minors and some images depicted violence. Gaudinier has been detained as a danger to the community and flight risk since his initial appearance on February 15, 2012.

Gaudinier will be sentenced on July 21, 2014, at which time he faces potential punishments of 20 years imprisonment, a lifetime term of supervised release, a $250,000 fine, and a mandatory $100 penalty assessment. The actual sentence imposed, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines. 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. Case 1:12-cr-00057-LJO-SKO.

Lorenzo Hernandez Martinez, 37, of Bishop, pleaded guilty before United States District Judge Lawrence J. O’Neill to one count of 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 the defendant. When a search warrant was executed at his residence in Bishop on March 11, 2014, agents seized a cellular telephone 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.
Martinez is scheduled to be sentenced on July 21, 2014. He faces a maximum prison term of 10 years, a potential fine of $250,000, and a three-year term of supervised release. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines. Case 1:14-cr-053-LJO-SKO.

Assistant United States Attorney David Gappa is prosecuting these two 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.

FRESNO, Calif. – Husband and wife, Hoang Minh Nguyen, 32, and Dung Hang Dao, 32, of San Jose, were sentenced today by United States District Judge Lawrence J. O’Neill to 12 months of time-served and ordered to pay $70,000 in restitution for customs fraud and money laundering, United States Attorney Benjamin B. Wagner announced. The defendants also agreed to forfeit bank accounts and a property valued at more than $400,000.  

According to court documents, from November 2008 through January 2013, Nguyen and Dao owned an online clothing company that utilized several websites to sell clothing imported from China to customers in the United States. As part of their scheme, Nguyen and Dao declared the imported clothing as samples even though they would later sell it to customers. By declaring the clothing as samples, Nguyen and Dao were able to avoid paying customs duties.

With the proceeds from their business, Nguyen and Dao sent significant amounts of cash to China via Western Union money transfers. They broke up the cash deposits to Western Union agents into amounts of $10,000 or less in an attempt to prevent Western Union from filing Currency Transaction Reports on those transactions, in violation of the Bank Secrecy Act. In addition, Nguyen and Dao laundered the proceeds of their business by purchasing properties in Patterson and San Jose. Nguyen and Dao pleaded guilty to the charges on February 12, 2014.

“Commercial smuggling schemes like this not only rob the government of vital revenues, they also undermine the economy and penalize businesses that follow the rules,” said Mike Prado, resident agent in charge of HSI Fresno. “We will continue to vigorously prosecute those unscrupulous importers who gain an unfair advantage.”

This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Internal Revenue Service – Criminal Investigation, and the Central California Financial Crimes Task Force. Assistant United States Attorney Grant B. Rabenn prosecuted the case.  

FRESNO, Calif. — David Thomas Hume, 37, of Fresno, was sentenced today by Senior United States District Judge Anthony W. Ishii to 12 years and seven months in prison for distribution of child pornography, United States Attorney Benjamin B. Wagner announced.

According to court documents, between November 28, 2012, and January 24, 2013, Hume distributed more than 600 images depicting minors engaged in sexually explicit conduct. The images also depicted prepubescent minors involved in the portrayal of sadistic, masochistic, and other depictions of violence. Hume was taken into custody on February 14, 2013, was indicted two weeks later for distribution of child pornography, and pleaded guilty to this charge on February 24, 2014.

This case was the product of an extensive investigation by the Central California Internet Crimes Against Children Task force, specifically the Fresno U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Fresno County Sheriff’s Office. Assistant United States Attorney Brian W. Enos is prosecuting the case.

“Each time an image of child pornography is viewed, that child is victimized again,” said Mike Prado, resident agent in charge of HSI Fresno. “As a result of HSI’s close collaboration with our law enforcement partners here in the Central Valley, this individual will be held accountable for his actions and spend many years behind bars, where he can no longer victimize innocent children.”

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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, 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. — A second superseding indictment was unsealed today adding 19 counts including racketeering conspiracy and attempted murder against three defendants for their alleged participation in the violent Nuestra Familia gang, Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division and U.S. Attorney Benjamin B. Wagner announced.

“This complex case identified the network beyond the gang’s drug distribution channels and revealed a command structure that directs violent acts to gain and maintain control of its members, regardless of whether the members are walking the streets of Modesto or incarcerated,” said Supervisory Special Agent Todd Irinaga of the Modesto FBI office. “Today’s indictments demonstrate the effectiveness of a multi-agency, multi-jurisdictional Organized Crime Drug Enforcement Task Force (OCDETF) approach to dismantling drug trafficking organizations who threaten the safety and quality of life in our communities.”

Gary Anthony Romero, 48, of Stockton, and Joe Anthony Felix, 34, of Modesto, were first charged with conspiracy to distribute and possess with intent to distribute methamphetamine by a federal grand jury in Fresno. The superseding indictment, returned under seal on April 30, 2014, includes all of the charges alleged in the original indictment, as well as new charges against them. A new defendant, Jesus Gomez Felix, 30, of Modesto, was also charged.

Jesus Felix was arrested today and made his initial appearance in federal court in Fresno today. Romero and Joe Felix were arraigned on the charges today in Fresno. They have been in federal custody since March 2013.

According to the superseding indictment, Nuestra Familia is a prison gang that originally formed in the California state prison system in the 1960s. Nuestra Familia leaders control and direct the gang’s criminal activities both inside and outside of the prison system.

 According to the superseding indictment, Romero has been a member of Nuestra Familia for about 20 years and has reached one of the highest levels of authority in Nuestra Familia. He allegedly ordered various crimes to be committed for the benefit of the gang in Stanislaus County, including attempted murders, assaults, robberies and drug dealing. Romero is charged with racketeering conspiracy; six counts of attempted murder and six counts of assault with a dangerous weapon, all in aid of racketeering; one count of using and brandishing a firearm during a crime of violence; one count of conspiracy to commit robbery; and one count of conspiracy to distribute methamphetamine.

 Joe Felix became a Nuestra Familia leader in Stanislaus County in 2012 and allegedly ordered members of the gang to commit murder and deal drugs in Modesto. Joe Felix is charged with racketeering conspiracy; one count of attempted murder, one count of conspiracy to commit murder, and one count of assault with a dangerous weapon, all in aid of racketeering; one count of using and discharging a firearm during a crime of violence; and one count of conspiracy to distribute methamphetamine.

 Jesus Felix is charged with one count of assault with a dangerous weapon resulting in serious bodily injury in aid of racketeering and one count of using and discharging a firearm during a crime of violence.

 This case was investigated by the Central Valley Gang Impact Task Force under the FBI’s Safe Streets Initiative, with the assistance of the Stanislaus County District Attorney’s Office, Stanislaus County Sheriff’s Office, Modesto Police Department, Ceres Police Department, the California Highway Patrol, the California Department of Corrections and Rehabilitation, the Bureau of Prisons and the Stanislaus County Probation Department.

 The case is being prosecuted by Trial Attorney Louis A. Crisostomo of the Criminal Division’s Organized Crime and Gang Section and Assistant United States Attorneys Kimberly A. Sanchez and Laurel J. Montoya of the Eastern District of California.

 The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty. If convicted, each defendant faces a maximum statutory penalty of life in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — Leopoldo “Polo” Rodriguez, 42, of Bakersfield, pleaded guilty today to conspiracy to distribute and possess with the intent to distribute, marijuana, United States Attorney Benjamin B. Wagner announced.

According to court documents, Rodriguez and his fellow conspirators planned to send large quantities of marijuana from Bakersfield to Memphis, Tennessee. On August 26, 2013, Rodriguez and co-defendant Jesus Quintero were arrested while they were transporting approximately 300 pounds of marijuana intended to be sent to Memphis. Later that same day, a search warrant executed at a ranch in Bakersfield led to the seizure of 80 pounds of marijuana and the arrest of co-defendant Jose Torres Quintero.

This case was the product of an investigation by the Drug Enforcement Administration and the Bakersfield Police Department. Assistant United States Attorney Kevin Rooney is prosecuting the case.

Co-defendants Jesus Quintero and Jose Torres Quintero have pled not guilty and should be presumed innocent unless and until they are found guilty. They are scheduled for a status conference on June 9, 2014.

Rodriguez is scheduled to be sentenced by Judge Anthony W. Ishii on July 14, 2014. Rodriguez faces a maximum statutory penalty of 20 years in prison and a $1,000,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — Jorge Guevera, 35, of Arvin, pleaded guilty today to conspiracy to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.

According to court documents, Guevera attempted to sell 17 pounds of methamphetamine to an undercover Kern County Sheriff’s deputy. On June 26, 2013, Guevera met with the undercover deputy in a parking lot of a fast food restaurant in Bakersfield to complete the sale of drugs. Upon his arrest, officers found 17 pounds of methamphetamine was found hidden in the vehicle.

This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Kern County Sheriff’s Department and the Southern Tri-County High Intensity Drug Trafficking Area Task Force. Assistant United States Attorney Brian K. Delaney is prosecuting the case.

Guevera is scheduled to be sentenced by United States District Judge Lawrence J. O'Neill on July 28, 2014. Guevera faces a maximum statutory penalty of life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — Ruben Barajas, 37, of Stockton, was sentenced today by United States District Judge Troy L. Nunley to 11 years in prison for possession with intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.

According to court documents, Barajas was selling methamphetamine out of his taco truck.   He was found in possession of over 2 kilograms of pure methamphetamine.

This case was the product of an investigation by the San Joaquin County Metropolitan Narcotics Task Force, the Stockton Police Department Community Response Team, and the Drug Enforcement Administration. Assistant United States Attorney Olusere Olowoyeye prosecuted the case.

SACRAMENTO, Calif. — Snangehk Peou, 25, of Stockton, was sentenced on May 1, 2014, by United States District Judge Morrison C. England, Jr. to five years and 11 months in prison for conspiring to commit a robbery affecting interstate commerce, United States Attorney Benjamin B. Wagner announced.

According to court documents, Peou agreed to be a participant in the robbery of a “stash house”—a residence in Stockton where he and other members of the conspiracy believed that individuals were holding a large quantity of cocaine.

Peou’s conviction was the result of an investigation by Stockton Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Paul Hemesath prosecuted the case.

Peou’s alleged co-conspirators are awaiting further court proceedings.  The charges against these defendants are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case is the product of “Operation Gideon IV,” an ATF initiative targeting violent criminals and 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. As a result of this partnership, 52 federal defendants were charged and 19 state prosecutions. The operation also resulted in the seizure of 84 firearms, 36 pounds of methamphetamine, and 21 pounds of marijuana.

SACRAMENTO, Calif. — Michael T. Sahlbach, 60, of Granite Bay, was arrested today for six counts of bank and wire fraud, United States Attorney Benjamin B. Wagner announced. A federal grand jury returned the sealed indictment yesterday; it was unsealed after his arrest today.

According to court documents, Sahlbach owned and operated a debt collection business, National Credit Acceptance Inc., that purchases pools of consumer debts from other companies at a discount, and then attempts to collect on these debts from the consumer. In order to purchase the debt pools, Sahlbach opened a $25 million line of credit with First Bank to help support his business. The credit agreement required that if NCA wanted to buy a debt pool, it would provide 15 percent of the cost of that pool and 85 percent would be financed by First Bank.

According to the indictment, on several occasions from September to December of 2008, Sahlbach represented to First Bank that he had contracted with Lender Exchange to purchase debt pools. As a result of those representations, First Bank wired a total of $6.8 million to Lender Exchange. Sahlbach had not told First Bank that he actually controlled Lender Exchange. In fact, in August 2008, he had registered it with the California Secretary of State using the alias M. Hansen and used the address of a parking garage on Capitol Mall. If First Bank had known Sahlbach controlled Lender Exchange, it would not have extended credit.

The indictment alleges that Sahbach did not use the money to purchase debt pools from Lender Exchange, but transferred the funds to other bank accounts he controlled. He used those funds for business expenses and to provide the 15 percent contribution to receive additional funds from First Bank. Shortly after obtaining the final disbursement from First Bank, Sahlbach defaulted on the entire line of credit with First Bank.

Sahlbach is scheduled to make his initial appearance today at 2:00 p.m. before a United States Magistrate Judge.

This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Jared C. Dolan is prosecuting the case.

If convicted, Sahlbach faces a maximum statutory penalty of 30 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 defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Today, United States District Judge Troy Nunley sentenced Jasen Lynn Dushane, 38, of Rough and Ready, to 14 years prison for possession of stolen United States mail, possession of stolen credit cards with intent to defraud, and aggravated identity theft, United States Attorney Benjamin B. Wagner announced. Dushane was previously convicted after a five-day trial.

In sentencing, Judge Nunley characterized Dushane’s criminal history as extensive and said that Dushane was “a crime spree waiting to happen.”

According to testimony presented at trial, on June 5, 2011, at approximately 2:25 a.m., a Nevada County sheriff’s deputy observed a silver Lexus sedan southwest of Nevada City. He checked the license plate number of the Lexus and confirmed that it was reported stolen. The deputy stopped the vehicle and directed the driver to turn off the engine. Although the driver initially complied, he restarted the engine and drove off. A vehicle chase ensued for nearly 1.5 miles on dark and muddy Black Forest Road. The two occupants of the Lexus fled from the vehicle, but not before the driver threw the Lexus into reverse, sending it backward toward the deputy and ultimately down an embankment. Law enforcement officers were unable to find the male driver, but they found the passenger, Manda Lynn Wentzloff, hiding in some nearby brush. Wentzloff identified the driver as Dushane. Dushane was arrested at a store later that day in Grass Valley while attempting to pick up a police scanner that he had ordered using a stolen credit card.

According to court documents, Wentzloff told officers that she and Dushane had been stealing mail and other items from mailboxes and a residence in and around Nevada County. She said that she and Dushane had stolen a BMW vehicle during the course of their activities, and that it was parked outside her and Dushane’s motel room in Reno. They searched the hotel room, the Lexus, and the BMW and found bags, folders, and other containers full of opened and unopened U.S. mail with recipient addresses in Nevada County and Las Vegas. Officers also found photocopies of credit cards and various official identification documents, credit cards, opened bank and credit card statements, and personal checks. In total, more than a thousand pieces of stolen mail were recovered.

Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service, San Francisco Division stated “we work closely with the U.S. Attorney Office and our partners in law enforcement to arrest and prosecute those who steal mail for criminal gain.  A primary goal of the Postal Inspection Service is to protect postal customer’s mail and ensure that their mail is safe from theft.”

This case is the product of an investigation by the United States Postal Inspection Service and the Nevada County Sheriff’s Office. Assistant United States Attorneys Jared S. Dolan and Nirav K. Desai prosecuted the case.

FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Rosaura M. Tinajero, 56, of Omaha, Neb., and formerly of Wasco, Calif., charging her with theft of public money and two counts of wire fraud, United States Attorney Benjamin B. Wagner announced.

According to court documents, Tinajero’s mother, a Social Security benefits recipient, died in 1987. The Social Security Administration was not notified of her death and distribution of benefits continued from June 1987 through June 2009. From March 1995 through June 2009, Tinajero obtained more than $120,000 in benefits meant for her deceased mother via check and direct deposit, and personally used the money with knowledge that she was not entitled to the benefits.

This case is the product of an investigation by the Social Security Administration, Office of Inspector General and the United States Secret Service. Assistant United States Attorney Henry Z. Carbajal III is prosecuting the case.

Tinajero is scheduled to be arraigned on Monday, June 9, 2014, at 1:30 p.m.

If convicted, Tinajero faces a maximum statutory penalty for theft of public money of 10 years in prison and a $250,000 fine. Wire fraud carries a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — Senior United States District Judge Anthony W. Ishii sentenced former Clovis Unified School District teacher Neng Yang, 46, of Clovis, today to 38 years in prison for sexual exploitation of a minor, United States Attorney Benjamin B. Wagner announced. On March 24, 2014, Yang pleaded guilty to two counts of sexual exploitation of a minor.

According to court documents, Yang used an I-Phone and a computer to record and store videos depicting the sexual abuse of a minor on multiple occasions in January of 2012. At the time, the minor was under 12 years of age. The incidents involved sexual contact between the minor and Yang and took place while the minor was under Yang’s supervisory control. Yang was charged with four counts of producing child pornography and has been in federal custody since January 27, 2012.

US Attorney Wagner stated: “Law enforcement at all levels worked together to achieve today’s result. This office will continue to vigorously prosecute those who target innocent and vulnerable victims for sexual exploitation.”

“The unconscionable acts perpetrated by a trusted teacher on a youngster under the age of 12, in addition to producing child pornography, are crimes that must be addressed with a lengthy prison sentence. Clovis Police detectives, some with young children of their own, worked tirelessly to gather evidence and put together a solid case to keep Neng Yang locked up and away from innocent children. This man should never be in a position to victimize a child like this again,” said Clovis Police Chief Matt Basgall.

“For most people, criminal acts against children are impossible to comprehend,” said Mike Prado, resident agent in charge of HSI Fresno. “For a child who has been tricked and sexually exploited by a trusted teacher — while at school — the physical and emotional scars will be with them forever. Thanks to a parent’s vigilance and outstanding law enforcement cooperation, this predator was apprehended before he could further abuse his position of trust to hurt other vulnerable children. As this sentence makes unmistakably clear, child sex predators will be caught, prosecuted, and meted the justice they deserve for their despicable actions.”

This case was the product of an investigation by the Central California Internet Crimes Against Children Task force, specifically the Clovis Police Department and the Fresno U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney Brian W. Enos prosecuted the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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, 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.

SACRAMENTO, Calif. — U.S. Marshals arrested a woman who has been a fugitive since she missed her sentencing date in October 2011, United States Attorney Benjamin B. Wagner and United States Marshal Albert Nàjera announced.

Niesha Nicole Jackson, 34, was featured on CNBC’s program “American Greed: The Fugitives” and labeled as the “Bank Robbing Babe. After receiving information that Jackson was in Fairfield, the Pacific Southwest Regional Fugitive Task Force, composed of U.S. Marshals and state and local agencies, set up surveillance and arrested her at a hotel. When she was arrested, she had in her possession a T-shirt with “BR Babe” printed on it.

According to court documents, Jackson was part of a bank fraud scheme that netted between one to two million dollars in losses to 37 banks in 2007 and 2008. The organizers, operating from California, sent runners to Alabama, Arizona, Illinois, Indiana, Montana, New Mexico, Ohio, Oklahoma, and Texas to use “pre-paid” credit cards at banks for cash advances. Although the cards only had small amounts of money available, the runners would tell the bank tellers to call a toll-free number that was controlled by Jackson or another co-conspirator. Jackson, posing as a card services representative, would mislead the bank employee into believing that there were thousands of dollars available on the card, and then would instruct the teller what buttons to press on the card terminal in order to make the transaction go through. After receiving the cash, the runner would keep a portion and the rest of the fraudulently obtained funds would go to the organizers in the Sacramento area.

On July 30, 2009, a federal jury indicted Jackson, charging her with one count of conspiracy to commit bank fraud and one count of bank fraud. She pleaded guilty in March 2010, but then failed to appear at her sentencing and a warrant was issued for her arrest. She is scheduled to appear in Sacramento today at 2:00 p.m. before U.S. Magistrate Judge Carolyn K. Delaney.

This case is the product of an investigation by the U.S. Secret Service with assistance from police and sheriff’s departments in several states. Seven defendants have been sentenced in the conspiracy. Assistant United States Attorney Matthew D. Segal is prosecuting the case.

SACRAMENTO, Calif. — Licensed real estate agent Manuel Herrera, 34, of Sacramento, pleaded guilty today to conspiring to commit wire fraud in connection with a mortgage fraud scheme, United States Attorney Benjamin B. Wagner announced.

According to court documents, Herrera served as a loan officer and later a branch manager at Delta Homes and Lending Inc., a real estate and mortgage lending company. Between October 2004 and May 2007, Herrera and his co-defendants conspired to obtain home loans from mortgage lenders based upon false and fraudulent loan applications and supporting documents that falsely represented the borrowers’ assets and income, liabilities and debts, employment status, and citizenship status. As part of the scheme, the defendants, including Herrera, provided money to borrowers in order to fraudulently inflate the borrowers’ assets and bank account balances. Once the defendants had secured the loans, the borrowers returned the money the defendants had provided for the scheme. The aggregate sales price of the homes involved in the conspiracy was in excess of $10 million. As a result of the defendants’ actions, mortgage lenders and others suffered losses of at least $4 million.

This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Lee S. Bickley is prosecuting the case.

Herrera’s co-defendants, including Moctezuma Tovar, Ruben Rodriguez, and Jaime Mayorga, all licensed real estate agents residing in Sacramento; Sandra Hermosillo, of Woodland, formerly a loan officer; and Christian Parada Renteria, of Sacramento, formerly a loan officer have a trial date of April 21, 2015. Herrera’s co-defendant Jun Michael Dirain pleaded guilty on February 3, 2014, and is currently scheduled to be sentenced on July 7, 2014.

Herrera is scheduled for a status conference concerning sentencing in front of Judge William B. Shubb on July 7, 2014. Herrera faces a maximum statutory penalty of 30 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — Steven Hamman, 52, of Modesto, was sentenced today by Senior U.S. District Judge Anthony W. Ishii to three years and one month in prison for his involvement in a fraudulent check-cashing scheme, United States Attorney Benjamin B. Wagner announced.

According to court documents, between January 2009 and January 2011, Hamman conspired with others to cash stolen or fraudulently procured checks at electronic check-cashing kiosks (known as “Vcom,” or “virtual commerce” machines). Hamman used fraudulently created Vcom accounts to attempt to cash the checks, sometimes using checks that other co-conspirators previously had attempted and failed to cash. On several occasions, Hamman attempted to cash the same check more than once. During the course of the conspiracy, Hamman’s check-cashing scheme caused or threatened to cause a loss of more than $47,000 to more than 50 victims, including financial institutions and others.

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

FRESNO, Calif. — Four marijuana cultivators were sentenced today in four separate large-scale marijuana cultivation cases involving private lands in Stanislaus, Fresno, and Tulare Counties, according to U.S. Attorney Benjamin B. Wagner.

Fresno/Alabama Drug Ring Member Sentenced (1:12-cr-38 AWI)

Herman Graves, 47, of Fresno, was sentenced eight months in custody (four months in prison and four months home detention) for conspiring to manufacture, distribute and possess with intent to distribute marijuana grown on South Marks Avenue in Fresno County. The marijuana had been designated as “medical” but was, in fact, destined for distribution in Birmingham, Ala.

This case is the product of an investigation by the DEA and IRS Criminal Investigation with assistance from the Treasury Inspector General of Tax Administration, U.S. Postal Inspection Service in Birmingham, Ala., California Highway Patrol, Fresno County Sheriff’s Office, Fresno Police Department, Birmingham Police Department, and the Madera County Narcotics Enforcement Team.

907 Marijuana Plants/Firearm Seized from Stanislaus County Riverside Grow
(1:12-cr-342 AWI)

Sengphachanh Boungnavong, 34, of Fresno, was sentenced to two years in prison for conspiring to cultivate, distribute and possess with intent to distribute 907 marijuana grown in Newman, California beside the San Joaquin River. Water was diverted from the San Joaquin River to irrigate the illegal cultivation operation. During the execution of a search warrant there, drug agents found Boungnavong at the cultivation site, along with four other men who have entered guilty pleas in this case. The agents found and seized 907 marijuana plants, a handgun, respirators, motion detectors, chemicals, fertilizers, and “medical” marijuana recommendations from a doctor who has been charged in another federal case with the unlawful distribution of other controlled substances. Marijuana is a prohibited Schedule I controlled substance under federal law.

This case was investigated by the DEA and Stanislaus Drug Enforcement Agency, a multi-agency drug task force in Modesto.

1,313 Marijuana Plants/Firearms Seized from Tulare County Agricultural Grow
(1:12-cr-341 LJO)

Carlos Adan Lupian-Lua, 26, of Michoacàn, Mexico, was sentenced to one year and seven months in prison for cultivating marijuana on agricultural land in Terra Bella. According to court records, drug agents discovered the cultivation operation after following a supplier to the property. The supplier had previously delivered equipment and material for other marijuana cultivation operations on public lands in Ventura, San Luis Obispo, and Kern Counties. During the execution of a federal search warrant at the Terra Bella property, agents seized 1,313 marijuana plants, two firearms, and arrested six people, including Lupian-Lua. The marijuana had a wholesale value of $1.5 million.

The case was investigated by the U.S. Forest Service, Homeland Security Investigations (HSI) of Immigration and Customs Enforcement (ICE), and the Tulare County and Ventura County Sheriff’s Offices.

816 Pounds Processed Marijuana Seized from Fresno County Agricultural Grow
(1:11c-r-0357 AWI)

Reney Bousangouane, 50, of Fresno, was sentenced today to one year of home detention for his involvement in a large marijuana cultivation operation on agricultural land on Armstrong Avenue in Fresno County. According to court documents, Bousangouane was involved in the cultivation and processing of more than 800 pounds of marijuana grown at a property leased by his brother, Shavane Bousangouane. Shavane Bousangouane was previously sentenced to four years and nine months in prison for his involvement in the cultivation operation. The property is the subject of pending civil forfeiture action initiated by the U.S. Attorney’s Office.

This case is the product of a joint investigation by the U.S. Drug Enforcement Administration and Fresno County Sheriff’s Office.

Assistant United States Attorney Karen Escobar prosecuted the criminal cases and Assistant United States Attorney Kevin Khasigian is handling the forfeiture of the property referenced in the Bousangouane case.

FRESNO, Calif. — Juan Carlos Martinez-Carranza, 26, of Delano, was sentenced today by United States District Judge Anthony W. Ishii to 10 years in prison for possessing methamphetamine with intent to distribute it to another person, United States Attorney Benjamin B. Wagner announced.

According to court documents, on February 27, 2013, during a traffic stop, Martinez‑Carranza consented to a search of his vehicle. The officer found approximately six pounds of methamphetamine concealed in the airbag compartment in the dashboard. Martinez-Carranza admitted to the officer that he intended to deliver the drugs to another person. Martinez-Carranza is subject to deportation following the completion of his prison term.

This case was the product of an investigation by the Madera County Narcotics Enforcement Team, the California Highway Patrol, and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney Melanie L. Alsworth prosecuted the case.

FRESNO, Calif. — Two brothers from Bakersfield were sentenced today for methamphetamine trafficking offenses, United States Attorney Benjamin B. Wagner announced. Ulisses Lopez, 23, was sentenced to seven years and eight months in prison, and Erik Lopez was sentenced to four years and two months in prison.

According to court documents, on October 23, 2012, the brothers delivered approximately one pound of methamphetamine to an informant.On February 3, 2014, both defendants pleaded guilty to conspiracy to distribute and possess with the intent to distribute methamphetamine.

This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Southern Tri-County HIDTA Task Force, and the Bakersfield Police Department. This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. Assistant United States Attorney Kevin Rooney prosecuted the case.

FRESNO, Calif. —Miguel Sanchez-Mendoza (Sanchez), 46, of Mexico, was sentenced today to eight years in prison for conspiring to distribute and to possess with the intent to distribute methamphetamine, heroin, and cocaine, United States Attorney Benjamin B. Wagner announced.

According to court documents, Sanchez and a co-defendant maintained a stash house in Bakersfield from where law enforcement officers seized seven pounds of methamphetamine, one and a half pounds of cocaine, a half-pound of heroin, all packaged for sale. In addition to the drugs, officers found and seized digital scales, cutting agents, a kilogram press, and $9,483 in cash. The cash has been forfeited as proceeds of drug trafficking. Sanchez is subject to deportation following the completion of the prison term.

This case is the product of an investigation by the U.S. Drug Enforcement Administration, Kern County Sheriff’s Office Narcotics Enforcement Team, Kern County Sheriff’s Office Major Violators Unit, and the California Multijurisdictional Methamphetamine Enforcement Team. Assistant United States Attorney Karen A. Escobar is prosecuting the case.

SACRAMENTO, Calif. — A federal grand jury returned a six-count superseding indictment today against Eliecer Reyes Huerta, 31, a Mexican national residing in Vallejo, adding charges of possessing methamphetamine and cocaine with intent to distribute, and unlawfully possessing a firearm, United States Attorney Benjamin B. Wagner announced. On December 19, 2013, Huerta was indicted for making false statements in connection with applications for United States passports and aggravated identity theft.

According to court documents, on July 30, 2012, Huerta filed an application for a U.S. passport, falsely stating that his name was Jose Manuel Ventura Ruiz and that he was born in Puerto Rico. In fact, Huerta is an alien who was previously deported to Mexico. In October 2012, Huerta again falsely stated that his name was Jose Manuel Ventura Ruiz, this time in connection with an application for a U.S. passport for a minor.

According to court documents, in January 2014, when law enforcement agents executed search warrants at Huerta’s home, they discovered methamphetamine and cocaine packaged in plastic bags, scales, and a handgun.

This case was the product of an investigation by the U.S. State Department’s Diplomatic Security Service with assistance from the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, and Firearms. Assistant United States Attorney Nirav Desai is prosecuting the case.

Huerta is in custody on the pending charges and will be arraigned on the superseding indictment on May 30, 2014.

If convicted, Huerta faces the following maximum sentences: for either passport fraud offense — 10 years in prison and a $250,000 fine; for aggravated identity theft — two years and a $250,000 fine; for the methamphetamine-related offense — five to 40 years in prison and a $5 million fine; for the cocaine-related offense — 20 years in prison and a $1 million fine; for the firearms offense — 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Enouche Trosclair, 44, of Oakland, charging him with conspiring to commit armed bank robbery, armed bank robbery, and brandishing a firearm during a crime of violence, United States Attorney Benjamin B. Wagner announced.

According to court documents, on December 16, 2009, three masked men, two of whom were armed with guns, entered the U.S. Bank on Tully Road in Modesto and robbed the bank of approximately $8,997. Officers discovered the get-away vehicle that had been abandoned, finding a cellphone, a beanie with eye cut-outs and gloves that had been used in the robbery. Law enforcement personnel obtained DNA from these items. In 2014, Trosclair’s DNA was collected pursuant to California law and was entered in the Combined DNA Index System (CODIS), a criminal justice DNA database. Trosclair’s DNA was matched to the DNA on items worn by one of the bank robbers.

This case was the product of an investigation by the Federal Bureau of Investigation and the Modesto Police Department. United States Attorney Kathleen A. Servatius is prosecuting the case.

On April 15, 2014, Trosclair was arrested and appeared on the charges in the United States District Court for the Eastern District of California, Sacramento. The Honorable Magistrate Judge Kendall J. Newman ordered Trosclair detained and transported to Fresno to be arraigned on April 29, 2014.

If convicted, Trosclair faces a maximum statutory penalty of five years in prison for conspiracy, 25 years for armed robbery and up to life in prison for brandishing the firearm. All three charges are punishable by a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Edwin Rigoberto Mayorga-Fajardo, 42, of Bakersfield, charging him with conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.

According to court documents, on April 8, 2014, Mayorga-Fajardo attempted to distribute five pounds of methamphetamine to a government informant. When law enforcement officers attempted to stop the Mayorga-Fajardo’s vehicle he sped off and a chase ensued. While attempting to flee, he was observed throwing packages of methamphetamine from the vehicle. Eventually Mayorga-Fajardo was stopped and arrested and approximately four pounds of methamphetamine was recovered.

This case is the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Kern County Sheriff’s Office, 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, Mayorga-Fajardo faces a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — A federal grand jury returned an indictment today against Gerardo Lopez, 28, of Half Moon Bay, charging him with four counts of bank robbery, United States Attorney Benjamin B. Wagner announced.

According to court documents, from November 2013 to February 2014, Lopez entered the banks wearing a fake beard and handed tellers notes demanding money. Lopez is charged with four bank robberies as follows:

November 21, 2013, Bank of the West on Main Street in Ripon; November 26, 2013, Chase Bank on Spreckels Avenue in Manteca; December 3, 2013, Chase Bank on West 11 Street in Tracy; February 5, 2014, Citibank on Geer Road in Turlock.

This case is the product of an investigation by the FBI and the police departments of Ripon, Manteca, Turlock, Tracy, Sunnyvale, Capitola, Dublin, and San Jose. Assistant United States Attorney Olusere Olowoyeye is prosecuting the case.

If convicted, Lopez faces a maximum statutory penalty of 20 years in prison and a $250,000.00 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. — The results of a yearlong, multi-agency law enforcement operation that targeted marijuana cultivators and distributors in Shasta and Trinity Counties were announced today by United States Attorney Benjamin B. Wagner, Shasta County Sheriff Tom Bosenko, and Trinity County Sheriff Bruce Haney.

The operation, entitled “Operation Safe Counties,” specifically targeted individuals and groups in Shasta and Trinity Counties involved in the cultivation of marijuana on public lands, as well as those cultivating marijuana on private property and distributing their product throughout California and the United States through the use of couriers, the United States Postal Service, and even private aircraft. As a result of these investigations, 16 defendants have been charged by the U.S. Attorney’s Office with federal felony drug offenses, and 10 more have been charged by the Shasta County District Attorney with drug and environmental crimes. In the course of the operation to date, nearly 60,000 marijuana plants, over 2,100 pounds of processed marijuana, 70 firearms, and more than $1 million in United States currency were seized. Several investigations started as a result of Operation Safe Counties are still underway.

U.S. Attorney Wagner said: “The use of public lands in Shasta and Trinity County for the commercial cultivation of marijuana poses a threat to members of the public who own and use those lands and to the land itself. The use of private lands to produce marijuana for sale in other states, often involving weapons and potential violence, violates federal law and creates dangerous conditions here in Northern California. Along with our state and local law enforcement partners, we are committed to combatting those crimes.”

Shasta County Sheriff Tom Bosenko stated: “The focus of law enforcement’s efforts are criminal marijuana operations. The illegal production marijuana has significantly expanded in recent years. Illegal marijuana operations continue to be an imminent threat to our environment, our community, and to our citizens. A collaborative effort of federal, state, and local agencies is a force multiplier against not only against these operations, but against the environmental damage on public and private lands.

Trinity County Sheriff Bruce Haney stated: “I would like to thank United States Attorney Ben Wagner, and the federal, local and state law enforcement agencies that assisted the Trinity Sheriff’s Office with Operation Safe Counties last August. Like many communities, Trinity County has been overwhelmed by commercial marijuana grows hiding behind the Compassionate Use Act, Prop 215. Though there are some legitimate medicinal users of marijuana, law enforcement, members of the community, and the growers themselves know that most marijuana grown in our counties is transported and sold all over the United States. This is a violation of state and federal law. This illegal activity breeds an unsafe environment for our children and other members of our communities. The environmental damage of commercial marijuana production is also a very real concern and is beginning to become the focus of many investigations. Until society decides what to do with marijuana, we will continue to work closely with our state and federal partners to provide a safe place to live, work and visit.”

One case involving an outdoor grow on public land began on June 5, 2013, when law enforcement agents conducted a raid at a marijuana garden in Shasta Trinity National Forest. Approximately 28,847 marijuana plants were eradicated. The marijuana was being irrigated with water that was diverted from nearby Big Bar Creek. Salvador Alcazar-Varelas, 28, of Santa Rosa, Calif., was found working at the site and was charged with conspiracy to manufacture marijuana and manufacture of marijuana. He pleaded guilty of the charges on April 10, 2014 and is scheduled for sentencing on July 10, 2014.

A case involving private property began in 2013, when the attention of law enforcement was directed to a rural property in Palo Cedro after many neighbors complained about the strong smell of marijuana and unusual activity in and around the subject property. An overflight confirmed an active marijuana grow in progress. A subsequent search revealed 531 marijuana plants growing at this location. A search of John Richard Leithmann’s residence revealed 73 marijuana plants growing inside. Two other individuals, Eric Cop and Mark Cop were at the Palo Cedro property at the time of the search, and both admitted to cultivating marijuana at that location. An indoor marijuana grow consisting of 108 marijuana plants was found in Mark Cop’s residence. All three are charged with conspiracy to manufacture marijuana and manufacture of marijuana. They are scheduled for a status conference on May 16, 2014.

Under the umbrella of “Operation Safe Counties,” nearly three dozen separate investigations were undertaken by a number of federal, state and local law enforcement agencies. The federal cases are being prosecuted by Assistant United States Attorneys Michael McCoy and Christiaan H. Highsmith.

The indictments are only allegations, and the defendants who have been charged in these cases are presumed innocent unless and until proven guilty.

SACRAMENTO, Calif. —Kendal Mychael Lobb, 32, of Cameron Park, was sentenced today by U.S. District Judge Kimberly J. Mueller to five years in prison and a $250,000 fine for receiving child pornography, United States Attorney Benjamin B. Wagner announced.

According to court documents, in July 2012, law enforcement investigators identified Lobb’s computer as a source of online child pornography. Among the files being offered were videos of prepubescent children being sexually assaulted by adults. Law enforcement officers executed a search warrant at Lobb’s residence and found more than 100 images and 300 videos of child pornography. These files had been downloaded by the defendant through the Internet between April 12, 2003, and October 5, 2012.

This case was the product of an investigation by the Sacramento Internet Crimes Against Children (ICAC) task force, a federally and state funded task force managed by the Sacramento Sheriff’s Department composed of agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant United States Attorney Kyle Reardon prosecuted the case.

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

FRESNO, Calif. — A federal jury in Fresno, returned a verdict today in the trial of Julie Dianne Farmer, 45, of Bakersfield, finding her guilty of conspiracy to commit mail fraud, wire fraud and bank fraud, and two counts each of mail fraud and wire fraud, United States Attorney Benjamin B. Wagner announced. The charges stem from her involvement in an extensive mortgage fraud scheme that ran from January 2004 to September 2007.

“The jury’s verdict marks the end of a long and thorough investigation that resulted in the conviction of 14 defendants before this trial even began,” said U.S. Attorney Wagner. “The fraud perpetrated at the Crisp, Cole & Associates real estate firm harmed neighborhoods, local builders, consumers, and lenders. This office has earned a national reputation for mortgage fraud prosecutions, and we will continue to bring to justice anyone who commits these crimes.”

“Today’s verdict is a bittersweet end to our extensive investigation into the large-scale conspiracy of Crisp, Cole & Associates, also known as Crisp & Cole Real Estate (CCRE), and Tower Lending in the Bakersfield area. While millions in restitution have been ordered to be paid and a total of 14 individuals will spend time in prison for the crimes they committed, the damage that was done to the real estate industry and community in Bakersfield area will continue to have a negative impact for years to come,” said Supervisory Special Agent Jose Moreno of the Sacramento FBI’s Bakersfield resident agency.

According to evidence brought at trial, between January 2004 and September 2007, Farmer conspired with David Crisp, Carl Cole, and other co-defendants to commit mail fraud, wire fraud, and bank fraud, and to defraud mortgage loan companies and federally insured financial institutions of money and property, by means of materially false and fraudulent pretenses, representations, and promises. Farmer was Crisp & Cole Real Estate’s (CCRE) chief operations officer and managed CCRE’s business operations and business accounts. She and co-defendants David Crisp and Carl Cole oversaw and managed the conspiracy to defraud the lenders, and directed co-defendants and others in furtherance of the conspiracy. They used straw purchasers to acquire properties at inflated prices with funds borrowed from lenders, often using 100 percent financing and based on false and fraudulent loan applications. The conspirators frequently resold the properties from one straw buyer to another, each time at an inflated, higher price in order to extract the purported increased “equity” from the property for their benefit. Ultimately, most of the properties were foreclosed upon after the defendants failed to make the mortgage payments when due.Farmer is scheduled to be sentenced on July 14, 2014. She faces a maximum penalty of 30 years in prison and a $1 million fine for conspiracy to commit mail fraud, wire fraud and bank fraud; 20 years in prison and a $250,000 for mail and wire fraud. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Kirk Sherriff, Henry Carbajal III, and Christopher Baker are prosecuting the case.

Each of Farmer’s co-defendants has previously entered pleas of guilty for their roles in the scheme and several have been sentenced. Carl Cole and David Crisp, were each sentenced to 17 years and seven months in prison. Caleb Cole was sentenced to five months in prison, and Jennifer Crisp was sentenced to five years’ probation. Jayson Peter Costa was sentenced to six and a half years in prison. Sentencing dates for the remaining defendants are as follows: Michael Angelo Munoz on May 5, 2014; Jeriel Salinas on May 12, 2014; and Sneha Mohammadi on June 9, 2014. Robinson Nguyen has completed his 27-month sentence.

Before David Crisp, Carl Cole, and the other defendants were indicted, five separate cases were brought, in 2009 and 2010, against five defendants who pleaded guilty to charges relating to this scheme. Three are scheduled to be sentenced on June 2, 2014: Jerald Allen Teixeira, Megan Balod, and Christopher Lance Stovall. Kevin Patrick Sluga and Leslie Sluga are scheduled to be sentenced on May 27, 2014.

This case was done in coordination with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.

SACRAMENTO, Calif., — United States District Court Judge John A. Mendez sentenced Johnny Eugene Grivette Jr., 39, of Magalia, today to four and a half years in prison for his participation in a mortgage fraud scheme, United States Attorney Benjamin B. Wagner announced.

On July 10, 2012, Grivette pleaded guilty to conspiracy to commit mail fraud and money laundering. According to the plea agreement, Grivette was manager of Advantage Financial Partners of California (AFP), a company that bought residential properties at market prices and then sold them to straw buyers who were investors in a purported investment program. Once AFP bought the properties, it paid commissions to an appraiser who would appraise them for significantly higher than the true market value. This allowed the homes to be financed for the straw buyers at loan-to-value ratios significantly higher than the limits lenders authorized. If the straw buyers had to make down payments on the properties sold by AFP, the money was quickly reimbursed to them by AFP without the lenders' knowledge.

This case was the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Paul A. Hemesath prosecuted the case.

"Victims of mortgage fraud may include the banks which 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."

Grivette's sentencing marks another event in a series of prosecutions related to Loomis Wealth Solutions, a "wealth-building" program offered to the public in California, Illinois, Washington, and elsewhere, from 2006 through 2008. According to indictments, persons connected to Loomis Wealth Solutions are alleged to have committed various acts of fraud and money laundering.

In related cases, Dawn Powers, 43, of Lincoln, and John Hagener, 77, of Granite Bay, pleaded guilty to conspiracy charges on March 4, 2014. Powers was a manager at Loomis Wealth Solutions, and Hagener was a manager of entity known as the Naras Funds, which was an investment fund related to Loomis Wealth Solutions. They are scheduled for sentencing on June 10, 2014. On September 11, 2012, Christopher Warren, 31, formerly of Sacramento, was sentenced to 14 and a half years in prison for his role in the scheme. Warren was a manager of a lending company related to Loomis Wealth Solutions. On April 15, 2014, Scott Cavell, a partner of Warren's, pleaded guilty to wire fraud, which was unrelated to his employment at Loomis Wealth Solutions. He is scheduled for sentencing on July 22, 2014.

There are five defendants remaining in the criminal case related to Loomis Wealth Solutions: Lee Loomis, 56, of Granite Bay; Darren Fehst, 45, of Halifax, Nova Scotia; Peter Woodard, 45, of Ventura; Joseph Gekko, 45, of Yorba Linda; and Michael Llamas, 29, of Tracy. A trial is scheduled for October 6, 2014, before the Honorable John A. Mendez. The charges against them are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. —Christopher David Robinette, 43, of Amsterdam, Netherlands, pleaded guilty today to nine counts related to the sexual exploitation of a minor, United States Attorney Benjamin B. Wagner announced.

Robinette, who is a United States citizen, pleaded guilty to eight counts of sexual exploitation of a minor and one count of transporting a minor in interstate or foreign commerce for purposes of engaging in criminal sexual activity. According to court documents, Robinette traveled on dates between September 2004 and August 2006 from various locations to the Fresno area to sexually exploit a minor and produce digital still and video images of the abuse. The sexual abuse took place in California, including the Fresno area, as well as in Mexico and Costa Rica. Robinette’s crimes were detected shortly after he uploaded images of child pornography, including images he produced, to a Microsoft SkyDrive account.

Robinette is scheduled for sentencing on July 14, 2014, by Senior United States District Judge Anthony W. Ishii. Robinette faces potential prison terms of 15 to 30 years for each sexual exploitation count and 10 years to life for transportation of a minor. For all counts, there is a potential $250,000 fine, and a lifetime term of supervised release. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

The National Center for Missing & Exploited Children in Alexandria, Virginia assisted in coordinating information for a law enforcement response. This case is the product of an investigation by the Korps Landelijke Politie Diensten (Dutch National Police), the Amsterdam Amstelland Police Department (Amsterdam local police) with assistance from the Federal Bureau of Investigation’s offices in The Hague and Amsterdam, Washington, D.C., and Fresno as well as the Fresno Police Department. Assistant U.S. Attorney David Gappa and Child Exploitation and Obscenity Section (CEOS) Trial Attorney Maureen Cain are prosecuting the case.

The United States Department of Justice’s Office of International Affairs and CEOS, as well as the Dutch Ministry of Justice, assisted in coordinating Robinette’s extradition to Fresno. The United States Marshals Service returned Robinette to Fresno, and he has been detained as a flight risk and danger to the community since his initial court appearance on December 26, 2012.

This case was brought as part of Project Safe Childhood, a nationwide initiative 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. — Juan Vicente Avalos-Castaneda, 20, of Perris, was sentenced today by United States District Judge Anthony W. Ishii to four and a half years in prison for manufacturing marijuana, United States Attorney Benjamin B. Wagner announced.

According to court documents, on August 18, 2013, Avalos-Castaneda was found near marijuana grow sites in the Bakeoven Pass area of the Sequoia National Forest. More than 5,000 marijuana plants were being grown at two related sites. Avalos-Castaneda attempted to run from the investigators and was captured by a trained dog. In 2012, Avalos-Castaneda was convicted of a state felony charge of manufacturing marijuana. Judge Ishii ordered Avalos-Castaneda to be turned over to United States immigration authorities for deportation following service of the prison term imposed in this case.

This case was the product of an investigation by the United States Forest Service and the Tulare County Sheriff’s Office. Assistant United States Attorney Kevin Rooney prosecuted the case.

FRESNO, Calif. — U.S. District Judge Anthony W. Ishii sentenced Fernando Figueroa, 39, of Fresno, to 12 years and seven months in prison for possession with intent to distribute methamphetamine, United States Attorney, Benjamin B. Wagner announced. Figueroa is a previously convicted felon.

This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fresno Police Department. It is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative that brings together federal, state and local law enforcement to combat gun and gang violence. United States Attorney Kimberly A. Sanchez is prosecuting the case.

According to court documents, on January 28, 2012, three men came to Figueroa's apartment to buy 1/8 ounce of methamphetamine. Figueroa claimed that, as he was preparing to provide the methamphetamine, two of the men began punching and kicking him. Figueroa pulled a gun from his waistband and fired it once, striking and killing one of the men.

When police searched Figueroa’s apartment, they found a Ruger, Model Security Six, .357-caliber revolver loaded with six rounds of Fiocchi .357-caliber ammunition in the apartment (not the gun used in the shooting), approximately 3.56 grams of methamphetamine, pay/owe sheets, and packaging material.

“This is another outstanding example of ATF and the Fresno Police Department working together to combat armed drug trafficking and violent gun crime in the City of Fresno,” said Bureau of Alcohol, Tobacco Firearms and Explosives Special Agent in Charge Joseph M. Riehl.

FRESNO, Calif. — Derek A. Brown, 33, and Bryan T. Schaub, 22, of Bakersfield, pleaded guilty today to conspiring to damage energy facilities, United States Attorney Benjamin B. Wagner announced.

According to court documents, Derek A. Brown and Bryan T. Schaub stole programmable logic controllers and other equipment from oil field facilities of Chevron, Occidental, Seneca Western Minerals Corporation, Aera Energy, and Berry Petroleum during 2011 and 2012. Programmable logic controllers are computers that control the opening and closing of valves in the oil fields. The theft of a programmable logic controller creates the risk of an oil spill or loss of production if not detected and remedied in time. The total loss of equipment by the oil companies exceeded $200,000.

This case is the product of an investigation by the Federal Bureau of Investigation and the Kern County Sheriff’s Department. Assistant United States Attorneys Duce Rice and Michael Tierney are prosecuting the case.

Brown and Schaub are scheduled to be sentenced by United States District Judge Anthony W. Ishii July 14, 2014. They face a maximum statutory penalty of five years in prison, restitution, and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — A federal grand jury returned an eight-count indictment today charging Joshua Landon Klipp, 32, of Chico, with one count of production of child pornography, six counts of receipt of child pornography, and one count of commission of a felony offense involving a minor when required to register as a sex offender, United States Attorney Benjamin B. Wagner announced.

According to court documents, between May 13, 2013, and July 10, 2013, Klipp persuaded a minor to engage in sexually explicit conduct for the purpose of producing images of those acts and for the purpose of transmitting live visual depictions of that conduct. Klipp received these images from the minor, as well as other images through the Internet between March 20, 2013, and September 18, 2013.

According to the indictment, Klipp was required to register as a sex offender under California Penal Code Section 290 after being convicted of sex offenses involving a minor in 2009 in Butte County.

This case is the product of an investigation by the Federal Bureau of Investigation, the Chico Police Department, and the California Department of Corrections and Rehabilitation. Assistant United States Attorney Kyle Reardon is prosecuting the case.

If convicted of producing child pornography, Klipp faces a maximum statutory penalty of 25 to 50 years in prison and a $250,000 fine. If convicted of receiving child pornography, he faces a maximum statutory penalty of 15 to 40 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.

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

FRESNO, Calif. —Sarad Chand, 62, of Ripon, pleaded guilty today to aiding and assisting in the preparation of a false income tax return, United States Attorney Benjamin B. Wagner announced. Chand also agreed to entry of a permanent injunction precluding him from preparing or filing federal tax returns for anyone other than himself.

According to court documents, Chand prepared tax returns from an office in Ripon under the name S. Chand Tax & Accounting Service Inc. He assisted his clients to obtain large tax refunds by falsifying deductions and credits on the returns. The false tax returns caused the government to lose $38,932 in tax revenues over a period of more than four years.

This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorneys Mark J. McKeon and Megan Richards are prosecuting the case.

Chand is scheduled to be sentenced by Judge Lawrence J. O'Neill on June 16, 2014. Chand faces a maximum statutory penalty of three years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — U.S. District Judge Lawrence J. O’Neill sentenced Saul Antonio Morales, 49, of Alpaugh, today to 17 and a half years in prison for drug offenses relating to his involvement in a large marijuana cultivation operation that he maintained on his property, U.S. Attorney Benjamin B. Wagner announced.

On October 31, 2013, a federal jury found Morales guilty of conspiring to manufacture, distribute and possess with intent to distribute marijuana, manufacturing marijuana, possessing marijuana with intent to distribute, and maintaining drug-involved premises.

The government’s evidence at trial established that Morales, who was unemployed, was the owner of two 20-acre parcels and one residential property in the rural community of Alpaugh. In May 2012, during the execution of a search warrant at one of the parcels where Morales resided, members of the Sheriff’s Tactical Enforcement Personnel (STEP) unit of the Tulare County Sheriff’s Office located 4,011 marijuana plants, a processing room, and three firearms. The officers seized another 198 marijuana plants at another parcel and identified Morales’s stash house at the third property. According to court documents, Morales and his family members were involved in the distribution of marijuana to the state of Washington.

In sentencing Morales, Judge O’Neill enhanced Morales’ sentence based on his leadership role and possession of firearms, noting, “guns change everything.” Following the completion of his prison term, Morales will be placed on supervised release for a total term of five years, or will be subject to deportation to his native El Salvador.

Seven other people were prosecuted in this case, including Morales’s wife, Juliana Garcia Torres, 55, and son, Gerardo Alonso Morales, 23. They were both sentenced to three years and one month in prison. Bonifacio Cano Gutierrez, 20, of Colima, Mexico, was sentenced on January 6, 2014, to two years and six months in prison. He is subject to deportation to Mexico upon completion of his prison sentence. The remaining six co-defendants were sentenced to between 12 to 30 months in prison.

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

SACRAMENTO, Calif. — An indictment was unsealed today charging three women with conspiracy to commit access device fraud and access device fraud, United States Attorney Benjamin B. Wagner announced.

According to the indictment, in October 2013, Amanda Nicole Nicoletti, 28, of Clovis; Brittney Janet Booth, 27, of Fresno; and Bobbi Jo Heiss, 27, of Oakhurst, collected more than 165 credit card numbers, 25 California driver’s licenses, and 25 social security numbers in the names of other individuals. The defendants then used that information to make numerous purchases in the Jackson area of jewelry, shoes, cigarettes, and other items using counterfeit credit cards that had been encoded with the stolen credit card numbers. Co-defendant Nicoletti is additionally charged with aggravated identity theft.

This case is the product of an investigation by the United States Secret Service, United States Postal Inspection Service, Jackson Police Department, and Angels Camp Police Department. Assistant United States Attorney Jared C. Dolan is prosecuting the case.

Heiss was arrested on April 11, 2014, and is expected to make her initial appearance in Fresno today. Nicoletti and Booth have not yet been apprehended.

If convicted, Nicoletti, Booth, and Heiss face a maximum statutory penalty of 10 years in prison and a $250,000 fine for access device fraud and five years in prison for conspiracy to commit access device fraud. If convicted of aggravated identity theft, Nicoletti faces a mandatory-minimum two 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.

FRESNO, Calif.  Steve Kessedjian, 51, of Los Angeles, was sentenced today by U.S. District Judge Lawrence J. O’Neill to 21 months in prison for defrauding clients of escrow funds, United States Attorney Benjamin B. Wagner announced.

According to court documents, Kessedjian operated two businesses — Amerilend and Targa Escrow — to help clients secure refinanced home loans. In December 2007, a couple from Jamestown, Calif., used Amerilend services and applied for a loan to refinance their home and pay off their credit cards. After the victims’ first mortgage was paid off, the remaining loan proceeds were wired to Kessedjian’s Targa Escrow account. However, instead of disbursing the proceeds to the victims’ credit card companies as directed by the escrow instructions, Kessedjian took the funds for his own purposes. Several months after escrow closed, Kessedjian then made checks payable to the victims and their credit card companies, purportedly as repayment for their escrow funds he had taken. When the checks were presented to the bank, however, there were insufficient funds in Kessedjian’s account. As a further part of his scheme to defraud, Kessedjian caused the HUD-1 settlement statement to be changed to show no money being due out of escrow proceeds.

Kessedjian admitted in his plea agreement that his actions resulted in the Jamestown victims declaring bankruptcy because they could not make payments on both the larger refinanced loan Kessedjian’s company secured for them and the credit card debts that were to have been paid off with the funds taken by Kessedjian. As part of his sentence, Judge O’Neill ordered Kessedjian to pay $72,000 in restitution to the victims of his fraud scheme.

This case is the product of an investigation by the U.S. Secret Service and the Tuolumne County Sheriff’s Office. Assistant U.S. Attorneys Christopher Baker and Michael Tierney prosecuted the case.

FRESNO, Calif. — A federal grand jury in Fresno returned two indictments today charging three men in two separate cases with aiming green laser pointers at law enforcement aircraft, announced U.S. Attorney Benjamin B. Wagner and Monica Miller, Special Agent in Charge of the FBI’s Sacramento Field Office.

The federal statute used to charge the defendants is part of legislation signed into law in 2012 by President Obama that makes it a federal crime to knowingly aim the beam of a laser pointer at an aircraft.

Reports of laser attacks have increased dramatically in recent years as powerful laser devices have become more affordable and widely available to the public. The focused beams of a laser remain powerful at extended viewing distances and can expose pilots and their crew members and passengers to radiation levels above those considered to be flight safe. Brief exposure to even a relatively low-powered laser beam can cause discomfort and temporary visual impairments such as glare, flash blindness and after images. Prolonged exposure to high-powered laser beams can result in permanent eye injury.

Laser Strike on Kern County Sheriff Helicopter
Timothy Earl Wilson, 46, of Bakersfield, was charged with aiming a laser pointer at Air‑1, a Kern County Sheriff’s Office helicopter. According to court records, Air-1 was struck by a powerful green laser multiple times. As a result of the laser strikes, the tactical flight officer experienced a feeling of pressure, throbbing and irritation in his eyes that lasted 30 minutes, and the flight crew was forced to divert attention away from routine patrol.

Wilson was charged with the laser offense following a joint investigation conducted by the FBI’s Bakersfield and Long Beach Offices and Kern County Sheriff’s Office with assistance from the Bakersfield Police Department. Assistant U.S. Attorney Karen A. Escobar is prosecuting these cases.

Wilson was also charged by the Kern County District Attorney’s Office with drug-related violations and resisting arrest.

Laser Strike on CHP Aircraft
David Walter Fee, 22, and Andrew Zarate, 20, both of Fresno, were charged with aiming a laser pointer at Air 43, a California Highway Patrol aircraft. According to court records, 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.

The case was investigated 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 this case.

Wilson is scheduled for arraignment on the indictment on April 21, 2014. Fee and Zarate are scheduled for arraignment on April 18, 2014. All three men face a maximum prison term of five years and a fine of up to $250,000, if convicted. Any actual sentence 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.

An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.