Eastern District of California
Press releases recorded for this federal judicial district.
Bad Beard Bandit Indicted for Four Bank Robberies in San Joaquin and Stanislaus CountiesRead the Press Release
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.
26 Defendants Charged, Nearly 60,000 Marijuana Plants Seized as A Result of Operation Safe Counties in Shasta and Trinity CountiesRead the Press Release
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.
Cameron Park Man Sentenced to 5 Years in Prison for Receiving Child PornographyRead the Press Release
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.
Last Defendant Found Guilty in $30 Million Bakersfield Mortgage Fraud SchemeRead the Press Release
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.Butte County Man Sentenced for Mortgage Fraud SchemeRead the Press Release
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.
United States Citizen Extradited from the Netherlands Pleads Guilty to Offenses Related to Sexual Exploitation of A MinorRead the Press Release
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.
Marijuana Grower Caught in Sequoia National Forest SentencedRead the Press Release
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.
Drug Dealer Who Killed Customer in Self Defense Sentenced to More Than 12 Years in Prison for Drug ChargeRead the Press Release
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.
Bakersfield Men Enter Guilty Plea to Damaging Oilfield FacilitiesRead the Press Release
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.
Butte County Sex Offender Indicted on Child Pornography ChargesRead the Press Release
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.
San Joaquin County Tax Preparer Pleads Guilty to Preparing Fraudulent Tax ReturnsRead the Press Release
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.
Tulare County Man Sentenced to 17.5 Years in Prison for Marijuana Cultivation CrimesRead the Press Release
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.
Three Charged with Conspiracy to Commit Credit Card Fraud in Jackson AreaRead the Press Release
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.
Los Angeles Man Sentenced to Prison for Stealing Tuolumne County Couple’s Escrow FundsRead the Press Release
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.
Three Indicted for Shining Lasers at Law Enforcement Aircraft in Fresno and BakersfieldRead the Press Release
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.
Las Vegas Man Indicted for Interstate Transportation of A Minor for Prohibited Sexual ContactRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today against Donald J. Peel, 63, of Las Vegas, Nev., charging him with interstate transportation of a minor for prohibited sexual contact, United States Attorney Benjamin B. Wagner announced.
According to court documents, Peel initiated a sexual relationship with a 16-year-old girl in Las Vegas in late 2013. In February 2014, Peel and the minor began a five‑state trip throughout the Western United States that included Arizona, Nevada, Oregon, Washington, and California. Peel and the minor engaged in sexual conduct in each of the five states. On March 19, 2014, Peel was arrested in Weed, Calif., with the minor still accompanying him. Peel has been in custody since his arrest and is scheduled for arraignment on April 16, 2014.
This case is the product of an investigation by the Federal Bureau of Investigation, the California Highway Patrol, and the Weed Police Department. Assistant United States Attorney Matthew G. Morris is prosecuting the case.
If convicted, Peel faces a sentence of at least 10 years, and up to life in prison, and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Two Executives Sentenced for Convictions in SK Foods InvestigationRead the Press Release
SACRAMENTO, Calif. — United States District Judge Lawrence K. Karlton sentenced two defendants charged in the SK Foods investigation, United States Attorney Benjamin B. Wagner announced. Former food broker Randall Rahal, 65, of Nantucket, Mass., was sentenced today to three years in prison. Former president of SK Foods, Alan Huey, 57, of Pebble Beach, Calif., was sentenced to three years’ probation with a special condition of 60‑days intermittent confinement.
According to court documents, Rahal paid bribes on behalf of SK Foods to the purchasing officers of customers of SK Foods. He had been the subject of multiple wiretaps in 2007 and 2008. Huey had been a member of the SK Foods senior management team and admitted to directing others to falsely label food product.
In sentencing the two defendants, Judge Karlton remarked that their crimes had been very serious and called for substantial prison sentences. Because Huey’s wife has serious health problems and is entirely dependent on him for care, Judge Karlton sentenced Huey to probation.
These cases were the product of an investigation by the FBI, IRS-Criminal Investigation, FDA Office of Criminal Investigations, and the Antitrust Division of the U.S. Department of Justice. Assistant United States Attorneys Matthew D. Segal and Jared C. Dolan and Antitrust Division Trial Attorneys Anna T. Pletcher and Tai Milder prosecuted the cases.
Sacramento Man Sentenced to More Than 21 Years in Prison for Trafficking MethamphetamineRead the Press Release
SACRAMENTO, Calif. — Jose Mario Medrano, 36, of Sacramento, was sentenced today by U.S. District Judge John A. Mendez to 21 years and 10 months in prison for his involvement in a conspiracy to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.
According to court documents, Medrano was a member of a Mexican-based drug trafficking organization that operated in California, Nevada, and Illinois and regularly distributed up to 40 pounds of methamphetamine on a monthly basis. Ultimately, the investigation resulted in the seizure of more than 145 pounds of methamphetamine, extensive drug ledgers, numerous firearms, bullet-proof vests, and more than $145,000 in cash.
Medrano was arrested driving a car that also held a woman and her eight-year-old daughter. Investigators searched Medrano’s vehicle and found 15 pounds of methamphetamine and a loaded 9 mm pistol inside two hidden compartments. Following his arrest, investigators searched Medrano’s house in Sacramento and found more than four pounds of methamphetamine, more than $20,000 in cash, four firearms, ammunition, four ballistic vests, pay-owe sheets, packaging materials, scales and a money counter.
In sentencing Medrano, Judge Mendez noted his connection to firearms and “ballistic vests,” the fact that he was “heavily involved” with a “large drug-trafficking organization,” and the fact that he endangered an eight-year-old child by allowing her to ride with him while he was armed and transporting a large quantity of methamphetamine.
This case is the product of an investigation by the Drug Enforcement Administration, the Sacramento Sheriff’s Department High Intensity Drug Trafficking Area (HIDTA) task force, and the California Department of Justice (Cal-MMET). Assistant United States Attorney Michael M. Beckwith prosecuted the case.
Two El Dorado Hills Women Indicted for Preparing Bogus Tax Returns and Receiving Illegitimate RefundsRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 28-count indictment today against Barbara Antonucci, 49, and Sherry Taggart, 54, both residents of El Dorado Hills, California, charging them with conspiracy to file false claims, filing false claims, and aggravated identity theft, United States Attorney Benjamin B. Wagner announced.
According to court documents, beginning in March 2008 and continuing through March 2014, Antonucci and Taggart obtained the names, social security numbers and other personal identifying information of other persons. The defendants used this personal information to complete federal tax returns in the names of themselves and other taxpayers. The federal tax returns contained false and fraudulent representations, including false statements regarding wages earned, occupations, and dependents. The defendants filed the false federal tax returns with the IRS through the US Mail and via the internet from Sacramento, Yuba and Placer Counties. Antonucci and Taggart requested that the IRS issue the false and fraudulent income tax refunds in the names of themselves and other taxpayers, from which the defendants took money.
This case was the product of an investigation by the Internal Revenue Service, United States Postal Service, and the Sacramento County Sheriff’s Department. Assistant United States Attorney Kyle Reardon is prosecuting the case.
Antonucci and Taggart were arrested and made their initial appearances in federal court today, April 4, 2014. Both were ordered temporarily detained pending further detention hearing on Monday, April 7, 2014. A status conference before the District Court was set for May 14, 2014.
If convicted of conspiracy to file false claims, Antonucci and Taggart face a maximum statutory penalty of up to 10 years in prison and a $250,000 fine. If convicted of filing false claims, Antonucci and Taggart face a maximum statutory penalty of up to 5 years in prison and a $250,000 fine. Finally, if convicted of aggravated identity theft, Antonucci and Taggart are required to serve a two-year sentence that would be consecutive to any other sentences imposed. 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.
Tracy Woman Pleads Guilty to Embezzling from Health Plan of San Joaquin and Agilent TechnologiesRead the Press Release
SACRAMENTO, Calif. — Shanika Brewer, 35, of Tracy, pleaded guilty today to embezzling from a healthcare program and mail fraud relating to a separate embezzlement, United States Attorney Benjamin B. Wagner announced.
According to court documents, from 2008 until 2011, Brewer worked in the accounts payable department of a Walnut Creek company at first called Varian, Inc., which later was acquired by Agilent Technologies, Inc. During her employment, Brewer entered false information into the company’s accounting system that caused other departments to issue checks to vendors who provided personal goods and services to Brewer. Brewer intercepted the checks and took them home to Tracy and mailed them out to pay her student loans, mortgage payments, and home improvements. She also used company funds to pay for her children’s school tuition and to deposit into her personal bank account. Brewer caused the issuance of hundreds of checks for her own benefit totaling over $800,000.
In December 2012, Brewer was hired by Health Plan of San Joaquin, which provides and administers medical benefits and services for employees of San Joaquin County. As the Assistant Controller, Brewer reorganized the accounts payable department. She began manufacturing false invoices for legitimate vendors as well as fictitious companies. Brewer signed the invoices, forging the names of other Health Plan or San Joaquin County employees. After submitting the invoices, she obtained checks that she took home to use for her own benefit. Brewer caused approximately $100,000 in losses and expenses to the Health Plan.
“This case came to our office due to the great work of the IMPACT Unit of the San Joaquin County District Attorney’s Investigative Bureau. When the IMPACT Unit’s investigation of the Health Plan of San Joaquin embezzlement led to evidence that Brewer had embezzled from her prior employer outside of San Joaquin County, the Unit began working with the FBI,” said U.S. Attorney Wagner. “This type of state and federal teamwork is a prime example of how cooperation results in fast, efficient, and appropriate resolution of cases affecting employers throughout California.”
“Brewer abused her position as a trusted employee to craft an elaborate scheme to embezzle over $800,000 over the course of five years. The money was used to support a lifestyle for her and her family that was well beyond her legitimate earnings,” said Special Agent in Charge Monica M. Miller of the Sacramento Field office of the Federal Bureau of Investigation. “Identifying and investigating financial fraud such as this protects the health of our economy and, in the case of fraud against the health care industry, ensures that our citizens continue receive the best possible health care that they have come to expect.”
San Joaquin County District Attorney James P. Willett advised the County’s employers and businesses “to enforce strong checks and balances over their finances and financial records,” noting that it was only due to the “vigilance of First Premier Bank of South Dakota, which alerted the County that County funds were paying Brewer’s personal credit card bill, that this embezzlement from the San Joaquin Health Plan was detected and stopped in six months. In most cases, once the method of embezzlement is established the embezzlement goes on for years.”
This case was the product of an investigation by the San Joaquin County District Attorney Investigations Bureau, IMPACT Unit and the Federal Bureau of Investigation. Assistant United States Attorney Jean M. Hobler is prosecuting the case.
Brewer is scheduled to be sentenced by Chief United States District Judge Morrison C. England Jr. on June 26, 2014. Brewer faces a maximum statutory penalty of 10 years in prison and a $250,000 fine or up to two times the embezzled funds. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was done in connection with the President’s Financial Fraud Enforcement Task Force. 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.
Stockton Woman Pleads Guilty to Credit Card ID Theft SchemeRead the Press Release
SACRAMENTO, Calif. —Frances Marie Charles, 35, resident of Stockton, pleaded guilty today to mail fraud and aggravated identity theft in connection with a fraudulent scheme to obtain replacement American Express credit cards, United States Attorney Benjamin B. Wagner announced.
According to court documents, from about June 2012 through December 2013, Charles participated in a scheme to fraudulently obtain over 215 replacement American Express credit cards in the names of at least 172 people, and to use the credit cards to obtain cash, goods, and services at the expense of American Express, banks, and merchants. Charles placed calls to American Express and used personal identifying information and financial information of victims to cause the replacement cards to be sent to Stockton, California, after which the cards would be used to make fraudulent charges and purchases. The total amount of attempted charges with the credit cards was well in excess of $400,000.
This case was the product of an investigation by the United States Secret Service. Assistant United States Attorney Christopher S. Hales is prosecuting the case.
Charles is in custody awaiting sentencing. She is scheduled to be sentenced by Judge Troy L. Nunley on June 19, 2014. Charles faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for mail fraud, and not less than 2 years imprisonment for aggravated identity theft, to run consecutively to the sentence for mail 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.
Lawyer Sentenced to Ten Years for Money LaunderingRead the Press Release
SACRAMENTO, Calif. — Derian Eidson, 50, of Yorba Linda, California, a suspended member of the California bar, was sentenced today by United States District Judge Troy L. Nunley to 121 months of imprisonment and a fine of $200,000, following conviction at trial on two counts of money laundering, United States Attorney Benjamin B. Wagner announced.
The Court found that Eidson “betrayed the trust that she took when she swore to uphold the laws of the State of California and the United States.” According to evidence presented at the trial, Eidson was an insurance defense lawyer in 2001 when she met Steven Zinnel, a Sacramento businessman. The two began a romantic relationship, and also a near-decade-long relationship transacting in assets that Zinnel had illegally concealed during his child support litigation and personal bankruptcy. Trial testimony established that Zinnel’s motivation was to hide assets from his ex-wife and children; Eidson’s motivation was identified by the Court as “greed.” In the course of the scheme, Eidson used her attorney client trust account to conceal funds.
“Attorneys who misuse their position to perpetrate financial crimes debase the profession, and are particularly deserving of prosecution and imprisonment,” said U.S. Attorney Wagner. “Practicing law is a privilege; it is not a license to steal and conceal.”
"Fraud and dishonesty in bankruptcy proceedings undermines the integrity of these important proceedings," said Jose M. Martinez, IRS - Criminal Investigation Special Agent in Charge. "The defendant in this case was an attorney, who used her legal knowledge to defraud the bankruptcy court and launder the proceeds of that crime. Today's sentence reflects the seriousness of the crimes, promotes respect for the law and provides just punishment."
Together with Zinnel, Eidson established a shell company, Done Deal, for the purpose of receiving distributions from Zinnel’s silent partnership an electrical infrastructure company. Keeping Done Deal and the Done Deal bank account in Eidson’s name allowed Zinnel to conceal his ownership interest in the company from the bankruptcy court and family court. Once Zinnel’s debts were discharged, both Zinnel and Eidson used the Done Deal, according to the Court, as “an ATM machine.”
The Court pointed out the many opportunities that Eidson had to abandon the scheme and advise Zinnel of the illegality of his actions. Judge Nunley also rejected arguments Eidson made for leniency on the basis that she had already lost her law practice, and that her network of “law-abiding” friends and loved ones would make her less likely to reoffend. Instead, the Court found that these factors only served to highlight Eidson’s culpability, stating that while some defendants without such advantages commit crimes out of desperation, Edison’s offense “wasn’t a crime of desperation. This was a crime of greed.”
Zinnel was sentenced to 212 months imprisonment for his role in the offense on March 4, 2014.
This case is the product of an investigation by the FBI and IRS Criminal Investigation. Assistant United States Attorneys Matthew D. Segal, Audrey B. Hemesath, and Kevin Khasigian prosecuted the case.
Lawyer Sentenced to Ten Years for Money LaunderingRead the Press Release
SACRAMENTO, Calif. —
Sentences Handed Down for Asbestos Abatement Violations at Former Air Force Base in Atwater, Calif.Read the Press Release
FRESNO, Calif. —Patrick Bowman, 47, of Los Banos, Calif.; and Rudolph Buendia III, 51, of Planada, Calif., were sentenced today for violating the asbestos work-practice standards of the National Emissions Standards for Hazardous Air Pollutants, United States Attorney Benjamin B. Wagner announced. United States District Judge Lawrence J. O’Neill sentenced Bowman to 27 months in prision, and Buendia to 24 months in prison.
Sentencing for Joseph Cuellar is currently scheduled for June 16, 2014. A restitution hearing as to all three defendants is also scheduled for June 16.
According to court documents, Joseph Cuellar was the administrative manager of Firm Build Inc., Patrick Bowman was its president, and Rudolph Buendia was its construction project site supervisor. From September 2005 to March 2006, Firm Build operated a demolition and renovation project in the former Castle Air Force Base in Atwater, California. They were to turn Building 325 into a mechanic training center for the Merced County Board of Education. The defendants hired local high school students from the Workplace Learning Academy in Merced to perform some of the renovation.
According to court documents, the students and other employees removed and disposed of approximately 1,000 linear feet of pipe insulation and additional tank insulation which the defendants knew contained regulated asbestos-containing material without utilizing proper protective equipment (in the form of Tyvek suits, full-face respirators, bootie or footwear coverings, gloves, hair hoods or caps, and shower equipment) or taking protective measures (wetting the asbestos containing materials, sealing the asbestos debris in secure plastic bags, using negative air pressure in the building) in violation of federal law. Asbestos became airborne during this illegal asbestos abatement. In performing the asbestos abatement project in this manner, defendants knowingly exposed Firm Build employees, Workplace Learning Academy students, as well as other subcontractors and their employees to hazardous airborne asbestos.
U.S. Attorney Wagner said: “Exposing student workers and subcontractors at a construction site to hazardous asbestos in order to cut corners and save money is not just reckless. The sentences imposed today should remind all who may be involved in handling such materials that disregarding federal environmental laws can result in prison time. I am grateful for the support of the investigations bureau of the Merced County District Attorney’s Office, and of Cal-EPA and the California Department of Justice, in the course of the investigation and prosecution of this case.”
“There is no safe level of exposure to asbestos,” said Jay M. Green, Special Agent-in-Charge of EPA’s criminal enforcement program in California. “Directing student workers to illegally remove demolition debris containing asbestos, knowing they had neither the training nor the proper personal protective equipment, threatens their health and safety. EPA and its partner agencies will continue to protect those vulnerable to these crimes by vigorously prosecuting those who place profit above the public health and the environment.”
This case was the product of an investigation by the U.S. Environmental Protection Agency, assisted by Cal-EPA, the investigations bureau of the Merced County District Attorney, and the California Department of Justice. Assistant United States Attorneys Samuel Wong and Melanie Alsworth prosecuted the case.
Leader of $30 Million Bakersfield Mortgage Fraud Scheme and Wife SentencedRead the Press Release
FRESNO, Calif. — United States District Judge Lawrence J. O’Neill sentenced San Diego residents David Crisp, 34, to 17 years and 7 months in prison, and Jennifer Crisp, 31, to five years on probation for charges stemming from their involvement in an extensive mortgage fraud scheme that ran from January 2004 to September 2007, United States Attorney Benjamin B. Wagner announced. David Crisp was ordered to pay more than $28 million in restitution to lenders. He was taken into custody after today’s hearing. Jennifer Crisp was ordered to pay $1,689,952 in restitution.
U.S. Attorney Wagner stated, “David Crisp lived in the fast lane, steering a real estate company that was all image and no substance. Today he crashed hard, and the prison sentence he began this afternoon is the final bit of devastation caused by his mortgage fraud scheme.”
“David Crisp rose to real estate millionaire by participating in a massive mortgage fraud scheme that contributed to the real estate bubble that devastated the savings of so many Californians,” said Special Agent in Charge Monica M. Miller of the Federal Bureau of Investigation’s Sacramento division. “He flaunted his ill-gotten wealth with an extravagant lifestyle that included exotic cars, Armani suits, bodyguards and private jets. His sentencing reflects the gravity of his crimes.”
According to court documents, David Crisp and Carl Cole, who was sentenced last month to 17 years and seven months in prison, owned and operated Crisp & Cole Real Estate (CCRE), a real estate brokerage, and Tower Lending, an affiliated mortgage brokerage. Between January 2004 and September 2007, these defendants and others at CCRE and Tower Lending carried out a conspiracy to defraud mortgage companies and federally insured financial institutions. 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. David Crisp admitted in his plea agreement that he and the co-conspirators caused losses of close to $30 million to the defrauded lenders due to the conspiracy.
According to her plea agreement, Jennifer Crisp acted as a straw buyer for CCRE and purchased several properties by submitting loan applications to lenders containing material misstatements and omissions of material information.
Last week, co-defendant Jayson Peter Costa was sentenced to 78 months in prison due to his participation in the scheme. 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. The trial of the remaining co-defendant is set for April 8, 2014. The charges as to that defendant are only allegations; she is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Before David Crisp 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
(1:09-cr-375 – one count of wire fraud for false statements on loan documents), Megan Balod (1:10-cr-016 – four counts of wire fraud for acting as a straw buyer), and Christopher Lance Stovall (1:10-cr-271 – four counts of mail fraud for making false statements on loan documents). Two are scheduled to be sentenced on May 27, 2014: Kevin Patrick Sluga (1:10-cr-001 – four counts of wire fraud for false verification of employment letters), and Leslie Sluga (1:10-cr-002 – two counts of wire fraud for acting as a straw buyer).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.
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.
Final Defendant Pleads Guilty in Scheme to Use Fresno Trucking Front to Smuggle Cocaine into CanadaRead the Press Release
FRESNO, Calif. —Armitdeep Mann, 33, a Toronto resident and a Canadian citizen, pled guilty today to conspiracy to distribute and possess with the intent to distribute five or more kilograms of cocaine, United States Attorney Benjamin B. Wagner announced.
According to court documents, Mann helped set up a Fresno trucking company intending that cocaine would be concealed in legitimate cargo to be shipped to Canada. As part of the conspiracy, on September 21, 2012, another person was sent to Los Angeles and obtained eight kilograms of cocaine. Law enforcement seized that cocaine and arrested Mann and additional defendants. A follow-up search warrant on September 21, 2012, at the Los Angeles residence where authorities believed the eight kilograms of cocaine had been stored resulted in the seizure of an additional forty kilograms of cocaine.
Mann has been held in custody without bail since his September 21, 2012 arrest. According to court documents, Mann’s father Harjeet Mann, was arrested in the Bakersfield area during 2008 and subsequently convicted of federal cocaine trafficking charges.
This case was the product of an investigation by the Organized Crime Drug Enforcement Task Force. The Drug Enforcement Administration, Fresno Police Department, and the Fontana and Vernon Police Departments actively worked on the case. Assistant United States Attorney Kevin Rooney is prosecuting the case.Armitdeep Mann is scheduled to be sentenced by Judge Anthony W. Ishii on June 9, 2014, at 1:30 p.m. Mann faces a maximum statutory penalty of life in prison and a $10,000,000 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.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Case Update: Central Valley Marijuana TraffickersRead the Press Release
FRESNO, Calif. — Marijuana cultivators from Kern, Stanislaus, and Fresno Counties entered guilty pleas today in two cases and were sentenced in another for their involvement in separate large-scale marijuana cultivation operations, according to U.S. Attorney Benjamin B. Wagner.
Kern County Marijuana Cultivation/Processing Operation (1:13-cr-00028 AWI)Bernabe Hernandez, 53, of Arvin, Calif., entered a guilty plea to conspiring to cultivate, distribute and possess with intent to distribute marijuana and agreed to forfeit the 29 acre agricultural parcel that he owned and used to grow the marijuana. According to court documents, Hernandez is the owner and resident of property on Wheeler Ridge Road in Arvin where Kern County Sheriff deputies found and seized 1,387 pounds of processed marijuana and 338 marijuana plants during the execution of a search warrant there. They also found scales, packaging material, and ammunition and seized $3,179 in drug proceeds from Hernandez’s residence on the property. Hernandez also agreed to forfeit the money seized from his residence.
Hernandez faces a maximum prison term of 20 years, along with a fine of up to $1 million. He is scheduled for sentencing on June 9, 2014. His 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.
The case was investigated by the U.S. Drug Enforcement Administration (DEA), Homeland Security Investigations of Immigration and Customs Enforcement (ICE), and Kern County Sheriff’s Office. Assistant U.S. Attorney Karen Escobar is handling the criminal case and Assistant U.S. Attorney Heather Mardel Jones is handling the forfeiture of assets.Modesto Man Pleads Guilty in River Marijuana Operation (1:12CR342 AWI)
Symery Saykganya, 57, of Modesto, Calif., also entered a guilty plea to conspiring to manufacture, distribute and possess with intent to distribute marijuana grown beside the San Joaquin River in the vicinity of Newman in Stanislaus County. In pleading guilty, Saykganya acknowledged that he and four other men cultivated 907 marijuana plants. During the execution of a search warrant at the grow site, agents also found a firearm and saw that water from the San Joaquin River had been diverted to irrigate the marijuana plants.
Saykganya faces a maximum prison term of 20 years and a fine of up to $1 million. His 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. He is scheduled for sentencing on June 16, 2014.The case was investigated by federal agents from the DEA and Stanislaus Drug Enforcement Agency, a multi-agency drug task force in Modesto.
Las Vegas Man Sentenced for Fresno County Ag Grow (1:12CR2341 LJO)
Paul Nokham, also known as Bountheung Nokham, 49, of Las Vegas, Nevada, was sentenced to two years for conspiring to cultivate, distribute and possess with intent to distribute marijuana grown on an agricultural parcel on Marks Avenue in rural southwest Fresno. During the execution of a federal search warrant there, narcotics agents found Nokham with four other men, 2,932 marijuana plants, and a firearm. The men claimed the plants were being grown for medical reasons. While federal law does not recognize the medical use of marijuana, several of the men acknowledged that the operation was for profit, in violation of California law. In pleading guilty, Nokham acknowledged that he was in Fresno to work and was planning to take processed marijuana back to Las Vegas. Nevada does not recognize the medical use of marijuana.
The case against Nokham was investigated by the DEA and Fresno County Sheriff’s Office.
Assistant United States Attorney Karen A. Escobar prosecuted the cases against Saykganya and Nokham.
Taft Man Inidcted by A Federal Grand Jury for Conspiring with Others to Disribute MethamphetamineRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment today against David Edward Hampton Jr., 34, resident of Taft, California, charging him with conspiracy to distribute and possess with the intent to distribute methamphetamine, attempted distribution of methamphetamine and possession with intent to distribute methamphetamine and heroin, United States Attorney Benjamin B. Wagner announced.
According to court documents, David Hampton conspired with other individuals to distribute pound quantities of methamphetamine which he secured in California for distribution in South Dakota. Hampton would regularly use the U.S. Mails to deliver his methamphetamine to South Dakota.
Hampton was arrested on Tuesday March 25, 2014, at his residence in Taft, California at the time agents and police executed a search warrant at the property.
This case was the product of an investigation by the Violent Crime Task Force which includes the Bakersfield Police Department, the Kern County Sheriff’s Department, the Kern County Probation Office and the Federal Bureau of Investigation. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
If convicted, Hampton faces a maximum statutory penalty of no less than 10 years up to life in prison and a $5,000,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Madera Man Indicted for Tax EvasionRead the Press Release
FRESNO, Calif. — A federal grand jury indictment was unsealed today following the arrest of Jeffrey G. Vincent, 64, of Madera, who is charged with five counts of evading the assessment and payment of individual income taxes, United States Attorney Benjamin B. Wagner announced.
According to court documents, Vincent, the general partner of a Fresno-based engineering company (Stafford Group Limited Partnership, d/b/a Veco Technologies), has not filed an individual income tax return since 1988, despite earning income from Stafford Group, including at least $457,365 between 2007 and 2010. Vincent signed tax returns for Stafford Group in which he falsely represented that he does not have a social security number.
This case was the product of an investigation by the Internal Revenue Service - Criminal Investigations. Assistant United States Attorney Christopher Baker is prosecuting the case.
The defendant was arrested this morning and is scheduled to be arraigned on the indictment before U.S. Magistrate Judge Barbara A. McAuliffe at 1:30 p.m.
If convicted, Vincent faces a maximum statutory penalty of five years in prison and a $250,000 fine for each count of tax evasion. 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 Police Department Detective and Fresno Marijuana Trafficker Indicted in Bribery SchemeRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Derik Carson Kumagai, 40, resident of Clovis, California, and Saykham Somphoune, a/k/a, “Oat,” 40, resident of Fresno, California, charging them with conspiracy, bribery, and extortion, United States Attorney Benjamin B. Wagner announced.
According to court documents, detective Kumagai accepted a $20,000 bribe from an individual who was under investigation for marijuana trafficking. In return for the bribe payment, Kumagai and co-conspirator Somphoune (who is not a law enforcement officer) promised the person under investigation that he would be signed up as a confidential informant for the Fresno Police Department. On November 6, 2013, the person under investigation paid Kumagai approximately $20,000 cash. A few hours later, the person under investigation completed purported documents regarding work as a confidential informant for the Fresno Police Department.
This case was the product of an investigation by the Drug Enforcement Administration, Federal Bureau of Investigation, and Internal Revenue Service, Criminal Investigation Division. The Department of Homeland Security - Homeland Security Investigations, and the United States Postal Inspection Service also provided investigative assistance in this case. Assistant United States Attorneys Grant B. Rabenn and Kevin P. Rooney are prosecuting the case.
Derik Kumagai was released from pretrial custody on March 19, 2014. Saykham Somphoune is currently detained as a flight risk.
If convicted of conspiracy, the defendants face a maximum statutory penalty of five years in prison and a $250,000 fine. If convicted of bribery, they face a maximum statutory penalty of 10 years in prison and a $500,000 fine. If convicted of extortion or conspiracy to commit extortion, they face 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 defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Sacramento Area Man Sentenced to 30 Months in Mortgage Fraud SchemeRead the Press Release
Defendant's Bid to Be Released Before Completing His Sentence Denied
SACRAMENTO, Calif. — Alexander A. Romaniolis, 48, of Irvine, was sentenced today by United States District Judge Troy L. Nunley to 30 months in prison and a $17,500 fine, and forfeiture of over $400,000 for mortgage fraud, United States Attorney Benjamin B. Wagner announced.
According to court documents, Romaniolis recruited five straw buyers to purchase eight California residential properties in Rocklin, Roseville and San Clemente. Romaniolis assisted the straw buyers in providing false information to lenders about their employment, income, assets, and intent to occupy properties as primary residences. In most cases, the straw buyers claimed to be executives of companies created and controlled by Romaniolis. He was responsible for the origination of more than $5 million in residential mortgage loans in the scheme. All of the properties were foreclosed on, resulting in a total loss of more than $2 million.
At sentencing, Romaniolis asked to be released for a short period so he could see his family before completing his sentence. Judge Nunley denied that request.
This case is the product of an investigation by the Federal Bureau of Investigation and the California Attorney General’s Mortgage Fraud Task Force. The Huntington Beach Police Department assisted in the arrest. Assistant United States Attorneys Jean M. Hobler and Jeff Spivak prosecuted the case.
Correctional Officer and Prison Inmate Indicted for Conspiracy to Smuggle Heroin and Methamphetamine into the Taft Correctional FacilityRead the Press Release
FRESNO, Calif. — A federal grand jury returned a five-count superseding indictment today against Ramon Cano, 28, a resident of Bakersfield, and Gerardo Alvarez-Montanez, 32, an inmate at the Taft Federal Correctional Facility charging them with conspiracy to provide and possess contraband in prison and with various substantive counts, including distribution and attempted distribution of a controlled substance and bribery of a public official. United States Attorney Benjamin B. Wagner announced.
According to court documents, Cano a full time contract correctional officer employed at the Taft Federal Correctional Facility, was involved in smuggling heroin, methamphetamine and other items of contraband including cash and cell phones to Alvarez-Montanez in return for payments of cash.
This case was the product of an investigation by the Federal Bureau of Investigation and the Office of the Inspector General U.S. Department of Justice. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
If convicted, Cano and Alvarez face a maximum statutory penalty of forty years in prison and a $5,000,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Bell, California Man Charged with Trafficking Drugs Between Los Angeles Area and ModestoRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Victor Avalos Ballesteros, 24, resident of Bell, California, charging him with possession with intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.
The indictment charging alleges that Ballesteros possessed with intent to distribute methamphetamine on February 10, 2014 within the County of Madera, California. According to court documents, Ballesteros was transporting approximately 3.8 kilograms of methamphetamine from the Los Angeles area to Modesto.
This case was the product of an investigation by the Homeland Security Investigations and the Madera Narcotic Enforcement Task Force (MADNET). Assistant United States Attorneys Patrick R. Delahunty and Kimberly A. Sanchez are prosecuting the case.
If convicted, Ballesteros faces a maximum statutory penalty of 20 years in prison and a $1,000,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
San Joaquin County Man Indicted on Charges of Attempting to Provide Material Support to Foreign Terrorist OrganizationRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today charging Nicholas Michael Teausant, 20, of Acampo, with attempting to provide material support or resources to a foreign terrorist organization, United States Attorney Benjamin B. Wagner announced.
According to court documents, Teausant traveled to the Canadian border with the intent of continuing to travel to Syria to join the Islamic State of Iraq and Syria, a foreign terrorist organization more widely known as al-Qa’ida in Iraq.
This case was the product of an investigation by the Federal Bureau of Investigation and the Modesto Police Department and San Joaquin Sheriff’s Office, who are members of the Modesto/Stockton Joint Terrorism Task Force, with significant assistance from U.S. Customs and Border Protection. Assistant United States Attorneys Jean M. Hobler and Jason S. Hitt are prosecuting the case in conjunction with Trial Attorney Andrew Sigler of the National Security Division of the U.S. Department of Justice.
Teausant was charged by complaint with one count of attempting to provide material support or resources to a terrorist organization on March 17, 2014. He is currently in the custody of the U.S. Marshals pending transportation to the Eastern District of California from the Western District of Washington, where he was arrested, to face the charges now brought by indictment. The date of his arrival in the Eastern District of California is not yet set.
The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt. If convicted, Teausant faces a maximum statutory penalty of 15 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.
Complaint
Case Update: Central Valley Marijuana TraffickersRead the Press Release
FRESNO, Calif. — Marijuana cultivators from Inyo, Fresno, Kern and Stanislaus Counties entered guilty pleas today in three cases and sentenced in two for their involvement in separate large-scale marijuana cultivation operations, according to U.S. Attorney Benjamin B. Wagner.
Mexican Nationals Plead Guilty to Forest Marijuana Operation (1:13CR340 LJO)
Jose Aguilar Santoyo (“Aguilar”), 27, of Michoacàn, Mexico, and Jose Salvador Garcia Rodriguez (“Garcia”), 23, of Guanajuato, Mexico both entered guilty pleas to conspiring to manufacture, distribute and possess with intent to distribute marijuana grown on public land. According to court documents, U.S. Forest Service agents seized 3,405 marijuana plants, 350 pounds of processed marijuana, digital scales, highly toxic and illegal rodenticides, including uFuran or Carbofuran, and 2,200 pounds of trash from a marijuana cultivation operation in the Hogback Creek area of the Inyo National Forest. Agents found Garcia at the grow site. Agents found Aguilar at a stash house associated with the grow site in Romoland in Riverside County. Marijuana shake and residue, shipping labels associated with the shipment of marijuana to Chicago, and a firearm were also found at the stash house. In pleading guilty, Aguilar and Garcia both agreed to pay $6,572.14 to the U.S. Forest Service for Hazmat removal and dumping fees associated with eradication of the grow site.Aguilar and Garcia are scheduled for sentencing on June 16, 2014. Aguilar faces a mandatory minimum prison term of five years and a maximum term of forty years, along with a fine of $5 million. Garcia faces a maximum prison term of twenty years and a fine of $1 million. Both are also subject to deportation to Mexico, upon completion of any prison term imposed. Their actual 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.
This case was investigated by the U.S. Forest Service, U.S. Drug Enforcement Administration (DEA), Homeland Security Investigations of Immigration and Customs Enforcement (ICE), Inyo County Sheriff’s Office, and Riverside County Sheriff’s Office. The Environmental Protection Agency (EPA) also assisted in the investigation.
Fresno Man Pleads Guilty in River Marijuana Operation (1:12CR342 AWI)
Sam Kounhavong, 51, of Fresno, Calif., also entered a guilty plea to conspiring to manufacture, distribute and possess with intent to distribute marijuana grown beside the San Joaquin River in the vicinity of Newman in Stanislaus County. In pleading guilty, Kouhnavong acknowledged that he and four other men cultivated 907 marijuana plants under the guise of compliance with California medical marijuana law. Although federal law does not recognize a medical purpose for marijuana, Kounhavong admitted that the marijuana was grown for profit without any medical purpose. During the execution of a search warrant at the grow site, agents also found a firearm and saw that water from the San Joaquin River had been diverted to irrigate the marijuana plants.
Kounhavong faces a maximum prison term of 20 years and a fine of up to $1 million. His 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. He is scheduled for sentencing on June 2, 2014.
The case was investigated by federal agents from the DEA and Stanislaus Drug Enforcement Agency, a multi-agency drug task force in Modesto.
Fresno Man Sentenced for Ag Grow (1:12CR2341 LJO)
Phonepaseuth Phaphilom, 27, of Fresno, was sentenced to 46 months in prison followed by 36 months supervised release for conspiring to cultivate, distribute and possess with intent to distribute marijuana grown on an agricultural parcel on Marks Avenue in rural southwest Fresno. During the execution of a federal search warrant there, narcotics agents found Phaphilom with four other men from out of the area, 2,932 marijuana plants, and a firearm. The men claimed the plants were being grown for medical reasons. While federal law does not recognize the medical use of marijuana, several of the men acknowledged that the operation was for profit, in violation of California law. Phaphilom, who was detained pretrial based in part on a criminal history that included weapons and narcotics violations, said he was going to sell the marijuana “up North” for $800 a pound. Based on a conservative one pound per plant yield, the cultivation operation was valued at over $2.3 million. In addition, court records indicate that some of the marijuana was destined for Las Vegas. The State of Nevada does not recognize the medical use of marijuana.
The case against Phaphilom was investigated by the DEA and Fresno County Sheriff’s Office.
Assistant United States Attorney Karen A. Escobar prosecuted the above cases.
California State Senator and Chee Kung Tong Drangonhead Among Twenty-Six Defendants Charged in Federal Criminal ComplaintRead the Press Release
SAN FRANCISCO – A federal criminal complaint, filed on March 24, 2014, was unsealed in San Francisco today, charging twenty-six defendants with firearms trafficking, money laundering, murder-for-hire, drug distribution, trafficking in contraband cigarettes, and honest services fraud, announced United States Attorney Melinda Haag, FBI Special Agent in Charge David J. Johnson, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez.
The defendants include Raymond “Shrimpboy” Chow, the current Dragonhead, or leader, of the San Francisco-based Chee Kung Tong organization (CKT), and State Senator Leland Yee, who represents San Mateo County and part of San Francisco County in the California Senate.
With respect to Chow, according to the Complaint, as FBI undercover agents infiltrated the CKT through introductions made by Chow and others, a pattern of alleged racketeering activity was uncovered.
According to the Complaint, as the relationship developed among the primary undercover agent, Chow, and other defendants, the undercover agent informed the defendants that he was interested in generating income from illegal schemes. The undercover agent was inducted into the CKT as a “Consultant.” Thereafter, during the course of multiple undercover operations, the undercover agent was allegedly introduced to a number of the defendants in order to launder money, traffic narcotics, traffic in firearms, traffic purportedly stolen cigarettes and liquor, and engage in murder-for-hire schemes.
Chow also introduced Keith Jackson to the undercover agent. Jackson, the owner and operator of “Jackson Consultancy,” a San Francisco based consulting firm, is a “Consultant” to the CKT. Jackson and his son, Brandon Jackson, allegedly responded to a request for weapons by the undercover agent, by indicating that Brandon Jackson, and an associate would be able to accommodate his request. Subsequently, Jackson, Brandon Jackson, and Marlon Sullivan sold various types of firearms, and two ballistic vests, to the undercover agent. Additionally, Jackson, Brandon Jackson, and Sullivan allegedly conspired to commit a purported murder for hire scheme requested by the undercover agent, in addition to other illegal activity, including the sale of stolen credit cards and the purported sale of cocaine to Jackson, Brandon Jackson, and Sullivan from the undercover agent.
Brandon Jackson introduced the undercover agent to Rinn Roeun, one of Brandon Jackson’s sources of supply for firearms. Roeun sold multiple firearms to the undercover agent and, during a series of conversations, told the undercover agent that he was willing to commit murder for a fee.
According to the Complaint, in addition to his relationship with Chow, and the CKT, Keith Jackson is also a close associate of Senator Leland Yee. From at least May 2011 through the present, Jackson has been involved in raising campaign funds for Yee.
With respect to Yee, the Complaint alleges that over the course of 2012 and continuing to the present time, Yee and Keith Jackson allegedly raised money and campaign funds for Yee’s Secretary of State campaign by soliciting donations from FBI undercover agents, in exchange for multiple official acts, and that Yee and Jackson were involved in a conspiracy to traffic firearms.
Starting in May 2011, according to the Complaint, and continuing for several months, Jackson solicited an undercover agent with the FBI to make contributions to Yee’s San Francisco mayoral campaign. These solicitations allegedly included asking the agent for donations in excess of the $500 individual donation limit. The agent declined to make any donations to Yee, but introduced Jackson and Yee to a purported business associate, another undercover FBI agent. Jackson and Yee then solicited the second undercover agent for campaign contributions. This solicitation resulted in at least one personal donation in the amount of $5,000 to Yee’s mayoral campaign.
After Yee lost the November 8, 2011, election, according to the Complaint, he had at least $70,000 in debt from that campaign. In connection with efforts to retire the mayoral campaign debt, according to the complaint, Yee and Jackson allegedly agreed that Yee would make a telephone call to a manager with the California Department of Public Health in support of a contract under consideration with the second undercover agent’s purported client, and would provide an official letter of support for the client, in exchange for a $10,000 campaign donation. Yee allegedly made the call on October 18, 2012, and provided the letter on or about January 13, 2013. On November 19, 2012, Jackson accepted the $10,000 cash donation.
According to the Complaint, in a further attempt by Jackson and Yee to gain money from one of the undercover agents, in August 2013, Jackson told the undercover agent that Yee had a contact who deals in arms trafficking. Jackson requested that the undercover agent provide a campaign donation on behalf of Yee, for Yee to facilitate a meeting with the arms dealer with the intent of the undercover agent to purportedly purchase a large number of weapons. During a meeting with the undercover agent, Yee and Jackson allegedly discussed details of the specific types of weapons the undercover agent was interested in buying and importing.
The defendants are charged as follows:
LELAND LIN YEE
- Conspiracy to Traffic in Firearms Without a License, and to Illegally Import Firearms, in violation of 18 U.S.C. § § 371, 922(a)(1), and (l)
- Scheme to Defraud Citizens of Honest Services, in violation of 18 U.S.C. § § 1343, 1346, 2 (six counts)
KEITH JACKSON
- Conspiracy to Traffic in Firearms Without a License and to Illegally Import Firearms, in violation of 18 U.S.C. § § 371, 922(a)(1), and (l)
- Trafficking in Firearms Without a License, in violation of 18 U.S.C. § 922(a)(1)
- Scheme to Defraud Citizens of Honest Services, in violation of 18 U.S.C. § § 1343, 1346, 2 (six counts)
- Use of an Interstate Commerce Facility for the Commission of a Murder-for-Hire, in violation of 1958
- Conspiracy to Distribute Narcotics, in violation of 21 U.S.C. § 846
KWOK CHEUNG CHOW, a/k/a RAYMOND CHOW, a/k/a SHRIMPBOY
- Money Laundering of Funds Believed to be Proceeds of Specified Unlawful Activity, in violation of 18 U.S.C. § 1956(a)(3) (three counts)
- Money Laundering, in violation of 18 U.S.C. § 1956(a)(1) (two counts)
- Conspiracy to Receive and Transport Stolen Property in Interstate Commerce, in violation of 18 U.S.C. § § 371, 2314, and 2315 (two counts)
- Conspiracy to Traffic and Trafficking in Contraband Cigarettes, in violation of 18 U.S.C. § § 371, 2315, 2342(a), and 2344
GEORGE NIEH
- Money Laundering of Funds Believed to be Proceeds of Specified Unlawful Activity, in violation of 18 U.S.C. § 1956(a)(3) (three counts)
- Money Laundering, in violation of 18 U.S.C. § 1956(a)(1) (two counts)
- Conspiracy to Receive and Transport Stolen Property in Interstate Commerce, in violation of 18 U.S.C. § § 371, 2314, and 2315 (two counts)
- Conspiracy to Traffic and Trafficking in Contraband Cigarettes, in violation of 18 U.S.C. § § 371, 2315, 2342(a), and 2344
- Trafficking in Firearms Without a License, in violation of 18 U.S.C. § 922(a)(1) (two counts)
- Felon in Possession of a Firearm, in violation of 18 U.S.C. § 922(g)(1) (two counts)
- Conspiracy to Distribute Narcotics, in violation of 21 U.S.C. § § 841 and 846.
KEVIN SIU
- Money Laundering of Funds Believed to be Proceeds of Specified Unlawful Activity, in violation of 18 U.S.C. § 1956(a)(3)
ALAN CHIU
- Money Laundering of Funds Believed to be Proceeds of Specified Unlawful Activity, in violation of 18 U.S.C. § 1956(a)(3)
KONGPHET CHANTHAVONG
- Conspiracy to Distribute Narcotics, in violation of 21 U.S.C. § § 841 and 846 (two counts)
- Possession With Intent to Distribute Narcotics, in violation of 21 U.S.C. § 841
- Possession of a Firearm in Furtherance of a Drug Trafficking Crime, in violation of 18 U.S.C. § 924(c)
- Trafficking in Firearms Without a License, in violation of 18 U.S.C. § 922(a)(1) (three counts)
- Felon in Possession of a Firearm, in violation of 18 U.S.C. § 922(g)(1)(three counts)
XIAO CHENG MEI, a/k/a MICHAEL MEI- Possession With Intent to Distribute Narcotics, in violation of 21 U.S.C. § 841
BRANDON JACKSON
- Conspiracy to Distribute Narcotics, in violation of 21 U.S.C. § 846
- Trafficking in Firearms Without a License, in violation of 18 U.S.C. § 922(a)(1)
- Use of an Interstate Commerce Facility for the Commission of a Murder-for-Hire, in violation of 1958
MARLON SULLIVAN
- Conspiracy to Distribute Narcotics, in violation of 21 U.S.C. § 846
- Trafficking in Firearms Without a License, in violation of 18 U.S.C. § 922(a)(1)
- Use of an Interstate Commerce Facility for the Commission of a Murder-for-Hire, in violation of 1958
RINN ROEUN
- Trafficking in Firearms Without a License, in violation of 18 U.S.C. § 922(a)(1)
- Use of an Interstate Commerce Facility for the Commission of a Murder-for-Hire, in violation of 1958
ANDY LI
- Money Laundering, in violation of 18 U.S.C. § 1956(a)(1)
- Conspiracy to Distribute Narcotics, in violation of 21 U.S.C. § 846
- Trafficking in Firearms Without a License, in violation of 18 U.S.C. § 922(a)(1) (two counts)
- Felon in Possession of a Firearm, in violation of 18 U.S.C. § 922(g)(1) (two counts)
LESLIE YUN
- Money Laundering of Funds Believed to be Proceeds of Specified Unlawful Activity, in violation of 18 U.S.C. § 1956(a)(3)
- Conspiracy to Traffic and Trafficking in Contraband Cigarettes, in violation of 18 U.S.C. § § 371, 2315, 2342(a), and 2344
YAT WAH PAU, a/k/a JAMES PAU- Money Laundering of Funds Believed to be Proceeds of Specified Unlawful Activity, in violation of 18 U.S.C. § 1956(a)(3)
- Conspiracy to Traffic and Trafficking in Contraband Cigarettes, in violation of 18 U.S.C. § § 371, 2315, 2342(a), and 2344
JANE MIAO XHEN LIANG, a/k/a JANE LIANG
- Conspiracy to Receive and Transport Stolen Property in Interstate Commerce, in violation of 18 U.S.C. § § 371, 2314, and 2315
TINA YAO GUI LIANG, a/k/a TINA LIANG
- Conspiracy to Receive and Transport Stolen Property in Interstate Commerce, in violation of 18 U.S.C. § § 371, 2314, and 2315
- Conspiracy to Distribute Narcotics, in violation of 21 U.S.C. § 846
BRYAN TILTON
- Conspiracy to Receive and Transport Stolen Property in Interstate Commerce, in violation of 18 U.S.C. § § 371, 2314, and 2315
- Conspiracy to Distribute Narcotics, in violation of 21 U.S.C. § 846
HUAN MING MA
- Conspiracy to Receive and Transport Stolen Property in Interstate Commerce, in violation of 18 U.S.C. § § 371, 2315
HON KEUNG SO
- Conspiracy to Receive and Transport Stolen Property in Interstate Commerce, in violation of 18 U.S.C. § § 371, 2315
NORGE MASTRANGELO
- Money Laundering, in violation of 18 U.S.C. § 1956(a)(1)
ALBERT NHINGSAVATH
- Money Laundering, in violation of 18 U.S.C. § 1956(a)(1)
SERGE GEE
- Money Laundering, in violation of 18 U.S.C. § 1956(a)(1) (three counts)
XIU YING LIANG, a/k/a ELAINE LIANG
- Money Laundering, in violation of 18 U.S.C. § 1956(a)(1) (three counts)
GARY KWONG YIU CHEN
- Money Laundering, in violation of 18 U.S.C. § 1956(a)(1) (two counts)
ANTHONY LAI
- Money Laundering, in violation of 18 U.S.C. § 1956(a)(1) (two counts)
WILSON SY LIM
- Conspiracy to Traffic in Firearms Without a License, and to Illegally Import Firearms, in violation of 18 U.S.C. § § 371, 922(a)(1), and (l)
In a related case, a complaint filed on March 25, 2014, charging defendant BARRY HOUSE with one count of trafficking in firearms without a license, in violation of 18 U.S.C. § 922(a)(1), and one count of felon in possession of a firearm, in violation of 18 U.S.C. § 922(g)(1).
The maximum penalties for the violations are as follows:
- 18 U.S.C. § 1956(a)(1) Twenty years in prison
Three years supervised release
$500,000 fine
$100 special assessment- 18 U.S.C. § 1956(a)(3) Twenty years in prison
Three years supervised release
$500,000 fine
$100 special assessment- 18 U.S.C. § § 371, Five years in prison
2314, 2315 Three years supervised release
$250,000 fine
$100 special assessment- 18 U.S.C. § § 371, 2315, Five years in prison
2342(a), 2344 Three years supervised release
$250,000 fine
$100 special assessment- 18 U.S.C. § 922(a)(1) Five years in prison
Three years supervised release
$250,000 fine
$100 special assessment- 18 U.S.C. § 922(g)(1) Ten years in prison
Three years supervised release
$250,000 fine
$100 special assessment- 18 U.S.C. §§ 371, Five years in prison
922(a)(1), 922(l) Three years supervised release
$250,000 fine
$100 special assessment- 18 U.S.C. § 924(c) From five years to life
Five years supervised release
$250,000 fine
$100 special assessment- 18 U.S.C. § 1958 Ten years in prison
Three years supervised release
$250,000 fine
$100 special assessment- 18 U.S.C. § § 1343, Twenty years in prison
1346, 2 Three years supervised release
$250,000 fine
$100 special assessment- 21 U.S.C. § 841 From five years to forty years in prison
Four years supervised release
$5 million fine
$100 special assessment- 21 U.S.C. § 841, 846 Five years in prison,
with five or ten year mandatory minimum
in some instances
Three to five years supervised release
$250,000 to $10 million fine
$100 special assessmentThe defendants, with the exception of Brandon Jackson, Sullivan, Liang, Nhingsavath, Mastrangelo, Gee, Yun, and Pau, were arrested today and made their initial appearances in federal court in San Francisco in front of United States Magistrate Judge Nathanael M. Cousins.
Yun and Pau were arrested yesterday in New York. Sullivan was arrested this morning in New Jersey and Brandon Jackson was arrested in Connecticut. Liang, Nhingsavath, Mastrangelo, and Gee are fugitives.
A complaint merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants are subject to the maximum penalties stated above. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
William Frentzen, Susan Badger, and Waqar Hasib are the Assistant U.S. Attorneys who are prosecuting the case. The prosecution is the result of a five-year investigation by the FBI, Internal Revenue Service-Criminal Investigations Division, San Francisco Police Department, Oakland Police Department, and Antioch Police Department.
Further Information:
Case #:CR-3-14-70421 NC
A copy of this press release may be found on the website of the U.S. Attorney's Office at http://www.justice.gov/usao/can/index.html.
Electronic court filings and further procedural and docket information are available at https://ecf.cand.uscourts.gov/cgi-bin/login.pl.
Judges' calendars with schedules for upcoming court hearings can be viewed on the court's website at www.cand.uscourts.gov.
Press inquiries to the U.S. Attorney's Office should be directed to Lili AraúzHaase at (415) 436-6811 or by e-mail at [email protected].Criminal Complaint
Suspended Sacramento Attorney Sentenced to 46 Months for Tax CrimesRead the Press Release
SACRAMENTO, Calif. — Donald M. Wanland, 56, resident of El Dorado Hills, was sentenced today by United States District Judge Lawrence K. Karlton to 46 months in prison for convictions on 28 criminal counts, including tax evasion, failing to file tax returns, and removing, depositing, and concealing assets from the IRS in defiance of a levy, United States Attorney Benjamin B. Wagner announced.
Wanland is a Sacramento-area attorney who was convicted of the 28 tax-related counts on September 26, 2013, after a two week jury trial. During sentencing today, Judge Karlton noted that lawyers have a “special duty” and stated, “it is particularly distressing when a lawyer just disregards the law.” On February 19, 2014, the California State Bar placed Wanland on interim suspension as a result of his convictions, and he is currently not eligible to practice law.
Wanland stated to the Court at sentencing today that his conduct was driven by “greed, selfishness, and contempt.” According to evidence introduced at trial, Wanland evaded paying taxes for years. For tax years 2000 through 2003, he filed tax returns showing gross income of more than $1.5 million, for which he admitted owing taxes of $448,451. But he paid nothing. When the IRS tried to collect, Wanland concealed the bank accounts that he used to receive and spend his income, and then filed no tax returns at all for years 2004 through 2007. He continued working for his law firm and received more than $1 million total during those years. When the IRS placed levies on his income in April 2005, Wanland repeatedly defied the levies by continuing to funnel his income to the concealed nominee accounts. He spent the money on various items including a $2,700 weekend at Squaw Valley Ski Resort, payments on a Mercedes Benz and a Cadillac Escalade, gambling at Las Vegas casinos, vacations to Mexico and Hawaii, limousine services, and expenses for the pool at his home in El Dorado Hills. He also withdrew hundreds of thousands of dollars in cash and wrote hundreds of thousands of dollars in checks out of the concealed accounts.
“One of the obligations of American citizenship is to pay federal income taxes, and most people recognize that obligation” said U.S. Attorney Wagner. “It is particularly offensive when someone who has profited from the bounty of this society, like Don Wanland, shirks that duty. The fact that he will be contemplating his crimes from prison should send a message to others that no one is too busy, too clever, or too wealthy to comply with the tax code.”
“This is not a case of someone who simply fell behind in a good faith effort to keep up with their taxes,” said José M. Martínez, Special Agent in Charge, IRS Criminal Investigation. “Mr. Wanland is a lawyer who refused to obey the law and used his legal knowledge to cheat the federal and state governments out of more than $2.2 million. Those who intentionally undermine our tax system should know they will not go undetected and will be held accountable.”
According to court documents, Wanland tried to challenge the amount of tax loss connected to his by claiming his tax debts had been later discharged in a bankruptcy. The Court rejected this argument, noting that federal bankruptcy law automatically precluded Wanland’s tax debts from being discharged in bankruptcy because he engaged in willful tax evasion.
This case was the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Matthew D. Segal and Christopher S. Hales prosecuted the case.
Wanland has been in custody since the date of his conviction on September 26, 2013. Following sentencing, he was remanded into the custody of the United States Marshal to serve the remainder of his sentence.Marysville Man Sentenced to over Seven Years in Federal Prison for Racially Motivated Assault on White Man and African-American WomanRead the Press Release
SACRAMENTO, Calif. – Billy James Hammett, 30, of Marysville, Calif., was sentenced today by U.S. District Judge John A. Mendez to 87 months in prison for violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act for his role in a 2011 racially motivated attack against a white man and an African-American woman in Marysville, Calif. The court also ordered Hammett to pay restitution of $175 and to serve a three year period of supervised release. Hammett pleaded guilty on Dec. 17, 2013, and his co-defendants, Perry Sylvester Jackson, 28, and Anthony Merrell Tyler, 33, have also pleaded guilty and are awaiting sentencing.
According to documents filed with the court, around 10:45 p.m. on April 18, 2011, a white man and an African-American woman parked their car at a convenience store in Marysville. Shortly afterward, the three defendants, each of whom has white supremacist tattoos, attacked the man and woman based on race. After calling the male victim a “[racial slur]-lover,” Jackson punched him twice in the head through the open passenger window. At the same time, Hammett kicked the woman in the chest. A few seconds later, Tyler smashed the car’s windshield with a crowbar. As the attack continued, the woman managed to take refuge inside the convenience store. All three assailants then descended upon the male victim and began attacking him in the parking lot. He sustained abrasions on his right forearm and knees, while the woman suffered bruising to her chest. At the end of the incident, Tyler used a racial slur to refer to an African-American witness.
In sentencing the defendant, Judge Mendez said he found surveillance video footage of the assault “disturbing.” He noted that Hammett’s attack on the victims was “unprovoked and unwarranted,” and that the victims continue to suffer.
During the sentencing hearing, Judge Mendez considered Hammett’s background and criminal history, which includes a conviction in 2006 for assaulting a 72-year-old black man, also in Marysville. According to court records, Hammett made racial comments immediately before the unprovoked attack. In addition, Hammett has been affiliated with a number of white supremacist gangs, including Supreme White Power. He has tattoos of the words “white power” across his abdomen, a large swastika on the right side of his torso and the word “skinhead” written across the top of his back. Judge Mendez stated during the sentencing hearing that Hammett poses “a serious threat to the public.”
“The defendant and his friends accosted the victims in public and assaulted them because of their race,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Department is committed to stamping out racial violence and will continue to prosecute hate crimes vigorously.”
“Racially-motivated violence has no place in civilized society,” said U.S. Attorney Benjamin B. Wagner for the Eastern District of California. “This office has a history of prosecuting those perpetrate crimes of hate, and as long as these crimes continue, we will be there to enforce the law and uphold this nation’s Constitutional values.”
“The FBI has a long history of promptly investigating civil rights violations,” said Special Agent in Charge Monica M. Miller for the FBI Sacramento Field Office. “Hammett is experiencing the full force of a federal response against his despicable act. The strong sentence imposed by Judge Mendez demonstrates that hate crimes such as this will not be tolerated in our communities.”
This case was investigated by the FBI with assistance of the Yuba County Sheriff’s Office and the Yuba County District Attorney’s Office. The case is being prosecuted by U.S. Attorney Wagner and Trial Attorney Chiraag Bains of the Civil Rights Division.
Jackson is scheduled to be sentenced on April 22, 2014 and Tyler is scheduled to be sentenced on July 8, 2014. Each defendant faces a statutory maximum sentence of 10 years in prison and a fine of $250,000.Guilty Plea in Bakersfield Mortgage Fraud SchemeRead the Press Release
FRESNO, Calif. — Antonio Perez Marcial, 41, of Bakersfield, pleaded guilty today to conspiracy to commit bank fraud, mail fraud, and wire fraud, in connection with a mortgage fraud scheme in Bakersfield, U.S. Attorney Benjamin B. Wagner announced.
According to Perez-Marcial’s guilty plea, he conspired with his co-defendants from 2007 to 2010 to use straw buyers to purchase residential properties in Bakersfield developed by Jara Brothers Investments (JBI), owned by co-defendants Eliseo Jara and Sergio Jara, and Pershing Partners LLC, owned by co-defendant Lucia Chavez. The conspirators paid straw buyers to purchase the properties from JBI and Pershing Partners, and funded the purchases using loans they obtained for the straw buyers from lenders based on false and fraudulent loan applications. 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. The conspirators concealed from the lenders that the property developers funded certain of the straw buyers’ down payments. The conspirators also submitted false supporting documentation to lenders such as false and altered bank account statements purporting to show that the straw buyer had a high bank account balance, false verifications of the straw buyers’ bank account funds, false verifications of rent purporting to be from the straw buyer’s landlord, false pay stubs, and false verifications of employment. Perez-Marcial at times received from other conspirators a “consulting fee” ranging from $20,000 to $30,000 or more when a property was sold to a straw buyer, to compensate Perez-Marcial for having obtained the straw buyer and to fund the straw buyer’s payment. Perez-Marcial admitted he caused lenders approximately $3,455,250 in losses due to his role in the conspiracy.
“Mortgage fraud saps the strength of our banking system and has victimized communities across our nation,” said Jose M. Martinez, Special Agent in Charge of IRS Criminal Investigation in Oakland. “Today’s plea represents one of the many results of the ongoing and focused efforts of the IRS and our law enforcement partners to identify and hold criminals who tried to game our financial system accountable for their actions.”
This case is the product of a joint investigation by the Federal Bureau of Investigation and the Internal Revenue Service - Criminal Investigation. Assistant U.S. Attorneys Kirk E. Sherriff and Henry Z. Carbajal III are prosecuting the case.
Perez-Marcial is scheduled to be sentenced on June 2, 2014 at 10:00 a.m. by Senior United States District Judge Anthony W. Ishii. The maximum sentence for the conspiracy charge is 30 years in prison. The 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.
Co-defendant Ricardo Salinas pleaded guilty to bank fraud in 2013, and his sentencing is set for July 28, 2014. The remaining six defendants have pleaded not guilty, the charges as to them are only allegations, and they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This law enforcement action is part of the work being done by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. One component of the FFETF is the national Mortgage Fraud Working Group, co-chaired by U.S. Attorney Wagner. For more information on the task force, visit StopFraud.gov.
Fifth Defendant Pleads Guilty to Theft of Mail from Wasco Post OfficesRead the Press Release
FRESNO, Calif. — Mayra Alejandra Soria, 30, formerly of Bakersfield, pleaded guilty today to conspiracy to steal and possess stolen mail and one count of possession of 15 or more unauthorized access devices, United States Attorney Benjamin B. Wagner announced. Soria is the last of five co-conspirators to plead guilty to mail theft crimes after being indicted in May 2013 as part of Operation Broken Mailbox, the United States Postal Inspection Service’s ongoing effort to work with local law enforcement partners to investigate and prosecute stolen mail offenses.
According to court documents, from March 17, 2013 until May 21, 2013, Soria and others engaged in a conspiracy to steal mail in Wasco and elsewhere in the Bakersfield area, in order to steal checks and commit identity theft. As part of the conspiracy, Soria and her co-conspirators fished mail out of U.S. mail collection boxes located at Bakersfield area post offices and then looked for third party information and financial instruments, including checks and money orders to cash. The defendants then altered and negotiated the stolen checks – sometimes by depositing them into accounts they had opened in the names of identity theft victims. In total, Soria and her co-defendants stole checks and other items valued at more than $120,000.
This case was the product of an investigation by the United States Postal Inspection Service with assistance from the Wasco Kern County Sheriff’s Office. Assistant United States Attorney Megan A. S. Richards 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 those responsible for mail theft to protect postal customer’s mail from theft.”
Soria is scheduled to be sentenced by Judge Lawrence J. O'Neill on June 16, 2014, at 8:30 a.m. Soria faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Co-defendant Eric Alberto Herrera, 26, pleaded guilty to conspiracy to steal mail in December and was sentenced to 24 months imprisonment. Co-defendant Elisee Torres-Pacheco, 36, pleaded guilty to possession of stolen mail and was sentenced to 36 months of probation. Co-defendants Brisa Celeste Castillo, 33, and Mateo Manuel Santiago, 25, each have pled guilty to conspiracy to steal mail and are awaiting sentencing by Judge Lawrence J. O’Neill. Castillo faces a maximum statutory penalty of five years in prison and a $250,000 fine. Her sentencing is set for May 5, 2014. Santiago, who pled guilty to one count of unlawfully possessing a postal mail key in addition to conspiracy, faces a maximum statutory penalty of ten years in prison and a $250,000 fine. His sentencing is set for April 28, 2014.
Child Exploitation Cases: Clovis Teacher Pleads Guilty to Producing Child Pornography, Madera and Modesto Men Sentenced to Long Prison Terms, Bakersfield Man Sentenced for Probation ViolationRead the Press Release
FRESNO, Calif. — A teacher from Clovis pleaded guilty today to producing child pornography, a Madera man was sentenced to 25 years in prison, a Modesto man was sentenced to 17 years in prison, and a Bakersfield man was returned to prison for violating the terms of his post-prison supervision, United States Attorney Benjamin B. Wagner announced.
“This office has established a national reputation for its prosecution of child predators and others who exploit children,” said U.S. Attorney Wagner. “One of the U.S. Department of Justice’s strategic priorities is protecting the most vulnerable members of society; cases like these make clear why we take this mission so seriously.”
“As these cases make abundantly clear, local and federal law enforcement are allied in the effort to protect children and combat the proliferation of child pornography,” said Mike Prado, resident agent in charge for Homeland Security Investigations (HSI) Fresno. “The urgency of our mission cannot be understated, particularly in the cases highlighted today that involved local victims whose innocence was stolen by the defendants.”“The Federal Bureau of Investigation and our law enforcement partners are committed to identifying and investigating all individuals who possess and trade images that depict the victimization of young children,” said Special Agent in Charge Monica M. Miller of the Sacramento FBI. “Repeat offenders such as Reddell and Bowersox are of particular concern as the continued, despicable behavior, despite a prior conviction, demonstrates the threat posed to our innocent children.”
Former Clovis Teacher Pleads Guilty to Producing Child Pornography
Former Clovis Unified School District teacher Neng Yang, 46, of Clovis, pleaded guilty today to two counts of sexual exploitation of a minor. According to the plea agreement, Yang admitted to using a computer device and electronic storage media to record and store videos depicting the sexual abuse of a minor under 12 years old on multiple occasions in January 2012. Yang was charged with four counts of producing child pornography and has been in federal custody since January 27, 2012.Yang is scheduled to be sentenced by Senior United States District Judge Anthony W. Ishii on June 2, 2014. The plea agreement contemplates a sentence of 38 years. The actual sentence, however, will be determined at the discretion of the court at the hearing.
This case is 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 is prosecuting the case. Docket #: 1:12-cr-037 AWI
Madera Parolee Sentenced to 25 Years in Prison for Receipt of Child Pornography
Frank Charles Reddell, 39, of Madera, was sentenced today by U.S. District Judge Lawrence J. O'Neill to 25 years in prison for receiving child pornography. According to court documents, on December 26, 2012, Reddell was arrested by a California State Parole agent who observed Reddell sitting in his car in a parking lot viewing images of child pornography. At the time of his arrest, Reddell was on parole. When agents searched the Reddell’s computer and a computer thumb drive identified as belonging to him, they found many files containing child pornography. Reddell also had a 2004 conviction in the Tuolumne County Superior Court for lewd and lascivious conduct with a minor. Reddell pleaded guilty to receipt of child pornography on December 2, 2013.This case was the product of an investigation by the Fresno U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Madera County Sheriff’s Office, the Madera Police Department, and the California Department of Corrections & Rehabilitation. Assistant United States Attorney Brian W. Enos prosecuting the case. Docket # 1:13-cr-090 LJO
Modesto Man Sentenced 17 Years in Prison for Receipt and Distribution of Child Pornography
Ted Lee Duran, 49, of Modesto, was sentenced by Senior U.S. District Judge Anthony W. Ishii to serve 17 years in prison and a lifetime term of supervised release for receipt and distribution of child pornography. According to court documents, a relative of Duran went to the Modesto Police Department and reported finding child pornography on a phone that Duran had borrowed. Additional investigation revealed that Duran had received or distributed more than 600 images of minors being sexually abused, some of which depicted violence or were of sadistic conduct.This case was the product of an investigation by the FBI’s Modesto office in collaboration with the Ceres and Modesto Police Departments. It was prosecuted by Assistant U.S. Attorney David Gappa. Docket # 1:12-cr-384 AWI
Bakersfield Man Returns to Prison after Serving a Four-Year Sentence
Christopher Kent Bowersox, 41, of Bakersfield, was sentenced by Senior U.S. District Judge Anthony W. Ishii to serve three months in custody as a result of two violations of his supervised release conditions. Bowersox, a former Bakersfield Police detective, began serving a 120-month term of supervised release after he completed a four-year prison term, imposed after his conviction for possession of child pornography, on August 7, 2013. Terms of supervision included restrictions on accessing the Internet and pornography. Bowersox admitted that on December 11, 2013, he used a computer to access pornography on the Internet. Judge Ishii today re-imposed a term of supervision for 117 months during which Bowersox will be required to register as a sex offender, and his access to minors, computers, and the Internet will continue to be restricted.The case was originally investigated by the Federal Bureau of Investigation and the Bakersfield Police Department with assistance from the Kern County Sheriff’s Office. It was prosecuted by Assistant U.S. Attorney David Gappa. (1:10-cr-082 AWI).
Case Update: Central Valley Marijuana TraffickersRead the Press Release
FRESNO, Calif. — Marijuana cultivators from Inyo, Fresno, Kern and Stanislaus Counties entered guilty pleas today in three cases and sentenced in two for their involvement in separate large-scale marijuana cultivation operations, according to U.S. Attorney Benjamin B. Wagner.
Mexican Nationals Plead Guilty to Forest Marijuana Operation (1:13CR340 LJO)
Jose Aguilar Santoyo (“Aguilar”), 27, of Michoacàn, Mexico, and Jose Salvador Garcia Rodriguez (“Garcia”), 23, of Guanajuato, Mexico both entered guilty pleas to conspiring to manufacture, distribute and possess with intent to distribute marijuana grown on public land. According to court documents, U.S. Forest Service agents seized 3,405 marijuana plants, 350 pounds of processed marijuana, digital scales, highly toxic and illegal rodenticides, including uFuran or Carbofuran, and 2,200 pounds of trash from a marijuana cultivation operation in the Hogback Creek area of the Inyo National Forest. Agents found Garcia at the grow site. Agents found Aguilar at a stash house associated with the grow site in Romoland in Riverside County. Marijuana shake and residue, shipping labels associated with the shipment of marijuana to Chicago, and a firearm were also found at the stash house. In pleading guilty, Aguilar and Garcia both agreed to pay $6,572.14 to the U.S. Forest Service for Hazmat removal and dumping fees associated with eradication of the grow site.Aguilar and Garcia are scheduled for sentencing on June 16, 2014. Aguilar faces a mandatory minimum prison term of five years and a maximum term of forty years, along with a fine of $5 million. Garcia faces a maximum prison term of twenty years and a fine of $1 million. Both are also subject to deportation to Mexico, upon completion of any prison term imposed. Their actual 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.
This case was investigated by the U.S. Forest Service, U.S. Drug Enforcement Administration (DEA), Homeland Security Investigations of Immigration and Customs Enforcement (ICE), Inyo County Sheriff’s Office, and Riverside County Sheriff’s Office. The Environmental Protection Agency (EPA) also assisted in the investigation.
Fresno Man Pleads Guilty in River Marijuana Operation (1:12CR342 AWI)
Sam Kounhavong, 51, of Fresno, Calif., also entered a guilty plea to conspiring to manufacture, distribute and possess with intent to distribute marijuana grown beside the San Joaquin River in the vicinity of Newman in Stanislaus County. In pleading guilty, Kouhnavong acknowledged that he and four other men cultivated 907 marijuana plants under the guise of compliance with California medical marijuana law. Although federal law does not recognize a medical purpose for marijuana, Kounhavong admitted that the marijuana was grown for profit without any medical purpose. During the execution of a search warrant at the grow site, agents also found a firearm and saw that water from the San Joaquin River had been diverted to irrigate the marijuana plants.
Kounhavong faces a maximum prison term of 20 years and a fine of up to $1 million. His 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. He is scheduled for sentencing on June 2, 2014.The case was investigated by federal agents from the DEA and Stanislaus Drug Enforcement Agency, a multi-agency drug task force in Modesto.
Fresno Man Sentenced for Ag Grow (1:12CR2341 LJO)
Phonepaseuth Phaphilom, 27, of Fresno, was sentenced to 46 months in prison followed by 36 months supervised release for conspiring to cultivate, distribute and possess with intent to distribute marijuana grown on an agricultural parcel on Marks Avenue in rural southwest Fresno. During the execution of a federal search warrant there, narcotics agents found Phaphilom with four other men from out of the area, 2,932 marijuana plants, and a firearm. The men claimed the plants were being grown for medical reasons. While federal law does not recognize the medical use of marijuana, several of the men acknowledged that the operation was for profit, in violation of California law. Phaphilom, who was detained pretrial based in part on a criminal history that included weapons and narcotics violations, said he was going to sell the marijuana “up North” for $800 a pound. Based on a conservative one pound per plant yield, the cultivation operation was valued at over $2.3 million. In addition, court records indicate that some of the marijuana was destined for Las Vegas. The State of Nevada does not recognize the medical use of marijuana.
The case against Phaphilom was investigated by the DEA and Fresno County Sheriff’s Office.
Assistant United States Attorney Karen A. Escobar prosecuted the above cases.
Bakersfield Loan Officer Sentenced in Crisp & Cole Mortgage Fraud SchemeRead the Press Release
FRESNO, Calif. — United States District Judge Lawrence J. O’Neill sentenced Jayson Peter Costa, 41, of Bakersfield, to 78 months imprisonment today for his role in an extensive mortgage fraud scheme that ran from January 2004 to September 2007, United States Attorney Benjamin B. Wagner announced. Costa was ordered to self-surrender by May 5, 2014.
According to court documents, David Marshall Crisp and Carlyle (“Carl”) Lee Cole owned and operated Crisp & Cole Real Estate (CCRE), a real estate brokerage, and Tower Lending, an affiliated mortgage brokerage. Between January 2004 and September 2007, these defendants and others at CCRE and Tower Lending carried out a conspiracy to defraud mortgage companies and federally-insured financial institutions. 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.
According to his plea agreement, Costa worked as a loan officer at Tower Lending but was not properly licensed and therefore could not legally process any of the loan applications as he did. Co-defendants Crisp and Cole, and others at CCRE and Tower Lending, knew that Costa was not properly licensed but nonetheless allowed Costa to continue acting as a loan officer. Costa admitted that while at Tower Lending he submitted numerous false and fraudulent loan applications to lenders for co-conspirators and other straw buyers, and also purchased properties as a straw buyer, all in furtherance of the conspiracy. When the California Department of Real Estate investigated CCRE and Tower Lending during the period of the conspiracy, Costa, co-defendants Crisp and Cole, and others concealed that Costa was working as an unlicensed loan officer for Tower Lending. The defendants falsified the loan paperwork on loans prepared and handled by Costa to make it appear that co-defendant Cole had been the loan officer on those loans. Costa admitted in his plea agreement that he caused lenders losses of at least $7,580,019 due to his role in the conspiracy.
On February 24, 2014, Carl Cole was sentenced to 17 years and seven months in prison. Caleb Lee Cole was sentenced to five months in prison. Sentencing dates for the remaining defendants are as follows: David Marshall Crisp and Jennifer Anne Crisp on March 31, 2014; Michael Angelo Munoz on April 7, 2014; Jeriel Salinas on May 12, 2014; and Sneha Mohammadi on June 9, 2014. Robinson Nguyen has completed his 27-month sentence. A trial for another co-defendant is set for April 8, 2014 and the charges are only allegations as to that defendant; she is presumed innocent until and unless proven guilty beyond a reasonable doubt.
In 2009 and 2010, five separate cases were brought against five defendants who pleaded guilty to charges relating to this scheme. Scheduled to be sentenced on May 27, 2104 are: Kevin Patrick Sluga (1:10-cr-001 – four counts of wire fraud for false verification of employment letters), and Leslie Sluga (1:10-cr-002 – two counts of wire fraud for acting as a straw buyer) Scheduled to be sentenced on June 2, 2014 are: Jerald Allen Teixeira (1:09-cr-375 – one count of wire fraud for making false statements on loan documents), Megan Balod (1:10-cr-016 – four counts of wire fraud for acting as a straw buyer), and Christopher Lance Stovall (1:10-cr-271 – four counts of mail fraud for making false statements on loan documents).
The maximum statutory penalty for mail fraud is 30 years in prison and a $1 million fine. The maximum statutory penalty for wire fraud is 20 years in prison and a $250,000 fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Kirk Sherriff, Henry Carbajal III, and Christopher Baker are prosecuting the case.
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.Former Fresno Pastor Arraigned on Fraud IndictmentRead the Press Release
FRESNO, Calif. — Alvin Dickson, 52, of Oakland, was arraigned in Fresno today on a federal indictment charging him with social security fraud and theft of government property, United States Attorney Benjamin B. Wagner announced. Dickson was arrested at his home on March 5, 2014. He made his first court appearance before U.S. Magistrate Judge Donna M. Ryu in Oakland.
According to the indictment returned by the grand jury on January 30, 2014, between July 2005 and April 2013, Dickson received Social Security Disability Insurance Benefits totaling approximately $113,000. At the same time he was receiving the benefits, and unknown to the Social Security Administration, he was working as the Pastor of Mt. Pleasant Missionary Baptist Church in Fresno.
This case is the product of an investigation by the Social Security Administration, Office of Inspector General. Assistant United States Attorney Mark J. McKeon is prosecuting the case.
The next court appearance for Dickson is a status conference before Magistrate judge Sheila K Oberto on May 19, 2014 at 1:00 p.m.
If convicted, Dickson faces a maximum statutory penalty of 10 years in prison for theft of government property, five years in prison for Social Security fraud, and a $250,000 fine for each charge. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Eight Arrested This Week in Long-Term Investigation into Drug and Gun TraffickingRead the Press Release
SACRAMENTO, Calif. — Eight defendants were arrested this week in a wide-ranging drug and gun trafficking investigation, United States Attorney Benjamin B. Wagner announced. A federal grand jury returned the indictments on March 13, 2014, charging the defendants with various drug and gun trafficking offenses. The indictments were unsealed following the arrests of each defendant.
These cases are the product of a long-term investigation by the FBI Safe Streets Task Force and ATF, along with officers from the Sacramento Police Department; California Highway Patrol; and California Department of Corrections and Rehabilitation, Department of Parole and Special Service Unit; and the California Gang Intelligence Initiative.
“We are thankful for continued, active collaboration with our state and local law enforcement task force partners who share our commitment dismantling criminal networks that pose a serious threat to the communities we serve,” said Special Agent in Charge Monica M. Miller of the Sacramento division of the Federal Bureau of Investigation. “Disruption of illegal drug and weapons trafficking is essential to ensure the safety and vitality of our neighborhoods.”
Andre Nicholas Amaya, 33, of Sacramento, was charged with three counts of distribution of methamphetamine in Sacramento County. He was arraigned on March 20, 2014, the same day as his arrest. His next court date is set for April 17, 2014.
(docket # 2:14-cr-72 MCE)Joseph Darosa, 21, of Elk Grove, is charged with five counts of distribution of methamphetamine in Sacramento County. He was arraigned after his arrest today. His next court date is May 6, 2014.
(docket # 2:14-cr-71 JAM)Ruben Luis Vega, 27, of North Highlands, is charged with two counts of distributing methamphetamine in Sacramento County. He was arrested on March 19, 2014, and arraigned the next day. His next court date is April 16, 2014.
(docket # 2:14-cr-68 KJM)Antonio Reyna, 33, of Sacramento is charged with being a felon in possession of a Ruger .223-caliber rifle. Reyna was arrested on March 19, 2014 and arraigned the next day. His next court date is April 15, 2014.
(docket # 2:14-cr-0LKK)John Greer, 31, of Carmichael, and Julius White, 32, of Sacramento, are charged with unlawfully transferring a Winchester sawed-off shotgun. They were arraigned and their next court date is April 18, 2014.
(docket # 2:14-cr-073 GEB)Donald Brown, 23, of Sacramento, is charged with two counts of being a felon in possession of a firearm: .22-caliber semi-automatic pistol and a Norinco rifle.
(docket # 2:14-cr-074 MCE)Benjamin Martinez, 30, of Sacramento, was arrested today on a criminal complaint, charging him with distribution of methamphetamine. He made an initial appearance before Magistrate Judge Dale A. Drozd. His next court date is April 3, 2014.
(docket # 2:14-mj-063 DAD)Five of the indictments were part of an Organized Crime Drug Enforcement Task Force. 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.
All defendants are in custody. At arraignment, the defendants entered pleas of not guilty. If convicted, the defendants face sentences from five years to life 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. When prosecuted in federal court, drug traffickers typically receive much harsher sentences. In addition to the longer sentences imposed there is no early release on parole in the federal system.
The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
California National Guardsmen Sentenced to Prison for Stolen Machine GunsRead the Press Release
SACRAMENTO, Calif. — Stephen Gooden, 40, of Stockton, was sentenced on Thursday by United States District Judge Morrison C. England Jr. to one year in prison and a $1,000 fine for possessing a machine gun, United States Attorney Benjamin B. Wagner announced.
According to court documents, Gooden and Luis Castro, 28, of Sacramento, were members of the California National Guard and stole two M-4 machine guns from the National Guard’s armory in Lodi. Gooden then sold the machine guns to non-authorized persons in Stockton. ATF agents recovered the machine guns in an undercover operation.
“Today's sentencing reflects the true partnership among federal law enforcement agencies,” said Frank Robey, director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit (MPFU). “No criminal stands a chance against our MPFU agents working shoulder to shoulder with the ATF and other agencies. We hope that the sentence imposed today will deter others from engaging in similar illegal activity.”
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the United States Army Criminal Investigation Command. Assistant United States Attorneys Paul Hemesath and Heiko Coppola prosecuted the case.
On August 22, 2013, Castro was sentenced for his involvement in the theft and sale of the machine guns to 20 months in prison.
Two Indicted in 20,000-Victim Credit Card FraudRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 23-count indictment today against Mihran Melkonyan, 33, of Sacramento, and Androuslan Akhmerov, 39, of Los Angeles, for wire fraud and mail fraud in a scheme to defraud American Express account holders, United States Attorney Benjamin B. Wagner announced.
According to court documents, Melkonyan and Akhmerov were involved in a scheme to defraud more than 20,000 credit card holders by making false charges on their accounts. To do this, Melkonyan and Akhmerov created fictitious businesses with legitimate sounding names and then charged the victims’ accounts small amounts in the range of $15-30. By using many small charges the defendants made it less likely that the credit card holders or the credit card companies would discover the fraud.
This case is the product of an investigation by the Federal Bureau of Investigation and the United States Secret Service. Assistant United States Attorney Michael D. Anderson is prosecuting the case.
Akhmerov was arrested on March 5, 2014, and is currently released on bail. Melkonyan remains at large.
If convicted, Melkonyan and Akhmerov face a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Oakdale Youth Pastor, Registered Sex Offender from Escalon, and Bishop Man Charged in Separate Child Exploitation CasesRead the Press Release
FRESNO, Calif. — A grand jury in Fresno returned three separate indictments today alleging offenses involving the sexual exploitation of minors, United States Attorney Benjamin B. Wagner announced.
In the first indictment, Tyler Bliss, 26, of Oakdale, was charged with one count of receiving and distributing child pornography from October 2013 through February 2014. According to a previously filed criminal complaint, Google reported to the National Center for Missing & Exploited Children (NCMEC) that on December 3, 2013, an image of suspected child pornography had been uploaded to a Google account. NCMEC referred the matter to law enforcement, and a detective with the Ceres Police Department discovered that the same Google account had been connected with the transmission of hundreds of other images of suspected child pornography. Additional investigation revealed that the account had been accessed from a residence in Oakdale as well as from a church in Oakdale. Computers and a cellphone were obtained through search warrants for both locations, and investigators found images related to the sexual exploitation of minors on these items. Bliss had been serving as Supervisor of Student Ministries at the church.
Bliss has been in custody since his arrest by FBI agents Wednesday. He is scheduled for arraignment today at 1:30 p.m. before U.S. Magistrate Judge Barbara A. McAuliffe. If convicted, he faces a maximum sentence of 20 years in prison, a $250,000 fine, and a lifetime of supervised release. (Docket # 1:14-CR-052 LJO)
This case is the result of an investigation by the Ceres Police Department and the Modesto FBI Office with initial assistance from the Sacramento County Sheriff’s Office. Anyone with information relevant to the investigation is encouraged to contact the Modesto office of the FBI at 209-543-7846.
In the second indictment, Allen Kendrick, 47, of Escalon, was charged with one count of receiving and distributing child pornography from June 2013 through December 2013. According to a previously filed criminal complaint, Google reported to NCMEC that on December 10, 2013, six images of suspected child pornography were associated with a Google account. NCMEC referred the matter to law enforcement, and a detective with the Ceres Police Department discovered that the Google account had been accessed from residences in Modesto and Escalon. Additional investigation revealed that Kendrick was a registered sex offender on GPS location monitoring, and the GPS records confirmed that Kendrick was at the residences in Modesto and Escalon when the child pornography had been accessed. This case is the result of an investigation by the Ceres Police Department and the Modesto FBI Office with assistance from the California Department of Corrections and Rehabilitation Division of Adult Parole Operations.
Kendrick has been ordered detained as a danger to the community and a flight risk. He will be arraigned on March 25, 2014, at 1:30 p.m. by Magistrate Judge Barbara A. McAuliffe. If convicted, he faces a maximum potential prison sentence of 40 years, a fine of up to $250,000, and a lifetime term of supervised release. (Docket # 1:14-CR-055-LJO)
In the third indictment, Lorenzo Hernandez Martinez, 37, of Bishop, was charged with one count of attempted transfer of obscene material to a minor. According to a criminal complaint, Martinez communicated through Facebook chats from mid-October 2013 through February 2014 with someone whom he believed to a 14-year-old girl in Oregon. Martinez quickly turned the communications in a sexual direction, and he repeatedly transmitted lewd 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 cellphone that contained communications with the detective in Oregon and sexually explicit.
Martinez has been ordered detained as a danger to the community and a flight risk. If convicted, he faces a maximum prison term of 10 years, a potential fine of $250,000, and a three-year term of supervised release. He will be arraigned on March 24, 2014, at 1:30 p.m. by U.S. Magistrate Judge Barbara A. McAuliffe. (Docket # 1:14-CR-053 LJO)
Assistant United States Attorney David Gappa is prosecuting all three cases. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt. If the defendants are convicted, their 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.
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.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Former Elk Grove Resident Pleads Guilty to Investment Fraud Scheme and False Statements in BankruptcyRead the Press Release
SACRAMENTO, Calif. — Vincent Thakur Singh, 45, formerly of Elk Grove, pleaded guilty today to wire fraud and false statements in bankruptcy, United States Attorney Benjamin B. Wagner announced.
According to court documents, Singh carried out an investment fraud through an entity known as the Perfect Financial Group. He targeted 190 members of the ethnic Indian Fijian community for an investment fraud that grossed approximately $20 million. Singh told investors that he was using their money for hard money lending. In fact, Singh used $12 million of investors’ money for gambling, made $2 million in currency withdrawals, spent $880,000 on a film project, and spent more than $1 million on other business ventures. Singh also used millions of dollars of investor money to pay other victims and give Perfect Financial the false appearance of success.
According to the plea agreement, on August 19, 2010, Singh declared bankruptcy and failed to disclose 19 of the bank accounts that he had used in the investment fraud.
This case is the product of an investigation by the FBI with assistance from the office of the U.S. Trustee. Assistant United States Attorney Matthew D. Segal is prosecuting the case.
Singh is scheduled to be sentenced by Judge Morrison C. England Jr. on June 12, 2014. Singh faces a maximum statutory penalty of 20 years in prison for wire fraud and five years in prison for false statements in bankruptcy. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was done in connection with the President’s Financial Fraud Enforcement Task Force. 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.
Bakersfield Man Indicted for Counterfeiting U.S. CurrencyRead the Press Release
FRESNO, Calif. — Alfonso Castellon, 40, of Bakersfield, was indicted today on charges of counterfeiting U.S. currency and possessing images for counterfeiting purposes, United States Attorney Benjamin B. Wagner announced.
According to the court documents, from January 2011 to March 2014, Castellon counterfeited Federal Reserve Notes in $100 and other denominations. In March 2014, a search of his residence revealed sample images of $100 bills and computer equipment, printers, and ink associated with counterfeiting, along with a flash drive containing images of $100 bills.
This case is the product of an investigation by the United States Secret Service, the Kern County Sheriff’s Office, and the Bakersfield Police Department. Assistant United States Attorney Michael G. Tierney is prosecuting the case.
If Castellon is convicted, he faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory sentencing 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.