Northern District of California
Press releases recorded for this federal judicial district.
The Fraud Division Launches West Coast Strike Force to Target Health Care Fraud Schemes Across Arizona, Nevada, and Northern CaliforniaRead the Press Release
SAN FRANCISCO – The Justice Department’s National Fraud Enforcement Division (Fraud Division) today announced the formation of the West Coast Health Care Fraud Strike Force, a multi-district enforcement initiative uniting the Division’s Health Care Fraud Section with the U.S. Attorney’s Offices for the District of Arizona, District of Nevada, and Northern District of California. The Health Care Strike Force model has proven to be one of the most powerful tools in the federal enforcement arsenal, responsible nationally for the prosecution of over 6,200 defendants who collectively billed federal health care programs and private insurers more than $45 billion.
“Silicon Valley has become ground zero for technology-driven health care fraud schemes that seek to cheat taxpayer-funded programs like Medicare,” said Craig H. Missakian, U.S. Attorney for the Northern District of California. “The Health Care Strike Force announced today is a powerful partnership that brings together the resources and expertise needed to detect and dismantle even the most sophisticated fraud schemes.”
“Driven by data showing a significant and accelerating increase in health care fraud across all three districts, the Strike Force builds on a foundation of recent landmark prosecutions — including the successful prosecution of digital health technology executives in the Northern District of California and the dismantling of Medicaid, sober home, and wound care fraud schemes in the District of Arizona,” said Assistant Attorney General Colin McDonald of the Justice Department’s Fraud Division. “The Fraud Division is committed to bringing that same relentless, data-driven prosecutorial force to bear across every corner of this region, making unmistakably clear that no scheme is too sophisticated, no network too large or small, and no fraudster too distant to escape federal accountability.”
“Defrauding the government steals from Americans who need help the most. In Arizona alone, federal law enforcement and the United States Attorney’s Office have disrupted fraud schemes worth over a billion dollars of taxpayer money,” said Timothy Courchaine, U.S. Attorney for the District of Arizona. “Our mission as part of the West Coast Health Care Fraud Strike Force is to ensure Americans who need critical services are not used as pawns to make bad actors rich. Through excellent investigations, trial work, and seizures of ill-gotten gains, the District of Arizona will continue safeguarding those services.”
“The dedicated Assistant U.S. Attorneys and professional staff in the District of Nevada are working in coordination with our partners at the FBI, HHS, DEA and other federal, state, and local agencies to unravel fraud schemes and to hold criminals fully accountable,” said First Assistant U.S. Attorney Sigal Chattah for the District of Nevada. “With each indictment and conviction, we are achieving justice for victims who were taken advantage of by these fraudsters. We are proud to be part of the newly created West Coast Health Care Fraud Strike Force and we are committed to bringing our skill and expertise to the Justice Department’s fight against fraud.”
This expansion brings enhanced federal enforcement resources to one of the nation’s most significant health care technology hubs in the Northern District of California and what data analytics show is the migration of fraud schemes to Arizona and Nevada. Late last year in San Francisco, the CEO and Chief Medical Officer of a digital technology company were convicted for an over $100 million scheme to commit health care fraud and distribute over Adderall over the internet, resulting in addiction and patient harm. These convictions followed other recent high-impact prosecutions that were jointly prosecuted by the Strike Force and U.S. Attorneys’ Offices prosecutors:
- United States v. Gehrke and King (DAZ): Two wound graft company owners pled guilty and were sentenced to 15.5 and 14 years in prison for a $1.2 billion wound graft fraud scheme targeting Medicare and Medicaid. The Government seized $126 million in assets, including cash, luxury vehicles, and gold bars, related to this case.
- United States v. Ali (DAZ): The owner of a Pakistan-based medical billing company was indicted in June 2025 for an alleged scheme involving the exploitation of substance abuse patients at over 41 substance abuse treatment clinics that fraudulently billed Arizona Medicaid over $650 million. The defendant is a Pakistani national and fugitive from justice.
- United States v. Schena (NDCA): The president of a Silicon Valley-based medical technology company was convicted at trial and sentenced to eight years in prison in the first criminal securities fraud case related to COVID-19 charged by the Justice Department, the first criminal COVID-19 health care fraud case brought to trial, and a significant prosecution delineating the scope of the Eliminating Kickbacks in Recovery Act. United States v. Schena, No. 23-2989 (9th Cir. 2025).
As part of the expansion, Health Care Fraud Acting Chief Jacob Foster and Acting Assistant Chief Gary Winters will coordinate closely with the U.S. Attorneys’ Offices to establish the Strike Force. The Strike Force will work in partnership with the HHS Office of Inspector General, the Federal Bureau of Investigation, the Drug Enforcement Administration, and other law enforcement partners, reflecting the Department’s determination that the need for coordinated, aggressive action in this region is urgent and undeniable. Health care fraud in these districts imposes an enormous and growing burden on American taxpayers and undermines the integrity of Medicare, Medicaid, and TRICARE. The victims are real: elderly patients denied access to legitimate care, disabled individuals whose benefits are stolen by criminal networks, and low-income families who rely on these programs for basic medical services. The Strike Force’s west coast expansion makes clear that the Fraud Division will use every available legal tool to identify, investigate, and prosecute these offenses. Members of the public are encouraged to report wrongdoing in the health care industry, and the new Department-wide corporate enforcement policy for criminal matters creates incentives for companies to voluntarily disclose when misconduct occurs.
“DEA’s involvement in the West Coast Fraud Task Force demonstrates our continued commitment to work across government to safeguard the health and safety of our communities. Our message to health care professionals who profit their patients’ pain is clear: if you use your license to harm the public, you will be held accountable,” said Assistant Administrator Cheri Oz, DEA Diversion Control Division. “Whether you are a medical professional who diverts controlled substances, like Adderall or Xanax, or a criminal enterprise that defrauds federal health care programs and private insurers, DEA will continue its pursuit of those who exploit our health care system and poison our communities.”
“The FBI is proud of the work we do to combat health care fraud, and we are eager to continue investigating those who illegally abuse our systems,” said Assistant Director Heith Janke of the FBI’s Criminal Investigative Division. “This Strike Force allows for further joint actions that will prevent more criminals from lining their pockets at the expense of the American taxpayer. We look forward to playing our part in this whole-of-government approach to combating these schemes.”
“Strike Force partnerships between HHS-OIG, DOJ, U.S. Attorney’s Offices, the FBI, and the DEA are a proven force multiplier that utilizes a coordinated and data-driven approach to identifying, investigating, and prosecuting fraud,” said Acting Deputy Inspector General for Investigations Scott J. Lampert of the U.S. Department of Health and Human Services, Office of Inspector General (HHS OIG). “Recent enforcement actions across Arizona, Nevada, and California have revealed emerging threats targeting billions of taxpayer dollars from federal health care programs. Many of these schemes are driven by sham operations designed to appear legitimate while exploiting patients and inflating claims through increasingly sophisticated methods. The expansion of the West Coast Health Care Fraud Strike Force ensures that HHS OIG can apply our investigative tools and coordinated enforcement capabilities to identify these threats earlier and act with strategic precision.”
The establishment of the West Coast Strike Force builds on the recent expansion of the Strike Force program to the District of Massachusetts and a record-setting year for health care enforcement in 2025—leading the largest ever National Health Care Fraud Takedown, charging more than $15 billion in alleged loss, forfeiting and returning to the public fisc more than $560 million, and bringing four corporate matters. A third-party consulting group analyzed return on investment and showed that the average return on investment (FY21-24) from funding the Health Care Fraud Section by year 10 is $106.76 per $1 spent, and over $4.5 billion in projected savings.
On April 7, the Department of Justice announced the creation of the Fraud Division. The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
San Francisco Caregiver Charged with Tax EvasionRead the Press Release
SAN FRANCISCO – A federal grand jury has indicted Elsie Eclevia Curameng on charges of tax evasion and filing false tax returns for calendar years 2019 through 2022. Curameng made an initial appearance in federal court in San Francisco this morning.
According to the indictment filed April 7, 2026, and unsealed today, Curameng, 68, of San Francisco, is alleged to have evaded assessment of taxes on at least $1.5 million of unreported income. From at least 2008 through 2022, Curameng was an in-home caregiver for a client, G.C., whom she provided support in activities of daily living as well as managed her client’s finances. As part of her financial duties, Curameng paid herself and the client’s other caregivers. From 2019 through 2022, Curameng received hundreds of checks from G.C. totaling over $2.2 million – $1.5 million of those checks were noted as payments for nursing services and vacation pay. Curameng deposited substantially all of those paychecks into her personal bank accounts.
For calendar years 2019 through 2022, Curameng filed tax returns but did not report any of the income from her services to G.C. on those tax returns. As a result, Curameng owed additional taxes that would have been assessed if she had filed accurate returns. Additionally, for tax years 2019 and 2020, Curameng filed not one but two false tax returns that omitted the income from her services to G.C.
United States Attorney Craig H. Missakian and Linda Nguyen, Special Agent in Charge of IRS Criminal Investigation (IRS-CI) - Oakland Field Office, made the announcement.
Curameng was released on bond. Curameng is next scheduled to appear in district court on May 20, 2026 for a status conference before U.S. District Judge Charles Breyer.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of five years in prison and a fine of $100,000 for each count of tax evasion, in violation of 26 U.S.C. § 7201, and three years in prison and a fine of $100,000 for each count of filing a false tax return, in violation of 26 U.S.C. § 7206(1). Any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Sara E. Henderson is prosecuting the case with the assistance of Tina Rosenbaum. The prosecution is the result of an investigation by IRS-CI.
Texas Man Faces Multiple Federal Charges Related to Attack on AI Company and Its CEORead the Press Release
SAN FRANCISCO – A Texas man was charged federally today with attempted damage and destruction of property by means of explosives and possession of an unregistered firearm after he threw a Molotov cocktail at a San Francisco residence and attempted to set a related business on fire on April 10, 2026.
According to the federal criminal complaint filed today, Daniel Moreno-Gama, 20, of Spring, Texas, is alleged to have traveled to San Francisco from Texas in order to kill the CEO of a major Artificial Intelligence (“AI”) company. Moreno-Gama allegedly approached the residences of the CEO, threw a Molotov cocktail, and then fled the premises.
“Violence cannot be the norm for expressing disagreement, be it with politics or a technology or any other matter,” said Acting Attorney General Todd Blanche. “These alleged actions – which damaged property and could well have taken lives – will be aggressively prosecuted.”
“We will not tolerate any attempt to change the way Americans live and work through fear or violence,” said United States Attorney Craig Missakian. “We are only at the beginning of this investigation, but if the evidence shows that Mr. Moreno-Gama executed these attacks to change public policy or to coerce government and other officials, we will treat this as an act of domestic terrorism and together with our law enforcement partners prosecute him to the fullest extent allowed by law.”
“The charges announced today reflect a deeply concerning escalation from intent to action targeting a private residence and a technology company with violence. The FBI will not tolerate threats against our nation’s innovation leaders or the companies that drive our economy forward. Acts of destruction aimed at the tech sector will be met with the full force of law enforcement. This case underscores the strength of our partnership with the San Francisco Police Department. Together, we remain committed to identifying, disrupting, and holding accountable anyone who seeks to bring violence to our communities.” said Federal Bureau of Investigation Acting Special Agent in Charge Matt Cobo.
After throwing a Molotov cocktail at the CEO’s residences, Moreno-Gama allegedly went to the headquarters of the CEO’s AI company. Moreno-Gama attempted to break the glass doors of the building with a chair and stated that he had come to burn down the location and kill anyone inside.
Moreno-Gama striking the glass doors with a chair (above).
Moreno-Gama being approached by security while holding kerosene (above).
The complaint describes that when San Francisco Police Department (“SFPD”) officers arrived on scene, they found Moreno-Gama in possession of incendiary devices, a jug of kerosene, a blue lighter, and a document. The first part of the document, entitled “Your Last Warning” by Daniel Moreno-Gama, advocated against AI and for the killing and commission of other crimes against CEOs of AI companies and their investors, listing names and addresses that purported to belong to multiple CEOs and investors. In the document, Moreno-Gama admitted to attempting to kill the victim CEO and requested others to join his movement.
Moreno-Gama ended the document with a letter addressed to the victim CEO, writing “If by some miracle you live, then I would take this as a sign from the divine to redeem yourself…”
Law enforcement later learned that on the same day he committed these attacks, Moreno-Gama also emailed a version of the document to representatives at his former college back in Texas.
A criminal complaint merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Moreno-Gama faces a mandatory minimum sentence of five years’ imprisonment and a maximum sentence of 20 years’ imprisonment for damage and destruction of property by means of explosives, and a maximum sentence of 10 years’ imprisonment for possession of an unregistered firearm. Any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Alexis James is prosecuting the case. The prosecution is the result of an investigation by FBI and SFPD.
Moreno-Gama Complaint
San Ramon Man Indicted on Charge of Using Online Platforms to Coerce and Entice Nine Minor Victims to Engage in Sexual ActivityRead the Press Release
OAKLAND – A federal grand jury indicted a San Ramon man, Ishaq Ikharo, on charges of coercion and enticement of nine minor victims to engage in sexual activity.
According to the indictment filed on February 11, 2026, and court documents from April 2022 to September 2024, Ikharo, 28, used several online chat and gaming platforms to communicate with minor victims to persuade, entice, and coerce nine different minor victims who were under 18 years of age to engage in sexual activity. At the time of the alleged offenses, Ikharo was on federal supervised release for a 2023 conviction in the Western District of New York for possession of child pornography.
United States Attorney Craig H. Missakian and FBI Acting Special Agent in Charge Matt Cobo made the announcement.
Ikharo has been in custody since June 30, 2025. He is next scheduled to appear in district court on July 30, 2026, for a status conference before U.S. District Judge Yvonne Gonzalez Rogers.
Anyone who has information relevant to this case can report it by contacting the FBI at 1-800-CALL-FBI (1-800-225-5323) or tips.fbi.gov, or visit the following, dedicated website:
https://www.fbi.gov/how-we-can-help-you/victim-services/seeking-victim-information/seeking-victim-information-in-ishaq-ikharo-investigation-aka-shaq-investigation
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a minimum of 10 years in prison and a maximum sentence of life in prison and a $250,000 fine for each violation of 18 U.S.C. §2422(b). Any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Special Assistant U.S. Attorney Zachary M. Glimcher and Assistant U.S. Attorney Kelly Volkar are prosecuting the case with the assistance of Amala James and Jessie Chelsea. The prosecution is the result of an investigation by FBI Special Agent Adelaida Hernandez.
Drug Dealer Caught with More Than 1 Kilogram of Fentanyl Who Continued Selling Drugs After Absconding Sentenced to Eight Year Prison TermRead the Press Release
SAN FRANCISCO – Cristian Diaz-Villatoro was sentenced yesterday to eight years in federal prison for possession with intent to distribute fentanyl, as well as possession with intent to distribute and distribution of methamphetamine. U.S. District Judge Charles R. Breyer handed down the sentence.
Diaz-Villatoro, 33, a national of Honduras, was indicted by a federal grand jury on October 18, 2022. Diaz-Villatoro pleaded guilty on December 10, 2025, to all counts charged in the indictment, including possession with intent to distribute fentanyl and methamphetamine.
According to court documents, Diaz-Villatoro sold a Marin County undercover detective several ounces of methamphetamine on multiple occasions in July and August 2022. During that time period, cell phone location information showed Diaz-Villatoro would regularly travel from his residence in Oakland to the open-air drug markets in the Tenderloin in San Francisco, where he would remain for six-hour periods at night. In September 2022, Diaz-Villatoro was arrested and a search of the defendant’s car led to the seizure of more than 1,000 grams of fentanyl and more than 200 grams of methamphetamine, along with large amounts of heroin, cocaine, and a digital scale, as depicted below:
After he was indicted by a federal grand jury, Diaz-Villatoro was ordered released on bond. He then fled from the Northern District of California and was a fugitive for approximately 10 months. In May 2024, Diaz-Villatoro was arrested by Oregon State Police with one third of a pound of fentanyl in his car, which he said he was transporting to Portland. Cell phones belonging to Diaz-Villatoro that were seized at the time of his arrest in Oregon contained communications showing him repeatedly coordinating sales of fentanyl and other unknown narcotics while he was a fugitive.
United States Attorney Craig H. Missakian and Drug Enforcement Administration (DEA) Special Agent in Charge Bob P. Beris made the announcement.
In addition to the prison term, Judge Breyer also sentenced the defendant to a five-year period of supervised release once his prison term is completed. The defendant was immediately remanded into custody.
Assistant U.S. Attorney Jared S. Buszin is prosecuting the case with the assistance of Tina Rosenbaum and Kevin Costello. The prosecution is the result of an investigation by the DEA, with assistance from the Marin County Sheriff’s Office.
San Jose Man Pleads Guilty to Robbing and Assaulting A U.S. Postal Service Letter CarrierRead the Press Release
SAN JOSE –Robert Cordova, also known as Robert Cordona, pleaded guilty in federal court to one count of Robbery of a United States Mail Carrier and one count of Assaulting a Federal Employee.
Cordova, 49, of San Jose, was indicted by a federal grand jury on January 23, 2025, on charges of robbery and assault. He pleaded guilty to both counts of the indictment. In connection with pleading guilty, Cordova admitted that he went inside a United States Postal Service (USPS) mail truck with the intent to steal mail. A USPS letter carrier approached him as Cordova was taking mail. Cordova punched the letter carrier in the face, knocking him to the ground. Cordova then got on top of the letter carrier and continued to punch him several times in the face and head.
United States Attorney Craig H. Missakian and U.S. Postal Inspection Service (USPIS) San Francisco Division Inspector in Charge Stephen M. Sherwood made the announcement.
Cordova’s sentencing hearing is scheduled for June 2, 2026 before U.S. District Court Judge Beth Labson Freeman. Cordova faces a maximum statutory penalty of 25 years in prison and a $250,000 fine for Robbery of a United States Mail Carrier in violation of 18 U.S.C. § 2114(a) and 20 years in prison and a $250,000 fine for Assaulting a Federal Employee in violation of 18 U.S.C. § 111(a) and (b). Any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Neal C. Hong is prosecuting the case with the assistance of Sahib Kaur. This prosecution is the result of an investigation by USPIS and the San Jose Police Department.
Ten Foreign Nationals Charged in an International Operation Targeting Cryptocurrency Market ManipulationRead the Press Release
OAKLAND – Federal grand juries indicted ten executives and employees of four different cryptocurrency financial services firms (known as “market makers”) for orchestrating fraud schemes to artificially inflate the trading volume and price of cryptocurrencies. Three defendants, including two chief executive officers, were arrested and extradited from Singapore and made their initial appearance in federal court in Oakland today.
Employees from the four firms, Gotbit, Vortex, Antier, and Contrarian, have been charged in three separate indictments. The indictments allege that the defendants not only conspired to inflate the trading volume and price of cryptocurrencies but also profited through the sale of the cryptocurrencies at inflated prices to unwitting investors. These so-called pump-and-dump schemes caused losses to investors in the United States and elsewhere. In addition to the three extradited defendants, two others have already pled guilty and were sentenced by U.S. District Court Judge Araceli Martínez-Olguín. More than $1 million in cryptocurrency has been seized to date.
The indictments and arrests were the result of an undercover operation by the Federal Bureau of Investigation (FBI) and IRS Criminal Investigation (IRS-CI) targeting illicit “wash trading” in the cryptocurrency industry. As part of the undercover operation, the FBI created several cryptocurrency tokens.
According to the indictments, all of the schemes followed a similar pattern. The defendants acted as illicit market makers by “wash trading” the cryptocurrency to artificially inflate the trading volume and price. As described in the indictment, wash trading occurs when a single trader, or a number of traders, working in coordination, act as both the buyer and the seller in the same transaction or a series of transactions. This fraudulent trading tactic creates the appearance that these cryptocurrencies have more active, organic trading than really exists, thereby inducing investors to purchase the cryptocurrencies at artificially inflated prices.
On March 25, 2025, a federal grand jury in San Francisco, California indicted Taiwanese national Antoine Tsao (Business Development Manager for Gotbit), Russian national Ian Sofronov (Sales Manager for Gotbit), and Serbian national Nemanja Popov (Account Manager for Gotbit) on charges of wire fraud conspiracy and wire fraud for a scheme to artificially inflate the price of a cryptocurrency token. Tsao was arrested at John F. Kennedy International Airport on March 30, 2025. On June 2, 2025, Tsao pled guilty to conspiracy to commit wire fraud and was sentenced by U.S. District Court Judge Araceli Martínez-Olguín in Oakland, California. Nemanja Popov was arrested at San Francisco International Airport, and pled guilty and was sentenced on February 10, 2026, by U.S. District Court Judge Araceli Martínez-Olguín.
On August 28, 2025, a federal grand jury in Oakland, California indicted Russian nationals Gleb Gora, 24, (Chief Executive Officer of Vortex), Sergei Ryzhkov (Chief Financial Officer of Vortex), and Michael Vogel (Business Development Manager for Vortex) on charges of wire fraud conspiracy and wire fraud for a scheme to artificially inflate the price of a cryptocurrency token while planning to liquidate their holdings once trading reached a high price. Gora was arrested in Singapore on October 2, 2025, at the request of the United States. Gora made his initial appearance before a U.S. Magistrate Judge today in Oakland following his extradition from Singapore.
On September 4, 2025, a federal grand jury in Oakland, California, indicted Indian nationals Manu Singh, 34, (Chief Executive Officer of Contrarian), Kushagra Srivastava (Chief Financial Officer of Contrarian), Vasu Sharma, 26, (Business Development Associate at Contrarian), and Sabby Singh, a Business Development Manager at a Contrarian partner firm Antier Solutions Private Limited. The defendants were charged with wire fraud and wire fraud conspiracy for a scheme to pump up the price of a cryptocurrency token while at the same time planning to dump their holdings of the token when it reached a high trading price. Defendants Manu Singh and Vasu Sharma were arrested in Singapore on October 2, 2025, at the request of the United States, and made their initial appearances before a U.S. Magistrate Judge today in Oakland following their extradition from Singapore.
Defendants Gora, Singh, and Sharma are currently in federal custody.
United States Attorney Craig H. Missakian, FBI Acting Special Agent in Charge Matt Cobo, and IRS-CI Oakland Field Office Special Agent in Charge Linda Nguyen made the announcement.
Valuable assistance was provided by the Federal Bureau of Investigation’s Law Enforcement Attaché’s Office in Singapore and the Justice Department’s Office of International Affairs, working with the Singapore Police Force and Attorney General’s Chambers, for securing the arrests and extraditions of Gora, Singh, and Sharma to the United States.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants face a maximum sentence of 20 years in prison and a fine of $250,000 for each violation of 18 U.S.C. §§ 1343 and 1349. Any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Benjamin K. Kleinman, Daniel M. Pastor, and Molly K. Priedeman are prosecuting the cases with the assistance of Amala James. The prosecution is the result of an investigation led by the FBI with the assistance of IRS-CI.
San Jose Man Sentenced to 30 Years in Prison Following His Second Federal Child Exploitation ConvictionRead the Press Release
SAN JOSE – Christopher Schuette was sentenced yesterday to 30 years in federal prison following his conviction at trial on charges of possession of child pornography and attempted enticement of a minor. U.S. District Judge Beth Labson Freeman handed down the sentence.
Schuette, 42, of San Jose, was indicted by a federal grand jury on June 22, 2022, on one count of possession of child pornography. The government obtained a superseding indictment on October 12, 2022, that added a charge of attempted enticement of a minor. On January 25, 2023, a jury found Schuette guilty of both charges.
According to court documents and evidence presented at trial, Schuette—who had been released from prison in December 2021 following a previous federal conviction for, among other crimes, distribution of child pornography—was arrested in February 2022 in possession of a smartphone that contained more than 1,200 images of child pornography. Subsequent investigation revealed that Schuette had been using multiple Instagram profiles to communicate with others about child pornography. For example, Schuette enticed one Instagram user who said she was an 11-year-old girl to create and send him sexually explicit videos of herself and others. And he told another Instagram user that he was particularly attracted to girls 7-12 years old.
United States Attorney Craig H. Missakian and FBI Acting Special Agent in Charge Matt Cobo made the announcement.
Schuette has been in custody since he was arrested in February 2022. He will begin serving his prison term immediately. In addition to the prison term, Judge Freeman ordered Schuette to serve a lifetime of supervised release following his prison term and to pay restitution in an amount to be determined at a later date to the victims of his crimes.
Assistant U.S. Attorney Nicholas M. Parker is prosecuting the case with the assistance of Laurie Worthen. The prosecution is the result of an investigation by the FBI.
Drug Dealer with Tenderloin Ties Sentenced to Eight Years in Federal Prison for Possession with Intent to Distribute FentanylRead the Press Release
SAN FRANCISCO – Andy Cruz was sentenced today to 96 months in federal prison for possession with intent to distribute 40 grams or more of fentanyl and failure to appear in court as required by conditions of release. Senior U.S. District Judge Charles R. Breyer handed down the sentence.
Cruz, 40, who previously resided in Oakland, was initially charged by complaint on Oct. 11, 2023, and by indictment on October 25, 2023, on drug charges. On November 6, 2023, Cruz was released on bond. Around February 2024, Cruz absconded. As a result, he was separately indicted by a federal grand jury on April 2, 2024, for failure to appear in court and contempt of court. On May 6, 2025, Cruz was located and arrested. On January 29, 2026, Cruz was charged by a superseding information on drug charges.
On March 25, 2026, Cruz pleaded guilty to one count of possession with intent to distribute 40 grams or more of fentanyl and one count of failure to appear before a court as required by conditions of release. According to court documents and proceedings, Cruz has been selling drugs in San Francisco and elsewhere since 2008. In 2023, officers observed Cruz engage in a suspected drug transaction in the Tenderloin District of San Francisco, which led to his arrest and a search of his person. That search uncovered multiple suspected controlled substances. Officers have also observed Cruz conduct several additional suspected drug transactions from his car, as well as suspected drug transports throughout the San Francisco Bay Area. On October 5, 2023, officers executed a search warrant at Cruz’s residence, and searched his car and person, recovering nearly one kilogram of fentanyl, 76 grams of heroin, and 25 grams of methamphetamine, as well as drug paraphernalia.
Cruz has remained in custody since his most recent arrest and was remanded into custody following sentencing. In addition to the term of imprisonment, Judge Breyer ordered Cruz to serve four years of supervised release to begin after his prison term is completed.
United States Attorney Craig H. Missakian and Drug Enforcement Administration (DEA) Special Agent in Charge Bob P. Beris made the announcement.
Assistant United States Attorney Kevin Yeh prosecuted the case. The prosecution is the result of an investigation by the DEA.
Last of Former Antioch and Pittsburg Police Officers Sentenced to More Than Four Years in Federal PrisonRead the Press Release
OAKLAND – In 2023 and 2024, the U.S. Attorney’s Office for the Northern District of California charged ten current and former officers and employees from the Antioch and Pittsburg police departments with crimes ranging from conspiracy to violate civil rights through excessive use of force to fraud. The last of the ten defendants, Eric Allen Rombough, 46, of Fairfield, was sentenced today to 50 months of imprisonment. Senior U.S. District Judge Jeffrey S. White handed down all of the sentences. With Rombough’s sentence, the total sentences for all ten defendants exceeds 21 years.
“We entrust law enforcement with vast power, and when they abuse it, they not only betray the oath they took and the community they serve, but they also undermine the public’s trust in our criminal justice system,” said United States Attorney Craig H. Missakian. “Eric Rombough’s sentencing is an important milestone in our successful, multi-year effort to root out corruption within the Antioch and Pittsburg police departments and we will continue to hold accountable anyone who violates federal law, regardless of their position.”
“The sentencing of Eric Rombough marks the culmination of a years-long investigation driven by the relentless work of FBI agents, analysts, and our law enforcement partners who refused to overlook misconduct, regardless of position or authority. This case underscores a fundamental truth: no one is above the law, especially those entrusted to uphold it. When officers abuse their authority, they undermine the very foundation of public trust. The FBI remains steadfast in pursuing those who betray that trust, and we will continue working to ensure accountability and to help restore confidence in the institutions that serve our communities,” said Federal Bureau of Investigation Acting Special Agent in Charge Matt Cobo.
Case No. 23-cr-269 JSW – Civil Rights Violations and Falsification of Records
Rombough, Morteza Amiri, 35, of Antioch, and Devon Christopher Wenger, 33, formerly of Oakley, were charged with conspiring to deprive the residents of Antioch of their civil rights through the use of excessive force, and deprivation of rights under color of law, among other violations. In January 2025, Rombough pleaded guilty to conspiracy against rights and two counts of deprivation of rights under color of law and agreed to cooperate with the government. According to Rombough’s plea agreement and the evidence presented during two trials, Amiri, Rombough, and Wenger communicated about actual and intended uses of force, including specific violent acts against individuals in and around Antioch, and agreed to carry out such acts knowing their actions constituted excessive uses of force by a police officer under color of law. In particular, they agreed to and/or did deploy uses of force, including police dog bites, as “punishment” to subjects beyond any punishment appropriately imposed by the criminal justice system, collected physical or photographic “trophies” following such deployments of excessive force, and communicated after the deployments to tout the applications of force with the exchange of messages and photographs of subjects’ injuries. They also authored reports that contained false or misleading statements to suggest that the force used was necessary or justifiable, when in truth and in fact, they willfully used excessive force.
In March 2025, following an eight-day trial, a jury found Amiri guilty of one count of deprivation of rights under color of law and one count of falsification of records in connection with a July 2019 arrest. Amiri was sentenced to 84 months in prison for these violations and the additional crimes set out below. In September 2025, following a seven-day trial, a jury convicted Wenger of conspiracy against rights. Wenger was sentenced to 90 months in prison for this violation and the additional crimes set out below.
Case No. 23-cr-264 JSW – Salary & Incentives Fraud
Patrick James Berhan, 33, of Oakley; Amiri; Amanda Carmella Theodosy a/k/a Nash, 35, of Discovery Bay; Samantha Genoveva Peterson, 33, of Fairfield; Ernesto Mejia-Orozco, 37, of Oakley; and Brauli Rodriguez Jalapa, 36, of Clayton, were charged with conspiracy to commit wire fraud and wire fraud related to a scheme to obtain pay raises from the police departments of the cities of Antioch and Pittsburg for university degrees they each paid someone else to obtain in their names.
Peterson pleaded guilty to wire fraud in January 2024. Berhan pleaded guilty in March 2024 to conspiracy and wire fraud, and pleaded guilty to an additional charge for possession with intent to distribute anabolic steroids. Berhan was sentenced to 30 months of imprisonment. In June 2024, Mejia-Orozco and Rodriguez Jalapa pleaded guilty to conspiracy and wire fraud. In July 2024, Theodosy a/k/a Nash pleaded guilty to conspiracy and wire fraud. Mejia-Orozco, Rodriguez Jalapa, and Theodosy a/k/a Nash were each sentenced to three months of imprisonment. In August 2024, following a four-day trial, a jury found Amiri guilty of conspiracy and wire fraud.
Case No. 23-cr-268 JSW – Distribution of Anabolic Steroids and Destruction of Records
Daniel James Harris, 38, formerly of Discovery Bay, and Wenger were charged with conspiracy to distribute and possess with intent to distribute anabolic steroids related to Harris’s distribution of anabolic steroids to Wenger and other police officers, and Wenger’s attempt to secure anabolic steroids from Harris for another friend. Based on these same events, Harris was also charged with attempted possession with intent to distribute anabolic steroids and possession to distribute anabolic steroids, and Wenger was charged with destruction, alteration, and falsification of records in federal investigations, the last of which was based on Wenger’s efforts to delete digital evidence of his discussions of anabolic steroids with Harris and his friend.
Harris pleaded guilty to these charges, pleaded guilty to an additional charge for bank fraud, and agreed to cooperate with the government in September 2024. Harris was sentenced to time served for these charges. In April 2025, following a three-day trial, a jury found Wenger guilty of conspiracy to distribute and possess with intent to distribute anabolic steroids and destruction, alteration, and falsification of records.
Case No. 23-cr-267 JSW – Obstruction of Justice
Timothy Manly Williams, 36, of Antioch, was charged with destruction, alteration, and falsification of records in federal investigations, obstruction of official proceedings, and deprivation of rights under color of law. The first two charges were related to a phone call Manly Williams placed while working as a police officer monitoring a wiretap to the subject of the wiretap, and his efforts to destroy or falsify records related to that phone call in the wiretap equipment. The third charge was related to Manly Williams’s knocking a cell phone out of the hand of a citizen who had attempted to record video of a police response at which Amiri deployed his dog to bite a suspect. Manly Williams pleaded guilty to these crimes and agreed to cooperate with the government on November 28, 2023. He was sentenced to 3 years of probation.
United States Attorney Craig H. Missakian and FBI Acting Special Agent in Charge Matt Cobo made the announcement.
These cases were prosecuted by the National Security & Special Prosecutions Section and the Oakland Branch of the United States Attorney’s Office for the Northern District of California. These prosecutions were the result of an investigation by the FBI and the Office of the Contra Costa County District Attorney.
The following table summarizes the outcomes of these related cases, all of which were before Senior U.S. District Judge Jeffrey S. White:
Case Name and NumberStatute(s)Defendant
(Bold: multiple case numbers)
StatusFraud
23-cr-00264
18 U.S.C. §§ 1349 (Conspiracy to Commit Wire Fraud; 1343 (Wire Fraud)Patrick BerhanSentenced to 30 months custody, 2 years supervised release concurrent with 24-cr-157 on 9/5/24Morteza AmiriSentenced to 84 months custody, 3 years supervised release concurrent with 23-cr-269 on 6/24/25Amanda Theodosy a/k/a NashSentenced to 3 months custody, 3 years supervised release 11/15/24Samantha PetersonSentenced to time served, 3 years supervised release on 4/24/24Ernesto Mejia-OrozcoSentenced to 3 months custody, 3 years supervised release on 9/19/24Brauli Jalapa RodriguezSentenced to 3 months custody, 3 years supervised release on 10/25/24Obstruction
23-cr-00267
18 U.S.C. §§ 1519 (Destruction, Alteration, and Falsification of Records in Federal Investigations); 1512(c)(2) (Obstruction of Official Proceedings); 242 (Deprivation of Rights Under Color of Law)Timothy Manly WilliamsCooperated with the government; sentenced to 3 years of probation on 1/13/2026Steroid Distribution
23-cr-00268
21 U.S.C. §§ 846 (Conspiracy to Distribute and Possess with Intent to Distribute Anabolic Steroids), 841(a)(1), and (b)(1)(E)(i) (Possession with Intent to Distribute Anabolic Steroids)Daniel HarrisCooperated with the government; sentenced to time served concurrent with 24-cr-502 on 1/13/202621 U.S.C. §§ 846, 841(a)(1), and (b)(1)(E)(i) (Conspiracy to Distribute and Possess with Intent to Distribute Anabolic Steroids);
18 U.S.C. § 1519 (Destruction, Alteration, and Falsification of Records in Federal Investigations)
Devon WengerSentenced to 90 months custody, 3 years supervised release, concurrent with 23-cr-269 on 12/2/2025Civil Rights
23-cr-00269
18 U.S.C. §§ 241 (Conspiracy Against Rights), 242 (Deprivation of Rights Under Color of Law); § 1519 (Destruction, Alteration, and Falsification of Records in Federal Investigations)Morteza AmiriSentenced to 84 months custody, 3 years supervised release concurrent with 23-cr-264 on 6/24/2518 U.S.C. §§ 241 (Conspiracy Against Rights), 242 (Deprivation of Rights Under Color of Law)Eric RomboughCooperated with the government; sentenced to 50 months custody on 3/24/202618 U.S.C. §§ 241 (Conspiracy Against Rights), 242 (Deprivation of Rights Under Color of Law)Devon WengerSentenced to 90 months custody, 3 years supervised release, concurrent with 23-cr-268 on 12/2/2025Steroid Distribution
24-cr-00157
21 U.S.C. §§ 841(a)(1) and (b)(1)(E)(i) (Possession with Intent to Distribute Anabolic Steroids)Patrick BerhanSentenced to 30 months custody, 2 years supervised release concurrent with 23-cr-264 on 9/5/24Bank fraud
24-cr-00502
18 U.S.C. § 1344(1), (2) (Bank fraud)Daniel HarrisCooperated with the government; sentenced to time served concurrent with 23-cr-268 on 1/13/2026Foreign National Charged with Orchestrating Health Care Fraud Scheme Targeting Medicare Advantage ProgramsRead the Press Release
SAN FRANCISCO – United States Attorney Craig H. Missakian announced criminal charges against an individual for perpetrating a large-scale fraud targeting federal health care funds distributed through the Medicare Advantage program. Anar Rustamov, a national of Azerbaijan who appears to have entered the United States illegally, was indicted yesterday by a federal grand jury and charged with health care fraud for a scheme involving thousands of false claims for medical equipment totaling more than $90 million.
According to the indictment, Rustamov, 38, formerly of Sunnyvale, California and a national of Azerbaijan, was part of a scheme to submit thousands of fraudulent claims to Medicare Advantage Organizations (“MAOs”) on behalf of unsuspecting beneficiaries for medical equipment such as blood glucose monitors and orthotic braces. The indictment alleges that Rustamov, from October 2024 through June 2025, executed a scheme through an entity Rustamov created, Dublin Helping Hand, to submit large volumes of claims to MAOs offering Medicare Part C benefit plans. The indictment alleges the scheme sought reimbursement of more than $90 million for medical equipment that was not provided, not needed by patients, and not authorized by a medical provider. The listed patients were unaware that Rustamov and others were submitting the claims, and the referring medical provider listed on the submissions did not authorize the claims, according to the indictment. The defendant is at large.
“When the Administration declared a War on Fraud, it meant to target exactly this kind of conduct. Rustamov participated in a scheme to steal nearly $100 million in taxpayer funds from a program intended to help those who truly need medical care,” said United States Attorney Craig H. Missakian. “Anyone who believes they can make easy money by defrauding such programs should know that we will continue to work with our law enforcement partners to identify, investigate, and prosecute such fraud and abuse.”
“This case alleges a calculated scheme to exploit a critical health care program for personal gain, attempting to siphon tens of millions of dollars through thousands of fraudulent claims for medical equipment. Programs like Medicare Advantage are funded by American taxpayers and exist to provide essential care to those who need it most — not to be manipulated for profit,” said Acting Special Agent in Charge Matt Cobo. “The FBI and our partners will continue to aggressively pursue individuals who attempt to defraud these vital programs and hold them accountable.”
“The criminal charges announced today reflect the seriousness with which we pursue schemes that undermine the Medicare Advantage program. The scheme alleged in this indictment targeted funds intended to provide necessary health care services to Medicare enrollees,” said Robb R. Breeden, Special Agent in Charge of the San Francisco Regional Office of the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG). “This indictment underscores that HHS-OIG, in collaboration with our law enforcement partners, will pursue those who attempt to exploit federal health care programs — no matter where they attempt to hide.”
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of 20 years in prison and a fine of $250,000 for each violation of 18 U.S.C. § 1347. Any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The case is being prosecuted by Assistant U.S. Attorney Maya Karwande with the assistance of Lynette Dixon. The prosecution is the result of an investigation by the U.S. Department of Health and Human Services Office of Inspector General and the Federal Bureau of Investigation.
Mendocino County Man Sentenced to 10.5 Years in Prison for Attempted Enticement of A Minor and Distribution of Child PornographyRead the Press Release
SAN FRANCISCO – A Mendocino County resident was sentenced yesterday to 126 months in federal prison for attempting to coerce and entice a minor to engage in sexual activity and distribution and possession of child pornography. U.S. District Judge Jaqueline Scott Corley handed down the sentence.
Nathanial Alfonso Burke, 34, of Willits, Calif., was indicted by a federal grand jury on May 9, 2024, and pleaded guilty on July 9, 2025, to one count of attempted coercion and enticement of a minor, one count of distribution of child pornography, and one count of possession of child pornography. According to the plea agreement, between February 22, 2024, through April 25, 2024, Burke messaged individuals whom he believed to be a father and his 11-year-old daughter, sending sexually explicit messages and child pornography via messaging applications. He eventually arranged a meeting with the father and 11-year-old to engage in sexual acts. Burke was arrested by law enforcement upon his arrival at the meet-up location with condoms in his pocket.
United States Attorney Craig H. Missakian and FBI Acting Special Agent in Charge Matt Cobo made the announcement.
Burke has been in custody since April 2024. He will begin serving his prison term immediately. In addition to the prison term, Judge Corley also ordered Burke to serve 15 years of supervised release which will begin after his term of imprisonment.
Assistant U.S. Attorney Sara E. Henderson is prosecuting the case with the assistance of Soana Katoa. The prosecution is the result of an investigation by the FBI with assistance from the Willits Police Department and Rohnert Park Department of Public Safety.
Adobe Agrees to $150 Million Settlement and Injunction to Resolve Alleged Violations of the Restore Online Shoppers’ Confidence ActRead the Press Release
SAN JOSE – The Justice Department announced today that it has filed a proposed stipulated order that, if entered by the court, will resolve a case against software company Adobe Inc. and two of its employees, Maninder Sawhney and David Wadhwani. The proposed order requires Adobe to pay $75 million in civil penalties and offer customers $75 million in free services to resolve allegations that the company’s subscription practices violated the Restore Online Shoppers’ Confidence Act (ROSCA).
ROSCA generally requires companies offering online subscriptions to clearly disclose important subscription information and to provide subscribers with simple ways to cancel. In a complaint filed in the U.S. District Court for the Northern District of California, the government alleged that Adobe violated ROSCA by using fine print and inconspicuous hyperlinks to hide important information about Adobe’s subscription plans, including information about a hefty Early Termination Fee that customers may be charged when they cancel their subscriptions. The government also alleged that Adobe thwarted subscribers’ attempts to cancel, subjecting them to convoluted and inefficient cancellation processes filled with unnecessary steps, delays, unsolicited offers, and warnings.
“American consumers deserve the right to make informed choices when deciding where to spend their hard-earned money,” said Assistant Attorney General Brett A. Shumate, head of the Justice Department’s Civil Division. “The Justice Department will strongly oppose any attempt to harm Americans with deceptive and unfair business practices.”
“Consumers should not have to navigate a digital maze to cancel a subscription,” said United States Attorney Craig H. Missakian for the Northern District of California. “We will continue to hold responsible any company that uses deceptive business practices to harm the consumer.”
In addition to civil penalties and free services, the stipulated order provides strong protections for American consumers going forward. Adobe will be required to clearly disclose any Early Termination Fee and how the fee is calculated before enrolling customers in subscriptions. For any free trial lasting longer than seven days, Adobe must also remind customers before converting them into a paid subscription with an Early Termination Fee. Furthermore, Adobe will be required to provide its subscribers with easy ways to cancel their subscriptions.
The United States is represented in this action by Trial Attorneys Francisco L. Unger and Zachary L. Cowan and Assistant Director Zachary A. Dietert, from the Enforcement Section of the Civil Division’s Enforcement and Affirmative Litigation Branch, with assistance from Assistant U.S. Attorney Savith S. Iyengar for the Northern District of California, in coordination with staff at the FTC’s Bureau of Consumer Protection.
Adobe Agrees to $150 Million Settlement and Injunction to Resolve Alleged Violations of the Restore Online Shoppers’ Confidence ActRead the Press Release
Note, the release has been updated to include a quote from U.S. Attorney Craig H. Missakian for the Northern District of California.
The Justice Department announced today that it has filed a proposed stipulated order that, if entered by the court, will resolve a case against software company Adobe Inc. and two of its employees, Maninder Sawhney and David Wadhwani. The proposed order requires Adobe to pay $75 million in civil penalties and offer customers $75 million in free services to resolve allegations that the company’s subscription practices violated the Restore Online Shoppers’ Confidence Act (ROSCA).
ROSCA generally requires companies offering online subscriptions to clearly disclose important subscription information and to provide subscribers with simple ways to cancel. In a complaint filed in the U.S. District Court for the Northern District of California, the government alleged that Adobe violated ROSCA by using fine print and inconspicuous hyperlinks to hide important information about Adobe’s subscription plans, including information about a hefty Early Termination Fee that customers may be charged when they cancel their subscriptions. The government also alleged that Adobe thwarted subscribers’ attempts to cancel, subjecting them to convoluted and inefficient cancellation processes filled with unnecessary steps, delays, unsolicited offers, and warnings.
“American consumers deserve the right to make informed choices when deciding where to spend their hard-earned money,” said Assistant Attorney General Brett A. Shumate, head of the Justice Department’s Civil Division. “The Justice Department will strongly oppose any attempt to harm Americans with deceptive and unfair business practices.”
“Consumers should not have to navigate a digital maze to cancel a subscription,” said U.S. Attorney Craig H. Missakian for the Northern District of California. “We will continue to hold responsible any company that uses deceptive business practices to harm the consumer.”
In addition to civil penalties and free services, the stipulated order provides strong protections for American consumers going forward. Adobe will be required to clearly disclose any Early Termination Fee and how the fee is calculated before enrolling customers in subscriptions. For any free trial lasting longer than seven days, Adobe must also remind customers before converting them into a paid subscription with an Early Termination Fee. Furthermore, Adobe will be required to provide its subscribers with easy ways to cancel their subscriptions.
The United States is represented in this action by Trial Attorneys Francisco L. Unger and Zachary L. Cowan and Assistant Director Zachary A. Dietert, from the Enforcement Section of the Civil Division’s Enforcement and Affirmative Litigation Branch, with assistance from Assistant U.S. Attorney Savith S. Iyengar for the Northern District of California, in coordination with staff at the FTC’s Bureau of Consumer Protection.
For more information about the Enforcement & Affirmative Litigation Branch and its enforcement efforts visit www.justice.gov/civil/enforcement-affirmative-litigation-branch.
Napa Man Indicted for Threatening Senior Government OfficialRead the Press Release
SAN FRANCISCO – A federal grand jury has indicted a Napa man for threatening violence against a senior government official. Haddow Mills, 64, made his initial appearance in federal court earlier today.
According to the indictment filed Jan. 28, 2026, and unsealed today, on Sept. 25, 2025, Mills sent an email threatening to murder a Senate-confirmed federal government official in Washington, D.C. (identified in the indictment as the “Victim”). The email stated, “I will hunt [the Victim] down and kill him.” In the months leading up to the threat, Mills allegedly sent the Victim’s ex-spouse dozens of harassing and threatening emails, including an email that stated, “I still am hunting down [Victim’s first name]. He is a dead man walking.” Mills allegedly sent many other emails that also contained threats against the Victim, the Victim’s ex-spouse, and their children.
United States Attorney Craig H. Missakian and Acting U.S. Marshal Peter Marketos for the Eastern District of Virginia made the announcement.
Mills was released on bond. He is next scheduled to appear in district court on May 21, 2026, for a status conference before U.S. District Judge Rita F. Lin.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Mills faces a maximum sentence of five years in prison and a $250,000 fine for transmitting an interstate communication with a threat to kidnap or injure in violation of 18 U.S.C. § 875(c). Any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Brandon Moore is prosecuting the case. The prosecution is the result of an investigation by the U.S. Marshals Service, with assistance from the Napa County Sheriff’s Office and Arlington County Police Department in Virginia.
Mills Indictment and Penalty
Five Former Employees of Alcohol Distribution Company and Salesman for Napa Winery Charged in Bribery and Obstruction SchemeRead the Press Release
OAKLAND – A federal grand jury has indicted five former employees of an alcohol distribution company with offices in Northern and Southern California for their roles in a scheme to bribe grocery store alcohol buyers and conceal bribes with false and forged financial documentation. A salesman for a Napa winery was also charged with bribery and making false statements.
According to the indictment filed yesterday, between at least 2016 and 2024, former employees of an alcohol distribution company identified as Distributor-1 – Stephen Magliocco, 47, of Trabuco Canyon, Calif., Michael Dehdashtian, 48, of Lake Forest, Calif., Adrian Ruiz, 54, of Corona, Calif., Ryan Dow, 40, of Upland, Calif., and Loratina Muscara, 64, of Livermore, Calif., and their co-conspirators – devised and participated in a scheme to provide bribes to employees of retail grocery chains to increase the purchases of certain alcohol brands and to obstruct any investigations into the bribes by creating and maintaining false financial documents.
The indictment explains that employees and suppliers of Distributor-1 knew that the distribution company and its partners were prohibited from paying bribes to alcohol retailers and wholesalers to purchase certain brands to the exclusion of others, and that the distribution company was subject to audit and inspection by the Alcohol and Tobacco Tax and Trade Bureau (TTB), which is one of the federal entities responsible for ensuring compliance with trade practice laws and regulations.
The five former employees of Distributor-1 allegedly took steps to conceal the bribes paid to employees of grocery store chains in California and the funding of those bribes, including using approved vendors of Distributor-1 and some of its alcohol suppliers to issue false invoices purporting to be for a legitimate business expense, but which in reality funded the purchase of prepaid gift cards valued at up to $1,000 each, luxury and designer items such as watches, purses, and golf and exercise equipment, among other things.
The indictment further alleges that Michael Sean Salene, 60, of Garden City, Idaho, an employee salesman for a Napa winery, bribed the head alcohol buyer for a large national grocery store chain that operates approximately 300 stores in California, lied to investigators when questioned about those bribes, and falsified invoices.
Magliocco, Dehdashtian, Ruiz, Dow, and Muscara are each charged with conspiracy to commit bribery and obstruct investigations. Magliocco, Ruiz, and Muscara are also charged with falsification of records to obstruct investigations. Salene is charged with Travel Act bribery and making false statements.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, defendants face a maximum sentence of five years in prison and a $250,000 fine for each count of conspiracy in violation of 18 U.S.C. § 371, interstate travel in aid of racketeering enterprise – bribery in violation of 18 U.S.C. §§ 1952(a)(3), and false statements in violation of 18 U.S.C. § 1001(a)(2); and 20 years in prison and a $250,000 fine for falsification of records to obstruct investigations in violation of 18 U.S.C. § 1519. Any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The defendants charged in today’s indictment are currently scheduled to make their appearances in federal court in Oakland on March 25, 2026.
United States Attorney Craig H. Missakian and Kareem Carter, Special Agent in Charge of the Internal Revenue Service - Criminal Investigation (IRS-CI), Washington, D.C. Field Office made the announcement.
This case is being prosecuted by the National Security & Special Prosecutions Section of the United States Attorney’s Office. The prosecution is the result of an investigation by IRS-CI and TTB.
* * *
Additional defendants have to date pleaded guilty or otherwise admitted their roles in this scheme and related violations:
Case NumberStatute(s)DefendantStatus25-cr-00051 YGR
18 U.S.C. § 371 (Conspiracy); and
27 U.S.C. § 205(c) (Commercial Bribery)
Matthew AdlerPleaded guilty April 3, 202525-cr-00052 YGR27 U.S.C. § 205(c) (Commercial Bribery)Bryan BarnesPleaded guilty April 23, 202525-cr-00302 YGR18 U.S.C. § 371 (Conspiracy);
27 U.S.C. § 205(c) and 18 U.S.C. § 2 (Commercial Bribery and Aiding and Abetting)
Patrick BrionesPleaded guilty Oct. 9, 202525-cr-00306 YGR18 U.S.C. § 371 (Conspiracy)John HerzogPleaded guilty Oct. 23, 202525-cr-00373 YGR18 U.S.C. § 371 (Conspiracy)Jessica GoebelDeferred Prosecution Agreement entered Dec. 3, 2025Magliocco, Dehdashtian, et al. Indictment
Extradited Honduran Man Sentenced to Five Years in Federal Prison for Fentanyl TraffickingRead the Press Release
OAKLAND – A Honduran national who was extradited to the United States to face fentanyl trafficking charges has been sentenced to 60 months in federal prison. U.S. District Judge Haywood S. Gilliam, Jr. handed down the sentence today.
Javier Marin-Gonzales, 26, was indicted by a federal grand jury on August 2, 2023, for distributing fentanyl on three separate occasions. The investigation also led to charges and convictions against two other East Bay-based defendants who traveled to San Francisco’s Tenderloin neighborhood to engage in fentanyl trafficking.
At the time of the indictment, the FBI learned that Marin-Gonzales had traveled back to Honduras. The Justice Department’s Office of International Affairs worked with Honduran authorities, the FBI, and the Drug Enforcement Administration (DEA) to secure the arrest and extradition of Marin-Gonzales.
Marin-Gonzales pleaded guilty on Dec. 17, 2025, to distributing 40 grams or more of fentanyl. In pleading guilty, Marin-Gonzales admitted that beginning as early as July 2022, he began selling fentanyl in the Bay Area as one of the ways he earned income. On three separate occasions in 2022, he sold a total of 690.4 grams of fentanyl to a buyer at various locations in Oakland.
United States Attorney Craig H. Missakian, FBI Special Agent in Charge Sanjay Virmani, and DEA Special Agent in Charge Bob P. Beris made the announcement.
In addition to the prison term, Judge Gilliam also sentenced the defendant to a four-year period of supervised release and ordered him to pay a $100 special assessment.
This prosecution is part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. HSTF San Francisco comprises agents and officers from FBI and IRS, with the prosecution being led by the United States Attorney’s Office for the Northern District of California.
Assistant U.S. Attorneys Charles Bisesto and Ben Wolinsky are prosecuting the case with the assistance of Sara Slattery and Andy Ding. The prosecution is the result of an investigation by the FBI SAFE Streets Task Force, DEA, and the Concord Police Department.
Honduran National Found with Fentanyl and Methamphetamine at Oakland Home Where Minors Lived Convicted of Drug Trafficking OffensesRead the Press Release
OAKLAND – A federal jury yesterday convicted Maxfer Palma, who was found with more than two kilograms of methamphetamine and fentanyl in an apartment where multiple children lived, with one count each of possession with intent to distribute methamphetamine, possession with intent to distribute fentanyl, possession with intent to distribute methamphetamine on premises where children were present or resided, and possession of a firearm in furtherance of a drug trafficking crime.
The jury’s verdict follows a five-day trial before U.S. District Judge Jon S. Tigar.
According to court documents and evidence presented at trial, Palma, 29, a Honduran national, possessed a black backpack in his apartment in East Oakland that contained more than 400 grams of methamphetamine, more than 200 grams of a mixture containing fentanyl, various other controlled substances, and digital scales. Oakland Police Department officers found the black backpack hidden in a laundry hamper in Palma’s bedroom closet. In addition to the drugs, Palma had a firearm and a magazine loaded with ammunition in the same black backpack.
The jury also found that Palma possessed a green backpack containing four bricks of methamphetamine weighing more than 1,700 grams, which law enforcement found hidden in a dog crate with a small dog in the living room of his apartment.
Multiple children, including two minors who appeared to be under the age of 10, were present in the apartment right before OPD officers searched it and found the drugs, firearm, and ammunition.
“We will continue to aggressively prosecute dealers who poison our communities with these dangerous substances. The defendant’s decisions to store deadly drugs and a firearm in a home where multiple children live showed a callous disregard for human life. We thank the jury for bringing him to account for his inexcusable actions,” said United States Attorney Craig H. Missakian.
“DEA is focused on breaking the command, control, and distribution networks responsible for the fentanyl crisis. Our top operational priority is to eliminate the cartels and foreign terrorist organizations responsible for flooding the United States with fentanyl. Illicit fentanyl is closer to a chemical weapon than a narcotic, just two milligrams – a few grains of salt – can be deadly,” said San Francisco Division DEA Special Agent in Charge Bob P. Beris.
The evidence presented at trial, including text messages from Palma’s phone, showed that Palma trafficked fentanyl, methamphetamine, and other narcotics in East Oakland and the Tenderloin neighborhood of San Francisco over the course of a seven-month period spanning 2022 and 2023.
The jury acquitted Palma of one count of possession with intent to distribute fentanyl and one count of possession with intent to distribute methamphetamine on April 22, 2023, in connection with an incident in the Tenderloin neighborhood.
Palma is currently in federal custody. His sentencing hearing is scheduled for July 17, 2026, before Judge Tigar.
Palma faces 10 years to life in prison and a $10 million fine for possession with intent to distribute methamphetamine in violation of 21 U.S.C. § 841(a)(1), (b)(1)(A)(viii); five to 40 years in prison and a $5 million fine for possession with intent to distribute fentanyl in violation of violation of 21 U.S.C. § 841(a)(1), (b)(1)(B)(vi); a mandatory consecutive sentence of five years in prison for possession of a firearm in furtherance of a drug trafficking crime in violation of 18 U.S.C. § 924(c); and a mandatory consecutive sentence of no more than 20 years for possession with intent to distribute methamphetamine on premises where children are present or reside in violation of 21 U.S.C. § 860a. Any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Jared Buszin and Emily Dahlke are prosecuting the case with the assistance of Kevin Costello. The prosecution is the result of an investigation by the DEA, the Oakland Police Department, and the San Francisco Police Department.
San Francisco Man Sentenced to 20 Years in Federal Prison for Production, Distribution, and Receipt of Child Sexual Abuse MaterialRead the Press Release
SAN FRANCISCO – Henry Muller, 33, of San Francisco, was sentenced last week to 240 months in federal prison for the production, distribution, and receipt of child sexual abuse material. Senior U.S. District Judge Edward M. Chen handed down the sentence on Feb. 12, 2026.
Muller was indicted by a federal grand jury in July 2023. On Jan. 9, 2025, he pleaded guilty to two counts of production of child pornography, one count of distribution of child pornography, and one count of receipt of child pornography. In pleading guilty, Muller admitted that on July 12, 2022, and July 13, 2022, he unlawfully persuaded a minor victim, Minor 1, to engage in sexually explicit conduct and produced video recordings of that conduct. On July 17, 2022, Muller knowingly distributed via the internet a video of a minor engaged in sexually explicit conduct. On October 17, 2022, Muller knowingly received via the internet a visual depiction of another minor victim, Minor 2, engaging in sexually explicit conduct.
U.S. Attorney Craig H. Missakian and FBI Special Agent in Charge Sanjay Virmani made the announcement.
Muller has been in custody since his arrest in 2023 and will begin serving his prison term immediately. In addition to the prison term, Judge Chen sentenced Muller to a 15-year period of supervised release, which will begin after his term of imprisonment.
Assistant U.S. Attorney Roland Chang prosecuted the case with the assistance of Christine Tian. The prosecution is the result of an investigation by the FBI and San Mateo County Sheriff’s Office.
Silicon Valley Engineers Charged with Stealing Trade Secrets from Leading Tech Companies and Transferring Confidential Data to Unauthorized Locations, Including IranRead the Press Release
SAN JOSE – A federal grand jury has indicted three Silicon Valley engineers on charges of conspiring to commit trade secret theft from Google and other leading technology companies, theft and attempted theft of trade secrets, and obstruction of justice. Samaneh Ghandali, 41, Mohammadjavad Khosravi aka Mohammad Khosravi, 40, and Soroor Ghandali, 32, all of San Jose, were arrested today and made their initial appearances in federal district court in San Jose this afternoon.
According to the indictment filed yesterday and unsealed today, the defendants gained employment at leading technology companies in the area of mobile computer processors. Samaneh Ghandali and Soroor Ghandali, who are sisters, worked at Google before going on to work for another technology company identified as Company 3, and Khosravi, who is married to Samaneh Ghandali, worked at a technology company identified as Company 2.
As part of the alleged scheme to commit trade secret theft, the defendants used their employment to obtain access to confidential and sensitive information. The defendants then exfiltrated confidential and sensitive documents, including trade secrets related to processor security and cryptography and other technologies, from Google and other technology companies to unauthorized third-party and personal locations, including to work devices associated with each other’s employers, and to Iran.
“As alleged, the defendants exploited their positions to steal confidential trade secrets from their employers. Our office will continue to lead the way in protecting American innovation and we will vigorously prosecute individuals who steal sensitive advanced technologies for improper gain or to benefit countries that wish us ill,” said United States Attorney Craig H. Missakian.
“The alleged actions outlined in this indictment reflect a calculated betrayal of trust by individuals accused of stealing trade secrets from the very tech companies that employed them. According to the allegations, the method in which confidential data was transferred by the defendants involved deliberate steps to evade detection and conceal their identities,” said FBI Special Agent in Charge Sanjay Virmani. “Protecting Silicon Valley innovation and defending the groundbreaking technologies that drive our economy and national security is a top priority for the FBI. We will continue to work with our private sector partners to hold accountable anyone who seeks to unlawfully exploit American ingenuity,” said FBI Special Agent in Charge Sanjay Virmani.
The indictment describes that while employed at Google, Samaneh Ghandali transferred hundreds of files, including Google trade secrets, to a third-party communications platform, specifically to channels bearing each of the defendants’ first names. Soroor Ghandali likewise is alleged to have transferred numerous Google files, including trade secrets, to these channels while employed by Google. These Google trade secrets were later copied to various personal devices and Khosravi’s Company 2 work device, as well as Soroor Ghandali’s Company 3 work device.
According to the indictment, the defendants hid their actions by submitting false, signed affidavits to victim technology companies about the conduct and the stolen trade secrets; destroying exfiltrated files and other records from electronic devices; and concealing the methods of exfiltration to avoid detection by the victim technology companies (for example, manually photographing screens containing the documents’ contents instead of exfiltrating complete documents using a third-party communications platform).
After Google’s internal security systems detected Samaneh Ghandali’s activity and Google revoked her access to company resources in August 2023, Samaneh Ghandali allegedly executed a signed affidavit claiming she had not shared Google’s confidential information with anyone outside the company. She and Khosravi then began conducting searches and visiting websites about deleting communications and other data, including how long a cell phone provider kept “messages to print out for court.” The couple continued accessing Google trade secrets that were stored on their personal devices and began manually photographing hundreds of computer screens of Google’s and Company 2’s confidential information over the course of months.
On the night before Samaneh Ghandali and Khosravi traveled to Iran in December 2023, Samaneh Ghandali allegedly manually captured with her mobile phone approximately 24 photographs of Khosravi’s work computer screen containing Company 2 trade secret information. While in Iran, a personal device associated with Samaneh Ghandali accessed these photographs, and Khosravi accessed other Company 2 trade secret information.
The defendants are next scheduled to appear in district court on Feb. 20, 2026, for identification of counsel before U.S. Magistrate Judge Susan van Keulen.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, each defendant faces a maximum sentence of 10 years in prison and a $250,000 fine for each count of conspiracy to commit trade secret theft in violation of 18 U.S.C. § 1832(a)(5) and theft and attempted theft of trade secrets in violation of 18 U.S.C. § 1832(a)(1), (2), (3), and (4), and a maximum sentence of 20 years in prison and a $250,000 fine for the count of obstruction of official proceedings in violation of 18 U.S.C. § 1512(c)(1). Any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The National Security and Special Prosecutions Section of the U.S. Attorney’s Office for the Northern District of California is prosecuting the case. The prosecution is the result of an investigation by the FBI.
San Francisco Tow Company Operator Sentenced to Five Years for Arson Conspiracy and More Than Two Years for Mail and Wire Fraud ConspiracyRead the Press Release
SAN FRANCISCO – Jose Vicente Badillo, the owner and operator of two towing companies, was sentenced last week to 60 months in federal prison for his involvement in a scheme to burn tow trucks throughout the Bay Area in 2023. U.S. District Judge Rita F. Lin handed down the sentence on Feb. 12, 2026.
Badillo, 29, of San Francisco, was also sentenced on Feb. 13, 2026, in an unrelated case to 27 months in federal prison for his role in a conspiracy to submit fraudulent auto insurance claims from at least 2017 until at least 2021. U.S. District Judge Trina L. Thompson handed down the sentence, which will run concurrently with the 60-month sentence imposed by Judge Lin.
Badillo was indicted by a federal grand jury in March 2025 for his involvement in the arson conspiracy. In October 2025, he pleaded guilty to one count of conspiracy to commit arson. According to the plea agreement, Badillo admitted to devising, orchestrating, and overseeing a scheme to set fire to tow trucks in the San Francisco Bay Area. The principal goals of Badillo’s scheme were to drive more business to his own towing companies, Auto Towing and Specialty Towing, by impeding competitor towing companies’ business prospects and to exact revenge against competitor towing companies and their owners for perceived wrongs. To accomplish those goals, Badillo recruited, agreed with, and directed others to execute the scheme by torching six tow trucks belonging to four competitor companies in April, July, and October of 2023.
Separately, Badillo was twice indicted by a federal grand jury in 2024 for his involvement in the automobile insurance fraud schemes. In October 2025, Badillo pleaded guilty to conspiracy to commit mail fraud and wire fraud in the second-charged insurance fraud case. According to the plea agreement, Badillo conspired with others to defraud automobile insurance companies by submitting fraudulent insurance claims. In furtherance of the scheme to defraud, Badillo staged an accident on Guadalupe Canyon Parkway in San Mateo County involving a Sterling tow truck and a vehicle carrier carrying four vehicles. Badillo also generated fake tow records concerning at least 18 vehicles involved in iterations of the scheme to defraud and orchestrated at least another nine iterations of the scheme to defraud, causing victim insurance companies hundreds of thousands of dollars in losses.
United States Attorney Craig H. Missakian, FBI Special Agent in Charge Sanjay Virmani, and IRS Criminal Investigation (IRS-CI) Special Agent in Charge Linda Nguyen made the announcement.
In addition to the custodial sentence, Judge Lin and Judge Thompson each imposed a three-year term of supervised release, to run concurrently, and ordered Badillo to pay restitution in an amount to be determined at a later proceeding. The defendant will begin serving the custodial sentence on May 21, 2026.
This prosecution is part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. HSTF San Francisco comprises agents and officers from FBI and IRS, with the prosecution being led by the United States Attorney’s Office for the Northern District of California.
Assistant U.S. Attorneys Nicholas M. Parker and Galen A. Phillips are prosecuting the cases with the assistance of Andy Ding, Laurie Worthen, and Tina Rosenbaum. The prosecutions are the result of an investigation by the FBI and IRS-CI. The U.S. Attorney’s Office and the FBI thank the San Francisco Police Department for its assistance with the investigation.
Former San Leandro City Council Member Pleads Guilty to Accepting Bribes in Exchange for Actions to Benefit Housing CompanyRead the Press Release
OAKLAND – Former San Leandro City Council Member Bryan Azevedo pleaded guilty in federal court today to engaging in a conspiracy to accept bribes in exchange for using his official position to obtain favorable treatment and city contracts for a housing company, and to lying to federal investigators.
Azevedo, 49, of San Leandro, Calif., was charged by information on Oct. 20, 2025, with one count of conspiracy to commit honest services fraud and one count of making a false statement to federal investigators. He pleaded guilty to both counts.
In connection with his plea, Azevedo admitted that in the summer of 2023, he attended a delegation trip to Vietnam sponsored by a business association controlled by the family of an individual identified in the information as Co-Conspirator 1. The business association paid all of Azevedo’s expenses for that trip, including business class airfare, hotel, and meals for approximately 10 days.
After the Vietnam trip, Azevedo agreed with Co-Conspirator 1 and an individual identified as Co-Conspirator 2 that Azevedo would use his official position to advocate on behalf of their modular housing company with other members of San Leandro City government, to take city council votes that would benefit their modular housing company, and to ensure that the City of San Leandro purchased housing units from the modular housing company. In exchange, Co-Conspirator 1 and Co-Conspirator 2 agreed that Azevedo would receive a percentage of the sales price from all modular housing company units the City of San Leandro ultimately purchased.
To help conceal the expected future payments, Co-Conspirator 1 and Co-Conspirator 2 instructed Azevedo to open an LLC and bank account in his wife’s name for the purpose of receiving the kickback payments and avoiding detection. Co-Conspirator 1 indicated that he had concealed payments in this way with other politicians. While San Leandro never purchased housing units from the modular housing company, Co-Conspirator 1 paid Azevedo $2,000 in cash to fund the bank account set up in Azevedo’s wife’s name.
Azevedo admitted that he took several steps in his official capacity to benefit the modular housing company between August 2023 and June 2024 in exchange for the payment received and the promise of future payments. Specifically, during a city council meeting on June 17, 2024, Azevedo voted in favor of an emergency shelter ordinance, as instructed by Co-Conspirator 1. In addition, Azevedo advocated for the emergency shelter ordinance with members of San Leandro City government, took members of San Leandro City government to tour model units, and advocated for the purchase of the modular housing company’s units by the City of San Leandro.
In January 2025, federal agents executed a search warrant at Azevedo’s residence in San Leandro, during which Azevedo sat for a voluntary interview. During that interview, Azevedo falsely told agents that Co-Conspirator 1 never provided him with cash and said that Co-Conspirator 1’s family did not have any business interests before the City of San Leandro.
United States Attorney Craig H. Missakian, FBI Special Agent in Charge Sanjay Virmani, IRS Criminal Investigation (IRS-CI) Oakland Field Office Special Agent in Charge Linda Nguyen, and U.S. Postal Inspection Service (USPIS) San Francisco Division Inspector in Charge Stephen M. Sherwood made the announcement.
Azevedo is next scheduled to appear in district court on December 3, 2026, for a status hearing before District Judge Yvonne Gonzalez Rogers.
Azevedo faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for the honest services fraud count and a maximum statutory penalty of five years in prison and a $250,000 fine for the false statement count. Any sentence will be imposed by the court after consideration of the United States Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant United States Attorneys Abraham Fine, Molly Priedeman, and Lloyd Farnham are prosecuting the case with the assistance of Kevin Costello and Amala James. The prosecution is the result of an investigation by the FBI, IRS-CI, and USPIS.
Members of Conspiracy to Steal More Than $2.5 Million from DoorDash Sentenced to A Combined Total of over Six Years in PrisonRead the Press Release
SAN JOSE – All five members of a conspiracy to steal more than $2,500,000 from DoorDash, Inc., by placing phantom delivery orders have been sentenced in federal court for their roles in the fraud scheme, with the final defendant sentenced today. U.S. District Judge Beth Labson Freeman handed down all five sentences.
According to court documents, from November 2020 to February 2021, Matheus Duarte, 30, a Brazilian national residing in Hayward, Calif.; Hari Vamsi Anne, 31, of Cypress, Texas; Sayee Chaitanya Reddy Devagiri, 31, of Newport Beach, Calif.; Manaswi Mandadapu, 31, of Irvine, Calif.; and Tyler Thomas Bottenhorn, 30, of Dixon, Calif., worked together to cause DoorDash to pay for deliveries that never occurred.
DoorDash’s business includes providing delivery services to customers in response to orders placed using the entity’s platform, which would then be fulfilled by drivers. In furtherance of the scheme, defendants created fraudulent customer accounts and driver accounts on DoorDash’s platform and used the fictitious customer accounts to place orders for delivery. Using insider access to DoorDash’s computer systems, defendants assigned those orders to fraudulent driver accounts, then manipulated DoorDash’s computer systems to cause DoorDash to pay the fraudulent driver accounts as if individual orders had been delivered hundreds of times.
The scheme resulted in fraudulent payments exceeding $2,500,000.
All five defendants pleaded guilty and admitted to their involvement in the scheme to defraud, and have been sentenced as follows:
- Duarte was sentenced to 25 months in prison and a three-year period of supervised release, and ordered to pay $2,590,195 in restitution, and to forfeit $336,712. Duarte will begin serving the sentence on March 4, 2026;
- Anne was sentenced to 22 months in prison and a three-year period of supervised release, and ordered to pay $2,590,195 in restitution. Anne will begin serving the sentence on March 4, 2026;
- Devagiri was sentenced to 21 months in prison and a three-year period of supervised release, and ordered to pay $2,590,195 in restitution, and to forfeit $356,732. Devagiri will begin serving the sentence on March 17, 2026;
- Mandadapu was sentenced to 12 months in prison and a three-year period of supervised release, and ordered to pay $2,590,195 in restitution. Mandadapu will begin serving the sentence on March 26, 2026; and
- Bottenhorn received a time-served sentence with a three-year period of supervised release, and was ordered to pay $2,127,216 in restitution, and to forfeit $244,247.
United States Attorney Craig H. Missakian and FBI Special Agent in Charge Sanjay Virmani made the announcement.
Assistant U.S. Attorney Michael G. Pitman prosecuted this case with assistance from Sahib Kaur. The prosecution is the result of an investigation by the FBI.
Oakland Man Sentenced to Five Years in Federal Prison for Robbing U.S. Mail CarrierRead the Press Release
OAKLAND — An Oakland man was sentenced today to five years in federal prison for robbing a postal carrier. U.S. District Judge Araceli Martínez-Olguín handed down the sentence.
Joseph Michael McBee, 30, was charged by criminal complaint on Oct. 28, 2024, and by information on July 1, 2025, with one count of robbery of a U.S. mail carrier. He pleaded guilty on Oct. 20, 2025.
According to the plea agreement, early on the morning of Oct. 10, 2023, McBee stole a 2015 Kia Soul parked on a residential street in Oakland. Later that morning, he arrived in the stolen Kia at a Toyota dealership in Daly City and assisted two others, Ebony Reeves and Felix Wilson, as they stole a 2023 Toyota Camry. Reeves was separately charged with receipt of stolen mail and Wilson was charged with aiding and abetting mail robbery; both have pleaded guilty.
All three then drove around San Francisco looking for a mail carrier to rob. At about 10:25 a.m., they spotted a U.S. mail truck and mail carrier. McBee exited the stolen Toyota and approached the victim mail carrier, demanding that the victim hand over his postal keys. When the victim refused, McBee pushed him to the ground and stole his wallet. The victim sustained bruising to both arms as a result of McBee’s assault. During the assault, mail trays containing over 500 pieces of mail were stolen. Afterwards, the three defendants drove to a gas station store in Oakland where McBee used the victim mail carrier’s credit card.
McBee was not arrested until Oct. 31, 2023, after he took law enforcement on an extensive and dangerous car chase and subsequent foot chase. When McBee was finally apprehended, he had a firearm and ammunition in his possession.
United States Attorney Craig H. Missakian and U.S. Postal Inspection Service (USPIS), San Francisco Division Inspector in Charge Stephen M. Sherwood made the announcement.
In addition to the prison term, Judge Martínez-Olguín also sentenced McBee to a three-year period of supervised release.
Assistant U.S. Attorney Ivana Djak is prosecuting the case with the assistance of Jessie Chelsea and Amala James. The prosecution is the result of an investigation by USPIS.
Nine Members of Oakland-Based “Ghost Town” Gang Sentenced to A Combined Total of Nearly 60 Years for Armed Robberies in 2022Read the Press Release
OAKLAND – Nine associates of the Oakland-based “Ghost Town” gang have been sentenced to a combined total of nearly 60 years in prison for a series of armed robberies targeting small Bay Area businesses. The sentences were handed down by U.S. District Judge Araceli Martínez-Olguín, with the final defendant sentenced today.
The nine defendants, Demarco Barnett, 36; Jakari Jenkins, 34; Danny Garcia, 41; Garland Rabon, 30; Aramiya Burrell, 35; Lester Garnett, 34; Darrin Hutchinson, 39; Ricky Joseph, 37; and Keanna Smith-Stewart, 33, each pleaded guilty to one count of conspiracy to commit robbery affecting interstate commerce. Based on their involvement, eight of the defendants also pleaded guilty to a varying number of substantive counts of robbery affecting interstate commerce.
The robberies took place in 2022. On March 18, 2022, the co-conspirators engaged in the armed robbery of a coin and stamp store located on the tenth floor of a building in the South of Market neighborhood of San Francisco. The co-conspirators entered the store, brandished firearms, and demanded money from the business and the two individuals who happened to be present at the time – the owner and his son. The robbers struck the head and zip-tied the hands of the owner’s son, and absconded with cash, jewelry, and coins. Defendants Jenkins, Barnett, and Joseph were charged with and pleaded guilty to this robbery count.
The co-conspirators then struck a San Pablo jewelry store on Nov. 12, 2022. Five co-conspirators, at least three of whom were brandishing firearms, entered the store, while two others waited outside in the getaway cars. The co-conspirators stole bags of jewelry. Defendants Jenkins, Barnett, Rabon, Garcia, and Hutchinson were charged with and pleaded guilty to this robbery count.
A third robbery occurred on Dec. 24, 2022, of a marijuana business in Oakland. The co-conspirators arrived at the business as an employee was leaving it. The robbers brandished weapons, directed the employee back into the building at gunpoint, demanding “budded weed” and “money.” One of the robbers struck the employee in the head with a firearm. The robbers searched through the employee’s pockets and stole his bank debit card. The robbers absconded with the victim’s debit card and a bag of marijuana plant trimmings. Defendants Jenkins, Barnett, Rabon, Burrell, Garnett, and Garcia were charged with and pleaded guilty to this robbery count.
United States Attorney Craig H. Missakian and FBI Special Agent in Charge Sanjay Virmani made the announcement.
The following chart summarizes the number of counts each defendant pleaded guilty to and the sentence each defendant received:
DefendantNumber of Counts in Guilty PleaSentence (months)Demarco BarnettConspiracy + 3 substantive robberies114Jakari JenkinsConspiracy + 3 substantive robberies96Danny GarciaConspiracy + 2 substantive robberies84Garland RabonConspiracy + 2 substantive robberies75Aramiya BurrellConspiracy + 1 substantive robbery82Lester GarnettConspiracy + 1 substantive robbery70Darrin HutchinsonConspiracy + 1 substantive robbery70Ricky JosephConspiracy + 1 substantive robbery68Keanna Smith-StewartConspiracy50Total709In addition to the custodial time, the Court also ordered restitution in the amount of $150,338.00.
The Violent Crime Strike Force is prosecuting the case with the assistance of Yenni Weinberg. The prosecution is the result of an investigation by the FBI and the Oakland Police Department.
Man Who Intentionally Set Fire to San Jose Post Office Pleads Guilty to ArsonRead the Press Release
SAN JOSE – Richard Tillman, 44, pleaded guilty in federal court today to setting fire to the Almaden Valley U.S. Post Office located on Crown Boulevard in San Jose in the early hours of July 20, 2025.
Tillman, who is originally from San Jose, was initially charged by a criminal complaint in July 2025, and indicted by a federal grand jury on Aug. 7, 2025, on one count of malicious destruction of government property.
In pleading guilty, Tillman admitted that he intentionally set the fire in order to “make a point to the United States government.” In preparation for the fire, Tillman purchased firelogs and lighter fluid. He then drove to the Post Office with firelogs in the vehicle, backed the vehicle through the building’s front door, exited the vehicle, spread lighter fluid throughout the vehicle, threw a lit match into the vehicle, and exited the Post Office. The fire quickly spread from the vehicle to the Post Office, completely destroying its lobby, as depicted below. Prior to July 20, 2025, the lobby of the Post Office was open to the public during business hours for retail transactions and access to post office boxes. The fire rendered the lobby unusable, and it has not been available to the public since then.
United States Attorney Craig H. Missakian, U.S. Postal Inspection Service (USPIS), San Francisco Division Inspector in Charge Stephen M. Sherwood, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge John Wester, and FBI Special Agent in Charge Sanjay Virmani made the announcement.
Tillman is currently in federal custody. His sentencing hearing is scheduled for April 27, 2026, before U.S. District Judge Edward J. Davila. Tillman faces a maximum sentence of 20 years in prison, a minimum sentence of five years in prison, and a fine of $250,000 for the charge of malicious destruction of government property by fire in violation of 18 U.S.C. § 844(f)(1). Any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Michael G. Pitman is prosecuting the case with the assistance of Sahib Kaur. The prosecution is the result of an investigation by the USPIS, ATF, FBI, and the San Jose Police Department. The U.S. Attorney’s Office appreciates the assistance of the Santa Clara County District Attorney’s Office.
Former California State Correctional Lieutenant Arrested on Charges of Smuggling Contraband into PrisonRead the Press Release
SAN JOSE – A former California state correctional lieutenant was arrested today on charges of conspiring to smuggle contraband into state prison in exchange for approximately $100,000 in payments from an inmate.
Matthew L. Madsen, 39, of Greenfield, Calif., made his initial appearance in federal district court in San Jose this afternoon.
According to the criminal complaint filed Feb. 4, 2026, and unsealed today, Madsen was employed by the California Department of Corrections and Rehabilitation from 2017 to 2025, during which time he primarily worked at Salinas Valley State Prison in Soledad, Calif. Cellular devices are not permitted in California state prisons because they can be used to circumvent the mandatory screening of communications into and out of institutions, and have been used by inmates to plan violent attacks and the smuggling and trafficking of contraband, including narcotics. Accordingly, like all state correctional employees, Madsen was obligated to prevent the introduction of contraband into the prison, confiscate any contraband located in the prison, and report its presence. The complaint alleges that Madsen violated these obligations and smuggled items, including cellular devices and tobacco, into Salinas Valley State Prison at the request of an inmate and in exchange for payments totaling approximately $100,000.
United States Attorney Craig H. Missakian and FBI Special Agent in Charge Sanjay Virmani made the announcement.
Madsen was released on bond. He is next scheduled to appear in district court on Feb. 17, 2026, for a status hearing.
A complaint merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of 20 years in prison and a fine of $250,000 for the count of honest services fraud in violation of 18 U.S.C. §§ 1343, 1346, and 1349. Any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Michael G. Pitman is prosecuting the case with the assistance of Sahib Kaur. The prosecution is the result of an investigation by the FBI and the California Department of Corrections and Rehabilitation.
Humboldt County Man Sentenced to 10 Years in Prison for Attempted Enticement of A MinorRead the Press Release
SAN FRANCISCO – A Humboldt County resident was sentenced today to 120 months in federal prison for attempting to coerce and entice a minor to engage in sexual activity. U.S. District Judge Jacqueline Scott Corley handed down the sentence.
Joseph Raymond Shinn, 47, of Ferndale, Calif., was indicted by a federal grand jury on Feb. 19, 2025, and pleaded guilty on Nov. 5, 2025, to one count of attempted coercion and enticement of a minor. According to the plea agreement, between Sept. 30, 2024, through Oct. 6, 2024, Shinn messaged an individual whom he believed to be a 13-year-old minor, sending sexually explicit messages and images via a messaging application. He eventually arranged a meeting with the minor to engage in sexual acts. On his way to the minor’s home, Shinn purchased sex paraphernalia that he intended to use. Shinn was arrested by law enforcement upon his arrival at the home.
United States Attorney Craig H. Missakian and FBI Special Agent in Charge Sanjay Virmani made the announcement.
Shinn has been in custody since November 2024. He will begin serving his prison term immediately. In addition to the prison term, Judge Corley also ordered Shinn to serve eight years of supervised release which will begin after his term of imprisonment.
Assistant U.S. Attorney Sara E. Henderson is prosecuting the case with the assistance of Soana Katoa. The prosecution is the result of an investigation by the Humboldt County District Attorney’s Office and the FBI, with assistance from the Eureka Police Department and Humboldt County Sheriff’s Office.
Drone Operator Charged with Violating Temporary Flight Restrictions in Area Surrounding Levi’s Stadium During NFL GameRead the Press Release
SAN JOSE – A San Francisco man was charged in a federal criminal complaint for flying a drone within restricted airspace surrounding Levi’s Stadium during a National Football League (NFL) game in violation of a temporary flight restriction (TFR) imposed by the Federal Aviation Administration (FAA).
According to the criminal complaint and court documents filed today, Junwei Guo, 27, operated a drone within the airspace surrounding Levi’s Stadium on Nov. 9, 2025, during a game between the San Francisco 49ers and the Los Angeles Rams. As court documents describe, the FAA has issued a TFR that prohibits all aircraft, including drones, from operating within a three nautical mile radius of any stadium with a seating capacity of 30,000 or more people during, among other events, regular or post-season NFL games. The “stadium TFR” classifies the airspace defined in the restriction as “National Defense Airspace” and remains in effect for a specified time period before, during, and after the qualifying event.
The complaint alleges that Guo flew the drone as high as approximately 2,300 feet above ground level, an altitude that raises significant concerns for public safety and the potential disruption air traffic control in the area. Guo allegedly did not register the drone with the FAA, obtain a remote pilot’s certificate with the FAA, obtain FAA authorization to fly the drone in national defense airspace, or comply with the requirements of the FAA’s recreational use exception.
United States Attorney Craig H. Missakian and FBI Special Agent in Charge Sanjay Virmani made the announcement.
Defendant is scheduled to appear in federal court in San Jose on Feb. 27, 2026, for an initial appearance.
A complaint merely alleges that a crime has been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of one year in prison and a $100,000 fine for the charged violation of national defense airspace under 49 U.S.C. § 46307. Any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Christina Liu is prosecuting the case with the assistance of Natachiana Burney. The prosecution is the result of an investigation by the FBI, the Federal Air Marshal Service, and the Santa Clara Police Department.
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The FAA, in coordination with the FBI, has established a “No Drone Zone” for Super Bowl LX at Levi’s Stadium in Santa Clara on Feb. 8, 2026, with additional drone restrictions surrounding Levi’s Stadium and in downtown San Francisco during the days leading up to the event. For more information, please visit: https://www.faa.gov/newsroom/faa-and-fbi-announce-strict-no-drone-zones-super-bowl-lx.
Former Google Engineer Found Guilty of Economic Espionage and Theft of Confidential AI TechnologyRead the Press Release
Yesterday, a federal jury in San Francisco convicted former Google software engineer Linwei Ding, also known as Leon Ding, 38, on seven counts of economic espionage and seven counts of theft of trade secrets for stealing thousands of pages of confidential information containing Google’s trade secrets related to artificial intelligence technology for the benefit of the People’s Republic of China (PRC). The jury’s verdict follows an 11-day trial before U.S. District Judge Vince Chhabria for the Northern District of California.
“This conviction exposes a calculated breach of trust involving some of the most advanced AI technology in the world at a critical moment in AI development,” said Assistant Attorney General for National Security John A. Eisenberg. “Ding abused his privileged access to steal AI trade secrets while pursuing PRC government-aligned ventures. His duplicity put U.S. technological leadership and competitiveness at risk. I commend the trial team and investigators whose exceptional work resulted in this conviction.”
“In today’s high-stakes race to dominate the field of artificial intelligence, Linwei Ding betrayed both the U.S. and his employer by stealing trade secrets about Google’s AI technology on behalf of China’s government,” said Assistant Director Roman Rozhavsky of the FBI's Counterintelligence and Espionage Division. “Not only does this case mark the first-ever conviction on AI-related economic espionage charges, but it also demonstrates the FBI’s unwavering dedication to protecting American businesses from the increasingly severe threat China poses to our economic and national security. We remain committed to working closely with our partners across the private sector to protect our nation’s innovation, safeguard our trade secrets, and hold our foreign adversaries accountable.”
“Silicon Valley is at the forefront of artificial intelligence innovation, pioneering transformative work that drives economic growth and strengthens our national security. The jury delivered a clear message today that the theft of this valuable technology will not go unpunished. We will vigorously protect American intellectual capital from foreign interests that seek to gain an unfair competitive advantage while putting our national security at risk,” said U.S. Attorney Craig H. Missakian for the Northern District of California.
“This conviction reinforces the FBI’s steadfast commitment to protecting American innovation and national security. The theft and misuse of advanced artificial intelligence technology for the benefit of the People’s Republic of China threatens our technological edge and economic competitiveness,” said FBI Special Agent in Charge Sanjay Virmani for the San Francisco Field Office. “The FBI San Francisco division serves Silicon Valley and the companies who lead the world in innovation, and we are committed to safeguarding their work. This case demonstrates the strength of collaboration between the FBI and the private sector, including leading companies like Google, whose partnership is critical to protecting sensitive U.S. technology. Today’s verdict affirms that federal law will be enforced to protect our nation’s most valuable technologies and hold those who steal them accountable.”
Ding was originally indicted in March 2024. A superseding indictment returned in February 2025 described seven categories of trade secrets stolen by Ding and charged Ding with seven counts of economic espionage and seven counts of theft of trade secrets.
According to the evidence presented at trial, between approximately May 2022 and April 2023, while a Google employee, Ding stole more than two thousand pages of confidential information containing Google’s AI trade secrets from Google’s network and uploaded them to his personal Google Cloud account. Ding also secretly affiliated himself with two PRC-based technology companies while he was employed by Google: around June 2022, Ding was in discussions to be the Chief Technology Officer for an early-stage technology company based in the PRC; by early 2023, Ding was in the process of founding his own technology company in the PRC focused on AI and machine learning and was acting as the company’s CEO. In multiple statements to potential investors, Ding claimed that he could build an AI supercomputer by copying and modifying Google’s technology. In December 2023, less than two weeks before he resigned from Google, Ding downloaded the stolen Google trade secrets to his own personal computer.
The jury found that Ding stole trade secrets relating to the hardware infrastructure and software platforms that allow Google’s supercomputing data center to train and serve large AI models. The trade secrets contained detailed information about the architecture and functionality of Google’s custom Tensor Processing Unit chips and systems and Google’s Graphics Processing Unit systems, the software that allows the chips to communicate and execute tasks, and the software that orchestrates thousands of chips into a supercomputer capable of training and executing cutting-edge AI workloads. The trade secrets also pertained to Google’s custom-designed SmartNIC, a type of network interface card used to facilitate high speed communication within Google’s AI supercomputers and cloud networking products.
In presentations to investors, Ding called out the PRC’s national policies prioritizing AI development and innovation in the PRC, and in late 2023 Ding applied for a government sponsored “talent plan” in Shanghai, PRC. The jury heard evidence pertaining to the PRC government’s establishment of talent plans to encourage individuals to come to China to contribute to the PRC’s economic and technological growth. Ding’s application for this talent plan stated that he planned to “help China to have computing power infrastructure capabilities that are on par with the international level.” The evidence at trial also showed that Ding intended to benefit two entities controlled by the government of China by assisting with the development of an AI supercomputer and collaborating on the research and development of custom machine learning chips.
Ding is next scheduled to appear at a status conference on Feb. 3, 2026. Ding faces a maximum sentence of 10 years in prison for each count of theft of trade secrets in violation of 18 U.S.C. § 1832 and 15 years in prison for each count of economic espionage in violation of 18 U.S.C § 1831. Any sentence following conviction would be imposed by the Court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys for the Northern District of California Casey Boome, Molly K. Priedeman, and Roland Chang are prosecuting this case, with assistance from Veronica Hernandez and Trial Attorney Yifei Zheng from the Counterintelligence and Export Control Section, National Security Division. The prosecution is the result of an investigation by the FBI.
Former Google Engineer Found Guilty of Economic Espionage and Theft of Confidential AI TechnologyRead the Press Release
SAN FRANCISCO – A federal jury today convicted former Google software engineer Linwei Ding, also known as Leon Ding, 38, on seven counts of economic espionage and seven counts of theft of trade secrets for stealing thousands of pages of confidential information containing Google’s trade secrets related to artificial intelligence technology for the benefit of the People’s Republic of China (PRC). The jury’s verdict follows an 11-day trial before U.S. District Judge Vince Chhabria.
“Silicon Valley is at the forefront of artificial intelligence innovation, pioneering transformative work that drives economic growth and strengthens our national security. The jury delivered a clear message today that the theft of this valuable technology will not go unpunished. We will vigorously protect American intellectual capital from foreign interests that seek to gain an unfair competitive advantage while putting our national security at risk,” said United States Attorney Craig H. Missakian.
“This conviction reinforces the FBI’s steadfast commitment to protecting American innovation and national security. The theft and misuse of advanced artificial intelligence technology for the benefit of the People’s Republic of China threatens our technological edge and economic competitiveness,” said FBI Special Agent in Charge Sanjay Virmani. “The FBI San Francisco division serves Silicon Valley and the companies who lead the world in innovation, and we are committed to safeguarding their work. This case demonstrates the strength of collaboration between the FBI and the private sector, including leading companies like Google, whose partnership is critical to protecting sensitive U.S. technology. Today’s verdict affirms that federal law will be enforced to protect our nation’s most valuable technologies and hold those who steal them accountable.”
Ding was originally indicted in March 2024. A superseding indictment returned in February 2025 described seven categories of trade secrets stolen by Ding and charged Ding with seven counts of economic espionage and seven counts of theft of trade secrets.
According to the evidence presented at trial, between approximately May 2022 and April 2023, while a Google employee, Ding stole more than two thousand pages of confidential information containing Google’s AI trade secrets from Google’s network and uploaded them to his personal Google Cloud account. Ding also secretly affiliated himself with two PRC-based technology companies while he was employed by Google: around June 2022, Ding was in discussions to be the Chief Technology Officer for an early-stage technology company based in the PRC; by early 2023, Ding was in the process of founding his own technology company in the PRC focused on AI and machine learning and was acting as the company’s CEO. In multiple statements to potential investors, Ding claimed that he could build an AI supercomputer by copying and modifying Google’s technology. In December 2023, less than two weeks before he resigned from Google, Ding downloaded the stolen Google trade secrets to his own personal computer.
The jury found that Ding stole trade secrets relating to the hardware infrastructure and software platforms that allow Google’s supercomputing data center to train and serve large AI models. The trade secrets contained detailed information about the architecture and functionality of Google’s custom Tensor Processing Unit chips and systems and Google’s Graphics Processing Unit systems, the software that allows the chips to communicate and execute tasks, and the software that orchestrates thousands of chips into a supercomputer capable of training and executing cutting-edge AI workloads. The trade secrets also pertained to Google’s custom-designed SmartNIC, a type of network interface card used to facilitate high speed communication within Google’s AI supercomputers and cloud networking products.
In presentations to investors, Ding called out the PRC’s national policies prioritizing AI development and innovation in the PRC, and in late 2023 Ding applied for a government sponsored “talent plan” in Shanghai, PRC. The jury heard evidence pertaining to the PRC government’s establishment of talent plans to encourage individuals to come to China to contribute to the PRC’s economic and technological growth. Ding’s application for this talent plan stated that he planned to “help China to have computing power infrastructure capabilities that are on par with the international level.” The evidence at trial also showed that Ding intended to benefit two entities controlled by the government of China by assisting with the development of an AI supercomputer and collaborating on the research and development of custom machine learning chips.
Ding is next scheduled to appear at a status conference on Feb. 3, 2026. Ding faces a maximum sentence of 10 years in prison for each count of theft of trade secrets in violation of 18 U.S.C. § 1832 and 15 years in prison for each count of economic espionage in violation of 18 U.S.C § 1831. Any sentence following conviction would be imposed by the Court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Casey Boome, Molly K. Priedeman, and Roland Chang are prosecuting this case, with assistance from Veronica Hernandez and the National Security Division. The prosecution is the result of an investigation by the FBI.
Oakland Man Sentenced to Five Years in Federal Prison for Robbing Two East Bay BanksRead the Press Release
OAKLAND – An Oakland man was sentenced today to 60 months in federal prison for bank robbery. U.S. District Judge Jon S. Tigar handed down the sentence.
Naikano Tuipulotu, 32, was charged by complaint on Feb. 7, 2024, and pleaded guilty on Feb. 28, 2025, to two counts of bank robbery. According to the plea agreement, Tuipulotu admitted that, on Oct. 23, 2023, he robbed a bank in San Leandro by passing a note to a teller that read, “I have a gun give me the money.” After the bank teller handed him $210 in cash, Tuipulotu demanded all the money in the bank’s vault, but departed after the teller informed him that she did not have access to the vault.
On Jan. 6, 2024, Tuipulotu robbed a bank in Fremont of approximately $1,370 by passing a note that read, “This is a robbery, I have a gun. Give me all the $$ money $$.”
United States Attorney Craig H. Missakian and FBI Special Agent in Charge Sanjay Virmani made the announcement.
In addition to the prison term, Judge Tigar also sentenced the defendant to a three-year period of supervised release and ordered that the defendant pay restitution. The defendant was immediately remanded into custody.
Assistant U.S. Attorney Jonah P. Ross is prosecuting the case. The prosecution is the result of an investigation by the FBI and the Fremont, San Leandro, Hayward Police Departments.
Kaiser Permanente Affiliates Pay $556m to Resolve False Claims Act AllegationsRead the Press Release
SAN FRANCISCO — Affiliates of Kaiser Permanente, an integrated healthcare consortium headquartered in Oakland, California, have agreed to pay $556 million to resolve allegations that they violated the False Claims Act by submitting invalid diagnosis codes for their Medicare Advantage Plan enrollees in order to receive higher payments from the government.
The settling Kaiser Permanente affiliates are Kaiser Foundation Health Plan Inc.; Kaiser Foundation Health Plan of Colorado; The Permanente Medical Group Inc.; Southern California Permanente Medical Group; and Colorado Permanente Medical Group P.C. (collectively Kaiser).
Under the Medicare Advantage (MA) Program, also known as Medicare Part C, Medicare beneficiaries may opt out of traditional Medicare and enroll in private health plans offered by insurance companies known as Medicare Advantage Organizations, or MAOs. The Centers for Medicare & Medicaid Services (CMS) pays the MAOs a fixed monthly amount for each Medicare beneficiary enrolled in their plans. CMS adjusts these monthly payments to account for various “risk” factors that affect expected health expenditures for the beneficiary. In general, CMS pays MAOs more for sicker beneficiaries expected to incur higher healthcare costs and less for healthier beneficiaries expected to incur lower costs. To make these “risk adjustments,” CMS collects medical diagnosis codes from the MAOs. The diagnoses must be supported by the medical record of a face-to-face visit between a patient and a provider, and for outpatient visits, must have required or affected patient care, treatment, or management at the visit.
Kaiser owns and operates MAOs that offer MA plans to beneficiaries across the country. In a complaint filed in the Northern District of California in October 2021, the United States alleged that Kaiser engaged in a scheme in California and Colorado to improperly increase its risk adjustment payments. Specifically, the United States alleged that Kaiser systematically pressured its physicians to alter medical records after patient visits to add diagnoses that the physicians had not considered or addressed at those visits, in violation of CMS rules.
“More than half of our nation’s Medicare beneficiaries are enrolled in Medicare Advantage plans, and the government expects those who participate in the program to provide truthful and accurate information,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “Today’s resolution sends the clear message that the United States holds healthcare providers and plans accountable when they knowingly submit or cause to be submitted false information to CMS to obtain inflated Medicare payments.”
“Medicare Advantage is a vital program that must serve patients’ needs, not corporate profits,” said U.S. Attorney Craig H. Missakian for the Northern District of California. “Fraud on Medicare costs the public billions annually, so when a health plan knowingly submits false information to obtain higher payments, everyone — from beneficiaries to taxpayers — loses. We have an obligation to protect the American taxpayer from waste, fraud, and abuse and we will relentlessly pursue individuals and organizations that compromise the integrity of the Medicare program.”
“The federal government supports the health care of millions of beneficiaries by paying hundreds of billions of dollars every year to Medicare Advantage Plans,” said U.S. Attorney Peter McNeilly for the District of Colorado. “Medicare relies on the accuracy of the information submitted by those plans. This resolution sends a clear message that we will hold health care plans accountable if they seek to game the system and pad their profits by submitting false information.”
“Deliberately inflating diagnosis codes to boost profits is a serious violation of public trust and undermines the integrity of the Medicare Advantage program,” said Acting Deputy Inspector General for Investigations Scott J. Lampert at the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “This outcome demonstrates HHS-OIG’s commitment to protecting Medicare through a unified approach — leveraging the expertise of our investigators, auditors, and counsel, alongside our law enforcement partners. We will continue to hold accountable any entity that seeks to compromise the integrity of the risk adjustment program.”
“Healthcare programs funded by the public are meant to support patients, not pad corporate bottom lines. False claims and the submission of fraudulent information weaken the Medicare system and place an unfair cost on American taxpayers who expect honesty and accountability,” said Special Agent in Charge Sanjay Virmani of the FBI San Francisco Field Office. “This settlement reflects the FBI's continued commitment to holding accountable those who put profits over patients and abuse federal healthcare programs.”
The settlement announced today resolves allegations that, from 2009 to 2018, Kaiser engaged in a scheme to increase its Medicare reimbursements by pressuring physicians to add diagnoses after patient visits through “addenda” to patients’ medical records. The United States alleged that Kaiser developed various mechanisms to mine a patient’s past medical history to identify potential diagnoses that had not been submitted to CMS for risk adjustment. Kaiser then sent “queries” to its providers urging them to add these diagnoses to medical records via addenda, often months and sometimes over a year after visits. In many instances, the United States alleged, the diagnoses added by the providers had nothing to do with the patient visit in question, in violation of CMS requirements.
The United States further alleged that Kaiser set aggressive physician- and facility-specific goals for adding risk adjustment diagnoses. It alleged that Kaiser singled out underperforming physicians and facilities and emphasized that the failure to add diagnoses cost money for Kaiser, the facilities, and the physicians themselves. It also alleged that Kaiser linked physician and facility financial bonuses and incentives to meeting risk adjustment diagnosis goals.
The United States alleged that Kaiser knew that its addenda practices were widespread and unlawful. Kaiser ignored numerous red flags and internal warnings that it was violating CMS rules, including concerns raised by its own physicians that these were false claims and audits by its own compliance office identifying the issue of inappropriate addenda.
The civil settlement includes the resolution of certain claims brought in lawsuits under the qui tam or whistleblower provisions of the False Claims Act by Ronda Osinek and James M. Taylor, M.D., former employees of Kaiser. Under those provisions, private parties are permitted to sue on behalf of the United States and receive a portion of any recovery. The qui tam cases are captioned United States ex rel. Osinek v. Kaiser Permanente, et al., No. 3:13-cv-03891 (N.D. Cal.) and United States ex rel. Taylor v. Kaiser Permanente, et al., No. 3:21-cv-03894 (N.D. Cal.). The relator share of the recovery will be $95 million.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Offices for the Northern District of California and the District of Colorado, with assistance from HHS-OIG, HHS-Office of Audit Services, and the FBI.
The investigation and resolution of this matter illustrate the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement, can be reported to the Department of Health and Human Services at www.oig.hhs.gov/fraud/report-fraud/ or 800-HHS-TIPS (800-447-8477).
The matter was handled by Fraud Section Attorneys Braden Civins, Edward Crooke, Gary Dyal, Michael R. Fishman, Martha Glover, Seth W. Greene, Rachel Karpoff, Laurie Oberembt, and Jonathan Thrope, Assistant U.S. Attorney Michelle Lo for the Northern District of California, with the assistance of Jonathan Birch and Alan Lopez, and Assistant U.S. Attorney Kevin Traskos for the District of Colorado.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Kaiser Permanente Affiliates Pay $556M to Resolve False Claims Act AllegationsRead the Press Release
Affiliates of Kaiser Permanente, an integrated healthcare consortium headquartered in Oakland, California, have agreed to pay $556 million to resolve allegations that they violated the False Claims Act by submitting invalid diagnosis codes for their Medicare Advantage Plan enrollees in order to receive higher payments from the government.
The settling Kaiser Permanente affiliates are Kaiser Foundation Health Plan Inc.; Kaiser Foundation Health Plan of Colorado; The Permanente Medical Group Inc.; Southern California Permanente Medical Group; and Colorado Permanente Medical Group P.C. (collectively Kaiser).
Under the Medicare Advantage (MA) Program, also known as Medicare Part C, Medicare beneficiaries may opt out of traditional Medicare and enroll in private health plans offered by insurance companies known as Medicare Advantage Organizations, or MAOs. The Centers for Medicare & Medicaid Services (CMS) pays the MAOs a fixed monthly amount for each Medicare beneficiary enrolled in their plans. CMS adjusts these monthly payments to account for various “risk” factors that affect expected health expenditures for the beneficiary. In general, CMS pays MAOs more for sicker beneficiaries expected to incur higher healthcare costs and less for healthier beneficiaries expected to incur lower costs. To make these “risk adjustments,” CMS collects medical diagnosis codes from the MAOs. The diagnoses must be supported by the medical record of a face-to-face visit between a patient and a provider, and for outpatient visits, must have required or affected patient care, treatment, or management at the visit.
Kaiser owns and operates MAOs that offer MA plans to beneficiaries across the country. In a complaint filed in the Northern District of California in October 2021, the United States alleged that Kaiser engaged in a scheme in California and Colorado to improperly increase its risk adjustment payments. Specifically, the United States alleged that Kaiser systematically pressured its physicians to alter medical records after patient visits to add diagnoses that the physicians had not considered or addressed at those visits, in violation of CMS rules.
“More than half of our nation’s Medicare beneficiaries are enrolled in Medicare Advantage plans, and the government expects those who participate in the program to provide truthful and accurate information,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “Today’s resolution sends the clear message that the United States holds healthcare providers and plans accountable when they knowingly submit or cause to be submitted false information to CMS to obtain inflated Medicare payments.”
“Medicare Advantage is a vital program that must serve patients’ needs, not corporate profits,” said U.S. Attorney Craig H. Missakian for the Northern District of California. “Fraud on Medicare costs the public billions annually, so when a health plan knowingly submits false information to obtain higher payments, everyone — from beneficiaries to taxpayers — loses. We have an obligation to protect the American taxpayer from waste, fraud, and abuse and we will relentlessly pursue individuals and organizations that compromise the integrity of the Medicare program.”
“The federal government supports the health care of millions of beneficiaries by paying hundreds of billions of dollars every year to Medicare Advantage Plans,” said U.S. Attorney Peter McNeilly for the District of Colorado. “Medicare relies on the accuracy of the information submitted by those plans. This resolution sends a clear message that we will hold health care plans accountable if they seek to game the system and pad their profits by submitting false information.”
“Deliberately inflating diagnosis codes to boost profits is a serious violation of public trust and undermines the integrity of the Medicare Advantage program,” said Acting Deputy Inspector General for Investigations Scott J. Lampert at the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “This outcome demonstrates HHS-OIG’s commitment to protecting Medicare through a unified approach — leveraging the expertise of our investigators, auditors, and counsel, alongside our law enforcement partners. We will continue to hold accountable any entity that seeks to compromise the integrity of the risk adjustment program.”
“Healthcare programs funded by the public are meant to support patients, not pad corporate bottom lines. False claims and the submission of fraudulent information weaken the Medicare system and place an unfair cost on American taxpayers who expect honesty and accountability,” said Special Agent in Charge Sanjay Virmani of the FBI San Francisco Field Office. “This settlement reflects the FBI's continued commitment to holding accountable those who put profits over patients and abuse federal healthcare programs.”
The settlement announced today resolves allegations that, from 2009 to 2018, Kaiser engaged in a scheme to increase its Medicare reimbursements by pressuring physicians to add diagnoses after patient visits through “addenda” to patients’ medical records. The United States alleged that Kaiser developed various mechanisms to mine a patient’s past medical history to identify potential diagnoses that had not been submitted to CMS for risk adjustment. Kaiser then sent “queries” to its providers urging them to add these diagnoses to medical records via addenda, often months and sometimes over a year after visits. In many instances, the United States alleged, the diagnoses added by the providers had nothing to do with the patient visit in question, in violation of CMS requirements.
The United States further alleged that Kaiser set aggressive physician- and facility-specific goals for adding risk adjustment diagnoses. It alleged that Kaiser singled out underperforming physicians and facilities and emphasized that the failure to add diagnoses cost money for Kaiser, the facilities, and the physicians themselves. It also alleged that Kaiser linked physician and facility financial bonuses and incentives to meeting risk adjustment diagnosis goals.
The United States alleged that Kaiser knew that its addenda practices were widespread and unlawful. Kaiser ignored numerous red flags and internal warnings that it was violating CMS rules, including concerns raised by its own physicians that these were false claims and audits by its own compliance office identifying the issue of inappropriate addenda.
The civil settlement includes the resolution of certain claims brought in lawsuits under the qui tam or whistleblower provisions of the False Claims Act by Ronda Osinek and James M. Taylor, M.D., former employees of Kaiser. Under those provisions, private parties are permitted to sue on behalf of the United States and receive a portion of any recovery. The qui tam cases are captioned United States ex rel. Osinek v. Kaiser Permanente, et al., No. 3:13-cv-03891 (N.D. Cal.) and United States ex rel. Taylor v. Kaiser Permanente, et al., No. 3:21-cv-03894 (N.D. Cal.). The relator share of the recovery will be $95 million.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorneys’ Offices for the Northern District of California and the District of Colorado, with assistance from HHS-OIG, HHS-Office of Audit Services, and the FBI.
The investigation and resolution of this matter illustrate the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement, can be reported to the Department of Health and Human Services at www.oig.hhs.gov/fraud/report-fraud/ or 800-HHS-TIPS (800-447-8477).
The matter was handled by Fraud Section Attorneys Braden Civins, Edward Crooke, Gary Dyal, Michael R. Fishman, Martha Glover, Seth W. Greene, Rachel Karpoff, Laurie Oberembt, and Jonathan Thrope, Assistant U.S. Attorney Michelle Lo for the Northern District of California, and Assistant U.S. Attorney Kevin Traskos for the District of Colorado.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Four Bay Area Residents Charged in Fremont Jewelry Store HeistRead the Press Release
OAKLAND – A federal grand jury has indicted four defendants, Afatupetaiki Faasisila, 20, of San Bruno, Jose Herrada-Aragon, 20, of Concord, Andres Palestino, 19, of Concord, and Tom Parker Donegan, 19, of Fairfield, in connection with the June 18, 2025, robbery of a jewelry store in Fremont. Faasisila and Palestino were arrested yesterday and made their initial appearances in district court today. Herrada-Aragon and Donegan are currently in state custody on other charges and will be transferred to federal custody.
Faasisila, Herrada-Aragon, Palestino, and Donegan were initially charged by complaint on December 8, 2025, and subsequently indicted on December 18, 2025. The indictment, unsealed today, charges each defendant with one count of robbery affecting interstate commerce. According to the criminal complaint and other court documents, on June 18, 2025, over two dozen masked individuals conducted a takeover-style robbery of a jewelry store located on Mowry Avenue in Fremont. Surveillance video captured a gray Honda ramming into the store’s front façade to force entry. One individual brandished a firearm at the store’s security guard, while another held the guard’s arms and forced him to the ground. Dozens of masked individuals, including Faasisila, Herrada-Aragon and Palestino, allegedly stormed the business, which was occupied at the time. Once inside, the robbers used hammers and other tools to smash display cases and grab the jewelry contained within, resulting in an estimated loss of approximately $1.7 million dollars’ worth of jewelry. After ransacking the store, the robbers left with the stolen goods and got into waiting vehicles to flee.
The complaint alleges that Donegan drove one of the getaway vehicles, leading responding police officers on a vehicle pursuit before eventually crashing the car in another part of Fremont. There, the four defendants exited the vehicle and attempted to flee on foot, only to be apprehended by officers. Several pieces of stolen jewelry were recovered in the defendants’ flight path and the abandoned vehicle, which had also been reported stolen.
United States Attorney Craig H. Missakian and FBI Special Agent in Charge Sanjay Virmani made the announcement.
Palestino is next scheduled to appear in federal court in Oakland for an arraignment on January 14, 2026, and Faasisila is next scheduled to appear for a detention hearing on January 16, 2026.
A complaint or indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants each face a maximum sentence of 20 years in prison and a $250,000 fine for the count of robbery affecting interstate commerce in violation of 18 U.S.C. §§ 1951(a) and 2. Any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Sloan Heffron and Wendy Garbers of the Violent Crime Strike Force are prosecuting the case with the assistance of Lakisha Holliman and Yenni Weinberg. The prosecution is the result of a joint investigation by the FBI and the Fremont Police Department.
Anyone who has information relevant to this case can report it by contacting the FBI at (415) 553-7400 or tips.fbi.gov.
Rohnert Park Man Indicted on Charges of Manufacturing and Selling Firearms to Gang MembersRead the Press Release
SAN FRANCISCO – A federal grand jury has indicted Jose Alfredo Perez on charges of unlicensed manufacturing and dealing of firearms as well as firearms trafficking. Perez was arrested and made his initial appearance in federal district court on January 9, 2026.
According to the indictment unsealed last week and other court documents, Perez, 41, of Rohnert Park, is alleged to have built and supplied more than 20 AR-style assault weapons and ammunition to members of the Angelino Heights Sureño street gang in Santa Rosa, who were legally prohibited from possessing those weapons and ammunition as convicted felons.
As part of the scheme, Perez allegedly had firearms parts that could not be legally shipped to California delivered to an out-of-state address provided by one of the gang members he was working with, who then coordinated having those parts transported to California for Perez to use in building untraceable and unserialized firearms. In April 2025, while executing a search warrant at Perez’s residence, law enforcement discovered a makeshift firearms manufacturing workshop in Perez’s tool shed and garage, which contained numerous kits for building AR-style rifles along with tools and machinery for assembling the weapons.
In January 2025, officers recovered 11 unserialized assault weapons, depicted below, that were allegedly built and supplied by Perez:
United States Attorney Craig H. Missakian and FBI Special Agent in Charge Sanjay Virmani made the announcement.
Perez is currently in federal custody. He is next scheduled to appear in federal court on January 14, 2026, for an arraignment and detention hearing before U.S. Magistrate Judge Sallie Kim.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of five years in prison and a fine of $250,000 for the count of unlicensed manufacturing and dealing of firearms in violation of 18 U.S.C. § 922(a)(1)(A), and a maximum sentence of 15 years in prison and a fine of $250,000 for each count of firearms trafficking, in violation of 18 U.S.C. § 933(a)(1). Any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
This prosecution is part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. This case was investigated by HSTF Core Region 2 - San Francisco, which comprises agents and officers from the FBI, California Highway Patrol, and Santa Rosa Police Department, with the prosecution being led by the United States Attorney’s Office for the Northern District of California.
Assistant U.S. Attorney Jared Buszin is prosecuting the case with the assistance of Lakisha Holliman and Yenni Weinberg.
Nine Salinas Acosta Plaza Norteño Gang Members Indicted for Racketeering ConspiracyRead the Press Release
SAN JOSE – A federal grand jury has indicted nine South Bay men for taking part in a racketeering conspiracy to promote the aims of the Salinas Acosta Plaza Norteños (SAP Norteños) street gang by engaging in multiple crimes, including 11 murders, 14 attempted murders, drug and gun distribution, and other related offenses.
The superseding indictment, filed Dec. 18, 2025, and unsealed today, charges nine defendants, Gustavo Garcia, aka “Tatis,” 26; Lorenzo Garcia Jr., aka “Chito,” 32; Bertin Medrano, aka “Dre,” 32; Jesus Saldana aka “D Rose,” 22; Oscar Benitez aka “Sideshow,” 27; Carlos Gutierrez aka “Black Carlos,” 19; Jesus Avalos Fernandez aka “Chuchin,” 27; Jose Aguilera aka “Jay,” 26; and Marco Sanchez aka “Cooks,” 29, each with one count of racketeering conspiracy. Eleven defendants, including Gustavo Garcia, Lorenzo Garcia, and Medrano, were originally indicted in April 2024. Saldana was arrested this morning in a coordinated law enforcement operation and was arraigned in federal district court this afternoon. The other defendants were already in federal or state custody.
“For more than a decade, this gang has terrorized the residents of the Acosta Plaza townhomes and East Salinas more broadly. The violent criminal activity that defendants have been charged with is appalling and unacceptable. We will not stop until the residents of this community feel safe and secure in their homes,” said United States Attorney Craig H. Missakian. “I want to thank Homeland Security Investigations and the Salinas Police Department for their excellent work and collaboration.”
“Homeland Security Investigations is committed to investigating, and bringing to justice, dangerous criminal gangs threatening our communities. We will continue to work with our local, state, and federal partners to dismantle these groups and disrupt their illicit and violent enterprises,” said HSI Acting Special Agent in Charge Jeff Brannigan.
According to the superseding indictment, the SAP Norteños are a street gang that originated in a Salinas townhome complex by the same name. The group is now recognized as a clique within the larger collection of Norteño criminal street gangs. Members of the street gang work together to carry out crimes for the benefit of the street gang, its members, the larger Norteño organization, and the Nuestra Familia prison gang. Crimes are perpetrated by gang members to protect and uphold its power, territory, and profits, and gang members are expected to engage in shootings, robberies, drug sales, and other criminal conduct to gain entry into, and improve a member’s status in, the gang. Once in the gang, attempting to leave is not permitted; the punishment for attempting to leave is death.
The superseding indictment lists more than four dozen criminal acts that the defendants are alleged to have committed, including murders and attempted murders between July 2014 and April 2024 of perceived rival gang members, transient individuals, and former gang members. Defendants are also alleged to have engaged in multiple other crimes, including the robberies of individuals at gunpoint, the firebombing of a Salinas apartment, the distribution of drugs including fentanyl, methamphetamine, cocaine, and marijuana, firearms trafficking, and numerous shootings.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, each defendant faces a maximum sentence of 20 years in prison and $250,000 fine for racketeering conspiracy in violation of 18 U.S.C. § 1962(c).
In addition, the indictment alleges that special sentencing factors apply to Lorenzo Garcia for his role in the July 19, 2014, murder of a person identified in the indictment as “Victim-1” and Saldana for his role in the January 23, 2023, attempted murder of two people identified as “Victim-2” and “Victim-3.” If convicted, Lorenzo Garcia and Saldana each face a maximum sentence of life in prison. Any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations, and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces and Project Safe Neighborhood.
Assistant United States Attorneys George Hageman and Jared Buszin are prosecuting this case. The prosecution is the result of an investigation by HSI and the Salinas Police Department, with assistance from the Monterey County District Attorney’s Office.
SAP Norteños Superseding Indictment
Research Company to Pay $1 Million to Resolve Alleged Violations of the Controlled Substances ActRead the Press Release
SAN FRANCISCO – Charles River Laboratories, Inc. (CRL), successor by merger to Explora Biolabs Holdings, Inc., has agreed to pay $1,000,000 to resolve allegations that Explora engaged in the unlawful manufacturing and distribution of controlled substances between 2019 and 2022 in violation of the Controlled Substances Act (CSA). CRL also entered into a separate agreement with the U.S. Drug Enforcement Administration (DEA) that contains provisions to ensure the company’s compliance with the CSA over the next three years.
Explora, a provider of contract vivarium research services, was previously registered with the DEA for its facilities in South San Francisco and San Diego. Both facilities held Researcher registrations, which generally do not authorize the manufacture or distribution of controlled substances.
The United States alleges that Explora nevertheless engaged in those activities at its South San Francisco and San Diego facilities without the appropriate registration. Based on its investigation, the United States contends that Explora unlawfully manufactured and distributed controlled substances in at least 178 instances, in violation of provisions of the CSA that closely regulate the manufacture, distribution, dispensation, importation, and exportation of controlled substances, and that Explora also violated multiple recordkeeping requirements of the CSA.
The United States alleges that CRL has successor liability for Explora’s violations of the CSA, but does not allege that CRL itself violated the CSA.
“Entities that exceed the scope of their DEA license can expect heightened investigative scrutiny and severe civil penalties,” said United States Attorney Craig H. Missakian. “This Office remains committed to working with the DEA to ensure that registrants who do not comply with the Controlled Substances Act are held accountable.”
“We expect companies utilizing a DEA researcher registration to adhere to the parameters of its permitted practices. This case shows that we will aggressively investigate and hold accountable those who violate the scope of their lawful activities. Research is not an excuse to violate the law,” said San Francisco Division DEA Special Agent in Charge Bob P. Beris. “Explora’s violations of the Act were on over 150 separate occasions. The DEA is committed to protecting our communities and ensuring lawful scientific research.”
“DEA registrants play a critical role in protecting the public and that responsibility starts with strict compliance to the Code of Federal Regulations,” said San Diego Division DEA Special Agent in Charge James Nunnallee. “When or if a company chooses to ignore these obligations, it puts communities at risk and undermines the safeguards designed to keep the public safe. DEA holds registrants accountable and in turn, expects them to keep the public safe.”
Assistant U.S. Attorney Michael Pyle handled this matter for the government. The investigation and settlement resulted from a coordinated effort by the U.S. Attorney’s Office for the Northern District of California, and DEA Diversion Investigators in San Francisco and San Diego.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Two East Bay Men Plead Guilty for Their Roles in Multiple Armed Robberies over A Three-Week Span in 2024Read the Press Release
SAN FRANCISCO – Jaray Washington, 44, of Oakland, pleaded guilty in federal court today to committing eight armed robberies throughout the East Bay over a three-week span in 2024, as well as being a felon in possession of a firearm. Deante Hunt, 27, of San Lorenzo, pleaded guilty on November 14, 2025, to one count of robbery affecting interstate commerce for his participation in two of the armed robberies.
In pleading guilty, Washington admitted to robbing multiple gas stations and convenience of gas stations, convenience stores, and a fast-food restaurant between January 14, 2024, and February 2, 2024, including:
- On January 14, 2024, Washington, with a pistol in hand, robbed a gas station snack shop on Hesperian Boulevard in Hayward, during which he racked the pistol’s slide when he demanded money from the store clerk and demanded that the clerk provide money from the store’s safe.
- On January 22, 2024, Washington, carrying a pistol, robbed a gas station snack shop on Winston Avenue in Hayward and took by force money and cigarettes from the store clerk and jewelry, a wallet, and an iPhone from a store customer.
- On January 31, 2024, during a robbery of a gas station store on Castro Valley Boulevard in Castro Valley, Washington grabbed a store clerk from behind and held a pistol against the clerk’s body, while Hunt demanded money from the cash register and took money from the clerk’s pockets. The two men took approximately $1,500 in U.S. currency from the store’s two cash registers and approximately 10 cartons of cigarettes.
- On February 2, 2024, Washington and Hunt robbed a fast-food restaurant on Foothill Boulevard in Hayward, during which Washington used a pistol to force both female employees into a back office at gunpoint. Hunt took over $1,000 in cash.
In addition, during a search of Washington’s residence on February 13, 2024, law enforcement found a loaded semiautomatic Glock model 19 pistol, which Washington admitted was the same firearm he used in the eight robberies. Washington possessed the firearm despite having previously been convicted of multiple felony offenses.
United States Attorney Craig H. Missakian and FBI Special Agent in Charge Sanjay Virmani made the announcement.
Washington is currently in federal custody and is scheduled to be sentenced on March 6, 2026. Hunt is currently released on bail and is scheduled to be sentenced on February 20, 2026.
Each defendant faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count of robbery affecting interstate commerce in violation of 18 U.S.C. § 1951(a). Washington also faces a maximum statutory penalty of 15 years in prison and a $250,000 fine for the count of felon in possession of a firearm in violation of 18 U.S.C. § 922(g)(1). Any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Jonah Ross and Kelly Volkar are prosecuting the case with the assistance of Alycee Lane, Mark DiCenzo, and Amala James. The prosecution is the result of an investigation by the FBI, Hayward Police Department, Fremont Police Department, Livermore Police Department, San Leandro Police Department, and Alameda County Sheriff’s Office.
Bay Area Businessmen, Chinese National, and Three Companies Charged with Scheme to Evade Millions in Customs DutiesRead the Press Release
SAN FRANCISCO – A federal grand jury has indicted Xin Mian Pan (a/k/a “Henry Pan”), Hua Liang Xie (a/k/a “Nolan Xie”), Jinhua Wang (a/k/a “Johnson Wang”), Uni-Tile & Marble, Inc., Uni-Stone & Cabinet, Inc., and Shenzhen Top & Profit International Forwarding Co. Ltd. on charges arising from a scheme to evade more than $109 million in anti-dumping duties, countervailing duties, and other duties imposed on quartz surface products, wooden cabinets and vanities, and ceramic tiles manufactured in the People’s Republic of China (PRC) and imported into the United States. Pan was arrested yesterday and made his initial appearance in federal district court today.
The indictment filed December 17, 2025, and unsealed today charges Pan, 63, of San Francisco; Xie, 61, of South San Francisco; Wang, 53, a PRC national; Pan’s Bay Area companies, Uni-Tile & Marble and Uni-Stone & Cabinet; and Wang’s PRC-based company, Top & Profit, with conspiracy, conspiracy to commit wire fraud, wire fraud, smuggling, and entry of goods by means of false statements. Pan, Uni-Tile & Marble, and Uni-Stone & Cabinet are additionally charged with international money laundering.
“Defendants are charged with evading customs duties intended to protect U.S. manufacturers and American jobs. The alleged scheme cheated the United States out of hundreds of millions of dollars in customs duties and harmed honest businesses that play by the rules,” said United States Attorney Craig H. Missakian. “Companies that think they can beat the system should be on notice that they will be investigated and held accountable.”
“Evading tariffs and customs duties is not a paperwork violation,” said Deputy Assistant Attorney General Brenna Jenny for the Justice Department’s Civil Division. “Today’s charges reflect the Department’s commitment, through its Trade Fraud Task Force, to impose significant penalties on those who flout U.S. trade laws.”
“Today’s indictment demonstrates our unwavering commitment to holding accountable those who seek to undermine the integrity of our financial and trade systems,” said Tatum King, Special Agent in Charge, HSI San Francisco. “The charges of conspiracy, wire fraud, smuggling, entry of goods by means of false statements, and international money laundering reflect the seriousness of the alleged criminal conduct. We will continue to work with U.S. Customs and Border Protection, the U.S. Attorney’s Office, and other partner agencies to ensure that those who attempt to profit through deception and illegal activity are brought to justice.”
According to the indictment, the U.S. Department of Commerce imposes duties, including anti-dumping duties and countervailing duties, on certain foreign imports. Antidumping duties (AD) provided relief to domestic industries that had been, or were threatened with, material injury caused by imported goods sold in the U.S. market at prices that were shown to be less than fair market value. Countervailing duties (CVD) gave similar relief to domestic industries that had been, or were threatened with, material injury caused by imported goods that had been found to have received significant foreign government subsidies and could therefore be sold at lower prices than similar goods produced in the United States. These unfair trade practices historically caused significant harm to U.S. manufacturers, resulting in large-scale layoffs of employees and the demise of many U.S.-based manufacturing industries. When imposed together on certain merchandise, AD/CVD rates are described as a “combination rate.”
Over the 2018 to 2020 time period, the Department of Commerce determined that quartz surface products, wooden cabinets and vanities, and ceramic tiles manufactured in the PRC were being sold in the United States at less than fair market value. As a result, the United States imposed a combination rate of 341.47 percent on quartz surface products imported from the PRC, a combination rate of 251.64 percent on wooden cabinets and vanities imported from the PRC, and a combination rate of 689.50 percent on ceramic tiles imported from the PRC.
The indictment alleges that beginning no later than September 2018 and continuing through August 2023, defendants devised a scheme to avoid paying the combination rate and other customs duties to increase the profitability of Pan’s companies and to enrich Pan. Pan controlled several companies, including Uni-Tile & Marble and Uni-Stone & Cabinet, that imported kitchen products such as quartz surface products, wooden cabinets and vanities, and ceramic tiles that were subject to the combination rate. Pan and his co-conspirators utilized several techniques to avoid paying duties, including the transshipment of goods through Malaysia, the use of shell companies, and misclassifying imported products.
Wang and Top & Profit allegedly facilitated Pan’s efforts to avoid paying the combination rate by sending goods manufactured in the PRC to Malaysia, re-exporting those goods from Malaysia to the Port of Oakland, and falsely claiming to Customs and Border Protection (CBP) that the goods had been manufactured in Malaysia. In addition, Pan utilized shell companies that were falsely listed on entry documents as being the U.S.-based importer and recipient of the goods when in fact the goods were destined for Pan’s companies, including Uni-Tile & Marble and Uni-Stone & Cabinet. Defendants are also alleged to have misclassified products and submitted false documentation to CBP, including the filing of false entry summaries by Xie, a licensed customs broker.
In total, Pan, Uni-Tile & Marble, Uni-Stone & Cabinet, and their co-conspirators allegedly imported approximately 520 shipments as part of the scheme, which allowed Pan’s companies to avoid paying more than $109 million in duties owed to the United States.
Further, CBP has simultaneously issued an approximately $222.5 million pre-penalty notice to Uni-Tile & Marble and Pan, jointly and severally, where CBP tentatively found that both Pan and Uni-Tile & Marble fraudulently entered goods by means of false statement in violation of 19 U.S.C. § 1592.
Pan is currently in federal custody and is next scheduled to appear on December 19, 2025, for a detention hearing before U.S. Magistrate Judge Thomas S. Hixson.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants face a maximum sentence of five years in prison for each count of conspiracy in violation of 18 U.S.C. § 371; 20 years in prison for each count of conspiracy to commit wire fraud in violation of 18 U.S.C. § 1349, wire fraud in violation of 18 U.S.C. § 1343, and smuggling in violation of 18 U.S.C. § 545; two years in prison for each count of entry of goods by means of false statements in violation of 18 U.S.C. § 542; and 20 years in prison for each count of international money laundering in violation of 18 U.S.C. §1956(a)(2). Any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Christiaan Highsmith, Aseem Padukone, and Kelsey Davidson are prosecuting the case with the assistance of Kevin Costello. The prosecution is the result of an investigation by HSI and CBP. The civil penalty will be pursued by CBP in an administrative process and will be supported by Senior Trial Counsel Liridona Sinani of the Civil Division, Commercial Litigation Branch, National Courts Section and other Civil Division attorneys with the Trade Fraud Task Force.
Pan, Xie, Wang, et al. Filed Indictment
San Jose Engineer Sentenced to 10 Years in Prison for Bombings of PG&E Transformers, Causing Property Damage and Widespread Power OutagesRead the Press Release
SAN JOSE – Peter Karasev, 39, of San Jose, California, was sentenced yesterday to 120 months in federal prison for two counts of willful destruction of an energy facility related to two separate bombings of PG&E electrical transformers in late 2022 and early 2023. U.S. District Judge Beth Labson Freeman handed down the sentence.
“Karasev’s attacks on critical infrastructure were direct threats to public safety and national security,” said U.S. Attorney Craig H. Missakian. “He aimed to inflict widespread disruption and harm, but we remain steadfast in our commitment to holding accountable those who threaten the safety and well-being of the residents of San Jose. We and our law enforcement partners will leverage every available resource to ensure that violent extremists like the defendant face the full force of justice.”
“This defendant admitted to attacking critical infrastructure which could have harmed people in the San Jose, California community and he will now face the consequences of his actions,” said Assistant Director Donald Holstead of the FBI’s Counterterrorism Division. “This individual conducted research and prepared homemade explosives which knocked out power to multiple homes and caused more than $200,000 in property damage to local businesses. The FBI will work with our partners to identify and hold accountable those who engage in such dangerous and illegal acts.”
“Peter Karasev’s actions were deliberate, dangerous, and designed to disrupt critical infrastructure relied upon by our residents. This 10-year federal prison sentence reflects the seriousness of using explosive devices to attack our power grid and the real-world consequences of those choices,” said FBI Special Agent in Charge Sanjay Virmani. “The FBI is grateful for the outstanding collaboration with the San Jose Police Department in this case. Together, we remain committed to protecting our communities and holding those who threaten public safety fully accountable.”
Karasev pleaded guilty on April 29 to two counts of willful destruction of an energy facility. Karasev admitted that on Dec. 8, 2022, and Jan. 5, 2023, he willfully damaged energy facilities involved in the production, storage, transmission, and distribution of electricity. The Jan. 5, 2023, explosion was captured on nearby surveillance footage:
Explosion of transformer located near Plaza Del Ray shopping center on Snell Avenue captured by nearby surveillance footage.
In both attacks, Karasev used homemade explosive devices to cause significant destruction and widespread power outages in the San Jose area. According to the government’s sentencing memorandum, the bombings caused over $200,000 in damages to affected businesses and disrupted service to over 1,500 households in the San Jose area. Of those affected included 15 households enrolled in PG&E’s Medical Baseline Program that required continued electrical service for life-sustaining medical needs.Karasev admitted that the attacks were premeditated and deliberate, and that he had conducted extensive internet searches regarding explosive materials, infrastructure attacks, and geopolitical conflicts.
In addition to the prison term, Judge Freeman also sentenced the defendant to a three-year period of supervised release and ordered $214,880.67 in restitution and $200 special assessment. The defendant was immediately remanded into custody to begin serving his sentence.
Assistant U.S. Attorney Anne C. Hsieh for the Northern District of California prosecuted the case with the assistance of Sara Slattery and the National Security Division’s Counterterrorism Section. The prosecution is the result of an investigation by the FBI and San Jose Police Department.
Engineer Sentenced to 10 Years in Prison for Bombings of PG&E Transformers, Causing Property Damage and Widespread Power OutagesRead the Press Release
Peter Karasev, 39, of San Jose, California, was sentenced yesterday to 120 months in federal prison for two counts of willful destruction of an energy facility related to two separate bombings of PG&E electrical transformers in late 2022 and early 2023. U.S. District Judge Beth Labson Freeman handed down the sentence.
“Karasev’s specialized knowledge in explosives, the vast quantity of bombmaking materials discovered in his home, and his readiness to deploy both against our Nation’s energy infrastructure made him a very dangerous individual who posed a significant risk to public safety,” said Assistant Attorney General for National Security John A. Eisenberg. “The National Security Division is committed to prosecuting attacks on critical infrastructure to the fullest extent of the law.”
“Karasev’s attacks on critical infrastructure were direct threats to public safety and national security,” said U.S. Attorney Craig H. Missakian for the Northern District of California. “He aimed to inflict widespread disruption and harm, but we remain steadfast in our commitment to holding accountable those who threaten the safety and well-being of the residents of San Jose. We and our law enforcement partners will leverage every available resource to ensure that violent extremists like the defendant face the full force of justice.”
“This defendant admitted to attacking critical infrastructure which could have harmed people in the San Jose, California community and he will now face the consequences of his actions,” said Assistant Director Donald Holstead of the FBI’s Counterterrorism Division. “This individual conducted research and prepared homemade explosives which knocked out power to multiple homes and caused more than $200,000 in property damage to local businesses. The FBI will work with our partners to identify and hold accountable those who engage in such dangerous and illegal acts.”
Karasev pleaded guilty on April 29 to two counts of willful destruction of an energy facility. Karasev admitted that on Dec. 8, 2022, and Jan. 5, 2023, he willfully damaged energy facilities involved in the production, storage, transmission, and distribution of electricity. The Jan. 5, 2023, explosion was captured on nearby surveillance footage:
Case 5:23-cr-00364-BLF, N.D. Calif. Document 46; Filed 12/10/25. Explosion of transformer located near Plaza Del Ray shopping center on Snell Avenue captured by nearby surveillance footage.In both attacks, Karasev used homemade explosive devices to cause significant destruction and widespread power outages in the San Jose area. According to the government’s sentencing memorandum, the bombings caused over $200,000 in damages to affected businesses and disrupted service to over 1,500 households in the San Jose area. Of those affected included 15 households enrolled in PG&E’s Medical Baseline Program that required continued electrical service for life-sustaining medical needs.
Karasev admitted that the attacks were premeditated and deliberate, and that he had conducted extensive internet searches regarding explosive materials, infrastructure attacks, and geopolitical conflicts.
In addition to the prison term, Judge Freeman also sentenced the defendant to a three-year period of supervised release and ordered $214,880.67 in restitution and $200 special assessment. The defendant was immediately remanded into custody to begin serving his sentence.
Assistant U.S. Attorney Anne C. Hsieh for the Northern District of California prosecuted the case with the assistance the National Security Division’s Counterterrorism Section. The prosecution is the result of an investigation by the FBI and San Jose Police Department.
Digital Health Company and Medical Practice Indicted in $100M Adderall Distribution SchemeRead the Press Release
A federal grand jury in San Francisco returned an indictment yesterday charging a California company for its participation in a years-long scheme to illegally distribute Adderall over the internet, conspire to commit health care fraud in connection with the submission of false and fraudulent claims for reimbursement for Adderall and other stimulants, and conspire to obstruct justice. A Florida medical practice was also charged in connection with its alleged participation in the scheme to illegally distribute Adderall.
“As alleged, Done Global used lies and deceit to carry out a sophisticated and wide-ranging telehealth fraud scheme, obtaining over $100 million in the process,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “From feeding addiction to stealing public funds, rampant health care fraud victimizes our citizens and must be stopped. The Criminal Division will not hesitate to hold health care companies that defraud Americans accountable for their crimes.”
“Done Global betrayed the public trust by allegedly exploiting a subscription-based program to flood the country with Adderall, a powerful and highly regulated controlled substance,” said Assistant Administrator Cheri Oz of the Drug Enforcement Administration (DEA) Diversion Control Division. “By distributing over 40 million Adderall pills for non-legitimate medical purposes, they prioritized profit over patient safety and public health. Controlled substances are not commodities to be marketed through memberships — they are medications that require careful oversight to prevent misuse and diversion. DEA remains steadfast in its commitment to hold registrants accountable.”
“Yesterday, we charged defendants with exploiting telehealth to provide unfettered access to over 40 million Adderall pills. Instead of leveraging technology to improve patient access to care and enhance communications, Done Global saw it as a way to boost profit. We will vigorously pursue companies that engage in this kind of fraud and put patients at risk,” said U.S. Attorney Craig H. Missakian for the Northern District of California.
“Prescribing controlled substances without proper medical oversight, as alleged, endangers patients and erodes trust in our health care system,” said Deputy Inspector General for Investigations Christian J. Schrank of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “Running a sham operation to exploit federal programs and funnel taxpayer dollars into unlawful stimulant distribution is a blatant abuse. HHS-OIG will continue to work with our law enforcement partners to expose and dismantle schemes that threaten public safety and defraud the American people.”
“IRS Criminal Investigation special agents are specially equipped to follow the complex financial trail left by criminals, and we are dedicated to holding those accountable for crimes committed,” said Special Agent in Charge Harry T. Chavis of IRS Criminal Investigation New York. “This was a brazen scheme of staggering proportions while also putting individual lives at risk. Yesterday’s indictment sends a clear message that we remain vigilant and will vigorously pursue those who attempt to enrich themselves through fraudulent means.”
According to court documents, Done Global Inc., a California company, allegedly identified itself as a “digital health company,” which operated on a subscription-based model where individuals paid a monthly fee. Done Global advertised that it provided online diagnosis, treatment, and refills of medication for attention deficit hyperactivity disorder (ADHD). As alleged, Done Global and Mindful Mental Wellness P.A. (MMW), a Florida company, allegedly conspired with others to provide easy access to over 40 million pills of Adderall and other stimulants in exchange for payment of the monthly subscription fee. The indictment alleges that the conspiracy’s purpose was for the defendants to unlawfully enrich themselves by, among other things, instructing Done prescribers to prescribe Adderall and other stimulants without any legitimate medical purpose, thereby increasing monthly subscription revenue and increasing the value of Done Global. Done Global allegedly arranged for the prescription of over 40 million pills of Adderall and other stimulants and obtained over $100 million in revenue.
The founder and CEO of Done Global, Ruthia He, and Done Global’s former clinical president, David Brody, were previously convicted of conspiracy to distribute controlled substances, four counts of distribution of controlled substances and conspiracy to commit health care fraud. Ruthia He was also convicted of conspiracy to obstruct justice.
According to court documents, Done Global identified itself as a “digital health company,” which operated on a subscription-based model where individuals paid a monthly fee. Done Global advertised that it provided online diagnosis, treatment and refills of medication for ADHD. Done Global and MMW allegedly conspired to provide Done members with prescriptions for Adderall and other stimulants that were not issued for a legitimate medical purpose in the usual course of professional practice. Done Global and MMW allegedly ordered Adderall and other stimulants for Done members, including Medicare and Medicaid beneficiaries and commercial insurers members, with whom they lacked a pre-existing practitioner-patient relationship, without an examination, and sometimes based solely on a short video or audio communication and limited patient intake documents, or without any video or audio communication at all. Done Global, MMW, and others, allegedly agreed to provide few, if any, medical treatment options besides prescribing Adderall and other stimulants. In some cases, Done members: (a) did not meet the Diagnostic and Statistical Manual of Mental Disorders (DSM)-V criteria for diagnosing ADHD; (b) posed a risk of diversion; and (c) in the event such medications were necessary, were provided dosages, directions, combinations or quantities of medications beyond any legitimate medical purpose, and without following the usual course of professional practice for prescribing them.
Done Global and MMW also allegedly enabled Done members to obtain Adderall and other stimulants from pharmacies by defrauding pharmacies and Medicare, Medicaid, and the commercial insurers, concealing and disguising the unlawful prescription of Adderall and other stimulants. Done Global also allegedly conspired to submit false and fraudulent claims to Medicare, Medicaid, and the commercial insurers.
By 2023, certain pharmacies allegedly refused to fill prescriptions written by prescribers retained by Done Health, a California Company that was affiliated with Done Global and purportedly owned by Brody. According to the indictment, Done Global incorporated MMW to circumvent the pharmacies that had blocked the filling of Done Global-affiliated prescriptions.
Done Global also allegedly conspired to alter, destroy, and conceal records after receiving a grand jury subpoena.
Done Global is charged with one count of conspiracy to illegally distribute Adderall, four counts of illegal distribution of Adderall, conspiracy to commit health care fraud, and conspiracy to obstruct justice. If convicted, Done Global faces a maximum penalty for conspiracy and illegal distribution of Adderall of twice the gross profits or other proceeds; and twice the gain or twice the gross loss for conspiracy to commit health care fraud and obstruction. If convicted, MMW faces a maximum penalty for conspiracy to illegally distribute Adderall of twice the gross profits or other proceeds.
Acting Deputy Chief Jacob Foster, Assistant Chief Emily Gurskis and Trial Attorney Jil Simon of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kristina Green for the Northern District of California are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of nine strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Finding a New Provider
Patients receiving treatment at this practice may contact their insurance carrier for assistance in identifying a new provider for continued care. Individuals seeking access to a new primary care provider or other services can also find a provider through https://findahealthcenter.hrsa.gov/.
Crisis Support
Patients experiencing a mental health or substance use crisis can contact the 988 Suicide and Crisis Lifeline for 24/7 support. Trained counselors provide confidential, judgment-free assistance.
Additional Information
The Department of Justice and its law enforcement partners are working with public health and behavioral health partners to communicate where patients can find appropriate care and to alert them of potential risks associated with obtaining medications outside legal channels. Patients seeking further information on where to obtain care can refer to the CDC Health Advisory on a related action from June 13, 2024. Health Alert Network (HAN) - 00510 | Disrupted Access to Prescription Stimulant Medications Could Increase Risk of Injury and Overdose.
Digital Health Company and Medical Practice Indicted in $100M Adderall Distribution SchemeRead the Press Release
SAN FRANCISCO—A federal grand jury in San Francisco returned an indictment yesterday charging a California company for its participation in a years-long scheme to illegally distribute Adderall over the internet, conspire to commit health care fraud in connection with the submission of false and fraudulent claims for reimbursement for Adderall and other stimulants, and conspire to obstruct justice. A Florida medical practice was also charged in connection with its alleged participation in the scheme to illegally distribute Adderall.
“Yesterday, we charged defendants with exploiting telehealth to provide unfettered access to over 40 million Adderall pills. Instead of leveraging technology to improve patient access to care and enhance communications, Done Global saw it as a way to boost profit. We will vigorously pursue companies that engage in this kind of fraud and put patients at risk,” said U.S. Attorney Craig H. Missakian for the Northern District of California.
“As alleged, Done Global used lies and deceit to carry out a sophisticated and wide-ranging telehealth fraud scheme, obtaining over $100 million in the process,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “From feeding addiction to stealing public funds, rampant health care fraud victimizes our citizens and must be stopped. The Criminal Division will not hesitate to hold health care companies that defraud Americans accountable for their crimes.”
“Done Global betrayed the public trust by allegedly exploiting a subscription-based program to flood the country with Adderall, a powerful and highly regulated controlled substance,” said Assistant Administrator Cheri Oz of the Drug Enforcement Administration (DEA) Diversion Control Division. “By distributing over 40 million Adderall pills for non-legitimate medical purposes, they prioritized profit over patient safety and public health. Controlled substances are not commodities to be marketed through memberships — they are medications that require careful oversight to prevent misuse and diversion. DEA remains steadfast in its commitment to hold registrants accountable.”
“Prescribing controlled substances without proper medical oversight, as alleged, endangers patients and erodes trust in our health care system,” said Deputy Inspector General for Investigations Christian J. Schrank of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “Running a sham operation to exploit federal programs and funnel taxpayer dollars into unlawful stimulant distribution is a blatant abuse. HHS-OIG will continue to work with our law enforcement partners to expose and dismantle schemes that threaten public safety and defraud the American people.”
“IRS Criminal Investigation special agents are specially equipped to follow the complex financial trail left by criminals, and we are dedicated to holding those accountable for crimes committed,” said Special Agent in Charge Harry T. Chavis of IRS Criminal Investigation New York. “This was a brazen scheme of staggering proportions while also putting individual lives at risk. Yesterday’s indictment sends a clear message that we remain vigilant and will vigorously pursue those who attempt to enrich themselves through fraudulent means.”
According to court documents, Done Global Inc., a California company, allegedly identified itself as a “digital health company,” which operated on a subscription-based model where individuals paid a monthly fee. Done Global advertised that it provided online diagnosis, treatment, and refills of medication for attention deficit hyperactivity disorder (ADHD). As alleged, Done Global and Mindful Mental Wellness P.A. (MMW), a Florida company, allegedly conspired with others to provide easy access to over 40 million pills of Adderall and other stimulants in exchange for payment of the monthly subscription fee. The indictment alleges that the conspiracy’s purpose was for the defendants to unlawfully enrich themselves by, among other things, instructing Done prescribers to prescribe Adderall and other stimulants without any legitimate medical purpose, thereby increasing monthly subscription revenue and increasing the value of Done Global. Done Global allegedly arranged for the prescription of over 40 million pills of Adderall and other stimulants and obtained over $100 million in revenue.
The founder and CEO of Done Global, Ruthia He, and Done Global’s former clinical president, David Brody, were previously convicted of conspiracy to distribute controlled substances, four counts of distribution of controlled substances and conspiracy to commit health care fraud. Ruthia He was also convicted of conspiracy to obstruct justice.
According to court documents, Done Global identified itself as a “digital health company,” which operated on a subscription-based model where individuals paid a monthly fee. Done Global advertised that it provided online diagnosis, treatment and refills of medication for ADHD. Done Global and MMW allegedly conspired to provide Done members with prescriptions for Adderall and other stimulants that were not issued for a legitimate medical purpose in the usual course of professional practice. Done Global and MMW allegedly ordered Adderall and other stimulants for Done members, including Medicare and Medicaid beneficiaries and commercial insurers members, with whom they lacked a pre-existing practitioner-patient relationship, without an examination, and sometimes based solely on a short video or audio communication and limited patient intake documents, or without any video or audio communication at all. Done Global, MMW, and others, allegedly agreed to provide few, if any, medical treatment options besides prescribing Adderall and other stimulants. In some cases, Done members: (a) did not meet the Diagnostic and Statistical Manual of Mental Disorders (DSM)-V criteria for diagnosing ADHD; (b) posed a risk of diversion; and (c) in the event such medications were necessary, were provided dosages, directions, combinations or quantities of medications beyond any legitimate medical purpose, and without following the usual course of professional practice for prescribing them.
Done Global and MMW also allegedly enabled Done members to obtain Adderall and other stimulants from pharmacies by defrauding pharmacies and Medicare, Medicaid, and the commercial insurers, concealing and disguising the unlawful prescription of Adderall and other stimulants. Done Global also allegedly conspired to submit false and fraudulent claims to Medicare, Medicaid, and the commercial insurers.
By 2023, certain pharmacies allegedly refused to fill prescriptions written by prescribers retained by Done Health, a California Company that was affiliated with Done Global and purportedly owned by Brody. According to the indictment, Done Global incorporated MMW to circumvent the pharmacies that had blocked the filling of Done Global-affiliated prescriptions.
Done Global also allegedly conspired to alter, destroy, and conceal records after receiving a grand jury subpoena.
Done Global is charged with one count of conspiracy to illegally distribute Adderall, four counts of illegal distribution of Adderall, conspiracy to commit health care fraud, and conspiracy to obstruct justice. If convicted, Done Global faces a maximum penalty for conspiracy and illegal distribution of Adderall of twice the gross profits or other proceeds; and twice the gain or twice the gross loss for conspiracy to commit health care fraud and obstruction. If convicted, MMW faces a maximum penalty for conspiracy to illegally distribute Adderall of twice the gross profits or other proceeds.
Assistant U.S. Attorney Kristina Green for the Northern District of California and Acting Deputy Chief Jacob Foster, Assistant Chief Emily Gurskis and Trial Attorney Jil Simon of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of nine strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Finding a New Provider
Patients receiving treatment at this practice may contact their insurance carrier for assistance in identifying a new provider for continued care. Individuals seeking access to a new primary care provider or other services can also find a provider through https://findahealthcenter.hrsa.gov/.
Crisis Support
Patients experiencing a mental health or substance use crisis can contact the 988 Suicide and Crisis Lifeline for 24/7 support. Trained counselors provide confidential, judgment-free assistance.
Additional Information
The Department of Justice and its law enforcement partners are working with public health and behavioral health partners to communicate where patients can find appropriate care and to alert them of potential risks associated with obtaining medications outside legal channels. Patients seeking further information on where to obtain care can refer to the CDC Health Advisory on a related action from June 13, 2024. Health Alert Network (HAN) - 00510 | Disrupted Access to Prescription Stimulant Medications Could Increase Risk of Injury and Overdose.
Coordinated Federal-Local Law Enforcement Efforts Lead Surge in Arrests, Drug Seizures, and Federal Drug Trafficking Charges in San FranciscoRead the Press Release
SAN FRANCISCO – The U.S. Attorney’s Office and federal law enforcement partners announced today the results of a surge in federal drug enforcement measures in San Francisco over the past two months. Coordinated federal and local law enforcement efforts resulted in the seizure of over 1.04 kilograms of fentanyl—alone enough to kill nearly half a million people—over 623 grams of methamphetamine, over 140 grams of powder cocaine, over 277 grams of cocaine base, and over 250 grams of heroin and approximately 55 arrests from early October to early December 2025.
Over the same period, the U.S. Attorney’s Office brought federal criminal charges against 22 defendants for drug trafficking in San Francisco.
“San Francisco is fast becoming a model for what can be accomplished when federal law enforcement works together with our local partners to serve the public. The days of open-air drug markets on every corner and rampant overdose deaths are over. Anyone who thinks about coming to San Francisco to sell drugs must understand this: if you deal drugs, you will be arrested and prosecuted, and you will face serious consequences. We will continue to work tirelessly alongside our federal and local law enforcement partners to take fentanyl, methamphetamine, and other deadly drugs off the street and to protect the residents of this great city,” said United States Attorney Craig H. Missakian.
“Thanks to increased enforcement and intensified efforts, our strategic partnerships with local law enforcement plays a critical role in eradicating this poison from our communities. With continued urgency, we will disrupt the fentanyl supply chain, reducing its availability along with other drugs. We remain committed to protecting and saving American lives,” said DEA Special Agent in Charge Bob P. Beris.
“Since early October, the FBI has coordinated with SFPD and our other local, state, and federal law enforcement partners to intensify our efforts targeting narcotics activity in and around San Francisco’s Tenderloin District. These collaborative efforts have resulted in a significant number of arrests and major seizures of illegal drugs,” said FBI Special Agent in Charge Sanjay Virmani. “San Francisco residents deserve safe streets, free from deadly drugs. We are united, we are persistent, and we are committed to keeping our neighborhoods safe.”
“The San Francisco Police Department is committed to working collaboratively to combat the drug crisis on our streets,” said Interim SFPD Chief Paul Yep. “Anyone dealing or using drugs in our city will be held accountable. I want to thank our hard-working officers as well as our local state and federal partners for their assistance in this effort.”
These efforts expand upon the U.S. Attorney’s Office-led “All Hands on Deck” law enforcement initiative to address endemic drug dealing in the Tenderloin District of San Francisco, in particular of fentanyl. Since its inception, the initiative has resulted in approximately 191 federal drug prosecutions and 158 convictions.
Among the defendants prosecuted in connection with the All Hands on Deck initiative was Gustavo Erazo, who was sentenced on December 10, 2025, to 60 months of imprisonment for conspiracy and possession with intent to distribute fentanyl, heroin, and cocaine in violation of 21 U.S.C. §§ 846, 841(a)(1) and (b)(1)(A)-(B). The case arose out of a larger investigation into individuals traveling from the East Bay into the Tenderloin neighborhood of San Francisco to deal drugs. Law enforcement seized 15 pounds of fentanyl as a result, along with two firearms and over $50,000 in U.S. currency. Erazo was extradited in December 2024 from Honduras to face charges.
The recent increased operations involved coordination among the U.S. Attorney’s Office, DEA, FBI, ATF, IRS Criminal Investigations, the San Francisco District Attorney’s Office, the San Francisco Police Department, and California Highway Patrol. Additional operations are planned in the coming months.
Many of the recently charged federal cases involve large quantities of drugs and carry potential mandatory minimum sentences for the offenders under federal drug statutes. Examples include:
- Rodrigo Parra-Lara was indicted by a federal grand jury on November 12, 2025, on charges of possession with intent to distribute methamphetamine in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(B). Law enforcement seized around 2.4 kilograms of methamphetamine, two firearms and ammunition, along with over $14,000 in U.S. currency. The case stemmed from a larger investigation, with arrests in San Francisco and Oakland, of a Bay Area drug-trafficking organization with connections to the Sinaloa Cartel.
- Javier Velasquez Antunes was indicted by a federal grand jury on November 12, 2025, on charges of distribution and possession with intent to distribute methamphetamine in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(C) and for being a felon in possession of a firearm in violation of 18 U.S.C. § 922(g). Antunes, along with two other individuals, allegedly trafficked drugs out of a vehicle while in possession of firearms and ammunition in the Mission neighborhood of San Francisco.
- Duc Pham was indicted by a federal grand jury on December 2, 2025, on charges of possession with intent to distribute fentanyl and methamphetamine in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(A)-(C). The case involved multi-ounce purchases over a six-month period in the Tenderloin neighborhood of San Francisco.
A criminal complaint or indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Nine Indicted on Multiple Charges Arising from Armed Burglaries of Marijuana Grow Facilities That Resulted in Death of Oakland Police OfficerRead the Press Release
OAKLAND – A federal grand jury has indicted Allen Brown, Sebron Russell, Marquise Cooper, Janiero Booth (a/k/a Javon Herrington), Jowaun Jones, Shawn McGee, and Salvador Munguia on charges of conspiring to distribute, possessing with intent to distribute, and attempting to possess with intent to distribute more than 100 marijuana plants. Brown and Russell were additionally charged with discharging and brandishing a firearm, respectively, in connection with a drug trafficking crime. Two other defendants, Jasmine Kumar and Felicia Sanders, were charged with accessory after the fact.
All nine defendants were arrested yesterday or were already in custody. Defendants made their initial appearances in federal district court in San Francisco today.
According to the indictment filed on November 20, 2025, and unsealed today, the charges relate to three armed burglaries of a marijuana grow facility in Oakland, California, between late evening December 28, 2023, and early morning December 29, 2023. Oakland Police Department (OPD) officers responded to the third burglary, and the suspects fled in multiple vehicles. During the pursuit, an unnamed co-conspirator fired more than 20 shots at one of the OPD vehicles, killing Officer Tuan Le.
Following Officer Le’s death, Jasmine Kumar, the shooter’s girlfriend, and Felicia Sanders, the shooter’s mother, knowing that the shooter had stolen marijuana and murdered Officer Le, allegedly assisted the shooter in order to hinder and prevent his apprehension by law enforcement, including by furnishing him with a one-way plane ticket.
As alleged, Brown, Russell, Cooper, and the unnamed co-conspirator organized and perpetrated a series of three separate armed burglaries of the marijuana grow facility. They recruited additional individuals, including Booth, Jones, McGee, and Munguia, for the third attempted burglary, which occurred around 4:00 a.m. In total, the perpetrators are alleged to have stolen more than 100 marijuana plants.
The indictment describes that when undercover OPD officers, including Officer Le, arrived at the scene, the suspects fled the location in multiple vehicles. As suspects exited the building, the unnamed co-conspirator brandished a firearm at OPD’s unmarked undercover vehicle. Two OPD undercover vehicles chased two vehicles fleeing from the burglary scene. One vehicle, driven by Brown, followed the OPD vehicle driven by Officer Le. The unnamed co-conspirator, who was the passenger in Brown’s vehicle, fired the shots that killed Officer Le.
United States Attorney Craig H. Missakian and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Acting Special Agent in Charge Robert Topper made the announcement.
Some of the defendants are scheduled to appear on December 15, 2025, for bail proceedings before Magistrate Judge Thomas S. Hixson.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants face maximum sentences as set forth in the following chart. Any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
DefendantCharge(s)Maximum PenaltiesAllen BrownCounts One, Two, Three & Five:
21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Conspiracy To Distribute and to Possess with Intent to Distribute Over 100 Marijuana Plants; 21 U.S.C. § 841(a)(1), (b)(1)(B) – Possession with Intent to Distribute Over 100 Marijuana Plants; 21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Attempted Possession with Intent to Distribute Over 100 Marijuana Plants; and 18 U.S.C. § 924(c)(1)(A)(iii) – Discharging a Firearm in Connection with a Drug Trafficking Crime
Counts One, Two, and Three: maximum of 40 years’ imprisonment, mandatory minimum of 5 years’ imprisonment, and $5,000,000 fine.
Count Five: maximum of life imprisonment, a mandatory consecutive minimum of 10 years’ imprisonment, and a $250,000 fine.
Sebron RussellCounts One, Two, Three & Four:
21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Conspiracy To Distribute and to Possess with Intent to Distribute Over 100 Marijuana Plants; 21 U.S.C. § 841(a)(1), (b)(1)(B) – Possession with Intent to Distribute Over 100 Marijuana Plants; 21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Attempted Possession with Intent to Distribute Over 100 Marijuana Plants; and 18 U.S.C. § 924(c)(1)(A)(ii) – Brandishing a Firearm in Connection with a Drug Trafficking Crime
Counts One, Two, and Three: maximum of 40 years’ imprisonment, mandatory minimum of 5 years’ imprisonment, and $5,000,000 fine.
Count Four: maximum of life imprisonment, a mandatory consecutive minimum of 7 years’ imprisonment, and a $250,000 fine.
Marquise CooperCounts One, Two & Three:
21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Conspiracy To Distribute and to Possess with Intent to Distribute Over 100 Marijuana Plants; 21 U.S.C. § 841(a)(1), (b)(1)(B) – Possession with Intent to Distribute Over 100 Marijuana Plants; and
21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Attempted Possession with Intent to Distribute Over 100 Marijuana Plants
Maximum of 40 years’ imprisonment, mandatory minimum of 5 years’ imprisonment, and $5,000,000 fine.Janiero Booth (a/k/a Javon Herrington)Counts One & Three:
21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Conspiracy To Distribute and to Possess with Intent to Distribute Over 100 Marijuana Plants; and
21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Attempted Possession with Intent to Distribute Over 100 Marijuana Plants
Maximum of 40 years’ imprisonment, mandatory minimum of 5 years’ imprisonment, and $5,000,000 fine.Jowaun JonesCounts One & Three:
21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Conspiracy To Distribute and to Possess with Intent to Distribute Over 100 Marijuana Plants; and
21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Attempted Possession with Intent to Distribute Over 100 Marijuana Plants
Maximum of 40 years’ imprisonment, mandatory minimum of 5 years’ imprisonment, and $5,000,000 fine.Shawn McGeeCounts One & Three:
21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Conspiracy To Distribute and to Possess with Intent to Distribute Over 100 Marijuana Plants; and
21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Attempted Possession with Intent to Distribute Over 100 Marijuana Plants
Maximum of 40 years’ imprisonment, mandatory minimum of 5 years’ imprisonment, and $5,000,000 fine.Salvador MunguiaCounts One & Three:
21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Conspiracy To Distribute and to Possess with Intent to Distribute Over 100 Marijuana Plants; and
21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Attempted Possession with Intent to Distribute Over 100 Marijuana Plants
Maximum of 40 years’ imprisonment, mandatory minimum of 5 years’ imprisonment, and $5,000,000 fine.Jasmine KumarCount Six: 18 U.S.C. § 3 – Accessory After the FactMaximum of 15 years’ imprisonment and $125,000 fine.Felicia SandersCount Six: 18 U.S.C. § 3 – Accessory After the FactMaximum of 15 years’ imprisonment and $125,000 fine.Assistant U.S. Attorneys Alethea Sargent and Kelly Volkar are prosecuting the case with the assistance of Laurie Worthen and Amala James. The prosecution is the result of an investigation by the ATF and OPD, with assistance from the Drug Enforcement Administration, U.S. Marshals, FBI, OPD, California Highway Patrol, Concord Police Department, and Pittsburg Police Department for yesterday’s arrests.
East Bay Woman Sentenced to More Than Two Years in Prison for Embezzling over $1.6 Million from Charity Serving Young PeopleRead the Press Release
OAKLAND – Carrie Lynn Grant was sentenced to 27 months in federal prison for embezzling over $1.6 million dollars from a Northern California charity organization that provides educational materials and programs to prepare young people to succeed in a global economy. U.S. District Judge Araceli Martínez-Olguín handed down the sentence this week.
Grant, 62, of Pleasant Hill, California, was indicted by a federal grand jury on July 22, 2024. Grant pleaded guilty on August 11, 2025, to one count of wire fraud. According to the plea agreement and court documents, over a period of years from November 2017 to June 2023, Grant abused her role as the finance manager of the charity, depositing charity money into her personal account while creating fraudulent records to cover her tracks. Grant spent the money on, among other things, first-class air travel, floor seats for a Golden State Warriors game, box seats for a San Francisco 49ers game, and a condominium in Hawaii. In total, Grant stole more than $1.6 million dollars from the non-profit organization.
United States Attorney Craig Missakian and FBI Acting Special Agent in Charge Agustin Lopez made the announcement.
In addition to the prison term, Judge Martínez-Olguín also sentenced the defendant to a three-year period of supervised release. The Court will determine the amount of restitution Grant must pay at a later date. The defendant will begin serving the sentence on March 9, 2026.
Assistant U.S. Attorney Evan M. Mateer is prosecuting the case with the assistance of Christine Tian and Amala James. The prosecution is the result of an investigation by the FBI.
Salinas Man Pleads Guilty to Attempted Sexual Exploitation of A 12-Year-Old and Distributing Child PornographyRead the Press Release
A California man pleaded guilty today to attempted enticement and coercion of a minor and to distribution of child pornography.
According to court documents, Donald Ramirez, 40, of Salinas, California, used Snapchat to send a 12-year-old girl a photo of his genitals and repeatedly demanded the child create and send him photos of herself engaged in sexually explicit conduct he directed. Ramirez also used other social media platforms, including Telegram and Wickr, to distribute child sexual abuse material including images of another female minor whom he had communicated with on Snapchat.
Ramirez is scheduled to be sentenced on May 11, 2026, and faces a mandatory minimum penalty of 10 years in prison, and a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division and U.S. Attorney Craig H. Missakian for the Northern District of California made the announcement.
The Department of Homeland Security is investigating the case.
Trial Attorney McKenzie Hightower of the Justice Department’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Neal Hong for the Northern District of California are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Concord Man Who Sold Fraudulent Sports Memorabilia Pleads Guilty to Wire FraudRead the Press Release
OAKLAND – Daniel Damato pleaded guilty in federal court this afternoon to wire fraud in connection with his sales of fraudulent sports memorabilia. Damato also admitted that he attempted to obstruct the FBI’s investigation into his criminal conduct.
Damato, 42, of Concord, California, was charged by information on October 20, 2025, with one count of wire fraud. The information alleged that between 2022 and 2024, Damato, a sports memorabilia dealer, doctored and gave false provenance to valuable items to make them appear as authentic sports collectibles, and then attempted to sell the items to unsuspecting buyers at inflated prices.
In pleading guilty, Damato admitted that in 2023, he sold for $100,000 a baseball bat that he falsely represented as having been used by Willie Mays in the 1954 World Series. Despite his assertions to the contrary, the bat Damato sold for $100,000 had not been used in the 1954 World Series and was in fact a “factory error” bat that was an inch shorter than what Mays used during his career. After the victim buyer sent Damato $100,000 for the supposedly game-used bat, Damato did not send him anything.
Damato also sold other fraudulent items, including a jersey he falsely marketed as having been worn in a game by Mays that Damato sold for $50,000.
After the FBI executed a search warrant on his residence in October 2024, Damato contacted at least one potential witness in an attempt to obstruct the government’s investigation into his conduct.
United States Attorney Craig H. Missakian and FBI Acting Special Agent in Charge Agustin Lopez made the announcement.
Damato’s sentencing hearing is scheduled for March 23, 2026, before District Judge Araceli Martínez-Olguín. Damato faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence will be imposed by the Court after consideration of the United States Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Abraham Fine is prosecuting the case with the assistance of Amala James. The prosecution is the result of an investigation by the FBI.
California Man Pleads Guilty to Attempted Sexual Exploitation of a 12-Year-Old and Distributing Child PornographyRead the Press Release
A California man pleaded guilty today to attempted enticement and coercion of a minor and to distribution of child pornography.
According to court documents, Donald Ramirez, 40, of Salinas, California, used Snapchat to send a 12-year-old girl a photo of his genitals and repeatedly demanded the child create and send him photos of herself engaged in sexually explicit conduct he directed. Ramirez also used other social media platforms, including Telegram and Wickr, to distribute child sexual abuse material including images of another female minor whom he had communicated with on Snapchat.
Ramirez is scheduled to be sentenced on May 11, 2026 and faces a mandatory minimum penalty of 10 years in prison, and a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division and U.S. Attorney Craig H. Missakian for the Northern District of California made the announcement.
The Department of Homeland Security is investigating the case.
Trial Attorney McKenzie Hightower of the Justice Department’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Neal Hong for the Northern District of California are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.