Northern District of California
Press releases recorded for this federal judicial district.
Sixth Member of Salinas-Based “Murder Squad” Sentenced to 38 Years in Federal Prison for 2017 Killing SpreeRead the Press Release
SAN JOSE – Andrew Alvarado was sentenced today to 38 years in federal prison for racketeering conspiracy and 10 years in federal prison for conspiracy to murder in aid of racketeering, to run concurrently, for his role in multiple murders and attempted murders as part of the self-proclaimed “Murder Squad,” a crew of Salinas-based Norteño criminal street gang members falling under the Monterey County Regiment Enterprise affiliated with the Nuestra Familia prison gang. U.S. District Judge Beth Labson Freeman handed down the sentence.
Alvarado, 34, of Salinas, pleaded guilty on April 15, 2025, to one count of racketeering conspiracy and one count of conspiracy to murder in aid of racketeering. According to court documents, the “Murder Squad” conducted more than a dozen “hunts,” tracking and shooting dozens of Salinas residents whom they perceived to be members of a rival gang for reasons as vague as they were Hispanic, bald, or wearing blue. The squad would often use military-style tactics, traveling in a convoy of vehicles with a designated shooter vehicle and a designated security/spotter vehicle, all of which were in constant communication via conference call. The security/spotter vehicles would patrol the streets, find a target, and transmit their location to the shooter vehicle. The shooters in the shooter vehicle would drive up, exit, fire at the victims until their magazines were empty, and speed away. The security/spotter vehicles would follow behind, ready to distract or intercept law enforcement and allow the shooter vehicle to escape.
Between 2015 and 2018, 11 people were killed during these hunts. Another 17 people were shot at but survived. Most of the victims were not actually members of a rival gang. Some of the victims were not the intended target at all but were nevertheless hit in the crossfire.
In connection with pleading guilty, Alvarado admitted that he personally participated in six “hunts” between January 2017 and May 2017. He was the shooter in three of those hunts, resulting in the deaths of three victims and the wounding of a fourth. In one instance, the hunt began when members of the “Murder Squad” gathered at a house to remember a family member killed in a car accident; they decided to commemorate the person’s death and lift their spirits by going out to kill another. Separately, Alvarado was in the security/spotter vehicle in three other hunts, resulting in the deaths of three victims, the wounding of four victims, and the near-miss of one victim.
“Gangs and the drugs and violence they bring with them wreak havoc on our communities and the hardworking families that live within them. The ruthless actions of the ‘Murder Squad’ shattered the public’s sense of safety and destroyed the lives of so many in Salinas,” said United States Attorney Craig H. Missakian. “The so-called ‘hunts’ that Alvarado and his crew ran were simply inhumane. This lengthy sentence means that Alvarado, like many of his fellow gang members, will now answer for his brazen crimes.”
“HSI San Francisco has a long and impactful history of investigating transnational gangs that threaten the safety of our communities in Northern California. We are committed to the pursuit of justice for the victims of these criminal enterprises and the violence they perpetuate. Today’s sentencing is the product of countless investigative hours and the significant investigative resources which HSI brings to bear in combatting violent transnational criminal organizations and apprehending dangerous gang members like Alvarado,” said Homeland Security Investigations (HSI) Acting Special Agent in Charge Jeffrey Brannigan.
In addition to the prison term, Judge Freeman also sentenced the defendant to a five-year period of supervised release on count one and a three-year period of supervised release on count two, to run concurrently. Alvarado was immediately remanded into custody to begin serving his sentence.
Alvarado is the sixth member of the “Murder Squad” to be sentenced. Five other defendants each pleaded guilty to one count of racketeering conspiracy in violation of 8 U.S.C. § 1962(d) and one count of conspiracy to murder in aid of racketeering in violation of 18 U.S.C. § 1959(a)(5) and were previously sentenced on Sept. 10, 2024.
This prosecution was brought by the Violent Crime Strike Force and is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Assistant U.S. Attorney George Hageman is prosecuting the case with the assistance of Nina Burney, Lakisha Holliman, and Yenni Weinberg. The prosecution is the result of an investigation by HSI, the FBI, the Salinas Police Department, and the Monterey County District Attorney’s Office.
Former Bishop of AME Zion Church Pleads Guilty to Defrauding Congregations in CaliforniaRead the Press Release
OAKLAND – Staccato Powell, a former bishop in the African Methodist Episcopal Zion Church (“AME Zion”), pleaded guilty in federal court today to wire fraud, mail fraud, and conspiracy to commit wire fraud and mail fraud in connection with a far-reaching scheme to obtain control of church properties in California using false statements, forged documents, concealment, and deception.
Powell, 65, of Wake Forest, North Carolina, was indicted along with co-defendant Sheila Quintana by a federal grand jury in January 2022. Quintana pleaded guilty to conspiracy to commit wire fraud and mail fraud in April 2025.
According to court documents and the plea agreement, in 2016, shortly after Powell was selected as bishop and assigned to AME Zion Church’s Western Episcopal District, a geographic division of the church covering several states in the western United States, including California, he formed an entity called Western Episcopal District, Inc. (WED, Inc.). Powell was the chief executive officer of WED, Inc. and Quintana was the chief financial officer from 2017 to 2019.
In 2016, Powell instructed pastors of AME Zion Churches throughout the Western Episcopal District to sign deeds granting WED, Inc. title to their congregation’s property – typically the church building, but also any outbuildings, lots, parking lots, and residences used by the pastors. At Powell’s direction, Quintana and other WED, Inc. officers worked on completing the necessary steps to accomplish the transfer of titles through grant deeds.
Starting in early 2017, Powell instructed Quintana and other WED, Inc. officers to obtain loans using the property of local AME Zion Churches acquired through the grant deeds as collateral for the loans. In response to the lenders’ request for confirmation of the local AME Zion Church’s authorization of the loan, Powell caused to be created documents purporting to be resolutions by churches to support WED, Inc.’s loan applications. In several instances, Powell directed WED, Inc. to use church resolutions with false statements, and directed Quintana to create the false documents and sign the resolutions in the name of an officer with the local church.
In pleading guilty, Powell admitted to fraudulently obtaining mortgages on the following church properties:
- Kyles Temple in Vallejo: Powell formed a group that included co-defendant Quintana to assist with the purchase of a $1.5 million episcopal residence in Granite Bay, with approximately $1 million covered by a bank loan. At Powell’s direction, to obtain the additional $500,000 in funding, the group identified two church properties, including Kyles Temple in Vallejo, that would be used as collateral to secure the financing to purchase the episcopal residence. Quintana executed the loan documents using a false resolution, which she drafted at Powell’s direction, that purported to confirm approval of the transaction by the Kyles Temple congregation. Powell also directed Quintana to draft the resolution to indicate that there had been a church meeting at which the board of trustees approved it and purportedly gave Quintana authority to execute loan documents as chair of the Kyles Temple Board of Trustees. No such meeting to discuss or approve the resolution had occurred.
- First AME Zion Church in San Jose: In 2017, Powell determined that the First AME Zion of San Jose would be used as collateral for a new loan to purchase a parsonage, and instructed Quintana to execute the purchase agreement on the new residential property. At Powell’s direction, Quintana prepared a resolution of the First AME Zion Church of San Jose’s trustee board approving the transaction including the use of the church’s property as collateral for the loan. Quintana then prepared, again at Powell’s direction, a second resolution on the San Jose church’s letterhead falsely stating that a membership meeting was held at the church to vote on “deeding all properties to the AME Zion Western Episcopal District, Inc., of The African Methodist Episcopal Zion Church” and that the church’s membership unanimously approved the transaction and authorized its pastor to sign all transaction documents. In fact, the church’s trustee board met twice to consider whether to execute a deed transfer to WED, Inc. and Powell knew that at these meetings the trustee board voted against the deed transfer. Nevertheless, Powell directed Quintana to proceed with the loan transaction in the amount of $750,000, using the church as collateral based on the false resolution. Powell later learned that the AME Zion Church of Los Angeles held a title interest in the San Jose church and directed Quintana to prepare another resolution. This resolution falsely stated that the AME Zion Church in Los Angeles held a membership meeting on October 12 and voted to deed the church in San Jose to WED, Inc. Subsequently, in December 2019, Powell directed WED, Inc. officers to encumber the San Jose church with an additional debt of $3 million. Powell admitted that he knew that the San Jose church did not authorize either the $750,000 loan or the $3 million loan.
- Greater Cooper AME Zion Church in Oakland: Powell decided in 2018 to use the Greater Cooper AME Zion Church in Oakland as collateral for a loan in the amount of $1.1 million. At Powell’s direction, Quintana obtained a resolution from Greater Cooper signed by the reverend transferring title to WED, Inc., and signed grant deeds in May 2019 transferring the church property to WED, Inc. Then, in November 2019, the reverend signed a grant deed transferring all interest in title from Greater Cooper AME Zion Church to WED, Inc., which then executed a second loan of $500,000, with the Greater Cooper property used as collateral. Powell admitted that the Greater Cooper congregation did not authorize the loans.
- University AME Zion Church of Palo Alto: In 2017, Powell informed the pastor of University AME Church that he planned to use the church as collateral for a $200,000 loan to assist another AME Zion Church in Sacramento. Powell directed Quintana to prepare a transfer of deed of the University AME Church to WED, Inc. After the reverend signed the grant deed, Powell directed Quintana to execute the necessary paperwork for a $2 million dollar loan using University AME Zion Church as collateral. Although Powell told Quintana he would inform the reverend of the $2 million loan, Powell never did so. Powell encumbered the University AME Church with unauthorized loans totaling approximately $3.9 million.
- First AME Zion Church in Los Angeles: Powell decided in December 2017 that the First AME Zion Church in Los Angeles would be used as collateral for a new loan. Powell informed Quintana that he had spoken to the pastor of the Los Angeles church and that the pastor told him that the membership had approved the transfer of title from the Los Angeles church to WED, Inc. Based on Powell’s representation, Quintana prepared a resolution purportedly from the Los Angeles church confirming its approval of the loan and placed a signature on the resolution purporting to be that of the church’s secretary. Later, in furtherance of Powell’s instructions to use the Los Angeles church as collateral, Quintana prepared an updated resolution which also purported to document a meeting at which the membership approved the transfer of title to WED, Inc. and which authorized Powell to sign all documents pertaining to the transaction, again with the church secretary’s forged signature. Based on the false resolution with the forged signature, Quintana executed the deed of trust and other loan paperwork for this $1.2 million loan. As a result, WED, Inc. obtained the $1.2 million loan using the Los Angeles church property without the authorization of the congregation.
Further, Powell admitted that at his direction, WED, Inc. borrowed $2.15 million in September 2019 to pay off other outstanding loans and $3 million in December 2019 to pay off the September 2019 loan, using several AME church properties in Arizona and California as collateral.
In addition, while serving as bishop, Powell diverted some of the funds borrowed by WED, Inc., using properties of local AME Zion Churches as collateral, for his personal benefit, including purchase of real property in North Carolina for two of his children and payment of mortgage debt that he owed on a residence in North Carolina.
Powell caused WED, Inc. to file for bankruptcy in a July 2020 petition, in which it claimed its assets included 11 churches, a parsonage, and Powell’s official residence. The petition stated that WED, Inc.’s real property was worth over $26 million with debts totaling over $12 million.
In connection with pleading guilty, Powell agreed to pay restitution in an amount no less than $3,000,000 and no greater than $12,475,453. He also agreed to forfeit any interest, claim, or right in the properties of the AME Zion Church denomination.
United States Attorney Craig H. Missakian and FBI Special Agent in Charge Sanjay Virmani made the announcement.
Powell is currently released on bond. Powell’s sentencing hearing is scheduled for Sept. 23, 2025, before Senior U.S. District Judge Jeffrey S. White. Defendant faces a maximum statutory penalty of 20 years and a $250,000 fine for each count. 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 Jonathan U. Lee is prosecuting the case with the assistance of Kathy Tat, Helen Yee, and Yenni Weinberg. The prosecution is the result of an investigation by the FBI.
Monterey County Man Sentenced to More Than Six Years in Prison for Possession with Intent to Distribute Fentanyl and Firearms OffensesRead the Press Release
SAN JOSE – Mario Jose Villagrana was sentenced today to 80 months in federal prison for possession with intent to distribute fentanyl, being a felon in possession of a firearm, and manufacturing firearms without a license. Senior U.S. District Judge Edward J. Davila handed down the sentence.
Villagrana, 30, who previously resided in Pacific Grove, was charged in a three-count information on Nov. 7, 2022. On Feb. 10, 2025, he pleaded guilty to possessing multiple firearms, manufacturing firearms, and possessing with intent to distribute approximately 1.45 kilograms of fentanyl.
According to court documents, on Feb. 15, 2022, law enforcement searched Villagrana’s residence and found eight firearms, numerous firearm magazines and ammunition, tools to manufacture firearms, 13,439 “M30” pills containing fentanyl, and $23,105. The firearms that law enforcement recovered included assault rifles, ghost guns, and a Glock pistol, converted to fire ammunition fully automatically, with an extended 30-round magazine. Villagrana, who had multiple prior felonies, was on state parole at the time he committed these offenses.
In addition to the prison term, Judge Davila also sentenced the defendant to a four-year period of supervised release and ordered him to pay a $300 special assessment. Villagrana was immediately remanded back into custody to begin serving his sentence.
United States Attorney Craig H. Missakian, Drug Enforcement Administration (DEA) Special Agent in Charge Bob P. Beris, and Bureau of Alcohol, Tobacco, and Firearms (ATF) Acting Special Agent in Charge Robert Topper made the announcement.
Assistant U.S. Attorney Neal C. Hong prosecuted the case with the assistance of Sahib Kaur. The prosecution is the result of an investigation by the DEA, ATF, and the Monterey County Sheriff’s Office.
Former Rohnert Park Police Officer Found Guilty of Conspiracy to Commit Extortion, Impersonating ATF Agent, and Other Charges Related to Marijuana Seizure SchemeRead the Press Release
SAN FRANCISCO – This afternoon, a federal jury convicted former Rohnert Park police officer Joseph Huffaker on six counts of conspiracy to commit extortion, extortion, conspiracy to falsify records in a federal investigation, falsifying records in a federal investigation, conspiracy to impersonate a federal officer, and impersonating a federal officer. The jury’s verdict follows a week-long trial before Senior U.S. District Judge Maxine M. Chesney.
According to court documents and the evidence presented at trial, Huffaker, 40, of Rohnert Park, was employed between 2012 and 2019 with the City of Rohnert Park Department of Public Safety (RPDPS) as a police officer. The jury found that Huffaker conspired with his co-defendant, fellow police officer Brendan Jacy Tatum, to pull over drivers they suspected of possessing significant amounts of marijuana and extorting the drivers’ marijuana by falsely claiming to be ATF agents and threatening arrest if the drivers contested the property seizures. The jury also found that Huffaker conspired with Tatum to obstruct justice by creating a false police report two months after their extortions and sending that report to the FBI.
“No traffic stop should turn into a shakedown. Misconduct by police officers undermines public safety and jeopardizes public cooperation with law enforcement. Huffaker’s actions threw a shadow of suspicion over multiple law enforcement agencies which, thankfully, were quick to investigate and discover his scheme,” said United States Attorney Craig H. Missakian. “The jury’s verdict today holds Huffaker accountable and sends a strong message that we will not tolerate misconduct by those who hold the public trust.”
“Today’s verdict affirms that no one is above the law. Joseph Huffaker betrayed the sworn oath he took as a police officer and used his position to extort money and marijuana from drivers under the guise of legitimate law enforcement,” said FBI Special Agent in Charge Sanjay Virmani. “Crimes like these damage the public’s confidence in law enforcement. Huffaker dishonored the oath every officer takes when he committed these crimes. The FBI remains committed to rooting out corruption at all levels, and we will continue to work closely with our partners to hold those who abuse their authority accountable.”
According to court documents and the evidence presented at trial, RPDPS previously operated an interdiction team between 2014 and early 2017 that conducted traffic stops on vehicles along Highway 101 between Cloverdale and Rohnert Park in an effort to seize illegal drugs. In December 2017, 11 months after the interdiction team had been disbanded, Huffaker and Tatum extorted significant quantities of marijuana from individuals, declaring to the individuals that their property would be seized, and at times threatening to arrest and charge the individuals. These seizures occurred while the officers were not on duty and not wearing their uniforms or body-worn cameras.
The jury found that the extortion conspiracy included a traffic stop on December 18 during which Huffaker and Tatum falsely claimed to be ATF agents and seized 23 pounds of marijuana.
In February 2018, the FBI received a complaint from a citizen who claimed to have been shaken down by police officers on the highway. An FBI agent asked Tatum for the police report related to the incident. The jury found that Tatum and Huffaker thereafter falsified a police Incident/Investigation Report regarding the unlawful December 18 traffic stop and seizure. Tatum then forwarded the falsified police report to an FBI agent who was investigating the stop.
Huffaker is currently released on bond. His sentencing hearing is scheduled for Oct. 15, 2025, before Judge Chesney. Huffaker faces a maximum statutory penalty of 20 years in prison, three years of supervised release, and a $250,000 fine for each count of conspiracy to commit extortion under color of official right, extortion under color of official right, and falsifying records in a federal investigation; five years in prison, three years of supervised release, and a $250,000 fine for each count of conspiracy to falsify records in a federal investigation and conspiracy to impersonate a federal officer; and three years in prison, one year of supervised release, and a $250,000 fine for the count of impersonating a federal officer. 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.
Co-defendant Tatum pleaded guilty in December 2021 to conspiracy to commit extortion under color of official right, falsifying records in a federal investigation, and tax evasion. Tatum is scheduled to be sentenced on Sept. 3, 2025, before Judge Chesney.
Assistant U.S. Attorneys Abraham Fine and Benjamin Kleinman are prosecuting the case with the assistance of Veronica Hernandez, Amala James, and Janice Pagsanjan. The prosecution is the result of an investigation by the FBI and IRS Criminal Investigation.
Convicted Felon Sentenced to One Year and One Day in Prison for Assaulting Deputy U.S. Marshal, Violating Supervised ReleaseRead the Press Release
SAN FRANCISCO – Jeffrey Adam Crum was sentenced today to 12 months and one day in federal prison for assaulting a Deputy U.S. Marshal who was attempting to take him into custody following a hearing in federal court and 12 months and one day for violating the terms of his supervised release, with both terms to run concurrently. Senior U.S. District Judge Susan Illston handed down the sentence.
Crum, 34, who previously resided in Burlingame and San Francisco, was indicted by a federal grand jury on Dec. 3, 2024. He pleaded guilty on May 16, 2025, to one count of assaulting, resisting, or impeding a federal officer in violation of 18 U.S.C. § 111(a)(1). According to court documents and the plea agreement, Crum appeared in federal court on Nov. 22, 2024, for a hearing regarding allegations that he violated the terms of his supervised release following his conviction for being a felon in possession of a firearm and ammunition in federal court in Utah.
At the hearing on Crum’s supervised release violation, the district court ordered that Crum be detained pending further proceedings. Crum was upset by the Court’s decision and opposed, resisted, and impeded the efforts of multiple Deputy U.S. Marshals to take him into custody. Specifically, Crum resisted instructions by Deputy U.S. Marshals to enter and exit an elevator that would take him to a holding cell, forcing them to carry him. At one point, Crum kicked his legs out, striking a Deputy U.S. Marshal in the head.
United States Attorney Craig H. Missakian and Supervisory Deputy United States Marshal David Siegel made the announcement.
The defendant was immediately remanded into custody.
Special Assistant U.S. Attorneys Eli J. Cohen and Christine Chen prosecuted the case with the assistance of Marina Ponomarchuk and Kevin Costello. The prosecution is the result of an investigation by the U.S. Marshals Service.
New York Man Who Ran $7-Million-Dollar Cryptocurrency Investment Scheme Sentenced to Four Years in Federal PrisonRead the Press Release
SAN FRANCISCO – Douglas Jae Woo Kim was sentenced today to 48 months in federal prison for his scheme to defraud investors of over $7 million in cryptocurrency and other funds. Senior U.S. District Judge Charles R. Breyer handed down the sentence.
At the conclusion of a three-week trial in February 2025, a federal jury convicted Kim, 32, of New York, New York, on 14 counts of wire fraud, international money laundering, and money laundering, and acquitted him on one count of international money laundering. At today’s sentencing hearing, Judge Breyer dismissed one count of laundering of monetary instruments, one of the 14 counts on which Kim had been found guilty, on venue grounds.
According to court documents and evidence presented at trial, between October 2017 and June 2020, after moving to San Francisco, Kim engaged in a scheme to defraud investors, many of whom were friends and acquaintances, of over $7 million in money and cryptocurrency by holding himself out as a legitimate trader of cryptocurrency. Kim falsely represented that he was seeking short-term liquidity in the form of loans or investments for cryptocurrency trading or other legitimate business purposes, told victims that the loans carried no risk or very low risk, promised high rates of return on their loans, and claimed that he had sufficient funds to personally guarantee the loans.
In October 2017, Kim contacted a victim by text message and said he was looking for investors interested in making what he called a short-term loan for a “fairly modest operation.” Kim represented that he was investing in a cryptocurrency operation in which he would make a profit from fees charged to a peer-to-peer network and from exchange transactions, and informed the victim that the operation “isn’t very risky to me.” Kim obtained over a million dollars’ worth of funds from this victim over the course of the scheme, the majority of which went to offshore sports betting sites.
In November 2017, Kim contacted another victim by email and said he was looking for cryptocurrency for a trading strategy. Kim assured that the victim that “my activities are fairly low risk.” In total, Kim obtained over $500,000 in funds from this victim, most of which he sent to offshore sports betting sites.
In an agreement dated Jan. 1, 2018, Kim set out the terms of a similar investment with a third victim. The agreement called for the victim to provide cryptocurrency valued at approximately $200,000 at the time. The same day, Kim converted more than half of the funds to bitcoin and, in the following days, transferred substantially all the converted cryptocurrency to his account with an offshore casino. Kim went on to obtain over $4 million in funds from this victim.
Kim defrauded numerous other victims, including nine who testified at trial, until at least July 2020, when he was charged by federal complaint.
United States Attorney Craig H. Missakian and FBI Special Agent in Charge Sanjay Virmani made the announcement.
In addition to the prison term, Judge Breyer sentenced Kim to a three-year period of supervised release. A hearing will be scheduled to determine issues regarding restitution.
Assistant U.S. Attorneys Noah Stern and Maya Karwande are prosecuting the case with the assistance of Veronica Hernandez, Maryam Beros, Andy Ding, Lynette Dixon, and Christine Tian. The prosecution is the result of an investigation by the FBI and IRS Criminal Investigation.
South Bay CEO Sentenced for Employment Tax CrimesRead the Press Release
SAN JOSE – A California man was sentenced today to a year and a day in prison for a decade-long scheme to avoid paying over employment taxes to the IRS.
The following is according to court documents and statements made in court: John Comeau, of Santa Clara, was the CEO of Vivid Inc., a company that provided metal coating services to industrial customers in California and elsewhere. Vivid Inc. employed as many as 40 employees at any given time.
Comeau was responsible for withholding Social Security, Medicare, and federal income taxes from the wages of Vivid’s employees and then paying those funds over to the IRS each quarter. The timely payment of these taxes is critical to the functioning of the U.S. government, because, for example, they are the primary source of funding for Social Security and Medicare. The federal income taxes that are withheld from employees’ wages also account for a significant portion of all federal income taxes collected each year.
From the first quarter of 2010 through the fourth quarter of 2019, Vivid Inc. paid its employee a total of over $8.8 million in wages. During this period, Comeau collected and withheld taxes from the wages of Vivid’s employees but did not pay over all the taxes owed to the IRS. He also caused false quarterly employment tax returns to be filed with the IRS, underreporting Vivid’s wages by more than $5 million.
To conceal his scheme, Comeau caused accurate tax forms to be issued to certain employees. These tax forms reported higher wages than the amounts Vivid had reported to the IRS. Comeau also issued tax forms, such as Wage and Tax Statement, Form W-2, to other Vivid employees that underreported their wages. When an employer underreports wages paid to their employees, it may negatively impact those employees’ Social Security benefits, as those forms are used by the Social Security Administration to compute benefits owed to an employee.
Instead of paying his taxes, Comeau used some of the funds to maintain a comfortable lifestyle that included a $3 million home and luxury cars.
In total, Comeau caused a tax loss to the United States of more than $1.1 million.
In addition to the prison sentence, U.S. District Judge P. Casey Pitts ordered Comeau to serve three years of supervised release and pay $1,153,948 in restitution to the IRS.
United States Attorney Craig H. Missakian, Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division, and IRS Criminal Investigation (IRS-CI) Oakland Field Office Special Agent in Charge Linda Nguyen made the announcement.
IRS-CI investigated the case.
Assistant U.S. Attorney Ilham Hosseini and Trial Attorney Mahana Weidler of the Tax Division prosecuted the case.
California Bay Area CEO Sentenced for Employment Tax CrimesRead the Press Release
A California man was sentenced today to a year and a day in prison for a decade-long scheme to avoid paying over employment taxes to the IRS.
The following is according to court documents and statements made in court: John Comeau, of Santa Clara, was the CEO of Vivid Inc., a company that provided metal coating services to industrial customers in California and elsewhere. Vivid Inc. employed as many as 40 employees at any given time.
Comeau was responsible for withholding Social Security, Medicare, and federal income taxes from the wages of Vivid’s employees and then paying those funds over to the IRS each quarter. The timely payment of these taxes is critical to the functioning of the U.S. government, because, for example, they are the primary source of funding for Social Security and Medicare. The federal income taxes that are withheld from employees’ wages also account for a significant portion of all federal income taxes collected each year.
From the first quarter of 2010 through the fourth quarter of 2019, Vivid Inc. paid its employee a total of over $8.8 million in wages. During this period, Comeau collected and withheld taxes from the wages of Vivid’s employees but did not pay over all the taxes owed to the IRS. He also caused false quarterly employment tax returns to be filed with the IRS, underreporting Vivid’s wages by more than $5 million.
To conceal his scheme, Comeau caused accurate tax forms to be issued to certain employees. These tax forms reported higher wages than the amounts Vivid had reported to the IRS. Comeau also issued tax forms, such as Wage and Tax Statement, Form W-2, to other Vivid employees that underreported their wages. When an employer underreports wages paid to their employees, it may negatively impact those employees’ Social Security benefits, as those forms are used by the Social Security Administration to compute benefits owed to an employee.
Instead of paying his taxes, Comeau used some of the funds to maintain a comfortable lifestyle that included a $3 million home and luxury cars.
In total, Comeau caused a tax loss to the United States of more than $1.1 million.
In addition to his prison sentence, U.S. District Judge P. Casey Pitts for the Northern District of California ordered Comeau to serve three years of supervised release and pay $1,153,948 in restitution to the IRS.
Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and U.S. Attorney Craig H. Missakian for the Northern District of California made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorney Mahana Weidler of the Tax Division and Assistant U.S. Attorney Ilham Hosseini for the Northern District of California prosecuted the case.
Justice Department Charges Two Individuals with Acting as Agents of the PRC GovernmentRead the Press Release
Two nationals of the People’s Republic of China (PRC) made their initial appearances in federal court in Portland, Oregon, and Houston, Texas, yesterday to face charges issued out of the Northern District of California for acting as agents of the Government of the PRC without prior notification to the Attorney General. The defendants, Yuance Chen, 38, a PRC national and legal permanent resident who resides in Happy Valley, Oregon, and Liren “Ryan” Lai, 39, a PRC national who traveled from the PRC to Houston, Texas, on a tourist visa in April 2025, were arrested Friday on a criminal complaint charging them with overseeing and carrying out various clandestine intelligence taskings in the United States on behalf of the PRC Government’s principal foreign intelligence service, the Ministry of State Security (MSS). These activities included facilitating a “dead drop” payment of cash for information relating to the national security of the United States previously provided to the MSS, gathering intelligence about U.S. Navy service members and bases, and assisting with efforts to recruit other individuals from within the U.S. military as potential MSS assets.
Chen and Lai were arrested on June 27, 2025, by the FBI in Happy Valley, Oregon, and Houston Texas, as part of a coordinated counterintelligence and law enforcement operation across multiple states.
“This case underscores the Chinese government’s sustained and aggressive effort to infiltrate our military and undermine our national security from within,” said Attorney General Pamela Bondi. “The Justice Department will not stand by while hostile nations embed spies in our country – we will expose foreign operatives, hold their agents to account, and protect the American people from covert threats to our national security.”
“The FBI arrested two Chinese nationals who were allegedly attempting to recruit U.S. military service members on behalf of the PRC,” said FBI Director Kash Patel. “The Chinese Communist Party thought they were getting away with their scheme to operate on U.S. soil, utilizing spy craft, like dead drops, to pay their sources. This case was a complex, coordinated effort and is an example of outstanding counterintelligence work done by FBI San Francisco, Portland, Houston, San Diego, and the Counterintelligence Division. The FBI will continue to vigilantly defend the homeland from China’s pervasive attempts to infiltrate our borders.”
“Adverse foreign intelligence services like the PRC’s Ministry of State Security dedicate years to recruiting individuals and cultivating them as intelligence assets to do their bidding within the United States,” said Assistant Attorney General for National Security John A. Eisenberg. “Under my leadership, the National Security Division will continue to defend our nation and neutralize our adversaries’ clandestine spy networks.”
“These charges reflect the breadth of the efforts by our foreign adversaries to target the United States — this time by conducting illegal intelligence-gathering operations aimed at our national security information and military service members,” said U.S. Attorney Craig H. Missakian for the Northern District of California. “My office and the FBI remain ever vigilant in guarding against these threats to the United States. We will continue to undertake counterespionage investigations and prosecutions, no matter how complex and sensitive, to disrupt attempts to weaken our national security.”
“NCIS and the Department of the Navy take the foreign intelligence gathering threat very seriously, as the PRC has for years attempted through various means to recruit U.S. service members as intelligence assets due to their access to sensitive military information,” said Director Omar Lopez of the Naval Criminal Investigative Service (NCIS). “NCIS and the Department of the Navy (DON) remain committed to working together to root out any attempts to compromise the DON’s critical warfighting and shipbuilding capabilities.”
As alleged in the criminal complaint unsealed yesterday, the PRC Government conducts intelligence activities against the United States through multiple arms, including the MSS. The MSS handles civilian intelligence collection for the PRC and is responsible for counterintelligence and foreign intelligence, as well as political security. The MSS and its bureaus seek to obtain information on political, economic, and security policies that might affect the PRC, along with military, scientific, and technical information of value to the PRC. The MSS and its bureaus are tasked with conducting clandestine and covert human source operations, of which the United States is a principal target.
As alleged in the criminal complaint, Lai recruited Chen to work on behalf of the MSS in or about 2021. While in Guangzhou, China, in January 2022, Lai and Chen worked together to facilitate a dead-drop payment of at least $10,000 on behalf of the MSS, working with other individuals located in the United States to leave a backpack with the cash at a day-use locker at a recreational facility located in Livermore, California.
Following the January 2022 dead drop, Lai and Chen continued to work on behalf of the MSS, including by attempting to help identify potential assets for MSS recruitment within the ranks of the U.S. Navy. For example, in 2022 and 2023, Chen was tasked by Lai to visit a U.S. Naval installation in Washington State and a U.S. Navy recruitment center in San Gabriel, California. While in the recruitment center, Chen obtained personal information for recruits that he appears to have transmitted to an MSS intelligence officer in China. The complaint also alleges that Chen received instruction from the MSS on how to engage and recruit future Sailors and methods for minimizing his risk of exposure. Eventually, Chen began contacting a Navy employee over social media and provided information about the employee to the MSS. The complaint alleges that Chen traveled to Guangzhou and met with MSS intelligence officers in April 2024 and March 2025 in order to discuss compensation and specific taskings.
The complaint also alleges that Lai traveled to Houston, Texas, in April 2025, claiming that the purpose of his visit was related to his business as an online retail seller, and that he would be staying in the Houston area for two weeks. However, on May 9, 2025 – more than four weeks after his arrival in the United States – Lai traveled by car with a companion from Houston to Southern California, via New Mexico and Tucson, Arizona, before returning to Texas, on May 15, 2025.
Chen and Lai are charged with violating Title 18, United States Code, Section 951, which makes it a crime for a person to operate or agree to operate within the United States as an agent of a foreign government without notification to the Attorney General of the United States. If convicted, the defendants face a fine of up to $250,000 and a term of imprisonment of up to 10 years.
The FBI San Francisco Field Office is leading the investigation, with valuable assistance provided by the FBI Portland, Houston, and San Diego Field Offices. NCIS also provided valuable assistance during the operation.
The National Security and Special Prosecutions Section of the U.S. Attorney’s Office for the Northern District of California and the National Security Division’s Counterintelligence and Export Control Section are in charge of the prosecution. Significant operational support and assistance is also being provided by the District of Oregon, the Southern District of Texas, and the Southern District of California.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Justice Department Charges Two Individuals with Acting as Agents of the PRC GovernmentRead the Press Release
SAN FRANCISCO — Two nationals of the People’s Republic of China (PRC) made their initial appearances in federal court in Portland, Oregon, and Houston, Texas, yesterday to face charges issued out of the Northern District of California for acting as agents of the Government of the PRC without prior notification to the Attorney General. The defendants, Yuance Chen, 38, a PRC national and legal permanent resident who resides in Happy Valley, Oregon, and Liren “Ryan” Lai, 39, a PRC national who traveled from the PRC to Houston, Texas, on a tourist visa in April 2025, were arrested Friday on a criminal complaint charging them with overseeing and carrying out various clandestine intelligence taskings in the United States on behalf of the PRC Government’s principal foreign intelligence service, the Ministry of State Security (MSS). These activities included facilitating a “dead drop” payment of cash for information relating to the national security of the United States previously provided to the MSS, gathering intelligence about U.S. Navy service members and bases, and assisting with efforts to recruit other individuals from within the U.S. military as potential MSS assets.
Chen and Lai were arrested on June 27, 2025, by the FBI in Happy Valley, Oregon, and Houston Texas, as part of a coordinated counterintelligence and law enforcement operation across multiple states.
“This case underscores the Chinese government’s sustained and aggressive effort to infiltrate our military and undermine our national security from within,” said Attorney General Pamela Bondi. “The Justice Department will not stand by while hostile nations embed spies in our country – we will expose foreign operatives, hold their agents to account, and protect the American people from covert threats to our national security.”
“These charges reflect the breadth of the efforts by our foreign adversaries to target the United States — this time by conducting illegal intelligence-gathering operations aimed at our national security information and military service members,” said U.S. Attorney Craig H. Missakian for the Northern District of California. “My office and the FBI remain ever vigilant in guarding against these threats to the United States. We will continue to undertake counterespionage investigations and prosecutions, no matter how complex and sensitive, to disrupt attempts to weaken our national security.”
“The FBI arrested two Chinese nationals who were allegedly attempting to recruit U.S. military service members on behalf of the PRC,” said FBI Director Kash Patel. “The Chinese Communist Party thought they were getting away with their scheme to operate on U.S. soil, utilizing spy craft, like dead drops, to pay their sources. This case was a complex, coordinated effort and is an example of outstanding counterintelligence work done by FBI San Francisco, Portland, Houston, San Diego, and the Counterintelligence Division. The FBI will continue to vigilantly defend the homeland from China’s pervasive attempts to infiltrate our borders.”
“This case represents a significant disruption of a covert operation directed by the PRC's Ministry of State Security to penetrate and compromise U.S. national security from within our own borders. These individuals allegedly carried out clandestine taskings on behalf of a hostile foreign intelligence service, targeting U.S. military personnel and installations, and attempting to recruit others to do the same. Their arrest is the result of an extensive, complex counterintelligence investigation led by the FBI's San Francisco Division and underscores the FBI’s unwavering commitment to detecting, exposing, and neutralizing espionage threats from the PRC and other adversaries. The FBI will not tolerate efforts by foreign intelligence services to operate inside the United States and we will continue to use every lawful tool to defend our country's security and sovereignty,” said FBI San Francisco Field Office Special Agent in Charge Sanjay Virmani.
“Adverse foreign intelligence services like the PRC’s Ministry of State Security dedicate years to recruiting individuals and cultivating them as intelligence assets to do their bidding within the United States,” said Assistant Attorney General for National Security John A. Eisenberg. “Under my leadership, the National Security Division will continue to defend our nation and neutralize our adversaries’ clandestine spy networks.”
As alleged in the criminal complaint unsealed yesterday, the PRC Government conducts intelligence activities against the United States through multiple arms, including the MSS. The MSS handles civilian intelligence collection for the PRC and is responsible for counterintelligence and foreign intelligence, as well as political security. The MSS and its bureaus seek to obtain information on political, economic, and security policies that might affect the PRC, along with military, scientific, and technical information of value to the PRC. The MSS and its bureaus are tasked with conducting clandestine and covert human source operations, of which the United States is a principal target.
As alleged in the criminal complaint, Lai recruited Chen to work on behalf of the MSS in or about 2021. While in Guangzhou, China, in January 2022, Lai and Chen worked together to facilitate a dead-drop payment of at least $10,000 on behalf of the MSS, working with other individuals located in the United States to leave a backpack with the cash at a day-use locker at a recreational facility located in Livermore, California.
Following the January 2022 dead drop, Lai and Chen continued to work on behalf of the MSS, including to help identify potential assets for MSS recruitment within the ranks of the U.S. Navy. For example, beginning in 2022, Chen was tasked by Lai and other agents of the MSS to contact a Navy employee over social media, and then later, in 2025, arranged for a tour with the employee of the USS Abraham Lincoln and provided information about the employee to the MSS. In 2022 and 2023, Chen was tasked to visit a U.S. Naval installation in Washington State and a U.S. Navy recruitment center in San Gabriel, California. While in the recruitment center, Chen obtained photographs of a bulletin board containing the names, programs, and hometowns of recent Navy recruits, the majority of whom listed their hometown as “China,” which he appears to have transmitted to an MSS intelligence officer in China. The complaint also alleges that Chen received instruction from the MSS on what to say to potential recruits regarding potential payment that could be made by the MSS, preferred Naval job assignments for potential recruits, and methods for minimizing Chen’s risk of exposure. The complaint alleges that in 2023, Lai flew to the United States from the PRC and provided Chen with a cellphone that Chen then used to communicate with the MSS. The complaint also alleges that Chen traveled to Guangzhou and met with MSS intelligence officers in April 2024 and March 2025 in order to discuss compensation and specific taskings.
The complaint also alleges that Lai traveled to Houston, Texas, in April 2025, claiming that the purpose of his visit was related to his business as an online retail seller, and that he would be staying in the Houston area for two weeks. However, on May 9, 2025 – more than four weeks after his arrival in the United States – Lai traveled by car with a companion from Houston to Southern California, via New Mexico and Tucson, Arizona, before returning to Texas, on May 15, 2025.
Chen and Lai are charged with violating Title 18, United States Code, Section 951, which makes it a crime for a person to operate or agree to operate within the United States as an agent of a foreign government without notification to the Attorney General of the United States. If convicted, the defendants face a fine of up to $250,000 and a term of imprisonment of up to 10 years.
The FBI San Francisco Field Office is leading the investigation, with valuable assistance provided by the FBI Portland, Houston, and San Diego Field Offices. The Naval Criminal Investigative Service (NCIS) also provided valuable assistance during the operation.
The National Security and Special Prosecutions Section of the U.S. Attorney’s Office for the Northern District of California and the National Security Division’s Counterintelligence and Export Control Section are in charge of the prosecution. Significant operational support and assistance is also being provided by the District of Oregon, the Southern District of Texas, and the Southern District of California.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former San Francisco Bank Employee Charged with Embezzling from Customer Accounts and Access Device FraudRead the Press Release
SAN FRANCISCO – A federal grand jury has indicted Sixto Christopher Porras with embezzlement of bank funds and access device fraud in connection with the alleged theft of funds from accounts belonging to two retail bank customers while he was employed with a bank in San Francisco. Porras made an initial appearance in federal district court this morning.
According to the indictment filed June 17, 2025, and unsealed today, Porras, 32, of San Francisco, was an associate banker at a San Francisco branch of a large national bank. In or about August 2023, a retail bank customer visited the branch to complete a wire transfer. As the transfer was processed, Porras obtained from the customer the security personal identification number associated with the customer’s debit card. Unbeknownst to the customer, Porras kept the customer’s debit card. Porras allegedly proceeded to use the debit card to embezzle approximately $100,000 from the customer’s account.
In or about September 2023, another retail bank customer visited the branch to address a fraudulent charge. As Porras assisted the customer, he obtained the security PIN associated with the customer’s debit card. Porras then caused the customer’s debit card to be reissued and sent to Porras’ San Francisco residence. Porras allegedly proceeded to use the debit card to embezzle approximately $340,000 from the customer’s accounts.
United States Attorney Craig H. Missakian and IRS Criminal Investigation (IRS-CI) Oakland Field Office Special Agent in Charge Linda Nguyen made the announcement.
Porras was released on bond. He is next scheduled to appear in district court on July 14, 2025, for identification of counsel before U.S. Magistrate Judge Peter Kang.
Porras is charged with one count of embezzlement of bank funds in violation of 18 U.S.C. § 656 and one count of access device fraud in violation of 18 U.S.C. § 1029(a)(5). 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 30 years in prison and a fine of $1 million for the embezzlement charge, and 15 years in prison and a fine of $250,000 for the access device fraud charge. 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 Ryan Rezaei is prosecuting the case with the assistance of Lynette Dixon. The prosecution is the result of an investigation by IRS-CI.
Five Defendants Charged for Their Roles in Health Care Fraud and Illegal Drug Diversion SchemesRead the Press Release
Today, United States Attorney Craig H. Missakian announced criminal charges against five defendants in connection with allegations that they defrauded Medicare and other federal health care benefit programs and illegally diverted drugs. The charges filed in federal court are part of the Department of Justice’s 2025 National Health Care Fraud Takedown. The charges stem from various schemes, including a doctor who submitted unnecessary claims for medical equipment, individuals who ran or participated in fraud schemes to obtain money from federally funded health insurance programs through false claims, and a nurse who diverted pain medication for his own use.
“Fraud and abuse in our health care system all too often result in harm to the elderly and sick and a loss to the American taxpayer. The five cases announced today reflect the far-reaching impact of health care fraud and my office’s commitment to prosecuting schemes that target these vital programs,” said United States Attorney Craig H. Missakian. “We will hold accountable any person who chooses greed over patient well-being.”
“This record-setting Health Care Fraud Takedown delivers justice to criminal actors who prey upon our most vulnerable citizens and steal from hardworking American taxpayers,” said Attorney General Pamela Bondi. “Make no mistake – this administration will not tolerate criminals who line their pockets with taxpayer dollars while endangering the health and safety of our communities.”
The charges announced today by U.S. Attorney Missakian are part of a strategically coordinated, nationwide law enforcement action that resulted in criminal charges against 324 defendants for their alleged participation in health care fraud and illegal drug diversion schemes that involved the submission of over $14.6 billion in alleged false billings and over 15 million pills of illegally diverted controlled substances. The defendants allegedly defrauded programs entrusted for the care of the elderly and disabled to line their own pockets, and the Government, in connection with the Takedown, seized over $245 million in cash, luxury vehicles, and other assets.
The following individuals were charged in the Northern District of California:
- Vincent Thayer, 41, of San Jose, California, was charged by indictment with wire fraud, health care fraud, and aggravated identity theft in connection with a $68 million medical office visit scheme. As alleged in the indictment, Thayer owned Patient Payment Agent, which did business as My Community Testing, and was a purported COVID-19 testing money. Through this company, Thayer caused the submission of approximately $68,205,233 in false and fraudulent claims to Medicare, Medicaid, and the HRSA COVID-19 Uninsured Program, of which approximately $11,751,819 was paid, for office visits purportedly performed by medical professionals but that never occurred. Thayer also misappropriated the identity of a doctor to enroll his company in Medicare and Medi-Cal (California’s Medicaid program). The case is being prosecuted by Trial Attorneys Matthew Belz of the Los Angeles Strike Force and Lauren Randell of the National Rapid Response Strike Force and Assistant U.S. Attorney Ryan Rezaei of the Northern District of California.
- Sevendik Huseynov, 47, a national of Azerbaijan currently residing in Sunnyvale, California, and the owner and CEO of Vonyes, Inc. in Sunnyvale, California, was charged by criminal complaint and arrested on June 26, 2025. The complaint alleges that the defendant committed health care fraud through a scheme to submit fraudulent claims to Medicare Advantage Organizations (“MAOs”) on behalf of unsuspecting beneficiaries for durable medical equipment (“DME”). The complaint alleges that Huseynov, from January 15, 2025, through June 16, 2025, through his entity Vonyes, submitted more than 7,200 claims to at least eight separate MAOs offering Medicare Part C benefit plans, and that those claims sought reimbursement of more than $137 million for DME such as back braces, knee braces, and wrist braces. The complaint alleges that certain of the purported beneficiaries contacted by law enforcement were not aware of the DME prescriptions and did not need the prescribed DME. The complaint also alleges that a healthcare provider listed as a referring physician on many billing claims had never prescribed DME supplied by Vonyes and that the patients listed on those claims were not his patients. The complaint also alleges that a review of bank records for Vonyes and Huseynov did not show any purchases of actual DME. At least $761,037.63 was paid to Vonyes, into accounts controlled solely by Huseynov, from MAOs during the scheme. The case is being prosecuted by Assistant U.S. Attorney Maya Karwande, of the U.S. Attorney’s Office for the Northern District of California.
- Clinton Johnson Christian, 38, of Fairfield, California, was charged by indictment with tampering with consumer products and intentionally obtaining controlled substances through deception and subterfuge in connection with diverting a controlled substance for his personal use. As alleged in the indictment, Christian accessed a machine that held hydromorphone by falsely stating a patient needed the controlled substance, removed a vial of hydromorphone, extracted the hydromorphone and re-filled the vial with saline before replacing the vial and cancelling the patient’s order. The case is being prosecuted by Assistant U.S. Attorney Jonathan U. Lee of the U.S. Attorney’s Office for the Northern District of California.
- Dr. Yasmin Pirani, 46, of British Columbia, Canada, was charged by indictment with health care fraud and false statements related to health care matters in connection with a $35.2 million telemedicine fraud scheme. As alleged in the indictment, in exchange for payments from a telemedicine company, Dr. Pirani signed prescriptions for DME that was medically unnecessary, for Medicare beneficiaries with whom she lacked a pre-existing doctor-patient relationship, without a physical examination, and without any conversation with the beneficiary or based solely on a short telephonic conversation. Dr. Pirani falsely diagnosed Medicare beneficiaries with certain conditions to support the DME prescriptions and falsely attested that the information in medical records was accurate, concealing that she did not have any interaction with the Medicare beneficiaries or that the interaction was brief and telephonic. The telemedicine company solicited illegal kickbacks and bribes from DME suppliers in exchange for DME prescriptions signed by Dr. Pirani, and the DME suppliers billed Medicare approximately $32.5 million based on Dr. Pirani’s prescriptions. The case is being prosecuted by Trial Attorney S. Babu Kaza of the Midwest Strike Force and Assistant U.S. Attorney Alexandra Shepard of the Northern District of California.
- Patrick Omeife, 33, of Ghana, was charged by indictment with two counts of concealment money laundering in connection with a scheme to launder approximately $33,765 that was fraudulently disbursed from a federal COVID-19 relief program and intended for an optometrist whose identity had been stolen. As alleged in the indictment, Omeife, falsely purporting to be a covert agent of the U.S. government, began an online romantic relationship with a woman and requested that the woman use her bank account to receive his salary. This woman provided Omeife with her bank account information, and her account was used in a September 2020 fraudulent application for funds from the COVID-19 Provider Relief Fund (“PRF”). The PRF provided funds to health care providers that were financially impacted by COVID-19. Based on the fraudulent September 2020 application, the PRF disbursed approximately $33,765 intended for the optometrist into the woman’s bank account. At Omeife’s direction, the woman converted the funds to Bitcoin cryptocurrency and transferred the Bitcoin to Omeife’s cryptocurrency account. Omeife repeatedly provided identifying information to his cryptocurrency exchange, to include his Republic of Ghana driver’s license and “selfie” photographs of his face and bare upper body, depicting a distinctive tattoo on his chest of the Bitcoin currency symbol. Numerous additional fraudulent PRF applications connected to the application made in the optometrist’s name resulted in at least $1.6 million of fraudulent disbursement of funds related to COVID-19 relief programs. The case is being prosecuted by Trial Attorney Babu Kaza of the Midwest Strike Force and Assistant U.S. Attorney Kristina Green of the Northern District of California.
“Healthcare fraud is not a victimless crime. It drains critical resources from healthcare programs, undermines public trust, and ultimately steals from American taxpayers. The FBI is committed to rooting out health care fraud in all its forms, working alongside our law enforcement partners to hold perpetrators accountable and protect the integrity of our nation's healthcare system,” said FBI Special Agent in Charge Sanjay Virmani.
“FDA is fully committed to the vigorous criminal prosecution of individuals who threaten the safety of U.S. consumers,” said Special Agent in Charge Robert Iwanicki, FDA Office of Criminal Investigations Los Angeles Field Office. “We remain committed to working with our law enforcement partners to protect the public health and bring to justice those who compromise patients’ health.”
In addition to the U.S. Attorney’s Office for the Northern District of California, the Health Care Fraud Unit’s National Rapid Response, Florida, Gulf Coast, Los Angeles, Midwest, New England, Northeast, and Texas Strike Forces; U.S. Attorneys’ Offices from around the country; and State Attorney Generals’ Offices for Arizona, California, Georgia, Illinois, Indiana, Louisiana, Massachusetts, Missouri, New York, Ohio, and Pennsylvania are prosecuting the cases in the National Health Care Fraud Takedown, with assistance from the Health Care Fraud Unit’s Data Analytics Team. Descriptions of each case involved in today’s enforcement action are available here.
The Northern District of California, in particular, worked with the Department’s Criminal Division and Health Care Fraud Unit and the following law enforcement organizations to investigate and prosecute the cases filed during the enforcement period: the U.S. Department of Health and Human Services Office of Inspector General; the Federal Bureau of Investigation, and the FDA Office of Criminal Investigations.
A complaint, information, or indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Drug Dealer Sentenced to Six Years in Federal Prison for Conspiracy to Distribute Methamphetamine and Heroin, Money LaunderingRead the Press Release
SAN FRANCISCO – Jonathan Ponce was sentenced yesterday to a total of 72 months in federal prison for conspiracy to distribute and possess with intent to distribute methamphetamine and heroin, international money laundering, and money laundering conspiracy. Senior U.S. District Judge Edward M. Chen handed down the sentence.
Ponce, 34, a U.S. citizen who previously resided in Mexico and in the South Bay, was initially charged by complaint on Aug. 21, 2019, and by indictment on Aug. 29, 2019, on the drug charges. He was separately indicted by a federal grand jury on June 24, 2021, on the money laundering charges.
On Nov. 14, 2024, Ponce pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute heroin and methamphetamine, five counts of international money laundering, and one count of money laundering conspiracy. According to court documents and proceedings, Ponce sold or arranged for others to sell on his behalf approximately 14 pounds of methamphetamine and 1.6 pound of heroin over the course of 13 drug deals. He also laundered over $30,000 in funds obtained from illegal activity by sending the proceeds to Mexico via money services businesses using false information.
Ponce has remained in custody since his arrest and was remanded into custody following sentencing. In addition to the term of imprisonment, Judge Chen ordered Ponce to serve five 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.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Assistant U.S. Attorney Kevin Yeh prosecuted the case. The prosecution is the result of an investigation by the DEA.
Tenderloin Drug Dealer Sentenced to Five Years in Federal Prison for Fentanyl Trafficking, Supervised Release ViolationRead the Press Release
SAN FRANCISCO – Henry Alvarado was sentenced today to 60 months in federal prison for trafficking fentanyl in the Tenderloin neighborhood of San Francisco while on federal supervised release. Alvarado was also sentenced to 12 months and one day for violating the terms of his supervised release, to run concurrently with his 60-month sentence. Senior U.S. District Judge William H. Orrick handed down the sentence.
Alvarado, 34, a national of Honduras, was charged by criminal complaint on April 17, 2023, and indicted by a federal grand jury on May 2, 2023. On March 10, 2025, Alvarado pleaded guilty to two counts of possession with intent to distribute and distribution of 40 grams and more of a mixture and substance containing fentanyl. According to the plea agreement, on multiple occasions in March 2023, Alvarado sold fentanyl and methamphetamine in the Tenderloin neighborhood of San Francisco, selling in total 173 grams of methamphetamine and 110 grams of fentanyl. At the time of his offense, Alvarado was on federal supervised release from a prior federal drug trafficking conviction.
United States Attorney Craig H. Missakian and DEA Special Agent in Charge Bob P. Beris made the announcement.
In addition to the prison term, Judge Orrick also sentenced the defendant to a four-year period of supervised release and a $200 fine. The defendant has been in federal custody since April 19, 2023.
Assistant U.S. Attorneys Emily R. Dahlke and Michael G. Lagrama prosecuted the case with the assistance of Marina Ponomarchuk and Helen Yee. The prosecution is the result of an investigation by the DEA and the San Francisco Police Department.
Ninth and Tenth FCI Dublin Correctional Officers Charged with Sexual Abuse of Female InmatesRead the Press Release
OAKLAND – Two former correctional officers at the Federal Correctional Institution in Dublin, Calif., Jeffrey Wilson and Lawrence Gacad, were charged yesterday by information with sexual abuse of female inmates. Wilson and Gacad are the ninth and tenth correctional officers to be charged in connection with the wide-ranging investigation into sexual abuse of inmates at the federal prison.
Wilson, 34, is charged with five counts of sexual abuse of a ward related to his alleged abuse of an FCI Dublin inmate, C.S. The information alleges that Wilson engaged in sexual abuse of the victim on multiple occasions between March 14, 2022, and Aug. 16, 2022. The acts allegedly occurred in a medical room at FCI Dublin. Wilson is also charged with falsely telling federal agents that he had never had sexual contact with C.S. and that he had never given her contraband while she was an inmate at FCI Dublin.
Gacad, 33, is charged with one count of abusive sexual contact related to his alleged abuse of an FCI Dublin inmate, S.L., between March 1, 2022, and June 14, 2022.
United States Attorney Craig H. Missakian, Department of Justice Office of the Inspector General (DOJ OIG) Acting Special Agent in Charge Jeremy Hunt, and FBI Special Agent in Charge Sanjay Virmani made the announcement.
As part of the Department of Justice’s ongoing investigation into FCI Dublin, 10 FCI Dublin correctional officers have been charged with crimes related to the sexual abuse of the female prisoners at the facility. The status of these cases is below:
Defendant
Case NumberStatusWarden Ray J. Garcia4:21-cr-00429-YGRConvicted on all counts by jury on Dec. 8, 2022; sentenced to 70 months in prisonCO John Bellhouse4:22-cr-00066-YGRConvicted on all counts by jury on June 5, 2023; sentenced to 63 months in prisonChaplain James Highhouse4:22-cr-00016-HSGPleaded guilty on Feb. 24, 2022; sentenced to 84 months in prisonCO Enrique Chavez4:22-cr-00104-YGRPleaded guilty on Oct. 27, 2022; sentenced to 20 months in prisonCO Ross Klinger4:22-cr-00031-YGRPleaded guilty on Feb. 10, 2022; sentenced to one year of home confinementCO Andrew Jones4:23-cr-000212-YGRPleaded guilty on Aug.17, 2023; sentenced to 96 months in prisonCO Nakie Nunley4:23-cr-000213-YGRPleaded guilty on Sept. 5, 2023; sentenced to 72 months in prisonCO Darrell Smith (a/k/a “Dirty Dick Smith”)4:23-cr-00110-YGRIndicted on April 13, 2023; trial scheduled for Sept. 2, 2025CO Jeffrey Wilson4:25-cr-00180Information filed on June 25, 2025CO Lawrence Gacad4:25-cr-00181Information filed on June 25, 2025An information merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Wilson faces a maximum sentence of 15 years in prison and a fine of $250,000 for each count of sexual abuse of a ward in violation of 18 U.S.C. § 2243(b) and eight years in prison and a $250,000 fine for the count of false statements to a government agency in violation of 18 U.S.C. § 1001(a)(2). Gacad faces a maximum sentence of two years in prison and a $250,000 fine for the count of abusive sexual contact in violation of 18 U.S.C. § 2244(a)(4). 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 Andrew Paulson, Alethea Sargent, Sailaja Paidipaty, and Molly Priedeman are prosecuting these cases with the assistance of Veronica Hernandez and Amala James. The prosecutions are the result of an investigation by the DOJ OIG and the FBI.
Honduran National Sentenced to Three Years in Federal Prison for Illegal Reentry and Controlled Substance OffensesRead the Press Release
SAN FRANCISCO – Erlan Eduardo Cruz-Acosta was sentenced today to 36 months in federal prison for illegal reentry following removal, distribution of methamphetamine, and possession with intent to distribute fentanyl. Senior U.S. District Judge William H. Orrick handed down the sentence.
Cruz-Acosta, 41, a national of Honduras, was indicted by federal grand juries on March 30, 2022, and Feb. 8, 2024. On Nov. 7, 2024, Cruz-Acosta pleaded guilty to one count each of illegal reentry following removal, distribution of methamphetamine, and possession with intent to distribute fentanyl.
According to the plea agreement, Cruz-Acosta was convicted in 2006 of taking indecent liberties with a child in Fairfax County, Virginia, for which he was sentenced to two years in prison and then later sentenced to three months for violating his probation by absconding. In 2008, Cruz-Acosta was deported from the United States. He returned to the United States that same year. In 2009, Cruz-Acosta was convicted in San Francisco Superior Court of selling a controlled substance and sentenced to 42 days in custody. He was convicted in federal district court of illegal reentry following deportation in violation of 8 U.S.C. § 1326, and was sentenced in April 2009 to 18 months in federal prison. Thereafter, he was again deported from the United States in June 2010. Cruz-Acosta again illegally entered the United States in March 2014. Two months later, in May 2014, he was convicted in federal district court in Arizona of illegal reentry of a removed alien, sentenced, and deported a third time.
Sometime after his removal in July 2016, Cruz-Acosta reentered the United States and was found in the United States on or about June 22, 2021.
Cruz-Acosta also admitted that in November 2023, he knowingly distributed 7.8 gross grams of methamphetamine in the Tenderloin district of San Francisco. He further admitted to possessing approximately 29.7 grams gross weight of a substance containing fentanyl, 26.4 grams gross weight of cocaine base, 8.9 grams gross weight of cocaine salt, and 4.9 grams gross weight of heroin, along with various denominations of U.S. currency, a digital scale, and a machete.
United States Attorney Craig H. Missakian, DEA Special Agent in Charge Bob P. Beris, and ICE Field Office Director Sergio Albarran made the announcement.
In addition to the prison term, Judge Orrick also sentenced the defendant to a three-year period of supervised release and ordered him to forfeit $358 in U.S. currency, a digital scale, a machete, and a machete sheath. The defendant was immediately remanded into custody.
Special Assistant U.S. Attorneys Christine Chen and Eli J. Cohen and Assistant U.S. Attorney Alethea Sargent prosecuted the case with the assistance of Alycee Lane. The prosecution is the result of investigations by the DEA and ICE.
Founder and Former CEO of Artificial Intelligence Start-Up SKAEL Pleads Guilty to Securities Fraud and Wire FraudRead the Press Release
SAN FRANCISCO – Baba Nadimpalli, the founder and former Chief Executive Officer of SKAEL, Inc. (SKAEL), pleaded guilty in federal court yesterday to one count of securities fraud and one count of wire fraud in connection with a scheme to defraud investors by misleading them about the company’s revenue, annual recurring revenue (ARR), and other financial and sales information.
Nadimpalli, 42, a citizen of Australia who previously resided in San Francisco, was indicted by a federal grand jury on Jan. 17, 2024. According to his plea agreement, Nadimpalli founded SKAEL in 2016 and served as its Chief Executive Officer from 2016 until July 2022. SKAEL was a San Francisco-based, software-as-a-service company that provided corporate clients with artificial intelligence and automation software to assist with mundane, time-intensive tasks by building “Digital Employees.” SKAEL earned revenue by charging implementation fees for the building of Digital Employees and subscription fees for their use once built.
From January 2020 until about February 2022, SKAEL raised over $40 million in three rounds of financing. In order to induce prospective and existing investors to invest, Nadimpalli provided false information regarding SKAEL’s customer and sales information, revenue, and ARR. Nadimpalli knew that ARR, which reflected the company’s monthly subscription revenue times 12, was an important metric for investors in considering their investments in SKAEL. In or around 2021, Nadimpalli provided materially false information to investors in advance of their investments in SKAEL, including representing that SKAEL was receiving ARR from certain companies that did not subscribe to its software and services; overstating ARR from certain customers who were SKAEL customers; and representing that customers who had terminated their subscriptions were current customers with ARR.
In or around February 2022, SKAEL raised approximately $30 million in a Series A preferred stock offering that valued SKAEL at approximately $230 million after closing. In connection with the stock offering, Nadimpalli directed the creation of an electronic data room for potential investors that contained (1) a spreadsheet that Nadimpalli maintained that contained materially false information about the company’s ARR and customers; (2) materially false financial statements; and (3) an investor presentation that contained materially false information about the company’s ARR, revenue, and customer adoption.
Nadimpalli further admitted to providing an investor and a financial employee with false bank account information that included purported customer payments that had not actually been deposited.
United States Attorney Craig H. Missakian and FBI Special Agent in Charge Sanjay Virmani made the announcement.
Nadimpalli is scheduled to be sentenced by Senior U.S. District Judge Charles R. Breyer on Sept. 17, 2025. He faces a maximum penalty of 20 years in prison and a $5 million fine for the count of securities fraud in violation of 15 U.S.C. §§ 78j(b) & 78ff and 17 C.F.R. § 240.10b-5, and 20 years in prison and a $250,000 fine for the count of wire fraud in violation of 18 U.S.C. § 1343. 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 Noah Stern and Ilham Hosseini are prosecuting this case with the assistance of Mark DiCenzo and Lynette Dixon. The prosecution is the result of an investigation by the FBI. The U.S. Attorney’s Office and the FBI thank the San Francisco Regional Office of the Securities and Exchange Commission, which also filed a civil enforcement action against Nadimpalli in the Northern District of California.
Former Antioch Police Officer Sentenced to Seven Years in Prison for Civil Rights Violation, Falsification of Records, and Wire Fraud OffensesRead the Press Release
OAKLAND – Former Antioch police officer Morteza Amiri was sentenced today to 84 months in federal prison for violating the civil rights of an individual through excessive force, falsifying records related to that violation, and participating in a scheme to obtain pay raises from the Antioch Police Department for a university degree he paid someone else to obtain. The sentence was handed down by Senior U.S. District Judge Jeffrey S. White, who presided over two trials that resulted in Amiri’s convictions for these crimes.
In August 2024, following a four-day trial, a jury found Amiri, 34, guilty of one count of wire fraud and one count of conspiracy to commit wire fraud in connection with the fraudulently-obtained degree scheme. Thereafter, in March 2025, following 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 remanded to the custody of the U.S. Marshals on March 18, 2025, and has remained in federal custody since then.
“Amiri misused his police dog to inflict unnecessary and excessive force against a victim and cheated his way into a pay raise. These crimes are appalling in themselves, but even more so that they were committed by a police officer. With this sentence, Amiri is now being held to account for his multiple betrayals of the public trust,” said United States Attorney Craig H. Missakian.
“Amiri betrayed the public’s trust, abused his authority, and violated the civil rights of a person he was sworn to protect. His actions undermine the integrity of law enforcement and erode public confidence. Today’s sentence sends a clear message: no badge is a shield from accountability. The FBI remains steadfast in its mission to protect the civil rights of all people and to hold those who abuse their power accountable under the law,” said FBI Special Agent in Charge Sanjay Virmani.
Amiri was previously employed as a police officer with the Antioch Police Department. According to court documents and evidence presented at the trial in March 2025, Amiri, a K-9 handler, deployed his K-9 to bite even when it was not necessary. On July 24, 2019, Amiri pulled over and stopped a bicyclist identified as A.A., who, according to Amiri, did not have his bicycle light on. Amiri approached A.A., punched and took the victim to the ground, and then called for his K-9 to bite the victim. As a result, A.A. sustained injuries. At the time, Amiri was accompanied by a police officer with a neighboring agency as a ride-along, and that officer assisted with the deployment of the K-9. Afterwards, Amiri shared pictures of the victim’s wounds with other Antioch police officers. One officer responded, “Yeah buddy good boy,” referring to the K-9, and “Lol you bit [A.A.].” In response to a question from another officer about what cut the dog’s face, Amiri responded, “that’s a piece of the suspect’s flesh lol.”
Amiri later wrote to the officer who accompanied him on the ride-along, “you got to see [the K-9] in action lol,” and stated that detectives got the victim “a 45 day violation and we are gonna leave it at that so i don’t go to court for the bite. Easy,” referring to the victim going into custody for a parole/probation violation. Amiri then falsified a police report of the incident, stating that one of the reasons he deployed his K-9 was because he was alone, when instead the ride-along police officer was with him at the time and had helped Amiri deploy the K-9.
Separately, the evidence presented at the trial in August 2024 showed that the City of Antioch and City of Pittsburg’s Police Departments offered reimbursements toward higher education tuition and expenses, along with pay raises and other financial incentives upon completion of a degree. Instead of completing higher education coursework on their own, Amiri and his co-conspirators hired someone to complete entire courses on their behalf at an online university to secure a bachelor’s degree in criminal justice. Amiri and his co-conspirators then represented they had taken those courses and earned the degrees from the university when requesting reimbursements and/or financial incentives from their police department employers. They were in turn paid additional financial incentives, calculated as percentages of their salaries, while they remained employed by their police departments.
In addition to the prison term, Judge White also sentenced Amiri to three years of supervised release and ordered Amiri to pay restitution in the amount of $3,180 to victim A.A. and $10,526 to the City of Antioch.
The case is being prosecuted by the National Security & Special Prosecutions Section and the Oakland Branch of the United States Attorney’s Office. This prosecution is the result of an investigation by the FBI and the Contra Costa County District Attorney’s Office.
* * *
These charges against Amiri were brought as part of an investigation into the Antioch and Pittsburgh police departments that resulted in multiple charges against 10 current and former officers and employees of these two police departments for various crimes ranging from the use of excessive force to fraud. The status of these cases, all of which are before Senior U.S. District Judge Jeffrey S. White, is below:
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 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 WilliamsPleaded guilty 11/28/23, status conference 8/19/25Anabolic Steroid 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 HarrisPleaded guilty 9/17/24, status conference 8/19/2521 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 WengerConvicted at trial 4/30/25, sentencing pendingCivil 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 RomboughPleaded guilty 1/14/25, status conference 8/19/2518 U.S.C. §§ 241 (Conspiracy Against Rights), 242 (Deprivation of Rights Under Color of Law)Devon WengerTrial 8/4/25Anabolic Steroid 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 HarrisPleaded guilty 9/17/24, status conference 8/19/25Former Employee of Global Security and Aerospace Company Admits to Lying About Military ServiceRead the Press Release
SAN JOSE – Omar Naziry, a former employee of a global security and aerospace company, pleaded guilty in federal court today to one count of mail fraud, in violation of 18 U.S.C. § 1341, in connection with a scheme to defraud his former employer by falsely claiming to be on military deployment.
Naziry, 40, of Mountain View, Calif., was indicted by a federal grand jury on July 24, 2024. According to his plea agreement, Naziry’s former employer (Company 1) had a policy under which it paid a differential to any employee who went on military leave. The differential was the difference between the employee’s company pay and military pay. The policy—which, according to the indictment, was first instituted following the Sept. 11th terrorist attacks and later expanded to cover all forms of military leave—ensured the employee experienced no reduction in income because of his or her military service.
Naziry admitted in his plea agreement that, although he was not and had never been in the U.S. military, he fraudulently obtained differential pay and other benefits from Company 1 between August 2016 and April 2022 by falsely claiming to be on military deployment. In support of his August 2016 request for differential pay, Naziry submitted false military orders and a military leave and earnings statement. In July 2017, Naziry renewed his fraudulent differential pay request, falsely claiming his nonexistent military deployment had been extended by four years and submitting false military orders. In reliance on Naziry’s misrepresentations, Company 1 awarded Naziry differential pay following these requests. In June 2021, Naziry made a third fraudulent request for differential pay, which Company 1 did not award because Naziry had already reached the five-year limit for differential pay.
Naziry further admitted that, in January 2022, he used a fake identity to request additional differential pay from Company 1. In March of that year, Company 1 sent Naziry a letter advising him it had reason to believe his military orders were fraudulent. In response—and for the purpose of convincing Company 1 to reverse its decision and award him additional differential pay—Naziry mailed Company 1 a letter falsely representing that his military orders were valid and that he was stationed in the Middle East. Naziry also admitted in his plea agreement that he caused Company 1 a financial loss of between $250,000 and $550,000.
Naziry separately admitted in his plea agreement that, between January 2021 and October 2022, he fraudulently obtained $35,093 in federal housing assistance payments from the U.S. Department of Housing and Urban Development by knowingly misstating his income to be significantly lower than it actually was.
United States Attorney Craig H. Missakian and John Helsing, Acting Special Agent in Charge for the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Western Field Office, made the announcement.
Naziry is currently released on bond. Naziry’s sentencing hearing is scheduled for September 24, 2025, at 10:00 a.m., before U.S. District Judge P. Casey Pitts. Naziry faces a maximum sentence of 20 years in prison and a $250,000 fine (or twice the gross gain). However, 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 Ryan Arash Rezaei is prosecuting the case with the assistance of Kevin Costello and Lynette Dixon. The prosecution is the result of an investigation by DCIS and the U.S. Department of Housing and Urban Development, Office of Inspector General.
Spanish National Pleads Guilty to Conspiring to Export U.S. Military-Grade Radios to Russian End UsersRead the Press Release
WASHINGTON – Bence Horvath, 47, a Spanish national who lived in the United Arab Emirates, pleaded guilty today in U.S. District Court in connection with conspiring to illegally export U.S.-origin radio communications technology to Russian end users without a license, announced U.S. Attorney Jeanine Ferris Pirro and Assistant Attorney General for National Security John Eisenberg.
Horvath pleaded guilty to one count of conspiring to unlawfully export goods to Russia. The Honorable John D. Bates scheduled sentencing for Sept. 30, 2025.
According to court documents, beginning at least around January 2023, Horvath and others initiated discussions with a small U.S. radio distribution company about procuring and exporting to Russia U.S.-manufactured military-grade radios and related accessories. Over the next several months, Horvath continued his efforts to secure those items, which he intended to transship to Russia via a freight forwarder in Latvia.
As part of the conspiracy, Horvath purchased 200 of the military-grade radios and intended to export them to Russia. But he was not successful, as U.S. Customs and Border Protection detained the shipment, preventing the radios from falling into the hands of prohibited Russian end users.
This case was investigated by the Department of Homeland Security Investigation’s New Orleans, Louisiana Field Office, the Defense Criminal Investigative Service, and the Department of Commerce. Assistance was provided by the U.S. Attorney’s Office for the Northern District of California.
The case is being prosecuted by Assistant U.S. Attorneys Christopher Tortorice and Maeghan Mikorski of the U.S. Attorney’s Office for the District of Columbia and Trial Attorney Sean Heiden of the National Security Division’s Counterintelligence and Export Control Section.
24cr401
Nicaraguan National Indicted on Charges of Assaulting Three Deportation Officers at ICE Facility in San JoseRead the Press Release
SAN JOSE – A federal grand jury has indicted Francisco De-Jesus Morales on charges of assaulting three U.S. Immigration and Customs Enforcement (ICE) deportation officers at an ICE facility in San Jose. Morales was first charged by complaint in May 2025. He made his initial appearance in federal court on June 4, 2025, and was remanded into custody at that time by U.S. Magistrate Judge Susan van Keulen.
According to the indictment, which was filed on June 12, 2025, and the previously filed complaint, Morales, 25, a national of Nicaragua, allegedly assaulted three ICE deportation officers at an ICE facility in San Jose on May 2, 2025, as those officers attempted to take Morales into custody pursuant to a warrant for Morales’ removal and deportation from the United States.
“Our office will not tolerate any form of violence against the brave men and women who keep us safe. We remain steadfast in our commitment to protecting the residents of the Northern District of California and supporting our law enforcement partners,” said United States Attorney Craig H. Missakian. “Those who use violence against federal officers should know that they will be met with the full force of the law.”
“HSI San Francisco does not take assaults on anyone, especially federal officers, lightly. We care deeply about the safety of our agents and partnering agencies,” said Homeland Security Investigations (HSI) Acting Special Agent in Charge Michael Ciapas.
The complaint alleges that Morales physically resisted arrest and attempted to flee from the deportation officers, resulting in a struggle and injuries to Morales and the officers. All three deportation officers and Morales received medical treatment for injuries sustained during the physical altercation. The deportation officers’ injuries include bruising, scrapes, an ankle stress fracture/strain, a chest contusion, and a groin injury. The indictment charges Morales with forcibly assaulting one of the deportation officers, causing significant groin bruising, in violation of 18 U.S.C. § 111(a)(1) and (b), and with assaults of the other two officers, in violation of 18 U.S.C. § 111(a)(1). Morales is next scheduled to appear in district court on June 24, 2025, for arraignment on the indictment 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, the defendant faces a maximum sentence of 20 years in prison and a $250,000 fine on Count One, which charges assault on a federal officer inflicting bodily injury, in violation of 18 U.S.C. § 111(a)(1) and (b). He faces a maximum sentence of eight years in prison and a $250,000 fine if convicted on Count Two, which charges assault on a federal officer with physical contact, in violation of 18 U.S.C. § 111(a)(1). And he faces a maximum sentence of one year in prison and a $100,000 fine if convicted on Count Three, which charges misdemeanor assault on a federal officer, in violation of 18 U.S.C. § 111(a)(1). However, 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 Taylor Lord and Assistant U.S. Attorney Jeff Nedrow are prosecuting the case. The prosecution is the result of an investigation by HSI.
Four Leaders of Notorious Nuestra Familia Prison Gang Sentenced for Racketeering ConspiracyRead the Press Release
OAKLAND – Four top leaders of the Nuestra Familia (NF) prison gang were sentenced today to federal prison terms ranging from 120 months to 175 months following their convictions at trial for racketeering conspiracy. David Cervantes, aka “DC,” was sentenced to 120 months; James Perez, aka “Conejo,” was sentenced to 120 months; Guillermo Solorio, aka “Capone,” aka “Caps,” was sentenced to 175 months; and George Franco, aka “Puppet,” was sentenced to 175 months. U.S. District Judge Yvonne Gonzalez Rogers handed down the sentences.
The sentences follow a three-month trial in 2024, which established that the four defendants—Cervantes, 76; Perez, 70; Solorio, 45; and Franco, 59—were senior members of the NF prison gang, serving on the General Council, the primary decision-making body for the gang. According to court documents and evidence presented at trial, all four defendants held a leadership role in a lucrative and violent criminal enterprise that engaged in murder conspiracies, attempted murder, drug distribution, and money laundering:
- Cervantes was one of three “Generals” who sat atop the NF organizational structure, specifically the “General Advocates Office,” and made final decisions on serious matters involving governance of the enterprise. As the sole member of the General Advocates Office, Cervantes oversaw member discipline, a role that included deciding when members should be attacked or killed for violating gang rules.
- Perez was another General of the prison gang, specifically, the “General of Prisons.” In this role, Perez was responsible for maintaining authority over all NF regiments and NF criminal activity within the California prison system.
- Franco was a member of the NF’s “Inner Council” and was Regimental Commander of San Joaquin County. As a member of the Inner Council, Franco was an advisor to the three NF Generals (two of whom were Cervantes and Perez) and was part of the General Council that, in addition to member discipline, made other significant decisions in conducting the affairs of the NF.
- Solorio was likewise part of the NF “Inner Council” and was an advisor to the NF Generals. Solorio also was the Regimental Commander over the Monterey County Street Regiment, overseeing criminal activity, including largescale drug trafficking, by subservient Norteno street gangs.
“The brutal violence and drug trafficking that this criminal enterprise ran from within state prisons touched every county in the Bay Area. With these sentences, 40 gang leaders and associates have now been convicted and brought to justice for the violence they caused inside and outside prison walls, and the community is now safer as a result,” said United States Attorney Craig H. Missakian. “These convictions would not have been possible without the dedicated work of our law enforcement partners across multiple agencies and jurisdictions and the talented lawyers and staff from within our office.”
“The sentencing of these four top Nuestra Familia gang leaders marks the final chapter in the successful dismantling of one of the most violent and entrenched prison gangs operating in California. Through sustained, coordinated efforts with our law enforcement partners, we have brought to justice 40 members and associates of this dangerous gang who spread violence and fear inside prison walls and outside throughout our communities,” said FBI Special Agent in Charge Sanjay Virmani. “This case demonstrates the FBI’s unwavering commitment to rooting out organized criminal enterprises and protecting the public from those who use intimidation and brutality to maintain power.”
The sentencings of these four defendants mark the successful completion of the prosecution of NF leadership in the Northern District of California. Forty Nuestra Familia members and associates, including defendants both on the streets and in California state prisons, have now been convicted and sentenced. This includes all seven members of the NF’s General Council, its entire senior leadership team, as detailed in the table below:
Defendant
Convictions
Sentence Imposed
David Cervantes aka “DC”18 U.S.C. § 1962(d) – Racketeering conspiracy, with special findings for three attempted murders and two murder conspiracies120 months
James Perez aka “Conejo”18 U.S.C. § 1962(d) – Racketeering conspiracy, with special findings for two attempted murders and two murder conspiracies120 months
Antonio Guillen aka “Chuco”18 U.S.C. § 1962(d) – Racketeering conspiracy, with special findings for two murder conspiracies and one attempted murder175 months
George Franco aka “Puppet”18 U.S.C. § 1962(d) – Racketeering conspiracy, with special findings for one attempted murder and one murder conspiracy175 months
Guillermo Solorio aka “Capone”18 U.S.C. § 1962(d) – Racketeering conspiracy, with a special finding for attempted murder175 months
Trinidad Martinez aka “Trino”18 U.S.C. § 1962(d) – Racketeering conspiracy, with special findings for one attempted murder144 months
Samuel Luna aka “Sammy”18 U.S.C. § 1962(d) – Racketeering conspiracy, with special findings for four murder conspiracies and one attempted murder175 months
Assistant U.S. Attorneys Mari Overbeck, Leif Dautch, and Aseem Padukone of the Violent Crime Strike Force prosecuted this case, with the assistance of Veronica Hernandez and Kevin Costello. The prosecution is the result of an investigation by the FBI (San Francisco, Sacramento, and Phoenix Divisions, and Cryptanalysis and Racketeering Records Unit), the DEA, the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the U.S. Marshal Service, with the assistance of the Santa Clara County Sheriff’s Office, the Santa Clara County District Attorney’s Office, and the San Jose Police Department, and with support from the Alameda County Sheriff’s Office, Antioch Police Department, Campbell Police Department, Fremont Police Department, King’s County Sheriff’s Office, Monterey County Sheriff’s Office, Mountain View Police Department, Sacramento Police Department, Salinas Police Department, Menlo Park Police Department, Santa Clara County Parole Department, Santa Clara County Probation Department, Santa Clara Police Department, Santa Cruz County District Attorney’s Office, Santa Cruz County Sheriff’s Office, Modesto Police Department, the California Department of Corrections and Rehabilitation, San Francisco Police Department, the Stanislaus County Sheriff’s Department, and Sunnyvale Department of Public Safety.
This investigation and prosecution was part of the Organized Crime Drug Enforcement Task Forces, which identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Convicted Felon Who Attempted to Sell Assault Rifle Sentenced to 92 Months in Federal Prison for Unlawful Firearm PossessionRead the Press Release
SAN FRANCISCO – Timothy Demetrius Jeffrey, aka “Boo,” 44, of Antioch, Calif., was sentenced today to 92 months in federal prison, following his conviction on March 12, 2025, by a federal jury on two counts of being a felon in possession of a firearm and ammunition. Senior U.S. District Judge William H. Alsup handed down the sentence. Judge Alsup also sentenced Jeffrey to concurrent 24-month terms for violating the terms of his supervised release in two other federal cases.
According to court documents and evidence presented at trial, on April 25, 2023, Jeffrey drove into a shopping plaza parking lot in Pittsburg, Calif., parked, and fled on foot from a pursuing police officer. Jeffrey threw a Glock 9mm semi-automatic pistol with an extended magazine and 19 rounds of ammunition over a fence behind the shopping plaza before he was arrested.
Jeffrey posted bond after his arrest but absconded soon thereafter. Following an investigation by the Contra Costa County Sheriff’s Office and the United States Marshals Service, law enforcement officers located Jeffrey at a relative’s home in Antioch on March 27, 2024. After U.S. Marshals arrested Jeffrey, the Contra Costa County Sheriff’s Office executed a search warrant at the residence, where deputies located and seized an Aero Precision AR-style rifle with a magazine and 25 rounds of ammunition from under a couch in the living room. They also seized a cell phone that had been used by Jeffrey. The phone contained multiple text messages in which Jeffrey attempted to sell the AR rifle and sent a photo of it.
At the time of his April 2023 and March 2024 arrests, Jeffrey was on federal supervised release following past felony convictions for being a felon-in-possession of a firearm, escape from custody, and conspiracy and possession with intent to distribute a controlled substance.
Judge Alsup also found that enhancements were appropriate under the U.S. Sentencing Guidelines (i) due to Jeffrey’s obstruction of justice resulting from perjury during his trial testimony; and (ii) because one of the guns Jeffrey possessed had previously been stolen.
United States Attorney Craig H. Missakian and Bureau of Alcohol, Tobacco, and Firearms (ATF) Acting Special Agent in Charge Alex Buenaventura made the announcement.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Assistant U.S. Attorney Aseem Padukone prosecuted this case with the assistance of Claudia Hyslop, Nina Burney, and Yenni Weinberg. The prosecution is the result of an investigation by the ATF, the United States Marshals Service, the Pittsburg Police Department, and the Contra Costa County Sheriff’s Office.
Former CFO of SF Seafood Wholesaler Convicted for Embezzling over $9 Million from CompanyRead the Press Release
SAN FRANCISCO – A federal jury yesterday convicted Antonietta Nguyen of multiple counts of wire fraud, aiding and abetting wire fraud, conspiracy to commit wire fraud, conspiracy to transport monetary instruments for the purpose of laundering, and tax evasion in connection with a scheme to embezzle millions of dollars from a San Francisco-based seafood company. The jury’s verdict followed a two-week trial before Senior U.S. District Judge Susan Illston.
Nguyen, 57, of Brisbane, was a minority shareholder of ABS Seafood, a private Former CFO Of Sf Seafood Wholesaler Convicted For Embezzling Over $9 Million From Companyseafood wholesaler and importer, and served as the company’s Chief Financial Officer. According to court documents and evidence presented at trial, from January 2014 to around May 2020, Nguyen fraudulently used a company credit card and funds from the company’s bank account to pay for millions of dollars of expenses on her personal credit cards. She also charged personal expenses to her corporate credit card, which were then paid for by the company. Nguyen used the stolen funds to pay for personal travel, purses and other luxury goods from Louis Vuitton, Hermès, Goyard, Chanel, and Neiman Marcus, property taxes for one of her residences, and college tuition fees for a relative. The evidence presented at trial showed that Nguyen misappropriated approximately $2.7 million in company funds over the course of six-and-a-half years.
The jury also found that Nguyen devised an inflated invoice scheme involving family members who operated Pescaderia Pacifica International, Inc., a Filipino seafood exporter that was one of ABS’s top vendors and main source for tuna imported into the United States. Nguyen caused ABS to pay over double the true value of the imported seafood by creating false invoices that Nguyen hid from others at the company. Her family members then split the proceeds, with some of the money being wired back to bank accounts in the United States in the names of Nguyen’s husband and daughters.
The evidence presented at trial also showed that Nguyen evaded personal income taxes that she and her spouse owed for tax years 2018 and 2019 by underreporting the amount of joint taxable income they had for those two years.
“The defendant devised multiple ways to defraud her business partners of several millions of dollars and got away with it for over six years. She exploited her position of trust in order to fund a lavish lifestyle for herself and her family members,” said United States Attorney Craig H. Missakian. “The jury’s verdict today holds the defendant accountable for her long-running fraud scheme.”
“Antonietta Nguyen’s conviction reflects the serious consequences of the scheme she orchestrated to defraud her business partners,” said FBI Special Agent in Charge Sanjay Virmani. “As CFO, she systematically stole millions from her own company to bankroll a lavish lifestyle, betraying the responsibilities of her position. The FBI remains committed to working with our partners to uncover and stop financial crimes, and to ensure those who commit them are held fully accountable.”
“Antonietta Nguyen’s brazen multi-million-dollar embezzlement scheme is a betrayal and breach of trust against her employer and runs afoul of well-established financial law. Her conviction is befitting and a strong deterrent, sending a clear message that white-collar crime has serious consequences.” said IRS Criminal Investigation (IRS-CI) Oakland Field Office Special Agent in Charge Linda Nguyen. “IRS-CI Special Agents are the experts at tracking down ill-gotten gains and bringing financial criminals to justice.”
Nguyen was released on bond. Nguyen’s sentencing hearing is scheduled for October 10, 2025 before Judge Illston. Defendant faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count of wire fraud and wire fraud conspiracy, 20 years in prison and a $500,000 fine for the count of conspiracy to transport monetary instruments for the purpose of laundering, and five years in prison and a $100,000 fine for each count of willful tax evasion. 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 Sailaja M. Paidipaty and Colin Sampson are prosecuting the case with the assistance of Sara Slattery, Janice Pagsanjan, and Kathy Tat. The prosecution is the result of an investigation by the FBI and IRS-CI.
Alameda Man Indicted on Charges Stemming from Theft of $800,000 from Prepaid Debit CardsRead the Press Release
SAN FRANCISCO – A federal grand jury has indicted Nathan Wu-Falkenborg on 15 counts of bank fraud and aggravated identity theft in connection with the alleged theft of funds from prepaid debit cards. Wu-Falkenborg made an initial appearance in federal district court today.
According to the indictment filed June 4, 2025, and unsealed today, Wu-Falkenborg, 49, of Alameda, worked in fraud prevention at a company that administered a prepaid debit card program. Known as Direct Express, the program allowed recipients of federal benefits to access their benefits through a prepaid debit card account. Between September 2021 and March 2022, Wu-Falkenborg allegedly used his access to confidential account information to activate and use numerous Direct Express accounts that had been funded but did not appear to be in use. The indictment describes that Wu-Falkenborg fraudulently obtained approximately $800,000 from these Direct Express accounts by way of several hundred ATM withdrawals around the Bay Area and online transactions.
Wu-Falkenborg is also charged with the unauthorized use of a Direct Express customer’s identity to open various accounts that he used to execute the scheme and unlawfully using debit cards associated with two victim customers.
United States Attorney Craig H. Missakian and FBI Special Agent in Charge Sanjay Virmani made the announcement.
Wu-Falkenborg was released on bond. He is scheduled to appear in district court on July 9, 2025, for a status conference before U.S. District Judge Charles R. Breyer.
Wu-Falkenborg is charged with 12 counts of bank fraud in violation of 18 U.S.C. § 1344(1), (2) and three counts of aggravated identity theft in violation of 18 U.S.C. § 1028A(a)(1). 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 30 years in prison and a fine of $1 million for each bank fraud charge, and a mandatory minimum sentence of two years in prison and a fine of $250,000 for each aggravated identity theft charge. 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 Jared Buszin and Charles Bisesto are prosecuting the case with the assistance of Tina Rosenbaum. The prosecution is the result of an investigation by the FBI.
Tenderloin Fentanyl Dealer Sentenced to More Than 11 Years in Federal Prison for Drug Trafficking OffensesRead the Press Release
SAN FRANCISCO – Maria Valle-Rodriguez, 47, a Honduran national, was sentenced yesterday to 135 months (11 years and three months) in federal prison for drug trafficking offenses in the Bay Area. Her co-defendants, Emilson Valle-Zuniga, 33, and Jonsan Valle-Rodriguez, 31, both Honduran nationals, were previously sentenced on May 21, 2025, to federal prison terms of 42 months and 24 months, respectively. U.S. District Judge Jacqueline Scott Corley handed down all three sentences.
A federal grand jury indicted all three defendants in December 2023, and all three pleaded guilty on Aug. 21, 2024. Maria Valle-Rodriguez pleaded guilty to distribution of 40 grams or more of a mixture and substance containing fentanyl, possession with intent to distribute methamphetamine, possession with intent to distribute fentanyl, and possession with intent to distribute methamphetamine. Valle-Zuniga pleaded guilty to possession with intent to distribute fentanyl and possession with intent to distribute methamphetamine. Jonsan Valle-Rodriguez pleaded guilty to possession with intent to distribute fentanyl.
According to their plea agreements, between August and December 2023, Maria Valle-Rodriguez, Valle-Zuniga, and Jonson Valle-Rodriguez engaged in a drug trafficking conspiracy with each other and unindicted co-conspirators to sell fentanyl, methamphetamine, and other controlled substance in the Tenderloin District of San Francisco and in Oakland. Maria Valle-Rodriguez admitted to engaging in multiple sales of fentanyl and/or methamphetamine. For part of this time, Maria Valle-Rodriguez had multiple vehicles registered to her name that she and her codefendants used to drive from Oakland into the Tenderloin District during the nighttime hours to deal drugs.
The defendants, who are related, lived together with several minor children in an apartment in Oakland that was used for drug trafficking. Maria Valle-Rodriguez admitted knowing that there was fentanyl in the apartment where she resided with several minor children.
On Dec. 12, 2023, law enforcement executed search warrants on the defendants’ residence and vehicles connected to and being driven by them. In total, law enforcement recovered approximately eight pounds of fentanyl and fentanyl analogue, two gross pounds of methamphetamine, as well as over $127,000 in cash at the premises and in the vehicles connected to the drug trafficking conspiracy.
United States Attorney Craig H. Missakian and DEA Special Agent in Charge Bob P. Beris made the announcement.
Maria Valle-Rodriguez had been out of custody pending sentencing so she could receive medical care. While out on bond, she was arrested on April 29, 2025, by San Francisco Police Department officers at an apartment where officers were executing a search warrant related to a drug trafficking operation. Large quantities of drugs were found at the apartment where Maria Valle-Rodriguez was residing. A minor child was also living at the residence.
In addition to the prison term, Judge Corley also sentenced Maria Valle-Rodriguez to a four-year period of supervised release. Valle-Zuniga and Jonsan Valle-Rodriguez were each sentenced to a three-year term of supervised release.
Assistant U.S. Attorney Ivana Djak is prosecuting the case with the assistance of Lance Libatique and Gabriel Flesher. The prosecution is the result of an investigation by the DEA.
Former State Correctional Officer Pleads Guilty to Planting Prison Contraband That He Then Pretended to DiscoverRead the Press Release
SAN FRANCISCO – Avelino Ramirez, a former K-9 sergeant at California state correctional facilities, pleaded guilty in federal court today to one count of wire fraud in connection with a scheme to plant contraband that he would then discover.
Ramirez, 52, of Vallejo, Calif., was indicted by a federal grand jury on Oct. 31, 2024. According to his plea agreement, from approximately 2013 to September 2022, Ramirez worked as an Investigative Services Unit K-9 Officer with the California Department of Corrections and
Rehabilitation at San Quentin State Prison. In September 2022, he was promoted to K-9 sergeant and began working at the California Medical Facility in Vacaville, Calif., around November 2022.
From October 2021 to February 2024, Ramirez engaged in a scheme to smuggle and then plant contraband in common areas of San Quentin State Prison and the California Medical Facility, which he would then pretend to discover. Ramirez did so in order to hold himself out as a successful K-9 officer with the hope that it would help him obtain a promotion to K-9 sergeant. The contraband items Ramirez planted included drugs, such as methamphetamine, marijuana, and cocaine; drug paraphernalia; tobacco; cell phones; and weapons. At times, Ramirez mixed the narcotics he planted in the prisons with salt and/or sugar and mixed the marijuana he planted in the prisons with lawn trimmings.
Ramirez also sought to inflate his salary by claiming overtime related to searches where contraband was recovered pursuant to his fraudulent scheme and writing reports of these false discoveries. In total, Ramirez fraudulently obtained approximately $8,200 in overtime pay.
United States Attorney Craig H. Missakian and FBI Special Agent in Charge Sanjay Virmani made the announcement.
Ramirez is currently released on bond. Ramirez’s sentencing hearing is scheduled for Sept. 18, 2025, at 1:30 p.m. before U.S. District Judge William H. Orrick. Defendant faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for the violation of 18 U.S.C. § 1343. 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 Benjamin K. Kleinman is prosecuting the case with the assistance of Amala James and Lance Libatique. The prosecution is the result of an investigation by the FBI.
Monterey County Man Who Sold Fentanyl-Laced Pills Resulting in Overdose Death of A Minor Sentenced to More Than Eight Years in PrisonRead the Press Release
SAN JOSE – Edward Tellez Solis, aka Edward Telles Solis, was sentenced today to 100 months in federal prison for possessing and distributing fentanyl-laced counterfeit oxycodone pills via social media and for possessing a firearm in furtherance of drug trafficking. Senior U.S. District Judge Edward J. Davila handed down the sentence.
Tellez Solis, 27, of Marina, Calif., was indicted by a federal grand jury on Aug. 4, 2022. On Feb. 10, 2025, Tellez Solis pleaded guilty to one count of possession with intent to distribute fentanyl, one count of distribution of fentanyl, and one count of possession of a firearm in furtherance of a drug trafficking crime.
According to the plea agreement and court documents, Tellez Solis used social media applications such as Snapchat and Telegram to advertise, sell, and distribute controlled substances such as fentanyl-laced counterfeit oxycodone pills (known as “M30” pills or “blues”), cocaine, Ecstasy/MDMA, Hydrocodone/Norco tablets, marijuana, and Alprazolam/Xanax tablets. On March 3, 2022, Tellez Solis contacted a 15-year-old minor via Snapchat and offered to sell him 13 M30 pills, knowing that the pills contained fentanyl or some other federally controlled substance. The next day, Tellez Solis delivered at least nine M30 to the 15-year-old, who then suffered a fatal overdose.
During a search of Tellez Solis’s car, law enforcement found a stash of controlled substances, $17,243 in cash, a loaded firearm, three fully loaded magazines, and an additional 89 rounds of ammunition. An additional $98,246 in cash was found inside of his home.
“While this sentence brings a measure of justice to the community for this crime, it can never undo the pain and devastation the defendant’s reprehensible actions caused the victim’s family,” said United States Attorney Craig H. Missakian. “We will continue to work closely with our federal and local law enforcement partners to fight the scourge of fentanyl and other illegal narcotics pouring over our border. We owe the victim’s family and the people of the Northern District of California nothing less.”
“Edward Tellez Solis used social media as a superhighway to sell lethal drugs and line his pockets with the proceeds. Today’s sentencing marks a crucial step in bringing justice to the victim and a family devastated by the scourge of fentanyl,” said DEA Special Agent in Charge Bob P. Beris. “We will be relentless in our pursuit of unscrupulous drug dealers who distribute poison in our community.”
In addition to the prison term, Judge Davila also sentenced the defendant to a three-year period of supervised release and ordered Tellez Solis to pay $29,895.85 in restitution to the family of the minor overdose victim. The defendant was immediately remanded into custody.
Assistant U.S. Attorneys Amani S. Floyd and Dan M. Karmel prosecuted the case with the assistance of Veronica Hernandez. The prosecution is the result of an investigation by the DEA and the County of Monterey Sheriff’s Office.
Salinas Man Charged with Attempted Enticement of A MinorRead the Press Release
SAN JOSE – A federal grand jury today indicted Edy Antonio, Jr., 30, of Salinas, Calif., on one count of attempted coercion and enticement of a minor to engage in criminal sexual conduct.
Antonio was initially charged by criminal complaint on May 13, 2025, with the same offense. According to the indictment and the criminal complaint, Antonio allegedly used or attempted to use his cell phone to persuade, induce, and entice two minors to engage in criminal sexual conduct. On April 21, 2025, Antonio responded to an advertisement on a website dedicated to promoting commercial sex services. The advertisement depicted two minors whom Antonio believed to be a 12-year-old and a 14-year-old. Antonio allegedly responded via text message and agreed to pay $500 to engage in sexual conduct with the minor girls. Thereafter, Antonio traveled to the planned meeting location at a hotel in Salinas, where he was arrested by Salinas Police Department officers. The complaint describes that Antonio worked as a respiratory therapist at two hospitals in Salinas and Monterey.
United States Attorney Craig H. Missakian and Homeland Security Investigations (HSI) Special Agent in Charge Tatum King made the announcement.
Antonio was arrested in Salinas on May 20, 2025, and made an initial appearance in federal court that same day. He was released on bond. Antonio is next scheduled to appear in district court on June 10, 2025, 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, the defendant faces a maximum sentence of life in prison and a fine of $250,000 for the 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.
Assistant U.S. Attorney Matthew Chang is prosecuting the case with the assistance of Natachiana Burney and Susan Kreider. The prosecution is the result of an investigation by HSI and the Salinas Police Department.
San Francisco Man Sentenced to Seven-And-A-Half Years in Federal Prison for Tenderloin Carjacking and Firearms OffensesRead the Press Release
SAN FRANCISCO – Lafayette Davenport was sentenced today to 90 months in federal prison for carjacking a San Francisco AIDS Foundation vehicle in the Tenderloin in August 2023, unlawfully possessing a firearm, and brandishing a firearm in furtherance of a crime of violence. Senior U.S. District Judge William Alsup handed down the sentence.
Davenport, 30, of San Francisco, was indicted by a federal grand jury on July 17, 2024, on charges of carjacking in violation of 18 U.S.C. § 2119(1), brandishing a firearm during and in relation to a crime of violence in violation of 18 U.S.C. § 924(c)(1), and being a felon in possession of a firearm and ammunition in violation of 18 U.S.C. § 922(g)(1). Davenport pleaded guilty on Feb. 11, 2025, to all three counts.
According to the plea agreement and court documents, on the morning of Aug. 24, 2023, Davenport saw an employee of the San Francisco AIDS Foundation driving in the Tenderloin neighborhood in a vehicle marked with the nonprofit organization’s logos. As the victim driver completed a pickup of discarded needles and returned to the car, Davenport, wearing a ski mask, ran up to the victim and pointed a pistol at him, saying “Don’t make me shoot you” and “I swear I’ll shoot you right here.” Davenport stole the victim’s watch and car keys and drove the San Francisco AIDS Foundation vehicle several feet before fleeing on foot to a nearby apartment building.
On Feb. 22, 2024, San Francisco Police Department officers arrested Davenport in the Tenderloin neighborhood. Officers found Davenport with the ski mask and the loaded pistol that he had used during the carjacking. At the time of his arrest, Davenport was on probation and had been convicted of prior felonies, including second-degree burglary of automobiles while on parole.
In addition to the prison term, Judge Alsup also sentenced the defendant to a five-year period of supervised release and ordered $500 in restitution.
United States Attorney Craig H. Missakian and FBI Special Agent in Charge Sanjay Virmani made the announcement.
Assistant U.S. Attorney Sara E. Henderson prosecuted the case with the assistance of Claudia Hyslop, Alycee Lane, and Janice Pagsanjan. The prosecution is the result of an investigation by the FBI and San Francisco Police Department.
Man Sentenced to Seven-And-A-Half Years in Federal Prison for Aggravated Sexual Abuse of Victim in Marin HeadlandsRead the Press Release
SAN FRANCISCO – Esbin Ramirez-Garcia was sentenced today to 90 months in federal prison for committing aggravated sexual abuse while on federal land. Senior U.S. District Judge William Alsup handed down the sentence.
Ramirez-Garcia, 28, a national of Mexico, pleaded guilty on Feb. 25, 2025, to one count of aggravated sexual abuse in violation of 18 U.S.C. § 2241(a). According to the plea agreement, Ramirez-Garcia admitted that late in the evening on Aug. 2, 2024, while giving the victim, with whom he had a prior relationship, a ride from her workplace in his truck, he asked her to get back together with him. The victim refused to resume their relationship and asked to be let out of the vehicle, but Ramirez-Garcia grabbed her with his hand and continued driving, forcing her to accompany him.
Ramirez-Garcia deviated from the route to the victim’s home and drove his truck to a parking lot in the Marin Headlands, which is part of the Golden Gate National Recreation Area. Ramirez-Garcia forcibly placed his body on top of the victim’s body while she sat in the passenger seat and sexually assaulted her.
United States Attorney Craig H. Missakian, FBI Special Agent in Charge Sanjay Virmani, and National Park Service Investigative Services Branch Acting Special Agent in Charge Betsy Smith made the announcement.
In addition to the prison term, Judge Alsup also sentenced the defendant to a 10-year period of supervised release and ordered that he participate in a sex offense-specific treatment program, among other conditions. The defendant was immediately remanded into custody.
Special Assistant U.S. Attorney Christine Chen and Assistant U.S. Attorney E. Wistar Wilson prosecuted the case with the assistance of Sara Slattery, Maureen French, and Fernanda Gonzalez. This prosecution is the result of an investigation by the FBI and the National Park Service Investigative Services Branch.
Convicted Felon Who Fired Gun Outside Crowded S.F. Bar Sentenced to Three Years and Nine Months for Unlawful Possession of AmmunitionRead the Press Release
SAN FRANCISCO – Fernando Aguilera was sentenced yesterday to 45 months in federal prison for being a felon in possession of ammunition. Senior U.S. District Judge William Alsup handed down the sentence.
Aguilera, 37, a national of Honduras, was indicted by a federal grand jury on July 18, 2023. On Feb. 12, 2025, Judge Alsup found Aguilera guilty of being a felon in possession of ammunition in violation of 18 U.S.C. § 922(g)(1) after a bench trial. According to court documents and evidence presented at trial, Aguilera took a gun out of his waistband on two occasions at a crowded bar in San Francisco. He then left the bar and fired into the air two separate times with people and cars nearby. When law enforcement arrived, Aguilera fled from the police before being apprehended in the garden area of a nearby residence. Law enforcement found a firearm with the wrong caliber bullet stuck in the chamber next to Aguilera and ammunition in his bag. At the time of his arrest, Aguilera had four prior felony convictions for being an accessory, being a prohibited person with ammunition, and second-degree burglary.
United States Attorney Craig H. Missakian and FBI Special Agent in Charge Sanjay Virmani made the announcement.
In addition to the prison term, Judge Alsup also sentenced the defendant to a three-year period of supervised release. The defendant has been in custody since the offense.
Assistant U.S. Attorneys Kelsey Davidson and Sophia Cooper prosecuted the case with the assistance of Kevin Costello and Marina Ponomarchuk. The prosecution is the result of an investigation by the FBI and San Francisco Police Department.
Two Salinas Acosta Plaza Norteño Gang Members Plead Guilty to Racketeering ConspiracyRead the Press Release
SAN JOSE – Gil Vasquez, aka “Rhino,” and Jose Mexicano, aka “Armani,” two members of the Salinas Acosta Plaza (SAP) Norteño criminal street gang based in Salinas, Calif., pleaded guilty in federal court today to racketeering conspiracy.
Vasquez, 37, and Mexicano, 26, both of Salinas, were indicted by a federal grand jury on April 18, 2024, along with multiple other defendants, on one count of racketeering conspiracy. According to court documents, the SAP Norteños is a street gang that originated in a Salinas apartment complex by the same name. The group is now recognized as a clique within the larger collection of Norteño criminal street gangs. As described in the indictment, members of the street gang “meet and 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. Gang members perpetrate crimes to protect and uphold the gang’s 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.
In his plea agreement, Vasquez pleaded guilty to the sole count and admitted his personal involvement in the armed robbery of a bystander in July 2014, the attempted murder of a suspected rival gang member in February 2016, drug trafficking of fentanyl in 2023, and firearms trafficking in 2023. Vasquez also admitted to holding a leadership role within the gang.
In his plea agreement, Mexicano pleaded guilty to the sole count and admitted his personal involvement in drug trafficking of fentanyl and cocaine from 2021 to 2023, firearms trafficking from 2022 to 2023, and three violent assaults in 2024 and 2025. Mexicano also admitted to conducting two of those assaults while he was on federal pretrial release.
United States Attorney Craig H. Missakian and Homeland Security Investigations (HSI) Special Agent in Charge Tatum King made the announcement.
The indictment also charged nine other SAP Norteño gang members with racketeering conspiracy. Those cases remain pending. An indictment merely alleges that crimes have been committed, and those nine defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Both Vasquez and Mexicano are currently in federal custody. The sentencing hearings for Vasquez and Mexicano are scheduled for Aug. 26, 2025, before U.S. District Judge Beth L. Freeman. Each defendant 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 U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys George Hageman, Leif Dautch, Amani Floyd, and Jared Buszin of the Violent Crime Strike Force are prosecuting the case with the assistance of Lakisha Holliman and Tina Rosenbaum. 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.
Craig H. Missakian Sworn in as United States Attorney for the Northern District of CaliforniaRead the Press Release
SAN FRANCISCO – Craig H. Missakian was sworn in this morning as the United States Attorney for the Northern District of California. Chief U.S. District Judge Richard Seeborg administered the oath of office.
Mr. Missakian was appointed as United States Attorney by Attorney General Pam Bondi pursuant to 28 U.S.C. § 546.
“It is an immense honor to serve as the United States Attorney for the Northern District of California. I’m humbled to have this opportunity to return to public service and to work on behalf of the residents of this remarkable district, and I thank Attorney General Bondi. I am committed to working with the talented men and women of this Office and our law enforcement partners to protect public safety, tackle violent crime, including crimes committed by violent offenders in the country illegally, combat investment and elder fraud, safeguard the district’s technology and critical infrastructure, and uphold the rule of law,” said United States Attorney Missakian. “I also want to thank Acting U.S. Attorney Patrick Robbins for his leadership and his service.”
Mr. Missakian has extensive experience as a federal and state prosecutor, having served as an Assistant U.S. Attorney in the Central District of California from 2001 to 2010 and as a Deputy District Attorney with the Los Angeles County District Attorney’s Office from 1994 to 1997. As an Assistant U.S. Attorney, Mr. Missakian handled multiple high-profile public corruption, organized crime, and cybercrime cases. Mr. Missakian and his co-counsel secured a conviction and multiple guilty pleas in United States v. Chi Mak, an espionage case involving an engineer who over several decades stole classified and highly sensitive U.S. military secrets for the People’s Republic of China. He received the Attorney General’s Award for Distinguished Service for his work on the case. Mr. Missakian also led a multi-year investigation into a nationwide health care fraud scheme involving over $100 million in fraudulent Medicare claims.
From 2014 to 2016, Mr. Missakian worked as Deputy Chief Counsel on the U.S. House of Representatives Select Committee on Benghazi’s investigation into the 2012 terrorist attack in Benghazi, Libya that killed four Americans.
In addition to Mr. Missakian’s long career in public service, he worked in private practice in the areas of complex commercial litigation, qui tam litigation, employment, real estate, and entertainment.
United States Attorney Missakian earned a bachelor’s degree, cum laude, from the University of Southern California and a law degree from Georgetown University Law Center.
Sonoma Real Estate Developer Arrested on Charges of Defrauding Hundreds of InvestorsRead the Press Release
SAN FRANCISCO – Kenneth W. Mattson, 63, of Sonoma, was arrested today pursuant to an indictment returned by a federal grand jury charging him with wire fraud, money laundering, and obstruction of justice.
According to the nine-count indictment filed May 13, 2025, and unsealed today, Mattson was the President of LeFever Mattson, a corporation based in Citrus Heights, Calif., that controlled several limited partnerships that owned and managed commercial and residential properties. For more than a decade, Mattson allegedly solicited and obtained millions of dollars in investments from hundreds of investors—many of whom were nearing or in retirement—in what he represented were legitimate and safe interests of limited partnerships that owned real estate. Those representations were false: although many of the partnerships were real entities, Mattson’s victims, referred to in the indictment as “off-books investors,” never had interests in those partnerships.
“This indictment alleges that Kenneth Mattson defrauded hundreds of victims, many of whom entrusted him with retirement savings they could not afford to lose. He allegedly raised tens of millions of dollars by falsely claiming that investors would have legitimate stakes in real estate projects. Instead of delivering the investment returns he promised, Mr. Mattson is charged with cheating these investors out of their hard-earned money and, in many cases, out of their life savings,” said Acting United States Attorney Patrick D. Robbins. “Mr. Mattson will now be held to account on charges of perpetrating a scheme that he kept afloat only by using new investors’ money to pay obligations to earlier investors—a classic Ponzi scheme.”
“As alleged, Mattson orchestrated a fraudulent real estate investment scheme over several years, stealing millions of dollars from hundreds of victims, many of them retirees or nearing retirement. This case underscores the serious impact financial fraud can have on a community, particularly on those least able to recover,” said FBI Special Agent in Charge Sanjay Virmani. “The investigation in this case is ongoing. We encourage anyone who believes they may be a victim to come forward. The FBI and our partners remain steadfast in our commitment to uncovering the truth and seeking justice for those affected.”
“The allegations against Mr. Mattson describe a long-standing scheme with hundreds of victims duped out of millions of dollars,” said IRS Criminal Investigation (IRS-CI) Oakland Field Office Special Agent in Charge Linda Nguyen. “Simply put, white-collar crime is not victimless, and our special agents and professional staff are the experts at tracing money trails and building cases that lead to justice while simultaneously deterring future criminal activity.”
“Postal inspectors will not allow the mail to be used to defraud people. The American people trust us to end fraud schemes and bring fraud perpetrators to justice—we are proud to work with our federal law enforcement partners in investigations like this one,” said U.S. Postal Inspection Service (USPIS), San Francisco Division Inspector in Charge Stephen M. Sherwood.
The indictment describes that, from at least 2009 and continuing through 2024, Mattson solicited investments from off-books investors into Divi Divi Tree, LP (Divi Divi), a LeFever Mattson-controlled partnership that owned an apartment complex in Riverside County, Calif. The vast majority of these investors used their retirement funds to invest in Divi Divi. Mattson never told the LeFever Mattson company about these investors, and the investors were not listed as partners in the company’s official books and records. Contrary to Mattson’s representations to these victims, these “off-books” investors never became true owners in the partnership. Although some investors received distribution payments from their “off-books” investments, that money did not come from the rents of the partnership’s underlying property, as Mattson promised; instead, it came from loans, Mattson’s comingling of other assets, and from new investors, in the manner of a Ponzi scheme.
Mattson’s scheme reached beyond Divi Divi to other LeFever Mattson limited partnerships, including Heacock Park Apartments, LP, an entity that was formed to purchase another apartment complex. Among other conduct, the indictment describes Mattson’s concealment from the “off-books” investors of the 2021 sale of the Heacock Park Apartments, the asset underlying Heacock Park, which resulted in net proceeds of over $8 million. Notwithstanding Mattson’s prior representations to “off-books” investors that they would be notified upon sale and be entitled to share in profits proportionate to their ownership stake, Mattson concealed the sale from existing “off-books” investors and omitted that the primary asset of the entity had, in fact, been sold when recruiting new investors for Heacock Park.
The indictment also alleges that Mattson engaged in similar fraudulent conduct through another real estate holding entity over which he exercised sole business control, KS Mattson Partners, LP.
Between 2019 and 2024, Mattson obtained at least $28 million from investors for “off-books” investments in Divi Divi and Heacock Park alone.
The indictment further alleges that Mattson learned of an investigation into his conduct by the U.S. Securities and Exchange Commission (SEC) in April 2024. After the SEC instructed Mattson to preserve and retain relevant evidence and served him with a subpoena for documents, Mattson deleted thousands of files that were relevant to the SEC’s investigation.
The indictment charges Mattson with seven counts of wire fraud in violation of 18 U.S.C. § 1343, one count of engaging in monetary transactions in property derived from specified unlawful activity (money laundering) in violation of 18 U.S.C. § 1957, and one count of destruction of records in a federal investigation (obstruction of justice) in violation of 18 U.S.C. § 1519.
Mattson is scheduled to make his initial federal court appearance at 10:30 a.m. on May 23, 2025, before U.S. Magistrate Judge Alex G. Tse in San Francisco.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Mattson faces a maximum sentence of 20 years in prison as to each count of wire fraud and the obstruction of justice count and 10 years in prison as to the money laundering count. 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.
Individuals who believe that they are “off-books” investors with Mattson are urged to fill out the following form: https://forms.fbi.gov/victims/lfminvestors and send copies of any relevant documents to [email protected].
The SEC today filed a civil enforcement action against Mattson and KS Mattson Partners LP in the Northern District of California.
Assistant U.S. Attorneys Christoffer Lee and Nikhil Bhagat are prosecuting the case with the assistance of Mimi Lam. The prosecution is the result of an investigation by the FBI, IRS-CI, and USPIS. The U.S. Attorney’s Office thanks the San Francisco Regional Office of the SEC for its assistance in the investigation.
Mattson Indictment
Nicaraguan National Charged with Assaulting Deportation Officer at ICE Facility in San JoseRead the Press Release
SAN JOSE – Francisco De-Jesus Morales has been charged with one count of forcibly assaulting a deportation officer with U.S. Immigration and Customs Enforcement (ICE).
According to a criminal complaint and court documents filed today, Morales, 25, a national of Nicaragua, assaulted the deportation officer at an ICE facility in San Jose on May 2, 2025, when the deportation officer and two other officers attempted to take Morales into custody pursuant to a warrant for Morales’s removal and deportation from the United States. Morales allegedly physically resisted arrest and attempted to flee from the deportation officers, resulting in a struggle and injuries to Morales and the officers. All three deportation officers and Morales received medical treatment for injuries sustained during the physical altercation. The deportation officers’ injuries include bruising, scrapes, an ankle stress fracture/strain, a chest contusion, and a groin injury. Morales is charged with forcibly assaulting one of the deportation officers, causing significant groin bruising.
Morales is currently in ICE custody pending removal pursuant to his deportation order.
Acting United States Attorney Patrick D. Robbins and Homeland Security Investigations (HSI) Special Agent in Charge Tatum King made the announcement.
A criminal 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 $250,000 fine for the count of assault on a federal officer inflicting bodily injury in violation of 18 U.S.C. §§ 111(a)(1) and (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 Taylor Lord and Assistant U.S. Attorney Jeff Nedrow are prosecuting the case with the assistance of Susan Kreider. The prosecution is the result of an investigation by HSI.
Man Sentenced to over Three Years in Federal Prison for Stealing More Than $1.3 Million from San Francisco Law FirmsRead the Press Release
SAN FRANCISCO – Tony Archuleta-Perkins, 49, of Palm Springs, was sentenced today to 37 months in federal prison. U.S. District Judge Jacqueline Scott Corley handed down the sentence.
Archuleta-Perkins, who was indicted in June 2024, pleaded guilty in December 2024 to one count of bank fraud in violation of 18 U.S.C. § 1344(2) and one count of engaging in monetary transactions in property derived from specified unlawful activity (money laundering) in violation of 18 U.S.C. § 1957.
Archuleta-Perkins was hired in 2017 by a San Francisco law firm and eventually became the Chief Financial Officer (CFO) of that firm as well as a related law firm. As the CFO, Archuleta-Perkins was in a position of trust and had access to the law firms’ payroll systems and end-to-end payments automation platforms. He used his position to embezzle more than $1 million while he worked at the firms. From 2017 through 2023, Archuleta-Perkins stole more than $1.3 million and used that money for, among other things, improvements to and mortgages on three houses he owned.
Acting United States Attorney Patrick D. Robbins and Federal Bureau of Investigation (FBI) Special Agent in Charge Sanjay Virmani made the announcement.
In addition to the prison term, Judge Corley also sentenced Archuleta-Perkins to a three-year period of supervised release and ordered him to pay restitution in the amount of $1,321,752.72.
Assistant U.S. Attorney Nikhil Bhagat is prosecuting the case. The prosecution is the result of an investigation by the FBI.
San Jose Executives Plead Guilty to Employment Tax CrimesRead the Press Release
SAN JOSE — Two California men pleaded guilty yesterday to not paying over employment taxes to the IRS.
The following is according to court documents and statements made in court: Lalo Valdez and Matthew Olson, both of Northern California, operated a San Jose-based health informatics and product development company that provided clinical care and technology services to clients in healthcare and academia. Valdez was the CEO and Olson the CFO. As such, both were responsible for the company’s operations, managed its internal books and records, signed checks on behalf of the company, and hired and fired employees. Both men also were responsible for withholding Social Security, Medicare, and federal income taxes from employees’ wages and paying those funds over to the government each quarter. The timely payment of quarterly employment taxes is critical to the functioning of the U.S. government, because, for example, they are the primary source of funding for Social Security and Medicare. The federal income taxes that are withheld from employees’ wages also account for a significant portion of all federal income taxes collected each year.
For every calendar quarter from the first quarter of 2017 through the second quarter of 2021, Valdez and Olson withheld these taxes from employees’ wages but did not pay them over to the IRS or report them on quarterly tax forms. Instead of paying over the taxes, Valdez and Olson used the company’s money to pay for country club memberships and season tickets to the San Jose Sharks of the National Hockey League.
During this same period, Olson also was one of the owners and operators of a day spa located in Saratoga, Calif. There, Olson was responsible for collecting and paying Social Security, Medicare, and income taxes to the IRS. From the second quarter of 2017 through the fourth quarter of 2020, however, Olson collected but did not pay them over to the IRS or report them on quarterly tax forms.
In total, Olson caused a tax loss to the IRS exceeding $2.1 million.
Valdez caused a total tax loss to the IRS of nearly $1.5 million.
Valdez and Olson are scheduled to be sentenced on Oct. 20. Both men face a maximum penalty of five years in prison as well as a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Patrick D. Robbins, Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division, and IRS Criminal Investigation Special Agent in Charge of the Oakland Field Office Linda Nguyen made the announcement.
IRS Criminal Investigation is investigating the case.
Assistant U.S. Attorney Kristina Green and Trial Attorney Mahana Weidler of the Tax Division are prosecuting the case.
California Executives Plead Guilty to Employment Tax CrimesRead the Press Release
Two California men pleaded guilty yesterday to not paying over employment taxes to the IRS.
The following is according to court documents and statements made in court: Lalo Valdez and Matthew Olson, both of Northern California, operated a San Jose-based health informatics and product development company that provided clinical care and technology services to clients in healthcare and academia. Valdez was the CEO and Olson the CFO. As such, both were responsible for the company’s operations, managed its internal books and records, signed checks on behalf of the company, and hired and fired employees. Both men also were responsible for withholding Social Security, Medicare, and federal income taxes from employees’ wages and paying those funds over to the government each quarter. The timely payment of quarterly employment taxes is critical to the functioning of the U.S. government, because, for example, they are the primary source of funding for Social Security and Medicare. The federal income taxes that are withheld from employees’ wages also account for a significant portion of all federal income taxes collected each year.
For every calendar quarter from the first quarter of 2017 through the second quarter of 2021, Valdez and Olson withheld these taxes from employees’ wages but did not pay them over to the IRS or report them on quarterly tax forms. Instead of paying over the taxes, Valdez and Olson used the company’s money to pay for country club memberships and season tickets to the San Jose Sharks of the National Hockey League.
During this same period, Olson also was one of the owners and operators of a day spa located in Saratoga, California. There, Olson was responsible for collecting and paying Social Security, Medicare, and income taxes to the IRS. From the second quarter of 2017 through the fourth quarter of 2020, however, Olson collected but did not pay them over to the IRS or report them on quarterly tax forms.
In total, Olson caused a tax loss to the IRS exceeding $2.1 million.
Valdez caused a total tax loss to the IRS of nearly $1.5 million.
Valdez and Olson are scheduled to be sentenced on Oct. 20. Both men face a maximum penalty of five years in prison as well as a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and Acting U.S. Attorney Patrick D. Robbins for the Northern District of California made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorney Mahana Weidler of the Tax Division and Assistant U.S. Attorney Kristina Green for the Northern District of California are prosecuting the case.
Alameda Man Sentenced to Four Years and Nine Months in Federal Prison for Unlawful Firearm and Ammunition PossessionRead the Press Release
OAKLAND – Adesola Kehinde was sentenced yesterday to 57 months in federal prison for unlawful possession of a firearm and ammunition as a felon. U.S. District Judge Araceli Martínez-Olguín handed down the sentence.
Kehinde, 38, of Alameda, was charged by complaint in January 2024 and by information in May 2024. On Dec. 16, 2024, Kehinde pleaded guilty to one count of being a felon in possession of a firearm and ammunition in violation of 18 U.S.C. § 922(g)(1). According to the plea agreement, Kehinde admitted that on Jan. 9, 2024, officers with the Alameda Police Department detained him while he was seated in the driver’s seat of his car, which was parked outside of his apartment building. At the time, Kehinde was on parole after serving a state prison sentence for human trafficking of a minor, threats with intent to terrorize, and robbery. Officers searched Kehinde’s car and located a loaded Glock pistol with one round in the chamber and six rounds inside the magazine inserted into the pistol.
Acting United States Attorney Patrick D. Robbins and FBI Special Agent in Charge Sanjay Virmani made the announcement.
In addition to the prison term, Judge Martínez-Olguín also sentenced Kehinde to a three-year period of supervised release and ordered him to forfeit the firearm and ammunition he possessed.
Assistant U.S. Attorney Jonah Ross is prosecuting the case with the assistance of Amala James. The prosecution is the result of an investigation by the FBI and the Alameda Police Department.
San Jose Chiropractor Pleads Guilty to Aiding and Assisting in Filing of False Tax ReturnRead the Press Release
SAN JOSE – Tae Hyun Lee pleaded guilty in federal court today to aiding and assisting in the preparation and presentation of a false tax return for the year 2019.
According to court documents and statements made in court, Lee, 62, of San Jose, a self-employed chiropractor and the sole owner and operator of a business called Gentle Chiropractic Care, hid income generated by his chiropractic practice from the individual who prepared his income tax returns and from the IRS.
In 2018, 2019, and 2020, Lee cashed more than $1.4 million in checks payable to his chiropractic practice at a check cashing business rather than depositing them into the practice’s bank account, and also deposited checks and electronic payments into his personal bank accounts. Lee then told the individual who prepared his income tax returns for those three years that all of the practice’s income had been deposited into the practice’s bank account, which was not true. Lee’s tax return preparer prepared income tax returns reporting only the income deposited into the practice’s bank account. This resulted in the taxable income and tax due reported on Lee’s income tax returns for 2018, 2019, and 2020 to be materially underreported. Specifically, Lee caused the majority of Gentle Chiropractic Care’s income during these years to be unreported on his income tax returns.
In total, Lee caused a tax loss to the IRS of at least $439,028.
Acting United States Attorney Patrick D. Robbins and IRS Criminal Investigation (IRS-CI) Special Agent in Charge of the Oakland Field Office Linda Nguyen made the announcement.
Under the plea agreement, Lee pleaded guilty to one count of aiding and assisting in the preparation of a false tax return in violation of 26 U.S.C. § 7206(2), which carries a maximum sentence of three years in prison. He is scheduled to be sentenced on Sept. 24, 2025, before U.S. District Judge P. Casey Pitts. Any sentence will 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. Attorney Michael G. Pitman is prosecuting the case with the assistance of Sahib Kaur. The prosecution is the result of an investigation by IRS-CI.
Former Delivery Driver Pleads Guilty to Defrauding San Francisco Food Delivery Company of More Than $2.5 MillionRead the Press Release
SAN JOSE – Sayee Chaitanya Reddy Devagiri pleaded guilty in federal court today to conspiring to steal more than $2.5 million from DoorDash, Inc., a San Francisco-based delivery company.
Devagiri, 30, of Newport Beach, Calif., and three other defendants were indicted by a federal grand jury in August 2024. Devagiri was charged with a single count of conspiracy to commit wire fraud in violation of 18 U.S.C. § 1349. He pleaded guilty to that count today.
In pleading guilty, Devagiri admitted to working with others in 2020 and 2021 to cause DoorDash to pay for deliveries that never occurred. At the time, Devagiri was a delivery driver for DoorDash orders. Under the scheme, Devagiri used customer accounts to place high value orders and then, using an employee’s credentials to gain access to DoorDash software, manually reassigned DoorDash orders to driver accounts that he and others controlled. Devagiri then caused the fraudulent driver accounts to report that the orders had been delivered, when they had not, and manipulated DoorDash’s computer systems to prompt DoorDash to pay the fraudulent driver accounts for the non-existent deliveries. Devagiri would then use DoorDash software to change the orders from “delivered” status to “in process” status and manually reassign the orders to driver accounts he and others controlled, beginning the process again. This procedure usually took less than five minutes, and was repeated hundreds of times for many of the orders.
The scheme resulted in fraudulent payments exceeding $2.5 million.
Acting United States Attorney Patrick D. Robbins and Federal Bureau of Investigation (FBI) Special Agent in Charge Sanjay Virmani made the announcement.
Devagiri is the third defendant to be convicted for his role in this conspiracy. Co-defendant Manaswi Mandadapu pleaded guilty to conspiracy to commit wire fraud on May 6, 2025. Tyler Thomas Bottenhorn, who was separately charged, pleaded guilty on Nov. 7, 2023.
Devagiri is next scheduled to appear before U.S. District Judge Beth Labson Freeman for a status hearing on Sept. 16, 2025. He faces a maximum statutory penalty of 20 years in prison and a fine of $250,000. Any sentence will 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. 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.
Ivorian Men Arrested for International “Sextortion” and Money Laundering Scheme Resulting in Minor’s DeathRead the Press Release
Four men in Côte d’Ivoire have been arrested on criminal charges relating to their role in an international “sextortion” scheme that targeted thousands of victims, including minors, throughout the United States, Canada, United Kingdom, France, Spain, and Italy.
In February 2022, Ryan Last, a 17-year-old high school senior from San Jose, California committed suicide hours after being sextorted online by an individual pretending to be a 20-year-old woman. Through a lengthy, coordinated investigation involving U.S. and Ivorian law enforcement, the evidence ultimately led law enforcement to identify Alfred Kassi, an Ivorian citizen living in Côte d’Ivoire, as the individual allegedly conducting the sextortion. On April 29, Kassi was arrested by Ivorian law enforcement. At the time of his arrest, Kassi allegedly still had the sextortion messages he sent to the 17-year-old victim in February 2022 on his phone.
Additionally, the investigation identified several alleged money laundering accomplices who helped Kassi move the money he received from the 17-year-old victim, who had paid $150 in order to prevent his intimate images from being disseminated. One of those alleged money launderers is Oumarou Ouedraogo, who was arrested by Ivorian law enforcement on April 25. In addition, Ivorian law enforcement arrested two other individuals, Moussa Diaby and Oumar Cisse. Both Diaby and Cisse were part of Kassi’s alleged sextortion network and admitted to their own sextortion crimes. A U.S.-based accomplice, Jonathan Kassi (unrelated to Alfred Kassi), was convicted in 2023 in a California State Court and sentenced to 18 months in jail.
The government of Côte d’Ivoire does not extradite its own citizens, so these defendants will be prosecuted in their own country under Ivorian cybercrime statutes.
Matthew R. Galeotti, Head of the Justice Department’s Criminal Division, Acting U.S. Attorney Patrick D. Robbins for the Northern District of California, and Acting Assistant Director Darren Cox of the FBI’s Criminal Investigative Division made the announcement.
The FBI is investigating the case, with substantial assistance from the San Jose Police Department, the U.S. Embassy in Abidjan, and Meta, which provided critical information that assisted with the identification of the offenders. The government of Côte d’Ivoire, specifically the Anti-Terrorist Operational Intelligence Center (CROAT), conducted the investigation and arrests in Côte d’Ivoire.
Trial Attorney Austin M. Berry of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Marissa Harris for the Northern District of California provided legal support throughout the investigation, including compiling and presenting the evidence to Ivorian authorities.
If you, your child, or someone you know is being exploited via sextortion, contact your local FBI field office, call 1-800-CALL-FBI (1-800-225-5324), or report it online at the Internet Crime Complaint Center (IC3). Additional resources can found at Financially Motivated Sextortion — FBI
All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Napa Valley Winery Owner Pleads Guilty to Aiding and Assisting in Filing of False Tax ReturnRead the Press Release
SAN FRANCISCO – Brian Fleury, 64, of Napa County, pleaded guilty in federal court today to aiding and assisting the preparation of a false tax return for the 2016 tax year.
According to court documents and statements made in court, Fleury and his spouse owned Napa Valley winery Metropolitan Wines, LLC and several vineyards also located in Napa Valley. For tax years 2014 through 2018, Fleury intentionally underreported income earned by Metropolitan Wines to his income tax preparer. Fleury directed some customers to pay for their wine by writing checks directly to Fleury instead of to Metropolitan Wines. Fleury wrote or directed his employees to write “OTB,” for “off the books,” on some of these customers’ invoices. Fleury kept these payments for himself and did not report this as income earned by Metropolitan Wines. Between 2014 and 2018, Fleury underreported his and his spouse’s income by $822,450.
Fleury also admitted that from 2007 through 2019, he failed to pay federal excise tax that was due on brandy he received, possessed, and sold. Fleury filed annual reports with the United States Department of the Treasury, Alcohol and Tobacco Tax and Trade Bureau (TTB) that falsely stated that no wine had been removed for distilling material, no wine had been produced with the addition of wine spirits, no distilled spirits were on hand, and no spirits had been sold or received in bond. Fleury knew these statements were false.
In fact, in 2007, Fleury directed that 3,983 gallons of wine be transferred to a distilled spirits plant, and later that year, the plant returned 911.33 proof gallons of brandy to Metropolitan Wines. Fleury also admitted that he had produced 2006, 2008, and 2009 vintage brandy, and that he bottled and sold brandy from 2013 through 2018 under the name “9 Fiddy” for $350 per 375 ml bottle in regular wine bottles to conceal his sale of brandy.
In total, Fleury caused a tax loss to the IRS and TTB of $211,092.
Acting United States Attorney Patrick D. Robbins, IRS Criminal Investigation (IRS-CI) Special Agent in Charge of the Oakland Field Office Linda Nguyen, IRS-CI Special Agent in Charge of the Washington, D.C. Field Office Kareem Carter, and Anthony P. Gledhill, Assistant Administrator, Field Operations for TTB made the announcement.
Fleury pleaded guilty to one count of aiding and assisting in the preparation of a false tax return in violation of 26 U.S.C. § 7206(2), which carries a maximum sentence of three years in prison. He is scheduled to be sentenced on Aug. 13, 2025, before Senior U.S. District Judge Maxine M. Chesney. Any sentence will 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. Attorney Helen L. Gilbert is prosecuting the case with the assistance of Kathy Tat. The prosecution is the result of an investigation by IRS-CI and TTB, with assistance from the Federal Bureau of Investigation.
San Jose AI Solutions Company Agrees to Pay $1.5 Million to Resolve Allegations That It Improperly Obtained Federal Grant FundsRead the Press Release
SAN FRANCISCO – Vimaan Robotics, Inc. (Vimaan), a San Jose-based company that develops computer vision and AI warehouse management solutions, has agreed to pay $1.5 million to resolve allegations that it violated the False Claims Act by improperly accepting and drawing down funds from a grant award that it was ineligible to receive.
The settlement relates to a Small Business Innovation Research (SBIR) Phase II grant that Vimaan obtained from the National Science Foundation (NSF). The terms and conditions of the SBIR grant preclude companies that are majority-owned by one or more venture capital operating companies from applying for or receiving such an award. The settlement resolves allegations by the United States that at the time Vimaan received the award on April 16, 2020, Vimaan failed to disclose that it had become majority-owned by one or more venture capital companies one month earlier, making it ineligible for the award. Between June 2020 and August 2022, the United States contends, Vimaan submitted 14 separate requests to NSF for disbursement of the award funds and falsely certified its eligibility to receive the award funds in each of these payment requests.
“Federal small business research grants awarded by NSF are designed to support and foster innovative research by small businesses, not to provide taxpayer funding for businesses primarily owned by venture capital firms,” said Acting United States Attorney Patrick D. Robbins. “When companies evade program restrictions and obtain grants even though they are not eligible, this office will vigorously enforce the False Claims Act to ensure that federal dollars go to proper recipients.”
“The SBIR program is a valuable tool in advancing NSF’s mission to promote the progress of science by increasing opportunities for small businesses to undertake cutting-edge scientific research. Entities that misrepresent their eligibility in order to obtain government funding undermine the integrity and effectiveness of the program. The NSF Office of Inspector General is committed to vigorously pursuing oversight of these taxpayer funds and I commend the U.S. Attorney’s Office for its strong support in this effort,” said Megan E. Wallace, NSF’s Acting Inspector General.
Assistant U.S. Attorney Savith Iyengar 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 NSF-OIG.
The investigation and resolution of this matter illustrate the government’s emphasis on combating fraud in federal grants. 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 involving NSF can be reported to NSF’s Office of Inspector General at https://oig.nsf.gov/contact/hotline.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Vimaan Settlement Agreement
Justice Department Declines Prosecution of Company That Self-Disclosed Export Control Offenses Committed by EmployeeRead the Press Release
Note: View the declination letter here.
The Justice Department today announced that it has declined the prosecution of Universities Space Research Association (USRA) after it self-disclosed to the Department’s National Security Division (NSD) criminal violations of U.S. export control laws committed by its former employee, Jonathan Soong. Soong pleaded guilty to willfully violating the Export Administration Regulations (EAR) by exporting U.S. Army-developed aviation software to a university in the People’s Republic of China (PRC) that had been placed on the Commerce Department’s Entity List and was sentenced to 20 months in prison.
“If we stay vigilant, all of us — including our citizens, small businesses, and large corporations — can play a critical role in protecting our country,” said Sue J. Bai, head of the Justice Department’s National Security Division. “A criminal who compromised our national security was brought to justice because his employer caught him and immediately turned him in. We decline to prosecute his employer and are ready to work together with such responsible corporate actors who are committed to joining us in this fight to protect our country from foreign adversaries.”
“USRA discovered that one of its employees was funneling sensitive aeronautics software to a Beijing university in violation of export control laws and at risk to our national security,” said Acting U.S. Attorney Patrick D. Robbins for the Northern District of California. “What the company did next made all the difference in the Government’s decision not to prosecute it: the company took swift and proactive measures to disclose the employee’s wrongdoing, provide all known facts, and cooperate – and continue to cooperate – with the government’s investigation.”
According to court documents, in April 2016, USRA contracted with the National Aeronautics and Space Administration (NASA) to, among other things, license and distribute for a fee aeronautics-related and U.S. Army-owned flight control software. Soong was employed by USRA as a program administrator under the contract and was responsible for performing due diligence on prospective purchasers to ensure that the sale or transfer of software licenses complied with applicable law, including by checking the Entity List. Soong willfully exported software subject to the EAR to Beijing University of Aeronautics and Astronautics, also known as Beihang University (Beihang), a university in the PRC, knowing that an export control license was required for the export to Beihang because it was on the Entity List. Beihang was on the Commerce Department’s Entity List due to its involvement in the development of military rocket systems and unmanned air vehicle systems. Soong further used an intermediary to complete the transfer and export of the software to Beihang to avoid detection, and embezzled tens of thousands of dollars in software license sales by directing purchasers to make payment to an account he personally owned and controlled.
This scheme continued until NASA inquired about the sales of software licenses to PRC-based purchasers and USRA began to investigate. Soong initially lied to USRA and fabricated evidence that he had conducted due diligence on the purchasers and provided it to USRA’s counsel to provide to NASA, but after USRA’s counsel investigated further and confronted Soong with evidence that contradicted his statements, he admitted to knowing that Beihang was on the Entity List when he exported the software to Beihang and that a license had been required for the export.
Within days of learning that Soong had willfully violated U.S. export control laws, and before USRA had completed its own investigation to understand the scope of the misconduct, USRA self-disclosed the crime to NSD and fully cooperated with the ensuing criminal investigation, which eventually established that Soong had acted alone at USRA. USRA’s cooperation included proactively identifying, collecting, and disclosing relevant evidence to investigators, including foreign language evidence and evidence located overseas, and providing detailed and timely responses to the government’s requests for information and evidence. USRA remediated the root cause of the misconduct by disciplining a supervisory employee who failed appropriately to supervise Soong, and by significantly improving its internal controls and compliance program. USRA also compensated the government both for the funds Soong embezzled, and for the time Soong had spent embezzling funds instead of performing his duties under USRA’s contract with NASA.
The Justice Department declined USRA’s prosecution after considering the factors set forth in the Department’s Principles of Federal Prosecution of Business Organizations and the National Security Division Enforcement Policy for Business Organizations (NSD Enforcement Policy). The NSD Enforcement Policy creates a presumption that companies that (1) voluntarily self-disclose to NSD potentially criminal violations arising out of or relating to the enforcement of export control or sanctions laws, (2) fully cooperate, and (3) timely and appropriately remediate will generally receive a non-prosecution agreement, unless aggravating factors are present. In appropriate cases, the NSD Enforcement Policy authorizes prosecutors to go further, and exercise discretion to decline a company’s prosecution. This is the second time that NSD has exercised its discretion to decline the prosecution of a company under the NSD Enforcement Policy.
The case was investigated by the Department of Commerce’s Bureau of Industry and Security; the Department of Defense’s Defense Criminal Investigative Service; and the FBI. The NASA Office of Inspector General; U.S. Army Criminal Investigation Division; U.S. Army Counterintelligence; and the Department of Homeland Security, Homeland Security Investigations provided valuable assistance.
Trial Attorney Rachel Craft of the National Security Division’s Counterintelligence and Export Control Section and Assistant U.S. Attorney Barbara Valliere for the Northern District of California prosecuted the case.
Justice Department Declines Prosecution of Company That Self-Disclosed Export Control Offenses Committed by EmployeeRead the Press Release
SAN FRANCISCO – The Justice Department today announced that it has declined the prosecution of Universities Space Research Association (USRA) after it self-disclosed to the Department’s National Security Division (NSD) criminal violations of U.S. export control laws committed by its former employee, Jonathan Soong. Soong pleaded guilty to willfully violating the Export Administration Regulations (EAR) by exporting U.S. Army-developed aviation software to a university in the People’s Republic of China (PRC) that had been placed on the Commerce Department’s Entity List and was sentenced to 20 months in prison.
“USRA discovered that one of its employees was funneling sensitive aeronautics software to a Beijing university in violation of export control laws and at risk to our national security,” said Acting U.S. Attorney Patrick D. Robbins for the Northern District of California. “What the company did next made all the difference in the Government’s decision not to prosecute it: the company took swift and proactive measures to disclose the employee’s wrongdoing, provide all known facts, and cooperate – and continue to cooperate – with the government’s investigation.”
“If we stay vigilant, all of us — including our citizens, small businesses, and large corporations — can play a critical role in protecting our country,” said Sue J. Bai, head of the Justice Department’s National Security Division. “A criminal who compromised our national security was brought to justice because his employer caught him and immediately turned him in. We decline to prosecute his employer and are ready to work together with such responsible corporate actors who are committed to joining us in this fight to protect our country from foreign adversaries.”
According to court documents, in April 2016, USRA contracted with the National Aeronautics and Space Administration (NASA) to, among other things, license and distribute for a fee aeronautics-related and U.S. Army-owned flight control software. Soong was employed by USRA as a program administrator under the contract and was responsible for performing due diligence on prospective purchasers to ensure that the sale or transfer of software licenses complied with applicable law, including by checking the Entity List. Soong willfully exported software subject to the EAR to Beijing University of Aeronautics and Astronautics, also known as Beihang University (Beihang), a university in the PRC, knowing that an export control license was required for the export to Beihang because it was on the Entity List. Beihang was on the Commerce Department’s Entity List due to its involvement in the development of military rocket systems and unmanned air vehicle systems. Soong further used an intermediary to complete the transfer and export of the software to Beihang to avoid detection, and embezzled tens of thousands of dollars in software license sales by directing purchasers to make payment to an account he personally owned and controlled.
This scheme continued until NASA inquired about the sales of software licenses to PRC-based purchasers and USRA began to investigate. Soong initially lied to USRA and fabricated evidence that he had conducted due diligence on the purchasers and provided it to USRA’s counsel to provide to NASA, but after USRA’s counsel investigated further and confronted Soong with evidence that contradicted his statements, he admitted to knowing that Beihang was on the Entity List when he exported the software to Beihang and that a license had been required for the export.
Within days of learning that Soong had willfully violated U.S. export control laws, and before USRA had completed its own investigation to understand the scope of the misconduct, USRA self-disclosed the crime to NSD and fully cooperated with the ensuing criminal investigation, which eventually established that Soong had acted alone at USRA. USRA’s cooperation included proactively identifying, collecting, and disclosing relevant evidence to investigators, including foreign language evidence and evidence located overseas, and providing detailed and timely responses to the government’s requests for information and evidence. USRA remediated the root cause of the misconduct by disciplining a supervisory employee who failed appropriately to supervise Soong, and by significantly improving its internal controls and compliance program. USRA also compensated the government both for the funds Soong embezzled, and for the time Soong had spent embezzling funds instead of performing his duties under USRA’s contract with NASA.
The Justice Department declined USRA’s prosecution after considering the factors set forth in the Department’s Principles of Federal Prosecution of Business Organizations and the National Security Division Enforcement Policy for Business Organizations (NSD Enforcement Policy). The NSD Enforcement Policy creates a presumption that companies that (1) voluntarily self-disclose to NSD potentially criminal violations arising out of or relating to the enforcement of export control or sanctions laws, (2) fully cooperate, and (3) timely and appropriately remediate will generally receive a non-prosecution agreement, unless aggravating factors are present. In appropriate cases, the NSD Enforcement Policy authorizes prosecutors to go further, and exercise discretion to decline a company’s prosecution. This is the second time that NSD has exercised its discretion to decline the prosecution of a company under the NSD Enforcement Policy.
The case was investigated by the Department of Commerce’s Bureau of Industry and Security; the Department of Defense’s Defense Criminal Investigative Service; and the FBI. The NASA Office of Inspector General; U.S. Army Criminal Investigation Division; U.S. Army Counterintelligence; and the Department of Homeland Security, Homeland Security Investigations provided valuable assistance.
Trial Attorney Rachel Craft of the National Security Division’s Counterintelligence and Export Control Section and Assistant U.S. Attorney Barbara Valliere for the Northern District of California prosecuted the case.
Former Antioch Police Officer Found Guilty of Conspiracy to Distribute Anabolic Steroids and Obstruction of JusticeRead the Press Release
OAKLAND – A federal jury today convicted former Antioch police officer Devon Wenger of one count of conspiracy to distribute and possess with the intent to distribute anabolic steroids and one count of obstruction of justice. The jury’s verdict follows a three-day trial before Senior U.S. District Judge Jeffrey S. White.
Wenger, 33, was previously employed as a police officer with the Antioch Police Department. According to court documents and evidence presented at trial, Wenger conspired with Daniel Harris, who was at the time also a police officer with the Antioch Police Department, to distribute anabolic steroids to a third individual, and then deleted evidence of this conspiracy from his cellular phone.
“Instead of upholding the law, as he swore an oath to do, Devon Wenger conspired with a fellow officer to sell illegal anabolic steroids. When the FBI arrived at his home to investigate him, he then doubled down by destroying evidence of his crime. Crimes like these by a police officer have a corrosive effect on the public’s trust in law enforcement. Thanks to today’s jury conviction, Mr. Wenger will now face sentencing for his violations of law,” said Acting United States Attorney Patrick D. Robbins.
“When Devon Wenger broke the law and then tried to cover his tracks, he didn’t just commit a crime — he betrayed the trust of the community he was sworn to serve. After learning the FBI was outside his home with a search warrant, he chose to delete evidence rather than come clean. That kind of misconduct corrodes public confidence in law enforcement,” said FBI Special Agent in Charge Sanjay Virmani. “Today’s guilty verdict makes clear that the FBI will hold accountable anyone who abuses the authority and responsibility of public service.”
According to the evidence presented at trial, in February 2022, Wenger set up the sale of anabolic steroids, a Schedule III controlled substance, between Harris and a third individual. Harris was also charged in this case and pleaded guilty to his role in the conspiracy on Sept. 17, 2024. Law enforcement officials seized the package of anabolic steroids destined for Harris before they arrived, although Wenger continued to communicate with Harris about supplying the third individual with anabolic steroids, including offering to give this individual some of Wenger’s own while they waited for the delayed package.
On March 23, 2022, at 8:03 a.m., the Federal Bureau of Investigation (FBI) began calling and sending text messages to Wenger telling him that they were outside of his residence with a warrant. It was not until 9:00 a.m. that Wenger appeared for the FBI to seize Wenger’s cellular phone. Later forensic examination of that device showed that specific entries related to the anabolic steroid distribution conspiracy had been deleted: specifically, all text messages between Wenger and Harris, all text messages between Wenger and the third individual he was trying to supply with steroids, the contacts for both Harris and the third individual, and recent call log entries for Wenger’s most recent phone calls with the third individual.
The jury convicted Wenger of all counts charged in this case: one count of conspiracy to distribute and possess with the intent to distribute anabolic steroids in violation of 21 U.S.C. §§ 846, 841(a)(1), and (b)(1)(E)(i) and one count of destruction, alteration, or falsification of records in federal investigations (obstruction of justice) in violation of 18 U.S.C. § 1519.
Wenger is scheduled to appear on May 6, 2025, for a hearing on whether to remand him to custody pending sentencing. He faces a maximum sentence of 10 years in prison on the conspiracy to distribute anabolic steroids count and 20 years in prison on the obstruction of justice count. Any sentence will 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.
The case is being prosecuted by the National Security & Special Prosecutions Section and the Oakland Branch of the United States Attorney’s Office. This prosecution is the result of an investigation by the FBI and the Office of the Contra Costa County District Attorney.
* * *
Separately, Wenger is scheduled to appear before Senior U.S. District Judge Jeffrey S. White on May 6, 2025, for a status conference in United States v. Wenger, 23-cr-00269, which charges Wenger with one count of conspiracy against rights in violation of 18 U.S.C. § 241 and one count of deprivation of rights under color of law in violation of 18 U.S.C. § 242. The United States v. Wenger, 23-cr-00269 case is set for trial on July 21, 2025.
These charges against Wenger were brought as part of an investigation into the Antioch and Pittsburgh police departments that resulted in multiple charges against 10 current and former officers and employees of these two police departments for various crimes ranging from the use of excessive force to fraud. The status of these cases, all of which are before Senior U.S. District Judge Jeffrey S. White, is below:
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 AmiriConvicted at trial 8/8/24, remanded to custody pending sentencing, which is set for 6/3/25Amanda Theodosy a/k/a NashSentenced to 3 months custody, 3 years supervised release 11/15/24Samantha PetersonSentenced to time served, 3 years supervised release 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 WilliamsPleaded guilty 11/28/23, status conference 8/19/25Anabolic Steroid 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 HarrisPleaded guilty 9/17/24, status conference 8/19/2521 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 WengerConvicted at trial 4/30/25, sentencing pendingCivil 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 AmiriConvicted at trial 3/14/25 on counts 2 and 5, remanded to custody pending sentencing, which is set for 6/3/2518 U.S.C. §§ 241 (Conspiracy Against Rights), 242 (Deprivation of Rights Under Color of Law)Eric RomboughPleaded guilty 1/14/25, status conference 8/19/2518 U.S.C. §§ 241 (Conspiracy Against Rights), 242 (Deprivation of Rights Under Color of Law)Devon WengerTrial 7/21/25Anabolic Steroid 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 HarrisPleaded guilty 9/17/24, status conference 8/19/25San Jose Engineer Pleads Guilty to Bombings of PG&E Transformers, Causing Property Damage and Widespread Power OutagesRead the Press Release
Peter Karasev, 38, a U.S. citizen residing in San Jose, pleaded guilty in the Northern District of California today to federal charges related to two separate bombings of PG&E electrical transformers in late 2022 and early 2023.
Karasev was indicted on Oct. 19, 2023, and pleaded guilty today to two counts of willful destruction of an energy facility. According to the plea agreement, 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. In both attacks, Karasev used homemade explosive devices to cause significant destruction and widespread power outages in the San Jose area.
“Attacks on America’s critical infrastructure are attacks targeting the heart of our nation’s security. They will be treated like the grave threat they are to our country,” said Sue J. Bai, head of the Justice Department’s National Security Division. “With today’s guilty plea, the defendant admitted to putting thousands of lives and businesses at risk and endangering essential services for countless more. The Justice Department will not rest until we disrupt and hold accountable those participating in these dangerous attacks.”
“The defendant admitted to using homemade explosives to intentionally damage two electrical transformers and cause significant disruptions to more than 1,500 residences and businesses in San Jose. The search of his home following his arrest uncovered a staggering trove of explosive devices and hazardous chemicals. There can be no mistake as to the extent of destruction that could have resulted,” said Acting U.S. Attorney Patrick D. Robbins for the Northern District of California. “We applaud the swift work of law enforcement officers to investigate these threats to critical infrastructure, bring the defendant to justice, and prevent further harm to the residents of San Jose.”
“With today’s guilty plea, Karasev admits to using explosives to attack two electrical facilities which resulted in power outages to numerous homes and businesses in the San Jose area,” said Assistant Director David J. Scott of the FBI’s Counterterrorism Division. “Americans rely on essential infrastructure as they go about their daily lives. The FBI works with our partners to protect that infrastructure, and we will hold accountable anyone who seeks to damage it.”
The first attack, which occurred near the Westfield Oakridge Mall, resulted in the destruction of a PG&E transformer and left more than 1,450 customers without power for nearly 16 hours. The second attack, carried out near Plaza Del Rey shopping center, caused further destruction, damaging a transformer and adjacent building, and interrupted power to dozens more residents and businesses.
In connection with his plea, Karasev admitted that the attacks were premeditated and deliberate. He conducted extensive internet searches regarding explosive materials, infrastructure attacks, and geopolitical conflicts. Upon his arrest on March 1, 2023, law enforcement agents discovered multiple homemade explosive devices, over 300 pounds of explosive precursor materials, hazardous chemicals, firearms, and remote detonation devices in his home, vehicle, and office.
Under the terms of the plea agreement, Karasev faces a stipulated sentence of between 102 and 126 months (approximately 8.5 to 10.5 years) in federal prison. He also agreed to pay restitution of no less than $104,076.26 for the damages caused. Sentencing is scheduled for Aug. 19.
The FBI and the San Jose Police Department are investigating the case.
Assistant U.S. Attorney Anne C. Hsieh for the Northern District of California and Trial Attorney Jacob Warren of the National Security Division’s Counterterrorism Section are prosecuting the case.
San Jose Engineer Pleads Guilty to Bombings of PG&E Transformers, Causing Property Damage and Widespread Power OutagesRead the Press Release
SAN JOSE – Peter Karasev, 38, of San Jose, pleaded guilty today to federal charges related to two separate bombings of PG&E electrical transformers in late 2022 and early 2023.
Karasev was indicted on Oct. 19, 2023, and pleaded guilty today to two counts of willful destruction of an energy facility. According to the plea agreement, 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. In both attacks, Karasev used homemade explosive devices to cause significant destruction and widespread power outages in the San Jose area.
“The defendant admitted to using homemade explosives to intentionally damage two electrical transformers and cause significant disruptions to more than 1,500 residences and businesses in San Jose. The search of his home following his arrest uncovered a staggering trove of explosive devices and hazardous chemicals. There can be no mistake as to the extent of destruction that could have resulted,” said Acting United States Attorney Patrick D. Robbins. “We applaud the swift work of law enforcement officers to investigate these threats to critical infrastructure, bring the defendant to justice, and prevent further harm to the residents of San Jose.”
“Attacks on America’s critical infrastructure are attacks targeting the heart of our nation’s security. They will be treated like the grave threat they are to our country,” said Sue J. Bai, head of the Justice Department’s National Security Division. “With today’s guilty plea, the defendant admitted to putting thousands of lives and businesses at risk and endangering essential services for countless more. The Justice Department will not rest until we disrupt and hold accountable those participating in these dangerous attacks.”
“With today’s guilty plea, Karasev admits to using explosives to attack two electrical facilities which resulted in power outages to numerous homes and businesses in the San Jose area,” said Assistant Director David J. Scott of the FBI’s Counterterrorism Division. “Americans rely on essential infrastructure as they go about their daily lives. The FBI works with our partners to protect that infrastructure, and we will hold accountable anyone who seeks to damage it.”
“Peter Karasev’s deliberate attacks on essential power systems were calculated acts of domestic sabotage that disrupted vital services and threatened public safety,” said FBI Special Agent in Charge Sanjay Virmani. “Today’s guilty plea is the result of persistent investigative work and strong collaboration with our local and federal partners. We remain committed to identifying and disrupting those who seek to inflict harm on our communities through violence or chaos.”
The first attack, which occurred near the Westfield Oakridge Mall, resulted in the destruction of a PG&E transformer and left more than 1,450 customers without power for nearly 16 hours. The second attack, carried out near Plaza Del Rey shopping center, caused further destruction, damaging a transformer and adjacent building, and interrupted power to dozens more residents and businesses.
In connection with his plea, Karasev admitted that the attacks were premeditated and deliberate. He conducted extensive internet searches regarding explosive materials, infrastructure attacks, and geopolitical conflicts. Upon his arrest on March 1, 2023, law enforcement agents discovered multiple homemade explosive devices, over 300 pounds of explosive precursor materials, hazardous chemicals, firearms, and remote detonation devices in his home, vehicle, and office.
Under the terms of the plea agreement, Karasev faces a stipulated sentence of between 102 and 126 months (approximately 8.5 to 10.5 years) in federal prison. He also agreed to pay restitution of no less than $104,076.26 for the damages caused. Sentencing is scheduled for Aug. 19.
The FBI and the San Jose Police Department are investigating the case.
Assistant U.S. Attorney Anne C. Hsieh, with the assistance of Sara Slattery, and Trial Attorney Jacob Warren of the National Security Division’s Counterterrorism Section are prosecuting the case.