Southern District of California
Press releases recorded for this federal judicial district.
Former Navy Civilian Employee Pleads Guilty to Conspiracy to Commit BriberyRead the Press Release
NEWS RELEASE SUMMARY – October 26, 2023
SAN DIEGO – Dawnell Parker of Athens, Alabama, pleaded guilty in federal court today to bribery charges, admitting that while she was a public official at Naval Information Warfare Center in San Diego, she accepted thousands of dollars in free meals from defense contractors in exchange for helping them win and maintain millions of dollars in government contracts.
As part of the conspiracy, Parker received the free dinners at various restaurants, including Ruth’s Chris, De Medici Cucina and the University Club. In return, she took official action to aid her benefactors, like allowing defense contractors to draft government documents and submitting those documents as part of the procurement process and advocating for their selection as defense contractors.
According to Parker’s plea agreement, from approximately March 2016 through at least October 2019, she and a coworker received bribes from the president and CEO of a Fredericksburg, Virginia defense contractor. In return, Parker, acting under the direction of her coworker, used various methods to steer contracts to the contractor. Parker also admitted that she and the coworker separately received bribes from a different defense contractor, with offices in San Diego, California, and Stafford, Virginia, who also gave her things of value including expensive meals.
“Corruption in the defense procurement process wastes taxpayer dollars and undercuts public confidence in government,” said U.S. Attorney Tara McGrath. “The contracting process must be reliable and honest to ensure our service members receive the best possible support.”
“Ms. Parker selfishly chose to enrich herself at the expense of the Department of the Navy by accepting bribes in exchange for steering contracts worth millions of dollars to certain companies,” said Special Agent in Charge Greg Gross of the NCIS Economic Crimes Field Office. “NCIS is dedicated to rooting out bribery and fraud that damage the integrity of the Department of the Navy procurement process and threaten warfighter readiness.”
“Ms. Parker’s guilty plea should act as a deterrent for individuals contemplating or attempting to misuse a position of public trust to subvert the integrity of the government’s acquisition process,” said Bryan D. Denny, Special Agent in Charge for the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Western Field Office. “DCIS remains committed to working jointly with the United States Attorney’s Office and our law enforcement partners to investigate and deter public corruption within the Department of Defense.”
“Bribery as a means to fraudulently access federal programs for personal gain will not be tolerated,” said SBA OIG’s Western Region Special Agent in Charge Weston King. “Our office will remain relentless in the pursuit of fraudsters who seek to exploit SBA’s vital economic programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”
“Ms. Parker’s actions directly undermined the fair competition that ensures our warfighters always have the technological advantage over potential adversaries,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “CI is committed to working with our fellow law enforcement agencies and will follow the money, wherever it may lead, to help protect our country.”
DEFENDANT Case Number 23cr2192-TWR
Dawnell Parker Age: 54 Athens, AL
SUMMARY OF CHARGES
Conspiracy to Commit Bribery - Title 18, U.S.C., Section 371
Maximum penalty: Five years in prison; $250,000 fine
AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Small Business Administration – Office of Inspector General
Internal Revenue Service Criminal Investigation
Department of Health and Human Services – Office of Inspector General
If you have information regarding fraud, waste, or abuse relating to Department of Defense personnel or operations, please contact the DoD Hotline at 800-424-9098.
University City High School Teacher Charged with Attempted Enticement of a MinorRead the Press Release
NEWS RELEASE SUMMARY – October 24, 2023
SAN DIEGO – Sean Stevenson, a high school science teacher at University City High School, was arrested today by the San Diego Human Trafficking Task Force and charged in federal court with Attempted Enticement of a Minor.
Stevenson is scheduled to make his initial appearance before U.S. Magistrate Judge Mitchell Dembin on October 25, 2023, at 2 p.m.
Stevenson’s alleged illicit activity was discovered during another sex trafficking investigation. According to a criminal complaint, a review of messages from that investigation identified Stevenson as interested in paying for sex with a minor.
An undercover law enforcement officer began text messaging with Stevenson via the Pinger application. The officer claimed to be sex trafficking her 16-year-old cousin.
The complaint states that on October 23, 2023, Stevenson messaged the undercover officer and negotiated a price of $140 for oral sex from a 16-year-old girl. Stevenson and the undercover officer agreed to meet early on October 24, 2023, on El Cajon Boulevard for the “date” with the minor. Stevenson arrived at the location around 7 a.m. and was arrested.
The complaint states that $140 was found in Stevenson’s car.
This case is being prosecuted by Assistant U.S. Attorneys Derek Ko and Andrew Sherwood.
Anyone with information about this case is urged to contact San Diego County Crime Stoppers (888-580-8477) and the National Human Trafficking Hotline (888-373-7888).
DEFENDANTS Case Number 23MJ3854
Sean Stevenson Age: 58 San Diego, CA
SUMMARY OF CHARGES
Attempted Enticement of a Minor– Title 18, U.S.C., Section 2422(b)
Maximum penalty: Life in prison, 10-year mandatory minimum
AGENCY
Homeland Security Investigations
San Diego Human Trafficking Task Force
The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Woman Pleads Guilty to Drug Trafficking and Obstruction of Justice in So-Called “Blind Mule” CaseRead the Press Release
NEWS RELEASE SUMMARY – October 20, 2023
SAN DIEGO – Victoria Carmona of San Antonio, Texas, pleaded guilty in federal court this week to a four-count indictment charging her and an unnamed codefendant with importation of cocaine, conspiracy to import controlled substances, conspiracy to obstruct justice, and obstruction of justice. The obstruction charges stem from Carmona’s extensive efforts to concoct a cover story beforehand if she was caught smuggling drugs and paint herself as a so-called “blind mule.”
According to the indictment and plea agreement, Carmona conspired with her codefendant and others to import illicit narcotics into the United States from Mexico. The conspiracy culminated in Carmona’s arrest at the San Ysidro Port of Entry on February 20, 2023, after she imported 19.22 kilograms (42.37 pounds) of cocaine into the United States in her vehicle.
After her arrest, as part of the planned cover story, Carmona claimed she was unaware of the hidden drugs and said she recently accepted a job offer on Facebook to pick up cash in the United States and transport it to Mexico. According to Carmona, earlier that day she was instructed to give her vehicle to others to install a GPS device as an added security measure for the cash Carmona would be transporting. Carmona suggested those individuals planted drugs in her car without her knowledge.
Carmona showed investigators detailed Facebook Messenger conversations purportedly between herself and the individual who offered her the job that supposedly confirmed her account.
In her plea agreement, however, Carmona admitted she and her codefendant fabricated the Facebook Messenger communications to make it appear she was tricked into smuggling narcotics. In the communications, the codefendant played the part of the fictitious person who supposedly hired Carmona to transport cash to Mexico. Carmona admitted she smuggled drugs into the United States seven times and, with the aid of her codefendant, falsified Facebook Messenger communications before each trip that purportedly corroborated the account she planned to tell investigators if she was caught.
“Ms. Carmona went to extraordinary lengths to try to conceal over 40 pounds of cocaine from customs officers,” said U.S. Attorney Tara K. McGrath. “But her concocted story did not fool them or the U.S. Attorney’s Office. Ms. Carmona’s guilty plea today reflects the serious charges drug smugglers face when they try to bring dangerous drugs into this country.”
“HSI is committed to investigating criminal organizations that smuggle dangerous drugs into the United States and ultimately into our communities,” said Chad Plantz, Special Agent in Charge of Homeland Security Investigations in San Diego. “I commend the work of our special agents and the U.S. Attorney’s office for uncovering this conspiracy and disproving this fabricated story used by the defendant to conceal her involvement in this smuggling conspiracy.”
A sentencing hearing is scheduled for January 29, 2024, before U.S. District Judge Gonzalo P. Curiel.
This case is being prosecuted by Assistant U.S. Attorney Robert J. Miller.
DEFENDANTS Case Number 23cr1119-GPC
Victoria E. Carmona Age: 25 San Antonio, CA
SUMMARY OF CHARGES
Conspiracy to Import Cocaine – Title 21, U.S.C., Sections 952, 960 and 963
Maximum penalty: Twenty years in prison and $1,000,000 fine
Importation of Cocaine – Title 21, U.S.C., Sections 952 and 960
Maximum penalty: Twenty years in prison and $1,000,000 fine
Conspiracy to Obstruct Justice – Title 18, U.S.C., Sections 371 and 1519
Maximum penalty: Twenty years in prison and $250,000 fine
Obstruction of Justice – Title 18, U.S.C., Section 1519
Maximum penalty: Twenty years in prison and $250,000 fine
AGENCY
Homeland Security Investigations
Imperial Valley Doctor Sentenced for Years-Long Use of Unapproved Cosmetic DrugsRead the Press Release
NEWS RELEASE SUMMARY – October 20, 2023
SAN DIEGO – Tien Tan Vo, a doctor practicing in Imperial Valley, was sentenced in federal court yesterday for crimes related to his years-long use of foreign unapproved and misbranded cosmetic drugs. According to his plea and court records, Vo injected as many as 178 patients with unapproved drugs that had been smuggled into the United States from Mexico.
Magistrate Judge Allison H. Goddard sentenced Vo to three years of probation and ordered him to pay a $201,534 fine and forfeit the $100,767 in proceeds he made from his use of unlawful cosmetic drugs. A restitution hearing is set for December 7, 2023, to finalize an order for restitution to potential victims.
In August, Vo pleaded guilty to two misdemeanor counts: receipt of misbranded drugs in interstate commerce and being an accessory after the fact to Flor Cham, who smuggled the unapproved drugs into the United States from Mexico. Cham is charged in case number 23-cr-01926-JLS.
In his plea agreement, Vo admitted that none of the injectable botulinum toxin or lip fillers used by his clinics between November 2016 and October 2020 were approved for use in the United States. This specifically included a botulinum toxin product called “Xeomeen” and an injectable lip filler called Probcel—both products that have not been approved by the U.S. Food and Drug Administration.
According to court papers, Vo used these unapproved drugs on approximately 178 patients over about four years. Many were never told that they received unapproved drugs as part of their treatment.
“The public faith in the FDA approval process relies on medical providers adhering to those rules,” said U.S. Attorney Tara McGrath. “By side-stepping the safety and approval protocols of the FDA, Dr. Vo compromised care and put profits before patients. But thanks to the hard work of the agencies and our federal restitution process, those ill-gained profits will be recovered in this case.”
“Today’s sentencing serves as our promise to use every tool to investigate and hold accountable those who deliberately smuggle and administer products that pose a significant public health threat,” said Chad Plantz, special agent in charge for HSI San Diego. “HSI, together with the U.S. Attorney’s Office will continue to work together to prosecute those individuals who deceive and threaten our communities.”
“The FDA’s requirements help ensure that patients receive safe and effective medical treatments. Evading the FDA process and distributing unapproved drugs to U.S. consumers will not be tolerated,” said Special Agent in Charge Robert M. Iwanicki, FDA Office of Criminal Investigations, Los Angeles Field Office. “We will continue to investigate and hold accountable those who traffic in unapproved drugs.”
A restitution hearing is set for December 7, 2023, at 9:30 a.m. before Judge Allison H. Goddard.
Potential victims related to this case may provide or request information by emailing [email protected]. Individuals may submit written statements including information about potential losses or requests for refunds that may be included as part of the restitution ordered on December 7, 2023.
DEFENDANT Case Number 23cr1700-AHG
Tien Tan Vo Age: 47 El Centro, CA
SUMMARY OF CHARGES
Accessory After the Fact to Entry of Goods by Means of False Statement – Title 18, U.S.C., Sections 542 and 3
Maximum penalty: one year in prison, fine of $100,000 or twice the pecuniary gain or loss
Receipt in Interstate Commerce of Misbranded Drugs and Delivery for Pay or Otherwise – Title 21, U.S.C., Sections 331(c) and 333(a)(1)
Maximum penalty: one year in prison, fine of $1,000 or twice the pecuniary gain or loss
AGENCIES
Homeland Security Investigations
U.S. Food and Drug Administration, Office of Criminal Investigations
Federal Bureau of Investigation
U.S. Department of Health and Human Services, Office of Inspector General
Brothers Admit to Conspiracy to Traffic Firearms They Believed Were Bound for MexicoRead the Press Release
NEWS RELEASE SUMMARY – October 19, 2023
SAN DIEGO – Homero Cervantes Rosales and Mauricio Cervantes Rosales – brothers from Perris, California - pleaded guilty in federal court today to conspiring to traffic firearms they believed were bound for Mexico and dealing firearms without a license.
They entered their guilty pleas before U.S. Magistrate Judge Karen S. Crawford. The defendants admitted that they and others exchanged marijuana with co-conspirators in Texas for firearms, which they sold to individuals they believed were drug traffickers. The defendants also used other sources to obtain firearms for the conspiracy.
According to the plea agreements, from February through April of this year, Homero and Mauricio Cervantes Rosales sold more than 30 firearms, including many Privately Made Firearms, also known as ghost guns; short-barrel rifles; silencers; and machine guns, for an estimated value of $60,000, to a cooperating individual and undercover agents who were posing as international drug traffickers. During one sale, Homero Cervantes Rosales said that with advance notice, he could get any kind of firearms or ammunition. According to plea agreements, undercover agents told the defendants the “firearms were destined for Mexico.”
“Trafficking guns into Mexico arms criminal organizations which then funnel drugs back into the United States,” said U.S. Attorney Tara K. McGrath. “In this case, ATF was able to seize an arsenal. And, without their intervention those guns would have put lives at risk on both sides of the border.”
“This is an excellent example of the use of new criminal firearms trafficking offense, 18 U.S.C. § 933,” said Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge of Los Angeles Field Division Christopher Bombardiere. “Firearms traffickers are responsible for the violence committed with those guns. As a society we have to make firearms trafficking as socially reprehensible as the crimes committed with those guns. These defendants were well aware these guns were destined for Mexico but kept making the firearm sales.”
This case is being prosecuted by Assistant U.S. Attorney Matthew Brehm.
DEFENDANTS Case Number 23cr0956-JO
Homero Cervantes Rosales Age: 38 Perris, CA
Mauricio Cervantes Rosales Age: 28 Perris, CA
SUMMARY OF CHARGES
Conspiracy to Traffic Firearms – Title 18, U.S.C., Section 933(a)
Maximum penalty: Fifteen years in prison and $250,000 fine
Dealing Firearms Without a License - Title 18, U.S.C., Section 922(a)(1)(A)
Maximum penalty: Five years in prison and $250,000 fine
AGENCY
Bureau of Alcohol, Tobacco, Firearms and Explosives
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Firearms Trafficker Sentenced to 15 Years in Prison for Supplying Weapons and Ammunition to Sinaloa CartelRead the Press Release
NEWS RELEASE SUMMARY – October 18, 2023
SAN DIEGO – Alfredo Lomas Navarrete, a prolific firearms trafficker, was sentenced in federal court today to 15 years in custody for his role in supplying hundreds of high-powered weapons and tens of thousands of rounds of ammunition to the Sinaloa Cartel.
This case is part of a long-running investigation targeting the Valenzuela Transnational Criminal Organization (TCO), which is a significant component of the Sinaloa Cartel. The Valenzuela TCO is one of the largest importers of cocaine into the United States. The TCO sources cocaine and other controlled substances (including fentanyl, heroin, methamphetamine, and marijuana) from South America and Mexico, transports the drugs to multiple locations along the U.S.-Mexico border using commercial trucking companies, smuggles the narcotics into the country, and distributes them throughout the U.S. The TCO then smuggles the bulk cash proceeds from its drug trafficking activities back to the TCO’s leadership in Mexico.
According to court records, throughout 2020, the Valenzuela TCO, including one of its leaders, Jorge Alberto Valenzuela Valenzuela (“Jorge”), was engaged in violent conflict with another component of the Sinaloa Cartel led by Ivan Archivaldo Guzman-Salazar. During this conflict, Jorge’s brother and previous TCO leader, Gabriel Valenzuela-Valenzuela, was killed. This led the Valenzuela TCO to procure large quantities of firearms, ammunition, tactical gear, armored vehicles, and ballistic vests. A considerable number of these items were sourced from within the United States and clandestinely smuggled into Mexico, using numerous arms trafficking networks.
During the multi-year investigation, agents identified Alfredo Lomas Navarrete as a major firearms trafficker for the TCO. Agents recovered hundreds of messages between Jorge and Lomas in which they discussed firearms trafficking. Lomas worked closely with Jorge and other high-ranking organization members to supply hundreds of firearms to the TCO. These firearms ranged from .50 caliber rifles, submachine guns, and grenade launchers, to assault rifles (AK-47s, AR-15s, FN SCARs) and handguns. In addition to the weapons, Lomas and his co-conspirators supplied tens of thousands of rounds of ammunition to the TCO. Some of these weapons and ammunition were acquired in the United States, including in California, Arizona, and Nevada, and then smuggled through the Ports of Entry in San Diego and Arizona into Mexico
To date, this investigation has resulted in the charging of 109 defendants and the seizure of approximately 2,000 kilograms of cocaine and fentanyl, over $16 million in cash, and 21,000 rounds of ammunition.
Lomas pleaded guilty in April 2023 to conspiring to import cocaine, distribute cocaine, commit money laundering, and to smuggle goods from the United States.
“The amount of cash, ammunition, and narcotics seized in this case is staggering,” said U.S. Attorney Tara McGrath. “The collaboration in this case sends a clear message that the U.S. Attorney’s Office will attack every facet of drug trafficking organizations from money to drugs to firearms. We will stay after it for as long as it takes to bring them to justice.”
“The Venezuelan transnational criminal organization has brought death and suffering to countless people through their once prosperous criminal enterprise,” said Chad Plantz, special agent in charge for HSI San Diego. “The sentencing of this firearms trafficker sends a resounding message to traffickers and criminals around the world that HSI and the law enforcement community will vehemently pursue those who seek to harm not only Americans, but humanity as a whole with their brutality and deadly drugs.”
“Drug cartels use drug proceeds to purchase weapons and ammunition, fueling violence in our communities,” said DEA Special Agent in Charge Shelly Howe. “DEA and our federal, state, and local partners will continue to hold drug traffickers and the cartels responsible for the carnage and destruction they cause.”
“The sentencing of Mr. Navarrete is a major milestone in federal law enforcement’s efforts to disrupt and dismantle illegal trafficking operations of all kinds,” said FBI San Diego Special Agent in Charge, Stacey Moy. “We are proud to support our law enforcement partners in all efforts that target and take down crime organizations that threaten the citizens of the United States of America.”
“Mr. Navarrete’s enablement of violence on both sides of the U.S.-Mexico border is over,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “Crime leaves a money trail, and when we pool our resources we are able to find the evidence necessary to lead to conviction. Navarrete is going to prison because of a well-coordinated joint investigation we are proud to have been part of.”
This case is being prosecuted by Assistant U.S. Attorneys Matthew J. Sutton and Mikaela Weber.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.
DEFENDANT Case Number 21-cr-2960-AGS
Alfredo Lomas Navarrete Age: 33 Culiacan, Mexico
SUMMARY OF CHARGES
International Conspiracy to Distribute Cocaine for Purpose of Unlawful Importation, in violation of Title 21 U.S.C. §§ 959, 960 and 963.
Maximum Penalty: Mandatory minimum 10 years and up to life in prison, $10 million fine.
Conspiracy to Import Cocaine, in violation of Title 21 U.S.C. §§ 952, 960 and 963.
Maximum Penalty: Mandatory minimum 10 years and up to life in prison, $10 million fine.
Conspiracy to Distribute Cocaine, in violation of Title 21 U.S.C. §§ 841(a)(1) and 846.
Maximum Penalty: Mandatory minimum 10 years and up to life in prison, $10 million fine.
Conspiracy to Launder Monetary Instruments, in violation of Title 18 U.S.C. 1956(h).
Maximum Penalty: Twenty years in prison, a fine of $500,000 or twice the value of the monetary instrument or funds involved.
Conspiracy to Smuggle Goods, in violation of Title 18, U.S.C. §§ 371 and 554(a).
Maximum Penalty: Five years in prison, fine of $250,000.
AGENCY
Homeland Security Investigations
Drug Enforcement Administration
Federal Bureau of Investigation
Internal Revenue Service - Criminal Investigation
United States Marshals Service
Customs and Border Protection, Office of Field Operations
Customs and Border Protection, Office of Border Patrol
Department of Justice, Organized Crime Drug Enforcement Task Forces
Department of Justice, Office of Enforcement Operations
Department of Justice, Office of International Affairs
San Diego County Sheriff’s Department
San Diego Police Department
Border Crime Suppression Team
San Diego County District Attorney’s Office
Former U.S. Navy Service Member Sentenced for $2 Million Insurance Fraud SchemeRead the Press Release
NEWS RELEASE SUMMARY – October 17, 2023
SAN DIEGO – Christopher Toups, who at the time of his crimes was a chief petty officer in the U.S. Navy, was sentenced in federal court to 30 months in prison after admitting that he and others defrauded an insurance program meant to compensate service members who suffer serious and debilitating injuries while on active duty.
Toups’ sentence followed his guilty plea to conspiracy to commit wire fraud. According to his plea agreement, participants in the scheme obtained approximately $2 million in payments from fraudulent claims submitted to Traumatic Servicemembers Group Life Insurance Program, or TSGLI, and Toups personally obtained about $400,000. TSGLI was funded by service members and the Department of the Navy.
Toups admitted that from 2012 to at least December 2015, he conspired with his then-spouse Kelene McGrath, Navy Dr. Michael Villarroel, and others to obtain money from the United States by making claims for life insurance payments based on exaggerated or fake injuries and disabilities.
“Lying and stealing funds meant for injured service members is appalling,” said U.S. Attorney Tara McGrath. “The United States Attorney’s Office is committed to protecting those who serve, and this case is an excellent example of law enforcement collaboration to do just that.”
“Fraudulently filing claims for unearned benefits diverts compensation from deserving service members who suffered serious and debilitating injuries while on active duty,” said Special Agent in Charge Rebeccalynn Staples with the Department of Veterans Affairs Office of Inspector General’s Western Field Office. “This sentence holds the defendant accountable for his egregious actions, and the VA OIG will continue to work tirelessly with our law enforcement partners to ensure schemes like this are uncovered, investigated, and prosecuted to the fullest extent of the law.”
“Mr. Toups participated in a fraud scheme that defrauded the American taxpayer and diverted vital money, care, and resources from service members recovering from traumatic injuries,” said Special Agent in Charge Greg Gross of the NCIS Economic Crimes Field Office. “This sentence demonstrates the commitment of NCIS and its partners to combatting fraud that harms the Department of the Navy and its warfighters.”
“Stealing from a program set in place to aid injured and disabled servicemembers diverts compensation from deserving individuals,” said FBI San Diego Special Agent in Charge Stacey Moy. “Willingly defrauding the American people, especially those who protect our country, will not be tolerated. The FBI will continue to collaborate with our law enforcement partners to ensure those who commit such acts are held accountable.”
According to the plea agreement, in addition to submitting his own TSGLI claims based on fake injuries and disabilities, Toups encouraged numerous current or former Navy service members to submit claims and sometimes told them to provide medical records to McGrath. McGrath, a nurse, falsified or doctored medical records to exaggerate or fake injuries. Villarroel certified that he reviewed the records and determined activities of daily living were lost or impaired and consistent with the claimed injuries as required for claims to be processed and qualify, at times supporting the determination by falsely stating he interviewed the claimant. Villarroel also, at times, provided others’ medical records for McGrath to use in fabricating claims.
Toups admitted that he encouraged recipients of claim payments to give him part of the money, sometimes characterizing it as a “processing fee.” McGrath and Villarroel received part of the kickback depending on their involvement in the claim. Toups paid Villarroel in cash and by cashier’s check. At times, Toups and others conducted financial transactions in amounts under $10,000 to evade perceived financial reporting requirements.
According to court records, Toups and his co-defendants were part of the Explosive Ordinance Disposal Expeditionary Support Unit One (“EOD ESU One”), based in Coronado, California. Toups was a Chief Petty Officer Construction Mechanic.
DEFENDANT 18CR1674-JLS
Christopher Toups 46 White, GA
RELATED CASES
Kelene Meyer 18CR1674-JLS Jacksonville, FL
Dr. Michael Villarroel 18CR1674-JLS Coronado, CA
Paul Craig 18CR1674-JLS Austin, TX
Richard Cote 18CR1674-JLS Oceanside, CA
Earnest Thompson 18CR1674-JLS Murrieta, CA
Ronald Olmsted 20CR0659-JLS Mobile, AL
Anthony Coco 20CR0197-JLS San Diego, CA
Stephen Mulholland 20CR0052-JLS Panama City Beach, FL
SUMMARY OF CHARGES
Toups:
18 U.S.C. § 1349, Conspiracy to Commit Wire Fraud
Maximum Penalty: Twenty years in prison, $250,000 fine, forfeiture and restitution
Others:
18 U.S.C. § 1349, Conspiracy to Commit Wire Fraud
Maximum Penalty: Twenty years in prison, $250,000 fine, forfeiture and restitution
18 U.S.C. § 1343, Wire Fraud
Maximum Penalty: Twenty years in prison, $250,000 fine, forfeiture and restitution
18 U.S.C. § 287, Making a False Claim
Maximum Penalty: Five years in prison, $250,000 fine
AGENCIES
Federal Bureau of Investigation
Naval Criminal Investigative Service
Department of Veterans Affairs - Office of Inspector General
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Former San Diego Police Officer and Three Others Sentenced for Crimes Stemming from Years-long Operation of Illicit Massage BusinessesRead the Press Release
NEWS RELEASE SUMMARY – October 13, 2023
SAN DIEGO – Peter Griffin, a retired San Diego police vice detective, attorney, and private investigator, was sentenced in federal court today to 33 months in custody for his central role in a conspiracy to operate five California- and Arizona-based illicit massage businesses that profited for years by selling commercial sex under the guise of offering therapeutic massage services.
Griffin’s three co-defendants - Kyung Sook Hernandez, Yu Hong Tan, and Yoo Jin Ott - who managed the illicit massage businesses in Griffin’s network and actively concealed the scheme from law enforcement, were each sentenced to six months in custody.
According to court documents and admissions in plea agreements, the defendants owned and operated “Genie Oriental Spa,” “Felicita Spa,” “Blue Green Spa,” “Maple Spa,” and “Massage W Spa,” located in the greater San Diego area and in Tempe, Arizona, between 2013 and August 2022. The criminal scheme included incorporating their businesses with state agencies, managing the businesses’ illicit proceeds, advertising commercial sexual services online, recruiting and employing women to perform commercial sex services in the businesses, and benefiting financially from the illegal enterprises.
The defendants leased multiple commercial properties as storefronts, leased and bought residential properties to use as housing for employees, and secured credit card processing equipment to facilitate the illegal businesses. Griffin oversaw nearly every aspect of the illicit businesses, making himself indispensable to their operation, and assumed the role of “boss.”
Through the course of the scheme, the defendants exploited the victims, mostly vulnerable, non-English speaking immigrants from Korea and China with limited employment opportunities and financial resources; pressured and expected the employees to perform commercial sex services inside the businesses; and made substantial financial profits from the illegal commercial sexual activity. When one employee initially refused to perform commercial sexual services, one of the defendants instructed her to “leave [her] morals in China” in order to “make the customers happy.”
Griffin, who left the department in 2002, previously worked as a detective with the Vice Operations Unit of the San Diego Police Department, a unit tasked with dismantling the very businesses he operated and promoted for personal profit. Throughout the nine-year criminal scheme, Griffin used the experience and skills he acquired through his work as a vice detective – skills honed by his education as an attorney and work as a private investigator – and his reputation as a former police officer to help the businesses evade law enforcement; conceal evidence; pressure employees to engage in commercial sex; maintain a façade of legitimacy; and thwart regulatory inspections, investigations, and any official action against the businesses.
According to his plea agreement, on several occasions, Griffin used his status as a former law enforcement officer to falsely assure local authorities that his businesses would be operated legitimately. On another occasion, Griffin flashed his badge to a local officer responding to a citizen complaint regarding one of his illicit businesses. Additionally, Griffin told an employee that he was a former police officer and instructed her not to “open [her] mouth” about working at the illicit massage business. Griffin’s co-defendants similarly informed employees of Griffin’s law enforcement background and his resulting “connections” and promised he would protect the illegal businesses from law enforcement detection. Griffin also abused resources he had access to by virtue of his private investigator license to obtain information on customers and employees on behalf of the illicit massage businesses.
“Illicit massage businesses hide in plain sight in many communities in America, including our district,” said U.S. Attorney Tara K. McGrath. “Operators of these businesses often profit through exploitation. For years, Peter Griffin used his connections as a former police officer for his own criminal profiteering. The U.S. Attorney’s Office is committed to prosecuting these kinds of offenses, protecting our communities, and ensuring that legitimate local businesses are not tarnished by criminal activity.”
“No one is above the law. I’m appalled that someone who once took an oath to protect our community could prey on the vulnerable,” said San Diego Chief of Police David Nisleit. “I’m proud of our own SDPD officers who helped make this investigation possible and I commend our partner agencies for their diligence in holding Peter Griffin and his accomplices accountable. This is an important step toward justice for the survivors of these crimes.”
“Law enforcement professionals swear an oath to protect and defend our communities, and the spirit of that oath should live on even when we stop carrying a badge,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “Mr. Griffin preyed on people who should have felt safer because of his presence. He and his co-conspirators failed in their attempts to conceal their illicit activities because of our special agents’ unique ability to follow the money and a strong cross-agency effort to find the evidence to bring these predators to justice.”
“Peter Griffin abused and exploited vulnerable women by pressuring them into providing commercial sex for profit while taking advantage of his status in the community,” said Chad Plantz, special agent in charge for HSI San Diego. “This sentence sends a clear message to those who mistakenly believe they can get away with such repugnant crimes. HSI, in collaboration with our law enforcement partners, will continue to work vigorously to bring to justice those who exploit and victimize vulnerable members of our community.”
This case is being prosecuted by Assistant U.S. Attorney Jill S. Streja, Trial Attorney Caylee Campbell of the Money Laundering and Asset Recovery Section of the Criminal Division of the Department of Justice, and Trial Attorney Leah Branch of the Civil Rights Division’s Human Trafficking Prosecution Unit.
DEFENDANTS Case Number 22cr1824-JO
Peter Griffin 79
Kyung Sook Hernandez 59
Yu Hong Tan 57
Yoo Jin Ott 46
SUMMARY OF CHARGES
Conspiracy, Interstate and Foreign Travel or Transportation in Aid of Racketeering (ITAR),
Maximum Penalty: Five years in prison, $250,000 fine
Conspiracy to Commit Wire Fraud
Maximum Penalty: Thirty years in prison, $1 million fine
Engaging in Monetary Transactions in Property Derived from Specified Unlawful Activity
Maximum Penalty: Ten years in prison, $250,000 fine or twice amount of criminally derived property
Misprision of a Felony
Maximum Penalty: Three years in prison, $250,000 fine
AGENCIES
Homeland Security Investigations
Internal Revenue Service Criminal Investigation
San Diego Human Trafficking Task Force, a regional, multi-agency effort led by the California Department of Justice dedicated to supporting survivors and holding traffickers accountable. The task force is comprised of numerous federal, state, and local agencies, as well as the Southwest Border High Intensity Drug Trafficking Area program.
U.S. Department of Justice, Money Laundering Asset Recovery Section, Special Financial Investigations Unit
Federal Bureau of Investigation
San Diego Police Department
San Diego Sheriff’s Department
Escondido Police Department
San Diego County District Attorney’s Office
Tempe, Arizona Police Department.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org.
Riverside County Man Sentenced to Five Years for Federal Firearm and Drug Charges After High-Speed ChaseRead the Press Release
NEWS RELEASE SUMMARY –October 6, 2023
SAN DIEGO – Shane Glazer of Riverside County was sentenced in federal court today to 60 months for possessing a firearm in furtherance of his intent to distribute fentanyl, methamphetamine, and heroin.
According to the government’s sentencing papers, on June 10, 2022, San Diego police officers found the defendant in his car, slumped over and unconscious, with the keys in the ignition and the vehicle running. Glazer was wearing a fanny pack. In the pack, officers found fentanyl and methamphetamine as well as $3,600. In the car, officers also found an unserialized personally manufactured firearm, or “ghost gun,” loaded with ten rounds of ammunition, as well as a high-capacity magazine loaded with 29 rounds of ammunition. The defendant was released on bond pending trial.
Five weeks later, officers found Glazer again slumped over in the driver’s seat with the keys in the ignition and the vehicle running. This time, the defendant used his car to flee the scene. In his attempts to evade officers, Glazer ran a stop sign and two red lights, and then led officers on a vehicle pursuit that reached speeds of over 125 mph. The defendant swerved in and out of traffic, at one point nearly missing another vehicle as he rapidly careened through traffic lanes and drove onto the freeway. As the defendant attempted to enter the I-8 East freeway, he lost control of the vehicle, crashing into an embankment and eventually stopping at the I-8 median barrier. He then threw a loaded gun onto the I-8 West freeway and ran across the lanes of traffic. Vehicles were forced to swerve around Glazer, who narrowly avoided being hit. In addition to seizing the gun, officers searched Glazer’s vehicle and again found fentanyl, methamphetamine, and heroin, as well as $1,546 in cash.
“Drugs, guns and high-speed pursuits could have been a deadly combination,” said U.S. Attorney Tara McGrath. “But for the intervention by the San Diego Police Department, this could have been a catastrophe. Today, Mr. Glazer is being held accountable for his brazen disregard for the law.”
“ATF acknowledges individuals may lawfully possess, make and use privately made firearms under federal law, but those that use them in furtherance of drug trafficking will be held accountable,” said Chris Bombardiere, Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge of Los Angeles Field Division. “ATF will continue to focus on the misuse of firearms to combat violent crime in our communities.”
This case was prosecuted by Assistant U.S. Attorney Sandor Callahan.
DEFENDANT Case Number 22cr1972
Shane Glazer Age: 30 Sun City, CA
SUMMARY OF CHARGES
Possession of a Firearm in Furtherance of a Drug Trafficking Crime – Title 18 U.S.C. Section 924(c)(1)
Maximum penalty: Life in Prison
Possession of Fentanyl with Intent to Distribute – Title 21 U.S.C. Section 841(a)(1)
Maximum Penalty: Twenty Years in Prison
Possession of Methamphetamine with Intent to Distribute – Title 21 U.S.C. Section 841(a)(1)
Maximum Penalty: Twenty Years in Prison
Possession of Heroin with Intent to Distribute – Title 21 U.S.C. Section 841(a)(1)
Maximum Penalty: Twenty Years in Prison
AGENCY
The Bureau of Alcohol, Tobacco, and Firearms.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department 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.
Tara K. McGrath Sworn in as United States Attorney, Becomes Chief Federal Law Enforcement Officer in One of Nation’s Busiest DistrictsRead the Press Release
NEWS RELEASE SUMMARY – October 5, 2023
SAN DIEGO – Tara K. McGrath, a U.S. Marine Corps veteran and former federal prosecutor in San Diego, was sworn in today as the United States Attorney for the Southern District of California.
Ms. McGrath, 49, was sworn in by Chief United States District Judge Dana M. Sabraw in a ceremony at the federal courthouse this afternoon. Ms. McGrath now oversees one of the busiest United States Attorney’s Offices in the nation. The office, which has a staff of about 300, serves approximately 3.5 million residents in San Diego and Imperial counties.
Ms. McGrath was nominated by President Biden in March and confirmed by the U.S. Senate on Friday, September 29, 2023.
“I am ready to get to work,” Ms. McGrath said. “We face substantial challenges in this region every day and we are incredibly fortunate to have countless public servants committed to our safety and well-being. I am honored to be rejoining them.”
Ms. McGrath returns to the U.S. Attorney’s Office in San Diego after departing in 2019 to serve as a civilian Litigation Attorney Advisor for the U.S. Marine Corps. In that role, Ms. McGrath provided senior-level oversight, ethics advice, and trial strategy guidance in criminal investigations and courts-martial across seven military bases in four countries. She also provided litigation expertise to Headquarters, U.S. Marine Corps.
A seasoned federal prosecutor, Ms. McGrath spent more than 10 years as an Assistant U.S. Attorney in the Southern District working on behalf of both San Diego and Imperial counties. Initially assigned to the General Crimes and Narcotics Enforcement sections, Ms. McGrath prosecuted more than 500 cases in federal court and led scores of investigations with federal agents involving grand juries, wire taps, and undercover agents. She has argued three cases before the U.S. Court of Appeals for the Ninth Circuit.
During her tenure as an Assistant U.S. Attorney, Ms. McGrath served as a Deputy Chief and Trial Team Leader in the General Crimes Section. In these roles, she supervised more than 70 federal prosecutors and support staff, overseeing the intake and prosecution of more than 4,000 cases annually, including border crimes, human trafficking, violent crime, public corruption, fraud, racketeering, narcotics, and civil rights cases.
For her work as a prosecutor, Ms. McGrath received the U.S. Department of Justice’s prestigious Director’s Award for Superior Performance, among other recognition. She also received the Department of the Navy’s Meritorious Civilian Service award for her significant contributions to policy development and prosecution of special victim cases.
During her time with the Department of Justice, Ms. McGrath also served as a trial attorney in the Office of Enforcement Operations in Washington, D.C. In that role, she provided technical legal advice to experienced Assistant United States Attorneys and federal agents throughout the United States on gathering electronic evidence in compliance with federal law and DOJ policy, and she coordinated DOJ case management with attorneys from centralized enforcement divisions, including the racketeering, fraud, and narcotics prosecution sections.
Ms. McGrath graduated from University of Michigan Law School in 2001 and earned a B.A., cum laude, from Boston College in 1995.
Second Executive Admits Participating in $150 Million Fraud on QualcommRead the Press Release
NEWS RELEASE SUMMARY – October 5, 2023
SAN DIEGO – Ali Akbar Shokouhi, the primary investor of a technology company sold to Qualcomm for over $150 million, pleaded guilty in federal court today, admitting his role in a massive fraud.
Shokouhi, a San Diego resident, pleaded guilty to one count of money laundering related to a transaction involving proceeds of the fraud on Qualcomm. In his plea agreement, Shokouhi admitted that he schemed with co-defendant Karim Arabi and others to hide both Arabi’s and Shokouhi’s involvement in Abreezio—the tech firm that they marketed to Qualcomm.
Arabi was a Qualcomm employee throughout the entire marketing period, and hiding his involvement in the firm and the development of its patented technology allowed Abreezio’s principals to claim that the company was an “angel-funded” outside firm while disguising its true connections to Qualcomm. In that regard, Shokouhi admitted Arabi was intimately involved in Abreezio’s formation, development, and marketing to Qualcomm, including choosing the “Abreezio” name. Shokouhi further admitted that he referred to Arabi by a different name in text messages with co-conspirators to obscure Arabi’s involvement in Abreezio. According to court documents, Qualcomm agreed to pay roughly $180 million for Abreezio—$150 million of which was paid in October 2015.
Like co-defendant Sanjiv Taneja, who recently pleaded guilty and admitted his own role in the fraud, Shokouhi acknowledged that he never actually met the purported creator of Abreezio’s core technologies, who is Arabi’s family member and was never involved in the company’s technical or strategic decision-making as far as Shokouhi knew.
Shokouhi further admitted that he and Arabi concealed Shokouhi’s involvement in Abreezio in part because Shokouhi had previously been terminated from Qualcomm because of a conflict-of-interest violation. As part of his plea agreement, Shokouhi agreed to forfeit over $16 million that he personally received from Qualcomm’s purchase of Abreezio, and to pay restitution.
This case is being prosecuted by Assistant U.S. Attorneys Nicholas W. Pilchak, Janaki G. Chopra and Eric R. Olah.
DEFENDANTS Case Number 22-CR-1152-BAS
Karim Arabi Age: 57 San Diego, CA
Sanjiv Taneja Age: 60 Cupertino, CA
Ali Akbar Shokouhi Age: 64 San Diego, CA
AGENCIES
Federal Bureau of Investigation
Internal Revenue Services, Criminal Investigation
United States Marshals Service
*The charges and allegations contained in an indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Imperial County Dentist and Former Office Manager Plead Guilty in Multi-Million Dollar Medicare FraudRead the Press Release
SAN DIEGO – Dr. Javad Aghaloo, an Imperial County dentist, and Theresa Flores, his office manager, pleaded guilty in federal court yesterday, admitting that they conspired to defraud Medicare and cover it up.
Aghaloo entered a guilty plea to conspiring to commit health care fraud by billing Medicare for procedures that were not covered, not performed, or otherwise not necessary. As part of his plea, Aghaloo agreed to forfeit more than $1 million in property and pay restitution to Medicare in the amount of $8,476,466.23. Flores entered a guilty plea to obstructing a Medicare audit.
According to court records, Aghaloo and others recruited Medicare beneficiaries to get dental work done at one of Aghaloo’s offices. To recruit Medicare patients, Aghaloo and Flores marketed dental services to individuals in Imperial County as being covered by Medicare. Aghaloo and Flores knew this was untrue since Medicare does not cover dental services.
Once a Medicare beneficiary was in one of Aghaloo’s offices, Aghaloo and others performed some type of procedure (usually a tooth extraction) and submitted false claims to Medicare using the person’s Medicare beneficiary number. Since tooth extractions are not covered by Medicare, Aghaloo’s offices instead submitted false claims for procedures like bone grafts that were never performed.
Between March 1, 2016, and October 18, 2018, Aghaloo and Flores caused Aghaloo’s dental offices to submit over 7,000 false claims to Medicare, totaling over $18 million for which Aghaloo’s offices were paid $8,476,466.23 by Medicare.
To conceal the fraud, between April of 2017 and October of 2018, Flores and Rosas caused false documents to be submitted to Noridian Healthcare Solutions, LLC. (“NHS”), a Federal auditor for the Medicare program.
Sentencing is set for January 12, 2024, at 9:00 a.m. before U.S. District Judge Jinsook Ohta.
This case is being prosecuted by Assistant U.S. Attorney Christopher Alexander.
DEFENDANT Case Number 23cr0616-JO
Javad Aghaloo Age: 50 San Diego, CA
Theresa Flores Age: 45 San Diego, CA
SUMMARY OF CHARGES
Conspiracy to Commit Health Care Fraud, a felony, in violation of Title 18, United States Code, Section 371.
Maximum Penalty: Five years in prison and a fine of $250,000.
Obstructing a Federal Audit, a felony, in violation of Title 18, United States Code, Section 1516.
Maximum Penalty: Five years in prison and a fine of $250,000.
AGENCIES
Federal Bureau of Investigation.
U.S. Department of Health and Human Services, Office of Inspector General.
San Diego Resident Pleads Guilty to Distributing Fentanyl that Resulted in Teenager’s DeathRead the Press Release
SAN DIEGO – Jose Daniel Ramirez of San Diego pleaded guilty in federal court today to possession with intent to distribute pills laced with fentanyl that killed a 19-year-old Poway resident, referred to in court records as K.W.P., on January 3, 2023.
Ramirez admitted to selling the fentanyl pills, disguised as oxycodone, to K.W.P. and others. In a series of text messages, Ramirez agreed to sell “2 blues” to K.W.P. After receiving and consuming the pills, K.W.P. was found dead of a fentanyl overdose a few hours later. After learning of K.W.P.’s death, Ramirez changed his phone number, informed clients of his new number, and continued to sell fentanyl.
On February 8, 2023, law enforcement officers arrested Ramirez. Following Ramirez’s arrest, investigators secured a warrant and searched his residence. There they located two Glock handguns, over 250 rounds of various ammunition and approximately 2,600 blue pills containing fentanyl along with cocaine and other drugs. One of the handguns was fully loaded with a round of ammunition in the chamber.
“It is outrageous that this defendant continued to sell fentanyl even after learning of their customers’ deaths,” said acting U.S. Attorney Andrew Haden. “Fentanyl deaths resulting from the actions of profit-seeking drug dealers will continue to be zealously prosecuted.”
“Fentanyl kills indiscriminately, and the defendants’ callous and irresponsible disregard led to the tragic death of a teenager,” said Chad Plantz, special agent in charge for HSI San Diego. “Overdoses due to fentanyl have dramatically increased – this is unacceptable. I commend the work of the HSI special agents and our partners who work tirelessly every single day to stop preventable drug poisonings from taking so many lives too soon.”
“Since 2017, the San Diego Sheriff's Department has been a leader in investigating drug overdose death cases,” said San Diego County Sheriff Kelly Martinez. “The Sheriff's Department is dedicated to identifying and arresting fentanyl dealers who provide this deadly drug to our communities. During this investigation, Mr. Ramirez continued selling this dangerous drug, but we were able to stop him in the act of selling fentanyl to an 18-year-old at the time of his arrest. The actions of all involved likely saved the life of another teenager. We are proud of the collaborative effort of Sheriff's FAST Detective Morse and his federal partners with Homeland Security Investigations, Customs and Border Protection, the Drug Enforcement Administration, and the United States Attorney's Office. The Sheriff's Department will continue in these partnerships and target these dangerous drug dealers in our continued effort to combat this deadly epidemic.”
Ramirez is scheduled to be sentenced on January 3, 2024, at 9 a.m. before U.S. District Judge Ruth Bermudez Montenegro.
Special Agents and Task Force Officers with the Drug Enforcement Administration’s Overdose Response Team (formerly known as Team 10) led the investigation into K.W.P.’s death. This case is the result of ongoing efforts by the U.S. Attorney’s Office, the Drug Enforcement Administration, Homeland Security Investigations, the Federal Bureau of Investigation, the San Diego Police Department, and the California Department of Health Care Services 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. Attorneys Sean Van Demark and Dylan M. Aste.
DEFENDANT Case Number 23cr00274-RBM
Jose Daniel Ramirez Age: 20 San Diego, CA
SUMMARY OF CHARGES
Distribution of Fentanyl – Title 18, United States Code, Section 841(a)(1)
Maximum penalty: Twenty years in prison
AGENCY
Homeland Security Investigations
San Diego Sheriff
Drug Enforcement Administration
Former Union President Sentenced in Connection with $36,000 EmbezzlementRead the Press Release
NEWS RELEASE SUMMARY – September 27, 2023
SAN DIEGO – Felix Luciano, former President of Local 2805 chapter of the American Federation of Government Employees and former Department of Homeland Security officer, was sentenced in federal court today to four months in custody for filing a false report to conceal his embezzlement of thousands of dollars in union dues.
U.S. District Judge Jinsook Ohta also ordered Luciano to repay $36,000 to Local 2805 as money that he embezzled and pay a $10,000 fine. In imposing the sentence, Judge Ohta found that Luciano abused the trust of union members.
Local 2805 is a labor union which represents Department of Homeland Security, Immigration and Customs Enforcement employees in San Diego and Imperial Counties.
According to court records, from January of 2016 to December of 2018, Luciano used some of Local 2805’s money for a variety of personal expenses, including shopping, travel reimbursements, groceries, dining, dry cleaning, and paying for non-union accounts. He did this by writing checks from Local 2805’s checking account and using Local 2805’s debit and credit cards to directly pay personal expenses. As a result of Luciano’s actions, he caused a total loss of $36,000 to Local 2805.
As Local 2805’s president, Luciano was required to file an annual Form LM-3 financial report with the United States Department of Labor, Office of Labor-Management Standards. A Form LM-3 is a report containing information about the organization over the prior year, including assets, liabilities, and disbursements to officers. A Form LM-3 is sworn under penalty of perjury. In the LM-3 report he filed in 2018, Luciano underreported the amount of money that he received from Local 2805 and Local 2805’s cash balance. In doing so, Luciano attempted to hide his embezzlement from the Department of Labor, his fellow union officers, as well as the union membership whose dues were the source of the embezzled funds.
“When workers devote their hard-earned money to labor unions, they rightly expect the officers to be honest stewards of their dues,” said Acting U.S. Attorney Andrew R. Haden. “Felix Luciano abused the trust of the government employees represented by Local 2805 for his own personal benefit. We hope this criminal prosecution helps to hold Luciano accountable for his crimes and serves as a deterrent for others who might consider abusing the trust of union members.”
“While the vast majority of union officials do their work diligently and without incident, unfortunately criminal violations do occur. When they do, it is the union and its members that are the victims. Felix Luciano embezzled over $36,000 from AFGE Local 2805 that should have been used for its members’ benefit,” said Ed Oquendo, District Director, U.S. Department of Labor, Office of Labor-Management Standards. “OLMS is committed to hold accountable anyone who unlawfully exploits their position for financial gain at the expense of their fellow union members.”
Carroll Harris, Postal Inspector in Charge of the Los Angeles Division, stated, “This investigation was an excellent example of a partnership between federal law enforcement agencies, working together in the pursuit of justice. I fully commend the hard work and countless hours put forth by all the law enforcement agencies involved.”
This case is being prosecuted by Assistant U.S. Attorney Christopher Alexander.
DEFENDANT Case Number 22cr2201-JO
Felix Luciano Age: 61 San Diego, CA
SUMMARY OF CHARGES
False Statement, a felony, in violation of Title 18, United States Code, Section 1001.
Maximum Penalty: Five years in prison and a fine of $250,000.
AGENCIES
Department of Labor, Office of Labor Management Standards
Department of Labor, Office of Inspector General
Department of Homeland Security, Office of Inspector General
United States Postal Inspection Service
Tijuana Man Sentenced to Federal Prison after 30-Year Identity Theft UncoveredRead the Press Release
NEWS RELEASE SUMMARY – September 25, 2023
SAN DIEGO – Abel Alonso Valdez-Vazquez was sentenced to 18 months in federal prison for misusing the identity of an American citizen for over 30 years in order to obtain identification documents and thousands of dollars in government benefits.
U.S. District Judge Anthony J. Battaglia ordered Valdez-Vazquez, 59, to pay $81,185.35 in restitution to the Social Security Administration. Valdez-Vazquez will likely be deported at the conclusion of his prison sentences.
Valdez-Vazquez was originally arrested on August 5, 2022, after driving a vehicle into the U.S. through the Otay Mesa Port of Entry that had three undocumented aliens concealed within it. Valdez-Vazquez was charged under the identity of G.P., a U.S. citizen, and pleaded guilty to his conduct as “G.P.” on January 19, 2023.
Soon thereafter, investigators learned that a second man claiming to be G.P. had complained that his identity had been stolen and used for decades by an unknown person. Investigators were able to confirm the true G.P.’s identity after confirming it with family members and birth records. It was more difficult to determine the identity of his impersonator, but ultimately his true name – Abel Alonso Valdez-Vazquez – was revealed and his status as a Mexican citizen without legal status in the United States was confirmed.
It was determined that Valdez-Vazquez had been using G.P.’s identity since at least December 1992, when he was first arrested (and later convicted) under G.P.’s identity.In his second plea agreement, entered on June 30, 2023, as Abel Alonso Valdez-Vazquez, he admitted that from 2007 through 2017, and 2019 through December 2021, he received Supplemental Security Income (SSI) from the Social Security Administration under G.P.’s identity. Valdez-Vazquez admitted that as a Mexican citizen without legal status in the United States, he was never eligible to receive any government benefits, and that all SSI paid to him was therefore money stolen from the United States. Valdez-Vazquez also admitted fraudulently applying for and receiving a California Driver’s License under G.P.’s identity, and then using that license to apply for entry into the United States on August 5, 2022, when he was arrested at the border.
“This defendant pulled off this fraudulent charade for more than 30 years, and he had many victims – from the man whose identity was stolen, to the courts, state and federal government, and the Social Security Administration,” said Acting United States Attorney Andrew R. Haden. “We hope this prosecution sends a message to those who commit fraud and identity theft: No matter how long it takes, you will be found out, and there will be consequences for your crimes.”
“The effects of stolen identities have long lasting effects that can take years and prove costly to resolve,” said Chad Plantz, special agent in charge for HSI San Diego. “Identity theft is not a victimless crime and HSI is committed to investigating those who think otherwise and helping victims.”
“Mr. Valdez-Vazquez knowingly committed identity theft, receiving Supplemental Security Income that he was not legally eligible for, which is a federal crime,” said Gail S. Ennis, Inspector General for the SSA. “This sentence holds him accountable for his deceitful actions. I thank the U.S. Attorney’s Office for prosecuting this case.”
These cases were prosecuted by Assistant U.S. Attorney Edward Chang and Special Assistant U.S. Attorney Jeffrey D. Hill.
DEFENDANTS Case Numbers 22cr1969-AJB & 23cr1304-AJB
Abel Alonso Valdez-Vazquez Age: 59 Tijuana, MX
SUMMARY OF CHARGES
Bringing in Unlawful Aliens Without Presentation – Title 8, U.S.C. Section 1324(a)(2)(B)(iii)
Maximum penalty: Ten years in prison and $250,000 fine
Receipt of Stolen Public Money – Title 18, U.S.C. Section 641
Maximum Penalty: Ten years in prison and $250,000 fine
Unlawful Representation – Title 8, U.S.C. Section 1325(a)(2)
Maximum Penalty: Six months in prison and $5,000 fine
AGENCIES
United States Homeland Security Investigations
Social Security Administration – Office of the Inspector General
Pasadena Man Sentenced for Sex Trafficking of a ChildRead the Press Release
NEWS RELEASE SUMMARY – September 20, 2023
SAN DIEGO – Daylan Lamont Camp of Pasadena was sentenced in federal court today to nine years in prison for sex trafficking a 14-year-old girl in the fall of 2020.
The defendant pleaded guilty on November 29, 2022, to one count of Conspiracy to Engage in Sex Trafficking of Children.
On November 16, 2020, the National Center for Missing and Exploited Children (NCMEC) contacted Homeland Security Investigations (HSI) with information related to a 14-year-old girl with an active online commercial sex advertisement located in San Diego. NCMEC conveyed that the girl had been reported as a runaway by Los Angeles County officials, and that between August and November 2020, NCMEC had identified multiple commercial sex advertisements on various internet-based websites with her image throughout Southern California, including in Los Angeles, San Bernardino and San Diego.
That same day, HSI, working with the San Diego Human Trafficking Task Force, located an advertisement for the girl offering commercial sex in San Diego. An undercover operation was conducted that ultimately led to the recovery of both the girl and an adult woman, who was also engaging in commercial sex at the hotel. The girl’s cell phone was searched, and HSI located numerous conversations between her and the defendant about commercial sex work. During these conversations, the defendant referred to the 14-year-old as “baby hoe.”
In his plea, Camp admitted that he communicated with an adult female about having the 14-year-old engage in commercial sex acts. Specifically, Camp admitted that he and the adult female agreed to obtain and maintain the minor, who they knew was under 18 years of age, for the minor to engage in commercial sex acts. To achieve their goal, Camp and the adult female obtained hotel rooms for the minor and arranged for her to travel to San Diego, where the sex acts were slated to occur.
To that end, on or about November 15, 2020, Camp and the adult female arranged for the minor to travel by bus from the Los Angeles area to San Diego for the minor to engage in commercial sex acts. The defendant then posted commercial sex advertisements for the minor. The minor traveled to San Diego and engaged in commercial sex acts and provide the proceeds of these acts to the defendant.
“Sex trafficking is a reprehensible crime that has traumatic consequences for children, including long-lasting physical and psychological harm,” said Acting U.S. Attorney Andrew Haden. “We will do everything we can to seek justice for trafficking victims.”
“HSI is committed to aggressively investigating the heinous criminals that knowingly and willingly exploit children and victims,” said Chad Plantz, special agent in charge for HSI San Diego. “In addition to investigating and arresting these predators, HSI utilizes a victim-centered approach to ensure the physical and mental well-being of the victims that are impacted by these crimes.”
This case is being prosecuted by Assistant U.S. Attorneys Andrew Sherwood and Katherine McGrath.
DEFENDANTS Case Number 22cr748-CAB
Daylan Lamont Camp Age: 28 Pasadena, CA
SUMMARY OF CHARGES
Conspiracy to Engage in Sex Trafficking of Children – Title 18, U.S.C., Section 1594(c)
Maximum penalty: Life in prison and $250,000 fine
AGENCY
Homeland Security Investigations
San Diego Human Trafficking Task Force
This case is the result of the ongoing efforts of the Violent Crime and Human Trafficking (VCHT) Section. Formed in 2019, the VCHT is tasked with leading collaborations between federal and local law enforcement in the investigation and prosecution of cases involving violent crimes, firearms and gang cases; sex trafficking and child exploitation; civil rights, and labor trafficking. The VCHT Section oversees the Southern District of California Coordinators for Project Safe Neighborhoods, Human Trafficking, and Project Safe Childhood. The VCHT Section also provides federal prosecutors to the downtown San Diego Violent Crimes Task Force-Gang Group, the North County Gang Task Force, and the East County Gang Task Force.
Teacher’s Aide and Youth Hockey Coach Sentenced to More Than 15 Years for Distributing Sexually Explicit Images of ChildrenRead the Press Release
NEWS RELEASE SUMMARY – September 19, 2023
SAN DIEGO – Daniel Zachary Dasko of Carlsbad, a former teacher’s aide and youth hockey coach, was sentenced in federal court today to 188 months in prison for sending sexually explicit images of children to others online.
Dasko, who is out on bond, was ordered to report to prison on October 3. Dasko pleaded guilty on April 11, 2023, to one count of Distribution of Images of Minors Engaged in Sexually Explicit Conduct.
Dasko’s distribution of images and videos of children being sexually abused was discovered during the course of another investigation into similar activity. In July 2021, the Philadelphia Division of the FBI received a cyber tip from the National Center for Missing and Exploited Children regarding a man uploading child pornography. The subject was identified as a teacher in the Philadelphia area.
FBI Philadelphia executed a search warrant on the Philadelphia man’s residence. A review of his iPhone revealed numerous conversations regarding child pornography using a social media application that allowed the user to produce and trade images created by baiting minor victims to send nude photos or videos, or to go live online and be screen-recorded. The Philadelphia subject and other coconspirators would first pose as females on social media sites in order to chat with the victims, and then transfer their communications to a closed social media application that allowed the exchange of these nude photos and videos.
During this investigation, FBI agents determined that Dasko communicated with the Philadelphia man and his other co-conspirators under the name “Mr. Pickles.” From October 3, 2020, to October 3, 2021, Dasko exchanged over 3,671 messages with the Philadelphia man, including numerous images and videos depicting children being sexually abused.
The vast majority of these messages were conversations about sexually exploiting children Dasko and his co-conspirators knew or met online. The Philadelphia man and Dasko discussed at length and in graphic, disturbing detail, their attraction to young boys and their attempts to catfish them. Catfishing – one of the most common internet scams targeting young people - happens when a person poses as someone else in an online relationship.
Dasko even went so far as to forward social media contact information of children that he knew to his co-conspirators, so the children could be catfished online. This scheme achieved results. For example, Dasko distributed a video of a 13-year-old boy masturbating. This victim had been catfished by one of Dasko’s co-conspirators.
“This defendant is a sexual predator who used his position as a teacher and coach to inform his sexual interests and to target kids for online abuse,” said Acting U.S. Attorney Andrew Haden. “His job was to educate and protect children. Instead, he exploited them. We will do everything in our power protect children and hold offenders accountable.”
“Crimes involving sexually exploiting children are especially disgusting and disturbing,” said FBI San Diego Special Agent in Charge Stacey Moy. “I'm proud of the hard work conducted by our agents and law enforcement partners to bring these criminals to justice for their abhorrent behavior.”
This case is being prosecuted by Assistant U.S. Attorneys Mandy Griffith and Andrew Sherwood.
DEFENDANTS Case Number 22cr1715-LL
Daniel Dasko Age: 32 Carlsbad, CA
SUMMARY OF CHARGES
Distribution of Images of Minors Engaged in Sexually Explicit Conduct – Title 18, U.S.C., Section 2252(a)(2).
Maximum penalty: Twenty years in prison and $250,000 fine
AGENCY
Federal Bureau of Investigation
Son of Joaquin Guzman Loera aka “El Chapo” Arraigned on Federal Criminal Charges Following his Extradition from Mexico to the United States for International Drug TraffickingRead the Press Release
Ovidio Guzman Lopez, 33, of Culiacan, Mexico, was arraigned in federal court in Chicago today after his extradition from Mexico to the United States on Sept. 15. In January, Guzman Lopez was arrested in Mexico pursuant to a U.S. request for his provisional arrest with a view toward extradition.
Guzman Lopez, aka El Raton and Raton Nuevo, is charged in the Northern District of Illinois with five counts in a nine-count 12th superseding indictment alleging that from around May 2008 and continuing to at least Oct. 21, 2021, he engaged in a drug trafficking Continuing Criminal Enterprise (CCE), along with additional drug, money laundering, and firearms charges. Guzman Lopez is charged with conspiring to distribute cocaine, heroin, methamphetamine, and marijuana from Mexico and elsewhere for importation into the United States.
According to court documents, the charges stem from a decades-long, collaborative, multi-district effort between the Criminal Division’s Narcotic and Dangerous Drug Section (NDDS), based in Washington, D.C., the Northern District of Illinois, the Southern District of California, and their law enforcement partners.
Under the terms of the U.S.-Mexico extradition treaty, the United States had up to 60 days to present a fully supported request, one in compliance with the terms of the treaty. The United States submitted that request in February 2023. A Mexican court reviewed the U.S. request and last month favorably recommended his extradition. The Foreign Ministry reviewed the decision and similarly concluded that Guzman Lopez should be extradited to the United States. Guzman Lopez was subsequently extradited to the United States on Sept. 15. He was arraigned on the charges earlier today before U.S. District Judge Sharon Johnson Coleman of the U.S. District Court for the Northern District of Illinois and pleaded not guilty. He waived his right to a detention hearing and was ordered to remain detained without bond.
Guzman Lopez is one of the sons of Joaquin Guzman Loera, aka El Chapo, who was convicted by a jury in the Eastern District of New York for his role as the leader of the Sinaloa Cartel. Following Guzman Loera’s arrest in January 2016 and extradition to the United States in January 2017, Guzman Lopez and his three brothers, Ivan Archivaldo Guzman Salazar, Jesus Alfredo Guzman Salazar, and Joaquin Guzman Lopez, aka “the Chapitos,” who are also charged in the indictment, allegedly assumed their father’s former role as leaders of the Sinaloa Cartel, along with Zambada Garcia and Damaso Lopez Nunez, aka Licenciado. The Chapitos subsequently amassed greater control over the Sinaloa Cartel by allegedly threatening and causing violence against Lopez Nunez, his family, and his associates and, as a result, became principal leaders and drug traffickers within the Sinaloa Cartel.
Guzman Lopez was also indicted in the Southern District of New York on charges of continuing criminal enterprise, fentanyl importation conspiracy, fentanyl distribution conspiracy, possession of machineguns and destructive devices, conspiracy to possess machineguns and destructive devices, and conspiracy to commit money laundering.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, Acting U.S. Attorney Morris Pasqual for the Northern District of Illinois, Acting U.S. Attorney Andrew R. Haden for the Southern District of California, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, Executive Associate Director Katrina W. Berger of Homeland Security Investigations (HSI), and U.S. Drug Enforcement Administration (DEA) Administrator Anne Milgram made the announcement.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Forces (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state, and local law enforcement agencies.
The FBI Washington, San Diego, and El Paso Field Offices, HSI Nogales Office, DEA’s Chicago and San Diego Divisions, and IRS Criminal Investigation’s Chicago Office investigated the case.
The Justice Department’s Office of International Affairs handled the extradition, in collaboration with the U.S. Marshals Service. The Office of Enforcement Operations also provided significant assistance in the case.
The Justice Department thanks the Government of Mexico, including the Mexican Foreign Ministry and the Mexican Attorney General’s Office. Earlier today, U.S. Attorney General Merrick B. Garland spoke by phone with Mexico’s Attorney General Alejandro Gertz Manero to express his gratitude to Attorney General Gertz and the Government of Mexico for successfully extraditing Guzman Lopez.
Trial Attorney Kirk Handrich of NDDS, Assistant U.S. Attorneys Andrew Erskine and Erika Csicsila for the Northern District of Illinois, and Assistant U.S. Attorney Matthew Sutton for the Southern District of California are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Chief Engineer Sentenced to More Than a Year in Prison for Obstruction of Justice and Oil Dumping OffensesRead the Press Release
Chief engineer Denys Korotkiy of the vessel Donald was sentenced on Sept. 15 to serve twelve months and a day in prison after being convicted of conspiracy to obstruct justice, obstruction of justice and failure to maintain an accurate oil record book. U.S. District Court Judge Todd W. Robinson for the Southern District of California sentenced Korotkiy.
Trial evidence showed that oily bilge water – typically containing oil contamination from cleaning and operating a vessel’s machinery – was illegally dumped from the Donald, without being legally recorded, directly into the ocean through the vessel’s sewage tank and not properly processed through required pollution prevention equipment. Korotkiy made false and fictitious entries in the oil record book claiming oily bilge had been transferred from the engine room bilge wells to the bilge holding tank. He also conspired with others to obstruct the U.S. Coast Guard from inspecting and investigating the mishandling of oily bilge water on the Donald.
Vessel operating company Interunity Management (Deutschland) GMBH previously pleaded guilty for maintaining false and incomplete records relating to the discharge of oily bilge water and was ordered to pay a total of $1.25 million, including more than $312,000 to benefit marine and coastal natural resources in or near the Tijuana River National Estuarine Research Reserve.
Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division and Acting U.S. Attorney Andrew R. Haden for the Southern District of California made the announcement.
The U.S. Coast Guard Sector San Diego and the U.S. Coast Guard Investigative Service investigated the case.
Senior Trial Attorney Stephen Da Ponte of the Environment and Natural Resources Division's Environmental Crimes Section and Assistant U.S. Attorney Melanie K. Pierson for the Southern District of California are prosecuting the case.
Suspected Leader of Significant Human Smuggling Organization Extradited to San DiegoRead the Press Release
NEWS RELEASE SUMMARY – September 12, 2023
SAN DIEGO – Luis Antonio Mendez-Brahan of Tijuana appeared in federal court today following his extradition from Mexico to face charges stemming from his alleged role as the leader of a prolific human-smuggling organization with three of his children.
Mendez-Brahan was indicted by a federal grand jury in 2019 on one count of conspiring to bring unlawful aliens into the United States, transport unlawful aliens within the United States, and conduct financial transactions with the proceeds of specified unlawful activities. Mendez Brahan was also charged with five counts of bringing aliens into the United States for financial gain.
Three of Mendez-Brahan’s children - Christopher Mendez, Wendy Monserrath Mendez, and Nancy Jacqueline Suarez - already admitted their involvement with their father in the human smuggling conspiracy and were sentenced in 2021.
According to the indictment, Mendez-Brahan was the leader of a smuggling organization for almost a decade and was responsible for smuggling hundreds of undocumented migrants into the United States. The Mendez-Brahan organization allegedly operated in an area east of the Tecate Port of Entry and used an ever-changing cadre of spotters, guides, and drivers to facilitate the smuggling organization’s criminal activities. The indictment alleges that Mendez-Brahan charged between $6,000 and $8,000 for each migrant he arranged to be smuggled into the United States.
According to the indictment, Mendez-Brahan used money service businesses such as Western Union and Money Gram to move money from the U.S. to Mexico. Border Patrol investigators tracked financial transactions conducted by Mendez-Brahan’s children in the United States to money service businesses located in Tijuana and ultimately, to Mendez-Brahan himself.
This case is the result of ongoing efforts by the United States Border Patrol – San Diego Sector, with support from Joint Task Force Alpha (“JTFA”), to dismantle active transnational criminal organizations involved in human smuggling along the U.S.–Mexico border in the Southern District of California. JTFA was created to investigate and prosecute precisely these types of international networks alleged to be responsible for dangerous and prolific human smuggling activities that exploit and victimize migrants.
This case is being prosecuted by Assistant U.S. Attorneys Victor P. White and David Fawcett. The Justice Department’s Office of International Affairs worked with the Mexican Attorney General’s Office to secure the arrest and extradition of Mendez-Brahan.
DEFENDANT Case Number 19cr1570-JLS
Luis Antonio Mendez-Brahan Age: 55 Tijuana, Baja California, Mexico
Christopher Mendez Age: 28 Wasco, California
Wendy Monserrath Mendez Age: 24 Wasco, California
Nancy Jacqueline Suarez Age: 31 Madera, California
SUMMARY OF CHARGES
Count 1 (all defendants): Conspiracy to Bring in Certain Aliens for Financial Gain, to Transport Certain Aliens, and to Conduct Financial Transactions with Proceeds of Specified Unlawful Activity; and Aiding and Abetting – Title 18, U.S.C., §§ 371 and 2. Maximum penalty: Five years in prison
Counts 2–6 (Luis Antonio Mendez-Brahan): Bringing in Certain Aliens for Financial Gain; and Aiding and Abetting – Title 8, U.S.C., § 1324(a)(2)(B)(ii) and Title 18, U.S.C., § 2.Minimum Penalty: Three years in prison (per count) and Five years if convicted of three counts
Maximum penalty: Ten years in prison
AGENCY
United States Border Patrol San Diego Sector/El Cajon Station Intelligence Team
United States Border Patrol BORTAC – Special Operations Division
Customs and Border Protection – Mexico
Department of Justice’s Office of International Affairs
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
The U.S. Attorney’s Office for the Southern District of California is part of Joint Task Force Alpha (JTFA), which was established by Attorney General Merrick B. Garland in June 2021 to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security (DHS), to enhance U.S. enforcement efforts against the most prolific and dangerous human smuggling and trafficking groups operating in Mexico and the Northern Triangle countries of Guatemala, El Salvador, and Honduras. The Task Force focuses on disrupting and dismantling smuggling and trafficking networks that abuse, exploit, or endanger migrants, pose national security threats, and are involved in organized crime. JTFA consists of federal prosecutors and attorneys from U.S. Attorney’s Offices along the Southwest Border (District of Arizona, Southern District of California, Southern District of Texas, and Western District of Texas), from the Criminal Division and the Civil Rights Division, along with law enforcement agents and analysts from DHS’s Immigration and Customs Enforcement, Customs and Border Protection, and Border Patrol. The FBI and the Drug Enforcement Administration are also part of the Task Force.
Multiple Foreign Nationals Charged in Connection with Trickbot Malware and Conti Ransomware ConspiraciesRead the Press Release
WASHINGTON - Three indictments in three different federal jurisdictions have been unsealed charging multiple Russian cybercrime actors involved in the Trickbot malware and Conti ransomware schemes.
According to court documents and public reporting, Trickbot, which was taken down in 2022, was a suite of malware tools designed to steal money and facilitate the installation of ransomware. Hospitals, schools, and businesses were among the millions of Trickbot victims who suffered tens of millions of dollars in losses. While active, Trickbot malware, which acted as an initial intrusion vector into victim computer systems, was used to support various ransomware variants, including Conti. Conti was a ransomware variant used to attack more than 900 victims worldwide, including victims in approximately 47 states, the District of Columbia, Puerto Rico, and approximately 31 foreign countries. According to the FBI, in 2021, Conti ransomware was used to attack more critical infrastructure victims than any other ransomware variant.
“The Justice Department has taken action against individuals we allege developed and deployed a dangerous malware scheme used in cyberattacks on American school districts, local governments, and financial institutions,” said Attorney General Merrick B. Garland. “Separately, we have also taken action against individuals we allege are behind one of the most prolific ransomware variants used in cyberattacks across the United States, including attacks on local police departments and emergency medical services. These actions should serve as a warning to cybercriminals who target America’s critical infrastructure that they cannot hide from the United States Department of Justice.”
“Today’s announcement shows our ongoing commitment to bringing the most heinous cyber criminals to justice – those who have devoted themselves to inflicting harm on the American public, our hospitals, schools, and businesses,” said FBI Director Christopher Wray. “Cyber criminals know that we will use every lawful tool at our disposal to identify them, tirelessly pursue them, and disrupt their criminal activity. We, alongside our federal and international partners, will continue to impose costs through joint operations no matter where these criminals may attempt to hide.”
“The defendants charged in these three indictments across three different jurisdictions allegedly used their cyber knowledge and capabilities to victimize people and businesses around the world without regard for the damage they caused,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “These indictments should serve as a reminder that no matter a cybercriminal’s location, we will identify and pursue them by doing everything in our power to ensure they face the consequences of their actions.”
“Conti ransomware was used to exploit our financial systems and target hundreds of innocent victims,” said Special Agent in Charge William Mancino of the U.S. Secret Service’s Criminal Investigative Division. “The Secret Service will continue to work with our local, state, and federal law enforcement partners to investigate cybercriminals and bring offenders to justice.”
As detailed below, a federal grand jury in the Northern District of Ohio returned an indictment charging Maksim Galochkin, aka Bentley; Maksim Rudenskiy, aka Buza; Mikhail Mikhailovich Tsarev, aka Mango; Andrey Yuryevich Zhuykov, aka Defender; Dmitry Putilin, aka Grad and Staff; Sergey Loguntsov, aka Begemot and Zulas; Max Mikhaylov, aka Baget; Valentin Karyagin, aka Globus; and Maksim Khaliullin, aka Maxfax, Maxhax, and Kagas, all Russian nationals, with conspiring to use the Trickbot malware to steal money and personal and confidential information from unsuspecting victims, including businesses and financial institutions located in the United States and around the world, beginning in November 2015.
A federal grand jury in the Middle District of Tennessee returned an indictment charging Galochkin, Rudenskiy, Tsarev, and Zhuykov with conspiring to use Conti ransomware to attack businesses, nonprofits, and governments in the United States beginning in 2020 and continuing through June 2022.
A federal grand jury in the Southern District of California returned an indictment charging Galochkin in connection with the Conti ransomware attack on Scripps Health on May 1, 2021.
Northern District of Ohio
The indictment returned in the Northern District of Ohio charged all nine defendants for their alleged roles in developing, deploying, managing, and profiting from the malware known as Trickbot. Trickbot was a sophisticated, modular, multi-functional suite of malware tools which (a) infected victims’ computers with malware designed to capture victims’ online banking login credentials; (b) obtained and harvested other personal identification information, including credit cards, emails, passwords, dates of birth, social security numbers, and addresses; (c) infected other computers connected to the victim computer; (d) used the captured login credentials to fraudulently gain unauthorized access to victims’ online bank accounts at financial institutions; (e) stole funds from victims’ bank accounts and laundered those funds using U.S. and foreign beneficiary bank accounts provided and controlled by the defendants and co-conspirators; and (f) installed ransomware on victim computers.
“As alleged in the indictment, Trickbot infected millions of computers worldwide, including those used by hospitals, schools, and businesses,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “Today’s announcement demonstrates that these dangerous cybercriminals are not anonymous, as they once believed. The indictments unsealed today show the resolve of the international community to work together to bring cybercriminals to justice. We will continue to use all resources at our disposal to stop cybercrime.”
Each defendant is charged with one count of conspiracy to violate the Computer Fraud and Abuse Act, one count of wire fraud conspiracy, and one count of conspiracy to launder the proceeds of the scheme. The indictment also included an enhancement for falsely registering domains. If convicted, each defendant faces a maximum penalty of 62 years in prison.
Trickbot malware developers Alla Witte and Vladimir Dunaev were previously indicted and apprehended. Witte, a Latvian national pleaded guilty to conspiracy to commit computer fraud and was sentenced to 32 months in June 2023. Dunaev, a Russian national, currently is in custody and pending trial in Cleveland.
Middle District of Tennessee
The Middle District of Tennessee indictment charges that the individuals behind Conti ransomware, including Galochkin, Rudenskiy, Tsarev, and Zhuykov, conspired to use Conti to attack hundreds of victims. Conti’s victims included hospital systems, local governments, and foreign governments. Conti conspirators allegedly extorted funds from victims in the Middle District of Tennessee and encrypted the computer systems of a local sheriff’s department, a local police department, and local emergency medical services, among others. Ransom notes left on Conti victims’ computer systems typically boasted “if you don’t [know Conti] – just ‘google it.’”
“The conspirators who developed and deployed Conti ransomware victimized businesses, governments, and non-profits around the world, including a sheriff’s office and an emergency medical service in Tennessee,” said U.S. Attorney Henry C. Leventis for the Middle District of Tennessee. “We will continue to use the full power of this office to ensure that hackers can no longer hide behind their computer screens and to hold them accountable.”
Galochkin was a “crypter” for Conti, modifying the ransomware so that it would not be detected by anti-virus programs; Rudenskiy was a developer who supervised other Conti developers; Tsarev was a manager of other Conti conspirators; and Zhuykov was a systems administrator who managed users of Conti infrastructure, organized and paid for infrastructure and tools, and assisted in problem solving infrastructure-related issues.
Galochkin, Rudenskiy, Tsarev, and Zhuykov are each charged with one count of conspiracy to violate the Computer Fraud and Abuse Act and one count wire fraud conspiracy. If convicted, each defendant faces a maximum penalty of 25 years in prison.
Southern District of California
As alleged in the Southern District of California indictment, Galochkin caused the transmission of the Conti malware and impaired the medical examination, diagnosis, treatment, and care of one or more individuals.
Galochkin is charged with three counts of computer hacking. If convicted, he faces a maximum penalty of 20 years in prison.
“The indictment alleges a callous disregard for the medical care and the personal information of residents of the Southern District of California,” said Acting U.S. Attorney Andrew R. Haden for the Southern District of California. “This office is committed to protecting victims of cybercrime and holding perpetrators accountable.”
The FBI Cleveland Field Office is leading the investigation into Trickbot malware.
Assistant U.S. Attorneys Daniel Riedl and Duncan Brown for the Northern District of Ohio and Senior Counsel Candina Heath of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the Trickbot malware case.
The FBI San Diego, Memphis, and El Paso Field Offices, with U.S. Secret Service, are leading the investigation into Conti ransomware. The U.S. Attorney’s Office for the Western District of Texas provided significant assistance.
Assistant U.S. Attorney Taylor J. Phillips for the Middle District of Tennessee, Assistant U.S. Attorneys Jonathan Shapiro and Kareem Salem for the Southern District of California, and Trial Attorney Sonia V. Jimenez and Senior Counsel Ryan K.J. Dickey of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the Conti ransomware cases.
The Justice Department’s National Security Division provided significant assistance in the Conti ransomware and Trickbot malware investigations.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Northern District of Ohio indictment
Middle District of Tennessee indictment
Southern District of California indictment
Multiple Foreign Nationals Charged in Connection with Trickbot Malware and Conti Ransomware ConspiraciesRead the Press Release
Three indictments in three different federal jurisdictions have been unsealed charging multiple Russian cybercrime actors involved in the Trickbot malware and Conti ransomware schemes.
According to court documents and public reporting, Trickbot, which was taken down in 2022, was a suite of malware tools designed to steal money and facilitate the installation of ransomware. Hospitals, schools, and businesses were among the millions of Trickbot victims who suffered tens of millions of dollars in losses. While active, Trickbot malware, which acted as an initial intrusion vector into victim computer systems, was used to support various ransomware variants, including Conti. Conti was a ransomware variant used to attack more than 900 victims worldwide, including victims in approximately 47 states, the District of Columbia, Puerto Rico, and approximately 31 foreign countries. According to the FBI, in 2021, Conti ransomware was used to attack more critical infrastructure victims than any other ransomware variant.
“The Justice Department has taken action against individuals we allege developed and deployed a dangerous malware scheme used in cyberattacks on American school districts, local governments, and financial institutions,” said Attorney General Merrick B. Garland. “Separately, we have also taken action against individuals we allege are behind one of the most prolific ransomware variants used in cyberattacks across the United States, including attacks on local police departments and emergency medical services. These actions should serve as a warning to cybercriminals who target America’s critical infrastructure that they cannot hide from the United States Department of Justice.”
“Today’s announcement shows our ongoing commitment to bringing the most heinous cyber criminals to justice – those who have devoted themselves to inflicting harm on the American public, our hospitals, schools, and businesses,” said FBI Director Christopher Wray. “Cyber criminals know that we will use every lawful tool at our disposal to identify them, tirelessly pursue them, and disrupt their criminal activity. We, alongside our federal and international partners, will continue to impose costs through joint operations no matter where these criminals may attempt to hide.”
“The defendants charged in these three indictments across three different jurisdictions allegedly used their cyber knowledge and capabilities to victimize people and businesses around the world without regard for the damage they caused,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “These indictments should serve as a reminder that no matter a cybercriminal’s location, we will identify and pursue them by doing everything in our power to ensure they face the consequences of their actions.”
“Conti ransomware was used to exploit our financial systems and target hundreds of innocent victims,” said Special Agent in Charge William Mancino of the U.S. Secret Service’s Criminal Investigative Division. “The Secret Service will continue to work with our local, state, and federal law enforcement partners to investigate cybercriminals and bring offenders to justice.”
As detailed below, a federal grand jury in the Northern District of Ohio returned an indictment charging Maksim Galochkin, aka Bentley; Maksim Rudenskiy, aka Buza; Mikhail Mikhailovich Tsarev, aka Mango; Andrey Yuryevich Zhuykov, aka Defender; Dmitry Putilin, aka Grad and Staff; Sergey Loguntsov, aka Begemot and Zulas; Max Mikhaylov, aka Baget; Valentin Karyagin, aka Globus; and Maksim Khaliullin, aka Maxfax, Maxhax, and Kagas, all Russian nationals, with conspiring to use the Trickbot malware to steal money and personal and confidential information from unsuspecting victims, including businesses and financial institutions located in the United States and around the world, beginning in November 2015.
A federal grand jury in the Middle District of Tennessee returned an indictment charging Galochkin, Rudenskiy, Tsarev, and Zhuykov with conspiring to use Conti ransomware to attack businesses, nonprofits, and governments in the United States beginning in 2020 and continuing through June 2022.
A federal grand jury in the Southern District of California returned an indictment charging Galochkin in connection with the Conti ransomware attack on Scripps Health on May 1, 2021.
Northern District of Ohio
The indictment returned in the Northern District of Ohio charged all nine defendants for their alleged roles in developing, deploying, managing, and profiting from the malware known as Trickbot. Trickbot was a sophisticated, modular, multi-functional suite of malware tools which (a) infected victims’ computers with malware designed to capture victims’ online banking login credentials; (b) obtained and harvested other personal identification information, including credit cards, emails, passwords, dates of birth, social security numbers, and addresses; (c) infected other computers connected to the victim computer; (d) used the captured login credentials to fraudulently gain unauthorized access to victims’ online bank accounts at financial institutions; (e) stole funds from victims’ bank accounts and laundered those funds using U.S. and foreign beneficiary bank accounts provided and controlled by the defendants and co-conspirators; and (f) installed ransomware on victim computers.
“As alleged in the indictment, Trickbot infected millions of computers worldwide, including those used by hospitals, schools, and businesses,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “Today’s announcement demonstrates that these dangerous cybercriminals are not anonymous, as they once believed. The indictments unsealed today show the resolve of the international community to work together to bring cybercriminals to justice. We will continue to use all resources at our disposal to stop cybercrime.”
Each defendant is charged with one count of conspiracy to violate the Computer Fraud and Abuse Act, one count of wire fraud conspiracy, and one count of conspiracy to launder the proceeds of the scheme. The indictment also included an enhancement for falsely registering domains. If convicted, each defendant faces a maximum penalty of 62 years in prison.
Trickbot malware developers Alla Witte and Vladimir Dunaev were previously indicted and apprehended. Witte, a Latvian national pleaded guilty to conspiracy to commit computer fraud and was sentenced to 32 months in June 2023. Dunaev, a Russian national, currently is in custody and pending trial in Cleveland.
Middle District of Tennessee
The Middle District of Tennessee indictment charges that the individuals behind Conti ransomware, including Galochkin, Rudenskiy, Tsarev, and Zhuykov, conspired to use Conti to attack hundreds of victims. Conti’s victims included hospital systems, local governments, and foreign governments. Conti conspirators allegedly extorted funds from victims in the Middle District of Tennessee and encrypted the computer systems of a local sheriff’s department, a local police department, and local emergency medical services, among others. Ransom notes left on Conti victims’ computer systems typically boasted “if you don’t [know Conti] – just ‘google it.’”
“The conspirators who developed and deployed Conti ransomware victimized businesses, governments, and non-profits around the world, including a sheriff’s office and an emergency medical service in Tennessee,” said U.S. Attorney Henry C. Leventis for the Middle District of Tennessee. “We will continue to use the full power of this office to ensure that hackers can no longer hide behind their computer screens and to hold them accountable.”
Galochkin was a “crypter” for Conti, modifying the ransomware so that it would not be detected by anti-virus programs; Rudenskiy was a developer who supervised other Conti developers; Tsarev was a manager of other Conti conspirators; and Zhuykov was a systems administrator who managed users of Conti infrastructure, organized and paid for infrastructure and tools, and assisted in problem solving infrastructure-related issues.
Galochkin, Rudenskiy, Tsarev, and Zhuykov are each charged with one count of conspiracy to violate the Computer Fraud and Abuse Act and one count wire fraud conspiracy. If convicted, each defendant faces a maximum penalty of 25 years in prison.
Southern District of California
As alleged in the Southern District of California indictment, Galochkin caused the transmission of the Conti malware and impaired the medical examination, diagnosis, treatment, and care of one or more individuals.
Galochkin is charged with three counts of computer hacking. If convicted, he faces a maximum penalty of 20 years in prison.
“The indictment alleges a callous disregard for the medical care and the personal information of residents of the Southern District of California,” said Acting U.S. Attorney Andrew R. Haden for the Southern District of California. “This office is committed to protecting victims of cybercrime and holding perpetrators accountable.”
The FBI Cleveland Field Office is leading the investigation into Trickbot malware.
Assistant U.S. Attorneys Daniel Riedl and Duncan Brown for the Northern District of Ohio and Senior Counsel Candina Heath of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the Trickbot malware case.
The FBI San Diego, Memphis, and El Paso Field Offices, with U.S. Secret Service, are leading the investigation into Conti ransomware. The U.S. Attorney’s Office for the Western District of Texas provided significant assistance.
Assistant U.S. Attorney Taylor J. Phillips for the Middle District of Tennessee, Assistant U.S. Attorneys Jonathan Shapiro and Kareem Salem for the Southern District of California, and Trial Attorney Sonia V. Jimenez and Senior Counsel Ryan K.J. Dickey of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the Conti ransomware cases.
The Justice Department’s National Security Division provided significant assistance in the Conti ransomware and Trickbot malware investigations.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Northern District of Ohio indictment Middle District of Tennessee indictment Southern District of California indictmentU.S. Postal Service Employee Charged with Assaulting a Supervisor at Postal Facility in Carmel Mountain RanchRead the Press Release
NEWS RELEASE SUMMARY – September 1, 2023
SAN DIEGO – Edwin Cuadrado, Jr., a United States Postal Service (USPS) employee, was arrested and charged in a federal criminal complaint with stabbing a supervisor on August 25 at a mail facility in Carmel Mountain Ranch.
At a hearing today in federal court, U.S. Magistrate Judge William V. Gallo ordered Cuadrado held without bond after the government argued he is a flight risk and danger to the community. A preliminary hearing is scheduled for September 12 at 9:30 before Judge Gallo.
The criminal complaint alleges that Cuadrado used a knife to stab a supervisor in the back of the head.
According to the criminal complaint, Cuadrado first engaged in a verbal and physical altercation with one of his USPS supervisors at a nearby gas station late in the afternoon on August 25. Shortly thereafter, Cuadrado drove his USPS vehicle into the main employee parking lot of the USPS mail processing and distribution facility located at 11251 Rancho Carmel Drive. While in the parking lot of that facility, three different supervisory USPS employees attempted to speak with Cuadrado regarding the recent altercation. Cuadrado responded by brandishing a knife and stabbing one of the supervisors before leaving the scene. Responding paramedics treated the wound to the back of the supervisor’s head before that supervisor was taken to a hospital for further treatment.
Cuadrado remained at large until he was arrested by investigators on the morning of August 30.
DEFENDANT Case Number 23-MJ-3140
Edwin Cuadrado Jr. Age: 37 San Diego, CA
SUMMARY OF CHARGES
8 U.S.C. § 111(a)(1) – Assault on a Federal Employee or Officer
Maximum penalty: Five years in prison; $250,000 fine.
8 U.S.C. § 111(a)(1) and (b) – Assault on a Federal Employee or Officer Inflicting Bodily Injury
Maximum penalty: Twenty years in prison; $250,000 fine.
AGENCY
United States Postal Inspection Service
San Diego 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.
Sea Cucumber Smugglers Plead Guilty to Illegal Trafficking in WildlifeRead the Press Release
NEWS RELEASE SUMMARY – August 30, 2023
SAN DIEGO – Zunyu Zhao (also known as Kathy Zhao) and Xionwei Xiao (also known as Luis Xiao) pleaded guilty in federal court this week to a two-count indictment charging them with conspiracy and illegal importation of sea cucumbers.
According to the indictment and plea agreement, starting on May 9, 2017, and through February 10, 2019, Zhao and Xiao conspired to illegally import Isostichopus Fuscus sea cucumbers, a species protected under Appendix III of the Convention on International Trade in Endangered Species, without the appropriate permits and documentation.
In May 2017, Zhao was stopped at the Calexico Port of Entry, attempting to smuggle 11.50 kg of Isostichopus Fuscus sea cucumbers. In February 2019, Zhao was stopped once again at the Calexico Port of Entry with 2 kg of undeclared Isostichopus Fuscus sea cucumbers. Between 2017 and 2019, Zhao and Xiao messaged each other with texts and images of other transactions in their illegal Isostichopus Fuscus sea cucumber importation conspiracy, as Zhao confirmed for Xiao each shipment that she smuggled into the United States.
On May 23, 2023, a Grand Jury sitting in San Diego issued a sealed indictment against both Zhao and Xiao. On June 9, 2023, Xiao was arrested at the U.S. border, and Zhao was arrested four days later.
The parties agreed that the fair market value of Isostichopus Fuscus sea cucumbers is $435/kg, and the total value of the sea cucumbers trafficked during the conspiracy was $10,222.50. The defendants also agreed to pay restitution to the Procuraduria Federal de Proteccion al Ambiente, the Mexican governmental entity charged with protection of the environment.
Acting United States Attorney Andrew R. Haden stated, “This office is committed to upholding the twin pillars of marine biodiversity and conservation. Criminals considering poaching protected species should be aware that this office will diligently investigate, thoroughly prosecute, and seek restitution no matter the species.”
United States Fish and Wildlife Service Special-Agent-in-Charge Manisa Kung commented, “One of the highest priorities of the U.S. Fish and Wildlife Service Office of Law Enforcement is to investigate individuals involved in the unlawful commercial trafficking and smuggling of wildlife here and around the world.”
Xiao is scheduled to be sentenced on September 29, 2023, at 10:30 a.m. before U.S. District Judge Todd W. Robinson. Zhao is scheduled to be sentenced on November 11, 2023, at 9:30 a.m., also before Judge Robinson.
This case is being prosecuted by Assistant U.S. Attorneys Carl Brooker and Melanie Pierson.
DEFENDANTS Case Number 23-cr-00893-TWR
Zunyu Zhao (also known as Kathy Zhao) Age: 51 Calexico, CA
Xionwei Xiao (also known as Luis Xiao) Age: 52 Mexicali, MX
SUMMARY OF CHARGES
Count 1: Conspiracy – Title 18, U.S.C., Section 371
Count 2: Importation Contrary to Law – Title 18, U.S.C., Section 545
Count 1: Maximum penalty: Five years in prison and $250,000 fine
Count 2: Maximum penalty: Twenty years in prison and $250,000 fine
AGENCY
U.S. Fish and Wildlife 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.
MS-13 and Mexican Mafia Leader Sentenced to More than 17 Years for an International Drug ConspiracyRead the Press Release
NEWS RELEASE SUMMARY – August 29, 2023
SAN DIEGO – Nelson Alexander Flores of Tijuana was sentenced in federal court to 210 months in prison for trafficking large quantities of methamphetamine into the United States from Mexico on behalf of MS-13 street gang and the Mexican Mafia prison gang.
According to information presented in court, between 2018 and May 2020, Flores coordinated with and supplied others with pound quantities of methamphetamine from various sources in Mexico, which was then distributed throughout the United States.
Flores is also serving a five-year sentence in federal prison for his role in an MS-13 RICO case to which he pleaded guilty in the Southern District of Ohio in United States v. Aguilar-River, et al., case no. 2:17-CR-164.
The court ruled that Flores’ term of imprisonment in the Southern District of California case will run consecutive to the term of imprisonment in the Southern District of Ohio RICO case.
“This defendant was responsible for moving more than 100 pounds of methamphetamine and cocaine a month on behalf of violent international street and prison gangs,” said Acting U.S. Attorney Andrew R. Haden. “He imported these drugs into San Diego from Mexico, before they were sent to poison other communities throughout the United States. We were proud to partner with Joint Task Force Vulcan in this prosecution to fight back on behalf of the Southern District of California and our nation.”
“The MS-13, Mexican Mafia, and their criminal partners fuel their criminal activities through the illicit importation and sale of narcotics,” said Director of Joint Task Force Vulcan (JTFV) John Durham. “Mr. Flores played a key role in MS-13’s international drug operations by coordinating the importation and distribution of narcotics throughout the United States, and his conviction and sentence mark a significant disruption. JTFV and our law enforcement partners will continue to work relentlessly to protect our communities from the plague of transnational organized crime.”
Since its creation in August 2019, JTFV has successfully implemented a whole-of-government approach to combatting MS-13, including increasing coordination and collaboration with domestic and foreign law enforcement partners; designating priority MS-13 programs, cliques and leaders, who have the most impact on the United States, for targeted prosecutions; and coordinating significant MS-13 indictments, including the first use of national security charges against MS-13 leaders. JTFV has been comprised of members from U.S. Attorney’s Offices across the country, including this Office; the Eastern District of New York; the Eastern District of Texas; the District of New Jersey; the Northern District of Ohio; the District of Utah; the District of Massachusetts; the Southern District of Florida; the District of Alaska; the Southern District of California; the District of Nevada; the Eastern District of Virginia; and the District of Columbia, as well as the Department of Justice’s National Security Division and the Criminal Division. All Department of Justice law enforcement agencies are involved in the effort, including the FBI; DEA; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; and the U.S. Bureau of Prisons. In addition, HSI plays a critical role in JTFV.
DEFENDANT Case Number 22cr908
Nelson Alexander Flores Age: 52 Tijuana, Mexico
Aka “Mula,” aka “El 40,” aka “Cuarenta,” aka “Juan,” aka “Juanita”
SUMMARY OF CHARGES
International Drug Conspiracy – Title 21, United States Code, Sections 959, 960 & 963.
Maximum penalty: Life in prison and $10 million fine.
AGENCY
Homeland Security Investigations
Drug Enforcement Administration
Federal Bureau of Investigation
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
Leader and Chief Financial Officer of Human Smuggling Transportation Cell Sentenced to PrisonRead the Press Release
SAN DIEGO – Lourdes Ortiz Castaneda was sentenced in federal court yesterday to 34 months in prison for her role as the chief financial officer of a vast alien-smuggling organization operating in Southern California for several years.
The organization’s leader, Gerardo Rigoberto Barojas-Saavedra, was previously sentenced to 71 months in custody for his running one of the most prolific smuggling operations in Southern California from 2019 through 2021. According to their plea agreements, Barojas, known as “El Jefe” (“The Boss”), admitted that he, along with Ortiz and others, smuggled more than one hundred undocumented migrants from Mexico into the United States, including some minors, through the southern border to Orange County and as far as the east coast. According to their plea agreements, Barojas and Ortiz charged migrants between $7,000 and $8,000 per person to be smuggled to Orange County, receiving the majority of smuggling fees in cash. According to their plea agreements, Barojas received approximately $216,925 in wire transfers and Ortiz received payments in cash, check, and wire transfers totaling approximately $480,465.
U.S. Border Patrol Agents assigned to the Boulevard Border Patrol Station led the investigation into the smuggling organization, resulting in the interdiction of approximately 150 alien smuggling events and the prosecution of three couriers, according to the complaint. The plea agreements reflect that the organization operated by renting vehicles and recruiting drivers to pick up illegal aliens along the Interstate 8 corridor in Imperial and San Diego counties, after the aliens had crossed illegally into the United States. Several of these smuggling events involved substantial risk to the migrants, including, for example, one event in which three were transported in an unsafe manner concealed within the trunk of a vehicle.
According to publicly filed documents, on or about November 9, 2020, the Anaheim Police Department arrested Barojas for allegedly kidnapping one of the minor migrants he smuggled into the United States and holding the minor at gunpoint. Officers found nine migrants, including the minor, in Barojas’ stash house, and seized four Glock handguns, one shotgun, two AR-15 rifles (including Barojas’ personal rifle bearing punisher logo), high-capacity magazines, a suitcase containing ammunition, hand-drawn maps depicting smuggling routes and locations to pick up aliens in the Southern District of California, electronic devices, a ledger, pay/owe sheets, and over $20,000 in cash. Barojas pleaded guilty to assault with a semi-automatic firearm in violation of California Penal Code 245(b) and Human Trafficking for Forced Labor in violation of California Penal Code 236.1(a) in 2021.
The plea agreements revealed that while in custody on the state charges from 2020 to 2021, Barojas continued running the Barojas alien smuggling organization from custody with the help of Ortiz and others. Ortiz handled day-to-day operations during this time, and also continued managing the financial operations of the smuggling organization until her arrest in September 2021.
The sentences, handed down by U.S. District Judge Barry Ted Moskowitz, included enhanced penalties for the substantial risk that the Barojas organization’s drivers caused; the illegal transportation of an unaccompanied minor; the possession of firearms in furtherance of the offense; the transportation of more than 100 aliens; and their aggravated roles within the transportation cell’s alien smuggling activities.
“We cannot emphasize enough that human smugglers only care about money and have very little regard for the safety and well-being of their customers,” said Acting U.S. Attorney Andrew Haden. “I urge anyone considering this perilous journey: Please do not trust a smuggler with your life.”
This case is being prosecuted by Assistant U.S. Attorney Loren G. Rene.
DEFENDANTS Case Number 21-cr-02922-BTM
Gerardo Rigoberto Barojas-Saavedra Age: 35 Anaheim, CA
Lourdes Ortiz Castaneda Age: 28 Anaheim, CA
SUMMARY OF CHARGES
Conspiracy to Transport Aliens, in violation of 8 U.S.C. § 1324(a)(1)(A)(v)(I)
Maximum penalty: Ten years in prison and a $250,000 fine per count
AGENCY
U.S. Border Patrol
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The U.S. Attorney’s Office for the Southern District of California helps lead Joint Task Force Alpha (JTFA), which was established by Attorney General Merrick B. Garland in June 2021 to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security (DHS), to enhance U.S. enforcement efforts against the most prolific and dangerous human smuggling and trafficking groups operating in Mexico and the Northern Triangle countries of Guatemala, El Salvador, and Honduras. The Task Force focuses on disrupting and dismantling smuggling and trafficking networks that abuse, exploit, or endanger migrants, pose national security threats, and are involved in organized crime. JTFA consists of federal prosecutors and attorneys from U.S. Attorney’s Offices along the Southwest Border (District of Arizona, Southern District of California, Southern District of Texas, and Western District of Texas), from the Criminal Division and the Civil Rights Division, along with law enforcement agents and analysts from DHS’s Immigration and Customs Enforcement, Customs and Border Protection, and Border Patrol. The FBI and the Drug Enforcement Administration are also part of the Task Force.
Drug Dealer Sentenced to 210 Months in Fentanyl Overdose DeathRead the Press Release
SAN DIEGO— David Michael Busse of Temecula was sentenced in federal court today to 17 1/2 years in prison for supplying the fentanyl that led to the fatal overdose of 35-year-old Brook W. Jacoby on May 20, 2021. Two drug couriers for Busse - Roger Bionogers Santiago of Valley Center and Vanessa Lanae Lathan of Spring Valley - were also sentenced today to 78-months and 68-months, respectively, for their roles in delivering the deadly dose of fentanyl to the victim.
In imposing sentence on Busse, Judge Bashant emphasized that he clearly “knew the dangers of fentanyl” and given his drug dealing history, this outcome “was just a matter of time.”
According to the government’s sentencing papers, Jacoby was the father of a young daughter and had become engaged to be married five days before his death. He was a high-performing salesperson who was training for an upcoming triathlon. One of his siblings described him as a “beautiful and selfless soul” who had a “lingering positive impact on everyone.” He was memorialized in a June 2021 celebration of life. The video may be found at https://www.youtube.com/watch?v+ivSeUuQzS-0.
San Diego Police officers found Jacoby deceased at the kitchen table in his San Diego apartment. Next to him was suspected drug paraphernalia. Officers examined his cellular phone and found text messages between Busse and Jacoby related to the sale. Those messages revealed that the victim told Busse he had been “clean” for some months and had no experience with fentanyl when Busse sold him the drug Jacoby, who clearly had some trepidation about fentanyl, asked Busse whether he should only “do an extremely small amount…I will be OK?” Busse responded by asking if Jacoby had Narcan “just in case.”
The messages between Busse and Jacoby demonstrate that Busse understood the fentanyl he was selling was particularly potent. Busse sent Jacoby a screen shot of another conversation between Busse and another customer during which the customer told Busse, “Damn that shit was strong” and “that shit was crazy” and it “took my vision away for like five minutes….” Busse told Jacoby: “I’ve had people go out off [sic] smoking it….”
Through the investigation, law enforcement determined that Busse was advertising the fentanyl via the “Offer Up” app. As the prosecutor pointed out at sentencing, Busse has a lengthy drug-related criminal history dating back to 2009.
Through his plea agreement, Busse admitted to selling the fatal dose and participating in a fentanyl distribution conspiracy involving 40 grams or more of fentanyl. Lathan and Santiago, who were themselves fentanyl customers of Busse, each admitted that they transported and delivered fentanyl they obtained from Busse to the victim in exchange for additional fentanyl or other limited compensation.
"It is very clear that this defendant recognized the potential - if not inevitable - consequences of continuing to deal this deadly drug,” said Acting U.S. Attorney Andrew Haden. “Because of his callous actions, another life has met the tragic end that fentanyl brings, and a family has lost its father, fiancé, son and brother. We will continue to prosecute these cases in the hope of sparing another family this tragic consequence."
“This case reminds us that drug dealing is not a victimless crime,” said DEA Special Agent in Charge Shelly Howe. “Another family is suffering an unnecessary loss and DEA, along with our partners, will continue to find justice for these victims.”
This case is the result of ongoing efforts by the U.S. Attorney’s Office, the San Diego County District Attorney’s Office, and the Drug Enforcement Administration 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. Investigators from the DEA Overdose Response Team led the investigation into Jacoby’s death.
This case was prosecuted by Assistant U. S. Attorneys Larry Casper and Sean Van Demark.
DEFENDANTS Case Number 21-CR-2158-BAS
David Michael Busse Age: 33 Temecula, CA
Vanessa Lanae Lathan Age: 31 Spring Valley, CA
Roger Bionogers Santiago Age: 36 Valley Center, CA
SUMMARY OF CHARGES
Distribution of Fentanyl – Title 21, United States Code, Section 841(a)(1) and Title 18, United States Code, Section 2
Maximum penalty: 20 years’ imprisonment
AGENCIES
Drug Enforcement Administration
San Diego Police Department
Imperial Valley Doctor Admits Using Unapproved Cosmetic Drugs for YearsRead the Press Release
NEWS RELEASE SUMMARY – August 24, 2023
SAN DIEGO – Tien Tan Vo, a doctor practicing in Imperial Valley, has pleaded guilty to crimes related to his years-long use of foreign unapproved and misbranded cosmetic drugs.
Vo pleaded guilty to misdemeanor counts of receipt of misbranded drugs in interstate commerce and being an accessory after the fact to an accomplice, who smuggled the unapproved drugs into the United States from Mexico.
In his plea agreement, Vo admitted that none of the injectable botulinum toxin or lip fillers used by his clinics between November 2016 and October 2020 was approved for use in the United States. This specifically included a botulinum toxin product called “Xeomeen” and an injectable lip filler called Probcel—both products that have not been approved by the U.S. Food and Drug Administration.
Vo acknowledged that he received $100,767 in gross receipts for almost four years of cosmetic services performed with unapproved drugs and devices. As part of his plea agreement, he has agreed to forfeit that amount, and to pay a fine of $201,534. Vo also agreed to pay restitution to victims of his offense.
In his plea agreement, Vo admitted purchasing most of his unapproved drugs and devices from the operator of a “med spa” in Mexicali, Mexico, who smuggled them into the United States without declaring them.
“All members of our community should be able to trust that their doctor is acting in their best interest,” said Acting U.S. Attorney Andrew Haden. “Through this prosecution, we are protecting patients from unapproved and potentially unsafe drugs and will always seek to thwart those who would exploit patients for financial gain.”
“Injecting unapproved medicines poses a significant threat to public health and can have serious consequences for individuals,” said Chad Plantz, Special Agent in Charge for HSI San Diego. “Together, with our partnered agencies, we need to educate people of the dangers caused by using unauthorized botulinum toxin (the active ingredient in Botox®, Xeomin®, and similar products) and thwart those who smuggle and illegally use it for cosmetic procedures.”
“The FDA’s requirements help ensure that patients receive safe and effective medical treatments. Evading the FDA process and distributing unapproved drugs to U.S. consumers will not be tolerated,” said Special Agent in Charge Robert M. Iwanicki, FDA Office of Criminal Investigations, Los Angeles Field Office. “We will continue to investigate and hold accountable those who traffic in unapproved drugs.”
Sentencing is set for November 16, 2023, at 9:30 a.m. before U.S. Magistrate Judge Allison H. Goddard.
Potential victims related to this case may provide or request information by emailing [email protected].
DEFENDANT Case Number 23cr1700
Tien Tan Vo Age: 47 El Centro, CA
SUMMARY OF CHARGES
Accessory After the Fact to Entry of Goods by Means of False Statement – Title 18, U.S.C., Sections 542 and 3
Maximum penalty: One year in prison, fine of $100,000 or twice the pecuniary gain or loss
Receipt in Interstate Commerce of Misbranded Drugs and Delivery for Pay or Otherwise – Title 21, U.S.C., Sections 331(c) and 333(a)(1)
Maximum penalty: One year in prison, fine of $1,000 or twice the pecuniary gain or loss
AGENCIES
Homeland Security Investigations
U.S. Food and Drug Administration, Office of Criminal Investigations
Federal Bureau of Investigation
U.S. Department of Health and Human Services, Office of Inspector General
Ocean Vessel Operator Pleads Guilty, Agrees to Pay $2 Million for Marine Environmental CrimesRead the Press Release
Ocean vessel operating company Zeaborn Ship Management (Singapore) PTE. LTD. (Zeaborn) pleaded guilty to maintaining false and incomplete records relating to the discharge of oily bilge water and garbage on board the vessel Star Maia. In its plea, Zeaborn has agreed to pay a total monetary penalty of $2 million. The company’s Chief Engineer, Constancio Estuye, and Captain, Alexander Parreno, also pleaded guilty for their roles in the crimes.
According to court documents, Zeaborn and Estuye admitted that – at least four times between June and October 2022 – they dumped over 7,500 gallons of oily bilge water from the Star Maia into the ocean without first processing the oily bilge water through required pollution prevention equipment. They also admitted that these illegal discharges were falsely recorded in the oil record book as having been made using the vessel’s pollution prevention equipment when the equipment had not been used. Oily bilge water typically contains oil contamination from the operation and cleaning of machinery on the vessel.
In addition to the illegal discharges of oily bilge water, Zeaborn and Parreno admitted that on at least three or four occasions between June and August 2022, they had burned garbage – including paper, plastics and oily rags – in barrels on the Star Maia’s deck. The barrels were then thrown into the ocean. This garbage burning and barrel disposal was not recorded in the vessel’s garbage record book, as required by law.
“Illegally dumping oily waste and garbage at sea poses a serious threat to the health and viability of the marine environment,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “This prosecution demonstrates our commitment to ensuring that those who violate environmental laws are held accountable for their criminal conduct.”
“Unlawful oil discharges can cause significant harm to the marine environment,” said Acting U.S. Attorney Andrew Haden for the Southern District of California. “We will continue to safeguard our oceans by vigorous enforcement of environmental laws. Today’s case is a reflection of that commitment.”
“This prosecution highlights the Justice Department and the U.S. Coast Guard’s continued dedication in safeguarding our maritime environment against those that seek to deliberately harm our natural resources,” said Sector Commander Captain James W. Spitler of the U.S. Coast Guard’s Sector San Diego. “Illegal dumping of oil, falsification of oil record books and flagrant disregard for air emission requirements are egregious violations. These guilty pleas should serve as a reminder that the Coast Guard and our partners at the Justice Department will work tirelessly to hold accountable those that seek to deliberately harm the maritime environment.”
Zeaborn pleaded guilty in U.S. District Court in San Diego to two felony violations of the Act to Prevent Pollution from Ships (APPS). The plea agreement, subject to acceptance by the court, includes a $1.5 million fine and a $500,000 community service payment. The community service payment will go to the National Fish and Wildlife Foundation to fund projects to benefit marine and coastal natural resources located in or around the Tijuana River National Estuarine Research Reserve in Southern California. Zeaborn will also serve a four-year term of probation during which all containerships and conventional bulk carriers operated by the company and calling on U.S. ports will be required to implement a robust environmental compliance plan.
Estuye and Parreno each pleaded guilty to one felony violation of the APPS for failing to accurately maintain the oil and garbage record books for the Star Maia. Sentencing for defendants Zeaborn, Estuve and Parreno is set for Dec. 1.
The U.S. Coast Guard Sector San Diego and the U.S. Coast Guard Investigative Service are investigating the case. Senior Trial Attorney Stephen Da Ponte of the Justice Department’s Environmental Crimes Section and Assistant U.S. Attorney Melanie K. Pierson for the Southern District of California are prosecuting the case.
Note, this release has been updated to specify which types of Zeaborn vessels are subject to the four-year term of probation.
San Diego State University Basketball Stars Join with U.S. Attorney’s Office and City Attorney’s Office to Launch Fentanyl Awareness CampaignRead the Press Release
NEWS RELEASE SUMMARY—August 21, 2023
SAN DIEGO— The U.S. Attorney’s Office, San Diego City Attorney’s Office and the non-profit MESA (Mentoring and Empowering Student Athletes) Foundation today launched a social media campaign featuring all of the members of the 2023-2024 San Diego State University’s men’s basketball team – including several who played in the 2023 NCAA national championship game - to promote fentanyl awareness and prevention.
This unique partnership, believed to be the first of its kind between a Name/Image/Likeness (NIL) collective and the Department of Justice, features the student-athletes describing the dangers of fentanyl and the need to be aware of locations to obtain Narcan in the community. Narcan is a medicine that rapidly reverses the effects of opioids to prevent fatal overdoses. The release includes the hashtags #BlockFentanyl and #KnowAboutNarcan. The two social media PSAs can be found here:
https://www.youtube.com/playlist?list=PLGvHJHdPh24X9JHCAywDdqt-Osgrb6yiR
In the public service announcements, athletes look at the camera and say: “Fentanyl kills. Creates chaos. Ruins families. It doesn’t care about your race. It doesn’t care how you identify. It doesn’t care if you are addicted or just trying for the first time. Fentanyl kills. That’s 70,000 brothers, sisters, fathers, and mothers lost last year. That Adderall, Percocet, Xanax, ecstasy you are offered - it likely contains fentanyl. That cocaine you would just try - it likely contains fentanyl. We need to help each other. Know where Narcan is. Watch for friends making strange sounds while sleeping at parties or turning blue. Call for help if in doubt. Be a good teammate, and let’s save lives.”
The campaign - timed to highlight National Fentanyl Prevention and Awareness Day (August 21, 2023) - is being deployed over Instagram, X (formerly Twitter), Snapchat, LinkedIn, and YouTube by the student-athletes, the MESA Foundation, the Department of Justice, and other coalition members.
The U.S. Attorney’s Office and law enforcement partners have attacked the fentanyl crises through aggressive prosecutions at every level of the supply chain – from the Sinaloa Cartel leadership, to cross-border trafficking organizations, to money launderers, to street level dealers who are selling drugs that result in overdose deaths.
The “Block Fentanyl” campaign is just one aspect of the U.S. Attorney’s Office’s prevention and outreach strategy. For example, on August 10, 2023, prosecutors from the U.S. Attorney’s Office and the City Attorney’s Office gave a presentation at San Diego State University to resident advisors and student leaders on the topic “Know Fentanyl.” The presentation, attended by approximately 250 students, covered the dangers of counterfeit and adulterated pills and powder, recognizing the signs of an overdose, and how to properly deploy Narcan.
“We are committed to innovative approaches to protect and educate the youth of our community about the extreme danger of fentanyl,” said Acting U.S. Attorney Andrew R. Haden. “We are willing to do whatever it takes to save lives and spread the word that fentanyl is still claiming many lives, and every one of us can and must take action to prevent fatal overdoses. I’d like to thank the incredible SDSU student-athletes, who did not hesitate to answer our call for help. They have graciously used their celebrity and influence for the most important cause: Keeping fellow students from making a fatal mistake with fentanyl.”
“As the City’s Prosecutor and the mother of two teenagers, I am extremely proud to participate in a campaign that informs our youth about the risks associated with fentanyl, an extremely potent synthetic opioid. Unbeknownst to most, fentanyl is 50 times stronger than heroin and 100 times stronger than morphine. Its availability has so increased that it’s now the number one killer in the nation for those between the ages of 18-and-45. We must ensure the truth about fentanyl reaches susceptible children and young adults before the drug does,” said San Diego City Attorney Mara W. Elliott. “I would like to thank Deputy City Attorney Mark Robertson for his important work representing my Office on the Opioid Task Force and for assisting with the creation of these powerful commercials.”
The MESA Foundation, established in 2022 after the NCAA began allowing student-athletes to receive compensation for the use of their NIL, connects Aztec student-athletes with nonprofits in the San Diego community in a variety of different capacities. The student-athlete receives a stipend for partnering with the charity through their Name, Image and Likeness.
More information about the MESA Foundation, a non-profit 501(c)(3) organization, can be found here:
https://www.mesafoundationsd.org/.
Additional fentanyl prevention resources can be found at San Diego County’s Community & Parent Toolkits which are available in both English and Spanish: https://www.sdpdatf.org/community-parent-fentanyl-toolkit.
Both offices would like to thank Isabelle Sandmeyer, and her company Studio Isla, for donating her time and talent to the “Block Fentanyl” project.
Leader of International Steroids Distribution Scheme Sentenced to Eight Years in PrisonRead the Press Release
NEWS RELEASE SUMMARY – August 21, 2023
SAN DIEGO – James Charles Rivera of New York was sentenced in federal court today to 96 months in prison for leading a scheme to distribute steroids around the world and launder the substantial proceeds through cash and cryptocurrency.
According to admissions in his plea agreement, Rivera operated on the “dark web” with the moniker, “JuicePal.” He arranged and directed the distribution of steroids in nearly every state in the United States, as well as to Canada, Germany, Australia, and countries in the United Kingdom and the European Union from 2018 to 2021. He used encrypted communications and internet-access methods to avoid detection and took in millions of dollars in virtual currency and cash as proceeds from thousands of sales.
Rivera also worked with several co-conspirators in the United States, who were responsible for manufacturing steroids for him, shipping them to customers, receiving cash payments, and forwarding him proceeds. Rivera, a United States Citizen, ran this operation for years while living abroad.
“This defendant thought he could hide his international steroid distribution network and money laundering by operating on the dark web, but we have shined a bright light on his crimes,” said Acting U.S. Attorney Andrew Haden.
“This lengthy sentence is the result of an investigation into a complex global illicit counterfeit steroid production and distribution network that spanned several years, which concluded with the dismantlement of both the known U.S. and British networks of operation,” said Chad Plantz, Special Agent in Charge for HSI San Diego. “The egregious criminal conspiracy attempted to utilize encrypted communications, cryptocurrencies, and an elaborate network of co-conspirators to obfuscate operational activity in the U.S. and abroad. I thank the several federal partners that came together to support HSI, most notably U.S. Postal Inspection Service and the Food and Drug Administration to dismantle these operations.”
“The U.S. Postal Inspection Service is committed to identifying, investigating and disrupting these criminal organizations to protect our communities from the distribution of these dangerous drugs through our postal system,” said Carroll Harris, Postal Inspector in Charge of the Los Angeles Division.
This case was prosecuted by Assistant U. S. Attorney Owen Roth.
DEFENDANTS Case Number 21-CR-3382 AJB
James Charles Rivera Age: 32 New York
SUMMARY OF CHARGES
Drug Trafficking Conspiracy – Title 21, U.S.C., Sections 841(a)(1), 841(b)(1)(E), and 846
Maximum Penalties: Ten years in prison, and a $500,000 fine
Money Laundering Conspiracy – Title 18, U.S.C., Section 1956(h)
Maximum Penalties: Twenty years in prison, and the greater of $500,000 or twice the amount of loss
AGENCIES
Homeland Security Investigations
U.S. Postal Inspection Service
U.S. Food and Drug Administration
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state, and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle, and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
San Diego Man Sentenced to 30 Years in Prison for Sexual Exploitation of a ChildRead the Press Release
NEWS RELEASE SUMMARY – August 18, 2023
SAN DIEGO – Pedro Escamilla Del Rosario of San Diego was sentenced in federal court today to 360 months in prison for sexually abusing a drugged eight-year-old girl while another person recorded the assault.
The defendant pleaded guilty on March 27, 2023, to one count of Sexual Exploitation of a Minor.
According to the publicly filed documents in the case, in March 2022, Homeland Security Investigations (HSI) received reports from the National Center for Missing and Exploited Children (NCMEC) regarding the user of a Google, LLC account who had been uploading digital files of visual depictions of minors engaged in sexually explicit conduct.
From March 2022 through June 2022, HSI agents received 41 separate reports regarding the Google account, and it involved approximately 6,700 digital files. Based on this information, HSI obtained a search warrant for the Google account and discovered thousands of visual depictions of minors engaged in sexually explicit conduct. This account belonged to Del Rosario. Among the visual depictions located in Del Rosario’s account, HSI agents discovered two videos which were produced in March 2018, one of which forms the basis of this federal conviction.
Del Rosario was subsequently arrested and confessed to his involvement in the creation of the videos, including sexually molesting the minor-victim when he knew she had been over-medicated. Del Rosario also admitted to possessing the other visual depictions of minors engaged in sexually explicit conduct.
At today’s sentencing hearing, after the court heard statements by the minor-victim and the minor-victim’s foster parent, Assistant U.S. Attorney Andrew Sherwood argued for a substantial custodial sentence because the crimes committed by Del Rosario had caused irreparable harm to the minor-victim and had been perpetrated and recorded purely for Del Rosario’s sexual gratification.
In imposing the 360-month sentence, U.S. District Judge Todd W. Robinson explained that the “statutory maximum for the offense of conviction, is necessary and sufficient, but not greater than necessary” to accomplish the sentencing objectives, including the need to protect the community from future crimes by Del Rosario.
“This defendant’s heinous actions have caused irreparable harm to the victim,” said Acting U.S. Attorney Andrew Haden. “The children in our community are often the most vulnerable members of our society. There are few crimes that are more vicious and outrageous than crimes involving their sexual exploitation.” Haden thanked the prosecution team and investigating agencies for their excellent work on this case.
“The sexual abuse and exploitation of children victims rob their emotional and psychological development aside from stealing their innocence,” said Chad Plantz, special agent in charge for HSI San Diego. “The defendants’ deviant and perverse behavior will not be tolerated by HSI. This kind of abuse strikes at the very foundation of our society and we all must come together to combat this unspeakable crime that plagues the public welfare; our children deserve better.”
DEFENDANTS Case Number 22cr2752-TWR
Pedro Escamilla Del Rosario Age: 44 San Diego, CA
SUMMARY OF CHARGES
Sexual Exploitation of a Minor – Title 18, U.S.C., Section 2251(a) and (e)
Maximum penalty: Thirty years in prison and $250,000 fine; mandatory minimum 15 years in prison
AGENCY
Homeland Security Investigations
San Diego Man Charged with $4 Million Covid-Related Loan Fraud and Money LaunderingRead the Press Release
NEWS RELEASE SUMMARY – August 11, 2023
SAN DIEGO – Denny Bhakta of San Diego was arraigned in federal court today on additional charges that he fraudulently obtained $4 million in Paycheck Protection Program loans through several entities he managed and controlled. Bhakta was first indicted in December 2021 for defrauding investors in his companies; a grand jury returned a superseding indictment this week that includes additional charges.
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted to provide emergency financial assistance to Americans suffering economic harm as a result of the COVID-19 pandemic. The CARES Act established the Paycheck Protection Program known as PPP, under which banks would make forgivable loans to small businesses, so that those businesses could keep their doors open and employees on their payroll. If a business used the money for payroll and other eligible business expenses, the loans would be forgiven, and the federal government’s Small Business Administration would pay back the bank.
According to court documents, Bhakta applied for and received at least 18 PPP loans on behalf of four entities he managed and controlled, including Fusion Hotel Management, LLC; Fusion Hospitality Corporation; True Vine Hospitality LLC; and Manu Bhakta Foundation. According to charging documents, his loan applications contained lies and false promises. He misrepresented the entities’ number of employees and average monthly payroll expense, his ownership of other businesses, and whether the PPP loan funds would be used for payroll and other eligible expenses. Bhakta did not use the money as promised; instead, he used the funds to make credit card payments, pay large expenses at casinos, and make cash withdrawals, according to the superseding indictment. He also allegedly used some of the money to perpetuate an investment fraud scheme.
Bhakta was originally charged with securities fraud and money laundering for running an investment fraud scheme that took in at least $28 million from investors since 2016. According to court documents and statements made in court, Bhakta solicited investments in his companies, Fusion Hotel Management, LLC and Fusion Hospitality Corporation. Bhakta falsely told investors that Fusion routinely acquired discounted blocks of hotel rooms from Hilton, which Fusion then sold to United Airlines at a higher price for a significant profit. Instead of buying blocks of hotel rooms with investors’ funds, however, Bhakta used the money for personal expenses and to make payments to other investors.
“The Paycheck Protection Program served as a lifeline to many businesses desperately trying to stay afloat during the pandemic,” said Acting U.S. Attorney Andrew R. Haden. “Anyone who abused this critical program will be held accountable.”
DEFENDANT Case Number 21-CR-3352-JLS
Denny Bhakta Age: 41 San Diego, CA
SUMMARY OF CHARGES
Securities Fraud – Title 15, U.S.C., Sections 78j(b), 78ff, and Title 17, C.F.R., Section 240.10b-5
Bank Fraud – Tile 18, U.S.C. Section 1344(2)
Money Laundering – Title 18, U.S.C., Section 1957
Maximum penalty: Thirty years in prison
AGENCY
Federal Bureau of Investigation
Securities and Exchange Commission
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Former U.S. Postal Service Mail Carrier Sentenced for Stealing Mail from Customers in SanteeRead the Press Release
NEWS RELEASE SUMMARY – August 11, 2023
SAN DIEGO – Former U.S. Postal Service mail carrier Tracy Rumley of El Cajon was sentenced in federal court this morning to five years of probation and 200 hours of community service for stealing mail from customers on her postal route in the Santee area of San Diego.
When imposing sentence, U.S. District Judge Janis L. Sammartino said, “Stealing mail is not the way to go. You will be caught, and you will be prosecuted.”
During the evening of November 21, 2022, an off-duty San Diego Police detective saw a woman in a hooded sweatshirt open a communal mailbox at his apartment complex in Santee, California and remove multiple pieces of mail. As the detective approached, the female closed the mailbox and fled in a White Nissan. After getting the license plate of the vehicle, the detective determined that Rumley resided at the same address as listed for the vehicle registration and referred the matter to the U.S. Postal Service.
Rumley had been placed on administrative leave from her employment at the Santee Post Office earlier that month and was terminated by the Postal Service on December 12, 2022. After securing a search warrant for the residence, on December 21, 2022, United States Postal Service Inspectors found more than 1,500 pieces of mail in Rumley’s residence including, but not limited to, gift cards, credit cards and even several Christmas presents that had all been stolen from nearly 900 customers along her mail delivery route in Santee. Inspectors also found the keys she was given as a mail carrier to access mailboxes. The keys were hidden in a potted plant within her bedroom. In her plea agreement, Rumley admitted that, even after being placed on administrative leave, she kept those keys though she was not authorized to do so and used them to continue to steal mail even after she was terminated.
The government’s sentencing papers quoted several statements given by the victims of Rumley’s crimes. Those statements emphasized what Judge Sammartino observed was a “betrayal” of duty by the victims’ mail carrier. For example, a child who had been impacted by Rumley’s theft commented that, “I felt shocked because I got robbed by the mail lady.” An adult victim said, “She played us for idiots.”
“When customers entrust the U.S. Postal Service with their letters and packages, they expect each and every piece will be delivered to its final destination,” said Acting U.S. Attorney Andrew R. Haden. “The U.S. Attorney’s Office will zealously pursue those whose actions impact the integrity of our mail delivery system to achieve justice for the victims.” Haden thanked former Special Assistant U.S. Attorney Jennifer Luce and the U.S. Postal Service Office of Inspector General for their excellent work on this case.
“The sentencing in this case demonstrates the U.S. Postal Inspection Service’s commitment to protect the sanctity of the U.S. Mail and to ensure the public’s trust in the Postal Service by holding those that commit theft accountable for their actions,” said Carroll Harris, Inspector in Charge of the Los Angeles Division.
DEFENDANT Case Number 23cr0216-JLS
Tracy Rumley Age: 44 El Cajon, CA
SUMMARY OF CHARGES
Count 1: Keys or Locks Stolen – Title 18, U.S.C., Section 1704
Maximum penalty: Ten years in prison and $250,000 fine
Count 2: Theft of Stolen Mail Matter – Title 18, U.S.C., Section 1708
Count 3: Theft of Mail by Postal Employee – Title 18, U.S.C., Section 1709
Maximum penalty (Counts 2 & 3): Five years in prison and $250,000 fine
AGENCY
U.S. Postal Inspection Service
Drug Trafficker Sentenced to 15 Years in Prison for Distributing Methamphetamine and FentanylRead the Press Release
NEWS RELEASE SUMMARY – August 11, 2023
SAN DIEGO –Danny Lamar Miller-Kidd was sentenced in federal court to 15 years in prison for his leadership role in a Baja California-based drug trafficking organization that imported and distributed hundreds of pounds of methamphetamine, cocaine, fentanyl, and heroin to various sub-distributors throughout the United States, including California, Arizona, Oregon, Nevada, Wyoming, Colorado, Utah, Illinois, and Tennessee.
Miller pleaded guilty in December 2022 to conspiracy to distribute controlled substances and possession of methamphetamine with intent to distribute. As part of his plea agreement, Miller admitted that he worked as a multi-kilogram distributor of controlled substances for a Baja California-based drug trafficking organization. Specifically, he worked with his co-conspirators to import multi-kilogram quantities of methamphetamine, cocaine, fentanyl and heroin from Mexico intended for distribution throughout the United States.
During the wiretap investigation, agents identified Miller as a leader of a drug distribution cell who was responsible for distributing controlled substances to various sub-distributors in Arizona, Utah, Illinois, Colorado and other states. Miller was acting in furtherance of the conspiracy when he was stopped by law enforcement in the Southern District of California as he was transporting more than 30 pounds of pure methamphetamine, 5,000 fentanyl pills, and multiple firearms inside his vehicle in September 2021. Wire intercepts revealed that Miller obtained his drugs from Mexico that were secreted in buckets of construction material. Miller was also known to possess assault rifles, including an AR-15 with a silencer, “ghost guns,” and other weapons throughout the investigation.
“Every defendant we convict of drug-related crimes is one less cog in the massive machine that delivers poison to our streets,” said Acting U.S. Attorney Andrew Haden. “We will continue to fight relentlessly to protect our communities from deadly drugs like fentanyl.”
“Here’s another example of how DEA and our partners continue to aggressively target drug trafficking organizations that are importing and distributing drugs into our country,” said DEA Special Agent in Charge Shelly Howe.
“IRS special agents will work tirelessly with our law enforcement partners and the U.S. Attorney’s Office to dismantle drug trafficking organizations by bringing their leaders to justice,” said Tyler Hatcher, Special Agent in Charge of IRS Criminal Investigation Los Angeles Field Office. “By following and eliminating the trail of illicit proceeds fueling the drug trade, IRS Criminal Investigation combats the flow of illegal guns and drugs that are killing Americans and destroying our communities. Mr. Miller’s sentencing should send a clear message of our resolve.”
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (“OCDETF”), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations using an intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
DEFENDANTS Case Number 22cr1143-GPC
- REDACTED Age: 42 Fugitive
- REDACTED Age: 34 Fugitive
- Danny Lamar Miller-Kidd Age: 51 180 months’ custody
- Angela Diane Guerrero Age: 39 70 months’ custody
- Elizabeth Allison Edelman Age: 41 156 months’ custody
- Erik Valenzuela Age: 44 57 months’ custody
- Ramiro Aguilar Age: 41 108 months’ custody
- Amber Mae Yaeger Age: 40 Pending sentencing
- Andrew Mauricio Martinez Age: 21 Pending sentencing
- REDACTED Age: 46 Fugitive
- Nilesh Prasad Maharaj Age: 44 Fugitive
- Nofoaiga Mauu Age: 42 Pending trial
- Yendi Cecilia Rosas Age: 22 18 months’ custody
- Arturo Valenzuela-Preciado Age: 60 37 months’ custody
- Montserrat Lopez-Barron Age: 23 Pending trial
- Maria Conchita Alonso-Lopez Age: 27 Awaiting sentencing
- Juan Manuel Godinez-Gutierrez Age: 42 Fugitive
SUMMARY OF CHARGES
Conspiracy to Distribute Controlled Substances – Title 21, U.S.C., Sections 841(a)(1) and 846
Possession of Controlled Substances with Intent to Distribute – Title 21, U.S.C., Section 841(a)(1)
Importation of Controlled Substances – Title 21, U.S.C., Sections 952 and 960
Conspiracy to Launder Monetary Instruments – Title 18, U.S.C., Sections 1956(a)(1) and (h)
Criminal Forfeiture – Title 18, U.S.C., Section 982
Maximum penalties: For the drug charges, term of custody including a mandatory minimum 10 years and up to life imprisonment, $10,000,000 fine and a lifetime of supervised release. For money laundering charges, term of custody up to 20 years’ imprisonment, a fine of $500,000 or twice the value of the monetary instrument or funds involved, and 3 years of supervised release.
AGENCY
Drug Enforcement Administration
Bureau of Land Management
Internal Revenue Service
Customs and Border Protection
Homeland Security Investigations
United States Border Patrol
United States Postal Inspection Service
San Diego Sheriff’s Department
Chula Vista Police Department
Oceanside Police Department
California Highway Patrol
Las Vegas Metropolitan Police Department
San Diego County District Attorney’s Office
*Allegations contained in an Indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Tech Executive Admits Participating in $150 Million Fraud on QualcommRead the Press Release
NEWS RELEASE SUMMARY – August 10, 2023
SAN DIEGO – Sanjiv Taneja, the former CEO of a technology company sold to Qualcomm for over $150 million, pleaded guilty in federal court today for his role in a massive fraud.
Taneja of Cupertino, California, pleaded guilty to one count of money laundering related to a $1.5 million transaction involving proceeds of the fraud on Qualcomm. In his plea agreement, Taneja admitted that he and co-defendants Karim Arabi, Ali Akbar Shokouhi, and others schemed to hide Arabi’s involvement in Abreezio—the tech firm that they marketed to Qualcomm. Arabi was a Qualcomm employee throughout the entire marketing period, and hiding his involvement in the firm and the development of its patented technology allowed Abreezio’s principals to claim that the company was an “angel-funded” outside firm while disguising its true connections to Qualcomm. In that regard, Taneja admitted that he asked Arabi for performance numbers for Qualcomm’s existing technology to try to improve Abreezio’s marketing pitch, and that he even called Arabi by a different name in text messages to obscure Arabi’s involvement in Abreezio. According to court documents, Qualcomm agreed to pay roughly $180 million for Abreezio—$150 million of which was paid in cash in October 2015.
Taneja acknowledged that he never actually met the purported creator of Abreezio’s core technologies, who is Arabi’s family member and was never involved in the company’s technical or strategic decision-making as far as Taneja knew.
In his plea agreement, Taneja also admitted that Karim Arabi directed him to delete emails concerning the scheme once Qualcomm started investigating the Abreezio transaction, although Taneja was later able to recover the emails.
“Fraud and deceit undermine legitimate businesses and the marketplace, whether they victimize small businesses or multinational corporations and their shareholders,” said Acting U.S. Attorney Andrew R. Haden. “This office will seek justice against wrongdoers, big and small alike.”
“Crimes like the one supported by Mr. Taneja and his co-conspirators threaten the economy at every level,” said FBI San Diego Field Office Acting Special Agent in Charge Jamie Arnold. “The FBI is committed to working with its law enforcement partners to ensure that every criminal taking part in corporate fraud is investigated and arrested.”
“Mr. Taneja was part of an elaborate conspiracy to steal tens of millions of dollars from a major technology company and a complex scheme to launder the proceeds,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation Los Angeles field office. “IRS Criminal Investigation special agents are experts at following the money through complex transactions and international movements, and we are committed to continued collaboration with our law enforcement partners to identify and bring to justice those who attempt to defraud people, businesses or both.”
DEFENDANTS Case Number 22-CR-1152-BAS
Karim Arabi Age: 57 San Diego, CA
Sanjiv Taneja Age: 60 Cupertino, CA
Ali Akbar Shokouhi Age: 64 San Diego, CA
AGENCIES
Federal Bureau of Investigation
Internal Revenue Services, Criminal Investigation
United States Marshals Service
*The charges and allegations contained in an indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Otay Mesa Detention Facility Case Manager Accused of Having Sex with DetaineeRead the Press Release
NEWS RELEASE SUMMARY – August 10, 2023
SAN DIEGO – Shantal Hernandez is charged in a complaint unsealed today with having sexual relations with a detainee at the Otay Mesa Detention Facility while she was a case manager at the Office of the Immigration Detention Ombudsman (OIDO), which provides oversight of immigration detention facilities.
OIDO is an independent office within the Department of Homeland Security. OIDO was established by Congress to assist individuals with complaints about the potential violation of immigration detention standards or other misconduct by Department of Homeland Security or contract personnel and provides oversight of immigration detention facilities. It is not a part of Immigration and Customs Enforcement or U.S. Customs and Border Protection. As part of her duties, Hernandez managed the complaints of ICE detainees in various detention facilities in the San Diego area.
According to the complaint, agents with the Department of Homeland Security’s Immigration and Customs Enforcement, Office of Professional Responsibility (ICE OPR), received information that Hernandez had been spending an unusual amount of time with a detainee - identified in court documents by the initials I.K.N. - at the Otay Mesa facility.
The complaint alleges that agents from ICE OPR obtained phone records from OMDC and determined that I.K.N. and Hernandez engaged in a significant number of sexually explicit phone calls and electronic communications. These calls discussed an ongoing relationship and sex acts between Hernandez and I.K.N. For example, in one call, Hernandez told I.K.N. that she had a video of one of their sex acts. Agents executed a search warrant that yielded a copy of one such video.
“The alleged conduct cannot and will not be tolerated,” said Acting U.S. Attorney Andrew Haden. “Those in a position of authority over immigration detainees must be held to the highest standard.”
“Hernandez’ main purpose as a DHS OIDO case manager was to promote safe and humane conditions within immigration detention,” said Jeffrey Gilgallon, special agent in charge for the Office of Professional Responsibility (OPR). “However, she allegedly abandoned that oversight role, instead using her position to engage in prohibited sexual activity with an ICE detainee in one of our detention facilities. OPR is fully committed to enforcing ICE’s zero tolerance policy against sexual abuse in our detention facilities and aggressively pursuing those DHS employees who violate the law, no matter their role or title.”
Hernandez made her initial appearance in federal court this afternoon. She is scheduled to appear in court on August 15, 2023, at 10 a.m. for a detention hearing before U.S. Magistrate Judge Jill L. Burkhardt.
DEFENDANTS Case Number 23mj2882
Shantal Hernandez Age: 36 San Diego, CA
SUMMARY OF CHARGES
Sexual Abuse of a Ward – Title 18, U.S.C., Section 2243(b)
Maximum penalty: Fifteen years in prison and $250,000 fine
AGENCY
U.S. Immigration and Customs Enforcement, Office of Professional Responsibility
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Andrew Haden Sworn in as Acting U.S. AttorneyRead the Press Release
NEWS RELEASE SUMMARY – August 7, 2023
SAN DIEGO – Andrew R. Haden was sworn in today as Acting U.S. Attorney for the Southern District of California, one of the busiest federal districts in the nation. U.S. District Court Chief Judge Dana Sabraw administered the oath of office to Haden in the presence of his senior leadership team and a small group of friends and family.
Haden is a veteran prosecutor who has served in several high-profile leadership roles for the U.S. Attorney’s Office, including as the First Assistant U.S. Attorney (second-in-command) for the last year. Officially, Haden was appointed as Acting U.S. Attorney by the Department of Justice, under the Vacancies Reform Act, after the resignation on August 4, 2023, of then-U.S. Attorney Randy S. Grossman.
“I am deeply honored to serve our nation and the people of this District as Acting United States Attorney,” Haden said. “I am looking forward to continuing my work with the outstanding team at the U.S. Attorney’s Office and our excellent law enforcement partners.”
The U.S. Attorney’s Office enforces federal criminal laws in the Southern District of California, which includes San Diego and Imperial counties, and represents the federal government in civil litigation. The office is one of the nation’s largest, comprised of approximately 300 attorneys and staff members. As the Acting U.S. Attorney, Haden is the chief federal law enforcement official for the district.
Haden is a career federal prosecutor. He joined the U.S. Attorney’s Office in 2010, after being selected and hired through the Attorney General’s Honors Program. During his almost 13 years in the San Diego office, Haden has worked in the General Crimes Section, as the District’s Project Safe Neighborhoods Coordinator, as a Deputy Chief in both the Reactive and Major Crimes Sections, as the Chief of the Violent Crimes & Human Trafficking Section, as the Chief of the Criminal Division, and most recently, as the First Assistant U.S. Attorney.
In 2020, Haden received the nationwide Director’s Award for Superior Performance in a Managerial or Supervisory role from the Executive Office for United States Attorney’s for “extraordinary leadership contributions” to the Department of Justice from 2016-2019. Prior to joining the U.S. Attorney’s Office, Haden served as a law clerk for U.S. District Judge Thomas J. Whelan in the Southern District of California.
A San Diego native, Haden is a graduate of University City High School. He received his Bachelor of Arts in Political Science from Stanford University. After college, Haden was commissioned as an Officer in the United States Navy where he served for five years, which included two overseas deployments. For his last assignment, Haden was the Navigator on the USS MOBILE BAY (CG-53), a guided-missile cruiser homeported in San Diego. Haden received his law degree from the University of San Diego.
U.S. Navy Sailor Arrested and Charged with EspionageRead the Press Release
NEWS RELEASE SUMMARY – August 3, 2023
SAN DIEGO – Jinchao Wei, a United States Navy sailor, was arrested yesterday on espionage charges as he arrived for work at Naval Base San Diego, the homeport of the Pacific Fleet. Wei is scheduled to appear in federal court today pursuant to a federal grand jury indictment charging him with conspiracy to send national defense information to an intelligence officer working for the People’s Republic of China.
The indictment, unsealed this morning, alleges that Wei, also known as Patrick Wei, was an active-duty sailor on the amphibious assault ship U.S.S. Essex stationed at Naval Base San Diego. In his role as a machinist’s mate, Wei held a U.S. security clearance and had access to sensitive national defense information about the ship’s weapons, propulsion and desalination systems. Amphibious assault ships like the Essex resemble small aircraft carriers and allow the U.S. military to project power and maintain presence by serving as the cornerstone of the U.S. Navy’s amphibious readiness and expeditionary strike capabilities.
The crime of espionage under U.S. Code Section 794 has never been charged in this district, and until today had only been charged five times in the last six years across the entire country. The statute is reserved for the most serious circumstances involving the passage of national defense information intended to harm the United States or for the benefit of a foreign power.
The indictment alleges the following:
In February 2022, Wei began communicating with an intelligence officer from the People’s Republic of China who requested that Wei provide information about the U.S.S. Essex and other Navy ships. Specifically, the Chinese officer tasked Wei with passing him photos, videos, and documents concerning U.S. Navy ships and their systems. The two agreed to hide their communications by deleting records of their conversations and using encrypted methods of communication.
At the request of the intelligence officer, Wei sent photographs and videos of the Essex; disclosed the locations of various Navy ships; and described defensive weapons of the Essex, between March 2022 and the present. In exchange for this information, the intelligence officer paid Wei thousands of dollars over the course of the conspiracy.
The indictment further alleges that in June of 2022, Wei sent the intelligence officer approximately 30 technical and mechanical manuals. These manuals contained export control warnings and detailed the operations of multiple systems aboard the Essex and similar ships, including power, steering, aircraft and deck elevators, as well as damage and casualty controls. The intelligence officer confirmed with Wei that at least 10 of those manuals were useful to him. For passage of those materials, the indictment alleges that Wei was paid $5,000.
In June 2022, the intelligence officer requested that Wei provide information about the number and training of U.S. Marines during an upcoming international maritime warfare exercise. In response to this request, Wei sent multiple photographs of military equipment to the intelligence officer.
In August 2022, Wei sent an additional 26 technical and mechanical manuals related to the power structure and operation of the Essex and similar ships. The manuals contained warnings that this was technical data subject to export controls and that it was deemed “critical technology” by the U.S. Navy.
The indictment further alleges that in October 2022, Wei sent a technical manual to the intelligence officer describing the layout and location of certain departments, including berthing quarters and weapons systems. Specifically, Wei sent a weapons control systems manual for the Essex and similar ships. This manual contained export-controlled data that could not be exported without a license from the U.S. government. The indictment alleges that Wei knowingly violated the International Traffic in Arms Regulations by transmitting this manual to the Chinese intelligence officer without obtaining a required license.
The intelligence officer continued to request information in 2023, including information about the overhaul and upgrades to the Essex. Specifically, he requested blueprints, especially those related to modifications to the flight deck. Wei provided information related to the repairs the Essex was undergoing, as well as other mechanical problems with similar vessels.
During the alleged conspiracy, the intelligence officer instructed Wei to gather U.S. military information that was not public and admonished him not to discuss their relationship and to destroy any evidence regarding the nature of their relationship and their activities.
“We have entrusted members of our military with tremendous responsibility and great faith,” said U.S. Attorney Randy Grossman. “Our nation’s safety and security are in their hands. When a soldier or sailor chooses cash over country, and hands over national defense information in an ultimate act of betrayal, the United States will aggressively investigate and prosecute.” Grossman thanked the prosecution team and investigating agencies for their excellent work on this case.
“Petty Officer Wei, who as a service member was trusted with our nation’s secrets, is accused of selling out his country and betraying his oath to the Navy by willingly providing sensitive military information to a Chinese intelligence officer for his own financial gain,” said Special Agent in Charge Brice Miller of the NCIS Office of Special Projects. “NCIS will continue to leverage its unique law enforcement and counterintelligence authorities to aggressively root out those who put our nation’s warfighters at risk. We sincerely thank the FBI and the Department of Justice for their significant assistance to this complex investigation.”
“These arrests show the FBI’s commitment to utilizing all of its law enforcement and U.S. intelligence community resources and capabilities to aggressively combat the People’s Republic of China’s government’s threats against our military and to protect the United States’ most precious assets,” said FBI San Diego Field Office Special Agent in Charge, Stacey Moy. “We remain committed to identifying, disrupting, and dismantling any and all efforts by the PRC to threaten our national security.”
This case was investigated by the FBI and the Naval Criminal Investigative Service and is being prosecuted by Assistant U.S. Attorneys John Parmley and Fred Sheppard from the U.S. Attorney’s Office for the Southern District of California and Trial Attorney Adam Barry from the National Security Division’s Counterintelligence and Export Control Section.
View the Indictment
wei_indictment.pdfAn indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
DEFENDANTS Case Number 23CR01471-H
Jinchao Wei Age: 22 San Diego
SUMMARY OF CHARGES
Title 18, United States Code, Section 794(c) – Conspiracy to Communicate, Deliver, or Transmit Defense Information to Aid a Foreign Government
Maximum penalty: Life in prison, $250,000 fine
Title 18, U.S.C., Sec. 794(a) – Communicate, Deliver, or Transmit Defense Information to Aid a Foreign Government
Maximum penalty: Life in prison and $250,000
Title 22, U.S.C., Sec. 2778(b)(2) and (c); Title 22, C.F.R., Secs. 121.1, 127.1 and 127.3 – Conspiracy to Export Defense Articles Without a License
Maximum penalty: Twenty years in prison and $1 million fine
Title 22, U.S.C., Sec. 2778(b)(2) and (c); Title 22, C.F.R., Secs. 121.1, 127.1 and 127.3 – Export of Defense Articles Without a License
Maximum penalty: Twenty years in prison and $1 million fine
INVESTIGATING AGENCIES
Federal Bureau of Investigation
Naval Criminal Investigative Service
Alleged Violent Cartel Enforcer Extradited from MexicoRead the Press Release
NEWS RELEASE SUMMARY – August 3, 2023
SAN DIEGO – Edgar Herrera Pardo, aka Caiman, an alleged violent cartel enforcer in Tijuana, Mexico, was extradited from Mexico yesterday to face federal drug trafficking charges in San Diego.
Caiman was indicted in the Southern District of California on April 10, 2019, as an alleged leader of a group known as Los Cabos, which operated in Baja California to secure control of the region for Cártel de Jalisco Nueva Generación, commonly known as CJNG. Los Cabos employed rampant violence to ensure that CJNG maintained the ability to traffic drugs through Tijuana and into the United States.
Caiman was apprehended by authorities in Mexico on August 5, 2019, and has been in custody there since. He arrived in San Diego on August 2, 2023, and made his initial appearance today before U.S. Magistrate Judge Mitchell D. Dembin. He is scheduled for a detention hearing before Judge Dembin on August 8, 2023 at 10 a.m.
“According to the government’s allegations, Herrera Pardo and his group of enforcers unleashed appalling violence on Tijuana on behalf of a powerful drug cartel that is responsible for moving large quantities of illicit drugs into the U.S.,” said U.S. Attorney Randy Grossman “This extradition shows that those who put American lives at risk through trafficking of dangerous substances will be held responsible, wherever they may be. The Department of Justice appreciates the cooperation of the Mexican authorities in this matter. With the assistance of our law enforcement colleagues at home and around the world, we will aggressively pursue drug traffickers and bring them to justice.” Grossman thanked the prosecution team and the Drug Enforcement Administration for their excellent work on the case.
“Drug trafficking is a violent crime,” said DEA Special Agent in Charge Shelly Howe. “The alleged actions of Edgar Herrera Pardo demonstrate the devastation that drug trafficking can have on a community. The DEA and its partners at the local, state, and federal level are dedicated to protecting the community from the dangerous actions of people like Herrera Pardo.”
The Justice Department extends its gratitude to the Mexican Attorney General, Foreign Secretariat, and prosecutorial and law enforcement authorities for making the extradition possible. The Justice Department’s Office of International Affairs provided significant assistance in securing the defendant’s arrest and extradition from Mexico. The U.S. Marshals Service assisted in bringing the defendant back to the United States.
This case is part of a long-term investigation led by the Southern District of California that included a six-month period of judicially-authorized interceptions and led to the indictment of other cartel enforcers in Tijuana and drug distributors in the United States.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.
DEFENDANT Case Number: Case Number: 19CR1274-BAS
Edgar Herrera Pardo aka Caiman Age: 35 Tijuana, Mexico
SUMMARY OF CHARGES
Conspiracy to Distribute Controlled Substances for Purpose of Unlawful Importation, in violation of Title 21 U.S.C. §§ 959, 960 and 963
Maximum Penalty: Mandatory minimum 10 years and up to life in prison; $10 million fine
Conspiracy to Distribute Controlled Substances, in violation of Title 21 U.S.C. §§ 841(a)(1) and 846
Maximum Penalty: Mandatory minimum 10 years and up to life in prison and $10 million fine
INVESTIGATING AGENCIES
Drug Enforcement Administration
Homeland Security Investigations
United States Marshals Service
Department of Justice, Organized Crime Drug Enforcement Task Force
Department of Justice, Office of Enforcement Operations
Department of Justice, Office of International Affairs
San Diego Sheriff’s Department
Husband and Wife Plead Guilty to $65 Million TRICARE FraudRead the Press Release
NEWS RELEASE SUMMARY – July 28, 2023
SAN DIEGO - Jimmy and Ashley Collins, a married couple living in Birchwood, Tennessee, pleaded guilty in federal court today, admitting that they participated in a health care fraud scheme that bilked TRICARE – the health care program that covers United States service members –out of more than $65 million.
The couple admitted they worked with others to recruit TRICARE beneficiaries who were willing to sign up to receive expensive compounded medications, even though the beneficiaries did not really need the medications. The beneficiaries’ information was sent to Choice MD, a Tennessee medical clinic co-owned and operated by the Collinses. Doctors and medical professionals employed by the Collinses at Choice MD, including Dr. Susan Vergot, Dr. Carl Lindblad, and nurse practitioner Candace Craven, then wrote prescriptions for the TRICARE beneficiaries, despite never conducting a medical review or examination of the patients in person. Once signed by the doctors, these prescriptions were not given to the straw beneficiaries, but sent directly to The Medicine Shoppe, a pharmacy in Bountiful, Utah, which filled the prescriptions and received massive reimbursement from TRICARE.
Between December 2014 and May 9, 2015 – the day that TRICARE stopped reimbursing for compounded medications – the doctors working for the Collinses at Choice MD authorized 4,442 prescriptions and billed TRICARE $65,679,512 for these prescriptions.
The owners of The Medicine Shoppe then paid kickbacks to the Collinses based on a percentage of the TRICARE reimbursement paid for the prescriptions referred by the Collinses’ recruiter network. Between February and July 2015, these kickback payments to the Collinses totaled at least $45.7 million dollars. The Collinses, in turn, paid kickbacks to the recruiters working as part of their network, including defendants Josh Morgan, Kyle Adams, and Daniel Castro, among others.
The United States has seized property and items purchased by the Collinses and others with the proceeds of the scheme. Included among these items is an 82-foot yacht; multiple luxury vehicles, including two Aston-Martins; a multimillion-dollar investment annuity; dozens of pieces of farm equipment and tractor-trailer trucks; and three pieces of Tennessee real estate.
The Collinses are the last members of the conspiracy to plead guilty. The doctors and nurse practitioner who prescribed these unnecessary prescriptions, the corporate owner of the pharmacy that filled these unneeded prescriptions, and the patient recruiters have all pleaded guilty for their roles in the conspiracy to commit healthcare fraud and admitted their roles in this fraudulent scheme.
“The scheme alleged in this case resulted in massive losses to a taxpayer-funded healthcare program meant to help members and veterans of our armed forces,” said U.S. Attorney Randy Grossman. “The days of yachts and luxury cars are gone. With these guilty pleas, we are holding these defendants accountable for their crimes.” Grossman thanked the prosecution team and investigating agencies for their excellent work on this case.
“The Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS) is committed to protecting the integrity of TRICARE, the health care system for our military members and their families,” said Special Agent-in-Charge Michael C. Mentavlos of the DCIS Southwest Field Office. “Today's outcome demonstrates our unwavering commitment to hold accountable those that perpetrate fraud against TRICARE and put its beneficiaries at risk.”
“Mr. and Mrs. Collins operated a TRICARE scheme that defrauded the American taxpayer of more than $65 million in healthcare resources that should have been directed to service members, retirees, and their dependents,” said Special Agent in Charge Greg Gross of the NCIS Economic Crimes Field Office. “This guilty plea should serve as a warning that NCIS and our partners are dedicated to rooting out fraud that harms the military community.”
Jimmy and Ashley Collins are scheduled to be sentenced on October 27 at 9 a.m. before U.S. District Judge Janis L. Sammartino.
DEFENDANTS Case Numbers: 18-CR-1850-JLS, 18-CR-1855-JLS
Jimmy Collins Age: 59 Birchwood, TN
Ashley Collins Age: 37 Birchwood, TN
SUMMARY OF CHARGES
Jimmy Collins:
Receipt of Illegal Remuneration, in violation of 42 U.S.C. §1320(a)-7b(b)(1)(A)
Maximum penalty: Ten years in prison and $100,000 fine or double loss amount, whichever is greater
An order of restitution requiring defendant to repay at least $65,679,512.71 to DHA/TRICARE
Ashley Collins:
Conspiracy, in violation of 18 U.S.C. § 371
Maximum penalty: Five years in prison and $250,000 fine or double loss amount, whichever is greater
An order of restitution requiring defendant to repay at least $65,679,512.71 to DHA/TRICARE
AGENCY
Defense Criminal Investigative Service
Naval Criminal Investigative Service
IRS Criminal Investigation Division, Gulfport, MS
Federal Bureau of Investigation - Jackson, MS Field Office
Skimmer Gets Prison for Million-Dollar Financial Identity Theft SchemeRead the Press Release
SAN DIEGO – A Los Angeles metropolitan resident was sentenced today to 41 months in prison for repeatedly installing specialized devices to steal the financial information of unwitting victims at gas pumps throughout Southern California.
Haykaz Mansuryan, age 34, admitted in his plea agreement that he broke into dozens of gas pumps to install “skimmers”—customized electronic devices to steal credit and debit card information from unknowing patrons using the pumps. Mansuryan admitted that the conspiracy he participated in purloined over $1 million while he was involved.
"The public has the right to safely conduct everyday financial transactions,” said U.S. Attorney Randy S. Grossman. “Anyone who steals from unwitting victims will face justice.”
Mansuryan admitted that he and his accomplices broke into gas pumps throughout Southern California and installed customized skimming devices, built by other members of the scheme, to steal victims’ credit and debit card information during otherwise legitimate transactions. Mansuryan and his conspirators would then make unauthorized cards encoded with victims’ information for their own use, stealing victims’ funds, or otherwise sell victims’ financial information outright to others who would exploit it for their own gain.
According to court documents, law enforcement recovered 54 skimming devices from different Southern California gas stations visited by Mansuryan.
Mansuryan admitted in his plea agreement that he personally received $931,213.92 from the scheme over the course of his participation, which lasted from August 2018 to October 2021. He was ordered to forfeit that amount, and to participate in paying restitution of $923,374.14 to the victims of his crime together with his codefendants.
Other defendants in this and a related case previously received prison time for similar conduct. On January 6, 2023, Robert Fichidzhyan was sentenced to 41 months in custody for his role in building the skimmers used by Mansuryan and his associates. He was also ordered to pay $619,923.45 in restitution. On June 23, 2022, Margar Simonyan was sentenced to 12 months and 1 day in custody in related case number 21-cr-2659-BAS, together with $11,810 of forfeiture and restitution. One defendant remains a fugitive. Two defendants, Hayk Shakaryan and Vasiliy Polyak, are presently set for jury trial September 12, 2023. The remaining defendants are pending sentencing.
“This case is a great reminder that even the most technical and sophisticated criminal groups can be dismantled by the collaborative efforts of law enforcement professionals. I am truly proud of the hard work our dedicated men and women have performed on this case, which continues to show we will continuously pursue those taking advantage of unknowing victims and protect the U.S. financial system,” said Jason Reynolds, Special Agent in Charge with the San Diego Field Office of the United States Secret Service.
This investigation involved significant contributions from many different sources, including the Internal Revenue Service, Criminal Investigation; the San Diego Police Department; the San Diego County Sheriff’s Department; the Glendale Police Department; the California Department of Food and Agriculture’s Bureau of Weights and Measures; the U.S. Attorney’s Office for the Central District of California; and other state, local, and federal law enforcement partners, as well as assistance from and partnerships with the financial and private sectors, such as the National Cyber-Forensics Training Alliance (NCTFA). Anyone who believes that they may be a victim of this offense can visit the U.S. Department of Justice’s large case website for more information: www.justice.gov/largecases.
DEFENDANTS Case Number 21-CR-2660-BAS
- Haykaz Mansuryan 34 Residence: Granada Hills, California
- Hayk Shakaryan 34 Residence: Glendale, California
- Davit Babayan 36 Residence: Granada Hills, California
- Artour Hakobyan 39 Residence: Glendale, California
- Petros Armutyan 36 Fugitive
- Hakop Karayan 44 Residence: Glendale, California
- Robert Fichidzhyan 40 Residence: North Hollywood, California
- Vasiliy Polyak 32 Residence: Glendale, California
SUMMARY OF CHARGES
Conspiracy to Use Unauthorized Access Devices and Possess Device-Making Equipment, in violation of Title 18, United States Code, Sections 1029(b)(2), 1029(a)(2), and 1029(a)(4)
Maximum Penalty: five to ten years in prison, depending upon prior convictions; fine of $250,000 or twice the gross gain or loss
Aggravated Identity Theft, in violation of Title 18, United States Code, Section 1028A (Defendants 1, 2, and 4 through 6 only)
Maximum Penalty: mandatory minimum two years in prison, consecutive to any other sentence
AGENCIES
U.S. Secret Service
Information Technology Consultant Sentenced to 21 Months for Stealing Hundreds of Thousands of Dollars from Small BusinessRead the Press Release
SAN DIEGO – Derek Gleeson, an Information Technology (“IT”) Consultant, was sentenced in federal court today to 21 months in prison for embezzling hundreds of thousands of dollars from a family-owned small business based in New Jersey.
In November 2022, Gleeson, pleaded guilty to a wire fraud charge, admitting that he charged the small business for IT hardware, software, and services that he never supplied. Gleeson also admitted that he ginned up or altered invoices in an effort to substantiate the fake charges he submitted to the company. According to the plea agreement, when the company grew suspicious and confronted Gleeson about the charges, he installed pirated software on the company’s servers, all to make it appear that he had purchased and installed legitimate software, when in fact he had not. The fraudulent scheme lasted for four years and resulted in over $600,000 in losses. Gleeson lived in Carlsbad, California at the time of the fraud.
"For years, this defendant took advantage of a position of trust that gave him full access to a small business’s IT system,” said U.S. Attorney Randy Grossman. “Fortunately, he has been held accountable for the significant impact his crime had on this business and its owners.” Grossman praised the excellent work of the prosecutors and FBI agents who worked on this case.
DEFENDANTS Case Number 20cr3246-DMS
Derek Gleeson Age: 51 Round Rock, TX
SUMMARY OF CHARGES
Wire Fraud – Title 18, U.S.C., Section 1343
Maximum penalty: Twenty years in prison and $250,000 fine
AGENCY
FBI
Hospital Employee Sentenced to 3 Years in Prison for Using Patient Information to Steal Pandemic Unemployment BenefitsRead the Press Release
NEWS RELEASE SUMMARY – July 21, 2023
SAN DIEGO – Matthew George Lombardo was sentenced in federal court to 36 months in prison for using his position as a clerk at a local hospital to steal patient identifying information and pass the information on to others in an attempt to steal Pandemic Unemployment Assistance (PUA) benefits.
Lombardo pleaded guilty in September 2022. According to the government’s sentencing memo, in August of 2020 Lombardo worked at a hospital as a Patient Service Representative where he had access to patient admission sheets, which included patient identifying information. Lombardo used that position to access that confidential patient information and provide it to a co-defendant for use in submitting PUA claims to the California Employment Development Department (EDD). Text messages between Lombardo and his co-defendants show they were looking for the most vulnerable victims. For example, on August 15, 2020, Lombardo texted a co-defendant “if you need social security numbers or anything I can pull that shit up at work.” The government’s sentencing memo further describes how Lombardo and his co-defendants deliberately took advantage of people in their most vulnerable state. For example, on August 22, 2020, Lombardo texted his co-defendant the name, date of birth, social security number, and address of a patient and wrote, “this guy died a few hours ago, how many names do we need?” The co-defendant texted back: “find me one who is still alive . . . someone 55 or younger who is on their way out.”
In imposing a 36-month sentence U.S. District Judge Cathy Ann Bencivengo noted that Lombardo was stealing public assistance benefits intended to help people during a national emergency and said she found the text messages deliberately targeting hospital patients to be “callous.”
"During a national healthcare emergency, Mr. Lombardo stole the identities of hospital patients to defraud the government of funds intended for people in crisis,” said U.S. Attorney Randy Grossman. “This office and our law enforcement partners are dedicated to pursuing such frauds and will hold the perpetrators accountable.” Grossman thanked the prosecution team and investigating agencies who diligently pursued this case.
“The DEA and its partners will continue to pursue justice for the citizens of San Diego,” said DEA Special Agent in Charge Shelly Howe.
DEFENDANT Case Number 21-CR-2154-CAB
Matthew George Lombardo Age: 54 San Diego
SUMMARY OF CHARGES
Count 1: Conspiracy to Commit Wire Fraud – Title 18, U.S.C., Section 1349
Maximum penalty: 20 years in prison
Counts 2 and 3: Aggravated Identity Theft – Title 18, U.S.C., Section 1028A
Maximum penalty: 2 years in prison
Count 4: Using Confidential Health Information for Personal Gain – Title 42, U.S.C., Section 1320d-6
Maximum penalty: 10 years in prison
AGENCY
Drug Enforcement Administration
United States Postal Inspection Service
United States Department of Labor, Office of the Inspector General
California Employment Development Department Investigation Division
San Diego County Sheriff’s Department
Former Homeless Center Employee Admits Stealing More Than $70,000 in Government Checks Intended for UnhousedRead the Press Release
NEWS RELEASE SUMMARY – July 20, 2023
SAN DIEGO – Charisse Elaine Alexander pleaded guilty in federal court today to Conspiracy to Commit Wire Fraud, admitting that she stole 66 government-issued checks intended for unhoused individuals while working at the San Diego (Neil Good) Day Center for Homeless Adults.
According to her plea agreement, Alexander was employed at the San Diego (Neil Good) Day Center in April 2021 when she and her then-boyfriend devised a scheme to steal government checks sent to unhoused individuals receiving their mail at the Center. Alexander exploited her access to the mailroom to steal mail containing checks sent by the Social Security Administration, Department of Veterans Affairs, Internal Revenue Service, and State of California. At least 56 individuals, most unhoused and of extremely limited financial means, had checks stolen by Alexander between April 2021 and January 2023.
Alexander, 55, admitted that she would steal the checks from the Center’s mailroom, divide them with her then-boyfriend, and that they would forge the signature of the intended recipient and deposit the check into their respective bank accounts. The money was eventually withdrawn at ATM locations in California and Nevada, many inside or near casinos. In total, Alexander agreed that she and her co-conspirator received at least $73,466.43 in stolen government money as a result of their fraud conspiracy.
Under the terms of her plea agreement, Alexander has agreed to make full restitution for the money stolen by both her and her co-conspirator.
“This crime victimized dozens of individuals, many of whom may not know that they had their checks stolen,” said U.S. Attorney Randy Grossman. “This defendant exploited a position of trust and caused financial hardship to those least able to go without their retirement benefits, veteran’s pensions, tax returns, and public aid.” Grossman thanked the prosecution team and the Social Security Administration Office of the Inspector General for discovering and investigating this crime.
“Ms. Alexander preyed upon a vulnerable community and her criminal actions deprived them of their vital Social Security benefits,” said Gail S. Ennis, Inspector General for the Social Security Administration. “My office will continue to investigate those who conspire to steal the Social Security benefits of others for their own gain. I thank the U.S. Attorney’s Office and Special Assistant U.S. Attorney Jeffrey D. Hill for their work in prosecuting this case.”
Alexander was released on bail pending her sentencing hearing, which is scheduled before U.S. District Judge Barry Ted Moskowitz on October 12, 2023, at 1 p.m.
If you or someone you know were receiving mail at the San Diego (Neil Good) Day Center for Homeless Adults between 2020 and 2023, and believe that mail may have been stolen, please contact the United States Attorney’s Office at the number listed above, or the Social Security Fraud Hotline at (800) 269-0271.
DEFENDANT Case Number 23cr1460-BTM
Charisse Elaine Alexander Age: 55 San Diego, CA
SUMMARY OF CHARGES
Conspiracy to Commit Wire Fraud – Title 18, U.S.C., Section 1349
Maximum penalty: Twenty years in prison and $250,000 fine
AGENCIES
Social Security Administration – Office of the Inspector General
San Diego Couple Charged with Stealing Stimulus Payments During Pandemic and Purchasing Luxury Mercedes-Benz and JewelryRead the Press Release
NEWS RELEASE SUMMARY – July 17, 2023
SAN DIEGO – An indictment unsealed in federal court today charges Alexandra Crystal McFarland and Demetrius Montre McFarland, a married couple, with participating in a scheme to steal IRS stimulus payments during the COVID-19 pandemic from destitute and vulnerable victims and using the proceeds to purchase a luxury vehicle, jewelry and furniture.
The indictment alleges that between April 2020 and at least September 2020, Mrs. McFarland approached homeless and low-income individuals throughout Southern California for the purpose of soliciting and collecting their personal identifying information (“PII”). Mrs. McFarland then allegedly used that information—along with the PII of detainees at two local detention facilities—to submit applications for Economic Impact Payments (EIP) from the IRS, which are commonly referred to as “stimulus payments.”
For his part, Mr. McFarland allegedly provided Mrs. McFarland with the PII of his fellow detainees at the Vista Detention Center. Mr. McFarland is presently serving a state prison term for attempted murder.
Mrs. McFarland allegedly made false representations to obtain the PII, including that those providing their PII to her could expect to receive an EIP in the mail, when in fact Mrs. McFarland directed payment of the EIP to a bank account that she controlled. Similarly, Mrs. McFarland also allegedly claimed she would assist with the application in exchange for an agreed-upon portion of the EIP, but in fact would keep more than the agreed-upon amount—and sometimes the entire EIP. The indictment further alleges that Mrs. McFarland also used victims’ PII without lawful authority to apply for benefit payments from the State of California Employment Development Department.
The indictment states that Mrs. McFarland used various EDD debit cards to purchase thousands of dollars of jewelry, nearly $9,000 in furniture that she shipped to her Spring Valley residence, and to cover part of a $60,000 down payment for a Mercedes-Benz G-Class 550 SUV that she purchased in the name “Alexa McFarland.” In addition to the conspiracy count, the indictment charges Mrs. McFarland with money laundering based on her purchase of the luxury vehicle, which the IRS has seized.
Mrs. McFarland entered a not guilty plea on July 17, 2023. A detention hearing before U.S. Magistrate Judge Michael S. Berg is scheduled for July 20, 2023, and a motion hearing and trial setting before U.S. District Judge Gonzalo P. Curiel is scheduled for August 7, 2023.
Mr. McFarland is expected to make his initial appearance on July 18, 2023. Mr. McFarland will be arraigned on both the indictment and on allegations that he violated the terms of supervised release imposed in his prior federal conviction for Conspiracy to Conduct Enterprise Affairs Through a Pattern of Racketeering Activity (RICO) in Criminal Case No. 17-CR-270-JAH.
DEFENDANTS Case Number 23-CR-1098-GPC
Alexandra Crystal McFarland Age: 32 San Diego, CA
Demetrius Montre McFarland Age: 30 San Diego, CA
SUMMARY OF CHARGES
Conspiracy–Title 18, U.S.C., Section 371
Maximum penalty: Five 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
AGENCY
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.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
U.S. Attorney Randy S. Grossman Announces DepartureRead the Press Release
NEWS RELEASE SUMMARY – July 14, 2023
SAN DIEGO – Randy S. Grossman, United States Attorney for the Southern District of California, today announced his resignation, effective at the end of the day on August 4, 2023. Grossman plans to return to the private sector.
“It has been the honor of my life to serve as U.S. Attorney alongside our office’s talented and selfless public servants and our exceptional agency and community partners,” Grossman said. “I am very proud of what we accomplished together for our nation, and I am deeply grateful for the opportunity to have served the people of the Southern District of California. I will leave with the utmost confidence in the future success of the office.”
Grossman, who previously served as the First Assistant U.S. Attorney, began serving as Acting U.S. Attorney on February 28, 2021. Attorney General Merrick Garland then appointed Grossman to be the interim U.S. Attorney, effective December 26, 2021. After Grossman served in that role for 120 days, United States District Judges in the Southern District of California voted to appoint him as U.S. Attorney, effective April 25, 2022.
As the chief federal law enforcement official for San Diego and Imperial counties, Grossman prioritized criminal prosecutions that address the most significant public safety challenges to our district and nation. Together with federal, state and local agency partners, the office successfully prosecuted cases involving national security and cybersecurity; violent crime and illegal firearms; human smuggling and human trafficking; crimes against children; and drug trafficking, including an all-in strategy to dismantle every level in the fentanyl supply chain - from the Sinaloa Cartel leaders to the street level dealers.
Grossman also prioritized the prosecution of fraud and corruption during his tenure, including COVID-related fraud, cryptocurrency schemes, securities fraud, and elder fraud. Grossman oversaw significant civil matters, including successful defensive litigation on behalf of the United States, and the recovery of millions of dollars against individuals and companies for fraud and civil rights violations.
During Grossman’s tenure, the United States Attorney’s Office focused on community outreach and grant programs that strengthened relationships between law enforcement agencies and the communities they serve. These include education programs on hate crimes and hate incidents, reentry initiatives and other grant-funded programs to reduce violent crime, and programs to prevent fentanyl overdose deaths.
Grossman continued the collaborative work of multiple stakeholders in the Southern District of California through two highly successful criminal diversion programs led by the U.S. Attorney’s Office - the Alternative to Prison Solutions Diversion Program and the Veteran’s Diversion Program.
As the United States Attorney for one of the largest districts in the nation, Grossman led significant regional and nationwide initiatives for the Department of Justice. For example, the office co-led Joint Task Force Alpha, which was established by the Attorney General in June 2021, to combat human international human smuggling and human trafficking. Grossman also served on subcommittees for the Attorney General’s Advisory Committee (AGAC), which consists of a select number of U.S. Attorneys who advise the Attorney General on policy issues impacting federal prosecutors’ offices across the country. Grossman served as the co-chair of the Border and Immigration Law Enforcement Subcommittee and a member of the White-Collar Fraud and Violent Crime Subcommittees of the AGAC.
Grossman is a graduate of California Western School of Law (J.D.) and the University of Arizona (B.B.A.). For more information on Grossman’s background, please see https://www.justice.gov/usao-sdca/meet-us-attorney.
Man Sentenced to 15 years for Organizing Smuggling Event that Resulted in 13 DeathsRead the Press Release
NEWS RELEASE SUMMARY – July 13, 2023
SAN DIEGO – Jose Cruz Noguez, the coordinator of a fatal smuggling event near Calexico, California, on March 2, 2021, was sentenced today in federal court to 15 years in prison. During the event, 13 undocumented migrants were killed when the vehicle in which they were concealed collided with a tractor trailer near Holtville, California.
As detailed in pleadings filed prior to the sentencing hearing, Cruz Noguez was a coordinator of the event in which two SUVs – a GMC Yukon and a Ford Expedition – were modified by removing the seats in the passenger compartments so that undocumented migrants literally could be stacked on top of one another. Based on admissions made by Cruz Noguez to a cooperating source of information whom he tried to recruit to drive one of the load vehicles, he was responsible for organizing the event and collecting payment from the smuggled individuals. Cruz Noguez successfully recruited at least one of the drivers for the smuggling event, and on the morning of the incursion, he himself drove the smuggling route to scout for law enforcement activity. Meanwhile, his co-conspirators in Mexico crammed undocumented migrants into the load vehicles – at least 19 in the GMC Yukon and 24 in the Ford Expedition – and cut the international boundary fence, removing a section large enough for the vehicles to drive through.
Once in the United States, the vehicles proceeded eastbound on Interstate 8 towards a predetermined location. However, the cabin of the GMC Yukon eventually began filling with smoke, and the vehicle caught fire. The driver stopped the vehicle and fled on foot, leaving the smuggled individuals to fend for themselves. Nineteen of them were subsequently found hiding nearby, although it is believed that others were able to avoid apprehension. Meanwhile, the Ford Expedition and its 24 occupants continued driving eastbound towards Holtville, California. At the intersection of Norrish Road and Highway 115, the Ford Expedition collided with a tractor-trailer in a horrific accident, killing 13 of the undocumented migrants and seriously injuring many of the survivors. Further demonstrating his callousness, the defendant told the source of information in the days following the smuggling event that he was attempting to collect payment from the smuggled aliens who survived the incident and were not apprehended by law enforcement.
The sentencing hearing was held before U.S. District Judge Cathy Ann Bencivengo. Two of the survivors of the collision spoke and explained the terrible impact the tragedy has had on their lives. Before handing down the 15-year sentence, Judge Bencivengo determined that Cruz Noguez played an aggravated role in the smuggling event and noted that in her more than a decade of experience sentencing people for human trafficking offenses, this case was particularly “tragic and heartbreaking” and “among the worst of cases I have seen.” Judge Bencivengo went on to state, “People who engage in human trafficking of this nature are monstrous and cruel…These people were treated like human cargo…jammed into two cars to maximize the profit margin that the traffickers could make by putting as many people as possible into vehicles…with no concern about their health and safety.” Judge Bencivengo expressed her hope that the statutory maximum sentence would “be a message to the trafficking community that, when you engage in this kind of gross behavior, there are serious consequences.”
“Cruz Noguez organized one of the most callous and inhumane smuggling attempts that law enforcement has responded to in this district,” said U.S. Attorney Randy Grossman. “He and his co-conspirators treated these individuals like a worthless commodity. They were crammed into vehicles like sardines in a can, stacked one on top of another without seats or any form of safety restraints. Our office and our agency partners will not tolerate such heinous conduct and were determined to seek justice for these offenses.” Grossman thanked the prosecution team and investigating agencies for their excellent work on this case.
“Today’s sentencing serves as our promise to use every tool in HSI’s arsenal, in every corner of the globe, to investigate and dismantle human smuggling networks,” said Chad Plantz, special agent in charge for HSI San Diego. “Human smuggling is dangerous but as this case demonstrates, it’s also deadly. HSI will not stop investigating and bringing smugglers to court to face justice. There can be no safe haven for smugglers who evade our nations laws, are senselessly greedy and recklessly dangerous resulting in deaths.”
“This horrific tragedy was senseless and horrible beyond belief,” said El Centro Sector Chief Gregory Bovino. “The United States Attorney’s Office brought the defendant to justice, and the efforts of the prosecution team, plus those of Homeland Security Investigations, the California Highway Patrol, and others, signify that smugglers and traffickers of humans will face maximum consequences.”
DEFENDANTS Case Number 21CR1277-CAB
Jose Cruz Noguez Age: 49 Mexicali, Mexico
Froylan Cortez Avalos (fugitive) Age: 49 Mexicali, Mexico
SUMMARY OF CHARGES
Conspiracy to Bring in Undocumented Migrants
Title 8, U.S.C., Section 1324(a)(1)(A)(i) and (v)(I)
Maximum penalty: Ten years in prison and $250,000 fine
Bringing in Undocumented Migrants for Financial Gain and Aiding and Abetting
Title 8, U.S.C., Section 1324(a)(2)(B)(ii) and Title 18, U.S.C., Section 2
Maximum penalty: Fifteen years in prison and $250,000 fine
AGENCIES
Homeland Security Investigations
United States Border Patrol
California Highway Patrol
Imperial County Sheriff’s Office
Maritime Smuggler Sentenced to Five Years for Alien Smuggling, Intentionally Ramming Coast Guard VesselRead the Press Release
NEWS RELEASE SUMMARY – July 12, 2023
SAN DIEGO – Jesus Jeovanny Alcaraz-Valdez was sentenced in federal court today to 60 months in prison for bringing in nearly a dozen undocumented migrants for financial gain and ramming a Coast Guard vessel in an attempt to escape law enforcement.
At the sentencing hearing, U.S. District Judge Jinsook Ohta described Alcaraz’s actions as “extremely reckless and extremely troubling” and emphasized the danger to human life.
During the early morning hours of December 17, 2022, Alcaraz shuttled an estimated 12 undocumented migrants from Mexico across the maritime boundary line to the vicinity of the Hotel Del Coronado in Coronado, California. Before reaching shore, Alcaraz instructed the individuals to remove lifejackets and enter waist-deep surf, even though some could not swim. Eight individuals were apprehended by U.S. Border Patrol agents while four persons were assessed to have absconded. The individuals from Mexico and Guatemala were paying between $13,000 and $24,000 to be smuggled into the United States illegally.
The U.S. Coast Guard Joint Harbor Operations Center observed Alcaraz complete the drop-off near Coronado and return to sea on a southerly course toward Mexico. Responding to the event, a U.S. Coast Guard vessel patrolling in the area attempted to compel Alcaraz—the sole operator of the lights-out, panga-style vessel operating at 30-40 knots—to stop. Alcaraz repeatedly ignored the orders of the Coast Guard. Ultimately, after a brief respite from chase while Alcaraz switched fuel barrels, Alcaraz increased speed and steered directly toward the Coast Guard vessel, ramming them twice with his vessel’s pointed bow.
The first ramming hit the middle of the Coast Guard vessel, while the second caused the forward starboard window of the Coast Guard vessel to shatter to pieces and nearly hit a Coast Guard officer positioned in the co-pilot’s seat. After the ramming, the Coast Guard fired two shots into the panga’s outboard engine, successfully disabling it. All four law enforcement officers on board sustained minor neck and back injuries as a result of the ramming and were treated by medical personnel once safely ashore.
Alcaraz was arrested on December 17, 2022 and indicted in January 2023. He pleaded guilty to 12 counts in March 2023.
“Maritime smuggling is extremely dangerous and puts the lives of the passengers being smuggled, and the law enforcement officers safeguarding our borders, at serious risk,” said U.S. Attorney Randy Grossman. “This defendant not only endangered the individuals he transported by operating an overloaded panga in the dark with no navigation lights, but he double downed on his bad decision-making when he intentionally harmed members of our Coast Guard. The U.S. Attorney’s Office will continue our efforts to relentlessly pursue justice against smugglers who have no regard for human life and who assault our law enforcement agency partners.” Grossman thanked the prosecution team and the combined efforts of the Marine Task Force, HSI, and CGIS for their excellent work on this case.
“Our highest concern during any mission is the safety of our Coast Guard members,” said Rear Admiral Andrew Sugimoto, Commander, Coast Guard District 11. “When their safety becomes threatened, it becomes clear that these smugglers are operating with a disregard for life. As a service, we will continue to put people first and hold those individuals accountable who continue to jeopardize human life.”
DEFENDANT Case Number 23cr0057-JO
Jesus Jeovanny ALCARAZ-Valdez Age: 33 Mexico
SUMMARY OF CHARGES
Counts 1-3: Bringing in Certain Aliens for Financial Gain – Title 8, U.S.C., 1324(a)(2)(B)(ii)
Minimum penalty: Five years in prison
Maximum penalty: Fifteen years in prison
Counts 7-10: Assault on a Federal Officer – Title 18, U.S.C., 111(a)(1) and (b)
Maximum penalty: Twenty years in prison
Counts 11-14: Assault Within Special Maritime and Territorial Jurisdiction – Title 18, U.S.C., 113(a)(2)
Maximum penalty: Ten years in prison
Count 15: Failure to Heave To – Title 18, U.S.C., 2237
Maximum penalty: Five years in prison
AGENCY
United States Coast Guard
Homeland Security Investigations
Coast Guard Investigative Service
United States Border Patrol
Air and Marine Operations (CBP)
Romanian National Pleads Guilty to $5 Million Covid Relief FraudRead the Press Release
NEWS RELEASE SUMMARY – July 11, 2023
SAN DIEGO – Constantin Sandu of Romania pleaded guilty in federal court today, admitting that he masterminded a scheme to steal more than $5 million in California unemployment insurance benefits intended to help workers impacted by the pandemic.
According to his plea agreement, Sandu conspired with an uncharged co-conspirator identified as “D.C.” plus 213 unnamed Romanian co-conspirators across California and in Romania to fraudulently obtain millions of dollars in California unemployment insurance benefits by fabricating documents, creating fictitious accounts and businesses, and filing bogus claims with California’s Economic Development Department, which administers the state’s unemployment benefits. Sandu wired $16,000 of proceeds from the fraud to Romania to renovate his house.
In a forfeiture addendum, Sandu agreed to forfeit $214,950 of proceeds that he personally received from the offenses.
“This defendant has admitted to presiding over a vast network of people who exploited a program that was meant to help Californians during the pandemic,” said U.S. Attorney Randy Grossman. “The scheme alleged in this case diverted millions of dollars from those who truly needed it. We will continue to zealously prosecute perpetrators of COVID relief fraud.” Grossman thanked the prosecution team and the investigating agencies for their excellent work on this case.
“I am extremely proud that San Diego’s law enforcement partners were able to successfully apprehend Sandu,” said FBI San Diego Field Office Special Agent in Charge, Stacey Moy. “Unfortunately, this was an elaborate scheme that involved many alleged fraudsters. We will continue to tirelessly work to bring all those involved to justice.”
“Millions of dollars of unemployment benefits and pandemic-related aid were fraudulently obtained by individuals who falsified information and redirected the funds for their own personal gain,” said Tyler Hatcher, Special Agent in Charge of IRS Criminal Investigation Los Angeles Field Office. “Constantin Sandu is now being held accountable for this $5 million scheme. IRS-CI will not tolerate criminal networks that prey on vulnerable communities and exploit resources meant for those in need. IRS-CI is committed to working with our law enforcement partners locally and internationally to locate and hold criminal organizations accountable for their crimes.”
The plea agreement said that beginning in July 2020 and continuing until late summer of 2022, Sandu and hundreds of unnamed co-conspirators, including the one identified as D.C., learned and developed a process to receive the most benefits possible by using fraudulent identifications, falsified utility bills, falsified earnings statements, falsified W2s, fraudulent health insurance cards and non-existent companies. Additionally, Sandu learned to “backdate” or modify the EDD applications with an earlier unemployment start date to generate even bigger pay days.
Co-conspirators across California would share information, knowledge and resources with Sandu, for Sandu to file claims for regular unemployment insurance and expanded pandemic unemployment insurance benefits from California EDD. Co-conspirators communicated with Sandu via Facebook or other electronic means or met with him in person to provide their Personal Identifying Information, known as PII.
According to the California Franchise Tax Board, none of the companies named in the various W2s submitted for conspirators’ EDD applications was real. According to Blue Cross Blue Shield, none of the member identification numbers submitted for conspirators’ EDD applications was real.
In total, Sandu conspired with D.C. and unnamed co-conspirators to fraudulently obtain no less than $5,207,687 in California unemployment insurance benefits.
Sandu is scheduled to be sentenced on October 16, 2023, at 10 a.m. before U.S. District Judge Larry Burns.
DEFENDANT Case Number: 23-cr-00386-LAB
Constantin Sandu, aka Bobi Sandu, aka Ionut Mihai Age: 33 Transient, Romanian
SUMMARY OF CHARGES
Title 18, U.S.C. § 1349 and 1343 - Conspiracy to Commit Wire Fraud
Maximum penalty: Thirty years in prison, a fine of $1 million or both;
Title 18 U.S.C. § 1956(a)(2)(A) — Laundering Monetary Instruments
Maximum penalty: Twenty years in prison and $500,000 fine or twice the value of the monetary instrument or funds involved in the transportation, transmission, or transfer, whichever is greater;
Title 18 U.S.C. §§ 981(a)(1)(C) and 982(a)(1), and Title 28, U.S.C. § 2461(c) - Criminal Forfeitures
INVESTIGATING AGENCIES
Federal Bureau of Investigation
San Diego Police Department Economic Crimes Unit
Internal Revenue Service
California Employment Development Department Investigative Division
Homeland Security Investigations
Department of Labor Office of Investigator General