Eastern District of California
Press releases recorded for this federal judicial district.
Hard Money Lender Sentenced for Defrauding Investors in Loans Made to Failed Fresno Company Bitwise IndustriesRead the Press Release
FRESNO, Calif. — Andrew Adler, 31, of Greenwich, Connecticut, was sentenced today by U.S. District Judge Jennifer L. Thurston to three years and five months in prison for defrauding investors in loans made to the failed Fresno-based startup Bitwise Industries, Acting U.S. Attorney Michele Beckwith announced today. Adler was ordered to pay $9.3 million in restitution jointly and severally with the Bitwise defendants and to forfeit another $1 million.
“The collapse of Bitwise Industries exposed Andrew Adler’s lies to investors in securing a multi-million-dollar loan, which he used to secretly line his pockets.” said FBI Sacramento Field Office Special Agent in Charge Sid Patel. “This investigation clearly demonstrates the FBI’s tenacity and is a testament of the great work performed by FBI agents and personnel in our Fresno Resident Agency.”
According to court records, from December 2022 through May 2023, Adler and his business partner, David Hardcastle, 61, of Fresno, gave Bitwise approximately $20 million in hard money loans. They did not fund the loans themselves or otherwise put their own money at risk. Instead, they syndicated the loans to other investors. In doing so, they altered the original loan documents to make it appear that Bitwise was paying a significantly lower interest rate for the loans than was true. They also forged the signature of one of Bitwise’s Co-CEOs, Jake Soberal, on the altered documents. This made the loans appear less risky and more appealing to the investors. Several of the investors later told the FBI that they would not have invested in the loans had they known the actual interest rates that Bitwise was paying because that would have been a red flag that something was wrong with Bitwise.
One of the loans included a secure interest reserve of approximately $714,000 that the investors did not know about and that Adler and Hardcastle used to make an unrelated, personal investment in another company that they controlled. Generally speaking, secure interest reserves are disclosed to loan investors ahead of time and are supposed to help protect the investors in the event that the borrower does not make its payments on schedule. Secure interest reserves are not supposed to be used for the personal benefit of the loan originators like Adler and Hardcastle.
Adler and Hardcastle also made tens of thousands of dollars in fees for originating the loans. They stood to make millions more in secret profits from the higher, undisclosed interest rates had the loans been fully repaid. Unfortunately, however, Bitwise turned out to be a Ponzi-like fraud scheme and collapsed before that could happen. As a result, the participants lost nearly all their money. Adler told the court in his filings that he was motived to commit the fraud by pure greed and nothing else.
Hardcastle has been indicted for his role in the fraud and is currently pending trial. He is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Bitwise’s CEOs, Jake Soberal and Irma Olguin Jr., were previously sentenced to 11 years and nine years in prison, respectively, for the carrying out the Bitwise Ponzi scheme that caused a loss of over $115 million in that case.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Joseph Barton and Cody Chapple are prosecuting the case.
Hard Money Lender Sentenced for Defrauding Investors in Loans Made to Failed Fresno Company Bitwise IndustriesRead the Press Release
Andrew Adler, 31, of Greenwich, Connecticut, was sentenced today by U.S. District Judge Jennifer L. Thurston to three years and five months in prison for defrauding investors in loans made to the failed Fresno-based startup Bitwise Industries, Acting U.S. Attorney Michele Beckwith announced today. Adler was ordered to pay $9.3 million in restitution jointly and severally with the Bitwise defendants and to forfeit another $1 million.
“The collapse of Bitwise Industries exposed Andrew Adler’s lies to investors in securing a multi-million-dollar loan, which he used to secretly line his pockets.” said FBI Sacramento Field Office Special Agent in Charge Sid Patel. “This investigation clearly demonstrates the FBI’s tenacity and is a testament of the great work performed by FBI agents and personnel in our Fresno Resident Agency.”
According to court records, from December 2022 through May 2023, Adler and his business partner, David Hardcastle, 61, of Fresno, gave Bitwise approximately $20 million in hard money loans. They did not fund the loans themselves or otherwise put their own money at risk. Instead, they syndicated the loans to other investors. In doing so, they altered the original loan documents to make it appear that Bitwise was paying a significantly lower interest rate for the loans than was true. They also forged the signature of one of Bitwise’s Co-CEOs, Jake Soberal, on the altered documents. This made the loans appear less risky and more appealing to the investors. Several of the investors later told the FBI that they would not have invested in the loans had they known the actual interest rates that Bitwise was paying because that would have been a red flag that something was wrong with Bitwise.
One of the loans included a secure interest reserve of approximately $714,000 that the investors did not know about and that Adler and Hardcastle used to make an unrelated, personal investment in another company that they controlled. Generally speaking, secure interest reserves are disclosed to loan investors ahead of time and are supposed to help protect the investors in the event that the borrower does not make its payments on schedule. Secure interest reserves are not supposed to be used for the personal benefit of the loan originators like Adler and Hardcastle.
Adler and Hardcastle also made tens of thousands of dollars in fees for originating the loans. They stood to make millions more in secret profits from the higher, undisclosed interest rates had the loans been fully repaid. Unfortunately, however, Bitwise turned out to be a Ponzi-like fraud scheme and collapsed before that could happen. As a result, the participants lost nearly all their money. Adler told the court in his filings that he was motived to commit the fraud by pure greed and nothing else.
Hardcastle has been indicted for his role in the fraud and is currently pending trial. He is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Bitwise’s CEOs, Jake Soberal and Irma Olguin Jr., were previously sentenced to 11 years and nine years in prison, respectively, for the carrying out the Bitwise Ponzi scheme that caused a loss of over $115 million in that case.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Joseph Barton and Cody Chapple are prosecuting the case.
Coalinga Gang Member Sentenced to 20 Years in Prison for Methamphetamine Distribution and Firearms TraffickingRead the Press Release
Juan Carlos Ruiz Jr., aka “Goer”, 26, of Coalinga, was sentenced to 20 years in prison for distributing methamphetamine and firearms trafficking, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, Ruiz distributed more than 4 kilograms of methamphetamine and sold 19 firearms over several occasions. Ruiz is also a felon and documented Bulldog gang member.
Ruiz joins several other co-defendants that have now been sentenced to prison.
- On March 31, 2025, Javier Alfonso Lopez Lopez was sentenced to four years in prison for conspiracy to manufacture methamphetamine.
- On Jan. 6, 2025, Sostenes Quintero Lopez was sentenced to over 10 years in prison for manufacturing and distributing methamphetamine.
- On June 24, 2024, Angel Sanchez was sentenced to 14 years in prison for distributing methamphetamine and firearms trafficking with Ruiz, who is his cousin.
- On Sept. 25, 2023, Alma Sanchez was sentenced to over 16 years in prison for distributing methamphetamine to Ruiz, who is her son.
This case was the product of an investigation by the Drug Enforcement Administration, Coalinga Police Department, Tulare County Sheriff’s Office, Tulare County High Intensity Drug Trafficking Area Unit (HIDTA), and the Fresno Police Department. Assistant U.S. Attorney Antonio J. Pataca prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Clovis CPA Sentenced to Prison for Stealing over $800,000 from a BankRead the Press Release
Kenneth Gould, 69, formerly of Clovis, was sentenced to one year in prison for stealing more than $800,000 from a bank, Acting U.S. Attorney Michele Beckwith announced today.
According to court records, Gould was a CPA and operated a payroll services company in Clovis. From October 2017 through March 2018, he initiated several fraudulent electronic payments from one of his clients’ accounts to his payroll company’s account at the bank. While the payments were pending, the bank credited significant portions of the funds to Gould’s account. Gould then quickly withdrew those funds in cashier’s checks. The bank later realized that there were insufficient funds to cover the payments, denied the payments, and attempted to recover its money. But it was too late. Approximately $830,000 of the credited funds was already gone.
Gould gave the stolen money to the client from whose account he initiated the fraudulent payments because he had loaned that individual money and was hopeful that the individual would one day pay him back. The client then gambled the money away.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Joseph Barton prosecuted the case.
Inmate Sentenced to 33 Months in Prison for Assault with a Deadly Weapon in U.S. Penitentiary AtwaterRead the Press Release
FRESNO, Calif. — U.S. District Judge Kirk E. Sherriff sentenced Delonte Williams, 37, of Washington, D.C., Tuesday to 33 months in prison today for assault with a deadly weapon in the U.S. Penitentiary at Atwater, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, on April 28, 2024, Williams chased another inmate around a cell block while holding a knife-like, jail-made weapon. Williams, along with another inmate, used his jail-made knife to stab the victim, which wounded him and required him to seek medical attention.
Williams’ co-defendant, Jarvell Kent, is scheduled for sentencing before Judge Sherriff on June 23, 2025.
This case was the product of an investigation by the Federal Bureau of Investigation and the Bureau of Prisons. Assistant U.S. Attorney Robert Veneman-Hughes prosecuted the case.
Fresno Man Pleads Guilty to Paycheck Protection Program Loan FraudRead the Press Release
FRESNO, Calif. — Gurjeet Bath, 37, of Fresno, pleaded guilty Tuesday to one count of theft of government property, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, Bath and other family members operated two trucking businesses: G.S. Bath Inc. and Complete Transportation Solutions (CTS), operating in Fresno County. In 2020 and 2021, Bath applied for and received three PPP loans totaling over $1 million. To obtain the loans, Bath knowingly falsified records to inflate his businesses’ employees and their wages. Bath then used approximately $600,000 of those funds to purchase two parcels of agricultural land in Fresno County.
This case is the product of an investigation by the Federal Bureau of Investigation, with assistance from the Small Business Administration (SBA) Office of Inspector General. Assistant U.S. Attorney Jeffrey A. Spivak is prosecuting the case.
Bath is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on Oct. 6, 2025. Bath 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.
Fresno Man Pleads Guilty to Multiple Child Exploitation OffensesRead the Press Release
A California man pleaded guilty today to sexual exploitation of children and distribution and receipt of child pornography.
According to court documents, Monico Erich Gastelo, 43, of Fresno, sexually exploited children using different methods. For example, in January 2019, Gastelo created a social media account where he claimed to be an 18-year-old boy. Gastelo then used the account to converse with at least one minor and request sexually explicit content from them.
“Today’s plea should serve as a reminder of the Justice Department’s commitment to securing justice for victims of online child sexual exploitation,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “I am grateful for the efforts of the investigators and prosecutors who continue to work tirelessly to investigate and prosecute those who harm children.”
“Not only did this defendant revictimize abused children depicted in the images, but attempted to victimize actual children within his orbit,” said Acting U.S. Attorney Michele Beckwith for the Eastern District of California. “The U.S. Attorney’s Office will continue to prioritize the prosecution of child sexual predators.”
“Today's guilty plea represents our agents’ and analysts’ continued focus on targeting predators who exploit children online,” said Special Agent in Charge Tatum King of U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI) San Francisco. “Through collaboration with the Fresno County Sheriff’s Office, Fresno Police Department and the Central Valley Internet Crimes Against Children Task Force, we will make every effort to identify, locate, and arrest these criminals to help prevent the harm that they cause to our children. We appreciate the prosecutorial work by the U.S. Attorney’s Office for the Eastern District of California and the Justice Department’s Child Exploitation and Obscenity Section (CEOS) in furtherance of this investigation.”
Between Jan. 1, 2020, and March 23, 2020, Gastelo communicated with other individuals who were sexually attracted to children on Wickr, Snapchat, and Telegram. He sent and received multiple images and videos of child sexual abuse material (CSAM) on these platforms. Forensic review of Gastelo’s phones showed that he had over 1,500 images and videos of suspected CSAM.
Gastelo’s conduct escalated in May of 2020. A minor victim reported to law enforcement that he had been sexually exploited online and that an individual, who was later identified to be Gastelo, had added him on Snapchat. Gastelo sent over a dozen images of his penis to the minor victim and insisted that the minor victim send back CSAM of himself.
Gastelo pleaded guilty to one count of sexual exploitation of children and one count of distribution and receipt of child pornography. He is scheduled to be sentenced on Sept. 8, 2025 and faces a mandatory minimum penalty of 15 years in prison up to 30 years in prison on the sexual exploitation count and a mandatory minimum penalty of five years in prison up to 20 years in prison on the distribution and receipt count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Fresno County Police Department and the Department of Homeland Security investigated the case.
Trial Attorney McKenzie Hightower of CEOS and Assistant U.S. Attorney David Gappa for the Eastern District of California are prosecuting 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 U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Fresno Man Indicted for Possessing Fentanyl Powder and FirearmsRead the Press Release
Henry Joseph Garcia, 49, of Fresno, was arraigned today on an indictment charging him with possession with intent to distribute fentanyl, as well as possessing a firearm in furtherance of a drug trafficking crime, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, on May 13, 2025, Garcia possessed more than 400 grams of a mixture or substance containing fentanyl with the intent to distribute it to another person. Garcia also possessed two loaded firearms, in furtherance of a drug trafficking crime.
This case is the product of an investigation by the Drug Enforcement Administration and the Clovis Police Department. Assistant U.S. Attorney Calvin Lee is prosecuting the case.
If convicted, Garcia faces a mandatory minimum of 15 years in prison, a maximum statutory penalty of life in prison, and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Fairfield Man Indicted for Failure to Pay over $2 Million in Employment TaxesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 41-count indictment against Warren Soto Delfin, 54, of Fairfield, charging him with failure to pay more than $2 million in trust fund taxes to the IRS, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, between January 2018 and December 2022, Delfin owned and operated five home health care businesses that accumulated more than $2 million in employment taxes. The employment tax liabilities stem from amounts Delfin withheld from his employee’s paychecks. Instead of paying the employee withholdings to the IRS as required under the law, Delfin retained them and made purchases of luxury items including a Lamborghini, jewelry, and real estate.
This case is the product of an investigation by the IRS Criminal Investigation and the Department of Health and Human Services – Office of Inspector General. Assistant U.S. Attorney Nchekube Onyima is prosecuting the case.
If convicted, Delfin faces a maximum statutory penalty of five years in prison and a $250,000 fine for each charged count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Judgment Entered Against Bakersfield and Van Nuys Men for Sexual Harassment Against Bakersfield TenantRead the Press Release
The United States has obtained a default judgment against Bakersfield residents Juvenal Salazar and Javier Salazar Sr. and Van Nuys resident Ricardo Covarrubias, a maintenance worker, manager, and owner, respectively, of rental properties in Bakersfield, in a case brought by the United States alleging sexual harassment and retaliation in violation of the Fair Housing Act, Acting U.S. Attorney Michele Beckwith announced.
The lawsuit alleged that from December 2018 through March 2019, Juvenal Salazar sexually harassed a female tenant by repeatedly asking her to engage in sexual acts with him, describing the sexual acts he wished to engage in with her, and persistently commenting on her appearance. According to the complaint, on two occasions, Juvenal Salazar touched the tenant’s body without her consent, and he surreptitiously took photographs of framed pictures of her and her daughter. The tenant reported the man’s conduct to Salazar Sr., who is both the property manager and Juvenal Salazar’s father. After the tenant reported the harassment and threatened to contact a lawyer or the police if it continued, the Salazars refused to fix a leaking gas line in her dwelling, causing her to go without heat for one month and consequently forcing her to move out. The complaint also alleged that Covarrubias, the property owner, was liable for the Salazars’ conduct because they were his agents when they engaged in sexual harassment and retaliation.
After the defendants failed to respond to the complaint or oppose the motion for default judgment, U.S. District Judge Jennifer L. Thurston entered judgment for the United States and ordered the Salazars and Covarrubias to pay the tenant $45,000 in damages, to attend a training on the requirements of the Fair Housing Act, and to adopt a written policy against sexual harassment. The order also prohibits Juvenal Salazar from working in property management or maintenance for a period of 10 years.
“For four months, this tenant refused the repeated sexual advances by the maintenance worker at her home, and when she reported the sexual harassment, she faced retaliation,” said Acting U.S. Attorney Beckwith. “The wrongful actions of the Salazars and Covarrubias caused her significant harm and distress. The U.S. Attorney’s Office will continue to use its available resources to investigate landlords who enable or engage in sexual harassment or retaliation in violation of the Fair Housing Act.”
If you believe you are a victim of sexual harassment by a landlord, or if you have suffered other forms of housing discrimination, call the Justice Department’s Housing Discrimination Tip Line at 1-800-896-7743, email the Justice Department at [email protected], or submit a report online. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
You may also make a report by contacting the U.S. Department of Housing and Urban Development (HUD) at 1-800-669-9777 or by filing a complaint online.
The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorneys’ Offices across the country. The initiative seeks to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers, and other people who have control over housing. Since launching the initiative in October 2017, the department has filed 47 lawsuits alleging sexual harassment in housing and recovered nearly $17 million for victims of such harassment.
This case was a joint effort between the U.S. Attorney’s Office for the Eastern District of California and the Civil Rights Division. Assistant U.S. Attorney Robert A. Fuentes handled this case for the U.S. Attorney’s Office.
Sierra Pacific Industries to Pay for Damages Caused by Forest Fire in El Dorado CountyRead the Press Release
Sierra Pacific Industries (SPI) has agreed to pay $204,284.42 to resolve the United States’ claim for damages resulting from a 2021 wildfire that burned about 29 acres, including National Forest System lands on the Eldorado National Forest, Acting U.S. Attorney Michele Beckwith announced today.
The wildfire, known as the “Cold Fire,” ignited on Jan. 19, 2021, on SPI land in El Dorado County. U.S. Forest Service fire investigators determined that the fire originated from one of SPI’s timber slash piles that escaped containment during a wind event.
“Our office will continue to hold individuals and corporations responsible for damages caused by wildfires,” said Acting U.S. Attorney Beckwith. “Every fire impacting federal lands, no matter the size, is a priority.”
“These settlements are essential in restoring our landscapes after wildfires,” said U.S. Forest Service Pacific Southwest Acting Regional Forester Jason Kuiken.
The investigation was conducted with the U.S. Forest Service. Assistant U.S. Attorney Tara Amin handled the case for the U.S. Attorney’s Office.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Sacramento Man Indicted Twice in Four Months for Firearms and Controlled Substance OffensesRead the Press Release
A federal grand jury returned a three-count indictment today against Gabriel Erasmo Cabrera, 22, of Sacramento, charging him with being a felon in possession of a firearm and ammunition and possessing a controlled substance with intent to distribute, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, Cabrera was originally indicted on Feb. 6, 2025, for two counts of being a felon in possession of a firearm. The second indictment now charges that on March 28, 2025, Cabrera was in possession of fentanyl, a semiautomatic Sig Sauer handgun, and .45‑caliber ammunition. Cabrera is prohibited from possessing firearms or ammunition due to multiple felony convictions for sale of a controlled substance, infliction of corporal injury on a spouse, and willfully discharging a firearm with gross negligence.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Douglas Harman and Justin Lee are prosecuting the case.
If convicted of being a felon in possession of a firearm or ammunition, Cabrera faces a maximum statutory penalty of 15 years in prison and a $$250,000 fine for each count. If convicted of possession with intent to distribute fentanyl, he faces a maximum sentence of 20 years in prison and a fine of up to $1 million. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Placer County Man Sentenced for Child ExploitationRead the Press Release
Paul Hughes, 42, of Colfax, was sentenced today to 24 years and four months in prison for sexual exploitation of a child, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, between September 2018 and June 2019, on three separate occasions Hughes created visual depictions of minors engaged in sexually explicit conduct. Hughes used a cellphone to surreptitiously record at least three videos containing child sexual abuse material and saved them on an external hard drive. In addition to these videos, agents recovered more than 3,000 images and videos of child sexual abuse material on Hughes’s external hard drive and Google account.
Further, agents located on Hughes’ devices hundreds of videos and photographs that were taken by Hughes of females between the ages of five to 55 in various public venues in Colfax. In each image, Hughes was attempting to obtain images of the female’s private parts by angling the camera in an upwards direction towards her groin.
“This defendant preyed on the most innocent and vulnerable members of our society—children,” said Acting U.S. Attorney Beckwith. “Keeping children safe from sexual exploitation is a top priority for the U.S. Attorney’s Office. We will continue to use every tool at our disposal to investigate the perpetrators of these heinous crimes and bring them to justice.”
“Paul Hughes exploited children, forever damaging the memories of their childhood,” said FBI Sacramento Special Agent in Charge Sid Patel. “The FBI has no tolerance for any adult who preys upon the innocence of children and anyone who exploits a child faces severe consequences for their actions.”
This case was the product of an investigation by the Federal Bureau of Investigation with assistance by the Placer County Sheriff’s Office. Assistant U.S. Attorney Denise N. Yasinow is prosecuting 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.
Former United States Forest Service Special Agent Pleads Guilty to Theft of Government PropertyRead the Press Release
Edward Williams, 49, of Auburn, a former Special Agent with the U.S. Forest Service (USFS), pleaded guilty today to theft of government property, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, Williams was a USFS Special Agent in the Grass Valley field office. On Oct. 25, 2021, Williams accessed the USFS Truckee Ranger District office and stole at least 21 pieces of equipment. These items were DRMO, which stands for Defense Reutilization Marketing Office, and refers to retired military-grade equipment from the U.S. Department of Defense. The DRMO equipment that Williams took belonged to the USFS and was not meant for Williams’ personal use, to be given to others, or to be sold for profit.
On May 19, 2022, law enforcement interviewed Williams. He confessed to the Oct. 25, 2021, theft. Later that day, Williams’ home was searched pursuant to a federal warrant and agents seized dozens of pieces of equipment that originated from the USFS, both from the October theft as well as at other times. Law enforcement later recovered additional pieces of night vision equipment that Williams had stolen from the USFS and had given to two of his friends. As part of his plea agreement, Williams agreed to return these items back to the USFS. The total value of these items is approximately $206,371.
This case is the product of an investigation by the U.S. Department of Agriculture Office of Inspector General and USFS Office of Professional Responsibility, with assistance by USFS and Department of Homeland Security Office of Inspector General. Assistant U.S. Attorney Denise N. Yasinow is prosecuting the case.
Williams is scheduled to be sentenced on Sept. 18, 2025, by U.S. District Judge Daniel J. Calabretta. Williams faces a maximum statutory penalty of 10 years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Three White Supremacists Sentenced in Prison Racketeering Conspiracy, Two to Serve Life in Prison for MurderRead the Press Release
FRESNO, Calif. — On May 19, 2025, a federal judge sentenced three members of the Aryan Brotherhood prison gang who were convicted at trial of a racketeering (RICO) conspiracy that included multiple murders, drug trafficking, fraud, and robbery.
Francis Clement, 58, was found guilty by a jury in February 2025 of RICO conspiracy and five separate counts of murder in aid of racketeering for the murders of Allan Roshanski, Ruslan Magomedgadzhiev, Michael Brizendine, James Yagle, and Ronnie Ennis. Each of these murders was committed while Clement was in state prison. Clement was sentenced to life in prison. There is no parole in the federal system.
The jury also found Kenneth Johnson, 63, guilty of RICO conspiracy and two counts of murder in aid of racketeering for the murders of Roshanski and Magomedgadzhiev. Johnson was also sentenced to life in prison.
A third defendant, John Stinson, 70, was found guilty of one count of RICO conspiracy. Stinson, who was already serving a lengthy prison sentence in the California state prison system, was sentenced to 20 years in prison in federal custody.
According to court documents and evidence presented at trial, between 2016 and 2023, Aryan Brotherhood members and associates engaged in racketeering activity, including murder, conspiracy to murder, fraud, robbery, and drug trafficking crimes. Johnson and Clement, who both held leadership roles in the gang, directed crimes committed by Aryan Brotherhood members both inside and outside of prison using cellphones that had been smuggled into prison. Because of his rank in the gang, Clement received a cut from the illegal drug sales and fraud schemes the Aryan Brotherhood committed. According to trial testimony, the Aryan Brotherhood regularly smuggled drugs, including methamphetamine, into prisons throughout the California prison system, which defendants and other gang members then sold to inmates.
In October 2020, Johnson and Clement together ordered the murder of Roshanski, during the execution of which Magomedgadzhiev was also killed. Johnson and Clement also ordered the murder of Brandon Lowery, who was subsequently killed. It was further proven at trial that in February 2022, Clement ordered the murder of Michael Brizendine. The following month, in March 2022, Clement ordered the murders of Ronald Ennis and James Yagle. For each murder, the killings were ordered because defendants believed the victims either violated gang rules or owed the gang money.
According to court documents and evidence presented at trial, Stinson was a high-ranking leader of the Aryan Brotherhood and had substantial authority over the enterprise, including sponsoring multiple individuals for membership, resolving disputes among members, and approving the murder of current and former members. During the investigation, Stinson used a contraband cellphone within his prison cell to conduct business on behalf of the Aryan Brotherhood. The jury heard some of these communications from Stinson through court-authorized wiretapped conversations. Evidence was presented that Stinson also engaged in drug trafficking, and that, given his position within the gang, he received a cut of illegal drug sales that took place in prison and out on the street.
“The convicted defendants led a notorious prison gang that committed ruthless murders, widespread methamphetamine trafficking, and perpetuated a culture of mayhem, fear, and disorder within the prison system that bled into the outside world,” said Matthew Galeotti, Head of the Justice Department’s Criminal Division. “Organized crime within the prison system, enabled by the use of contraband cellphones, endangers American neighborhoods by flooding streets with dangerous drugs. The Criminal Division will continue to pursue crime syndicates, like the Aryan Brotherhood and their facilitators, to ensure they go to prison and the harm they inflict on society ends once incarcerated.”
“Today’s sentences are yet another blow to the leadership of a violent criminal enterprise run from inside California prisons and spanning multiple counties and states,” said Acting U.S. Attorney Michele Beckwith for the Eastern District of California. “The Aryan Brotherhood has maintained its deadly influence over members, associates and others both inside and outside prison. We are committed to doing everything we can to stop these violent inmates from orchestrating their criminal activities from inside prison walls.”
“These sentences send a clear message: the walls of a prison do not shield violent gang leaders from justice,” said Acting Director Daniel Driscoll of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “The Aryan Brotherhood’s leadership operated a brutal criminal enterprise from behind bars — ordering murders, trafficking drugs, and fueling violence in our communities. ATF remains committed to working with our law enforcement partners to dismantle violent gangs wherever they operate and hold their leaders accountable, no matter where they try to hide.”
The indictment in this case charged 11 defendants with RICO conspiracy and other crimes. There are five defendants awaiting trial and the three defendants have pleaded guilty.
This case was the product of an extensive investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with assistance from the Office of Correctional Safety (CDCR), the U.S. Marshals Service, the Los Angeles County Sheriff’s Department, the Pomona Police Department, the Torrance Police Department, the San Diego Police Department, the San Diego County Sheriff’s Department, the Los Angeles County District Attorney’s Office, and the Kern County District Attorney’s Office.
Assistant U.S. Attorneys Stephanie Stokman and James Conolly of the Eastern District of California and Trial Attorney Jared Engelking of the Justice Department’s Violent Crime and Racketeering Section are prosecuting the case.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi‑agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.
Stockton Man Sentenced on Firearm ChargeRead the Press Release
SACRAMENTO, Calif. — Ricardo Sanchez, 32, of Stockton, was sentenced today by U.S. District Judge William B. Shubb to four years and three months in prison for being a felon in possession of a firearm, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, on Aug. 20, 2023, law enforcement officers contacted Sanchez and found him to be in possession of a Springfield Armory Hellcat 9 mm semi-automatic pistol. Sanchez is prohibited from possessing a firearm due to multiple prior felony convictions, including conspiracy to commit a crime and inflicting injury on a spouse/cohabitant or fellow parent.
This case was the product of an investigation by the Sacramento Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Whitnee Goins prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Guatemalan Sentenced for Heroin and Methamphetamine DistributionRead the Press Release
FRESNO, Calif. — Donis Ariel Maldonado, 29, aka Donis Maldonado Reyes, aka “Danny,” a Guatemalan national residing in El Monte, was sentenced today to four years and three months in prison for conspiring to distribute and possess with intent to distribute heroin and methamphetamine, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, Maldonado conspired with others to distribute 22 pounds of black tar heroin and 88 pounds of methamphetamine sourced from Mexico. On June 23, 2019, Maldonado retrieved the drugs from San Diego and transported them to El Monte. The next day, Maldonado delivered the drugs to an informant, who was acting at the direction of law enforcement, at a convenience store in El Monte. The drugs were valued at $300,000.
This case was the product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Fresno County Sheriff’s Office, the High Impact Investigation Team (HIIT), a High Intensity Drug Trafficking Area Initiative (HIDTA), which consists of personnel from the California Department of Justice, Fresno Police Department, Fresno County Sheriff’s Office, Fresno County District Attorney’s Office, California Highway Patrol, Madera County Sheriff’s Office, Tulare County Sheriff’s Office, Kings County Sheriff’s Office, and the California Department of Corrections and Rehabilitation. Assistant United States Attorney Karen Escobar prosecuted the case.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.
Former Tulare County Medical Doctor Pleads Guilty to Distributing Misbranded Drugs Using False Claims about COVID-19Read the Press Release
Stephen D. Meis, M.D., 73, formerly of Visalia, pleaded guilty today to one count of introduction of misbranded drugs into interstate commerce, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, Meis was the Medical Director of Golden Sunrise Pharmaceutical Inc. and Golden Sunrise Nutraceutical Inc. that manufactured, marketed, and sold products claiming to effectively treat a variety of medical conditions.
Beginning on March 30, 2020, Meis and Golden Sunrise’s Chief Executive Officer Huu Tieu, 62, of Porterville, began selling a set of herbal mixtures they called the “Emergency D-Virus Plan of Care” as a COVID-19 treatment. The treatment consisted of a box containing various vials of Golden Sunrise drug products, including one called “Imunstem,” together with an “Emergency D-Virus Plan of Care” information sheet. Meis and Tieu mailed the products to various practitioners, public officials, and other individuals both inside and outside of California.
The labeling for the drugs, including the information sheet that accompanied the drugs, was false and misleading and stated that ImunStem and other Golden Sunrise products were “uniquely qualified to treat and modify the course of the virus epidemic in China and other countries.” Golden Sunrise falsely claimed the products had been the first dietary supplement in the United States to be approved as a prescription medicine by the U.S. Food and Drug Administration (FDA) to treat the COVID-19 virus. In fact, the drugs were not FDA approved, and no Golden Sunrise product had ever been approved by the FDA for any purpose.
On June 12, 2024, Tieu was sentenced to 18 months in prison for introduction of misbranded drugs into interstate commerce.
This case is the product of an investigation by the FDA Office of Criminal Investigations, the U.S. Department of Health and Human Services Office of Inspector General, and the Federal Bureau of Investigation with assistance from the Tulare County District Attorney’s Office. Assistant U.S. Attorneys Jeffrey A. Spivak and Emilia P.E. Morris are prosecuting the case.
Meis is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on July 14, 2025. Meis faces a maximum statutory penalty of 12 months in prison and a $100,000 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.
Vacaville Man Charged with Producing Child Sexual Abuse MaterialRead the Press Release
A federal grand jury returned a one-count indictment today against Michael Keith Rubino, 39, of Vacaville, charging him with producing child sexual abuse material, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, in October and November of 2024, Rubino engaged in multiple sex acts with a 17-year-old female victim. Rubino exploited his minor victim at a residence in Vacaville where Rubino lived. Rubino recorded numerous instances of his sexual abuse of his minor victim using his iPhone.
This case is the product of an investigation by the Federal Bureau of Investigation, with assistance from the Vacaville Police Department. Assistant U.S. Attorney Sam Stefanki is prosecuting the case.
If convicted, Rubino faces a minimum mandatory sentence of 15 years in prison and a maximum statutory penalty of 30 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory 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.
Shasta County Man Pleads Guilty to Running a $35 Million Investment Fraud Scheme and Witness TamperingRead the Press Release
Matthew Piercey, 48, of Palo Cedro, pleaded guilty today to wire fraud, concealment money laundering, and witness tampering in connection with a $35 million investment fraud scheme, Acting U.S. Attorney Michele Beckwith announced. Piercey pleaded guilty without a written plea agreement to all 27 of the pending counts and the Court vacated the May 19, 2025, trial date.
According to court documents, between July 2015 and August 2020, Piercey solicited investor funds by holding himself out as an investment advisor through his purported investment companies Family Wealth Legacy and Zolla. He made a variety of false and misleading statements to investors about the nature and success of trading algorithms, commissions and fees, investment strategies, the liquidity of investments, and the financial stability of Family Wealth Legacy and Zolla. For example, Piercey marketed the “Upvesting Fund,” an automated algorithmic trading fund that he falsely claimed had a history of success. He took money from numerous investors in this purported fund, but privately admitted to an associate that there was no Upvesting Fund.
Running a Ponzi-like fraud scheme, Piercey used some investor money to make payments to other investors. As the scheme progressed, Piercey used a Redding-area chiropractor to conceal his continued operation of the investment fraud and take in new money.
In total, Piercey paid back only approximately $8.8 million to investors of the approximately $35 million invested. He used the additional money for various business and personal expenses, including paying a criminal defense firm and buying two residential properties. Few, if any, liquid assets remained to repay investors.
According to court documents, when Piercey learned he was under investigation, he took steps to dissuade investors and witnesses from responding to grand jury subpoenas. His actions caused several individuals to delay producing documents, while at the same time, he syphoned off nearly $775,000 from victim investors into a bank account he controlled.
On Nov. 16, 2020, when law enforcement agents attempted to arrest Piercey, he fled from arrest and led agents on a vehicle chase through residential neighborhoods and onto the highway before abandoning his vehicle and entering Lake Shasta with an underwater submersible device. After about 20 minutes in the water, he emerged from the lake where he was arrested.
After his arrest, Piercey used coded language to communicate with two individuals who visited him in jail. He directed these individuals to take actions with the contents of a U-Haul storage locker he had rented in Redding. A subsequent FBI search of the storage locker revealed that Piercey had rented the locker under a fictitious name, Chadwick Givens, using a fake California driver’s license. The locker contained, among other things, a wig and ₣31,000 in Swiss francs.
“Investment fraud schemes like the one led by this defendant can devastate lives, retirements, and undo decades of planning by hard-working people simply looking for a trusted place to invest their money,” said Acting U.S. Attorney Beckwith. “Our office will continue to work with the FBI and our law enforcement partners to bring to justice those who commit these frauds and who seek to tamper with the grand jury process.”
“Many invested their life savings with Matthew Piercey’s companies, not knowing that the claim of guaranteed returns were the empty promises of a Ponzi scheme,” said FBI Sacramento Special Agent in Charge Sid Patel. “The FBI agents, forensic accountants, and other specialized personnel work tirelessly to ensure those who exploit the trust of a hopeful public will face serious consequences.”
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Matthew Thuesen, Audrey B. Hemesath, Christopher S. Hales, and Kevin Khasigian are prosecuting the case.
Piercey is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on Sept. 4, 2025. Two other defendants who conspired with Piercey in the scheme are Ken Winton and Gary Klopfenstein. Winton pleaded guilty in December 2020 and Klopfenstein pleaded guilty in July 2024. Both Winton and Klopfenstein are scheduled for status conferences regarding sentencing on Aug. 21, 2025.
Piercey faces a maximum statutory penalty of 20 years in prison and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater, for each wire fraud and mail fraud count; 20 years in prison and a fine of up to $250,000 for each witness tampering count; and 20 years in prison and a fine of up to $500,000 or twice the value of the property involved, whichever is greater, for each money laundering count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Oakhurst Man Charged with Stalking Fresno WomanRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Preston Nelson-Kestner, 21, of Oakhurst, charging him with stalking, distribution and possession of images of child sexual exploitation, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, between October 2023, and Feb. 13, 2024, Nelson-Kestner used social media applications including OnlyFans, Instagram, and TikTok to engage in a course of conduct that caused, attempted to cause, and would be reasonably expected to cause substantial emotional distress to an adult victim in Fresno. Nelson-Kestner used the social media apps to send threatening messages to the victim and sent videos and images of a minor engaged in sexually explicit conduct.
This case is the product of an investigation by the Federal Bureau of Investigation and the Fresno Police Department with assistance from the Madera County Sheriff’s Office and the Central California Internet Crimes Against Children Task Force. Assistant U.S. Attorney David L. Gappa is prosecuting the case.
If convicted, Nelson-Kestner faces a maximum statutory penalty of five years in prison and a $250,000 fine for stalking, a minimum of five years in prison up to 20 years in prison for distribution and a 10-year maximum sentence for possession of images of child sexual exploitation. 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.
Nashville Man Charged with Conspiracy to Defraud Fresno CountyRead the Press Release
FRESNO, Calif. — A federal grand jury returned a six-count indictment against Jafaar September Nyangoro, 52, of Franklin, Tennessee, and Peter Bah Acha, 45 of Berlin, Germany, charging them with conspiracy to commit wire fraud and wire fraud related to a scheme to defraud Fresno County, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, sometime before Sept. 14, 2020, Nyangoro, Acha, and others secretly gained control of an email account used by the finance director of a Fresno nonprofit to submit fraudulent invoices to Fresno County for payment through Automated Clearing House (ACH) transactions. Posing as the finance director, they fraudulently represented to the County of Fresno that the nonprofit’s bank account information had changed and that payments should be sent to an account at a different bank that Nyangoro had recently opened. The County of Fresno updated the nonprofit’s bank account information accordingly.
According to court documents, between Sept. 24, 2020, and Oct. 13, 2020, the County of Fresno initiated several ACH transfers totaling over $1.5 million to Nyangoro’s bank account instead of the nonprofit’s bank account. At times, Nyangoro, Acha, and others communicated with each other through various means, including WhatsApp. For example, on Oct. 16, 2020, after Regions Bank reversed some of the ACH transfers for suspected fraud, Nyangoro sent a WhatsApp message: “We’re in deep s***. The last 3 transactions from County of Fresno have been reversed. Please call me ASAP!”
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney David L. Gappa is prosecuting the case.
Nyangoro was ordered detained by a magistrate judge in Nashville on May 14, 2025, and will make an appearance in Fresno at a later date.
If convicted, Nyangoro and Acha face a maximum statutory penalty of 20 years in prison and a fine up to $250,000 for each count of conspiracy to commit wire fraud and wire fraud. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Vallejo Man Convicted of Being a Felon in Possession of AmmunitionRead the Press Release
After a two-day trial before U.S. District Judge Dena Coggins, a jury found Jeffrey Caldwell, 36, of Vallejo, guilty of being a felon in possession of ammunition, Acting U.S. Attorney Michele Beckwith announced.
According to evidence presented at trial, law enforcement officers responded to the Super 8 Motel on 2070 Solano Avenue in Vallejo after multiple callers reported hearing gunshots from inside the building. By the time the officers arrived, Caldwell had barricaded himself in his hotel room and refused commands to surrender. A multi-hour standoff ensued, which ended when Caldwell finally left the room and attempted to flee. A subsequent search of the room discovered a privately manufactured firearm containing one round of ammunition. Caldwell is prohibited from possessing ammunition due to more than 10 prior felony convictions in California and Arizona, including for assault, burglary, and stalking.
This case is the product of an investigation by the Vallejo Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Charles Campbell and Alexander Cárdenas are prosecuting the case.
Caldwell is scheduled to be sentenced by Judge Coggins on Aug. 22, 2025. Caldwell faces a maximum statutory penalty of 15 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.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Stanislaus County Man Sentenced to over 15 Years in Prison for Transportation of a Minor with Intent to Engage in Criminal Sexual ActivityRead the Press Release
Cristian Ceja, 28, of Turlock, was sentenced yesterday by United States District Judge John A. Mendez to 15 years and eight months in prison for transportation of a minor with intent to engage in criminal sexual activity, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, between Aug. 27, 2023, and Jan. 3, 2024, Ceja transported a minor victim from the Eastern District of California to Idaho with the intent to engage in criminal sexual activity. Ceja met the minor victim when Ceja was working as a delivery driver and delivered food to the minor’s house. Ceja thereafter used the minor victim’s phone number to track her down on social media and communicate with her. Ceja began a lengthy sexual relationship with the minor victim who, at that time, was 15. During the course of their sexual relationship, Ceja would sneak into the minor victim’s bedroom to have sex with her without being detected by her parents. On at least two occasions, Ceja video recorded himself engaging in sexual contact with the minor victim. Ceja kept used condoms and used feminine hygiene products in his storage unit as souvenirs of his relationship with the minor victim.
On Aug. 26, 2023, the minor victim’s mother contacted law enforcement because she found provocative photographs of the minor victim in her bedroom and was concerned her daughter was having a sexual relationship with an adult. In the early morning hours of Aug. 27, 2023, Ceja took the minor victim and fled to avoid detection and to continue the sexual relationship. While on the run, Ceja attempted to evade detection by placing stolen license plates on his vehicle, obliterating the VIN from his vehicle’s dashboard, spray painting the vehicle a different color, and adopting a false name. In order to avoid detection, Ceja discarded his cellphone while in flight and used a “burner” phone.
Ceja first took the minor victim to Nevada where they lived in his vehicle for approximately one week. Ceja then took the minor victim to a rural part of Idaho where they lived for several months in a small camper trailer without running water or heat. Law enforcement found the minor victim after she contacted a family member via social media to let her family know that she wanted to come home but could not leave on her own. On Jan. 3, 2024, law enforcement officers arrived at the camper trailer, rescued the minor victim, and arrested Ceja
This case was the product of an investigation by the Stanislaus County Sheriff’s Office and Homeland Security Investigations. Assistant U.S. Attorney Shea J. Kenny 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.
Sacramento Man Sentenced to 17.5 Years in Prison for Leadership Role in a Drug Trafficking Conspiracy and for Being a Felon in Possession of FirearmsRead the Press Release
Michael Garcia, 36, of Sacramento County, was sentenced Tuesday to 17 years and six months in prison for conspiring to possess and distribute methamphetamine and being a felon in possession of a firearm, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, Michael Garcia conspired with his wife Nancy Garcia, his father Gonzalo Garcia, Tyler Combs (all co-defendant in this case), and others to sell methamphetamine and heroin in Sacramento and Solano Counties. Michael Garcia began this conspiracy while he was serving a state sentence for narcotics offenses at the Tulare County Jail.
Michael Garcia worked with his wife, father, and other coconspirators to sell a confidential informant a total of five pounds of methamphetamine and a quarter pound of heroin over five separate occasions, and he personally sold the CI a total of 4 pounds of methamphetamine. During the initial transactions, Nancy Garcia began to negotiate a firearms sale with the confidential informant and was present at the illegal firearms sale described below.
Once out of state custody, Michael Garcia continued the conspiracy to sell methamphetamine and heroin. He also set up a deal with Tylor Combs to sell firearms to the confidential informant. Nancy Garcia, Michael Garcia, and Tyler Combs were present at this illegal firearms deal, which involved 10 firearms, including an unserialized machine gun.
Screenshot of video Michael Garcia sent to confidential informant bragging about his drug proceeds, saying “Sac money is good money.”
The 10 firearms that Garcia and Combs sold to the confidential informant.
Michael Garcia and his wife also admitted that they bought a home in Arizona with drug proceeds. The United States is in the process of the forfeiture of this home.
This case is the product of an investigation by the FBI’s Solano County Violent Crimes Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the U.S. Attorney’s Office for the District of Arizona. Assistant U.S. Attorney Adrian T. Kinsella prosecuted the case.
Gonzalo Garcia passed away while in pretrial custody for this case. Tylor Combs has since pleaded guilty both to conspiring to distribute methamphetamine and heroin and to being a felon in possession of firearms. On November 12, 2021, he was sentenced to six years and six months in prison. Nancy Garcia pleaded guilty to a conspiracy to distribute methamphetamine and heroin. On September 10, 2024, she was sentenced to five years in prison.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
Fresno-Based Community Health System Agree to Pay $31.5 Million to Resolve Allegations of False Claims Act ViolationsRead the Press Release
Community Health System and its affiliate Physician Network Advantage Inc. have agreed to pay $31.5 million to the United States to resolve allegations that they violated the False Claims Act based on financial benefits provided to referring physicians, Acting U.S. Attorney Michele Beckwith announced today. Community Health System operates in Fresno County and includes hospitals Community Regional Medical Center and Clovis Community Medical Center.
“We cannot allow medical decisions to be distorted by kickback schemes or efforts to buy physicians’ loyalty with lucrative side perks,” said Acting U.S. Attorney Beckwith. “This settlement demonstrates this Office’s commitment to ensuring that patients’ best interests remain paramount.”
The civil settlement announced today resolves allegations that Community Health System and Physician Network Advantage Inc. (PNA) provided several types of extravagant benefits to induce physicians in the Fresno area to refer their patients to Community facilities for medical services, in violation of the False Claims Act. PNA is a health care technology business formed and funded by Community to support Fresno-area physicians’ adoption of the electronic health records platform used by Community. The United States contends that PNA also played a key role in securing business for Community by unlawful means. In a custom-built lounge located on premises at PNA’s offices, known as HQ2, PNA provided expensive wine, liquor, cigars, and meals to referring physicians, with the knowledge and funding of Community.
The settlement also resolves allegations that Community and PNA provided financial subsidies for electronic health records technology and equipment used by certain physicians in their private offices in return for the referral of governmental health care program patients to Community. Further, the settlement resolves allegations that Community paid bonuses to certain physicians ostensibly for participation in clinical integration activities, when the real purpose of the bonuses was to reward referrals.
The United States contends that these financial benefits violated the federal Anti-Kickback Statute, resulting in false claims for the medical services referred by physicians receiving the benefits, that were submitted to governmental health care programs. The United States also contends that the conduct described above created financial relationships with referring physicians under the Physician Self-Referral Law (known as the “Stark Law”). The Stark Law seeks to safeguard the integrity of the Medicare program by prohibiting a hospital from billing for certain services referred by physicians with whom the hospital has a financial relationship, unless that relationship satisfies one of the law’s statutory or regulatory exceptions, which the United States contends were not met.
“Kickback arrangements aimed at improperly influencing medical decisions will remain a top investigative priority for our agency,” said Acting Special Agent in Charge Robb R. Breeden of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “This settlement demonstrates HHS-OIG’s commitment to identifying and holding accountable those who engage in unlawful financial relationships at the expense of Medicare patients and the taxpayer.”
In connection with the settlement, Community entered into a five-year Corporate Integrity Agreement with HHS-OIG that requires, among other conditions, the implementation of a risk assessment and internal review process designed to identify and address evolving compliance risks. The Corporate Integrity Agreement also requires an independent review organization to annually assess the policies and systems to track arrangements with some referral sources.
The settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by relator Michael Terpening. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery from that action. The qui tam case is captioned United States ex rel. Terpening v. Fresno Community Hospital and Medical Center, et al., 1:19-CV-01699 (E.D. Cal.). As part of the settlement announced today, Mr. Terpening will receive approximately $5 million.
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of California and HHS-OIG with assistance from the Federal Bureau of Investigation and the U.S. Postal Service Office of Inspector General. Assistant U.S. Attorney David Thiess handled the case for the U.S. Attorney’s Office.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Note: View the settlement here.
2025.05.07_executed_copy_chs_and_pna_settlement.pdfStockton Man Sentenced to 16 Years and 8 Months in Prison for Fentanyl and Methamphetamine Pill Manufacturing and DistributionRead the Press Release
Jamar Deontae Barnes, 43, of Stockton, was sentenced today by U.S. District Judge Dale A. Drozd to 16 years and eight months in prison for conspiracy to manufacture and distribute pills laced with fentanyl, methamphetamine, and other drugs, and possession with intent to distribute methamphetamine-laced pills, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, from at least September 2015 through May 2019, Barnes conspired with his twin brother, Jamaine Dontae Barnes, and others, to make and sell thousands of drug-laced pills. Barnes and his co-conspirators made the pills using pill presses, which are machines that compress powders into pills of various shapes and sizes. They made pills that appeared to be legitimate prescription pills but in fact contained fentanyl, furanyl fentanyl, heroin, and other synthetic opioids. They also made pills that appeared to be traditional Ecstasy pills but in fact contained methamphetamine. On May 16, 2019, law enforcement searched Jamar Barnes’ Stockton residence and seized a pill press machine as well as powders and pills containing methamphetamine and furanyl fentanyl.
This case is the product of an investigation by the Drug Enforcement Administration, with assistance from Homeland Security Investigations, the U.S. Marshals Service, the U.S. Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the California Highway Patrol, the San Joaquin METRO Narcotics Task Force, the Tri-County Drug Enforcement Team (TRIDENT) Task Force, the Stockton Police Department, the Sacramento County High Intensity Drug Trafficking Area (HIDTA) Task Force, and the San Joaquin County Sheriff’s Office. Assistant U.S. Attorneys David W. Spencer and Emily G. Sauvageau prosecuted the case.
Nine other defendants have pleaded guilty:
- Jamaine Dontae Barnes pleaded guilty and is scheduled to be sentenced on August 25, 2025.
- Kavio Daeshaun Lee Wiley pleaded guilty and was sentenced to 15 years in prison.
- Vincent Isaiah Patterson pleaded guilty and was sentenced to 5 years in prison.
- Johnesha Denae Thompson pleaded guilty and was sentenced to one year and 6 months in prison.
- Kadrena Latrice Watts pleaded guilty and is scheduled to be sentenced on July 14, 2025.
- Jeremy Jerome Barnett pleaded guilty and was sentenced to 4 years and 9 months in prison.
- Chevele Bernard Richardson pleaded guilty and was sentenced to 6 years and 7 months in prison.
- Tashawn Terrell Dickerson pleaded guilty and was sentenced to 3 years and 10 months in prison.
- Lamont Montez Thibodeaux pleaded guilty and is scheduled to be sentenced on June 23, 2025.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.
Bakersfield Man Pleads Guilty to Striking a Sheriff Helicopter with a LaserRead the Press Release
Brett Curtis Hair, 23, of Bakersfield, pleaded guilty today to aiming the beam of a laser pointer at an aircraft, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, on Sept. 11, 2024, at approximately 12:17 a.m., Kern County Sheriff's Office helicopter Air 1 was on routine patrol when the cockpit was struck by a bright green laser beam. The Tactical Flight Officer pinpointed the source of the laser emanating from a residence within the Federal Aviation Administration’s (FAA) Critical Flight Zone of Bakersfield’s Meadow Field Airport. At least 15 additional laser strikes appeared to be intentional as the light tracked and struck the helicopter. Once Air 1 arrived above the residence, Hair exited the garage and immediately began striking the helicopter's cockpit again with the high-powered laser. During the laser strikes, the pilot and Tactical Flight Officer experienced visual interference as the laser repeatedly struck and illuminated the cockpit, making it difficult to see the aircraft’s instruments.
According to the FAA, aiming a laser at an aircraft is a serious safety risk, because many high-powered lasers can incapacitate pilots and interfere with the safe operation of their aircraft. In 2024, pilots reported 12,840 laser strikes to the FAA.
This case is the product of an investigation by the Federal Bureau of Investigation and the Kern County Sheriff’s Office. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
Hair is scheduled for sentencing on Aug. 4, 2025. He faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Sacramento-Based Political Consulting Firm Resolves Claims Involving Paycheck Protection Program LoanRead the Press Release
Lobbying organization Governmental Advocates Inc. has self‑disclosed its ineligibility for the Paycheck Protection Program loan it obtained and voluntarily paid more than $200,000 to resolve civil claims regarding the loan, Acting U.S. Attorney Michele Beckwith announced today.
Congress created the Paycheck Protection Program (PPP) in March 2020, as part of the Coronavirus Aid, Relief, and Economic Security Act, to provide relief to small businesses experiencing economic hardship during the COVID-19 pandemic. Although many businesses were eligible for these loans, some businesses were not, including those primarily engaged in political or lobbying activities, like Governmental Advocates.
In September 2024, Governmental Advocates self-disclosed to the United States that, as an organization primarily engaged in lobbying activity, it was ineligible for the PPP loan it had obtained and that it had voluntarily repaid the loan principal of $183,688. Governmental Advocates applied for the loan in April 2020 and later applied for loan forgiveness. The Small Business Administration approved that application, forgiving $183,688 in principal and $2,289.81 in interest. In the settlement announced today, Governmental Advocates agreed to pay the United States a total of $239,954.87, including the repaid loan principal as well as forgiven interest, the fee paid to the lending bank by the SBA, and settlement interest.
“We are pleased that Governmental Advocates chose to voluntarily disclose this conduct and make full repayment,” said Acting U.S. Attorney Beckwith. “We encourage any company that may have received federal program funds in error to consider self-disclosure and cooperation.”
SBA’s General Counsel Wendell Davis stated, “The favorable settlement in this case is the product of enhanced efforts by federal agencies, such as the Small Business Administration working in conjunction with the U.S. Attorney’s Office, to pursue a fair recovery of pandemic relief funds.”
The matter was handled by Assistant U.S. Attorney Tara Amin.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
South Lake Tahoe Man Indicted for Distribution of Fentanyl Causing DeathRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment today against Timothy Austin Pannell, 32, of South Lake Tahoe, charging him with distribution of fentanyl causing death, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, on the morning of Feb. 12, 2024, South Lake Tahoe Police Department responded to a 911 call reporting multiple overdoses at a residence in South Lake Tahoe. First responders arrived and found four individuals deceased in the residence. A fifth victim survived the overdose.
It is alleged that two of the men found deceased that morning had met with Pannell, a.k.a. “Frog,” the night before, following a Super Bowl party, in the parking lot of a church in South Lake Tahoe. There, Pannell sold them fentanyl that he represented as cocaine. The two men returned to the residence, where they shared what they believed to be cocaine with three others at the house.
This case is the product of an investigation by the FBI, the South Lake Tahoe Police Department, the El Dorado County Sheriff’s Office, and the El Dorado County District Attorney’s Office. Assistant U.S. Attorney James Conolly is prosecuting the case.
Pannell is currently in federal custody, pending trial.
If convicted, Pannell faces a mandatory minimum sentence of 20 years in prison and a maximum statutory penalty of life in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Federal Jury Returns Guilty Verdicts Against Two Members of a Firearm and Drug Trafficking ConspiracyRead the Press Release
After a three-day trial, a federal jury found Angel Lopez, 47, of Southern California, guilty of conspiracy to distribute methamphetamine and Rochlem Eric Aquino Yadao, 48, of Santa Maria, guilty of conspiracy to deal in firearms without a license, Acting United States Attorney Michele Beckwith announced.
According to court documents and evidence produced at trial, Lopez and Yadao were involved in conspiracies to traffic drugs and guns respectively. In March 2020, Angel Lopez negotiated the sale of 5 pounds of methamphetamine and directed others to complete the deal. Later, in a dark parking lot outside Disneyland, Lopez’s associate delivered the methamphetamine to the buyer. Shortly after the drug transaction, nearby law enforcement officers conducted a traffic stop and seized the drugs. The methamphetamine was packaged in five individual plastic bags, with two of the bags containing “blue” methamphetamine.
Also in 2020, several individuals conspired to deal firearms without a license in Fresno, Santa Barbara, and San Luis Obispo Counties. Throughout the firearm dealing conspiracy, agents seized firearms and ammunition from four different gun deals between March and August of 2020. In April 2020, members of the firearm dealing conspiracy arranged for the sale of two AR-style rifles. The deal took place at Yadao’s residence in Santa Maria. Yadao personally stored and delivered the firearms at his house and took cash payment for the weapons. Both guns were “ghost guns,” and did not have serial numbers. Yadao did not have a license to deal firearms. The guns were seized by law enforcement shortly after the deal occurred.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Santa Barbara County Sheriff’s Office, the California Highway Patrol, the California Department of Corrections and Rehabilitation, the U.S. Marshals Service, the Los Angeles County Sheriff’s Office, the Federal Bureau of Investigation, the California Department of Justice, the Fresno County Sheriff’s Office, the Fresno Police Department, and the Fresno County District Attorney’s Office. Assistant United States Attorneys Stephanie M. Stokman and Cody S. Chapple are prosecuting the case.
Lopez and Yadao are scheduled to be sentenced by U.S. District Judge Troy L. Nunley on Aug. 25, 2025. Lopez faces a mandatory minimum of 10 years and a maximum statutory penalty of life in prison. Yadao faces a maximum of 10 years in prison.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.
Justice Department Announces Results of Operation Restore JusticeRead the Press Release
Today, the Department of Justice announced the results of Operation Restore Justice, a coordinated enforcement effort to identify, track and arrest child sex predators. The operation resulted in the rescue of 115 children and the arrests of 205 child sexual abuse offenders in the nationwide crackdown. The coordinated effort was executed over the course of five days by all 55 FBI field offices, the Child Exploitation and Obscenity Section in the Department’s Criminal Division, and United States Attorney’s Offices around the country.
“The Department of Justice will never stop fighting to protect victims — especially child victims — and we will not rest until we hunt down, arrest, and prosecute every child predator who preys on the most vulnerable among us,” said Attorney General Pamela Bondi. “I am grateful to the FBI and their state and local partners for their incredible work in Operation Restore Justice and have directed my prosecutors not to negotiate.”
“Every child deserves to grow up free from fear and exploitation, and the FBI will continue to be relentless in our pursuit of those who exploit the most vulnerable among us,” said FBI Director Kash Patel. “Operation Restore Justice proves that no predator is out of reach and no child will be forgotten. By leveraging the strength of all our field offices and our federal, state and local partners, we’re sending a clear message: there is no place to hide for those who prey on children.”
“Advances in technology continue to escalate both the heinous nature and pervasiveness of these violent crimes that affect the most vulnerable members of our communities,” said Acting U.S. Attorney Michele Beckwith. “The U.S. Attorney’s Office is committed to continuing its collaboration with our state, local and federal partners to locate these offenders and ensure that they are prosecuted to the fullest extent of the law.”
“No child should ever have to suffer at the hands of a predator,” said Special Agent in Charge Sid Patel of the FBI Sacramento Field Office. “The FBI is committed to breaking the cycle of abuse and ensuring those who exploit children are brought to justice. We work closely with our federal, state, and local law enforcement partners to identify these offenders and to protect the most vulnerable members of our communities.”
In the Eastern District of California, a Lodi man was arrested for allegedly using the Freenet network to share files of child pornography, and a Solano County man was arrested for allegedly trafficking a 16-year-old girl who had been reported missing from Sacramento County.
Others arrested around the country are alleged to have committed various crimes including the production, distribution, and possession of child sexual abuse material, online enticement and transportation of minors, and child sex trafficking. In Minneapolis, for example, a state trooper and Army Reservist was arrested for allegedly producing child sexual abuse material while wearing his uniforms. In Norfolk, VA, an illegal alien from Mexico is accused of transporting a minor across state lines for sex. In Washington, D.C., a former Metropolitan Police Department Police Officer was arrested for allegedly trafficking minor victims.
In many cases, parental vigilance and community outreach efforts played a critical role in bringing these offenders to justice. For example, a California man was arrested about eight hours after a young victim bravely came forward and disclosed their abuse to FBI agents after an online safety presentation at a school near Albany, New York.
This effort follows the Department’s observance of National Child Abuse Prevention Month in April and underscores the Department’s unwavering commitment to protecting children and raising awareness about the dangers they face. While the Department, including the FBI, investigates and prosecutes these crimes every day, April serves as a powerful reminder of the importance of preventing these crimes, seeking justice for victims, and raising awareness through community education.
The Justice Department is committed to combating child sexual exploitation. These cases were brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.justice.gov/psc.
The Department partners with and oversees funding grants for the National Center for Missing and Exploited Children (NCMEC), which receives and shares tips about possible child sexual exploitation received through its 24/7 hotline at 1-800-THE-LOST and on missingkids.org.
The Department urges the public to remain vigilant and report suspected exploitation of a child through the FBI’s tipline at 1-800-CALL-FBI (225-5324), tips.fbi.gov, or by calling your local FBI field office.
Other online resources:
Electronic Press Kit
Violent Crimes Against Children
How we can help you: Parents and caregivers protecting your kids
An indictment is merely an allegation. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Sacramento Man Sentenced to 12 Years in Prison for $38 Million Catalytic Converter Theft RingRead the Press Release
Tou Sue Vang, 33, of Sacramento, was sentenced today to 12 years in prison for his role in transporting thousands of stolen catalytic converters across state lines, laundering money, and other related crimes, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, Tou Vang, along with his brother Andrew Vang and mother Monica Moua, purchased stolen catalytic converters from local thieves and sold them to a buyer in New Jersey for more than $38 million. Catalytic converter theft has become prevalent across the nation because of their value, relative ease to steal, and their lack of identifying markings. Thieves steal catalytic converters from vehicles on the street for the precious metals they contain, which may be more valuable per ounce than gold, and then sell them to buyers like T. Vang. The black-market price for certain catalytic converters from California can be more than $1,000 each.
This prosecution is part of a nationwide initiative that dismantled a catalytic converter theft conspiracy. In addition to the three California defendants, this case includes 12 New Jersey defendants, including brothers Navin Khanna and Tinu Khanna, who operated DG Auto and purchased the stolen catalytic converters from California for more than $38 million. Tou Vang and his family operated primarily from their private residences and storage units; and did not have a scrap yard or valid business license. Some of the shipments that Tou Vang made to DG Auto were over 1,000 pounds and contained a single type of high-value catalytic converter, such as the Toyota Prius. Tou Vang and his family used the funds they received from the Khanna brothers and withdrew cash from the bank accounts they controlled to purchase more stolen catalytic converters, thereby promoting the carrying on of the unlawful activity.
Tou Vang spent the proceeds of these stolen catalytic converters to fund his lavish lifestyle, including to purchase a five-acre multi-home complex in Rio Linda for $1.235 million in cash, over a dozen motor vehicles (including two Teslas and two Sea Doos), and an additional home in Sacramento. As part of T. Vang’s sentence, the United States forfeited more than $150,000 in U.S. currency, 13 motor vehicles, four personal watercraft, jewelry, and real estate, amongst other property.
“This defendant led a network of criminals that hurt thousands of innocent car owners,” said Acting U.S. Attorney Beckwith. “This case represents the kind of far-reaching investigation that federal, state, and local law enforcement partners can do when working together. The U.S. Attorney’s Office is committed to continuing its law enforcement partnerships to disrupt criminal conspiracies like this one that target the American people.”
“Theft usually happens in the shadows, most often with the help of professional enablers such as Mr. Vang who facilitated the sale of stolen goods. The financial expertise of IRS Criminal Investigation Oakland Field Office agents has helped trace the assets and unraveled the truth behind these organizations,” said Special Agent in Charge Linda T. Nguyen. “Today’s sentencing is a true reflection of the collaborative commitment between all the local, state, and federal agencies who contributed to this outcome as our way to protect the people in the communities and bring justice to light.”
“This takedown is the first of its kind in the nation and a major step forward in dismantling a catalytic converter theft ring,” said Special Agent in Charge Sid Patel of the FBI Sacramento Field Office. “The group is tied to an estimated $38 million in losses, and this investigation shows the power of strong collaboration. I’d like to extend a special thanks to our law enforcement partners in Yolo and Sacramento counties who helped ensure our shared success.”
This case is the product of an investigation by the Federal Bureau of Investigation and the IRS Criminal Investigation with assistance from the Sacramento County Sheriff’s Department, Sacramento Police Department, Davis Police Department, Auburn Police Department, Livermore Police Department, and San Bernardino County Sheriff’s Department. Assistant U.S. Attorney Veronica M.A. Alegría of the U.S. Attorney’s Office Eastern District of California and Trial Attorney César S. Rivera-Giraud of the Criminal Division’s Violent Crime and Racketeering Section are prosecuting the case.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information, please visit Justice.gov/OCDETF.
Source of Supply for Merced County Methamphetamine Distribution Sentenced to 22.5 Years in PrisonRead the Press Release
FRESNO, Calif. — Raul Zamudio Hurtado, 42, of Oakdale, was sentenced Monday by U.S. District Judge Jennifer L. Thurston to 22 and a half years in prison and for two counts of conspiracy to distribute and possess with intent to distribute methamphetamine arising from two separate cases, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, in May 2017, a coalition of federal, state, and local agencies investigated a group of Sureño gang members and associates in the Merced area for crimes of violence, drug sales, and illegal firearms possession. More than 50 individuals were arrested and 14 defendants were charged federally. Hurtado was the source of supply of methamphetamine to the suspected Sureño members and was indicted. On July 24, 2019, Hurtado pleaded guilty to conspiracy to distribute methamphetamine and remained in custody pending sentencing in the first case. In April 2020, he was released with conditions.
Between December 2021 and November 2022, Hurtado obtained and distributed methamphetamine in large quantities and received tens of thousands of dollars in drug proceeds. On Nov. 16, 2022, a search warrant was executed, more than 73 pounds of methamphetamine was seized, and Hurtado was charged again. On June 3, 2024, Hurtado pleaded guilty to conspiracy to distribute methamphetamine in this second case.
These cases were the product of investigations by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, the Merced Area Gang and Narcotic Enforcement Team (MAGNET), the California Department of Justice/California Highway Patrol, Special Operations Unit, the California Department of Corrections and Rehabilitation, and the Modesto Police Department Major Crimes Unit. Assistant U.S. Attorneys Ross Pearson and Kimberly Sanchez prosecuted the cases.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information, visit Justice.gov/OCDETF.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Solano County Man Sentenced to 7 Years in Prison for Second Conviction of Being a Felon in Possession of a FirearmRead the Press Release
Jeremiah Malik Jefferson, 27, of Benicia, was sentenced today by U.S. District Judge John A. Mendez to seven years in prison for his second federal felon-in-possession of a firearm case, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, On Oct. 1, 2023, while on supervised release following a 2021 conviction in a prior federal gun case, Jefferson brandished a firearm during an argument with a female victim. Jefferson had been released from prison only 10 months prior. During a search of Jefferson’s residence on Nov. 1, 2023, law enforcement officers recovered a firearm that was loaded with a high-capacity magazine and had previously been reported stolen. Jefferson is prohibited from possessing a firearm due to multiple prior felony convictions, including for burglary and a previous federal conviction for being a felon in possession of a firearm. Jefferson was also sentenced to two years in prison (the applicable statutory maximum) for violating his terms of supervised release to be served concurrently with the 7-year sentence.
This case was the product of an investigation by the U.S. Probation Office, the Benicia Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the FBI’s Solano County Violent Crimes Task Force. Assistant U.S. Attorney Adrian T. Kinsella prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
California City Councilmember Charged with Hazardous Waste Transportation Conspiracy that Risked Death or Serious Bodily InjuryRead the Press Release
Michael Kulikoff, 39, of California City, was arrested today on an indictment charging him with conspiracy to transport and cause to be transported a hazardous waste without a manifest and placing another person in imminent danger of death or serious bodily injury, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, in February 2024, Kulikoff was a city councilmember in California City and owned a car wash business. On Feb. 25, 2024, Kulikoff learned that a mercury exposure incident had occurred at his car wash. An individual had spilled a jar containing several ounces of mercury inside the cabin of a sports utility vehicle and had attempted to clean up the mercury using a vacuum cleaner. The individual then drove the contaminated SUV to a residence in California City, where he called 911 because he was experiencing symptoms related to mercury exposure.
California City emergency services personnel responded to the scene and scanned the SUV for mercury. They detected approximately 20 times the allowable limit of mercury inside the SUV’s cabin and put yellow caution tape around the SUV to deny entry to it. They also shut down the car wash business. Kulikoff attempted to clean up the business himself but was told by the emergency services personnel that he had to stop because it was a hazardous materials scene and was unsafe.
Early the following morning, Kulikoff conspired with another person to move the contaminated SUV outside of city limits. He directed the other person to drive the contaminated SUV from California City to Boron because the SUV was causing problems for Kulikoff in California City, and he wanted the SUV to be outside the jurisdiction of California City emergency services personnel. Emergency services personnel left the location of the contaminated SUV scene to respond to a report of a fire that turned out to be a false report. When they returned to the scene, the contaminated SUV was gone. A couple of hours later, Kern County emergency services personnel found the contaminated SUV at the residence of the individual who had moved the vehicle at Kulikoff’s direction. That individual also complained of symptoms related to mercury exposure.
This case is the product of an investigation by the U.S. Environmental Protection Agency’s Criminal Investigation Division (CID) and the Federal Bureau of Investigation. Assistant U.S. Attorneys Jeffrey A. Spivak and Arelis M. Clemente are prosecuting the case.
If convicted, Kulikoff faces a maximum statutory penalty of five years in prison and a $250,000 fine for conspiracy to transport hazardous waste and a maximum statutory penalty of 15 years in prison and a $50,000 fine per day of violation for placing another person in imminent danger. 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
Norteño Gang Member Sentenced for Manufacturing Destructive Devices and Possessing a SilencerRead the Press Release
Joseph Marcus Silva, 28, of Porterville, was sentenced today by U.S. District Judge Jennifer L. Thurston to five years and 11 months in prison for manufacturing three destructive devices and possessing an unregistered silencer, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, Silva is a member of the Norteño gang subset called Varrio Central Poros and a convicted felon. Silva manufactured three destructive devices, using a 3D printer to make two of them. One of the 3D-printed destructive devices was similar to a military claymore mine that read, “FRONT TOWARDS ENEMY.” A claymore mine is a directional fragmentation, antipersonnel mine that is capable of incapacitating, injuring, or killing people. The second 3D-printed destructive device was a military-type M67 grenade. Silva also made a destructive device consisting of a glass tube with flash powder, BBs, and a fuse. In addition, Silva admitted that he unlawfully possessed an unregistered silencer, which had previously been used. Silva also possessed nine additional firearms, including six 3D-printed orange and gray frames, as depicted below:
3D-printed orange and gray frames possessed by Silva
A frame, which is the part of a firearm that integrates other components by providing housing for internal action components, is considered a firearm.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Tulare County Agency Regional Gun Violence Enforcement Team of the California Department of Justice, the Porterville Police Department, and the U.S. Postal Inspection Service. Assistant U.S. Attorney Karen A. Escobar prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Fresno County Farmer Sentenced to Prison for Crop Insurance FraudRead the Press Release
Jatinderjeet “Jyoti” Sihota, 40, of Selma, was sentenced today to one year in prison for conspiring to commit crop insurance fraud, Acting U.S. Attorney Michele Beckwith announced.
According to court records, for many years, Sihota’s family’s farming operation produced table grapes and other crops in Fresno and Tulare Counties, and it sold many of those crops through a fruit packing company where Ralph Hackett, 69, of Clovis, was a member and manager.
Beginning in 2012, Sihota became involved with her family’s farming operation. Thereafter, from 2012 through 2016, she and Hackett carried out a fraud scheme to obtain more than $650,000 in crop insurance payments to which they were not entitled. They caused altered records that underreported the amount of crops the farming operation sold through the fruit packing company to be provided to the insurance company to make it appear as though the farming operation had suffered significant crop losses when that was not true.
Emails and other evidence showed that the fraud was Sihota’s idea. She pleaded with Hackett to make the alterations, instructed him on the specific changes that needed to be made, and asked him to keep everything a secret. Sihota emailed other fruit brokers asking them to alter records for her, but they refused to do so.
This case was the product of an investigation by the U.S. Department of Agriculture Office of Inspector General and Risk Management Agency Special Investigations Staff. Assistant U.S. Attorney Joseph Barton prosecuted the case.
Hackett was charged separately and has pleaded guilty for his role in the fraud. Hackett is scheduled to be sentenced on May 27, 2025. He faces a maximum statutory penalty of 20 years in federal prison and $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.
Citrus Heights Man Pleads Guilty to Participation in $1 Million Unemployment Insurance Benefits Fraud Scheme and to Firearm ChargeRead the Press Release
Deshawn Oshaea Campbell, 36, of Citrus Heights, pleaded guilty today to being a felon in possession of a firearm and mail fraud, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, between June 2020 and December 2020, Campbell and Rochelle Pasley, 34, of Citrus Heights, conspired to defraud by filing fraudulent unemployment insurance claims with the California Employment Development Department (EDD) seeking Pandemic Unemployment Assistance benefits under the CARES Act. During the conspiracy, the defendants obtained the identifying information of other individuals and used their identities to submit dozens of fraudulent claims. The claims represented, among other things, that the claimants had recently lost employment or were unable to find employment due to the COVID-19 pandemic. These claims were fraudulent because, for instance, many of the individuals whose identities were used did not reside in California and were thus ineligible for benefits from EDD.
In the applications, the defendants used mailing addresses that were under their control, or under the control of their family and friends. EDD approved more than 50 of the fraudulent claims and authorized Bank of America to mail out EDD debit cards containing benefits. The defendants then obtained these debit cards and used them to withdraw the benefits at ATMs throughout California and to make direct purchases, all for their own benefit. The scheme resulted in EDD paying out more than $1 million.
In addition to the mail fraud scheme, Campbell pleaded guilty to possessing a firearm after having been convicted of a felony.
This case is the product of an investigation by the U.S. Postal Inspection Service, the Department of Labor – Office of Inspector General, and the EDD – Investigation Division. Assistant U.S. Attorneys Jessica Delaney and Justin Lee are prosecuting the case.
Campbell is scheduled to be sentenced by U.S. District Judge Daniel J. Calabretta on Aug. 7, 2025. Campbell faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for the count of mail fraud and faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for the count of firearm possession. 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.
Pasley is scheduled to be sentenced by Judge Calabretta on June 26, 2025. Pasley faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count of conspiracy and mail fraud, and a mandatory, consecutive two-year prison term for aggravated identity theft. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This effort is part of a California COVID-19 Fraud Enforcement Strike Force operation, one of five interagency COVID-19 fraud strike force teams established by the U.S. Department of Justice. The California Strike Force combines law enforcement and prosecutorial resources in the Eastern and Central Districts of California and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces use prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds.
Chinese National Indicted for Money Laundering Conspiracy Connected to Scam That Impersonated Federal Officers and EmployeesRead the Press Release
A federal grand jury returned a one-count indictment today against Binghui Liu, 32, a citizen of China formerly residing in San Jose, charging him with a money laundering conspiracy, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, between February 2024 and April 2025 Liu and other co‑conspirators engaged in a scheme to launder proceeds derived from a government impersonation fraud scam. Members of the conspiracy pretended to be federal law enforcement officers or employees when contacting target victims. To seek money, the scammers provided false information about the victim’s bank accounts, for example by claiming that charges had been wrongfully filed against the victims and that their bank accounts would be frozen. The scammers typically instructed victims to withdraw their savings in cash and then arranged for a fake law enforcement officer or federal employee to pick up the cash for supposed safekeeping. The scammers used fake names, code words, and instructed the victims to take pictures of themselves and the cash packaged for pickup.
Liu served as a money launderer in the fraud scheme. He went to victims throughout California and Nevada to take their money. Liu used code words and fake names, and victims were falsely told he was either a federal employee or law enforcement officer. At no point was Liu a federal employee or law enforcement officer.
In one example, an elderly victim was contacted by someone pretending to be a U.S. Marshal, who informed the victim of a fake arrest warrant and the possibility that the victim’s bank account would be frozen. The victim was instructed to give the money to federal reserve employees, supposedly to protect the funds. The scammers then coached the victim on withdrawing funds, what to say to their bank about the large withdrawals, and how to package the funds for multiple different pickups. On April 9, 2025, FBI agents set up a sting operation. Liu arrived at the elderly victim’s house and took what he believed was $20,000 but was, in fact, fake money. The agents arrested Liu shortly after he took the fake cash. In total, the elderly victim lost over $780,000 to the fraud scheme.
If you have information related to this case or believe you may be a victim, please submit a report at tips.fbi.gov or call your local FBI office.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Cody S. Chapple and Arelis M. Clemente are prosecuting the case.
If convicted, Liu faces a maximum statutory penalty of 20 years in prison and a $500,000 fine or twice the value of the property involved in the transaction, whichever is greater. 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.
Butte County Man Pleads Guilty to Attempted Enticement of a ChildRead the Press Release
Kevin Leslie Gipson, 58, of Oroville, pleaded guilty today to attempted coercion and enticement of a minor to engage in sexual activity, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, in July 2024 Gipson communicated with an individual he believed to be the father of a 10-year-old girl, but who was in fact an undercover officer. Gipson communicated his desire to perform sex acts on the child and planned to meet the undercover officer and child at a hotel room to do so. Gipson purchased various sex items in preparation for the meeting and bought a stuffed animal with the intent to provide the stuffed animal to the child. When Gipson approached the undercover officer with the stuffed animal, he was arrested by law enforcement officers.
This case is the product of an investigation by the Sacramento Sheriff’s Office, the Sacramento Valley Hi-Tech Crimes Task Force/Internet Crimes Against Children Task Force and the Federal Bureau of Investigation. Assistant U.S. Attorney Jessica Delaney is prosecuting the case.
Gipson is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on Feb. 5, 2026. Gipson faces a maximum statutory penalty of life in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Fresno Woman Tied to M30 King of Fresno Sentenced to over 6 Years in Prison for Drug Trafficking OffensesRead the Press Release
FRESNO, Calif. — Alma Garza, 24, of Fresno, was sentenced today by United States District Judge Jennifer L. Thurston to six years and eight months in prison for conspiring to distribute and possess with intent to distribute fentanyl, cocaine, and methamphetamine as well as possession with intent to distribute cocaine and methamphetamine, Acting U.S. Attorney Michele Beckwith announced.
In September 2024, after a four-day trial, a federal jury found Garza guilty. According to the evidence presented at trial, Garza was a trusted assistant of the self-proclaimed M30 King of Fresno, Horacio Torrecillas Urias Jr. Between Nov. 2, 2021, and March 31, 2022, Garza conspired with Torrecillas Urias and others to obtain, directly from sources in Mexico, tens of thousands of counterfeit M30 fentanyl pills and large quantities of cocaine and methamphetamine. The conspiracy included the distribution of these illicit drugs to drug dealers inside and outside of California. On Jan. 27, 2022, Garza mailed a package containing cocaine and methamphetamine to a co-defendant in New Mexico. Law enforcement seized the package before it arrived at its destination. On Feb. 9, 2022, Garza traveled with Torrecillas Urias to Sanger to deliver thousands of pills laced with fentanyl and methamphetamine. Those pills were seized by law enforcement during the execution of a residential search warrant two days later. Evidence at trial also proved that Garza transferred thousands of dollars of cash to Mexican drug suppliers in furtherance of the drug trafficking conspiracy.
At the conclusion of the investigation, the United States charged Garza, Torrecillas Urias, and 17 others with drug trafficking offenses. With today’s sentencing, all defendants have now been sentenced.
The case was the result of an investigation by the Fentanyl Overdose Resolution Team (a multi-agency team composed of Homeland Security Investigations, the Drug Enforcement Administration, and the Fresno Police Department), the U.S. Postal Inspection Service, the Clovis Police Department, the Fresno County Sheriff’s Office, California Highway Patrol, and the Fresno County District Attorney’s Office. Assistant U.S. Attorneys Justin J. Gilio and Antonio J. Pataca prosecuted the case.
This case is part of Operation Synthetic Opioid Surge (S.O.S.), a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Fresno Woman Sentenced to 2 Years in Prison for Tax Evasion and Ordered to Forfeit Her Mansion and BMWRead the Press Release
FRESNO, Calif. — Pilar Rose, 51, formerly of Fresno, was sentenced today to two years in prison for tax evasion and obstructing an IRS audit, Acting U.S. Attorney Michele Beckwith announced.
Rose was also ordered to forfeit more than $2.5 million of proceeds from the sale of her and her husband’s mansion and BMW, which authorities had seized.
According to court records, from 2012 through 2015, Rose prepared false financial statements for her husband’s orthodontics practice that significantly underreported the practice’s profits. As a result, Rose evaded more than $870,000 that she and her husband owed in federal taxes.
Then, in early 2016, Rose obstructed an IRS audit of her and her husband’s taxes. She altered hundreds of checks that were for their nondeductible personal expenses, such as their mortgage, utilities, landscaping, pool cleaning, cars, credit cards, and children’s college tuition, to make it appear as though the checks were for deductible business expenses. She also created false financial statements for her husband’s orthodontics practice to match the altered checks. She provided the altered checks and false financial statements to the IRS auditors to try to avoid paying the federal taxes that she and her husband actually owed.
In June 2015, Rose had sought a $1.5 million home mortgage refinance loan on the couple’s mansion located on Van Ness Boulevard in Fresno. To assure the bank of their creditworthiness and induce the bank to make the loan, Rose submitted copies of her and her husband’s federal tax returns that showed significantly greater income than was reported on the actual returns they filed with the IRS. The bank declined the loan after discovering the discrepancies.
Then, in July 2015, Rose applied to a second bank for a $1,475,000 home mortgage refinance loan on the Van Ness Boulevard residence. In the application, she represented that their bank accounts had a combined balance of more than $250,000 when they actually had less than $3,000. She also submitted copies of her and her husband’s federal tax returns, and a profit and loss statement, that significantly exaggerated the profitability of her husband’s orthodontics practice. As a result, the second bank approved the loan, and Rose and her husband received $1,475,000 to which they were not entitled. Authorities later seized the residence.
Moreover, in September 2017, Rose purchased a new BMW sedan for approximately $90,000. She made a $25,000 down payment and financed the remaining $65,000 through a loan she obtained from a third bank. In the loan application, Rose represented that she was an attorney who made more than $600,000 per year when she actually was not an attorney. She also used the Social Security number belonging to her husband’s former dental school classmate because she knew that using her real SSN would result in her having a low credit score, which may have disqualified her from receiving the loan. As a result, the loan was approved, and Rose received more than $65,000 to which she was not entitled. Authorities later seized the BMW.
This case was the product of an investigation by IRS Criminal Investigation. Assistant U.S. Attorneys Joseph Barton, Michael Tierney, Alyson Berg, and Kevin Khasigian prosecuted the case.
California State Prisoner Indicted for Child Sexual Exploitation OffensesRead the Press Release
FRESNO, Calif. — Nathaniel Ray Diaz, 21, of Greenfield, was arraigned today after a federal grand jury returned a three-count indictment that charged him with sexual exploitation of a minor, attempted receipt of a visual depiction of a minor engaged in sexually explicit conduct, and obstruction of justice, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, Diaz was serving a three-year sentence at Avenal State Prison in Kings County for committing lewd acts against a 12-year-old and making criminal threats with a gun. Between July 5, 2024, and Nov. 25, 2024, Diaz used prison phones, a CDCR-issued tablet, and prison-monitored ViaPath messaging equipment to communicate with the victim. Although Diaz had a 10-year no contact order for a minor, he placed thousands of calls to the minor. He instructed the minor to create and transmit to him images of the minor engaged in sexually explicit conduct. When Diaz learned that someone had contacted law enforcement about the communications, he directed people to delete evidence.
This case is the product of an investigation by Homeland Security Investigations, the California Department of Corrections and Rehabilitation Special Service Unit, and the Salinas Police Department. Assistant U.S. Attorney David Gappa and Trial Attorney McKenzie Hightower from the Department of Justice Child Exploitation and Obscenity Section are prosecuting the case.
If convicted, Diaz faces a mandatory minimum of 25 years in prison and a maximum statutory penalty of 50 years in prison and a fine of up to $250,000 for the sexual exploitation of a child, a mandatory minimum of 15 years in prison and a maximum of 40 years in prison and a fine of up to $250,000 for attempted receipt of a visual depiction of a minor engaged in sexually explicit conduct. If convicted of the obstruction of justice charge, Diaz faces a maximum of 20 years in prison and a fine of up to $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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.
Butte County Man Pleads Guilty to Sexual Exploitation of a ChildRead the Press Release
SACRAMENTO, Calif. — Javier Robert Barraza, 43, of Oroville, pleaded guilty on April 18, 2025, to sexual exploitation of a child, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, Barraza paid multiple women to sexually abuse young boys during video calls with him for his own sexual gratification. Barraza recorded these video calls, adding them to his collection of more than 1,000 videos and images of child pornography that he maintained on his phones and tablet. Barraza also shared his child pornography on internet sharing platforms and in text messages to individuals.
This case is the product of an investigation by Homeland Security Investigations, with assistance from the Redding Police Department, the Butte County Sheriff's Office, and the U.S. Forest Service. Assistant U.S. Attorney Veronica M.A. Alegría is prosecuting the case.
Barraza is scheduled to be sentenced by U.S. District Judge Dena Coggins on Aug. 29, 2025. Barraza faces a mandatory minimum sentence of 15 years in prison, a maximum statutory penalty of 30 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.
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.
Bakersfield Drug Trafficker Pleads GuiltyRead the Press Release
FRESNO, Calif. — Ramon Maldonado Jr., 33, of Bakersfield, pleaded guilty today to possessing with intent to distribute fentanyl, heroin, methamphetamine, psilocybin, and marijuana, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, on Aug. 10, 2023, law enforcement officers executed a federal search warrant at a residence in Bakersfield that served as a stash house. The residence was set up as a shop for the sale of psychedelic drugs (psilocybin mushrooms) and marijuana. A stolen firearm was found in the sales area. Maldonado was found in bed in one of the bedrooms, where agents located a bag of psilocybin mushrooms, a plastic tote containing psilocybin and marijuana wax and edibles, another tote containing jars and bags of marijuana, a clear plastic bag of heroin, a clear plastic bag containing fentanyl, bindles of fentanyl and heroin, and a Ruger .22‑caliber rifle with an inserted magazine. In another bedroom, agents located fentanyl, including a kilogram “brick” of fentanyl with a Louis Vuitton imprint. In the kitchen, agents found a clear plastic bag containing methamphetamine near five semi-automatic pistol magazines.
In total, agents seized 5.5 pounds of fentanyl, 25.9 pounds of psilocybin, 23.4 pounds of marijuana, 20 ounces of heroin, and 1.15 ounces of methamphetamine.
This case is the product of an investigation by the Drug Enforcement Administration with assistance from the Kern County Probation Office Gang Unit and Bakersfield Police Department. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
Maldonado is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on Aug. 4, 2025. Maldonado faces a mandatory minimum statutory penalty of 10 years in prison and maximum statutory penalty of life in prison, along with a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information, please visit Justice.gov/OCDETF.
United States Files Complaint Against Barco Uniforms and Its Suppliers, Alleging False Claims Act Violations in Connection with Underpaid Customs DutiesRead the Press Release
SACRAMENTO, Calif. – The United States has filed a complaint against Barco Uniforms Inc., Kenny Chan, David Chan, and companies operated and controlled by the Chans, alleging that they violated the False Claims Act by knowingly and improperly underpaying customs duties owed on imported apparel.
Barco sells apparel, including uniforms, to restaurants and healthcare providers, among others. Kenny and David Chan operate various companies that supply Barco with apparel manufactured overseas, including in the People’s Republic of China (PRC).
To import merchandise into the United States, the party making the entry must declare, among other things, the value of the goods, whether the goods are subject to duties, the applicable duty rate, and the amount of duties owed. U.S. Customs and Border Protection (CBP) relies on these representations to levy and collect duties on imported merchandise. A commercial invoice reflecting the value of the goods is required to support the declarations submitted to CBP.
The United States’ complaint alleges that the defendants conspired to knowingly and improperly avoid or decrease the payment of customs duties by undervaluing imported garments Barco purchased from foreign suppliers. Among other things, the government’s complaint alleges that the defendants used a double-invoicing scheme featuring false entry summaries presented to CBP that undervalued imported goods purchased by Barco, thereby reducing the duties paid on the merchandise. The government further contends that the defendants continued to underpay customs duties even after a third-party auditor advised Barco of risks associated with the underpayment of duties and recommended that Barco “double-check” duty calculations underlying prices that Barco agreed to with its foreign suppliers. In addition to Barco, Kenny Chan, and David Chan, the government’s complaint asserts claims against the following entities operated and controlled by the Chans: Able Allied Limited, Nathan Global Direct Inc., J&K Garment Inc., Mega Goodwill Ltd., JS Garment Co., and Superway Import & Export Inc.
“Those who import and sell foreign-made goods in the United States must comply with all trade laws,” said Acting Assistant Attorney General Yaakov M. Roth of the Justice Department’s Civil Division. “The Department will hold accountable parties who evade or underpay duties owed on imported merchandise.”
“We will not allow parties engaging in fraudulent schemes to underpay rightful customs duties to profit at the expense of the American public,” said Acting U.S. Attorney Michele Beckwith for the Eastern District of California.
“CBP is proud of the investigative work and analysis done on this case and will continue to work collaboratively with inter-agency stakeholders to safeguard our nation’s economic security,” said Director of Field Operations, David Salazar, of the CBP San Francisco Field Office.
The lawsuit was originally filed under the qui tam or whistleblower provisions of the False Claims Act by Toni Lee, the former Director of Product Commercialization at Barco Uniforms. The act permits private parties to file suit on behalf of the United States for false claims and to share in any recovery. The act also permits the United States to intervene in and take over responsibility for such an action, as it has done in this case.
Senior Trial Counsel Elspeth A. England of the Civil Division’s Commercial Litigation Branch, Fraud Section, and Assistant United States Attorney David E. Thiess of the Eastern District of California are handling the matter, with assistance provided by CBP and Homeland Security Investigations. The case is captioned United States ex rel. Lee v. Barco Uniforms Inc., et al., No. 2:16-CV-1805 (E.D. Cal.).
The claims asserted by the United States are allegations only, and there has been no determination of liability.
United States Files Complaint Against Barco Uniforms and Its Suppliers, Alleging False Claims Act Violations in Connection with Underpaid Customs DutiesRead the Press Release
The United States has filed a complaint against Barco Uniforms Inc. (Barco), Kenny Chan, David Chan, and companies operated and controlled by the Chans, alleging that they violated the False Claims Act by knowingly and improperly underpaying customs duties owed on imported apparel. Barco sells apparel, including uniforms, to restaurants and health care providers, among others. Kenny and David Chan operate various companies that supply Barco with apparel manufactured overseas, including in the People’s Republic of China (PRC).
“Those who import and sell foreign-made goods in the United States must comply with all trade laws,” said Acting Assistant Attorney General Yaakov M. Roth of the Justice Department’s Civil Division. “The Department will hold accountable parties who evade or underpay duties owed on imported merchandise.”
“We will not allow parties engaging in fraudulent schemes to underpay rightful customs duties to profit at the expense of the American public,” said Acting U.S. Attorney Michele Beckwith for the Eastern District of California.
“CBP is proud of the investigative work and analysis done on this case and will continue to work collaboratively with interagency stakeholders to safeguard our nation’s economic security,” said Director of Field Operations David Salazar of the U.S. Customs and Border Protection (CBP) San Francisco Field Office.
To import merchandise into the United States, the party making the entry must declare, among other things, the value of the goods, whether the goods are subject to duties, the applicable duty rate, and the amount of duties owed. CBP relies on these representations to levy and collect duties on imported merchandise. A commercial invoice reflecting the value of the goods is required to support the declarations submitted to CBP.
The United States’ complaint alleges that the defendants conspired to knowingly and improperly avoid or decrease the payment of customs duties by undervaluing imported garments Barco purchased from foreign suppliers. Among other things, the government’s complaint alleges that the defendants used a double-invoicing scheme featuring false entry summaries presented to CBP that undervalued imported goods purchased by Barco, thereby reducing the duties paid on the merchandise. The government further contends that the defendants continued to underpay customs duties even after a third-party auditor advised Barco of risks associated with the underpayment of duties and recommended that Barco “double-check” duty calculations underlying prices that Barco agreed to with its foreign suppliers. In addition to Barco, Kenny Chan, and David Chan, the government’s complaint asserts claims against the following entities operated and controlled by the Chans: Able Allied Limited, Nathan Global Direct Inc., J&K Garment Inc., Mega Goodwill Ltd., JS Garment Co., and Superway Import & Export Inc.
The lawsuit was originally filed under the qui tam or whistleblower provisions of the False Claims Act by Toni Lee, the former director of product commercialization at Barco Uniforms. The act permits private parties to file suit on behalf of the United States for false claims and to share in any recovery. The act also permits the United States to intervene in and take over responsibility for such an action, as it has done in this case.
Senior Trial Counsel Elspeth A. England of the Civil Division’s Commercial Litigation Branch, Fraud Section, and Assistant U.S. Attorney David E. Thiess for the Eastern District of California are handling the matter, with assistance provided by CBP and Homeland Security Investigations. The case is United States ex rel. Lee v. Barco Uniforms Inc., et al., No. 2:16-CV-1805 in U.S. District Court for the Eastern District of California.
The claims asserted by the United States are allegations only, and there has been no determination of liability.
Los Angeles Man Sentenced for Money LaunderingRead the Press Release
SACRAMENTO, Calif. — Daniel Hooker, 36, of Los Angeles, was sentenced today by U.S. District Judge Dena Coggins to 27 months in prison, for his role in a money laundering conspiracy, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, from August 2023 through March 2024, Hooker and three co‑conspirators conducted multiple financial transactions involving funds they believed to be proceeds of cocaine trafficking. Their belief as to the nature of the funds was based on representations of an individual working at the direction of law enforcement. On two different occasions in 2023 and 2024, Hooker met the individual in a parking lot in Rancho Cordova and accepted a total of $100,000 in cash to be laundered. After those meetings in Rancho Cordova, Hooker wired funds from a bank account he controlled into a bank account designated by the individual in an effort to complete the laundering. In total, the conspirators received approximately $940,000 in purported drug trafficking proceeds. Of that amount, the conspirators laundered approximately $811,000.
This case was the product of an investigation by the IRS Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorneys Matthew Thuesen and Whitnee Goins prosecuted the case.
New Jersey Woman Sentenced to 5 Years in Prison for Residential Marijuana Grows in Sacramento and Placer CountiesRead the Press Release
SACRAMENTO, Calif. — Xiu Ping Li, 48, residing in Skillman, New Jersey, was sentenced today by U.S. District Judge Daniel J. Calabretta to five years in prison and four years of supervised release for three counts of manufacturing marijuana, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, Li operated multiple residential marijuana grows in Sacramento and Placer Counties that yielded more than 8,000 marijuana plants and 21.4 pounds of processed marijuana found during the execution of search warrants in 2016 and 2017. Li also acknowledged using proceeds from a marijuana grow to buy another property to continue growing marijuana.
This case was the product of an investigation by the Drug Enforcement Administration, the Federal Bureau of Investigation, IRS Criminal Investigation, the Elk Grove Police Department, the Placer County Sheriff’s Office, and the Sacramento Police Department. Assistant United States Attorney Roger Yang prosecuted the case.