Southern District of California
Press releases recorded for this federal judicial district.
U.S. Attorney’s Office Filed 71 Border-Related Cases This WeekRead the Press Release
SAN DIEGO – Federal prosecutors in the Southern District of California filed 71 border-related cases this week, including charges of bringing in aliens for financial gain, reentering the U.S. after deportation, and importation of controlled substances.
The U.S. Attorney’s Office for the Southern District of California is the fourth-busiest federal district, largely due to a high volume of border-related crimes. This district, encompassing San Diego and Imperial counties, shares a 140-mile border with Mexico. It includes the San Ysidro Port of Entry, the world’s busiest land border crossing, connecting San Diego (America’s eighth largest city) and Tijuana (Mexico’s second largest city).
In addition to reactive border-related crimes, the Southern District of California also prosecutes a significant number of proactive cases related to terrorism, organized crime, drugs, white-collar fraud, violent crime, cybercrime, human trafficking and national security. Recent developments in those and other significant areas of prosecution can be found here.
A sample of border-related arrests this week:
- On August 22, Adan Alejandro Cardenas, a United States citizen, was arrested and charged with Importation of Controlled Substance. According to a complaint, Customs and Border Protection officers discovered 251 pounds of cocaine concealed in the bed of the 2014 GMC Sierra truck he was driving as he applied for entry to the U.S. at the San Ysidro Port of Entry.
- On August 24, Christopher Jaymes Boegeman, a United States citizen, was arrested and charged with Bringing in Aliens for Financial Gain. According to a complaint, Boegeman presented a U.S. passport card belonging to another person on behalf of his passenger as he applied for admission in the vehicle lanes at the San Ysidro Port of Entry. The complaint said the passenger was a woman from India who had paid the defendant a smuggling fee.
- On August 26, Nancy Beatriz Ortega Olazagasti, a Mexican citizen, was arrested and charged with Importation of a Controlled Substance. According to a complaint, Customs and Border Protection officers discovered 153 pounds of methamphetamine concealed in a non-factory compartment under the floor of the driver side and passenger side seats of the 2020 Nissan Rogue she was driving as she applied for entry to the U.S. at the Tecate Port of Entry.
The immigration cases were referred or supported by federal law enforcement partners, including Homeland Security Investigations (HSI), Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), Customs and Border Protection, U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the support and assistance of state and local law enforcement partners.
Indictments and criminal complaints are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Justice Department and FBI Seize Platforms Operated and Used by China State-Sponsored Hackers to Target U.S. Critical InfrastructureRead the Press Release
SAN DIEGO — The Justice Department and FBI announced court-authorized domain seizures today to deny malicious cyber actors access to two complementary hacking platforms known as “QScan” and “QTRouter,” used to target U.S. critical infrastructure and other sensitive networks.
As described in court documents unsealed in the Southern District of California, a People’s Republic of China (PRC) state-sponsored group known as “QTFY,” employed by China-based Nanjing Xinjiuwei Network Technology Company (南京鑫玖维网络科技有限公司), created and operated QScan and QTRouter. Among the victims of QTFY computer intrusion activity are the National Aeronautics and Space Administration, Federal Reserve, Department of Energy, Department of Justice, Department of Health and Human Services, National Institutes of Health, and the U.S. Senate.
“State-sponsored malicious hackers preying on America’s critical infrastructure will be stopped and prosecuted. We are here to ensure security for the American people and will use every tool we have to keep that promise,” said Attorney General Todd Blanche. “Federal law enforcement investigated and disabled the PRC’s malicious software, the latest in a series of technical operations to dismantle indiscriminate hacking activities sponsored by the People’s Republic of China.”
“Today we announced the disruption of a global botnet and hacking platform used by Chinese state-sponsored hackers to target U.S. critical infrastructure,” said FBI Director Kash Patel. “These tools were used by PRC cyber actors to hide the origin of their attacks. Thanks to the work of FBI San Diego, FBI Cyber Division, and DOJ partners, we seized adversary infrastructure and shut these platforms down. Today’s action is just the latest technical operation against PRC-sponsored hacking - and in support of President Trump’s Cyber Strategy for America, the FBI is surging efforts to shape adversary behavior and defend the homeland in cyberspace.”
“Today’s announcement demonstrates the Justice Department’s steadfast commitment to going on the offensive against cyber threats to the national security,” said Assistant Attorney General for National Security John A. Eisenberg. “These court-authorized seizures deny PRC-linked hackers access to tools they use to mount online attacks against our Nation’s critical infrastructure.”
“We’re taking the fight to PRC-sponsored cybercriminals to protect the critical services Americans rely on every day,” said U.S. Attorney Adam Gordon for the Southern District of California.
“The FBI remains relentless in our efforts to counter nation state cyber actors, taking decisive action against those threatening the United States and our critical infrastructure,” said Special Agent in Charge Mark Remily of the FBI San Diego Field Office. “Through complex investigations, aggressive technical operations, and strong partnerships, FBI San Diego will continue to identify, disrupt, and impose costs on our cyber adversaries. We are committed to dismantling the tools behind these state-sponsored crimes and protecting the American people from malicious cyber activity.”
According to court documents, QTFY offers computer hacking services to its paying customers, including the PRC’s Ministry of State Security and the People’s Liberation Army. These computer hacking services include QScan and QTRouter, which work in conjunction. QScan scans and automatically infects thousands of “internet-of-things” (IoT) devices worldwide, which are then added to the QTRouter network of QTFY-controlled devices. QTRouter consists of these compromised IoT devices, as well as commercial proxy service devices and leased virtual private servers. QTRouter then serves as an “obfuscation network” – meaning it allows QTFY and other malicious cyber actors to conceal the PRC-origin of their computer intrusion activities because the malicious communications appear to originate from computers (such as those compromised by QScan) that are outside of the PRC and may even be local to the targeted networks. Because the seized domains were hard-coded into both the QScan and QTRouter malware and used for essential tasks such as communication and authentication, the court-authorized seizures made QScan and QTRouter inoperable.
This disruption announced today is among a series of court-authorized technical operations against indiscriminate hacking activities by the PRC. In 2025, the FBI removed PlugX surveillance malware from over 4,000 U.S. computers after they had been infected by the PRC-sponsored hacker group Mustang Panda. In 2024, the FBI disabled a botnet consisting of hundreds of thousands of infected internet-of-things devices, which the PRC-sponsored hacking group Flax Typhoon was providing to customers in the Chinese government. In 2023, the FBI disrupted a different botnet used by the PRC-sponsored hacking group Volt Typhoon to conceal their exploitation of U.S. and foreign critical infrastructure. Also today, the FBI and National Security Agency published a cybersecurity advisory providing indicators-of-compromise by QTFY based on their analysis of QTFY malicious cyber activity dating back to at least 2018. In addition, Lumen Technologies’ threat intelligence group, Black Lotus Labs, published a description of QTFY’s tactics, techniques, and procedures.
The FBI’s San Diego Field Office and Cyber Division, the U.S. Attorney’s Office for the Southern District of California, and the National Security Cyber Section of the Justice Department’s National Security Division investigated this hacking activity and led this disruption effort.
Note: View the affidavit here.
Justice Department and FBI Seize Platforms Operated and Used by China State-Sponsored Hackers to Target U.S. Critical InfrastructureRead the Press Release
The Justice Department and FBI announced court-authorized domain seizures today to deny malicious cyber actors access to two complementary hacking platforms known as “QScan” and “QTRouter,” used to target U.S. critical infrastructure and other sensitive networks. As described in court documents unsealed in the Southern District of California, a People’s Republic of China (PRC) state-sponsored group known as “QTFY,” employed by China-based Nanjing Xinjiuwei Network Technology Company (南京鑫玖维网络科技有限公司), created and operated QScan and QTRouter. Among the targets of QTFY are the National Aeronautics and Space Administration, Federal Reserve, Department of Energy, Department of Justice, Department of Health and Human Services, National Institutes of Health, and the U.S. Senate.
“State-sponsored malicious hackers preying on America’s critical infrastructure will be stopped and prosecuted. We are here to ensure security for the American people and will use every tool we have to keep that promise,” said Attorney General Todd Blanche. “Federal law enforcement investigated and disabled the PRC’s malicious software, the latest in a series of technical operations to dismantle indiscriminate hacking activities sponsored by the People’s Republic of China.”
“Today we announced the disruption of a global botnet and hacking platform used by Chinese state-sponsored hackers to target U.S. critical infrastructure,” said FBI Director Kash Patel. “These tools were used by PRC cyber actors to hide the origin of their attacks. Thanks to the work of FBI San Diego, FBI Cyber Division, and DOJ partners, we seized adversary infrastructure and shut these platforms down. Today’s action is just the latest technical operation against PRC-sponsored hacking - and in support of President Trump’s Cyber Strategy for America, the FBI is surging efforts to shape adversary behavior and defend the homeland in cyberspace.”
“Today’s announcement demonstrates the Justice Department’s steadfast commitment to going on the offensive against cyber threats to the national security,” said Assistant Attorney General for National Security John A. Eisenberg. “These court-authorized seizures deny PRC-linked hackers access to tools they use to mount online attacks against our Nation’s critical infrastructure.”
“We’re taking the fight to PRC sponsored cybercriminals to protect the critical services Americans rely on every day,” said U.S. Attorney Adam Gordon for the Southern District of California.
“The FBI remains relentless in our efforts to counter nation state cyber actors, taking decisive action against those threatening the United States and our critical infrastructure,” said Special Agent in Charge Mark Remily of the FBI San Diego Field Office. “Through complex investigations, aggressive technical operations, and strong partnerships, FBI San Diego will continue to identify, disrupt, and impose costs on our cyber adversaries. We are committed to dismantling the tools behind these state-sponsored crimes and protecting the American people from malicious cyber activity.”
According to court documents, QTFY offers computer hacking services to its paying customers, including the PRC’s Ministry of State Security and the People’s Liberation Army. These computer hacking services include QScan and QTRouter, which work in conjunction. QScan scans and automatically infects thousands of “internet-of-things” (IoT) devices worldwide, which are then added to the QTRouter network of QTFY-controlled devices. QTRouter consists of these compromised IoT devices, as well as commercial proxy service devices and leased virtual private servers. QTRouter then serves as an “obfuscation network” – meaning it allows QTFY and other malicious cyber actors to conceal the PRC-origin of their computer intrusion activities because the malicious communications appear to originate from computers (such as those compromised by QScan) that are outside of the PRC and may even be local to the targeted networks. Because the seized domains were hard-coded into both the QScan and QTRouter malware and used for essential tasks such as communication and authentication, the court-authorized seizures made QScan and QTRouter inoperable.
This disruption announced today is among a series of court-authorized technical operations against indiscriminate hacking activities by the PRC. In 2025, the FBI removed PlugX surveillance malware from over 4,000 U.S. computers after they had been infected by the PRC-sponsored hacker group Mustang Panda. In 2024, the FBI disabled a botnet consisting of hundreds of thousands of infected internet-of-things devices, which the PRC-sponsored hacking group Flax Typhoon was providing to customers in the Chinese government. In 2023, the FBI disrupted a different botnet used by the PRC-sponsored hacking group Volt Typhoon to conceal their exploitation of U.S. and foreign critical infrastructure. Also today, the FBI and National Security Agency published a cybersecurity advisory providing indicators-of-compromise by QTFY based on their analysis of QTFY malicious cyber activity dating back to at least 2018. In addition, Lumen Technologies’ threat intelligence group, Black Lotus Labs, published a description of QTFY’s tactics, techniques, and procedures: www.lumen.com/blog/en-us/the-infrastructure-quartermaster-inside-a-china-nexus-state-enablement-model.
The FBI’s San Diego Field Office and Cyber Division, the U.S. Attorney’s Office for the Southern District of California, and the National Security Cyber Section of the Justice Department’s National Security Division investigated this hacking activity and led this disruption effort.
Note: View the affidavit here.
Edits have been made to ensure this press release accurately reflects the government’s allegations in the affidavit in support of the domain seizures.
DermTech Inc. to Pay up to $5M to Resolve Allegations It Submitted False Claims to Medicare for Unreliable Skin Cancer TestsRead the Press Release
SAN DIEGO — A skin cancer testing company formerly known as DermTech Inc., which was headquartered in San Diego, has agreed to settle allegations that it violated the False Claims Act by knowingly submitting false claims for unreliable skin cancer tests to the Medicare program. DermTech is now liquidating as DTech Liquidating Inc. after filing for Chapter 11 bankruptcy in the District of Delaware in June 2024. As part of the resolution announced today, the United States received an Allowed Class Three General Unsecured Claim of $5,038,011 in the bankruptcy proceeding.
The settlement resolves allegations that DermTech submitted claims to Medicare for skin cancer tests despite knowing the tests had quality control issues. First, from October 2022 to March 2023, DermTech billed Medicare for skin cancer tests that it conducted after switching to an unvalidated positive control range for one of the test’s two key melanoma markers. Without a validated positive control range, it is impossible to confirm that the positive control is working and thus impossible to verify whether the test results are accurate. Second, from January 2020 to February 2022, DermTech billed Medicare for skin cancer tests that did not contain enough patient RNA to be tested but still generated positive or negative test results. For both categories of tests, DermTech reported results to patients. When concerns were raised about these tests, DermTech neither retracted the test results nor adequately refunded Medicare.
“The Justice Department is committed to protecting Medicare patients, especially in an area as serious as skin cancer testing,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “We will hold accountable health care providers who put patients at risk by billing Medicare for grossly substandard services.”
“This company billed Medicare for unreliable tests that may have misled patients and their doctors,” said U.S. Attorney Adam Gordon for the Southern District of California. “This settlement is a perfect example of why the Department’s focus on fraud against the taxpayer directly leads to improved health and safety for Medicare patients.”
“Patients must be able to rely on the accuracy and integrity of diagnostic testing when making critical healthcare decisions,” said Acting Deputy Inspector General for Investigations Miranda L. Bennett of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Submitting claims to Medicare for tests that fail to meet established clinical standards undermines patient safety and public trust. HHS-OIG remains committed to ensuring that healthcare providers deliver services that meet federal requirements and to pursuing accountability for alleged misconduct.”
“DermTech Inc. allegedly administered inadequate skin cancer tests that led to the fraudulent billing of Medicare, raising serious concerns about the company’s practices,” said Special Agent in Charge Mark Remily of the FBI San Diego Field Office. “FBI San Diego, along with our law enforcement partners, remains committed to investigating any company whose illicit actions may undermine the integrity of our healthcare system and ensure they are held accountable.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by a former DermTech employee. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned U.S. ex rel. Luong v. DermTech, Inc. et al., No. 3:23-cv-01404 (S.D. Cal.). Ms. Luong will receive 20% of the recovery received from the bankruptcy court in connection with the settlement.
The claims resolved by the settlement pertain to DermTech Inc., a company that is now bankrupt. These claims do not pertain to DermTech LLC, a company that purchased DermTech Inc.’s assets in 2024 as part of the bankruptcy proceedings.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Southern District of California, with assistance from the Federal Bureau of Investigation and the Department of Health and Human Services, Office of the Inspector General.
This year the Administration launched the Task Force to Eliminate Fraud and the National Fraud Enforcement Division to enhance the Administration’s war on fraud, waste, and abuse in federal programs. When unscrupulous actors exploit these programs for their own financial gain, they defraud the government, harm the people these programs are designed to aid and protect, and undermine American businesses that play by the rules. The Civil Division’s FCA enforcement plays a critical role in combatting such fraudulent schemes, recovering billions of dollars for the American taxpayers, and holding wrongdoers accountable. FCA matters will continue to be on the forefront of the battle against fraud, and the Civil Division’s FCA work will support and advance the mission of the Task Force to Eliminate Fraud and the National Fraud Enforcement Division.
This matter was handled by Assistant U.S. Attorney Stephen H. Wong for the Southern District of California and Department of Justice Trial Attorney Clare Elizondo.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Two Arrested in Years-Long Scheme to Smuggle Protected Reptiles Across U.S.-Mexico BorderRead the Press Release
SAN DIEGO – Georgina Bribiesca Chavez of Tijuana, Mexico, appeared in federal court today to face a wildlife trafficking charge after she allegedly participated in a years-long scheme to smuggle exotic reptiles into and out of the United States. Chavez’s alleged wildlife trafficking partner, Salvador Pelayo of Chula Vista, was arrested in July and faces a similar federal charge for trafficking exotic wildlife.
Chavez was arrested last week while attempting to cross the U.S.-Mexico border with a vehicle containing dozens of concealed reptiles, including four venomous, yellow-blotched palm pit vipers; three caimans; one baby crocodile; and more than 60 other reptiles protected under international treaties because of declining populations worldwide.
According to court documents, on the morning of August 10, 2026, Chavez applied for entry into the United States at the San Ysidro Port of Entry. She told a U.S. Customs and Border Protection (CBP) officer that she had nothing to declare. While checking her identification, the officer discovered that Chavez had an outstanding arrest warrant related to a long-term wildlife trafficking investigation. She was taken into custody, and her vehicle was seized.
The following morning, CBP officers assigned to the seized-vehicle lot inspected Chavez’s red Volkswagen. Inside, they discovered a concealed factory compartment behind the rear bench seat. The compartment contained pillowcases that had been knotted closed and sealed with tape. One of the pillowcases was moving. The officer called for backup.
Later that day, the pillowcases were transported to the San Diego Zoo for examination and handling. Zoo staff carefully opened the packages and discovered the 60 abronia lizards, four venomous yellow-blotched palm pit vipers, three caimans, one baby crocodile, and one indigo snake. Several of these species are protected under international treaties because of their endangered or threatened status.
Even after her arrest, Chavez never told CBP officers about the live animals in her car, leaving them abandoned for nearly 24 hours in the August heat in San Ysidro. All three caimans died before the San Diego Zoo could provide care. As of last week, the remaining animals were stable and remained under the Zoo’s care.
“These animals were not cargo—they were living creatures subjected to dangerous conditions for profit,” said U.S. Attorney Adam Gordon.
At today’s hearing, U.S. Magistrate Judge Jill L. Burkhardt ordered Chavez held without bond pending trial. Chavez and Pelayo have both pleaded not guilty.
According to court documents, Chavez and Pelayo began working together to traffic wildlife into the U.S. to sell to American buyers in 2023. Investigators with the U.S. Fish and Wildlife Service began an undercover investigation about 18 months ago, targeting their trafficking activity. Over the course of the investigation, Pelayo and Chavez were involved in several undercover buys of protected turtles and were surveilled by investigators sending and receiving wildlife at shipping centers around San Diego.
On one occasion in March 2025, as alleged in Chavez’s complaint, undercover agents purchased four protected Mexican box turtles from Pelayo and their partner in Mexico; Chavez met the undercover agent in person to deliver the live animals just hours after she crossed the U.S.-Mexico border. The agent paid Chavez $2,600 cash in exchange for the turtles. After the undercover buy, the turtles were transferred to the Oakland Zoo for care and keeping, where they were identified as protected species native to Mexico. The turtles were in bad health, likely because they were caught in the wild and had contracted a respiratory disease. By May 2025, all four of the turtles had died.
On another occasion also in March 2025, as alleged in Pelayo’s complaint, another undercover agent purchased four protected Mexican and Yucatan box turtles from their partner in Mexico to be shipped to New York. The turtles, which are native to Mexico, were smuggled into the U.S. On March 11, 2025, Pelayo used a fake name, “Jose Lopez,” to ship a box containing the four turtles to the undercover agent in New York. The agent received the turtles the next day and transferred them to the Buffalo Zoo for care and keeping.
Pelayo and Chavez are believed to have trafficked exotic wildlife together for several years and court documents allege that they made tens of thousands of dollars in profits from the sale of those animals to buyers in the United States. According to court records, at times, they would buy protected wildlife that was sourced in the United States and export it to Mexico, where customers in Mexico would purchase the rare animals. Chavez was observed picking up Eastern box turtles native to New York at a shipping center in San Diego, which she smuggled into Mexico in the trunk of her red Volkswagen.
Chavez is due in court on August 27, 2026, at 9:30 a.m., for a preliminary hearing before Judge Burkhardt. Pelayo’s next hearing is on October 2, 2026, at 10:30 a.m. before U.S. District Judge Cathy A. Bencivengo.
The U.S. Attorney’s Office for the Southern District of California and the U.S. Fish and Wildlife Service are members of the Department of Justice’s Trade Fraud Task Force, a cross-agency law enforcement effort that also involves the National Fraud Enforcement Division, the Criminal and Civil Divisions, the Energy and Natural Resources Division, the Department of Homeland Security, and U.S. Attorney’s Offices nationwide. The Task Force was created to leverage all of the Department’s tools and authorities to prevent trade fraud that deprives the government of vital revenue, threatens critical domestic industries, undermines consumer confidence, and weakens national security. The Task Force is designed to pursue enforcement actions against parties who seek to evade tariffs and other duties, as well as smugglers who seek to import prohibited goods into the American economy. The Justice Department encourages whistleblowers to alert the government to credible allegations of fraud, including utilizing the qui tam provisions of the False Claims Act or through the Criminal Division’s Corporate Whistleblower Program at [email protected] using the form available here.
This case is being prosecuted by Assistant U.S. Attorney Emily W. Allen for the Southern District of California.
The U.S. Fish and Wildlife Service – Office of Law Enforcement is investigating this case with assistance from the National Oceanic and Atmospheric Administration and the California Department of Fish and Wildlife.
DEFENDANTS
Salvador Pelayo, Case No. 26-mj-4326-DDL Age: 28 Chula Vista, CA
Georgina Bribiesca Chavez, Case No. 26-mj-4598-JLB Age: 66 Tijuana, Mexico
SUMMARY OF CHARGES
Lacey Act Trafficking – Title 16, U.S.C., Sections 3372(a)(1) and 3373(d)(1)(B)
Maximum penalty: Five years in prison and $250,000 fine
INVESTIGATING AGENCY
U.S. Fish and Wildlife Service
Six Charged in Gang-Related RICO Conspiracy Involving Drugs, Guns and ViolenceRead the Press Release
SAN DIEGO – Five alleged members and associates of the “El Cajon Locos” criminal street gang have been indicted on federal racketeering charges in connection with drug and firearms trafficking and violent crimes. A sixth defendant has been charged with witness tampering and witness harassment.
The defendants are charged under the Racketeer Influenced and Corrupt Organizations Act (RICO), which makes it a federal crime to participate in an enterprise through a pattern of racketeering activity, including drug trafficking, firearms offenses and violent crimes. All defendants are in custody.
The prosecution is the result of an investigation by state and federal authorities into alleged criminal activity by the El Cajon Locos (ECLS), including offenses allegedly committed on behalf of the gang between April and November 2025.
The indictment alleges that ECLS and its associates have primarily operated out of the Terraza Hills Apartments in El Cajon. According to the indictment, ECLS and its associates committed violent acts such as assaulting and robbing an individual believed to have cooperated with law enforcement, and robbing another person of drugs, guns, and money.
In addition, the indictment charges defendant Nicole Cristina Gracia with witness tampering and witness harassment. According to the indictment, the defendant intimidated, harassed, threatened and persuaded a robbery victim to mislead law enforcement by falsely claiming that a video depicting a robbery was staged for a music video.
DEFENDANTS Case Number 26-CR-2808-LL
Defendant 1 – SEALED Defendant 2 – SEALEDJose Morales
aka “Pee Wee”
Age: 49San Diego, CALuis Baltierrez
aka “Snow Owl”
Age: 40San Diego, CAOscar Mendoza Alatorre Sr.
aka “Lurch”
Age: 43San Diego, CANicole Christine GraciaAge: 34San Diego, CASUMMARY OF CHARGES
Conspiracy to Conduct Enterprise Affairs Through a Pattern of Racketeering Activity – 18 U.S.C. §1962(d)
Maximum penalty: Twenty years in prison and $250,000 fine
*Redacted defendants, Jose Morales, Luis Baltierrez, and Oscar Mendoza Alatorre Sr.
Felon in Possession of a Firearm — 18 U.S.C. §922(g)(1)
Maximum Penalty: Fifteen years in prison and $250,000 fine
*Redacted defendant
Possessing a Firearm During and In Relation to a Drug Trafficking Crime – 18 U.S.C. §924(c)(1)(A)
Maximum penalty: Life in prison with a five-year mandatory minimum and $250,000 fine
*Redacted defendant
Possession with Intent to Distribute Methamphetamine — 21 U.S.C. §841(a)(1)
Maximum Penalty: Life in prison and $10 million fine
*Redacted defendant
Witness Tampering – 18 U.S.C. §1512(b)(3)
Maximum Penalty: Twenty years in prison and $250,000 fine
*Nicole Cristina Gracia
Harassing a Witness – 18 U.S.C. §1512(d)(2)
Maximum Penalty: Three years in prison and $100,000 fine
*Nicole Cristina Gracia
INVESTIGATING AGENCIES
El Cajon Police Department
Federal Bureau of Investigation
Bureau of Alcohol, Tobacco, Firearms and Explosives
Homeland Security Investigations
San Diego County Sheriff’s Office
This case is part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. HSTF San Diego comprises agents and officers from FBI, Homeland Security Investigations, DEA, ATF, U.S. Marshals, Department of Defense, U.S. Postal Inspection Service, Naval Criminal Investigative Service, IRS Criminal Investigation, U.S. Coast Guard, U.S. Customs and Border Protection and Interpol, with the prosecution being led by the United States Attorney’s Office for the Southern District of California.
Project Safe Neighborhoods (PSN) is the Department of Justice’s nationwide initiative that brings federal, state, local, and tribal law enforcement, prosecutors, and other public safety partners together to coordinate efforts to combat violent crime and make communities safe. Coordinated by U.S. Attorneys’ offices in each of the 94 federal districts, PSN is tailored to particular communities to strategically address specific violent crime and public safety challenges. As a key component of Operation Take Back America, PSN serves a central role in the Department’s commitment to make our country safe. PSN emphasizes three core principles: rapid federal response to violent crime and criminal offenders; strong, strategic partnerships among law enforcement at all levels; and accountability and deterrence through the prosecution of the most serious, readily provable offenses and other strategies. These efforts complement and strengthen President Trump’s Homeland Security Task Forces, ensuring a comprehensive federal response to the most pressing public safety issues facing communities.
U.S. Attorney’s Office Filed 116 Border-Related Cases This WeekRead the Press Release
SAN DIEGO – Federal prosecutors in the Southern District of California filed 116 border-related cases this week, including charges of bringing in aliens for financial gain, reentering the U.S. after deportation, and importation of controlled substances.
The U.S. Attorney’s Office for the Southern District of California is the fourth-busiest federal district, largely due to a high volume of border-related crimes. This district, encompassing San Diego and Imperial counties, shares a 140-mile border with Mexico. It includes the San Ysidro Port of Entry, the world’s busiest land border crossing, connecting San Diego (America’s eighth largest city) and Tijuana (Mexico’s second largest city).
In addition to reactive border-related crimes, the Southern District of California also prosecutes a significant number of proactive cases related to terrorism, organized crime, drugs, white-collar fraud, violent crime, cybercrime, human trafficking and national security. Recent developments in those and other significant areas of prosecution can be found here.
A sample of border-related arrests this week:
- On August 7, Apolinar Diaz Lopez, a Mexican citizen, was arrested and charged with Importation of a Controlled Substance. According to a complaint, Customs and Border Protection officers discovered 180 pounds of methamphetamine concealed throughout the vehicle he was driving as he applied for entry to the U.S. at the Otay Mesa Port of Entry.
- On August 10, Lino Vega-Martinez, a Mexican citizen, was arrested and charged with Deported Alien Found in the United States. According to a complaint, Border Patrol agents found Vega-Martinez hiding in large bushes approximately four and a half miles east of the Otay Mesa Port of Entry and three miles north of the United States/Mexico International Boundary.
- On August 11, Carmen Ivette Hernandez-Vergara, a Mexican citizen, was arrested and charged with Bringing in Aliens for Financial Gain. According to a complaint, Customs and Border Protection officers found a Chinese national hiding under a blanket in the trunk of the vehicle Hernandez-Vergara was driving as she applied for entry into the United States at the Otay Mesa Port of Entry.
The immigration cases were referred or supported by federal law enforcement partners, including Homeland Security Investigations (HSI), Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), Customs and Border Protection, U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the support and assistance of state and local law enforcement partners.
Indictments and criminal complaints are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
La Jolla Teen Pleads Guilty to Harassing La Jolla Sea LionRead the Press Release
SAN DIEGO – Tyler Muehl, an 18-year-old from La Jolla who appeared in a viral video repeatedly kicking at a California sea lion in La Jolla Cove, pleaded guilty in federal court today to violating the Marine Mammal Protection Act’s prohibition on harassment of wildlife.
“Federal crime. Federal consequences,” said U.S. Attorney Adam Gordon.
“National Oceanic and Atmospheric Administration’s Fisheries Office of Law Enforcement takes all violations of the Marine Mammal Protection Act very seriously,” said NOAA-Fisheries Office of Law Enforcement West Coast Division Assistant Director Eric Morgan. “Intentionally striking or kicking a marine mammal is not only illegal—it is dangerous for the well-being of the animal.”
According to his plea agreement, Muehl admitted that late in the evening on July 22, 2026, he repeatedly kicked at the sea lion that was peacefully sitting on the sea wall in La Jolla Cove near Ellen Browning Scripps Park. Muehl approached the animal with his hands at high guard as if preparing to box with or fight the animal. As Muehl approached, he referred to himself as “Max Holloway,” the Ultimate Fighting Championship (UFC) fighter.
The defendant admitted that he kicked at the sea lion four different times and that he made contact while kicking at the animal. Muehl twice forcefully kicked at the sea lion’s face, which caused the sea lion to rear flinch and immediately recoil. After the second kick, the sea lion turned and tried to flee, but Muehl chased after the animal and kicked at it a third time. As the sea lion tried to get away, it stumbled on the sea wall as it fled. Muehl kicked at the sea lion a fourth time and continued to chase the animal, ending his pursuit only when the sea lion escaped over the sea wall and made it to the beach. Muehl agreed as part of his plea agreement that a video capturing the event was a fair and accurate recording of what occurred.
Muehl pleaded guilty to the charge of “knowingly and unlawfully tak[ing] a marine mammal in waters or on lands under the jurisdiction of the United States in that he did harass and hunt” a California sea lion (Zalphus californianus). Under the Marine Mammal protection Act, the word “take” includes harassment, which means “any act of pursuit, torment, or annoyance which: (i) has the potential to injure a marine mammal or marine mammal stock in the wild; or (ii) has the potential to disturb a marine mammal or marine mammal stock in the wild by causing disruption of behavioral patterns, including, but not limited to, migration, breathing, nursing, breeding, feeding, or sheltering.”
The defendant is scheduled to be sentenced by U.S. Magistrate Judge Jill L. Burkhardt on October 20, 2026, at 9:30 am.
This case is being prosecuted by Assistant U.S. Attorneys Emily Allen and Elizabet Brown from the Southern District of California.
DEFENDANT Case Number 26CR3151-JO-JLB
Tyler Muehl Age: 18 La Jolla, CA
SUMMARY OF CHARGES
Violation of the Marine Mammal Protection Act (misdemeanor) – Title 16, U.S.C., Sections 1372(a)(2)(A) and 1375(b)
Maximum penalty: One year in prison and $100,000 fine
INVESTIGATING AGENCY
National Oceanic and Atmospheric Administration
U.S. Attorney’s Office Filed 107 Border-Related Cases This WeekRead the Press Release
SAN DIEGO – Federal prosecutors in the Southern District of California filed 107 border-related cases this week, including charges of bringing in aliens for financial gain, reentering the U.S. after deportation, and importation of controlled substances.
The U.S. Attorney’s Office for the Southern District of California is the fourth-busiest federal district, largely due to a high volume of border-related crimes. This district, encompassing San Diego and Imperial counties, shares a 140-mile border with Mexico. It includes the San Ysidro Port of Entry, the world’s busiest land border crossing, connecting San Diego (America’s eighth largest city) and Tijuana (Mexico’s second largest city).
In addition to reactive border-related crimes, the Southern District of California also prosecutes a significant number of proactive cases related to terrorism, organized crime, drugs, white-collar fraud, violent crime, cybercrime, human trafficking and national security. Recent developments in those and other significant areas of prosecution can be found here.
A sample of border-related arrests this week:
- On August 1, Oscar Salado and Brayan Manuel Castro Sanchez, Mexican nationals, were arrested and charged with Attempted Bringing in Aliens for Financial Gain. According to a complaint, Salado and Castro were the captains of a smuggling vessel that was intercepted by the U.S. Coast Guard near the entrance of Quivira Basin in Mission Bay. The nine undocumented aliens aboard the vessel included the defendants plus Luz Mayda Andres Ignacio, Jorge Garcia Santiago and Everado Gonzalez-Gonzalez, who were charged with Attempted Reentry after Deportation.
- On August 4, Jose Alexis Rojas Palomera, a United States citizen, was arrested and charged with Importation of a Controlled Substance. According to a complaint, Customs and Border Protection officers discovered 70.33 pounds of fentanyl, 29.85 pounds of cocaine, and 24.52 pounds of methamphetamine concealed in the spare tire, quarter panels, fuel tank, rear seat, fire wall area and center console of the 2021 Volkswagen Jetta she was driving as she applied for entry to the U.S. at the San Ysidro Port of Entry.
- On August 5, Gustavo Espinoza Hernandez, a United States citizen, was arrested and charged with Importation of Controlled Substance. According to a complaint, Customs and Border Protection officers discovered 74.91 pounds of methamphetamine and 23.63 pounds of fentanyl concealed in the driver side floor, front passenger floor, front passenger seat, passenger backrest, passenger rear seat, and passenger backseat of the 2019 Volkswagen Atlas he was driving as he applied for entry to the U.S. at the San Ysidro Port of Entry.
The immigration cases were referred or supported by federal law enforcement partners, including Homeland Security Investigations (HSI), Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), Customs and Border Protection, U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the support and assistance of state and local law enforcement partners.
Indictments and criminal complaints are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Ex-CBP Officer Sentenced for Opening His Inspection Lane to Cartel Drug SmugglersRead the Press Release
SAN DIEGO – Former U.S. Customs and Border Protection Officer Jesse Clark Garcia was sentenced in federal court today to nine years in prison for allowing drug-laden vehicles to pass through his inspection lane at the Tecate Port of Entry on behalf of the Sinaloa Cartel.
The sentencing follows a long‑term, multi‑agency investigation that uncovered a significant corruption scheme involving Garcia and his co-defendant, then-Customs and Border Protection (CBP) Officer Diego Bonillo. Both officers pleaded guilty in July 2025, with Garcia admitting that since at least 2021, he provided the Sinaloa Cartel-linked drug trafficking organization with his duty schedules and lane assignments so vehicles carrying cocaine, methamphetamine, and fentanyl could pass through his lanes unchecked. Bonillo was sentenced to 15 years in prison in November 2025.
“Officer Garcia betrayed his oath, his fellow officers, and his country. Officer Garcia’s conduct warranted this significant sentence,” said U.S. Attorney Adam Gordon.
To coordinate with the traffickers, both defendants used a secret emoji-based code in text messages to discreetly communicate their shift and lane assignments. The cartel then routed drug-laden vehicles through those lanes, where the defendants allowed them to enter the United States without inspection.
Garcia also exploited CBP’s flexible duty-switching policies to place himself in inspection lanes where he was not scheduled to work. Other times, he falsely claimed technical issues prevented required checks, allowing narcotics to enter the United States despite mandatory system alerts.
In exchange for his assistance, the Garcia received at least $10,000 for each drug-filled vehicle he allowed to pass through the port. Evidence further showed that his illicit proceeds funded a lifestyle far beyond his government salary, including luxury purchases, a high-end vehicle, a San Diego residence, co-ownership of an equine racing business, and construction of a ranch in Mexico.
As the investigation progressed, the Garcia attempted to evade law enforcement. He stopped reporting for duty, ignored inquiries from CBP supervisors, and was observed driving into Mexico in a fully packed vehicle in late March 2024. On May 2, 2024, Mexican authorities—acting on a request from the United States and pursuant to a federal warrant—arrested the defendant and transferred him to U.S. custody later that same evening.
On July 8, 2025, Garcia pleaded guilty to nine felony counts, including conspiracy to import controlled substances and multiple counts of importation and aiding and abetting. As part of his plea agreement, he admitted facilitating the entry of substantial quantities of controlled substances, including at least 100 kilograms of fentanyl, 107 kilograms of methamphetamine, and 270 kilograms of cocaine.
DHS Inspector General Joseph V. Cuffari, Ph.D., said, “DHS employees who abuse their positions and betray the public’s trust will be held accountable for their actions. The Office of Inspector General will continue to relentlessly root out corruption. We appreciate the continued partnership between DHS OIG and our law enforcement partners in bringing these individuals to justice.”
“Jesse Clark Garcia showed total disregard for the oath he took as a CBP Officer to protect our communities when he knowingly and repeatedly allowed cocaine, methamphetamine, and fentanyl into our country,” said Special Agent in Charge Mark Remily of the FBI San Diego Field Office. “FBI San Diego and our partners work tirelessly to ensure those individuals dishonoring the badge are held accountable. The corrupt few do not represent the whole of the federal law enforcement workforce. Today’s sentence demonstrates the FBI’s commitment to rooting out those unworthy individuals and paving the way for justice to be served.”
According to Special Agent in Charge Sara Esparagoza, U.S. Customs and Border Protection, Office of Professional Responsibility, San Diego Field Office, “The Office of Professional Responsibility is unwavering in its commitment to upholding the highest standards within our ranks. Today’s events underscore our dedication to rooting out corruption and ensuring that those who betray the public trust are held accountable.”
This case was prosecuted by Assistant U.S. Attorneys Shauna R. Prewitt, Sean Van Demark, and Bianca Calderon-Peñaloza.
DEFENDANT Case Number 24-CR-0908-RBM
Jesse Clark Garcia Age: 38 San Diego, CA
SUMMARY OF CHARGES
Conspiracy to Import Controlled Substances – Title 21, United States Code, Sections 952, 960, and 963
Maximum Penalty: Life in prison with a 10-year mandatory minimum
Importation of Controlled Substances – Title 21, United States Code, Sections 952 and 960
Maximum Penalty: Life in prison with a 10-year mandatory minimum
INVESTIGATING AGENCIES
Federal Bureau of Investigation – Border Corruption Task Force
Department of Homeland Security – Office of Inspector General
U.S. Customs and Border Protection’s Office of Professional Responsibility
U.S. Border Patrol – San Diego Sector Intelligence Unit
Homeland Security Investigations – SDNET
Drug Enforcement Administration
Homeland Security Investigations – Hermosillo Attaché
U.S. Attorney’s Office Filed 115 Border-Related Cases This WeekRead the Press Release
SAN DIEGO – Federal prosecutors in the Southern District of California filed 115 border-related cases this week, including charges of bringing in aliens for financial gain, reentering the U.S. after deportation, and importation of controlled substances.
The U.S. Attorney’s Office for the Southern District of California is the fourth-busiest federal district, largely due to a high volume of border-related crimes. This district, encompassing San Diego and Imperial counties, shares a 140-mile border with Mexico. It includes the San Ysidro Port of Entry, the world’s busiest land border crossing, connecting San Diego (America’s eighth largest city) and Tijuana (Mexico’s second largest city).
In addition to reactive border-related crimes, the Southern District of California also prosecutes a significant number of proactive cases related to terrorism, organized crime, drugs, white-collar fraud, violent crime, cybercrime, human trafficking and national security. Recent developments in those and other significant areas of prosecution can be found here.
A sample of border-related arrests this week:
- On July 24, Wilfredo Rivera-Herrera, a citizen of El Salvador, was arrested and charged with Deported Alien Found in the United States. According to a complaint, Border Patrol agents encountered Rivera entering the United States illegally about half a mile north of the border, east of the Otay Mesa Port of Entry. Rivera was previously deported to Mexico in December 2025.
- On July 28, Mariela De Anda Madrigal, a Mexican citizen, was arrested and charged with Importation of a Controlled Substance. According to a complaint, Customs and Border Protection officers discovered 40 pounds of fentanyl concealed in the passenger side undercarriage and engine filter box of the 2013 Kia Optima she was driving as she applied for entry to the U.S. at the San Ysidro Port of Entry.
- On July 30, Adrian Balderas-Zazueta, a Mexican national with a Border Crossing Card, was arrested and charged with Bringing in Aliens for Financial Gain. According to a complaint, Customs and Border Protection officers discovered a 15-year-old boy concealed in a non-factory compartment of the dashboard of the van Balderas was driving as he applied for admittance to the United States at the Otay Mesa Port of Entry. The boy told authorities he had to ask the defendant for a rag to cover a hot metal pipe he was laying on during transport.
The immigration cases were referred or supported by federal law enforcement partners, including Homeland Security Investigations (HSI), Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), Customs and Border Protection, U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the support and assistance of state and local law enforcement partners.
Indictments and criminal complaints are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
CEO of Cross-Border Currency Exchange Business Arrested in Murder-for-Hire PlotRead the Press Release
SAN DIEGO— Marcos Arturo Kleiman Tronllan, chief executive officer of MoneyFlip LLC, a registered Money Services Business (MSB) offering cross-border currency exchange services, was arrested in Miami this morning in connection with a federal complaint filed in San Diego alleging that Kleiman hired a hitman to murder someone over an unpaid debt.
Kleiman, a Mexican citizen and lawful permanent resident of the United States who previously worked and lived in San Diego, was taken into custody by Homeland Security Investigations agents and Homeland Security Task Force partners.
During an ongoing investigation into money exchange businesses in San Diego and Imperial counties, agents identified Kleiman as a suspected money launderer. According to the complaint, Kleiman previously owned and operated a licensed money service business known as MXN Financial LLC, which was an international wholesale currency dealer and currency exchange operating within the Southern District of California. In 2025, MXN Financial LLC changed its name to MoneyFlip LLC, where Kleiman remains the CEO.
Investigators suspected that Kleiman used his business to engage in cross-border currency transactions that evaded Bank Secrecy Act filing requirements and to launder illicit proceeds from drug sales that were further placed and layered into the financial system through money service businesses near the U.S-Mexico border.
Photograph depicting supposed murder victim lying dead in a field with a banner covering his body with the Spanish phrase “Por ser Rata,” which translates to “For being a thief.”
In February of 2026, undercover Homeland Security Investigations agents contacted Kleiman, asking him to convert United States dollars into cryptocurrency. These undercover agents made representations to Kleiman that their dollars came from drug sales and among many statements Kleiman made indicating he understood the money’s source, he said “Give me the major details. I need to know if . . .what you have is clean or if it’s dirty. I mean, I don’t get scared, dude.”
To facilitate the illicit financial transactions, Kleiman allegedly created a unique email account, shared its password with the undercover agents, and announced that they would communicate by leaving draft emails in the account so that no emails were ever sent. In total, Kleiman converted approximately $750,000 of United States currency into cryptocurrency and caused the transmission of those crypto coins into an undercover federal agent’s wallet. Kleiman charged a 10 percent fee.
During the money laundering discussions, Kleiman allegedly asked undercover federal agents if they would help recover a debt from a Mexican businessman and kill the man. Kleiman agreed to pay $40,000 to kidnap and murder the businessman, with two $5,000 “deposits” to be paid in advance.
In May 2026, Kleiman arranged for a third party to deliver a $5,000 cash “deposit” to one of the undercover agents in San Diego, the complaint said. Then, in early July of 2026, one of the undercover agents asked Kleiman for a second $5,000 deposit to “reserve the savages” and told Kleiman “whether [the victim] pays or not he will be left dead on the side of the road.” Kleiman responded by telling the undercover agent, “I will get those 5 ready for you in 2–3 weeks.”
According to the complaint, Kleiman later paid the second “deposit” for the murder. On July 28, 2026, the undercover agents showed Kleiman three photographs and one video purporting to show the victim captured, tortured and killed. One of the agents then told Kleiman that “they already killed the guy, so those people need to get paid.” Kleiman responded, “Okay. Count on…count on it.” The next day, July 29, 2026, Kleiman delivered a $5,000 cash payment to the undercover agents and transmitted approximately 25,000 USDT into an undercover cryptocurrency wallet as the final payments for the victim’s murder.
This case is being prosecuted by Assistant U.S. Attorneys Michael Deshong and Christopher Beeler, and Daniel Casillas contributed significantly to the case.
DEFENDANT Case Number 26-MJ-4495
Marcos Arturo Kleiman Tronllan Age: 40 Miami, Florida
SUMMARY OF CHARGES
Murder-for-Hire—Title 18, U.S.C., Section 1958(a)
Maximum penalty: Ten years in prison and $250,000 fine
INVESTIGATING AGENCIES
Homeland Security Investigations
U.S. Postal Inspection Service
Drug Enforcement Administration
U.S. Customs and Border Protection
Internal Revenue Service—Criminal Investigation
Imperial County Sheriff’s Office
Brawley Police Department
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
This investigation is part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. HSTF San Diego comprises agents and officers from FBI, Homeland Security Investigations, DEA, ATF, U.S. Marshals, Department of Defense, U.S. Postal Inspection Service, Naval Criminal Investigative Service, IRS Criminal Investigation, U.S. Coast Guard, U.S. Customs and Border Protection and Interpol, with the prosecution being led by the United States Attorney’s Office for the Southern District of California.
Spring Valley Man Charged with Distributing Potent Synthetic Opioid that Resulted in Overdose Death of Pacific Beach ResidentRead the Press Release
SAN DIEGO – A federal grand jury returned an indictment today charging Matthew Ray Calas of Spring Valley with distributing a powerful synthetic opioid—N-Pyrrolidino Protonitazene—that resulted in the death of a 67-year-old San Diego resident.
According to court records, Calas advertised drugs for sale on Craigslist using coded language. In text messages with the victim, Calas offered to sell the victim “red devil nitazene,” a smokeable crystal powder. The victim was found on the floor holding drug paraphernalia, suggesting he died shortly after ingesting the substance. Three months later, Calas sold more of the “Red Devil” to an undercover law enforcement officer.
Calas is also charged with Possession with Intent to Distribute Fentanyl, Butonitazene, and Methamphetamine; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; and Felon in Possession of a Firearm and Ammunition.
N-Pyrrolidino Protonitazene (often abbreviated NPP) is a synthetic opioid in the nitazene family. Nitazenes are a class of laboratory-made opioids that were originally developed decades ago in pharmaceutical research but were generally not approved for medical use. Some newer nitazene analogs have emerged in the illicit drug supply and are associated with overdose deaths. It is extremely potent and has opioid effects similar to fentanyl and other powerful opioids. Naloxone (Narcan) can help reverse opioid overdose effects from NPP, though multiple doses may sometimes be needed with very potent opioids.
Special agents and officers with the Drug Enforcement Administration’s Overdose Response Team led the investigation. This case is the result of ongoing efforts by the U.S. Attorney’s Office, the San Diego County District Attorney’s Office, the Drug Enforcement Administration, Homeland Security Investigations, the San Diego Police Department, the La Mesa Police Department, National Guard Counterdrug Task Force, the California Department of Health Care Services, and Naval Criminal Investigative Service to investigate and prosecute the distribution of dangerous illegal drugs—fentanyl in particular—that result in overdose deaths. The Drug Enforcement Administration created the Overdose Response Team as a response to the increase in overdose deaths in San Diego County.
This case is being prosecuted by Assistant U.S. Attorney Keith D. Ellison.
DEFENDANT Case Number 25CR4692-DMS
Matthew Ray Calas Age: 44 Spring Valley, CA
SUMMARY OF CHARGES
Counts 1, 2, and 4
Title 21, U.S.C., Secs. 841(a)(l) – Possession with Intent to Distribute Fentanyl, Butonitazine, and Methamphetamine
Maximum Penalty: Twenty years in prison
Count 3
Title 21, U.S.C., Secs. 841(a)(l), (b)(1)(C) – Distribution of N-Pyrrolidino Protonitazene Resulting in Death
Maximum Penalty: Life in prison; Mandatory minimum 20 years
Count 5
Title 18, U.S.C., Sec. 924(c)(l) – Possession of a Firearm in Furtherance of a Drug Trafficking Crime
Maximum Penalty: Mandatory minimum five years in prison
Count 6
Title 18, U.S.C., Sec. 922(g)(l) – Felon in Possession of a Firearm and Ammunition
Maximum penalty: Ten years in prison
INVESTIGATING AGENCIES
Drug Enforcement Administration
San Diego Police Department
Homeland Security Investigations
California National Guard Counterdrug Task Force
California Department of Health Care Services
La Mesa Police Department
San Diego County District Attorney’s Office
Naval Criminal Investigative Service
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
This investigation is part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. HSTF San Diego comprises agents and officers from FBI, Homeland Security Investigations, DEA, ATF, U.S. Marshals, Department of Defense, U.S. Postal Inspection Service, Naval Criminal Investigative Service, IRS Criminal Investigation, U.S. Coast Guard, U.S. Customs and Border Protection and Interpol, with the prosecution being led by the United States Attorney’s Office for the Southern District of California.
Estimated $20 Million Worth of Cocaine Seized from Commercial Truck at BorderRead the Press Release
CALEXICO – Federal law enforcement officers seized more than half a ton of cocaine worth more than $20 million hidden in the floorboards of a commercial truck and attached flatbed trailer at the Calexico Port of Entry.
It was the second-largest cocaine seizure in 2026 in the Southern District of California. The largest seizure was in May when more than a ton of cocaine estimated to be worth $45 million was discovered in connection with a subterranean cross-border tunnel.
In the most recent case, the driver and only occupant of the truck, Jose Manuel Lopez Lopez, was arrested and charged with illegally importing cocaine into the United States.
The amount of cocaine seized is considered “a tremendous amount of drugs, even by the standards of this district,” according to the government’s motion to detain the defendant. Lopez entered a not-guilty plea at his arraignment in federal court yesterday. A detention hearing is scheduled for August 3 at 10 a.m. before U.S. Magistrate Judge Lupe Rodriguez Jr.
In addition to the hidden cocaine, the trailer was loaded with 269 bundles of rebar . Customs and Border Protection officers, working with agents from Homeland Security Investigations and the Drug Enforcement Administration, X-rayed the trailer and observed anomalies in the floorboards. A drug-sniffing dog alerted to the trailer. After unloading the rebar, officers unscrewed the planks from the wooden floor of the trailer and discovered they were stuffed with drugs. In total, 366 packages of cocaine weighing 1002.13 pounds (454.56 kilograms) were removed from the trailer.
This case is being prosecuted by Assistant U.S. Attorneys Paul Benjamin and Lawrence Casper.
DEFENDANT Case Number 26-mj-08705
Jose Manuel Lopez Lopez Age: 44 Mexicali, Mexico
SUMMARY OF CHARGES
Importation of Cocaine – Title 21, U.S.C., Sections 952 and 960
Maximum penalty: Life in prison; Mandatory minimum 10 years
INVESTIGATING AGENCIES
Customs and Border Protection
Homeland Security Investigations
Drug Enforcement Administration
*The charges and allegations contained in an indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
This case was investigated and prosecuted by the California Homeland Security Task Force (HSTF) as part of Operation Take Back America. HSTFs were established by President Trump in Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. Operation Take Back America is a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime.
U.S. Attorney’s Office Filed 122 Border-Related Cases This WeekRead the Press Release
SAN DIEGO – Federal prosecutors in the Southern District of California filed 122 border-related cases this week, including charges of bringing in aliens for financial gain, reentering the U.S. after deportation, and importation of controlled substances.
The U.S. Attorney’s Office for the Southern District of California is the fourth-busiest federal district, largely due to a high volume of border-related crimes. This district, encompassing San Diego and Imperial counties, shares a 140-mile border with Mexico. It includes the San Ysidro Port of Entry, the world’s busiest land border crossing, connecting San Diego (America’s eighth largest city) and Tijuana (Mexico’s second largest city).
In addition to reactive border-related crimes, the Southern District of California also prosecutes a significant number of proactive cases related to terrorism, organized crime, drugs, white-collar fraud, violent crime, cybercrime, human trafficking and national security. Recent developments in those and other significant areas of prosecution can be found here.
A sample of border-related arrests this week:
- On July 19, Marcos Chavez-Nieto, a Mexican citizen, was arrested and charged with Deported Alien found in the U.S. According to a complaint, Border Patrol agents encountered Chavez entering the United States illegally in the mountains east of the Otay Mesa Port of Entry, after having been ordered removed from the United States in 2020.
- On July 20, Rosario Lopez Gamez and Jose Manuel Aguero Garcia, Mexican nationals, were arrested and charged with Attempted Bringing in Aliens for Financial Gain. According to a complaint, Lopez and Aguero were the captains of a smuggling vessel that was intercepted by the U.S. Coast Guard about six miles off the coast of Point Loma. The five undocumented aliens aboard the vessel included Jeremy Marin Avilez, who was charged with Attempted Reentry after Deportation. He was previously deported in 2024 from Texas.
- On July 21, Marly Soledad Cruz Guardado, a United States citizen, was arrested and charged with Importation of a Controlled Substance. According to a complaint, Customs and Border Protection officers found more than 133 pounds of methamphetamine and almost nine pounds of cocaine concealed inside the doors, dashboard, glove compartment, firewall and quarter panels of her Volkswagen Tiguan as she applied for entry into the United States at the San Ysidro Port of Entry.
The immigration cases were referred or supported by federal law enforcement partners, including Homeland Security Investigations (HSI), Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), Customs and Border Protection, U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the support and assistance of state and local law enforcement partners.
Indictments and criminal complaints are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Fallbrook Woman Sentenced to Prison for Multi-Year Fraud Against Customers of Her Porsche Restoration and Resale BusinessRead the Press Release
SAN DIEGO – Fallbrook business owner Andrea Nicole Doherty was sentenced in federal court today to 21 months in prison for defrauding customers of her former Porsche restoration and resale business and pocketing more than $827,000.
“She took customers for a ride. Today, justice brought the trip to an end,” said U.S. Attorney Adam Gordon.
"Ms. Doherty’s long-running fraud was a deliberate scheme that exploited her customers’ trust and left her victims with significant financial losses,” said Special Agent in Charge Mark Remily of the FBI San Diego Field Office. “The FBI will relentlessly pursue anyone who chooses deception over lawful business practices through close coordination with investigative partners, such as the California Department of Motor Vehicles – Criminal Investigation, who worked this case side by side with FBI agents. Today’s sentence demonstrates that if you defraud consumers, you will be found, investigated, and held fully accountable.”
In her plea agreement, Doherty, 38, admitted that she took over CPR Classic from her father after his death in 2021. Doherty did business as CPR Classic, which was never registered as a corporation or a limited liability company, restoring classic Porsches and selling them on consignment from its storefront in Fallbrook. In December, Doherty pleaded guilty to three counts of wire fraud, relating to three specific vehicles sold on consignment by the defendant through CPR Classic.
During 2022 and 2023, Doherty sold a 1973 Porsche 911E Targa to two different buyers, accepting payment from both without informing or paying the seller. The seller eventually transferred the vehicle’s title after receiving a check from Doherty, which bounced when he attempted to cash it.
In February 2023, Doherty admitted that she agreed to sell a 1972 Porsche 911S for its owner. She found a buyer the next day who wired her $280,000 within a week. Although this buyer received the vehicle, Doherty did not transfer legal title and admitted that she had not used the wired funds to pay the seller. Instead, in October 2023, Doherty sold the vehicle again to another buyer, who wired her $275,000, part of which she used to pay the seller, who then transferred title to the October 2023 buyer, unaware of the February 2023 sale.
Also in 2023, Doherty admitted that she sold a 1983 Porsche 930T Slantnose on consignment for $130,000, without telling (or paying) the owner. To complete the sale, Doherty forged the seller’s signature on the transfer of title document. More than a year later, this buyer contacted the vehicle’s owner, who then learned that his car had been sold and delivered to the buyer despite still being listed as available for sale on the CPR Classic website.
CPR Classic’s vehicle dealer license was suspended by the California Department of Motor Vehicles in September 2024, and it ceased operations soon thereafter.
As a part of her plea agreement, Doherty agreed to pay restitution not only to her five victims but also to more than 50 additional former CPR Classic customers. By the time of her sentencing, she had agreed to make restitution to additional former customers who came forward after her guilty plea.
At the sentencing hearing this afternoon, U.S. District Judge Andrew G. Schopler ordered Doherty to pay restitution to 66 individuals in the total amount of $9,951,763.04.
This case was prosecuted by Special Assistant United States Attorney Jeffrey D. Hill.
DEFENDANT Case Number 25cr4683-AGS
Andrea Nicole Doherty Age: 38 Fallbrook, CA
SUMMARY OF CHARGES
Wire Fraud – Title 18, U.S.C., Section 1343 (three counts)
Maximum penalty: Twenty years in prison and a $250,000 fine per count
INVESTIGATING AGENCIES
Federal Bureau of Investigation
California Department of Motor Vehicles – Criminal Investigations
U.S. Attorney’s Office Filed 111 Border-Related Cases This WeekRead the Press Release
SAN DIEGO – Federal prosecutors in the Southern District of California filed 111 border-related cases this week, including charges of bringing in aliens for financial gain, reentering the U.S. after deportation, and importation of controlled substances.
The U.S. Attorney’s Office for the Southern District of California is the fourth-busiest federal district, largely due to a high volume of border-related crimes. This district, encompassing San Diego and Imperial counties, shares a 140-mile border with Mexico. It includes the San Ysidro Port of Entry, the world’s busiest land border crossing, connecting San Diego (America’s eighth largest city) and Tijuana (Mexico’s second largest city).
In addition to reactive border-related crimes, the Southern District of California also prosecutes a significant number of proactive cases related to terrorism, organized crime, drugs, white-collar fraud, violent crime, cybercrime, human trafficking and national security. Recent developments in those and other significant areas of prosecution can be found here.
A sample of border-related arrests this week:
- On July 11, Saul Castro Valenzuela was arrested and charged with Attempted Bringing in Aliens for Financial Gain. According to a complaint, Castro Valenzuela was the captain of a white sport fishing vessel that was transporting 21 undocumented aliens. The vessel was intercepted by the U.S. Coast Guard as it entered Mission Bay. Sixteen of the passengers had previously been ordered removed from the United States and were arrested and charged with Attempted Entry after Deportation.
- On July 12, Salvador Lopez Chee, a United States citizen, was arrested and charged with Importation of a Controlled Substance. According to a complaint, Customs and Border Protection officers discovered 131 pounds of cocaine in the walls of his Ford F-150 truck when he applied for entry into the United States at the San Ysidro Port of Entry.
- On July 15, Hector Bejerano-Bejerano (aka Bejarano-Bejarano), a Mexican national, was arrested and charged with Deported Alien Found in the United States. According to a complaint, Border Patrol agents encountered the defendant 2.5 miles north of the border and 5 miles west of the Tecate Port of Entry. Bejerano-Bejerano has three prior felony immigration convictions.
The immigration cases were referred or supported by federal law enforcement partners, including Homeland Security Investigations (HSI), Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), Customs and Border Protection, U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the support and assistance of state and local law enforcement partners.
Indictments and criminal complaints are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Ten-Time Felon Sentenced to Decade in Prison for Drug Trafficking and Illegal Gun PossessionRead the Press Release
SAN DIEGO – Ten-time felon Robert Stokes of San Diego was sentenced in federal court today to 10 years in prison for his latest crimes: Trafficking PCP and methamphetamine and illegally possessing multiple firearms as a convicted felon.
According to court records, on August 28, 2025, members of the Drug Enforcement Administration’s Narcotics Task Force and the San Diego Police Department were conducting proactive patrols in Logan Heights when they observed what appeared to be a drug sale involving Stokes and another individual. Officers stopped Stokes’ Jeep and found 67 small vials of PCP and several baggies of methamphetamine inside.
That seizure led investigators to identify two RVs Stokes owned in Julian, California. On September 18, 2025, law enforcement searched the RVs and recovered more than a kilogram each of PCP and methamphetamine, along with digital scales and six loaded firearms, including rifles and a handgun equipped with a suppressor.
Stokes was not present during the RV search. But within hours, investigators found him in Southeast San Diego driving another vehicle carrying additional PCP and methamphetamine packaged identically to the drugs seized during the August 28 traffic stop.
Stokes pleaded guilty to the most recent charges in April. The defendant is prohibited from possessing firearms because of his nine prior felony convictions. Court records show his criminal history in San Diego County includes burglary, robbery and drug crimes.
“Four decades of crime. Ten felony convictions. Finally, after this federal conviction, one problem solved,” said U.S. Attorney Adam Gordon.
“Drug trafficking and the illegal possession of firearms are a dangerous combination that threatens the safety of our communities,” said DEA Special Agent in Charge James Nunnallee. “For decades, the defendant has engaged in criminal activity that put lives at risk. DEA and our law enforcement partners remain committed to holding violent and repeat offenders accountable and protecting the communities we serve.”
“A combination of proactive police work, investigative follow-up and great prosecution is keeping San Diego communities safer,” said San Diego Police Deputy Chief Shawn Takeuchi. “This sentence keeps someone who was committed to criminal activity off our streets for a long time. We are grateful for the continued collaboration between local, state and federal law enforcement here in San Diego to hold criminals accountable.”
DEFENDANT Case Number 25-CR-4665-JES
Robert Thomas Stokes Age: 62 San Diego, CA
SUMMARY OF CHARGES
Possession with intent to distribute 1 or more kilograms of PCP — 21 U.S.C. §841(a)(1)
Maximum Penalty: Life in prison and $10 million fine
Possession with intent to distribute 50 or more grams of methamphetamine — 21 U.S.C. §841(a)(1)
Maximum Penalty: Life in prison and $10 million fine
Felon in Possession of a Firearm — 18 U.S.C. §922(g)(1)
Maximum Penalty: Fifteen years in prison and $250,000 fine
INVESTIGATING AGENCIES
Drug Enforcement Administration
San Diego Police Department
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 gun violence and other violent crime, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
This investigation is part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. HSTF San Diego comprises agents and officers from FBI, Homeland Security Investigations, DEA, ATF, U.S. Marshals Service, Department of Defense, U.S. Postal Inspection Service, Naval Criminal Investigative Service, IRS Criminal Investigation, U.S. Coast Guard, U.S. Customs and Border Protection and INTERPOL, with the prosecution being led by the United States Attorney’s Office for the Southern District of California.
Chula Vista Woman on Supervised Release for Fraud Admits New Forgery and Fraud CrimeRead the Press Release
SAN DIEGO – While on supervised release for two prior federal fraud convictions, Ashleigh Lynn Chavez pleaded guilty today in federal court to yet another fraud, admitting she used forged letters purportedly from her former attorney and former employer to obtain employment with a San Diego-area company.
According to court documents, Chavez, 42, submitted six letters by email as part of a job application in November 2024, after she had been terminated from a human resources position at a local nonprofit organization when her criminal convictions were discovered during a background check.
Among the documents Chavez submitted was a forged letter falsely attributed to the attorney who had represented her in a prior federal criminal case. The fabricated letter, supposedly sent by the attorney to Chavez, falsely claimed that Chavez had been exonerated and the prosecution had agreed to dismiss all charges against her. The letter advised Chavez not to share any court records on her cases because they were supposedly sealed.
Chavez also submitted a forged recommendation letter purportedly signed by the chief executive officer of the nonprofit organization that had fired her weeks earlier. The letter praised Chavez's volunteer work for the nonprofit and recommended her for employment.
When contacted by law enforcement, both Chavez's former attorney and former employer confirmed that they had not written the letters and that the signatures on the documents were forged.
As part of her plea agreement, Chavez admitted that the fraudulent letters caused the company to hire her and that she remained employed there from December 2024 through March 2025.
In March 2021, Chavez was sentenced to 12 months and one day in prison for conspiring to embezzle more than $160,000 from a former employer. In July 2022, Chavez received an additional 24-month sentence after pleading guilty to obstruction of justice for forging medical letters that falsely claimed she had been diagnosed with cancer and causing those forged letters to be submitted to a federal judge. Chavez was released from federal custody onto supervised release in both cases in November 2023.
Chavez is scheduled to be sentenced on October 8, 2026, at 9 a.m. by U.S. District Judge Anthony J. Battaglia.
DEFENDANT Case No. 26-cr-02598-AJB
Ashleigh Lynn Chavez Age 42 Chula Vista, CA
aka “Ashleigh Lynn Coulson”
aka “Ashleigh Chavez Coulson”
SUMMARY OF CHARGES
Obstruction of Justice – Title 18, U.S.C., Section 1343
Maximum penalty: Twenty years in custody and a $250,000 fine.
INVESTIGATING AGENCY
Federal Bureau of Investigation
Thirty Charged in Takedown of Gang-Associated Crack Cocaine Street MarketRead the Press Release
SAN DIEGO – A federal grand jury indictment was unsealed today charging 30 alleged West Coast Crips gang members and associates with distributing large amounts of cocaine base to customers at an open-air crack market on Imperial Avenue about a mile and a half east of Petco Park.
In a coordinated takedown this morning, more than 350 members of the FBI Violent Crimes Task Force – Gang Group, plus federal, state, and local law enforcement officials executed 21 search warrants on homes and vehicles in San Diego and arrested 28 defendants. As of 1 p.m, two defendants were still being sought.
Surveillance recording of hand-to-hand transactions allegedly being conducted by defendants Elton Wilson (in the reflective vest) and Eric Grady (white shirt at the bottom of the photograph) at the Imperial Avenue Crack Market. All photos are contained in court documents.
The investigation began in 2024 and focused on West Coast Crips (WCC) gang members suspected of drug trafficking and committing acts of violence in San Diego at and near the Crips-controlled outdoor drug market located at 2900 Imperial Avenue, pictured below.
According to court documents, the market functioned as both a retail outlet and a wholesale hub, supplying users directly while also feeding a network of low-level dealers who spread across East Village, downtown, Logan Heights, Sherman Heights, and beyond to redistribute crack cocaine.
Investigators believe thousands of customers repeatedly purchased cocaine base at the Imperial Avenue Crack Market in 2025. Those customers would approach Crips members staffing the market and buy cocaine base with cash. Investigators estimate that about 20 pounds of cocaine - with an estimated street value of at least $550,000 - were sold at the Imperial Avenue Crack Market weekly.
Including seizures today and throughout this investigation, authorities have confiscated more than 11 pounds of cocaine; more than $14,000 in U.S. currency; two handguns and a money counting device. According to wiretapped conversations between coconspirators, defendants frequently sold out their inventory and would then look to replenish their supply.
For most of the investigation, a surveillance camera was trained on the Imperial Avenue Crack Market, capturing daily activity consistent with the sale of cocaine base, cocaine base, commonly known as crack cocaine.
According to court documents, the conspirators fell into three categories based on their roles: (1) street-level dealers who sold crack cocaine at the Imperial Avenue Crack Market; (2) suppliers who provided powder cocaine to be converted into crack cocaine for sale at the market; and (3) purchasers who bought crack cocaine at the market for redistribution elsewhere, including in San Diego's East Village neighborhood near Petco Park.
Investigators also identified associated gang activity occurring at or near the Imperial Avenue Crack Market. For example, WCC members celebrate “set day,” a gang holiday, every year on or around March 30 in recognition of their claim of the 30th Street corridor as WCC territory. On the evening of March 30, 2025, as captured in the photo above, WCC members and associates congregated at and around the Imperial Avenue Crack Market, effectively shutting off traffic through the area, and defied commands from San Diego Police Department officers to disperse.
The Imperial Avenue Crack Market was also a backdrop for violence. In one instance, on the evening of January 9, 2026, a car drove up to, and stopped in front of, the Imperial Avenue Crack Market. An occupant got out of the car and fired four or five gunshots at people congregating near the market, striking at least two. The occupant then returned to the car, which sped away.
“With these 30 indictments, the message is simple: San Diego is a paradise, but it’s not a gangster’s paradise,” said U.S. Attorney Adam Gordon.
“Today marks another important milestone in the FBI’s mission to wipe out gang violence in America,” said FBI Director Kash Patel. “Operation ENCRIPTED – led by FBI San Diego with our federal and regional partners – marked a full-scale op targeting local Crips street gang members and their affiliates perpetrating criminal activities, including drug trafficking, violent crime, and more.
Twelve tactical FBI teams and partners targeted 23 locations and executed 28 arrests – building on the 1,200+ alleged gangs and criminal enterprises this FBI has disrupted so far in 2026 alone. This FBI is not letting up."“Today's operation sends a clear message: the FBI will not allow violent gangs to threaten our communities,” said Special Agent in Charge Mark Remily of the FBI San Diego Field Office. “Crips street gangs and affiliated members have allegedly committed numerous violent crimes while trafficking drugs, harming and intimidating our neighborhoods. This takedown shows the power of determined investigative work and strong collaboration with the San Diego Police Department, Chula Vista Police Department, and our federal, state and local partners. We united the full strength of our agencies to dismantle this violent network and ensure they face justice. The FBI remains committed to working with our partners to keep San Diegans safe.”
“Gang activity has no place in our city,” said San Diego Police Chief Scott Wahl. “Disrupting large-scale operations like this is what will keep San Diego one of the safest big cities in the nation. I am incredibly proud of the work being done by the Violent Crime Task Force and the U.S. Attorney’s Office to dismantle this operation.”
“The Chula Vista Police Department is proud to be part of the FBI Violent Crimes Task Force. This investigation highlights the importance of strong partnerships, as this criminal network impacted communities across San Diego County. We commend the coordinated efforts of the FBI and our law enforcement partners in bringing those responsible to justice,” said Captain Henry Martin of the Chula Vista Police Department. “The charges are the result of a year-long investigation that included the use of court-authorized wiretaps, undercover agents, and confidential sources.”
“This investigation highlights the dedication and teamwork of our law enforcement partners in confronting organized drug trafficking in our city,” said HSI San Diego Special Agent in Charge Kevin Murphy. “HSI is proud to support this collaborative effort, targeting those responsible for fueling addiction and violence. By working together, we are helping to restore safety and peace of mind to the community and remain committed to supporting initiatives that disrupt criminal activity and protect San Diego’s neighborhoods.”
Many of the defendants charged in the conspiracy have significant criminal histories, underscoring how the market became a haven for repeat offenders.
At least 22 of the defendants have prior felony convictions, mostly for drug sales. Five defendants are presently subject to some form of post-conviction supervision. Rynell Baker, one of the alleged leaders of the Crack Market conspiracy, was convicted of first-degree murder in 1994, paroled in 2021, and discharged from parole in 2022. Four of the defendants— Elton Wilson, Roshawn Walls, Shawn King, and Alejandro McFadden—have prior federal convictions that qualify as serious drug felonies. At least three others also have prior federal criminal convictions—Darnell Butler and Jerry Davis (RICO conspiracy), and Kendall Evans (Felon in Possession of Ammunition).
Cash, cocaine base, and marijuana found in defendant Grady’s car after he was arrested by police
These cases are being prosecuted by Assistant United States Attorneys Keith D. Ellison, Mario Peia, and David Kete.
DEFENDANTS Case Number 26CR2402
Name AgeCityElton Wilson58San DiegoRynell Baker55San DiegoEric Grady55San DiegoLorenzo Miller43San DiegoFUGITIVE Elmer Salgado-Pineda25National CityJulio Rangel38San DiegoJulio Rangel Jr.19San DiegoFelipe Benitez33San DiegoMichael Pollard46San DiegoDarnell Butler39San DiegoFUGITIVE Stephanie Singleton57San DiegoDerrick Taylor60San DiegoJames Wright76San DiegoLeray Shine52San DiegoRoshawn Maurice Walls56San DiegoAundray Eatmon48San DiegoKirk Patterson47San DiegoBrandon Antwaun Jones39San DiegoShawn Monique King56San DiegoAnthony Suffern65San DiegoPatrick Davis51San DiegoLarry Haynes64San DiegoNancy McSwain58San DiegoKendall Evans42San DiegoJerry Davis38San DiegoWendy Williamson57San DiegoAlejandro McFadden55San DiegoNorman Martin58San DiegoSUMMARY OF CHARGES
Conspiracy to Distribute Cocaine and Cocaine Base, in violation of Title 21 U.S.C. § 841(a)(1), 841 (b) (1) (ii), 841 (b) (1) (iii)
Maximum Penalty: Life in prison; Mandatory Minimum: Ten years in prison; $10 million fine
INVESTIGATING AGENCIES
Federal Bureau of Investigation, Violent Crimes Task Force – Gang Group (VCTF-GG), which includes investigators from the following agencies:
- Federal Bureau of Investigation
- San Diego Police Department
- Homeland Security Investigations
- Bureau of Alcohol, Tobacco, Firearms and Explosives
- California Department of Corrections
- San Diego County Sheriff’s Department
- Chula Vista Police Department
- National City Police Department
- U.S. Bureau of Prisons
- U.S. Postal Inspection Service
- San Diego County District Attorney’s Office
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
This investigation is part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. HSTF San Diego comprises agents and officers from FBI, Homeland Security Investigations, DEA, ATF, U.S. Marshals Service, Department of Defense, U.S. Postal Inspection Service, Naval Criminal Investigative Service, IRS Criminal Investigation, U.S. Coast Guard, U.S. Customs and Border Protection and INTERPOL, with the prosecution being led by the United States Attorney’s Office for the Southern District of California.
High Intensity Drug Trafficking Areas (HIDTA) program, created by Congress with the Anti-Drug Abuse Act of 1988, provides assistance to Federal, state, local, and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States. This grant program is administered by the Office of National Drug Control Policy (ONDCP). There are currently 33 HIDTAs, and HIDTA-designated counties are located in 50 states, as well as in Puerto Rico, the U.S. Virgin Islands, and the District of Columbia.
Alleged Drug Trafficker with Connections to 2022 Drug Tunnel Extradited to San Diego from MexicoRead the Press Release
SAN DIEGO – Genaro Lopez was arraigned in federal court today following his extradition from Mexico Friday in connection with allegations that he moved cocaine and other drugs into the United States via a sophisticated tunnel discovered in 2022.
At the hearing, the defendant entered a not guilty plea to drug trafficking charges. U.S. Magistrate Judge Daniel E. Butcher granted the government’s request to hold Lopez without bond on grounds that he posed a serious risk of flight from prosecution.
According to court records, Lopez, who is a United States citizen, was a powerful drug trafficker operating on both sides of the border. Prior to July 2021, Lopez operated from the United States out of a stash house in Chula Vista, until July 9, 2021, when investigators stopped three cars leaving the stash house with drugs and executed a search warrant. Authorities seized 241 kilograms of cocaine, eight guns (including two ghost guns), a bulletproof vest, ammunition, high-capacity magazines, and close to $40,000 in cash.
Lopez was not present at the search; he fled to Mexico after the search and remained a fugitive until his recent arrest in Mexico on March 10 at the request of the United States. Four of Lopez’s employees were arrested and charged with drug trafficking crimes and have since pleaded guilty and been sentenced.
The United States also alleges that Lopez used a cross-border tunnel discovered in 2022 to smuggle illegal drugs into the United States. Investigators discovered the tunnel on May 12, 2022, while surveilling a second stash house in National City. Authorities stopped four cars leaving the stash house and during subsequent searches of the house and cars, investigators seized close to 800 kilograms of cocaine, 74.8 kilograms (163 pounds) of methamphetamine, and 1.6 kilograms (3.5 pounds) of fentanyl. For more information, please see this link.
Beneath the warehouse, they discovered a tunnel from Tijuana to a warehouse in Otay Mesa that was estimated to be about 1,744 feet long, 61 feet deep and 4-feet in diameter, with reinforced walls, a rail system, electricity and a ventilation system. Six people were arrested in that case; five have since pleaded guilty and been sentenced while one other fled while awaiting sentencing and remains a fugitive.
Lopez’s next court appearance for motion hearing and trial setting is scheduled for August 14 before U.S. District Judge Linda Lopez.
This case is being prosecuted by Assistant U.S. Attorneys Paul Benjamin and Lawrence Casper. The Justice Department’s Office of International Affairs worked with law enforcement partners in Mexico to secure the arrest and extradition of Genaro Lopez.
*The charges and allegations contained in an indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
DEFENDANT Case Number 24cr681-LL
Genaro Lopez Age: 54 Tijuana, Mexico
SUMMARY OF CHARGES
Conspiracy to Distribute a Controlled Substance- – Title 21, U.S.C., Sections 841 and 846
Maximum penalty: Life in prison
Conspiracy to Import a Controlled Substance- – Title 21, U.S.C., Sections 952, 960, and 963
Maximum penalty: Life in prison
PREVIOUS DEFENDANTS AND SENTENCES
22-CR-01697-LL
Soukha Phimpasouk 48 months
Gabriel Ali Ruelas 70 months
Kevin Omar Carbajal 30 months
Josselyn Paige Smitko 345 days
22-CR-1169-LL
Juan Cruz 24 months
Mario Jaramillo 27 months
Manuel Perez-Herrera Fugitive
Vanessa Ramirez 120 months
Luz de Luna Olmos 92 days
Adrian Enriquez 120 months
INVESTIGATING AGENCIES
Homeland Security Investigations
San Diego Sheriff’s Department
This investigation is part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. HSTF San Diego comprises agents and officers from FBI, Homeland Security Investigations, DEA, ATF, U.S. Marshals Service, Department of Defense, U.S. Postal Inspection Service, Naval Criminal Investigative Service, IRS Criminal Investigation, U.S. Coast Guard, U.S. Customs and Border Protection and INTERPOL, with the prosecution being led by the United States Attorney’s Office for the Southern District of California.
United States Files False Claims Act Complaint Against Founder of Cannabis Companies for Illegally Obtaining Pandemic LoansRead the Press Release
SAN DIEGO – The United States has filed a complaint under the False Claims Act (FCA) against Laurie Holcomb, founder of multiple cannabis companies, alleging that she illegally obtained five pandemic-related loans from the federal government.
The United States alleges that Holcomb secured $1.4 million in federally-guaranteed Paycheck Protection Program loans, and subsequent forgiveness of the loans, by falsely certifying under penalty of perjury on loan applications that the businesses were not involved in illegal activity.
In fact, Holcomb and her companies were engaged in the cultivation, distribution, and retail sale of recreational cannabis and cannabis products, which is illegal under federal law.
Congress created the Paycheck Protection Program, or PPP, in March 2020, as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, to provide emergency financial support to eligible small businesses experiencing economic hardship caused by the COVID-19 pandemic. The Small Business Administration (SBA) administers the PPP.
Due to its status as a Schedule I controlled substance under the United States Controlled Substances Act, the manufacture, distribution, dispensation, and possession of cannabis, with the exception of use in federal government-approved research, is illegal under federal law. SBA eligibility rules generally excluded a business from eligibility for PPP loans if the business engaged in activities involving federally illegal cannabis, even if state law permitted cultivation or sale.
The government’s complaint alleges that Ms. Holcomb, a resident of Huntington Beach, California, obtained loans for the following businesses she founded and controlled: Gold Flora LLC; GF Distribution LLC; Gold Flora Partners LLC; and Black Lion Farms LLC - collectively known as the “Gold Flora Companies”.
The Gold Flora Companies have since filed for receivership in California State Superior Court. As alleged in the United States’ complaint against Ms. Holcomb, the Gold Flora Companies’ petition in support of receivership stated that Gold Flora LLC and Black Lion Farms LLC, along with other affiliate entities, could not file for bankruptcy protection due to the illegality of cannabis under federal law.
The United States filed its complaint in a lawsuit originally brought under the qui tam or whistleblower provisions of the False Claims Act. Under the act, a private party can file an action on behalf of the United States and receive a portion of any recovery. The act permits the United States to intervene in such lawsuits, as it has done in this case. The qui tam case is captioned U.S. ex rel. Aidan Forsyth v. Gold Flora LLC, et al., No. 23cv1962-W (MMP) (S.D. Cal.).
This matter is being handled by Assistant U.S. Attorney Joseph P. Price Jr.
Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here.
The claims asserted in the complaint are allegations only. There has been no determination of liability
U.S. Attorney’s Office Filed 151 Border-Related Cases This WeekRead the Press Release
SAN DIEGO – Federal prosecutors in the Southern District of California filed 151 border-related cases this week, including charges of bringing in aliens for financial gain, reentering the U.S. after deportation, and importation of controlled substances.
The U.S. Attorney’s Office for the Southern District of California is the fourth-busiest federal district, largely due to a high volume of border-related crimes. This district, encompassing San Diego and Imperial counties, shares a 140-mile border with Mexico. It includes the San Ysidro Port of Entry, the world’s busiest land border crossing, connecting San Diego (America’s eighth largest city) and Tijuana (Mexico’s second largest city).
In addition to reactive border-related crimes, the Southern District of California also prosecutes a significant number of proactive cases related to terrorism, organized crime, drugs, white-collar fraud, violent crime, cybercrime, human trafficking and national security. Recent developments in those and other significant areas of prosecution can be found here.
A sample of border-related arrests this week:
- On July 2, Julio Villa-Urzua, a Mexican national, was arrested and charged with Importation of a Controlled Substance. According to a complaint, Customs and Border Protection officers discovered 929 pounds – 28 buckets – of liquid methamphetamine dissolved into the fluid of the passenger-side fuel tank of a semi-truck driven by Villa-Urzua while applying for entry to the U.S. at the Otay Import Cargo Facility Port of Entry.
- On July 4, Edgar Clemente Gonzalez Huales, a Guatemalan national, was arrested and charged with Transportation of Illegal Aliens. According to a complaint, a Border Patrol agent made a traffic stop of Gonzales Huales’ vehicle in Boulevard. The defendant stopped briefly, ordered two undocumented aliens to exit his car and run, and then sped away in his white BMW sedan. The defendant was apprehended two days later, on July 6, after agents used a spike strip to disable his vehicle.
- On July 7, Geronimo Benitez Velazquez, a Mexican national, was arrested and charged with Deported Alien Found in the United States. According to a complaint, U.S. Border Patrol agents encountered the undocumented defendant hiding under a tree approximately 500 yards north of the U.S.-Mexico border, three miles east of the Tecate Port of Entry. He was previously deported in April 2026 from San Diego.
The immigration cases were referred or supported by federal law enforcement partners, including Homeland Security Investigations (HSI), Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), Customs and Border Protection, U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the support and assistance of state and local law enforcement partners.
Indictments and criminal complaints are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former San Diego County Sheriff’s Deputy Sentenced to Federal Prison for Excessive Force and Cover-UpRead the Press Release
SAN DIEGO – Former San Diego County Sheriff’s Deputy Jeremiah Manuyag Flores was sentenced in federal court today to 57 months in prison for violating the civil rights of a pretrial detainee by using excessive force that caused a spinal injury, then lying in a report to cover up his illegal conduct.
“When a law enforcement officer abuses his authority and violates someone’s constitutional rights, there will be serious consequences,” said U.S. Attorney Adam Gordon.
“Upholding civil rights is fundamental to the mission of every law enforcement agency. When an officer violates that oath, equal accountability is essential to maintaining the public’s trust,” said Special Agent in Charge Mark Remily of the FBI’s San Diego Field Office. “Today’s sentence reflects the commitment of the FBI and our law enforcement partners to thoroughly investigate such matters and ensure those who abuse their authority face appropriate consequences.”
After a weeklong trial in December 2025, it took a jury just two hours to convict Flores of both counts filed against him, including Deprivation of Rights Under Color of Law and Falsification of Records in a Federal Investigation.
The jury found that Flores violated the civil rights of the victim, identified by the initials J.P., by unnecessarily shoving him from behind while his legs were shackled and his hands were cross-chained at his waist, causing J.P. to fly across his holding cell, slam headfirst into the far wall, and collapse to the ground with what was later determined to be a fracture of his spinal column.
Flores did not provide J.P. with medical aid and failed to report his use of excessive force to a supervisor, both of which are required by the Sheriff’s Department’s Use of Force Policy. As a result, J.P. lay on the floor of his cell next to a pool of his own blood for over two hours before his injuries were discovered by another deputy. When Flores then was directed to write an Inmate Status Report about his earlier interaction with J.P., he included multiple false statements, including “no force was used.”
In advocating for a lengthy prison term, Assistant U.S. Attorney Seth Askins argued: “The power disparity between the defendant who was in complete control and [J.P.] who couldn’t do anything to protect himself was as wide as the ocean. The defendant’s only job was to walk with him.” Askins continued: “There was no escalation here. There was no resistance here. The defendant didn’t have to use any force at all. All he had to do was to keep walking.”
Before pronouncing sentence, U.S. District Judge Linda Lopez noted that the public does not get to see what goes on inside jail facilities and relies on law enforcement officers to “do the right thing.” She discussed at length that Flores not only used excessive force but then told another deputy “nothing happened” and repeatedly ignored multiple opportunities in the two hours afterwards to help the victim. Addressing Flores, Judge Lopez said: “What you do then matters.” In referencing a still-shot from a surveillance camera that showed Flores walking away from the victim’s cell smiling in the moments afterward, Judge Lopez said: “I don’t know how many years it’s going to be before I get that photo out of my mind. Your conduct was egregious.”
Flores, who had been free on bond, was ordered to report to prison by August 18, 2026. As a result of his convictions, Flores was terminated by the San Diego Sheriff’s Office and will not be able to work as a law enforcement officer at any level of government—local, state, or federal—in the future.
This case is being prosecuted by Assistant U.S. Attorneys Seth Askins and Michael Deshong.
DEFENDANTS Case Number 25cr0254
Jeremiah Manuyag Flores Age: 45 La Jolla, CA
SUMMARY OF CHARGES
Deprivation of Rights Under Color of Law – Title 18, U.S.C., Section 242
Maximum penalty: Ten years in prison and $250,000 fine
Falsification of Records in a Federal Investigation – Title 18, U.S.C., Section 1519
Maximum penalty: Twenty years in prison and $250,000 fine
INVESTIGATING AGENCIES
Federal Bureau of Investigation
San Diego County Sheriff’s Office (Homicide Unit)
Alleged Leader of a Violent Wing of the Sinaloa Cartel Charged with Narcoterrorism, Material Support of Terrorism and Drug TraffickingRead the Press Release
SAN DIEGO – An indictment unsealed today charges Carlos Paez Pereda, aka “Carlitos,” aka “Carlitos Rugrats,” alleged high-ranking lieutenant and leader of a violent wing of the Sinaloa Cartel called “Los Rugrats,” with Narcoterrorism and Material Support of Terrorism in connection with trafficking massive amounts of fentanyl, cocaine, and methamphetamine into the United States.
“No se puede capturar a un personaje de dibujos animados. Pero a un narcoterrorista, sí,” said U.S. Attorney Adam Gordon.
“Today’s indictment underscores the FBI’s determination to dismantle the most violent elements of the Sinaloa Cartel,” said Special Agent in Charge Mark Remily of the FBI San Diego Field Office. “Los Rugrats has fueled brutal violence in Mexico that reaches into the United States along with a relentless flow of deadly drugs into our communities. Together with our federal and state partners, we will continue to target cartel leadership wherever they operate to bring them to justice and protect the public.”
“For years, Pereda allegedly fueled the drug crisis by trafficking deadly drugs into the United States while using violence, intimidation, and fear to protect his criminal enterprise,” said DEA Special Agent in Charge James Nunnallee. “As alleged in the indictment, his organization relied on murder, kidnapping, and armed enforcers to maintain power and ensure the continued flow of drugs that have devastated families and communities across our nation. DEA and our law enforcement partners remain relentless in our pursuit of those who profit from addiction and violence. Together, we are strengthening a global network of partnerships that is disrupting cartel operations, dismantling their criminal enterprises, and ensuring those responsible have fewer places to hide and nowhere to run.”
“This indictment highlights the collaboration and strength of the Homeland Security Task Force,” said Kevin Murphy, acting Special Agent in Charge for Homeland Security Investigations in San Diego. “HSI will continue to support our federal, state, and local law enforcement partners as HSTF San Diego continues to dismantle the cartels and protect our communities.”
All photos are published in court documents and were pulled from social media accounts associated with Paez. The images depict drugs, guns and trafficking proceeds connected to the defendant.
According to court documents, Paez operates a prolific manufacturing and distribution network of methamphetamine, fentanyl, and cocaine for the Mayo Zambada faction of the Sinaloa Cartel. Paez also enforces the Sinaloa Cartel’s operations in Sinaloa and Tijuana through murder, kidnappings, and other violent activity, using a group of armed fighters and hitmen. Paez also manages and controls a portion of the Sinaloa Cartel’s transportation operations from Sinaloa to Tijuana, and the surrounding municipalities, ultimately leading to the importation of these drugs into the United States and distribution in the Southern District of California and elsewhere.
Over the past decade, Paez has imported tens of thousands of kilograms of methamphetamine, fentanyl, and cocaine, into the United States and laundered hundreds of millions of dollars in drug proceeds. Paez was designated by the U.S. Treasury Department’s Office of Foreign Assets Control, or OFAC, as a Drug Kingpin in September 2025.
Paez has also assisted the Los Mayos faction during their ongoing bloody conflict with the “Los Chapitos” faction of the Sinaloa Cartel. Paez has provided fighters, weapons, logistics, and money during the conflict.
This indictment follows a storied tradition in the Southern District of California for dismantling leadership and operations of powerful Mexican cartels – from the dismantling of the Arellano Felix Cartel to major strikes against today’s most dangerous, powerful and violent cartels, including the Sinaloa Cartel, Cártel de Jalisco Nueva Generación (CJNG) and the Beltran Leyva Organization.
The indictment is a direct result of President Trump’s Executive Order 14157 which designated the Sinaloa Cartel as a Foreign Terrorist Organization and the Secretary of State’s subsequent designation of the same on February 20, 2025.
This case is being prosecuted by Assistant U.S. Attorneys Joshua Mellor and Peter Horn.
DEFENDANT Case Number 26cr1044-DMS
Carlos Paez Pereda Age: 30 City of Residence: Laguna Colorada, Sinaloa, Mexico
aka “Carlitos”
aka “Carlitos Rugrats”
SUMMARY OF CHARGES
Title 21, U.S.C., Secs. 960a and 841 – Narcoterrorism
Maximum penalty: Life in prison, mandatory minimum 20 years in prison; $20 million fine
Title 18, U.S.C. Sec. 2339B – Providing Material Support to Terrorism
Maximum penalty: Twenty years in prison and $250,000 fine
Title 21, U.S.C., Sec. 848(a) -Continuing Criminal Enterprise
Maximum penalty: Life in prison, mandatory minimum 20 years; $10 million fine
Title 21, U.S.C., Secs. 952, 959, 960, and 963 - International Conspiracy to Distribute Controlled Substances
Maximum penalty: Life in prison, mandatory minimum 10 years; $10 million fine
Title 21, U.S.C., Secs. 841(a)(1) and 846 - Conspiracy to Distribute Controlled Substances
Maximum penalty: Life in prison, mandatory minimum 10 years in prison; $10 million fine
Title 21, U.S.C., Secs. 952, 960 and 963 – Conspiracy to Import Controlled Substances
Maximum penalty: Life in prison, mandatory minimum 10 years; $10 million fine
Money Laundering Conspiracy – Title 18, U.S.C., Section 1956(h)
Maximum penalty: Twenty years in prison and $500,000 fine or twice the value of the monetary instrument or funds involved, whichever is greater
INVESTIGATING AGENCIES
Federal Bureau of Investigation
Drug Enforcement Administration
Homeland Security Investigations
Chula Vista Police Department
High Intensity Drug Trafficking Areas
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
This case was investigated and prosecuted by the California Homeland Security Task Force (HSTF) as part of Operation Take Back America. HSTFs were established by President Trump in Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. Operation Take Back America is a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime.
High Intensity Drug Trafficking Areas (HIDTA) program, created by Congress with the Anti-Drug Abuse Act of 1988, provides assistance to Federal, state, local, and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States. This grant program is administered by the Office of National Drug Control Policy (ONDCP). There are currently 33 HIDTAs, and HIDTA-designated counties are located in 50 states, as well as in Puerto Rico, the U.S. Virgin Islands, and the District of Columbia.
Lead Defendant and 10 Others Plead Guilty in $65 Million Multinational Fraud Ring Targeting Thousands of SeniorsRead the Press Release
SAN DIEGO – Hua Wang pleaded guilty in federal court today, admitting his involvement in a $65 million multinational fraud and money laundering scheme targeting elderly victims across the United States, including in San Diego. Videos by YouTubers from Scammer Payback and Trilogy Media helped law enforcement identify multiple defendants and uncover the structure of the fraud conspiracy.
Wang, shown below, is the lead defendant charged in the scheme. In April 2025, Wang was arrested at his residence in Flushing, New York just days after his co-defendant, Weining Su, aka “Ning Ma,” was arrested at JFK International Airport attempting to board a one-way flight to China.
Following Wang’s arrest, in August 2025, federal agents coordinated a sweeping nationwide takedown of the investigation, including arrests in Southern California, Texas, Michigan and New York. To date, more than 30 defendants have been publicly charged in related indictments.
In addition to Wang, over the past two months, nine co-conspirators, Xiao Lei Xu, Wen Chang Wang, aka “Cookies,” Jiawen Cai, aka “Johnny Cai,” Zhuhan Yin, Wenzhi Chen, Yuhui Sun, Jiaxin Jiang, Bing Shen and Chongchong Li, have also pleaded guilty in federal court and admitted their roles in the same scheme. Other defendants are scheduled to plead guilty later this month. Defendants Wen Chang Wang, Jiawen Cai, Zhuhan Yin, Yuhui Sun, Bing Shen and Chongchong Li are Chinese nationals.
Operating since at least 2019 and rooted in Southern California, the criminal network—primarily composed of Chinese nationals, many in the U.S. illegally—worked closely with India-based scam call centers. Fraudsters who took the calls posed as technical support agents, government officials, or bank employees, according to court records. Once a victim had been defrauded, victims were instructed to withdraw bulk cash, to conceal the cash in packages, and to send cash-laden packages via express mail carriers to names and addresses provided by the conspirators. The recipient names were fictitious names corresponding with fake IDs. The recipient addresses were for the short-term rental locations.
In their respective plea agreements, each defendant admitted that to facilitate receipt of victim packages, members of the conspiracy booked short-term rentals in a hub-and-spoke pattern: a hub would be booked for approximately one week; spoke locations would be booked nearby for shorter stays. After some time, members of the conspiracy would relocate to a new location and continue the pattern.
The investigation started in December 2020 after an elderly victim contacted an express mail carrier after being defrauded into sending bulk cash in the mail. That led to the discovery of 11 total packages, containing approximately $135,000 in cash. Each of the packages was addressed to a fake name and a short-term rental in the San Diego area.
The investigation also led to the discovery of several YouTube videos posted in 2020 and 2021 that helped identify other members of the conspiracy. YouTuber Pierogi from “Scammer Payback”— which is known for exposing scammers—documented his interaction with the India-based scam call centers. In a series of videos, Pierogi from Scammer Payback teamed up with two other YouTubers from “Trilogy Media” to publish videos on their respective YouTube channels.
In coordinated sting operations, Scammer Payback and Trilogy Media baited fraudsters, confronted them on camera, and published those videos to their respective YouTube channels. Videos posted in 2020 and 2021 helped law enforcement identify Zhiyi Zhang, Dudu Chen and Huajian Chen. All three are named in the indictments. The videos also helped shed light on how the conspiracy operated and led to the identification of high-level members of the organization.
After defrauding victims, members of the conspiracy laundered the proceeds of the fraud scheme. For example, in March 2021, several members of the conspiracy, including Hua Wang and Xiao Lei Xu, were operating in Las Vegas, Nevada. On March 4, 2021, co-conspirator Xiao Lei Xu was stopped by law enforcement on the way to the Los Angeles area carrying $70,000 in bulk cash that were proceeds of the scheme. Just eight days later, on March 12, 2021, Hua Wang, Xiao Lei Xu and a third co-conspirator were stopped traveling from Las Vegas to Los Angeles again. This time, law enforcement seized $120,860 in fraud proceeds.
In total, Hua Wang admitted that he participated from 2019 through 2023 and was responsible for over 2,000 cash packages, each sent by an elderly victim, and $64 million in victim loss.
Sentencing hearings for each of the defendants are scheduled before U.S. District Judge Todd W. Robinson as set forth below.
DefendantNext EventDate/Time25-cr-1097-TWR Hua WangSentencing HearingSeptember 18, 2026, at 9:30 a.m.Weining SuChange of PleaJuly 2, 2026, at 10 a.m. 25-cr-1762-TWR Hongsen CaoChange of PleaJuly 16, 2026, at 9:30 a.m. 25-cr-1765-TWR Xiao Lei XuSentencing HearingJuly 7, 2026, at 9:30 a.m.Wen Chang WangSentencing HearingSeptember 4, 2026, at 9:30 a.m.Jiawen CaiSentencing HearingSeptember 18, 2026, at 9:30 a.m.Zhuhan YinSentencing HearingSeptember 4, 2026, at 9:30 a.m.Ziyue ZhaoSentencing HearingSeptember 18, 2026, at 9:30 a.m.Wenzhi ChenSentencing HearingSeptember 4, 2026, at 9:30 a.m.Jiaxin WangSentencing HearingSeptember 11, 2026, at 9:30 a.m.Yuhui SunSentencing HearingSeptember 4, 2026, at 9:30 a.m.Jiaxin JiangSentencing HearingAugust 7, 2026, at 9:30 a.m.Bing ShenSentencing HearingJuly 7, 2026, at 9:30 a.m.Chongchong LiSentencing HearingJuly 7, 2026, at 9:30 a.m.This case is being prosecuted by Assistant U.S. Attorney Kevin Mokhtari and Special Assistant U.S. Attorney Katherine Rookard.
DEFENDANTS
Case Number 25-cr-1097-TWR
Hua Wang Age: 48 Flushing, NY
Weining Su, aka “Ning Ma” Age: 27 Flushing, NY
Case Number 25-cr-1762-TWR
Hongsen Cao, aka “Shawn Cao,” Age: 24 Los Angeles, CA
Case Number 25-cr-1765-TWR
Xiao Lei Xu, aka “Xiaolei Xu” Age: 39 Flushing, NY
Wen Chang Wang, Age: 26 Detroit, MI
Jiawen Cai, aka “Johnny Cai” Age: 28 Flushing, NY
Xinyu Shao Age: 27 Flushing, NY
Zhuhan Yin, aka “Iron Yin” Age: 30 Flushing, NY
[Redacted]
Ziyue Zhao, aka “Chris Zhao” Age: 30 Flushing, NY
Guangli Lin Age: 30 Flushing, NY
Wenzhi Chen Age: 23 Austin, TX
[Redacted]
Jiaxin Wang Age: 24 Flushing, NY
[Redacted]
Haotian Zhang, aka “Kevin Z” Age: 28 Flushing, NY
Dudu Chen, aka “Norris Chen” Age: 31 In Custody
Yuhui Sun, aka “Ian Sun” Age: 27 Flushing, NY
Jiaxin Jiang, aka “YiYi” Age: 26 In Custody
Dexiao Lin, aka “Prozac” Age: 27 Flushing, NY
Zhiyi Zhang, aka “Cream Pablo” Age: 29 Los Angeles, CA
Zhiwei Chen Age: 30 Levittown, NY
Bing Shen Age: 41 Flushing, NY
Zetian Zhang Age: 29 Flushing, NY
Huajian Chen, aka “Marco Chen” Age: 24 Austin, TX
Chongchong Li Age: 29 Los Angeles, CA
Jianhao Gao, aka “Gh Ghao” Age: 31 Flushing, NY
Case Number 25-cr-2208-TWR
Cheng Li Age: 28 In Custody
Case Number 25-cr-3371-TWR
Kaiwen Zhang Age: 32 Irvine, CA
SUMMARY OF CHARGES
Count 1 – Conspiracy to Commit Mail and Wire Fraud - Title 18, U.S.C., Sections 1349, 2326
Maximum penalty: Forty years in prison; a maximum $1 million fine
Count 2 – Conspiracy to Launder Monetary Instruments – Title 18, U.S.C., Section 1956(h)
Maximum penalty: Twenty years in prison; a maximum $500,000 fine or twice the amount of monetary instruments involved in the offense, whichever is greatest
INVESTIGATING AGENCIES
Homeland Security Investigations
Federal Bureau of Investigation
Internal Revenue Service-Criminal Investigation
San Diego County Sheriff’s Department
San Diego Law Enforcement Coordination Center
San Bernardino County Sheriff’s Department (SBSD)
San Diego County District Attorney’s Office
Mountain View (CA) Police Department
Florida Department of Law Enforcement (FLDE)
Alachua County (FL) Sheriff’s Department
Los Angeles Interagency Metropolitan Police Apprehension Crime Task Force (LA IMPACT)
Irvine (CA) Police Department
La Verne (CA) Police Department
Mesa (AZ) Police Department
Sarpy County (NE) Sheriff’s Department
U.S. Postal Inspection Service
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
For further information, see previous press release.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division. The core mission of the Fraud Division is to zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars. Department of Justice efforts to combat fraud support President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
U.S. Attorney’s Office Filed 122 Border-Related Cases This WeekRead the Press Release
SAN DIEGO – Federal prosecutors in the Southern District of California filed 122 border-related cases this week, including charges of bringing in aliens for financial gain, reentering the U.S. after deportation, and importation of controlled substances.
The U.S. Attorney’s Office for the Southern District of California is the fourth-busiest federal district, largely due to a high volume of border-related crimes. This district, encompassing San Diego and Imperial counties, shares a 140-mile border with Mexico. It includes the San Ysidro Port of Entry, the world’s busiest land border crossing, connecting San Diego (America’s eighth largest city) and Tijuana (Mexico’s second largest city).
In addition to reactive border-related crimes, the Southern District of California also prosecutes a significant number of proactive cases related to terrorism, organized crime, drugs, white-collar fraud, violent crime, cybercrime, human trafficking and national security. Recent developments in those and other significant areas of prosecution can be found here.
A sample of border-related arrests this week:
- On June 18, Manuel Salvador Hernandez Perez, Mexican national and border crossing card holder, was arrested and charged with Importation of a Controlled Substance. According to a complaint, Customs and Border Protection officers discovered 185 pounds of methamphetamine in the hood, spare tire and tailgate of the Ford F-150 truck driven by Hernandez Perez while applying for entry to the U.S. at the the San Ysidro Port of Entry.
- On June 22, Ismael Molina-Ayala, a Mexican national, was arrested and charged with Deported Alien Found in the United States. According to a complaint, U.S. Border Patrol agents encountered the undocumented defendant approximately three miles north of the U.S.-Mexico border. He was previously convicted of immigration offenses and deported three times, including May 2026 from San Diego.
- On June 23, Jose Alonso Fernandez-Zavala and Edgar Luna-Ochoa, Mexican nationals, were arrested and charged with Attempted Bringing in Aliens for Financial Gain. According to a complaint, the defendants were co-captains of a panga-style smuggling vessel and were intercepted by the U.S. Coast Guard about 15 miles west of Point Loma. The vessel had 25 Mexican nationals and 1 Guatemalan national aboard, none of whom had lawful immigration status in the United States. Each passenger was paying between $4,000 and $17,000 to be smuggled into the United States by sea. The remaining defendants (Juve Garcia Santiago, Manuel Hernandez-Savedra, Leticia Policarpio Juarez Manuel Ramos, Francisco Roman Velasquez, Sureyma Velazquez Velazquez – all Mexican citizens, and Jose Lopez-Mendoza of Guatemala) had all been previously ordered removed from the United States and were charged with attempted reentry after deportation.
The immigration cases were referred or supported by federal law enforcement partners, including Homeland Security Investigations (HSI), Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), Customs and Border Protection, U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the support and assistance of state and local law enforcement partners.
Indictments and criminal complaints are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Fallbrook Man Admits Dosing His Children with Hallucinogenic MushroomsRead the Press Release
SAN DIEGO – Randal Vance pleaded guilty in federal court today to multiple drug charges, admitting he dosed his children with hallucinogenic drugs and led a conspiracy that employed the children to help cultivate, produce and distribute the psilocybin mushrooms at locations in Fallbrook and Bonsall.
Vance, the ringleader of the conspiracy, pleaded guilty to charges of conspiracy to use a minor to produce and distribute a controlled substance, conspiracy to distribute a controlled substance, two counts of distributing a controlled substance to minors, and conspiracy to obstruct justice. Two co-defendants - his wife Rebecca Vance and friend Keir Ceballos-Rivera - previously pleaded guilty and are awaiting sentencing.
In his plea agreement, Randal Vance admitted his boys were 9 and 11 when the conspiracy to produce psilocybin began at locations on Ash Street in Fallbrook and Lilac Road in Bonsall. Psilocybin mushrooms are a controlled substance that act as hallucinogenic drugs, inducing altered states of consciousness and vivid sensory experiences.
The defendant admitted in his plea agreement that he maintained two websites, psillyrabbit.com and psillyrabbitmushrooms.com, as well as the Instagram page psillyrabbitca, to market and sell psilocybin. He sold whole dried and freeze-dried psilocybin mushrooms over the internet as well as chocolates containing psilocybin and capsules containing pure psilocybin.
Randal Vance admitted providing psilocybin capsules for his oldest son, age 12 at that time, to sell to his friends. He also admitted providing the drug to his wife, Rebecca Vance, to distribute to others.
According to his plea agreement, beginning around October 2023, Randal Vance began dosing the 9- and 11-year-old victims with psilocybin capsules every other day, increasing to every day by 2024.
According to the plea agreement, on October 4, 2024, law enforcement executed search warrants on the Fallbrook and Bonsall locations. At the Ash Street location, law enforcement recovered approximately 204 pounds of fresh psilocybin mushrooms, 53 pounds of dried psilocybin mushrooms, 18 pounds of inoculated substrate to grow psilocybin mushrooms, and equipment used to grow, harvest, and process psilocybin mushrooms.
At the Lilac Road location, law enforcement recovered approximately 25 pounds of dried psilocybin mushrooms and five pounds of psilocybin capsules. Law enforcement officials also seized six firearms from the Lilac Road location: a Glock 34 pistol, a Walther P22 pistol, a Henry Survival AR7 rifle, a Smith and Wesson revolver, an H&R Model 900 revolver, and a Browning 30-06 rifle. None of the firearms were locked up, and loaded magazines were found next to the Glock 34 and Walther P22.
Randal Vance was arrested that day. Prior to his federal arrest, he was out on bond pending state charges. After Randal Vance’s arrest by local law enforcement, he and his co-defendants conspired together to destroy evidence by deleting phone messages and taking down the websites Randal Vance had used to distribute psilocybin, the plea agreement said
Randal Vance is scheduled to be sentenced September 18 at 9 a.m. by U.S. District Judge Robert S. Huie. Rebecca Vance is scheduled to be sentenced on July 17; Keir Ceballos-Rivera on August 28.
This case is being prosecuted by Assistant U.S. Attorney Paul Benjamin.
If you are concerned that your child may have been exposed to illegal drugs as a result of the activities alleged in this case, please contact the DEA at https://www.dea.gov/submit-tip.
DEFENDANTS Case Number 25-cr-00817
Randal Vance Age: 43 Fallbrook, CA
Rebecca Vance Age: 42 Oceanside, CA
Keir Ceballos-Rivera Age: 34 Oceanside, CA
SUMMARY OF CHARGES
Conspiracy to Employ or Use Minors to Violate the Controlled Substances Act – Title 21, U.S.C., Sections 841, 846, and 861(a)
Maximum penalty: Mandatory minimum one year to 40 years in prison
Conspiracy to Distribute a Controlled Substance- – Title 21, U.S.C., Sections 841 and 846
Maximum penalty: Twenty years in prison
Distribution of a Controlled Substance to Minors– Title 21, U.S.C., Section 859(a)
Maximum penalty: Mandatory minimum one year to 40 years in prison
Conspiracy to Obstruct Justice- – Title 18, U.S.C., Sections 1503(a), (b)(3), and 371
Maximum penalty: Ten years in prison
INVESTIGATING AGENCIES
Drug Enforcement Administration
San Diego Sheriff’s Department
Woman Pleads Guilty to Nearly $1 Million Hearing Aid Fraud SchemeRead the Press Release
SAN DIEGO – Julianna C. Lung pleaded guilty in federal court today to health care fraud, admitting she marketed and sold hearing protection devices to United States Border Patrol agents, other federal employees, and their family members, then falsely billed insurance providers for what she claimed were medically-necessary hearing aids.
According to her plea agreement, Lung submitted approximately 385 fraudulent claims to health insurance plans participating in the Federal Employees Health Benefits (FEHB) program. The claims falsely represented that beneficiaries suffered from hearing loss or tinnitus that required treatment.
In reality, Lung told customers the devices were intended to protect their hearing—not treat a medical condition—and assured them their insurance would cover the cost for that purpose.
As a result of the scheme, FEHB plans paid approximately $2,500 per device, totaling about $962,500 in fraudulent reimbursements.
Lung is scheduled to be sentenced on September 11, 2026, at 9 a.m., before U.S. District Judge Robert S. Huie.
The case is being prosecuted by Assistant U.S. Attorney George Manahan of the U.S. Attorney’s Office in the Southern District of California.
DEFENDANT Case Number 26cr2399-RSH
Julianna C. Lung Age: 60 San Diego, California
SUMMARY OF CHARGES
Health Care Fraud—Title 18, U.S.C. Section 1347
Maximum penalty: Five years in prison and $250,000 fine
INVESTIGATING AGENCY
U.S. Office of Personnel Management, Office of the Inspector General
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division ('Fraud Division'). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
Mother-Daughter Duo Charged in $9.5 Million Medicare Fraud Scheme; Part of National Healthcare Fraud TakedownRead the Press Release
SAN DIEGO – A federal grand jury indictment charges a mother and daughter with conspiring to defraud Medicare by billing millions of dollars for wound care services while the mother—the licensed nurse practitioner listed as the provider—was serving time in federal prison.
The charges are part of the Department of Justice’s 2026 National Health Care Fraud Takedown.
According to the indictment, Blanca Estela Cardenas, a San Diego nurse practitioner and owner of Mobile Care Medical Providers, LLC and B&R Wound Care, Inc., and her daughter, Raquel Pasillas, allegedly carried out a scheme to bill Medicare for mobile medical services between April and October 2024.
Prosecutors allege that during that time, Cardenas was incarcerated, serving a federal sentence for an unrelated bulk cash smuggling conviction and was therefore unable to personally provide care or supervise medical services as required under Medicare regulations.
Despite her incarceration, the indictment alleges, the businesses continued submitting claims to Medicare under Cardenas’ National Provider Identifier (NPI), falsely representing that she was the rendering provider for the services.
According to prosecutors, Pasillas—who held operational leadership roles at the businesses but had no medical license or certification—personally provided medical services to Medicare beneficiaries, including wound care and the application of costly skin substitute allografts.
Over the six-month period, the defendants allegedly submitted approximately $9.5 million in claims to Medicare and received approximately $5.5 million in reimbursements.
The indictment further alleges the pair diverted fraud proceeds for personal use, including more than $4.7 million in cash withdrawals, deposits into their personal bank accounts, and rent payments for Cardenas’ residence while she remained in custody.
“Every dollar stolen through health care fraud is a dollar taken from patient care,” said U.S. Attorney Adam Gordon.
“Those who commit health care fraud cause real harm because they drain critical resources from programs meant to support some of our most vulnerable community members,” said Special Agent in Charge Mark Remily of the FBI’s San Diego Field Office. “Schemes like this undermine trust in our health care system and drive up costs for everyone. Working closely with HHS OIG and the Justice Department, the FBI will continue to pursue those who exploit federally funded programs and ensure they face the consequences of their actions.”
The charges announced today by U.S. Attorney Adam Gordon are part of a strategically coordinated, nationwide law enforcement action that resulted in charges against 455 defendants, including 90 doctors and other licensed medical professionals, for their alleged participation in health care fraud and opioid abuse schemes involving over $6.5 billion in false claims and significant patient harm, including death. Today’s takedown represents a new era in federal, state, and international cooperation to combat health care fraud: cases in 56 federal districts and 45 U.S. states and territories, with 50 state Medicaid Fraud Control Units participating, the most in Department history.
In addition, unprecedented international cooperation over the two-week takedown resulted in the apprehension and return to the United States of the following health care fraudsters: one defendant in Kyrenia in connection with an over $3.7 billion scheme; two defendants in Estonia in connection with a previously charged $10.6 billion scheme; and, in the Philippines, one of FBI’s Most Wanted Fraudsters in connection with a previously-charged $1.2 billion telemedicine fraud scheme. The takedown involves the cutting-edge use of data analytics to target the worst actors; the seizure of over $182 million in cash, luxury vehicles, jewelry, and other assets; and full-spectrum accountability for all criminal actors from doctor’s offices to corporate boardrooms.
Today’s coordinated enforcement action involves a whole-of-government approach, including:
- Actions by the Centers for Medicare and Medicaid Services (CMS) to suspend 1,079 providers and revoke billing privileges for 1,403 providers.
- 48 Civil Monetary Payment settlements amounting to over $73 million, over 1,400 provider exclusions, and 25 actions by the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”) under the Civil Monetary Penalties Law seeking more than $10 billion in payments to the Medicare Trust Fund from payments that CMS caught and suspended before the funds were paid to the fraudulent providers.
- Civil charges against 13 defendants for $14.8 million in health care fraud schemes, as well as civil settlements with 31 defendants totaling $23 million.
- 928 administrative cases by the Drug Enforcement Administration (DEA) seeking the revocation of authority to handle and/or prescribe controlled substances since October 1, 2025.
The cases are being prosecuted by the Health Care Fraud Unit’s National Rapid Response, Florida, Gulf Coast, Los Angeles, Midwest, New England, Northeast, Texas, and West Coast Strike Forces; U.S. Attorneys’ Offices for the Middle District of Alabama, District of Arizona, Central District of California, Southern District of California, District of Colorado, District of Connecticut, District of Delaware, Middle District of Florida, Northern District of Florida, Southern District of Florida, Northern District of Georgia, District of Hawaii, District of Idaho, Northern District of Illinois, Northern District of Iowa, Southern District of Iowa, Western District of Kentucky, Eastern District of Louisiana, Middle District of Louisiana, District of Massachusetts, Eastern District of Michigan, Southern District of Mississippi, District of Montana, District of Nebraska, District of New Hampshire, District of New Jersey, District of New Mexico, Eastern District of New York, Northern District of New York, Southern District of New York, Eastern District of North Carolina, Middle District of North Carolina, Western District of North Carolina, Northern District of Ohio, Northern District of Oklahoma, Western District of Oklahoma, District of Oregon, Eastern District of Pennsylvania, Middle District of Pennsylvania, Western District of Pennsylvania, District of Puerto Rico, District of Rhode Island, District of South Carolina, District of South Dakota, Middle District of Tennessee, Western District of Tennessee, Northern District of Texas, Southern District of Texas, Western District of Texas, District of Vermont, Eastern District of Virginia, Western District of Virginia, Northern District of West Virginia, Southern District of West Virginia, Eastern District of Wisconsin, and Western District of Wisconsin; and State Attorneys General’s Offices, through their MFCUs, in Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, Tennessee, Utah, Vermont, Virgin Islands, Washington, Wisconsin, and West Virginia. In addition, the MFCUs for Alabama, North Carolina, South Dakota, Texas, and Virigina participated in the investigation of federal cases announced today.
Descriptions of each case involved in today’s enforcement action are available on the Department’s website here.
The case in the Southern District of California is being prosecuted by Assistant U.S. Attorney Blanca Quintero.
DEFENDANTS Case Number 26cr2236
Blanca Estela Cardenas Age: 55 Chula Vista, CA
Raquel Pasillas Age: 33 Chula Vista, CA
SUMMARY OF CHARGES
Conspiracy to Commit Health Care Fraud – Title 18, U.S.C., Sec. 1349
Maximum penalty: Ten years in prison, $250,000 fine or twice the pecuniary gain or loss, whichever is greater
Health Care Fraud – Title 18, U.S.C., Sec. 1347
Maximum penalty: Ten years in prison, $250,000 fine or twice the pecuniary gain or loss, whichever is greater
INVESTIGATING AGENCIES
FBI
U.S. Department of Health and Human Services Office of Inspector General
*Indictments and criminal complaints are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division ('Fraud Division'). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
San Diego Man Admits Role in Alien Smuggling Scheme that Held Migrants for Ransom; Distraught Families Paid Thousands but Two Remain MissingRead the Press Release
SAN DIEGO – Isaac Jimenez, a U.S. citizen and San Diego resident, pleaded guilty in federal court today, admitting his role in an alien smuggling conspiracy that held would-be migrants hostage in Mexico while demanding ransom payments from distraught families who paid tens of thousands of dollars in vain.
As part of his plea, Jimenez acknowledged that he coordinated alien smuggling events that brought migrants to the United States from Mexico illegally for a price. Jimenez further admitted he collected ransom payments from family members of migrants who, instead of being smuggled into the U.S., were held against their will in Tijuana, never to be seen again. In at least two cases, the victims—a father of four U.S. citizen children and a young woman from Tijuana—disappeared after their families made multiple ransom payments to secure their freedom.
According to his plea agreement, although Jimenez did not personally hold migrants captive, he knew his coconspirators were committing these acts in furtherance of the broader smuggling scheme. Despite that knowledge, he continued to participate in the conspiracy and committed acts to advance it.
For example, in September 2024, Jimenez personally collected $15,000 in ransom payments from the U.S. citizen wife of the father of four who was being held against his will in Mexico by the smuggling organization. Jimenez admitted he later transported the $15,000 to Mexico and delivered it to his coconspirators. Afterward, additional ransom demands were made by the organization, some of which the man’s spouse and other family members were able to pay. Despite these payments, the smuggling organization threatened to kill the man unless his family made additional payments. After the family could give no more money, all communications from the smuggling organization ceased. The man’s whereabouts remain unknown. According to his plea agreement, to the best of Jimenez’s knowledge, the man was killed in Mexico.
In December 2024, Jimenez agreed to coordinate the smuggling of a 20-year-old woman from Tijuana, Mexico, for a smuggling fee of $7,000. Before the woman was smuggled into the United States, however, Jimenez’s coconspirators in Mexico held her against her will and demanded $30,000 from her family in exchange for her release. The smuggling organization then sent video calls to the woman’s fiancé and family members showing them pointing firearms at her and kicking her in the chest and head. The conspirators threatened to kill the woman if their ransom demands were not met. Despite the woman’s family sending an additional $10,000 to the smuggling organization, she was still not released. To the best of Jimenez’s knowledge, the woman was killed in Mexico.
As part of his guilty plea, Jimenez has agreed to pay $24,500 to the family members of the missing migrants, for funeral and related expenses and as restitution for a portion of the ransom payments made to the smuggling organization in the course of the conspiracy.
Jimenez is scheduled to be sentenced on September 11, 2026, before U.S. District Judge Janis L. Sammartino.
This case is being prosecuted by Assistant U.S. Attorney Robert J. Miller and Special Assistant U.S. Attorney Samson Schatz.
DEFENDANT Case Number 25cr2648-JLS
Isaac Jimenez Age: 30 San Diego, CA
SUMMARY OF CHARGES
Conspiracy to Bring in Certain Aliens – Title 18, U.S.C., Section 371, and Title 8, U.S.C., Section 1324(a)(2)(B)(ii)
Maximum penalty: Five years in prison and $250,000 fine
Bringing in Aliens for Financial Gain – Title 8, U.S.C., Section 1324(a)(2)(B)(ii)
Maximum penalty: Ten years in prison (and a mandatory minimum three years) and $250,000 fine
INVESTIGATING AGENCY
Homeland Security Investigations
This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime.
This case was investigated and prosecuted by the California Homeland Security Task Force (HSTF) as part of Operation Take Back America. HSTFs, which were established by President Trump in Executive Order 14159, Protecting the American People Against Invasion, are joint operations led by the Department of Justice and the Department of Homeland Security. Operation Take Back America is a nationwide federal initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
U.S. Attorney’s Office Filed 75 Border-Related Cases This WeekRead the Press Release
SAN DIEGO – Federal prosecutors in the Southern District of California filed 75 border-related cases this week, including charges of bringing in aliens for financial gain, reentering the U.S. after deportation, and importation of controlled substances.
The U.S. Attorney’s Office for the Southern District of California is the fourth-busiest federal district, largely due to a high volume of border-related crimes. This district, encompassing San Diego and Imperial counties, shares a 140-mile border with Mexico. It includes the San Ysidro Port of Entry, the world’s busiest land border crossing, connecting San Diego (America’s eighth largest city) and Tijuana (Mexico’s second largest city).
In addition to reactive border-related crimes, the Southern District of California also prosecutes a significant number of proactive cases related to terrorism, organized crime, drugs, white-collar fraud, violent crime, cybercrime, human trafficking and national security. Recent developments in those and other significant areas of prosecution can be found here.
A sample of border-related arrests this week:
- On June 6, Ana Sanchez, a United States citizen, was arrested and charged with Importation of a Controlled Substance. According to a complaint, Customs and Border Protection officers at the San Ysidro Port of Entry discovered 31 pounds of fentanyl and 21 pounds hidden in the seats and quarter panels of her car. She was previously convicted of the federal offense of importing drugs into the Southern District in 2018.
- On June 9, Carlos Nunez-Valdivia, a Mexican national, was arrested and charged with Attempted Entry after Deportation . According to a complaint, Nunez-Valdivia applied for admission to the United States at the Otay Mesa Port of Entry by falsely claiming to be a lawful permanent resident. He has been previously deported at least three times.
- On June 9, Victor Manuel Garcia-Ramirez, a United States citizen, was arrested and charged with Bringing in Aliens for Financial Gain. According to a complaint, Garcia-Ramirez attempted to smuggle two undocumented Chinese nationals into the United States at the San Ysidro Port of Entry inside a non-factory compartment built beneath the undercarriage of a Nissan Armada.
The immigration cases were referred or supported by federal law enforcement partners, including Homeland Security Investigations (HSI), Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), Customs and Border Protection, U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the support and assistance of state and local law enforcement partners.
Indictments and criminal complaints are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Husband and Wife Plead Guilty in International Property Theft SchemeRead the Press Release
SAN DIEGO –Victor Hugo Villalobos Almazan and his wife, Nayeli Noemi Montoya Rodriguez, Mexican nationals who entered the U.S. on tourist visas, pleaded guilty in federal court today to bank fraud charges, admitting they participated in a conspiracy to fraudulently sell homes they did not own and launder approximately $1 million in proceeds.
According to the plea agreement, conspirators posed as legitimate property owners and used fraudulent documents to sell real estate they did not own to unsuspecting buyers. They then routed the proceeds from the illegal sales through bank accounts controlled by the defendants.
To carry out the scheme, the defendants’ co-conspirators created email addresses that closely resembled those of the legitimate property owners and used them to market properties they did not own to unsuspecting buyers, the plea agreement said. By conducting transactions entirely through email, they avoided meeting buyers in person and concealed their identities.
Once a sale was arranged, the defendants’ co-conspirators used forged property transfer documents that falsely appeared to bear the property owner’s signature, allowing ownership of the property to be fraudulently transferred to the unwitting buyer. Villalobos and Montoya admitted they opened bank accounts using business names similar to those of the legitimate property owners and used those accounts to receive the illicit proceeds from the fraudulent sales before transferring the money abroad.
Specifically, Villalobos and Montoya admitted they lied to open bank accounts to facilitate the illegal sales of homes at 3873 36th Street and 555 Hollister Street in San Diego. The plea agreement said the defendants received:
- $400,748.41 of illicit proceeds from the fraudulent sale of 3873 36th Street. In April 2023, Montoya transmitted nearly the entire amount of money to bank accounts in Mexico.
- $561,463.25 of illicit proceeds from the fraudulent sale of 555 Hollister Street. Upon receipt, Villalobos withdrew all the money by international wire transfers to accounts in Mexico and Jordan, and in cash withdrawals.
The defendants are scheduled to be sentenced on September 4, 2026, at 9 a.m. before U.S. District Judge Dana M. Sabraw.
This case is being prosecuted by Assistant U.S. Attorneys Christopher Beeler and David Kete.
DEFENDANTS Case Number 25-CR-4686-DMS
Victor Hugo Villalobos Almazan Age: 48 Mexico
Nayeli Noemi Montoya Rodriguez Age: 48 Mexico
SUMMARY OF CHARGES
Bank Fraud Conspiracy – Title 18, U.S.C., Section 1349
Maximum penalty: Thirty years in prison and $250,000 fine
Bank Fraud – Title 18, U.S.C., Section 1344(2)
Maximum penalty: Thirty years in prison and $250,000 fine
INVESTIGATING AGENCIES
Homeland Security Investigations
Internal Revenue Service Criminal Investigation
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division ('Fraud Division'). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
SDPD Detective Sergeant Bill Miles Honored with First Hometown Hero Award for Leadership in Combating Fentanyl Overdose DeathsRead the Press Release
SAN DIEGO – San Diego Police Detective Sergeant William “Bill” Miles today received the first “Hometown Hero” Award in recognition of his extraordinary leadership, compassion, and tireless efforts to combat the fentanyl epidemic in San Diego County.
The inaugural award was presented by U.S. Attorney Adam Gordon at a ceremony at the DEA San Diego headquarters today.
In commemoration of America’s 250th anniversary, the 2026 Hometown Hero award was established to recognize individuals who exemplify the enduring American ideals of liberty, service, and civic responsibility. The program selected one Hometown Hero for each of the nation’s 93 U.S. Attorneys’ Offices.
Detective Sergeant Miles was selected for his extraordinary dedication to seeking justice for families devastated by fentanyl and his tireless efforts to remove dangerous drug traffickers from local communities.
A 28-year veteran of the San Diego Police Department, Detective Sergeant Miles has served since 2023 as Group Supervisor of the Overdose Response Team, a multi-agency task force led by the Drug Enforcement Administration in partnership with Homeland Security Investigations, Naval Criminal Investigative Service, the San Diego County District Attorney’s Office, La Mesa Police Department, the California National Guard Counterdrug Task Force, and the California Department of Health Care Services.
The Overdose Response Team was established to confront the alarming rise in overdose deaths across San Diego County by investigating fentanyl and other dangerous drug distributions linked to fatal overdoses. The team responds to overdose deaths in the cities of San Diego and La Mesa, conducts follow-up investigations, and pursues both state and federal prosecutions against those responsible for distributing deadly narcotics.
Under Detective Sergeant Miles’ leadership, the team has responded to more than 315 overdose deaths, leading to countless investigations and numerous successful prosecutions that have brought accountability and a measure of justice to grieving families. His efforts also contributed to a significant 39 percent decline in overdose deaths, from a high of 814 in 2022 to 494 in 2024.
As Group Supervisor, Detective Sergeant Miles oversees a team of eight to 10 investigators and two analysts. Known for his unwavering dedication, he is available around the clock and routinely responds to overdose scenes and investigative operations at all hours of the day and night. In addition to leading operations, he frequently works directly in the field alongside investigators.
Beyond his investigative work, Detective Sergeant Miles has earned the admiration of victims’ families for his compassion and humanity during some of the darkest moments of their lives. Family members have repeatedly expressed gratitude for the empathy and support he provides while relentlessly pursuing justice against those responsible for distributing deadly fentanyl.
Detective Sergeant Miles also champions outreach and intervention efforts aimed at preventing future overdose deaths and connecting community members with critical resources. The Overdose Response Team has been recognized nationally as a model for combating the opioid epidemic and has played a vital role in the significant reduction of overdose deaths in San Diego County.
“Detective Sergeant Miles’ dedication to protecting the community, supporting victims’ families, and holding fentanyl traffickers accountable has touched countless lives,” said U.S. Attorney Adam Gordon. “His service exemplifies the very meaning of a hometown hero.”
“Sergeant Miles embodies the spirit of public service and is an invaluable member of the DEA San Diego team,” said DEA Special Agent in Charge James Nunnelly. “He is committed to finding answers and accountability for families who have been torn apart by fentanyl and bringing to justice those who threaten the safety of our community. We are truly honored to have Sergeant Miles on our team.”
Detective Sergeant Miles said: “Receiving this award is a tremendous honor and a testament to the work of the Narcotics Task Force Overdose Response Team (Team 10). I have had the privilege of leading an exceptional group of professionals whose dedication, investigative expertise, and commitment to justice have made a meaningful impact in our community. This recognition belongs to every member of Team 10 and to our community partners who work alongside us to identify and apprehend those responsible for distributing deadly drugs.”
U.S. Attorney’s Office Filed 148 Border-Related Cases This WeekRead the Press Release
SAN DIEGO – Federal prosecutors in the Southern District of California filed 148 border-related cases this week, including charges of bringing in aliens for financial gain, reentering the U.S. after deportation, and importation of controlled substances.
The U.S. Attorney’s Office for the Southern District of California is the fourth-busiest federal district, largely due to a high volume of border-related crimes. This district, encompassing San Diego and Imperial counties, shares a 140-mile border with Mexico. It includes the San Ysidro Port of Entry, the world’s busiest land border crossing, connecting San Diego (America’s eighth largest city) and Tijuana (Mexico’s second largest city).
In addition to reactive border-related crimes, the Southern District of California also prosecutes a significant number of proactive cases related to terrorism, organized crime, drugs, white-collar fraud, violent crime, cybercrime, human trafficking and national security. Recent developments in those and other significant areas of prosecution can be found here.
A sample of border-related arrests this week:
- On May 30, Luis Andres Pereyda Gonzalez, a Mexican national, was arrested and charged with Importation of a Controlled Substance. According to a complaint, Customs and Border Protection officers discovered 203 pounds of cocaine concealed in the bed of his Ford F-150 truck as he tried to cross the border at the San Ysidro Port of Entry.
- On June 2, Lorenzo Mendoza-Hernandez, a Mexican citizen, was arrested and charged with Deported Alien Found in the United States. According to a complaint, Border Patrol agents apprehended Mendoza-Hernandez, an unauthorized alien who was previously deported in 2016 through Calexico, after a brief foot chase about three miles north of the border and eight miles west of the Tecate and Port of Entry.
- On June 3, Qi Hua He, a U.S. citizen, was arrested and charged with Bringing in Aliens for Financial Gain. According to a complaint, He attempted to smuggle in a Chinese national via the San Ysidro Port of Entry using a passport that had been lawfully issued to someone else.
The immigration cases were referred or supported by federal law enforcement partners, including Homeland Security Investigations (HSI), Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), Customs and Border Protection, U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the support and assistance of state and local law enforcement partners.
Indictments and criminal complaints are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
San Diego CPA Pleads Guilty to $5 Million Tax Fraud SchemesRead the Press Release
SAN DIEGO – Oladapo Olagbemi, a longtime certified public accountant, pleaded guilty in federal court today, admitting that he filed thousands of false income tax returns on behalf of clients that resulted in more than $5 million in improper deductions and credits.
Olagbemi, who managed San Diego-based D.A.O. Accounting, Consulting, and Taxation, pleaded guilty to four counts of aiding and assisting the preparation of false tax returns. Shortly before tax day, April 15, 2026, he signed a plea agreement in which he admitted to multiple schemes between tax years 2019 and 2023 to help clients get illegitimate refunds by claiming business expenses, charitable gifts, and energy credits to which the taxpayers were not entitled.
Olagbemi is scheduled to be sentenced on August 28, 2026, before U.S. District Judge Ruth Bermudez Montenegro.
Based on Olagbemi’s plea agreement, one of his schemes was preparing false Schedules 1, C, and E accompanying his client’s individual income tax returns between at least 2020 and 2023. He prepared returns that reported false business losses totaling hundreds of thousands of dollars. Taxpayer clients had no such reportable business, and the expenses he claimed for them were non-deductible personal expenses. Olagbemi knew the taxpayers were not entitled to report such losses or the resulting decreases in taxable income. During that four-year period, he prepared at least 5,470 Form 1040 returns with Schedules C. At least 3,981 of those had no gross receipts for the falsely claimed businesses.
Another of Olagbemi’s schemes was preparing false Forms 2106 to accompany taxpayers’ Form 1040 returns. On this form, Olagbemi advised and presented to the IRS purported business expenses and resulting decreases in taxable income, even though he knew the taxpayer was not permitted to use the 2106 form because they were not a fee-based state or local government official. Between 2020 and 2023, Olagbemi was involved in presenting to the IRS at least 1,684 Forms 2106 with individual clients’ tax returns. After Olagbemi became aware of the IRS’s investigation of his fraudulent use of Schedule C returns, he increased his use of fraudulent use of Forms 2106—and prepared several of them even after being notified by the IRS about the proper uses of this form.
Olagbemi also used Schedules A to prepare and submit false income tax returns. On these documents, he falsely claimed or overstated gifts to charity and corresponding itemized deductions of tens of thousands of dollars, even though he knew the taxpayer was not entitled to report such charitable contributions.
Further, based on the plea agreement, Olagbami prepared individual tax returns falsely claiming residential energy credits. He prepared and presented false Forms 5695 to accompany Form 1040 tax returns between at least 2021 and 2023. On these Forms 5695, he advised a taxpayer client to falsely claim solar water heating property costs, even though he knew the client did not purchase or have any such costs and was not entitled to report them or the corresponding tax credits.
Based on the plea and restitution agreements, Olagbemi agreed to restitution of least $1,522,794 based on his schemes and resulting tax losses between 2018 and 2023. He also agreed to be permanently prohibited from preparing, assisting in, directing, or supervising the preparation or filing of federal tax returns for anyone other than himself.
The case is being prosecuted by Assistant U.S. Attorney Peter Horn.
DEFENDANT Case Number 26CR1982-RBM
Oladapo Olagbemi Age: 72 San Diego, CA
SUMMARY OF CHARGES
Aiding and Assisting in Preparation of False Income Tax Returns – Title 26, United States Code, Section 7206(2)
Maximum penalty (per count): Three years in prison; fine of up to $250,000
INVESTIGATING AGENCY
Internal Revenue Service Criminal Investigation
Four Charged with Trafficking More Than $45 Million Worth of Cocaine through Sophisticated Cross-Border Tunnel; Discovery Made in Monthslong Homeland Security Task Force InvestigationRead the Press Release
SAN DIEGO – A Homeland Security Task Force federal drug investigation of a supposed retail store in Otay Mesa has resulted in the discovery of a sophisticated cross-border tunnel and charges against four people for conspiring to distribute more than a ton of cocaine estimated to be worth $45 million.
The subterranean passageway, stretching from Tijuana, Mexico to the purported retail store near the Otay Mesa Port of Entry known as “Buy 4 Less,” is estimated to be about 1,933 feet long, 55 feet deep and 4.5-feet in height, with reinforced walls, rail and ventilation systems and electricity.
The defendants include Gregorio Epifanio Hernandez Lopez of San Diego; Brandon Escalante Sandoval of Mexico; Jose Jimenez of San Diego; and Antonio Cortez of Mexico. Hernandez Lopez is charged with Conspiracy to Use a Cross-Border Tunnel and Conspiracy to Import Controlled Substances; all are charged with Conspiracy to Distribute Controlled Substances.
According to a federal complaint, investigators from Homeland Security Investigations Tunnel Task Force maintained regular surveillance on the Buy 4 Less warehouse from December 2025 to May 2026 due to suspicious activity there.
In December 2025, a new group of around seven or eight “employees” were seen regularly, in and around Buy 4 Less. These individuals included defendant Hernandez, whom agents observed at Buy 4 Less beginning in at least January 2026. During the surveillance, the activity around the Buy 4 Less location did not appear to be consistent with a normal retail location. For example, investigators observed minimal foot traffic from customers coming in and out of the Buy 4 Less store.
Hernandez and the other supposed “employees” that regularly frequented the store engaged in unusual activity such as transporting large numbers of suitcases out of the store and into vehicles or walking the suitcases across the border into Mexico. Based on how Hernandez and the others handled the suitcases, they appeared to be empty so law enforcement did not intervene.
According to the complaint, on May 29, 2026, while conducting surveillance on Buy 4 Less, agents observed a male loading three large, heavy items into a white van which departed Buy 4 Less and ultimately parked on the street near a mechanic shop located at 923½ Coolidge Ave. A male on a bicycle, later identified as defendant Brandon Escalante, was seen conducting counter surveillance in the area by riding his bicycle while looking around and into parked cars.
Escalante later approached the van, removed the vehicle key that had been concealed in the gas cap area, got into the van and reversed it into 923½ Coolidge Avenue. Agents observed that the van was backed up to another white van with the rear doors from both vans open. A white stake bed truck then entered 923½ Coolidge Avenue. Agents watched people remove three deep freezers from the first van and place them onto the bed of the truck, then load the deep freezers with packages.
After the packages were loaded into the deep freezers, the truck exited 923½ Coolidge Avenue and parked a short distance away. Escalante was seen exiting the truck, grabbing his bicycle from the truck bed, placing the keys underneath the truck on the passenger side, and departing the area. Agents then observed another male, later identified as Defendant Jimenez, grab the vehicle keys and drive away in the truck. San Diego County Sheriff’s deputies subsequently conducted a traffic stop of the truck, with lights flashing, and a K9 police dog alerted to the presence of controlled substances.
Shortly after the traffic stop of the truck, agents watching Buy 4 Less observed two unidentified males take heavy boxes out of Buy 4 Less and load them into a second truck. Hernandez entered the second truck and drove away. San Diego County Sheriff’s deputies conducted a traffic stop of that second truck a short distance away from the Buy 4 Less, and a K9 police dog alerted to the presence of controlled substances.
San Diego Sheriff's deputies also stopped the second van, driven by a male later identified as Antonio Cortez, at 923½ Coolidge Avenue. Sheriff’s deputies again received a positive K9 alert for the presence of controlled substances in the vehicle.
According to the complaint, following the traffic stops, federal agents discovered the following during inspections of the second van and two trucks:
• 173 total packages in the truck stopped near 923½ Coolidge Avenue, with a total approximate weight of 286.20 kgs (630.96 lbs.);
• 423 total packages in the truck stopped near Buy 4 Less, with a total approximate weight of 469.40 kgs (1034.84 lbs.); and
• 255 total packages in the van stopped near 923½ Coolidge Avenue, with a total approximate weight of 274 kgs (604.06 lbs.).
The packages contained a substance, a sample of which field tested positive for cocaine, with a total approximate weight of 1,029.60 kgs (2,269.87 pounds)—or well over 1 ton.
Following seizure of the suspected cocaine on May 29, 2026, a U.S. Magistrate Judge signed warrants authorizing searches at Buy 4 Less and 923½ Coolidge Avenue. At Buy 4 Less, agents found the exit point of the subterranean tunnel, concealed under the floor of a storage room within the store. The tunnel, which was accessed using a sophisticated hydraulic lift, is approximately 55 feet deep and extends approximately 1,064 feet from its exit point at Buy 4 Less to the U.S./Mexico International Border, where agents estimate it continues for another approximately 800 feet to its entry point. The tunnel is equipped with electricity and ventilation and, at some points, is up to 4.5 feet tall.
“For these defendants, it wasn’t a light at the end of the tunnel. It was lights and sirens,” said U.S. Attorney Adam Gordon.
“This investigation and seizure represent a significant blow to the Jalisco New Generation Cartel. The discovery and dismantlement of this sophisticated cross-border tunnel, along with the seizure of more than a ton of cocaine, underscore the commitment and collaboration of Homeland Security Investigations and our Homeland Security Task Force (HSTF) partners” said Kevin Murphy, acting Special Agent in Charge for HSI San Diego. “HSI Special Agents and task force members worked tirelessly to disrupt the flow of dangerous narcotics into our communities, and we remain steadfast in our mission to protect the public and keep our communities safe.”
“Criminal organizations continue to look for ways to exploit our border, but they underestimate the determination of the men and women protecting it,” said U.S. Border Patrol San Diego Sector Chief Patrol Agent Justin De La Torre. “This tunnel’s discovery is a testament to our strong partnerships and the unwavering commitment of law enforcement on both sides of the border.”
“Law enforcement collaboration is the backbone of dismantling sophisticated transnational drug cartels, as these organizations rely on vast illicit supply chains spanning multiple jurisdictions,” said San Diego County Sheriff Kelly Martinez. “Joint operations disrupt trafficking networks, choke illicit financial flows, and prevent transnational cartels from exploiting jurisdictional gaps. The Sheriff's Office is grateful for the partnerships, hard work, and dedication of everyone involved in this investigation and we will continue to support our federal partners in cases that keep our communities safe.”
“The San Diego Imperial Valley HIDTA proudly supports federal, state and local law enforcement agencies in their efforts to target transnational criminal organizations who place a priority on proceeds from drug trafficking over human lives,” said David King, Executive Director of San Diego Imperial Valley HIDTA. “The drugs recovered from this sophisticated cross border tunnel will thankfully never make it into communities throughout California and the United States thereby saving countless lives from the scourges of drug addiction and overdose deaths.”
There have been 99 subterranean passages discovered in the Southern District of California since 1993. Of those, 28 were considered sophisticated. The last operational tunnel discovered in the Southern District of California was in 2022.
The defendants are scheduled to be arraigned this afternoon by U.S. Magistrate Judge Valerie E. Torres.
This case is being prosecuted by Assistant U.S. Attorneys Michael Deshong and Jordan Arakawa.
Video of the tunnel:
https://youtube.com/shorts/PkMfeXh6C6Y
https://youtube.com/shorts/6D0kSckaSE0
DEFENDANTS Case Number 26mj03219
Gregorio Epifanio Hernandez Lopez Age: 29 San Diego, California
Jose Jimenez Age: 32 San Diego, California
Antonio Cortez Age: 18 Mexico
Brandon Escalante Sandoval Age: 26 Mexico
SUMMARY OF CHARGES
Constructing, Financing, or Using Unauthorized Tunnels—Title 18, U.S.C., Section 555
Maximum penalty: Life in prison and $10 million fine
*Hernandez Lopez
Importation of a Controlled Substance—Title 21, U.S.C., Section 841 and 846
Maximum penalty: Life in prison and $10 million fine
*Hernandez Lopez
Distribution of a Controlled Substance—Title 21, U.S.C., Section 841 and 846
Maximum penalty: Life in prison and $10 million fine
*All defendants
INVESTIGATING AGENCIES
Homeland Security Investigations
U.S. Border Patrol
San Diego County Sheriff’s Office
Drug Enforcement Administration
U.S. Customs and Border Protection
Federal Bureau of Investigation
High Intensity Drug Trafficking Area Program
California Department of Justice
*Indictments and criminal complaints are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. HSTF San Diego comprises agents and officers from FBI, Homeland Security Investigations, DEA, ATF, U.S. Marshals, Department of Defense, U.S. Postal Inspection Service, Naval Criminal Investigative Service, IRS Criminal Investigation, U.S. Coast Guard, U.S. Customs and Border Protection and Interpol, with the prosecution being led by the United States Attorney’s Office for the Southern District of California.
High Intensity Drug Trafficking Areas (HIDTA) program, created by Congress with the Anti-Drug Abuse Act of 1988, provides assistance to Federal, state, local, and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States. This grant program is administered by the Office of National Drug Control Policy (ONDCP). There are currently 33 HIDTAs, and HIDTA-designated counties are located in 50 states, as well as in Puerto Rico, the U.S. Virgin Islands, and the District of Columbia.
U.S. Attorney’s Office Filed 119 Border-Related Cases This WeekRead the Press Release
SAN DIEGO – Federal prosecutors in the Southern District of California filed 119 border-related cases this week, including charges of bringing in aliens for financial gain, reentering the U.S. after deportation, and importation of controlled substances.
The U.S. Attorney’s Office for the Southern District of California is the fourth-busiest federal district, largely due to a high volume of border-related crimes. This district, encompassing San Diego and Imperial counties, shares a 140-mile border with Mexico. It includes the San Ysidro Port of Entry, the world’s busiest land border crossing, connecting San Diego (America’s eighth largest city) and Tijuana (Mexico’s second largest city).
In addition to reactive border-related crimes, the Southern District of California also prosecutes a significant number of proactive cases related to terrorism, organized crime, drugs, white-collar fraud, violent crime, cybercrime, human trafficking and national security. Recent developments in those and other significant areas of prosecution can be found here.
A sample of border-related arrests this week:
- On May 23, Diego Salinas, a U.S. citizen, was arrested and charged with Importation of a Controlled Substance. According to a complaint, Customs and Border Protection officers found more than 104 pounds of methamphetamine concealed in the firewall, dashboard and both front seats of a vehicle driven by the defendant. Salinas, who had applied for entry to the U.S. at the San Ysidro Port of Entry, admitted being paid $5,000 to smuggle narcotics into the U.S.
- On May 23, Juan David Garzon Laverde, Ivan Sendejas-Cervantes, Jose Luis Cardoso-Aguilera, Jose Alfredo Hernandez-Medina and Antonio Palacios-Ruiz - all Mexican nationals - were arrested and charged in connection with a maritime smuggling event. According to a complaint, Garzon, the alleged boat captain, was charged with Attempted Transportation of Illegal Aliens; Sendejas-Cervantes, who was allegedly guiding the aliens across the beach in Carlsbad after the boat came ashore, was charged with Bringing in Aliens for Financial Gain; and the remaining defendants were charged with Attempted Entry after Deportation.
- On May 27, Jose Luis Cruz-Cruz, a Mexican national, was arrested and charged with Attempted Entry after Deportation. According to a complaint, Border Patrol agents found Cruz hiding in a bush about 100 yards north of the border and five miles west of the San Ysidro Port of Entry.
The immigration cases were referred or supported by federal law enforcement partners, including Homeland Security Investigations (HSI), Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), Customs and Border Protection, U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the support and assistance of state and local law enforcement partners.
Indictments and criminal complaints are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Sheriff’s Deputy Sentenced to 12 Years for Fatal Shooting of Unarmed Fleeing ArresteeRead the Press Release
SAN DIEGO – Former San Diego County Sheriff’s Deputy Aaron Richard Russell was sentenced in federal court today to 12 years in prison for fatally shooting a 36-year-old unarmed man who was struck four times from behind as he tried to run away from authorities.
Russell was convicted by a federal jury in March following a two-week trial and less than seven hours of deliberation. The jury found that the defendant violated the civil rights of the victim, Nicholas Bils, by fatally shooting him in the back as he ran away.
At trial, Russell was found guilty of both counts filed against him. For Count 1 - Deprivation of Rights Under Color of Law – he was sentenced to 24 months; For Count 2, he received the mandatory minimum sentence of 120 months for Use and Discharge of a Firearm During and In Relation to a Crime of Violence. The sentenced are to be served consecutively, for a total of 12 years.
“The Constitution protects every person from the unjustified use of deadly force by law enforcement officers,” said U.S. Attorney Adam Gordon.
“Today's sentence demonstrates the FBI's sworn duty to investigate any potential civil rights violation,” said Special Agent in Charge Mark Remily of the FBI San Diego Field Office. “Working closely with the U.S. Attorney's Office, the FBI will always stand behind our mission of upholding the Constitution and protecting the American people.”
Russell, who has been free on bond, was ordered to report to prison by July 13 at noon.
Before pronouncing sentence, U.S. District Judge Todd Robinson said: “Law enforcement is rightfully held to a higher standard because of the power they’re imbued with to protect the community…It is difficult to imagine offense conduct more aggravated than intentionally taking the life of another person.”
In a statement from the victim’s mother that was read by prosecutors at the hearing, Kathleen Bils said the loss of her son was “excruciating.” She described him as kind, thoughtful and gentle. “No mother should ever be awakened in the middle of the night to hear her child has been killed by law enforcement for running away. To hear that those trained and sworn to protect us have shot and killed one of us for fleeing is egregious.”
The victim’s cousin recalled a happy childhood growing up with Bils, and her grief over his killing. “My faith has been shattered. My family has been shattered . . . I just want Nicky to come home, but he won’t.”
According to evidence presented at trial, on May 1, 2020, the defendant—who at the time was a deputy with the San Diego Sheriff’s Department—fired five shots at the unarmed victim as he attempted to flee from custody while California State Parks Police officers were transporting him to the San Diego Central Jail in downtown San Diego. Four of the rounds fired by the defendant hit Bils, including one that struck Bils squarely in the back and fatally pierced his heart and lung. After being shot, Bils staggered to the northwest corner of Front and B Streets, where he collapsed, his body falling half on the sidewalk and half in a planter next to a tree. Other officers and paramedics tried to save his life, but he was pronounced dead shortly after being transported to the hospital.
The shooting was captured on multiple surveillance cameras along Front Street, as well as on body-worn camera footage from officers who responded to the scene shortly afterward. No other officer on scene at the time of the shooting even pulled their firearm when Bils began running away. At trial, multiple officers testified that it was apparent that Bils was not a threat to anyone, that they never for a moment considered shooting Bils, and that it “wasn’t even a close call.” Other eyewitnesses, including a nurse and a firefighter, testified that they were “shocked” that the defendant shot Bils in the back. Highlighting the extreme danger he unnecessarily created that day, the fifth round fired by the defendant struck a civilian vehicle that was traveling southbound on Front Street at the time.
This case is being prosecuted by Assistant U.S. Attorneys Seth Askins and Michael Songer and Department of Justice Civil Rights Trial Attorney Lia Wright Tesconi.
DEFENDANT Case Number 24-cr-1015
Aaron Richard Russell Age: 29
SUMMARY OF CHARGES
Deprivation of Rights Under Color of Law Using a Dangerous Weapon and Resulting in Death – 18 U.S.C. § 242
Maximum penalty: Life in prison and $500,000 fine
Use and Discharge of a Firearm During and In Relation to a Crime of Violence – 18 U.S.C. § 924(c)
Maximum penalty: Mandatory Minimum 10 years in prison and $500,000 fine
INVESTIGATING AGENCY
Federal Bureau of Investigation
Mexican National Sentenced for Role in Violent Drug Trafficking Organization Linked to Murders of Couple and Unborn ChildRead the Press Release
SAN DIEGO – Ricardo “Ricky” Orizaba-Zendejas, a Mexican national unlawfully present in the United States, was sentenced in federal court today to 20 years in prison for drug and firearms offenses tied to a violent trafficking organization based in Yakima, Washington.
According to evidence presented at trial in February, Orizaba served as a trusted lieutenant, drug dealer, and enforcer for the organization, which sourced narcotics from Mexico and transported them through Southern California ports of entry through California to Yakima.
Prosecutors established that the organization was linked to the murders of a husband and his pregnant wife, Cesar Murillo and Maira Hernandez, both former associates who had expressed a desire to leave the organization and cooperate with federal agents.
Evidence showed Orizaba played a central role in the organization’s operations, including trafficking fentanyl, heroin, methamphetamine and cocaine; transporting drug proceeds; collecting debts; arranging gun-for-drugs transactions; and protecting the organization’s leadership and drug loads.
The court heard testimony and reviewed exhibits reflecting Orizaba’s vital role in the organization that murdered and buried Murillo, Hernandez, and their unborn child to further its drug trafficking operations. The evidence showed the killings did not slow the organization’s activities; instead, Orizaba continued working closely with co-defendant Benjamin “Tony” Madrigal-Birrueta, the leader of the trafficking organization, in ongoing drug trafficking operations and threats of violence against those perceived to challenge the organization.
During a February 2023 search of Orizaba’s residence, agents seized more than 11,000 fentanyl pills, nearly one kilogram of fentanyl powder, more than 1.6 kilograms of heroin, a loaded AR-15 rifle, body armor, a money counter, scales, and cash packaging materials. A veteran Yakima narcotics detective testified during the trial the fentanyl seizure was the third largest in the Yakima area at the time.
At sentencing, U.S. District Court Judge Dana M. Sabraw told Orizaba, “It’s hard to overstate the nature and scope of this conspiracy, and the violence within that conspiracy.” Judge Sabraw added that Orizaba played a key role in that conspiracy, including a role in the distribution of methamphetamine, fentanyl and cocaine, trailing a load driver from Visalia to Washington, wiring money to others involved in the conspiracy, delivering large sums of money to co-conspirators in Los Angeles, buying guns for drugs, getting drugs from another witness, and responding to Madrigal’s orders, including as the enforcer or protector.
“This defendant was a critical part of a violent drug trafficking organization that chose to murder a young couple and their unborn child as they attempted to escape for a better life,” said U.S. Attorney Adam Gordon.
“Today’s sentencing is a testament to the tireless dedication and collaboration of HSI and our federal, state, and local HSTF partners to dismantle criminal organizations and bring justice to victims and their loved ones,” said HSI San Diego acting Special Agent in Charge Kevin Murphy. “The brutal murders of victims, and their unborn child were carried out by the cartel in furtherance of their illicit activity. We remain steadfast in our commitment to dismantling violent drug trafficking organizations and holding those responsible for such heinous crimes accountable.”
This case is being prosecuted by Assistant U.S. Attorneys Stephen Wong and Alexandra Foster.
DEFENDANT Case Number 23cr1684-DMS
Ricardo Orizaba-Zendejas Age: 23 Yakima, WA
SUMMARY OF COUNTS OF CONVICTION
Conspiracy to Distribute Controlled Substances – 21 U.S.C. §§ 841 and 846
Maximum penalty: Mandatory minimum sentence of twenty years and up to life, or death
Possession of a Firearm in Furtherance of a Drug Trafficking Crime – 18 U.S.C. § 924(c)
Maximum penalty: Mandatory minimum sentence of five years and up to life
INVESTIGATING AGENCIES
Homeland Security Investigations
Drug Enforcement Administration
Bureau of Alcohol, Tobacco, Firearms and Explosives
Washington State Police
California Highway Patrol
Yakima Police Department
Tulare County Sheriff’s Office
Visalia Police Department
Fresno Sheriff’s Office
Fresno Police Department
This case is part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. HSTF San Diego comprises agents and officers from FBI, Homeland Security Investigations, DEA, ATF, U.S. Marshals, Department of Defense, U.S. Postal Inspection Service, Naval Criminal Investigative Service, IRS Criminal Investigation, U.S. Coast Guard, U.S. Customs and Border Protection and Interpol, with the prosecution being led by the United States Attorney’s Office for the Southern District of California.
U.S. Attorney’s Office Filed 114 Border-Related Cases This WeekRead the Press Release
SAN DIEGO – Federal prosecutors in the Southern District of California filed 114 border-related cases this week, including charges of bringing in aliens for financial gain, reentering the U.S. after deportation, and importation of controlled substances.
The U.S. Attorney’s Office for the Southern District of California is the fourth-busiest federal district, largely due to a high volume of border-related crimes. This district, encompassing San Diego and Imperial counties, shares a 140-mile border with Mexico. It includes the San Ysidro Port of Entry, the world’s busiest land border crossing, connecting San Diego (America’s eighth largest city) and Tijuana (Mexico’s second largest city).
In addition to reactive border-related crimes, the Southern District of California also prosecutes a significant number of proactive cases related to terrorism, organized crime, drugs, white-collar fraud, violent crime, cybercrime, human trafficking and national security. Recent developments in those and other significant areas of prosecution can be found here.
A sample of border-related arrests this week:
- On May 15, Jose Alberto Garcia Zamudio, a U.S. citizen, was arrested and charged with Importation of a Controlled Substance. According to a complaint, Customs and Border Protection officers found more than 466 pounds of cocaine concealed in the gas tank of a commercial passenger bus driven by the defendant. Garcia, who had applied for entry to the U.S. at the San Ysidro Port of Entry, admitted being paid $13,000 to smuggle narcotics into the U.S.
- On May 19, Ashley Aremy Ruiz, a U.S. citizen, was arrested and charged with Attempted Transportation of Illegal Aliens and Conspiracy to Transport Aliens. According to a complaint, Ruiz was taken into custody at Costco in Chula Vista when she attempted to pick up an alien from a smuggler who had been caught with the alien in his trunk while trying to cross into the United States at the San Ysidro Port of Entry.
- On May 20, Federico Cruz Alverdin, a citizen of Mexico, was arrested and charged with Deported Alien Found in the United States. According to a complaint, Border Patrol agents found the defendant hiding in a tree about half a mile north of the border and 13 miles east of the Tecate Port of Entry. He was previously deported to Mexico on May 1, 2026, through Phoenix, Arizona.
The immigration cases were referred or supported by federal law enforcement partners, including Homeland Security Investigations (HSI), Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), Customs and Border Protection, U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the support and assistance of state and local law enforcement partners.
Indictments and criminal complaints are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Ten-Time Convicted Scammer Charged in New $1.5 Million Romance Fraud Targeting Elderly WomanRead the Press Release
SAN DIEGO –Troy Clinton Van Sickle of Temecula appeared in federal court today to face charges that he stole more than $1.5 million from an elderly woman he claimed to be romantically interested in, and that he obstructed federal law enforcement efforts to investigate the alleged fraud scheme.
According to the indictment and court records, Van Sickle – a 10-time convicted felon who worked as a janitor at a San Diego County preschool – targeted a wealthy divorced woman and cultivated what appeared to be a romantic relationship in order to gain access to her finances. Prosecutors allege that Van Sickle concealed his criminal history, which included convictions for fraud, theft, extortion, and perjury, and instead portrayed himself as a trustworthy and successful businessman.
After gaining the victim’s confidence, Van Sickle allegedly claimed he was facing financial hardship and needed money from the victim to pursue business deals and investment opportunities. He allegedly promised to repay the funds promptly and share future profits.
But it was all a lie. Van Sickle did not intend to repay the woman. He used her money to enrich himself and others and to pay for personal expenses, including to make payments on luxury cars, gamble at casinos, and send money to other women.
The government also alleges that Van Sickle created a miniature replica car company and provided the woman a fake multi-million dollar contract between the company and Lotus Cars to give the impression that his company was legitimate. The woman sent the contract to her financial advisor and wired $150,000 to Van Sickle to fund the purported agreement. Van Sickle then used the money to purchase a 2022 Ferrari SF90 Stradale worth $650,000.
According to the indictment, Van Sickle was on federal supervision for a prior fraud conviction at the time of the criminal offense. He had been ordered to pay $250,000 in restitution to nine victims of that offense and was required to truthfully and accurately report his financial resources to his probation officer.
To conceal the offense and avoid paying restitution, Van Sickle submitted a false financial packet signed under penalty of perjury to his probation officer that did not include the money he received from the woman, the luxury cars he had purchased and sold, and his gambling winnings and losses.
According to the indictment, upon learning that the Federal Bureau of Investigation had contacted the woman to discuss the money she had wired him, Van Sickle manipulated and exploited her to delete text messages, lie to law enforcement, and sign a false and fraudulent promissory note to make the wired proceeds appear simply as lump-sum loan payable over a 10-year period. Van Sickle also directed the woman to sign a false statement to make it appear as though Van Sickle had already made a $140,000 payment to her through the note. Van Sickle disclosed the woman’s payments to his probation officer, along with the false promissory note and statement, and lied that he had already made a $140,000 payment to the woman.
Between 2022 and 2023, Van Sickle received approximately 20 money transfers from the woman totaling more than $1.5 million. He has not repaid any of the money to date.
According to court records, there may be other victims of Van Sickle’s scheme to defraud. If you or someone you know has given more than $25,000 to the man depicted in the photographs below, please contact the FBI at (858) 320-1800.
This case is being prosecuted by Assistant U.S. Attorneys Patrick C. Swan and Sarah M. Fix.
DEFENDANTS Case Number: 26-cr-1774-RBM
Troy Clinton Van Sickle Age: 55 Temecula, California
SUMMARY OF CHARGES
Wire Fraud – Title 18, U.S.C., Section 1343
Maximum penalty: Thirty years in prison and $250,000 fine
Money Laundering – Title 18, U.S.C., Section 1957
Maximum penalty: Ten years in prison and $250,000 fine
False Writing or Document – Title 18, U.S.C., Sections 1001(a)(3) and 2
Maximum penalty: Five years in prison and $250,000 fine
Falsification of Record in Federal Investigation – Title 18, U.S.C., Section 1519
Maximum penalty: Twenty years in prison and $250,000 fine
False Statement – Title 18, U.S.C., Section 1001(a)(2)
Maximum penalty: Five years in prison and $250,000 fine
INVESTIGATING AGENCIES
Federal Bureau of Investigation
Internal Revenue Service Criminal Investigation
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Police Officer Charged with Child Exploitation Crimes Involving Multiple Minor VictimsRead the Press Release
SAN DIEGO – A federal grand jury indictment was unsealed in San Diego today charging Brandon McGibbon, a San Diego Police Officer, with five counts of child sexual abuse offenses involving three minor victims.
According to court records, between October 25 and November 6, 2025, McGibbon engaged in the attempted receipt and production of child pornography and the attempted enticement and coercion of the minors to engage in obscene matter and sexual conduct.
Special agents with the Federal Bureau of Investigation, with the cooperation of the San Diego Police Department, led the investigation. This case is the result of the ongoing efforts of the United States Attorney’s Office Special Victims Unit and was done with the collaboration of the San Diego District Attorney’s Office. Formed in April 2025, the SVU is tasked with leading collaborations between federal and local law enforcement in the investigation and prosecution of cases involving sex trafficking and child exploitation, civil rights, and labor trafficking.
McGibbon is expected to make his initial appearance in federal court on Tuesday, May 26, 2026.
This case is being prosecuted by Assistant U.S. Attorneys Amy Brammell and Lyndzie M. Carter.
DEFENDANT Case Number 26cr1939-JO
Brandon McGibbon Age: 33 San Diego, CA
SUMMARY OF CHARGES
Attempted Receipt of Child Pornography – 18 USC § 2252(a)(2)
Maximum penalty: Five-year mandatory minimum and up to life
Attempted Sexual Exploitation of a Minor – 18 USC § 2251(a)
Maximum penalty: Ten-year mandatory minimum and up to life
Attempted Enticement of a Minor – 18 USC § 2422(b)
Maximum penalty: Fifteen-year mandatory minimum and up to life
INVESTIGATING AGENCY
Federal Bureau of Investigation
*The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Man and Woman Charged with Smuggling Protected Parrots and Parakeets in a Spare Tire CageRead the Press Release
SAN DIEGO – Sydney Johnson of Santee and Brandon Marion of Temecula appeared in federal court today to face charges that they illegally imported 27 protected parrots and parakeets in a modified spare tire in the trunk of a car.
Both species of birds - including 11 orange-fronted parakeets (Eupsittula canicularis) and 16 white-fronted Amazon parrots (Amazona albifrons) - are protected under the Endangered Species Act.
Federal agents detained Johnson and Marion applied for admission to the United States at the San Ysidro Port of Entry on May 3. Customs and Border Protection officers detected anomalies in the spare tire. When an officer inspected the tire, he heard a screeching noise and found the birds in the spare tire, which had been outfitted with a cage
In their post-arrest interviews, the defendants admitted they could hear the birds screaming as they drove. Marion described the birds’ sounds as a “pterodactyl screech.”
One of the birds was already dead; the surviving birds were initially cared for by Veterinary Services at the southern border before being transferred to a Department of Agriculture Animal Import Center for quarantine. One bird did not survive transit, and two birds died in quarantine. The remaining 23 birds are believed to be recovering from the journey.
White Fronted Amazon Parrots and Orange Fronted Parakeets are protected and are listed on Appendix II of the Convention on International Trade in Endangered Species (CITES). Concealment of the parrots and parakeets would have resulted in their entering the United States without any quarantine period or process.
To import many types of wildlife, the wildlife must be subject to quarantine before it can be introduced into the United States. Many animals have diseases that can be transferred to humans (zoonotic diseases) or other animals that can have disastrous health effects to human or animal populations. For example, birds can carry and spread Avian influenza (bird flu), psittacosis, and histoplasmos. Bird flu is highly contagious and can cause flu like symptoms, respiratory illness, pneumonia and death in humans and other birds including the United States poultry farms. There are many other diseases that can be transmitted from different animals and have disastrous effects, that is why it is necessary to quarantine animals entering the United States to limit and safeguard against this potential disease transmission.
The United States Attorney’s Office is a member of the Department of Justice’s Trade Fraud Task Force, a cross-agency law enforcement effort that also involves the National Fraud Enforcement Division, the Criminal and Civil Divisions, the Environment and Natural Resources Division, the U.S. Attorney’s Office for the Northern District of Illinois, the Department of Homeland Security, and U.S. Attorney’s Offices nationwide. The Task Force was created to leverage all the Department’s tools and authorities to prevent trade fraud that deprives the government of vital revenue, threatens critical domestic industries, undermines consumer confidence, and weakens national security. The Task Force is designed to pursue enforcement actions against parties who seek to evade tariffs and other duties, as well as smugglers who seek to import prohibited goods into the American economy. The Justice Department encourages whistleblowers to alert the government to credible allegations of fraud, including utilizing the qui tam provisions of the False Claims Act or through the Criminal Division’s Corporate Whistleblower Program at [email protected] using the form available here.
This case is being prosecuted by Special Assistant U.S. Attorney Katherine Rookard.
DEFENDANT Case Number 26-mj-02857
Sydney Johnson Age: 27
Brandon Marion Age: 38
SUMMARY OF CHARGES
Importation Contrary to Law – Title 18, U.S.C., Section 545
Maximum penalty: Twenty years in prison and $250,000 fine
INVESTIGATING AGENCIES
Homeland Security Investigations
U.S. Fish and Wildlife Service
Customs and Border Protection
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
U.S. Attorney’s Office Filed 108 Border-Related Cases This WeekRead the Press Release
SAN DIEGO – Federal prosecutors in the Southern District of California filed 108 border-related cases this week, including charges of bringing in aliens for financial gain, reentering the U.S. after deportation, and importation of controlled substances.
The U.S. Attorney’s Office for the Southern District of California is the fourth-busiest federal district, largely due to a high volume of border-related crimes. This district, encompassing San Diego and Imperial counties, shares a 140-mile border with Mexico. It includes the San Ysidro Port of Entry, the world’s busiest land border crossing, connecting San Diego (America’s eighth largest city) and Tijuana (Mexico’s second largest city).
In addition to reactive border-related crimes, the Southern District of California also prosecutes a significant number of proactive cases related to terrorism, organized crime, drugs, white-collar fraud, violent crime, cybercrime, human trafficking and national security. Recent developments in those and other significant areas of prosecution can be found here.
A sample of border-related arrests this week:
- On May 9, Moises Quintana Luna and Alma Beltran Ponce, Mexican citizens, were arrested and charged with Importation of a Controlled Substance. According to a complaint, Customs and Border Protection officers discovered 151 pounds of methamphetamine concealed throughout the defendants’ vehicle as they tried to cross the border at the Tecate Port of Entry.
- On May 11, Banucio Balderas-Ladino, a Mexican citizen, was arrested and charged with Deported Alien Found in the United States. According to a complaint, Border Patrol agents found Balderas-Ladino, an unauthorized alien who was previously deported in 2019 through Arizona, hiding in bushes north of the border, about two miles east of the Otay Mesa Port of Entry.
- On May 14, Rene Marquez, a U.S. citizen, was arrested and charged with Bringing in Aliens for Financial Gain. According to a complaint, Customs and Border Protection officers found two Vietnamese nationals concealed in a non-factory compartment in the rear of the defendant’s vehicle. One of the unauthorized aliens said she felt scared, hot and was doused in gasoline while being transported to the San Ysidro Port of Entry. Marquez has four prior drug-importation convictions in the Southern District of California.
The immigration cases were referred or supported by federal law enforcement partners, including Homeland Security Investigations (HSI), Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), Customs and Border Protection, U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the support and assistance of state and local law enforcement partners.
Indictments and criminal complaints are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
San Marcos Man Pleads Guilty to Armed Robbery of a Business and Three Armed CarjackingsRead the Press Release
SAN DIEGO – Brandon Ivan Padilla of San Marcos pleaded guilty in federal court today, admitting that he committed three carjackings and robbed a business, all while menacing his victims with a firearm.
Padilla admitted that on November 21, 2024, he pointed a gun at a clerk at American Smoke Shop in Escondido and demanded cash. The clerk gave Padilla $320. Padilla also admitted that he demanded a smoke shop customer’s car keys and cash while holding the gun inches from the customer’s ear. The customer handed over the keys; Padilla drove away in the person’s vehicle.
According to his plea agreement, Padilla stole another person’s car at gunpoint a few days later, on November 25, 2024. He admitted to approaching that individual in Escondido, brandishing a firearm and telling the victim to give Padilla all “his shit.” The victim followed Padilla instructions and gave up his phone and car keys. Padilla admitted to then taking control of the car and putting the keys in the ignition, but the car did not start.
Failing to successfully drive away in the car did not stop Padilla from carjacking another vehicle that same day. Padilla admitted to approaching yet another motorist in Escondido, racking his gun and pointing it at that individual’s forehead and chest, and forced the victim out of the truck. The victim did as he was told He also gave his wallet to Padilla who then got in the truck and drove away.
In all three carjackings, Padilla admitted that he would have caused death or serious bodily harm to the victims if they had not given him their cars.
Padilla is scheduled to be sentenced on August 7, 2026, before U.S. District Judge Janis L. Sammartino.
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 gun violence and other violent crime, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
DEFENDANT Case Number 26CR388-JLS
Brandon Ivan Padilla Age: 20 San Marcos, CA
SUMMARY OF CHARGES
Hobbs Act Robbery (18 U.S.C. §1951)
Maximum penalty: Twenty years in prison and a $250,000 fine
Carjacking (18 U.S.C. §2119)
Maximum penalty: Fifteen years in prison and a $250,000 fine
Brandishing a Firearm During and in Relation to a Crime of Violence (18 U.S.C. §924(c)(1)(A))
Maximum penalty: Life in prison and a $250,000 fine
INVESTIGATING AGENCIES
Bureau of Alcohol, Tobacco, Firearms and Explosives
Escondido Police Department
U.S. Attorney’s Office Filed 83 Border-Related Cases This WeekRead the Press Release
SAN DIEGO – Federal prosecutors in the Southern District of California filed 83 border-related cases this week, including charges of bringing in aliens for financial gain, reentering the U.S. after deportation, and importation of controlled substances.
The U.S. Attorney’s Office for the Southern District of California is the fourth-busiest federal district, largely due to a high volume of border-related crimes. This district, encompassing San Diego and Imperial counties, shares a 140-mile border with Mexico. It includes the San Ysidro Port of Entry, the world’s busiest land border crossing, connecting San Diego (America’s eighth largest city) and Tijuana (Mexico’s second largest city).
In addition to reactive border-related crimes, the Southern District of California also prosecutes a significant number of proactive cases related to terrorism, organized crime, drugs, white-collar fraud, violent crime, cybercrime, human trafficking and national security. Recent developments in those and other significant areas of prosecution can be found here.
A sample of border-related arrests this week:
- On May 1, Alexis Rios, a U.S. citizen, was arrested and charged with Bringing in Aliens for Financial Gain. According to a complaint, Customs and Border Protection officers found two unauthorized immigrants from Guatemala concealed in a non-factory compartment beneath the spare tire wheel well of the defendant’s car at the San Ysidro Port of Entry.
- On May 4, Juan Manuel Quintana Amador, a Mexican national, was arrested and charged with Importation of a Controlled Substance. According to a complaint, Customs and Border Protection officers found more than 25 pounds of cocaine concealed in the bathroom wall of a commercial passenger bus applying for entry to the U.S. at the San Ysidro Port of Entry.
- On May 5, Jose Miguel Carcamo Maradiaga, a citizen of Honduras, was arrested and charged with Deported Alien Found in the United States. According to a complaint, Border Patrol agents found the defendant hiding in the brush approximately one mile north of the border and six miles west of the Tecate Port of Entry He was previously deported to Honduras in August 2024 through Alexandria, Louisiana.
The immigration cases were referred or supported by federal law enforcement partners, including Homeland Security Investigations (HSI), Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), Customs and Border Protection, U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the support and assistance of state and local law enforcement partners.
Indictments and criminal complaints are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Chinese National and Ringleader Sentenced to 12.5 Years in $27 Million Multinational Fraud and Money Laundering Scheme Targeting over 2,000 SeniorsRead the Press Release
SAN DIEGO – Zhao Wang, aka “Oscar,” was sentenced in federal court today to 151 months in prison for leading a $27 million fraud and money laundering scheme targeting approximately 2,000 elderly victims across the United States.
Wang, a Chinese national, was the lead defendant charged in a five-defendant indictment unsealed in 2024. According to public documents, members of the conspiracy operated a series of technical support, bank impersonation and government impersonation, and refund scams targeting elderly victims. Victims received unsolicited phone calls, emails, and pop-up ads directing victims to call a phone number. Unbeknownst to the victims, those phone numbers belonged to India-based scam call centers. Once a victim called the call center, members of the conspiracy used social engineering techniques to build trust with victims. In many instances, the conspirators had victims download commercially available remote desktop software, which the conspirators used to access victims’ computers and to carry on the scams.
One of the most frequent scams was a refund scam. In the refund scams, victims were told they were entitled to a small refund, for example, from a retailer for an alleged unauthorized charge. While pretending to process the refund, the victim would be accidentally “over-refunded” money. The conspirators would then instruct the victim to send the alleged over-refunded money through wire transfers or in cash via express mail to members of the conspiracy. In reality, the victims had not been refunded any money and victims were scammed into sending their own money.
Victims were instructed to send the alleged over-refunded money via wire transfers and in bulk cash via express mail packages to members of the conspiracy, including defendant Zhao Wang, in the United States. When a victim was duped into sending bulk cash in the mail, Wang would provide his India-based co-conspirators a fictitious name plus an address of a retail location that could accept express mail packages. Those names and addresses would then be relayed to the victims, who were instructed to express mail the bulk cash. Then, once a victim had sent the cash in the mail, Wang and his co-conspirators would use fake IDs to get the packages of cash sent by the elderly victims.
In sentencing papers, the government argued that Wang oversaw the U.S.-based operation, including co-conspirators who would retrieve victim packages and document themselves retrieving and opening packages and counting the money inside. Agents seized countless such photos and videos from Wang’s phone.
Investigators identified over 2,000 elderly victims from throughout the country, including victims in San Diego, who were defrauded and suffered over $27 million in losses over an approximately two-year period between 2021-2023.
At sentencing, the government emphasized that Wang was explicit that his operation was, in his own words, scamming elderly Americans. The following conversation from February 2022 was seized from Wang’s cellphone during the investigation:
In publicly filed documents, Wang also admitted that after receiving the fraud proceeds, he and his co-conspirators laundered the money using cryptocurrency back to their foreign-based counterparts.
Wang admitted that typically each day after collecting victim packages, Wang’s co-conspirators would deliver the money from the packages to him. Wang would then coordinate with his foreign-based co-conspirators, who would provide a cryptocurrency wallet that Wang would use to transfer cryptocurrency. Wang took upwards of 18 percent of the fraud proceeds and transferred the rest via cryptocurrency to his co-conspirators. Wang also admitted that he laundered the proceeds to promote the fraud scheme by using fraud proceeds to pay co-conspirators and to purchase the fake IDs used in the scheme.
“This sentence recognizes the profound human cost of exploiting trust and treating vulnerable people as opportunities for profit,” said U.S. Attorney Adam Gordon.
“Zhao Wang, “Oscar,” and his co-conspirators callously scammed more than 2,000 elderly victims throughout the country with a variety of fraud schemes for years,” said Special Agent in Charge Mark Remily of the FBI San Diego Field Office. “Today’s sentence ensures that Wang, the coordinator perpetrating the multitude of scams, is held accountable for his role. FBI San Diego and our law enforcement partners will continue to aggressively investigate those who think they can prey on our elder population without consequences.”
At the sentencing hearing, U.S. District Judge Robert S. Huie called the scope of the fraud “staggering” and called Wang’s domestic operation of the scheme “100 percent reprehensible.” In finding Wang specifically targeted elderly victims, Judge Huie emphasized, “Their vulnerability was not incidental. It was not coincidence. It was how they were selected. It was how they came to be scammed.”
The wife and daughter of an 83-year-old victim spoke at the sentencing hearing today. They said that within months of being scammed, the victim lived with suspicion, distrust and resentment and he soon passed away. Judge Huie commented, “It’s really hard to fathom the depth of that harm in somebody’s last months on this planet.”
This case is being prosecuted by Assistant U.S. Attorney Kevin Mokhtari.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
DEFENDANTS
Case Number 24-cr-1317-RSH-01
Zhao Wang, aka “Oscar” Age: 41 Las Vegas, NV
SUMMARY OF CHARGES
Conspiracy to Commit Mail and Wire Fraud – Title 18, U.S.C., Section 1349, 2326
Maximum Penalties: Forty years in prison; $1 million fine
Conspiracy to Launder Monetary Instruments – Title 18, U.S.C., Section 1956(a)(1)(A)(i), 1956(a)(1)(B)(i) and 1956(h)
Maximum Penalties: Twenty years in prison; maximum fine of $500,000 or twice the amount laundered
INVESTIGATING AGENCIES
Federal Bureau of Investigation
Federal Deposit Insurance Corporation – Office of Inspector General
Homeland Security Investigations
San Diego County District Attorney’s Office
San Diego County Sheriff’s DepartmentSan Diego Police Department
San Diego Elder Justice Task Force
Chino Police Department
Coronado Police Department
Escondido Police Department
Glendora Police Department
Long Beach Police Department
Orange County Sheriff’s Department
Defendant Pleads Guilty in $48 Million Nationwide Book Publishing Scam Targeting Hundreds of SeniorsRead the Press Release
SAN DIEGO – Michael Cris Traya Sordilla, a 34-year-old citizen of the Philippines, pleaded guilty in federal court today, admitting that he conspired to perpetrate a book publishing scam that caused losses of over $48 million to more than 800 victims throughout the United States.
Sordilla is the first of four defendants to admit his role in a scheme that targeted authors — most of them seniors — by promising to elevate their work to major publishing deals and Hollywood film adaptations, all in exchange for millions of dollars in fraudulent fees.
According to his plea agreement, Sordilla was the founder and CEO of Innocentrix Philippines, which purported to be a “business process outsourcing” company in the Philippines. Sordilla admitted that he and his co-conspirators created and registered phony business entities in the United States, including:
- PageTurner Press and Media LLC (“PageTurner”), which was incorporated in California in September 2017 and claimed to be a book publishing business located in Chula Vista, California
- The Metro Films LLC (“Metro Films”), which was incorporated in California in April 2022 and claimed to be a motion picture and sound recording business located in Los Angeles, California
- WP Lighthouse LLC (“WP Lighthouse”) was registered in Indiana in July 2024 and claimed to be a book publishing business in Indianapolis, Indiana.
From 2017 until 2024, under the guise of these fictitious businesses, Sordilla and co-conspirators operated a fraudulent network of scammers in the Philippines to enrich themselves by selling false hopes of tremendous professional success to writers in the United States.
According to his plea agreement, Sordilla’s role in the conspiracy was using Innocentrix Philippines to manage a call center in the Philippines where dozens of sales representatives contacted victims in the United States pretending to be literary agents from PageTurner or WP Lighthouse. As part of the conspiracy, the scammers falsely told victims their works had been selected for acquisition by publishers or movie studios, and fraudulently convinced victims to send payments for various services including pre-payment of taxes and transaction fees, before the victim-author’s work could be published or optioned to studios. According to court documents, the conspirators made false representations regarding PageTurner and WP Lighthouse to the victims, including by falsely representing the location of operations, their contacts and communications with literary agents, major traditional publishers, motion picture studios, and popular video streaming services.
As part of the conspiracy, the conspirators impersonated literary agents and executives from major publishers, motion picture studios, and popular video streaming services, or pretended to be representatives from the fake motion picture business Metro Films. In reality, PageTurner, WP Lighthouse, and Metro Films were fictitious businesses with no relationship to either traditional publishers or Hollywood entertainment companies.
Sordilla directed co-conspirators to open and manage bank accounts in the name of PageTurner and WP Lighthouse LLC at various financial institutions, his plea agreement said. After victim funds were received in bank accounts established on behalf of PageTurner and WP Lighthouse, in order to conceal the location and control of proceeds of the book publishing scam, Sordilla directed co-conspirators to withdraw and transfer victim funds to domestic and international bank accounts in the Philippines controlled by Sordilla and co-conspirators. As part of the conspiracy, Sordilla directed co-conspirators to launder at least $42 million, and received approximately $2,725,951.
As part of the guilty plea, Sordilla agreed to forfeit $2,725,951 in proceeds from the offense. Sordilla will also be subject to an order of restitution to the victims of the offense in the amount of at least $48,719,156.38.
“The defendants didn’t just steal money — they stole dreams, leaving victims with empty promises and devastating losses,” said U.S. Attorney Adam Gordon. “Today’s guilty plea delivers justice for victims and serves as a warning that legitimate publishers and filmmakers do not demand upfront fees.”
“Michael Sordilla and his co-conspirators callously preyed on the hopes and dreams of authors to have their stories come to life, costing hundreds of victims more than $48 million in losses,” said Special Agent in Charge Mark Remily of the FBI San Diego Field Office. “Today’s guilty plea is the beginning of holding all those involved in this Hollywood dream scheme accountable for their crimes. FBI San Diego, along with our law enforcement partners, remains steadfast in our pursuit of justice of any scammers attempting to steal Americans’ hard-earned money.”
“The defendant knowingly used the mail to execute a fraud scheme that targeted elderly victims for financial gain,” said Matt Shields, Inspector in Charge of the Los Angeles Division. “This guilty plea represents a significant step in holding the defendant accountable and seeking justice for all of those impacted.”
If you or someone you know is aged 60 or older and has been a victim of financial fraud, help is available through the National Elder Fraud Hotline: 1-833 FRAUD-11 (1-833-372-8311). You can also report fraud to any local law enforcement agency or on the FBI’s Internet Crime Complaint Center at www.ic3.gov.
As of today, three of the four defendants charged in the case are awaiting trial. Law enforcement previously seized the PageTurner domain and over $6 million from bank accounts linked to PageTurner and WP Lighthouse.
This case is being prosecuted by Assistant U.S. Attorney Oleksandra “Sasha” Johnson.
DEFENDANTS Case Number 24CR2712-JLS
Gemma Traya Austin Age: 60 Chula Vista, CA
In custody. Arrested in Chula Vista on December 12, 2024
Michael Cris Traya Sordilla Age: 34 Philippines
In custody. Sentencing set for July 24, 2026
Bryan Navales Tarosa Age: 35 Philippines
In custody. Arrested in San Diego on December 9, 2024
Micheal Glenn Austin Age: 35 Chula Vista, CA
Released on bond
SUMMARY OF CHARGES
Conspiracy to Commit Mail and Wire Fraud – Title 18, U.S.C., Section 1349
Maximum Penalties: Twenty years in prison; $250,000 fine
Conspiracy to Launder Monetary Instruments – Title 18, U.S.C., Section 1956(h)
Maximum Penalties: Twenty years in prison; maximum fine of $500,000 or twice the amount laundered
INVESTIGATING AGENCIES
Federal Bureau of Investigation
United States Postal Inspection Service
U.S. Attorney’s Office Filed 109 Border-Related Cases This WeekRead the Press Release
SAN DIEGO – Federal prosecutors in the Southern District of California filed 109 border-related cases this week, including charges of bringing in aliens for financial gain, reentering the U.S. after deportation, and importation of controlled substances.
The U.S. Attorney’s Office for the Southern District of California is the fourth-busiest federal district, largely due to a high volume of border-related crimes. This district, encompassing San Diego and Imperial counties, shares a 140-mile border with Mexico. It includes the San Ysidro Port of Entry, the world’s busiest land border crossing, connecting San Diego (America’s eighth largest city) and Tijuana (Mexico’s second largest city).
In addition to reactive border-related crimes, the Southern District of California also prosecutes a significant number of proactive cases related to terrorism, organized crime, drugs, white-collar fraud, violent crime, cybercrime, human trafficking and national security. Recent developments in those and other significant areas of prosecution can be found here.
A sample of border-related arrests this week:
- On April 24, Brandon Ramos Bonilla, a Mexican citizen and border crosser card holder, was arrested and charged with Importation of a Controlled Substance. According to a complaint, Customs and Border Protection officers discovered 61 pounds of cocaine concealed in the roof and firewall of the defendant’s vehicle as he tried to cross the border at the Otay Mesa Port of Entry.
- On April 25, Francisco Ramon Garcia and Antonio Ramos, citizens of Mexico, were arrested and charged with Attempted Bringing in Aliens for Financial Gain. According to a complaint, the defendants were captains of a smuggling boat that was intercepted by the U.S. Coast Guard off Point Loma with five undocumented Mexican nationals on board. Also arrested was Oscar Orozco Avilar, who was charged with Attempted Entry after Deportation.
- On April 28, Fernando Vega-Sanchez, a Mexican citizen, was arrested and charged with Attempted Entry after Deportation. According to a complaint, Vega-Sanchez was arrested by Customs and Border Protection officers at the pedestrian lanes of the San Ysidro Port of Entry after he claimed to be someone else but had no documents. Officers learned his true identity and he was taken into custody. The defendant was previously removed from the U.S. seven times.
The immigration cases were referred or supported by federal law enforcement partners, including Homeland Security Investigations (HSI), Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), Customs and Border Protection, U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the support and assistance of state and local law enforcement partners.
Indictments and criminal complaints are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.