Eastern District of California

SACRAMENTO, Calif. — The U.S. Attorney’s Office has distributed a portion of forfeited narcotics proceeds to the El Dorado County Sheriff’s Department and District Attorney’s Office, United States Attorney Benjamin B. Wagner announced. The final payment was made in January 2014. In total, the Sheriff’s Department received $230,600, and the District Attorney’s Office received $32,900. Both agencies assisted in the investigation of an interstate marijuana-trafficking ring that resulted in a federal prosecution.

Cash, bank accounts, and a house on 10 acres of land in Placerville were forfeited from two El Dorado County defendants. Robert Edward Mulready, 50, of Placerville, and Duane Patrick Petersen, 40, of Shingle Springs, were charged in U.S. District Court with conspiring to cultivate marijuana and distribute it out-of-state. Last year, Mulready was sentenced to three and a half years in prison, and Petersen was sentenced to 22 months in prison.

These funds were made available through the U.S. DOJ equitable sharing program. The program is designed to enhance cooperation among federal, state, and local law enforcement agencies through the sharing of proceeds resulting from federal forfeitures. State and local law enforcement agencies generally receive equitable sharing revenues by participating directly with DOJ agencies in joint investigations leading to the seizure or forfeiture of property. The amount shared with state and local law enforcement agencies is based on the degree of the agencies' direct participation in the case.

U.S. Attorney Wagner stated: “I particularly want to thank the El Dorado County Sheriff’s Department and the El Dorado County District Attorney’s Office for their outstanding cooperation and investigative work. Asset forfeiture is a powerful tool that deprives criminals of the proceeds of their illegal activities; the equitable sharing program equips law enforcement to better protect their communities.”

Sheriff D’Agostini said, “We are grateful for the investigation and prosecution efforts by the United States Attorney Benjamin B. Wagner and his staff. The arrest, prosecution and asset forfeiture of proceeds from this criminal operation should send a strong message that federal and local law enforcement will not allow such operations to continue.”

El Dorado County District Attorney Vern Pierson commented: “This case is a prime example of county, state, and federal law enforcement agencies working together to make El Dorado County a safer place to live.”

This case was the product of an investigation by the Drug Enforcement Administration and the Western El Dorado County Narcotics Enforcement Team (WENET). Assistant U.S. Attorney Todd A. Pickles prosecuted the case, and Assistant U.S. Attorney Kevin C. Khasigian handled the forfeiture.

SACRAMENTO, Calif. — United States District Judge Troy L. Nunley sentenced Brent W. Wilder, 44, of Antelope, today to two years and nine months in prison, and on Tuesday, U.S. District Judge Lawrence K. Karlton sentenced Michelle Wright, 32, of Stockton, to three years in prison and one year of home confinement, United States Attorney Benjamin B. Wagner announced. The defendants were charged in separate cases with conspiracy to commit student loan fraud. Wright was also convicted of aggravated identity theft.

In the first case, according to court documents, between February 2009 and April 2012, Wilder and Michael J. Huddleston, 44, of Sacramento, obtained Federal Student Assistant (FSA) funds by recruiting more than 50 straw students to apply for aid and caused the fraudulent disbursement of more than $200,000. The straw students applied for FSA at American River College, Sacramento City College and Consumnes River College. These applications contained false statements regarding the eligibility of the applicant. For the most part, all of the students signed up by Wilder and Huddleston withdrew from classes shortly after receiving the funds or received failing grades. While some of those students may have used the funds for legitimate educational expenses, Wilder and Huddleston demanded approximately half of those funds for their own purposes. Wilder has been ordered to pay $19,411 in restitution.

In the second case, Michelle Wright was part of a similar conspiracy to commit student loan fraud. She and her co-defendants recruited straw students to sign up for college classes for the purpose of receiving financial aid funds. Some of the individuals agreed to have their identities used to commit fraud; other individuals had their personal information used to commit fraud without their consent.

“I’m proud of the work of OIG special agents and our law enforcement colleagues for holding Michelle Wright and Brent Wilder accountable for their criminal actions and for shutting down two more student aid fraud rings in California,” said Natalie Forbort, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Western Regional Office. “As these two fraud ringleaders and their co-conspirators who have been sentenced for participating in these fraud rings know, stealing student aid is a crime. Tracking down those who prey on this program and the innocent students who rely on it to make their dreams of a higher education a reality is a priority of our office.”

Huddleston is scheduled to be sentenced by United States District Judge Troy Nunley on March 6, 2013. He remains out of custody on a $100,000 bond.

Five others have been convicted and sentenced in Wright’s case. Janeigh Mendoza, 32, of Tracy, was sentenced to four years and three months in prison. The others, including Michelle Wright’s husband Kenneth Wright, were sentenced to terms of probation. Michelle Wright was ordered to pay $129,171 in restitution.

These cases are the product of investigations by the United States Department of Education, Office of Inspector General. Assistant United States Attorney Jared C. Dolan is prosecuting the cases.

SACRAMENTO, Calif. — Kari Sonovich, 42, was arrested today at her home in Meadow Vista, United States Attorney Benjamin B. Wagner announced. On January 31, 2014, a federal grand jury returned a three-count indictment, charging Sonovich with mail fraud. The indictment was unsealed today after her arrest. Sonovich is scheduled to be arraigned today in federal court in Sacramento at 2:00 p.m.

According to court documents, between July 2008 and April 2009, Sonovich recruited investors to invest with her Las Vegas company, B&B Consulting Group LLC, by telling them she could place their funds with an international trader who operated at an extremely high level, promising returns of up to 500 percent every 90 days. When investors deposited funds with her, Sonovich kept some or all of the funds for herself. The indictment alleges that Sonovich received more than $3 million from investors. To date, no investor has received the promised returns, and in most or all instances, no investor has received any of their initial investment back.

Some investors in Sonovich’s scheme became involved at the same time that an earlier investment fraud scheme in which they had invested was collapsing. Anthony Vassallo and Kenneth Kenitzer ran that Folsom-based Ponzi scheme through their company Equity Investment Management & Trading (EIMT). Both were convicted for that scheme, Vassallo is serving a 16-year prison sentence and Kenitzer is scheduled to be sentenced on February 14, 2014.

This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Jean M. Hobler is prosecuting the case.

If convicted, Sonovich faces a maximum statutory penalty of 20 years in prison and a fine of up to twice the losses resulting from the scheme. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — A marijuana cultivators was sentenced and two entered guilty pleas today for their involvement in separate large-scale marijuana cultivation cases involving private lands in Stanislaus, Mariposa, Fresno, and Kern Counties, U.S. Attorney Benjamin B. Wagner announced.

920 Marijuana Plants/Processed Marijuana/Assault Rifle Seized from Kern County Ranch (1:12-cr-299 LJO)

Jorge Alberto Torres, 28, of Bakersfield, was sentenced to three years and 10 months in prison for conspiring to cultivate, distribute and possess with intent to distribute 920 marijuana plants grown on a private ranch in Kern County without permission or knowledge of the landowner. According to court records, agents seized a loaded assault firearm and three pounds of processed marijuana. In sentencing Torres, U.S. District Judge Lawrence J. O’Neill also considered evidence that Torres had in the past been captured on trail cameras in the Sequoia National Forest making supply drops to another marijuana cultivation site in the Long Meadow Creek area in Tulare County. Upon completion of his prison term, Torres is subject to deportation to Mexico.

This case was the product of an investigation by the DEA, the U.S. Forest Service, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Kern County Sheriff’s Office.

907 Marijuana Plants/Firearm Seized from Stanislaus County Riverside Grow
(Case No. 1:12-cr-342 AWI)

Sengphachanh Boungnavong, 34, of Fresno, pleaded guilty to conspiring to cultivate, distribute and possess with intent to distribute 907 marijuana plants grown in rural Newman, beside the San Joaquin River. During the execution of a search warrant there, drug agents found Boungnavong at the cultivation site, and 907 marijuana plants, a handgun, respirators, motion detectors, chemicals, fertilizers, and purportedly medical marijuana recommendations from a doctor who has been charged in another federal case with the unlawful distribution of other controlled substances.

Boungnavong faces a maximum prison sentence of 20 years and a fine of up to $1 million. He is scheduled for sentencing on April 28, 2014. This case is the product of an investigation by the DEA and the Stanislaus Drug Enforcement Agency, a multi-agency drug task force in Modesto.

6,993 Marijuana Plants/Firearms Seized from Mariposa County Grow
(Case No. 1:13-cr-174 AWI-BAM)

Salvador Gonzalez Farias (“Gonzalez”), 34, of Guerrero, Mexico, pleaded guilty to being an illegal alien in possession of a firearm seized from a rural residential parcel in Mariposa County where law enforcement officers located 6,993 marijuana plants. According to court documents, the grow site was located by Mariposa County Sheriff’s deputies responding to a call for suspected cockfighting. A follow-up search warrant resulted in the seizure of marijuana plants from indoor and outdoor locations on the property, along with two rifles.

Gonzalez is scheduled to be sentenced on April 14, 2014, by United States District Judge Anthony W. Ishii. He faces a maximum prison sentence of 10 years, a fine of up to $250,000, and deportation to Mexico upon completion of any prison term imposed. This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Mariposa County Sheriff’s Department.

Both Gonzalez and Boungnavong’s actual sentences will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

Assistant U.S. Attorney Karen A. Escobar is handling the above marijuana prosecutions.

FRESNO, Calif. — Mark Anthony Carballo, 37, of Fresno, pleaded guilty today to being a felon in possession of a firearm after a fully automatic AK-74 machine gun, which had been stolen from Fort Irwin, and a short-barreled shotgun were found in his vehicle, United States Attorney Benjamin B. Wagner announced.

On July 15, 2011, 26 fully automatic AK-74 machine guns were stolen from the Fort Irwin military base; the investigation into the theft has recovered 14 machine guns so far.

According to court documents, on June 20, 2012, the stolen machine gun and sawed-off shotgun were discovered in the trunk of a vehicle that was repossessed from Carballo. Agents searched his girlfriend’s apartment with her consent after Carballo had said that there was a gun in the apartment. Agents found a Bersa Model Thunder 380, .380-caliber pistol inside of a backpack that also had 18 rounds of .380-caliber ammunition and a round of 5.45 ammunition for an AK-74.

“Criminals who unlawfully possess machine guns will gain ATF’s full attention,“ said Bureau of Alcohol, Tobacco, Firearms and Explosives, Special Agent in Charge Joseph M. Riehl.  “Due to ATF’s diligence and hard work, we are very fortunate to recover a significant amount of fire power from these criminals before they were used to threaten the safety of others.”

This case is the product of an investigation by ATF with assistance from the Clovis and Fresno police departments and the US Marshals Service. Assistant United States Attorney Kimberly A. Sanchez is prosecuting the case.

In a related case, 13 defendants have pleaded guilty to either possession of one of the stolen machines, concealing a felony, or making false statements to a federal law enforcement officer. Eleven defendants received prison sentences ranging from six months to four years. Two defendants were sentenced to terms of probation for concealment of a felony. The U.S. Army soldiers accused of conspiring to steal the weapons from Fort Irwin were convicted under the Uniform Code of Military Justice.

Carballo is scheduled to be sentenced by Judge Lawrence J. O'Neill on May 12, 2014. Carballo 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

SACRAMENTO, Calif. — Jun Michael Dirain, 41, of Antelope, pleaded guilty today to conspiracy to commit wire fraud in connection with a mortgage fraud scheme, United States Attorney Benjamin B. Wagner announced.

According to court documents, Delta Homes and Lending Inc., a real estate and mortgage lending company, employed Dirain and other co-defendants in the case. Between October 2004 and May 2007, Dirain, a loan processor, conspired with others to obtain home loans from mortgage lenders based upon loan applications and supporting documents that falsely represented the borrowers’ assets and income, liabilities and debts, employment status, and citizenship status. As part of the scheme, Dirain and his co-conspirators provided money to borrowers in order to temporarily inflate the borrowers’ assets and bank account balances until the lenders approved the loans. Then the borrowers returned the money to the defendants. The aggregate sales price of the homes involved in the conspiracy was in excess of $10 million. As a result of the defendants’ actions, mortgage lenders and others suffered losses of at least $4 million.

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

Dirain is scheduled to be sentenced by Judge William B. Shubb on April 28, 2014. Dirain faces a maximum statutory penalty of 30 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

A status conference is scheduled for February 10, 2014, for the remaining defendants, including Moctezuma Tovar, Manuel Herrera, Ruben Rodriguez, and Jaime Mayorga, all licensed real estate agents residing in Sacramento; Sandra Hermosillo, of Woodland, formerly a loan officer; and Christian Parada Renteria, of Sacramento, formerly a loan officer.

SACRAMENTO, Calif. — A federal grand jury returned a six-count indictment today against Nicholas J. Capos Jr., 63, of Granite Bay, charging him with one count of conspiracy to distribute, dispense, and possess with intent to distribute oxycodone, and five counts of illegal distribution and dispensation of oxycodone, United States Attorney Benjamin B. Wagner announced.

According to court documents, Capos participated in a conspiracy to distribute the drug oxycodone. He is also charged with the distribution and dispensation of oxycodone outside the usual course of professional medical practice and without legitimate medical purposes. The indictment alleges that he illegally dispensed 1,590 30-milligram oxycodone pills in the summer of 2012.

U.S. Attorney Wagner said: “The misuse of oxycodone and other prescription painkillers is responsible for thousands of deaths every year. In this case, the government alleges that a licensed physician dispensed these powerful and deadly painkillers without a legitimate medical purpose. The law provides a consequence for persons who prescribe narcotics outside the scope of legitimate medicine.”

Drug Enforcement Administration Special Agent in Charge Jay Fitzpatrick stated: “Physicians who prescribe powerful prescription drugs without a legitimate medical purpose and outside the usual course of professional practice are not acting as doctors nor are they acting in the best interest of the public. DEA will aggressively pursue those who put the health and safety of the public at risk and contribute to the epidemic of prescription drug abuse.”

This case is the product of an investigation by the DEA, the California Medical Board, and the California Attorney General’s Bureau of Medi-Cal Fraud and Elder Abuse. Assistant United States Attorney Paul Hemesath is prosecuting the case.

If convicted, Capos faces a maximum statutory penalty of 20 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — Shawn Cameron, 36, his wife Vanessa Mojarro Cameron, 26, and Jonathan Mojarro, 24, all of Hanford, and Carlos Enriquez, 34, of Lemoore, pleaded guilty today to drug trafficking offenses, United States Attorney Benjamin B. Wagner announced.

Forty-three defendants were charged in this case. Seven of the defendants are set to proceed to trial on March 11, 2014, before Judge O’Neill, and two have not yet appeared in federal court. All defendants were members or associates of the Nuestra Familia (NF). NF is a violent Hispanic prison gang based within the California prison system whose members exert control over street-level Norteño gang members engaged in drug trafficking and violent crime.

“Shawn Cameron was the leader of one of the most dangerous drug trafficking organizations in the Central Valley,” U.S. Attorney Wagner said. “Today’s guilty pleas mark a very significant step in the efforts of federal, state, and local law enforcement to disable the NF organization.”

“This investigation is the essence of great law enforcement collaboration and teamwork in removing narcotics from our communities,” said Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Joseph M. Riehl. “ATF and our law enforcement partners stay committed to identifying, apprehending, and prosecuting dangerous criminals and this investigation exemplifies this commitment.”

“The cohesiveness displayed by the numerous law enforcement agencies during this gang investigation is a testament of our commitment to uniting our resources to achieve a common goal. This investigation resulted in the successful identification and arrest of those who engage in trafficking conspiracies which erode our communities,” said Special Agent in Charge Monica M. Miller of the Sacramento division of the FBI. “Drug trafficking networks continue to threaten the safety of the public without regard. The FBI will continue collaborating on large-scale and long term intensive investigations to disrupt and dismantle these violent organizations.”

According to court documents, between December 2009 and June 2010, Shawn Cameron was the commander for the Kings County regiment of Nuestra Familia. Cameron worked with a co-conspirator to bring in methamphetamine from Mexico and distribute it in half-pound to multi-pound quantities to other regiments in and outside of California. During that time, Cameron and co-conspirators obtained more than 45 pounds of methamphetamine that was distributed or intended to be distributed to various NF regiments throughout California, Utah and other states.

In April 2010, Vanessa Cameron used her phone to assist her husband in arranging to receive payment for methamphetamine and to arrange the delivery of methamphetamine.

In 2009 and 2010, Mojarro and Enriquez were members of the Kings County NF regiment. They assisted the NF by picking up, delivering and selling methamphetamine and cocaine.

This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kings County Narcotic Task Force, the Federal Bureau of Investigation, the Drug Enforcement Administration, the California Department of Justice Bureau of Narcotic Enforcement, and the California Department of Corrections and Rehabilitation. These agencies received the assistance of the U.S. Marshals Service, the police departments of Hanford, Lemoore, and Corcoran, the Kings County Sheriff’s Office, and the California Highway Patrol. Assistant United States Attorneys Kimberly A. Sanchez, Kathleen A. Servatius, and Melanie L. Alsworth are prosecuting the case.

Vanessa Cameron is scheduled to be sentenced by United States District Judge Lawrence J. O’Neill on April 7, 2014. Shawn Cameron, Mojarro, and Enriquez are scheduled to be sentenced by Judge O’Neill on April 21, 2014. Shawn Cameron, Mojarro, and Enriquez face 10 years to life in prison and a $4 million fine. Vanessa Mojarro Cameron faces a maximum statutory penalty of four years in prison and a $250,000 fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

Shawn Cameron Plea
Vanessa Cameron Plea
Enriquez Plea

FRESNO, Calif. – James Lee Lankford, 74, formerly a Modesto-based real estate broker, was sentenced today by Senior U.S. District Judge Anthony W. Ishii to 10 years in prison for orchestrating an 11-year mortgage fraud scam that looted elderly homeowners and lending institutions of close to $10 million dollars, United States Attorney Benjamin B. Wagner announced.

Lankford’s co-defendant, Jon Vance McDade, 49, formerly of Modesto, was sentenced to one year of home detention to be followed by a five-year term of supervised release, in connection with the same mortgage fraud scam. (McDade and Lankford have married and McDade is now known as Jon Vance Lankford.) The two were ordered to forfeit their interests in various properties and to pay $1,443,826 in restitution to the victims of the fraud scheme.

According to court documents, Lankford, who operated Century 21-Apollo Realty as a real estate agent and broker, fraudulently induced elderly property owners to sell their homes to him and to provide the financing for the purchase. In return, Lankford agreed to make interest-only payments and to pay the principal at a future date. Lankford fraudulently induced the elderly sellers into believing that their financing was secured by the property itself by filing deeds with the county recorder’s office. Unbeknownst to the elderly sellers, Lankford also obtained mortgages from lending institutions to finance the purchase of the same properties. In order to obtain the mortgages, Lankford would not inform the lending institutions that he had obtained seller-backed financing. Lankford and co-defendant McDade also made other material misrepresentations on the loan applications and in some instances, submitted falsified documents regarding monthly income to ensure approval for the loans.

In many instances, Lankford then refinanced the properties with another lending institution after filing fraudulent deeds purportedly showing that the elderly property owners had been paid in full. After eliminating the seller’s lien on the property, Lankford would then obtain refinancing and draw out any equity that had accumulated in the property. Lankford, having refinanced the property, and in some instances having obtained additional financing by reselling the property to co-defendant McDade, would then allow the property to go into foreclosure, or would sell it as a short sale.

“James Lankford preyed on elderly homeowners in the course of his scheme,” U.S. Attorney Wagner said. “The sentence imposed in this case appropriately reflects the cruelty of Lankford’s conduct.”

“James Lee Lankford participated in a fraudulent scheme that preyed on elderly victims and the banking industry causing millions of dollars in losses to those individuals and to Fannie Mae,” said Michael P. Stephens, Acting Inspector General for the Federal Housing Finance Agency’s Office of Inspector General (FHFA-OIG). “We will continue to work with our law enforcement partners to dismantle such schemes and hold all involved accountable, just as Lankford was held accountable.”

“Lankford’s elaborate scheme was damaging not only to individual victims but also to lenders and the local economy,” said Special Agent in Charge Monica M Miller of the Sacramento division of the FBI. “He used vulnerable, elderly citizens as mere pawns in his elaborate scheme, carelessly and irreparably damaging their financial wellbeing while defrauding lenders to elevate his own lifestyle, lining his pockets with ill-gotten gains. This case exemplifies the importance of partnership among federal and local law enforcement agencies for successful investigation and pursuit of justice for victims of financial crime.”

This case was the product of an investigation by the FBI, the FHFA-OIG, and the Stanislaus County District Attorney’s Office. Assistant U.S. Attorneys Christopher Baker and Michael Tierney prosecuted the case.

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

FRESNO, Calif. — Charles Conrad Mahaffey, 23, of Clovis, was sentenced today to 21 months in prison for aiming a laser pointer at a Fresno County Sheriff’s Office helicopter, U.S. Attorney Benjamin B. Wagner announced.

Mahaffey’s sentence follows his guilty plea last November. According to court documents, Mahaffey deliberately tracked and struck Eagle 1, a Fresno County Sheriff’s Office helicopter, with a powerful red laser while the aircraft was assisting ground units on a call for a domestic disturbance. As a result, the pilot was distracted by the intense light and forced to break away from the call. The pilot reported the laser strikes to Air Traffic Control at the Fresno Yosemite International Airport and, with the help of the Clovis Police Department, was able to locate the source of the laser and identify Mahaffey as the suspect. In pleading guilty, Mahaffey admitted he knew it was a crime to point the laser at an aircraft but stated he, “just can’t help himself from doing stupid things.”

“Shining a hand-held laser at an aircraft in flight is a serious, illegal act that puts both air crew and the public on the ground at serious risk,” said Special Agent in Charge Monica M. Miller of the Sacramento division of the FBI. “Hand-held lasers are well labeled to inform owners of their potential risk to health and safety, cautioning owners against improper use. Ignorance is no excuse for such reckless action and we are committed to working with our law enforcement partners to locate and identify individuals who have total disregard for life and safety.”

“The Fresno County Sheriff’s Office Air Support Unit provides critical support to the public and to all law enforcement agencies in the region,” stated Fresno County Sheriff Margaret Mims. “The illegal use of a laser creates a severe danger to our deputies in the helicopter and in turn, the public at large. This crime could have had disastrous results.”

Laser beams pose a serious safety hazard to flight operations. The focused beams of a laser remain powerful at extended viewing distances and can expose pilots and their crew members and passengers to radiation levels above those considered to be flight safe. Brief exposure to even a relatively low-powered laser beam can cause discomfort and temporary visual impairments such as glare, flash blindness and after images. Prolonged exposure to high-powered laser beams can and has resulted in permanent eye injury. In 2013, there were 3,960 laser illumination incidents reported to the Federal Aviation Administration, an average of 10.85 strikes per day. Airports in the 34 counties of the Eastern District of California reported 94 laser strikes in 2013, or more than seven laser illumination incidents per month. The Fresno Yosemite International Airport and Meadows Field Airport reported the highest number of laser illuminations followed by the Sacramento International Airport.

This case was the product of an investigation by the Federal Bureau of Investigation, Clovis Police Department, and Fresno County Sheriff’s Office. Assistant U.S. Attorney Karen A. Escobar prosecuted the case.

FRESNO, Calif. — Manjot Nanner , 32, a resident of Fresno and Canadian citizen, pleaded guilty today to conspiring to distribute cocaine, United States Attorney Benjamin B. Wagner announced.

According to court documents, Nanner helped set up a Fresno trucking company intending that cocaine would be concealed in legitimate cargo to be shipped to Canada. As part of the conspiracy, on September 21, 2012, another person was sent to Los Angeles and obtained eight kilograms of cocaine. Law enforcement seized that cocaine and arrested Nanner and others. A follow-up search warrant on September 21, 2012, at the Los Angeles residence resulted in the seizure of an additional 40 kilograms of cocaine.

Nanner has been in custody without bail since his arrest on September 21, 2012. He was originally ordered to be released on bond. However, the Court reversed its order when the government established that the Nanner’s purported ties to Fresno included a sham marriage.

This case is the product of an investigation by the Organized Crime Drug Enforcement Task Force with assistance from the Drug Enforcement Administration, and the Fresno Police Department, with assistance from the Fontana and Vernon Police Departments. Assistant United States Attorney Kevin Rooney is prosecuting the case.

Nanner is scheduled to be sentenced by Judge Anthony W. Ishii on April 7, 2014. Nanner faces a maximum statutory penalty of life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.

Plea Agreement

FRESNO, Calif. — Adam Christopher Vega, 30, of Bakersfield, was arrested late Friday in Bakersfield after being charged in a seven-count federal indictment alleging that he and four co-conspirators trafficked in methamphetamine and marijuana, United States Attorney Benjamin B. Wagner announced.

The superseding indictment, returned by a federal grand jury in Fresno on January 16, 2014, charges Vega and co-defendants Baltazar Castaneda Garcia, 23; Jesus Manuel Peraza Ruiz, 54; and Robert Anthony Canchola, 26, all of Bakersfield, with conspiring to distribute methamphetamine. Those four persons and Eduardo Ortega Chavez, 32, of Oakland, are also charged with conspiring to manufacture and distribute marijuana.

According to court documents, Vega was the owner of the California’s Best Cooperative Inc., a medical marijuana dispensary in Bakersfield during the time he was allegedly trafficking in methamphetamine and marijuana. Court documents indicate that the defendants trafficked in marijuana and other controlled substances between Kern County and Oakland where defendant Chavez maintained a marijuana grow operation. In October 2013, Ruiz was stopped in Bakersfield with approximately six pounds of methamphetamine concealed in his vehicle as he was returning from Southern California. Garcia and Canchola are also charged with possession of methamphetamine and manufacturing marijuana in connection with substances that were seized during searches at three residences in Bakersfield on January 8, 2014, including two that contained indoor marijuana grow operations.

This case is the product of an investigation by the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Bakersfield Police Department, Kern County Sheriff’s Office, and Kern County Probation Department. Assistant United States Attorney Laurel J. Montoya is prosecuting the case.

Vega will make his initial appearancebefore a U.S. Magistrate Judge in Bakersfield today. Defendant Ruiz was previously ordered detained in this case. Defendants Garcia and Canchola are temporarily detained pending a detention hearing today at 1:30 p.m. in Fresno. An arrest warrant has been issued for defendant Chavez.

If convicted, Vega, Garcia, Ruiz and Canchola face a maximum statutory penalty of 10 years to life in prison and a $10 million fine. If convicted, Chavez faces a maximum statutory penalty of five to 40 years in prison and a $5 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — Bradley James Ghilarducci, 66, of Bakersfield, pleaded guilty today to receipt of child pornography, United States Attorney Benjamin B. Wagner announced.

According to court documents, Ghilarducci admitted that between February and August 2012, he received images of minors engaged in sexual activity through the Internet.

This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney Michael G. Tierney is prosecuting the case.

Ghilarducci is scheduled to be sentenced by Judge Lawrence J. O'Neill on April 14, 2014. Ghilarducci faces a statutory penalty of five years to 20 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.

Plea Agreement

FRESNO, Calif. — Alejandro Manuel Perez, 28, of Visalia, was sentenced today by United States District Judge Lawrence J. O'Neill to 10 years in prison for participating in a sex trafficking venture involving a minor, United States Attorney Benjamin B. Wagner announced.

According to court documents, between February 4, 2010, and March 13, 2010, Perez knowingly benefitted, financially or otherwise, from his participation in a sex-trafficking venture which involved a minor female victim. Perez was charged with sex trafficking on March 8, 2012, and pleaded guilty to this charge on October 30, 2013. He has been in custody since March 27, 2012.

“The FBI and its partners work tirelessly to identify and rescue young sex trafficking victims, investigating these deplorable crimes to ensure that those who commercially exploit children face justice,” said Special Agent in Charge Monica M. Miller of the FBI’s Sacramento Field office. “By disrupting these illicit ventures and removing traffickers from our communities, we hope to offer the victims a chance at a normal life and to prevent other children from falling prey to such predators who feed on the vulnerabilities of the young.”

This case was the product of an extensive investigation by the Fresno Office of the FBI and the Visalia Police Department. Assistant United States Attorney Brian W. Enos is prosecuting the case.

SACRAMENTO, Calif. — United States District Judge Lawrence K. Karlton sentenced Robert Daniel Castillo, 50, of Vacaville, today to one year and one day in prison for workers’ compensation and disability benefits fraud, United States Attorney Benjamin B. Wagner announced. Judge Karlton ordered Castillo to pay $138,997 in restitution.

This case was the product of an investigation by the United States Postal Service, Office of Inspector General and the Social Security Administration, Office of Inspector General. Assistant U.S. Attorney Jared C. Dolan prosecuted the case.

“The American public expects Postal Service employees to be diligent and honest. Through its investigations, the Office of Inspector General helps to maintain that integrity. When US Postal Service employees’ actions turn to criminal violations, such as the abuse of the workers’ compensation program, those individuals are aggressively investigated by USPS OIG Special Agents,” said Scott Pierce, Special Agent in Charge, US Postal Service Office of Inspector General, Pacific Area Field Office.”

According to court documents, on October 15, 1998, Castillo, while working for the U.S. Postal Service in Fresno, claimed that he had injured his lower back while on the job. He submitted a claim for workers’ compensation benefits. For more than 10 years, Castillo received federal workers’ compensation benefits based on that injury. Castillo also received Social Security Disability and Veterans Benefits based on claims of 100 percent disability. Altogether, Castillo received more than $6,000 a month based on his claimed disability. Castillo was observed playing basketball and softball, driving, shopping, washing a boat, performing yard work, and performing volunteer work. At doctor’s appointments and meetings with officials from the Department of Labor and Social Security, Castillo claimed an inability to do all of these things.

A federal grand jury indicted Castillo on July 19, 2012, and on April 24, 2013, he pleaded guilty to theft of United States property and false statements made to the government in seeking compensation payments the charges.

SACRAMENTO, Calif. — Antwane Pierre Burrise, 33, of Stockton, pleaded guilty today to being a felon in possession of firearms, possessing unauthorized access devices, possessing identifications of others, possessing stolen U.S. mail, bank fraud and aggravated identity theft, United States Attorney Benjamin B. Wagner announced.

This case is the product of an investigation by the United States Postal Inspection Service and the Stockton Police Department. Assistant United States Attorney Michelle Rodriguez is prosecuting the case.

According to court documents, on October 24, 2013, the Stockton Police Department received reports of a suspicious vehicle in a Stockton neighborhood. The responding officer later identified Burrise as the only occupant of the vehicle. Burrise possessed a fully loaded extended magazine Glock pistol in the driver's floor area where he sat in the vehicle. Also found in the car were hundreds of items of stolen U.S. Mail bearing the names of at least 300 different San Joaquin County victims. Burrise also possessed an extended magazine AK-47 in the trunk of his vehicle and ammunition for his assault rifle. Burrise further possessed more than 15 identifications of others, more than 25 credit and debit cards of others, and merchandise purchased using the credit and debit cards of others.

Burrise is scheduled to be sentenced on April 9, 2014, by United States District Judge Kimberly J. Mueller. He faces up to 10 years in prison for the felon in possession of charge, up to 30 years in prison for bank fraud, two years in prison consecutive to any other sentence for aggravated ID theft, up to 10 years in prison for access device fraud, up to 15 years in prison for possession of ID documents of others, and up to five years for possession of stolen U.S. Mail. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — Minerva Sanchez, 47, was arrested at her home in Fremont today for conspiring to commit bank fraud in connection with a fraudulent short-sale scheme, United States Attorney Benjamin B. Wagner announced.

The indictment, unsealed today, was returned by a federal grand jury in Fresno on December 19, 2013. Sanchez was arraigned today in San Jose federal district court and pleaded not guilty to the charges. She is scheduled to appear in Fresno before U.S. Magistrate Judge Barbara A. McAuliffe on February 10, 2014.

According to court documents, in March 2010, Sanchez, a licensed real estate agent, represented Agustin Simon, 52, of Gustine, in the sale of his home in Patterson. Sanchez recommended that he undertake a short-sale of his home using her son as a straw buyer. Simon submitted to Tri Counties Bank and Freddie Mac fraudulent short-sale applications that caused them to approve the charge-off of funds for the short-sale of his home. Sanchez and Simon falsely claimed that the transaction was “arm’s length,” and the made false statements about Simon’s assets and ownership of other real estate. Sanchez wrote a “hardship letter” for Simon to include with the short-sale application that misrepresented his inability to make his monthly mortgage payments. They made other false statements in order to conceal their agreement that Simon would provide Sanchez’s son with the money for the short-sale but ultimately would regain ownership of his home following the short-sale.

With Sanchez’s knowledge, Simon provided her son with $355,000, the purchase price of the home. In addition to her commission as the listing agent, Sanchez received 75 percent of the commission paid to her son’s real estate agent. As a result of her conduct, Tri Counties Bank suffered a loss of $247,000 and Freddie Mac lost $107,348.

On June 10, 2013, Simon, pleaded guilty to conspiring to commit bank fraud in connection with this scheme. He is scheduled to be sentenced on October 6, 2014, before U.S. District Judge Lawrence J. O’Neill.

“The alleged actions of Minerva Sanchez were harmful to Freddie Mac and the taxpayers,” said Michael P. Stephens, Acting Inspector General, Federal Housing Finance Agency (FHFA). “Every fraud causes harm or loss and we will work with our law enforcement partners to stop any and all criminal activity.”

This case is the product of an investigation by the FHFA Office of Inspector General and the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Christopher Baker is prosecuting the case.

If convicted, Sanchez faces a maximum statutory penalty of 30 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — Two defendants were sentenced today for child pornography offenses, United States Attorney Benjamin B. Wagner announced.

“Every time a sexually explicit image of a minor is produced, transmitted, or viewed, a child is victimized,” said Ray Greenlee, assistant special agent in charge for HSI San Francisco. “These sentences send a strong message to online child sex predators that there is a high price to pay for their actions.  HSI will continue to work tirelessly to seek justice for those who mistakenly believe the Internet makes them invisible and invincible.”

Kern County Man Sentenced to More than 12 Years in Prison
(1:13-cr-265 AWI)

Senior United States District Judge Anthony W. Ishii sentenced Clark Alan Tyler, 53, of Rosamond, to 12 years and seven months in prison for distribution of child pornography.

According to court documents, between February 2012 and March 2013, Tyler received and distributed more than 600 images depicting minors engaged in sexually explicit conduct. The images also involved the portrayal of sadistic, masochistic, and other depictions of violence, and included depictions of pre-pubescent minors. Tyler was indicted on June 27, 2013, charged with receipt and distribution of child pornography and pleaded guilty to this charge on November 25, 2013. He has been in custody since July 3, 2013.

Fresno Man Sentenced to Six and a Half Years in Prison for Distributing Child Pornography
(1:12-cr-083 AWI)

Judge Ishii sentenced Daniel Oluwa Sesan Leitch, 31, of Fresno, to six and a half years in prison for distribution of child pornography.

According to court documents, from December 18, 2011, through December 20, 2011, Leitch received more than 600 images depicting minors engaged in sexually explicit conduct. The images also involved the portrayal of sadistic, masochistic, and other depictions of violence, and included depictions of pre-pubescent minors. Leitch was indicted on October 23, 2013, and in March  2012, he went to trial but pleaded guilty on the second day of trial. He was remanded into custody after sentencing today.

These cases were the product of investigations by the Central California Internet Crimes Against Children Task force with the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney Brian W. Enos prosecuted both cases, and Special Assistant United States Attorney Ian P. Whitney was co-prosecutor on the Leitch case.

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

FRESNO, Calif. —Phally Thach, 30, of Modesto, pleaded guilty today to one count of conspiracy to structure cash transactions and one count of aggravated structuring, United States Attorney Benjamin B. Wagner announced.

According to court documents, Phally Thach and co-conspirators obtained prescriptions for oxycodone and hydrocodone from pharmacies in Modesto and then transported and mailed the pills to other states, including Washington, for distribution on the black market. In addition, Phally Thach opened bank accounts at Bank of America into which co-conspirators deposited the cash proceeds of the oxycodone and hydrocodone sales for $10,000 or less. After receiving the cash deposits, Phally Thach withdrew the cash from those accounts in amounts of $10,000 or less to attempt to prevent Currency Transactions Reports from being filed by the banks on her cash deposits. Currency Transactions Reports are reports prepared by financial institutions for any transactions involving more than $10,000 in cash. These reports are filed with the Department of Treasury and are made available to law enforcement.

This case is being brought as part of Operation Footprint, a nationwide law enforcement initiative led by the U.S. Attorney’s Offices, the Internal Revenue Service- Criminal Investigation, the Drug Enforcement Administration, and the United States Postal Inspection Service. Operation Footprint targets large drug trafficking organizations by identifying the transfer of drug proceeds through financial institutions, bulk cash smuggling and other forms of money transfers. Operation Footprint is focused on bringing criminal charges based on Bank Secrecy Act violations in addition to violations of the Controlled Substances Act and the Money Laundering Control Act.

This case is also the product of the Organized Crime Drug Enforcement Task Force (OCDETF), a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies. Assistant U.S. Attorney Grant B. Rabenn is prosecuting the case.

Phally Thach is scheduled to be sentenced by United States District Judge Anthony W. Ishii on April 7, 2014. She faces a maximum statutory penalty of five years in prison and a $250,000 criminal fine for conspiracy and 10 years in prison and a $500,000 criminal fine for structuring. 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.

Plea Agreement

FRESNO, Calif. — Victor Torres, 28, of Selma, was sentenced today by United States District Judge Lawrence J. O'Neill to five years and 10 months in prison for methamphetamine trafficking, United States Attorney Benjamin B. Wagner announced.

According to court documents, Torres pleaded guilty to a methamphetamine trafficking conspiracy that spanned May 2012 through December 2012. In June 2012, wiretap information led investigators to stop a vehicle in which Torres was a passenger. The car was impounded and a subsequent search revealed approximately one pound of methamphetamine. In December 2012, a search warrant was executed at Torres’s Selma residence, and approximately two ounces of methamphetamine were seized.

This case was the product of an investigation by the Drug Enforcement Administration and the Fresno County Sheriff’s Department with assistance from the Bakersfield Police Department and the Kings County Sheriff’s Department. Assistant United States Attorney Kevin Rooney prosecuted the case.

Torres was ordered to begin serving his sentence on March 5, 2014. On October 7, 2013, co-defendant Daniel Ochoa, 36, of Fresno, was sentenced to 55 months in prison.

FRESNO, Calif. — Senior United States District Judge Anthony W. Ishii sentenced Phillip Jacob Shinen, 33, formerly of Madera, today to 27 months in prison for wire fraud relating to the fraudulent sale of websites, United States Attorney Benjamin B. Wagner announced.

According to court documents, between February 2007 and March 2008, Shinen advertised and sold various websites to the public. He guaranteed to purchasers that the websites would produce a certain threshold income and promised that he would train purchasers to use the websites. The websites, however, did not generate the level of income or Internet traffic claimed by Shinen. In order to make it difficult for the website purchasers to contact him, Shinen used a number of aliases.

This case was the product of an investigation by the Federal Bureau of Investigation’s Cyber Crimes Task Force, which is made up of law enforcement officers from the FBI, Fresno Police Department and the Fresno County Sheriff’s Office. Assistant United States Attorney Henry Z. Carbajal III prosecuted the case.

FRESNO, Calif. — Monica Nanette Hernandez, 41, of Fresno, pleaded guilty today to one count of filing false income tax returns, one count of wire fraud, and one count of aggravated identity theft, United States Attorney Benjamin B. Wagner announced.

According to court documents, Hernandez worked for the IRS Service Center in Fresno as a part-time data entry clerk. While employed in that capacity, Hernandez filed three tax returns for herself claiming excessive federal tax withholdings as a result of falsely claimed interest and dividend income. Based on these fraudulent returns, Hernandez obtained more than $175,000 in refunds from the IRS.

In addition, in April 2010, Hernandez stole 68 tax returns from the IRS Service Center and filed fraudulent tax returns using information contained on the stolen tax returns to claim excessive federal tax withholdings. In total, Hernandez attempted to claim more than $1,745,000 in fraudulent tax refunds.

“IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority,” said IRS Special Agent-in-Charge José M. Martinez, “especially in those situations where individuals with positions of trust commit fraud by taking taxpayer information to file fraudulent tax returns in the name of the stolen identity to obtain a larger tax refund. This resulted in significant harm to those taxpayers whose identities were stolen, as well as a monetary loss against the U.S. Treasury.”

“Identity theft has become a modern-day scourge in American society, for the damage it inflicts on its victims can be personally, professionally, and financially devastating,” said Rod Ammari, Special Agent in Charge, San Francisco Field Division, Treasury Inspector General for Tax Administration (TIGTA). “Those who engage in such crimes need to know that TIGTA and its law-enforcement partners will actively investigate IRS-related identity theft cases, and work with the U.S. Attorneys’ offices where perpetrators will be prosecuted to the fullest extent of the law.”

This case is the product of an extensive investigation by the Internal Revenue Service, Criminal Investigation and TIGTA. Assistant United States Attorneys Grant B. Rabenn and Christopher D. Baker are prosecuting the case.

Hernandez is scheduled to be sentenced by U.S. District Judge Anthony W Ishii on April 14, 2014. She faces a maximum statutory penalty for filing false income tax returns of three years in prison and a $250,000 fine. The maximum statutory penalty for wire fraud is 20 years in prison and a $250,000 fine. The aggravated identity theft charge carries a minimum mandatory term of two years in prison to be served consecutively with any other sentence and it carries a maximum statutory penalty of 15 years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.

Plea Agreement

FRESNO, Calif. — Javier Rios Morales, 25, of Jalisco, Mexico, pleaded guilty today to conspiring to manufacture, distribute and possess with intent to distribute 3,405 marijuana plants and 350 pounds of processed marijuana seized from a grow site in Inyo National Forest, announced United States Attorney Benjamin B. Wagner.

According to court documents, U.S. Forest Service agents found a marijuana cultivation operation in the Hogback Creek area of the Inyo National Forest. They set up trail cameras and photographed Rios making supply drops at a drop point to the site. Rios also picked up processed marijuana from the site. One of the load vehicles was tracked to several stash houses in Riverside County. Ultimately, agents executed four search warrants at the grow site and three residences in Riverside County.

Agents seized 3,405 marijuana plants, 350 pounds of processed marijuana, digital scales, highly toxic and illegal rodenticides, and 2,200 pounds of trash from the Hogback Creek grow site. In pleading guilty, Rios agreed to pay $6,572.14 to the U.S. Forest Service for removal and dumping fees associated with eradication of the site. Agents in Riverside County seized two pounds of methamphetamine, a methamphetamine laboratory, five firearms, $10,000 in cash, and two pounds of marijuana from a residence in Moreno Valley. Agents seized another 450 marijuana plants and marijuana cultivation at a stash house in Homeland. At another stash house in Romoland, they seized a firearm, marijuana shake and residue, and shipping labels consistent with the shipment of marijuana to Chicago.

Rios is scheduled for sentencing on April 14, 2014, by United States District Judge Lawrence J. O’Neill. He faces a sentence of five years to 40 years in prison and a $5 million fine. He is also subject to deportation to Mexico, upon completion of any prison term. 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 the product of an investigation by the U.S. Forest Service, the U.S. Drug Enforcement Administration, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Inyo County Sheriff’s Office, and Riverside County Sheriff’s Office. Assistant United States Attorney Karen A. Escobar is prosecuting the case.

Plea Agreement

FRESNO, Calif. —Shannon Nicole Johannsen, 35, of Bakersfield, was sentenced today by United States District Judge Lawrence J. O’Neill to two and a half years in prison for counterfeiting U.S. currency and possessing images of currency for counterfeiting purposes, United States Attorney Benjamin B. Wagner announced.

According to court documents, from October 2012 to March 2013, Johannsen counterfeited Federal Reserve Notes in $100 and other denominations. She possessed computers, printers, paints, powders, cleaning agents, and numerous digital images of U.S. currency. On several occasions, Johannsen passed the counterfeit currency at retail stores and at a casino in Kern County.

This case was the product of an investigation by the United States Secret Service, the Kern County Sheriff’s Office, and the Bakersfield Police Department. Assistant United States Attorney Michael G. Tierney prosecuted.

SACRAMENTO, Calif. A federal grand jury returned a one-count indictment today charging Chad Carl Jaycox, 23, of Yuba City, with receiving images of child pornography, United States Attorney Benjamin B. Wagner announced.

According to court documents, Jaycox received the images between April 2011 and September 2013. Jaycox was convicted in 2010 of unlawful sex with a minor, and he was on probation for that offense when federal agents executed a search warrant at his residence in September 2013. Upon the discovery of child pornography, Jaycox was arrested by state law enforcement agents for a violation of his probation. According to court documents, Jaycox is being held without bail in the Sutter County Jail on three unrelated counts involving sex with underage girls in the Yuba City area in 2013.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Matthew G. Morris is prosecuting the case.

Jaycox faces a possible sentence of 15 to 40 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

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

SACRAMENTO, Calif. —A federal grand jury returned a 20-count indictment today charging Manuel Ruiz, 47, of Sacramento, with making false claims for tax refunds on federal income tax returns.

The indictment alleges that Ruiz made false claims on federal income tax returns that he filed on his own behalf and on behalf of eight other individuals for a total of $106,547.

Ruiz is scheduled for arraignment on February 6, 2014.

This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Sherry Hartel Haus is prosecuting the case.

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

SACRAMENTO, Calif. — James Anthony Demotto, 31, of Citrus Heights, was sentenced today by United States District Judge Troy L. Nunley to 15 years and eight months in prison, to be followed by 20 years of supervised release, for attempted enticement of a minor, United States Attorney Benjamin B. Wagner announced.

According to the plea agreement, in May 2012, Demotto began communicating online with an undercover officer in Massachusetts who was posing as a 13-year-old girl. Within several minutes of chatting online, Demotto propositioned her to engage in online sexual conduct and to take photographs of herself.

By January 2013, Demotto engaged in Internet conversations of a sexual nature with two other undercover agents who were posing as under-aged girls. He repeatedly asked for sexually explicit pictures from the “girls.”

When law enforcement searched Demotto’s computer, they found evidence that he had been communicating with actual minors and had received sexually explicit pictures from them. There was also evidence that he had been searching for and downloaded images of child pornography from the Internet. A clown mask was located in his bedroom.

In sentencing Demotto, Judge Nunley expressed concerns about the number of victims in this case. In addition, Judge Nunley noted that Demotto had made attempts to meet with a fictional victim, driving down the street that he believed she lived on, and asking her in one online conversation if she “had seen someone in a clown outfit driving around [her] neighborhood?”

“This clearly illustrates why the FBI is committed to identifying and investigating individuals who seek to rob our children of their innocence,” said Special Agent in Charge Monica M. Miller of the FBI’s Sacramento Division. “Any images obtained by Mr. Demotto would likely have been traded among other offenders for years. I am proud of the efforts of our task force and the network of investigators who work tirelessly to identify and investigate individuals who seek to do harm to our innocent children.”

This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Kyle Reardon prosecuted the case.

This prosecution is part of the Department of Justice’s ongoing Project Safe Childhood initiative which was launched to increase federal prosecutions of sexual predators of children, and to reduce the number of Internet crimes against children including child pornography trafficking. As a part of PSC, the United States Attorney’s Office has teamed with state and local agencies and organizations to increase law enforcement presence on the Internet, and to educate the public about safe Internet use, thereby reducing the risk that children might fall prey to online sexual predators. For additional information on the PSC initiative, please go to www.projectsafechildhood.gov coordinator.

SACRAMENTO, Calif. — U.S. Attorney Benjamin B. Wagner and Deputy Chief Postal Inspector for Western Field Operations Dr. Gregory Campbell Jr. announced the results to date of Operation Broken Mailbox, an ongoing effort involving a surge of postal inspectors and analysts working with local law enforcement partners to investigate and prosecute stolen mail offenses.

Operation Mailbox was initiated following postal customer complaints about mail thieves who were attacking collection boxes via “fishing” techniques, prying open boxes in post office lobbies, breaking into postal delivery trucks, and counterfeiting postal keys to compromise collection boxes and Neighborhood Delivery Centralized Box Units (NDCBUs). The Postal Inspection Service deployed postal inspectors and analysts with strong mail theft investigation backgrounds from around the country to the Eastern District of California beginning in April 2013 to work with postal inspectors already assigned to Sacramento, Fresno, and Bakersfield.

In less than a year, the teams completed investigations leading to federal indictments against 21 defendants. Nine of these defendants have already been sentenced, and six more are awaiting sentencing after pleading guilty. In addition, at least six more persons have been charged by District Attorneys in Kern County and Sacramento County. Operation Broken Mailbox is still underway, and more prosecutions are anticipated.

“Protecting the security of the U.S. Mails, and protecting mail customers from the loss of valuable items and personal identity information, is an important responsibility of the U.S. Postal Inspection Service and of this office,” said U.S. Attorney Wagner. “I appreciate the responsiveness the Postal Inspection Service has shown in devoting resources to address this problem in the Central Valley. I also want to thank our local law enforcement partners for working so effectively with us in this effort.”

Deputy Chief Postal Inspector Campbell stated: “We work closely with the U.S. Attorney’s Office and our partners in law enforcement to arrest and prosecute those who steal mail for criminal gain. A primary goal of the Postal Inspection Service is to protect postal customer’s mail and ensure that their mail is safe from theft.”

Among the cases developed in the course of the operation were the following:

• Sacramento: Postal inspectors secured indictments of three defendants who obtained stolen mail by breaking into NDCBUs in Elk Grove and Sacramento. One of the defendants used her position as a sales clerk at a retail establishment to open fraudulent accounts and use account information obtained from stolen mail. Postal inspectors also secured indictments of five other defendants conducting NDCBU break-ins in Rancho Cordova, Elverta, Rocklin, Roseville, Natomas, Rio Linda, Elkhorn, and Antelope. Several search warrants resulted in the recovery of hundreds of pieces of stolen mail and stolen postal keys.

• Fresno: Postal inspectors conducted a probation search on a recidivist believed to be involved in NDCBU break-ins in Fresno and Madera and recovered stolen mail and six counterfeit postal keys.

• Bakersfield: Postal inspectors identified a collection box fishing group and conducted surveillance that resulted in the arrest of three defendants for mail theft. Searches subsequent to the arrests recovered a large volume of stolen mail and several postal keys. The investigation resulted in the indictment of five suspects.

To date, Operation Broken Mailbox resulted in at least 22 arrests, 33 searches, the recovery of ten counterfeit or stolen postal keys, and the identification of more than 2,100 victims and nearly $400,000 in losses. The U.S. Postal Inspection Service worked closely with several law enforcement agencies, including the Sacramento Police Department, The Bakersfield Police Department, the Elk Grove Police Department, the Kern County Sheriff’s Office, and the Placer County Sheriff’s Office. The work of Operation Broken Mailbox is ongoing.

SACRAMENTO, Calif. — In October and November 2011, lawsuits were filed in each of the four California federal judicial districts seeking to halt federal enforcement of the Controlled Substances Act against marijuana dispensaries on a variety of grounds. The suits claimed that the federal government could not take any legal action against dispensaries because such action was a violation of the Ninth and Tenth Amendments, the Equal Protection Clause and the Commerce Clause. Following separate proceedings in each district, four different district court judges issued orders dismissing the cases. The plaintiffs in three of those cases appealed those decisions. Today, in an unpublished opinion, the Ninth Circuit affirmed the dismissals in all three cases.

The United States Court for the Eastern District of California was the first district court to reject a dispensary’s lawsuit. The Eastern District action was filed at the end of 2011 by Sacramento Nonprofit Collective, doing business as El Camino Wellness Center, and Ryan Landers. It was dismissed by U.S. District Court Judge Garland E. Burrell Jr. on Feb. 28, 2012.

Benjamin Wagner, the United States Attorney for the Eastern District of California, said: “Our responsibility as U.S. Attorneys is to enforce the Controlled Substances Act. Today’s decision rejecting the dispensary’s lawsuit is a straightforward application of existing precedent, which merely confirms that the CSA continues to be in full force and effect, regardless of state law.”

In the United States Court for the Southern District of California, the lawsuit filed by Alternative Community Health Care Cooperative Inc. was dismissed on March 5, 2012 by U.S. District Court Judge Dana M. Sabraw. Laura E. Duffy, the United States Attorney for the Southern District of California said: “The Ninth Circuit’s decision recognizes that U.S. Attorneys retain the right to enforce the CSA. We will continue to focus on federal interests in evaluating marijuana prosecutions in the Southern District of California, and will collaborate with our state and local partners to ensure the safety of our communities.”

The Ninth Circuit case is Sacramento Nonprofit Collective v. Holder, Case No. 12-15991.

FRESNO, Calif. — Two more marijuana cultivators were sentenced and three entered guilty pleas today for their involvement in separate cases resulting from Operation Mercury, a six-county effort that focused on large-scale marijuana cultivation on agricultural land in the Central Valley, U.S. Attorney Benjamin B. Wagner announced.

6,158 Marijuana Plants/Firearms Seized from National Forest Grow (1:12-cr-300 LJO)

Osmin Norberto Mejia, aka Osmin Mejia Masariegos, 31, of La Libertad, Petén, Guatemala, was sentenced to seven years and three months in prison following his guilty plea last year to possessing a firearm in furtherance of drug trafficking and cultivating marijuana at a grow site in the Slick Rock area of the Sequoia National Forest in Kern County. He was also ordered to pay $3,393 to the U.S. Forest Service to cover the costs of cleaning up the grow site. Mejia is subject to deportation upon completion of his prison term.

According to court documents, Mejia was in possession of a shotgun when he encountered law enforcement officers executing a search warrant at the grow site and used the weapon to protect himself and the marijuana plants that he was growing there. Drug agents seized 6,158 marijuana plants from the cultivation site, along with the shotgun Mejia possessed and a rifle found in a tent at a campsite at the grow. The cultivation operation caused significant damage to the land and natural resources. Native vegetation and many oak trees were cut down to make room for the marijuana plants and the ground was terraced. Large amounts of trash and fertilizer bags were scattered throughout the grow site.

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

1,313 Marijuana Plants/Handgun Seized from Terra Bella Grow (1:12CR318 LJO)

Jose Guadalupe Zavala Ramos, 33, of Michoacàn, Mexico, was sentenced to two years and three months in prison for conspiring to cultivate, distribute and possess with intent to distribute marijuana plants grown on a 40-acre agricultural parcel in Terra Bella that was rented by Baltazar Rodriguez, 44, also of Michoacàn. According to court documents, Zavala, along with Rodriguez and four others also charged in this case, was found at the cultivation site during the execution of a federal search warrant. The agents seized 1,313 marijuana plants and a loaded .38 caliber handgun from Rodriguez’s residence on the property. The agents obtained the search warrant following surveillance of a drug courier to the Terra Bella site who had delivered supplies to multiple grow sites on National Forest lands in Tulare, Kern, and Ventura Counties.

Zavala was sentenced following his guilty plea last October. In pleading guilty, Zavala acknowledged that he was to be paid $100 a day to assist in tending the marijuana plants. Three of Zavala’s co-defendants have also entered guilty pleas.

Rodriguez and the remaining co-defendant have requested a jury trial, which is set for later this year. The charges against them are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case was also investigated by the U.S. Forest Service with assistance from, HSI, and the Tulare and Ventura County Sheriff’s Offices.

2,932 Marijuana Plants Seized in Fresno Ag Grow (Case No. 1:12C2341 LJO)

Rassamee Phothidokmai, 53; Paul Nokham, aka Boun Theung Hokham, 49; Thavone Onsyphanla, 51; all of Las Vegas, pleaded guilty today to conspiring to cultivate, distribute and possess with intent to distribute marijuana grown on an agricultural parcel on Marks Avenue in rural southwest Fresno. During the execution of a federal search warrant there, narcotics agents found the men, along with 2,932 marijuana plants, and a firearm. Court records indicate that some of the marijuana was destined for Las Vegas.

Sentencing for Nokham and Onsyphanla is scheduled for March 31, 2014 and for Phothidokmai on April 7, 2014. They face a maximum prison sentence of 20 years and a fine of up to $1 million. Their actual sentences will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

This case was investigated by the Drug Enforcement Administration and the Fresno County Sheriff’s Office.

***
Each of the above cases stem from Operation Mercury, an intensive marijuana eradication and enforcement effort initiated in 2012 by federal, state, and local law enforcement agencies in six counties to address the increasing problem of the cultivation of marijuana on agricultural land. Operation Mercury resulted in the seizure of nearly half a million marijuana plants and the prosecution of 84 defendants in federal court in Fresno.

Assistant U.S. Attorney Karen A. Escobar is handling the above marijuana prosecutions.

FRESNO, Calif. – Michael Paul Thompson, 32, of Stockton, was sentenced today by U.S. District Judge Lawrence J. O’Neill to 13 months in prison for escaping from the custody of a federal correctional institution, United States Attorney Benjamin B. Wagner announced.

According to court documents, Thompson escaped from Federal Correctional Institution–Mendota, on October 12, 2011. He had been serving a 10-year sentence following his conviction in June 2010 for conspiring to distribute and possess with intent to distribute methamphetamine.

Thompson was apprehended in Stockton on March 29, 2013, after leading police officers on a 20-minute high-speed chase reaching speeds of 100 mph in moderate-to-heavy traffic. The reckless endangerment during this flight required police officers to undertake physical intervention, resulting in major damage to one police vehicle.

This case was the product of an investigation by the U.S. Marshals Service and the Stockton Police Department. Assistant U.S. Attorney Christopher Baker prosecuted the case.

FRESNO, Calif. — Today, two defendants were sentenced, three defendants pleaded guilty, and a defendant is back in custody after breaking the terms of his supervised release, United States Attorney Benjamin B. Wagner announced.

“While there is no way to undo the despicable crimes committed against these innocent and vulnerable children, it is a relief that the defendants found guilty of these crimes will no longer be in a position to carry out their criminal acts,” said Mike Prado, resident agent in charge of HSI Fresno “HSI will continue to work tirelessly with its federal and local law enforcement partners to seek justice for the young victims in these cases, who will bear the emotional and physical scars of these crimes for the rest of their lives.”

Except as noted, all cases are being prosecuted by Assistant United States Attorney David Gappa.

Twenty Years in Prison for Idaho Man (1:13-cr-045 LJO)

Allen Trent Carter, 53, of McCammon, Idaho, was sentenced today by United States District Judge Lawrence J. O’Neill to 20 years in prison to be followed by a lifetime term of supervised release.

According to court documents, Carter was identified during the course of an investigation of his son, Bradley Vaine, 27, of Fresno, who is being prosecuted for trafficking in child pornography. According to a criminal complaint, Vaine and Carter exchanged many images of child pornography and engaged in many chat sessions on Facebook in which they discussed the sexual abuse of children. A federal search warrant was executed at Carter’s residence in Idaho, and he admitted he had exchanged images of child pornography with Vaine in August and October 2012. Carter has been detained in federal custody, as a flight risk and danger to the community, since his arrest in Idaho on January 8, 2013. The charges against Vaine are pending. He is presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case was the result of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) offices in Fresno and Idaho Falls, Idaho with assistance from the Idaho State Police and the Bannock County Sheriff’s Office.

Air Force Employee Sentenced to 13 Years in Prison (1:13-cr-145 AWI)

Ronald Townsend, 30, of Rosamond was sentenced to 13 years in prison for receipt and distribution of child pornography. He will also be required to serve a lifetime term of supervised release upon his release from prison during which he will be required to register as a sex offender and his access to the Internet, computers, and minors will be restricted. According to court documents, Townsend came to law enforcement’s attention when he chatted online with an undercover detective on January 30, 2013. At that time he sent about 40 images of child pornography in order to obtain videos from the undercover detective. Townsend also developed relationships online and on the phone with under-aged girls, one 13 and one 16 years old. As part of the plea agreement, he provided the court today with $7,500 that was ordered as restitution.

This case is the product of an investigation by the Air Force Office of Special Investigations.

Bakersfield Cases: Two Plead Guilty and One Admits to Supervised Release Violations

John Brian Noblia, 33, of Bakersfield, pleaded guilty to one count of receipt and distribution of a visual depiction of a minor engaged in explicit conduct. His sentencing is set for March 31, 2014. He faces a sentence of five to 20 years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. This case is the product of an investigation by HSI. Assistant United States Attorney Megan Richards is prosecuting the case. (1:13-cr-143 LJO)

Fernando David Rangel, 20, of Bakersfield, pleaded guilty today to receiving images of child pornography. He admitted in a plea agreement that he used the Internet and a computer to receive between 300-600 images of child pornography, including images that depicted prepubescent minors and images of violence or sadistic conduct. His sentencing is scheduled for March 31, 2014. He faces a sentence of five to 20 years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. This case is the product of an investigation by the FBI. (1:13-cr-280 LJO).

Christopher Kent Bowersox, 42, of Bakersfield, today admitted to two violations of his supervised release conditions in a proceeding before U.S. Magistrate Judge Gary S. Austin. Bowersox had been released from prison, after serving a sentence for possession of child pornography and had served five months of a 10-year term of supervised release. He admitted today that he had accessed the Internet and viewed adult pornography in violation of conditions of his supervised release.  Bowersox has been in custody since December 26, 2013. He will be sentenced on February 24, 2014, and he faces a potential term of two years in prison. The actual sentence imposed, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines. (1:10-cr-082 AWI).

Modesto Man Pleads Guilty to Receipt and Distribution of Child Pornography (1:12-cr-384 AWI)

Ted Lee Duran, 49, of Modesto, pleaded guilty today to receipt and distribution of child pornography. According to court documents, a relative of Duran went to Modesto Police and reported finding child pornography on a phone that Duran had borrowed. Further investigation revealed that Duran had received more than 600 images of minors being sexually abused, some of which depicted violence or were of sadistic conduct.

Duran is scheduled to be sentenced on March 24, 2014, at 10:00 am. He faces a potential sentence of five to 20 years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. This case is the product of an investigation by the FBI and the Modesto Police Department.

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

FRESNO, Calif. – Nola Diane Collins, 60, of Armona, was sentenced today by U.S. District Judge Lawrence J. O’Neill to five months in prison for stealing disability compensation benefits paid by the U.S. Department of Veterans Affairs, United States Attorney Benjamin B. Wagner announced. Collins also was ordered to pay $76,998 in restitution to the VA.

According to court documents, Collins’s husband received benefits paid by the U.S. Department of Veterans Affairs (VA) until his death in December 2007. For two years after his death, Collins unlawfully received and spent the VA benefits totaling approximately $76,998. Collins never notified the VA that her husband was deceased. On several occasions, Collins forged her husband’s signature to the benefit checks and passed them at a convenience store, telling the store clerk that her husband was disabled and unable to cash the check himself.

This case was the product of an investigation by the U.S. Department of Veterans Affairs, Office of Inspector General. Assistant U.S. Attorney Christopher Baker prosecuted the case.

BAKERSFIELD, Calif. — Miguel Antonio Ruiz Jaramillo, 66, of Bakersfield, pleaded guilty today to one count of aggravated structuring of cash transactions, U.S. Attorney Benjamin B. Wagner announced.

According to the plea agreement, Jaramillo operated a gardening service. He issued invoices that billed a client $10,000 or less. The client then would write checks for the amount on the invoice. From January 2010 through July 2012, Jaramillo cashed more than 50 checks for $10,000 or less at Valley Republic Bank in Bakersfield, totaling more than $420,000. Jaramillo had the checks cashed in this manner to prevent, or attempt to prevent, the bank from filing a Currency Transaction Report (CTR) on those transactions. He did not want a CTR filed because for the years 2010 and 2011, he did not declare the structured cash transactions as income on his federal tax returns.

This case is the product of an investigation by the Central California Financial Crimes Task Force (CCFCTF), which is dedicated to investigating and prosecuting money laundering and Bank Secrecy Act crimes in the San Joaquin Valley. CCFCTF is led by the Internal Revenue Service, Criminal Investigation, with participation from U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Drug Enforcement Administration, the Federal Bureau of Investigation, the Bakersfield Police Department, and the Fresno Police Department. Assistant United States Attorneys Grant B. Rabenn and Patrick Delahunty are prosecuting the case.

Jaramillo is scheduled to be sentenced on April 7, 2014. He faces a maximum statutory penalty of 10 years in prison and a $500,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — After a four-day trial, a federal jury announced it had reached a verdict at 5:15 p.m., United States Attorney Benjamin B. Wagner announced.

The jury found Randy Lee Wilkins, 47, of Gilroy, guilty on all counts in connection with a mortgage fraud scheme: one count of conspiracy to commit wire fraud and bank fraud, three counts of bank fraud, and three counts of wire fraud. United States District Judge Lawrence J. O’Neill committed Wilkins into custody immediately following the jury verdict.

According to court documents and evidence presented at trial, between April 2006 and May 2007, Wilkins conspired with a business partner, Joseph George Tkac, and another individual to fraudulently obtain mortgages for three houses in Fresno on E. Ashlan, S. Phillip, and N. Adoline Avenues.  Wilkins and his partners carried out the scheme through a business called JR Properties & Investments.  They also obtained a home equity line of credit on one of the houses.

Wilkins had applications for the home loans submitted in Tkac’s name, who had better credit.  The loan applications contained false statements concerning Tkac’s income, assets, liabilities, and intent to occupy the properties as his personal residence. Although the loans were taken out in Tkac’s name, the properties were later transferred to JR Properties and Investments.

In addition to obtaining the loans from financial institutions based on false statements and misrepresentations, Wilkins received kickbacks funded by loan origination fees and other charges.  The proceeds from the home equity line of credit, and other funds received through the scheme, ended up in either the JR Properties and Investments bank account or in a personal account controlled by Wilkins. Notably, the kickbacks were not disclosed to the lending institutions on the HUD-1 settlement statements as required.

According to evidence presented at trial, Wilkins used the loan proceeds for his living expenses and to gamble at a local casino. For several months Wilkins made payments on the real estate loans to the lenders.  Ultimately, however, he stopped making payments and the properties went into foreclosure.  As a result of Wilkins’s conspiracy and scheme to defraud, the lenders on the home loans suffered more than $615,000 in losses.

This case is the product of an investigation by the Federal Bureau of Investigation.  Assistant United States Attorneys Kirk E. Sherriff and Grant B. Rabenn are prosecuting the case.

Wilkins is scheduled to be sentenced on March 24, 2014 by United States District Judge Lawrence J. O’Neill. Wilkins faces a maximum sentence of 30 years in prison and a $1 million fine on each count.  The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

Tkac previously pleaded guilty to conspiracy to commit mail fraud and bank fraud for his involvement in this scheme. He is scheduled to be sentenced on February 24, 2014. (Case no. 1:10-cr-00152 LJO).

Total Recoveries Including Shared Cases and Forfeitures Exceeds $81.9 Million

SACRAMENTO, Calif. — U.S. Attorney Benjamin Wagner announced today that the U.S. Attorney’s Office for the Eastern District of California collected $63,833,023 in criminal and civil actions in Fiscal Year 2013. Of this amount, $2,317,646 was collected in criminal actions and $61,515,377 was collected in civil actions.

Additionally, the Eastern District of California worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $11,917,100 in cases pursued jointly with these offices. Of this amount, $108,208 was collected in criminal actions and $11,808,892 was collected in civil actions.

Total collections in civil and criminal cases involving the office, therefore, were in excess of $75.6 million. These figures represent actual dollars received, not judgment amounts.

Additionally, the U.S. Attorney’s Office in the Eastern District of California, working with partner agencies and divisions, collected $6,183,607 in asset forfeiture actions in FY2013. Forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund and are used to restore funds to crime victims and for a variety of law enforcement purposes. When forfeitures are added to collections in civil and criminal cases, total recoveries in FY 2013 involving the Eastern District exceeded $81.9 million.

Attorney General Eric Holder announced on Thursday that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.

“The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the taxpayer,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the Department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”

“Financial recoveries are a critical part of the Department’s mission to hold those who violate the law accountable for the injury they cause to victims and the general public,” said U.S. Attorney Wagner. “Each year we collect far more for victims and taxpayers than the total cost of operating our office. During this time of continued fiscal constraint, these collections are more important than ever. We will continue to aggressively pursue compensation from those who commit crimes in our district and civil wrongs, to ensure that the wrongdoers — not the public — bear the costs of unlawful conduct here in the Eastern District of California.”

Major recoveries in the Eastern District of California in FY 2013 included $45 million from PG&E and its contractor Provco for damages caused by the Power Fire, which burned approximately 13,000 acres of the El Dorado National Forest in October 2004, and an additional $5.5 million from PG&E and its contractors ACRT, Inc. & Davey Tree for damages caused by the James Fire on the Mendocino National Forest in June 2008. The district also recovered $14.2 million on a settlement of allegations that Adventist Health improperly compensated physicians who referred patients to Adventist’s White Memorial facility, in violation of the Anti-Kickback Act and Stark Statute.

The U.S. Attorneys’ Offices, along with the Justice Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.

The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.

The figures announced today do not include money recovered on the recent $13 billion settlement of fraud claims against JPMorgan Chase & Co. in connection with residential mortgage backed securities. Although several billion dollars has already been paid on that settlement, the payments were received in Fiscal Year 2014 (which began in October) and so will be included in a future announcement on recoveries during that fiscal year.

SACRAMENTO, Calif. — Dr. Emilio Louis Cruz III, 61, of Carson, Calif., was sentenced today by United States District Judge Morrison C. England Jr. to three years and two months in prison and ordered to pay $601,581 in restitution for his role in a conspiracy to commit Medicare fraud, United States Attorney Benjamin B. Wagner announced.

According to court documents, Cruz earned an undergraduate degree from Johns Hopkins University and his medical degree from Yale University. He held medical licenses in three states and was board certified in neurology. According to his plea agreement and the testimony heard at the trial of Cruz’s co-defendants, doctors Ramanathan Prakash, Alexander Popov, and Lana LeChabrier, and a man named Vardges Egiazarian owned and controlled three health care clinics in Sacramento, Richmond, and Carmichael from February 2006 through August 2008. Over this time period, Cruz ran the practice at the Carmichael clinic on 3609 Mission Avenue. He established a Medicare provider number for the clinic and established a bank account into which Medicare funds were deposited. Hundreds of claims were submitted to Medicare seeking reimbursement for services allegedly performed at the Carmichael clinic under Cruz’s care. Cruz, however, never treated a single patient. Indeed, during the majority of the time that the Carmichael clinic operated, he was living and practicing in North Dakota. A similar pattern was followed at the other two clinics operated by Egiazarian, and not one of the physicians submitting bills to Medicare ever treated a single patient.

According to evidence at trial, the clinic’s patients were primarily elderly and non-English speaking. They were recruited and transported to the clinics by individuals who were paid according to the number of patients they brought to the facilities. Rather than being charged a co-payment, the patients were paid for their time and the use of their Medicare eligibility, generally $100 per visit. False charts were created stating that each patient received comprehensive exams and a broad array of diagnostic tests. Few of these tests were ever performed, none were performed based on any medical need, and clinic employees filled out other portions of the charts using preprinted templates. Some clinic employees admitted to performing various tests on themselves, and placing the results in patient files.

In all, the three clinics submitted more than $5 million worth of fraudulent claims to Medicare, $1.7 million of which was actually paid. With respect to claims submitted for services purportedly provided by Cruz at the Carmichael clinic, Medicare paid $601,581.

The only defendants to go to trial, doctors Prakash, Popov, and LeChabrier, were found guilty by a jury on July 8, 2011, of conspiracy to commit healthcare fraud and various counts of healthcare fraud.

This case is the product of an investigation by the Office of the Inspector General for the Department of Health and Human Services and the Federal Bureau of Investigation. Assistant United States Attorneys Philip Ferrari and Jean M. Hobler are prosecuting the case.

Others who were charged in this matter include:

• Ramanathan Prakash, a doctor involved with the Sacramento clinic, is currently serving 10 years in prison.
• Lana LeChabrier, a doctor involved with the Richmond clinic is currently serving six and a half years in prison.
• Vardges Egiazarian pleaded guilty early in the case and has served his six and a half years sentence.
• Alexander Popov, a doctor involved with the Sacramento clinic, is currently serving eight years and one month in prison.
• Nazaret Salmanyan, an unlicensed ultrasound technician who worked at all three clinics, pleaded guilty and on November 14, 2013, was sentenced to 20 months in prison.
• Derrick Johnson, a doctor involved with the Richmond clinic, pleaded guilty and is awaiting sentencing.
• Zoya Belov, a nurse licensed in Russia but not the United States who worked at all three clinics, pleaded guilty and is awaiting sentencing.
• Liw Jiaw Saechao, aka Jenny Saechao, recruited patients, pleaded guilty, and is awaiting sentencing.
• Migran Petrosyan, a co-owner of the Richmond clinic, pleaded guilty, and on December 5, 2013, was sentenced to 27 months in prison.
• Shushanik Martirosyan, a medical biller who submitted claims to Medicare for all three clinics, pleaded guilty and on October 24, 2013, was sentenced to 18 months in prison.

SACRAMENTO, Calif. — Nicholas Perry, 36, of Sacramento, and Eric Johnston, 23, of Folsom, pleaded guilty today to attempted enticement of a minor, United States Attorney Benjamin B. Wagner announced.

According to court documents, on May 29, 2012, an undercover detective with the Sacramento Internet Crimes Against Children (ICAC) task force responded to a Craigslist advertisement posted by Brandon Marks in which Marks sought to acquire children’s underwear. After a week of online and cellphone communications, Marks agreed to meet the undercover detective in order to have sex with the detective’s fictional 13-year-old child.

Following his arrest, Marks allowed law enforcement to assume his online identity. One of the people with whom Marks was communicating with was Perry. Prior to meeting with law enforcement, Marks had told Perry through email that he was “meeting a dad and his daughter and taking pics ;).” After assuming Marks’s identity, law enforcement (posing as Marks) offered to introduce Perry to the daughter. Perry communicated with Johnston about the meeting and offered to introduce Johnston to the fictional father.

After being introduced, each defendant communicated directly via email with law enforcement about the fictional 13-year-old. Perry and Johnston agreed to meet Marks, the father, and his daughter in order to have sex with the daughter.

Following his arrival at the meeting location, Johnston was arrested. After his arrest, Johnston received a text message from Perry asking if he was there. Law enforcement responded to Perry (posing as Johnston), and told Perry that he had arrived and that he was waiting with the father and daughter. Perry arrived approximately 45 minutes later and was arrested. Both defendants have been in federal custody since their arrest.

Marks pleaded guilty to attempted enticement of a minor and was sentenced to 12 years in prison in May 2013.

Perry and Johnston are scheduled to be sentenced on April 3, 2014. They each face a statutory penalty of no less than 10 years and up to life in prison and a $250,000 fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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

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

SACRAMENTO, Calif. — Alexander A. Romaniolis, 48, of Irvine, pleaded guilty today to mortgage fraud, United States Attorney Benjamin B. Wagner announced. A federal grand jury returned the three-count indictment on March 21, 2013, charging Romaniolis with mail fraud.

According to court documents, Romaniolis recruited five straw buyers to purchase eight California residential properties in Rocklin, Roseville and San Clemente. Romaniolis assisted the straw buyers in providing false information to lenders about their employment, income, assets, and intent to occupy properties as primary residences. In most cases, the straw buyers claimed to be executives of companies created and controlled by Romaniolis. He was responsible for the origination of more than $5 million in residential mortgage loans in the scheme. All of the properties were foreclosed on, resulting in a total loss of more than $2 million.

This case is the product of an investigation by the Federal Bureau of Investigation and the California Attorney General’s Mortgage Fraud Task Force. The Huntington Beach Police Department assisted in the arrest. Assistant United States Attorney Jean M. Hobler is prosecuting the case.

Romaniolis is scheduled to be sentenced on March 27, 2014. He faces a maximum statutory penalty of 30 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — Luis Magana, 20, of Stockton, pleaded guilty today to dealing firearms without a license and to distribution of methamphetamine in a case resulting from Operation Gideon IV, United States Attorney Benjamin B. Wagner announced.

Operation Gideon IV was an ATF surge that targeted violent criminals in an effort to dismantle criminal organizations operating in Stockton. Experienced undercover ATF special agents from throughout the U.S. were deployed with local ATF agents and Stockton police officers to conduct covert investigations into some of the most violent criminals in Stockton and surrounding areas. Operation Gideon IV ran from January to April 19, 2013, charging 55 individuals and seizing 84 firearms.

“Today’s guilty plea represents another win for law enforcement in successfully removing and locking up another gun trafficker and preventing collateral damage to innocent victims,” said Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Joseph M. Riehl. “These traffickers are the primary source and supply of arming violent criminals in our communities.”

According to court documents, special agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted an extensive investigation into Magana’s gun and drug dealing activities. During the course of this investigation, undercover special agents purchased and seized more than 2.9 kilograms of methamphetamine from Magana. Additionally, although Magana did not have a license to sell firearms, Magana sold undercover special agents five firearms during four separate transactions in February, March, and April, 2013.

This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorney Christiaan Highsmith is prosecuting the case.

Magana was taken into custody today after entering his guilty plea. His co-defendants, Erik Moreno and Juvenal Junez, both of Stockton, have already entered guilty pleas on drug distribution charges.

Magana is scheduled to be sentenced by Judge Lawrence K. Karlton on April 1, 2014. Magana faces a maximum statutory penalty of 40 years in prison and a $5 million fine for the drug distribution conviction. He faces a maximum sentence of five years in prison and a $250,000 fine for the gun conviction. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — Troy Foster Mitchell, 47, of Modesto, was sentenced today by United States District Judge Lawrence K. Karlton to six years and five months in prison and ordered him to pay $10,114 in restitution for bank robberies in Modesto and Stockton, United States Attorney Benjamin B. Wagner announced.

According to court documents, on May 14, 2013, while on supervised release after serving a prison term for a previous conviction, Mitchell entered the Valley First Credit Union in Modesto and passed a note to the bank teller demanding $5,000 in cash. The teller complied with the demand, and while she was doing so, another teller, recognizing Mitchell, walked by and said, “Hi, Troy.” Mitchell acknowledged her, and departed the credit union with $5,000 in cash.

Mitchell had filed an auto loan application with the bank on April 3, 2013, that included a copy of his driver’s license. Immediately following the robbery, a bank employee retrieved the application and gave it to the Modesto Police Department. Surveillance photos of the robber were consistent with Mitchell’s driver’s license photo. The application and driver’s license in the file listed Mitchell’s home address.

According to the plea agreement, on May 31, 2013, Mitchell entered the Bank of the West in Stockton and passed a note to the bank teller demanding all of the $100 bills without a dye pack. The teller gave Mitchell $5,114. Mitchell departed the bank, leaving the demand note behind. The demand note was written on the back of a voided paycheck made out to Troy F. Mitchell and listed Mitchell’s home address.

This case is the product of an investigation by the Federal Bureau of Investigation, the Modesto Police Department, and the Stockton Police Department. Assistant United States Attorney Sherry D. Hartel Haus prosecuted the case.

FRESNO, Calif. —Charles Ray Benavidez, 33, an Aviation Ordnanceman Second Class, serving at the Naval Air Station Lemoore, pleaded guilty today to one count of sex trafficking of a minor, United States Attorney Benjamin B. Wagner announced.

According to court documents, in April 2013, Benavidez knowingly recruited a 17-year-old female to engage in commercial sex acts in Kings and Tulare Counties. Benavidez was indicted in May 16, 2013, and has been in federal custody since May 23, 2013.

“This office is committed to doing all we can to protect our children from the plague of prostitution,” said U.S. Attorney Wagner. “We will identify, prosecute and punish the criminals who treat young girls as if they were commodities in the sex trade.”

“This defendant was sworn to defend this country, yet his callous and calculating actions put a trusting teenager directly in harm’s way,” said Mike Prado, resident agent in charge for HSI Fresno. “HSI will continue to work closely with its federal and local partners to target sexual predators, like this individual, who ruthlessly exploit vulnerable young people for their own gratification and greed.”

Benavidez is scheduled to be sentenced by Senior United States District Judge Anthony W. Ishii on March 17, 2014. He faces a minimum statutory sentence 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.

This case is the product of an investigation by the Central California Internet Crimes Against Children task force, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Naval Criminal Investigative Service (NCIS), and the Porterville, Tulare, and Lemoore police departments. Assistant United States Attorney Brian W. Enos is prosecuting the case.

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

Plea Agreement

FRESNO, Calif. — Today, one marijuana cultivator entered a guilty plea and one was sentenced for their involvement in separate cases resulting from Operation Mercury, a six-county eradication and enforcement effort that focused on large-scale marijuana cultivation operations on agricultural land in the Central Valley, U.S. Attorney Benjamin B. Wagner announced.

4,011 Marijuana Plants Seized in Alpaugh (1:12-cr-234 LJO)

Bonifacio Cano Gutierrez, 20, of Colima, Mexico, was sentenced today to two years and six months in prison following his guilty plea last October to a marijuana cultivation conspiracy. He is subject to deportation to Mexico upon completion of his prison sentence. Cano was the seventh of eight defendants to plead guilty to conspiring to cultivate, distribute and possess with intent to distribute marijuana on 20-acres of agricultural land in Alpaugh owned by Saul Antonio Morales, 49. Cano was responsible for the cultivation of 899 marijuana plants in one of 14 plywood fenced plots on Morales’ property, which contained a total of 4,011 marijuana plants.

Cano had an expired medical marijuana recommendation from a doctor he had never seen. (The doctor has been indicted in a separate federal case with the unlawful distribution of oxycodone and hydrocodone, as well as various financial crimes.) Court documents indicate that Cano would get a cut of the profits from the interstate sale of marijuana from Morales’ son, Gerardo Morales, 20, who was sentenced in November to three years and one month in prison for this drug conspiracy.

In October, a federal jury convicted Saul Morales, the property owner, of four narcotics offenses relating to the marijuana cultivation operation. He faces a mandatory minimum prison term of 10 years in prison, a maximum prison term of life, and a fine of up to $4 million. His sentencing is currently set for January 27, 2014. 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 the product of an investigation by the U.S. Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, and Firearms and explosives, and Tulare County Sheriff’s Office.

2,932 Marijuana Plants Seized in Fresno (1:12-cr- 341 LJO)

Phonepaseuth Phaphilom, 27, of Fresno, pleaded guilty today to conspiring to cultivate, distribute and possess with intent to distribute marijuana grown on an agricultural parcel on Marks Avenue in rural southwest Fresno. During the execution of a federal search warrant there, narcotics agents found Phaphilom with four other men from out of the area, 2,932 marijuana plants, and a firearm. Phaphilom, who was detained pretrial based in part on a criminal history that included weapons and narcotics violations, said he was going to sell the marijuana “up North” for $800 a pound. Based on a conservative one pound per plant yield, the cultivation operation was valued at over $2.3 million. In addition, court records indicate that some of the marijuana was destined for Las Vegas.

Phaphilom is scheduled for sentencing on March 17, 2014. He faces a maximum prison sentence of 20 years and a fine of up to $1 million. 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 the product of an investigation by the DEA and Fresno County Sheriff’s Office. Operation Mercury has so far resulted in the seizure of nearly half a million marijuana plants and the prosecution of 84 defendants in federal court in Fresno.

Assistant U.S. Attorney Karen A. Escobar is handling the above marijuana prosecutions.

FRESNO, Calif. —Alberto Morales, 31, of Modesto, pleaded guilty today to possessing child pornography, United States Attorney Benjamin B. Wagner announced.

According to court documents, on February 1, 2013, Morales possessed between 300 and 600 images depicting minors engaged in sexually explicit conduct. The images also involved the portrayal of sadistic, masochistic, and other depictions of violence, and included depictions of pre-pubescent minors.

Morales is scheduled to be sentenced by United States District Judge Lawrence J. O’Neill on March 17, 2014. In light of a prior conviction, Morales faces a minimum statutory sentence 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.

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

“Tragically, this case is not an anomaly — it’s all too common for child sexual predators to reoffend,” said Mike Prado, resident agent in charge for Homeland Security Investigations (HSI) in Fresno. “That’s why HSI and its law enforcement partners must remain unceasingly vigilant. It’s the only way to protect our youth and ensure that individuals, like this defendant, are held accountable for their crimes.”

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

Plea Agreement

FRESNO, Calif. — Rafael Velasco, 36, of Madera, was sentenced today by United States District Judge Lawrence J. O’Neill to 14 years in prison for conspiracy to distribute and possess with intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.

Velasco was the last of seven defendants charged in related cases. The other defendants sentenced are:

• Gonzalo Esquivel, aka “Gunner,” 34, of Los Banos, sentenced to 15 years and five months in prison on November 4, 2013;
• Efren Steve Jiminez, aka “Grande,” 33, of Los Banos, was sentenced to 10 years in prison on November 4, 2013;
• Kenneth Hernandez, aka “Kenny,” 30, of Dos Palos, was sentenced to 12 years and four months in prison on December 2, 2013;
• Gustavo Moreno, aka “Gus Gus,” 33, of Madera, was sentenced to 12 years and four months in prison on September 23, 2013;
• David Torres, 33, of Madera, was sentenced to 10 years in prison on September 23, 2013; and
• Juan Herrera, aka “Joker,” of Madera, was sentenced to 16 years in prison on November 1, 2013.

According to court documents, the defendants were members or associates of the Norteño criminal street gang, which is under the control of the Nuestra Familia prison gang (NF). The NF utilizes the Norteños to engage in narcotics sales.

“The collaboration of federal, state, and local law enforcement agencies in this case was outstanding,” said U.S. Attorney Wagner. “Together, we have removed seven dangerous criminals from our neighborhoods for many years to come. The sentencing of Rafael Velasco concludes this case, but our collective efforts to root out and prosecute violent gang members who traffic in narcotics in the Central Valley continue to be vigorous.”

According to court documents, Velasco provided Juan Herrera with 1/8 of an ounce of methamphetamine to be included in a “package” to be delivered to individuals incarcerated at the Madera County Jail. On June 7, 2011, Velasco carried a Glock 9 mm Model 19 pistol in a lunch bag that also contained approximately one ounce of methamphetamine to his car. He was arrested within minutes of doing so, and the gun and methamphetamine was seized by law enforcement agents.

This case was the product of an investigation by the California Department of Justice Bureau of Investigation in coordination with the Drug Enforcement Administration, the Madera Narcotic Enforcement Team, the Merced Multi-Agency Narcotic Task Force, the Merced Multi-Agency Gang Task Force, the Los Banos Police Department, the Merced Police Department, the Madera Police Department, the Madera County Sheriff’s Office, and the Livingston Police Department. Assistant United States Attorney Kimberly A. Sanchez prosecuted the case.

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

Fresno, Calif. — United States District Judge Anthony W. Ishii sentenced Jon Smilanick, 36, of Fresno, today to 30 months in prison for possession of a pipe bomb in violation of the National Firearms Act, United States Attorney Benjamin B. Wagner announced.

According to court documents, on January 9, 2013, police were called to Smilanick’s ex-neighbors’ home with the report of a bomb detonating. They found the remnants of a detonated pipe bomb. The ex-neighbors reported that they believed that Smilanick had detonated the device as they had had ongoing problems with him.

According to the plea agreement, police obtained a search warrant for Smilanick’s residence and found bomb-making materials in the garage and a live pipe bomb in the house. Smilanick’s wife said that she had hidden the bomb because she did not want him to have it. While at the residence, another neighbor came by and told police that on two occasions, he heard explosions from the area of Smilanick residence and had once seen a man matching Smilanick’s build throw something over the back fence and then heard a loud explosion. Officers went to the area to which the neighbor directed them and found remnants of two different devices.

Smilanick admitted to manufacturing the devices. He referred to them as “firecrackers.” He said he had been making them since he was in the sixth grade. He said he taught himself to make pipe bombs, and that he had made three this year. None of the devices were registered with the National Registration and Transfer Record.

“This investigation is an example of the excellent cooperation we have with both the Fresno Police Department and the community as a whole. Because of this cooperation, we were able to seize these dangerous explosive devices, and ensure the violator faces justice,” said ATF Special Agent in Charge Joseph Riehl

This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Fresno Police Department. Assistant United States Attorney Kimberly A. Sanchez prosecuted the case.

FRESNO, Calif. — William George Gray, 51, of Bakersfield, was sentenced today by Senior United States District Judge Anthony W. Ishii to 7 years and 3 months in prison, to be followed by 10 years of supervised release, for receipt of child pornography, United States Attorney Benjamin B. Wagner announced.

According to court documents, between October 30, 2011, and January 2, 2013, Gray received more than 600 images depicting minors engaged in sexually explicit conduct. The images also involved the portrayal of sadistic, masochistic, and other depictions of violence, and included depictions of pre-pubescent minors.

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

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